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["ADMINISTRATIVE QUESTION AND ANSWER LOG"]
["DE-FOA-0003187 - Demand-side RFP for Independent Entity"]
["Question #","Date Submitted","Topic","Question","Answer"]
[1,"2023-09-12",null,"Can OCED provide clarity on how it envisions the market price for hydrogen would be determined in a contract for difference construct? If the index prices of other commodities are to be used as benchmarks, what would those commodities be, and why?","These questions will be worked through in the \"Concept Development\" phase that occurs after the independent entity is selected (Page 5 of RFP)."]
[2,"2023-09-12",null,"What is the anticipated process of selecting an independent entity to govern the demand-side mechanisms in each region? What will be the key evaluation factors (cost, experience)? Relatedly, is there a plan to prioritize the support mechanisms themselves over the process of establishing the governing independent entity?","Noting this question was submitted before the RFP was posted, the RFP posted to OCED Exchange should have all of the necessary information to answer this question."]
[3,"2023-09-12",null,"It appears that many market participants favor more than one type of support mechanism (i.e., reverse auctions, general RFPs, market making)—is it plausible that all such mechanisms could be adopted?","It is possible that more than one mechanism could be employed to support the H2Hubs (page 6 of the RFP)."]
[4,"2023-09-12",null,"According to OCED, most responses to the NOI were in favor of a single governing (national) entity rather than regional. Has OCED considered whether would create an imbalance of regional favoritism when combined with the regional advantages of LCOH, e.g. higher NCFs in Texas vs. WA state?","Respondents to this RFP will be evaluated on their ability to account for regional and market differences between Hydrogen Hub Awardees (elements 8 and 9 of the whitepaper outlined on page 7 and the \"Strength of proposal for demand-side mechanism\" evaluation criterion on page 8)."]
[5,"2023-09-18",null,"I notice that it is for non-profit entities. My company is for-profit but we are a data aggregator and have industry clients in clean hydrogen which gives us hard data on market dynamics. Although there is not a teaming partner list for this RFP, please let me know if there is a way we can support this effort.","While this RFP is specifically seeking \"non-government, U.S.-based, not-for-profit entity or entities\" for the primary selection, for-profit entities could be included in the \"partnering organization(s)\" outline on page 6 of the RFP. Furthermore, the concept development phase outlined on page 6 highlights the importance of extensive engagement and involvement with the private sector (including for-profit entities) to execute this program and further opportunities for for-profit involvement could arise in those phases"]
[6,"2023-09-19",null,"I am interested in applying for the grant listed under funding opportunity number DE-FOA-0003187, Demand-side RFP for Independent Entity.  Does the DOE have a mandatory, or preferred, application template that they use for submission of such requests?  Thank you in advance.","There is no explicit template for the concept paper beyond what is outlined in the RFP."]
[]
[{"$nulls":4},"\"Concept papers shall not exceed 20 pages, must be in PDF format, and should succinctly address the entity's ability to implement demand-side support.\" (RFP page 6)"]
[]
[{"$nulls":4},"Pages 6 and 7 outline all the necessary information that respondents should include"]
[7,"2023-09-26",null,"The FOA states that “The selected entity or entities could be a single national entity, several regional entities, or several entities responsible for different phases (e.g., design vs. execution).” Is it acceptable for an applicant to only address the portions of the requested work for which they are qualified in a response to the FOA?","Only entities that meet the eligibility requirements on page 1 can be selected for negotiation. However, the concept development phase outlined on page 6 highlights the importance of extensive engagement and involvement with the private sector to execute this program and further opportunities for involvement of additoinal organizations to join the selected entity to support portions of the requested work in this RFP could arise in those phases."]
[8,"2023-09-26",null,"Are National Laboratories considered to be eligible applicants? If not, are they eligible to participate on a team responding to this FOA? ","National Laboratories are not eligible to be the selected entity (refer to the \"eligible entities\" details on page 1 of the RFP), though they may be a partnering organization as outlined on page 6 of the RFP."]
