(DRAFT) Multiple Award Task Order Contract (MATOC) for Puerto Rico Power System Stabilization, Power Generation Services

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THE SOLICITATION ATTACHED TO THIS POSTING IS A DRAFT VERSION FOR INFORMATIONAL PURPOSES ONLY.  THE FORMAL SOLICITATION IS ANTICIPATED TO BE RELEASED ON OR ABOUT 15 JUNE 2023, AND AT THAT TIME, PROJNET WILL BE OPENED WITH THE BIDDER INQUIRY KEY BEING PROVIDED AS WELL.  ADDITIONALLY, UPON ISSUANCE OF THE FORMAL SOLICITATION, THE 30-DAY SOLICITATION RESPONSE PERIOD WILL BEGIN, AND DATES WILL BE ACTUALIZED WITHIN THE SOLICITATION AND THIS POSTING TO REFLECT THIS.

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The purpose of this acquisition is to establish a MATOC with a shared capacity of $5 billion, with a five-year ordering period, to accomplish power system stabilization and power generation services under North American Industry Classification System (NAICS) Code 221112– Fossil Fuel Electric Power Generation.  The projects to be completed will be within the area of responsibility of the USACE Savannah District.  This contract will include work necessary to stabilize the power system in PR due to impacts caused by Hurricane Fiona and is authorized under disaster declaration FEMA-4671-DR-PR. The primary contract focus is on temporary emergency power augmentation and on related repairs of generation facilities to stabilize the PR power system as a result of Hurricane Fiona.  The work will consist of providing land based temporary generating units (dual fuel – LNG/diesel), temporary transformers, control cabling, and installation of equipment. In addition, the work will contain operation of the equipment, including maintenance, fuel, coordination with PREPA and LUMA on operation schedule and connections to their equipment.

The Savannah District (SAS) intends to solicit and award a MATOC on an unrestricted basis and in accordance with the procedures at FAR 15.304(c)(1)(ii) in which award will be made to all qualifying offerors.  A qualifying offeror is defined in FAR 2.101 as: “an offeror that is determined to be a responsible source, submits a technically acceptable proposal that conforms to the requirements of the solicitation, and the Contracting Officer has no reason to believe would be likely to offer other than fair and reasonable pricing.”  Price will be a selection factor for all orders placed under the awarded contracts.  Under this MATOC, hybrid firm-fixed price (FFP) Task Orders with cost-plus fixed fee (CPFF) elements are anticipated due to the uncertainty and volatility surrounding the cost of the fuel required to power the generators. FAR 16.103(b) states a firm-fixed-price contract, which best utilizes the basic profit motive of business enterprise, shall be used when the risk involved is minimal or can be predicted with an acceptable degree of certainty. Due to the nature of well-defined performance-based objectives and standards which will be provided at the Task Order level for these services, the risk associated with this well-defined work is low and therefore, USACE will utilize a firm-fixed price contract type for that portion of the work. However, the total cost for the Task Order-level power generation requirements is also heavily dependent on fuel costs, therefore fuel costs are the highest cost risk. The petroleum market has been volatile, with large swings in cost in recent history. As a result, the use of both FFP and CPFF elements at the Task Order level aids in the reduction of cost risks to the Government and is further mitigated in two ways.