NGAP_2014_Questions__Answers.doc

GSA – NGAP 2013 Solicitation- GS-00P-13-BSC-0951 Questions and Answers from 5/16/2013 Teleconference and Written Questions Received Prior to the Deadline of 5/22/2013 (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 Constellation

Ann Daso Colonial Energy

David Arndt

Colonial Energy

Peter Camalano

Compass Energy

Barry Koski

Direct Energy

Dave Gilbert Equitable Energy

Ken Frederick

Gas South

Denise Dotson

Great Eastern Energy

Heather Forensey

Great Eastern Energy

Rich Cormandy

Hess Corporation

Victoria Dyckman Interconn Resources

Joe McLean

Integrys Energy

Ray Suennen

Integrys Energy

Mike Bottger National Fuel Resources

Shelly Spacht

Promet Energy

Greg White

Sage Energy

Cindy Hughes Shell Energy

Stephanie Watanabe Shell Energy

Courtney Smith South Jersey Energy Services

Ed McFadden

Sprague Energy

Mike Koob Summit Energy

Tom Durnarvik Tiger Energy

Bob Smith

Twin Eagle

Paul Kaufman

Q63: Regarding the pricing options, is there a non-swing, contract volumes pricing product?

A63: No All Pricing Options are for full volume requirements. Per Section A.3, “The supply of natural gas to be provided to each federal facility account shall be a fixed and / or indexed price for the facility's full requirements/usage for the term specified for all gas supply and pricing options herein.”

Q64: When will the FY14 Exhibit 1 be released? Can you clarify what tendering monthly bills means?

A64: GSA requests dual billing meaning that suppliers submit their own bill for their own charges. Per Section A.17, GSA requires dual billing unless it is not allowed by the LDC in which case it will accept consolidated billing from the LDC.

Q65: Are LDC Line losses to be included in the prices entered on the platform?

A65: Yes. See Section A.9 and Attachment 5 Questions & Answers 44 and 50. Line loss volumes as calculated by the LDC pursuant to regulated tariff values and supplied by the contractor are to be charged at the contract rate. Contractors will be allowed to bill for delivered volumes realizing that volumes delivered will be higher than burnertip volumes as some of the gas will be lost between delivery to the citygate and delivery by the LDC to the burnertip.

Q66: When will the FY14 Exhibit 1 be released?

A66: See Attachment 5 Questions and Answers 15 and 51.

Q67: Are volumes to be billed based on burner tip usage at the contract price, burner tip usage plus LDC Line Loss (city-gate volumes) at the contract price, or burner tip usage plus pipeline line loss plus LDC line loss at the contract price? Can an example be provided?

A67: Reference the answer to question 65.

Q68: For Pricing Option 1, which Gas Daily pricing point will be used for usage in excess of 110% or credited for usage below 90% for each LDC or will this be posted for each LDC in the auction schedule at a later time, prior to the bid due date?

A68: Suppliers and GSA will mutually agree post-award on the applicable gas daily index pipeline pricing point. Per Section A.3, “Once the applicable pricing point has been agreed upon and documentation provided to the COR, Contractors will not be allowed to switch for the remainder of the contract.”

Q69: For Option 1, the solicitation states that the pricing publication to be used is the monthly Gas Daily Price Guide. Which prices are being referenced here, “Prices of Spot Gas Delivered to Pipelines” from page 1 which represents baseload pricing or “Midpoint Averages” from page 2 which represents the Gas Daily average for the appropriate month? If it is referencing the “Prices of Spot Gas Delivered to Pipelines”, would the GSA consider changing that to the “Midpoint Averages” as that properly reflects the cost to sell off excess volumes or purchase additional volumes needed throughout the month?

A69: “Prices of Spot Gas Delivered to Pipelines” from page 1. This will remain unchanged.

Q70: For Pricing Options I and III, which billing month price is used for accounts that use cycle billing? For example, an account whose usage is read on June 2nd for usage between May 3rd and June 2nd, is that usage billed at the June price or prorated between May and June so for example if the account used 31 dth, 29 dth is billed at the May price and 2dth is billed at the June price?

A70: The billing month is defined by the LDC for the meter read periods which establishes the monthly price to be applied.

Q71: Per the third paragraph of Section A.3, what is intended by requesting that contractor be responsible for providing the GSA with documentation clearly identifying costs? What is the GSA expecting to see for this type of solicitation?

