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During phase 4 of the distributed energy project implementation process, agencies develop an acquisition plan, issue solicitation documents, and award a contract. The process used will depend on the selected procurement option. Below is general information that applies to most, if not all, procurement options. More specific information about is available for utility energy service contracts, energy savings performance contracts (ESPC), ESPC ENABLE, and ESPC energy sales agreements.

Step 1: Develop an Acquisition Plan

The Acquisition Plan includes strategies for planning, execution, and management of the acquisition. This plan outlines the specific actions necessary to execute the approved acquisition strategy. The team works with the contracting officer to develop the Acquisition Plan, including the project milestones.

The Acquisition Plan should describe small business requirements. Work with your agency’s Office of Small and Disadvantaged Business Utilization (or equivalent) to determine what steps (e.g. market research) and approvals are required. Other requirements, such as "buy American" may also apply and should be identified early in the process.

Find Resources
See tools and publications for planning and implementing distributed energy projects.

Step 2: Complete Required Solicitation Documents

The required solicitation documents will vary depending upon the procurement method selected. Most projects required a Source Selection Plan (SSP). An SSP ensures a thorough, fair, equitable, and unbiased proposal evaluation process. The SSP includes evaluation team members and responsibilities, lays out the evaluation process, and presents the evaluation criteria.

If using appropriations, funding must be available by this stage. In some cases, a request for proposal (RFP) will be required. In very limited cases a sole source contract may be approved. The RFP typically follows the federal government's uniform contract format, which is as follows:

Part I - The Schedule

  • A. Solicitation/contract form
  • B. Supplies or services and prices
  • C. Description/specifications
  • D. Packaging and marking
  • E. Inspection and acceptance
  • F. Deliveries or performance
  • G. Contract administration data
  • H. Special contract requirements

Part II - Contract Clauses

  • I. Contract clauses

Part III - List of Documents, Exhibits, and Other Attachments

  • J. List of documents, exhibits, and other attachments

Part IV - Representations and Instructions

  • K. Representations, certifications, and other statements of bidders
  • L. Instructions, conditions, and notices to bidders
  • M. Evaluation factors for award

The RFP should include the following information:

  • Results of the technical feasibility analysis
  • Site conditions
  • Agency management reviews
  • Agency goals
  • Authority(ies) that will be used
  • Clearly define project requirements
  • Submittal requirements including required pricing structure, evaluation criteria, operations and maintenance (O&M), and repair and replacement requirements.

Other RFP considerations include cyber security, site resilience, and end of contract options.

Scopes of work without adequate instruction are prone to change orders and renegotiation that cost both the federal government and the supplier time and money. The scope of work must also include all details, such as coordination meetings and correspondence. If it is not in the scope of work, the offerors may not include the associated costs in their bids.

Best practices for RFP development include:

  • Start with templates or examples (from the Federal Energy Management Program or other agencies)
  • Involve legal and contracting early on for high-level decisions
  • Engage the contracting officer as much as possible
  • Engage agency experts as needed
  • Solicit input from team members on evaluation criteria
  • Use working meetings for real-time document editing
  • Implement a document sharing and version control plan.

Step 3: Award a Contract

The federal government next awards a contract to the successful offeror. This contract establishes the cost and scope of the project.

Solicitation documents, such as an RFP establishes the type of contract. Two basic construction contract types exist: Design-Bid-Build and Design-Build. In a Design-Bid-Build contracting arrangement, the system is designed by an engineering firm before construction companies bid on the installation. In a Design-Build contract, the same firm designs and installs the system.

Before awarding a contract, the team reviews and scores proposals according to the selection criteria. Selection criteria often include capabilities and past performance. A track record and references of at least three successfully installed and operating projects is an excellent demonstration of past performance.

During the proposal evaluation and contract award selection, the project team:

  • Follows the source selection plan
  • Requests additional information or conducts negotiations if needed,
  • Makes the final selection
  • Obtains agency approvals (including Congressional notification if required).


Phase 3 of the distributed energy project implementation process focuses on feasibility studies and project validation. See Phase 3: Project Validation.

Phase 5 of distributed energy project implementation process focuses on the construction and project performance period. See Phase 5: Construction and Performance.

Key Resources

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Guide provides a framework for federal government, private developers, and financiers to coordinate on large-scale renewable energy projects.
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Details this project structure, which uses the multiyear ESPC authority to implement distributed energy projects.
Template provides example language for agencies assembling solicitations and contracts for privately-financed, on-site solar photovoltaic systems.
Guide for federal agencies in selecting and integrating renewable energy technologies within new construction or major renovation projects.