IFB 80GSFC24B0001 Questions and Answers Set 1.pdf

IFB 80GSFC24B0001

WFF Propane Delivery Services Questions and Answers Set #1

Note: All other questions received are under review at this time. The answers will be posted as soon as possible.

Question 1: The letter to prospective bidders indicates that this is an unrestricted solicitation, but that the business size standard is 1,500 employees. Can you please clarify whether this excludes businesses that are over 1,500 employees?

Answer 1: The 1,500 employees is the size associated with the NAICS code 324110 for this requirement. This does not exclude businesses that are over 1,500 employees from bidding.

Question 2: Who is the incumbent supplier?

Answer 2: These services are currently provided by a subcontractor under our Logistics contract with TRAX. The vendor is Chesapeake Utilities Corporation, d/b/a Sharp Energy.

Question 3: Who are the current providers of HD5 propane to the 60,000-gallon tanks and the smaller tanks if they are not the same?

Answer 3: The same provider as Answer #2.

Question 4: What kind of time period is allowed for changing out the smaller tanks if awarded the supply contract?

Answer 4: We expect all tanks to be installed no later than a month after the award of the contract. The down time for installing tanks in the buildings that use propane to run generators must be minimal. The installation dates must be coordinated with the government to work around mission schedule.

Question 5: Are you able to provide the current pricing structure, differential and or formula for delivered cost of propane to the 60,000-gallon tanks and the smaller tanks?

Answer 5: No.

Question 6: Is it acceptable to only offer on one portion of the supply if you would like or must you offer on both portions?

Answer 6: Offerors must propose the entire effort.

Question 7: How long is the fixed price good for? Is it on a per year basis only and subject to review and negotiation every option year?

Answer 7: Offerors will bid rates for the base year and the four option year periods. Per the Economic Price Adjustment Labor and Material – Actual Cost Method Clause, within 20 days of the Contracting Officer’s notification of exercising each option, the contractor shall provide any computations for any increases or decreases related to propane. So this adjustment will occur at the time an option is exercised. In addition, a final economic price adjustment maybe be necessary at the end of the contract to reflect the final cost of propane.

Question 8: Per our risk policy and liquidity in the market. I can only price out for 3 years. Is that going to be a problem?

Answer 8: Offerors shall propose a price for all 5 years. In accordance with the EPA clause, price adjustments will be made when each option is exercised.

Question 9: I know in the bid, you have options for year 2 and 3. I can give you a fixed number for those years, but we would have to know if you want to take the option when the bid is awarded. This goes back to the market. It could change thru-out the year, and I have to lock in the commodity price to protect my hedge.

Answer 9: Options will not be exercised at the time of award. In accordance with the EPA clause, price adjustments will be made when each option is exercised.