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Work With Us - Open Solicitations - Commercial

Submit your commercial solutions to solve national security challenges with the help from DIU.

Family of Advanced Standard Batteries for Unmanned Systems - (FASTBAT-U)

Responses Due By

2025-01-09 23:59:59 US/Eastern Time

Problem Statement:

As the need for reliable energy storage technologies grows, the Department of Defense (DoD) faces complex supply chain challenges. Establishing access to robust sources of National Defense Authorization Act (NDAA) Sec 154 and 1260H-compliant batteries, and supporting the growth of domestic battery manufacturing capacity, is of critical importance to the Defense industrial base. 


Desired Solution Attributes:

The DoD seeks fully commercialized, rechargeable battery cells that meet the performance needs of small unmanned aerial systems (sUAS) to include Group 1 and 2, with diverse mission requirements.


The DoD seeks proven (TRL 7+, MRL 7+) solutions with recurring commercial revenue, transparent materials sourcing, and at minimum, a manufacturing pilot line and roadmap to onshore, friendshore, or scale domestic/Allied production in the 10s-100s of MWh/yr, relative to your company’s business plan.


The DoD is interested in aligning the baseline performance profile with commercial markets, whether UAS, power tools, e-mobility, or other verticals. Where there is a delta with non-military customer requirements (e.g. energy density or peak power), please specify. 


Energy Cell 

  • Gravimetric energy density: 290 Wh/kg
  • Nominal (continuous) discharge rate: 2C
  • Minimum pulse (30-60s) discharge rate: 5C
  • Minimum charge rate: 1C
  • Discharge temperature: Threshold (60% capacity retention at -20°C and operable to 55°C); Objective (60% capacity retention at -40°C and operable to 55°C)
  • Charge temperature: Threshold (15°C to 45°C); Objective (0°C to 45°C)
  • Cycle life (+1C/-3C): >300 cycles to 80% at 25°C
  • Initial internal resistance (10s 1C pulse DCIR at 30% SOC, 25°C): Threshold (<10 mOhms); Objective (<8 mOhms)
  • Temperature rise: <10°C cell surface temperature rise for continuous 2C discharge at 45°C ambient

Power Cell 

  • Specific energy density: 180 Wh/kg 
  • Minimum charge rate: 5C continuous, 10C pulse
  • Minimum discharge rate: 20C continuous, 30C+ pulse
  • Discharge temperature: -20°C to 90°C
  • Charge temperature: 0°C to 90°C
  • Cycle life: >50 cycles

Standardization

If submitting pouch cell solutions, propose standardization (e.g. dimensions, amperage, energy density, etc.) of no more than (2) cells based on your customers and markets best aligned to the sUAS performance baseline described above, and provide justification for your recommendations.


Safety

Describe relevant cell-level safety features (e.g. characteristics of cell chemistry, safety vent, non-flammable components, or other design features reducing thermal runaway occurrence when packaged). Submissions will provide proof of certification to UN38.3, IEC 62133, ANSI C18.5M or any other applicable industry certifications. 


Supply Chain

Contractor submissions should/shall detail the following:


  • Active Electrode Materials sourcing by country of origin, percentage of Bill of Materials.
  • Location of cell production facility/facilities specific to submitted cell solutions.
  • Technology license(s) required to produce cells submitted for consideration, and the name(s)/location(s) of the licensors of that technology.

Manufacturing and Commercial Considerations

Contractor submissions should/shall detail the following:


  • Production lines
    • Types of cells being produced
    • Level of automation, quality control, customizability of production line(s)
    • Throughput minimums to reach profitability, and maximum production capacity
  • Financing
    • Capitalization 
    • Supplier agreements
    • Offtake agreements
  • Localization/Scaling Plan
    • Onshoring or friend-shoring foreign production line to United States or its Allies with respect to batteries, and associated timeframe; or
    • Scaling US/Allied-based pilot line to automated production volume of 10-100 MWh/yr, and associated timeframe
  • Recurring revenues 
    • Current demand and markets (military and civilian uses)
    • Pricing of cells in $/kWh at current and projected volumes
  • Commercial risk assessment
    • Summary of cost drivers, e.g. for Bill of Materials, Manufacturing, Labor, or other costs.
    • How are these costs mitigated, e.g. with partners, increasing volumes, incorporating automation, etc.
    • Other commercial or regulatory risks, as applicable

FAQs

Question: Is DIU open to solution briefs whose technologies have not yet met the TRL/MRL levels that the AOI is seeking?

Answer: Preference will be given to submissions that meet the parameters stated in the AOI. 


Question: Would DIU fund 100% of capitalization to achieve localization or scaling plans, or is this a cost-share?

Answer: Dependent on the capitalization plans stated in your submission, DIU may or may not fund in total. We recommend scaling plans illustrate what capitalization is required to meet objective milestones.


