A-14_Atch_1_-_SOW.pdf

Attachment 1 to Solicitation No. FA5209-13-R-0032

Statement of Work (SOW) for

Natural Gas at Yokota AB

20 Aug 2013

1. General Description of the Natural Gas Requirements: The contractor shall provide all personnel, equipment, tools, materials, supervision and other items and services necessary to provide natural gas, twenty four (24) hours a day, seven (7) days a week, to four (4) supply points at Yokota Air Base, indicated on Attachment 3, Supply and Gas Line Connection Points.

The contractor shall connect their gas line at the connection points indicated on Attachment 3, Supply Gas Line Connection Points, to the Government-owned gas lines and shall conduct periodic and emergency inspections, on Government-owned gas lines from four (4) supply points listed above to four (4) connection points in accordance with Japanese Gas Business Act (Act No.

51 of March 31, 1954) and all other relevant laws.

1.1.1. Required Natural Gas Pressure/Volume at the boiler plants at Supply Points 1, 2 and 3):

Contractor shall ensure the following pressure, quality, and type of gas is provided to the boiler plants listed above, twenty-four (24) hours a day, seven (7) days a week:

- Supply Pressure at the plant: 0.1 – 1.0 MPa at normal supply temperature of 30 deg C or below

- Quality of gas/heat content: Standard Heat Quality 45 MJ, 10,750 Kcal/m3 (HHV)

- Type of gas: City Gas 13A

It is estimated that the following natural gas volumes will be required:

Supply Point 1 (West)

- Projected Hourly Maximum Flow: 1,398 CM/Hr

- Projected Annual Consumption: 3,300,000 CM/Yr

Supply Point 2 (East)

- Projected Hourly Maximum Flow: 1,495 CM/Hr

- Projected Annual Consumption: 6,000,000 CM/Yr

Supply Point 3 (Main 1)

- Projected Hourly Maximum Flow: 2,405 CM/Hr

- Projected Annual Consumption: 11,100,000 CM/Yr

1.1.2. Required Technical Submittals: The contractor will provide the following technical submittals as part of this contract: Inspection/Maintenance Plan, Mobilization Plan and Emergency Service Plan.

1.1.2.1. Inspection/Maintenance Plan: The contractor shall submit an inspection/maintenance plan for government approval. The contractor’s inspection/maintenance plan shall include maintenance in accordance with the manufacturer’s recommendations, as well as all relevant gas and construction laws, including but not limited to: the governor systems, all filters and valves, the emergency shut-off valve system, and all above ground gas piping systems to include leak detection as outlined by the following:

- Maintenance of Governor: Maintenance will include stopping the governors and decomposing them, replacing each component, cleaning the filters, and cleaning up following the work. This inspection will occur at least once every 76 months or as often as recommended by the manufacturer (whichever time is shorter).

- Leak-Detection of Gas Pipes: Leak-detection will be accomplished by closing the main valve and measuring and recording the pressure to check that it is possible to stop the gas supply. If it is not possible to stop the gas supply, the pipelines will be inspected with a gas leak detector. This inspection will occur at least once every 40 months according to Gas Utility Industry Law or upon request.

- Open-close Test of Valve: Each valve will be inspected by shutting it half-way to ensure that it is functioning properly. This inspection will be provided upon request by the 374th Civil Engineer Squadron.

- Measurement of Potential at Each Magnesium-Electrode: The potential of each magnesium-electrode will be measured and the condition of buried gas pipes checked as part of this inspection. The inspection will occur once every 40 months or as recommended by the manufacturer, whichever is shorter.

- Inspection of Emergency Shut-Off Valve: This inspection will only occur under the condition that the gas supply will be interrupted. It will include an operation test and a total test. There will be an inspection of the appearance, inside equipments, and batteries.

Measurement of the insulation resistance and a horizontal check of seismometer will also be performed. The inspection will be performed as recommended by the manufacturer.

1.1.2.2. Mobilization Plan: Following contract award, the contractor will submit a mobilization plan for government approval. The mobilization plan shall outline the entire process for the construction of necessary gas supply lines. The mobilization plan shall include, but shall not be limited to: A description of processes and timelines associated with obtaining METI approval to connect to Yokota’s distribution system; a timeline illustrating the contractor's plan to complete construction of all necessary supply/distribution line(s) within eight (8) months of contract award; and, a timeline illustrating the contractor's plan to complete all necessary connections between the contractor's supply line(s) and Yokota's distribution line(s) within eight

(8) months of contract award.

1.1.2.3. Emergencies: The contractor shall provide an Emergency Response plan to the government for approval. The Emergency Response plan shall define the procedure by which service shall be restored in the event of an emergency, including but not limited to: the size and composition of the response team, the initial equipment brought to diagnose the issue, the maximum response time to an emergency call, and any leak detection/damage sensing methods employed. For the purposes of this statement of work, an emergency is defined as any unscheduled interruption of service, including but not limited to: natural disasters, leaks and line maintenance performed without prior notification. At a minimum, the Contractor must be able to receive trouble calls from the Government, 24 hours a day, 7 days a week, and respond within thirty (30) minutes of an emergency call and inspect the gas system. The Contractor shall report to the Contracting Officer/Contracting Officer’s Representative upon arrival on site. The

Contractor must have an approved Emergency Response plan in order to provide natural gas to the base.

