MURIEL BOWSER
MAYOR
July 3, 2023
Honorable Phil Mendelson
Chairman
Council of the District of Columbia
John A. Wilson Building
1350 Pennsylvania Avenue, NW, Suite 504
Washington, DC 20004
Dear Chairman Mendelson:
Enclosed for consideration and approval by the Council of the District of Columbia is a proposed
emergency approval resolution, the “Contract No. DCAM-21-NC-RFQ-0001E PPA-23-01 with
NEO, LLC Emergency Approval Resolution of 2023” and an accompany emergency declaration
resolution.
The legislation will approve multiyear Contract No. DCAM-21-NC-RFQ-0001E PPA-23-01 with
NEO LLC to provide solar energy generation systems at Banneker High School, John Lewis
Elementary School, and Takoma Aquatic Center. Under the proposed contract, NEO LLC will
provide turn-key master solar photovoltaic system development, including design, permitting,
construction, interconnection, operation, maintenance, and power purchase agreement
administration. The System Owner will be compensated through the federal Solar Investment Tax
Credit and the Solar Renewable Energy Credits (SRECs) produced by the solar energy systems.
The Department will be the off-taker of 100% of the electricity at $0 per kilowatt-hour (kWh)
produced during the 20-year term.
If you have any questions regarding this legislation or contract, please contact Delano Hunter,
Acting Director of DGS, or have your staff contact George G. Lewis, DGS’s Chief of Contracts
and Procurement, at (202) 727-2800.
I look forward to the Council’s favorable consideration of this contract.
Sincerely,
Muriel Bowser
 Contracts & Procurement
Pursuant to section 202(a) of the Procurement Practices Reform Act of 2010, as amended,
D.C. Official Code § 2-352.02(c), the following contract summary is provided:
COUNCIL CONTRACT SUMMARY
(Multiyear)
Contract for Bundle 1, Power Purchase Agreement for the Development of Solar Power
Generation System at Banneker Highschool John Lewis Elementary School, and Takoma
Aquatic Center
(A) Contract Number: DCAM-21-NC-RFQ-0001E PPA-23-01
Proposed Contractor: NEO, LLC
Description: Bundle 1, Power Purchase Agreement
Contract Amount
(Twenty (20) Years): Not-to-Exceed $0
Unit and Method of Compensation: $0.00 Per kilowatt hour unit price for solar
electricity generated.
Term of Contract November 21, 2022 (Date of Execution of
Letter Contract) through November 20, 2042
Type of Contract: Power Purchase Agreement (“PPA”)
Source Selection Method: Request for Power Purchase Agreement
Proposal solicited from Basic Ordering
Agreement Contract holders.
(B) For a contract containing option periods, the contract amount for the base period and
for each option period. If the contract amount for one or more of the option periods
differs from the amount for the base period, provide an explanation of the reason for
the difference:
The on-site Power Purchase Agreement DCAM-21-NC-RFQ-0001E PPA-23-01 between
the Department of General Services (the “Department” or the “Host Customer”) and NEO,
LLC (the “Contractor” or the “System Owner”) (collectively, the “Parties) provides that
 Council Summary - DCAM-21-NC-RFQ-0001E PPA-23-01
Bundle 1, Power Purchase Agreement
Page 2 of 8
the Department is hosting the roof space and steel structures (canopies) for the System
Owner to mount its solar energy systems (“Systems”) for a 20-year term. the solar
electricity price paid by the District for output shall be $0/kWh for the term of the PPA.
Therefore, the Parties acknowledge and agree that, for all services performed during the
20-year term, the System Owner’s sole compensation from the Department shall be the
Department’s agreement to offtake 100% of the electricity generated by the Systems and
transfer ownership of all SRECs generated by the Systems to System Owner upon
development, installation, and operation of the Systems. It is understood that the System
Owner shall not be due any additional compensation from the Department for design, pre-
installation, construction, operation, or maintenance services.
