Attachment X - Questions and Answers TX2026.pdf

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ERCOT 2026
Solicitation number
SPE60426R0401
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This file is a Questions and Answers attachment for federal solicitation SPE60426R0401, a Defense Logistics Agency (DLA) Energy contract for electricity supply to multiple Texas installations over the 2026 contract year. The document addresses 33 questions submitted by prospective offerors regarding contract requirements, pricing structure, account management, and administrative procedures.

Key contractual details include: the Government will award on a CLIN (Contract Line Item Number) basis, with offerors required to propose the total quantity for each CLIN or face exclusion from evaluation; pricing submission will occur on a date and time to be established via amendment with prices holding firm for four hours; discussions and negotiations will be conducted with offerors in the competitive range per FAR 52.215-1(f)(4); and block CLINs 0015 (NASA JSC), 0016 (AAFES), and 0017 (SPR) utilize Firm Fixed Price Blocks with Real Time Settlement Point Price (RTSPP) methodology for quantities outside blocks. Pricing treatment requires all retail charges and supply costs except energy to be passed through with no markup, while TDSP charges, GRT, PUCA, and credit/collateral compliance costs are embedded in the Transaction Fee and cannot be passed through. CLIN 0018 (Dyess Air Force Space) is currently enrolled in a Demand Response program, with the contractor responsible for facilitating and applying third-party DRP credits to participating accounts. The Government clarified that the contractor is responsible for scheduling and coordination of electricity delivery to service points but not for utility delivery performance. Amendment 0001 removed FAR 52.222-41 (Service Contract Labor Standards) and provided the Fort Hood Invoice Verification Checklist referenced in the contract. Offerors may submit additional questions and exceptions during proposal negotiations if not addressed in this document.

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Attachment X – Questions and Answers SPE60426R0401 Page 1

Texas

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.

Questions which were submitted to the Government but are not addressed below were determined to be exceptions to the stated terms and conditions of the solicitation. As a result, Offerors should submit those within their proposal (in Attachment II, Section K) for further consideration. As stated in Section A of the Solicitation, the Government reserves the right not to consider any exceptions received after the Offer Due Date [Standard Form 1449, Block 8].

1. Can you advise where the “Fort Hood Checklist” used for invoice verification may be found? It is noted on page 10 of the RFP and said its referenced in Section J. From the values in section J and the attached files on SAM.gov, I was unable to locate the referenced document.

DLA Energy Response: Please refer to Amendment 0001.

2. Please confirm that any Demand Response credits (Section 10) will be facilitated and verified by the Government as the Contractor alone cannot force a third party to act.

DLA Energy Response: Solicitation Section C, Subsection 10.0 states “The Contractor will be notified of any such enrollment with a third-party DRP [Demand Response Provider] and be required to facilitate the Government’s participation by applying any applicable credit from the third-party DRP to the invoice(s) of the participating accounts.” The Government concurs that the Contractor (alone) cannot force a third party (DRP) to act. Any actions needed to be performed by the Government fall under the purview of the Demand Response Program and the agreement executed between the Government and DRP.

3. Incumbents. Are there incumbent suppliers, and can their identity or pricing be disclosed? Are there switching or enrollment timing constraints with the TDSPs?

DLA Energy Response: The Government is unable to identify incumbent suppliers and their associated pricing, beyond what has already been made publicly available in SAM.gov.

Regarding the specifics of account switching or enrollment timing constraints, refer to solicitation Section B, Subsection 1.0 which states “The Contractor is responsible for… the scheduling and coordination for delivery of electricity to the service point for each account under the contract.”

Additionally, please refer to solicitation Section C, Subsection 4.0, Scheduling and Supply Management.

4. Section C 1.1(c)(5) and Section C 1.2(c): Other Market Charges indicate that ALL retail supply costs (other than FFP blocks) are to be passed-through. Is this the correct interpretation? Is it correct that all retail supply costs including ancillary services, CRRs, Securitization, etc. are to be charged on a pass-through basis?

