Attachment V - Questions and Answers.pdf
PDF 204 KB Posted
- Solicitation number
- SPE60425R0406
- Issued by
-
Defense Logistics Agency Energy
About this file
This document is a Questions and Answers (Q&A) attachment for a DLA Energy solicitation (SPE60425R0406) for New England energy services in 2026. The Q&A addresses multiple technical and procedural aspects of the solicitation, with responses from DLA Energy covering topics such as utility account details, pricing structure, tax treatment, and contract line item (CLIN) specifications. Key points include clarifications about Locational Marginal Price (LMP) electricity pricing, confirmation of various energy market program changes (such as the retirement of Locational Forward Reserve and Inventoried Energy Program), and details about pass-through costs for ancillary services and renewable portfolio standard (RPS) costs.
The solicitation covers multiple federal agency facilities across New England, including U.S. Army Reserves, U.S. Coast Guard installations, and other government sites in Massachusetts, New Hampshire, Rhode Island, and Maine. The document indicates that DLA Energy will provide additional information through future amendments, particularly regarding Section B pricing structure and LMP language. The Q&A also addresses potential contract modifications, termination conditions, tax treatments, and the inclusion/exclusion of various energy market fees and charges in the contract pricing, with a focus on providing clear guidance to potential offerors about the complex energy pricing landscape.
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SPE60425R0406 Page 1 New England 2026 Q&A
ATTACHMENT V – QUESTIONS AND ANSWERS
Should the “DLA Energy Responses” presented in this Attachment contradict any language presented in a subsequent amendment of the solicitation, the language in the subsequent amendment (0002, 0003, 0004, etc.) supersedes what is provided herein.
General Questions
1. Please provide signed Letters of Authorization (LOAs) so we can obtain data from the Utility.
DLA Energy Response: The Government has signed and returned all LOAs submitted by Offerors.
2. Regarding the Small Business Subcontracting Plan:
a. Is there a targeted amount the Government is looking for?
b. Are there any goals or initiatives that the Government would like to see?
DLA Energy Response: Any targeted amounts, goals, or initiatives, may be stated within solicitation attachment “IV – Small Business Subcontracting Plan” and/or the acquisition regulations for Small Business Programs (FAR Part 19, DFARS Part 219, DFARS PGI Part 219).
3. Will all supplier questions and DLA responses be released in aggregate form to help ensure that all suppliers have access to a common set of information as a means to decrease potential ambiguity on how the DLA requirements are being interpreted independently by each supplier?
DLA Energy Response: Within this document, the Government is responding to all questions received in response to the solicitation, which were determined to not be exceptions to the terms and conditions of the solicitation, and which were determined not to be related to Section B, Subsection Locational Marginal Price (LMP) of the solicitation (refer to #23 below for an explanation). Once discussions are opened, the Government intends to consider and discuss any stated exceptions.
4. Will there be another opportunity to submit questions once the account lists and pricing groups are finalized?
DLA Energy Response: There will be an additional opportunity for questions once discussions are officially opened.
5. We understand the need to hold prices firm for 4 hours, but please confirm the Offeror may request the right to withdraw its price(s) at any time prior to bid being awarded.
DLA Energy Response: Refer to FAR 52.212-2(c) of the solicitation.
6. Per Section C: CONTRACT CLAUSES, subsection (k) TAXES states “the contract price includes all applicable Federal, State, and local taxes and duties.” Please confirm that all
SPE60425R0406 Page 2 accounts in this solicitation are exempt from state and local sales tax and that the Contractor’s prices shall be exclusive of Taxes.
DLA Energy Response: The Government cannot confirm the accuracy of the proposed, italicized statement above. As stated within FAR 52.212-4(k) of the solicitation, “The contract price includes all applicable Federal, State, and local taxes and duties in effect at contract signing. Invoice requirements are expressed in Section B and C. If awarded, a copy of the state(s) sales tax exemption will be distributed (as needed).”
7. Per Section C: CONTRACT CLAUSES, subsection (l) Termination for the Governments Convenience (Tailored): The termination language appears to address only the energy portion of the costs. Please advise on how all components are to be made whole and confirm that suppliers may pass through liquidation damages.
DLA Energy Response: In the event of a Termination for the Government’s Convenience, the Government will apply the process as defined within FAR 52.212-4(l) of the solicitation.
At this time, an alternative approach and/or additional variables will not be considered, as the presented language has been approved by our legal team.
