SPE60014R0417_Questions.pdf

Responses to Questions for Solicitation SPE600-14-R-0417

Question 1: Thanks for the opportunity. One quick question, would the customer(s) entertain negotiations of the agreement terms, or would we need to agree to all terms of the RFP without modification?

Answer: Yes, DLA Energy may entertain negotiations of the solicitation terms and conditions. The Contracting Officer will make a determination on whether or not to open negotiations upon receipt of initial offers. See clause L705 paragraph (a)(7).

Question 2: If FERC approves a pipeline tariff change can Contractor adjust summer and winter adjustment factors up or down to reflect such change (i.e. fuel, usage/commodity, ACA, etc.)? If so, can that happen automatically or what is the process/requirements to change?

Answer: No, changes to the adjustment factor will not be considered in the case of revisions of fuel loss prescribed in pipeline tariffs. See terms and conditions in clause B700 paragraphs (b)(2) and (c).

Question 3: When LDC fuel loss is not required to be included in the Adjustment Factor (AF), and the Delivery Option selected on the Schedule Page is Full Requirements Utility or Full Requirements/Pool, are we to invoice based on the metered volume (gross up for LDC fuel)?

Answer: In accordance with clause B700, fuel loss is not included in the adjustment factor unless otherwise specified. Detail concerning quantities to be invoices is specified in clause C700 paragraph (e).

a. For Full Requirements/Utility - The Contractor shall invoice for the amounts dictated by the LDC…All costs to supply/service these accounts will be included in the fixed adjustment factor (or fixed price) as the Government will only pay the contract order price times the volume delivered to the LDC.

b. For Full Requirements/Pool - The Contractor shall invoice for the amount of natural gas delivered to the customer account(s) (to include amounts to cover LDC losses) times the monthly contract order price.

Question 4: Are the 3 Atlanta Gas Light Installations (Federal Law Enforcement Training Center, Fort Gordon, and Moody AFB) listed on page 3 of Attachment IV – Solicitation Schedule Page Line Item Summary, to be bid as a Tied Line Item Group – Line item 0038? I do not see specific instructions as to whether they are stand-alone facilities or Tied Line Item Groups.

Answer: Installations listed under LI 0038 are aggregated for award such that the same adjustment factors must be offered for all installations in LI 0038. LI 0038 is tied for award with installations listed under LI 0039. Offerors must offer for both LI 0038 and LI 0039 in order to be considered for award for those line items.

Question 5: Does the AF that is priced to a citygate delivery point exclude all associated LDC charges including associated fuel and/or distribution charges (unless otherwise specified in the Schedule Page)?

Answer: Yes, see clauses B1.06 paragraph (d) and B700 paragraph (b)(2) for terms concerning what costs are included in the adjustment factor and C700 paragraph (m) for terms concerning invoicing and LDC charges.

Question 6: Per I209.09 Extension Provisions (DLA Energy Jan 2012), The Government has the right to extend the contract under the same terms and conditions one or more times for a total of 6 months with 45 days written notice. Does this extension provision apply if a fixed commodity price has been locked for set volumes?

Answer: B704 - If a contract price is converted from fixed price with economic price adjustment to firm fixed price via mutual agreement, that agreement will specify the monthly delivery period and quantity converted. This period will not extend beyond the period of performance at the time of mutual agreement. The Government may consider alternate pricing methodologies for the extension period, but those terms would need to be incorporated by a separate mutual agreement.

Question 7: The Solicitation indicates the Contractor shall comply with the FAR clauses listed and incorporated in the contract by reference. One of the FAR Clauses is 52.219-4, Notice of Price Evaluation Preference for HUBZone Small Business Concerns. Per that Order, a factor of 10% shall be added to the price of all other offers – except for (i) those from HUBZone Small Business Concerns that haven’t waived their evaluation preference or (ii) otherwise successful offers from small business concerns. What is the definition of small business concern in item (ii)? Does it require the company to only meet the size requirements, or are other certifications required?

