5 SOW_20210616.pdf

Attachment 1 to Solicitation No. FA520921R8000

Statement of Work for Liquefied Natural Gas Delivery at Misawa Air Base

16 Jun 2021

1. General Description of the Liquefied Natural Gas Requirements

The contractor shall provide all personnel, equipment, tools, materials, supervision, and services necessary to provide Liquefied Natural Gas (LNG) to the designated supply point at Misawa Air Base (Misawa AB). The designated supply point is located at LNG satellite truck off-loading station No.1 and No.2, see Attachment 2, Supply Point Drawing. The contractor shall deliver gas in accordance with Japanese High Pressure Gas Safety Act (Act No. 204 of June 7, 1951) and all other relevant laws.

1.1 Required Quality/Volume at the LNG Storage Tank in LNG Satellite Station:

Contractor shall ensure LNG is provided to LNG Satellite Station at the following quality:

Composition: Methane (CH4) - More than 80%

It is estimated that the following natural gas volumes will be required (see Table 1 in the Appendix A for expected monthly demand):

Annual Standard Consumption See Appendix A

Annual Order Amount: 80%~110% to the Annual Standard Consumption

Minimum order amount for each year: 80% of the Annual Standard Consumption

Maximum order amount for each year: 110% of the Annual Standard Consumption

Contractor shall provide LNG composition data to the LNG plant foreman once a month.

1.2 Required Technical Submittals

The contractor shall provide the following technical submittals at the time of submission of an offer and one year after award: Truck Delivery Plan, and Point of Contact (POC) List.

1.2.1 Truck Delivery Plan

At a minimum, the Contractor shall have the ability to make daily deliveries to ensure the constant operation of the LNG plant. The contractor shall ensure that deliveries can be made within accordance of the delivery order. To accommodate the receiving bay, trucks shall be 15.7 tonnes or less.

The contractor shall submit a truck delivery plan in accordance with NFPA 59A, ISO 12991, or the Japanese High Pressure Gas Safety Act, and get 35th Civil Engineer Squadron (CES) written approval. The truck delivery plan includes the following items:

1. Specifications of transport truck (A pressurizing evaporator device shall be equipped to a truck.)

2. Copy of vehicle verification

3. Delivery route from off post LNG plant to Misawa Air Base.

4. Approximate delivery time

5. Items of safety check before unloading

6. Unloading operating time

7. LNG composition data certificate (Submission: Every month after

LNG supply starts in addition to “at the time of award and one year after award.”)

1.2.2 POC List

No later than the first day of performance, after contract award, the contractor shall provide the Contracting Officer (CO) and the Contracting Officer’s Representative (COR) with the POC list, so that 35 CES can contact the Contractor POC in case of emergency, including but not limited to gas or gas stoppage. The contractor shall provide an updated list to the CO and the COR no later than the date with the POC list change takes effect during the contract term.

1.3 Scope of Delivery

1.3.1 Delivery Timing

All work shall be performed during normal work hours of 0600 to 1400 hours, Monday through Saturday, however Misawa AB will accommodate truck delivery outside of the normal work hours and coordinate through the Security Forces Squadron. Misawa AB is closed on all United States Federal Holidays and during Japanese Holidays. If the contractor desires to work outside normal working hours listed above, they must request the date and time five days in advance. Requests received 24 hours in advance will be considered but not guaranteed.

The contractor shall access APPLE gate, go through security check and take route toward FALCON DRIVE. Crossover TANK FARM No.2 & NCO Club, take FRIENDSHIP BLVD and arrive at LNG satellite station.

After LNG has been offloaded, leave Main gate, see Attachment 3, Driving Route

1.3.2 Delivery Requirements

The quantity of LNG by truckload sold by contractor to MAB shall be determined by the difference in metric tons of the weight of the truck measured before and after loading LNG.

The contractor shall certify scales at the LNG terminal every 2 years, and provide the most recent certification of the scales to MAB. Should the contractor become aware of an abnormality in the scale due to a malfunction or other cause, the contractor shall promptly notify MAB

COR.

