SPE60016R0411_Questions_and_Answers.pdf

DLA Energy FEAD-B

SPE600-16-R-0411

Q&A

QUESTIONS & ANSWERS

STAND ALONE ITEMS

0001 WESTOVER ARB

1. For line item 0001, is the single account (with the 2 meters) listed on the schedule page the only accounts being served by this facility and respective for the associated volumes on the solicitation?

ANSWER: NO, there are 3 Accounts, 4 meters total, all listed on the schedule pages.

2. Would DLA consider changing the SIP from Transco Zn6 Non-NY to TennZn6 Delivered?

ANSWER: No. The SIP will remain Transco Zn6 Non-NY.

0003 USMA WEST POINT

1. Can the DLA provide any insight on its operation and the additional new gas fired electric generation plant? Will this be running year round? Will this operate in the summer only?

ANSWER: The Cogeneration plant has not started operations. It is schedule to come on board in FT 20. It will be running year round once it becomes operational.

2. Will the DLA negotiate an equitable price adjustment once the usage data becomes available?

ANSWER: No, DLA Energy will not negotiate an equitable price adjustment after contract award.

3. Given the uncertainty of the usage data for Line Item 0003 (West Point), would the DLA consider changing their delivery option to (3) Monthly Order Quantities or (4) Monthly Order Quantities No Swing?

ANSWER: Line Item 0003 USMA West Point will remain an Option (2) Full Requirements/Pool customer.

0005 FCI McKean

1. There is a different SIP listed for first of month and Overage and Shortage Volume Pricing although the same adjustment factor is to be used. Either the same SIP or different adjustment factors will need to be used. Will this be corrected?

ANSWER: The correct SIP should be Henry Hub for monthly and the Overage and Shortage Volume Pricing. An updated schedule page will be provided via Amendment 1.

2. For Line Item 0005 (FCI McKean) - Would DLA consider changing the Location value in the

Overage and Shortage Volume section from Lebanon Hub to Dominion South Point? This location is more accurate given the installations geographic location.

ANSWER: Please refer to the schedule pages. The SIP is indicated as Henry Hub and will remain Henry Hub.

0006 Tobyhanna

1. Is it possible to change the SIP from Transco Zone 6 non-NY to Transco Leidy or even Transco

Zone 6 non-NY North to better represent where the supply originates?

ANSWER: No. The SIP will remain Transco Zn6 Non-NY.

0008 NSA Philadelphia

1. Please verify the Estimated Usage Information. It does not seem reasonable to have zero usage for May and October and 500 dths for September.

ANSWER: The estimates provided are correct.

2. Is it possible to change the SIP from Henry Hub to Transco Zone 6 non-N.Y. North to better represent where the supply originates?

ANSWER: No, the SIP location will remain Henry Hub.

0009 DOE Bettis Atomic Power Lab

1. Would DLA consider changing the Location value in the Overage and Shortage Volume section from Henry Hub to Dominion South Point?

ANSWER: No, the SIP location will remain Henry Hub.

AGGREGATED GROUP #2

0013 (1 of 2) USP Lewisburg, UNICOR 0013 (2 of 2) USP Lewisburg, Penitentiary

1. 0013 (1 of 2) USP Lewisburg, UNICOR: Estimated Usage Information for May through August and October are much lower than listed on the last solicitation. Has there been a project that would reduce usage for only these months?

ANSWER: No, there are no ongoing or anticipated projects at this location and the previously provided estimated volumes are accurate.

2. 0013 (1 of 2) USP Lewisburg, UNICOR: Is it possible to change the SIP from Henry Hub to Tetco M3 to better represent where the supply originates?

ANSWER: The SIP will be changed to Tetco M3. An updated schedule page will be provided via Amendment 1.

3. 0013 (2 of 2) USP Lewisburg, Penitentiary: Only October and December through March volumes were changed from the last solicitation. Were all months updated and it is a coincidence that other months remained unchanged?

ANSWER: The estimated volumes are correct.

4. 0013 (2 of 2) USP Lewisburg, Penitentiary: The Beginning and Ending Periods have not been updated on this schedule page.

ANSWER: Correct. An updated schedule page will be provided via Amendment 1.

5. 0013 (2 of 2) USP Lewisburg, Penitentiary: Is it possible to change the SIP from Henry Hub to Tetco M3 to better represent where the supply originates?

