Questions in response to Solicitation_0407.pdf

Northeast Natural Gas Solicitation

SPE604-20-R-0407

Q&A

QUESTIONS FROM INTERESTED PARTIES IN RESPONSE TO

NE NATURAL GAS SOLICITATION SPE604-20-R-0407

SPECIFIC LINE ITEM QUESTIONS:

Line Item 0001:

1. Question: As the incumbent, monthly usage for Line Item 0001 location has increased drastically since December. It appears the LDC has been estimating usage for this location since December. Is the LDC estimating extremely high usage for this location or is this location actually consuming the (higher) amounts listed below?

DLA Response: We have confirmed with the customer that the historical spike in January 2020 was not related to any new requirements and the estimated usage on the schedule page is correct.

2. Question: It appears there is a meter issue at line item 0001 location. Has the DLA inquired with the LDC to see when the meter issue will be fixed? Essentially, the volumes in the solicitation are not in line with the utility increased volumes & we are looking for clarification on this (see below) If the new volumes are correct for Line Item 0001 location, please advise what has changed at the location to increase volumes & provide revised solicitation volumes so all bidders are pricing apples to apples.

DLA Response: The LDC has not indicated that there is a meter issue and their current estimates are correct.

3. Question: For Line Item 0001, Westover ARB site and Line Item 0002, Hanscom AFB, do these sites come with capacity on the TGP pipelines?

DLA Response: No, there is no capacity on these pipelines.

Line Item 0004:

Question: Would the DLA consider changing back to the Henry Hub index, which you are currently using? Pricing at straight Millennium will more than likely provide higher prices to the DLA and decrease participation on this line item.

DLA Response: Based upon the historical research completed by DLA Energy; the Millennium SIP location should be the most viable option for this location however, if there is information that can confirm Henry Hub as a better price-point than Millennium, then DLA will be open to discussions for a different SIP location for this line item.

Q&A

Line Item 0006:

Question: What is the significance of 365 curtailment days? Please elaborate.

DLA Response: Per the RFP, page 8, Section C-Statement of Work, (c)(3)- Interruptible Delivery. For requirements stated as interruptible, customers can accommodate an unlimited number of curtailment days subject to the contract text of (h) Interruptible Deliveries.

Line Items 0007, 0008, 0013 (1 of 2), 0013 (2 of 2), 0017, 0018, 0019, 0020, 0021, 0022, 0023:

Question: For the above line items behind UGI in PA: based on the UGI consolidation effective November 1, 2020, is the information provided in the Schedule Attachment reflective of the updated effective pool points from Nov 1, 2020 moving forward? If not, please provide the updated pool locations.

DLA Response: The LDC tariff does not reflect any changes in pooling points. The LDC would have the most current information regarding any updates to pooling locations.

Line Item 0013

Question: For Line Item 13 (both USP Lewisburg UNICOR and USP Lewisburg Penitentiary) we are unfamiliar with Rate Class L and would like to verify that accuracy of that information.

DLA Response: The Rate Class should be LRD (Large Firm Delivery) and an amendment to incorporate this change will be made to reflect the correct rate class.

Line Item 0014:

Question: For Tied Line items 0014 for the facilities behind Virginia Natural Gas, these sites are listed as Limited Interruptible service, though no days of allowed curtailments by the supplier, as opposed to the utility, have been listed. All of these sites have alternate fuel capability. Virginia Natural Gas Is located at the end of 2 major pipeline systems, and this area is highly constrained, especially during the winter. By not having at least some days of curtailability, the facilities may limit the ability for offererors to even provide pricing, and if they are able to provide pricing, this pricing will be at a significant premium to what these facilities have paid under their prior monthly buy structure. Would the DLA consider adding some days of limited interruptibility on the supplier side for this line Item in order for suppliers to provide more competitive pricing to these facilities?

DLA Response: DLA will consider changes to the number of Limited Interruptible days.

Line Items 0015 and 0016:

Question: Is the DLA willing to allow these line items to be priced separately as standalone rather than tied to group to increase participation?

DLA Response: DLA is not willing to separate these line items at this time and will continue to keep them tied together.

Line Item 0026:

Question: Can suppliers collect tariff balancing fees for Line Item 0026 in the same manner as Line Item 0027 in Note #3?

DLA Response: Yes, as it applies to each individual line item.