(C) The goods or services to be provided, the methods of delivering goods or services, and
any significant program changes reflected in the proposed contract:
If approved, the Contract will authorize the Contractor to provide turn-key solar system
development, including design, construction, interconnection, operation, maintenance,
community solar program operations, and PPA administration for the purpose of deploying
renewable energy to combat climate change, creating innovation, and realizing long-term
cost savings. The Department will purchase all electricity generated by the systems on an
on-going basis. Ultimately, the Department’s goal is to both reduce its energy consumption
from existing traditional energy sources and to lower its overall energy costs.
(D) The selection process, including the number of offerors, the evaluation criteria, and
the evaluation results, including price, technical or quality, and past performance
components:
1- Request for Qualification Solicitation Background:
On August 14, 2020, the Department issued the RFQ to solicit Statements of Qualifications
(“SOQs”) from qualified on-site solar electric power (“Photovoltaic” or “PV”) Project
Developers (the “Offerors”) who showed interest in the Development of Solar Power
Generation System Projects for various facilities within the District’s real estate portfolio.
The pre-proposal conference was held at 2:00 p.m. EST on Monday, August 24, 2020, via
a Web-x webinar. The proposal submission deadline was set for Wednesday, September
23, 2020, by 2:00 P.M. EST.
The RFQ was posted on the DGS website, and email notifications were sent to potential
CBE firms identified through market research as local companies capable of providing the
required services. In addition, an email with the web site link was sent to the Department
of Small and Local Business Development (“DSLBD”) Opportunities Team to forward to
all CBE firms. The Department received a total of (16) SQLs in response to the RFQ.
Department of General Services 2000 14th Street, NW, Washington D.C. 20009
Council Summary - DCAM-21-NC-RFQ-0001E PPA-23-01
Bundle 1, Power Purchase Agreement
Page 3 of 8
SQL Evaluation:
Proposals were examined to determine whether they met all the requirements of the RFQ.
Three (3) of the sixteen Offerors, as failed to provide the required DSLBD CBE
certification and were subsequently deemed non-responsive and removed from further
consideration and evaluation. The proposals from the remaining thirteen (13) Offerors
were then scored on a scale of zero (0) to one-hundred twelve (112) points. The one-
hundred twelve (112) points include (100) points for the technical criteria and up to (12)
points based on the Offeror’s status as a CBE.
Certified Business Enterprise Preference Points:
The SQL was an SBE set-aside procurement, the Department confirmed that each Offeror
possessed a current SBE certification with DSLBD. Thus, up-to an additional twelve (12)
preference points were available for each Offeror based on the points associated with each
category of certification.
Contracting Officer’s Independent Evaluation:
The Department’s Contracting Officer independently scored and reviewed the Offerors.
The Contracting Officer also reviewed the evaluation process followed by the Panel, their
notes and scoresheets, their final consensus technical evaluation, ultimately determining
the Panel’s technical evaluation and proposed scores were fair and reasonable.
Contract Award:
In concurrence with the Panel’s consensus, the Contracting Officer determined that the
SOQs presented by ten (10) Offerors with 70+ evaluated points met the criteria established
in the RFQ and each Offeror’s SOQ provided sufficient evidence of the team’s ability to
perform services efficiently and in accordance with the established requirements. The
Contracting Officer determined it was in the best interest, and most advantageous to the
District to award the proposed Basic Ordering Agreement (“BOA”) Contracts to ten firms.
2- Request for Power Purchase Agreement Proposal (“RFPPAP”) Process:
On March 15, 2022, the Department issued the RFPPAP-1 to, two (2) of the pre-qualified
Basic Ordering Agreement (BOA) holders for the development of solar power generation
systems to provide services for three facilities, Banneker High School, John Lewis
Elementary School, and Takoma Aquatic Center (collectively, and identified hereafter as
Bundle 1). The RFPPAP included a proposed Power Purchase Agreement along with
design-build and solar generation minimum requirements. The pre-proposal conference
was held on March 21, 2022, at 2:00 p.m. via WebEx Webinar and proposals were due on
April 29, 2022. Both potential BOA Offerors responded to the RFPPAP.