A71: All costs charged by contractors should be clearly identified on bills rendered. For contracts awarded under Pricing Option II, GSA would expect to see price, quantity and total price. For contracts awarded under Pricing Options I and III, GSA would expect to see additional detail on the bill clearly identifying all charges. For Per Section A.17, “Contractors will be required to include any price components on the invoice other than the awarded price as itemized line items.”

Q72: In Section A.3, the GSA requests that contractors include any information on the invoice other than the firm fixed or index price as itemized line items. Could the GSA please clarify and indicate what additional items would be required? We would like to request the deletion of this statement and ask that the GSA allow the invoices to show the standard line times as dictated by the type of product selected.

A72: No. GSA will not delete this requirement. GSA requires a level of detail on each bill that will allow the Government to verify the accuracy of all included costs.

Q73: Would GSA approve the contractor billing for the applicable usage obtained for the period received from the utility versus the total monthly usage calculated using the total usage divided by the total number of months shown on the LDC invoice?

A73: Usage volumes are ultimately determined by meter reading and reported monthly on LDC invoices.

Q74. Per the terms of the Prompt Payment Act, can it be defined that date of receipt of invoice as used in in the Act shall mean the end of the third business day after the date of mailing by the Contractor by prepaid first class mail?

A74: As noted in the Section B of the solicitation payment will be made in accordance with the Prompt Payment Act which generally provides that a proper invoice is deemed to be received on the later of the date the designated agency office receives a proper invoice or seven days after the date goods are delivered.

Q75: Would the GSA be able to remove the requirement listed in Section A.7(d)?

A75: No. GSA requires a level of detail on each bill that will allow the Government to verify the accuracy of all included costs.

Q76: Is it also required to provide consolidated billing for any interruptible accounts?

A76: No. Per Section A.17, “There is no provision in this contract for consolidated billing, except in the states, municipalities, or locations where it is mandated by the governing regulatory commission and dual billing is not allowed.”

Q77: Would the GSA be willing to make it clear in Section A.10 that the Contractor shall only be responsible for payment of any additional costs incurred over and above the contract award price, if the Contractor is in breach?

A77: GSA believes this is clear as Section A.10 states, “The Contractor shall be responsible for payment of any additional costs incurred over and above the contract award price”.

Q78: Would the GSA accept a threshold of 5% for the addition or deletion of facilities?

A78: No. Per Section A.16, addition or deletion of facilities shall be handled through a bi-lateral agreement between GSA and the supplier.

Q79: If Contractor already has an agreement in place with World Energy, can the terms of that A79: Agreement apply for paying the procurement fee versus what is in this solicitation?

A: Yes as long as it is not in conflict with the payment terms specified in Section A.19.

Q80: Because the Contractor has no control over the quality of the gas supplied, can the GSA please remove Section A.24.

A80: No. If the LDC or the interstate pipeline refuses to accept the suppliers gas due to nonconformance with its specifications that is the responsibility of the supplier not GSA.

Q81: Can an excusable delay or similar event suffered by the Local Distribution Company (LDC) constitute a Force Majeure as to Contractor?

A81: Yes, as long as, Per Section A.25, the Contractor is able to supply to the Government Contracting Officer (CO) all documentation from its natural gas supplier(s) and/or transportation pipeline(s) which support the claim of Force Majeure.

Q82. Would the GSA be willing to accept alternative forms of calculating damages due to termination?

A82: No. Any terminations that were to occur under this contract would be addressed based on the existing language included in this solicitation.

Q83: Is Termination for Cause subject to limitation of liability provision?

A83: Reference Solicitation Section B - 52.212-4 Contract Terms and Conditions-Commercial Items, Paragraphs (m) Termination for Cause and (p) Limitation of Liability.

Q84: Can GSA provide the Preliminary Exhibit 1 included in Section C in Excel?

A84: Yes. An Excel version of this information will be provided.

Q85: If after the award has been made to a contractor, an intrastate or interstate pipeline changes its fuel rate or commodity or surcharges, is the contractor allowed to make an adjustment based on the change?

A85: Any change in price associated with a Change in Regulation that occurs after an award has been made would be addressed per the terms of Section A.23 Q86: The solicitation references Central Contractor Registration (CCR) and the Online Representations and Certifications Application (ORCA); however, the CCR and ORC websites no longer exist. Is the System for Award Management (SAM) the replacement for these systems and how do contractors use SAM?

Q86: Yes, SAM is the replacement and instructions for using SAM can be found at www.sam.gov.

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