Rate Intervention and Utility Market Analysis

STATEMENT OF WORK for NAVFACSYSCOM Utility Rate Intervention and Utility Market Analysis I. Utility Rate Intervention (C.1 through C.9) C.1 DEFINITIONS The following acronyms or words shall have the corresponding meanings: NAVFACSYSCOM: Naval Facilities Engineering Systems Command, Headquarters FEA: Federal Executive Agencies COTR: Contracting Officer's Technical Representative SOW: Statement of Work T.O.: Task Order - A task order is a document (DD Form 1155) prepared by the Contracting Officer that is issued to the contractor and unilaterally orders work to be performed. C.2 INTRODUCTION a. The Department of the Navy, Naval Facilities Engineering Systems Command (NAVFACSYSCOM) purchases utility services (electricity, water and natural gas) more than $1 billion annually. NAVFACSYSCOM intervenes in the utility regulatory ratemaking process before various federal, state or local authorities. A major part of NAVFACSYSCOM mission is to protect the Navy's interests in utility cases, to supply technical support for Navy representation before regulatory bodies, and to participate in regulatory proceedings to ensure that the utility rates are reasonably close to the utility's cost of providing the service, that they are not unduly discriminatory, and that the rates are just and reasonable. Frequently, NAVFACSYSCOM encounters situations where its participation in the regulatory proceedings concerning utility rate applications is impeded because of manpower, time or specific technical limitations. On occasion, NAVFACSYSCOM contracts professional expertise in certain disciplines in support of its own capabilities. The area in which expert assistance may be required is Cost Allocation and Rate Design. b. Offerors must explicitly state how they can provide the required analysis, testimony, exhibits schedules and work papers or studies within a period not more than thirty calendar days from the date of receiving the assignment and pertinent original case data. Offerors should present in detail their technical and managerial plans for accomplishing such tasks in a timely manner. C.3 SCOPE OF WORK The following tasks are representative of work the contractor may be required to perform. Each task order (T.O.) will include a Statement of Work (SOW) which specifically identifies the requirements of each case. a. Review and analyze the utility's application including its filing, testimony, exhibits, and other rate case data, work papers, studies, and submit discovery questions, if necessary, as they relate to Cost Allocation and Rate Design. b. Prepare suggested cross-examination questions for all witnesses of adversary parties. c. Prepare testimony and attend hearings if the regulatory authority requires oral presentation of the testimony. If such is required, the Contractor's witness shall also provide case counsel with technical support. The witness will also be subject to cross-examination by any party to the proceedings. Testimony is to be presented on behalf of the Navy, DOD, and all other FEA's for consideration by the regulatory authority. d. Provide technical notes for the preparation of legal briefs. e. Analyze orders of the regulatory body and prepare a final report identifying the treatment of the issue presented by the Navy and its resultant cost reduction. C.4 GOVERNMENT FURNISHED PROPERTY None C.5 CONTRACTOR FURNISHED ITEMS The contractor shall provide all equipment, materials, and services to perform the requirements of this contract. C.6 STUDIES AND ANALYSIS REPORTS a. Certain utility issues may require a preliminary analysis report to be performed for a determination to be made as to whether there is a need for intervention or other Navy action. b. The Contractor may, on his own, identify potential issues that can be challenged in testimony, an estimate of the cost savings if the challenged issues are successfully litigated and a commentary regarding the likelihood of success in the challenge of each issue and bring them to the attention of the NAVFACSYSCOM without being solicited. c. The Contractor shall perform utility-related studies as may be required by the government. The deliverable item shall be a report. C.7 ANALYSIS, DISCOVERY, TESTIMONY, CROSS-EXAMINATION, HEARINGS, BRIEFS AND ORDER EVALUATIONS a. DISCOVERY (1) The Contractor shall provide in writing, one copy each, to the COTR and the case counsel, simultaneously. All requests for data, documents and information to be served on the utility or other parties shall be provided within the time constraints established in the procedural order and paragraph C.8. (2) The Contractor shall avoid "canned" data requests as much as possible and shall restrict the requests to those that would assist in the preparation of the Navy's case. (3) The Contractor shall integrate responses to discovery requests in developing Navy's testimony and brief preparation. (4) The Contractor shall prepare proper responses to discovery requests served on the Navy. Two copies of the responses shall be provided to the COTR unless otherwise directed. b. TESTIMONY. The Contractor shall prepare and deliver testimony, exhibits and schedules, and, if required, surrebuttal testimony on issues within the scope of the contract. A draft of the prepared testimony shall be presented by the Contractor to the COTR for review, discussion, and modification where needed. The Contractor may be directed to submit a second draft, if necessary. When the COTR is satisfied with the testimony, the Contractor shall be instructed to proceed with the final version. No changes of any nature shall be made to the testimony after the COTR approval without his express authorization. Draft and final testimony shall be submitted in strict adherence to the dates as will be communicated to the Contractor. Final testimony shall be prepared in the format and in the number of copies as required by the regulatory authority and will be communicated to the Contractor. Information will be communicated by the NAVFACSYSCOM analysts via e-mail or telephone within the time constraints established in the procedural order and paragraph C.8. c. CROSS EXAMINATION. The Contractor shall prepare proposed cross-examination questions with anticipated answers based on the testimony, exhibits and schedules filed by witnesses to be examined. The prepared cross-examination questions shall identify the ultimate point to be developed because of a successful cross-examination, the detailed reasons for asking them, expected responses, and alternative and follow-up questions. Questions are not to be restricted only to those issues addressed in Navy's case. A copy of the proposed cross examination questions shall be submitted to the COTR and case counsel simultaneously. The Contractor shall be informed of the dates and places of examination of witnesses. The Contractor's attendance at the cross-examination hearings may or may not be required depending on the particulars of each rate case as will be communicated to the Contractor by NAVFACSYSCOM analysts via e-mail or telephonically within the time constraints established in the procedural order and paragraph C.8. d. HEARINGS. The Contractor's expert witnesses shall appear before the regulatory body to support their testimony. For this phase, the Contractor shall prepare a summary of the testimony to be delivered at the hearings. The summary shall be reduced to writing and forwarded to the COTR at least five working days prior to the delivery of the testimony on the witness stand. The summary may be waived if such is not the practice of the regulatory authority. The witnesses shall be available to present the testimony and undergo the examination by other parties or to attend Navy's cross-examination of its adversaries at the times and places set by the cognizant regulatory body. e. BRIEF PREPARATION. After the conclusion of the evidentiary hearings, the Contractor shall review the pertinent transcripts and provide technical notes for ...