PWS_2021 MCAAP NG Transportation.pdf

2021 PERFORMANCE WORK STATEMENT

FOR

Natural Gas Transportation

AT

McAlester Army Ammunition Plant (MCAAP)

TABLE OF CONTENTS

SECTION PAGE

1. BACKGROUND 3

2. DESCRIPTION OF SERVICES 3

3. GENERAL INFORMATION 5

4. SERVICE SUMMARY 12

PERFORMANCE WORK STATEMENT

FOR

MCAAP Natural Gas Transportation

1 BACKGROUND:

1.1 This order is for natural gas (NG) transportation from the upstream transportation connection to MCAAP's gas system. Annual delivery requirements are approximately 375,000 DTH per year.

1.2 MCAAP purchases NG through a separate Defense Logistics Agency (DLA) Energy Delivery Order that provides the NG to the installation, but it does not include provisions for the transportation.

1.3 Centerpoint Energy Resources Corp. (CERC) owns the natural gas pipelines that supply NG to MCAAP. CERC controls the distribution of the NG along the interstate pipeline to MCAAP’s city gate acceptance point. Enable Gas Transportation LLC (EGT), controls the NG transportation along the interstate pipeline for this area.

1.4 MCAAP currently contracts with Enable to transport NG. This contract, W52P1J-16- P-3046, expires 30 April 2021.

2 DESCRIPTION OF WORK:

2.1 McAlester Army Ammunition Plant (MCAAP) seeks a 4-year, firm fixed price order for natural gas transportation services.

2.2 PERIOD OF PERFORMANCE: 4 year performance period will begin Oct 1, 2021 and continue until Sept 30, 2025.

2.3 REGULATIONS: These services shall be in accordance with state, local, installation and federal laws/codes related to transportation of natural gas. The Offeror shall conform to any changes in state or federal laws at no additional cost to the Government.

2.4 TRANSPORTATION SERVICES: The Offeror shall transport NG from the DLA Energy gas supplier, along the interstate pipeline, to MCAAP distribution point.

2.5 ANTICIPATED TRANSPORTATION DEMAND:

MCAAP’s monthly NG needs vary, peaking in the winter months. Daily delivery obligation shall be broken into two periods.

Period 1: 1,000 DTH/Day – April through October Period 2: 2,100 DTH/Day – November through March

2.6 TRANSPORTATION NOMINATIONS: All gas ordered is on a Firm basis. The DLA Energy gas supplier is responsible for daily Demand Side Management of the gas to keep MCAAP's nominated gas amount for pipeline transport in line with actual usage.

2.7 Gas nominations have been specified in the contract with the DLA Energy supplier and any orders or changes must be communicated from DLA Energy supplier to the transportation service contractor. Any changes to the monthly nominations must be made in writing or orally (with verbal orders being confirmed in writing within one day) two working days prior to the 25th of the month prior to the delivery to the DLA Energy supplier.

2.8 RATES AND CHARGES: For all transportation services furnished under this agreement, the Government shall pay the Offeror based on the Offeror's accepted rate.

The Offeror shall provide a complete listing of all rates that it proposes to charge during the term of this agreement along with a detailed explanation of the rate so that the Government can evaluate the overall cost of natural gas transportation. Whatever rate structure the Offeror suggests, the offer will be evaluated to determine that the Offeror is both responsible and that the offer can be determined by the contracting officer as both fair and reasonable.

2.9 For the purposes of charges, any demands due to faulty operations of, or to excessive or fluctuating pressure on, the Offeror's pipeline system(s) used to transport natural gas to MCAAP shall not be included as part of the Government's demand.

2.10 BALANCING: In the case of imbalances, the Offeror and MCAAP shall cooperatively use their best efforts under practical operating conditions to avoid an imbalance, i.e. an instance where gas supplied by MCAAP's gas supplier does not equal deliveries by the Offeror. The Offeror acknowledges that MCAAP may have a third party, the DLA Energy natural gas supplier, and nominating daily gas usage for MCAAP. If this supplier fails to provide appropriate gas nominations, the Offeror shall advise MCAAP of the situation and MCAAP shall immediately notify the gas supplier to rectify the matter. MCAAP understands that in the event of an imbalance that cannot be corrected, the Offeror is not obligated to deliver more gas during any given day or month than it shall have received during said period. Also, MCAAP understands that the Offeror does not have to receive or deliver a total quantity of gas in excess of the Maximum Daily Quantity or if a gas curtailment is in effect, the maximum contract demand purchased by MCAAP.