RFPPAP Evaluation:
The proposals were examined to determine whether they met all the requirements of the
RFPPAP and proposed PPA requirements. A Technical Evaluation Panel was assigned to
Department of General Services 2000 14th Street, NW, Washington D.C. 20009
Council Summary - DCAM-21-NC-RFQ-0001E PPA-23-01
Bundle 1, Power Purchase Agreement
Page 4 of 8
independently review each proposal and score each technical criteria; (i) relevant technical
experience and ability to meet to SOW requirements, and (ii) project management plan and
schedule. After the TEP members completed their individual evaluations, the Panel met to
develop a consensus technical score for each Offeror. In developing the consensus score,
the Panel discussed the details of each proposal considering the evaluation factors and sub-
factors. Then, as a group, the Panel completed a technical evaluation of each Offeror with
respect to each sub-factor for evaluation. The TEP assigned each sub-factor one of 6 ratings
and divided the points available for each factor among the sub-factors in that category.
Certified Business Enterprise Preference Points:
The RFPPAP issued to those contractors currently holding a BOA under Contract No.:
DCAM-21-NC-RFQ-0001E which was originally solicited in the SBE set-aside market.
The Offerors current SBE preference points were considered and factored as part of their
overall score.
Contracting Officer’s Independent Evaluation:
The Contracting Officer thoroughly reviewed and conducted an independent evaluation of
each proposal; reviewed the evaluation process followed by the Panel, their notes, and
scoresheets, including their final consensus technical evaluation. The CO concluded that
the Panel’s scores and technical evaluation of the proposed Offerors were fair and
reasonable thus, the Panel’s technical evaluation and proposed scores were adopted.
Power Purchase Agreement Award:
NEO’s offer provides solar electricity ($/kWh) at $0.00 / kWh per year for 20 years for
each site (Benjamin Banneker HS, John Lewis ES, and Takoma Aquatic Center). As the
awarded solar PV system owner for Bundle-1, as the operator and at their own discretion,
without any additional tacit agreement by the Department, NEO will be able to profit on
this investment through (i) Federal investor tax credit and (ii) passive income opportunities.
As a result, the Department is able to accept this $0.00 /kWh pricing. Additionally, through
the investor tax credit, NEO will be able to write off up to 30% of the systems’ cost on
their federal income taxes. The Passive income opportunities refer to NEO’s ability to
monetize, at their own discretion and without an additional tacit agreement by the
Department, Solar Renewable Energy Credits (SRECs) garnered through the continued
operation of the Solar PV Systems. One SREC (current market rate value of
$400.00/SREC) is garnered via every MWh (1000 kWh) of electricity generated and can
be sold by NEO in the PJM or similar marketplace to SREC off takers at a market value
rate which market supply and demand, Utility Commission, and additional negotiations
between the transactional parties determine. Considering the technical approach and $0.00
/kWh price offering NEO’s proposal was the highest rated and deemed the most
advantageous proposal offered for the Bundle-1 project.
(E) A description of any bid protest related to the award of the contract, including
whether the protest was resolved through litigation, withdrawal of the protest by the
protestor, or voluntary corrective action by the District. Include the identity of the
Department of General Services 2000 14th Street, NW, Washington D.C. 20009
Council Summary - DCAM-21-NC-RFQ-0001E PPA-23-01
Bundle 1, Power Purchase Agreement
Page 5 of 8
protestor, the grounds alleged in the protest, and any deficiencies identified by the
District as a result of the protest:
The award of the Contract was not protested.