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DLA Energy Response: Yes. Solicitation Section C, Subsection 1.1, paragraph (c)(5) states “any retail charges and supply costs to the Service Point except for energy (as defined in FIRM FIXED PRICE BLOCKS, Paragraph (a))” shall be treated as a direct pass-through to the Government with no additional mark-up. Solicitation Section C, Subsection 1.2, paragraph (c) states Other Market Charges are inclusive of any retail charges and supply costs to the Service Point except for energy (as defined in REAL TIME SETTLEMENT POINT PRICE, Paragraph (a).”

5. Contractor may have additional questions once all accounts have been provided in a format that is accessible and valid Letters of Authorization have been submitted to the utilities with load data returned.

DLA Energy Response: Refer to Section A of the solicitation for specifics regarding the submission of questions and exceptions. Additionally, in accordance with Section L, FAR 52.215- 1(f)(4), the Government intends to conduct negotiations with offerors whose proposals have been determined to be within the competitive range. Additional questions may be entertained during negotiations.

6. In Section 1.0: PRICING STRUCTURE AND TREATMENT, Subsection A, the FFP section speaks to paragraph “ii” to follow. There is no immediate paragraph ii following until the Fixed Blocks item in Section 1.1.

DLA Energy Response: Section C, Subsection 1.0, PRICING STRUCTURE AND TREATMENT, includes paragraph (a)(ii) which contains the following information:

ii. All retail FPP CLIN pricing shall NOT include TDSP charges, GRT, and PUCA which shall be a direct pass-through with no additional markup.

a. Please confirm that the DLA is looking for a fixed energy product that does not involve block prices from Section 1.1 DLA Energy Response: Section C, Subsection 1.0 does not involve block pricing.

Section C, Subsection 1.1, FIRM FIXED PRICE BLOCKS, provides instructions for Firm Fixed Price Blocks.

7. Can the DLA indicate which CLINs are actively participating in DR or will be participating in DR in parallel with the contract performance period?

DLA Energy Response: The Government confirmed CLIN 0018 Dyess Air Force Space is currently participating in Demand Response program.

8. Regarding SUPPLIES TO BE FURNISHED: Contractor would like to clarify that it is responsible for getting power to the Utility, and the Utility is then responsible for delivering to the service point. Contractor will not be responsible for delivering the power

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Texas to the service point, and cannot be held responsible for the Utility, financially or otherwise. Please confirm the DLA's understanding and intent of this language.

DLA Energy Response: The Government concurs. Refer to solicitation Section B, Subsection

1.0 which states “The Contractor is responsible for… the scheduling and coordination for delivery of electricity to the service point for each account under the contract.” Additionally, please refer to solicitation Section C, Subsection 4.0, Scheduling and Supply Management.

9. Price timing. What is the expected date and time for price submission, and how much advance notice will the amendment provide, given that prices hold firm for only four hours?

DLA Energy Response: Refer to Solicitation Section A, Subsection 1.0, which states the following: “Prices shall be submitted via Attachment titled “Pricing Sheet TX2026” on a date and time to be determined. The official date and time for the submission of prices will be established via solicitation amendment.”

10. Regarding Section C: DESCRIPTION/SPECIFICATIONS/REQUIREMENTS, Item 10.0:

DEMAND RESPONSE: In regard to the DR payments, can the DLA please clarify if it is requesting the Supplier to apply credits to customer invoices for DR served by another third-party provider that is not the Supplier itself?

DLA Energy Response: In accordance with Solicitation Section C, Subsection 10.0, the Government confirms Contractor “be required to facilitate the Government’s participation by applying any applicable credit from the third-party [Demand Response Provided] DRP to the invoice(s) of the participating accounts.”

11. Account 10032789412421045 (105 Kennedy St, Zapata, TX 78076) is missing the utility in the exhibit. Please confirm that this account is behind AEP Texas Central.