[9,"2023-09-27",null,"For the Demand-side RFP Independent Entity project is this program only elligble for nonprofits and not private sector businesses?","While only eligible entities as outlined on pages 1 and 4 of the RFP ( \"independent (i.e., non-government), U.S.-based, not-for-profit entities\") can be selected as part of this RFP, DOE expects that teams of partnering organizations, including for-profits, will respond to this RFP. All participating team members or partner organizations should be listed in the concept paper, as outlined on Page 6 of the RFP. "]
[10,"2023-10-10",null,"In relation to the clause, “The selected entity (or entities) will be subject to conflict-of-interest requirements and will have no beneficial financial corporate or contractual relationship with the H2 Hubs recipients”; Could the bidding entity contract with specific individuals or sub-entitites of an entity that has a beneficial corporate interest in one or more hubs?  For example, ABC Co. established an entity, HubCo. HubCo is involved in two H2Hub coalitions and submitted a H2Hub grant application. HubCo will receive financial benefit if one of those hubs is selected by the DOE. Can the bidding entity for this RFP retain (1) specific individuals working in ABC Co. for services OR (2) a separate SPV entity created within ABC company for services?  ","DOE will evaluate potential conflicts of interest on a case by case basis. DOE anticipates a portion of in-person interviews and post-selection negotiations will involve protections against any actual or perceived conflicts of interest. "]
[11,"2023-10-10",null,"Is the full program funding over the 5+-year term classified as a grant or as a contract? ","The agreement DOE will negotiate with the selected entity or entities will likely be an Other Transaction Agreement pursuant to DOE's 42 U.S.C. 7256(a) or a Partnership Intermediary Agreement pursuant to 15 U.S.C. 3715. (Page 2 of the RFP)"]
[12,"2023-10-17",null,"How much of the $1B for H2 market demand will actually go to projects? Will some of this funding be used by the independent non-profit entity for overhead and administrative costs?","DOE intends for most of the funding to go to H2 Hubs support. DOE will consider all proposals.  The exact amount of funding for administrative costs are to be determined and will be negotiated."]
[13,"2023-10-23",null,"Is it possible to extend the RFP deadline by two weeks to continue to consider the opportunity? ","The deadline for this RFP has been extended by one week. Submissions are now due by 6p ET on November 2nd."]
[14,"2023-10-23",null,"The BAA notes that the proposer must be a not-for-profit entity.  Would DOE require or prefer that the non-for-profit entity also be a tax exempt entity under Section 501(c)(3) of the tax code?  Or is DOE taking no position on the merits of a 501(c)(3) organizational structure in its review of proposals?","For the purposes of review, the entity or proposed entity need only be a registered not-for-profit. As stated in the RFP, respondents may represent a not-yet-established entity as long as the proposed entity is formally established ahead of the Design Phase activities described in the RFP.  Organization status (e.g., 501(c)3) may be discussed during negotiations with any selected entity."]
[15,"2023-10-23",null,"If the proposer is a not-for-profit entity and not a 501(c)(3) organization, it would be subject to federal and state taxes on any net proceeds, including net proceeds created by any mismatch in the timing of revenues and expenses within a tax year.  If the proposer acts as pass through entity for DOE funding, the revenues received from DOE may be taxable based on final net income of the proposed organization.  Can DOE clarify how tax matters would be handled in such an arrangement and how a potential proposer should address taxation issues generally? ","For the purposes of this RFP, applicants do not need to address taxation issues. It may be a subject for discussion at any in-person interviews and during negotation with any selected entity."]
[16,"2023-10-23",null,"Due to the broad set of competencies required for the proposed entity to administer a new demand-side support program for clean hydrogen, the entity may need to be organized as a consortium that draws expertise from multiple organizations.  Could for-profit entities be permitted to participate in such a consortium?  If so, could they be permitted to earn a fee in addition to cost reimbursement?  Further, if so, would DOE require that the fee be subject to DOE review and approval?","Consortia or partnering organizations are allowed in response to this RFP (page 7 of RFP). As noted in the RFP, only not-for-profit entities may be selected to be the prime award recipient, but they can include other organizations, including for-profits as part of a consortium (page 1 of RFP). Details of potential fees to for-profit participants may be a subject for discussion at any in-person interviews and during negotiation with any selected entity."]