The purpose of this RFP is to solicit experienced technical assistance to the Moldova Energy Security Activity (MESA) within the Scope of Work (SOW) specified in the Attachment A – Technical Specifications for the Natural Gas Tariff Methodology funded by USAID/Moldova and implemented by Tetra Tech ES, Inc.
Bidder must provide the following information and references to qualify for the procurement process:
The USAID authorized geographic code for the Moldova Energy Security Activity project is 937. Code 937 (the United States, the recipient country, and developing countries other than advanced developing countries, but excluding any country that is a prohibited source). Source and Nationality rules can be found in USAID regulation ADS 310, available here: ADS Chapter 310 - Source and Nationality Requirements for Procurement of Commodities and Services Financed by USAID
All proposals are due on July 1, 2022 at 5:00 PM EST, Washington D.C. Time. Proposals must be submitted via e-mail to MESA Procurement Team, at the addressMESABIDS@tetratech.com in the following formats: Adobe Acrobat and Microsoft Word and/or Excel.
Proposals must fully respond to the Technical Specifications enclosed as Attachment A, and must include quotations in the format provided in Attachment B - Table 1 – Budget. Proposals received after the above-stated due date and time will not be considered for this procurement.
All questions or clarifications regarding this RFP must be in writing and submitted in English to MESABIDS@tetratech.com no later than Friday June 17, 2022 at 5:00 PM EST, Washington D.C. Time. Questions and requests for clarification, and the responses thereto, will be circulated to all RFP recipients.
Only written answers from Tetra Tech will be considered official and carry weight in the RFP process and subsequent evaluation. Any answers received outside the official channel, whether verbally or in writing, from employees or representatives of Tetra Tech, or any other party, will not be considered official responses regarding this RFP.
All Offerors must follow the instructions set forth herein to qualify for the procurement process. If an Offeror does not follow the instructions set forth herein, the Offeror's proposal may be eliminated from further consideration or the proposal may be downgraded and not receive full credit under the applicable evaluation criteria.
Separate Technical and Cost Proposals must be submitted. All proposals should be submitted in English.
Technical Proposal
The technical proposal (excluding CVs) shall not exceed five pages. Proposals will be scored on a 100-point scale. Available points for each evaluation factor are given below. Offerors must address each evaluation factor.
The suggested outline for the technical proposal is stated below:
Description of organization, including of activities/qualifications carried out similar to the Technical Specifications requested in this RFP.
Present a narrative that describes how the Offeror would implement the tasks identified in the Technical Specifications. This narrative must also include:
Information which the Offeror considers proprietary, if any, should be clearly marked "proprietary" next to the relevant part of the text and it will then be treated as such.
Present a narrative that includes the following:
In addition to presenting the CVs, bidders should complete and include the illustrative table below, customizing it in order to match the requirements of the SOW.
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Bidders should provide a summary of relevant studies or other assignments including the Title, Client, Date and a brief description. The qualifications section is limited to 5 of the most relevant studies or other assignments performed in the last 5 years, presented in the following table format. If the client is confidential, simply list "confidential".
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Financial Proposal
Bidder shall complete Table 1 of Attachment B "Detailed Budget" to allow Tetra Tech ES, Inc. to compare all quotes and make a competitive selection. The budget should be provided in Excel format with unlocked cells.
A price must be provided for each project component to be considered compliant with this request. The price proposal should include the individual line items shown in the template, e.g., fully burdened daily rates, travel costs, and other direct costs. Offers must show unit prices, quantities, and total price. All items, services, etc. must be clearly labeled and included in the total offered price. The financial proposal shall also include a budget narrative that explains the basis for the estimate of every cost element or line item. Supporting information must be provided in sufficient detail to allow for a complete analysis of each cost element or line item. Tetra Tech reserves the right to request additional cost information if the evaluation committee has concerns of the reasonableness, realism, or completeness of an Offeror's proposed price.
Bidder shall provide unit pricing in US dollars. Prices quoted in this document shall be valid for a 30-day time period, include all taxes and other costs and the VAT tax originated in Moldova.
For each staff member proposed, the Offeror shall submit a completed and signed USAID 1420 form.
