DRAFT SOLICITATION Defense Energy Consortium (DECo) Consortium Management Organization (CMO)

Key Dates

Due Date

Posted Date

Agency & Value

Agency

FA8003 771 ENTERPRISE SOURCING SQ

Contract Value

Not provided

Codes & Classification

Solicitation Number

FA8003-26-R-0023

NAICS

541611 - Administrative Management and General Management Consulting Services

Classification Code

AG13

Additional Details

Set Aside

NONE

Place of Performance

Arlington, Virginia, UNITED STATES

SourceSAM

Documents4

The Department of the Air Force (DAF), through the 771 Enterprise Sourcing Squadron, has released a draft presolicitation for the selection of a Consortium Management Organization (CMO) to establish and manage the Defense Energy Consortium (DECo). This initiative represents a pioneering public-private partnership aimed at dramatically enhancing the energy resilience and mission assurance of Department of Defense (DoD) installations worldwide, in alignment with congressional mandates for energy resilience under 10 U.S.C. § 2920 and § 4022. Purpose and Scope: The primary objective of this procurement is to address the DoD’s critical dependence on off-site energy providers, which exposes national security missions to unacceptable risks from grid outages caused by maintenance, extreme weather, or adversarial attacks. Congress has mandated that by 2030, DoD installations must achieve at least 99.9% energy resilience year-round, equating to no more than 8.76 hours of downtime annually for all critical missions. The DAF has identified nearly 4,000 resilience gaps at its installations that require rapid, cost-effective mitigation through innovative energy technologies and business models. To meet this challenge, the DAF seeks to leverage Other Transaction Authority (OTA) under 10 U.S.C. § 4022, enabling the formation of a consortium that can access and deploy cutting-edge energy resilience solutions at commercial speed and scale. Unlike traditional consortia, DECo will be uniquely structured to rely solely on private capital for project financing, with no guarantee of appropriated funding for the CMO or future prototype projects. Key Requirements and Objectives: The selected CMO will be responsible for establishing and managing DECo, whose membership will include financiers, small businesses, non-traditional defense contractors, and an administrative team. The CMO’s core responsibilities will include: - Securing Funding Commitments: The CMO must attract and manage a pool of private investors, ensuring compliance with all relevant legal requirements and the ability to engage with investment authorities in host nations for overseas DAF installations. The CMO must guarantee that investments do not originate from prohibited countries or questionable sources. - Building Consortium Membership: The CMO must assemble a diverse membership base, including small businesses, traditional and non-traditional defense contractors, OEMs, nonprofits, national laboratories, academia, ESCOs, utilities, and professional services firms. The process must be inclusive and not unduly burdensome to innovative or non-traditional participants. - Negotiating the Consortium Management Agreement (CMA): The CMO will work with DAF to develop novel terms and conditions for the CMA, reflecting DECo’s reliance on private financing and the unique legal, regulatory, and fiduciary requirements of energy resilience projects. This includes adherence to federal, state, and utility regulations, NEPA procedures, and federal real estate leasing laws, particularly for onsite energy generation. - Due Diligence and Risk Management: The CMO will conduct all necessary due diligence at its own expense and risk, including financial vetting of investors and members, and must be prepared to indemnify DAF against costs incurred if a prototype project does not proceed to production. - Contracting Expertise: The CMO must possess in-house expertise in structuring and negotiating long-term, third-party financed power purchase agreements and energy services contracts with DoD, utilizing applicable federal laws and regulations. - Transparency and Reporting: The CMO will be required to maintain robust transparency and reporting mechanisms, including financial due diligence, ROI calculations, and ongoing education for members on DoD energy procurement laws. Expected Deliverables: Upon successful negotiation and execution of the CMA, the CMO will facilitate the execution of a portfolio of prototype solicitations issued by DAF, with the goal of rapidly deploying energy resilience solutions across DAF installations. The CMO will also be responsible for ongoing consortium management, investor relations, compliance, and reporting. Contracting Entity and Contact Information: - Contracting Entity: FA8003 771 Enterprise Sourcing Squadron, Federal Office - Place of Performance: Arlington, Virginia, United States - NAICS Code: 541611 (Administrative Management and General Management Consulting Services) - Product Service Code: AG13 - Set-Aside: None (open to all qualified entities) - Primary Contact: Brock Moon ([email protected], 937-257-7440) - Secondary Contact: Nicholas Kimmey ([email protected]) Procurement Type and Special Considerations: This is a presolicitation notice for a competitive selection under OTA authority, not subject to the Federal Acquisition Regulation (FAR). There are no set-aside requirements, and the opportunity is open to all qualified organizations with the requisite expertise and capacity. The unique reliance on private financing, the need for international investment compliance, and the requirement for innovative business and contracting models distinguish this opportunity from traditional DoD energy consortia. Additional Information: Interested parties are encouraged to participate in the upcoming Industry Day on Monday, June 29th, from 11:00 to 12:00 EDT, and to provide feedback via the designated form. Further details, including attachments and registration links, are available on the official SAM.gov opportunity page (https://sam.gov/opp/b9f43d13378048cca60c142622797cb7/view). This opportunity is ideal for organizations with demonstrated experience in consortium management, energy project financing, and DoD contracting, particularly those capable of mobilizing private capital and navigating complex regulatory environments both domestically and internationally.