rcm phase 3 request for expressions of interest€¦ · web viewa capitalised word or phrase that...

Request for Expressions of Interest -Reserve Capacity Mechanism effective 1 October 2017

Australian Energy Market Operator LimitedABN 94 072 010 327

Level 22, 530 Collins StreetMelbourne VIC 3000Tel: 03 9609 8000Fax: 03 9609 8080

Services: Reserve Capacity Mechanism project

AEMO Project Co-Ordinator: Name: Courtney RobertsEmail: [email protected] (for project related queries, and not for submission of Responses).

Closing Date: 3:00 pm (WST) 29 August 2016

Responses to be emailed to [email protected] by the Closing Date.

mailto:[email protected]

mailto:[email protected]

Request for Expressions of Interest

Table of Contents

SECTION A: INTRODUCTION......................................................................................................2SECTION B: CONDITIONS OF THE EOI PROCESS.........................................................................4SECTION C: SERVICES DESCRIPTION.........................................................................................9SECTION D: STRUCTURE AND CONTENT OF RESPONSE............................................................11

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SECTION A: INTRODUCTIONA.1 Background

Australian Energy Market Operator Limited (AEMO) is an independent organisation responsible for operating eastern, south-eastern and western energy markets and systems in accordance with the National Electricity Rules, Wholesale Electricity Market Rules, National Gas Rules and Gas Services Information Rules. Its functions include:

market and system operator of the National Electricity Market

market and system operator of the Wholesale Electricity Market

market and system operator of the Victorian Wholesale Gas Market

operator of the short term trading market (wholesale) for gas hubs in Sydney, Adelaide and Brisbane, and operator of the Wallumbilla gas supply hub (wholesale)

market operator of a number of retail gas markets in eastern and southern Australia

national transmission planning for electricity transmission networks.

With its broad national focus for the future, AEMO’s objectives are to promote efficient investment in and operation of Australia’s electricity and gas services for the long-term interests of consumers with respect to price, quality, safety, reliability and security of energy supply.

A.2 Request for Expressions of Interest

Amendments to the Wholesale Electricity Market Rules (Market Rules), gazetted on 31 May 2016, introduced a number of reforms to the Reserve Capacity Mechanism (RCM), with the majority of changes commencing on 1 October 2017.

This Request for Expressions of Interest (REOI) seeks proposals from prospective providers to produce new software described in Section C, to ensure that AEMO meets its regulatory obligations under the Market Rules by 1 October 2017.

A.3 Indicative timetable

This timetable is provided to give Recipients an indication of the anticipated timing for the procurement process.

Activity Date

Issue date for REOI 3 August 2016

Closing Date 29 August 2016

Expected date for completion of EOI evaluation 7 September 2016

Notify respondents of next steps 8 September 2016

A.4 Glossary

In this document:

a capitalised word or phrase that is not defined in this document, but which is defined in the Market Rules, has the same meaning as in the Market Rules

a capitalised word or phrase has the meaning set out opposite that word or phrase below.

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Addendum Any document issued by AEMO after the date of this REOI and labelled as an “Addendum” to this REOI; collectively known as “Addenda”.

AEMO Australian Energy Market Operator Limited ABN 94 072 010 327. References to AEMO include, where the context requires, AEMO’s employees, officers, contractors, consultants, advisers and other persons authorised to act for AEMO.

AEMO Project Manager

The person specified on the cover of this REOI.

Business Day A day other than Saturday, Sunday and any other day not taken to be a public holiday in Western Australia.

Closing Date The date specified on the cover of this REOI.

EMOP Electricity Market Operations and Processes.

EMR Electricity Market Review.

EOI Process The process commencing on the issuing of this REOI and concluding when AEMO has notified each Recipient whether or not it has been shortlisted, or upon the earlier termination of the process by AEMO.

IRCR Individual Reserve Capacity Requirement.

Market Rules Wholesale Electricity Market Rules.

RCM Reserve Capacity Mechanism.

Recipient A person in receipt of this REOI.

Request for EOI This document, including its schedules, attachments and appendices.

Response The document submitted by a Recipient to deliver the Services in response to this REOI.

Services The services described in Section C of this REOI.

WEM WA Wholesale Electricity Market.

