Questions and Answers for SPE604-23-R-0402.pdf

Questions and Answers Solicitation SPE60423R0402

29 MAR 23

1. Question: Will DLA consider changing from Delivery Option 2 to Delivery Option 3 for California locations?

Answer: While DLA does not intend to change the delivery options at this time, offerors may submit exceptions to terms in their offer in accordance with note 4 on page 3 of the solicitation. Delivery options may be addressed during discussions. Any changes to delivery options will be issued via an amendment to the solicitation.

2. Question: Clause C-0001 C700 Statement Of Work (Natural Gas) (DLA Energy JUL 2012) (e) Delivery/Management Options Item (3) Monthly Order Quantities. The 10 percent allowance only applies to quantities priced under fixed price with economic price adjustment provision. Is the price referred in the above statement is that the contract unit price?

Answer: For items identified with delivery/management option 3, the contract unit price applies to all natural gas quantities within 10 percent of the ordered quantity. The contract unit price is the first of month price and includes the supply index price (SIP) and adjustment factor as defined in clause B700 on page 8 of the solicitation and specified on the schedule page.

If the contractor and the Government agreed to convert a quantity of gas during the delivery period to fixed price, in accordance with clause B704 paragraph (b) on page 8 of the solicitation, that quantity would be considered first through the meter and would be deducted from the total order and delivered quantities for the month before applying the pricing methodology in delivery/management option 3.

3. Question: Clause C-0001 C700 Statement Of Work (Natural Gas)

Monthly Order Quantities. For any amounts used beyond 110 percent, the Government shall pay for all gas consumed beyond the 10 percent tolerance in accordance with the pricing mechanism indicated in the Schedule. The pricing mechanism reflected in the

Schedules show Gas Daily simple average plus adjustment factor. Is the pricing mechanism the simple monthly average of gas daily prices plus the adjustment factor?

Answer: In the case where natural gas usage is beyond 110 percent of the order quantity, the methodology indicated on the schedule page for overage treatment will be used for quantities exceeding 110 percent. For all line items indicating delivery/management option 3, with the exception of line item 0001, the overage methodology is the simple daily average for the 1st through the end of the month for the index point indicated on the schedule page plus the applicable adjustment factor. For line item 0001 the methodology is the simple average for the 16th through the end of the month plus the applicable adjustment factor.

4. Question: Clause C-0001 C700 Statement Of Work (Natural Gas)

Monthly Order Quantities. If the Government should consume less than 90 percent of the ordered quantity, one of the following two scenarios will apply depending on the relationship between the pricing mechanism found in the Schedule and the first of month price:

Is the pricing mechanism Gas Daily simple average plus adjustment factor?

Answer: In the case where natural gas usage is less than 90 percent of the order quantity, the methodology indicated on the schedule page for underage treatment will be used. For all line items indicating delivery/management option 3, with the exception of line item 0001, the underage methodology is the simple daily average for the 1st through the end of the month for the index point indicated on the schedule page plus the applicable adjustment factor. For line item 0001 the methodology is the simple average for the 16th through the end of the month plus the applicable adjustment factor.

5. Question: Clause C-0001 C700 Statement Of Work (Natural Gas)

Monthly Order Quantities. (i) If the price for unused natural gas as determined by the pricing formula is less than the first of month price, the Government shall be invoiced for the difference between the pricing formula unit cost and the first of month contract order price times the difference between the quantity ordered beyond the 10 percent tolerance limit and the quantity consumed. This shall be shown as a separate item on the Contractor’s invoice. Does the pricing formula have the same meaning as the pricing mechanism which is reflected in the Schedules shown as Gas Daily simple average plus adjustment factor? If so then this compares the gas daily pricing plus AF against the first of the month price with no AF.

Is the adjustment factor included in the pricing mechanism?

Answer: For quantities consumed less than 90 percent of the ordered quantity the difference between the contract unit price (supply index price plus adjustment factor) and the underage pricing methodology on the schedule page will be taken. The adjustment factor is included in the pricing methodology if indicated on the schedule page.

If the pricing methodology price is higher than the contract unit price, that difference will be multiplied by the difference between 90 percent of the ordered quantity and the quantity used. The result will be credited to the Government as a separate item on the contractor’s invoice.

If the pricing methodology price is lower than the contract unit price, that difference will be multiplied by the difference between 90 percent of the ordered quantity and the quantity used. The result will be charged to the Government as a separate item on the contractor’s invoice.

6. Question: Clause C-0001 C700 Statement Of Work (Natural Gas)

Monthly Order Quantities. (ii) If the price for unused gas as determined by the pricing formula is greater than the first of month price, the Contractor shall provide a credit to the Government equal to the quantity of unused gas beyond the 10 percent tolerance times the difference between the pricing formula unit cost and the first of month contract order price. The credit shall be shown as a separate item on the Contractor’s invoice. Does the pricing formula have the same meaning as the pricing mechanism which is reflected in the

Schedules shown as Gas Daily simple average plus adjustment factor? If so then this compares the gas daily pricing plus AF against the first of the month price with no AF. Is the adjustment factor included in the pricing mechanism?

