APPROVAL:
COMMISSION
SECRETARY
Donna Hood
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT
Power Enterprise
AGENDA NO.
12 MEETING DATE
January 11, 2022
Professional Services Award: Regular Calendar
Contract Manager: Sunita Jones
Award Agreement No. PRO.0152, Power Scheduling Coordination Services and Related Support Services
Summary of
Proposed
Commission Action:
Approve the selection of APX Incorporated (APX), the sole responsive, responsible, and qualified proposer; award Agreement No. PRO.0152, Power Scheduling Coordination Services and Related Support Services, to APX to
assist the San Francisco Public Utilities Commission with power scheduling coordination services needed to support the SFPUC’s participation in the California Independent System Operator (CAIS O) electricity market, including the processing of SFPUC payments for wholesale electricity transactions; and authorize the General Manager to negotiate and execute a professional services agreement with APX for an amount not -to-exceed $136,500,000, with payments to APX in an amount not -to-exceed $6,000,000 for the scheduling coordinator services and $130,500,000 in pass -through payments to the CAISO which will be processed by APX without a markup and with a duration of five (5) years, subject to Board of Supervisors approval pursuant to Charter Section 9.118.
Background: In order for the San Francisco Public Utilities C ommission ( SFPUC) to provide service to its Hetch Hetchy Power (HHP) and CleanPowerSF electric customers, it must transmit electric energy through the transmission system controlled by the Ca lifornia Independent System Operator (CAISO) and conduct wholesale electricity transactions through the CAISO operated wholesale market. Only entities that have been certified as Scheduling Coordinators may int eract with the CAISO to schedule all power del iveries over the transmission system and to process payments for electricity transactions. The SFPUC is not a CAISO -certified Scheduling Coordinator.
Without contracting with a certified Scheduling Coordinator (SC), the SFPUC will not be able to transport power to its electric customers or engage in the CAISO wholesale mark ets. APX has provided this service to SFPUC since 2008.
The CAISO transmis sion charges and wholesale energy market transaction payments are required to be paid t o the CAISO through SFP UC’s contracted SC. The SC wil l pay to CAISO all charges owed by SFPUC without any Award Agreement No. PRO.0152, Power Scheduling Coordination Services and Related Support Services Meeting Date: January 11, 2022
Meeting Date: January 11, 2022Agreement No. PRO.0169, Project Pull Citywide Internship Commission Meeting Date: September 28, 2021
additional fee for the pass-through. The breakdown of charges included in this professional services agreement are as follows: $ 6,000,000 for the APX contract service costs and $130,500,000 for the CAISO pass-through charges.
Through PRO.0152, t he City s ought to retain the services of a qualified Proposer to assist the SFPUC with power scheduling services for the SFPUC’s participation in the markets of the CAISO.
APX, which currently serves as the SFPUC’s scheduling coordinator, was the sole bidder to provide SC and power trading services to the SFPUC. In addition to scheduling transmission of energy and processing all SF PUC payments to the CAISO for transmission charges, costs, and fees , these services include CAISO communications, settlement, dispute resolution, and invoice pr ocessing and Congestion Revenue Rights (CRR) management services. .
Description of Scope
of Services:
The work under the Agreement consists of:
• Submitting day-ahead and real-time interchange schedules and bids to CAISO;
• Managing communications between CA ISO and SFPUC schedulers and operators;
• Managing CAISO settlements and processing payments of CAISO charges;
• Managing CAISO and California Publi c Utilities Commission (CPUC) Resource Adequacy Requirements;
• Managing Access to CAISO Systems for Meter, Outag e, Settlement, Scheduling, and Bid/Award data;
• Submit Settlement Quality Meter Data (SQMD) to CAISO on beh alf of SFPUC; and
• Optional services, in cluding market analyses, energy trading, development of revenue strategies, and training of SFPUC staff.
Result of Inaction: A delay in approving this award will potentially result in the SFPUC being unable to transport power to its electric customers.
Budget & Costs: Funding: Funds to cover the cost of the Award will be available at the time of execution from Hetchy Power Operating Budget.
