Solicitation___FERC-17-Q-0007.pdf

Federal Energy Request for Quotation (RFQ) No. FERC-17-Q-0007 Regulatory Commission

Combined Synopsis/Solicitation for Liquefied Natural Gas (LNG) Post-Authorization Compliance Inspections for the Federal Energy Regulatory Commission

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; quotations are being requested and a written solicitation (SF1449) will not be issued.

The solicitation number is FERC-17-Q-0007. The solicitation is issued as a request for quotation (RFQ).

The solicitation document and incorporated provisions and clauses are those in effect through Federal Acquisition Circular 2005-93, effective 16 December 2016.

This procurement is a total set-aside for small businesses. The NAICS code for this procurement is 541620 (Environmental Consulting Services); the small business size standard is $15M.

This combined synopsis solicitation contains sixty (60) firm-fixed price line items in section B.1 Cost/Schedule of the solicitation.

The objective of this requirement is to procure site inspection services for post-authorization construction of Liquefied Natural Gas (LNG) projects to ensure adherence to FERC’s inspection goals.

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 applies to this acquisition; an addenda to 52-212-2 is 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 quotation.

The clause 52.212-4 Contract Terms and Conditions–Commercial Items applies to this procurement. 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 contract specialist at jeff.martin@ferc.gov, not later than 10:00 AM (EST), January 11, 2017.

Quotations shall be submitted in electronic format to the contract specialist at jeff.martin@ferc.gov not later than 10:00 AM (EST), January 31, 2017.

mailto:jeff.martin@ferc.gov

Table of Contents

Combined Synopsis/Solicitation for Liquefied Natural Gas (LNG) Post-Authorization Compliance Inspections for the Federal Energy Regulatory Commission

SECTION B – SCHEDULE

B.1 PRICE/COST SCHEDULE

B.2 MINIMUM AND MAXIMUM AMOUNTS –LOCAL CLAUSE

B.3 STATEMENT OF WORK

SECTION C - CONTRACT CLAUSES

C.1 52.252-2 -- CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

C.2 52.212-5 -- CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR

EXECUTIVE ORDERS—COMMERCIAL ITEMS (MAY 2015)

C.3 ADDENDUM TO FAR 52.212-4 -- CONTRACT TERMS AND CONDITIONS—COMMERCIAL ITEMS

C.4 52.216-18 -- ORDERING (OCT 1995)

C.5 52.216-19 -- ORDER LIMITATIONS (OCT 1995)

C.6 52.216-22 -- INDEFINITE QUANTITY (OCT 1995)

C.7 52.217-8 -- OPTION TO EXTEND SERVICES (NOV 1999)

C.8 952.209-72 -- ORGANIZATIONAL CONFLICTS OF INTEREST (AUG 2009)

C.9 952.215-70 -- KEY PERSONNEL (DEC 2000)

C.10 INVOICING -- LOCAL PROVISION

C.11 CONTRACTING OFFICER REPRESENTATIVE (COR) APPOINTMENT--LOCAL PROVISION

SECTION D - CONTRACT DOCUMENTS, EXHIBITS, OR ATTACHMENTS

D.1 ID/IQ ORDERING PROCEDURES

D.2 LNG POST-AUTHORIZATION INSPECTION PRICING MODEL

D.3 ORGANIZATIONAL CONFLICT OF INTEREST DISCLOSURE STATEMENT FORM

D.4 ORGANIZATIONAL CONFLICT OF INTEREST QUESTIONNAIRE

D.5 NON-DISCLOSURE AGREEMENT

SECTION E - SOLICITATION PROVISIONS

E.1 52.252-1 – SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998)

E.2 52.216-1 -- TYPE OF CONTRACT (APR 1984)

E.3 52.233-2 -- SERVICE OF PROTEST (SEP 2006)

E.4 ADDENDUM TO FAR 52.212-1 -- INSTRUCTIONS TO OFFERORS—COMMERCIAL ITEMS

E.5 52.212-2 -- EVALUATION—COMMERCIAL ITEMS (OCT 2014)

E.6 ADDENDUM TO FAR 52.212-2 -- EVALUATION-COMMERCIAL ITEMS (OCT 2014)

E.7 52.212-3 -- OFFEROR REPRESENTATIONS AND CERTIFICATIONS—COMMERCIAL ITEMS (MAR

2015)

E.8 952.209-8 -- ORGANIZATIONAL CONFLICTS OF INTEREST-DISCLOSURE (JUN 1997)

SECTION B – SCHEDULE

B.1 PRICE/COST SCHEDULE

The contract period of performance is from the date of award thru a five (5) year effective period and a five (5) year ordering period. There are no option periods structured in the contract. All resulting task orders awarded from this ID/IQ contract will be priced during the corresponding contract ordering period, based upon the Firm-Fixed Unit Prices Below:

Firm-Fixed Unit Pricing for Inspections During ID/IQ Ordering Period I Ordering Period: 4/01/2017 – 3/31/2018

