Market News

 March 05, 2012
U.S. Army Solicits Industry Feedback for $7 Billion in Upcoming Renewable Power Contracts

 In support of the U.S. Army's Net Zero Initiative and in partnership with the Energy Initiative Task Force (EITF), the U.S Army Engineering and Support Center in Huntsville has invited public comment on a draft Request for Proposals (RFP) that represents the largest contracting opportunity released for renewable energy to date. The Huntsville center will award $7 billion in contracts over the next 10 years to both large and small businesses that will develop renewable and alternative power-generation projects at Army installations.

The Department of Defense aims to produce or consume 25 percent of its total energy use from renewable sources by 2025. In 2011, EITF was created to implement the Army's Net Zero Initiative and make progress toward the ultimate goal of achieving net zero energy, water, and waste on 30 Army bases by 2030.1 The Huntsville center has been involved in the Army's energy program since the early 1980s and will continue to play a role in providing unique solutions for third-party contracting involving energy projects. It will work with EITF to select the contractor teams with favorable proposals to enter into long-term power purchase agreements or other contractual equivalents with the Army. The Army has expressed a preference for contractors with deep experience developing projects that incorporate solar, wind, geothermal, and biomass technologies. Future projects may be located on or near any federal property located within the U.S., including Alaska, Hawaii, territories, provinces, or other property under the control of the U.S. government for the duration of contract performance.

The draft solicitation, Renewable and Alternative Energy Power Production, is posted on the Federal Business Opportunities website at www.fbo.gov, and it will be available for comment for 30 days (until March 21, 2012). While no awards will be made as a result of this draft RFP, we strongly urge companies and developers interested in pursuing this opportunity to review the draft RFP and submit comments. Any comments regarding this draft solicitation are to be submitted via the ProjNet website at http://www.projnet.org/projnet in accordance with the instructions contained in the draft RFP.