TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 7, 2021
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authorization to enter into an agreement for Contract 20-RFP-17 Energy Curtailment Services, with Direct Energy Business Marketing, LLC to provide energy curtailment services (As Revised)
Body
Dear Sir:
Authorization is requested to enter into an agreement for Contract 20-RFP-17 Energy Curtailment Services, with Direct Energy Business Marketing, LLC to provide energy curtailment services for the District for a three (3) year period. These services were provided by CPower for the last six years. The current curtailment agreement will terminate after the 2020-21 curtailment season.
A Request for Proposals, 20-RFP-17 Energy Curtailment Services was advertised on October 7, 2020. Five hundred eleven (511) firms were notified and nineteen (19) firms requested proposal documents. Four (4) proposals were received on October 30, 2020. The firms were: Direct Energy Business Marketing, LLC, Enerwise Global Technologies, LLC, d/b/a CPower, NRG Curtailment Solutions, Inc., and NuEnergen, LLC.
A review committee composed of members from the Maintenance and Operations Department, Law Department and the Procurement and Materials Management Department staff reviewed and evaluated the proposals from all proposers based on criteria established in the proposal documents. All proposers were interviewed on Dec. 3, 2020 and Dec. 8, 2020.
All firms were invited to submit their best and final offers (BAFOs) by Friday, December 18, 2020. The BAFOs were evaluated based on maximum revenue to the District. For the 2021-22 curtailment year, the District will receive 100% of the revenue for the first 26.5 MW that was cleared in the PJM base residual auction. The District will also receive 96% of the revenue for any additional registered curtailment for the 2021-22 season, identified by Direct Energy Business Marketing LLC. For the second and third curtailment years, the District will receive 96% of the curtailment revenue, registered by Direct Energy Business Marketing LLC.
Based on the evaluations described above, and in as much as the firm of Direct Energy Business Marketing, LLC offers the greatest return of curtailment revenue to the District, it is recommended that the Director of Procurement and Materials Management be authorized to enter into an agreement per Section 11.4 of the Purchasing Act.
Requested, John P. Murray, Director of Maintenance and Operations, AG:PD:JL
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for January 7, 2021