JB_MDL_PPA_RFI_with_attachments.pdf

Solicitation Number: W912DY-18-T-PPA1 Notice Type: Request for Information

Response Date: 01 June 2018 Special Notice

Synopsis:

This is a Request for Information (RFI). This RFI shall not be construed as a Request for Proposal (RFP), a lease solicitation, or any obligation on the part of the Government. The Government does not intend to select or qualify proposals or offers on the basis of this RFI or otherwise pay for information obtained via this RFI or in response to this notice.

No basis for claim against the Government shall arise as a result of a response to this RFI.

The Government is performing market research to determine feasibility of contracting for various energy generation technologies for the purpose of providing resilience to Joint Base McGuire-Dix- Lakehurst (JB MDL), specifically to McGuire loads (illustrated in Appendix A).1 The Government is specifically interested in determining the viability of procuring reliable, locally-generated, electricity from a Contractor-constructed, owned, operated, and maintained energy generation facility via a Power Purchase Agreement (PPA) 10 USC § 2922a contract. The energy generation facility would provide continuously available, non-interruptible primary power to McGuire and provide capability for islanding McGuire substations in the event of a utility grid outage.

The energy generation system shall be designed and optimized to meet the Government’s respective requirements under two (2) operating conditions: Normal Operation and Grid Outage Operation.

• Normal Operation is defined as periods where McGuire is able to draw electricity from the utility grid.

o In Normal Operation, the energy generation system would provide McGuire with up to 16,114,000-25,782,400 kWh per year of primary power at a PPA rate (in $/kWh).

• Grid Outage Operation is defined as periods where McGuire is operating independently from the utility grid in an electrically islanded mode.

o In Grid Outage Operation, the energy generation system will provide McGuire with primary power and islanding capability for 5-11 MW of critical substation load with the capability to isolate from the utility grid. The Government’s interest is to increase electrical power availability to mission functions during periods of grid failure.

Evaluation during the RFP phase will be based on 1) total cost as measured by the offerors' levelized cost of energy as USD$/MWhr to include consumption, avoided peak demand charges, market participation benefits, etc., as compared against other offerors' solutions and against existing grid parity 2) evaluation of the technical reasonableness and sufficiency of the solution, and 3) evaluation of the offerors’ ability to complete, maintain and operate the project based on prior performance and demonstrated capability.

1 For information about DoD Energy Resilience Initiatives, see https://www.acq.osd.mil/eie/IE/FEP_Energy_Resilience.html.

Interested entities should address all questions in the questionnaire below and demonstrate ability to execute the Government’s following notional requirements.

Government Notional Requirements:

General Requirements (including requirements in Normal Operation)

1. The Contractor shall develop, finance, design, build, own, operate and maintain an off-site energy generation facility. The Contractor shall be responsible for providing all labor, material and capital to deliver energy from the proposed generation facility to the substations located at McGuire (see map in Appendix A). This will consist of all operation and maintenance, including upgrading and replacement of equipment required to ensure reliable deliveries of energy for the duration of the contract.

2. The Air Force will not subsidize the development, construction, or operation of any improvements (the Air Force would agree to purchase the energy) and does not warrant the availability of off-take agreements or contracts for the generated energy, except for the load provided via PPA listed in this RFI.

3. The electrical supply from any offsite generation assets shall feed the installation directly via a dedicated line, independent of the commercial grid.

4. JB MDL will not provide any Government property for the generation facility. It is anticipated that off-site generation will occur at a one or more locations adjacent to JB MDL.

However, if the configuration includes assets that require minimal (<1 acre) land use such as for a battery or standby generator, JB MDL will provide easements for installation of all those components on Government property near the substations. JB MDL will also provide easements for interconnection to the installation’s distribution systems.

5. The Government will purchase up to 16,114,000-25,782,400 kWh of electricity from the proposed energy generation facility, per Production Year.

6. The Contractor’s proposed system must be able to deliver electric power to the Government at a total delivered cost between $0.05 and $0.15 per kWh.

7. During periods of Normal Operation, the Contractor may use generation and other resilience assets as revenue-generating, grid-facing resources for power generation beyond the agreed upon amount provided to the installation, as long as all other Government Notional Requirements listed herein are met. The Contractor shall meet any AF cyber security regulatory requirements regarding risk management framework (RMF), interconnection, and separation for assets used in Normal and Grid Outage operations.

8. The PPA Term shall be the minimal period necessary to support the financing of the Project or other development considerations, but in no event shall the PPA Term exceed 25 years including construction.