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SECTION B: CONDITIONS OF THE EOI PROCESSB.1 Application of rules

Participation in the EOI Process is subject to compliance with the rules contained in this Section B (EOI Rules).

All persons (whether or not they submit a Response) who obtain or receive this REOI may only use it, and the information contained in it, in compliance with the EOI Rules.

All Recipients are deemed to accept the EOI Rules. The EOI Rules apply to:

this REOI and any other information given, received or made available in connection with this REOI, including any revisions or Addenda

the EOI Process any communications, including any presentations, meetings or negotiations, relating to this

REOI or the EOI Process.

In addition to any other remedies available to it under law or contract, any failure to comply with the EOI Rules will, in the absolute discretion of AEMO, entitle it to disqualify a Recipient from participation in the EOI Process.

B.2 Legal status

This REOI is not an offer. It is an invitation for persons to submit a Response only. This REOI must not be construed, interpreted or relied upon, whether expressly or impliedly, as an offer capable of acceptance by any person.

Neither this REOI (comprising this document, any schedules, attachments and Addenda), nor a Response submitted by a Recipient, has any contractual effect and does not create any contractual, promissory, restitutionary or other rights.

AEMO is under no obligation to complete the process outlined in this REOI or to proceed with the acquisition of any or all of the Services. AEMO may change the process or the description of the requirements outlined in this REOI by issuing an Addendum to Recipients.

B.3 Confidentiality

This REOI may contain confidential information about AEMO and its activities. It is provided solely to enable Recipients to submit Responses. Recipients are not permitted to disclose or to use any information contained in this REOI for any other purpose. Recipients must take all reasonable steps (both physically and electronically) to protect the confidentiality of this REOI and all communications relating to it, including the Recipient’s submission of a Response.

B.4 Intellectual property

Unless otherwise indicated in this REOI, AEMO owns such intellectual property rights as may exist in this REOI and any other documents provided to Recipients by or on behalf of AEMO in connection with the EOI Process. Recipients are permitted to use and copy this REOI for the sole purpose of submitting a Response.

B.5 Others to be bound

A Recipient must ensure that each employee, agent or contractor to whom it supplies this REOI, and any other documents issued in relation to the EOI Process, agrees to be bound by the EOI Rules.

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B.6 Continuing obligations

The obligations of a Recipient under these EOI Rules survive the termination or expiration of the EOI Process.

B.7 No warranty

Except to the extent required by law:

AEMO makes no warranties or representations about the accuracy, adequacy, currency or completeness of this REOI or any other information provided or made available to Recipients

AEMO is not liable in any way for any loss or damage of whatever kind (whether foreseeable or not) however arising (including by reason of negligence), incurred by any person in connection with this REOI or any other information provided by AEMO in relation to the Services.

B.8 Representations

No representation made by or on behalf of AEMO in relation to this REOI or its subject matter will be binding on AEMO unless that representation is expressly incorporated into any contract(s) ultimately entered into between AEMO and a Recipient.

Communications during the EOI Process

B.9 Requests for further information

If Recipients find any discrepancy, error, or have any doubt as to the meaning or completeness of this REOI, or require clarification on any aspect of it, they should notify the AEMO Project Manager in writing, not less than 10 days before the Closing Date. AEMO may issue an Addendum to all Recipients clarifying the discrepancy, error, doubt, or query (as the case may be) and may extend the Closing Date if AEMO considers it appropriate in all the circumstances.

AEMO is willing to meet with individual Recipients to clarify aspects of this REOI provided that: meetings are requested at least 10 days before the Closing Date any meetings are held at least 5 days before the Closing Date there can only be one meeting per Recipient Recipients accept that, after any meeting, AEMO may issue an Addendum to all Recipients if

issues raised at the meeting indicate a need to clarify any aspect of this REOI.

AEMO reserves the right not to respond to any question or request, irrespective of when it is received.

B.10 Conflict of interest

A Recipient must not, and must ensure that its employees, agents and contractors do not place themselves in a position that may or does give rise to an actual, potential or perceived conflict of interest between AEMO and the Recipient’s interests during the EOI Process. If an actual, potential or perceived conflict of interest arises, then the Recipient must promptly notify AEMO and take any steps that AEMO reasonably requires to address the conflict of interest.

