Description
Amendment 1 - The following are provided as additional information within the RFP: Installation Electric Distribution + Base and Peak Load The installation’s electric distribution system is fed from 46kV Hawaiian Electric’s (HE) utility feeders stepped down to an operating voltage of 12kV distribution line, which powers facilities located at Pearl Harbor, Hickam, Ford Island and Makalapa. The current average base load is 65 MW and the estimated peak load is 85 MW. Load growth in the coming years is expected, therefore, capacity of the generation and/or storage system should not be limited to current load, but instead maximized within the physical constraints of the property. Noise Mitigation Noise Abatement systems at each site should be applied to limit the noise emanating from the generation asset. Best practices should be applied in noise mitigation designs. Questions and Answers : Provided in the Attachments/Link Section of this RFP. FULL RFP DESCRIPTION IS ATTACHED, SEE ATTACHMENTS/LINKS SECTION AUTHORITY The Department of the Navy (“DON”) is making available for lease non-excess real property at Joint Base Pearl Harbor Hickam (“JBPHH” or “Installation”), Hawaii, under the authority of Title 10, United States Code (U.S.C.) § 2667. JBPHH ENERGY RESILIENCE The offering for potential outlease of non-excess property aboard JBPHH is for an Energy Resilience Project in accordance with Secretary of the Navy Instruction (“SECNAVINST”) 4101.3A. VISION This Request for Proposals (“RFP”) envisions a DON outlease of one or more of the Sites to one or more qualified non-Federal user(s) (“Lessee”) to plan, finance, construct, own, operate and maintain a System, and/or other improvements. The term "energy security" means having assured access to reliable supplies of energy and the ability to protect and deliver sufficient energy to meet mission essential requirements as provided in 10 U.S.C. § 101(e)(7). The term “energy resilience”, as defined in 10 U.S.C. § 101(e)(6), is “the ability to avoid, prepare for, minimize, adapt to, and recover from anticipated and unanticipated energy disruptions in order to ensure energy availability and reliability sufficient to provide for mission assurance and readiness, including task critical assets and other mission essential operations related to readiness, and to execute or rapidly reestablish mission essential requirements.” The DON seeks innovative designs to maximize the energy production, storage capacity, and transmission/ distribution capabilities at the Sites, compatible with the Installation operational mission. As such, the DON is considering opportunities to host the private development of resilient dispatchable Systems projects that would both sell to the public utility grid, or private offtaker, and provide energy resiliency to the Navy in times of utility grid outage and/or power quality event. The proposed project(s) will be on-base generation for off-base consumption (i.e., utility purchase or private offtaker). The DON does not intend to purchase energy from a proposed project. It is expected that Offerors to this RFP will secure offtake agreements for proposed projects through available market offtake opportunities. In accordance with 10 U.S.C. § 2667, the DON is required to receive value in the form of cash or In-Kind Consideration (“IKC”) for the outlease of Sites and/or Facilities in an amount not less than the Fair Market Rental Value. With a focus on energy security and resilience to enhance energy security, in lieu of Lessee paying Rent in cash, Lessee shall provide Government IKC through the development, delivery, and performance of electrical infrastructure upgrades or other proposed measures to increase the DON energy resilience posture. Cash will only be accepted in the event of default. In addition, the relocation of an existing Defense Logistics Agency facility may be required depending on which site(s) the selected Lessee chooses to develop (see Section 6). Costs associated with the relocation may be negotiated as a component of IKC. Specifically, the DON is seeking IKC technologies from past projects or existing technologies that employ a fast-switching and control design which, during a grid disruption, provides the Installation with continuous access to reliable and quality power with islanding and black start capabilities. The System asset owner and utility enjoy mutual benefit of this design connection, which can reduce or eliminate curtailment with an available and islanded load during times of grid outage. Offerors are encouraged to provide innovative approaches that leverage resilient dispatchable generation and/or storage on the leased premises to increase Installation energy availability during planned or unplanned disruptions. Other potential IKC (e.g., substation equipment repair by replacement) may be submitted in addition to those focused on energy resilience described above BUSINESS OPPORTUNITY The DON shall competitively select one or multiple Lessees to lease the Sites. The Lessees will, in a timely manner, develop, finance, operate, and maintain a System within the Sites for the term of the Lease (not to exceed 37 years). As consideration, the Lessees will provide cash rents and/or IKC (per the terms of Section 1.4 of the attached RFP) that directly provides energy resilience to enhance the Installation’s energy resilience posture, as well as provide the DON with Administrative Expense reimbursement to enter into the transaction in accordance with 10 U.S.C § 2695. NAVY LABOR COST The DON calculates the average cost to enter into a transaction of this magnitude to be approximately $2.5 - $3.0 million USD. This value may be recalculated based on site(s) utilized, technology proposed, and other complicating factors. This is in accordance with 10 U.S.C. § 2695 - Acceptance of Funds to Cover Administrative Expenses Relating to Certain Real Property Transactions. The average administrative costs to conduct this solicitation and perform the NEPA and ECP environmental documentation (based on a single site), are in the range of $2.0 - $2.5 million USD. This value will be reevaluated based on site(s) selected, technical proposals, and other complicating factors, and are payable upon entering into exclusive negotiations. The remaining amount due and any other unforeseen administrative costs incurred by the government to obtain lease signature will be payable following lease negotiations. These amounts are subject to annual government audit up to lease signature.