Attachment VII - Questions and Answers TX AF 2026.pdf

SPE60425R0407 Texas Air Force 2026 Electricity Attachment VII - Questions and Answers TX AF 2026

Any items submitted that are not responded to here have been determined to be exceptions to the terms and conditions of the solicitation and may be submitted within your proposal for further consideration.

1. Where the column states purchase date, it has the value of a month. Will the schedule be updated to a specific date pre or post award?

DLA Energy Response: Purchase Date provided in Attachment III - Block Purchase Schedule are the approximate timeframe the block purchase will be scheduled. Specific blocks buy dates will be provided by the Government post award.

2. Where the column states purchase date, there are several rows where more than 1 month is listed with “/” between them. Please explain what this means for the expectations regarding the purchase date or multiple dates for the block size and term.

DLA Energy Response: Please refer to answer for question #1.

3. We would like the DLA to confirm the transaction fee is to be the supplier fee where the remainder of the components are treated as a full pass through.

DLA Energy Response: The Government concurs and would like to confirm that costs associated with the management, establishment, etc. for the QSE are included in the transaction fee.

4. Please be advised that the following link for “other market charges” below no longer works:

https://www.ercot.com/misdownload/servlets/mirDownload?doclookupId=1025382870.

Can the DLA please update the solicitation with the link they wish to reference?

DLA Energy Response: Please refer to Amendment 0002, Section 2. Statement of Work, Block Purchases, (c) Other Market Charges for updated link.

5. Please confirm if the REP consolidated bills are to be submitted through the WAWF platform for billing and payment. While the language is included in the RFP, it is unclear if it pertains to any of the three sites mentioned.

DLA Energy Response: The Government requires REP consolidated bills to be submitted through the WAWF platform for billing and payment for each site. Instructions to set up DFARS 252.232-7006 will be provided upon contract award.

6. Regarding Section B. Invoice and Payment (Item 9): Can the DLA clarify what is meant by “All supporting documentation”?

DLA Energy Response: SECTION B – CONTINUATION OF BLOCKS ON THE SF 1449, Subsection INVOICE AND PAYMENT, Item (9) “All supporting documentation” consists of all information required by the INVOCE AND PAYMENT Subsection, including requirements for Sub-account/Sub-QSE (Qualified Scheduling Entities).

7. Regarding Section B. Invoice and Payment (Item 10): Can the DLA confirm that notice is only requested for cancellations/rebills caused by estimated usage?

DLA Energy Response: The Government does not concur. Please refer to SECTION B

– CONTINUATION OF BLOCKS ON THE SF 1449, Subsection INVOICE AND PAYMENT, Item (10) which states “If a REP is unable to issue a bill based on actual meter reading due to the failure of the transmission and distribution utility, municipally owned utility or electric cooperative to obtain or transmit a meter reading to the REP, the REP may issue a bill based on an estimated reading fifteen (15) calendar days following the meter read date for the affected account.”

8. Can the DLA confirm if pricing will be submitted via a reverse auction or via email?

DLA Energy Response: The Government intends to utilize the Pricing Sheet for this Solicitation. The Pricing Sheet attachment will be provided via future amendment announcing the pricing day.

9. Can the DLA confirm that the only pricing to be provided is the transaction fee, which is a full pass-through product? Additionally, can the DLA confirm the 48-hour hold pertains solely to this transaction fee?

DLA Energy Response: The Government concurs.

10. Please confirm CRRs are not to be included in the transaction fee.

DLA Energy Response: Please refer to SECTION B – CONTINUATION OF BLOCKS ON THE SF 1449, Subsection 2. Statement of Work, Block Purchases(c)(viii) which listed CRR Auction Revenue Distribution as a pass-through charge and shall be billed as a separate line item.

11. Please confirm that CRRs are to be treated as a pass-through charge and billed as a separate line item.

DLA Energy Response: Please refer to answer for question #10.

12. Please confirm that CRRs are not to be included in the adder for any supplier.

DLA Energy Response: Please refer to answer for question #10.

13. Do any of the ESIDs included in this solicitation have behind the meter generation? If so, are they a net exporter?

DLA Energy Response: The Government is not aware of any existing or planned behind-the-meter generation for any ESIDs in this Solicitation.

14. General

a) Offeror understands that block purchases are scheduled to occur as soon as April

2026, while flow starts are not until January 2027. As such, please advise on when the likely projected auction bid date will commence, Q4 2025 or Q1 2026?

DLA Energy Response: Purchase Date provided in Attachment III - Block Purchase Schedule are the approximate timeframe the block purchases will be scheduled. Specific blocks buy dates will be provided by the Government post award.

b) Offeror understands that prices shall be submitted by utilizing the solicitation attachment titled “Pricing Sheet Texas AF 2026”. When will this attachment be publicly released to the supplier community?