ANSWER: The SIP will be changed to Tetco M3. An updated schedule page will be provided via

TIED GROUP #1

0014 Carlisle Barracks 0015 NSA Mechanicsburg 0016 DLA Distribution – Mechanicsburg – DS 0017 DLA Distribution – Mechanicsburg – IS 0018 DLA Distribution – Susquehanna – DS 0019 DLA Distribution – Susquehanna – IS

1. Can you provide the accounts served by UGI capacity? Which of these accounts receive UGI capacity and are not to be charged for capacity charges? Which require 3rd party delivered capacity? Could we please get the estimated volumes broken down so that we can see which is served by UGI capacity and which is served by third party capacity and price accordingly?

ANSWER: DLA Energy will provide a Letter of Authority (LOA) to any marketer who wishes to seek account information for any Line Item.

2. For Line Item 0017 (DLA Distribution – Mechanicsburg – IS) – Will DLA provide additional detail, such as estimates by meter for the volumes associated to the buildings changing service and to be connected in the future?

seek account or meter information for any Line Item.

3. Given the scheduled building connections for Line Item 0017, would the DLA consider changing their delivery option to (3) Monthly Order Quantities?

ANSWER: No, the customer will remain an Option (2) Full Requirements/Pool customer.

4. Since line items 0014 through 0019 are a Tied Group, can the new buildings set to be connected in the future be price separately at a later date?

ANSWER: No, the new buildings set to be connected shall not be priced separately at a later date.

5. 0018 Susquehanna DS: Per Note #3 Bldgs 110, 301 and 753 must flow on third party gas. Note #1 states that Susquehanna utilizes UGI capacity. It seems that these two Notes contradict each other.

ANSWER: Both Note #1 and Note #3 are correct and applicable. These notes are not an either/or scenario.

6. 0014 Carlisle, 0015 NSA Mechanicsburg, 0016 DLA Mechanicsburg DS, 0018 Susquehanna DS: The supply region for these line items is Tetco M2. The UGI capacity referenced transports gas from Tetco M2 (production zone) to Tetco M3 (market zone). Is it possible to change the SIP to Tetco M2? Therefore, the SIP would not include the cost of delivering gas from the production zone to the market zone which is covered by the UGI transport.

ANSWER: No, the SIP location will remain Tetco M3.

TIED GROUP #6

0029 SUBMARINE BASE NEW LONDON

0030 SUBMARINE BASE NEW LONDON

1. Would be DLA supply the account number and meters associated with Tied Group 6 to be able to provide the most competitive price possible? An LOA is required by the LDC to be able to get this information. Can the DLA provide the associated account numbers for the facility?

seek account and meter information for any Line Item.

2. Line Item 0029 states FIRM delivery, however the location states they have an alternative fuel, and no curtailment days. Can you explain any detail on how the facility expects to use their alternative fuel?

ANSWER: Correct Line Item 0029 should have NO alternative fuel listed. An updated schedule page will be provided via Amendment 1.

TIED GROUP #7

0031 NAVAL STATION NEWPORT - FIRM

0032 NAVAL STATION NEWPORT – THERMAL ACCOUNTS

0033 NAVAL STATION NEWPORT – INTERRUPTIBLE

1. Would the DLA consider separation of line items from Tied Group #7 by Pool due to dependencies of the requirements to serve?

ANSWER: No, Tied group #7 will remain tied.

2. Can you provide which pools (FT-1 , FT-2 , etc) the accounts associated to Tied Group #7 belong?

seek account information for any Line Item.

3. Can you confirm if any line items in Tied group 7 are NOT exempt from capacity?

ANSWER: All line items under Tied Group #7, require upstream capacity.

4. For Line Item 0031/0032/0033 (Naval Station Newport), Would DLA consider changing the SIP from Henry Hub to Algonquin CG?

ANSWER: The correct SIP is Henry Hub for monthly and the Overage and Shortage Volume Pricing. An updated schedule page will be provided via Amendment 1.

TIED AGGREGATED GROUP #1

0034 (1 of 22) Fort McNair 0034 (2 of 22) JFK Center for the Performing Arts 0034 (3 of 22) Joint Base Anacostia Bolling 0034 (4 of 22) Naval Research Lab, Washington DC 0034 (5 of 22) US Naval Observatory 0034 (6 of 22) Washington DC Navy Yard 0034 (7of 22) Bethesda Naval Hospital