Answer: Per FAR 2.101 – “Small business concern” means a concern, including its affiliates, that is independently owned and operated, not dominant in the field of operation in which it is bidding on Government contracts, and qualified as a small business under the criteria and size standards in 13 CFR part 121 (see 19.102). Such a concern is “not dominant in its field of operation” when it does not exercise a controlling or major influence on a national basis in a kind of business activity in which a number of business concerns are primarily engaged. In determining whether dominance exists, consideration must be given to all appropriate factors, including volume of business, number of employees, financial resources, competitive status or position, ownership or control of materials, processes, patents, license agreements, facilities, sales territory, and nature of business activity. (See 15 U.S.C. 632.)

Per FAR 19.301-1 an offeror must represent in good faith that it is a small business at the time of its written representation. In order to be eligible for award as a small business, an offeror also must meet the size standard in the North American Industry Classification System for the code specified in the solicitation in accordance with FAR 19.102. The NAICS code for this solicitation is 211111. The size standard is currently no more than 500 employees.

Question 8: Is the Price Evaluation Preference for HUB Zone Small Business Concerns a factor of 10% that is added to other offers’ winter and summer adjustment factors?

Answer: Yes. Per FAR 19.1307(c), the factor of 10 percent shall be applied on a line item basis or to any group of items on which award may be made. Other evaluation factors, such as transportation costs or rent-free use of Government property, shall be added to the offer to establish the base offer before adding the factor of 10 percent.

Question 9: FAR Clause 52.219-4 states if a concern is both a HUBZone Small Business Concern as well as a small disadvantaged concern they will receive the benefit of both HUBZone Price Evaluation Preference and the small disadvantaged price evaluation preference. What factor is applied to other offers for the small disadvantaged business price evaluation adjustment?

Answer: Offers under this solicitation are not eligible for a small disadvantaged business price evaluation adjustment per the class deviation issued on March 12, 2010 by the Office of the Under Secretary of Defense. See DoD Class Deviation 2010-O0006 for more information.

Question 10: Can you confirm that the Federal Law Enforcement Training Center (AGL Brunswick Pool) and Fort Gordon (AGL Augusta Pool) will include monthly capacity release quantities of 60 dekatherms and 1350 dekatherms respectively on the Southern Natural Gas Pipeline that will be utilized by the winning bidder for purposes of serving the firm load requirements of each installation?

Answer: The Federal Law Enforcement Training Center contracts 90 dekatherms firm daily capacity through AGL under the specified firm rate structure. Fort Gordon contracts 1,350 dekatherms firm daily capacity through AGL under the specified firm rate structure.

All AGL specified firm charges and SoNat pipeline capacity charges for the specified firm volumes are reimbursable pass through charges.

The daily specified firm volumes for each line item will be utilized by the successful bidder to serve the firm load requirements.

Question 11: Regarding Monthly Order Quantities and Line Item 0012 – Fort Bragg. Would DLA consider adding language in the Monthly Order Quantities section for times when an OFO is called by the LDC, the 10 percent monthly tolerance reverts to a 2% daily tolerance and the price methodology reverts to the Gas Daily price for that flow date? Adding this language not only protects the contractor from the substantial risks on these days but also allows the customer to take advantage of high prices by cutting back usage on these days and getting a credit back at those prices.

Answer: No; offerors should offer based on the terms indicated on the schedule page.

Question 12: Regarding Line Item 0012 – Fort Bragg. Would DLA consider changing the Shortage Treatment Location to Transco Zn5 Dlv and the Include Adj. Factor to No? This would more properly reflect actual market conditions.

Answer: No, offers should be submitted in accordance with terms indicated in the schedule page.

Question 13: Regarding Line Item 0031 and 0032 – DOE Oak Ridge Operations. Does the firm capacity that the government owns on both pipelines get released to the contractor that wins the award?

If so, at what rate does the capacity get released at for each?

Answer: Yes, see C700 paragraph (l). Capacity is released in the amount indicated on the schedule page.

Question 14: Regarding Line Item 0031 and 0032 – DOE Oak Ridge Operations. Could the DLA provide historical monthly order volumes as well as historical intra month requests for both customers?

Answer: Rates to estimated quantities can be found on the schedule page.

Question 15: In regards to the RFP for the US South Region, for any location that receives gas supply service behind the TECO Peoples Gas LDC in Florida under the “NCTS rider”, how does the contracting office handle pipeline rate increases?

Answer: See answer to question two (2).