DLA Energy Response: Please refer to Attachment I – Installation Data Sheet A0001.

12. The clause 52.222-41 Service Contract Labor Standards is included in the list of clauses incorporated by reference and is not normally included in federal contracts for the supply of utilities such as electric power. Will the Government please remove this clause because the clause is only intended for use in “Service” type contracts as defined in FAR part 37.101, and this contract is for the delivery of an end unit of supply (electric power)?

Additionally, per 41 USC Section 6702(b)(5), the Service Contract Labor Standards do not apply to contracts for public utility services, including electric light, and power, water, steam, and gas.

DLA Energy Response: Amendment 0001 removes FAR 52.222-41 and consequently, FAR 52.222-62.

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13. Regarding CLIN 0015, the most recent 12 months of usage is significantly higher than the period of 12 months from January 2025. Can the DLA share details on why the most recent six months had significantly more usage than the prior year? Additionally, will the DLA confirm the block schedule does not need to be amended in lieu of the increase in the last 12 months of usage?

DLA Energy Response: The increase level of usage for CLIN 0015 NASA JSC during the period of November 2024 to November 2025 was the result of a one-time anomaly in which the CHB turbine was offline. The Government confirmed the block schedule is the most recent update provided by NASA JSC.

14. For CLIN 0015, can the DLA advise if the JSC Proj tab is to provide a reference for the block allocation?

DLA Energy Response: JSC Proj tab provides the projected usage for CLIN 0015 NASA JSC, as well as identifying the accounts in which the blocks should be allocated to.

15. For CLIN 0016, can the DLA advise if a tab is missing to address the block allocation as done for CLIN 0015?

DLA Energy Response: CLIN 0016 AAFES accounts all have Firm Fixed Price Block Utilizing RTSPP. Therefore, the block allocation should apply to all the accounts on CLIN 0016 AAFES.

16. For CLIN 0018, can the DLA confirm whether Account 10204049794837267 is active or inactive, as the most recent usage is zero for the last several months. Please confirm if the account can be removed or provide additional information regarding the account.

Additionally, can the DLA confirm if the base has started using natural gas generators? If so, can the DLA advise how facilities will continue to use the generators? Will the installation notify the supplier prior to any outage or maintenance schedule which would increase its load?

DLA Energy Response: DLA Energy confirmed the account is active in accordance with the confirmation from the installation (Dyess) and shall remain in the solicitation, and any resultant contract. DLA Energy cannot confirm the operation of the generators at the installation nor advise the installation regarding their utility operation. The current estimated usage kWh on Installation Data Sheet is DLA Energy best estimate using the available information.

17. Section C 10.0 Demand Response: Are any of the installations currently enrolled in a Demand Response program?

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DLA Energy Response: The Government confirmed CLIN 0018 Dyess Air Force Space is currently participating in Demand Response program.

18. Regarding Section 14.0: INVOICING AND PAYMENT OFFICES (a)(11): Is the notification of an estimated bill only required if the REP estimates usage? Does the DLA need to be notified if the estimate usage is provided by the TDSP?

DLA Energy Response: A notification to the customer (installation) is only required when an REP estimates usage. DLA Energy is not required to be notified if the estimated usage is provided by the TDSP, but we would appreciate a courtesy call or email.

19. Section C 14.0(a)(10): Mentions that Section J has a checklist for Fort Hood invoice verification. Section J on page 23 makes no mention of this checklist. Can the Government provide the referenced checklist?

DLA Energy Response: Please refer to Amendment 0001 Attachment VIII - Fort Hood Invoice Verification Checklist.

20. Agent and teaming. Will the government accept an arrangement in which the REP license and ERCOT participation are held by Mercuria and its 100% owned retail supplier but the ERP is bid by either its protégé or the JV it formed with its protégé via its SBA mentor protegee agreement such that the protégé has a federal license and is obtaining an ERCOT license but all the experience is with the mentor and its retail subsidiary? What documentation evidences a duly authorized agent?

