Attachment 1 - Natural Gas SOW.pdf

Statement of Work (SOW) Natural Gas Supply to Keesler AFB Distribution System This Statement of Work (SOW) outlines the requirements for a Contractor to supply metered natural gas to the Keesler AFB-owned single 8-inch steel distribution line at a constant 92 pounds per square inch gauge (psig) at the City Switching Station located on Rippy Rd in Gulfport, MS. The Contractor shall meter and provide natural gas supply to the distribution system, ensuring reliable and safe delivery to consumers.

1. Introduction

This SOW defines the scope of work for the provision of natural gas at 92 psig to the Keesler AFB Natural Gas distribution system. It outlines the responsibilities of the Contractor in procuring, transporting, and delivering natural gas to the designated distribution network point of origin located at the city natural gas station on Rippy Rd in Gulfport, MS. The primary goal is to ensure a continuous and reliable supply of natural gas, meeting all regulatory, safety, and performance standards.

2. Scope of Work

The Contractor shall be responsible for all aspects of natural gas supply to the Keesler AFB distribution system, including:

• Procurement: Acquiring natural gas from various sources, ensuring sufficient quantities to meet projected demand and potential fluctuations.

• Transportation: Arranging and managing the transportation of natural gas from the point of origin to the designated connection point on Rippy Rd for Keesler AFB distribution system.

• Delivery and Balancing: Ensuring the timely and accurate delivery of natural gas, balancing supply with demand to maintain stable pressure and flow rates within the distribution network.

• Quality Assurance: Ensuring the quality and composition of the natural gas supplied meets all relevant industry standards and regulatory requirements.

• Reporting and Communication: Providing regular reports on supply levels, gas quality, and any potential issues or disruptions, and establishing clear communication protocols with the Distribution System Operator.

3. Performance Period

This SOW will be in effect for a period of 5 years, commencing on 1 December 2025 and concluding on 30 November 2030.

4. Location of Operations

The Contractor shall perform the required tasks at the Keesler AFB designated distribution network point of origin located at the city natural gas station on Rippy Rd in Gulfport, MS, and within the specified geographical area covered by the distribution system.

5. Tasks and Milestones

The Contractor shall execute the following tasks and achieve the corresponding milestones:

• Initial Setup and System Integration o Task: Develop and submit a detailed plan for the integration of the Contractor's supply operations with the existing distribution system.

o Milestone: Integration Plan approved by the Distribution System Operator within ten days of contract award.

• Supply Optimization and Demand Forecasting o Task: Implement and utilize advanced demand forecasting models to optimize gas procurement and storage, minimizing costs and ensuring adequate supply.

o Milestone: Quarterly reports that demonstrate optimized procurement strategies and reduced unaccounted-for gas within 90 days of implementation.

• Safety and Environmental Compliance o Task: Adhere to all applicable safety regulations and environmental standards related to natural gas handling, transportation, and delivery.

o Milestone: Achieve and maintain a safety incident rate below the industry average, as demonstrated through quarterly safety reports.

6. Standards

The Contractor shall comply with all applicable federal, state, and local regulations and industry standards for natural gas supply, including but not limited to those set by the Pipeline and Hazardous Materials Safety Administration (PHMSA) and relevant state regulatory authorities.

The Contractor shall also adhere to quality standards for gas composition, pressure, and delivery reliability.

7. Scheduling and Due Dates

The Contractor shall adhere to the following schedule and due dates for deliverables and milestones:

• Integration Plan Submission: With Proposal

• Start of Supply Operations: 1 December 2025

• Quarterly Performance Reports: Every 90 days beginning 1 February

• Safety Audit Report: Every 90 days beginning 1 February 2026

8. Monitoring and Acceptance Criteria

The Distribution System Operator will monitor the Contractor's performance based on the following criteria:

• Reliability of supply and delivery in meeting demand

• Adherence to safety regulations and industry best practices

• Compliance with environmental standards and methane leakage reduction measures

• Efficiency of supply operations and cost-effectiveness

• Customer satisfaction and communication responsiveness

• BOS/CE personnel will periodically check the meter for accuracy

Acceptance of services will be based on the Contractor's successful fulfillment of all tasks, milestones, and performance criteria outlined in this SOW.

9. Indemnification

The Contractor shall indemnify and hold harmless the Distribution System Operator against any claims, losses, or damages arising from the Contractor's performance under this SOW, except where such claims, losses, or damages are caused by the negligence or willful misconduct of the Distribution System Operator.

10. Representation and Warranties

The Contractor warrants that it has the necessary expertise, resources, and licenses to perform the services described in this SOW and that all services will be provided in a professional and workmanlike manner.

12. Termination

Contract terminated by either party upon written notice in the event of a material breach of the terms and conditions outlined herein.

13. Delegation, Including Subcontractors

The Contractor may utilize subcontractors to perform certain tasks under this SOW, provided that such subcontractors are approved in advance by the Distribution System Operator and adhere to the same standards and requirements as the Contractor. The Contractor shall remain ultimately responsible for the performance of all delegated tasks.

14. Defining Project Success

Project success will be defined by the Contractor's ability to consistently provide a safe, reliable, and cost-effective supply of natural gas to the distribution system, meeting all regulatory and performance requirements, while minimizing environmental impact and ensuring customer satisfaction.

15. Payment Model

Contractor is to submit monthly bills to BOS/CE Financial Manager Lead Alan MacArthur email address: alan.macarthur.ctr@us.af.mil (or other designated representative) for review.

Payments will be made by 81st Civil Engineering Squadron Resource Advisor office Phillis Young email address: phillis.young@us.af.mil (or other designated representative).

mailto:alan.macarthur.ctr@us.af.mil mailto:phillis.young@us.af.mil

16. Option

Mercaptan injection services are presently being provided under a separate active service contract. While mercaptan injection is not required under this SOW, the Government reserves the option to include continued mercaptan injection services as part of this contract, subject to mutual agreement and amendment. If exercised, this option shall be incorporated through a formal modification to the contract, specifying scope, pricing, performance standards, and duration. The Contractor shall be prepared to continue providing odorization services without disruption should the option be activated.