FERC-15-R-0008_2-23-15.docx

Combined Synopsis/Solicitation for Liquefied Natural Gas (LNG) Technical Support Services for the Federal Energy Regulatory Commission (FERC); RFP FERC-15-R-0008.

This is a combined synopsis/solicitation for commercial services prepared in accordance with the format in Subpart 12.6 as supplemented with additional information included in this notice. This announcement constitutes the only solicitation; proposals are being requested and a written solicitation (SF1449) will not be issued.

The solicitation number is FERC-15-R-0008. The solicitation is issued as a request for proposal (RFP).

The solicitation document and incorporated provisions and clauses are those in effect through Federal Acquisition Circular 2005-78, effective December 26, 2014.

This procurement is not set-aside for small businesses; however, government will reduce small businesses’ total proposed price by 10% for evaluation purposes. The NAICS code for this procurement is 541690 (Other Scientific and Technical Consulting Services); the small business size standard is $15M.

This procurement is a follow-on to procurement FERC-09-BPA-90165 which expired on September 19, 2014. The incumbent contractor was Stebbing & Associates; 634 Mississippi Avenue; Signal Mountain, TN.

This solicitation replaces solicitation FERC-15-R-0002 which was cancelled on February 5, 2015.

The list of contract line item numbers and items, quantities, and units of measure (including options) are provided in the attached solicitation document.

The objective of this contract is to provide technical evaluation services on: (1) the process design and hazard review, and the operation and maintenance practices of new, expanded, or modified liquefied natural gas (LNG) facilities filed before the FERC; and (2) post-authorization inspections/reviews of the operation and maintenance of existing facilities and minor facility modifications at a facility since the last inspection.

A more detailed description of requirements, dates and place of performance are provided in the attached solicitation document. The FOB point and acceptance point for deliverables are destination (FERC Headquarters, 888 First Street NE, Washington DC 20426.)

The provisions at 52.212-1 Instructions to Offerors–Commercial Items, applies to this acquisition; an addenda to 52-212-1 is provided in the attached solicitation document.

The provision at 52.212-2 Evaluation–Commercial Items does not apply to this acquisition; the evaluation procedures and evaluation criteria are provided in the attached solicitation document.

Offerors shall include a completed copy of the provision at 52.212-3, Offeror Representations and Certifications–Commercial Items, with its offer. If the offeror’s annual representations and certifications are current in the U.S. Government System for Award Management (SAM), the offeror may merely state that the offeror’s representations and certifications are available through SAM in lieu of submitting the annual representations and certifications as part of the offeror’s proposal.

The clause 52.212-4 Contract Terms and Conditions–Commercial Items with Alternate I applies to this acquisition. An addenda to 52-212-4 is provided in the attached solicitation document.

The clause 52.212-5, Contract Terms and Conditions Required To Implement Statutes Or Executive Orders–Commercial Items, applies to this acquisition; additional FAR and other clauses applicable to this acquisition are included in the attached solicitation document.

Defense Priorities and Allocation System (DPAS) does not apply to this acquisition.

Questions regarding this solicitation shall be submitted in electronic format to the contracting officer at glenn.emig@ferc.gov not later than 10:00 AM (EST), March 3, 2015.

Proposals shall be submitted in electronic format to the contracting officer at glenn.emig@ferc.gov not later than 10:00 AM (EST), March 24, 2015.

The point of contact for this acquisition is Glenn Emig, (202) 502-8669, glenn.emig@ferc.gov

B.1 Price/Cost Schedule Item Information

Contract Period: Base POP Begin: 05-01-2015 POP End: 04-30-2016

The labor rate for this CLIN is $TBD.

The estimated value of this CLIN is $TBD (1240 hours at $XX/hour).

This CLIN is funded as projects are assigned to the contractor.

The current funding ceiling is $0.

Contract Period: Base POP Begin: 05-01-2015 POP End: 04-30-2016

Travel in accordance with Federal Travel Regulations and Section 12 of the SOW.

Travel shall be approved in advance by the COR.

The estimated value of this CLIN is $15,000.

The current funding ceiling is $0.

Contract Period: Option 1 POP Begin: 05-01-2016 POP End: 04-30-2017

The labor rate for this CLIN is $TBD.

The estimated value of this CLIN is $TBD (970 hours at $XX/hour).

This CLIN is funded as projects are assigned to the contractor.

The current funding ceiling is $0.

Contract Period: Option 1 POP Begin: 05-01-2016 POP End: 04-30-2017

Travel in accordance with Federal Travel Regulations and Section 12 of the SOW.

Travel shall be approved in advance by the COR.

The estimated value of this CLIN is $15,000.

The current funding ceiling is $0.

Contract Period: Option 2 POP Begin: 05-01-2017 POP End: 04-30-2018

The labor rate for this CLIN is $TBD.

The estimated value of this CLIN is $TBD (740 hours at $XX/hour).

