USCG Petaluma_NOO_SP060421R0407.pdf

Notice of Opportunity USCG TRACEN Petaluma

Notice of Opportunity USCG Training Center Petaluma

Energy Savings Performance Contract (ESPC) Task Order Under the Department of Energy’s (DOE) 2017

ESPC Indefinite Delivery Indefinite Quantity (IDIQ) Contract Solicitation: SP0604-21-R-0407

1. Notice: The Defense Logistics Agency (DLA) Energy, on behalf of U.S. Coast Guard

Training Center Petaluma (TRACEN Petaluma) plans to award an ESPC Task Order (TO) using the DOE 2017 ESPC IDIQ contract. DLA Energy invites the current 2017 ESPC IDIQ contract holders (also referred to as Energy Service Companies (ESCOs), to submit a written response to this Notice of Opportunity (NOO) for DLA Energy’s consideration. Only those 2017 ESPC IDIQ contract holders/ESCOs are eligible for award. To be clear, in the event of a resultant TO award, the award will only be made to one (1) of the 2017 ESPC IDIQ contract holders/ESCOs as the prime contractor.

2. Authority: The DLA Energy authority is in accordance with 42 U.S.C. §8287, the Federal

Acquisition Regulation (FAR) 23.205 “Energy-savings performance contracts”, Energy Policy Act of 1992 (EPAct), and DOE Final Rule, 10 CFR 436 Subpart B – Methods and Procedures for Energy Savings Performance Contracting and Energy Policy Act of 1992 (EPA, April 10, 1995).

3. Project Approach:

TRACEN Petaluma is looking for a comprehensive project to increase energy resilience, with a Task Order award goal of prior to the end of fiscal year 2021. In the last several years due to high wind events and wildfires, TRACEN Petaluma has become increasingly vulnerable to intermittent and prolonged power outages. TRACEN Petaluma supports approximately 500 students, 400 permanent party staff, and 500 family housing residents across 128 housing units; all encompassed within an 837-acre, 810K square foot campus.

Without reliable electrical power, the installation’s facility engineering support component marginally provides for basic services during increasingly more frequent commercial power outage periods in the region. TRACEN Petaluma aims to leverage existing or expanded infrastructure, to specifically harden TRACEN Petaluma’s electrical power systems and make it capable of sustaining operations during regional grid outages, to enable TRACEN Petaluma to continue operations for prolonged periods (10+ days) during a regional grid outage or disaster event. This will be accomplished by diversifying existing power generation

- that includes numerous, existing stationary emergency generators (965 kW diesel and 163 kW propane, as detailed in Attachment 2 – Existing Emergency Generators), a 855 kW AC solar photovoltaic (PV) array that was installed in 2009 through a power purchase agreement (PPA) and a 125 kW AC PV roof-top system that is government owned (see Attachments 2 and 3); hardening the local distribution system, and implementing smart distribution and generation controls. The resulting microgrid shall be capable of powering numerous mission critical and support facilities during a utility grid outage (see Attachments 4 – Electrical One- Line Diagrams and Attachment 5 – Site Map and Arial Photographs). TRACEN Petaluma envisions additional PV and a new battery energy storage system (BESS) as part of this project and is open to alternative suggestions from ESCOs. The BESS shall also be used for cost savings, to reduce on-peak energy use and peak demand when connected to the electrical grid. Note that TRACEN Petaluma is investigating a change from their current electric rate, E-20 P to E-20 Option R that can be considered an ECM in this project.

TRACEN Petaluma has a long history of self-performance of energy efficiency and water conservation measures as well as a comprehensive Utility Energy Services Contract (UESC) in 2014 that is no longer in a performance period phase. Even with that progress, TRACEN Petaluma would also like to support energy and water intensity goals, to increase renewable energy, and to address specific infrastructure deficiencies in line with Executive Order (EO) 13834 and 42 U.S.C. § 8287 utilizing the 2017 ESPC IDIQ contract.