(F) The background and qualifications of the proposed contractor, including its
organization, financial stability, personnel, and performance on past or current
government or private sector contracts with requirements similar to those of the
proposed contract:
NEO, LLC is a District CBE/SBE minority-owned solar developer with an experienced
team of project managers, and finance, engineering, and construction subject matter
experts. NEO has an extensive track record in the District of Columbia, supporting the
District’s agencies and private developers. The team has developed, financed, and
completed over 100 solar development projects in the District ranging from 300 KW to
2,600 KW, including commercial, industrial, and municipal projects (e.g., DC Housing
Authority, DOEE, DCSEU, DGS, the NHP Foundation and other private developers). NEO
has financed over 20 MW of solar projects under PPA across the USA and the Caribbean.
Henry Neoman, NEO’s founder and CEO, is an architect with extensive experience in
Building-integrated Photovoltaic (BIPV) solar developments and net-zero energy projects.
The Contractor has been determined responsible in accordance with 27 DCMR 4706.1.
(G) A summary of the subcontracting plan required under section 2346 of the Small,
Local, and Disadvantaged Business Enterprise Development and Assistance Act of
2005, as amended, D.C. Official Code § 2-218.01 et seq. (“Act”), including a
certification that the subcontracting plan meets the minimum requirements of the Act
and the dollar volume of the portion of the contract to be subcontracted, expressed
both in total dollars and as a percentage of the total contract amount:
The Contractor is a certified small business enterprise that will self-perform the services
contemplated by the Contract, thus no subcontracting plan is required pursuant to the Act.
(H) Performance standards and the expected outcome of the proposed contract:
In general, the System Owner and or PPA Contractor shall provide, at no upfront cost to
the District, turn-key PV System development, including design, permitting, construction,
interconnection, operation, maintenance, and power purchase agreement administration for
Bundle-1 [(i) Banneker High School, (ii) John Lewis Elementary School and (iii) Takoma
Aquatic Center, identified hereafter as Bundle 1] for the full 20-year term of the PPA. The
Contractor will have the option to retain all of the Solar Renewable Energy Credits
(SRECs) that are generated from these projects. Pursuant to the terms and conditions of the
applicable PPA, the District will purchase electricity generated by the PV systems once
they become commercially operational. Ultimately, the Department’s goal is to both reduce
its energy consumption from fossil fuel sources and to lower its energy costs.
Department of General Services 2000 14th Street, NW, Washington D.C. 20009
Council Summary - DCAM-21-NC-RFQ-0001E PPA-23-01
Bundle 1, Power Purchase Agreement
Page 6 of 8
The projects contemplated under Bundle-1 involve pre-design engineering studies of the
sites, confirmation of the solar potential, and certain other pertinent technical details. The
System Owner will complete the final design and construct the systems while meeting the
requirements of the District. The System Owner shall be required to provide all of the labor,
supplies, materials, repairs, tools, vehicles, transportation, travel to and from work sites,
per diem, subcontractor cost, home office overhead, profit, insurance coverages and
provisions as stipulated in the PPA, and all else necessary to perform all work described
hereunder in accordance with applicable US Department of Labor Wage Determinations,
D.C. Living Wage increase and or Davis Bacon wage rates (where applicable to the
construction phase of the awarded projects).
(I) The amount and date of any expenditure of funds by the District pursuant to the
contract prior to its submission to the Council for approval:
The Department issued a letter Contract on November 21, 2022, to NEO, LLC with
compensation based solely on federal Solar Investment Tax Credit, as well as the Solar
Renewable Energy Credits (“SRECs”) produced by the solar energy systems. All solar
electricity price paid by the District for output shall be $0/kWh for the term of the 20-year
PPA and it is understood that the System Owner shall not be due any additional
compensation from the Department for design, pre-installation, construction, operation, or
maintenance services. Two modifications to the letter contract were issued extending the
period of performance through May 31, 2023, subject to the actual council approval date.
(J) A certification that the proposed contract is within the appropriated budget authority
for the agency for the fiscal year and is consistent with the financial plan and budget
adopted in accordance with D.C. Official Code §§ 47-392.01 and 47-392.02:
The electricity provided pursuant to the PPA will not increase the Department’s total
aggregate electricity purchase. The Department’s other electricity purchase arrangement
(namely, the Department’s Ag