9. Should the Contractor propose net-metering as part of this project, the Contractor shall be responsible for arranging all net metering agreements.

10. Should the Contractor propose solar PV as part of the configuration, the contractor will retain ownership of any Renewable Energy Credits (RECs), tax advantages (Investment Tax

Credit and/or Production Tax Credit), and/or any other environmental attributes, and may sell them to a third party.

11. Should the Contractor proposed fossil fuel based generation, they must:

a. Have adequate fuel supply for continuous operation for no less than seven (7) days and a resourcing plan acceptable to the AF demonstrating the offeror's ability and commitment to provide fuel indefinitely.

b. Obtain/maintain their own air quality permit for any fuel based generation assets.

12. The Contractor (at its sole expense) shall be responsible for ensuring compliance with:

a. All applicable Federal and State environmental laws and regulations.

b. Force Protection and Anti-Terrorism requirements of JB MDL.

c. Department of Defense (DoD), National Institute of Standards and Technology

(NIST) and other applicable cybersecurity standards.

13. The proposed generation asset shall meet all power quality standards as required by

Pennsylvania-New Jersey-Maryland Interconnection (PJM) Regional Transmission Organization and outlined by the Institute of Electrical and Electronics Engineers (IEEE) including power factor, voltage (level, range, and balance) harmonic distortion, and frequency. The Contractor shall ensure that operation of the generation asset does not create upset conditions on the existing parallel McGuire grid.

14. The Government shall be responsible for conducting any required studies on the effect the solar array will have on air traffic on and around JB MDL in accordance with DoD and Federal Aviation Administration (FAA) policy and guidance.

15. The Contractor shall adhere to any additional applicable terms and conditions resulting from this and other market research.

Energy Resilience Requirements

16. The proposed configuration must be designed to meet historical 15-minute interval load (shown in Appendix B) with a 15% safety factor during Grid Outage Operation. Potential resilience scenarios to be covered by this project include:

a. Resilience to Substation 2 load (~5 MW peak load).

b. Resilience to Substation 2 and 3 loads (~11 MW peak load).

17. In Grid Outage Operation, the proposed configuration must be designed to sustain load for a minimum of seven (7) continuous days in Grid Outage Operation.

18. In Normal Grid Operation, the proposed generation facility shall provide four nines (99.99%) of availability (no more than 52.56 minutes total outage per year), with no more than (3) unscheduled outages per year. No outage during grid failure shall exceed 30 minutes, and Contractor shall ensure that all equipment, controls, and personnel are available to meet this requirement.

19. The proposed generation and resilience assets, switching, and controls should follow guidance outlined in IEEE standard 1547.4 to safely and effectively island loads. AF seeks to employ a modular open architecture as it develops this and future energy resilience projects, including microgrid(s).

20. Proposed configuration should include automated and/or manual switching to island identified loads, generation, and storage into a microgrid for Grid Outage Operation.

21. The Contractor must be able to regularly demonstrate system readiness to island McGuire substations described above in the event of a utility grid outage through periodic (annual and/or monthly) testing.

Sources Sought Questions:

1. What is the name and brief description to include type of entity, (i.e., partnership, corporation, etc.), of the public or private organization or business potentially interested in developing energy generation as stated above for JB MDL?

2. What is the business address and web site address?

3. Who are the point of contacts, including name, position, telephone number, and email address, for the submitted information?

4. What is your current and relevant experience, or comparable commercial experience, in developing, constructing, and operating energy generation and resilience assets?

5. If you believe that the Government’s notional requirements are not feasible or cost effective, please explain. An explanation should include both the perceived problems with the notional requirements and proposed substitute requirements.

6. What would be your proposed remedy to ensure Contractor performance in the event of a breach of contract requirements, specifically those listed in terms of Normal Operation (i.e.

the Contractor fails to provide the minimum amount of power specified in a given Contract Year).

7. What is the proposed technology configuration to achieve the Government Notional Requirements? Include all generation and resilience technologies, potential capacity (in MW), islanding capability, interconnection configuration, and other requirements (e.g.

water, fuel).

a. Why are you suggesting that specific technology and plan?

b. What would be the expected annual fuel requirements and responsibilities for the proposed configuration?

c. What is the notional project development timeline to reach operation?

d. How much land will is required for the proposed concept (both on McGuire and on an off-base parcel)?

i. Per Government Notional Requirements #3, please indicate whether the concept would require land on-base via easement (not to exceed 1 acre).

e. If applicable, how would this concept utilize NJ and PJM Renewable Energy Credit and/or ancillary grid services market to generate revenue?

f. What testing requirements are recommended to demonstrate system readiness to island the McGuire load?

g. What is the minimal period necessary to support the financing your proposed concept?