B.11 Submitting a Response

A response must meet the following requirements:

The form of Response must follow the structure and include the information requirements in Section D.

If the Recipient cannot provide any of the required information, the Recipient must state this in the response, with reasons.

The person submitting the Response must be authorised to do so on behalf of the Recipient.

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The Response must be sent via email to [email protected] by 3:00 pm (WST) on the Closing Date.

AEMO may, at its absolute discretion, accept or exclude late or non-conforming Responses.

B.12 Recipients to perform own due diligence

By submitting a Response, a Recipient is taken to have: read and understood the requirements of this REOI; made all reasonable enquiries, investigations and assessment of available information relevant

to the risks, contingencies and other circumstances relating to the Services; and satisfied itself as to the correctness and sufficiency of its Response.

B.13 Responses commercial-in-confidence

AEMO will retain all Responses and may copy and distribute Responses for the purposes of evaluation. Responses will be treated as confidential and will not be disclosed outside AEMO unless it is:

required by law, or in the course of legal proceedings; requested by any regulatory or other government authority having jurisdiction over AEMO, or its

activities; or to AEMO’s external advisers, consultants or insurers.

B.14 Use of Responses

Upon submission, all Responses become the property of AEMO. Recipients will retain all intellectual property rights contained in the Response.

Each Recipient, by submission of their Response, is deemed to have licensed AEMO to reproduce the whole, or any portion, of their Response for the purposes of enabling AEMO to evaluate the Response and to define its requirements for the Services and the content of any future request for tender or other document describing or relating to the Services.

B.15 Withdrawal of Response

A Recipient who wishes to withdraw a Response must immediately notify AEMO of that fact. Upon receipt of such notification, AEMO will cease to consider that Response.

B.16 Status of Response

Each Response constitutes a proposal by the Recipient to AEMO to provide the Services required under, and otherwise to satisfy the requirements of, the Introduction (Section A of this REOI) and Services Description (Section C of this REOI).

B.17 No reimbursement of costs

AEMO will not be responsible for, and no Recipient is entitled to be reimbursed for, any expense or loss incurred in the preparation and submission of its Response or for any costs incurred in attending meetings with AEMO.

B.18 No publicity

Recipients must not make any public or media announcement about this REOI or the outcome of this REOI without AEMO’s prior written permission. AEMO, in its absolute discretion, may withhold permission or grant permission subject to conditions.

B.19 No anti-competitive conduct

Recipients must ensure that they (and their employees, agents and contractors) do not:

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(a) discuss this REOI with any other person they know has received this REOI or might reasonably be expected to have received it; or

(b) engage in any conduct that is designed to, or might have the effect of, lessening competition in the supply to AEMO of the Services.

Recipients who wish to engage in legitimate teaming or sub-contracting discussions with persons who might deliver the Services must obtain AEMO’s prior written approval.

Evaluation of Responses

B.20 Response evaluation

AEMO will assess Responses against the following evaluation criteria: proven ability and experience to deliver to the requirements listed in Section C (50%) relevant knowledge of energy markets (20%) proven experience in a regulated environment (10%) indicative resourcing profile, schedule and cost structure (20%).

A Response will not be deemed to be unsuccessful until such time as the Recipient is formally notified of that fact by AEMO.

Next steps

B.21 Options available to AEMO

After evaluation of all Responses, AEMO may, without limiting other options available to it, do any of the following:

prepare a shortlist of Recipients and invite tenders from those Recipients call for tenders from the market generally for the Services and/or any similar or related goods or

services enter into pre-contractual negotiations with one or more Recipients decide not to proceed further with the EOI Process or any other procurement process for the

Services commence a new process for calling for Responses on a similar or different basis to that

outlined in this REOI.

B.22 No obligation to call for tenders or enter into contract

Notwithstanding the outcome of any evaluation conducted in accordance with this Section B and without limiting any other rights AEMO may have, AEMO is under no obligation to shortlist any Recipients, call for tenders from or to enter into a contract with any shortlisted Recipient or any other person.

Irrespective of whether AEMO shortlists any Recipients, if AEMO decides not to call for tenders or enter into a contract in relation to any of the Services, AEMO may proceed with any alternative process.