Question: Will DIU fund both CapEx as well as NRE costs?

Answer: DIU is open to funding both capital expenditures (CapEx) and non-recurring engineering (NRE) costs; however, please note that this will be subject to negotiation of a final agreement. The extent of the funding provided will depend on the specifics of the solution and the overall project scope.


Question: Should solution briefs reflect both current capitalization as well as fundraising?

Answer: Yes, DIU aims to have a comprehensive understanding of current capitalization and fundraising to evaluate the solution brief.


Question: What are the potential use cases for the specified power cell?

Answer: The power cell may be used for sUAS that require high speeds such as kinetic interceptor systems. 


Question: What are company ownership requirements to work with DIU?

Answer: DIU follows section 1260H of the NDAA, as well as federal guidelines on Foreign Entities of Concern as defined in section 40207(a) of the Infrastructure Investment and Jobs Act (42 U.S.C. 18741(a)) and section 30D within the Inflation Reduction Act (IRA). For additional background, please see DOE Guidance on Foreign Entities of Concern 


Question: Would solution briefs seeking to scale production capacity outside the United States in an Allied nation be considered?

Answer: Yes

Eligibility Requirements

Preference will be given to submissions that present a compelling solution to the problem statement and have the potential to meet the performance requirements of multiple platforms. Companies invited to pitch will be given additional Amplifying Information.


Teaming arrangements involving non-traditional commercial entrepreneurs and manufacturing partners or defense system integrators with battery labs are encouraged or can be facilitated through this solicitation process. Teaming arrangements that incorporate cell manufacturing expertise are encouraged. 


This Area of Interest solicitation will be awarded in accordance with the Commercial Solutions Opening (CSO) process detailed within HQ0845-20-S-C001(DIU CSO), posted to SAM.gov on 13 January 2020, updated 02 October 2023. This document is available at https://sam.gov/opp/e00f6563e0c84a04adc0a36215663e15/view. 


Follow-on Production

Solution providers are advised that any prototype Other Transaction (OT) agreement awarded in response to this Area of Interest may result in the award of a follow-on production OT agreement or contract without the use of further competitive procedures. 


In accordance with 10 U.S.C. § 4022(f), and upon a determination that the prototype project, or portions thereof, for this transaction has been successfully completed, this competitively awarded prototype OT agreement may result in the award of a follow-on production OT agreement or contract without the use of competitive procedures.

Submit Your Solution

Forward Counter Unmanned Aircraft Systems Command and Control (FCUAS C2) System

Responses Due By

2024-12-23 23:59:59 US/Eastern Time

PROBLEM STATEMENT


The growing threat of adversarial unmanned aircraft systems (UAS) poses a significant global risk to critical infrastructure and force concentrations. Current command and control (C2) systems are not optimized to address the speed at which kill chain decisions (detect, track, identify/ assess, defeat) must occur to counter unmanned systems. As the UAS threat increases, a single operator conducting air defense operations may be overwhelmed. The threat challenges the observation, orient, decision, and act (OODA) process for human decision-makers defending against aerial threats. The rapid evolution of the threat means new sensors, capabilities and effectors are being developed, faster than they can be integrated into C2 systems.


PROPOSED SOLUTION



To counter this ever-increasing and adaptive threat, the DoD seeks a tactical edge based C2 system that enables a single operator to manage multiple targets and is capable of fire control providing the ability to rapidly adapt to counter swarms of unmanned systems along with other potential manned or unmanned system threats. The solution should reduce operator cognitive load and accelerate the decision process to conduct multiple simultaneous kinetic and/or non-kinetic engagements, be easy to operate and can quickly integrate additional data sources, capabilities, sensors, and effectors and be able to operate autonomously if needed.


Minimal viable solution for initial demonstration and test will integrate the Ku-band Radio Frequency Systems (KuRFs) radar, Coyote Effector, and LIDS (low, slow small unmanned aircraft integrated defeat system) and potentially other Product Manager C-sUAS systems.


Primary Attributes:


System

  • Operate solely on a laptop, tablet or other portable system as a single piece of hardware, with no external communication for additional processing power or services to support mobile and tactical operations
  • Utilize or ingest sensor data for detection, tracking, and identification/ characterization and be capable of automated creation of engagement plans and providing fire control for various systems to include effectors such as kinetic, directed energy (DE), and electronic warfare, and attack UAS (interceptors).
  • Support automated identification and classification of targets, weapons pairing, prosecution of target, and assisting the user with pairing the best sensor with the best effector option for threat(s).
  • Software shall be able to support a minimum of 2,000 tracks at 4Hz while maintaining minimal processing and communication latency (limited impact on hardware resources).
  • Support ability to conduct fratricide avoidance and airspace deconfliction.
  • Mitigates interference of electronic warfare systems.
  • Support track cueing and track forwarding. 