8. Identify standards you believe facilitate the objective of a modular open architecture (as specified in Requirement #16 above).

9. What alternative technology configurations or acquisition vehicles would you recommend for this concept that meet the Government Notional Requirements (for all alternatives provided, please provide similar details as requested in Question 7)?

10. Are you a small business? If so, what type?

Interested entities should submit their questionnaire (sources sought) responses via email to Victor.G.Petty@usace.army.mil no later than 5:00 PM Eastern Time on 01 June 2018. Microsoft Word or Adobe Systems Portable Document Format (PDF) e-mail attachments not exceeding ten (8.5 inches x 11 inches) pages (five pages if printed two-sided) and 10 Megabyte total are acceptable. Facsimile submissions will not be accepted. Cover letters and extraneous materials (brochures, pamphlets, etc.)

will not be considered. The Government will analyze all of the submitted information and determine among other things: the probability of realizing the Government’s notional requirements; the suitability of the available parcel for the Government’s proposed use; and the most appropriate acquisition strategy.

Interested parties should submit any additional questions or clarifications to Victor.G.Petty@usace.army.mil as part of or with their questionnaire response. Please do not contact other Air Force staff with questions regarding this RFI.

We appreciate your interest and thank you in advance for responding to this Request for Information.

Primary Point of Contact: Victor Petty, U.S. Army Corps of Engineers, Victor.G.Petty@usace.army.mil.

mailto:Victor.G.Petty@usace.army.mil

Appendix A: Parcel Map.

Appendix B: McGuire Average Daily Interval Data

Substation 2 15-minute load data (Wh)

0:15 0:30 0:45 1:00 1:15 1:30 1:45 2:00 2:15 2:30 2:45 3:00 3:15 3:30 3:45 4:00 4:15 4:30 4:45 5:00 5:15 5:30 5:45 6:00 6:15 6:30 6:45 7:00 7:15 7:30 7:45 8:00 8:15 8:30 8:45 9:00 9:15 9:30 9:45 10:00 10:15 10:30 10:45 11:00 11:15 11:30 11:45 12:00 12:15 12:30 12:45 13:00 13:15 13:30 13:45 14:00 14:15 14:30 14:45 15:00 15:15 15:30 15:45 16:00 16:15 16:30 16:45 17:00 17:15 17:30 17:45 18:00 18:15 18:30 18:45 19:00 19:15 19:30 19:45 20:00 20:15 20:30 20:45 21:00 21:15 21:30 21:45 22:00 22:15 22:30 22:45 23:00 23:15 23:30 23:45 0:00

Sub 2 Max

906975 902216 901503 875861 869807 853007 866829 868968 848417 841850 863648 850112 850785 880803 871085 883515 891674 916092 936490 901776 937622 932972 962682 996130 963138 1014718 1045143 1054059 1068784 1098011 1091105 1079504 1108800 1128536 1129448 1136258 1145324 1155503 1178647 1184400 1194645 1200976 1142309 1157203 1143891 1141591 1161655 1175993 1186744 1192812 1199941 1219511 1207305 1225355 1235467 1224073 1193211 1200575 1204596 1187462 1202079 1157677 1135474 1118233 1092038 1068341 1063829 1041002 1045269 1024734 1006444 982523 958157 987216 994460 1013699 1003102 1030227 991667 986288 981954 962014 939533 932611 936857 937129 921100 917830 913122 909367 893290 885736 889568 902774 890154 876264

Sub 2 Average

674270 673095 675554 673084 667318 665759 666023 665089 665009 662009 662190 659382 660189 671941 681183 685755 691917 697557 703976 710596 722914 721778 724355 731436 742119 757565 771362 780653 793490 806881 814938 815420 822114 830962 834855 839438 841793 840897 848539 853627 857612 853841 846921 845166 851052 854003 855297 853674 858870 863479 864881 866558 863206 866279 869299 873229 867066 862178 856804 846363 837398 828062 813664 805472 793415 787609 782726 769154 760548 747598 739211 733606 725592 730012 731384 737993 734758 734218 729490 725241 722228 721973 711569 707346 702143 695986 693620 692701 686718 681837 675739 673681 672549 671637 668758 664793

