Addendum 2 Q & A.pdf
PDF 194 KB Posted
- Solicitation number
- RFP-171-180000000077-3
- Issued by
- Michigan
About this file
This is a Question & Answer (Q&A) document for Request for Proposal No. 180000000077 from the State of Michigan regarding Natural Gas Supplier Pre-Qualification for their Choice Program. The RFP seeks to establish "Tier 1" contracts for pre-qualification of Natural Gas Suppliers who can provide service through various utilities including SEMCO, MGU, MichCon, and Consumers Energy, though participation with all utilities is preferred but not required. The program is open to State of Michigan agencies as well as MiDeal members, which includes cities, townships, counties, villages, school districts, universities, community colleges and non-profit hospitals.
The pricing structure will be determined during Tier 2 pricing requests, with fixed pricing being historically most common. Suppliers must include a 0.5% administrative fee in their pricing rather than invoicing it separately. Historical consumption averaged 100,000 MMBtu annually for State agencies participating in Consumers Choice. The State prefers that all pre-qualified Tier 1 suppliers receive identical terms and conditions, though minor contract changes may be considered. Account information, meter data, and consumption estimates will be provided during Tier 2. The program specifically excludes non-Choice load, which is handled under a separate transportation program.
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Text version
Q # Document Name Section # Page # Bidder Question ANSWERS
1 RFP 12 4 How long after the RFP is submitted will the State need to award a contract? Please see "Instructions To Bidders" RFP Timeline, anticipated contract begin date.
2 General Question
Is it the intent of the State to enter into an agreement with one supplier or will they award separate contracts by utility/rate? This RFP is for "Tier 1" contracts for pre-qualification of Natural Gas Suppliers.
3 General Question Will the individual sites provide weekly meter reads (usage information) for awarded supplier? The awarded contract is for Customer Choice and weekly meter reads are not applicable
4 General Question Could the State provided all account information in an excel format? The necessary account information for enrollment into Customer Choice will be provided in Tier 2
5 General Question Will the State be providing account numbers and rate classes for all accounts? Account numbers/Copies of utility invoices, will be provided upon awarding of Tier 2
6 Standard Terms and Conditions 6 5
Can the State provide estimated consumption for each City Gate (MichCon, DTE Gas Company), (CEC), (SEMCO), and
(MGU)?
Estimated consumption will be provided in Tier 2, however the State of Michigan's agencies that participated in Consumers Choice averaged 100,000 MMBtu/Annual.
7 General Question Will the State consider different pricing product options (Fixed, Nymex+ etc.,)?
The State of Michigan Agency or MiDeal member will request their preferred pricing method during the Tier 2 pricing request. Historically Fixed pricing was most commonly requested.
8 General Question Does the State have any non-CHOICE load under this or a separate MiDEAL RFP?
The State of Michigan does not have any non-Choice load under this RFP. The State of Michigan has a separate program for Transportation.
9 Standard Terms and Conditions 1 3 Are the service locations being provided for eligible for the State's CHOICE program?
The State of Michigan's Agencies, as well members of MiDeal have facilities behind SEMCO, MGU, Michcon and Consumers Energy. We would prefer participation with all utilities, however it is not required. Historically Consumers Energy was the only utility in which the State Agencies or MiDeal members participated in Customer Choice.
10 Standard Terms and Conditions 1 3 What government bodies or currently part of MiDEAL and purchase through this RFP?
MiDeal membership is open to Cities, Townships, Counties, Villages, School Districts, Universities, Community Colleges and non-profit hospitals. Historically the MiDeal members that utilized a
State of Michigan natural gas contract for Customer Choice consisted of local units of government.
11 Standard Terms and Conditions 17 9
Would the State allow add/delete language to be included on agreement for any accounts that would be added or deleted within the contracted period?
The executed contract between the Supplier and the State of Michigan will not change during the term of the agreement. In a tier 2 pricing agreement, the Buyer's list of facilities may change throughout the Transaction Confirmation term.
12 Standard Terms and Conditions 17 (b) 9 Should contractor include costs related to the 0.5% in its price or can the fee be invoiced separately? The contractor should include the costs related to the 0.5% in its price.
13 Standard Terms and Conditions 30 12 Would the State agree to keep the supplier whole should they termination contract for convenience? The party which executed the Transaction Confirmation will be the responsible party.
14 Standard Terms and Conditions
Would the State consider a Martial Usage bandwidth of 25% on the FPR accounts, which would only be called upon should facilities close, etc.? No
15 Standard Terms and Conditions Are suppliers permissible to submit contract changes for consideration?
The State prefers that all pre-qualified tier 1 suppliers are awarded contracts with identical Terms and Conditions. You may submit changes for consideration, however, numerous and/or drastic changes may prevent the award of a contract.
Q & A For: Request For Proposal No. 180000000077, Department No. 171 - Natural Gas Supplier - Pre-Qualification For Choice Program
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