This CLIN is funded as projects are assigned to the contractor.

The current funding ceiling is $0.

Contract Period: Option 2 POP Begin: 05-01-2017 POP End: 04-30-2018

Travel in accordance with Federal Travel Regulations and Section 12 of the SOW.

Travel shall be approved in advance by the COR.

The estimated value of this CLIN is $15,000.

The current funding ceiling is $0.

Contract Period: Option 3 POP Begin: 05-01-2018 POP End: 04-30-2019

The labor rate for this CLIN is $TBD.

The estimated value of this CLIN is $TBD (870 hours at $XX/hour).

This CLIN is funded as projects are assigned to the contractor.

The current funding ceiling is $0.

Contract Period: Option 3 POP Begin: 05-01-2018 POP End: 04-30-2019

Travel in accordance with Federal Travel Regulations and Section 12 of the SOW.

Travel shall be approved in advance by the COR.

The estimated value of this CLIN is $15,000.

The current funding ceiling is $0.

Contract Period: Option 4 POP Begin: 05-01-2019 POP End: 04-30-2020

The labor rate for this CLIN is $TBD.

The estimated value of this CLIN is $TBD (830 hours at $XX/hour).

This CLIN is funded as projects are assigned to the contractor.

The current funding ceiling is $0.

Contract Period: Option 4 POP Begin: 05-01-2019 POP End: 04-30-2020

Travel in accordance with Federal Travel Regulations and Section 12 of the SOW.

Travel shall be approved in advance by the COR.

The estimated value of this CLIN is $15,000.

The current funding ceiling is $0.

GRAND TOTAL

B.2 Statement of Work (02/09/15)

1.0 Objective

The objective of this contract is to provide technical evaluation services on: (1) the process design and hazard review, and the operation and maintenance practices of new, expanded, or modified liquefied natural gas (LNG) facilities filed before the FERC[footnoteRef:1]; and (2) post-authorization inspections/reviews of the operation and maintenance of existing facilities and minor facility modifications at a facility since the last inspection. Services under item (1) are hereafter termed “engineering design review”. Services under item (2) primarily involve a review of on-going operations on an annual or biennial basis at a plant, but it could also entail the deactivation/reactivation of existing facilities or portions of a facility. The technical evaluations under (1) and (2) examine the overall LNG system reliability and safety of new, expanded, or existing LNG facilities. The knowledge gained from these reviews and/or field evaluations is used to complete a Cryogenic Design and Pre-Authorization Manual (“Manual”) during the cryogenic review for a new or expanded facility, or to update the Manual after the inspection of an existing LNG plant. Manuals are the property of the FERC and are not released to the public. [1: Applicants file Resource Reports and the front-end-engineering design in an application made under a “CP” docket number. After review, the FERC will issue an Order either authorizing or denying the construction, operation, and maintenance of the proposed LNG facility. See Sections 157.14, 157.21, 153.7, 153.8 and 380.12 of the Commission regulations under Title 18 of the Code of Federal Regulations for more information on filing content and procedures.]

2.0 Background

The mission of the Office of Energy Projects (OEP) is to foster economic and environmental benefits for the nation through the approval and oversight of LNG projects that are in the public interest.

The FERC regulates the transmission of natural gas in interstate commerce and reviews proposals to build LNG facilities. If an applicant proposes to abandon, construct or operate interstate natural gas facilities, it must secure approval from FERC, in the form of a certificate of public convenience and necessity pursuant to Section 7 of the Natural Gas Act (NGA) for pipeline or storage facilities or an authorization to construct and site a new LNG terminal pursuant to Section 3 of the NGA.

3.0 Scope

The contractor shall examine the design, operation, and maintenance of proposed or existing LNG facilities and provide suggestions and/or recommendations for enhancing their safety, reliability, and design based on professional experience, good engineering practices, federal regulations (i.e., Title 33, Code of Federal Regulations, Part 127 and Title 49, Code of Federal Regulations, Part 193), industry standards, FERC guidance documents, historical or recent industrial accidents and incidents, and problems identified during FERC staff inspections.

The FERC has interstate LNG peak-shaving and storage facilities, and LNG import and export terminals under its jurisdiction. The contractor shall examine all of the equipment, piping, and vessels, including related systems within the plant. LNG facility components and systems subject to review include, but are not limited to: the LNG storage tanks and refrigerant storage tanks/vessels; truck loading/unloading facilities; marine docks and unloading arms; pretreatment, liquefaction, vapor handling, and metering systems; transfer lines; compressors; pumps; vaporizers; heating value reduction systems; natural gas liquids stripping or blending systems; instrument and pneumatic control systems; firewater systems; hazard detection and control systems; spill containment; and all associated equipment/processes. The review also covers the operation, maintenance, management of change, and emergency response philosophies of each facility. This contract does not include thermal and vapor exclusion zone, structural, or seismic design reviews of a facility.

