201305SPEPR September 12, 2013

ADDENDUM NO. 2

To Prospective Respondents and Others on:

2013 Solar Photovoltaic Energy Program

  1. Responses to Additional Questions:

Q7:Has Mass DOT entered into any agreements with local municipalities to expedite local permitting for these Projects?

R7:MassDOT has not entered into any municipal agreements in relation to this RFR.

Q8: Is it the intent for the respondent to provide indicative pricing subject to approvals by Mass DOT and regulating authorities based upon the outcome of the final design, utility interconnects and regulatory reviews?

R8:MassDOT will expect Proposers to offer Financial Proposals that are bona fide in all respects, and consistent with the requirements of the RFR and any Addenda, as well as the technical proposal prepared and submitted by the proposer. The pricing will be utilized to negotiate the final PPA/Site Lease Agreement binding the parties.

Q9:Is it acceptable that each site is submitted as a separate entity in the event that it cannot be developed, due to issues as described above, and must be carved out of the overall project?

R9:Proposers should submit a single technical and financial proposal. MassDOT’s goal is to achieve 6MW and will not distribute the work across multiple Developers.

Q10:Will MASS DOT agree to procure 100% of solar power produced?

R10:MassDOT desires to purchase the net-metering credits for power generated under this program, but does not guarantee the purchase, nor will it inhibit proposer/ Developers from selling the power to other off-takers.

Q11:Are there any “behind the meter sites” or will all sites be tied into the grid and PPA be based upon Net Metering Credits?

R11:There are no “behind the meter sites”. MassDOT’s intent is to obtain the Net Metering Credits associated with the developments.

Q12:What is involved in “clear access” requirement? Does it simply involve ensuring clear access of road (snow removal, etc.) and trimming vegetation in required footprint? Will a fenced in enclosure be required?

R12:Clear access in the context of this RFR means that the completed construction must not impact or inhibit use of the roadway in any manner for operations or maintenance. This includes providing for safe visual access (sight distances) along curves and at merges. MassDOT will require that all generating facilities be fenced.

Q13:For roof top installations are we going to be required to remove the panels during the contract term for “re-roofing” of facilities.

R13:This RFR only contemplates ground mounted systems in the areas indicated in the RFR attachments.

Q14:How is property tax going to be handled? Are lands leased for $1/year or do property taxes need to be factored into the PPA?

R14:Developers will be responsible for paying any property tax that may be levied as a result of the Development. Proposers will be expected to consider all costs in the submission of their Financial Proposals.

Q15:Can we include a termination payment if MASS DOT decides to end the contract?

R15:Developers should review the draft PPA that was identified as an attachment to the RFR for termination clauses.

Q16:Can you provide a MASS DOT consolidated load profile so we can see what load they can sustain?

R16:The RFR includes an attachment of MassDOT use statistics by load zone.

Q17:Can you please provide electric bills for each site so we can ascertain the current delivery and generation charges?

R17:Most of these locations have no immediate load.

Q18:Is the intent to award one contract for all ground mounted locations or to award separate contracts?

R18:MassDOT will enter into an agreement with only one proposer/developer pursuant of this RFR.

Q19:If the developer owns the facility, does MassDOT charge for lease of land to developer?

R19:This RFR only contemplates developments on MassDOT property. The Financial proposal form includes a fixed fee for lease costs. However, in light of SREC2, MassDOT is reconsidering the fixed lease payment value of $17,500/MW per year. This will be clarified in a future Addendum.

Q20: If MassDOT requires lease payments for land, what are the preferred charges?

R20:The Financial proposal form includes a fixed fee for lease costs. See also response to Question 19.

Q21:Does MassDOT prepare and submit the interconnection application for each site or does the developer?

R21:In the interest of time, MassDOT has taken the initiative to submit interconnection applications to the utility companies for the sites contemplated under this RFR. Once an agreement has been finalized, the selected proposer/developer assumes responsibility for furtherance of this process to completion.

Q22:Please describe the negotiations and reviews conducted by the local electric utilities to date. There are restrictions to the net metering potential for this project on a site basis and utility customer basis that may have bearing on the total potential to generate. Have the utilities seen the general intent and given preliminary approvals or positive indications?

R22:MassDOT has had pre-screening meetings with the utility companies, submitted interconnection applications, deemed complete by the utility companies, and will continue to take actions necessary to promote the completion or near completion of the Interconnection approval process. Utility companies have not identified any restrictions to date.

