Responses_to_Questions_for_Solicitation_19_DEC_2018.pdf

DLA Energy FEAEB

SPE604-19-R-0400

Q&A

QUESTIONS & ANSWERS

Note to potential offerors: As stated in page 3 of the solicitation, receipt of offers are due 4:00 p.m.

Eastern Time, January 3, 2019 (unless amended). Frequently, there is a lag in electronic correspondence from non-DoD serves to DLA’s servers. This delay can be several minutes. DLA recommends that offerors submissions be sent with extra time to account for this.

Question 1: Can DLA provide daily or actual monthly usage history for accounts totaling over 300,000 DTH/year annual usage?

Answer: DLA Energy does not have direct access to this information and is unable to provide that level of detail concerning usage for any installations. Projected monthly quantities are provided for each line item in the applicable schedule page.

Question 2: Will DLA be providing a Notice of Intent to Award, following the auction?

Answer: Yes, DLA Energy will issue Notice of Intent to Award letters to all successful offerors once the reverse auction has been completed.

Question 3: Can you provide examples related to Section C: Statement of Work: (i) REFUSED OR ACCEPTED QUANTITIES. (1) REFUSED BY LDC and (2) ACCEPTED BY LDC for instances that have occurred for the line items in this solicitation previously?

Answer: DLA Energy cannot provide that information at this time.

Line Item 0001 – Redstone Army Arsenal

Question 1: Does CLIN 0001 come with associated capacity assets?

Answer: Redstone does not own capacity but they do reimburse third parties for capacity usage.

Redstone currently pays the Huntsville Utility Gas transportation commercial customer service rate charges.

Question 2: This two-part question is below:

a. Does the Redstone Army Arsenal have SONAT FT Capacity that will be released to the winning bidder? If so, what are the primary receipt and delivery points?

Answer: Redstone does not own capacity.

b. The Delivery Point is listed as the SONAT/Huntsville City Gate. Is the supplier able to utilize the Huntsville City Gates on AlaTenn, and Tennessee Gas Pipeline in addition to SONAT?

Answer: Redstone Army Arsenal currently receives service at the SONAT/Huntsville Gate and the AlaTenn/Huntsville City Gate.

Line Item 0008 – Fort Benning

Question 1: Does Fort Benning have SONAT FT Capacity that will be released to the winning bidder?

If so, what are the primary receipt and delivery points?

Answer: Fort Benning does not hold any SONAT FT Capacity.

Line Item 0009 – VAMC Shreveport

Question 1: Line item 0009 – Shreveport VA and Line item 0011 Barksdale AFB are located about ten miles apart. We feel that they should use the same SIP. Since they are served off Enable, the SIP that would make the most sense would be Enable. But if it can’t be the index of the pipeline that they are served off of, then they should at least be the same SIP. We would chose HH.

Answer: DLA Energy does not intend on amending the solicitation to change the SIPs for these line items at this time. This issue may be addressed during discussions if opened. Any change to the requirements will be issued via an amendment to the solicitation.

Question 2: Line Item 0009 & 0011: These line items are currently supplied by the same upstream pipeline, which is Enable. Would DLA consider changing these line item SIPS to either be tied to Enable or Henry Hub as Houston Ship does not relate to the supply for Line Item 0009.

Question 3: For line item #9 (VAMC Shreveport), #10 (Fort Polk) & #11 (Barksdale AFB), would the DLA please confirm the delivery point/meter number and pipeline?

Answer: For VAMC Shreveport, the delivery pipeline is CenterPoint-LA, Delivery Point CP-LA, Fort Polk: Fort Polk receipt point for firm No-Notice is SLN # 0004708 and SLN # 0003260 and delivery point SLN # 0002989 and SLN # 002990, VAMC Shreveport Receipt meter# 926026, Receipt Location: 14618, Customer has 8,000 dths of capacity in their storage account.

Line Item 0010 – Fort Polk

Question 1: For line item #9 (VAMC Shreveport), #10 (Fort Polk) & #11 (Barksdale AFB), would the DLA please confirm the delivery point/meter number and pipeline?