Interoperability and Connectivity

  • Support rapid integration of new sensors and effectors by 3rd parties, to support bringing new or emerging capabilities with little change to the software architecture. 
  • Operate on both classified and unclassified networks.
  • Communicate with other subsystems (i.e. sensors, effectors) using IP-formatted mesh-network radios in a modular open systems approach.
  • Interoperate with Forward Area Air Defense (FAAD) legacy or emerging fielded C2 systems that may be co-located or local to the protected area for the purpose of maintaining a shared air picture.
  • The C2/ Fire control solution must be capable of determining and displaying available missile systems (i.e. Coyote Block 2 or 3), kinetic systems (e.g. Land-based Phalanx Weapon System), electronic warfare systems, and directed energy systems, providing the operator with optimal weapon to target pairing.
  • Supports a single integrated air picture (SIAP) in which all sensors (local and external) feed a C2 air picture utilizing correlated tracks (MIL-STD-6016C correlation criteria).
  • Communicates with FAAD to maintain a shared air picture with other Program of Record systems (i.e., Maneuver - Short Range Air Defense (M-SHORAD) and Land Based Phalanx Weapon System (LPWS)).
  • Supports a master-client construct consisting of multiple operators, but one master.

Additional Information:

  • This prototype will require several field exercises and will include integrating with existing sensor and effector systems and executing a full kill chain in a live fire CUAS test event projected for the summer of 2025. 
  • Companies are expected to demonstrate their solution in an unclassified environment as part of the Commercial Solutions Opening. Companies are expected to be able to interface with a Government provided simulation tool, Correlated Defense System of Systems Simulation (CDS3) to demonstrate their solution in an unclassified environment as part of the Commercial Solutions Opening process.
  • The program currently uses a MILDEF RB14 laptop, there is a desire for the future solution to be able to operate on these computers.
  • Offerors must be eligible for a COMSEC account and demonstrate the ability to maintain National Information Security Program standards. Security requirements for any resultant contract will be a facility cleared to the Secret level with authorization to store COMSEC items and individuals with clearance eligibility to the Secret level. A sufficient number of individuals will require access to COMSEC. Potential solutions sought shall have full National Security Agency (NSA) approved Type-1 and Advanced Encryption Standard (AES) level encryption capability.
  • Companies are welcome to apply individually, however partnerships are recommended.
  • Preference will be given to submissions that present a comprehensive and compelling solution to the entire AOI. Submissions should identify whether the submitter will employ subcontractors and, if so, which companies for which capabilities. 
  • However, companies that have an innovative approach to specific aspects of the AOI are encouraged to submit. Such companies, if selected, may be asked to arrange a prime / subcontractor relationship with other submitters to ensure the delivery of an integrated solution. 

Teaming/Partnerships


The Government encourages teaming for responses to this Area of Interest. The government may seek to team companies with AI/ML solutions with companies that are integrators in the counter uncrewed systems technology space. Traditional defense contractors are reminded that under 10 USC 4022, that if you do not qualify as a non-traditional company that the government will seek either a one-third cost share in the prototyping effort or that significant work is being performed with a non-traditional partner.


Responsible AI (RAI)


All projects will be expected to comply with DIU's Responsible AI Guidelines and other DoD AI frameworks. Companies are encouraged to read the guidelines and develop a plan for implementation, which may be presented as part of the submission. Particularly relevant issues for this project include:


  • Transparency and explainability of AI-generated content and recommendations
  • Mitigation of potential biases in training data or model outputs
  • Approaches for human oversight and ability to override AI systems
  • Security and privacy protections for sensitive planning information
  • Ethical considerations around AI's role in consequential military decision-making

The Statement of Work will require that the guidelines are followed in order to be eligible for a letter of completion and transition.

FAQs

Please see DIU’s responses to questions about this Area of Interest. 


Question: What is the schedule for demonstrations and tests?

DIU Response: If selected, DIU requires prospective vendors to demonstrate and test their solution during the Phase 2 pitches. DIU will provide additional details on the demonstrations and tests during the Phase 2 notification process.


Question: How large are the track messages?

DIU Response: The typical length of a track message is 156 bytes per message. However, track messages may be as high as 300 bytes.


Eligibility Requirements

Awarding Instrument:


This Area of Interest solicitation will be awarded in accordance with the Commercial Solutions Opening (CSO) process detailed within HQ0845-20-S-C001 (DIU CSO), posted to SAM.gov on 23 March 2020. This document can be found at:

https://sam.gov/opp/e74c907a9220429d9ea995a4e9a2ede6/view


The Government requires cross functional collaboration/integration of technical outputs to ensure mission success. The Government intends to utilize this AOI in singularity, as well as a component of a more complex program, for which other AOI’s may be issued. Therefore, all solutions submitted in response to this AOI may be used to support other prototyping efforts advertised by DIU. All AOIs will be governed by Commercial Solutions Opening (CSO) HQ0845-20-S-C001 dated 23 March 2020.