CLIN Description Unit of Measure Estimated Quantity Firm Fixed Unit Price

0001AA 1/2 day, complexity level 1 inspection Each 13 $ TBD

0001AB 1/2 day, complexity level 2 inspection Each 0 $ TBD

0001AC 1/2 day, complexity level 3 inspection Each 0 $ TBD

0001BA 1 day, complexity level 1 inspection Each 0 $ TBD

0001BB 1 day, complexity level 2 inspection Each 13 $ TBD

0001BC 1 day, complexity level 3 inspection Each 4 $ TBD

0001CA: 2 day, complexity level 1 inspection Each 0 $ TBD

0001CB: 2 day, complexity level 2 inspection Each 4 $ TBD

0001CC: 2 day, complexity level 3 inspection Each 0 $ TBD

0001DA: 3 day, complexity level 1 inspection Each 0 $ TBD 0001DB: 3 day, complexity level 2 inspection Each 0 $ TBD 0001DC: 3 day, complexity level 3 inspection Each 0 $ TBD

Firm-Fixed Unit Pricing for Inspections During ID/IQ Ordering Period II

Ordering Period: 4/01/2018 – 3/31/2019

CLIN Description Unit of Measure Estimated Quantity Firm Fixed Unit Price

1001AA 1/2 day, complexity level 1 inspection Each 11 $ TBD

1001AB 1/2 day, complexity level 2 inspection Each 0 $ TBD

1001AC 1/2 day, complexity level 3

1001BA 1 day, complexity level 1 inspection Each 4 $ TBD

1001BB 1 day, complexity level 2 inspection Each 22 $ TBD

1001BC 1 day, complexity level 3 inspection Each 0 $ TBD

1001CA: 2 day, complexity level 1 inspection Each 0 $ TBD

1001CB: 2 day, complexity level 2 inspection Each 4 $ TBD

1001CC: 2 day, complexity level 3 inspection Each 6 $ TBD

1001DA: 3 day, complexity level 1 inspection Each 0 $ TBD

1001DB: 3 day, complexity level 2 inspection Each 0 $ TBD

1001DC: 3 day, complexity level 3 inspection Each 0 $ TBD

Firm-Fixed Unit Pricing for Inspections During ID/IQ Ordering Period III

Ordering Period: 4/01/2019 – 3/31/2020

CLIN Description Unit of Measure Estimated Quantity Firm Fixed Unit Price

2001AA 1/2 day, complexity level 1 inspection Each 23 $ TBD

2001AB 1/2 day, complexity level 2 inspection Each 4 $ TBD

2001AC 1/2 day, complexity level 3

2001BA 1 day, complexity level 1 inspection Each 6 $ TBD

2001BB 1 day, complexity level 2 inspection Each 33 $ TBD

2001BC 1 day, complexity level 3 inspection Each 2 $ TBD

2001CA: 2 day, complexity level 1 inspection Each 0 $ TBD

2001CB: 2 day, complexity level 2 inspection Each 0 $ TBD

2001CC: 2 day, complexity level 3 inspection Each 7 $ TBD

2001DA: 3 day, complexity level 1 inspection Each 0 $ TBD

2001DB: 3 day, complexity level 2 inspection Each 0 $ TBD

2001DC: 3 day, complexity level 3 inspection Each 0 $ TBD

Firm-Fixed Unit Pricing for Inspections During ID/IQ Ordering Period IV

Ordering Period: 4/01/2020 – 3/31/2021

CLIN Description Unit of Measure Estimated Quantity Firm Fixed Unit Price

3001AA 1/2 day, complexity level 1 inspection Each 12 $ TBD

3001AB 1/2 day, complexity level 2 inspection Each 0 $ TBD

3001AC 1/2 day, complexity level 3

B.2 MINIMUM AND MAXIMUM AMOUNTS –LOCAL CLAUSE

During the period specified in the "Ordering" clause, the Government shall place orders totaling a minimum of $10,000.00 over effective period of the contract. The total amount of all orders shall not exceed $3,000,000.00.

3001BA 1 day, complexity level 1 inspection Each 8 $ TBD

3001BB 1 day, complexity level 2 inspection Each 36 $ TBD

3001BC 1 day, complexity level 3 inspection Each 9 $ TBD

3001CA: 2 day, complexity level 1 inspection Each 0 $ TBD

3001CB: 2 day, complexity level 2 inspection Each 4 $ TBD

3001CC: 2 day, complexity level 3 inspection Each 8 $ TBD

3001DA: 3 day, complexity level 1 inspection Each 0 $ TBD

3001DB: 3 day, complexity level 2 inspection Each 0 $ TBD

3001DC: 3 day, complexity level 3 inspection Each 0 $ TBD

Firm-Fixed Unit Pricing for Inspections During ID/IQ Ordering Period V

Ordering Period: 4/01/2021 – 3/31/2022

CLIN Description Unit of Measure Estimated Quantity Firm Fixed Unit Price

4001AA 1/2 day, complexity level 1 inspection Each 0 $ TBD

4001AB 1/2 day, complexity level 2 inspection Each 0 $ TBD

4001AC 1/2 day, complexity level 3

4001BA 1 day, complexity level 1 inspection Each 4 $ TBD

4001BB 1 day, complexity level 2 inspection Each 20 $ TBD

4001BC 1 day, complexity level 3 inspection Each 12 $ TBD

4001CA: 2 day, complexity level 1 inspection Each 0 $ TBD

4001CB: 2 day, complexity level 2 inspection Each 8 $ TBD 4001CC: 2 day, complexity level 3 inspection Each 12 $ TBD

