Western Area Power Administration

Rocky Mountain Customer Service Region

Request for Proposals

Regarding the Purchase of Renewable Energy Certificates

 

 

1.         BACKGROUND – Western Area Power Administration (Western) is a power marketing administration within the U.S. Department of Energy.  Western’s primary mission is to market electrical power and energy from certain Federal hydroelectric plants located throughout its regional service territories.  Western also provides purchasing assistance for electrical power and energy and other electricity-related products to certain entities, primarily Western preference customers and other Federal agencies.  Western’s Rocky Mountain Customer Service Region (RMR), the purchaser for this Request for Proposals (RFP), markets power and energy from a series of hydroelectric plants located in Colorado, Wyoming, and Montana, and its marketing area encompasses Colorado and Wyoming east of the Continental Divide, western portions of Nebraska, and northern and western portions of Kansas. 

 

            The following four Federal entities (Parties) have requested that RMR purchase renewable energy certificates (RECs) for the following four Federal agencies:

Department of the Army, Fort Carson, CO           

Department of Energy, Berkeley Site Office (BSO), CA

Department of Energy  for:                                            

a.      Pantex Plant Amarillo, TX                                              

b.      Kansas City Plant, KS                                                

c.      Sandia National Laboratories, NM                           

d.      Los Alamos National Laboratory, NM

                                                                                            

          Denver Federal Executive Board, CO 

                           

Offers to this RFP must be received via mail or fax by RMR on or before May 27, 2005, at 4:30 p.m. MDT to be considered for evaluation.  Email or late offers will not be considered.

 

2.         DEFINITIONS – The definitions of certain terms used in this RFP are as follows:

           

            Contactor – The successful offeror for sale to RMR of RECs under this RFP.

 

Renewable Energy – The electric energy produced by solar, wind, geothermal, and biomass generation resources, as set forth in section 710 of Federal Executive Order 13123, 64 Fed. Reg. 30851 (June 8, 1999) (http://www.eere.energy.gov/femp/pdfs/eo13123.pdf). 

 

Renewable Energy Certificate (REC) – The intangible environmental benefit, and any other such attribute, associated with generating one megawatt-hour (MWh) of electric energy by a renewable resource located in the Western Area and Bonneville Power Administrations’ service territories.  RECs may also be known as green tags, green certificates, or tradable renewable certificates.

 

REC Contract – The separate agreement which shall be executed between RMR and the successful offeror(s) for transfer of RECs associated with this RFP. 

 

REC Certificate – The document to be provided to RMR by the contractor at time of payment that transfers the title of the invoiced RECs. 

 

 

3.         STATEMENT OF WORK AND SPECIFICATIONS

 

3.1    RMR is requesting firm fixed “per MWh” unit price offers for the transfer of RECs on the behalf of the Parties for 5 years:

                                   

The Parties

Annual MWH’s

Annual

Dollar

Amount

 

Department of the Army, Fort Carson, Colorado

 

$40,000

Department of Energy, Berkeley Site Office (BSO), California      

25,000 MWh

 

Department of Energy--Pantex Plant Amarillo, TX, Kansas City Plant, KS, Sandia National Laboratories and Los Alamos National Laboratory, NM

 

 

25,700 MWh

 

 

Denver Federal Executive Board, Colorado

 

20,000 MWh

 

 

 

                                                          Total

 

70,700 MWh

 

$40,000

 

 

3.2    Proposal Criteria – RMR will consider REC proposals for each Party or for all four Parties specified in Section 3.1. RMR will not consider proposals for RECs in amounts less than those specified in Section 3.1.  Two or more vendors may aggregate resources and present them together as one REC proposal.   

 

3.3    Start Date – The expected start date for transfer of the RECs shall be as soon as practicable after contract award, although it is anticipated that the start date shall be no later than July15, 2005.

 

3.4    Term of the REC Contract – The initial term of the REC Contract shall be for one year.  If and when the Parties request, a provision in the REC Contract may be unilaterally exercised by RMR that allows for the extension of the REC Contract’s term by one year intervals for up to four additional years.  

 

3.5    Transfer of REC Title – RMR will pay for and take title to the offered RECs on behalf of the Parties.  Title of the RECs shall pass to RMR at the time of payment.  RMR will then transfer title of the RECs to the Parties on a pass-through cost basis under separate terms and conditions agreed upon by the Parties and RMR.  A template Certificate of Transfer shall be provided for use by the contractor in an exhibit to the REC Contract.  The Certificate must verify that the RECs are certified green as described in the verification plan (Sect. 4) and have been certified as retired.