Follow-on Production:


Companies are advised that any prototype Other Transaction (OT) agreement awarded in response to this Area of Interest may result in the award of a follow-on production contract or transaction without the use of further competitive procedures. The follow-on production contract or transaction will be available for use by one or more organizations in the Department of Defense and, as a result, the magnitude of the follow-on production contract or agreement could be significantly larger than that of the prototype OT. As such, any prototype OT will include the following statement relative to the potential for follow-on production: "In accordance with 10 U.S.C. 4022(f), and upon a determination that the prototype project for this transaction has been successfully completed, this competitively awarded prototype OTA may result in the award of a follow-on production contract or transaction without the use of competitive procedures."

Submit Your Solution

Finance First 2.0

Responses Due By

2025-01-09 23:59:59 US/Eastern Time

I. BACKGROUND

Problem Statement

Across the Department of Defense (DoD), military installations and facilities are being asked to deploy resilient and reliable energy systems more quickly and cost-effectively. Meeting these goals will require streamlined business processes and substantial third party capital investment. Partnering with commercial industry in new ways is imperative to leveraging best in class business processes as well as private industry dollars to help address resilience gaps at speed and scale.


Issues facing the the DoD include: 

  • Resilience Gaps: The DoD is facing a challenging landscape characterized by increasing demand for energy, gaps in installation resilience, new policy requirements, and threats from the environment as well as external malign actors.
  • Protracted Time to Completion: DoD project time to completion compares unfavorably with best-in-class industry processes. Industry innovation can accelerate DoD project completion timelines.
  • Antiquated Terms of Collaboration: DoD seeks to harness industry creativity and innovation. The Finance First initiative is focused on identifying new and different terms that can be leveraged with companies and financing entities to boost the speed and reduce the costs of a deployed solution.

Finance First is a process improvement initiative. Today, designing, constructing, and deploying resilient energy solutions, whether power generation, distribution, and/or storage, takes 5 to 10 years, versus best-in-class commercial projects that take only 2 to 3 years. Coinciding with that, most energy projects require too much up-front capital investment. Finance First is seeking industry solutions that will deliver completed projects in a timeline consistent with best-in-class commercial practices (2-3 years), and which will deliver electrons at an acceptable $/kwH with little or no up-front capital investment.


The DoD is seeking solutions that not only meet target installations' resilience needs but also align with our financial and operational goals. DIU recognizes the value of integrated approaches and are interested in proposals that bundle resilience enhancements/solutions with potential power generation projects. This bundled approach should encapsulate the cost of resilience measures within the framework of an acquisition authority (or new approach) of your choosing, offering a comprehensive solution that ensures long-term energy resilience. 


If bundling resilience projects together is proposed, your proposal should articulate how the bundling approach can deliver enhanced value, in terms of resilience, operations and maintenance, and financial viability, ensuring a mutually beneficial partnership. It should also detail what acquisition authorities the DAF and DoD could use (or develop) to acquire your proposed solution. 


For this effort, solution briefs presented in Phase II of the CSO process will leverage information provided by the government that details the resilience gaps that the vendors are being asked to bridge via their technical solutions. In those pitches, vendors will also be asked to include alternative financing structures and operational strategies to present a solution that addresses resilience gaps while providing a clear, cost-effective, and rapid pathway to achieving the government’s energy goals. Potential examples include requests for access to DoD land to reduce land acquisition costs, leveraging tax credits, and pursuing grants from other governmental organizations with the overarching goal of reducing the total cost of the project and ultimately, limiting the capital outlay from the DoD to as close to zero as possible. 


Vendors may be selected to provide solutions for additional installations across the federal government. Additionally, vendors who successfully meet the evaluation requirements of Phase I (as stated within the CSO), and who are invited to Phase II Pitches, may be requested to participate in further dialogue with the Government.


How Finance First is Different

Currently, the DAF’s and DoD’s solicitation process begins with a clear understanding of an installation’s resilience needs, which informs the range of project concepts that could close said installation’s resilience gaps. Subsequently, the DoD, through specific acquisition authorities (e.g., power purchase agreement (“PPA”), energy savings performance contract (“ESPC”), enhanced use lease (“EUL”), utility energy service contract (“UESC”) etc.), begins the solicitation process. The act of choosing an acquisition authority potentially limits the DoD to a narrower range of possible solutions (both material and financing) that might otherwise be possible if a project developer was given the opportunity to propose the acquisition authority and comprehensive project concept (including but not limited to potential new authorities requiring congressional action). 