Line Item: 0027:

Question: What is the significance of four (4) curtailment days in winter and April? Please elaborate.

DLA Response: Per the RFP, page 8, Section C-Statement of Work, (c)(2)- Limited Interruptible Delivery. For requirements stated as Limited Interruptible, the Government has defined a number of days for which it can be curtailed on a monthly basis subject to the contract text of (h), Interruptible Deliveries.

Line items 0030 and 0031:

Question: Is the DLA willing to allow these line items to be priced separately as standalone rather than be tied to group to increase participation?

DLA Response: DLA is not willing to separate these line items at this time and will continue to keep them tied together.

Line Items 0034 – 0037 behind Washington Gas & Light and Baltimore Gas & Electric:

1. Question: Meter reads are prorated for service locations behind WG&L and BGE therefore the service location will be invoiced based on the volumes used in the month & billed at that month’s price. In the example provided below, it shows that a November price would be billed for Nov 5-Dec 5 and Nov25-Dec25, but this is not the case. Please confirm this is OK.

DLA Response: Yes, meter reads are pro-rated for service locations behind WG&L and BGE therefore the service location will be invoiced based on the volumes used in the month & billed at that month's price.

2. Question: For all line items that are listed with “limited interruption” – we can only adhere to the utility requirements. Please confirm this is acceptable to DLA.

DLA Response: DLA term, “Limited Interruptible,” has no bearing on an LDC’s requirement.

Per the RFP, page 8, Section C-Statement of Work, (c)(2)- Limited Interruptible Delivery. For requirements stated as Limited Interruptible, the Government has defined a number of days for which it can be curtailed on a monthly basis subject to the contract text of (h), Interruptible Deliveries. This action can be completed by the supplier.

3. Question: Please provide the LDC account #’s for all accounts within this solicitation so that bidders can provide most accurate & best pricing.

DLA Response: DLA will provide its most up to date list of account numbers for line items in this solicitation. However, a letter of authorization will be provided to obtain the most up to date account information from the specified LDC upon a direct request submitted to the Contracting Officer.

GENERAL ACCOUNT QUESTIONS:

1. Question: Accounts that have alternate fuel listed: please provide more clarity on how these locations plan to use alternate fuel, how often, how it would be managed, and if the locations will notify the awarded supplier when using alternate fuel. We are requesting more details around alternate fuel accounts.

DLA Response: Accounts with alternate fuel only plan to utilize this fuel source during LDC-related curtailment(s)/OFOs and/or if operational conditions require. The primary fuel source will be natural gas.

2. Question: Regarding curtailment days: are these service locations required to curtail? If so, please provide details around the process & if these service locations will notify the awarded supplier when curtailing load.

DLA Response: Any curtailments would be due to LDC orders. The supplier should be an authorized shipper and therefore receive notice directly from the LDC.

3. Question: Please define how “limited interruptible” should apply to curtailment days?

DLA Response: Per the RFP, page 8, Section C-Statement of Work, (c)(2)- Limited Interruptible Delivery. For requirements stated as Limited Interruptible, the Government has defined a number of days for which it can be curtailed on a monthly basis subject to the contract text of (h), Interruptible Deliveries. This action can be completed by the supplier.

4. Question: Can the DLA speak to how COVID-19 has impacted each location’s usage? Are the volumes provided pre or post COVID-19?

DLA Response: Unless otherwise noted, volumes are pre-COVID-19. If significant consumption impact is expected it will be noted in the notes on each schedule page.

5. Question: Please confirm the DLA is requesting citygate pricing for all locations included in this solicitation.

DLA Response: This is correct for all line items except, Hanscom AFB, which has the Tennessee Gas pipeline interconnection and must be delivered directly to the meter.

6. Question: Should there be any change in law, tariffs or regulations that alters a supplier’s cost to serve (e.g.: a new tax) will the buyer allow their supplier to alter their contract price? Does the buyer prefer a separate line item on the invoice or a change in price as a whole? Does the buyer need to approve the cost change or can we just pass through after notification?

DLA Response: Per the RFP, page 12, Section H, Special Contract Requirements, 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.

7. Question: Does the DLA foresee adding any additional accounts/meters during this contract period?

DLA Response: DLA does not foresee any additional accounts or meters being added to this contract period at this time.