In implementing EO 13834, each agency shall prioritize actions that reduce waste, cut costs, enhance the resilience of Federal infrastructure and operations, and enable more effective accomplishment of its mission. By enhancing energy assurance, TRACEN Petaluma will make progress towards meeting USCG Energy Management Policy COMDTINST 4100.2E and Federal mandates to reduce energy use intensity and increase use of renewable energy. To achieve its energy conservation goals, TRACEN Petaluma is interested in any Energy Conservation Measure (ECM) defined in Attachment J-3 of the 2017 ESPC IDIQ contract. TRACEN Petaluma, along with any other ESCO-identified opportunity authorized under the 2017 ESPC IDIQ, is specifically interested in evaluating the following ECMs to achieve its resilience and conservation objectives, in priority order:

• Electric infrastructure upgrades, including a microgrid controllers, that allow for black start capabilities and islanded operations as well as utility connected operations

• Solar photovoltaic (PV) array

• Battery energy storage system (BESS)

• Other generation sources as deemed appropriate by the ESCO

• Load management controls of predetermined non-essential functions, buildings or activities. Determining critical versus non-critical loads shall be done in coordination with TRACEN Petaluma leadership to develop fast load shedding schemes.

This project is intended to be designed to power the entire site, to be scalable and systemically expandable to include anticipated site load growth. The potential microgrid design should consider the following:

• Integration of existing PV and emergency generators.

• A new microgrid information system monitoring and control system.

• The existing Supervisory Control and Data Acquisition (SCADA) system for HVAC control (limited coverage) and a separate SCADA for the on-site wastewater treatment plant.

• New automatic transfer switches and transformers that will be installed in FY21 and new transformers anticipated in FY23.

• Economic dispatch capability for on-peak energy use and demand reduction; and other value streams as identified by ESCO.

• Maintain a safe, reliable microgrid system with no worse than utility grade power quality as outlined by the IEEE and other codes, including power factor, current, voltage (level, range, and balance), harmonic distortion, and frequency.

• Maintenance of all PV and generators included in the final configuration.

Though the microgrid will be designed to service the entire site, it is recognized that non-critical loads may need to be reduced in the event of limited generation and or storage. The ESCO shall work with USCG to identify both critical and non-critical loads for a demand responsiveness to available generation resources. ESCO to develop fast load shedding schemes and integrate demand responsiveness into TRACEN Petaluma SCADA system to the greatest extent possible.

The ESCO will be responsible for fulfilling all Pacific Gas & Electric (PG&E) interconnection requirements (islanded and utility connected) and ensuring that all USCG and PG&E interconnection deadlines are met. If an Energy Sales Agreement (ESA) is used (see below), the interconnection agreement will likely be a tri-party agreement between PG&E, TRACEN Petaluma and the ESCO. The existing PV interconnection agreements may also need to be modified or incorporated into a new interconnection agreement. The ESCO shall be responsible for working with the existing PPA contractor as needed to modify or incorporate the prior interconnection agreement.

In addition to government ownership, TRACEN Petaluma is also interested in considering private ownership of the solar, BESS and/or other generation using an Energy Sales Agreement (ESA), so that the ESCO can take advantage of federal and other tax incentives1, passing the savings on to TRACEN Petaluma in the form of a lower ESA price (cents/kWh). ESCO experience with ESAs (including power purchase agreements, PPAs) will be considered during the ESCO selection process. The selected ESCO will be asked to prepare an analysis comparing government and private ownership during the Preliminary Assessment. Information regarding ESPC ESAs (including the OMB title retention requirement, the applicable IRS revenue procedure and the use of a reserve account to collect funds for a fair market value title transfer at the end of the contract) is available in the ESPC ESA fact sheet (https://www.energy.gov/eere/femp/downloads/energy-savings-performance-contract-energy-sales-agreementsspecifically) with additional details on the FEMP website (https://www.energy.gov/eere/femp/energy-savings-performance-contract-energy-sales-agreements). The ECMs that are not eligible for tax incentives will be Government owned.

