N6247320RP001_N6247320RP001_-_Modification_4_-_DFSP_San_Pedro_Industry_Forum_QA_-_010518.pdf

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Solicitation No. N6247320RP001 Defense Fuel Support Point (DFSP) San Pedro Industry Forum Questions

December 5, 2017

Question: Response:

1 Will the Department of the Navy (DON) consider breaking the assets

(Main Terminal, Marine Terminal, Pipelines) out into separate acquisition packages or will they all remain in one package (as an “all-or-nothing”-type initiative)?

DON is considering all options, including breaking the assets into separate solicitations. The Request for Interest (RFI) asks for delineation of your area of interest (i.e. only the pier, only the Main Terminal, etc.)

2 Are the Aboveground Storage Tanks (ASTs) American Petroleum Institute (API) Compliant and/or meeting State of California requirements? They do not appear to be listed on State-published permitting lists.

The ASTs meet State of CA requirements, are on State-published permitting lists, and were last API-certified in 2014. The current API-653 inspection for the 3 Main Terminal ASTs is underway.

3 What types of roofs do the ASTs have? Max Loading rate? The ASTs have floating roofs, 8-inch fittings, and 4,000-6,000 bbl (barrels per hour) gravity feed to the pier.

4 Will the DON keep the ASTs that are not certified and/or registered in the acquisition(s)?

All 16 of the ASTs at the Main and Marine Terminals are registered and available for outlease.

5 What are the physical and compliance conditions of the two 18-inch lines running from the Main Terminal to the Marine Terminal?

The two 18-inch pipelines are characterized as “good” condition. They were deemed fit for service in 2013 after repairs were completed.

6 Have the DON’s recent Marine Oil Terminal Engineering & Maintenance Standards (MOTEMS) inspections identified a backlog of capital improvement projects for the Marine Terminal?

No, a backlog of capital improvements projects for the Marine Terminal has not been identified by the MOTEMS inspections. All repairs identified during MOTEMS inspections have been completed.

7 What is the depth of the water at the Marine Terminal and when was this depth last verified?

In 2008 the depth was 45 feet. The Government is looking to potentially complete a hydrographic survey.

8 How will the DON capture the environmental baseline information for these assets, especially the approximately 45 miles of pipeline?

The DON conducts an Environmental Condition of Property (ECP) prior to any real estate action which identifies the baseline condition of the property prior to entering into a lease. An ECP is also completed upon termination of a lease agreement. Pipelines included, the condition of the property is identified to the extent possible, prior to entering into an action.

http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwiyo9S00_bXAhVB92MKHRyaA8wQFghJMAA&url=http%3A%2F%2Fwww.slc.ca.gov%2FPrograms%2FMOTEMS.html&usg=AOvVaw0S70h-utnoM4FSmVu_QVUY http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwiyo9S00_bXAhVB92MKHRyaA8wQFghJMAA&url=http%3A%2F%2Fwww.slc.ca.gov%2FPrograms%2FMOTEMS.html&usg=AOvVaw0S70h-utnoM4FSmVu_QVUY

December 5, 2017

The ECP would include results of records searches and known releases. The DON does not at this time intend to perform any sampling prior to lease execution.

9 Which tanks – if any - at the Marine Terminal will the DON vessels rely on to receive fuel?

Dual product fuel (F-76 & JP-5) should flow via direct pipeline connection. DON is not anticipating to need the ASTs for operational requirements but requests any input or ideas you may have in your RFI response.

10 What is the status of the Underground Storage Tanks (USTs) at the Main Terminal?

The USTs at the Main Terminal are double-lined and filled with foamcrete. Use of the tanks is not being considered. Tanks, valve pits and interconnecting pipelines have all been closed and can no longer be used. The potential to remove the tanks to enable regrading of the property may or may not be possible, pending review of the options presented by responders to the RFI.

11 How much fuel do the DON vessels receive per fueling evolution, how long does each fueling evolution take and what is the fuel transfer rate at the Marine Terminal?

This will depend on the size of the ship. Tanker capacity is approximately 300,000 barrels, an oiler’s is approximately 177,000 barrels and smaller vessels typically receive 5,000 to 15,000 barrels when refueling pierside. A maximum of 6 DON ships would be anticipated to fuel per quarter.