DLA Energy Response: The Pricing Sheet will be provided via future amendment announcing the pricing day.

c) Offeror understands the intent of CLIN #0002 – Holdover, is an effort to alleviate the burden to the Offeror when at end of contract, ESIIDs fail to switch away within generally accepted timelines. Offeror also understands the need to propose a “retail adder” for such cases, the amount with which will not be factored in the overall award winner determination.

• Please clarify the requirement and language for the Holdover CLIN. In Section “1. SUPPLIES TO BE FURNISHED”, the note states that “should this CLIN have the supply of electricity delivered under these terms, the period of delivery would be no later April 2027”. Yet in Section “HOLDOVER CONTRACT LINE ITEM NUMBER (CLIN)” (c) Duration, it states “90 days following expiration of the performance period”.

These seem to contradict. Providing a clear example would be beneficial.

DLA Energy Response: Please refer to Amendment 0002, Section 1. Supplies to be Furnished (d), Note revised to read as follows:

“CLIN 0002 Holdover has specific conditions for delivery eligible under the terms listed in ‘Statement of Work – Holdover Contract Line Item Number (CLIN)’; should this CLIN have the supply of electricity delivered under these terms, the period of delivery would be no later April 2031.”

• Please confirm that the “retail adder” is synonymous with the “Transaction Fee”, and to be submitted at time of price proposal via the “Pricing Sheet Texas AF 2026”.

DLA Energy Response: The “retail adder” in as defined in HOLDOVER CONTRACT LINE ITEM NUMBER, section (c) is synonymous with “Transaction Fee” as defined in BLOCK PURCHASES, section (c).

d) Offeror understands the need to hold prices firm for 48 hours. Please confirm that the offeror may request the right to withdraw its price(s) at any time prior to bid being awarded.

DLA Energy Response: Please refer to FAR 52.212-2(c) which states “Before the offer’s specified expiration time, the Government may accept an offer (or part of an offer), whether or not there are negotiations after its receipt, unless a written notice of withdrawal is received before award.”

e) Offeror understands that the prices are to be submitted via attachment titled “Pricing Sheet Texas AF 2026” and that the tailored FAR 52.212-1(c) on page 21of the Request for Proposal (RFP) / Solicitation further details “the offeror agrees to hold the prices in its offer firm for 48 hours from the date specified for receipt of offers”.

However, the spirit of the pricing process seems to be at odds with the requirement to hold pricing for 48 hours. Though it is understandable that DLA needs to ensure validity and reasonableness of price bids received in relation to other evaluation factors, a 48-hour allotment to do so puts suppliers at risk for changes in the market. Should there be ERCOT charges required to be fixed in the transaction fee, please consider the request for suppliers to withdraw price(s) at any time prior to bid being awarded formally via e-mail notice by DLA or reduce the hold requirement from 48 hours to a suggested 4 hours instead.

DLA Energy Response: The Government does not concur. The Period for Acceptance of Offers shall be as stated in FAR 52.212-1(c) -

“(c) PERIOD FOR ACCEPTANCE OF OFFERS. The offeror agrees to hold the prices in its offer firm for 48 hours from the date specified for receipt of offers, unless another time period is specified in an addendum to the solicitation.”

f) Offeror seeks confirmation that other opportunities will be made available to submit questions once the account lists, pricing groups, and solicitation changes as outlined in future amendments are finalized.

DLA Energy Response: Please refer Attachment II - Proposal Requirements TX AF 2026, section J. EXCEPTIONS AND QUESTIONS. Additional questions may be submitted with an offeror’s proposal.

g) 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. Any items submitted that are not responded to here have been determined to be exceptions to the terms and conditions of the solicitation and may be submitted within your proposal for further consideration. Offerors are also welcome to submit within their proposal additional questions not addressed herein.

15. Pricing – Block/Electricity

a) Offeror understands that for each block purchase, the Contractor shall provide to the Government at least three executable price quotes (or at least four if one of the executable price quotes is from a Contractor affiliate).

• Can government provide guidance on how many months/days in advance notice will be provided to obtain for the block quotes? (i.e. April 2027 purchase date, when will offeror be notified of the exact date)

DLA Energy Response: The Government will make best effort attempts to notify the Contractor 2-3 weeks in advance of the Purchase Date to set up the date for block purchase that shall fall within the Purchase Date time frame identified in Attachment III - Block Purchase Schedule.

• What is the course of action if the Government does not actively notify Contractor of their decision to accept one, or reject all, of the executable price quotes provided within the allotted hour timeframe?

