RFP 260000002522 Q & A.xlsx

XLSX spreadsheet 16 KB Posted

Attached to
Prequalification for Oil & Gas Services FY26 4th QTR
Solicitation number
RFP 761 260000002522 2
Issued by
Michigan

About this file

This is a Question and Answer document from the Michigan Department of Environment, Great Lakes, and Energy (EGLE) addressing bidder inquiries regarding RFP 260000002522 for prequalification of oil and gas well plugging and reclamation services. The RFP seeks contractors to perform orphan well plugging projects, with package sizes varying from 1 to more than 20 wells per package and average well depths ranging from 1,000 to 4,000 feet. EGLE currently has approximately 10 projects in development, though this number changes as wells are added to the orphan well list. The prequalification period runs from April 1, 2021 to March 31, 2028, with new contracts awarded under this RFP effective from their individual start dates through March 31, 2028. A pre-proposal meeting was held to address bidder questions regarding project scope and contract requirements.

Key contractual and operational requirements include no bonding requirements (bid bonds, performance bonds, or payment bonds are not mandated), with background checks at the state's discretion. Davis-Bacon prevailing wage requirements apply only to projects funded in whole or in part with federal funds, with EGLE identifying applicable wage determinations in each Request for Quotation. Contractors may charge for labor and equipment related to salvage loading and transportation, though they cannot collect commissions, storage, handling, or transportation fees beyond these compensable line items. The Clean Corporate Citizen designation under Part 14 of the Natural Resources and Environmental Protection Act (1994 PA 451) is required prior to award, and Michigan tax nexus certification is required but non-disqualifying for out-of-state bidders. No liquidated damages are included in the contract terms, and detailed project information is available through the Michigan Orphan Wells Dashboard.

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Sheet1

Question #SectionPage #Bidder QuestionEGLE ResponseOther
1Pre-proposal meetingFor most of your plugging projects, there's reclamation and everything included into each one, right?Yes. There will be bid items for reclamation.
2Pre-proposal meetingWhat about the package sizes on average?Packages could be anything from 1 to more than 20 per package.
3Pre-proposal meetingDoes EGLE require any bonding for these projects?No bonding required.
4Pre-proposal meetingOn the note of bonding, just performance bonds, or is there also a bond to be submitted with the bid? I know West Virginia and Pennsylvania require us to have performance bond, payment bond, and a bid bond.No bonding required.
5Pre-proposal meetingDo you know how many projects you have planned for next year, or is there any place to see what is scheduled for the coming years?EGLE has approximately 10 projects in the works right now, but that constantly changes as wells are added to the orphan well list. More information can be found on the Michigan Orphan Wells Dashboard (link in column F).Michigan Orphan Well Dashboard
6Pre-proposal meetingThis is a five-year seat correct?The period for these prequalification contracts is 4/1/2021 to 3/31/2028. If awarded a new contract as a result of this RFP, the contract period would the start date (for example October 15, 2026) to March 31, 2028.
7Pre-proposal meetingWhat's the average depth of the wells that are being plugged or planned to be plugged?Most wells are approximately 1,000 to 4,000 feet.
8Schedule A, Statement of Work, Period of Performance; and Standard Contract, opening paragraph.Pages 19 and 43Schedule A states the prequalification period will be five years with two one-year options. The Standard Contract states the Contract is effective October 15, 2026 and expires March 31, 2028. Which governs a contract awarded under this RFP?The period for these prequalification contracts is 4/1/2021 to 3/31/2028. If awarded a new contract as a result of this RFP, the contract period would the start date (for example October 15, 2026) to March 31, 2028.
9Vendor Questions Worksheet, Other, Certification of Michigan Business, Public Act 431 of 1984, Sec. 268.Page 16Is a NO response disqualifying for a bidder with no current Michigan tax nexus, or is the certification informational?No, this would not disqualify a bidder.
10Vendor Questions Worksheet, Other, Clean Corporate Citizen.Page 17Does this refer to the formal Clean Corporate Citizen designation under Part 14 of the Natural Resources and Environmental Protection Act, 1994 PA 451? If so, is the designation required prior to award, and is it available to a bidder that does not operate a facility in Michigan?Yes, this does refer to the formal Clean Corporate Citizen designation under Part 14 of the Natural Resources and Protection Act, 1994 PA 451 and is required prior to award.EGLE is working to confirm that this is available to a bidder that does not operate a facility in Michigan. An amended Q & A will be posted once that information is available.
11Contract Terms, Federal Provisions Addendum, Section B, Davis-Bacon Act, Prevailing Wage.Page 60Does Davis-Bacon apply to every Request for Quotation issued under this Contract, or only to project assignments funded in whole or in part with federal funds? Will EGLE identify the applicable wage determination with each RFQ?Davis-Bacon only applies to projects funded in whole or in part with federal funds. For those projects, EGLE will identify the applicable wage determination with each RFQ.
12Schedule A, Statement of Work, Requirements C, bid and sale of equipment and salvage.Page 26The Contractor must solicit at least three bids, obtain OSC approval, collect payment, supervise removal, and remit proceeds to the State, and may not collect any commission, storage, handling or transportation fee. Is the Contractor's labor to conduct the salvage sale and prepare the two required inventories a compensable line item in the RFQ response, or is it treated as overhead?The contractor can charge for equipment and labor to load and transport salvage.
13Contract Terms, Section 12Page 48Request confirmation that background checks are not required as they are not specified in Schedule A.Background checks are at the discretion of the State. EGLE has not performed background checks on any of the contractors to date.
14Contract Terms, Section 21Page 50Request confirmation that there are no liquidated damages.Liquidated damages are not included in Schedule A, therefore, are not applicable.

https://egle.maps.arcgis.com/apps/dashboards/33245f79c74b4b0ca24768c947fd8fa6

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