Q23:Due to the information requested, and the respondents overall need to review and include the responses into the responses to the Mass DOT, would the Mass DOT consider extending the due dates for both the technical and financial proposals?

R23:MassDOT has revised the Planned Schedule of Events. See item number 2 of this Addendum #2 for the revised schedule.

Q24:In regard to the M/WBE requirements on the project is it possible for the vendor to submit a commitment to the use of M/WBE firms at the level indicated at this stage of development? Many aspects of this project shall be sub-contracted and vendors/ suppliers shall be selected at later stages of the project. There will be further opportunity at later stages of the project development to retain M/WBE firms.

R24:There is no specific M/WBE goal or required minimum participation required by the RFR. MassDOT encourages the utilization of disadvantaged firms, but there is no specific requirement by percent of cost.

Q25:Will MassDOT consider a 20-year land lease ONLY (as opposed to lease and Power Purchase Agreement) for the installation of solar PV arrays?

R25: MassDOT may consider a lease only option under which the Developer sells the power to another off-taker. In any case, the agreement will have a duration of 20 years.

Q26:Are there any restrictions on a change in ownership once project is complete?

R26:As per the draft PPA/SLA included with the RFR, MassDOT expects the Developer to maintain care, custody, control and operation of the development for a time-certain period after commissioning, presently set for 5-years. Subsequent changes in ownership will only be with the approval of MassDOT at its sole discretion.

Q27:Is MassDOT seeking one provider for all 6 MW?

R27:MassDOT is seeking a single Developer under this RFR.

Q28:Is each Proposer required to propose systems on each site?

R28:Each Proposer is expected to offer a proposal that reaches the 6 MW goal, however they each determine to achieve that power utilizing the sites identified in the RFR.

Q29:To what extend has MassDOT started the interconnection application process with the local utilities? For example, has a pre-application report been obtained? Has an interconnection application been submitted? Accepted?

R29:See response to Q21.

Q30:Please elaborate on what is meant by “construction cannot cause glare or line of sight issues”. How will this be assessed?

R30:MassDOT expects the Developers to indicate how potential glare issues are addressed by their design so as to avoid reflection/glare in such a manner as it may impair highway operators.

Q31:Has MassDOT had any discussions with the Massachusetts Department of Energy Protection regarding wetlands in the proposed installation areas?

R31:MassDOT as not pursued any permits relative to protected resource areas. Preliminary designs have been developed to avoid impacts to known resource areas. Developers are required to bear responsibility for any permitting that may result from their final designs and construction impacts.

Q32:How will MassDOT support the installation of the system with respect to electrical installations that must pass over or under highways? Please detail any specific restrictions for working hours, lane closures, safety requirements, etc. Will MassDOT secure the necessary permitting to complete this work?

R32:MassDOT will not secure any permitting. MassDOT will work with the developers to provide guidance for work within highway rights-of-way.

Q33: Please confirm that 10% of the project costs must be met by minority or woman-owned businesses per the Supplier Diversity Program.

R33:There is no specific M/WBE goal or required minimum participation required by the RFR. MassDOT encourages the utilization of disadvantaged firms, but there is no specific requirement by percent of cost.

Q34:How will MassDOT evaluate “Best Value” of the proposals? For example, is it preferred to have a higher discount off electricity price or higher total savings/revenue? Are there non-price factors considered in the “value” evaluation?

R34:MassDOT will assess value computed utilizing a formula that statistically regresses the 20-year cost to a net present value, considering both the lease income and the value of the Net Metering Credits; maximizing revenue income and minimizing energy costs.

Q35:Must design drawings be stamped for inclusion in the Technical Proposal?

R35:Drawings need not be stamped and signed for the Technical proposal, but MassDOT will require shortlisted proposers bring the electrical engineer responsible for the design to their Oral Presentation.

Q36:At what stage of the proposal process is the Performance Bond required? Statement of Qualifications, Technical Proposal, Financial Proposal or after award?

R36:See RFR Section 4.7

Q37:Considering that MassDOT is soliciting for a land lease and Power Purchase Agreement, how must the “contract value” be calculated for the purposes of the Performance and Payment Bonds?

R37:Please refer to the response to Question 4 of Addendum #1.

Q38:Will MassDOT require any specific security systems, measures, or procedures at the sites during construction and/or operation?

R38:MassDOT has not developed specific security measures to be employed during or post construction. However, MassDOT will require that a security fence be installed around the perimeter of each location.

Q39: With respect to the Financial Proposal, what is meant by EPDs?

