Navy plans to award a sole-source energy contract (about $45 million) to Baltimore Gas and Electric for a combined heat and power plant, microgrid, and grid upgrades at Naval Support Activity Annapolis. Only that utility is considered qualified to bid.
The Naval Facilities Engineering Systems Command (NAVFAC) intends to award a Utility Energy Service Contract (UESC) to Baltimore Gas and Electric Company (BGE) for the design, construction, commissioning, and financing of a comprehensive energy resilience project at Naval Support Activity (NSA) Annapolis, Maryland. The proposed project, estimated at approximately $45 million, will include a Combined Heat and Power (CHP) cogeneration plant integrated with a microgrid to enhance installation energy resilience. Major project elements include: A CHP system supporting an estimated 19 MW peak electrical demand, including three natural gas-fired turbines and associated heat-recovery systems; An integrated microgrid control system capable of island-mode operation during utility grid outages; An absorption chiller at the Lejeune Chilled Water Plant (597U) utilizing recovered waste heat; Relocation and upgrade of the 13C-1 electrical substation; Required natural-gas infrastructure upgrades and electric-grid interconnection activities; An Investment Grade Audit (IGA), design, engineering, construction, testing, commissioning, and construction management; and Operator training and project turnover documentation. Basis for Intended Sole Source The Government intends to use other than full and open competition pursuant to 10 U.S.C. � 3204(a)(1) and FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. The proposed action will be implemented as a UESC pursuant to 10 U.S.C. � 2913(d). BGE is the franchised electric and natural-gas utility serving NSA Annapolis and owns and operates the affected utility distribution infrastructure. GSA Areawide Public Utility Contract No. 47PA0724D0003 provides for BGE electric, natural-gas, and energy-management services within its franchised service territory. The contemplated UESC requires integrated responsibility for natural-gas capacity upgrades, electric-system interconnection, grid coordination, and modifications affecting BGE-owned or controlled infrastructure. These functions are integral to the CHP, microgrid, and island-mode requirements. The Government issued a Sources Sought Notice on February 5, 2026, which closed on February 20, 2026. Five firms responded to the notice. Based on the Government�s market research, acquisition planning, and review of the responses received, Baltimore Gas and Electric Company (BGE) was determined to be the only responsible source capable of satisfying the Government�s requirements. BGE was the only respondent possessing the requisite utility-service authority, control of the affected infrastructure, and ability to execute or authorize the necessary utility-system modifications and interconnection activities required to perform the contemplated UESC. Submission of Capability Information This notice is not a request for competitive proposals. However, responsible sources that believe they possess the capability, legal authority, and…
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