Solicitation 89246520RFE000013 Questions.pdf

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Northeast Home Heating Oil Reserve (NEHHOR)
Solicitation number
89243520RFE000013
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This document contains questions and answers regarding a solicitation for storage of the Northeast Home Heating Oil Reserve. The Department of Energy is soliciting offers to store 1,000,000 barrels of Ultra Low Sulfur Diesel fuel in three locations along the Northeast coast: 300,000 barrels in New York Harbor, 400,000 barrels in New England harbors, and 300,000 barrels in Connecticut and Rhode Island coastal areas. Questions submitted by potential offerors are addressed, providing clarification on requirements for maps and diagrams of storage facilities, product transfer responsibilities, dyeing of the fuel, and the defined geographic scope for New York Harbor storage. Offerors must submit proposals by January 23rd, 2020 at 3:30 PM to be considered for this opportunity to store the Northeast Home Heating Oil Reserve on behalf of the Department of Energy.

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Solicitation 89246520RFE000013 Questions & Answers

1. On Standard Form 1449, what is the size standard of $27.5 million in box 10?

A size standard, which is usually stated in number of employees or average annual receipts, represents the largest size that a business (including its subsidiaries and affiliates) may be to remain classified as a small business for SBA and federal contracting programs.

2. Please confirm bidders may reuse previous letters of recommendation as footnoted on page 1 of the Past Performance questionnaire.

Yes. Bidders may reuse previous letters of recommendation.

3. How does the DOE intend to relocate the current reserve if a different bidder is chosen? Please confirm bidders are not responsible for the transportation costs to relocate the current Reserve to the new location, but responsibility of a new successful bidder is limited to the actions under Section 2 (page 11) – Requirements: Receipt of Reserve (A-D).

Bidders are responsible for ALL costs associated with transfer to relocate product to new location. Transfer of product should be in “the most expedient, cost-effective manner possible to include, but not limited to, physical transfer, book transfer, or exchange.” In the past, book transfers were the preferred method of product transfer between terminals.

4. What level of detail is the DOE looking for on the terminal maps? Is an aerial map identifying the tanks being used for storage sufficient?

L-1 Data Requirements (STORAGE) Each proposal shall be accompanied by a map (a city street map is satisfactory) showing the exact location of the facility, a schematic drawing showing the facility layout and its relation to other facilities in the area, a description of equipment to be provided, line systems, pump capacities, and a complete cleaning, maintenance and repair history for each storage tank, to include the last American Petroleum Institute (API) 653 inspection as well as the scheduled date for the next API 653 inspection. An aerial map of vendor fuel facility that meets above requirement is acceptable.

5. Are latitude / longitude coordinates sufficient for the location of the terminal dock?

L-1 Data Requirements (STORAGE)

(a) Each proposal shall be accompanied by a map (a city street map is satisfactory) showing the exact location of the facility, a schematic drawing showing the facility layout and its relation to other facilities in the area, a description of equipment to be provided, line systems, pump capacities, and a complete cleaning, maintenance and repair history for each storage tank, to include the last American Petroleum Institute (API) 653 inspection as well as the scheduled date for the next API 653 inspection.

Attachment C – Distribution Plan Example

TERMINAL DATA (MAR 2020)

Name: Company Name Terminal Contact: Lead Contact Terminal: Name Manager: Terminal Manager Location: Address Tel. No.: Cell / Office Waterfront Loc: Location Name (reference or address)

6. Does the Reserve need to be dyed upon receipt or can the product be dyed at the truck rack? The latter is common practice since the specifications of ULSD and heating oil have converged.

Since the product is commingled and in constant rotation at the terminal, DOE would expect that the reserve would be dyed at the truck rack after a sale has been initiated.

Attachment D Storage & Handling Products flowing through the terminal will be managed on a first in, first out basis. DOE stored product will be maintained using standard commercial practices. ULSD HO will be dyed in accordance with IRS statute guidance. Products received into storage will be tested and released for distribution as soon as practical.

7. Is the current Reserve already dyed red?

No. Since the product is commingled and in constant rotation at the terminal, the reserve is not currently dyed. ULSD HO will be dyed in accordance with IRS statute guidance.

8. Can the definition of the New York Harbor be expanded to include: “The Rahway River south of the Linden Airport?”

No. The definition of the New York Harbor area is purposeful and specifically defined below. These are the parameters that were determined to best meet the requirements for the Heating Oil Reserve. Any location outside the defined area will not be considered.

300,000 barrels in the coastal areas of New York Harbor – For the purpose of this PWS, New York Harbor shall extend from the East River west of Hunts Point; Gowanus Bay west of the Hamilton Avenue Bridge; the Hudson River south of George Washington Bridge; the Upper Bay; the Narrows; the Lower Bay west of Morton Point; the Newark Bay; the Hackensack River south of the Witt-Penn Bridge; the Passaic River south of the Pulaski

Skyway Bridge; the Kill Van Kull; the Arthur Kill and the Raritan River east of the Garden State Parkway Bridge.

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