DEFENSE FUEL SUPPLY CENTER ELECTRICITY BASIC AGREEMENTS The Defense Fuel Supply Center (DFSC) is seeking to enter into Basic Agreements [see Federal Acquisition Regulation [FAR] Part 16.702] with potential suppliers of electricity, ancillary services, and incidental services. The emerging competitive market for electricity is currently under study by the Department of Defense (DOD). It should be noted that DOD has not assigned responsibility for a centralized electricity procurement program to DFSC. However, in view of the changing regulatory environment, the execution of Basic Agreements affords DFSC the best opportunity to meet future installation electricity requirements, if requested to do so, through award of definitive contracts using existing Basic Agreements. Section 8093 of Public Law 100-102 specifically precludes the Federal Government from expending appropriated funds to purchase electricity in a manner inconsistent with state law and regulation. However, the execution of Basic Agreements with potential suppliers is permissible as these agreements will not be used to compete for any electricity requirement until such time as state law or regulation allows. For administrative purposes and ease of management only, DFSC has identified three geographical regions (based primarily on the North American Reliability Council [NERC] regions) in which BAs are to be established. Until the electricity market of each state within a region is restructured, DFSC will not competitively procure electricity on a region-wide basis but will do so on a state by state basis as restructuring occurs with in each state. The three regions identified by DFSC are as follows: Northeast Region -- Comprised of that area of the Northeast Power Coordinating Council (NPCC) NERC region which is within the continental United States (CONUS); Mid-Atlantic Region -- Comprised of the Mid-Atlantic Area Council (MACC) NERC region, that portion of Pennsylvania within the East Central Area Reliability Coordination Agreement (ECAR) NERC region and that portion of the Southeastern Electric Reliability Council (SERC) NERC region served by Virginia Power; Western Region -- Comprised of that area of the Western Systems Coordinating Council (WSCC) NERC region which in within CONUS and that portion of Montana within the Mid-Continent Area Power Pool.(MAPP) NERC region. Firms interested in entering into Electricity Basic Agreements with the Defense Fuel Supply Center are invited to complete and forward a Basic Agreement Submittal Package no later than 3:00 p.m. local time, Fort Belvoir, VA, October 8, 1997. DFSC-A will host a meeting at the DLA Headquarters building in Fort Belvoir, VA from 9:30 a.m. to 11:30 on September 30, 1997 to review the Basic Agreement Submittal Package, the Basic Agreement execution process and to respond to questions. Individuals interested in attending this meeting should contact DFSC-A no later than September 25, 1997 for additional information. Points of contact are: LCDR Jeff Cox, Electricity Team Leader, (703) 767-8529 or Mr. Jacob Moser, ContractSpecialist, (703) 767-8566. WEB: Click here for a copy of the Basic Agreement Package, http://www.dfsc.dla.mil/main/a/electric/. E-MAIL: For additional information contact Mr. Moser via e-mail, jmoser@dfsc.dla.mil.

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