2.11 If the Offeror assesses monthly imbalance penalties and, if during the term of the agreement, plans to switch over to the daily imbalance penalties, the Offeror shall state this intention and such fees in the proposal. The Offeror may also suggest methods whereby MCAAP can reduce its risk to monthly or daily imbalance penalties.

2.12 INVOICES: Invoices for services rendered herein shall contain statements of the meter readings at the beginning and end of the billing period along with a sheet showing daily consumption at MCAAP. Meter constants, reservation volume, daily consumption during the billing period, all unit or fee cost elements used to calculate the invoiced dollar amount, and such other pertinent data as shall be required by the Government to verify invoiced gas usage and cost. Invoices shall contain the meter readings from the meters at the delivery point(s) that the billed gas usage is based upon.

2.13 PAYMENT: All invoices shall be sent to the MCAAP Energy Coordinator with a copy to the MCAAP Contracting Office. This may be accomplished by electronic means.

The name, address, phone number, fax number and electronic mail address of the MCAAP Energy Coordinator will be provided by MCAAP upon the award of this contract. MCAAP will notify the Offeror of any changes of said information.

2.14 Upon approval of the invoice by the MCAAP Energy Coordinator and the contracting officer, a call (order) will be placed on the order for the transportation services. MCAAP will then make payment through Wide Area Work Flow (WAWF).

Payments herein shall be contingent upon the availability of appropriations thereof, and shall not be made in advance of the service rendered.

3 GENERAL INFORMATION:

3.1 The DLA Energy gas supplier is required to supply all labor, material, tools, equipment, and incidentals to supply and deliver direct supply natural gas to the DLA Energy designated transmission receipt point. The measurement, testing, heating value, delivery pressure and quality of the natural gas delivered by the DLA Energy supplier is required to be in accordance with the terms and conditions of the delivery specifications of any upstream interstate pipelines. The Government is not obligated to purchase or pay the DLA Energy gas supplier for natural gas, that either the Local Distribution Company (LDC) or the interstate pipeline has refused to accept, due to nonconformance with its specifications.

3.2 PIPELINE SIZE AT DELIVERY: Offeror will provide at least a 6 in. diameter connection with operating pressures of at least 50 PSIG.

3.3 POINT OF DELIVERY: There are two existing delivery points for gas at MCAAP.

One point is on the East side of the installation property located at building #57. The other point is near the center of the installation near building #185B. The East point connects to the current transportation contractor's line, and the other point connects to Gothic Energy line from gas wells on MCAAP. MCAAP reserves the right to obtain gas from either delivery point for the duration of this contract. Offeror may propose alternative delivery point(s) for tying into MCAAP's main distribution lines. However, the Government must approve any alternative delivery point(s) and Offeror is responsible for all costs required to fulfill agreement requirements. These could include costs associated with construction/installation of roads, buildings, meters, etc.

3.4 METERING AND BILLING: Natural gas is currently metered at the East point by 2 turbine meters and at the point from the gas wells by one orifice meter. It is the responsibility of the Offeror to arrange with the existing/previous suppliers for the use of their meters or provide its own.

3.5 MEASUREMENT: (i) The unit of volume hereunder shall be 1,000 cubic feet of gas (sometimes referred to as MCF) at the standard temperature base and standard pressure base specified in the Standard Gas Measurement Law of Oklahoma.

Whenever the actual conditions of the pressure and temperature of the particular gas stream being measured differ from the above standard bases, conversion of the volume from such actual conditions to the above standard conditions shall be made in accordance with the ideal gas laws, corrected for super-compressibility as required under standard gas measurement law of Oklahoma in accordance with a method mutually agreeable to the parties. Applicable findings and field rules of regulatory authorities with jurisdiction for purposes of computations hereunder will be used.

