NGAP 2012 Questions Answers GS-00P-11-BSC-0819 V2.doc

GSA – NGAP 2012 Solicitation- GS-00P-11-BSC-0819 Questions and Answers from 5/19/2011 Teleconference and Written Questions Received Prior to the Deadline of 5/25/2011 (5:00 PM EST) Attendees:

NGAP Director

Linda Collins

GSA NGAP

Dan Morrison

Ken Campbell

Bill Dennison

Dave Hague

Richard Corvi

Kristi Dutton World Energy

Erica Martunas

SAIC

Chris McCall Asgard Energy

Karen Befort Cima Energy

Matt Medura

Constellation

Adam Walker

Alison Sheaffer

Steve Lawrence Delta Energy

Sheila Porter

Direct Energy

Ray Seng Direct Energy

Al Lussier EnergyMark

Courtney Lagambina Equitable Energy

Ken Frederick

E Services

Kenji Morgan Glacial Energy

Jeff Ott Hess Corporation

Victoria Bukreeva Hudson Energy

Paul Rozzeli

IGI Resources

Steve McKellen Integrys Energy

Ray Suennen

Kansas Energy

Randy Bitski Kansas Energy

John Carmundy MX Energy

Robert Cordero National Fuel Resources

Shelly Spacht Occidental Energy

Drew Cluff Promet Energy

Sue Pierce Sage Energy

Cindy Hughes Scana Energy

Glenn Gouge Seminole Energy

Rick Pemberton

Shell Energy (Canada)

Sierra Southwest Cooperative

South Jersey

John Farnham Sprague Energy

Claude Peyrot Stand Energy

Terry Leach Washington Gas Energy Services

Susanna Todd Note: Question and Answer numbers below match the questions and answers added to Attachment 5 of the Solicitation.

Q51: Is a red-line version that shows all changes made between the FY12 Solicitation and the FY11 2011 Solicitation available?

A51: No a red-line version is not available but the FY11 Solicitation is still available for viewing on Fed-Biz Ops www.fbo.gov . Suppliers can use the track changes function in Microsoft Word to compare the documents.

Q52: How are balancing fees calculated?

A52: Please see question and answer 13 in Attachment 5 Frequently Asked Questions of the Solicitation

Q53: I am interested in bidding on the firm accounts in Atlanta Gas and Light but do not see them listed in the Preliminary Exhibit 1 in Section C. Will these accounts be included in the FY12 auctions?

A53: Per the language included above the Preliminary Exhibit 1 in Section C, the preliminary Exhibit 1 shows only accounts that are currently on third-party supply contracts through GSA that either have current contract end dates expiring between October 1, 2011 and March 31, 2013 or for which GSA may request pricing during FY12. While the accounts listed in the Preliminary Exhibit 1 have an annual combined annual usage of 7.6 million dths; twenty-four Federal agencies with a combined annual usage profile of 17.2 million dths currently utilize GSA NGAP to procure natural gas supply. Therefore, GSA encourages suppliers to submit technical proposals for all of the LDCs listed in Section A.1 as accounts not listed in the Preliminary Exhibit 1 may also request forward pricing during the term of this solicitation and only those suppliers that submit evidence of technical capacity and are approved will be allowed to bid on these accounts.

Q54: Is the World Energy fee to be paid up-front or over the term?

A54: Please see question and answer 26 in Attachment 5 Frequently Asked Questions of the Solicitation. World Energy’s payment terms allow suppliers flexibility to pay the fee over the term of the contract or up-front.

Q55: Can you explain pricing Option III and is it full requirements?

A55: Please see question and answer 48 in Attachment 5 Frequently Asked Questions of the Solicitation. If this option is chosen, the final award price will consist of both a basis and fixed price and as with all pricing options in this solicitation. As with all pricing options, suppliers are required to provide each facility’s full requirements and if there are multiple accounts in an RFP each facility will be handled separately for billing purposes.

Q56: How are taxes handled?

A56: Please see question and answer 31 in Attachment 5 Frequently Asked Questions of the Solicitation.