4001DA: 3 day, complexity level 1 inspection Each 0 $ TBD

4001DB: 3 day, complexity level 2 inspection Each 0 $ TBD

4001DC: 3 day, complexity level 3 inspection Each 1 $ TBD

B.3 STATEMENT OF WORK

1.0 Objective

The objective of this contract is to procure site inspection services for post-authorization construction of Liquefied Natural Gas (LNG) projects to ensure adherence to FERC’s inspection goals.

2.0 Introduction

The Federal Energy Regulatory Commission (FERC or Commission) requires a contractor to assist with post-authorization compliance inspections of liquefied natural gas (LNG) facilities authorized by the FERC. FERC performs approximately five post-authorization compliance inspections each year per construction project, with contractor support generally performing 50 percent of these inspections. The number of inspections during the contract period is highly dependent on if and when projects are approved and move forward with construction. In addition, projects may require a varying amount of soil stabilization which could impact when the LNG inspections commence. At the current time, there are six LNG projects under construction, with the expectation that several additional LNG projects may commence construction in the coming years.

This Statement of Work (SOW) describes the services required for the LNG facility inspection activities. As part of this effort, the contractor is expected to manage, schedule, conduct, and report on inspections assigned to the contractor. The contractor shall have a team of inspectors available to perform field inspections of Commission jurisdictional LNG projects at various locations across the United States during active construction, commissioning, and commencement of service phases. FERC anticipates that the majority of the inspections will focus on the Louisiana and Texas region; however, the concentration of inspections could change based on industry trends.

Inspectors will document and report compliance with environmental conditions identified in Commission Orders and associated engineering requirements.

Whereas, the contractor performed inspections supplement FERC performed inspections, the contractor shall use the same methodologies, checklists, and forms used by FERC personnel.

3.0 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. Companies that propose to construct, operate, and maintain jurisdictional LNG facilities must secure approval from FERC in the form of an Order Issuing Certificate or Order Issuing Authorization. To monitor compliance with its orders and regulations, FERC conducts on-site engineering inspections during and after construction of approved LNG facilities, and sometimes in conjunction with other federal, state and local agencies. The engineering requirements that apply to any individual project will vary depending upon project-specific designs and the applicable regulations. The typical project requiring inspection services includes construction of LNG facilities under Section 3 of the NGA and Part 153 of the Commission’s regulations.

The schedule of compliance inspections shall ensure a credible FERC presence during project construction and assist FERC in meeting its compliance inspection performance goals. The estimated number of LNG construction inspections is expected to increase significantly as LNG export projects are approved and move forward with construction. On average, the contractor will perform one to three inspections per month, with the possibility of inspections occurring simultaneously; however, workload will reflect seasonal variability due to weather conditions and industry wide construction effort. There are two general purpose categories of compliance inspections:

• The construction inspection occurs during the active construction phases of the project, between initial site preparation and up to the commissioning stage. Construction inspections are mandatory for any jurisdictional LNG facility and the required frequency of construction inspections are every 8 weeks per construction project.

• The commissioning and in-service inspection covers a period beginning from the preparation for testing the integrity of onsite mechanical installation up to placing equipment in service. During commissioning, natural gas or hazardous fluids may be introduced for the purpose of preparing and testing equipment installation or for cooling equipment. Therefore, during the commissioning stage, the required frequency of inspections may be more frequent than every 8 weeks in order to ensure related conditions are completed and systems are in place prior to introducing natural gas or hazardous fluids.

Due to the phased nature of construction, multiple categories of inspections may occur simultaneously (e.g.

construction/commissioning inspections).

Field inspections are documented with photographs, field check lists, and a detailed report of activities and findings.

When the inspection reveals a compliance issue, FERC requires corrective actions to bring the project into compliance. To establish a standard metric, FERC identifies compliance issues as “noncompliances”.

• A noncompliance is an activity that violates the projects’ design and construction specifications, failure to meet QA/QC requirements, performance of unapproved work, and failure of equipment and systems to pass required inspections or tests. Upon consultation with the FERC Project Manager, a noncompliance may be elevated to a “serious noncompliance” in the event the activity causes harm to personnel or poses a serious threat to the public, or is a deliberate violation (ex., repeated or cumulative noncompliance activities or failure to correct previously identified noncompliance activities in an established timeframe).

Repeated or serious noncompliance may result in stop-work orders or referral to FERC’s Office of Enforcement.

The field work can take from 2.5 - 5 days, including travel time; however, the actual inspections usually take approximately 1/2 to 2 days, with the occasional 3-day inspection. All other non-field work (i.e. report writing) shall be performed from the contractor's offices.