8. Question: Will the awarded supplier be able to charge termination fees for any location that drops during the contract term to recover natural gas purchased on that location’s behalf for the contract term?

DLA Response: Per the RFP, page 10, section C-Statement of Work (f), Material Change, The installation shall promptly notify the Contractor of any known or predicted changes in natural gas consumption not related to weather with as much advance notice as possible. Any change in the operations of the facility which may alter weather normalized usage by more than 25 percent will hereafter be called a “material change”. If properly notified of a material change, the Contractor shall ensure that all supply and balancing obligations are met and any penalties charged by the LDC or pipeline resulting from the Contractor’s failure to properly manage and balance the account shall be the responsibility of the Contractor. If a material change causes additional costs or results in additional revenues, the Contractor and the Government shall agree on an equitable adjustment.

9. Question: Will the awarded supplier be able to price account adds at market price or will they be expected to match the awarded contract rate?

DLA Response: Per the RFP, page 10, section C-Statement of Work (f), Material Change, The installation shall promptly notify the Contractor of any known or predicted changes in natural gas consumption not related to weather with as much advance notice as possible. Any change in the operations of the facility which may alter weather normalized usage by more than 25 percent will hereafter be called a “material change”. If properly notified of a material change, the Contractor shall ensure that all supply and balancing obligations are met and any penalties charged by the LDC or pipeline resulting from the Contractor’s failure to properly manage and balance the account shall be the responsibility of the Contractor. If a material change causes additional costs or results in additional revenues, the Contractor and the Government shall agree on an equitable adjustment.

10. Question: EXCESS FIRM CAPACITY: Please advise if there is any capacity that the DLA has or will have that the supplier would be asked to manage. If so, would this be under an agency agreement or asset management agreement?

DLA Response: Please reference the note section of the RFP schedule pages for individual installation’s capacity needs.

11. Question: If the DLA does have excess firm capacity, please advise which accounts this applies to.

DLA Response: Please reference the note section of the RFP schedule pages for individual installation’s capacity needs.

12. Question: REFUSED OR ACCEPTED QUANTITIES (1) REFUSED BY LDC: Please provide an example as to when this can occur? Does this apply to curtailments?

DLA Response: Per the RFP, page 8, Section C-Statement of Work, (c)(6), Operational Flow Orders, Operational flow orders (OFOs) or any other operational notifications to the same effect are directives by the interstate pipeline or the LDC to flow additional gas supplies, reduce flow of gas supplies, or match marketer supply to customer demand within specified tolerances to correct an operational problem on a pipeline. OFO or any other term used for the same type of direction, which merely requires a match of supply and demand during a given gas day for daily balancing purposes, are not considered curtailments and do not relieve the Contractor of supply balancing obligations as stated in the Statement of Work.

13. Question: In past solicitations, the individual service location pages have listed a contact as well as the billing address. These are not provided in this solicitation; can the DLA provide that information to bidders?

DLA Response: DLA will provide this information upon award.

14. Question: Please confirm that billing addresses will be provided to awarded bidder upon award.

DLA Response: DLA can confirm that these will be provided upon award.

15. Question: Do any of the service locations require additional invoicing besides a monthly bill?

DLA Response: Invoicing, unless specified in the schedule page for a specific installation, will be monthly.

16. Question: Please provide a list of facilities (if applicable) that require WAWF invoicing.

DLA Response: Installations payment information will be provided upon award.

17. Question: Section B.0001 B1.06 Supplies to be furnished (d) regarding tax: please confirm if the DLA’s NY locations are within the 5 boroughs of NYC or outside the 5 boroughs of NYC.

FAR 52.212-4 Contract Terms and Conditions (Tailored) (K) TAXES – please confirm that DoD & Federal Civilian installations are end users and it is NOT for resale.

DLA Response: There are installations within and outside of NYC and the federal installations are end-users.

18. Question: Can the DLA please clarify if they are tax exempt from GRT and New Jersey sales & use tax? And if these taxes should or should not be included in pricing for applicable states that charge these taxes on energy purchases.

DLA Response: Prices indicated hereunder shall be all inclusive and must include all applicable interstate/intrastate pipeline fuel loss, costs for nominations, marketer fees/profit, pooling, balancing, and storage unless indicated otherwise within the Schedule.

Additionally, the pricing shall not include any Gross Receipts Tax or similar tax for which the Government may be liable.