USAID form 1420 can be downloaded here: https://www.usaid.gov/forms/aid-1420-17
Document on company letterhead certifying the labor rates being proposed are standard rates and have been previously billed to clients for similar work.
These documents can be found in Attachments C of this RFP and must be submitted as part of the Cost Proposal.
Under no circumstances may cost information be included in the technical proposal. No cost information or any prices, whether for deliverables or line items, may be included in the technical proposal. Cost information must only be shown in the cost proposal.
Award will be made to the Offeror representing the best value in consideration of past performance, qualifications and price factors. Technical criteria are more important than cost, although prices must be reasonable and will be considered in the evaluation. Bidders are encouraged to provide a discount to their standard commercial rates.
Tetra Tech reserves the right to conduct discussions with selected bidder(s) to identify the best value offer. Award of any resulting Subcontract Agreement shall be made by Tetra Tech on a best value basis. Tetra Tech reserves the right to request a test assessment from bidders to assess their qualifications.
The submitted technical information will be scored by an evaluation committee using the following technical evaluation criteria (75 points) and cost proposal (25 points).
Technical Proposal (75 points)
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Evaluation Criteria for Technical Proposal |
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I. Technical Approach |
25 |
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II. Proposed Staff |
25 |
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III. Company Past Experience |
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TOTAL |
75 |
Financial Proposal (25 points)
The lowest qualified financial proposal will receive the maximum score of 25 points. The other proposals will be scored inversely proportional to their price and computed as follows:
Sf = 25 * Fm/F
Sf = Financial Score of the proposal evaluated
Fm = the price of the lowest priced Financial Proposal among those qualified
F = is the price of the Financial Proposal under consideration
Offerors should submit a Detailed Budget reflecting the cost of completing the scope. Bidders shall complete the Attachment B – Detailed Budget. Labor rates quoted in this document shall be fully-burdened with all indirect costs, taxes and fee, if any. The period of performance is 12 months.
Tetra Tech reserves the right to conduct discussions with selected offerors in order to identify the best value offer. Award of any resulting Subcontract Agreement shall be made by Tetra Tech on a best value basis, with evaluation of proposed price as well as proposed services and implementation schedule.
Payment terms for the awarded Subcontract Agreement shall be net forty-five (45) days after satisfactory completion and acceptance and of services and deliverables. Payment shall be made by Tetra Tech ES, Inc. in the U.S. via bank wire transfer.
If the proposed fixed price is above $30,000, the successful bidder will be required to furnish a DUNS number and proof of SAM.gov registration within 24-48 hours of notice of award. Information regarding obtaining a DUNS number may be found here: https://fedgov.dnb.com/webform
Best offer proposals are requested. It is anticipated that a subcontract will be awarded solely on the basis of the original offers received. However, Tetra Tech reserves the right to conduct discussions, negotiations and/or request clarifications prior to awarding a subcontract. Furthermore, Tetra Tech reserves the right to conduct a competitive range and to limit the number of offerors in the competitive range to permit an efficient evaluation environment among the most highly rated proposals. Highest rated offerors, as determined by the technical evaluation committee, may be asked to submit their best prices or technical responses during a competitive range.
Tetra Tech ES, Inc. reserves the right to issue multiple awards. Tetra Tech ES, Inc. also reserves the right to issue no awards.
ATTACHMENT A – TECHNICAL SPECIFICATION
TECHNICAL SPECIFICATION
SCOPE OF WORK: Moldova 1) Amendments to the Natural Gas Tariff Methodology and 2) Renewable Energy Competitive Procurement
PERIOD OF PERFORMANCE: July 1, 2022 – July 2, 2024
PLACE OF PERFORMANCE: Chişinău, Moldova
Project Description
The objective of MESA is to strengthen Moldova’s energy security by: (1) advancing physical and market integration of the Moldovan energy sector with Europe; (2) increasing renewable energy integration; and (3) increasing investment in energy efficiency and domestic power generation, particularly through increased adoption of renewable energy technologies.