4.0 Scope

The scope of this contract is perform:

• site inspection services for post-authorization construction;

• all aspects of program management of the inspections assigned to the contractor including, but not limited to: managing the contractor’s workforce and resources necessary to perform site inspections, managing and coordinating the inspection schedule for inspections assigned to the contractor and managing and coordinating all travel related to the site inspections; and

• reports and checklists related to site inspections identified in section 7.3 of this SOW.

5.0 Technical Task Requirements

5.1 Program Management

General: The contractor shall furnish all labor, materials, equipment (i.e., phones, digital cameras, steel-toed boots, fire resistant clothing, and safety glasses), 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 Contracting Officer’s Representative (COR), FERC Project Manager, and company representatives as necessary to verify construction status and ensure the timing of inspections is appropriate. All deliverables will be in accordance with directions provided in this SOW and as directed by the COR.

Kickoff meeting: A one-day kickoff meeting will 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 assigned to the Task. 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 inspections shall be handled, etc. This meeting will be held at the discretion of the COR. The meeting notes are a deliverable under this contract. See section

8.0 of this SOW.

Implementation Plan: The contractor shall prepare an Implementation Plan (IP) which includes at minimum:

• description of the methods for use in planning, managing, controlling and reporting on task elements;

• list of the personnel with a brief description of each inspector's field experience in LNG construction inspections;

• description of the procedures to be followed for each inspection; and

• description of how inspections will be scheduled.

Inspection schedule: The contractor, in conjunction with the COR, shall review all authorized projects currently under construction or scheduled for construction, to determine the priority and locations for compliance inspections during the term of this contract. These inspections should be scheduled to provide a substantial and credible FERC presence during project construction. Upon completion of the review and periodically throughout performance under the contract, the COR will assign inspections for the contractor to perform.

The contractor shall maintain and submit an inspection schedule of the assigned inspections which identifies the proposed inspection date, basic project information (docket no., company name, project name, construction period, FERC Project Manager, project location), contractor inspector assigned, inspection type and complexity, estimated inspection days, and comments as applicable. The contractor shall incorporate all additional projects into the inspection schedule as they are identified by the COR, and provide the COR with weekly updates to the inspection schedule (see Appendix B). The contractor shall contact the COR before making any schedule changes and to confirm inspections and staffing for the following week.

The inspection schedule (including weekly updates) is a deliverable under this contract. The contractor shall provide the COR with a current and accurate inspection schedule every Friday by 3:00 p.m. (EST). See section 6.0 of this

SOW.

The contractor is anticipated to use one person for each site inspection unless otherwise approved by the COR (i.e., for more complex projects). Follow-up inspections of a site shall be completed by the same inspector unless agreed to by the COR. During a site inspection, the contractor shall also specify an alternate contact who shall promptly respond to all inquiries from the COR.

For completed inspections, the schedule shall identify the actual date of the inspection, the date inspection reports were submitted to the FERC, and the status of all remaining scheduled or unscheduled inspections. Changes from the prior week's report shall be highlighted. A priority of the schedule will be the geographic grouping of projects in order to combine multiple project inspections into single trips.

In the event of an emergency inspection, the contractor shall coordinate the emergency inspection with the COR and be prepared to respond. The contractor shall have the capability to respond to "emergency situations," involving either construction-related problems or potential violations of environmental Order conditions within one day of receiving notice from the COR. The duties include: investigation, damage assessment, remediation measures, and coordination with applicable federal, state and local officials. Emergency situation reporting is a deliverable under this contract. See section 8 of this SOW.

Construction Review: A one-day review of construction will be held at the FERC Headquarters Office in Washington, D.C. to review compliance concerns seen during the previous year’s inspections. The purpose of this presentation will be to describe to FERC staff the ongoing issues that have been identified in the field, new construction practices/equipment being implemented, and concerns for the future. This review will be held at the discretion of the COR. Slides of the review are a deliverable under this contract. See section 6.0 of this SOW.

5.2 Inspections

The contractor shall perform post-authorization compliance inspections of LNG facilities authorized by the FERC as assigned by the COR.

The contractor shall have a team of inspectors available to perform field inspections of Commission jurisdictional LNG projects at various locations across the United States during active construction, commissioning, and commencement of service phases. Inspectors shall document and report compliance with environmental conditions identified in Commission Orders and associated engineering requirements.

Whereas, the contractor performed inspections supplement FERC performed inspections, the contractor shall use the same methodologies, checklists, and forms used by FERC personnel. FERC anticipates that there may be minor changes to the FERC checklists and forms during performance of the contract; these minor changes to the checklists and forms shall not be cause for an equitable adjustment.

Inspections will be defined based on the type of inspection and complexity level.

• The type of inspection is defined by the number of days required on-site to complete the inspection. The type of inspection will vary from a 1/2 day to 3 days.

• A 1/2-day inspection usually requires up to a full day of travel on the first and second days, with the inspection beginning the afternoon of the first day and return travel on the second day. The Contractor will be required to prepare an inspection report which includes the information described in section 7.3 of this SOW and as provided in the attached samples of completed reports.