4.0 Description of Services

4.1. New Facility Engineering Design Review

A New Facility Engineering Design Review is the review of an LNG facility that consists of multiple components and systems (i.e., LNG storage tanks; refrigerant storage tanks/vessels; truck transfer facilities; and pretreatment; liquefaction; sendout; and vapor handling systems).

A significantly expanded facility that would add a complex new system(s) to an existing facility (i.e. liquefaction system and/or LNG storage tank system) would also require a New Facility Engineering Design Review. The contractor shall thoroughly examine all aspects of the safety and reliability of the design for the proposed new system(s), including a review of how they would interact with the existing facility.

For new or significantly expanded facilities, the contractor shall review engineering design information filed under the CP docket number. FERC staff shall provide the contractor with one hard copy and CD of this filing. The contractor shall use eLibrary to obtain copies of minor applicant submittals or FERC issuances after the initial application filing.

The contractor, using the information filed under the CP docket number, including Environmental Resource Reports 1, 11, and 13, shall review the design of a new or significantly expanded LNG facility and prepare an engineering data request. The data request shall identify issues or concerns related to the design, operability, reliability, and maintenance of the proposed facilities. Data request questions should be provided to the COR and appropriate FERC staff within 30 days[footnoteRef:2] after receipt of the application. [2: Or the scheduled date determined by coordination with FERC staff.]

A technical conference between the contractor and FERC staff shall occur approximately 2 - 3 months[footnoteRef:3] after an applicant has filed an application under a CP docket number and after the Company[footnoteRef:4] responses to the engineering data request have been reviewed. The purpose of the technical conference is: to discuss the initial findings of the contractor; to review the applicant’s responses to the data request; and to develop a preliminary list of the contractor’s recommendations regarding the proposed design. Depending on the complexity of the proposed design, the technical conference shall be held either in person at FERC headquarters or via teleconference. [3: Or the scheduled date determined by coordination with FERC staff.] [4: “Company” is used synonymously with “Applicant”.]

After conclusion of the technical conference and resolution of any data gaps, the contractor shall provide final recommendations[footnoteRef:5] for the proposed project to FERC staff as soon as possible. The contractor shall also include a brief explanation of each recommendation discussing why it is needed and what the Company will likely need to do to satisfy the recommendation. [5: For a New Facility Engineering Design Review, see the following examples for final recommendations: (1) Final Environmental Impact Statement for the Cameron Liquefaction Project, Docket number CP13-25-000, April 2014, pages 5-22 to 5-28, recommendations 26-76; (2) Environmental Assessment for the Cove Point Liquefaction Project, Docket number CP13-113-000, May 2014, pages 192 to 198, recommendations 28-82; (3) Final Environmental Impact Statement for the Freeport LNG Liquefaction Project and Phase II Modification Project, Docket numbers CP12-509-000 and CP12-29-000, June 2014, pages 5-24 to 5-33, recommendations 23-83. ]

The contractor shall also prepare a camera ready[footnoteRef:6] Manual , including a set of the Piping and Instrumentation Drawings (P&IDs) and other drawings that were used for the design review. The Manual shall also include facility plot plan(s), process flow diagram(s), general tank drawing(s), and hazard detection and hazard control area plans. The drawings to be included in the Manual shall be black ink on white paper and shall be 8.5-inches wide by 11-inches long. Additionally, the Manual shall cover all amendments and supplemental information filed by the Applicant up to the date of the technical conference and all supplemental responses to FERC data requests submitted after the technical conference. [6: A “camera ready” document is complete and ready for immediate printing without further revision by the FERC staff. ]

A New Facility Engineering Design Review shall typically be completed within about 3 to 4 months after the CP application is provided to the contractor. Actual timetables/schedules shall be determined by the FERC staff and may be adjusted as necessary to resolve unexpected issues.

When the contractor has completed the review of a facility and the information is no longer needed, the contractor shall either shred or burn all propriety information, or return it to the COR for disposal. If the contractor chooses to burn or shred the project information, a confirmation/receipt of this action shall be provided to the COR within five (5) days.

For the contract spanning the years 2004 to 2009, twenty-five New Facility Engineering Design Reviews were conducted. Eleven New Facility Engineering Design Reviews are being conducted for the contract spanning the years 2009 to 2014. The number of New Facility Engineering Design Reviews to be conducted under this contract is estimated to be between 5 and 10. However, this is dependent on the actual number of projects for which the Commission receives applications and may vary greatly.

4.2 Partial Facility Engineering Design Review

A Partial Facility Engineering Design Review is the review of a modification to an existing facility design, typically including the addition of major equipment (i.e., compressors, pumps, or vaporizers) or addition of a new non-complex system. A Partial Facility Engineering Design Review would require less time than the review of a new facility or significantly expanded facility. The contractor shall thoroughly examine all aspects of the safety and reliability of the design for the proposed new equipment/system, including a review of how it would interact with the existing plant. The level of review required for completion of the deliverables under this review option is the same as that used for a New Facility Engineering Design Review except it shall focus only on the new equipment and its impact on the existing facility, if any. The contractor shall prepare and provide the same deliverables as for the New Facility Engineering Design Review.