Conversely, the Finance First initiative asks potential bidders to include a suggested acquisition authority or set of authorities (e.g., PPA, ESPC, EUL, UESC) along with their resiliency solutions. Recommendations to consider newly developed authorities will be entertained. By doing so, Finance First would allow the full suite of acquisition tools to be deployed in a fashion that will create a solution or set of solutions that optimally meet an installation’s resilience needs, as defined by the installation’s Installation Energy Plan (IEP) resilience score. Desired solutions will be comprehensive and resolve high priority mission resilience gaps provided by the DAF and DoD. 


II. DESIRED SOLUTION FEATURES

The Finance First prototype seeks partners (individually or with a consortium) who have a proven track record of rapid and innovative project delivery methods (inclusive of financing). Interested partners will be expected to provide innovative business processes, and energy generation and resilience solutions to close on-base resilience gaps. Interested project developers who can provide resilient energy solutions to DAF and other DoD installations should expect to:

  1. Work with the DAF and DoD to define the scope and structure of a project that addresses key resilience gaps within their project portfolio.
  2. Propose an accelerated project timeline that results in a “design to deployment” pace consistent with best-in-class private industry solutions.
  3. Develop innovative approaches to finance the capital investment associated with the build-out of a proposed design solution with the aim of delivering energy at the lowest possible cost/kwh.
  4. Communicate, based on mutual agreement of project scope, selection, structure, and acquisition pathway(s), reasonable financial, technical, commercial, and operational plans. (Note that innovation in terms of financing solutions and acquisition pathways that may involve statutory amendment are welcomed. SEE FOOTNOTE.)
  5. Communicate whether a consortium, joint-venture, or unique teaming need would be expected from the agreed upon project selection and solution.
  6. Communicate the commercial arrangements necessary for the project developer to provide cost savings to the DAF and DoD (e.g., expectation that excess power generation will be sold to the grid).

As stated earlier, the DAF and DoD encourages and seeks innovative solutions that not only meet our target installation’s resilience needs but also align with our financial and operational goals. The DAF and DoD recognize the value of integrated approaches, such as the bundling of resilience enhancements/solutions with potential power generation projects. These unique, integrated approaches should encapsulate the cost of resilience into a bankable project that is scoped, structured, and agreed upon in partnership with the DAF and DoD.


Submissions in response to this AOI must be comprehensive in their approach to solving the problem. 

Comprehensive solutions should be considered turn-key (i.e., financing, design, construction, long-term operations, and maintenance are included)


Prospective respondents are invited to set out their qualifications to undertake the project, demonstrating:

  • Technical capacity to carry out projects through alternative delivery methods (e.g., Design, Build, Finance, Operate, Maintain (DBFOM); Build, Own, Operate, Transfer (BOOT)).
  • Experience with bundling projects and financing the cost of those projects through unique project agreements (e.g., Standby Charge (SC) or Availability Payments (AP); Power Purchase Agreements (PPA)).
  • Experience of the personnel to be involved.
  • Experience and performance with similar projects.
  • Financial capacity to carry out a project greater than $50M USD. Please provide a letter of credit reflecting the financial capacity to finance projects at or above $50M USD.
  • Experience with respect to rapid design to deployment timelines.

FOOTNOTE:  Potential acquisition pathways may be executed under the following authorities and are subject to all relevant regulations: 40 USC 501; DFAR 241.205/PGI241.205; 10 U.S.C. 2913; 42 U.S.C. 8287; 10 U.S.C 2922a; 10 U.S.C. 2667. Vendors are expected to be familiar with those authorities and regulations associated with their proposed solutions. Plans should include expected agreements that the project would expect to have in place (e.g., Offtake Contract Agreement, Operations & Maintenance Agreement).

FAQs

Finance First Frequently Asked Questions (FAQs) 

Updated 12/16/2024

Questions 1-10 were previously answered via an email from the Office of Energy Assurance dated 4 December 2024 to registered attendees to the Office's information session held 2 December, 2024. The answers presented below differ from the 4 December email. The responses below should be considered final and replace the responses previously issued.