Not-to-Exceed Amount: $136,500,000
• APX Services Amount: $6,000,000
• CAISO Pass-Through Charges: $130,500,000
Schedule: Advertised: July 16, 2021
Estimated Notice-to-Proceed Date: April 2022
Estimated End Date: March 2027
Award Agreement No. PRO.0152, Power Scheduling Coordination Services and Related Support Services Meeting Date: January 11, 2022
Meeting Date: January 11, 2022Agreement No. PRO.0169, Project Pull Citywide Internship Commission Meeting Date: September 28, 2021
Duration: 5 years
Evaluation &
Selection:
Minimum Qualifications
To qualify as a Prime Proposer for this Agreement, a Proposer must cur rently be certified by the CAISO as an SC as the CAISO Tariff defines that term and specifies the functions and responsibilities of an SC. A Proposer must have possessed this certification continuousl y for a period of not less than one (1) year; a Proposer must also possess at a minimum the following qualifications for not less than one (1) year:
• Ap plicable qualifications and experience with providing SC services for generating assets, including inter mittent renewable resources and storage assets.
• Mus t have Operator Dispatch/ Automatic Dispatch System (ADS) experience.
• Experience and knowledge of the CAISO operations as they currently exist including substantial knowledge of CAISO Scheduling and S ettlements Markets.
• Experience with CAISO dispute p rocedures, extensive knowledge of CAISO charge codes and experienc e in verifying and disputing CAI SO charges.
Evaluation and Selection
The evaluation and selection process consisted of two phases: ( 1) evaluation of the Technical Written Proposal; and (2) analysis of the Overhead and Profit Schedule. The consultant teams could be awarded up to a maximum of 1,000 points for the written proposal.
The technical evaluation panel consisted of individual s knowledgeable on the subject matter and included staff fr om the San Francisco Airport, Port of San Francisco and the San Francisco Public Utilities Commission. The panel reviewed and ranked the written submissions.
Only one proposal was received, from APX, Inc., and that respondent is being recommended for contract award. SFPUC’s normal contracting outreach process of contacting interested available par ties was performed by SFPUC’s Contract Administration Bureau. SFPUC staff believes it is in the best interest of the SFPUC to award the agreement to APX, Inc, gi ven that there have not been any other interested parties , and APX, Inc currently pro vides SC services to the SFPUC for HHP and CleanPowerSF.
Final Score
Summary: Written Proposal and Overhead and Profit schedule:
Award Agreement No. PRO.0152, Power Scheduling Coordination Services and Related Support Services Meeting Date: January 11, 2022
Meeting Date: January 11, 2022Agreement No. PRO.0169, Project Pull Citywide Internship Commission Meeting Date: September 28, 2021
Firm
Technical
Written
Proposal
Score
(850)
Social
Impact
Partnership
Submittal
(50)
Overhead
&
Profit
Schedule
(100)
CMD
Bonus
%
Total
Score
(1,000)
APX, Inc 766.8125
0 100.0000 N/A 866.8125
Compliance with
Chapter 14B: Local
Business Enterprise
Utilization and Non-
Discrimination in
Contracting
Ordinance:
Pursuant to Chapter 14B of the San Francisco Administrative Code, the Contract Monitoring Division (CMD) Local Business Enterprise (LBE) sub- consulting requirement has been waived for this agreement.
Recommendation: SFPUC staff recommends that the Commission adopt the attached resolution.
