DOD Lawyers Roundtable Defense Logistics Agency (DLA Energy)

Transcription

1 Session: DoD Lawyers Roundtable DOD Lawyers Roundtable Defense Logistics Agency (DLA Energy) Kelly Tischler, Senior Counsel August 10, 2016 Rhode Island Convention Center Providence, Rhode Island

2 DLA Energy Mission/Role in RE Procurements Acquisition partner for military services for renewable energy projects Contracting activity Conduct FAR/DFARS based RE acquisitions on behalf of military services Does not generate underlying requirements Does not conduct leasing or real property actions Does not provide funding or pay the bill Works closely with Army, AF, and Navy during all phases of renewable project acquisition 2

3 DLA Energy RE Projects Awarded RE contracts: Fort Drum (Biomass plant) Fort Detrick (Onsite solar) Fort Hood (Onsite solar/offsite wind) RE projects under solicitation: Vandenburg AFB (Onsite solar) JB Cape Cod (Onsite solar) Navy PJM NDW (Offsite) Navy PJM MidLant (Offsite) EPA Edison (Onsite solar)** 3

4 Contract Authorities 10 U.S.C. 2922a Primary authority used for PPAs Overview/Scope 30 year contracting authority Contract for provision and operation of energy production facilities on Service land or private property and purchase of energy from the facility Unique Aspects Requires OSD approval before contract award Requires incorporation of real property agreement (e.g., lease) into contract 4

5 Contract Authorities 10 U.S.C. 2410q Overview/Scope Up to 10 year contracting authority Contract for purchase of electricity from sources of renewable energy as defined in Section 203(b)(2) of the 2005 EPAct Unique Aspects Requires special cost effectiveness determination for contracts in excess of 5 years Not often used 5

6 Acquisition Model Contract Structure FAR commercial items supply contracts Contract for supply of electricity from RE facility Uses tailored FAR commercial items terms Title to facility Contractor retains title to facility during contract Government has option to purchase the facility at contract end Real property Incorporates real property agreement into contract (10 U.S.C. 2922a only) 6

7 Acquisition Model NOITA Process Notice of Intent to Award Issued to apparently successful offeror on the basis of competitive proposals Contains multiple contingencies that must be satisfied before award can be made NOT a contract award itself, only a notice of intent Purpose To resolve items that cannot be finalized before source selection but which must be finalized before award E.g., Signed interconnection agreement, finalized lease terms, OSD approval 7

8 Hot Topics/Current Challenges Cybersecurity Hot topic across all DoD, not just RE projects DFARS Part Safeguarding Covered Defense Information and Cyber Incident Reporting (Dec 2015) Requires Protection of contractor information systems Investigation of cyber incidents Reporting of cyber incidents and damage assessment 8

9 Hot Topics/Current Challenges Cybersecurity Key points: adequate security = compliance with standards in NIST SP (but not until Dec. 31, 2017) covered defense information includes OPSEC information, such as: Installation electrical grid/system information Electrical load and consumption information Mandatory subcontractor flowdown DFARS Prescription Mandatory prescription to include in all solicitations and contracts, including those for commercial items 9

10 Hot Topics/Current Challenges Energy Resiliency Energy resiliency Incorporating ways to ensure renewable energy supply remains consistently available for use E.g., battery storage, microgrids Acquisition challenges Defining the requirement Technical and price evaluation Incorporation into final source selection 10