0034 (8 of 22) Fort Detrick 0034 (9 of 22) Fort Detrick - Forest Glen 0034 (10 of 22) Intelligence Community Campus - Bethesda 0034 (11 of 22) Joint Base Andrews AFB 0034 (12 of 22) NAS Patuxent River 0034 (13 of 22) National Institute of Health 0034 (14 of 22) NSWC Carderock 0034 (15 of 22) US Army Garrison Adelphi Lab Center 0034 (16 of 22) USDA Beltsville 0034 (17 of 22) Fort Belvoir 0034 (18 of 22) JBM-HH, Fort Myer - Henderson Hall 0034 (19 of 22) Mark Center 0034 (20 of 22) National Geospatial Intelligence Agency (NGA) 0034 (21 of 22) Pentagon 0034 (22 of 22) U.S. Geological Survey 0035 (1 of 16) Defense Intelligence Agency 0035 (2 of 16) Joint Base Anacostia Bolling 0035 (3 of 16) Naval Research Lab, Washington DC 0035 (4 of 16) Walter Reed Facility 0035 (5 of 16) Washington DC Navy Yard 0035 (6 of 16) Bethesda Naval Hospital 0035 (7 of 16) Fort Detrick 0035 (8 of 16) Fort Detrick - Forest Glen 0035 (9 of 16) National Institute of Health 0035 (10 of 16) NSWC Carderock 0035 (11 of 16) US Army Garrison Adelphi Lab Center 0035 (12 of 16) USDA Beltsville 0035 (13 of 16) Mark Center 0035 (14 of 16) National Geospatial Intelligence Agency (NGA) 0035 (15 of 16) Pentagon 0035 (16 of 16) Pentagon Incinerator

1. Fort McNair and JFK Center (1 and 2 of 22) have different volumes for year 1 and year 2. Is this correct?

ANSWER: Yes, this is correct.

2. Naval Research Lab (4 of 22) load shape looks odd. It is 557 for February and 5358 for March.

Is this accurate?

3. Bethesda (7 of 22) has 0 usage for January. Is this accurate?

4. Ft Detrick (9 of 22) has 758 for August and nothing the rest of the summer. Is this accurate?

5. ICCB (10 of 22) has blank usage for Jan and Feb 2016. It also has the years of 2015, 16 and 17 instead of 2017-2019.

ANSWER: Correct. The contract performance years will be updated to 2017, 2018, & 2019.

The volumes for year 2018 should be the same as the volumes for year 2019, and will also be revised. An updated schedule page will be provided via Amendment 1.

6. Carderock (14 of 22) has usage of 377 in January and 3325 in February. Is this accurate?

7. JBM-HH Ft Myers (18 of 22) has different usages in year 1 and year 2 for April-December. Is this accurate?

8. USGS (22 of 22) has only 120 for May 2015 and 6120 for May 2016. Correct. The contract performance years will be updated to 2017, 2018, & 2019. The consumption estimate for April 2017 will be revised to 6120. An updated schedule page will be provided.

9. DIA (1 of 16) the loads are lower for Jan and Feb than they are for December and March. Is this due to curtailments or is there another reason?

ANSWER: Yes, the lower volumes reflect slowing down of operations for these months and account for curtailments.

10. Washington Navy Yard (5 of 16) has a load of 2600 in March and 14280 in April. Is this accurate? Does this reflect curtailments?

ANSWER: Yes, the lower volumes reflect slowing down of operations for the month of March and account for curtailments.

11. Fort Detrick, Line Item 0035 (7 of 16), is included in the Interruptible group, but has no interruption days. Should this be included in the Firm group?

ANSWER: Fort Detrick has changed their requirement. Line Item 0035 (7 of 16) will be removed from this procurement entirely. An updated schedule page listing will be provided via

12. Carderock (10 of 16) has a much lower load for January than February. Is this accurate? Does this reflect curtailments?

ANSWER: Yes, this is correct and the volume estimates account for curtailments.

13. Adelphi (11 of 16) has a much lower load for February than March. Is this accurate?

14. USDA Beltsville (12 of 16) has a much lower load for January than February. Is this accurate?

Does this reflect curtailments?

15. National Geospatial Intelligence Agency (14 of 16) has a much higher load in the second year for October through February. Is this accurate?

TIED AGGREGATED GROUP #2

0036 (1 of 6) USCG Curtis Bay 0036 (2 of 6) US Naval Academy 0036 (3 of 6) Maryland Procurement Office 0036 (4 of 6) John Hopkins Applied Physics Lab 0036 (5 of 6) Aberdeen Proving Grounds 0036 (6 of 6) Fort George G. Meade 0037 (1 of 4) USCG Curtis Bay 0037 (2 of 4) US Naval Academy 0037 (3 of 4) Maryland Procurement Office 0037 (4 of 4) Aberdeen Proving Grounds

1. Curtis Bay (1 of 6) has a completely flat load except for the first April-June. Is this accurate?

2. Aberdeen Proving Grounds (0036 5 of 6 and 0037 4 of 4) states that it is moving several accounts from Interruptible to Firm. Does it anticipate moving any more accounts away from interruptible than have already moved as of today? Please give us the account numbers for the Firm and the Interruptible.