12 Can the DON confirm how long DON vessels will be moored to the Marine Terminal when they visit?

DON vessels would not be anticipated to be moored for more than 2 days. More than likely, less than a day.

The amount of time that a ship would spend pierside at the Marine Terminal would be driven only by the time required to complete its loadout, which would be a factor of the pump rate (more information provided in Question 44.)

13 Is Pier 12 being used right now and if so, are the visiting ships military only?

Pier 12 has historically been using solely by DON but has not been used since 2014 due to fluctuating operational requirements.

14 What are the capacities of the ASTs at the Marine Terminal and what are they permitted for?

The capacity of the ASTs at the Marine Terminal is 55 thousand barrels and the shell capacity of the tanks located at the Marine Terminal is 3,811,206 US gallons. This capacity is from the OHSICP (Oil and Hazardous Substances Integrated Contingency Plan). Please see spreadsheet for further information, included here as Enclosure 1. Permitting is not required for diesel or diesel-like

December 5, 2017 materials, but gasoline storage would trigger an air permit and tanks are likely not constructed for highly volatile products. If product stored is hazardous waste and stored beyond 90 days than a DTSC Part B permit would be required. The DON is unsure if tanks meet construction specifications for storage of hazardous materials or hazardous waste as historically they have not stored either.

15 Will the future customers at the Marine Terminal be military only? No. Through the proposed outlease opportunity, the DON is allowing for potential commercial fueling provided the use would be compatible with military operational requirements. While DON is retaining the property for potential support during a national crisis, DON is determining if the property is underutilized and could be available for commercial out-lease.

16 Will the Truck Loading Station be allowed to operate 24 x 7, is it permitted now, is it configured for loading and offloading and does it have a vapor recovery unit?

It was operated 24/7 in the past. There is no vapor recovery unit so it does not have a permit, and is configured for loading only. There is no pumping system for offloading.

17 What is the loading rate for the Truck Loading Station and how many hoses/arms are there?

DOD formerly used the truck stand to load JP-5/JP-8 products. There are two stations capable of loading at 350-400 gpm.

18 How many of the DON pipelines are included in this initiative? All DON pipelines included in this initiative have been indicated on the provided power point and RFI.

19 Do we have to use the 18-inch lines to fill the DON vessels? Use of the 18-inch pipelines to fill DON vessels is not required. We are looking for your input and ideas on how the DON fueling will be provided/set up in your RFI response. We are considering all options and are looking for input.

20 Who will connect the DON vessels to the fuel delivery system and who will operate the fuel delivery system?

The site operator (lessee or their subordinate agent) would connect and operate the shore-side systems, to include mooring assistance. The DON would be responsible for the connection and operation of ship-side systems. The DON would not provide additional support to shore-side operations.

21 How will the fuel be purchased? As with many other commercial fuel providers, DOD contracting channels would be utilized for the purchase of fuel.

December 5, 2017

22 What if we have other ideas for this initiative? We welcome and request all input and ideas you may have via your RFI responses. Submit your RFI responses to our office by January 15, 2018. DON is open to considering all options for use of the property, provided the plans are compatible with DON operational requirements.

23 How much has the DON worked with the City and how much has the DON assessed this initiative under CEQA?

DON has provided background on this initiative to the City. The City will be kept up to date along with other interested parties. The DON will conduct the appropriate level of environmental analysis under the National Environmental Policy Act (NEPA.)

The DON will not be assessing this initiative under CEQA, since as a federal agency it is not subject to CEQA. However, to whatever extent elements of a given proposal might hypothetically be determined to be outside the Navy’s sovereign immunity, the Navy would recommend that interested parties consult with their legal counsel to assess whether or to what extent CEQA compliance might be required.

24 When will the DON decide the big details about this project? The DON will be taking input received at the forum as well as your RFI responses to help shape and develop a potential leasing opportunity. The DON would then work on any required approvals/endorsements for said leasing opportunity prior to advertising through the Request for Proposals (RFP) on Federal Business Opportunities (FedBizOpps) in approximately 2020.