• A 1-day inspection usually requires up to a full day of travel on the first and second days, with the inspection beginning the afternoon of the first day and being completed the morning of the second day. The Contractor will be required to prepare an inspection report as noted under the 1/2-day inspection above.

• A 2-day inspection usually requires up to a full day on the first and last days with 2 full days of inspections in between. Following the trip, the contractor will be required to prepare an inspection report as noted under the 1/2-day inspection above.

• A 3-day inspection usually requires up to a full day travel on the first and last days with 3 full days of inspections in between. Following the trip, the contractor will be required to prepare an inspection report as noted under the 1/2-day inspection above.

• The complexity level will be assigned by the contractor, subject to COR concurrence. The compliance inspection categories correlate to the relative complexity of the inspection, with Level 1 as the least complex and Level 3 as the most complex. Factors that shall be considered in assigning the appropriate category include: the construction phase of the project (e.g., active construction, commissioning); the overall size of the project; and project-specific compliance issues that affect the necessary qualifications, planning effort, and anticipated report writing effort for the inspector. The complexity category will be assigned by the COR with input from the contractor. It is expected that the category may change during the course of project inspections, due to the phased nature of construction activities.

• Level 1: A Level 1 inspection will generally include initial site preparation activities such as installation of piles, foundations, and structural steel. Projects in this category require minimal inspector preparation and report documentation.

• Level 2: A level 2 inspection will generally include the previous site work and installation of the final design equipment and piping. At this point, multiples areas of the facility may be underway (i.e., multiple liquefaction trains), which will require an increase in the amount of inspection preparation and field work as well as coordination with the FERC Project Manager. Projects in this category require an inspector with a high level of relevant qualifications and in certain circumstances, specialty training.

• Level 3: A level 3 inspection will generally include the previous site work and installation of instrumentation, utilities, and commissioning and in-service field verifications. This inspection will require an increase in the amount of inspection preparation and field work as well as coordination with the FERC Project Manager. Level 3 inspections require an inspector with a high level of relevant qualifications and in certain circumstances, specialty training.

The contractor's field inspector will contact the FERC Project Manager before arranging field inspections to ascertain any site-specific conditions or approvals, and to identify any areas of concern or specific requirements associated with the inspection. FERC staff attendance at site inspections is optional.

Prior to conducting the site inspections, the contractor will review the engineering information available from the FERC’s eLibrary system (the EA or EIS, the Commission Order, clearance letters, notices to proceed, and reports of previous inspections) as necessary to be fully aware and familiar with project and site specific conditions. The contractor is responsible for letting the COR know what additional project information is required for review.

The contractor shall evaluate project construction for compliance with all applicable engineering requirements and conditions. The contractor shall verify that QA/QC procedures and forms are being followed and completed by the EPC; review non-conformance reports; discuss any previous outstanding engineering compliance issues; discuss project filings currently under review with the direction of the FERC Project Manager; field verify approved engineering design changes; verify the installation of facility systems is consistent with the final design (i.e., plot plans, P&IDs, equipment data sheets, manufacturer drawings, and electrical classification drawings); and field verify Conditions of the Commissions’ Order including HAZOP recommendations.

Representative site conditions, including all noncompliances, shall be documented using the FERC-approved field inspection checklists and photographic records. The contractor is expected to use its own digital cameras and have a backup available for emergency use. In addition, the contractor is expected to use its own inspection attire (i.e., steel-toed boots, fire-resistant clothing, and safety glasses).

Any noncompliance noted during the inspection shall be reported to the company representative during the inspection. In addition, the contractor shall request corrective actions in writing using FERC's "Notification of Required Corrective Action or Response" (NRCAR) Form (see Appendix J). The contractor shall a copy of the NRCAR form to the company representative prior to leaving the inspection site.

The contractor shall promptly notify the FERC Project Manager and COR of any noncompliance resulting in significant impact. In no case shall this notification exceed 24 hours.

5.3 Reports

Inspection Reports and Checklists: The compliance inspection reports shall consist of a cover letter; a brief narrative describing the project purpose, personnel present, overall construction status, milestone dates for the project, site conditions, and applicable weather / rainfall data; a table providing conditions observed/comments for each inspection location; photographic records; a one-page project location map from readily available source; and any NRCAR forms issued during the inspection. Photographs should include a representative sample of acceptable locations as well as any noncompliances. The report shall also include, as an attachment, a completed and updated construction checklist that documents progress for each area of the project.

The contractor shall provide each inspection report within 5 working days after completion of the field inspection.

If the inspection trip includes multiple projects requiring multiple reports, the second report is due within 7 working days, the third within 9 working days, etc. However, all reports recommending a follow-up letter from the FERC are due within 5 working days.

Preliminary Inspection Reports: The contractor shall have the capability to provide expedited delivery (within 24 – 48 hours) of preliminary inspection reports, as requested by the COR. The reports shall provide preliminary photographs and summary documentation necessary to assist the FERC in timely evaluation of in-service requests.