Answer: Fort Polk receipt point for firm No-Notice is SLN # 0004708 and SLN # 0003260 and delivery point SLN # 0002989 and SLN # 002990, VAMC Shreveport Receipt meter # 926026, Receipt Location: 14618, Customer has 8,000 dths of capacity in their storage account.

Line Item 0011 – Barksdale AFB

Question 1: Line item 0009 – Shreveport VA and Line item 0011 Barksdale AFB are located about ten miles apart. We feel that they should use the same SIP. Since they are served off Enable, the SIP that would make the most sense would be Enable. But if it can’t be the index of the pipeline that they are served off of, then they should at least be the same SIP. We would chose HH.

Question 2: Line Item 0009 & 0011: These line items are currently supplied by the same upstream pipeline, which is Enable. Would DLA consider changing these line item SIPS to either be tied to Enable or Henry Hub as Houston Ship does not relate to the supply for Line Item 0009.

Question 3: For line item #11 (Barksdale AFB), would the DLA please confirm the delivery point/meter number and pipeline?

Answer: DLA Energy cannot provide this information at this time. For estimated usage, please refer to the schedule page. Meter/Account numbers will be provided after contract award.

Line Item 0012 – Keesler AFB

Question 1: Line item 0012 – Keesler AFB, and Line item 0013 – Biloxi seem to make more sense to us priced off HH, instead of Sonat LA.

Question 2: Line Item 0012 and 0013: Would DLA consider changing this SIP to be Henry Hub oppose to Sonat LA?

Line Item 0013 – VAMC Biloxi

Question 1: Line item 0012 – Keesler AFB, and Line item 0013 – Biloxi seems to make more sense to us priced off HH, instead of Sonat LA.

Question 2: Line Item 0012 and 0013: Would DLA consider changing this SIP to be Henry Hub oppose to Sonat LA?

Question 3: For Line Item 0013, VAMC Biloxi, could DLA please confirm the delivery point/meter # and pipeline?

Answer: DLA Energy cannot provide this information at this time. For estimated usage, please refer to the schedule page. Meter/Account numbers will be provided after contract award.

Line Item 0014 – Federal Corrections Complex Butner

Question 1: Do any of the North Carolina accounts (line items 0014, 0015, 0016) come with any upstream pipeline assets? If yes, how much volume/day, and what are the receipt and delivery points of the contract?

Answer: Line items 0014 Federal Corrections Complex Butner, 0015 Fort Bragg, and 0016 Marine Corps Air Station Cherry Point do not come with any upstream pipeline assets.

Question 2: Under what emergency conditions do the Federal Corrections complex (Line Item 0014) and Marine Corps Air Station (Line Item 0016) use alternate fuel? Do they use alternate fuel under pipeline OFO conditions?

Answer: Line items 0014 Federal Corrections Complex Butner and 0016 Marine Corps Air Station Cherry Point use alternate fuel only in the event of base emergencies for plant operations.

Line Item 0014 requirement is Delivery Option 2 (Full Requirements/Pool) and firm delivery.

OFO’s should not interrupt gas delivery obligations at the delivery point.

Line Item 0015 – Fort Bragg

Question 1: What is meant by Fort Bragg’s (Line Item 0015) simple average 16-EOM methodology?

Answer: The simple average 16-EOM methodology provides that overage or shortage volumes in a month are charged at a price equal to the simple arithmetic average of the Gas Daily Price Guide Midpoint Prices each day of that month plus the adjustment factor, from the sixteenth-of-the-month to the end-of-the-month.

Question 2: Do any of the North Carolina accounts (line items 0014, 0015, 0016) come with any upstream pipeline assets? If yes, how much volume/day, and what are the receipt and delivery points of

Answer: Fort Bragg does not come with any upstream pipeline assets.

Line Item 0016 - MCAS Cherry Point

Question 1: Line Item #16 (NC Marine Corp Air Station – Cherry Point) would require us to include Material Change language to offer 100% swing option. Would the DLA review & allow such language if required?

Answer: DLA Energy does not believe such language is necessary for this installation at this time. This issue can be addressed during discussions, if opened. Any changes to the requirement will be issued via an amendment to the solicitation.

