Addendum 2 Q & A.pdf
PDF 194 KB Posted
- Solicitation number
- RFP 171 180000000077 3
- Issued by
- Michigan
About this file
This is an Addendum 2 Q&A document for Request for Proposal No. 180000000077 issued by the State of Michigan Department No. 171 for Natural Gas Supplier Pre-Qualification for the Choice Program. The RFP is a two-tier procurement process where Tier 1 involves pre-qualification of natural gas suppliers, and Tier 2 will include pricing requests and facility-specific account information. The State intends to award separate contracts with identical terms and conditions to all pre-qualified Tier 1 suppliers. The program targets natural gas supply services for the State of Michigan's agencies as well as MiDeal members, which include cities, townships, counties, villages, school districts, universities, community colleges, and non-profit hospitals. Service locations are available behind multiple utility providers including SEMCO, MGU, Michcon, and Consumers Energy, though historically participation has primarily occurred with Consumers Energy. The RFP timeline and anticipated contract begin date are referenced in the Instructions to Bidders section.
Tier 2 pricing agreements will include the State's list of facilities with the potential for changes throughout the transaction confirmation term, though the executed contract between the supplier and State will not change during the agreement term. Estimated annual consumption for State of Michigan agencies participating in Customer Choice historically averaged 100,000 MMBtu annually. Suppliers must include all costs related to a 0.5% fee in their pricing rather than invoicing separately. The State prefers fixed pricing methodologies, though suppliers may propose alternative pricing products such as Nymex+ for consideration during Tier 2. The State does not currently have non-Choice load under this RFP and operates a separate program for transportation services. Account numbers, utility invoices, and detailed consumption estimates by utility provider will be provided upon award of Tier 2 contracts. Weekly meter reads are not applicable under the Customer Choice program structure.
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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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