 

3.6    Invoice and Payment – All invoicing shall be based on the total RECs purchased by RMR on an annual basis, beginning on the actual start date of the REC contract.  The RECs invoiced under this contract must be generated during the contract year of the period of performance, and six (6) months immediately preceding each contract year of the period of performance, and six (6) months immediately following each contract year.  The contractor may only invoice for charges allowed under the terms and conditions of the REC Contract.  The invoicing address will be specified therein.  All invoices must be accompanied by a Certificate of Transfer.

 

3.7    Additional REC Amounts – The Parties may request RMR to contract for (1) the transfer of RECs for additional facilities or (2) the transfer of additional REC amounts for the Parties described in this RFP.  If the request is considered within the original scope of the REC Contract, RMR shall provide the contractor with the desired REC amounts, and the two parties shall mutually agree as to whether to extend the full terms and conditions of the REC Contract, including any extensions of term, to the proposed additional facilities or REC amounts.  Adding facilities or REC amounts shall be accomplished by the bilateral execution of an amendment to the REC Contract.

 

4.         RFP SUBMISSION REQUIREMENTS – Offerors must fully address each of the following submission requirements to be considered for this solicitation:

 

4.1       Company name, address, contact person, email, and fax number.

 

4.2       Renewable Energy Facilities and REC Amounts – Offerors must specify the Party(ies) they propose to serve with RECs, the facility generating the RECs, and the annual amount of RECs offered from each of the proposed renewable energy facilities.

 

4.2       Cost – Offerors must specify a firm fixed “per MWh” unit price for the offered RECs for the full five (5) years.  The possibility of an extension to the REC Contract for one or four additional years must be taken into account when submitting the REC unit price offers. 

           

4.3       Renewable verification and certification plan – Offerors must submit a renewable energy verification and certification plan as part of the RFP submission that will become part of the final contract.  The plan is subject to Western and agency representative’s approval prior to REC Contract award.  The plan must include documentation indicating third party verification of the supplied RECs as well as retirement certification.  The approved plan will be part of the final contract award.

 

4.4    Past Performance – Documentation must be submitted describing any relevant past experience and performance regarding the transfer of RECs, including non-Federal customer references.  The offeror agrees to permit Western’s representatives to contact the listed references and inquire about the past performance of the offeror.   

 

5.         EVALUATION CRITERIA

 

5.1       The purpose of this RFP is to have RMR, a power marketing administration within the U.S. Department of Energy, purchase RECs on behalf of another Federal agency.  Consistent with exceptions set forth in Federal Acquisition Regulations (FAR) Part 41, Western considers this acquisition exempt from competition requirements set forth in FAR Parts 6, 7, and the remainder of Part 41.

 

5.2    Utilizing the flexibility allowed under Western’s power marketing authority, RMR intends to award one or more REC Contracts to any offer(s) that RMR considers as providing the best value and that otherwise meet the terms of this RFP.  RMR encourages small and minority owned businesses to apply.

 

5.3    Offers will be considered for evaluation only if they fully comply with the submission requirements set forth under section 3 above.  REC unit price and offeror past performance (if any) shall be considered in evaluating which qualified offers provide the best overall value, with REC unit price weighted more heavily than past performance.  Offerors with no past performance will receive a neutral, rather than negative, past performance assessment.

 

5.4    REC offers for two or more Parties shall be given a more favorable consideration.

 

 

6.         POTENTIAL LEGAL AND REGULATORY ISSUES

 

6.1    Where activities provided for in the contract extend beyond the current fiscal year, continued expenditures by both parties are contingent upon Congress making the necessary appropriations required for the continued performance under this Agreement.  In case such appropriations are not made, both parties are released from their contractual obligations and from all liability due to the failure of Congress to make such appropriation.

 

 

6.2    Contract Work Hours and Safety Standards – The REC Contract, to the extent that it is of a character specified in Section 103 of the Contract Work Hours and Safety Standards Act (Act), 40 U.S.C.A. 329 (1986), will be subject to the provisions of the Act, 40 U.S.C.A. 327-333 (1986), and to regulations promulgated by the Secretary of Labor pursuant to the Act.

 

6.3    Equal Opportunity Employment Practices – Section 202 of Executive Order No. 11246, 30 Fed. Reg. 12319 (1965), as amended by Executive Order No. 12086, 43 Fed. Reg. 46501 (1978), which provides, among other things, that the offeror will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin, will be incorporated by reference into the REC Contract.