8. Per Section C: CONTRACT CLAUSES, subsection (l) Termination for the Governments Convenience (Tailored): It states that “the termination value formulas above shall only apply to RPS, electricity or capacity purchased on a fixed price basis purchased on a fixed price basis. The Government shall incur no termination liability for electricity purchased on a locational marginal pricing basis, or capacity on a pass-through basis.” For the LMP priced CLINs #0011-0012, please confirm that the unmentioned fixed components of the Transaction Fee (i.e. ARR) will be included in the termination language and/or formulas, subject to a termination calculation should the Government terminate.
DLA Energy Response: The Government does not concur. CLINS 0011 and 0012 are structured as Locational Marginal Price (LMP) and as stated within FAR 52.212-4(l)(2) of the solicitation, “The Government shall incur no termination liability for electricity purchased on a locational marginal pricing basis.”
9. Is DLA currently aware of any future closing, sale or non-renewal of lease agreements for any buildings that are on this RFP? Specifically, will suppliers be kept whole due to any facilities that terminate this agreement prior to contract expiration? Would the calculation under “Termination for the Government’s Convenience” prevail per Section (l) of the RFP?
DLA Energy Response: The Government is not aware of any future closing, sale or non-renewal of lease agreements for any buildings beyond that already defined in the solicitation.
If the Government decides to completely or partially terminate performance of work under a contract when it is in the Government’s interest, such a termination would be in accordance with FAR 52.212-4(l) TERMINATION FOR THE GOVERNMENT'S CONVENIENCE [TAILORED] of the solicitation.
10. Contractor reserves the right to supplement or amend any of the questions, clarifications or exceptions listed in this document prior to the contract award.
SPE60425R0406 Page 3
DLA Energy Response: The Government concurs as the procedures for withdrawing offers states the same.
11. Contractor reserves the right to withdraw its pricing in writing at any time prior to receipt of the Government’s acceptance of an awarding of the contract.
DLA Energy Response: The Government concurs as the procedures for withdrawing offers states the same.
12. With respect to FAR 52.212-4 (k), and the referenced Taxes, Contractor seeks to confirm it will not include Taxes in its Firm Fixed Price. For UDC consolidated billing, any applicable taxes will be collected by the UDC and if Contractor were to include taxes in the FFP price, it would result in a double collection of taxes. For the Dual Billed CLINs, any applicable taxes will be invoiced as a separate line item until a valid tax exemption is supplied. Any previously charged taxes can be refunded once requested with a valid tax exemption. While tax exemptions are not required in MA, NH, and RI, they are required in Maine and Connecticut, and we must have them to bill without tax.
DLA Energy Response: As stated within FAR 52.212-4(k) of the solicitation, “The contract price includes all applicable Federal, State, and local taxes and duties in effect at contract signing. Invoice requirements are expressed in Section B and C. If awarded, a copy of the state(s) sales tax exemption will be distributed (as needed).” It is the Government’s understanding that Tax Exemption Certificates / Numbers are not required for Government Agencies in Massachusetts, New Hampshire, and Rhode Island. The Government will provide tax certificates / numbers for Maine and Connecticut Installations that are made available.
13. Regarding DFARS 252.204-7008 and 252.204-7012, please confirm the Government does not anticipate that any Covered Defense Information (CDI) or other Controlled Unclassified Information (CUI) will be provided to or generated by the contractor performing under the resulting award? If the Government believes any such information will be provided or generated, please identify or describe the information.
DLA Energy Response: No information has been identified as CUI or CDI at this time.
Attachment I - Installation Data Sheet
14. Many of the accounts in the Installation Data Sheet are lacking the full account number needed for enrollment with the utility.
a. For CLIN 0010 accounts, the utility requires the full 19-digit number for enrollment.
Please provide the additional 8-digit service reference number (POD ID) for both accounts.
DLA Energy Response: The information is provided in Amendment 0001, “Attachment I - Installation Data Sheet A0001.” Reference column F within the “Accounts” worksheet and column H within the “0010 Otis” worksheet.
b. For CLIN 0015 accounts, the utility requires a 20-digit number for enrollment. Please
SPE60425R0406 Page 4 provide the additional 9-digit service reference numbers for both accounts.
DLA Energy Response: The information is provided in Amendment 0001, “Attachment I - Installation Data Sheet A0001.” Reference column F within the “Accounts” worksheet and column H within the “0015 USCG - NH” worksheet.
15. Please provide the invoice for Liberty account number 200003717754 so we can obtain the
POD ID.
DLA Energy Response: This POD ID is provided in “Attachment I - Installation Data Sheet.” Reference column F within the “Accounts” worksheet and column H within the “0009 CRREL” worksheet.