Regardless of ECM ownership, the selected ESCO shall be responsible for the operation, maintenance, repair and replacement (including BESS and PV inverter replacement) of the priority ECMs for the life of the contract and may require a response of 24 hours per day/7days per week and a 30-minute response time subject to discussion during the PA and

1 Tax incentive eligibility due diligence is the responsibility of the ESCO, not USCG.

https://www.energy.gov/eere/femp/downloads/energy-savings-performance-contract-energy-sales-agreementsspecifically https://www.energy.gov/eere/femp/downloads/energy-savings-performance-contract-energy-sales-agreementsspecifically https://www.energy.gov/eere/femp/energy-savings-performance-contract-energy-sales-agreements https://www.energy.gov/eere/femp/energy-savings-performance-contract-energy-sales-agreements

IGA, pursuant to the 2017 ESPC IDIQ and any resultant TO, and as required by 42 U.S.C. § 8287. There will also be microgrid performance requirements and penalties for non-performance. Be advised that the resultant project shall be accomplished in compliance with the USCG Energy Management Policy COMDTINST 4100.2E and in accordance with the USCG Energy Performance Contract Green Book Pub. 1.0 2nd Edition.

Attachment 1 – TRACEN Petaluma Building Data provides the buildings available for inclusion in the project scope and their pertinent data and available energy consumption information. Available for inclusion in the project scope currently are 219 buildings encompassing 810,000 square feet over 837 acres at TRACEN Petaluma. Any undeveloped land, parking area or suitable rooftop across the 887 acre campus is available for either PV or BESS as building codes allow. This information is offered only for project scoping potential in response to this NOO. The Government may remove or consider additional buildings at TRACEN Petaluma during the project development phase and include such added buildings in any resultant project upon the receipt of a good business case analysis that illustrates a benefit to the Government.

The selected ESCO will be required to develop a formal Preliminary Assessment (PA) and Investment Grade Audit (IGA), as applicable, in accordance with the 2017 ESPC IDIQ.

The selected ESCO shall be responsible for determining the actual energy consumption during the PA and IGA phases. The selected ESCO shall review each building during the PA and illustrate its Measurement & Verification (M&V) approach. The selected ESCO shall meet all PG&E telemetry and metering requirements and integration with the TRACEN Petaluma’s advanced metering initiative (AMI). The selected ESCO shall meet any cybersecurity requirements applicable at time of award for any systems or equipment included as part of any proposed ECMs or integration with existing systems or equipment.

TRACEN Petaluma and the USCG expect an expedited PA and IGA development to meet anticipated mission resiliency needs.

Pursuant to the 2017 ESPC IDIQ, Section C.12, Financial, Tax, or Other Incentives for

Energy Efficiency and Renewable Energy and Water Projects, any credits, rebates, and incentives from the Government, utility companies, and private companies shall be pursued by the ESCO to the maximum extent practicable. The ESCO shall also investigate all potential value streams.

In any resultant IGA, the selected ESCO will be required to include and illustrate the clear lines of demarcation between its new project and any existing energy conservation projects. The project M&V Plan shall clearly illustrate the savings to assure the Government review team that any energy savings achieved are the result of the ESCO’s installed ECM(s) under the resultant project and are not the result of an existing or separate energy project or some other circumstance unrelated to the resultant project.

4. Submission Requirements:

The 2017 ESPC IDIQ will be the contracting vehicle used to implement this energy conservation project. DLA Energy, on behalf of TRACEN Petaluma, invites all current 2017 ESPC IDIQ contract holders/ESCOs to submit a written response to this NOO for consideration. This NOO constitutes your opportunity to be considered for this potential project. A site visit will likely not be offered as part of the down-selection process.

a. Response Preparation Instructions:

(1) Document Submission:

Responses must be completed and submitted to the following email mailbox:

DLAEnergy-ESPC@dla.mil. The maximum size limit for any email is 50MB. It is the submitting ESCO’s responsibility to ensure and confirm its response is delivered in its entirety, in accordance with the submission requirements, by the required date and time specified herein. Facsimile and/or hard-copy responses to this NOO are not acceptable. Late responses will only be considered as authorized by the Federal Acquisition Regulation.

