SAM #DACA27-9-26-0042200

Army Solicitation for Long-Term Leases to Develop Commercial Power Generation Facilities at Seven Installations

The Department of the Army, through the U.S. Army Corps of Engineers (Omaha District), is seeking proposals for Enhanced Use Lease (EUL) agreements to develop commercial power generation facilities at seven Army installations. - Government Buyer: - Department of the Army - U.S. Army Corps of Engineers, Omaha District - Headquarters, U.S. Army Corps of Engineers - Opportunity Details: - EULs available at: Aberdeen Proving Ground, Fort Detrick, Fort Drum, Letterkenny Army Depot, Picatinny Arsenal, Tobyhanna Army Depot, and West Point Military Reservation - Lease term: 50 years, with possible renewal - Lessee(s) responsible for: design, financing, permitting, development, construction, installation, ownership, maintenance, operation, security, and decommissioning of power generation facilities - Power generation options: natural gas, geothermal, nuclear (up to 500 MW per unit), or solar - Lessee(s) may sell generated power to third-party off-takers - Must provide energy resilience to the Army, including at least 14 days of islanded operation during grid outages exceeding four hours - Lessee(s) must restore property to original condition at lease end - Proposals may cover all or portions of the available properties - Unique/Notable Requirements: - No specific OEMs or vendors are named; open to private, public, or not-for-profit entities - Proposals must include detailed project descriptions, financial capability, organizational experience, and proposed rent - Consideration to the Army may be in-kind, cash, or both (preference for in-kind) - Compliance with all environmental, legal, and security requirements is mandatory - Energy resilience capability must be demonstrated within 6 months of operation start - Decommissioning and restoration obligations apply at lease end

Description

The Department of the Army (“DA”) is issuing this Request for Proposals (“RFP” or “Solicitation”) to solicit competitive proposals from private, public and/or not-for-profit entities interested in leasing non-excess DA land (“Properties”) under a long-term lease agreement(s) (“Enhanced Use Lease” or “EUL”) at Aberdeen Proving Ground, Fort Detrick, Fort Drum, Letterkenny Army Depot, Picatinny Arsenal, Tobyhanna Army Depot, and/or West Point Military Reservation (“Installations”). The EUL(s) that would result from this RFP would be for the purpose of the selected Offeror(s) designing, financing, permitting, developing, constructing, installing, owning, maintaining, operating, securing, and decommissioning a commercial power generation facility (“Project”). Such power generation could include natural gas, geothermal, nuclear, or solar. Proposals for nuclear energy cannot exceed 500 megawatts (MW) per unit. During normal grid operations, DA expects that all power generated by the Project will be sold to a third-party off-taker. The selected Offeror will be responsible for identifying and securing this off-taker. During grid outages, the Lessee will provide essential energy resilience capabilities to DA for mission readiness as further discussed in this RFP. For purposes of this RFP, a grid outage is defined as any grid outage exceeding four (4) hours. DA may elect to award one or more EULs pursuant to this RFP. Prior to expiration of the EUL(s), Lessee(s) will be required to restore the Property to the condition it was in prior to execution of the EUL(s).

Pursuant to its leasing authority codified at 10 U.S.C. § 2667 and provided as Attachment A, DA intends to execute an EUL(s) with a selected Offeror(s) (“Lessee”) for a term of fifty (50) years. DA may consider an option to renew the EUL for an additional period of time following expiration of the initial fifty (50) year term if proposed by the Offeror in its Proposal and as further described in Section 6.1.a. Consideration to be provided by the Lessee to DA for the EUL will be in-kind, cash, or a combination thereof in an amount not less than the fair market value of the lease interest as determined by an appraisal to be completed by DA.

The Lessee(s) under the EUL(s) will, in part (subject to the terms and conditions of the EUL), be authorized and responsible for financing, designing, developing, operating, securing, and maintaining the Project and shall be responsible for complying with all applicable federal, state and local laws, codes, ordinances and regulations, including building codes, as they may be amended from time to time. The Project(s) shall be viable without any commitment or contribution, monetary or otherwise, from DA. DA envisions that development of the Project(s) will entail a well-planned and coordinated endeavor to utilize the Properties in a manner that will not conflict with adjacent Installation ongoing mission-related activities or the surrounding community.

Offerors may propose a Project(s) on all or a portion of the Properties at any one or more of the Installations. DA may elect to select more than one Offeror for award and may consider multiple Projects. Offerors may submit proposals to develop a single tract or multiple tracts. Proposals must clearly identify the portion(s) and associated acreage(s) of the Properties proposed for lease by the Offeror.

This RFP may be amended or supplemented and all such amendments and supplements shall be considered part of this RFP (and references to the RFP shall include all amendments and supplements, unless otherwise specified). To receive any amendments or supplements to this RFP, Offerors will be required to refer to the RFP posting on sam.gov.

DA reserves the right, at any time, without notice, at its sole and absolute discretion, to (a) modify, update, supplement, revise, suspend, or waive any terms and conditions of this RFP; (b) independently waive any deficiency or irregularity in any proposal submitted where it is in the Government’s best interest to do so; (c) reject any or all proposals at any time prior to award; (d) extend any deadline set forth in this RFP; (e) cancel the RFP process, in whole or in part; (f) make an award or awards as a result of initial proposals submitted; (g) discuss any submission with the Offeror that submitted it and require the submission of additional information regarding any aspect of the Offeror’s proposal; (h) make award to an Offeror who submits a proposal that is not the proposal that would provide DA with the highest value in terms of consideration to be paid under the EUL; (i) make an award to more than one Offeror if the Properties proposed for lease by said Offerors do not conflict; and (j) initiate further discussions or negotiations directly with the Offeror(s) (after DA selects it for award), if DA believes that the amount of consideration offered for the EUL in the Offeror’s proposal warrants further refinement or enhancement.

DA’s objective for this RFP and the Project(s) is to maximize the financial return to DA through the lease of non-excess available land on the Installations and secure ready and resilient power vital to DA operations.

Available Properties: Site specific information for the Properties available for lease at each of the seven (7) Installations is provided as Attachments B through H. Site specific information includes the location of the Properties on the Installations, former and current use, environmental considerations as currently known, utilities, and jurisdictional status. Precise location and acreage of the Properties are subject to change based on operational needs. 

Aberdeen Proving Ground - Attachment B; Fort Detrick - Attachment C; Fort Drum - Attachment D; Letterkenny Army Depot - Attachment E; Picatinny Arsenal - Attachment F; Tobyhanna Army Depot - Attachment G; and West Point - Attachment H

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