16. Please provide the reference numbers for the Eversource accounts in Massachusetts.
DLA Energy Response: CLINS 0004, 0006, and 0010 illustrate Eversource accounts in Massachusetts. The information is provided in Amendment 0001, “Attachment I – Installation Data Sheet A0001.” Reference column F within the “Accounts” worksheet and column H within the “0004 99th MA,” “0006 USCG – MA,” and “0010 Otis” worksheets.
17. Please provide the correct name key for account 5192516020.
DLA Energy Response: This information is provided in “Attachment I - Installation Data Sheet.” Reference column G within the “Accounts” worksheet and column F within the “0007 USCG Academy” worksheet.
18. Is DLA currently aware of any significant usage reductions/growth to current load for any accounts?
DLA Energy Response: The Government is not aware of any significant usage reductions/growth to load beyond that already defined in the solicitation. Reference the notes provided within each installation worksheet of the most recent version of the solicitation Attachment I – Installation Data Sheet.
19. Do any of the facilities in this solicitation have existing or planned behind-the-meter generation. If so, please provide as many details as possible.
DLA Energy Response: The Government is not aware of any existing or planned behind-the-meter generation beyond that already defined in the solicitation. Reference the notes provided within each installation worksheet of the most recent version of the solicitation Attachment I – Installation Data Sheet.
20. Regarding Attachment #1: There are several usage-related eccentricities. Please advise and provide details on what the expected usage would be annually and/or for the 24-month contract term.
a. CLIN #0001 – U.S. Army Reserves 99th Division – NH: For # 80042510174, usage seems to spike significantly from July to October, please advise.
DLA Energy Response: There is not a specific reason behind the large spike during that time. It is a large facility and could be the resultant load impact of over 300 tons of air conditioning chiller capacity. This year’s usage during the same months is listed below:
SPE60425R0406 Page 5
NH014 25 JUN $16,862.09 120400 KWH 80042510174
NH014 25 JUL $16,602.55 106400 KWH 80042510174
NH014 25 MAY $13,238.46 93600 KWH 80042510174
NH014 25 AUG $13,857.75 92800 KWH 80042510174
NH014 25 SEP $10,591.42 80400 KWH 80042510174
b. CLIN #0006 – U.S. Coast Guard – MA: For #74010820053, usage is null in Dec & Jan, and low in July, please advise.
DLA Energy Response: Reference “Attachment I – Installation Data Sheet A0001,” the worksheet entitled “0006 – USCG – MA” and the highlighted language in columns A - C.
c. CLIN #0014 – Devens Army Reserve Depot: For #383963004, usage seems to spike in Dec, please advise.
DLA Energy Response: The Government is researching and will publicize any needed explanation in a future amendment.
21. For CLIN 0007, Attachment I references 1MW turbine cogeneration and 420 kW solar array.
Can the Government confirm when both units began generating? Additionally, for the time period and usage shown in Attachment I, was the 1MW turbine running the entire time, except for the annual shutdown?
DLA Energy Response: Reference “Attachment I – Installation Data Sheet A0001,” the worksheet entitled “0007 – USCG Academy” and the updated, highlighted language in columns A and B.
Section B of the Solicitation
22. Per Section B: CONTRACT PRICE CONVERSION, it states that “At any time during contract performance, the Government and the Contractor can mutually agree to convert any LMP-based contract line items quantity to a firm-fixed price”, please confirm if DLA would consider changing the product from LMP to a fixed energy price instead?
DLA Energy Response: At this time the Government is unwilling to change the product for CLINS 0011 and 0012 from LMP to a firm-fixed price (FFP). However, if the Government develops a desire to convert to FFP prior to contract award, the Government may amend the solicitation. If the Government develops a desire to convert to FFP after contract award, the process as defined within the “Contract Price Conversion” section of the solicitation (and subsequent contract), will be followed.
23. The Government received various questions and exceptions regarding Section B, Subsection Locational Marginal Price (LMP). The Government is reviewing the language and intends to provide the updated language in a future amendment.