Question 2: Do any of the North Carolina accounts (Line Items 0014, 0015, 0016) come with any upstream pipeline assets? If yes, how much volume/day, and what are the receipt and delivery points of

Answer: Line items 0014 Federal Corrections Complex Butner, 0015 Fort Bragg, and 0016 Marine Corps Air Station Cherry Point do not come with any upstream pipeline assets.

Question 3: The Marine Corp Air Station (Line Item 0016) shows a SIP location of Transco Zn5 Del.

South in the summary, but on the schedule page the SIP is Transco Zn3. Which should it be? If it is Transco Zn3, why is it different than the other two North Carolina line items?

Answer: The SIP location is Transco Zn5 Del. South. DLA anticipates revising schedule page via an amendment within one business day from the posting of this document. .

Question 4: Under what emergency conditions do the Federal Corrections complex (Line Item 0014) and Marine Corps Air Station (Line Item 0016) use alternate fuel? Do they use alternate fuel under pipeline OFO conditions?

Answer: Line items 0014 Federal Corrections Complex Butner and 0016 Marine Corps Air Station Cherry Point use alternate fuel only in the event of base emergencies for plant operations.

Line Item 0014 requirement is Delivery Option 2 (Full Requirements/Pool) and firm delivery.

OFO’s should not interrupt gas delivery obligations at the delivery point.

Line Item 0018 – Fort Sill

Question 1: Will Gas Daily pricing be acceptable versus FOM index pricing for Overage and Shortage Volume pricing for installations Fort Sill, McAlester AAP, & Tinker AFB?

Answer: DLA Energy does not intend on amending the solicitation to change the overage and shortage volume pricing methodology for these line items at this time. This issue may be addressed during discussions, if opened. Any change to the requirements will be issued via an amendment to the solicitation.

Line Item 0021 – McAlester AAP

Line Item 0022 – Joint Base Charleston (Air Base)

Question 1: Regarding Line Item 0022, Joint Base Charleston (Air Base): What is the facility’s Maximum Daily Quantity with the utility, South Carolina Electric & Gas? That is, what is the maximum volume of natural gas that a supplier may nominate to the facility?

Answer: The current contract is Firm Requirement. The customer has 300 dths per day of upstream firm capacity with SONAT with a receipt to Carolina Gas Transmission at Aiken. The customer also has 300dths per day of firm pipeline capacity reserved on Carolina Gas Transmission for delivery to Joint Base Charleston-Weapon Station Northside/Pomflant. The maximum flow of natural gas is not known at this time.

Line Item 0024 – Fort Campbell

Question 1: For Line Item 0024 (Fort Campbell), will the supplier still be responsible for all imbalance penalties and be required to credit back to the base any such penalties. I know this has been the terms of the arrangement with supply in the past and want to confirm this to be the case as it does create a difference in pricing as to who the responsibly party will be and that it’s noted that reimbursement for the charges is required.

Answer: Please see Note #2 on the schedule page and Section C – Statement of Work, page 12 of

56. DLA Energy does not intend on amending the solicitation to change the invoicing methods for this line item at this time. This issue may be addressed during discussions, if opened. Any change to the requirement will be issued via an amendment to the solicitation.

Line Item 0025 – VAMC Nashville

Question 1: Does CLIN 25 come with associated capacity assets?

Answer: CLIN 25 does not come with any associated capacity assets.

Question 2: The three part question is listed below:

a. Can you provide a history of the usage of the alternative fuel, and how it is used? Is this fuel used strictly for emergency backup supply?

Answer: VAMC Nashville uses alternate fuel only in the event of base emergencies for plant operations.

b. Can you provide context if the volumes provided are respective prior curtailment history?

Answer: Estimated Usage Information listed on the Schedule Page incorporates historical data inclusive of curtailment history

c. What notice will the facility provide prior to switching to alternative fuel?

Answer: Notice requirements for switching to alternate fuel are as defined in the contract.

Line Item 0026 – VAMC Murfreesboro

Question 1: Does CLIN 0026 come with associated capacity assets?

Answer: CLIN 26 does not come with any associated capacity assets.