Any formal communications, such as requests for clarifications and/or information concerning this NOO, must be submitted to the above email address and emailed to both christine.bond-jawish@dla.mil and jacob.vigil@dla.mil no later than 8 January 2021 3:00 p.m. EST Ft. Belvoir, VA.

To assure timely and equitable evaluation of responses, ESCOs must follow the instructions contained herein. ESCOs are required to meet the requirements of the 2017 ESPC IDIQ, the NOO, and all attachments thereto to include any terms and conditions, representations and certifications, and technical requirements. Failure to meet a requirement may result in a response being ineligible for selection.

(2) Page Limitations and Number of Copies:

Page limitations for each eligible ESCO’s response are stated in paragraph (6) below. If page limitations are exceeded, the excess pages will not be considered as part of the evaluation of the submitted response. Each page shall be counted except the following: cover page, blank pages, tables of contents, tabs and glossaries, and those parts of the response noted herein as exempt from the page limitations.

(3) Page Size and Format:

A page is defined as the electronic equivalent of a single side of a sheet of paper containing information. Page size shall be 8.5 x 11 inches. The draft TO-4 schedule may be submitted as an 11x17 document and will not count toward the page limit requirements. Pages shall be single-spaced. Except for the reproduced sections of the NOO and its attachments, if needed, the text size shall be no less than 12 point.

For tables, charts, graphs and figures, the text shall be no smaller than 10 point. Use mailto:DLAEnergy-ESPC@dla.mil mailto:christine.bond-jawish@dla.mil mailto:jacob.vigil@dla.mil at least 1-inch margins on the top and bottom and ¾ inch side margins. Pages shall be numbered sequentially.

The response shall be submitted in a format readable by Adobe Acrobat, as applicable, and conform to the requirements listed above. Legible tables, charts, graphs, and figures shall be used wherever practical to depict organizations, systems and layout, implementation schedules, plans, etc.

(4) Indexing:

To the greatest extent possible, indexing shall be used to readily identify information contained in the response. The response shall contain a detailed table of contents to delineate the paragraphs, subparagraphs, etc. Tab indexing shall be used to identify sections. Indexing and tabbing pages shall not count against the page limitations.

Any information included on these tab or index pages outside of the realm of a tab or index intent shall not be considered. All .pdf documents shall include electronic bookmarks marrying section or tabs accordingly.

(5) Glossary of Abbreviations and Acronyms:

The response shall contain a glossary of all abbreviations and acronyms used, with an explanation for each. Glossaries do not count against the page limitations.

(6) Response Requirements

The ESCOs are responsible for verifying the completeness and accuracy of all information furnished to them by the Government. Failure to include all information requested may adversely affect the evaluation and may result in a response being ineligible for consideration. Responses to this NOO must be received no later than 22 January 2021, 3:00 p.m. EST Ft. Belvoir, VA. All interested and eligible ESCOs shall submit the following in order to be considered:

Factor 1 – ESCO Approach and Technical Competencies: (Fifteen (15) single-sided pages maximum)

The ESCO’s response to this factor shall include sufficient information to identify and describe the ESCO’s project management capabilities, general approach, and proposed strategy for this project, addressing the identified ECMs in paragraph 3 of the NOO.

To qualify as an ECM under this NOO and any resultant TO award, any ECM or component in an ESCO's response must improve energy efficiency consistent with 10 CFR § 436.31 and otherwise meet the definition of ECM as defined in the 2017 ESPC IDIQ. The Government is not seeking a response similar to a PA. The Government is only looking for a reasonably illustrated approach as to how the ESCO would pursue microgrid, energy conservation and Demand Reduction (DR) efforts to meet TRACEN Petaluma needs. The response shall present the following:

a) ESCOs shall present the ESCO’s management capabilities and personnel qualifications related to TRACEN Petaluma facility characteristics and the project objectives to a) manage the design, construction, and continued performance of the microgrid and other ECMs in efficient and cost-effective manner; b) management style and capacity for resources as demonstrated through the organization and key personnel.