3.6 (ii) Measurements of gas herein shall always be in accordance with the requirements of law, and if the procedures, bases, or standards which this contract contemplates used in the determination of gas volumes are changed by law or regulatory actions, then the price of gas hereunder and any other provisions of this contract directly or indirectly affected by such change shall be appropriately modified and adjusted.

3.7 If any meter or auxiliary equipment is out of service or out of repair for a period of time so that the amount of gas delivered cannot be ascertained or computed from the reading thereof, then the gas delivered during such period shall be estimated upon the basis of the best data available, using the first of the following methods which is feasible:

1. By correcting the error if the percentage of error is ascertainable by calibration, test, or mathematical calculations

2. By using the registration of any check equipment installed and accurately registering

3. By estimating the volume on the basis of deliveries during preceding periods under similar conditions when the equipment was registering accurately

4. By any other method proposed by the Offeror and approved by the Government.

3.8 QUANTITY: MCAAP's monthly consumption of natural gas over the past five years has been as follows:

3.9 MCAAP has plans to construct future production facilities that will require additional boiler capability. A demilitarization furnace is also in the final phase of testing and frequent use is expected when it come online. These projects could increase gas consumption by up to 10%.

3.10 PRESSURE: The Offeror shall maintain, at the point of delivery, a regulated pressure within five percent of the pressure requested by the Contracting Officer Representative but shall not be required to maintain more than 60 PSIG or less than 40 PSIG. The contractor shall adjust the incoming pressure to the installation within five hours after being contacted by the Contracting Officer Representative.

3.11 QUALITY: The gas to be delivered herein shall be natural gas. The gas so delivered shall contain no less than 950 BTU per cubic foot. The unit volume to determine total heating value shall be industry standard (one (1) cubic foot of gas saturated with water vapor at a temperature of sixty degrees (60°) Fahrenheit and an absolute pressure equivalent of thirty (30) inches of mercury at thirty-two (32°) Fahrenheit).

3.12 The NG Delivered shall be odorized under the standard contained in the Code of Federal Regulations Title 49 Part 192.625.

3.13 NG shall be commercially free from dust or other solid or liquid matter that might interfere with its merchantability or cause injury to or interference with proper operation of the lines, regulators, meters, and other equipment of the Government.

3.14 NG shall not contain more than a trace of hydrogen sulfide per one hundred (100) cubic feet of gas, as determined by industry accepted methods prescribed in standards for gas service.

3.15 NG shall not contain more than (20) grains of total sulfur per one hundred (100) cubic feet.

10,000 20,000 30,000 40,000 50,000 60,000 70,000

1 2 3 4 5 6 7 8 9 10 11 12

MCAAP NG Consumption (MMBTU)

2016 2017 2018 2019 2020

3.16 In the event the gas contains more than a trace of hydrogen sulfide per one hundred (100) cubic feet or more than twenty (20) grains of total sulfur per one hundred

(100) cubic feet, by industry accepted test method, the Offeror must immediately inform the Government. Upon request of the Government, the Offeror shall reduce the hydrogen sulfide content to not more than a trace per one hundred (100) cubic feet and the total sulfur content to twenty (20) grains or less per one hundred (100) feet.

3.17 UNIT OF MEASUREMENT AND UNIT BASE: The volumetric measurement base shall be one (1) cubic foot of gas at a pressure base of thirty (30) inches of mercury (14.73 pounds per square inch absolute), and without adjustment for water vapor content. To determine the volume of gas delivered, factors for pressure, temperature, specific gravity, and deviation from Boyle's Law shall be applied.

3.18 ATMOSPHERIC PRESSURE: The average absolute atmospheric (barometric) pressure shall be assumed to be fourteen and seventy-three hundredths (14.73) pounds per square inch, irrespective of actual elevation or location of the delivery point above sea level or variations in actual barometric pressure from time to time.

3.19 TEMPERATURE: The temperature of the natural gas flowing through the meter or meters shall be the arithmetic average of the hourly temperature record, or shall be read from established tables of monthly averages for the service location. The temperature of the gas at each point of delivery shall be determined by recording thermometer or other method by mutual agreement.