Question 2: The three part question is listed below:

a. Can you provide a history of the usage of the alternative fuel, and how it is used? Is this fuel used strictly for emergency backup supply?

Answer: VAMC Murfreesboro uses alternate fuel only in the event of base emergencies for plant operations.

b. Can you provide context if the volumes provided are respective prior curtailment history?

Answer: Estimated Usage Information listed on the Schedule Page incorporates historical data inclusive of curtailment history.

c. What notice will the facility provide prior to switching to alternative fuel?

Answer: Notice requirements for switching to alternate fuel are as defined in the contract.

Line Item 0027 – National Nuclear Security Administration Protection Office

Question 1: Given upstream supply to the Atmos West Texas CityGate, the Index has changed from Transwestern Permian to now Transwestern San Juan as the Index of choice for supply. Would DLA consider changing this SIP to be Transwestern San Juan for the upcoming Solicitation?

Line Item 0031 – NAS Jacksonville and Naval Station Mayport

Question 1: What is implied by NAS-Jacksonville and Naval Station Mayport (0031) having a rate class of SIS/multiple NCTS? The SIS rate schedule falls under the ITS rider. What monthly portion of the load is ITS and what portion is NCTS?

Answer: Estimated requirements were not segmented by SIS and small GS/SGS (Natural Choice Transportation Service) accounts because requirements are firm Option 2 – Full Requirements.

Question 2: Should a local distribution company file and have approved a tariff change which affects the cost and/or delivery of natural gas on the upstream transportation pipeline (i.e. LDC requires Contractor acquire more expensive upstream transportation than what was required at the time of award due to changes in capacity release program) and thus the new upstream costs to the Contractor exceed the Adjustment Factor (AF) awarded by DLA during the term of the contract, will the Contractor have the ability to pass-thru the amount of such change and/or renegotiate the AF effective as of the date of such tariff change?

Answer: Under the current terms and conditions of the RFP, some costs would be justified to adjust the contract price (See; FAR 52.212-4(k)), however all existing and foreseeable LDC Tariff changes should be built into the Line Item Adjustment Factor (In accordance with [IAW] the Statement of Work). If the tariff increase was the result of a material change made by the Government, the contractor could request an equitable adjustment IAW DFARS 252.243-7002 (Request for Equitable Adjustments- DEC 2012). .

Question 3: Would the Contractor have the ability to terminate the contract due to a change as described above?

Answer: The contractor cannot terminate the contract due to tariff changes put in effect after contract award.

Line Item 0036 – DOE Oak Ridge Operations (ETNG)

Question 1: Does CLIN 0036 come with associated capacity assets?

Answer: DOE Oak Ridge CLIN 0036 does not come with any associated capacity assets.

Question 2: Does DOE Oak Ridge Operations have an Operational Balancing Agreement (OBA) with East Tennessee Natural Gas Company? If so what are the terms of the OBA?

Answer: DOE Oak Ridge has an Operational Balancing Agreement with East Tennessee Natural Gas, pursuant to the standard terms under East Tennessee Natural Gas Rate Schedule Load Management Service Market Area (LMS-MA).

Line Item 0037 – DOE Oak Ridge Operations (TGP)

Question 1: Does CLIN 0037 come with associated capacity assets?

Answer: CLIN 0037DOE Oakridge (TGP) does not come with capacity assets.

Question 2: Does DOE Oak Ridge Operations have an Operational Balancing Agreement (OBA) with East Tennessee Natural Gas Company? If so what are the terms of the OBA?

Answer: DOE Oak Ridge has an Operational Balancing Agreement with East Tennessee Natural Gas, pursuant to the standard terms under East Tennessee Natural Gas Rate Schedule Load Management Service Market Area (LMS-MA).

Line Item 0038 – Sheppard AFB

Question 1: Is DLA willing to change the SIP to NGPL TexOK for pricing for Line Items 0038 & 0039 (Sheppard and Dyess)? Currently the sourcing of gas into the Central Texas market, mainly Atmos Texas has transitioned away from the volatile WAHA SIP to utilizing the NGPL TXOK SIP? Wondering if this could be taken into consideration and changed.

