Department of War Nationwide Coal-based Power Purchase Agreement (PPA)

The Department of War, through the Defense Logistics Agency Energy, is pursuing an Indefinite Delivery/Indefinite Quantity (IDIQ) contract for coal-based electricity and ancillary services under Executive Order 14386, which designates coal as essential to national and economic security and mandates procurement from existing domestic coal-fired power plants to enhance grid reliability, prevent blackouts, and support mission assurance for defense and intelligence facilities. The solicitation SP060426R0409 seeks firm-fixed-price Task Order Power Purchase Agreements (TO-PPAs) to deliver electricity from interconnected commercial coal plants within the Continental United States, serving DoW installations without involving any new construction or operation of facilities on government property. The overall contract term may not exceed 30 years, while the IDIQ vehicle itself is capped at five years, beginning with delivery starting the first day of the month following the Commercial Operation Date, as specified in each task order. Offerors must be registered in SAM.gov, not appear on any restricted lists such as the SDN or DPL, and satisfy all responsibility and qualification criteria, including compliance with extensive FAR and DFARS clauses covering definitions, disputes, tax matters, procurement integrity, and reporting obligations, all verified through SAM.gov. Proposals must be submitted electronically by 2:00 PM EDT on May 15, 2026, to dlaenergyresilience@dla.mil, and include a detailed technical proposal identifying specific DoW installations targeted, as well as a pricing structure explanation demonstrating commercial and government advantage through options like firm-fixed price, take-or-pay, indexed pricing, or blended models. Evaluation will prioritize price as the most critical factor, with combined technical and risk considerations deemed significantly less important. The Government will award multiple contracts based on best value, including evaluation of option pricing which must not be unbalanced; all awardees will receive fair opportunity for each task order under FAR 16.505(b). Invoices must contain detailed breakdowns including TIN, contract and line item numbers, delivery information, and payment terms, submitted either in original with three copies or electronically, directed to the address in Block 18a. The Contractor is required to comply with numerous federal statutes including those on kickbacks, contract work hours, procurement integrity, pay-to-play restrictions, and Fly American requirements, and is shielded from liability for consequential damages absent express warranty. Performance obligations are tied to existing coal facilities with no new builds permitted, and all