25_05(1)_Water Rights Portfolio Audit_QA.pdf

WA State Department of Natural Resources Amendment Number 1 to DNR RFP 25-05

Water Portfolio Audit Questions & Answers

DNR RFP 25-05 Page 1 of 8 Date: 9/3/24

Q1: Is this a continuation of an existing program or a new effort? And if it is a continuation of a prior effort, who are the incumbent(s) for that work?

A1: This is an existing program within DNR. DNR has been actively managing its water resources since around 2011. DNR recently received a very high-level analysis of its water resources program which highlighted the need for a water portfolio audit to improve management.

Q2: The “estimated time-period for contract” is listed as December 15, 2024 to December 14, 2025. To ensure DNR receives consistent bids, should all bidders include pricing for 1 full year of services?

A2: Yes. The RFP Section 1.4, Period of Performance allows a one-year timeline to complete the scope of work. The Agency reserves the right to extend the contract for up to two additional one-year periods at the sole discretion of the Agency. Bidders may include a revised timeline based on their proposal which could include 2 additional 1-year periods.

Q3: Can you provide information on how the Department currently manages its water rights portfolio and in general what management improvements the Department has considered?

A3: DNR manages our water rights portfolio through leases, verifying water usage and compliance with water right requirements. A majority of the water rights not directly used on an agriculture or special use lease are not actively managed or monitored. We need an audit aim to capture all DNR owned water rights.

Q4: What is the current state of DNR’s statewide water rights portfolio? Have previous analyses or audits been done? If so, please provide details on the scope of those analyses and how recently those analyses were done.

A4: DNR’s portfolio is partially managed, mostly through agriculture leases using our water rights. Many DNR owned water rights, specifically claims, need to be identified or evaluated for validity. A previous surface level audit was completed by Aspect Consulting in 2023, as part of the Drought Mitigation via the budget proviso through the legislative processes. They looked at DNR’s water rights that were easily identifiable and assessed the approximate acre feet, purpose of use, and the likelihood of risk due to

DNR RFP 25-05 Page 2 of 8 drought or curtailment. Though this assessment was helpful starting place, it did not encompass DNR’s water right claims for extent and validity or water rights in other entities names.

Q5: Please provide details on systems or databases that exist to currently track DNR’s portfolio, and how frequently those are maintained or updated. Will documents and databases related to previous efforts be available to the successful bidder?

A5: DNR currently does not have a complete system or database to manage or track its water rights. Some water rights are identified on DNR’s internal GIS database, but there are significant gaps in information. DNR also uses Ecology’s database for water rights, but that database is also incomplete.

Q6: Beyond the needs of the agency’s Water Resources Program, are there any regulatory needs/obligations to be addressed by this project?

A6: No.

Q7: Has the agency outlined its criteria for success? If so, can you provide that?

A7: No, however, the goal of the portfolio audit is to compile accurate information on all DNR’s water rights so we can make better strategic and long-term management decisions.

Q8: Are all the water rights held by DNR part of its Water Resources Program (WRP) or are there some rights not in the program? How many water rights does DNR have within the

WRP?

A8: DNR’s Water Resources Program manages all DNR’s water rights. DNR has about 3,000 water rights.

Q9: Are all the rights listed for DNR on Ecology’s Water Resources Tracking System (WRTS;

https://appswr.ecology.wa.gov/waterrighttrackingsystem/WaterRights/default.aspx) part of the Department’s Water Resources Program?

A9: Yes.

Q10: Does DNR have rights that they have acquired that are still listed under a previous water right holder and, therefore, not shown on WRTS as being owned by DNR? If so, can a list of these be provided to the successful bidder?

https://appswr.ecology.wa.gov/waterrighttrackingsystem/WaterRights/default.aspx

DNR RFP 25-05 Page 3 of 8

A10: Yes. There currently is not a list. Part of this request would be to create a comprehensive list of those water rights.

Q11: How many of DNR’s water rights have accurate and up to date information today? Is that information available to the successful bidder in an easily accessed format?

A11: DNR has approximately 2,000 water rights claims and very little information on their history.

Q12: How does DNR maintain water use records associated with its water rights today?

A12: DNR reports to the Department of Ecology water meter records that are required.

Copies of these records are maintained in DNR files which are specific to certain water rights. There is currently not a master spreadsheet.

Q13: What specifically does DNR require bidders to do to “locate” all Agency water rights?

A13: The expectation is that the bidder would use a combination of DNR records and GIS database information as well as Department of Ecology database information to identify all DNR owned water rights, then update GIS layers.

Q14: What specifically does DNR require bidders to do to “evaluate” all Agency water rights?