3.20 SPECIFIC GRAVITY: The specific gravity of the natural gas shall be determined by joint test using an Industry approved method, or other approved instrument, at the commencement of deliveries herein and as often thereafter as deemed necessary by industry standards.

3.21 DEVIATION FROM BOYLE’S LAW: The deviation from Boyle's Law shall be determined by tests or computed by industry methods based on the composition of the gas and conditions at point of measurement, with such reasonable frequency as is found necessary.

3.22 MEASURING EQUIPMENT: (i) The Offeror, at their expense, shall maintain, repair, operate, calibrate, adjust, and support at the delivery point(s), measuring stations properly equipped with displacement, orifice, turbine, or other meters and other necessary measuring equipment by which the volumes of the gas delivered herein shall be measured. Maintenance and upkeep of said facilities shall be done according to manufacturer specifications to ensure proper billing and life of meters and other measuring equipment. Orifice meters shall be installed and operated, and gas volumes computed, in accordance with manufacturing specifications. The Government shall have unfettered access to the Offeror's metering facilities.

3.23 (ii) The Government may install such check measuring equipment as it shall desire, provided that the equipment shall be so installed as not to interfere with the operations of the Offeror. The Offeror shall have access to the Government's check measuring equipment at all reasonable hours but the reading, calibrating and adjusting thereof and the changing of meters shall be done only by the Government unless otherwise agreed upon.

3.24 (iii) Both the Offeror and the Government shall have the right to be present at the time of any installing, reading, cleaning, changing, repairing inspecting, testing, calibrating, or adjusting done in connection with the other's measuring equipment used in measuring deliveries. All tests shall be preceded by reasonable notice to the other party. The records from such measuring equipment shall remain the property of the owner but, upon request, each shall submit to the other its records and charts, or true copies thereof, together with calculations there from, for inspection and verification, subject to return within thirty (30) days after receipt thereof, after which Offeror's charts and records shall be kept on file by the Offeror for the mutual use of both parties for such period and to the extent required by law.

3.25 (vi) If telemetering equipment is used to gather meter readings at the service location, the party with telemetering equipment shall make all the metering data/information available to the other party by providing the required software and telecommunication access at no charge.

3.26 GAS CURTAILMENT AND MCAAP POINTS OF CONTACT: In the event of a curtailment or stoppage of natural gas delivery to MCAAP's delivery point, the Offeror shall give notice to MCAAP as soon as the contractor determines that such an event is likely. If the Offeror fails to give, at minimum, a four hour notice for any gas curtailment for the daily usage period, MCAAP shall not be subject to any gas curtailment penalties for that particular daily usage period.

3.27 The Offeror shall notify the first person on the following list during normal duty hours listed in III.9. If the first person on the list is unavailable then the next person on the list is to be called and so forth.

1. MCAAP Energy Coordinator (918) 420-6246

2. MCAAP Director of Engineering and Public Works (918) 420-6689

3. MCAAP Pipe Shop Supervisor (918) 420-7671

3.28 If the Offeror is unable to talk directly with any of the above personnel or the call occurs after duty hours, then the Offeror shall call the MCAAP Fire Station at (918) 420- 6221 and, if no one answers, call the MCAAP Security Office at (918) 420-6642. The Offeror shall convey to the Fire Station or Security Office Personnel that they must inform all three of the above personnel immediately either at home or work of the impending gas curtailment.

3.29 STANDARDS OF CONDUCT: Contractor Personnel must adhere to standards of conduct as established by the Installation Commander.

3.30 SECURITY REQUIREMENTS: Contractor shall adhere to current installation security policies.

3.31 PHYSICAL SECURITY: The contractor shall be responsible for safeguarding all government property provided for contractor use. At the close of each work period, government facilities, property, and materials shall be secured.

3.32 ACCESS TO THE INSTALLATION: The Government will grant the successful Offeror a revocable permit or license to enter the serviced premises for any proper purpose under this agreement, subject to certain restrictions. This permit or license includes the use of the site or sites agreed upon by the parties for the installation, operation, maintenance and repair of the facilities of the Offeror located upon the service premises.