When the contractor has completed the review of a facility and the information is no longer needed the contractor shall either shred or burn all propriety information, or return it to the COR for disposal. If the contractor chooses to burn or shred the project information, a confirmation/receipt of this action shall be provided to the COR within five (5) days.

For the contract spanning years 2004 through 2009, one Partial Facility Engineering Design Review was conducted. Three Partial Facility Engineering Design Reviews were conducted for the contract spanning the years 2009 to 2014. The number of Partial Facility Engineering Design Reviews to be conducted under this contract is estimated to be between 1 and 3. However, this is dependent on the actual number of projects for which the Commission receives applications and may vary greatly.

4.3 Post-Authorization Reviews

If the proposed project receives an Order granting authorization, the project will enter into the next phase known as “post-authorization.” During the post-authorization phase, the design is further developed and modifications to the approved design, resulting from both the detailed engineering and any conditions contained in the FERC Order, are filed with the Commission for review. FERC staff may, on a case by case basis, request the contractor to review design modifications, significantly altered designs, or for compliance with the applicable final recommendations from the facility review which were adopted into the Commission Order. Hard copies of the design filings that need to be reviewed shall be provided to the contractor. Additionally, the contractor may also be consulted in the event of an incident occurrence at a facility.

4.4 Existing Facility Inspection

The contractor shall prepare for, and conduct with FERC staff, a site inspection of an existing LNG facility using P&IDs, engineering drawings, semi-annual operational reports, and other pertinent information provided by FERC staff. The FERC staff shall send the contractor copies of the semi-annual operational reports and any pertinent material, including a copy of the last Manual prepared for the existing facility. Any questions resulting from reviewing the provided pre-inspection material shall be provided to the COR and appropriate FERC staff one week prior the scheduled inspection.

The site inspection entails a visual inspection of all areas in the plant, review of selected operations and/or maintenance procedures and records, and discussion of operating problems or other issues that have affected plant operations since the last inspection. During the inspection, the contractor shall be required to fill out inspection forms for each facility area. At the end of the inspection the contractor and FERC staff shall brief plant personnel with their preliminary findings. After the inspection, the contractor shall provide FERC staff with the final recommendations/conclusions within 10 days after the site visit. The contractor shall also prepare an updated Manual and Summary Assessment for the facility that discusses the findings of the inspection and documents how any recommendations made at the last inspection were resolved. The contractor shall also update the Manual as needed to correct any problems with its content that are found during the course of the facility review/inspection. The inspection forms that were completed during the site inspection shall be included within its respective section in the Manual. The contractor shall complete the Manual for a biennial/annual inspection within 45 days after the site visit unless a different schedule is established by the COR.

When the contractor has completed the review of a facility and the information is no longer needed, the contractor shall either shred or burn all propriety information, or return it to the COR for disposal. If the contractor chooses to burn or shred the project information, a confirmation/receipt of this action shall be provided to the COR.

The FERC staff typically inspects import/export facilities annually and peak-shaving plants biennially. Currently, FERC staff conducts approximately 20 existing facility inspections per year. A list of facilities subject to FERC inspection can be found at http://www.ferc.gov/industries/gas/indus-act/lng.asp.[footnoteRef:7] FERC staff shall notify the contractor when he/she is required to attend an annual/biennial inspection. In general, the contractor shall, with the assistance of FERC staff, conduct approximately 20% of the total inspections scheduled per year (4 inspections). However, the actual number of inspections may vary based on the workload related to new facility applications, as well as the operational status of existing facilities, and shall be determined by the FERC staff. [7: Maps of existing jurisdictional facilities can be found under “Existing FERC Jurisdictional LNG Import/Export Terminals” and “FERC Jurisdictional Peakshavers.”]

4.5 Incidental Technical Consultation

FERC staff may request technical consulting regarding a design issue, operating problem, or aspects of proposed or existing regulations or other issues unrelated to a specific review/inspection assigned to the contractor. The government anticipates that the incidental technical consulting work will involve approximately 50 hours per year; however, the technical consulting hours could be as high at 200 hours per year.

5.0 Deliverables

5.1 New Facility or Partial Facility Engineering Design Review

1) Project design review and engineering data request – The contractor shall conduct a review of the project’s engineering design information and shall submit a summary of the technical evaluation to FERC staff as indicated within the Scope of Work.