Within this context, MESA is seeking a qualified vendor to support Moldova’s National Energy Regulatory Authority of Moldova (ANRE) to develop amendments to the natural gas transmission tariff methodology with a view to implement a harmonized transmission tariff setting approach compliant with the relevant European Union (EU) natural gas Network Codes and the renewable energy competitive procurement process.
Description of scope activities is broken down into two lots:
Details are below.
LOT 1: Natural Gas transmission tariff methodology
LOT I - Context
Under the task, MESA seeks to assist the National Agency for Energy Regulation of Moldova (ANRE) in reforming the current transmission tariff setting approach and support the energy regulator in identifying the necessary elements to be included in the tariff methodology to enable the implementation of the harmonized calculation approach.
The natural gas transmission system of the Republic of Moldova (excluding Transnistria region) currently consists of two transmission networks, owned by two distinct licensed transmission system operators: Moldovatransgaz, affiliated to Moldovagaz company (vertically integrated gas undertaking) and Vestmoldtransgaz – former state-owned company, acquired by the Romanian natural gas transmission company Transgaz. Following the finalization in 2021 of construction works for the Ungheni – Chisinau transmission pipeline (extension of the existing cross-border natural gas interconnection Iasi – Ungheni), the two transmission networks are interconnected at the transmission level, which enables the physical flows of natural gas between the two transmission systems and, potentially, the gas flows in both directions over the Ukraine - Moldova - Romania corridor.
In the context of the initiated market reforms following the commitments undertaken within the Energy Community Treaty related to transposition and implementation of EU Third Energy Package in the field of natural gas, including the EU network codes, a set of amendments to the Law on Natural Gas, no. 107/2016 is currently under examination in the Parliament for adoption in 2nd reading. The amendments to the Law on Natural Gas stipulate inter alia that the Moldovan natural gas system shall be treated as a single entry-exit system and entry-exit natural gas transmission tariffs shall be set in a harmonized way for licensed TSOs, with the application of an inter-TSO compensation mechanism.
The harmonized transmission tariff setting principles shall be in line with the requirements of the Commission Regulation (EU) 2017/460 of 16 March 2017 establishing a network code on harmonized transmission tariff structures for gas (TAR NC), which is mandatory for implementation in the Republic of Moldova in the context of commitments undertaken within the Energy Community Treaty, to which Moldova is a Contracting Party. In this regard, ANRE has transposed in its Natural Gas Network Code the TAR NC as adapted by the Energy Community PHLG decision No. 2018/07/PHLG-EnC. At the same time, on 27 December 2019, ANRE approved a new natural gas transmission tariff methodology[1], which employs elements of the TAR NC (capacity-based entry/exit tariffs, established based on reference prices calculated using the capacity weighted distance method). However, to ensure the implementation of the Natural Gas Network Code in the part related to the calculation of transmission tariffs using a harmonized approach for all TSOs, amendments to the specified tariff methodology approved by ANRE are needed.
LOT 1 - Tasks
Task 1.1: Capacity building for the energy regulator to expand the knowledge and understanding of the principles related to calculation and application of harmonized natural gas transmission tariffs as per TAR NC principles.
The offeror is expected to engage with the energy regulator in joint meetings (format to be agreed further on) to discuss in details principles of TAR NC applicable for the calculation of harmonized transmission tariffs, considering also the specific principles established in the Law on Natural Gas (including the draft amendments that are under examination in the Parliament). The offeror will also provide details regarding specific elements of the tariff setting principles outlined by the TAR NC and national legislation, including the entry-exit split, seasonal factors, multipliers and interruptible discounts, clustering of points, inter-TSO compensation mechanism, adjustments to the application of the reference price methodology, cost allocation assessment, etc.
Task 1.2: Assist ANRE in identifying necessary amendments to the existing tariff methodology and drafting provisions to be included in the methodology
Offeror shall examine the existing transmission tariff methodology and, potentially, other relevant secondary legislation, to identify missing elements that are necessary for an effective implementation of the harmonized tariff setting approach and propose corresponding amendments to the tariff methodology. This task is expected to be carried out by the offeror in close cooperation with the energy regulator.