Sub 2 Min

503445 512769 515576 519302 517462 517444 512359 517482 514787 520303 517238 519253 514933 518235 519968 531948 529799 533137 532702 534555 543452 524825 520003 492570 507469 499657 506377 499618 505478 500738 505351 503575 508346 511174 419251 478629 502207 500813 366495 371746 391771 503847 512785 495848 520956 504058 515452 498158 516698 513886 371422 365822 373141 371629 370009 370689 371894 366206 373816 373160 374974 378386 374529 368069 381128 376850 377900 377796 372549 372881 371938 376050 368353 370989 369954 400435 398325 405515 403095 403105 399561 405479 409122 404777 403079 395376 392323 394554 394957 397796 393188 395413 384923 390561 385104 387309

Substation 3 15-minute load data (Wh)

0:15 0:30 0:45 1:00 1:15 1:30 1:45 2:00 2:15 2:30 2:45 3:00 3:15 3:30 3:45 4:00 4:15 4:30 4:45 5:00 5:15 5:30 5:45 6:00 6:15 6:30 6:45 7:00 7:15 7:30 7:45 8:00 8:15 8:30 8:45 9:00 9:15 9:30 9:45 10:00 10:15 10:30 10:45 11:00 11:15 11:30 11:45 12:00 12:15 12:30 12:45 13:00 13:15 13:30 13:45 14:00 14:15 14:30 14:45 15:00 15:15 15:30 15:45 16:00 16:15 16:30 16:45 17:00 17:15 17:30 17:45 18:00 18:15 18:30 18:45 19:00 19:15 19:30 19:45 20:00 20:15 20:30 20:45 21:00 21:15 21:30 21:45 22:00 22:15 22:30 22:45 23:00 23:15 23:30 23:45 0:00

Sub 3 Max 1412342 1386752 1406136 1392828 1378383 1379041 1378762 1379601 1360576 1350341 1359042 1348286 1338069 1335207 1324913 1339623 1364887 1360396 1356214 1355070 1364068 1356047 1354985 1372516 1349958 1359433 1345611 1354768 1346837 1416015 1470061 1472440 1443821 1460235 1475403 1454122 1468692 1462254 1491456 1518366 1515036 1527378 1532708 1515737 1508328 1495066 1488834 1515371 1506865 1496499 1537186 1529384 1557014 1514461 1541612 1545001 1573866 1568831 1542979 1573769 1634762 1629324 1581755 1541763 1593868 1596231 1611563 1595008 1614855 1652788 1628765 1614494 1620859 1618598 1579641 1590972 1638498 1627182 1625540 1582320 1573078 1554958 1575777 1541054 1533740 1523915 1503165 1475683 1465208 1451334 1452111 1431567 1436493 1437405 1413449 1415279

Sub 3 Average

1014751 1009049 1004589 998988 994734 990426 988314 985036 983254 980616 978611 974441 974776 976350 978519 984612 999374 1000620 994505 991343 994710 1000774 996161 992107 994324 992778 997202 1002952 1008881 1016477 1020043 1021099 1025812 1029708 1030413 1030187 1031921 1031091 1030110 1028017 1032478 1032977 1035606 1035907 1038769 1038568 1045067 1046669 1041069 1040773 1046325 1051377 1056136 1058364 1062544 1065242 1074345 1078741 1083180 1086441 1090176 1093679 1093074 1092171 1098994 1102722 1104857 1106313 1104654 1108391 1109944 1114733 1116811 1124768 1130334 1139466 1147536 1159590 1165766 1160266 1152798 1145788 1138110 1126603 1105982 1090260 1075851 1067389 1049726 1041947 1036691 1030084 1033662 1028346 1022309 1016788

Sub 3 Min

766125 767451 760216 754026 754146 758226 758706 754009 751005 754405 757273 743964 756322 755083 758230 760370 780685 784144 784387 762741 762575 767344 754328 747824 762859 745343 754236 732520 736865 742562 735336 745841 735337 726311 695684 686972 694352 684182 669108 667299 669941 654644 660957 649598 647036 641188 637669 561948 417215 418098 417646 407945 423526 431482 425804 425161 424950 426958 416790 419753 414624 414156 409131 408756 398815 393686 395737 391916 382547 370183 379994 372982 376726 382855 389871 387088 379996 378428 389140 367730 365168 364014 355236 353078 350026 346006 339999 345203 327591 323814 326460 317793 317172 315255 306325 302539