b) ESCOs shall present the ESCO’s approach to its investigation and development of its recommended ECMs for TRACEN Petaluma culminating in the scope of work for this project. The ESCO shall provide its rationale for each ECM recommended and the determining factors that led to the recommendation. The response must provide clear and convincing evidence as to why and how the selected ECM(s) will meet the needs of TRACEN Petaluma. The ESCO shall draw upon and reference information provided in NOO Attachments for the development of its response, as well any applicable industry standards and all other information reasonably available. In addition, the ESCO shall submit a draft Task Order Schedule 4, Performance Period First Year Estimated Cost Savings, by ECM illustrating the ESCO’s recommended ECMs savings, less the ECMs’ associated implementation costs. Any included industry standards may be submitted in 11x17 size and format to improve readability, which does not count against the page limit for Factor 1. Any ESCO assumptions utilized in the development or selection of ECMs shall be clearly presented and highlighted in its response.

c) ESCOs shall provide an initial estimate of the amount of PV (in kW DC), BESS (kW

DC and kWh) and/or other generation sources that can be installed cost-effectively within the constraints given in this NOO and the potential performance contract. The PV, BESS and other generation source size estimates will be refined during the PA and finalized during the IGA. The ESCO shall also provide a description of the planned grid-forming assets and additional microgrid controls/components that will be required.

d) Explain how the ESCO will finance (use of tax equity, debt and/or internal financing) and structure the project under an ESA to maximize the benefits of federal tax incentives and applicable state/local incentives to the government.

e) ESCOs shall include a discussion of resources it intends to utilize during the project

(including O&M and other resources needed during the performance period), as well as the use of small businesses and subcontracting or teaming arrangements to be established if selected.

Factor 2 – ESCO Experience (five (5) single-sided pages maximum)

The ESCO’s response to this factor should include sufficient information to identify and describe the experience of the ESCO as prime contractor for five (5) similar projects, which the ESCO has been awarded since October 1, 2009. Projects will be considered “similar” if they contain the characteristic listed below. At least three (3) of the submitted projects must have been ESPC contracts or task orders. If an ESCO submits more than five projects, only the first five will be considered for evaluation.

For each project, provide a narrative explaining how the project relates to the item below.

Include the Agency/Owner point of contact (name, title, phone number, and email address); location of each project; the date of the task order or contract award; actual or projected construction completion date; and specific energy and water savings estimated and delivered under the contract in terms of the following values for pre- and post-retrofit conditions: energy and water consumption, costs (including PV system size and price per installed kW DC and/or cents/kWh; BESS size and price/installed kW DC and price/kWh storage capacity and BESS payment structure), percent reduction, and usage intensity (MBTU/SF/yr or Kgal/SF/yr). For projects currently in the performance phase, include information on whether the guaranteed savings for previous years has been achieved.

Projects that have multiple phases will only be evaluated for the phase falling within the prescribed time frames (award date on or after October 1, 2009). If only a single-phase falls in the required time frame, only information regarding that particular phase of the project should be submitted.

Factor 2 submissions shall address the following:

Projects where the ESCO completed design, construction and operation of any of the following systems: microgrids, microgrid controls and enhancements with emphasis on islanding capability, distributed generation (renewable or non-renewable; specifically PV and BESS with private ownership, through an ESA or a PPA, with experience monetizing the ITC and other tax incentives), modifying existing generators for use in the microgrid, electric distribution system enhancements, SCADA, electrical peak shaving with load shifting, integration with existing efficiency and; and other energy resiliency and conservation systems. Experience should include fulfilling air emission permitting requirements; and completing the interconnection process for generation assets that operate in both utilities connected and islanded microgrid operations.

For projects involving private ownership: describe how the project was financed and details regarding the contract structure.

The ESCO shall provide sufficient information for the Government to assess the ability of the ESCO to implement and structure a PV and BESS ECM at a reasonable cost and with a reasonable ESA price (if private ownership) including microgrid operation.

