The Naval Facilities Engineering Systems Command (NAVFAC) intends to award a Utility Energy Service Contract (UESC) to Baltimore Gas and Electric Company (BGE) for the design, construction, commissioning, and financing of a comprehensive energy resilience project at Naval Support Activity (NSA) Annapolis, Maryland.
The proposed project, estimated at approximately $45 million, will include a Combined Heat and Power (CHP) cogeneration plant integrated with a microgrid to enhance installation energy resilience. Major project elements include:
A CHP system supporting an estimated 19 MW peak electrical demand, including three natural gas-fired turbines and associated heat-recovery systems;
An integrated microgrid control system capable of island-mode operation during utility grid outages;
An absorption chiller at the Lejeune Chilled Water Plant (597U) utilizing recovered waste heat;
Relocation and upgrade of the 13C-1 electrical substation;
Required natural-gas infrastructure upgrades and electric-grid interconnection activities;
An Investment Grade Audit (IGA), design, engineering, construction, testing, commissioning, and construction management; and
Operator training and project turnover documentation.
Basis for Intended Sole Source
The Government intends to use other than full and open competition pursuant to 10 U.S.C. § 3204(a)(1) and FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. The proposed action will be implemented as a UESC pursuant to 10 U.S.C. § 2913(d).
BGE is the franchised electric and natural-gas utility serving NSA Annapolis and owns and operates the affected utility distribution infrastructure. GSA Areawide Public Utility Contract No. 47PA0724D0003 provides for BGE electric, natural-gas, and energy-management services within its franchised service territory.
The contemplated UESC requires integrated responsibility for natural-gas capacity upgrades, electric-system interconnection, grid coordination, and modifications affecting BGE-owned or controlled infrastructure. These functions are integral to the CHP, microgrid, and island-mode requirements.
The Government issued a Sources Sought Notice on February 5, 2026, which closed on February 20, 2026. Five firms responded to the notice. Based on the Government’s market research, acquisition planning, and review of the responses received, Baltimore Gas and Electric Company (BGE) was determined to be the only responsible source capable of satisfying the Government’s requirements. BGE was the only respondent possessing the requisite utility-service authority, control of the affected infrastructure, and ability to execute or authorize the necessary utility-system modifications and interconnection activities required to perform the contemplated UESC.
Submission of Capability Information
This notice is not a request for competitive proposals. However, responsible sources that believe they possess the capability, legal authority, and financing capacity to perform the complete requirement may submit a written capability statement.
Capability statements should demonstrate:
Legal authorization to provide the required electric and natural-gas utility services to NSA Annapolis;
Authority and ability to execute or authorize the required utility-infrastructure modifications;
Ability to perform and coordinate required electric-grid interconnection activities, including coordination with PJM Interconnection and applicable stakeholders;
Experience with projects of comparable size, scope, and complexity under a UESC or comparable utility-financed arrangement; and
Ability to provide the financing necessary to implement the project.
Responses shall contain sufficient information for the Government to determine whether the respondent can satisfy the complete requirement and shall be submitted electronically in PDF format to olisha.g.costa.civ@us.navy.mil no later than 1:00 PM Eastern Time on Tuesday, November 10, 2026.
The Government will consider timely responses before determining whether to proceed with the contemplated sole-source action. Information received will be considered solely for the purpose of determining whether to conduct a competitive procurement. The Government will not pay for information submitted in response to this notice.
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