In addition, as a result of the engineering design review, the contractor shall prepare engineering data request questions related to the proposed facility design. The technical evaluation summary and questions shall generally be provided to the COR and appropriate FERC staff 30 days[footnoteRef:8] after the contractor’s receipt of the CP application. Actual timetables/schedules shall be determined by the FERC staff and may be adjusted as necessary to resolve unexpected issues. The questions shall include a basis for the question (reason for the question), references to the application (i.e. P&ID number(s), design specifications), and any background information that would be helpful in understanding the question. [8: Thirty (30) days refers to a New Facility Engineering Design Review. For a Partial Project Engineering Design Review, the schedule will be determined by the COR and FERC staff.]

2) Technical conference and recommendations – The contractor shall participate in a technical conference with FERC staff by reviewing the Company responses to the engineering data request and determining whether the response meets the intent of the question.

After the technical conference, the contractor shall develop a list of final recommendations which shall generally be provided to the COR and appropriate FERC staff one week after the technical conference is held. Actual timetables/schedules shall be determined by the FERC staff and may be adjusted as necessary to resolve unexpected issues. The contractor shall also include a brief explanation after each recommendation discussing why it is needed and what the Company would likely need to do to satisfy the recommendation.

3) Manual - The contractor shall complete a Manual for each New Facility Partial Facility Engineering Design Review which includes a Summary Assessment detailing the contractor’s major findings of the project review and the recommendations. A template for the Manual and Summary Assessment are available upon request (see instructions provided on the bottom of page 8).

5.2 Post-Authorization Reviews

1) Design filing review and comments – On a case by case basis, the contractor shall review design filings submitted by the Company. Examples of these filings include: modifications made to the original design (which was reviewed under the New Facility or Partial Facility Engineering Design Review) or information related to design development (i.e., final plot plans, P&IDs, equipment specifications). In addition, filings related to specific engineering recommendations, resulting from the New Facility or Partial Facility Engineering Design Review and which were adopted by the Commission, may also need to be reviewed. The contractor may also be consulted in the event of an incident occurrence at a facility. Any comments shall be provided to the COR and appropriate FERC staff.

5.3 Existing Facility Inspection

1) Inspection preparation and pre-inspection questions – The contractor shall prepare for the inspection by reviewing semi-annual reports, the most recent Manual, and any other pertinent information provided by FERC staff. FERC staff shall provide the contractor with the latest Manual including any Inspection Forms that have been previously used for the facility. Any questions specifically related to the facility’s design and/or semi-annual reports shall be provided to the COR and appropriate FERC staff one week prior to the scheduled inspection. Actual timetables/schedules shall be determined by the FERC staff and may be adjusted as necessary to resolve unexpected issues.

2) Facility inspection and recommendations – The contractor shall participate in the facility inspection and fill out the inspection forms provided by FERC staff. After the inspection, the contractor shall provide a list of final recommendations one week after the inspection is completed to the COR and appropriate FERC staff. Actual timetables/schedules shall be determined by FERC staff and may be adjusted as necessary to resolve unexpected issues.

3) Manual and inspection forms – The contractor shall complete a Manual including a Summary Assessment. The Summary Assessment shall include the contractor’s major findings of the inspection and recommendations. The Summary Assessment shall also discuss the status of the last inspection’s recommendations, if any. The Inspection Forms should also be included in the Manual. A template for the Manual, Summary Assessment, and Inspection Forms are available upon request (see instructions provided on the bottom of page 8).

All deliverables shall be submitted electronically to the COR using software compatible with FERC’s operating system and standard desktop program. FERC’s current operating system and standard desktop program is Windows 7 Enterprise copyrighted 2009 and standard desktop program is Microsoft Office 2010. However, for the Manual, one hardcopy of the camera-ready Manual including the electronic file(s) on a CD should be provided to the COR. All CD copies must be readable by the software currently in use by the Government. The contractor should also include one electronic copy of the Manual on a compact disk in Word 2010 and/or Excel 2010.

Examples of public information and deliverables or work products that are associated with this proposal can be viewed at FERC.gov.

The following item is posted at this site:

1. Preferred Submittal Format Guidance Applications (Docket No. AD06-4). This lists the types of information a company needs to file depending upon the type LNG facility and/or systems being proposed, and provides a format for the filing’s information. Go to:

http://elibrary.ferc.gov/idmws/common/OpenNat.asp?fileID=10997105

The information below and work products associated with this proposal is provided on a CD and can only be obtained by sending a request to Glenn Emig at glenn.emig@ferc.gov.

1. Examples of a blank Cryogenic Design and Inspection Manual.

1. Examples of blank inspection forms that are used during annual or biennial site inspections of existing facilities.

1. Examples of some typical semi-annual operational reports. (These company filed reports are used to prepare for site inspections of existing facilities. Typically two reports are reviewed for an annual inspection, and four reports are reviewed for a biennial inspection.)

6.0 Personnel Qualifications for the Chemical or Mechanical Engineer

Functions: The engineer must have sufficient technical expertise and experience to recognize potential and actual flaws in the design of an LNG facility and determine whether the design would need modifications. Emphasis shall be placed on the safe design, operability, and reliability of the facilities, including their possible interactions with existing/adjacent equipment. The basis of review shall include good engineering practices, federal regulations, industry standards, FERC guidance documents, prior experience, precedents, and engineering knowledge.