Factor 3 – Past Performance:

This factor considers the ESCO’s past performance as prime contractor on the projects submitted under Factor 2 that illustrates successful performance, including that of accurate reporting, timely delivery, on-cost delivery, and technical excellence. Past performance will be evaluated based upon information provided by the ESCO, information available to the Government on the Past Performance Information Retrieval System (PPIRS) and the direct knowledge of evaluators. The Government is not limited to reviewing only those references provided by the ESCO. The Government may also consider the ESCO’s performance on contracts not submitted by the ESCO and that the Government is aware of or becomes aware of as a result of other means.

Factor 4 - Price: (Five (5) single-sided pages maximum)

a) The ESCO shall provide a narrative discussing and defining any cost benefit or other financial advantage its company can provide that would minimize the project cost to the Government, including a description of all potential revenue streams, as well as the tax and other incentives that could be monetized and whether they are available with a government vs. privately owned approach.

b) For each of the five (5) ESPC projects submitted in Factor 2 of the NOO, provide the following data:

i. From the Final Awarded TO-2 for each project (assuming the project is an ESPC);

• Total Direct Implementation Expense;

• Total Indirect Implementation Expense;

• Total Implementation Expense Profit;

• Total Implementation Price;

• Total Project Development Price

Note: If one or more of the submitted projects was not an ESPC, ESCO shall submit comparable information (direct construction expenses, indirect (overhead) expenses, profit, and total construction price) and indicate that the project development fee is not applicable.

ii. Total Gross Square Feet (gsf) covered by the project;

Factor 3 will evaluate the costs the contractor included in its pricing of previous ESPCs contracts and task order.

• The combined Total Implementation Indirect Expense and Total Implementation

Profit will be reviewed as a % of Total Direct Implementation Expense

• IGA Price (if applicable) will be reviewed as a % of Total Project Implementation

Price, and as a $ amount per gross square foot. (Projects for which IGA price is not applicable will not be evaluated for this item.)

Indirect Expense and Profit will be compared to recent DOE benchmark figures. DOE benchmark figures and both DLA Energy and USCG historical pricing will be used to evaluate IGA prices. Lower costs/percentages will be viewed more favorably, however, the evaluation team may take into consideration situations in which facility square footage that is substantially higher or lower than average project size may have skewed these numbers.

5. Evaluation Methodology

a. Basis for Selection:

Task Order down-selection procedures, as set forth in the 2017 ESPC IDIQ, paragraph H.3, will be used to make an integrated assessment for a best value decision for ESPC services at a firm-fixed price. Responses will be evaluated using the following four factors, in order of importance:

1) ESCO Approach and Technical Competencies.

2) ESCO Experience.

3) Past Performance; and

4) Price.

Factor 1, ESCO Approach, Factor 2, ESCO Experience, and Factor 3, Past Performance are of equal importance. When combined, Factor 1, Factor 2 and Factor 3 are more important than Factor 4, Price. The evaluation process may involve a two-phased process, with 3-5 ESCOs selected based on responses to this NOO to participate in oral interviews.

The resultant TO may be awarded to the responsible ESCO that provides the best fit in achieving energy assurance, reduction of energy use intensity, and increased use of renewable energy and energy production for TRACEN Petaluma. Best fit means the expected outcome of an acquisition that, in the Government’s estimation, provides the greatest overall benefit in satisfying the requirement and represents the best value to the Government in consideration of the ESCO’s approach, ESCO’s experience, Past Performance, and Price.

b. Number of Contracts to be Awarded:

The Government intends to award one (1) resultant TO for this requirement. However, the Government reserves the right not to award a TO at all.

Attachments:

1 - Petaluma Facility List 12.8.20 2 - Existing Generator List 3 - Existing PV Locations 4 - One-Line Diagrams 5 - TRACEN Petaluma Site Map and Arial Photographs 6 - Monthly Energy Data 7 - 15-minute Interval TRACEN Installation Energy Data 8 - Building Energy Summary and TRACEN Data Package 12.8.20