Task 1.3: Assist ANRE during the public consultation process related to the draft amendments to the tariff methodology
Upon request, the offeror will assist ANRE during the public consultation of the draft amendments to the Methodology for calculation of natural gas transmission tariffs. The assistance may include inter alia:
LOT I - Deliverables
LOT I - Timeline
The proposed set of activities is expected to commence in July 2022 and continue up to the adoption by the Administration Council of ANRE of the amendments to the tariff methodology implementing the harmonized tariff setting approach described above. Tentatively, this period is anticipated to be 6 months from the kick-off of the activity, but it may be extended depending on the duration of the public consultation process, the amount of received comments and decision-making process at ANRE.
LOT II: RENEWABLE ENERGY SOURCE (RES) COMPETITIVE PROCUREMENT
LOT II - Context
Under this task, MESA seeks to assist Moldovan stakeholders in designing and implementing renewable energy (RES) competitive procurement procedures in line applying RES support scheme and mechanisms.
The Law on the Promotion of Use of Energy from Renewable Sources (Law on RES) sets the national targets for renewable energy up to 2020 and defines the legal and institutional environment necessary for the application of support schemes to incentivize the use of energy from renewable sources to achieve these targets. Moreover, the Law on RES establishes the administrative procedures applicable in relation to renewable energy activities (including issuance of licenses), sets the general and specific requirements regarding access to the grid for producers of energy from renewable sources, as well as the principles related to the implementation of guarantees of origin system compliant with the requirements of the EU Directive 2009/28/EC.
Moreover, the Law on RES differentiates the implementation of the support scheme under two distinct approaches (i.e. a competitive procurement and feed-in tariff support scheme), depending on the size of the RES-E power plant owned/planned to be built by the eligible producers
The RES-E support scheme, as defined by the Law on RES, implies the obligation of a designated local supplier (the “central electricity supplier”, abbr. CES) to buy all the RES-E generated and delivered into the electric networks by the RES-E generator holding the status of “eligible producer”, at a fixed price/tariff, for a period of 15 years starting from the moment the RES-E power plant is put into service. Therefore, by receiving the status of eligible producer, the respective RES-E generator gains access to the support scheme and, respectively, to all guarantees provided by it.
LOT II - Tasks
Under this lot the offeror will support the Moldovan stakeholders in:
LOT II - Timeline
It is expected that work will commence tentatively in mid-2023 and continue for the duration of a calendar year. An updated time schedule will developed.
LOT II – Deliverables
A final report describing the conducted activities and results, including any document or other output produced under the scope of work described above.
ATTACHMENT B - DETAILED BUDGET
PROPOSED DETAILED BUDGET (Time and Materials)
TABLE 1- Overall Subcontract Budget
*LOE = Level of Efforts, budgeted number of days assigned for the work
Rate = fully loaded daily rate
Prices quoted must be valid for 30 days, and account for ALL remuneration, per diem, travel, communications, report reproduction and other out-of-pocket expenses, taxes and other costs, but including the VAT tax that may be originated in Moldova. On this basis Tetra Tech will issue a Time and Material Subcontract, and payment shall be based upon acceptance of services and deliverables described in the Attachment A.
Bidder Representations and Certifications
The offeror represents, to the best of its knowledge and belief, that this award:
does [ ] or does not [ ] involve an organizational conflict of interest.
Please see FAR 52.209-8 for further explanation.
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By signing below, the Bidder certifies that the representations and certifications made, and information provided herein, are accurate, current and complete.
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[1] Methodology for calculation, approval, and application of regulated tariffs for natural gas transmission service, approved by ANRE Resolution no. 535/27.12.2019.
ATTACHMENT D - QOUESTIONS AND ANSWERS
Response: the purpose of this exercise is two-fold. On one hand, the barriers and obstacles preventing the market uptake under the currently defined RES support schemes need to be indicated. On the other hand the gaps and proposed recommendations aim at providing detailed guidance to the local decision makers on how they should proceed in a prioritized and orderly manner.
Lot II: the contractor is anticipated to define the minimum number of workshops with stakeholders based on their experience and proposed approach
Lot II: the contractor is anticipated to define the relevant deadlines in their proposal based on their experience and proposed approach