3.33 The Offeror shall be authorized routine access for system operation and maintenance, restoration of service or meter reading.

3.34 The Government shall notify the successful Offeror of any hazardous or restricted access area that may occur during the period of this agreement which require special coordination procedures for service operations. The parties shall jointly develop procedures to provide routine and emergency service within such areas.

3.35 Offeror personnel shall complete security forms at the MCAAP security office prior to being issued Government identification. Only U.S. citizens shall be issued identification that allows unescorted travel in unsecured areas on Plant. During the length of this agreement, it is not anticipated that personnel will require entrance into secured sites on plant. If it is deemed necessary that they must enter a secured site on the installation, Offeror personnel must be accompanied by person or persons with the appropriate security clearances.

3.36 EASEMENT AND RIGHT OF WAY: The Government will provide easements and/or right-of-way access to the equipment and/or facilities operated by the successful Offeror. The Offeror shall submit in the proposal what easements and/or right-of-away access they require. After review, the Government will provide easements and/or right-of-way access to the equipment and/or facilities operated by the Offeror that it deems appropriate for the performance of this agreement. After the initiation of this agreement any new requests for easements and/or rights of way shall be submitted to the Directorate of Engineering and Public Works for approval.

3.37 DIGGING PERMITS AND NOTIFICATIONS: The Offeror shall subscribe to "call-before-you-dig" or "one-call" notification services in the state of Oklahoma and comply with MCAAP Digging Permit Requirements. For routine excavations, each party shall provide (5) five working days’ notice of an intention to dig to the other party. Notification shall include the name, address, phone number of person making request and the exact location, extent, nature and duration of the excavation. The requesting party shall mark the proposed excavation location with paint or flags, no more than 24 hours prior to excavation, and shall meet with the Government/Offeror personnel by appointment at the site (if requested) to discuss details. The Government/Offeror shall provide a response, locating and marking underground facilities and obstructions, or request a site meeting within 72 hours of notification. All parties shall record and refer to tracking numbers in correspondence. Digging without notification and permit shall be at the risk of the party performing work, and such party shall be liable for all damages and repairs.

No routine, non-emergency, digging or excavation shall be performed on the service premise after 1600 hours on Monday through Thursday or anytime on Friday or the weekend, unless prior approval is obtained.

3.38 C OMPLIANCE WITH ENVIRONMENTAL AND SAFETY LAWS/CODES: The Offeror shall comply with all Federal, state and local environmental and safety laws and shall be responsible for environmental assessments, studies and coordination applicable to Federal, state, and local agencies required to execute their portion of this contract. This shall include, but not be limited to, all assessments, studies, permitting and coordination required to comply with Federal, state and local laws regarding endangered species, historic/archaeological, and hazardous/toxic materials.

Units of Measure M = 1,000

MM = 1,000,000

MCF = 1,000 Cubic Feet MMBTU = 1,000,000 British Thermal Units Daily Usage = The difference in meter/s readings starting at 9 am of any given day and the meter/s reading a subsequent 24 hours later unless explicitly redefined by the Offeror in their proposal.

MCAAP NORMAL HOURS OF OPERATION: Normal work hours for MCAAP personnel are Monday through Thursday, 6:00 a.m. to 4:30 p.m. MCAAP's normal work schedule is four (4) ten (10) hour days.

Legal Holidays for MCAAP are as follows:

New Year’s Day - January 1st MLK Day - Third Monday in January Presidents Day - Third Monday in February Memorial Day - Fourth Monday in May Independence Day - July 4th Labor Day - First Monday in September Columbus Day - Second Monday in October Veterans Day - November 11th Thanksgiving Day - Fourth Thursday in November Christmas Day - December 25th

4 SERVICES SUMMARY:

Performance Objective PWS

Para Performance Threshold

Transportation Services 2.4, 2.5, 2.6, 2.11

EGT will receive monthly NG nomination from DLA Energy supplier and transport requirement to MCAAP citygate.

EGT will invoice MCAAP for monthly nomination transported.