 

6.4    Use of Convict Labor – The offeror agrees to not employ any person undergoing sentence of imprisonment in performing the REC Contract except as provided by 18 U.S.C. 4082 (c)(2) and Executive Order 11755, December 29, 1973.

 

7.         PROCESS AND TIMING

 

7.1    Timing – Offers to this RFP must be received by RMR on or before May 27, 2005, at 4:30 p.m. MDT to be considered for evaluation.  Email and late offers will not be considered.

 

7.2       7.2          Submission of Responses – RMR will accept offers that are submitted by mail via the U.S. Postal Service or an equivalent private mail carrier (e.g., United Parcel Service or Federal Express).  The address for submission of responses via the U.S. Postal Service is:

 

Western Area Power Administration

Rocky Mountain Customer Service Region

ATTN: REC Project Manager (J6000)

P.O. Box 3700

Loveland, CO  80539-3003

 

The address for submissions of responses via private mail carrier is:

 

Western Area Power Administration

Rocky Mountain Customer Service Region

ATTN:  REC Project Manager (J6000)

5555 East Crossroads Blvd.

Loveland, CO  80538-8986

 

Offers may also be faxed to RMR at (970) 461-7204, ATTN:  REC Project Manager (J6000).  Fax verification is 970-461-7221.  Offers submitted via hand or electronic delivery methods will not be considered.

 

7.3    Questions – Questions regarding this RFP will be accepted only via email and all answers to questions will be sent to all potential offerors.

 

7.4    Notification of Receipt – An acknowledgement of receipt of offers will not be provided.  Offerors therefore are strongly encouraged to ensure that adequate tracking measures are taken with respect to their mailed or faxed offer.

 

7.5    Evaluation of Offers – RMR will evaluate all offers received on or before the date and time set forth in section 7.1 of this RFP.  RMR may seek additional information for, or clarification of, individual offers as needed.  RMR reserves the right to request best and final offers from one or more offerors, and to award or not award any REC Contract(s) as RMR ultimately deems appropriate.  REC Contract award decisions will be made by RMR’s Power Marketing Manager after consultation with the Parties’ representatives involved in the evaluation process.

 

7.6    Notification of Award and Subsequent Contracting – RMR will notify successful offeror(s) regarding the award of REC Contract(s), and will seek to negotiate and execute these REC Contract(s) as soon as practicable.  A direct notification to unsuccessful offerors will not be provided; however, RMR will post a general notification on its web site (http://www.wapa.gov/rm/rm.htm) within one week after award of the REC Contract(s).

 

8.         USE OF INFORMATION IN OFFERS – RMR will share submitted offer documentation with other Western staff and with the Parties and their designated representatives.  In the interest of encouraging additional Federal purchases of RECs, RMR and the Parties may share nonspecific offer information (e.g., range of offer prices and any winning offer prices for The Parties with other Federal agencies.  Neither RMR nor the Parties will divulge proprietary offer information to anyone outside of their respective agencies unless required to do so by law, or at the direction of a court or government regulatory body of competent jurisdiction.

 

9.         CONFIDENTIALTY – Offerors wishing to have part or their entire offer not made available to the public should so indicate by marking the applicable portions “Confidential.”

 

Contact information:

 

Peggy Plate

Western Area Power Administration

P.O. Box 3700

5555 East Crossroads Blvd

Loveland, CO 80539

970-461-7227

970-461-7204 (fax)

plate@wapa.gov


Western Area Power Administration

Request for Proposals for

Renewable Energy Certificates--

Clarifications

May 13, 2005

 

 

In response to questions we have received regarding the RFP, we provide the following information to better clarify the purchase requirements.  For additional questions or comments, please email Peggy Plate at plate@wapa.gov.

 

Date of resource to be on line to qualify as green is January 1, 1991.  This may or may not meet other verification standards (see section 4.3 of the RFP).  This RFP purchase is in response the Federal governments’ Executive Order 13123, which went into effect January 1, 1991.  It also defines which renewables qualify for this purchase as outlined in the RFP.  See http://www.eere.energy.gov/femp/pdfs/eo13123.pdf

 

Section 3.6.  What this section is defining is the timeframe of approved renewables.   It gives a two year window to produce qualified RECs that you could sell annually.

 

Disability preference.  Since we are not operating under Federal Appropriation Regulations, we do not give special preference, but encourage you to submit a proposal.

 

Section 5.3. Offers will be considered for evaluation, only if they fully comply with the submission requirements set forth under Sections 3 and 4.