Education: Bachelor’s degree in chemical or mechanical engineering.

Experience: Personnel qualifications must demonstrate a minimum of five (5) years experience in design, operations, maintenance, safety, and/or fire protection engineering experience at industrial facilities or engineering firms with particular emphasis on processes involving hydrocarbon or cryogenic fluids (liquid oxygen, nitrogen, LNG). Experience from inspecting industrial facilities and working as an engineering design and procurement contractor can also be used to demonstrate relevant work experience. Prior work experience associated with LNG facilities or other cryogenic fluids is more heavily valued and preferred over experience in other industrial facilities that do not involve the construction, operation, and maintenance of processes that handle cryogenic fluids.

7.0 Technical Requirements

7.1 The contractor shall furnish all labor, materials, equipment (including cameras), facilities, software, transportation, and incidentals necessary to perform in accordance with this SOW, and associated terms and conditions. The contractor shall communicate with the FERC COR, FERC Project Manager, and company representatives as necessary to ensure all project related tasks are performed in a timely manner.

7.2 The contractor shall have the capability to respond to “emergency situations” involving either construction or operations related problems within one week of receiving notice from the COR. The duties include: investigation of the root cause of the problem and proposing remediation measures.

7.3 A one day kick-off meeting shall be held with the contractor at the FERC Headquarters Office in Washington, D.C. or via teleconference. Arrangements for this meeting shall be coordinated with the COR within 30 days of the award. The contractor shall prepare notes of this meeting, highlighting all agreements made with FERC staff on any technical decisions made during the meeting, directions as to how the reviews shall be handled, etc.

7.4 A deliverable is defined as any document/report that is required to be generated during the period of performance of the contract as outlined in the SOW. The contractor shall submit deliverables through the COR for review and approval. The COR shall respond to the deliverables submitted with a formal approval or non-approval. Deliverables shall be submitted via email using software compatible with FERC’s systems along with a hard copy. In the event that document exceeds the email capacity of either party, the contractor shall setup a secure file transfer site for transfer of large documents. All deliverables are the property of the FERC and the information contained in the reports is considered proprietary.

7.5 The contractor shall be expected to participate in technical conferences with FERC staff. Based upon the studies, conferences, and inspections, the contractor shall submit reports to the FERC staff setting forth the technical evaluation, recommendations, and conclusions for the various work efforts listed above.

7.6 The contractor shall promptly notify the FERC Project Manager and COR of any noncompliance resulting in significant impact and if a scheduling change is necessary to complete the assigned task. In no case shall this notification exceed 24 hours.

8.0 Schedule of Performance

Unless otherwise indicated, the tasks described in this SOW shall be accomplished by the contractor, with review and approval by the COR and FERC staff, according to the following estimated schedule:

New Facility Engineering Design Review

Partial Facility Engineering Design Review

Post-Authorization Review

Existing Facility Inspection

9.0 Place of Performance

The primary place of performance is the contractor’s facility with travel within the U.S.

10.0 Communication Protocol

FERC staff shall obtain and provide the contractor with the necessary initial background and technical material including facility specifications and design details appropriate to the individual projects.[footnoteRef:15]11 This information shall serve as a basis for each review. FERC staff shall be responsible for scheduling/coordinating all work with the LNG facility applicant/owner. [15: 11 The technical material that shall be provided may include proprietary and trade secret design information. The Company filing the application may request that the contractor sign a Confidentiality Agreement prior to the start of review. Refer to the “Confidentiality of Information” section on page 9 for more details.]

The contractor as needed, shall make arrangements to meet with the COR (in person, by teleconference, etc.) to obtain additional direction and clarification on the task assignment and/or individual inspections. Regular interaction between the contractor and the COR is expected to occur to ensure that both parties are informed of ongoing developments.

The contractor shall also be responsible for participating in technical conferences, and conducting site inspections and related studies with FERC staff. Based upon the technical conferences, site inspections, and related studies, the contractor shall submit reports and findings to FERC staff. Reports and findings include a written technical evaluation, recommendations, conclusions, and a Manual for each technical conference and site inspection.

11.0 Applicable Documents

The applicable documents needed to complete any of the services described in section 4.0 shall be provided by the COR. These documents are filed with FERC and may be filed by the Applicant as public, privileged and confidential, or critical energy infrastructure information (CEII) in FERC’s eLibrary System (eLibrary). Upon submission and approval of the Organizational Conflict of Interest (OCI) and CEII Non-Disclosure Agreement (NDA) certifications FERC shall provide the contractor access to the necessary engineering reports and correspondence. The COR may provide additional materials upon request and/or may direct the contractor to obtain materials directly from eLibrary.