DLA Energy Response: With respect to block purchases only, in the event the Government does not accept the executable price quotes provided within an individual block purchase, the Contract shall not be obligated to hold the price quotes submitted and a make-up block purchase may be scheduled. The Contractor's transaction fee remains fixed through the contract period.

b) Offeror understands that all blocks on Attachment III labeled ‘West Hub’ shall be allocated to the largest account at the following installations only – Goodfellow AFB and Sheppard AFB. Please confirm this to be:

• Goodfellow ESIID ####0440

• Sheppard ESIID ####7369

• In addition, please confirm how the blocks are to be split between the two ESIIDs

(i.e. evenly 50/50, by weighted annual usage, other methods) DLA Energy Response: The Government confirms the Goodfellow ESIID ####0440 and Sheppard ESIID ####7369 are the largest accounts to allocate the West blocks.

Currently, the blocks’ allocations between the two ESIIDs are based on the weighted annual usage as follow:

• Goodfellow ESIID ####0440 receives 30% allocation.

• Sheppard ESIID ####7369 receives 70% allocation.

The potential Contractor could propose reasonable alternative allocation or revision to the proposed set up.

c) Offeror understands that all blocks on Attachment III labelled ‘South Hub’ shall be allocated to the following installation only – Laughlin AFB. Please confirm this to be:

• Laughlin ESIID ####3031 DLA Energy Response: The Government confirm Laughlin ESIID ####3031 is the largest account to allocate the South blocks.

e) Offeror seeks clarity on what happens when accounts are added or removed over the 48-month term. Will the block schedules be revised if account/usage significantly deviate from initial estimates? Please advise on how adds and deletes are to be addressed respective of the block then purchased?

DLA Energy Response: If the Government adds accounts that require adjustment of the block allocation, the Contractor can propose new allocation split based on the weighted annual usage. If Block Purchase schedule needs to be adjusted to accommodate changes made to the contract accounts, the Government would make best efforts to notify Contractor in advance via contract Modification in accordance with FAR 52.212-4(c) and Adding Future Accounts section.

f) Offeror seeks clarity that the Government reserves the right to modify Attachment

III without change to the Contractor’s Transaction Fee, and not the right to modify Attachment II as referenced in the Request for Proposal (RFP) / Solicitation

DLA Energy Response: The Government reserves the right to modify Attachment III

– Block Purchase Schedule, which will not change the fixed price component (i.e.

Contractor’s Transaction Fee).

16. Pricing – Transaction Fee

a) Located in tailored FAR 52.214-4(l) on page 12 the Request for Proposal (RFP) /

Solicitation, it states that the “termination value formulas above shall only apply to electricity purchased on a fixed price basis (electricity blocks). The Government shall incur no termination liability for electricity purchased on a Real-Time Settlement Point Price (RTSPP) basis.”

• Please confirm if there will be remediation for the Transaction Fee DLA Energy Response: Please refer to FAR 52.212-4(l) for Termination calculation.

Transaction Fee is not included in the termination formula.

• Please confirm if there will be remediation for items that are included in the

Transaction Fee that were not explicitly identified in either paragraphs (a) or (c).

DLA Energy Response: Please refer to FAR 52.212-4(l) for Termination calculation.

Applicable items for remediations are identified in the termination formula.

b) As noted in Section 3, Special Note 2, would any of the following be considered as “After-imposed (ISO/RTO/PUC)” or “After-relieved (ISO/RTO/PUC) charges?

• Residential Demand Response Program

• DRRS (Dispatchable Reliability Reserve Service)

• Large Load Demand Management System

• Advanced Grid Protection

• Large Load Over Frequency Service DLA Energy Response: Please refer to Section 3, Special Notes, Special Note 2 Electricity Regulatory Changes for definitions of After-imposed (ISO/RTO/PUC)” and “After-relieved (ISO/RTO/PUC) charges.

17. Pricing – Other Market Charges

a) Offeror understands that the “following charges identified below shall be a direct pass-through to the Government with no additional mark-up”

• UDC/TDSP Charges

• Gross Receipts Tax (GRT)

• PUC Charges

• Transmission and Distribution Losses

• Reliability Must Run (RMR)

• Reliability Unit Commitment (RUC) Make-Whole

• Ancillary Services Costs

a) Regulation Up

b) Regulation Down

c) Responsive Reserve

d) Non-Spinning Reserve

e) Contingency Reserve (ECRS)

f) All other Ancillary Service Charges incurred to supply the Government account

(e.g., Firm Fuel Supply Service, Black Start Service, Voltage Services)

g) CRR Auction Revenue Distribution

h) Transmission Congestion

i) Please confirm there are no other charges meant to be included in the definition of

“Other Market Charges” and passed through to the Government.