ANSWER: Moving additional accounts away from interruptible services is not anticipated at this time.

3. Aberdeen also refers to a CHP starting up in the summer of 16. Is this currently running at full operations or will there be more increases? The Aberdeen interruptible load shows a significant increase in the second winter compared to the first winter. The monthly loads more than double.

Is this accurate? What is causing this increase?

ANSWER: The CHP is currently in the commissioning stage. The anticipated increase in usage is reflected in the second year’s estimated winter consumption volumes.

GENERAL QUESTIONS:

1. Will the DLA please provide a breakdown by meter that comprises the totals listed as Estimated Usage Information? This may help interpret the Notes when specific meters are mentioned.

ANSWER: The DLA will provide a Letter of Authority (LOA) to any marketer who wishes to seek account and meter information for any Line Item.

2. Will the DLA please provide billing information?

ANSWER: DLA Energy is unable to provide billing information.

3. Is it required that each meter under a line item be billed separately or can all meters be listed individually on one bill?

ANSWER: For invoicing requirements, please refer to Page 11 of the solicitation, section (m) INVOICING AND PAYMENT. Listing all meters on one bill is the preferred method.

4. Will all meters be billed to the same billing address or sent to different contacts?

ANSWER: Please refer to Page 11 of the solicitation, section (m) INVOICING AND PAYMENT.

The invoice remittance point of contact and address is found in the customer specific schedule page. At the same time the original invoice is mailed to the Invoice Certifying Office, a copy of the invoice shall also be sent to the Contract Specialist assigned to the administration of the contract via electronic or non-electronic means.

5. Will DLA Energy take questions related to installation volumes, account information, metering, etc. beyond the 8/18/2016 deadline?

ANSWER: No, DLA Energy will not take questions beyond the 8/18/2016 deadline.

6. Section C – Statement of Work – (e) Delivery / Management Options – (4) Monthly Orders – No Swing: Should the customer consume more natural gas or less natural gas in a month than they order, will the settlement of natural gas outside of the ordered volume be described in the Schedule Pages?

a. Note: The following installations are on this delivery option and do not have settlement language: Tobyhanna Army Depot, Quantico MCB, FBI Quantico, Ft Lee, DLA Aviation Richmond

ANSWER: Should the customer consume more or less natural gas in a month than they order, prices shall be agreed upon between the Government and the supplier on a case by case basis, prior to invoice distribution.

7. Section C – Statement of Work – (j) Penalties and Cash Outs: For accounts served under “Monthly Order – No Swing”, should suppliers pass thru LDC balancing fees as a separate line item on the invoice or include them in their Adjustment Factor?

ANSWER: Suppliers should pass through LDC balancing fees as a separate line item. The applicable schedule pages will be updated via Amendment 1.

8. Section M – Statement of Work – (m) Invoicing and Payment: In the case where DLA Energy is not receiving and certifying the invoice, are copies acceptable via email?

ANSWER: Please refer to Page 11 of the solicitation, section (m) INVOICING AND PAYMENT.

The invoice remittance point of contact and address is found in the customer specific schedule page. At the same time the original invoice is mailed to the Invoice Certifying Office, a copy of the invoice shall also be sent to the Contract Specialist assigned to the administration of the contract via electronic or non-electronic means. Email is an acceptable and preferred means of electronic invoice remittal.

9. H-0001 H700 TRANSPORTATION ASSISTANCE AND NOTIFICATION OF TARIFF/RATE

CHANGES (NATURAL GAS): Can the DLA amend this section to address additional costs / revenues, which it has done in the Material Change section of this RFP (see proposed edit below)?

a. The Contractor shall give the Contracting Officer and the installation written notice of the filing of an application for transportation tariff/rate changes and/or the schedule of a tariff/rate hearing that would impact installations within one working day of receiving such application or notification of such hearing. If a tariff / rate change causes additional costs or results in additional revenues, the Contractor and the Government shall agree on an equitable adjustment.

ANSWER: No, DLA will not amend this section of this RFP.

10. I-0004 I209.09 EXTENSION PROVISIONS: Can the DLA amend this section to address additional costs / revenues, which it has done in the Material Change section of this RFP (see proposed edit below)?

a. (a) The Government shall have the right to extend this contract on the same terms and conditions one or more times for a total of no more than six months. Notice of contract extension will be furnished to the Contractor not later than 45 days prior to expiration of the contract ordering period or any extension thereof. Nothing in this contract provision precludes the Contractor from agreeing to an extension of the contract if the DLA Energy Contracting Officer fails to issue the notice prior to 45 days before the end of the ordering period. (b) Extension of this contract shall be considered to have been accomplished at the time the DLA Energy Contracting Officer provides written notification to the Contractor. (c) If a contract extension causes additional costs or results in additional revenues, the Contractor and the Government shall agree on an equitable adjustment.