Attachment: CMD Memorandum
Meeting Date: January 11, 2022Agreement No. PRO.0169, Project Pull Citywide Internship Commission Meeting Date: September 28, 2021
P
UBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
W
HEREAS, The San Francisco Public Utilities Commission (SFPUC ) requires a Scheduling Coordinator (SC) to provide services necessary to provide electricity to its loads, for an amount not-to-exceed $136,500,000, and with a duration of five (5) years; and WHEREAS, It is necessary to procure the services of a qualified firm to provi de specialized services including but not limited to California Independent System Operator (CAISO) communications, settlements , dispute resolution, and invoice processing and Congestion Revenue Rights (CRR) management services and processing all SFP UC payments to the CAISO for transmission and wholesale electricity transaction payments, charges, costs, and fees; and
WHEREAS, The estimated cost of services is $136,500,000, with payments to APX in an amount not-to-exceed $6,000,000 for the schedu ling coordinator services and $130,500,000 in pass-through payments to the CAISO which will be processed by APX without a markup; and WHEREAS, On July 16, 2021, SFPUC advertised a Request for Pr oposals (RFP) for a firm to assist the SFPUC with power scheduling coordination and scheduling agent services for the SFPUC’s participation in the markets of the CAISO , with s ervices anticipated to begin in April 2022 and end in March 2027, for a term of five years; and WHEREAS, The SFPUC received one proposal in response to the RFP from APX Incorporated (APX); and
WHEREAS, SFPUC Power and Contract Monitoring Division (CMD) staff, upon review of the proposal, determined tha t APX is a responsive and responsible firm based on the established scoring criteria; and
WHEREAS, Pursuant Chapter 14B of the San Francisco Administrative Code, the Local Business Enterprise (LBE) sub-consulting requirement has been waived for this agreement; and WHEREAS, The firm being awarded a contract by the SFPUC must be in compliance with the Equal Benefits Provisions of Chapter 12B of the City’s Administrative Code either at the time of the award, or within two (2) weeks of the date of the Commission award; failure of the bidder to obtain compliance certification from CMD may, in the General Manager’s sole discretion, result in award of the agreement to the next highest ranked proposer, or re-advertising and re-selecting consultants at the discretion of the City; and WHEREAS, Funds for Agreement No. PRO.0152, Power Scheduling Coordination Services and Related Support Services will be available at the time of execution from Hetchy Power Operating Budget ; now, therefore, be it RESOLVED, That this Commission hereby approves the selection of APX, the sole responsive, responsible, and qualified proposer , and awards Power Enterprise Operating B udget-funded Agreement No. PRO.0152, Power Scheduling Coordination Services and Related Support Service to APX to assist the San Francisco Public Utilities Com mission (SFPUC) with power scheduling coordination servi ces Meeting Date: January 11, 2022Agreement No. PRO.0169, Project Pull Citywide Internship Commission Meeting Date: September 28, 2021
the SFPUC’s participation in the markets of the California Independent System Operator; and be it
FURTHER RESOLVED, That th is Co mmission authorizes the General Manager to negotiate and execute a professional services agreement with APX for an amount not-t o-exceed $136,500,000 and with a duration of five years, subject to Board of Supervisor s approval pursuant to Charter Section 9.118.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of January 11, 2022.
Secretary, Public Utilities Commission
London N. Breed, Mayor
Carmen Chu, City Administrator
Romulus Asenloo, Director
1155 Market Street, 4th Floor, San Francisco, CA 94103 Telephone (415) 581-2310; Fax (415) 581-2351
OFFICE OF THE CITY ADMINISTRATOR
CONTRACT MONITORING DIVISION
MEMORANDUM
Date: December 2, 2021
To: Shamica Jackson, Utility Specialist, SFPUC
Shawndrea Hale, Contract Administrator, SFPUC
From: Linda Rainaldi, Contract Compliance Officer, CMD
Subject: PRO.0152 Power Scheduling Coordination and Related Support Services CMD Award Review Memo
The Contract Monitoring Division (“CMD”) has reviewed the sole proposal and supporting documentation and applied the appropriate rating bonus submitted for the above referenced project.
Based on this review, CMD determined that the following sole proposer was materially compliant with the pre-award Chapter 14B requirements:
APX Inc.
Rating Bonus
The following is a summary of the rating bonus information:
APX Inc. is not eligible for a rating bonus.
Score Sheets and Score Tabulations
The RFP indicates the SFPUC will proceed with award to the highest-ranked eligible proposer and that the SFPUC will tabulate and rank proposals on the written proposal, Social Impact Partnership submittal, and OPS scored. CMD reviewed the proposer’s score sheets provided by the panelists and the final, overall score tabulation from the SFPUC. Based on this information, the sole proposer is ranked as follows:
FIRM RANK
APX Inc. 1
LBE Subconsultant Participation Requirement
The LBE subconsultant participation requirement was waived for this contract.
Award Agreement No. PRO.0152, Power Scheduling Coordination Services and Related Support Services Meeting Date: January 11, 2022
Meeting Date: January 11, 2022Agreement No. PRO.0169, Project Pull Citywide Internship Commission Meeting Date: September 28, 2021
APX Inc. is the highest ranked proposer and did not list any LBE or non-LBE subconsultants on its CMD Form 2A.
Based on the foregoing, CMD has determined that the sole proposer, APX Inc., complied with the pre- award Chapter 14B requirements. Should you have any additional questions please contact me at (415) 754-3227.