R39:EPD means Escrowed Proposal Documents. This requirement will be further specified by a later addendum, but the intent is to require proposers submit supporting documentation relative to their Financial Proposals (key assumptions, calculations), which may be reviewed during negotiations for the PPA/SLA. MassDOT would only open EPD’s in connection with the Best Value proposal. Other EPD’s would be returned to the other proposers unopened.

Q40:Considering that utility, local, state and federal incentive levels that support solar PV projects vary by region and change over time, how does MassDOT plan to evaluate the price for the “same commodity and service during the contract period”, per the Price Limitation requirement?

R40: As in the RFR, incentives (including tax, Renewable Energy Credits) will be the property of the Developer. For Best Value Analysis, please refer to the Answer to Question 34.

Q41:Can you confirm that stamped drawings are required with the proposal submission, per section 1.6 of the RFR (see below)? Typically, stamped drawings are required following project award, and non-stamped drawings are submitted with proposals.

R41: See Response to Question 35.

  1. Revised Schedule:

Table 1: Revised Planned Schedule of Events with Changes

EVENT / DATE / TIME
MassDOT Issues Notice of Intention / 07/08/2013 / -
MassDOT Issues RFR via Comm-PASS / 07/15/2013 / -
Pre-Proposal Briefing at MassDOT (Non-Mandatory) / 07/19/2013 / 10:00am
Last Day to Submit Questions / 09/05/2013 / 3:00pm
Final Date for MassDOT to Issue Answers and Clarifications / 09/12/2013 / -
Proposer Statements of Qualifications Due / 09/20/2013 09/30/2013 / 1:00pm
MassDOT Notifies Shortlisted Proposers / 09/30/2013 10/11/2013 / TBD
Oral Presentations and MassDOT Q&A of Shortlisted Proposers / TBD / TBD
Pre-Proposal Site Visits (2 days) / TBD 10/24-25/2013 / TBD
Proposer Technical Proposals Due / 10/17/2013 11/07/2013 / 1:00pm
Oral Presentations and MassDOT Q&A of Shortlisted Proposers / 11/14-15/2013 / TBD
MassDOT Requests Written Clarifications on Technical Proposals / 10/30/2013 11/20/2013 / -
Proposer Technical Proposal Clarifications Due / 12/04/2013 11/27/2013 / 1:00pm
Proposer Financial Proposals Due / 12/11/2013 / 3:00pm
Financial Proposals Opening / TBD / -
Designated Developer Notified of Selection / TBD / -
Anticipated Agreement Execution/Notice to Proceed / Feb 2014 / -
Developer/Utility Complete Interconnection Agreement / March 2014 / -
Utility Company Interconnection Upgrades / Feb-Mar 2014 / -
Construction Phase / Feb-Sept 2014 / -
Testing and Acceptance / Oct 2014 / -
Power Activation / 10/31/2014 / -

Table 2: Revised Planned Schedule of Events

EVENT / DATE / TIME
MassDOT Issues Notice of Intention / 07/08/2013 / -
MassDOT Issues RFR via Comm-PASS / 07/15/2013 / -
Pre-Proposal Briefing at MassDOT (Non-Mandatory) / 07/19/2013 / 10:00am
Last Day to Submit Questions / 09/05/2013 / 3:00pm
Final Date for MassDOT to Issue Answers and Clarifications / 09/12/2013 / -
Proposer Statements of Qualifications Due / 09/30/2013 / 1:00pm
MassDOT Notifies Shortlisted Proposers / 10/11/2013 / TBD
Pre-Proposal Site Visits (2 days) / 10/24-25/2013 / TBD
Proposer Technical Proposals Due / 11/07/2013 / 1:00pm
Oral Presentations and MassDOT Q&A of Shortlisted Proposers / 11/14-15/2013 / TBD
MassDOT Requests Written Clarifications on Technical Proposals / 11/20/2013 / -
Proposer Technical Proposal Clarifications Due / 11/27/2013 / 1:00pm
Proposer Financial Proposals Due / 12/11/2013 / 3:00pm
Financial Proposals Opening / TBD / -
Designated Developer Notified of Selection / TBD / -
Anticipated Agreement Execution/Notice to Proceed / Feb 2014 / -
Developer/Utility Complete Interconnection Agreement / March 2014 / -
Utility Company Interconnection Upgrades / Feb-Mar 2014 / -
Construction Phase / Feb-Sept 2014 / -
Testing and Acceptance / Oct 2014 / -
Power Activation / 10/31/2014 / -