140L0622R0034_INDUSTRY_DAY_Q_A_2.pdf

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DOI/USDA Orphaned Well Plugging and Abandonment
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140L0622R0034
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This document contains questions and answers from an industry day held to discuss a forthcoming multiple award indefinite delivery indefinite quantity contract for orphan well plugging and abandonment services across regions managed by the Bureau of Land Management and the Departments of Interior and Agriculture. The government anticipates making awards of up to $150 million each to 4 to 6 vendors per region, with the potential for partial set asides for small businesses. Services will include downhole plugging and abandonment as well as potential future surface remediation work. Questions focused on the structure of awards, requirements for specific regions or states, small business eligibility, performance metrics, licensing, equipment needs, and environmental testing.

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Sources Sought Notice 140L0622R0034

Industry Day – Questions and Answers June 22, 2022

DOI/USDA Orphan Well Plugging & Abandonment

1. Q: n reclamation is the environmental assessment required; i.e. noxious weeds, seeding, sample?

A: The Government will want to know what the condition of the site is. After reclamation has been performed we will monitor for noxious weeds or other contamination issues. The government is contemplating two RFPs, one focused on downhole P&A aspects, which is the subject of this presentation (140L0622R0034). The second is focused more on surface remediation (140L0622R0035)

2. Q: Approximately how many awards are you anticipating for this solicitation?

A: Estimated at 4-6 per region, though this is subject to change as more information is made available.

3. Q: Will there be one award for each region, or multiple awards for each region?

A: The government is contemplating multiple awards for each region.

4. Q: The historical average cost to plug per well on the Ohio Orphan Well Program is about $100,000, determined by the total awarded bid prices of multi-well project packages. This does not include any extra costs like Methane measurements and ground water testing. At that rate, with the 250MM available for this federal program, only about 2,500 wells of the estimated 20,000 would get plugged. What is the expectation of the performance of this program?

A: The Federal Orphaned Well Program funded by the Bipartisan Infrastructure Law (BIL) will only be able to plug a portion of these wells.Additional funding may be appropriated in the future.

5. Q: Would you have to service the entire Region?? like Region 3?? could you just service the northern area? just a few states?? or single state?

A: At this point, the Government is intending for the entire region to be included in the IDIQ pools. Contractors not able to provide these services in the entire region are encouraged to pursue potential teaming and subcontracting opportunities. This approach, however, is subject to change, and vendors are encouraged to provide Government feedback on the proposed regions and feasibility to provide the required services.

6. Q: Ms Johnson had indicated in last week’s meeting that there would be an opportunity to change our information as submitted in the Industry Day Registration form. When and how can we do that and how long will we have to make changes?

A: Please contact pjohnson@blm.gov directly with your changes. The survey form does not support changes at this time.

7. Q: Has the presentation from last week been posted yet? I don't see it on SAM.

A: At this time, the materials from the Industry Day held on June 15, 2022 are available at the following link: SAM.gov.

8. Can you please elaborate on how the key labor rate pricing and dry equipment rates will be provided for use in the solicitation?

mailto:pjohnson@blm.gov https://sam.gov/opp/909d3eceb9854918885b6f2845925944/view

A: This will be finalized once the solicitation is issued. The non-construction key positions for pricing are likely to include Project Manager, Site Superintendent, and Administrative Support.

The dry equipment rates will exclude fuel costs and include key pieces of equipment.

9. Q: Is there an annual target for number of wells to be plugged?

A: The annual targets will fluctuate based on readiness to be plugged, which is dependent on NEPA clearances, design work and methane testing. The first batch of wells that has been approved includes 277 wells across all agencies.

10. Q: Are there planned PE licensing requirements per state or region for the well planning and/or P&A work?

A: PE licensing and/or other professional qualifications for the plugging and abandonment design are still being determined.

11. Q: If awarded work, would it be possible to work in a smaller pieve than the regions listed. For instance, we have full turn-key P&A in the San Juan Basin. 4 corners area.

A: Please see the answer the Question 5.

12. Q: What are the guidelines that validate someone as a small Business and/or what disqualifies one from this category?

A: SBA sets a size standard for each NAICS. The subject NAICS 213112 has a size standard of $41.5M in gross receipts annually. See Small business size standards (sba.gov). You can also reach out to your local Procurement Technical Assistance Center for assistance in making your small business determinations.

13. Q: With regard to the contract ceiling, does "$150M per award" refer to each contract, or does it refer to the contract pool in each region (e.g. 5 awardees in a region would compete for an aggregate of $150M)?

A: Each contract is anticipated to include a ceiling of $150M.

14. Q: Can a company bid for all Regions?

A: Yes, vendors may propose for multiple regions.

15. Q: Can you share how many attendees are on this call?

A: Approximately 114 attendees. A list of interested subcontractors will be provided in the SAM.gov posting.

16. Q: There is patented technology for downhole tools outside of the USA. Do the Downhole tools and supplies have to be made in the USA?

A: Yes, we do anticipate that there will be some Made in America requirements detailed in the solicitation. There is a waiver process, however, and the Government is open to feedback on equipment limitations inside the United States.

17. Q: Do you have guidance on groundwater contamination indicators?

A: There are some checklists and indicators currently under development internally. There may be additional groundwater investigative services needed under this vehicle depending on the findings.

18. Q: Are there any registrations required for geologist or engineers for plans and oversight?

https://www.sba.gov/partners/contracting-officials/small-business-procurement/small-business-size-standards https://www.aptac-us.org/

A: See answer to Question 10.

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