1.3.3 Delivery Exceptions

MAB is responsible for snow removal that allows lorry trucks access to the Base. Due to the irregular nature of the speedbumps installed at Apple Gate, snow removal by MAB at the gate will be critical to avoid damage to the delivery trucks. MAB is responsible for snow removal to allow LNG lorry trucks unobstructed access to the LNG Plant once on Base.

1.4 Responsibilities

Responsibilities of the LNG truck unloading process are assigned as follows:

Check status of LNG storage tanks (Misawa Air Base (MAB) Operator) Stop the lorry securely (LNG lorry driver), perform a safety check, pipeline check and slip check (MAB Operator) Connect the flexible hose to the lorry (LNG lorry driver) Replace air inside of the flexible hose with Nitrogen, check for airtightness (MAB

Operator) Pressurize the lorry evaporator (LNG lorry driver) Confirm pressure rise of lorry and start receiving LNG (LNG lorry driver) Depressurize the LNG lorry as needed (LNG lorry driver) Replace gas inside of flex hose with nitrogen (MAB Operator) Remove flex hose (LNG lorry driver) Exit the satellite unloading station (LNG lorry driver) As a general rule, the responsibility demarcation point of the Contractor shall be the connection flange on the LNG lorry side. The Contractor shall be responsible for each operation within the scope of responsibilities.

1.5 Miscellaneous Requirements

Government representative(s) shall be present at the time of gas supply.

1.6 Annual Order

During the contract period, an Annual Order will be issued each year within the range of 80~ 110% to the Annual Standard Consumption in para 1.1 to inform the Contractor of the annual order amount, estimate monthly order amount, and minimum order amount for the year. In case the Annual Estimate Order is going to exceed 110% to the Standard Annual Consumption, mutual consultation is required in advance.

1.7 Technical Agreement

A memorandum of understanding (MOU) will be issued separately for operations, e.g.

issuance of monthly/weekly schedule/orders.

1.8 Order of Precedence

In the event of any inconsistency between the terms of the contract (including the specifications) and any rate schedule, rider, or exhibit incorporated in this contract by reference or otherwise, the terms of the contract shall prevail.

1.9 Government Furnished Property: None

1.10 Post Award Conference:

The contract guarantees a minimum amount of Y50,000 for the life of the contract. Upon award of the contract, a delivery order for the guaranteed minimum amount of Y50,000 will be placed to the Contractor as a record of obligation. This guarantee will be met by the Contractor’s attendance and participation in a Post-award Conference at MAB. The conference shall provide a contract overview covering program requirements and procedures. Attendance is mandatory. The Contractor shall determine which member(s) of their team will attend. Key team members that are involved with program/project management, quality control, and superintendence are encouraged to attend. The Government will not be liable for any costs that the Contractor incurs that exceed the delivery order amount for attendance at this conference.

Reference: Guaranteed Minimum Amount and Minimum Order Amount. The guaranteed minimum amount is to obligate the Government funding at the time of contract award via the first order. Minimum order amount is the guaranteed order amount for each year after the LNG supply started in accordance with the LNG commercial practice.

2. LNG Cost

2.1. Rates and Charges of Service

In accordance with Article VII of the Treaty of Mutual Cooperation and Security Between the United States of America and Japan, Regarding Facilities and Areas and Status of United States Armed Forces in Japan (SOFA), the rates and charges of natural gas under this contract shall be no less favorable than those that may be applicable from time to time to the ministries and agencies of the Government of Japan.

2.2. LNG Price Calculation

LNG Price = Unit Price + LNG Import CIF (Cost, Insurance, and Freight) Price

2.3. LNG Import Cost, Insurance, and Freight (CIF) Price

The unit price shall be adjusted on a monthly basis by adding the LNG import CIF. CIF price shall be the imported (import to Japan) LNG price based on the data extracted from Trade Statistics of Japan of Ministry of Finance. The statistics commodity code is 2711.11, Liquefied Natural Gas.

2.4. Charges

If the certain price factors are in excess or below the specified amount, penalty fees are charged as follows:

2.4.1. Minimum Order

The Government shall order at least the Minimum Order amount each year during the contract period in Appendix A. Minimum order amount is 80% to the Annual Order Amount. If the actual yearly order amount does not reach the yearly Minimum Order, a settlement amount for shortage of Minimum Order will be charged to the Government.