The preliminary inspection report is a deliverable under this contract. See section 8.0 of this SOW.

NRCARs: For instances of non-compliance, the inspector will transmit a copy of the NRCAR Form (see Appendix A) to the FERC Project Manager as soon as possible after the inspection of a specific project (email or facsimile), but no later than immediately upon returning from the inspection.

Emergency Situation Reporting: The contractor shall provide the COR with:

• verbal report during each day of the investigation,

• preliminary incident report on the working day after completion of the on-site inspection, and

• final report with photographic documentation within 5 working days.

Quarterly Progress Reports: The contractor shall provide a quarterly progress report in electronic format to the COR.

The report shall include:

• Estimated costs by inspection and total task.

• Activities completed during the quarter; upcoming events, deliverable due dates, cost and status of invoiced charges and deviations from planned status of this task.

The quarterly progress report is a deliverable under this contract. See section 6.0 of this SOW.

End-of-Task Report: An End-of-Task Report shall be prepared and submitted to the COR. It shall include a final cost breakout of inspections by category (e.g. unit pricing) and travel costs. Also included should be any recommendations for improvement/lessons learned and identification of any particularly difficult or unique problems encountered during inspections, etc. The end-of-task report is a deliverable under this contract. See section 6.0 of this SOW.

6.0 Deliverables

Deliverable Schedule

Task Deliverable Due Date

5.1 Kickoff meeting summary notes Due 5 working days following the kickoff meeting

5.1 Implementation Plan Due 10 working days following the

kickoff meeting

5.1 Weekly Inspection Schedules 3:00 p.m. each Friday

5.1 Construction Review Presentation Due at the end of each contract year

5.3 Inspection Reports and Checklists See 5.3

5.3 Follow-up Letters See 5.3

5.3 Preliminary Emergency Inspection

Report

See 5.3

5.3 Final Emergency Inspection Report See 5.3

5.3 Quarterly Status Report Due 10 working days following the end of the quarter (or as directed by the COR)

5.3 Final Task Report Due 1 month after completion of last

deliverable

The contractor shall submit all reports to the COR in electronic format, using software compatible with FERC’s systems. FERC uses MS Office products.

7.0 Applicable Documents

The COR will provide a list of projects and anticipated construction dates to the contractor as they become available.

The project environmental data and specifications are publically available from the FERC’s eLibrary System under the docket number for the project including project maps, the NEPA document (EA/EIS), Commission Order, Implementation Plans, clearance letters and notices, the company’s construction status reports, and previous inspection reports. The COR may provide additional materials upon contractor request and/or may direct the contractor to obtain materials directly from the subject company. The contractor shall use the staff's field inspection checklists to ensure consistent evaluations.

8.0 Period of Performance

This contract includes a five (5) year effective period and a five (5) year ordering period. There are five one-year ordering periods delineated below to accommodate escalation in pricing:

Ordering Period I: 04/01/2017 – 03/31/2018

Ordering Period II: 04/01/2018 – 03/31/2019

Ordering Period III: 04/01/2019 – 03/31/2020

Ordering Period IV: 04/01/2020 – 03/31/2021

Ordering Period V: 04/01/2021 – 03/31/2022

9.0 Place of Performance

The primary place of performance is the contractor’s facility. However, the contractor shall have a team of inspectors available to perform field inspections of Commission jurisdictional LNG projects at various locations across the United States during active construction. FERC anticipates that the majority of the inspections will focus on the Louisiana and Texas region; however, the concentration of inspections could change based on industry trends. Non-field work such as report writing will be performed from the contractor's offices. The table below includes a list of LNG projects currently under construction or currently approved, however, construction has not yet commenced.

FERC

COMPANY LOCATION

CP13-113 Dominion Cove Point LNG, LP Calvert Country, Maryland

CP13-25,

CP15-560

Cameron, LNG LLC Cameron and Calcasieu Parishes, Louisiana

CP12-507 Corpus Christi Liquefaction, LLC and Cheniere Energy, Inc.

San Patricio and Nueces Counties, Texas

CP14-103 Elba Liquefaction Company, LLC and Southern LNG Company, LLC

Chatham County, Georgia

CP13-541 Floridian Natural Gas Storage Company, LLC

Martin County, Florida

CP12-509 Freeport LNG Development, L.P. and FLNG Liquefaction, LLC

Brazoria County, Texas

CP14-119 Trunkline Gas Company, LLC, Lake Charles LNG Export Company, LLC, and Lake

Calcasieu Parish, Louisiana

CP14-347 Magnolia LNG, LLC Calcasieu Parish, Louisiana

CP11-72,

CP13-552

Sabine Pass Liquefaction, LLC Cameron Parish, Louisiana

10.0 Organizational Conflict of Interest

Immediately upon assignment of an inspector to a new project and prior to incurrence of any inspection-related costs, the Offeror shall prepare and submit three copies of a No Conflict of Interest Statement as required by 40 CFR § 1506.5(c) to: (1) the Contracting Office (2) the Contract Specialist (CS), (3) the Contracting Officer's Representative (COR), and (4) 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 will suffice, the Offeror will not be assigned to that particular Task. The contractor shall also assure that each of the proposed subcontractors on the team for this task has submitted to FERC, either of the above statements, if the subcontractors are to be used. In addition, the contractor shall submit a plan for how it will handle any potential conflicts which may arise during the performance period. No inspection shall commence until the contractor’s conflict of interest disclosure statement has been reviewed and approved by FERC.