When the contractor has completed the review of a facility and the information is no longer needed, the contractor shall either shred or burn all propriety information, or return it to the COR for disposal. If the contractor chooses to burn or shred the project information, a confirmation/receipt of this action shall be provided to the COR within five (5) days.

12.0 Travel

12.1 All travel shall be approved in writing by the COR.

12.2 The contractor shall coordinate travel arrangements for travel with FERC staff for performing site visits. Travel expenses shall be reimbursed according to federal travel regulations and FERC policy. Special transportation methods (e.g. helicopter, small plane, or boat) are not required for this contract. The contractor shall coordinate payment arrangements with the COR for submission to FERC’s Division of Financial Services.

Note: The contractor shall not generally accept rides in company vehicles without sufficient justification. However, it is understood that safety concerns and ground conditions at an inspection site may dictate the need to use four-wheel drive or an all-terrain vehicle, and the contractor is permitted to ride in a company representative’s vehicle to complete the inspection without reimbursement to the company.

13.0 Quality Assurance/Control

13.1 This section supplements FAR 52.212-4, paragraph (a) which is incorporated into the contract by reference on page 1 of the contract.

13.2 All final documents shall be reviewed and edited by the contractor to ensure that the document is both technically and grammatically correct. Final documents shall be organized in a logical manner.

13.3 The contractor shall only tender for acceptance those deliverables that conform to the requirements of this contract. The Government reserves the right to inspect all deliverables that have been tendered for acceptance. The Government may require correction of non-conforming deliverables at no increase in price. If correction is not possible, the Government may seek an equitable price adjustment or adequate consideration for acceptance of the non-conforming deliverables.

14.0 Special Contract Requirements

14.1 Confidentiality of Information

(a) To the extent that the work under this contract requires that the contractor be given access to confidential or proprietary business, technical, or financial information belonging to the government or other companies, the contractor shall, after receipt thereof, treat such information as confidential and agree not to appropriate such information to its own use or to disclose such information to third parties unless specifically authorized by the Contracting Officer in writing. The foregoing obligations, however, shall not apply to:

1. Information which, at the time of receipt by the contractor, is in the public domain;

1. Information which is published after receipt thereof by the contractor or otherwise becomes part of the public domain through no fault of the contractor;

1. Information which the contractor can demonstrate was in its possession at the time of receipt thereof and was not acquired directly or indirectly from the Government or other companies;

1. Information which the contractor can demonstrate was received from a third party who did not require the contractor to hold it in confidence.

(b) The contractor shall obtain the written agreement, in a form satisfactory to the Contracting Officer, of each employee permitted access, whereby the employee agrees that he/she shall not discuss, divulge or disclose any such information or data to any person or entity except those persons within the contractor’s organization directly concerned with the performance of the contract.

(c) The contractor agrees, if requested by the Government, to sign an agreement identical, in all material respects, to the provisions of this clause, with each company supplying information to the contractor under this contract, and to supply a copy of such agreement to the Contracting Officer. From the time upon request of the Contracting Officer, the contractor shall supply the Government with reports itemizing information received as confidential or proprietary and setting forth the company or companies from which the contractor received such information.

(d) The contractor agrees, that upon request by FERC, it shall execute a FERC-approved agreement with any party whose facilities or proprietary data it is given access to or is furnished, restricting use and disclosure of the data or the information obtained from the facilities. Upon request by FERC, such an agreement shall also be signed by contractor personnel.

14.2 Organizational Conflict of Interest (OCI)

Immediately upon assignment of a Contractor (Offeror) to a new project and prior to incurrence of any review or inspection-related costs, the Offeror shall prepare and submit one hard copy and one electronic copy of a No Conflict of Interest Statement as required by 40 CFR § 1506.5(c) to the Contracting Office (Contract Specialist), the Contracting Officer's Representative, and the Office of the General Counsel - Administrative Law staff. In the alternative, if the Offeror decides that the appearance of a conflict of interest is possible or that a conflict exists, the Offeror shall submit a full disclosure statement, describing the circumstances or conditions that create the conflict and any mitigating measures the Offeror intends to implement to resolve the conflict or the appearance of a conflict. If no mitigation shall suffice, the Offeror shall not be assigned to that particular Task. The Offeror shall also assure that each of the proposed subcontractors on the team for this Task has submitted to FERC, a No Conflict of Interest Statement, if the subcontractors are to be used. In addition, the Offeror shall submit a plan for how it shall handle any potential conflicts which may arise during the performance period.

SECTION C - CONTRACT CLAUSES

C.1 52.212-4 CONTRACT TERMS AND CONDITIONS—COMMERCIAL ITEMS (MAY 2014) ALTERNATE I (MAY 2014)

(a) Inspection/Acceptance.

(1) The Government has the right to inspect and test all materials furnished and services performed under this contract, to the extent practicable at all places and times, including the period of performance, and in any event before acceptance. The Government may also inspect the plant or plants of the Contractor or any subcontractor engaged in contract performance. The Government will perform inspections and tests in a manner that will not unduly delay the work.