Calculation:

Settlement amount for shortage of yearly Minimum Order = (Yearly Minimum Order amount (ton) - Actual order amount (ton)) x Average LNG price of the year (ton/yen)

2.4.2. Exceptions

The settlement amount shall not be assessed for failing to achieve the minimum purchase order in the event in which the supplier is responsible for or that circumstances beyond the control and without the fault or negligence of the government. Examples of these causes are (1) acts of God or of the public enemy, (2) acts of the Government in either its sovereign or contractual capacity, (3) fires, (4) floods, (5) epidemics, (6) quarantine restrictions, (7) strikes, (8) freight embargoes, and (9) unusually severe weather.

2.5. Invoices

The Contractor shall send a monthly invoice to the address specified in the contract. An invoice shall be in the US format and include calculation basis of the CIF price for the month. Charges for a settlement amount for shortage of Minimum Order, if any, shall be listed separately on the invoice.

3. General

3.1. Security Requirement

The Contractor and his employees must comply with all security requirements imposed by the local installation commander at all times while performing the requirements of this contract on this military installation. The prime contractor is responsible for understanding and ensuring contractor employees and subcontractor compliance with 35th Fighter Wing Instruction 31-204, Misawa Air Base Motor Vehicle Traffic Supervision.

3.1.1. Base Passes

The U.S. Government will issue all required Installation/Base Passes to Contractor personnel at no cost to the Contractor. Vehicle insurance certificates are required to obtain Base Passes and must cover the automobile liability insurance in the types and minimum amounts of (a) Bodily Injury - ¥30,000,000 per person per occurrence, in addition to the Japanese Compulsory Insurance (JCI), and (b) Property Damage - ¥3,000,000 per occurrence. The prime Contractor shall be responsible for all passes issued to his/her own or sub-Contractor's employees under this contract. The Contractor shall return all applicable passes upon termination of employment or completion of this contract to the Japanese Pass Section, and a certificate of receipt shall be obtained.

3.1.2. Safety

The Contractor shall comply with applicable industry standards, and practices for safety to perform the services in the contract. The Contractor's personnel shall take all reasonable steps and precautions to prevent accidents during the performance.

3.1.3. Security Forces and Fire Protection

Upon request for assistance, the following units will provide services on base as necessary:

(a) Base Security Forces Telephone 226-4358 (911 for Emergency)

(b) Base Fire Department Telephone 117 (911 for Emergency)

(c) Base Hospital Emergency (Reimbursable expense) Telephone 911

(d) Off-base dialing to First Responders 0176-77-3218

Any time the Contractor uses one of the above services, the Contractor's POC shall immediately report to the CO or the COR with all of the details.

The POC will be required to submit, in writing, within two (2) days, the details surrounding the use of this service to the CO.

3.1.4. Licenses

The Contractor must submit all applicable licenses and registrations to provide natural gas to the installation; including but not limited to the proper registration under the Government of Japan High Pressure Gas Safety Act to 35 CES, and shall furnish proof of the properly licensed individuals and materials to handle gas.

4. Appendices

A. Standard Consumption B. Contract Data Requirements List (DD Form 1423)

Appendix A

Table 1: Standard Consumption (metric ton)

2022-23 2023-24 2024-25 2025-26 2026-27

Tonnes of

LNG

Tonnes of

LNG

Tonnes of

LNG

Tonnes of

LNG

Tonnes of

LNG

Jul 571 583 625 625 625

Aug 593 630 632 632 632

Sep 568 604 605 605 605

Oct 791 791 791 791 791

Nov 1,557 1,813 1,813 1,813 1,813

Dec 1,643 1,913 1,913 1,913 1,913

Jan 2,151 2,486 2,486 2,486 2,486

Feb 1,742 1,970 1,970 1,970 1,970

Mar 1,558 1,743 1,743 1,743 1,743

Apr 1,150 1,199 1,199 1,199 1,497

May 676 698 698 698 698

Jun 580 590 590 590 590

Annual Total 13,581 15,020 15,065 15,065 15,065

5 years Total

73,796

Appendix B Contract Data Requirements List (DD Form 1423)