BIA_Sources_Sought_1.docx

Prism Solicitation Number: 140D0422R0020

SOURCES SOUGHT NOTICE

FEASIBILITY OF BLENDING HYDROGEN INTO PROPANE

On behalf of the Bureau of Indian Affairs (BIA) & the Division of Energy and Mineral Development (DEMD), the Department of the Interior, Interior Business Center, Acquisition Services Directorate (DOI-IBC-AQD) is conducting market research to identify interested firms capable of satisfying the agency’s requirements. DEMD is seeking Indian Economic Enterprise (IEE) sources along with any other socioeconomic sources to conduct a feasibility study for blending hydrogen into propane and, if feasible, a proof-of-concept demonstration. See “Project Information” below for more detailed information about the acquisition.

The estimated period of performance of this effort is anticipated to not exceed one (1) year. The anticipated North American Industry Classification System (NAICS) code is 541715 “Research and Development in the Physical, Engineering, and Life Sciences except Nanotechnology and Biotechnology” with a size standard of 1,000 employees.

The purpose of this Sources Sought Notice is to obtain an indication of interest of all businesses, determine any interest from the IEE community, and to obtain capability statements from all interested sources. The Government will use responses received to this Sources Sought Notice to determine the appropriate acquisition strategy for this project.

NOTE: This IS NOT a Request for Proposals. The Government will not award a contract based on responses received to this Sources Sought Notice. The Government is not committed nor obligated to pay for the information provided, and no basis for claims against the Government shall arise as a result of a response to this Sources Sought Notice. Information provided is strictly voluntary.

PROJECT BACKGROUND INFORMATION

The Division of Energy and Mineral Development’s (DEMD) mission is to assist Native American tribes and Alaskan villages in developing their natural resources. These resources could be oil, natural gas, minerals, geothermal, solar, wind, water, biomass, and (hydrogen). Many Tribes use propane to heat their homes and businesses. Some of these Tribes own and operate propane distribution companies and other Tribes purchase propane from a local distribution company.

Propane pricing fluctuates seasonally and can be volatile and unpredictable creating an undo burden on tribal members that have limited income and resources. Some have run out of propane during the coldest winter months and suffered freezing conditions and even death.

The DEMD would like to establish a viable and profitable hydrogen production method that is owned and operated by the tribes. This hydrogen could be blended into propane to offset costs, provide a supplemental supply to enhance propane volumes, and to reduce carbon emissions. The hydrogen could be stored then used in fuel cells to produce electricity. The hydrogen could be blended into natural gas pipelines to reduce carbon emissions.

PROJECT OBJECTIVES

The primary objectives of this study are to reduce carbon emissions, lower the cost of heating fuel, and to provide answers to the following questions below:

1. Can hydrogen be blended into propane safely and effectively? If so, how, and when is the blending accomplished?

2. Can the end user appliances and equipment safely burn the mixture?

Obtaining a basic set of answers to these hydrocarbon questions is fundamental to lowering risk, increasing project attractiveness, and improving the Tribe’s ability to make informed decisions regarding the value of this resource.

PROJECT TASKS

The Contractor will be required to perform an economic feasibility study to establish a go/no-go analysis by discovering any fatal flaws with the concept of blending hydrogen into propane to be used as a heating fuel. The contractor shall furnish all supplies, equipment, facilities, and services required to perform work under any resulting contract. The specific project tasks are described below:

1. Proof of Concept: The Contractor shall determine if hydrogen can be mixed with propane and used as a heating fuel. The hydrogen could be produced from steam methane reformation or electrolysis, with the latter being the preferred method. The hydrogen will be stored and then made available for multiple uses, but primarily for blending into propane regarding this study. Hydrogen is being blended into natural gas (methane) pipelines to reduce the carbon produced from combustion in Europe and Canada. The blends are up to 20% hydrogen with no negative effects such has hydrogen embrittlement. The Department of Energy (DOE) and the National Renewables Energy Laboratory (NREL) are conducting studies to vet the concept in the United States.

2. Equipment Compatibility: The Contractor shall address the following equipment compatibility considerations:

a. Determine if hydrogen can be blended into existing propane distribution systems without negative impact to the pipe, storage tanks/spheres/bullets, and equipment.

b. Determine the pressure and temperature for each component.

c. Describe any negative effects on the end user equipment.

3. Physical Properties: The Contractor shall address the following considerations pertaining to the physical properties associated with blending hydrogen into propane:

a. Determine what is the optimum level of hydrogen blend in percentage.

b. Indicate how will the heating value will be impacted.

c. Determine what will the flammability range be after blending.

d. Determine the vapor pressure and temperature.

4. Safety: The Contractor shall address the following safety considerations:

a. Are the safety considerations associated with blending hydrogen into propane different than handling pure hydrogen or a hydrogen/methane blend?

b. Determine the blend’s effect on safety equipment such as hazardous gas monitors, safety pressure relief valves, and measurement/control equipment.

c. Determine if the hydrogen blend will work with the existing mercaptan odorizing systems and be a compatible chemical mixture.

d. Establish the electrical equipment hazardous area classification and the classification rating of the equipment.

e. Determine if the blend poses special handling risks for transportation and storage.

RESPONSE REQUIREMENTS

Firms interested in responding to this Sources Sought Notice are requested to provide the following information:

1. Firm Information and Socioeconomic Status. Please provide your firm name, address, DUNS number, Cage Code, phone, e-mail address, and point of contact. Additionally, please identify if your firm is an Indian Economic Enterprise, Small Business, Small Business Administration (SBA) certified 8(a), Small Disadvantaged Business, HUBZone, Veteran Owned Small Business (VOSB), Service Disabled Veteran Owned Small Business (SDVOSB), or Women Owned Small Business (WOSB) firms relative to the specified NAICS codes (no more than one (1) page).

2. Capability Statement. Please provide a brief Capability Statement (no more than 10 pages) which demonstrates the ability to meet the Government’s requirements described in the project tasks above. All Capability Statements should also provide responses to the following questions:

a. What safety measures and safety equipment are necessary for handling hydrogen and propane? What safety and handling equipment do you currently have?

b. What are the expected obstacles in blending hydrogen into propane and what experience do you have with these products?

c. What equipment is needed to pump hydrogen into propane? Do you currently have this equipment?

d. What area classification will the equipment be located?

SUBMISSION INSTRUCTIONS, DUE DATES & DOI POINTS OF CONTACT

Submission Instructions. Please submit responses electrically via email to the DOI-IBC-AQD Contracting Officer, Frank Kennedy; Frank_Kennedy@ibc.doi.gov. Acceptable formats for submission are Microsoft Word or Portable Document Format (PDF). No requests for capability briefings will be honored as a result of this sources sought notice. Information provided will not be used as a part of any subsequent solicitation requirement. Interested firms responding to this Sources Sought Notice are responsible for appropriately marking information if it is proprietary in nature. All information received that is marked “proprietary” will be handled accordingly. Please be advised that all submissions become Government property and will not be returned.

Due Date For Questions. Questions are due no later than 2:00 PM EST on 07 March 2022 and should be submitted via email to Frank_Kennedy@ibc.doi.gov.

Response Due Date. Responses are due no later than 2:00 PM ET on 21 March 2022 and should be submitted via email to Frank_Kennedy@ibc.doi.gov.

DOI Points of Contact.

Primary Point of Contact:

Frank Kennedy Contracting Officer Frank_Kennedy @ibc.doi.gov

Secondary Point of Contact:

Kevin Woody Contracting Officer Kevin_Woody@ibc.doi.gov