1. How is this different than current Department of the Air Force (DAF) efforts?

  • Changing the solicitation process for resilience: Currently, the DAF’s solicitation process begins by selecting a specific acquisition authority (e.g., power purchase agreement (“PPA”), energy savings performance contract (“ESPC”), enhanced use lease (“EUL”), utility energy service contract (“UESC”) etc.). The act of choosing an acquisition authority potentially limits the DoD to a narrower range of possible solutions (both material and financing) that might otherwise be possible if a project developer or vendor was given the opportunity to propose the acquisition authorities to use. Finance First is different because the contracted vendor will examine the installation resilience posture and propose both residence solutions and the acquisition pathways to execute the solutions. This approach, which is less prescriptive, allows vendors to propose a larger variety of bundled solutions to address DAF’s resiliency needs using the existing authorities available today.
  • Creating a new business process: Finance First aims to prototype a new business process that brings partners to the table early, before project conception to finance comprehensive, resilient, carbon-free energy solutions to help DAF meet its resilience requirements more rapidly and efficiently.
  • Iteratively collaborating: The CSO process will allow DoD to have an iterative conversation with industry experts to develop a comprehensive solution and scope of work to meet our stringent energy requirements. Unlike a FAR-based contract that requires us to enumerate a detailed requirement that the vendor needs to fulfill, under the prototype contract, we first start with a problem statement (e.g. “We need resilient, clean, cost-effective energy.”). Then we can collaborate with experts to define the art-of-the-possible using state-of-the-art technology.

2. Why are you doing this?

  • The current pace of deploying resilient energy systems is unacceptably slow and compares poorly to best-in-class experience in the private sector. By engaging the private sector early, we can more efficiently close resilience gaps and improve the installation’s resilience posture. 
  • In addition to our legal requirements to have resilient energy solutions at our installations, we have also identified thousands of energy resilience gaps across all our installations worldwide that will require a large expenditure of funds on infrastructure investments, and we need an approach that will allow for more efficient delivery. 

3. What are the benefits to the Air Force?

  • Comprehensive, installation-wide solutions for energy resilience and clean energy: Finance First will provides us the opportunity to iteratively create the broadest possible scope of work for resilient and cost-effective energy solutions that we can de-risk prior to executing a long-term, follow-on contract.
  • Efficiently address more gaps: Deployment of more efficient resilient solutions that address more installation gaps.

4. What are the benefits to the financier?

  • Opportunities for the follow-on production contract include:
    • Large-scale infrastructure investment opportunities: The Department of Defense and DAF are some of the largest energy consumers in the world and we have identified thousands of energy resilience gaps that require third-party financing. The scope of our gaps far exceeds our appropriated capital budget.
    • Solid long-term investment: The federal Government pays its energy commodity and energy services bills on time, and over time ensuring a solid rate of return on your investment.
    • Capture of federal tax incentives: The DAF’s core competency is focused on national security; we are not in the utility business. So, we prefer that third parties own, operate, and maintain energy assets at our installations. Third-party owned projects may also capture the lucrative federal tax incentives for projects located at our installations.

5. What do you mean by prototype?

  • DIU utilizes Other Transaction Agreements (OTA or Agreements) under the authority of 10 USC 4022 to partner with nontraditional and traditional defense contractors and non-profit research institutions to carry out prototype projects that are directly relevant to enhancing the mission effectiveness of military personnel and the supporting platforms, systems, components, or materials proposed to be acquired or developed by the DoD, or the improvement of platforms, systems, components, or materials in use by the armed forces. A Prototype Project can generally be described as a proof of concept, model, reverse engineering to address obsolescence, pilot, novel application of commercial technologies for defense purposes, agile development activity, creation, design, development, demonstration of technical or operational utility, or combinations of the foregoing. A process, including a business process, may be the subject of a prototype project. 

6. What technologies do you want to deploy? 

  • “Describe” rather than “Prescribe:” It is up to the selected vendor to recommend the right solutions and pathways to implement them. During this prototype, the DoD will describe their current resilience posture and resilience gaps rather than prescribe solutions. We are technology agnostic and want solutions that resolve the gaps described and improve the resilience posture. 
  • Attributes versus mandatory requirements: In contrast to typical government RFP’s, the solicitation is descriptive (what is the problem that needs to be solved) vs. prescriptive (means and processes for solving the problem). The solicitation will be purposefully broad to encourage a broad range of solutions. 

7. What projects do you want us to invest in?

  • See response above for Q6

8. What are your cybersecurity requirements?

  • This will be determined under the prototype. If your solution requires cyber-security protocols, one of the milestones under the prototype will be to conduct due diligence with the appropriate DoD and industry stakeholders to identify the necessary protocols and best practices for your solution that you would need to implement.

9. How much money is the Government investing?

  • Congress gave DAF approximately $3M in FY25: 
    • Funding could be used for the vendor’s commitment during prototype period to collaborate with the DAF and develop the project concept as well as document the new business process. This could include details of their resilient solution concepts as well as aligning those concepts with resilience gaps and mission requirements.
    • Funds may contribute to the prototype deliverables related to development and documentation of the new business process, in which the vendor partners with the DAF to examine gaps and propose financeable solutions.  
    • Regarding the long-term production contract: It is anticipated that following a successful prototype, the DAF would enter into a production contract with private industry that fulfills the concept and findings of the prototype. The production contract would be characterized by a long- term DAF commitment that pays over time for of the reliance solution with no upfront capital investment from DAF.