B.23 No obligation to debrief

AEMO is under no obligation to debrief any Recipient as to AEMO’s evaluation of Responses, or give any reason for the acceptance or non-acceptance of any Response.

AEMO’s rights and governing law

B.24 AEMO’s rights

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Notwithstanding anything else in this REOI, and without limiting its rights at law or otherwise, AEMO reserves the right, in its absolute discretion at any time, to:

cease to proceed with or suspend the EOI Process alter the structure of, or vary or extend any time or date specified in, this REOI; require additional information or clarification from any Recipient or any other person or provide

additional information or clarification negotiate with any one or more Recipient and allow any Recipient to alter its Response call for new Responses accept any Response received after the Closing Date reject any Response that does not comply with the requirements of this REOI terminate the participation of any Recipient or any other person in the EOI Process.

B.25 Governing Law

This REOI and the EOI Process is governed by the laws applying in the State of Western Australia.

Each Recipient must comply with all relevant laws in preparing and lodging its Response and in taking part in the EOI Process.

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SECTION C: SERVICES DESCRIPTIONC.1 Need for Services

AEMO is seeking the services of a provider to deliver new software components that meet the requirements specified in Section C, to ensure AEMO remains compliant with its obligations under the Market Rules.

AEMO’s internal resources will be delivering a portion of software required for complete delivery of the obligations under the Reserve Capacity Mechanism, namely Individual Reserve Capacity Requirement (IRCR) and reserve capacity settlement. The Recipient will deliver software that will integrate with existing and new systems developed by AEMO.

Software supporting the new RCM rules needs to be operational by 1 October 2017. AEMO intends to provide this software in a market trial environment no later than 1 August 2017, and has a preference to complete technical delivery in advance of this date if possible.

C.2 Technical requirements The new software produced by the Recipient must meet the following requirements:

be delivered in C# version 6 and .NET framework 4.6

provide a JavaScript-driven user interface written in TypeScript/ES6

provide a comprehensive suite of secured RESTful web services that will be used directly as well as being driven by the user interface interactions

support automated build, test and deployment processes

integrate with AEMO’s continuous delivery infrastructure (Bamboo)

provide a suite of Cucumber/BDD tests to supplement AEMO’s software certification requirements

integrate with existing market systems; support must be provided to facilitate this

integrate with new software being produced within AEMO to perform IRCR calculation and RCM settlement; support must be provided to facilitate this

manage software code changes in Git.

C.3 Functional requirementsThe scope of the RCM software requirements covers all aspects of the RCM under the Market Rules that are in effect on 1 October 2017.

Areas in scope for this REOI are:

operational aspects of the RCM that relate to the application, assessment and assignment of Capacity Credits and obligations ahead of a Capacity Year

functions required to support the RCM certification processes

functions relating to the management of DSP facilities within a capacity year

functions relating to the ongoing operation of the RCM within a capacity year, including:

o Reserve Capacity Testing processes

o Non-Temperature Dependent Load assessment and determination

o Relevant Demand determination

functions that relate to the dispatch of DSP facilities.

Areas which are out of scope for this REOI relate to:

Individual Reserve Capacity Requirement (IRCR) calculation

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RCM Settlement calculations, which include:

o Reserve Capacity Refunds, including redistribution of refunds

o Reserve Capacity Obligation Quantity calculation

o Capacity Credit Payment

o DSP Capacity Credit Payment

o DSP Energy Payment

the Reserve Capacity Auction processes.

C.4 Non-functional requirements 1. Develop a software design in collaboration with and endorsed by AEMO

2. Collaborate closely with AEMO’s resources to ensure that solution delivery remains aligned

3. Deliver software to an acceptable level of quality, being:

o compliant with AEMO’s coding standards

o a minimum of 80% automated test coverage and full branch coverage

o supplemented by the Recipient’s functional testing as per discretion of the Recipient

o free of critical defects as measured by user acceptance testing

o pass all software certification tests as required under the Market Rules

o pass software integration testing

4. Software development processes are to be supplemented using AEMO’s JIRA software.

5. Software commits need to be traceable to JIRA items, and require peer review (as agreed by AEMO). AEMO reserves the right to periodically review committed work to assess software quality and alignment with standards.