Answer: Refer to answer for Question 5.

7. Question: Will DLA consider evaluation at an Index other than the one requested in RFP? Example An Index closer to the Delivery Point

Answer: DLA Energy does not intend on amending the solicitation to change any of the SIPs. This issue may be addressed during discussions. Any changes to the requirements will be issued via an amendment to the solicitation.

8. Question: Is DLA planning to issue an RFP for requirements at Nellis

AFB? Is yes, is there an approximate

Answer: No, Nellis AFB will not be acquiring natural gas supply through the DLA Energy natural gas program for this upcoming period.

9. Question: For California, for each of the CLINs 0011 to 0016, please clarify if you are requesting bid prices to the city gate, or to the burner tip?

Answer: The delivery point for each CLIN is identified on the schedule page. CLIN 0011 is located behind Tuscarora Pipeline and the adjustment factor should include all transportation costs to deliver the natural gas to the receipt point specified in note 2 on the schedule page insofar as they vary from the SIP per clause B700 paragraph (b)(2).

Installations identified in CLIN 0014 are located behind Pacific Gas & Electric. As such, natural gas will be delivered to the citygate, however per note 2 on the schedule page, LDC fuel loss must be included in the adjustment factor. Installations will be invoiced for quantities delivered at the meter. Should the fuel loss on the LDC change during the course of the contract, an equitable adjustment will be negotiated to revise the price to compensate for the change.

For CLINs 0012, 0013, 0015, and 0016 the delivery point is the citygate.

10. Question: Will you identify which accounts need to be billed out of

WAWF?

Answer: Wide Area Workflow (WAWF) is an electronic billing system used by Department of Defense (DOD) installations for receipt and payment of invoices. All DOD locations are mandated to use WAWF unless a regulatory exception applies. Per clause C700, Statement of Work, paragraph (m)(1) on page 13 of the RFP, a copy of the invoice shall be sent to the DLA Energy contract specialist assigned to the contract and to the Invoice Certifying Office that will be indicated on the schedule page upon award. The Invoice Certifying Office will notify the contractor if the invoice needs to be submitted via electronic means. Electronic means includes electronic billing systems (e.g. WAWF) utilized by the installation. Other systems besides WAWF may be identified for use.

11. Question: What day and time are you requesting bidders to hold the prices in our price bid firm until you make the award?

Answer: Per clause L705, Instructions to Offerors, paragraph (a)(7), offerors must offer both a winter and summer adjustment factor for each line item offered upon. Offers must be submitted by the deadline identified in the RFP. Failure to submit a price will make an offer invalid for award. Upon opening of discussions all offerors will be allowed to revise their offers, to include pricing. The Government intends to utilize reverse auctioning for revisions of prices as indicated in procurement note L09 on page 62 of the RFP. The Government intends to notify offers promptly of an acceptable offer after conclusion of price revisions. Per the addendum to the solicitation offers are reminded that offer packages must be kept valid and awardable during the period of acceptance for offers in order to allow sufficient time for evaluation of offers and discussions.

12. Question: Burner Tip is not available for any of the accounts due to utility restrictions. Fuel will be billed separately by the utility. Please confirm?

Answer: Please see the response to question 9.

13. Question: Please confirm dual billing is allowed?

Answer: Per clause C700, Statement of Work, paragraph (m)(2), dual billing is the default methodology unless otherwise stated on the schedule page.

14. Question: FAR 52.212-4 Contract Terms and Conditions (f) Excusable Delays. Additionally, events such as the Contractor’s inability to obtain transportation, to obtain natural gas supply contracts, to enter into firm supply and transportation arrangements necessary to meet firm requirements, or the event of higher actual costs than contracted costs to the Contractor shall not be considered as excusable delays. Does this refer to a force majeure event on a given day, or if this refers more to our longer term portfolio contracts?

Answer: Clause 52.212-4, Contract Terms and Conditions, paragraph (f) Excusable Delays addresses force majeure events as “nonperformance caused by an occurrence beyond the reasonable control of the contractor and without its fault or negligence, such as acts of God or the public enemy, acts of the government in either its sovereign or contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, unusually severe weather, and delays of common carriers.” The economic hardship of either party solely, not caused by events previously listed does not constitute an excusable delay.

Neither do events such as the contractor’s inability to obtain transportation, to obtain natural gas supply contracts, to enter into firm supply and transportation arrangements necessary to meet firm requirements, or the event of higher actual costs than contracted costs to the contractor. These items alone are not considered excusable delays.