10. What are the terms and conditions for the prototype, follow-on contract?

  • 10 USC 4022: If the prototype is “successfully completed,” under 10 USC 4022, the federal government may award a sole-source, follow-on production contract or transaction to the prototype participants. 

11. Do you have consumption data for the Air Force - either by base or overall? 

  • Yes, we have Air Force consumption data at both the base and enterprise level. However, the consumption information available will not be provided until Phase II of the Commercial Solutions Opening. We anticipate providing consumption information, as it pertains specifically and solely to the installation where the prototype agreement will be performed. 

12. Where will the prototype agreement be performed?

  • At the present time, it’s anticipated that the prototype agreement will be performed at Joint Base Andrews(JBA). Other installations may be added at a later date. Further information on the prototype installation(s) will be provided to respondents that are selected to provide Phase II Pitches.

13. Will the slides and recordings be available after the webinar held on December 2, 2024? 

  • Yes. The slides were shared with webinar participants. If you would like a copy of the slides, please contact Michael Kahmann at DIU (mkahmann.ctr@diu.mil) and they will be provided to you.

14. How does the DoD view the integration of federal funding e.g. NDAA allocations like ERCIP or Division C funds) with state-level grants (e.g. Colorado’s Geothermal Energy Grant Program) in project financing?

  • Any funds that the vendor can obtain outside of the DAF, such as state-level grants or federal grants from other agencies, can be applied as allowed by law to the resilient energy solutions.
  • The DAF’s objective is to fund resilient energy solutions without using DAF capital or any other type of upfront capital outlay. The DAF will pay for these solutions through a payment over time, such as an off-take agreement. During the prototype period, the DAF is willing to investigate the use of various federal funding sources to finance the proposed solution in the most optimal way.
  • The DAF objective is to finance these resilient energy solutions at the lowest cost of capital to DAF as possible, as quickly as possible. 
  • To help achieve the above objectives, we encourage vendors to identify value in the “system” or “solution” (e.g., DAF land, site security, access to other customers, and collaborations with the nearby community), but the DAF will not provide federal funding as an up-front capital outlay.

15. Is the proposed energy generation asset outward facing to the civilian grid or strictly internal to the installations microgrid?

  • This will be for the selected vendor performing the prototype to propose based on their expertise, the solution under consideration, and the characteristics of the prototype installation. The Government will not dictate on this matter, but we do expect the vendor to capitalize their solution to provide the most value. 

16. If ultimately, we are using an existing contract authority, what part of the business process is innovative?

  •  This is a business process improvement initiative. It need not employ innovative (a) technology; or (b) financing structures. Please see answers to questions 1, 5, and 6 above for more detail on how the Government anticipates this innovative process will be executed and documented. 

17. Will the Government be providing real estate (land) at no cost, or will the Contractor have to factor in lease costs?

  • Any property provided by the Government (whether intangible, or real) for long-term use would be provided at fair market value. 

18. If the location has specific environmental or operational constraints, is your team able to help navigate those processes for development and deployment?

  • Yes, the Government will work to be helpful in these matters to the maximum extent practicable.

19. Will DIU/OEA provide the resilience “scoring” matrix?

  • We anticipate that in advance of Phase II Pitches, selected respondents will be provided information regarding the problem set, including but not limited to resilience gaps. 
  • A scoring matrix may be provided. It could include weighted categories such as correlation to an installation resilience narrative general impact if a resilience gap was addressed. 

20. Can we assume the Government will perform any required environmental due diligence?

  • Performance of required environmental work is the responsibility of the vendor.

21. Will there be a specific acreage or roof space at JBA?

  • Information available regarding acreage and/or roof space at prototype installations will be provided prior to the presentation of Phase II Pitches.

22. What is the amount of capital contribution from the Air Force? 

  • Congress gave DAF approximately $3M in FY25. See question #9 for more details.

23. Can you state the expected useful life of the asset?

  • The expected useful life of the asset depends on the type of asset proposed as part of the solution. 

24. What is the legal pathway for the prototype which allows the Government to sign a mutually acceptable contract?

  • See question 5.

25. In the project description, it mentioned that prospective respondents should demonstrate financial capacity to carry out a project greater than $50M USD and to provide a letter of credit reflecting the financial capacity to finance projects at or above $50M USD. Are we being asked to directly invest $50M into the project if it awarded to us?