11.0 Confidentiality of Information

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;

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

(3) 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;

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

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.

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.

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.

12.0 Travel

The contractor shall make arrangements for travel to and from an inspection site and shall secure its own rental car for performing site inspections. Special transportation methods (e.g. helicopter, small plane, or boat) are seldom required on this contract; however, in the event the COR determines that use of such special transportation methods will be advantageous to the Government, the contractor shall coordinate the arrangements after approval from the contracting officer. In such cases, FERC is obligated to either reimburse companies for its employees’ and contractor’s pro-rata share of transportation costs or to hire and pay the transportation service directly. In general, it is preferred that the company provide the aircraft/boat, etc., and bill FERC for our share of the expense, but prior approval from the contracting officer would be necessary. The contractor will coordinate payment arrangements with the COR for submission to FERC’s Division of Financial Services.

For offshore portions of projects where the construction site or platform is only accessible by air or boat, the contractor is permitted to ride in the company’s craft without reimbursement.

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 or prior approval from the COR.

13.0 Quality Assurance/Control

All final documents will be reviewed and edited by the contractor to ensure that the document is both technically and grammatically correct. Final documents will be organized in a logical manner. The FERC COR will also review final documents and request contractor edits as necessary.

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 nonconforming deliverables at no increase in price. If correction is not possible, the government may seek an equitable price reduction or adequate consideration for acceptance of the nonconforming deliverables. The government must exercise its post-acceptance rights:

• Within a reasonable time after the defect was discovered or should have been discovered; and

• Before any substantial change occurs in the condition of the item, unless the change is due to the defect in the item.

14.0 Communication Protocol

The contractor, as needed, will 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.

15.0 Key Personnel

Key personnel as identified in the contractor’s proposal and as specified at task approval are considered to be essential to the work being performed. Prior to diverting key personnel, the contractor shall notify the COR reasonably in advance (not less than 30 days prior to the diversion or substitution of key personnel) and shall submit a written justification (including proposed substitutions) in sufficient detail to permit evaluation of the impact on the task activities. The key personnel list may be amended from time to time during the course of the contract to either add or delete personnel, as appropriate. Individuals submitted as key personnel changes will be approved at the sole discretion of the CO, with concurrence of the COR.

The contractor shall submit a list of key personnel which identifies for each inspector: (a) educational background of proposed inspectors (include fields of study such as engineering) and any related training; (b) LNG construction experience; and (c) LNG post-authorization design review experience. Resumes shall be provided for each proposed key personnel. References for the proposed project manager shall be provided, including name and phone number for pertinent and related work within the past 3 years.

16.0 Inspector Qualifications

Minimum/General Experience: At a minimum, the inspectors will have no less than five (5) years of experience in design, operations, maintenance, safety, and/or fire protection engineering experience at industrial facilities or engineering firms with particular emphasis on inspecting processes involving LNG. Prior work experience associated with LNG facilities is more heavily valued and preferred over experience in other industrial facilities that do not involve construction, operation, and maintenance of processes that handle cryogenic fluids.

Minimum Education: Minimum of a Bachelor’s degree in chemical, mechanical, fire protection, or petroleum engineering or a combination of certifications and experience.

Functions: The engineer shall have sufficient technical expertise and experience to recognize potential and actual flaws in the design and operation of an LNG facility and determine whether the facility would need modifications.

Emphasis shall be placed on the inspection of safe design, operability, and reliability of the facilities, including their possible interactions with existing/adjacent equipment. The basis of the inspection shall include good engineering practices, federal regulations, industry standards, FERC guidance documents, prior experience, precedents, and engineering knowledge. The engineer shall have excellent interpersonal communication, organization, and time management skills to coordinate facility inspections and be proactive in informing FERC of significant issues and be able to respond and take corrective action for issues brought forth by the FERC COR or CO. The engineer shall respond timely to inquiries from FERC staff and also present written and oral briefings and reports to FERC staff.

