U.S. Army plans to issue up to $5 billion in renewable energy contracts

The U.S. Army has announced plans to solicit and award multiple indefinite delivery, indefinite quantity (ID/IQ) contracts which will be used in awarding Power Purchase Agreement (PPA) task orders for up to an aggregate amount of $5 billion, with individual task orders expected to range from $50 million to $900 million each. The renewable or alternative energy projects, which will be financed, constructed, operated, and maintained by private contractors, are expected to be located on or near Army installations.

After researching the potential applicant pool, the Army plans to announce future solicitations for multiple contracts that will be awarded in 2013 to meet the Army’s green energy requirements. We expect that the future solicitations issued by the Army will reflect preferences for providers having the following characteristics:

  • Renewable energy project or technology providers who can deliver a standardized offering at multiple locations
  • Providers who can deliver projects that are largely self-contained, without extensive supply chain or fuel requirements
  • Providers with substantial existing relationships with the Army

Source: Ballard Spahr

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