Question 2: For line items #38 & 39, Dyess and Sheppard, the TX landscape has changed over the past two years and we do not believe that WAHA is a viable point to price these accounts. Would the DLA allow the index point to be the Houston Ship Channel?

Line Item 0039 – Dyess AFB

Question 1: Is DLA willing to change the SIP to NGPL TexOK for pricing for Line Items 0038 & 0039 (Sheppard and Dyess)? Currently the sourcing of gas into the Central Texas market, mainly Atmos Texas has transitioned away from the volatile WAHA SIP to utilizing the NGPL TXOK SIP? Wondering if this could be taken into consideration and changed.

Question 2: For line items #38 & 39, Dyess and Sheppard, the TX landscape has changed over the past two years and we do not believe that WAHA is a viable point to price these accounts. Would the DLA allow the index point to be the Houston Ship Channel?

Line Item 0040 – Vance AFB and Federal Aviation Administration, MMAC

Question 1: For Tied Group 5 (40-42), please confirm that installations has sufficient capacity on ONG and contractor is expected to be agent for the capacity for nomination purposes only? Please confirm that ONG has access to OGT pipeline pool as part of the ONG transport contract. Please list access and capacity to any other pipeline supply pools.

Answer: Presently ONG has access to OGT and has sufficient pipeline capacity for pool supply volumes. Presently we cannot confirm contractor will be the agent for the capacity nomination purposes only.

Line Item 0041 – VAMC Tulsa Outpatient Clinic

Question 2: For Tied Group 5 (40-42), please confirm that installations has sufficient capacity on ONG and contractor is expected to be agent for the capacity for nomination purposes only? Please confirm that

Answer: Presently ONG has access to OGT and has sufficient pipeline capacity for pool supply volumes. Presently we cannot confirm contractor will be the agent for the capacity nomination purposes only.

Line Item 0042 – Tinker AFB

Question 2: For Tied Group 5 (40-42), please confirm that installations has sufficient capacity on ONG and contractor is expected to be agent for the capacity for nomination purposes only? Please confirm that

Answer: Tinker AFB has 2,500,000 dths of capacity per year on the OneOk system. Presently ONG has access to OGT and has sufficient pipeline capacity for pool supply volumes. Presently we cannot confirm contractor will be the agent for the capacity nomination purposes only.

Line Item 0043 – Fort Gordon and Moody AFB (Interruptible)

Question 1: Is the DLA willing to split Line items 43 & 44 (AGL), to allow suppliers to only bid on the Firm Transport portion of the AGL accounts?

Answer: DLA Energy does not intend on splitting these tied groups at this time. This issue may be addressed during discussions if opened. Any change to the requirements will be issued via an

Question 2: Fort Gordon (line item 0043) has Specified Firm Volumes of 1,350. Does this account come with upstream pipeline assets? If yes, how much volume/day, and what are the receipt and delivery points of the contract?

Answer: Fort Gordon Line Item 0043 does not come with any upstream pipeline assets.

Line Item 0044 – Naval Submarine Base Kings Bay, Fort Stewart, Hunter Army Airfield, Harry Milton Kandell USARC, SP5 Roy W. Miller, Jr. USARC, Dobbins ARB, Forest Park USARC, GA Army National Guard, Athens USARC, Moody AFB (Firm), East Point USARC, Macon USARC, Thomas H. Glenn USARC, Enclave at Fort Gillem, Statham USARC, Federal Law Enforcement Training Center

Question 1: Is the DLA willing to split Line items 43 & 44 (AGL), to allow suppliers to only bid on the Firm Transport portion of the AGL accounts?

Question 2: Would the DLA consider splitting out the auctions for the Atlanta Gas accounts and awarding line items 43 & 44 to separate suppliers?

Question 3: The Federal Law Enforcement Training Center (0044) is grouped with the firm AGL accounts on the line item attachment summary but on the line item detail, it lists an ID rate class. Should it be priced as a firm AGL account?

Answer: DLA Energy anticipate issuing an amendment to the RFP regarding Line Item 0044 (Federal Law Enforcement Training Center)