HUNTSVILLE, Ala., Feb. 24, 2012 /PRNewswire-USNewswire/ -- The U.S. Army Engineering and Support Center, Huntsville, has issued a draft Request for Proposal (RFP) for $7 billion in shared capacity contracts to procure reliable, locally generated, renewable and alternative energy through power purchase agreements or other contractual equivalents. The $7 billion capacity would be expended for the purchase of energy over a period of 30 years or less from renewable energy plants that are constructed and operated by contractors using private sector financing.
"This could potentially be the largest contract ever awarded by Huntsville Center," said Col. Nello Tortora, commander of the U.S. Army Engineering and Support Center, Huntsville. "Under this contract, we will be buying energy produced, rather than the equipment to produce it. It will complement the suite of contracts we currently have that allow us to award energy projects and will go a long way toward helping the Army meet its required energy reduction and energy security goals."
The draft solicitation for the Renewable and Alternative Energy Power Production is posted on the Federal Business Opportunities Web site at www.fbo.gov, and will be available for comment for 30 days. No awards will be made from this draft RFP.
"The final RFP, when issued, may vary from this draft," said Tonju Butler, the procuring contracting officer with the Huntsville Center. Any comments regarding this draft solicitation are to be submitted by firms via the ProjNet Web site at http://www.projnet.org/projnet in accordance with the instructions contained in the draft RFP. "Huntsville Center will use the industry feedback received to develop the final RFP," Butler said.
It is the intent of the government only to purchase the energy that is produced, and not to acquire any generation assets. The contractors will finance, design, build, operate, own and maintain the energy plants. The government will contract to purchase the power for up to 30 years in accordance with the terms and conditions stipulated in site or project specific agreements resulting from task orders awarded under multiple Indefinite Delivery/Indefinite Quantity contracts. Project locations may be on or near any federal property located within the U.S. including Alaska, Hawaii, territories, provinces or other property under the control of the U.S. government for the duration of contract performance.
"Huntsville Center will award contracts to both large and small businesses according to four different renewable energy technologies: solar, wind, geothermal and biomass," said Sarah Tierney, the project's contracting specialist. "Task orders will be executed against the basic ID/IQ contracts, using fair opportunity procedures established in the Federal Acquisition Regulation Part 16."
This contract will support the U.S. Army Energy Initiatives Task Force in its efforts to plan and execute a cost-effective portfolio of large-scale renewable energy projects on Army installations by leveraging private sector financing. The Army's development of large-scale renewable energy projects will help enhance energy security while supporting the Department of Defense's energy goals. Energy security and sustainability are operationally necessary, financially prudent and mission critical.
By awarding the contract, the Army will have a streamlined process to develop large-scale renewable energy projects that uses private sector financing. This approach will help speed overall project development timelines to ensure the best value to the Army and private sector.
The Army is moving forward to address the challenge of energy security and sustainability to ensure the Army of tomorrow has the same access to energy, water, land and natural resources as the Army of today. The Department of Defense has the goal to produce or consume 25 percent of its total energy use from renewable sources by year 2025.
The U.S. Army Engineering and Support Center, Huntsville, executes Army programs and specialized missions worldwide that require unique technical expertise, large acquisitions and centralized program management. Huntsville's involvement in the Army's energy program began in the early 1980s with the program management and technical oversight for the Energy Engineering Analysis Program. The Center continued to gain energy experience through the development and award of the Department of Defense's first shared energy savings contract.
The Huntsville Center continues to provide unique energy solutions for third party contracting, Energy Savings Performance Contracting, Demand Side Management, utility privatization, Energy Conservation Investment Program, Utility Monitoring and Control Systems, heating ventilation and air conditioning, energy assessments and energy planning.
Huntsville's energy team has been recognized for outstanding achievements with multiple federal energy and water management awards, Vice Presidential Hammer awards and USACE project delivery awards.
SOURCE U.S. Army Corps of Engineers