SECTION C - CONTRACT CLAUSES

C.1 52.252-2 -- CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text available. Also, the full text of a clause may be accessed electronically at this/these address(es):

http://www.acquisition.gov/far/index.html

FAR Number Title

Date

52.203-16 52.203-17

52.212-4 52.227-14 52.232-40

PREVENTING PERSONAL CONFLICTS OF INTEREST

CONTRACTOR EMPLOYEE WHISTLEBLOWER RIGHTS AND REQUIREMENT

TO INFORM EMPLOYEES OF WHISTLEBLOWER RIGHTS

CONTRACT TERMS AND CONDITIONS – COMMERICIAL ITEMS

RIGHTS IN DATA—GENERAL

PROVIDING ACCELERATED PAYMENTS TO SMALL BUSINESS

SUBCONTRACTORS

DEC 2011

APR 2014

MAY 2015

May 2014

DEC 2013

C.2 52.212-5 -- CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES

OR EXECUTIVE ORDERS—COMMERCIAL ITEMS (MAY 2015)

(a) The Contractor shall comply with the following Federal Acquisition Regulation (FAR) clauses, which are incorporated in this contract by reference, to implement provisions of law or Executive orders applicable to acquisitions of commercial items:

(1) 52.209-10, Prohibition on Contracting with Inverted Domestic Corporations (Dec 2014)

(2) 52.233-3, Protest After Award (Aug 1996) (31 U.S.C. 3553).

(3) 52.233-4, Applicable Law for Breach of Contract Claim (Oct 2004) (Public Laws 108-77 and 108-78 (19 U.S.C.

3805 note)).

(b) The Contractor shall comply with the FAR clauses in this paragraph (b) that the Contracting Officer has indicated as being incorporated in this contract by reference to implement provisions of law or Executive orders applicable to acquisitions of commercial items:

[X] (1) 52.203-6, Restrictions on Subcontractor Sales to the Government (Sept 2006), with Alternate I (Oct 1995) (41 U.S.C. 4704 and 10 U.S.C. 2402).

[] (2) 52.203-13, Contractor Code of Business Ethics and Conduct (APR 2010)(41 U.S.C. 3509).

[] (3) 52.203-15, Whistleblower Protections under the American Recovery and Reinvestment Act of 2009 (JUN 2010) (Section 1553 of Pub. L. 111-5). (Applies to contracts funded by the American Recovery and Reinvestment Act of 2009.)

[X] (4) 52.204-10, Reporting Executive Compensation and First-Tier Subcontract Awards (Jul 2013) (Pub. L. 109-

282) (31 U.S.C. 6101 note).

http://www.acquisition.gov/far/index.html

[] (5) [Reserved]

[] (6) 52.204-14, Service Contract Reporting Requirements (JAN 2014) (Pub. L. 111-117, section 743 of Div. C).

[X] (7) 52.204-15, Service Contract Reporting Requirements for Indefinite-Delivery Contracts (JAN 2014) (Pub. L.

111-117, section 743 of Div. C).

[X] (8) 52.209-6, Protecting the Government's Interest When Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment. (Aug 2013) (31 U.S.C. 6101 note).

[] (9) 52.209-9, Updates of Publicly Available Information Regarding Responsibility Matters (Jul 2013) (41 U.S.C.

2313).

[] (10) [Reserved]

[] (11)(i) 52.219-3, Notice of HUBZone Set-Aside or Sole-Source Award (NOV 2011) (15 U.S.C. 657a).

[] (ii) Alternate I (NOV 2011) of 52.219-3.

[] (12)(i) 52.219-4, Notice of Price Evaluation Preference for HUBZone Small Business Concerns (OCT 2014) (if the offeror elects to waive the preference, it shall so indicate in its offer) (15 U.S.C. 657a).

[] (ii) Alternate I (JAN 2011) of 52.219-4.

[] (13) [Reserved]

[X] (14)(i) 52.219-6, Notice of Total Small Business Set-Aside (NOV 2011) (15 U.S.C. 644).

[] (ii) Alternate I (NOV 2011).

[] (iii) Alternate II (NOV 2011).

[] (15)(i) 52.219-7, Notice of Partial Small Business Set-Aside (June 2003) (15 U.S.C. 644).

[] (ii) Alternate I (Oct 1995) of 52.219-7.

[] (iii) Alternate II (Mar 2004) of 52.219-7.

[X] (16) 52.219-8, Utilization of Small Business Concerns (OCT 2014) (15 U.S.C. 637(d)(2) and (3).

[] (17)(i) 52.219-9, Small Business Subcontracting Plan (OCT 2014) (15 U.S.C. 637(d)(4)).

[] (ii) Alternate I (Oct 2001) of 52.219-9.

[] (iii) Alternate II (Oct 2001) of 52.219-9.

[] (iv) Alternate III (OCT 2014) of 52.219-9.

[] (18) 52.219-13, Notice of Set-Aside of Orders (NOV 2011) (15 U.S.C. 644(r)).

[X] (19) 52.219-14, Limitations on Subcontracting (NOV 2011) (15 U.S.C. 637(a)(14)).

[] (20) 52.219-16, Liquidated Damages—Subcontracting Plan (Jan 1999) (15 U.S.C. 637(d)(4)(F)(i)).

[] (21) 52.219-27, Notice of Service-Disabled Veteran-Owned Small Business Set-Aside (NOV 2011) (15 U.S.C.

657f).

[X] (22) 52.219-28, Post Award Small Business Program Rerepresentation (Jul 2013) (15 U.S.C 632(a)(2)).

[] (23) 52.219-29, Notice of Set-Aside for Economically Disadvantaged…