Q57: If there are multiple accounts in a single RFP, can the supplier pick and choose which accounts to bid on?

A57: Please see question and answer 2 in Attachment 5 Frequently Asked Questions of the Solicitation.

Q58: How many decimal places does the World Energy platform allow bidders to bid out to?

A58: For the GSA NGAP FY12 auctions, bidders will be able to enter bids up to three decimal places. (i.e. $5.001 per dth).

Q59: Are certain Flow Down clauses per FAR 52.221-5 Subsection (e)(1) applicable to the acquisition of commercial items, specifically natural gas?

A59: The language in e)1 states in part " the extent of the flow down shall be as required by the clause" and there are exemptions and references in various FAR clauses that render these clauses, which otherwise would require a flow down, inapplicable for the acquisition of commercial items, specifically natural gas.

Q60: In the solicitation on page 34, bullet point # 4: Will you change the specified credit standard to "Investment Grade Ratings”?

A60: No. The current standard is considered appropriate given the potential dollar value of awards. It is also noted at the referenced paragraph on p. 34 that letters of credit or evidence of the ability to obtain such a letter are supplemental or alternate means of proof or creditworthiness.

Q61: Page 15, item aa) Small Disadvantaged Business - the explanation is outdated and no longer accurate. The SBA discontinued the certifications of SDBs about 2 years ago. The FAR has been changed so SDBs can now self certify.

A61: The definition for SDB class remains accurate - An SDB must apply and receive certification as such with SBA. The vendor who so represents is self certifying (CCR, ORCA) that they are an SDB and have received such certification by SBA (FAR 52.219-22). Other categories of small Businesses may self certify without SBA certification.

Q62: The Solicitation Section B - Federal Acquisition Regulation at 52.204-8 and 52.212-5 require the contracting officer to indicate by checking various clauses that are incorporated into the Solicitation by reference. Does this mean unchecked clauses not applicable?

A62: The clauses not checked are not applicable for the Annual Representations of Certification provisions at 52.204-8 or implementing provisions of law or executive orders applicable to acquisitions of commercial items at 52.212-5.

Q63: Are we required to submit a small business subcontracting plan? Are there are percentages/dollar amounts required to fall under this?

A63: Note section C.3 para. (c); Attachments 1&2; and Q&A #16, p.61.

Q64: Page 7, Section A.3 states that “Contractor will be responsible for providing GSA with documentation (e.g. invoices, sales receipts, purchase receipts, etc.) clearly identifying costs.” Why and when would we need to do this?

A64: In the unlikely event contract estimates are not available, verified actual deliveries would apply and such verification shall be supplied at time of tendering invoices.

Q65: Are there are transportation/storage assets involved? (A.8) A65: All assets required to move gas to the citygate are supplied by the contractor. The referenced utility assets refer to gas pools or banks owned by the facility and held in their name by the LDC for the contractor's use in monthly balancing.

Q66: Will a letter of credit definitely be required?

A66: Please note Section 3C Para.11, p.34 of the solicitation.

Q67: Requests copies of contracts and contact information for 5 largest customers – we cannot give copies of customer contracts and can only give contact information if each customer has given written approval for us to do so.

A67: C.3 Paragraph 9 does not require copies of contracts but contact persons, company names and phone numbers for references.

Q68: Will the GSA provide address & contact information for each facility, prior to auction?

A68: A.4 Addresses and account numbers are provided in the Exhibit. Facility contacts will be supplied by the assigned account manager after award, prior to flow date of the contract.

Q69: A.3 Gas Supply: In the sentence that begins; All comparisons shall…

Data must be provided in order for supplier to price. When will the GSA provide this data?

A69: Estimates are provided in the Exhibit 1, issued at the announcement of the auction usually two weeks prior to the event.

Q70: A.3 Gas Supply: In the sentence that begins; In the event a LDC…

If supplier does not have metered actual usage, supplier will use estimated meter reads from the LDC for billing. If supplier doesn’t have estimated usage, supplier would use the monthly CQ on the contract. Will the GSA accept this?