A14: DNR needs all water right claims evaluated for extent and validity. This will include a comprehensive review of the claim history, then site visits on those claims that are deemed likely valid.

Q15: As part of the locate and evaluate task, is there an intent to perform any technical evaluation of the extent and validity of any of the rights? If so, will the evaluations be for all rights, some specific set of rights, a randomized percentage of rights, etc.?

A15: DNR needs all water rights claims evaluated for extent and validity, with the option for some certificates/ permits to be included based on availability of time and resources.

The priority is the water right claims.

Q16: As part of the audit, is the Department expecting any field inspection of water rights? If so, will the field inspections be for all rights, some specific set of rights, a randomized percentage of rights, etc.?

A16: Field investigations will be needed for the water right claims that appear to be valid after completion of desk review.

DNR RFP 25-05 Page 4 of 8

Q17: DNR has requested a “written report” for each of the 1.2 Scope tasks. Are those reports the only deliverables required in this effort? If not, what other deliverables are expected?

A17: In addition to the tasks in the 1.2 Scope, DNR would expect all Agency owned water rights to be added to the current GIS database, this would fall under database management. This would include claims found to be valid, to create a completed map and record of DNR owned water rights.

Q18: If another expected deliverable is a listing and/or mapping of all water rights, what is the preferred deliverable format for that (a GIS database? Spreadsheet? Something else?)

A18: GIS database is preferred.

Q19: Does DNR expect bidders to update water rights information in Ecology’s existing WRTS or is this effort separate from that system?

A19: No, not in this solicitation.

Q20: If separate from Ecology’s WRTS, can the data from WRTS be used by the winning bidder to accelerate the scope for this project?

A20: Yes.

Q21: The map on Ecology’s WRTS site (https://appswr.ecology.wa.gov/waterrighttrackingsystem/WaterRights/Map/WaterRes ourcesExplorer.aspx?from=menu) says that “as of June 30, 2018 65% of the state’s active water rights (the GWIS representation) have been mapped.” What is the current percentage of DNR’s active water rights have been mapped either on WRTS or separately by DNR?

A21: The specific percentage other than that both systems are incomplete and not known.

Q22: As part of the “locate and evaluate” task, is the successful bidder to specifically locate and map points of withdrawal or diversion and places of use if these have not been previously mapped? If so, to what accuracy should the mapping occur?

A22: Yes, as accurate as possible.

https://appswr.ecology.wa.gov/waterrighttrackingsystem/WaterRights/Map/WaterResourcesExplorer.aspx?from=menu https://appswr.ecology.wa.gov/waterrighttrackingsystem/WaterRights/Map/WaterResourcesExplorer.aspx?from=menu

DNR RFP 25-05 Page 5 of 8

Q23: Section 1.2 bullet 2 asks bidders to provide “concepts” – does this mean the successful bidder only needs to provide recommendations in Year 1 and not actually implement any data management or reporting improvements?

A23: Section 1.2, Scope, DNR expects that the successful bidder implements data management through completion of the “locate and evaluate all Agency water rights” task. In addition, DNR expects recommendations on concepts that would improve DNR’s management and reporting on its water rights moving forward.

Q24: Section 1.2 bullet 3 asks bidders to provide “strategies” – does this mean the successful bidder only needs to provide recommendations in Year 1 and not actually implement any long-term asset management improvements?

A24: DNR expects to receive recommendations, based on completion of the evaluation of its water rights, on long-term strategic ideas or options that it could implement moving forward.

Q25: What are the agency’s climate resiliency goals?

A25: Here is a link to DNR’s Plan for Climate Resilience and related documents.

https://www.dnr.wa.gov/climate-change

Q26: Is the DNR aware of any of its rights that have been impacted by previous or current droughts? If so, how many and to what extent?

A26: DNR water rights have been impacted by drought, through curtailments issued by Department of Ecology and many areas that rely on groundwater are declining throughout the state. DNR does not track each impact, however we have water rights in key areas known to be impacted by drought, including but not limited to the Yakima Basin, Odessa, and many more.

Q27: The final sub bullet in 1.2 Scope refers to “access points/places of use/withdrawals across the state and across multiple programs.” Please provide bidders with further information on these locations, uses, and programs so this can be addressed in our response.

A27: DNR water rights are used by many programs within the Agency, including timber for harvest activities and road watering. Though DNR has many water rights across the state for this purpose, the authorized points of diversion are not always in ideal https://www.dnr.wa.gov/climate-change

DNR RFP 25-05 Page 6 of 8 locations. DNR requests the contractor to review those water rights and recommend solutions for DNR’s timber ground that has limited access to those water rights/ points of diversions. This may be consolidation of diversions/ places of use or transfers where possible to increase access.