25 Could a commercial outlease solicitation be released earlier than 2020?

Yes of course, that is always a possibility. All Industry Forum attendees as well as Industry Forum RSVPs have been added to the Interested Parties List and will be notified by email when the Request for Proposal is released.

26 Is it definite that 6 vessels per quarter will rely on the Marine Terminal?

It is DON's intention to retain the right for up to 6 DON vessels per quarter on a non-priority basis during day to day operations, not to interfere with the lessee's other commercial operations.

27 Can we see more pictures of the assets included in this initiative, The Facility Condition Report in RFI N6247320RP001 contains pictures of

December 5, 2017 especially Pier 12 and the utilities under the pier panels? Also are the dock panels functional (removeable and replaceable)?

facilities located at both the Main Terminal and Marine Terminal (Pier 12). The Facility Condition Report is posted on FedBizOpps and is part of the RFI package.

Additional photos of Pier 12 as well as drawings to show the utilities, are included as Enclosure 2, as requested. The dock panels are functional.

28 Can we dredge at Pier 12, drop anchor? And is access above or below?

No. Due to the sensitivity of the sediment and the species that live within it, you would be unable to disturb the sediment in any way. There is a land use control in place. Access is above.

Please see Question 2.b in Request for Interest (RFI) N6247320RP001 and submit in your RFI response if your ideal plans would require dredging or dropping anchor.

The RFI is posted on Federal Business Opportunities or Navy Electronic Commerce Online (NECO) and can be searched for by Solicitation No.

N6247320RP001 or by clicking here:

https://www.neco.navy.mil/synopsis/detail.aspx?id=496840

29 What is DON -controlled under this initiative and Port of Long Beach/Port of Los Angeles controlled?

The 311 acres of Main Terminal and 8.3-acre Marine Terminal/Pier 12 are DON property. The Marine Terminal/Pier 12 are located within Long Beach and the Main Terminal is located within Los Angeles. The 45 miles of pipeline are DON pipelines but do not lie within DON property. Whereas the Main and Marine Terminal/Pier 12 may be outleased under this initiative, the pipelines may require other grants of interest.

30 Can more tanks be constructed under this initiative and will the initiative fall under NEPA or CEQA?

Yes, the DON is considering all options and requests your input via your RFI response. The appropriate level of NEPA documentation will need to be completed for any leasing action. The DON is not subject to CEQA. However, to whatever extent elements of a given proposal might hypothetically be determined to be outside the Navy’s sovereign immunity, the Navy would recommend that interested parties consult with their legal counsel to assess whether or to what extent CEQA compliance might be required.

December 5, 2017

31 What was the past permitted capacity of this complex? Please refer to Question 14 for the permitted capacity of the Marine Terminal.

32 Why did the Federal Government temporarily close this complex?

Were there Environmental concerns or was there less demand for fuel?

The temporary facility closure in 2014 was not due to environmental concerns.

While DON is retaining the property for potential support during a national crisis, DON is determining if the property is underutilized and could be available for commercial out-lease.

33 Is there a way the DON can provide us with the status of this initiative as it progresses? We are concerned we will miss FedBizOpps postings identifying what the DON is looking for and how the initiative has been refined.

Industry Forum attendees as well as Industry Forum RSVPs have been added to the Interested Parties List and will be notified by email with updates and link to the RFP posting.

34 Would tank construction at Main Terminal fall under NEPA, not CEQA or AQMD?

The appropriate level of NEPA documentation will need to be completed for any leasing action. The DON is not subject to CEQA. However, to whatever extent elements of a given proposal might hypothetically be determined to be outside the Navy’s sovereign immunity, the Navy would recommend that interested parties consult with their legal counsel to assess whether or to what extent CEQA compliance might be required.

The requirement for an air permit is typically dependent upon materials stored, manner of storage, any engineering controls that may be in place to reduce or restrict emissions, etc. Lessee will hold responsibility for investigating and implementing South Coast Air Quality Management District regulations and maintaining full compliance with all local, state and federal air regulations.

Please see Question 14 for additional, relevant permitting information.

35 If new construction of tanks, will DON construct and lease new asset to lessee?

No, any required construction or improvements would be completed by the Lessee on the leased premises.