ANSWER: No, DLA will not amend this section of this RFP.

11. For all Line Items using Delivery Option (3) Monthly Order Quantities (e.g.: 0002 – Ft Drum), can the DLA please change the value of “Include Adj. Factor” from “YES” to “No” for the Shortage Treatment?

ANSWER: For Line Items listed as Delivery Option (3) Monthly Order Quantities, the option to include Adjustment Factor will remain “YES.”

12. For Line Item using Delivery Type “Limited Interruptible”; if the number of LDC / Pipeline Interruptions exceeds the allocated for curtailment days, is that considered an excusable delay?

Please note that facilities that take natural gas from their LDC on an interruption day will experience LDC penalties up to 25 times the prevailing market rate that day so it’s in all parties’ best interest for the facility to be interrupted.

ANSWER: No, exceeding the allocated curtailment days for any reason is not considered an excusable delay. Please see page15 of the solicitation, section (f) EXCUSABLE DELAYS for a complete definition of an excusable delay.

13. For items that have LDC read variations (Tied group 001, GROUP 1, and GROUP 2), will the DLA accept an invoice that splits the usage data based on the number of days in a month? This will yield a more accurate price with respect to the settlement price of gas.

ANSWER: No, DLA Energy will not accept an invoice that splits the usage data based on the number of days in a month. For details concerning invoicing, please see page 11 of the solicitation, section (m) INVOICING AND PAYMENT.

14. Regarding line items 0012 McGuire Large and Small Accounts (2 of 3, and 3 of 3), and 0025 JB- MDL Lakehurst, are any load changes expected once the Southern Reliability Link is completed?

ANSWER: The customer indicated no load changes are expected at this time.

15. Line items 0027 and 0028 belong to Market Area 30. Line item 0026 belongs to Market area 33.

Would the DLA be willing to divide Tied Group 5 by market area to allow for greater competition for these line items?

ANSWER: No, Tied Group 5 will not be divided.

16. Can you provide the rate classes and account numbers for?

Tobyhanna Army Depot Letterkenny Army Depot Naval Support Activity Philadelphia Dover AFB DOE Princeton Plasma Physics Lab JB MDL- McGuire Area- Large Account JB MDL- McGuire Area- Small Accounts USP Lewisburg UNICOR USP Lewisburg Penitentiary Carlisle Barracks Carlisle Barracks Naval Support Activity Mechanicsburg DLA Distribution - Mechanicsburg - DS DLA Distribution - Mechanicsburg - IS DLA Distribution - Susquehanna - DS DLA Distribution - Susquehanna – IS Submarine Base New London Picatinny Arsenal JB MDL- Lakehurst Naval Station Newport - Firm Naval Station Newport - Thermal Accounts Naval Station Newport – Interruptible ANSWER: The DLA will provide a Letter of Authority (LOA) to any marketer who wishes to seek account, meter, or rate class information for any Line Item.

17. Section C-0001: C700(m)(1) states that invoices will be submitted via electronic or non-electronic means. Please clarify intended invoice method. Would the Government accept non-electronic means if the Contractor does not support electronic invoicing?

ANSWER: Please refer to Page 11 of the solicitation, section (m) INVOICING AND PAYMENT.

The invoice remittance point of contact and address is found in each customer specific schedule page. At the same time the original invoice is mailed to the Invoice Certifying Office for each customer, a copy of the invoice shall also be sent to the Contract Specialist assigned to the administration of the contract via electronic or non-electronic means. Email is an acceptable and preferred means of electronic invoice remittal. US Postal Ground Service is an acceptable non-electronic means of invoice remittal.

18. Part II – Far 52.212-4 incorporates Contract Terms and Conditions into the solicitation. The Feb 2012 version is listed on page 15, but on page 24, the May 2015 version is listed. Please confirm which is applicable.

ANSWER: The section of FAR 52.212-4 on page 15 is a DLA tailored section which was last updated on Feb 2012. The current FAR 52.212-4 CONTRACT TERMS AND CONDITIONS— COMMERCIAL ITEMS (MAY 2015) is the full FAR text which is incorporated by reference.

Both references are correct and apply.

19. Will the DLA accept technical submissions via email on September 7, 2016, as the email address on page 45 is empty?

ANSWER: Offers shall be submitted via email to the Natural Gas Team Mailbox, at dlaenergy.ngteam@dla.mil. This will be noted in Amendment 1.