DLA Energy Response: No. The Government only accepts proposal submitted by proposer that satisfied all the requirements set forth in Solicitation Attachment II (Proposal Requirements), Section D: Evidence of Responsibility. Specifically, “The offeror shall submit sufficient evidence to demonstrate that all responsibility criteria from both this Section (D) and FAR 9.104 have been satisfied. In accordance with FAR 9.103, the Government will award contract(s) to responsible prospective contractors only.”

21. Wholesale exception. For Section D(a), what specifically must we show for the government to exercise its discretion and accept wholesale experience?

DLA Energy Response: Regarding Solicitation Attachment II, Section D, paragraph (a), Offerors are required to “provide a response that explains how the criteria has been met.” Additionally, “The Government will award contract(s) to responsible prospective contractors only.” Therefore, the Government is unable to entertain any exceptions from Offerors to the stated criteria in Section D.

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22. Block CLINs. For 0015 NASA JSC, 0016 AAFES, and 0017 SPR, are block sizes and shapes (0.5 MW; all-hour versus on-peak or off-peak) offeror-proposed or prescribed in Attachments IV through VI? Please confirm the hub and load-zone settlement points.

DLA Energy Response: Please refer to Solicitation Section C, Subsection 1.1 for information pertaining to settlement points and Attachments IV, V, and VI for information pertaining to the block schedules.

23. Deficiency and excess. How are above-block and below-block quantities priced and settled?

Please confirm the RTSPP methodology and any caps.

DLA Energy Response: Please refer to Solicitation Section C, Subsection 1.1, paragraph (a)(2) (Quantities Outside Blocks of Electricity).

24. Collateral. Are there credit, collateral, or deposit requirements imposed by the government or the TDSPs and UDCs? Is any payment or performance security required?

DLA Energy Response: Please refer to Section C, Subsection 1.1, paragraph (b) and Section C, Subsection 1.2, paragraph (b) which states “All costs associated with operating and maintaining a Retail Electric Provider and/or a Qualified Scheduling Entity, including the cost of complying with the PUCT, ERCOT and TDSP credit and collateral requirements, shall be included in the Transaction Fee and cannot be passed through to the Government.”

25. Subcontracting. Is a Subcontracting Plan (Attachment III) required given our likely business size, and what small-business goal percentages are acceptable?

DLA Energy Response: Please refer to Solicitation Attachment II, Section I (SUBCONTRACTING PLAN) for specific information regarding the submission of a Subcontracting Plan.

26. Pass-through charges. Please confirm the FOB-destination and pass-through treatment of TDSP delivery charges, taxes, and ERCOT and UDC fees, and which charges are pass-through versus included in the adder.

DLA Energy Response: Please refer to the following paragraphs for the treatment of costs which shall be direct pass-throughs, with no additional mark-up:

• Section C, Subsection 1.0 paragraph (a)(ii)

• Section C, Subsection 1.1, paragraph (c)

• Section C, Subsection 1.2, paragraph (c)

Please refer to the following paragraph for the treatment of costs which shall be included in the Transaction Fee, and cannot be passed through to the Government:

• Section C, Subsection 1.1, paragraph (b)

• Section C, Subsection 1.2, paragraph (b)

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Additionally, please be mindful of the following:

• Regarding Firm Fixed Price Blocks, refer to Section C, Subsection 1.1, paragraph (b) which states “The Transaction Fee shall not include any charges identified in Paragraphs

(a) Electricity or (c) Other Market Charges; of this clause.”

• Regarding Real Time Settlement Point Price, refer to Section C, Subsection 1.2, paragraph (b) which states “The Transaction Fee shall not include any charges identified in Paragraphs (a) Energy or (c) Other Market Charges; of this clause.”

27. Holdover. For CLIN 0019, please confirm how the retail adder is bid and how the 90-day contingency is invoiced if accounts fail to transfer.