24. For CLIN #0001-0010 and 0013-0015, per Section B: PRICING STRUCTURE AND TREATEMENT, prices shall only include the following charges: capacity, ancillary services, losses, and independent system operator/regional transmission organization fees including
SPE60425R0406 Page 6
(RMR, LFR charges, Mystic Cost-of-Service agreement charges, IEP costs, and all RPS costs to the point of receipt as specified in the solicitation).
a. Please confirm the treatment of the below components as pass through items or if they are meant to be bundled as part of “Ancillary Services”:
(1) Auction Revenue Rights (ARR)
(2) Marginal Loss Credits (MLC)
(3) Day-Ahead Ancillary Services Initiative (DASI) – Program launched in March
2025 to replace the forward reserves DLA Energy Response: Amendment 0001 of the solicitation updates the language in Section B, Pricing Structure and Treatment for CLINS 0001-0010 and 0013-0015.
b. Please confirm the treatment of the below components as items to be included in the price, given they are now either defunct or valued at $0, and that they will be handled under Section B: SPECIAL NOTES, subsection (1) Notification of Tariff/Rate Changes and/or (2) Electricity Regulatory Changes should they be re-implemented during the term of the awarded contract:
(1) Locational Forward Reserve (LFR) - Forward Reserves Market was replaced by DASI on 3/1/2025
(2) Mystic Cost-Of-Service Agreement Charges (Mystic) – ended in 2024
(3) Inventoried Energy Program (IEP) – ended on 2/28/2025
(4) Reliability Must Run (RMR)
(5) FERC Order 745 and FERC 494 / EL05-121-009 Compliance Costs
DLA Energy Response: Amendment 0001 of the solicitation updates the language in Section B, Pricing Structure and Treatment for CLINS 0001-0010 and 0013-0015.
Additionally, any “after-imposed” charges, “after-relieved” charges, or “modified” charges are to be treated in accordance with Section B, Subsection “Special Notices,” paragraph (2), which addresses Electricity Regulatory Changes.
25. “Pricing structure and Treatment” states that prices shall include: “…Locational Forward Reserve (LFR) charges…”. Additionally, “Locational Marginal Price (LMP)” (b) includes “…LFR cost”. Can the Government confirm that ISONE retired the Locational Forward Reserve program on 2/28/2025 and replaced this component with the Day-Ahead Ancillary Services Initiative (DASI) which became effective 3/1/2025, and that Locational Forward Reserves should not be included in pricing?
DLA Energy Response: Amendment 0001 of the solicitation updates the language in Section B, Pricing Structure and Treatment for CLINS 0001-0010 and 0013-0015.
Additionally, the Government is currently reviewing the language in Section B, subsection LMP, and intends to update the language in a future amendment.
26. Can the Government confirm that DASI costs should be included in the prices for CLINS 0001-0010, and 0013-0015?
DLA Energy Response: Amendment 0001 of the solicitation updates the language in Section B, Pricing Structure and Treatment for CLINS 0001-0010 and 0013-0015.
SPE60425R0406 Page 7
27. For CLINs 0006-0013 and 0015, please confirm that the DASI prices should be passed through. For context, the DASI program has been in existence for less than a year and the costs have been settling much higher than initially forecast. Please refer to ISONE’s website on this at Day-Ahead Ancillary Services Initiative (DASI). For reference, the original ISO annual estimate was ~$135 mm but Program Costs (since 3/1/2025 to early October) = ~$307 mm.
DLA Energy Response: Amendment 0001 of the solicitation updates the language in Section B, Pricing Structure and Treatment for CLINS 0001-0010 and 0013-0015.
28. “Pricing structure and Treatment” states that prices shall include: “…Mystic Cost-of-Service Agreement Charges, Inventoried Energy Program (IEP) costs…”. Can the Government confirm that both the Mystic Cost of Service program and the Inventoried Energy Program have ended and are not to be included in pricing?
DLA Energy Response: Amendment 0001 of the solicitation updates the language in Section B, Pricing Structure and Treatment for CLINS 0001-0010 and 0013-0015.
29. Regarding the product request for CLINS 0001-0010 and 0013-0015, several components listed explicitly no longer apply. Can the DLA please revise the product definition of the Fixed Price requirement?
• Suggested revision: Prices shall also include capacity, ancillary services, losses and independent system operator/regional transmission organization fees including Reliability Must Run (RMR), Auction Revenue Rights (ARR/CRR), and all Renewable Portfolio Standard (RPS) costs (all retail supply costs) to the point of receipt as specified in this solicitation.
• Include: Auction Revenue Rights (ARR/CRR)
• Removing components that are no longer applicable: 1) Mystic Cost-of-Service
Agreement Charges, Inventoried Energy Program 2) Locational Forward Reserve (LFR) charges 3) Inventoried Energy Program (IEP) costs
DLA Energy Response: Amendment 0001 of the solicitation updates the language in Section B, Pricing Structure and Treatment for CLINS 0001-0010 and 0013-0015.
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