A70: No. As stipulated in the reference paragraph, under these circumstances, the monthly usage will be calculated using the total usage divided by the total number of months shown on the LDC invoice.

Q71: Pricing Option I: Will the GSA confirm fixed price only vs. NYMEX/ Index pricing?

A71: The pricing options and volume variance percentages will be identified on the Exhibit with the auction announcement. Note Example Exhibit 1 - Auction Schedule on P. 38.

Q72: Pricing Option I: In the sentence that begins; Once the applicable pricing point has been…Will the GSA insert the “Industry Consideration” language from Option III in this section as well?

A72: The Industry Considerations clause has been modified (p.8) to accommodate both Options l&ll.

Q73: Pricing Option II: In the sentence that begins; In both over burn and under burn…Will the GSA Adhere to MONTHLY Material Change Language?

A73: Pricing option variances are not intended to provide risk avoidance related to the circumstances noted in A.20 which would create a material change variance. (The extreme variance examples are provided for purposes of demonstrating the variance adjustment mechanism and while one cannot entirely rule out extremes, these are not reflective of normally experienced usage variances.)

Q74: Pricing Option III: In the sentence that begins; The Government will provide the contractor…Is the GSA asking for layered conversions?

A74: Pricing mechanisms under this option could include preestablished forward options at various price levels for selected months or volumes of the total volume estimate for the period. Any such pricing mechanism will be identified at the time of the Exhibit publication.

Q75: A.8 Nominating and Balancing Responsibilities: In the sentence that begins; these costs will be the sole responsibility... Will the GSA accept additional language for IT accounts around failure to curtail penalties?

A75: The facility will be bound by the applicable LDC's tariff for curtailment response and subject to tariff provisions for non compliance.

Q76: A.16 Adding and Deleting Facilities: In the sentence that begins; In this event the Government shall provide the Contractor…. Does this cover supplier for a % change in overall volumes due to the facility removal or addition? Does this include offering the same price as well?

A76: As noted in the following excerpt from this clause: ..... " the two parties shall mutually agree as to whether to extend the full terms and conditions of this contract to such facility accounts" It further states that the addition or deletion would be accomplished by a bilateral agreement.

Q77: A.16 Adding and Deleting Facilities: In the sentence that begins; In an applicable LDC….Will the GSA agree to notify supplier in writing at least 30 days prior to any name changes or account number changes?

A77: GSA will make every effort to provide sufficient notice to accommodate the referenced circumstances.

Q78: A.20 Material Change: Is this a 25% change from the overall CQ or is it based on a monthly CQ?

A78: Monthly

Q79: A.21 Service Interruption: In the sentence that begins; the contractor is to notify the Contracting officer… The LDC contacts the customer regarding the interruptions not the suppler. Company is seeking contractual language that is company is not notified in a timely manner, penalties may be passed through.

A79: Notwithstanding the contractors responsibilities listed in A.1(a) thru (e), p.2; as noted above in response to question 7, the facility will be bound by the applicable LDC's tariff for curtailment response and subject to tariff provisions for non compliance.

Q80: A.29 Load Reduction: Will the GSA notify supplier of the expected change in load?

A80: Yes

Q81: Contract Terms and Conditions 52.212- 4 item (I) addresses Termination for Convenience. Section A.26 Special Contract Termination also addresses Termination for Convenience. Will the GSA identify which clause takes precedence?

A81: Considering that the contract is for the commercial acquisition of natural gas, A.26 provides a method to implement termination for convenience which is consistent with industry practice and 52.212- 4. For reference, 52.212-4 para. (s) lists the order of precedence.

Q82: A.23 Change of Regulation- Will the GSA accept pass through charges as a separate line item?

A82: Yes

Q83: A.7 Metering and Billing - Billling period is dictated by the utility and consequently supplier’s system is designed to accommodate as such. Will the GSA remove the request for 27-35 day billing period?

A83: No, the range of billing days is reasonably within LDC normal billing cycles, however, in the unlikely event LDC tariff rules dictate otherwise, the LDC terms would be honored.

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