No later than the first day of performance, after contract award, the contractor shall provide to the Contracting Officer the Point of Contact (POC) list so that 374 Civil Engineer Squadron (CES) can contact the Contractor POC, 24 hours a day, 7 days a week in case of emergency, including but not limited to gas or gas stoppage. The contractor shall provide an updated list to the Contracting Officer no later than the date the POC list change takes effect during the contract term. The contractor shall contact CES at least thirty (30) calendar days in advance to schedule periodic inspection, on the Government-owned gas line.

1.2. Required Natural Gas Pressure/Volume at Supply Point 4 (Main 2)

Contractor shall ensure the following pressure, quality, and type of gas is provided to the facilities listed above, twenty-four (24) hours a day, seven (7) days a week:

- Supply Pressure at the plant: 1.0 – 2.5 KPa at normal supply temperature of 30 deg C or below

- Quality of gas/heat content: Standard Heat Quality 45 MJ, 10,750 Kcal/m3 (HHV)

- Type of gas: City Gas 13A

It is estimated that the following natural gas volumes will be required:

- Projected Hourly Maximum Flow: 102 CM/Hr

- Projected Average Annual Consumption: 62,000 CM/Yr

1.3. Periodic and Emergency Inspection on Government-Owned Gas Lines Between Suppy Points 1, 2, 3 and 4 and Connection Points 1, 2, 3 and 4: In accordance with Japanese Gas Business Law, the contractor shall conduct periodic and emergency inspections on the Government-owned gas lines between Supply Points 1, 2, 3 and 4, and Connection Points 1, 2, 3 an d 4. A schedule of these inspections will be provided to the 374 CES in accordance with paragraph 1.1.2.1. The contractor shall notify the Government if it finds the Government-owned gas lines to be in an unsafe condition or needs repair in accordance with industrial standards. All repairs to government owned gas lines will be made at Government expense, except those that have been determined to be caused by the Contractor’s negligent acts or omissions. Any debris and materials generated from the inspection at the site shall be cleaned and disposed of by the contractor.

1.4. Meter Reading and Calculation of Gas Consumption

1.4.1. Meter Devices: Contractor shall install suitable metering equipment of standard manufacture, and maintain and repair them at Contractor’s expense. When more than a single meter is installed at a service location, the readings thereof may be billed conjunctively, if appropriate. In the event any meter fails to register (or registers incorrectly) the services furnished, the parties shall agree upon the length of time of meter malfunction and the quantity of service delivered during such period of time. An appropriate adjustment shall be made to the next invoice for the purpose of correcting such errors. Meter devices shall be certified and inspected in accordance with Measurement Act (Act No. 51 of May 20, 1992).

1.4.2. Meter Reading: The Contractor shall read all meters at periodic intervals of approximately 30 days or in accordance with the policy of the cognizant regulatory body or applicable bylaws. The contractor shall include the date of the meter reading in all official communications.

1.4.3. Meter Test: At the written request of the Contracting Officer, the Contractor shall test any and all identified meters in the presence of Government representatives. The cost of such additional tests shall be borne by the Government if the percentage of errors is found to be not more than 4 percent slow or fast for low pressure gas supply, and 1 percent for middle pressure.

In the event the meter is found to be out of tolerance, the cost shall be borne by the contractor.

1.5. Annual Estimate Order: An annual Estimate Order will be issued each year (prior to gas being supplied) to inform the Contractor of the estimated quantity, estimate monthly usage, and unit price fixed in Exhibit A, Pricing Schedule for the year.

1.6. Term of Contract: Term of this contract will consist of two periods. A testing period and a normal operating period.

1.6.1. Testing Period: Following contract award and completion of pipeline construction, there will be a four (4) weeks long test conducted during the winter season, or nine (9) weeks in other than winter season. Upon satisfactory completion of the Testing Period and written notice from the Contracting Officer, the contract shall enter the Normal Operating Period.

1.7. Order of Precedence: In the event of any inconsistency between the terms of the contract (including the specifications) and any rate schedule, rider, or exhibit incorporated in this contract by reference or otherwise, or any of the Contractor's rules and regulations, the terms of the contract shall prevail.

1.8 Government Furnished Property: None

2. Gas Price

2.1. Rates and Charges of Service: In accordance with Article VII of the Treaty of Mutual Cooperation and Security Between the United States of America and Japan, Regarding Facilities and Areas and Status of United States Armed Forces in Japan (SOFA), the rates and charges of natural gas under this contract shall be no less favorable than those that may be applicable from time to time to the ministries and agencies of the Government of Japan.