36 What products/feedstocks are permitted for Main Terminal? DLA stored F76 (Marine Diesel), JP5 (High Flash Point Military Jet Fuel) and JP8 (Military Jet Fuel). Equivalent commercial grade products would be expected to be permitted in the future. Please include your planned product/feedstock in

December 5, 2017 your RFI response. DON requires F-76 and JP-5 products for its operational requirements.

37 What products/feedstocks are permitted for the different pipelines? DLA transferred F76 (Marine Diesel), JP5 (High Flash Point Military Jet Fuel) and JP8 (Military Jet Fuel). Equivalent commercial grade products would be expected to be permitted in future. Please include your planned product/feedstock for the pipelines in your RFI response. DON requires F-76 and JP-5 products for its operational requirements.

38 What products/feedstocks are permitted for Pier 12? DLA stored F-76 (Marine Diesel) and JP-5 (High Flash Point Military Jet Fuel).

F76, JP5 and JP8 were off-loaded across the pier and transported via pipeline to the Main Terminal. Equivalent commercial grade products would be expected to be permitted in future. Please include your planned product/feedstock for Pier 12 in your RFI response. DON requires F-76 and JP-5 products for its operational requirements.

39 What are the equipment pump capacities from Pier 12 to Main Terminal?

Please see attached pump capacity spreadsheet provided here as Enclosure 3.

40 What is the equipment pump capacity from Main Terminal through pipeline Segments 8 and 9?

Segments 8 & 9 are not currently connected to pump house 113 on the Main Terminal. A 12” flanged connection would be available on the Gaffey Street side of pump house 113 for connection of a future pipeline.

41 Where does Segment 9 terminate? Why? Segment 9 terminates at C St & Island Ave. It connects to other pipelines that are not Government-owned.

42 Are all pipelines smart piggable? The 10” Government Line & the two pier lines are the only known lines that are piggable.

43 Regarding the pipelines on Pier 12, is there secondary containment under the lines located under the Pier?

Yes, the secondary containment is located underneath the dock panels.

December 5, 2017

44 Capacities of loading and unloading on Pier 12? From tanker to Main Terminal is approximately 6,600 bbls per hour. The gravity feed from the Main Terminal to Pier 12 is approximately 4,300 bbls per hour.

DON warships can accept F-76 at a rate of approximately 3,000 gallons per minute and JP-5 at 10%-100% of that rate, depending on the type of ship and fittings installed. DON tankers/oilers can accept both fuel types at a rate of 4,000 barrels per hour, per hose.

45 Will the Government update soil testing at Pier 12? Updated soil testing at Pier 12 is not currently programmed.

46 What is updated depth at Pier 12? In 2008 the draft was 45’. The Government is looking to potentially complete a hydrographic survey.

47 Is the vacant land east and west of Pier 12 tank farm available for build? (other additional area on island available?)

The 8.3-acre Marine Terminal & Pier 12 is the only DON property available in that area. Use of adjacent or other area nearby would likely need to be addressed with the respective property owners.

48 Are pipelines connected to common carrier lines or vaults (Kinder Morgan, Plains, etc)?

The 2 pipelines from the Main Terminal to Pier 12 are not connected to any common carrier lines/vaults. The other pipelines however do have connections to common carrier lines that include Kinder Morgan Carson, Watson, Exxon Mobile, and Phillips 66.

49 What is the date of last structural survey? (MOTEMS above water and below water)

The last MOTEMS above-water inspection of Pier 12 was conducted in February 2016 and the last MOTEMS underwater inspection was conducted in 2013. A MOTEMS underwater inspection is being programmed for early 2018.

50 At Pier 12, what is the maximum size of ships that can be accommodated?

UP TO 50,000 DWT, MAXIMUM DISPLACEMENT 57,821 LT @ 0.33 FT/SEC

MAXIMUM LOA: 600.4 FT

MAXIMUM BEAM: 105.6 FT

MAXIMUM DRAFT: 42.0 FT

51 How will the DON determine FMV? Market Value will be estimated by an independent contract appraiser in

December 5, 2017 accordance with federal appraisal standards (UASFLA) and the Uniform Standards of Professional Appraisal Practice (USPAP). The property will be appraised in accordance with its Highest and Best Use.

