SOURCES SOUGHT
S -- Aggregated Solar Photovoltaic across USFS R3 Sites
- Notice Date
- 8/17/2016
- Notice Type
- Sources Sought
- NAICS
- 221114
— Solar Electric Power Generation
- Contracting Office
- Department of Agriculture, Forest Service, R-3 Southwestern Region, 333 Broadway, SE Acquisition Mgmt., Regional Office, Albuquerque, New Mexico, 87102, United States
- ZIP Code
- 87102
- Solicitation Number
- AG-8371-S-16-0055
- Archive Date
- 10/6/2016
- Point of Contact
- Sarah Valencia,
- E-Mail Address
-
svalencia@fs.fed.us
(svalencia@fs.fed.us)
- Small Business Set-Aside
- N/A
- Description
- THIS IS FOR MARKET RESEARCH PURPOSES ONLY. THIS IS NOT A SOLICITATION OR A REQUEST FOR PROPOSAL. The United States Department of Agriculture (USDA) Forest Service (FS) is considering onsite Industry owned Solar Photovoltaic Systems across multiple sites in the Southwestern Region (R3) of the Forest Service (New Mexico and Arizona). Facilities range in size from 5,000 - 7,000 square feet with a small number of sites over 10,000 square feet. The solar systems would be hosted on Forest Service roofs, parking lots and land of its facilities. Facility uses include: offices, fire stations, tree seedling cold storage, and visitor centers. Major energy consuming systems include the following: heating, ventilation, and air conditioning (HVAC) systems, lighting, and single-user computers. Some building systems operate at capacity in excess of 18-hours a day, seven days a week, and 365 days a year, but most are solely open during weekdays (Monday-Friday) for 10 hours a day. Forest Service R3 would purchase the power produced under a firm fixed power rate (below are purchase options under consideration). It will be the contractor's responsibility to design, construct, own, operate and maintain the onsite solar PV arrays to serve site loads. All tasks related to engineering, permitting and interconnecting solar PV arrays would be the responsibility of the contractor. The project will be implemented using North American Industry Classification System (NAICS) Code 221114 - Solar Electric Power Generation. USDA Forest Service R3 is conducting market research to identify contractors who possess the capabilities to provide services as specified in this request to determine availability, capability and adequacy. USDA Forest Service R3 seeks information from perspective solar developers on the following topical areas: 1.Business Size Standard under NAICS Code 221114 - Solar Electric Power Generation. 2.Interest in a full request for proposal (RFP) for a multi-site aggregated project for USDA Forest Service R3 sites across New Mexico and Arizona. 3.Gain a range of indicative prices per kilowatt capacity installed likely to be seen from each of the array types (roof, ground, and shaded parking structures). 4.Inform and gain feedback from potential contractors with regard to the Federal contracting vehicle options that could be used by Forest Service Region 3. Each contracting vehicle has nuances and caveats. 5.Understand solar array development potential in Arizona given the changes to net metering and interconnection regulations in the state. 6.Forest Service Region 3 seeks industry input on innovative solar equipment advances that provide new capabilities. The following are goals in which the Forest Service R3 hopes to achieve through the use of aggregated onsite solar PV systems. 1.Meet and or exceed Federal mandates that require agencies to procure qualified renewable energy sources for a percentage of energy needs. 2.Achieve "Net Zero" energy where regulatory, financial viability and array space allow. 3.Combine several USFS Region 3 sites under one contract in order to achieve economies of scale in pricing which is hoped to include sites that would otherwise not be financially viable as stand-alone procurements. 4.Reduce utility and operating costs from operating facilities and provide protection against future energy price increases. 5.Size solar PV systems large enough so that they can serve future electric vehicles and/or plug-in hybrid electric vehicles charging loads. 6.Support local jobs and economic development. 7.Install a solar array on the Forest Service district offices and visitor centers, within public view, for the purposes of educating the large number of yearly visitors about solar technology utilizing real-­‐time displays, literature, or through other means recommended by responders to this RFI. Procurement Options under Consideration 1.Power Purchase Agreement (PPA) contract with a 10 year base and 10 year option period ("10+10"). a.This is based on General Service Administration's FAR Part 41 "Acquisition of Utility Services" authority. USFS must seek and receive a special delegation from the General Services Administration to use this authority. b.There is a non-renewal clause if the agency does not exercise the option for the second 10- year period. The non-renewal payment covers un-amortized costs and is intended to make the contractor "whole" financially if agency fails to exercise the option. 2.Energy Savings Performance Contract - Energy Sales Agreement (ESPC-ESA). a.This procurement option is based on 42 USC 8287 and allows agencies to enter into long-term contracts for energy savings performance contracts for up to 25 years (including construction). b.An ESPC-ESA would require that a bidder apply and get listed on the DOE Qualified List: Information regarding the application process and requirements is available at http://energy.gov/eere/femp/doe-qualified-energy-service-companies c.Energy cost savings must exceed aggregate annual payments to both utilities and contractors in each year of the ESPC. d.If an agency uses the ESPC-ESA procurement approach, the Office of Management and Budget (OMB) requires agencies to retain title by the end of the contract. In order to comply with the OMB requirement, as well as IRS tax incentive regulations, USDA would purchase the solar systems at fair market value (FMV) prior to the end of the contract term. To ensure that USDA will have sufficient funds for the solar equipment purchase, the Energy Service Company (ESCO) must transfer a portion of the payments it receives into a reserve account held by the ESCO. The ESCO's payment into the reserve account is based on the estimated future FMV of the renewable equipment at the time the federal agency purchases the asset from the ESCO. This approach avoids potential Anti-Deficiency Act violations. Periodic re-appraisals and payment adjustments (when necessary), will ensure that the reserve account has sufficient funds for the FMV equipment purchase by the government. Any excess reserve account funds after the equipment purchase can be used to offset the final ESPC ESA payment(s). 