2.2. Gas price shall be calculated as follows:

Gas Price = Usage x (Unit Price ± Gas Resource Cost Adjustment Price)

2.3. Gas Resource Cost Adjustments: The unit price shall be adjusted on a monthly basis in accordance with the Ordinance for Enforcement of the Gas Business Act and contractor’s latest version of General Supply Provisions approved by the Ministry of Economy, Trade and Industry of Government of Japan.

2.4. Charges: If the certain price factors are in excess or below the specified amount, penalty fees are charged as follows:

2.4.1. Shortage of the Large Supply Standard Volume: In accordance with the Ordinance for Enforcement of Gas Business Act, Article 3, paragraph 2., when the total of actual yearly usage of this contract does not meet the Large Supply Standard Volume, a shortage fee will be assessed.

The Large Supply Standard Volume is 100,000 m3 by 46-mega joules equivalent.

Calculation Formula:

[Large Supply Standard Volume (in heating value) – Actual total yearly usage volume of this contract] x Average of the adjusted monthly unit price for the year (para. 2.3.)

2.4.2. Minimum Order: The Government shall order a yearly Minimum Order amount. If the actual yearly usage does not reach the yearly Minimum Order, a settlement amount for shortage of Minimum Order will be charged. In a case that actual yearly usage is less than the Large Supply Standard Volume, para 2.4.1., “Shortage of the Large Supply Standard Volume”, of this SOW will be applied to the portion of less than the Large Supply Standard Volume, and “Settlement amount for shortage of yearly Minimum Order” will be applied for the portion of over the Large Supply Standard Volume.

Calculation:

Settlement amount for shortage of yearly Minimum Order = (Yearly Minimum Order - Actual yearly usage) x Average actual adjusted unit price of the year

2.4.2.1 Exceptions: No penalty shall be assessed for failing to achieve the minimum purchase order in the event that circumstances beyond the control of the government prevent the flow of gas from reaching the contracted buildings.

2.4.3. Excess of Hourly Max Flow Volume Charge: When the flow volume in the Peak Demand Season (December, January, February, and March) exceeds the contract maximum flow volume by more than 5% at any time during the month, an overage fee shall be assessed. The rate of the overage shall be calculated as follows:

Actual maximum flow volume – (Contracted maximum flow volume x 1.05) x Overage Rate

2.4.4. Yearly Load Factor: Yearly Load Factor is calculated as follows:

Yearly Load Factor = Monthly average usage in a year / Monthly average usage in the Peak Demand Season (December, January, February, and March)

When the actual yearly Load Factor is less than %, shortage of yearly Load Factor will be charged.

Calculation Formula:

Settlement amount for shortage of yearly Load Factor = [Average of actual monthly usage in the Peak Demand Season (December, January, February, and March) x 12 x % - Actual yearly usage] x (Average actual adjusted unit price of the year / Actual yearly usage)

3. General

3.1. Security Requirement: The Contractor and his employees must comply with all security requirements imposed by the local installation commander at all times while performing the requirements of this contract on this military installation. The prime contractor is responsible for understanding and ensuring contractor employees and subcontractor compliance with AFI 31- 204, Motor Vehicle Traffic Supervision.

3.1.2. Base Passes: The U.S. Government will issue all required Installation/Base Passes to Contractor personnel at no cost to the Contractor. Vehicle insurance certificates are required to obtain Base Passes and must cover the automobile liability insurance in the types and minimum amounts of (a) Bodily Injury - ¥30,000,000 per person per occurrence, in addition to the Japanese Compulsory Insurance (JCI), and (b) Property Damage - ¥3,000,000 per occurrence.

The prime Contractor shall be responsible for all passes issued to his/her own or sub-Contractor's employees under this contract. The Contractor shall return all applicable passes upon termination of employment or completion of this contract to the Japanese Pass Section, and a certificate of receipt shall be obtained.

3.1.3. Safety: The Contractor shall comply with applicable industry standards, and practices for safety to perform the services in the contract. The Contractor's personnel shall take all reasonable steps and precautions to prevent accidents during the performance.

3.1.4. Security Force and Fire Protection: Upon request for assistance, the following units will provide services on base as necessary:

(a) Base Security Forces Telephone 225-7227 (911 for Emergency)

(b) Base Fire Department Telephone 117 (911 for Emergency)

(c) Base Hospital Emergency (Reimbursable expense) Telephone 911

Any time the Contractor uses one of the above services, the Contractor's POC shall immediately report to the Contracting Officer or the Utility Officer with all of the details. The POC will be required to submit, in writing, within two (2) days, the details surrounding the use of this service to the Contracting Officer.

3.1.5. Licenses: The Contractor must submit all applicable licenses and registrations to provide natural gas to the installation; including but not limited to the proper registration under the Government of Japan Gas Business Act to the 374th Civil Engineer Squadron, and shall furnish proof of the properly licensed individuals and materials to handle gas.