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What Works? What Doesn’t Work and Why?

Power Purchase AgreementsRobert Eidson, Lead Associate

Booz Allen Hamilton

15 January 2013

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Booz Allen Hamilton – supporting Army’s Energy Initiatives Task Force

What we’re doing to enhance the success of EITF’s renewable energy transactions?

Power Purchase Agreement (PPA) Template

Energy Initiatives Task Force UNCLASSIFIED 4

• Using the MATOC as a basis, this template draws on best practices from industry and other branches of the military

MATOC

Industry PPAs

Navy/AF/Army

PPAs

EITF PPA Template

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Power Purchase Agreement Template

Purpose Create a predictable, clear, repeatable PPA template for EITF use

regardless of the supporting acquisition activity

Army’s Objectives Create a user-friendly and informative product highlighting key

terms, conditions, and potential negotiating issues

Integrate standard commercial terms with FAR language

Provide a flexible structure adaptable to any technology-specific transaction

Highlight the parameters and risks relevant to a PPA transaction

Create an educational and instructional tool for PPA managers and contracting officials

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Expected Outcomes

Increased acquisition sophistication and transactional acumen throughout the Army acquisition team

Improved Army transactional credibility with private sector

Standardized EITF format and template for Army use

More efficient solicitation process between EITF and its acquisition activities

Enhanced EITF value proposition

Greater industry participation equates to better pricing and higher likelihood of program success

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Next Steps

Pending internal Army approval, solicit Industry feedback on EITF’s PPA template

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Thank You

Robert B. Eidson

Lead Associate

Booz Allen Hamilton

423-773-1496

eidson_robert@bah.com

Supporting Army’s EITF