19. Question: Are these individual locations currently being supplied by a third party supplier, or by the respective LDCs? If currently on LDC supply, have they been supplied by a third party in recent history?

DLA Response: All installations in this solicitation are being supplied by a third party supplier.

20. Question: Pg. 55 of the RFP “Addendum to Soliciation…”: Period of acceptance states the offer must be held for 120 days. If we are unable to hold a price for 120 days, will we not meet minimum requirements to be considered?

DLA Response: No, your offer will not be considered. You must abide by that 120 day mandate or your offer will not be valid.

21. Question: Page 7, Section C ,4 (Price Adjustments - Calculations): Will DLA accept 2 decimal places for billing purposes? We may only able to provide 2 decimal places for most fields -including volumes and invoiced amounts ($) with two decimal places.

DLA Response: Per the RFP, page 7, B 700, (c)(4) Calculations (i), all numbers used in or derived through calculations prescribed by this contract text shall be rounded to four places.

22. Question: Will billing in therms (volume and rate) be accepted for some LDCs, if applicable, due to how the LDC provides information necessary for internal billing purposes?

DLA Response: No, all billing prices must be expressed in dollars per dekatherm.

23. Question: Can you please specify how the 375% price ceiling will be applied and calculated?

Can a calculation example be supplied and also minimum requirements or examples of what would warrant a ceiling increase?

Q&A

DLA Response: DLA Energy uses the ceiling price as a safeguard to prevent unquantifiable index price increases. The ceiling price is calculated using the estimated index price at time of award. If the estimated index price at time of award is $1.00 (including adjustment factor), then the price ceiling is $3.75. If the ceiling price is met, DLA Energy may engage in discussions to determine a reasonable course of action, or enforce that DLA Energy will not pay higher than the ceiling price.

24. Question: How will the supplier determine which Alternative is in place for each awarded line-item? Does the supplier specify price ceiling with individual line item submissions?

DLA Response: Per the RFP, page 7, Section B-700, (c)(5) Upwards Ceiling on Economic Price

Adjustments. Unless identified in the schedule, Alternative I is the default alternative.

25. Question: Is there possibility of an award with a price ceiling exception?

DLA Response: No.

26. Question: Can you please specify requested payment terms (# of days)?

DLA Response: Payments shall be made in accordance with the Prompt Payment Act.

27. Question: Will an award be considered for dual-billing option offer only?

DLA Response: No. The government may opt for one of the following invoicing methods:

dual billing, contractor consolidated billing, or LDC consolidated billing.

28. Question: Can we be provided with all necessary utility account and meter numbers by location? Some of the line item’s individual tabs on the schedule include account numbers, while others do not. Missing account number examples: NJN – 0028, Central Hudson – 0004, National Grid NY – 0003, PSE&G – 0012 (1 thru 3) We’re seeking account/meter information for ALL locations.

DLA Response: DLA will provide its most up to date list of account numbers for line items in this solicitation. However, a letter of authorization will be provided to obtain the most up to date account information from the specified LDC upon a direct request submitted to the contracting officer.

29. Question: Line Item 004 Schedule tab, Note #1 – The notes specify delivery may not be available through Millennium, however the SIP Location on the Pricing Summary tab states Millennium. Are we able to submit with adjusted SIP Locations for line items or aggregations with potential issues such as 004? This question is applicable to all service territories – can we provide pricing based on different pipelines than specified and be considered for supply?

(ex: Line item 003 – could we offer pricing based on TranscoZ6 NY as opposed to DTI?)

DLA Response: No.

30. Question: Pg. 11 “EXCESS FIRM CAPACITY” – Can you please explain how #’s 1, 2, 3 are applicable? Please confirm those sections are not applicable to full requirements prices were requested in the Summary.

DLA Response: This section refers to the delivery and management of firm capacity (space) on individual pipelines. This has nothing to do with firm requirements on the schedule pages.

31. Question: We are unable to download Att III DLAForm 2019 Subcontracting Plan_July

2018.pdf. Are you able to provide document via email?

DLA Response: Suggest you attempt from another device.

32. Question: Based upon DFARS clause 252.204-7012 in Section I-0001 I1.20-3(2), can we assume that any Controlled Unclassified Information (CUI) under this contract will be marked as such, and would not include information that is otherwise publicly available?

DLA Response: Yes, as directed in the clause.