C.5 Other requirements1. Define methodology to deliver the new software

2. Define integration strategy with existing software and with other RCM software components

3. Define the strategy for collaboration with AEMO or other vendors as required

4. State where the project team will be located; AEMO has a preference for development work to be in Perth, WA, either on-site at AEMO’s offices or with frequent on-site contact

5. State proposed team structure, technical capabilities and experience

6. State resourcing capabilities, including availability of supplementary resources (note that AEMO are seeking a complete solution, not just the provision of resources)

7. Provide an indicative schedule for delivery

8. Provide sufficient technical documentation to cover the software deliverables

9. Facilitate the technical handover to the market systems support team

10. Facilitate and support handover to the operational teams

11. State current insurance levels

12. Intellectual property for all software produced will be the property of AEMO.

SECTION D: STRUCTURE AND CONTENT OF RESPONSEReserve Capacity Mechanism effective 1 October 2017

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Recipients must supply the information set out below in this Section D. The Response must be a maximum of 15 pages in length; additional supporting information can be provided in appendices, e.g. resourcing capabilities can be supported by an appendix containing resumes.

Any assumptions made should be clearly stated in the Response. AEMO reserves the right to verify claims made in any Response. Any material misstatement of experience or capability is likely to result in exclusion from the EOI Process.

D.1 Overview1. Provide the following organisational information:

a. Name of company and ABN (entity that would enter into any contract for the Services if awarded)

b. Contact namec. Addressd. Telephone numbere. E-mail address

2. Provide a brief introduction to your organisation and approach, including:a. brief background of your organisation and the business unit (if applicable) that you propose

would be responsible for the provision of the Servicesb. your proposed approach in terms of service delivery with regards to use of third parties (if

applicable)c. a statement whether the provision of the proposed Services to AEMO may give rise to a

potential conflict of interest for your organisation, partners, third parties or any key personnel (in the form of Attachment 1).

D.2 Ability and experience relating to Section C requirementsDescribe in detail how your services meet the requirements for the Services, as specified in Section C, and meet or exceed applicable standards. Structure the response to address each of the requirements in order and cross referencing the sections within this REOI. Describe any additional services you may be able to provide that would be relevant to AEMO.

State your experience delivering services with requirements similar to those outlined in this REOI and provide detail on two specific customer cases of a services criticality.

D.3 Relevant knowledge of energy marketsProvide information demonstrating your knowledge of and experience with, energy markets.

D.4 Experience in a regulated environmentState your experience in a regulated environment, and relevance to the proposed Services.

D.5 Indicative resourcing profile, schedule and cost structureProvide indicative resourcing profile, schedule and cost structure. Confirm your ability to commence the provision of the Services within the timeframes identified in this REOI, or identify any contingencies, dependencies or extensions that apply.

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Dated this day of 2016

EXECUTED by [NAME OF RECIPIENT] by its duly appointed representative in the presence of:

)))

..............................................................……..Witness

..............................................................……..Name of witness (print)

..............................................................……..Signature of authorised representative

..............................................................……..Name of authorised representative (print)

..............................................................……..Position of authorised representative (print)

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ATTACHMENT 1 – CONFLICT OF INTEREST DECLARATION

PART A: CONFLICT DECLARATIONExcept as identified in Part B below, none of the personnel presently identified by [Name of Recipient] to work on

the provision of the Services to AEMO:

1. is, or has a close relative1 who is, a member, director, employee or contractor of AEMO

2. is, or has a close relative who is, a director, employee or contractor of a registered participant in a market

that AEMO operates or of any business likely to be affected by the Services

3. has, or has a close relative who has, a material financial interest in a registered participant in a market

that AEMO operates or in any business likely to be affected by the Services

4. has any other affiliation, position, engagement or interest that could reasonably be seen as a conflict of

interest with that person’s involvement in the provision of the Services.

Identified Conflicts:

Person Affected Nature of Conflict

PART B: HOW EACH CONFLICT IS TO BE ADDRESSED[The Recipient must outline how any conflicts of interest identified in Part A are to be addressed]

1 Spouse, de facto partner, parent, sibling or child.

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