3.Energy Savings Performance Contracts - Small Sites Program "ESPC-ENABLE" http://energy.gov/eere/femp/energy-savings-performance-contract-enable-federal-projects a.The ESPC Enable program is a streamlined version for small Federal sites to install a limited number of Energy Conservation Measures (ECMs) including onsite solar PV arrays. b.Contractors must following the instructions provided on the DOE/FEMP and GSA websites. Instructions are located here: http://energy.gov/eere/femp/energy-savings-performance-contract-enable-energy-service-companies Additional Parameters for Consideration by Responders 1.A solar project on the roof may require the approval of local regulatory bodies such as the local fire department. These approvals may involve design submittals and/or other requirements. 2.Some sites may have historic, cultural, and environmental requirements that could affect array locations available for development. 3.All PV systems will also require the development of an Environmental Assessment under the National Environmental Policy Act, although a categorical exclusion may be granted for roof-mounted systems but this will not be known until Forest Service Region 3 initiates a formal study. a.USFS Region 3 intends to initiate a NEPA study in advance of releasing an RFP. 4.The Site intends that roof penetrations are to be minimized. a.How would you address the following scenario: i. Penetration verses ballast. 5.The system for any roof-­‐top PV installation should not be overly visible from any vista from a distance; aesthetic and historic preservation considerations are of utmost importance. However, there are a couple Visitor Centers where the solar arrays shall be mounted in locations visible to visitors. Forest Service Region 3 would be interested in a real-time information kiosk that can allow the public to view energy generated from the solar arrays. 6.Buy American is intended to be implemented for all major components of systems (i.e. PV modules and inverters) and for the balance of the systems where there are American-­‐made products available. 7.The project is intended to include all photovoltaic modules, electrical and utility connections, inverters, transformers, disconnects, and electrical components as necessary to provide a fully functional system. 8.The project is intended to include a component of patron education and awareness related to the solar generation on the roof at the visitor centers. 9.In case of emergencies, local Forest Service facilities staff shall be trained on the basics of operations and shutdown of the systems. This request is a market research tool being utilized for informational and planning purposes. Your response will assist the Government in the development of its acquisition strategy for a possible Request for Proposal (RFP) to be issued at a later date. Your response will also help determine whether any of the small business set-asides is possible for this procurement or whether full and open competition should be utilized. This is not a solicitation or a Request for Proposal. This request does not constitute an obligation by Forest Service R3 to enter into a contractual agreement, nor does it constitute a commitment, implied or otherwise, that the Forest Service R3 will issue a procurement in the future. No reimbursement will be made for any costs associated with providing information in response to this request. Responses will not be considered confidential. The Forest Service R3 may use the responses to structure future solicitations; therefore, do not provide confidential or proprietary information in your response. Submission Instructions Responses are due via email by 4:30pm MT on September 21, 2016 to svalencia@fs.fed.us. Please provide the following information about your company: A short summary of the company's qualifications and a list of similar agreements/contracts that are completed or currently in progress, with a special emphasis on those projects at Federal sites. Include customer information and location, number of megawatts installed, and type of contract. Responder Questions 1.Have you worked with the Federal Government before? If so, have you completed any solar projects for Federal clients? What roadblocks did you encounter during that process, especially related to solar? 2.Would you recommend a grouping of a small number of sites to minimize O&M and other administrative costs across multiple sites? Would it be beneficial to issue several, separate RFPs based on geographical proximity of a service territory? 3.Would you and or any project finance firm that would underwrite your project be comfortable with the 10+10 approach; would dollar/kWh prices be amortized over 20 years or only the first 10 years? 4.Would the solar renewable energy certificates (SRECs) be sold to improve the project economics or can they be purchased by the Forest Service? How important is an SREC sale to a low PPA electricity bid? Any comments on current or developing SREC markets? 5.Would your firm be willing and able to establish the required reserve account for the ESPC ESA Option? 6.Are Arizona sites viable projects, given the changes to interconnection and net metering laws? If some Arizona sites are no longer viable under the new regulations, would there be any viable sites in Arizona or is it on a utility-by-utility, case-by-case basis? 7.Do you have any other suggestions or comments? Submission of information does not commit a responding party to submit a proposal to any subsequent solicitation. The Forest Service R3 will use the information to inform its renewable energy initiatives and incorporate suggestions in future solicitations or other procurement documents where appropriate. Please include contact names(s), address, phone number, and email.
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