DLA Energy Response: The Government confirms Other Market Charges as identified in 2. Statement of Work, Block Purchases, (c) Other Market Charges are applicable to this Solicitation.

ii) On page 7 of 22 of Amendment A0001, item (c) defines "Other Market Charges" that are to be a direct pass-through to the Government. This section states that "All such charges are shown in the ERCOT Nodal Charge Type Matrix, as of 08/05/2024". Further, on page 9 of 22, there is a requirement to establish an ERCOT Sub-QSE for the purpose of facilitating the assignment of pass-through charges to the Government. Offerors interpretation of the above sections is that all charges that accrue to the dedicated Sub- QSE are to be passed through to the Government. It is the Offerors interpretation that there are no charges that are billed by ERCOT and accrue in the dedicated Sub-QSE that are intended to be fixed in the Transaction Fee. Is this interpretation correct?

DLA Energy Response: Costs related to the Sub-QSE establishment, management, etc. should be included in the Contractor’s Transaction Fee. Costs accrued from ERCOT should not be included in the Contractor’s Transaction Fee.

b) Offeror understands that Congestion Charges "shall be passed through to the

Government" and "apply to the electricity blocks that are delivered to the accounts in the real-time market".

i) However, please elaborate in the government's "right to direct contractor to fix congestion costs over a specified time period for a specified level of load".

ii) Does the government intend to enact this right DLA Energy Response: In accordance with 2. Statement of Work, Block Purchases,

(c) Other Market Charges, (ix) Transmission Congestion, The Government reserves the right to direct the Contractor to fix congestion costs over a specified time period for a specified level of load.

iii) By what mechanism is the government intending to use to initiate this direction?

DLA Energy Response: The Government would make an adjustment to Attachment III – Block Purchase Schedule and identify specific blocks for congestion only.

iv) How is the price to be determined?

DLA Energy Response: The Government would require the same pricing mechanism as 2. Statement of Work, Block Purchases, (a) Electricity, (1), (v).

v) How should this be shown in the invoice?

DLA Energy Response: The Government would request a line item on the invoice identifying the congestion costs.

18. Accounts/Usage

a) 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 building that are on this RFP. In the event the Government partially terminates the contract for convenience, the termination value would be determined by formula set forth in FAR 52.212-4(l).

b) Aside from those listed in the solicitation, 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 current load for any accounts.

c) Aside from what is already noted, do any of the facilities in this solicitation have existing or planned behind-the-meter generation, or are any facilities actively seeking enrollment in a demand response program? 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 or demand response program from the facilities in the Solicitation.

d) Regarding Attachment #1: There are several usage-related eccentricities. Please advise and provide details on the following that have zero and/or low usage, indicative of non-use or residential meter:

(1) Goodfellow

(a) ####8210

(b) ####3451

(c) ####8525

(2) Laughlin

(a) ####3448

(b) ####1371

(3) Sheppard

(a) ####2657

(b) ####6708

(c) ####9316

(d) ####7096

(e) ####0371

DLA Energy Response: The usage identified in Attachment I – Installation Data Sheet – TAF2026 is based on historical usage. Blocks are to be applied to the largest usage accounts, while the remaining accounts rely on real time usage.

19. Billing

a) Per Section C: CONTRACT CLAUSES, subsection (k) TAXES states “the contract price includes all applicable Federal, State, and local taxes and duties.” Please confirm if any accounts in this solicitation are to be exempt from state, local sales tax, GRT and any other types of taxes (i.e. contractor’s prices shall be exclusive of Taxes)

DLA Energy Response: The Government will provide Contractor with available form for tax exemption post award, if applicable. It should be noted that taxes should not be included in the Contractor’s Transaction Fee.

20. Can you please confirm this is the way the DLA is asking us to structure the Transaction Fee based on page 7 of the solicitation.

LMP - Cost Components Included Excluded

Energy Losses

X

Ancillary

Ancillary Service - ECRS

Ancillary Service - FFSS

RUC

Market Securitization (Debt) Financing X

Market Securitization (Debt) Financing - Uplift N X

RTRNA X

ISO Fees X

Reliability Must Run (RMR)

Load Zone Basis

RPS X

CRR Adjustment

DLA Energy Response: RPS in ERCOT is no longer mandatory as of 1 September 2025.

Therefore, it should not be included in the transaction fee. Additionally, in accordance with 2.

Statement of Work, Block Purchases, (c) Other Market Charges, (iii), “All Public Utility Commission related charges shall be a direct passthrough to the Government with no additional markup.”