DLA Energy Response: Please refer to Solicitation Section B, Subsection 1.3 (HOLDOVER

CLIN 0019).

• Paragraph (b) addresses pricing.

• Paragraph (a) addresses the purpose of the CLIN, which states “This “HOLDOVER

CLIN” is for the sole purpose of alleviating the burden the ERCOT Market places on an incumbent contractor to continue to serve active Electronic Service Identifiers (ESI IDs) when, through no fault of the incumbent, such ESI IDs fail to transfer to a follow-on contractor prior to termination or expiration of the incumbent’s contract.”

• Paragraph (d) states “the sole purpose of this CLIN is to provide the ability for the Contractor to invoice and receive payment in the event of an error in transfer of accounts which such error occurs without fault of the Contractor.”

28. Load data. Is historical interval and load data available beyond Attachment I (for example, 12 to

24 months of hourly usage per account) to support hedging and pricing?

DLA Energy Response: Offerors who submit a proposal to the Government may subsequently submit a Standard Letter of Authorization (LOA) to the Government for signature. The Government will review the form and sign as the Customer. The Offeror may then provide the form to the TDSP to obtain summary and/or interval data.

29. Contractor notes treatment of line losses in 1.2.(a) asks for metered load to be “grossed up” for line losses. Note: Often when a customer says "gross up," suppliers also gross up the kWh and apply the fixed transaction fee and/or applicable energy price onto the grossed up volumes.

Customers typically require the amount of kWh to specifically align with kWh billed by the UDC and not gross those kWh up. Please confirm the Government’s intent is for this to show the overall $ cost for the account to reflect line loss costs. Contractor charges for line losses as a separate line item, to provide transparency, and does not gross up volumes for the transaction fee.

For the avoidance of doubt, Contractor charges the Transaction Fee on metered volumes. Please confirm. Contractor recommends explicitly clarifying this across suppliers to avoid inconsistent bids, as a difference in the volumes used to bill the transaction fee and the pass-through charges can result in a material difference in bid price and billed amounts.

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DLA Energy Response: With respect to the energy portion of the Real Time Settlement Point Price (RTSPP) and as reflected in Section C, Subsection 1.2(a), “the metered load should be increased for the current Transmission Line Losses…” This increase or “gross up” should not be applied to the metered load of the Transaction Fee (Section C, Subsection 1.2(b)).

30. Award basis. Will the government award by individual CLIN or bundle CLINs, and does it reserve the right to split a CLIN quantity?

DLA Energy Response: Refer to solicitation Section B, Subsection 1.1 which states “The Government intends to award on a CLIN basis, as stated in Table 1.” Additionally, refer to Solicitation Attachment II, Section H (PRICE) which states the following:

• Offerors may submit prices on all, some, or none of the Contract Line Item Numbers (CLINs).

• An offeror must propose to supply the total line item quantity for each CLIN. Failure to offer the total line item quantity will preclude Government evaluation and consequential contract award to the Offeror for the line item(s).

31. Load changes. Are there anticipated load changes, cogeneration, planned shutdowns, or new or closing meters beyond what is noted in the Installation Data Sheet?

DLA Energy Response: The Government has provided any known, anticipated load changes, cogeneration, planned shutdowns, new, or closing meters within solicitation Attachment I – Installation Data Sheet (IDS). If new or additional information becomes available, the Government intends to amend the solicitation to provide the information within an updated IDS.

32. Submission format. Please confirm acceptable proposal file types, page limits, and email size limits for the July 27 submission.

DLA Energy Response: Refer to Solicitation Section L, FAR 52.212-1(a), which addresses the submission of offers.

33. Discussions. Will the government hold discussions and establish a competitive range, or does it intend to award without discussions, in which case the initial offer should contain our best terms?

DLA Energy Response: Refer to Solicitation Section L, FAR 52.215-1(f)(4).

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