(2) If the Government performs inspection or tests on the premises of the Contractor or a subcontractor, the Contractor shall furnish and shall require subcontractors to furnish all reasonable facilities and assistance for the safe and convenient performance of these duties.

(3) Unless otherwise specified in the contract, the Government will accept or reject services and materials at the place of delivery as promptly as practicable after delivery, and they will be presumed accepted 60 days after the date of delivery, unless accepted earlier.

(4) At any time during contract performance, but not later than 6 months (or such other time as may be specified in the contract) after acceptance of the services or materials last delivered under this contract, the Government may require the Contractor to replace or correct services or materials that at time of delivery failed to meet contract requirements. Except as otherwise specified in paragraph (a)(6) of this clause, the cost of replacement or correction shall be determined under paragraph (i) of this clause, but the "hourly rate" for labor hours incurred in the replacement or correction shall be reduced to exclude that portion of the rate attributable to profit. Unless otherwise specified below, the portion of the "hourly rate" attributable to profit shall be 10 percent. The Contractor shall not tender for acceptance materials and services required to be replaced or corrected without disclosing the former requirement for replacement or correction, and, when required, shall disclose the corrective action taken. [Insert portion of labor rate attributable to profit.] (5)(i) If the Contractor fails to proceed with reasonable promptness to perform required replacement or correction, and if the replacement or correction can be performed within the ceiling price (or the ceiling price as increased by the Government), the Government may—

(A) By contract or otherwise, perform the replacement or correction, charge to the Contractor any increased cost, or deduct such increased cost from any amounts paid or due under this contract; or

(B) Terminate this contract for cause.

(ii) Failure to agree to the amount of increased cost to be charged to the Contractor shall be a dispute under the Disputes clause of the contract.

(6) Notwithstanding paragraphs (a)(4) and (5) above, the Government may at any time require the Contractor to remedy by correction or replacement, without cost to the Government, any failure by the Contractor to comply with the requirements of this contract, if the failure is due to—

(i) Fraud, lack of good faith, or willful misconduct on the part of the Contractor's managerial personnel; or

(ii) The conduct of one or more of the Contractor's employees selected or retained by the Contractor after any of the Contractor's managerial personnel has reasonable grounds to believe that the employee is habitually careless or unqualified.

(7) This clause applies in the same manner and to the same extent to corrected or replacement materials or services as to materials and services originally delivered under this contract.

(8) The Contractor has no obligation or liability under this contract to correct or replace materials and services that at time of delivery do not meet contract requirements, except as provided in this clause or as may be otherwise specified in the contract.

(9) Unless otherwise specified in the contract, the Contractor's obligation to correct or replace Government-furnished property shall be governed by the clause pertaining to Government property.

(b) Assignment. The Contractor or its assignee may assign its rights to receive payment due as a result of performance of this contract to a bank, trust company, or other financing institution, including any Federal lending agency in accordance with the Assignment of Claims Act (31 U.S.C. 3727). However, when a third party makes payment (e.g., use of the Governmentwide commercial purchase card), the Contractor may not assign its rights to receive payment under this contract.

(c) Changes. Changes in the terms and conditions of this contract may be made only by written agreement of the parties.

(d) Disputes. This contract is subject to 41 U.S.C. chapter 71, Contract Disputes. Failure of the parties to this contract to reach agreement on any request for equitable adjustment, claim, appeal or action arising under or relating to this contract shall be a dispute to be resolved in accordance with the clause at FAR 52.233-1, Disputes, which is incorporated herein by reference. The Contractor shall proceed diligently with performance of this contract, pending final resolution of any dispute arising under the contract.

(e) Definitions.

(1) The clause at FAR 52.202-1, Definitions, is incorporated herein by reference. As used in this clause—

(i) Direct materials means those materials that enter directly into the end product, or that are used or consumed directly in connection with the furnishing of the end product or service.

(ii) Hourly rate means the rate(s) prescribed in the contract for payment for labor that meets the labor category qualifications of a labor category specified in the contract that are—

(A) Performed by the contractor;

(B) Performed by the subcontractors; or

(C) Transferred between divisions, subsidiaries, or affiliates of the contractor under a common control.

(iii) Materials means—

(A) Direct materials, including supplies transferred between divisions, subsidiaries, or affiliates of the contractor under a common control;

(B) Subcontracts for supplies and incidental services for which there is not a labor category specified in the contract;

(C) Other direct costs (e.g., incidental services for which there is not a labor category specified in the contract, travel, computer usage charges, etc.);

(D) The following subcontracts for services which are specifically excluded from the hourly rate: [Insert any subcontracts for services to be excluded from the hourly rates prescribed in the schedule.]; and

(E) Indirect costs specifically provided for in this clause.

(iv…