Q28: Do you anticipate needing a water rights attorney on the consultant team?

A28: No.

Q29: The scope provided in the RFP is rather short and non-detailed, necessitating the need to seek additional information through the pre-proposal question and answer process.

The time scheduled for providing a proposal is rather short, with only 6 working days after the pre-proposal answers are due from DNR. Will DNR please update the proposal due date to be 2 or 3 weeks after pre-proposal answers are provided so that bidders can appropriately tailor project approaches, work plans, schedules and costs based on the answers?

A29: This request for proposal (RFP) was posted in WEBS August 20, 2024 with proposals due from vendors September 16, 2024. DNR is willing to add one more week to the response time. A new amendment will be added to the solicitation, updating the new schedule to accommodate an additional one week for responses. Proposals are now due September 23, 2024.

Q30: In order to provide more consistent bids across bidders, please provide page limits for EXHIBIT B – MANAGEMENT PROPOSAL FORM and SECTION 3.3 TECHNICAL PROPOSAL.

A30: No adjustments in page limits are necessary.

Q31: The final paragraph notes “if this procurement is estimated to be less than $150,000.”

Does DNR expect this procurement to be less than $150,000 from December 2024 to December 2025?

A31: This procurement is not expected to be less than $150,000. If so, DNR will follow DES policy accordingly when evaluating bids.

Q32: The Department’s portfolio of water rights is extensive and analyzing the entire portfolio will be a lengthy process. Does the Department have an anticipated budget for this project?

DNR RFP 25-05 Page 7 of 8

A32: The dollar value associated with this solicitation is known. DNR is utilizing the solicitation process to guide that decision.

Q33: Can DNR please provide editable MS Word documents of the exhibits that bidders are required to submit?

A33: YES. The word versions of the posted documents will be added to WEBS for vendor use.

Q34: Aside from the key project personnel, is it required to identify shared services staff that will potentially work on the project (i.e. Project Coordinators*, Accounting, and Marketing)? If so, is it required to submit staff responsibilities & qualifications and resumes for these staff members?

*Project Coordinators: Supports the PMs and handle administrative tasks (i.e. internal project setups and assist in reviewing documents).

A34: No, only key personnel responsibilities & qualifications and resumes are needed.

Q35: Are NGO's eligible for this RFP? RCW 39-26-010(22) defines it as "Small business" means an in-state business, including a sole proprietorship, corporation, partnership, or other legal entity”. For reference, Ecology Water Transaction Consultant Pool RFP, both private and NGO-sector were awarded (Aspect, AMP, Washington Water Trust and Trout Unlimited. Also, would we qualify as a small business?

A35: All vendors are encouraged to respond to this solicitation regardless of their business status. For this solicitation, points preference will be given to those who qualify as outlined in Section 4.6.

Q36: Is RFP limited to $150K?

A36: No, there was no specific budget amount listed in the RFP.

Q37: If the work is determined to be greater than that ($150,000), may a bid exceed this number?

A37: The solicitation does not require bids to limited to $150,000.

Q38: Is this scope limited to appurtenant lands to water rights, or will we be asked to consider some of DNR’s lands not covered by water rights. Do you have a GIS layer of

DNR RFP 25-05 Page 8 of 8 water rights, or any existing records that would identify water rights not listed in the attached WRTS report that you could share?

A38: The scope is limited to DNR owned water rights, which are mostly on DNR lands with only a very few minor exceptions. The scope does not include DNR lands not already covered by water rights. We have a GIS layer of DNR owned water rights, however it is not complete and is part of the request of the portfolio audit that it will be completed. DNR does have some records of water rights that are not in WRTS, however the research on all DNR owned water rights will have to be pieced together from multiple sources as no comprehensive list exists.

Q39: Can you provide any references/publicly available material with regards to revenue generation requirements for DNR trust lands? It would be helpful to understand how to balance management recommendations for multiple goals of revenue generation, drought and climate change resiliency, aquatic species goals, and potential use of DNR water rights to mitigate domestic uses.

A39: Here is a link that succinctly identifies DNR’s trust mandate -https://www.dnr.wa.gov/trust-land-performance-initiative . The water resources program and the water rights within the program are considered an asset class within DNR and DNR manages them as it does all other assets. Here is a link to DNR’s climate resiliency policy document, https://www.dnr.wa.gov/climate-change.

https://www.dnr.wa.gov/trust-land-performance-initiative https://www.dnr.wa.gov/climate-change