  •  The term “letter of credit” as used in the Area of Interest solicitation does not pertain to a bank letter of credit. Rather, it pertains to credit information sufficient to allow the Government to make a reasonable determination that a $50M investment is within the financial means of the respondent. That information is not required in the response to the AOI but, rather, may be solicited from respondents during Phase II Pitches. The Government is asking for vendors to invest in these resilient energy projects. It is anticipated that projects that are sized to produce economies of scale may exceed $50M in capital investment. It is anticipated that this investment would be repaid (with an acceptable return on investment) via the financing structure used with the Government as a credit counterparty. (Note)

 26. In the CSO procedure it is stated that “Companies may submit multiple Solution Briefs in response to any single AOI if each submission represents a separate and distinct concept”. The firm has several commercial off the shelf solutions that could be applicable to different features of the desired solution. Based off this text, we would be able to submit two separate responses, correct?

  •  Correct. Multiple responses are allowed, subject to the proviso referenced in the CSO and stated above.

27. Separate from the AOI, the DAF published a document entitled “Finance First Industry Day Frequently Asked Questions (FAQs) Document, dated December 2, 2024.” In that DAF published document, which was sent via attachment to an email to webinar participants on December 4, 2024, FAQ 1, third bullet stated that the Government wants to partner directly with the finance/investment community, versus partnering with developers. There is additional language later in the DAF FAQ email that seems to both support and contradict this statement. For example, the email attachments FAQ 5, second bullet listed the first prototype deliverable as “a project concept with an engineering design.” The AOI Problem Statement as posted on the DIU website would seem to be geared to developers. In our experience, the right approach is as outlined in the Problem Statement of the AOI; most financial institutions rely on developers to flesh out project scope and perform their required due diligence efforts to include the development of the initial project pro forma. It would be most useful to proposers for the Government to clarify its intent.

  • The Government is looking to engage with industry on wholistic solutions to energy resilience gaps. Whether that engagement is primarily or initially with financiers or developers (or other parties) is not the Government’s concerns. We will not “prescribe” terms of engagement, nor will we prescribe technology or financial solutions. Rather, we intend to “describe” our energy resilience gaps, and ask industry, on a turnkey solution basis (that designs, constructs, finances, operates and maintains) to propose a rapid process that solves our problem(s) in an economic way.

28. Would a company that has an automated process for installing solar arrays more quickly and economically be a qualified respondent to the AOI? The requirements of the solicitation appear to call for holistic approaches to the entirety of the problem set, and not just one single facet. Furthermore, the qualifications appear to be in line with more established companies as opposed to start-ups. Is the foregoing an accurate assessment of what the solicitation is asking?

  • The Government seeks turnkey solutions and consequently will view holistic solutions more favorably than solutions that purport to solve less than the full range of challenges that go into designing, constructing, financing, operating, and maintaining resilient energy projects. Companies are permitted to arrange teaming arrangements– irrespective of stage of development – to work toward that objective by entering into “teaming” arrangements with other industry partners that possess complementary capabilities.

29. Our company is interested in the Finance First solicitation. Is hydrogen of potential interest? Do you have an approximate $/kwh rate you can share so we can determine if our technology is cost-competitive?

  • With respect to technology preferences, please see answer to question 6. With respect to $/kwh, this information will be provided in advance of Phase II Pitches.

30. The DAF industry day webinar slides state that “industry has communicated that [the DoD’s] processes do not allow them to move quickly and economically…” That implies DIU had discussions with industry. Might it also imply that someone in industry might have an inside track or path to award?

  • In an effort to both improve and to be sensitive to industry concerns, the DoD consistently engages in dialogue with industry about our processes. The referenced statement from the webinar deck simply acknowledges feedback received. No party has an advantage in this solicitation process. Submissions will be evaluated objectively and fairly, and in all cases consistent with the process outlined in the Commercial Solutions Opening (CSO) detailed within HQ0845-20-S-C001 (DIU CSO) and posted to SAM.gov.


Eligibility Requirements

Awarding Instrument

This solicitation will be awarded in accordance with the Commercial Solutions Opening (CSO) process detailed within HQ0845-20-S-C001 (DIU CSO), posted to SAM.gov on 13 Jan 2020, updated 02 Oct 2023. This document can be found here.  


Follow-on Production

Solution providers are advised that any prototype Other Transaction (OT) agreement awarded in response to this Area of Interest may result in the award of a follow-on production OT agreement or contract without the use of further competitive procedures. 


"In accordance with 10 U.S.C. § 4022(f), and upon a determination that the prototype project, or portions thereof, for this transaction has been successfully completed, this competitively awarded prototype OT agreement may result in the award of a follow-on production OT agreement or contract without the use of competitive procedures.”


This Area of Interest (AoI) pertains to military installation resilience, which includes supply of utility commodities such as water, natural gas, fuel, and electricity. The term “installation energy” which consists largely of energy sources used to heat, cool, and provide electrical power to facilities on Air Force and other DoD installations, is distinct from “operational energy” defined as the energy required for training, moving, and sustaining military forces and weapons platforms for military operations. With regards to the utility commodity of energy, this AoI pertains only to installation energy and not operational energy.

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