52 What interests does DON have in the pipelines? Would we need other agreements for the pipelines outside of the lease?

The 311 acres of Main Terminal and 8.3-acre Marine Terminal/Pier 12 are DON property, owned in fee, and are available for outlease. The 45 miles of pipeline are DON pipelines but do not lie within DON property and may require other grants of interest.

Tank # Product Tank Material Size (Bbls) Gallons Type Construction Date 200 (LB) FSII SW Vertical 10000 AST 1985 201 (LB) Waste Steel 2,000 84,000 AST 1985 251 (LB) Waste Steel 2,500 105,000 AST 1985 252 (LB) Waste Steel 2,500 105,000 AST 1985 253 (LB) Waste Steel 2,500 105,000 AST 1985 254 (LB) Waste Steel 2,500 105,000 AST 1985 501 (LB) Waste Oil Steel 5,000 210,000 AST 1985 502 (LB) Waste Oil Steel 5,000 210,000 AST 1985 503 (LB) JP-5 Steel 5,000 210,000 AST 1985

2001 (LB) JP-8 Steel 20,000 840,000 AST 1985 2002 (LB) JP-8 Steel 20,000 840,000 AST 1985 2003 (LB) JP-8 Steel 20,000 840,000 AST 1985

70 (LB) Fire Water Steel 3,600 AST 1987

Marine Terminal AST Detail Enclosure 1

Pier 12 Plans Enclosure 2

Manufacturer Type Design Flow

Deadhead psig Operating

Pressure

Series

Pumping

Operating

Pressure

Series

Pumping

Deadhead

Pressure

HPSO Switch psig

TSV in

Pumphouses psig Manufacturer

Type/Power

Requirement RPM

1 Sulzer Bingham Single stage

Centrifugal 850 gpm 538 489 N/A N/A 550 None TECO

400-hp electric motor, 2,300 volts 3,580

2 Sulzer Bingham Single stage

Centrifugal 850 gpm 538 489 N/A N/A 550 None TECO

400-hp electric motor, 2,300 volts 3,580

3 Peerless Two stage

Centrifugal 1160 gpm 172 113 121 480 250 275 Allis Chalmers

200-hp electric motor, 2,300 volts 1,760

4 Peerless Two stage

Centrifugal 1160 gpm 172 113 121 480 250 275 Allis Chalmers

200-hp electric motor, 2,300 volts 1,760

5 Peerless Two stage

Centrifugal 1160 gpm 172 113 121 480 250 275 Allis Chalmers

200-hp electric motor, 2,300 volts 1,760

6 Peerless Two stage

Centrifugal 1160 gpm 172 113 121 480 250 275 Allis Chalmers

200-hp electric motor, 2,300 volts 1,760

7 Peerless Two stage

Centrifugal 1160 gpm 172 113 121 480 250 275 Allis Chalmers

200-hp electric motor, 2,300 volts 1,760

8 Peerless Two stage

Centrifugal 1160 gpm 172 113 121 480 250 275 Allis Chalmers

200-hp electric motor, 2,300 volts 1,760

Manufacturer Type Design Flow

Deadhead psig Operating

Pressure

Series

Pumping

Operating

Pressure

Series

Pumping

Deadhead

Pressure

HPSO Switch psig

TSV in

Pumphouses psig Manufacturer

Type/Power

Requirement RPM

1 Peerless Two stage

Centrifugal 766 gpm 172 113 170 322 Not set (225) 250 Allis Chalmers

200-hp electric motor, 460 volts 1,760

2 Peerless Two stage

Centrifugal 766 gpm 172 113 170 322 Not set (225) 250 Allis Chalmers

200-hp electric motor, 460 volts 1,760

3 Peerless Two stage

Centrifugal 766 gpm 172 113 170 322 Not set (225) 250 Allis Chalmers

200-hp electric motor, 460 volts 1,760

4 Ingersoll-Rand Single stage

Centrifugal 4,000 gpm 172 113 170 322 Not set (225) 250 U.S. Electric

600-hp electric motor, 460 volts 1,800

Pier Pump House

Pump Number

Pump Driver

Pump House 113 Pumps

Pump Driver

Pump Number

Main Terminal and Pier 12 Pump Summary Enclosure 3