LNG_Questions.pdf
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- Solicitation number
- SPE60418R0406
- Issued by
-
Defense Logistics Agency Energy
About this file
This document contains responses to questions from solicitation SPE604-18-R-0406 for the delivery of liquefied natural gas (LNG) to Naval Station Guantanamo Bay. The solicitation seeks the delivery of an estimated annual LNG volume of 2,349,011 MMBtus from May 2020 through August 2023 to support an on-site natural gas powered combined cycle power plant. Offerors must propose prices at or below $10.85 per MMBtu to be eligible for award. The questions and responses clarify that new bidders can submit proposals, provide additional details on pier locations and fuel delivery requirements, and confirm the Navy's intent is to maximize the use of LNG as the primary fuel to reduce the carbon footprint and provide cost savings to support infrastructure upgrades.
This document addresses the latest questions received by DLA Energy regarding this procurement.
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Responses to Questions from RFP SPE604-18-R-0406 LNG NSGB
1. Has this RFP been reopened so as to qualify new bidders that missed the original July 23 RFP offer date? I.e. Can a new bidder submit a bid?
DLA Energy Response: Yes, a new bidder can submit a bid.
2. F.4.1. – Which intended pier(s) is DLA considering in GTMO?
DLA Energy Response: The details of the pier can be found in Section F.4 of the solicitation. The specific pier will be provided at time of award.
3. B.3.1 - Explain how CCPP will receive peak quantity MMBtu (July 78,663 / 2 = 39,331.50 per voyage) if the remaining reserve per F.8 must always be 31,460 and the net storage capacity is only 62,921. Overage = about 7,870
DLA Energy Response: The quantities provided are estimates based on projected plant operations. Each bi-weekly quantity ordered will be adjusted slightly based on the current requirement and consumption rate.
With respect to previous Q&A on July 13 2018
4. Question 17: Please confirm how DLA will review and either approve or reject exceptions as per A.1.16 ? Will it be handled in discussions?
DLA Energy Response: Any exceptions will be addressed during negotiations.
5. Question 17: Has DLA reviewed offers with “alternate modes of delivery” in the first submissions? Can we get feedback?
DLA Energy Response: The only acceptable mode of delivery is via tanker/barge.
6. We understand the power plant will be multi-fuel capable to run on diesel or LNG at the cost benefit of the government. Because this contract has no minimums, we are trying to capture the smallest MMBtu shipment(s) required, given diesel is still optional and recently awarded under HTC711-17-R-W001 for 5 years.
Does DLA Energy have obligations to a minimum “green initiative”?
I.e. If solely using LNG constitutes 100%, would DLA still accomplish their requirements by burning say 25% LNG and 75% diesel fuel?
If so, is it true this contract would still be whole and Contractor obligated to perform if only 17,000 mmbtu (25%) were shipped every voyage for 3 years?
DLA Energy Response: It is the Navy’s intent to maximize LNG as a primary fuel for power generation at Guantanamo Bay. Although this will greatly reduce the Navy’s carbon footprint at Guantanamo Bay, the primary purpose of switching to LNG from F76 is to provide fuel-switch cost savings required to support Navy infrastructure upgrades.
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