SPE604-23-R-0403 Responses to Questions.pdf

DLA Energy FEADA

SPE604-23-R-0403

Q&A Questions and Answers to SPE604-23-R-0403

General:

1. We cannot hold pricing for 120 days. What day and time are you requesting bidders to hold the prices in our price bid firm until you make the award? DLA Energy intends to conduct final pricing for offerors after initial proposals are evaluated and discussions have concluded – the time and date for final pricing will not be released at this time.

2. Please confirm dual billing is allowed? If allowable by LDC it may be permissible.

3. For the locations that specify Delivery Option 2 (Full Requirements/Pool) we are noticing that in the overage and underage section there is no publication, location, methodology filled out. Would this be something that we would be able to fill out when it comes time to bid? For customers under Delivery Option 2, no over/under methodology shall be included.

The customer’s usage during the delivery month will constitute their order. All gas delivered will be at the Inside FERC FOM price plus adjustment factor. Please refer to C700 Statement of Work (Natural Gas) for more information.

4. The OFO definition provided does not take into account the specific requirements of the utility by the site/service level. Would you allow suppliers to define incremental language by site/line item ahead of the auction process? Suppliers may provide and identify alternative pricing in conjunction to the pricing requested by the RFP. However, if no pricing submitted is in accordance with the RFP, DLA may exclude the supplier from final pricing.

5. Would DLA allow for then current spot market pricing during an operational flow order set forth by the utility/pipeline? If it is necessary to purchase spot gas then that would be negotiated with the Contracting Officer and the Facility at the appropriate time.

6. Can the supplier provide different adders for the contract quantity volumes and the incremental/buyback volumes at index? There are certain circumstances where the DLA has a different incremental mechanism than the contract quantity. Example – Wright Patterson AFB requires an Inside FERC Rex Zone 3index adder for the Contract Quantity and Gas Daily incremental. These two indexes would have different adders. Suppliers may provide and identify alternative pricing in conjunction to the pricing requested by the RFP. However, if no pricing submitted is in accordance with the RFP, DLA may exclude the supplier from final pricing.

7. Can DLA provide historical daily usage for daily balanced accounts? In order to obtain historical usage information, DLA may provide meter information upon request to offerors who submit a proposal. Please note this may not encompass the most accurate meter information; suppliers will have access to most accurate and current meter information from the customers at the time of award.

Q&A

8. Would the DLA consider working with the winning suppliers to include carbon offsets or RNG products to their supply? DLA Energy is not requesting carbon offsets or RNG products at this time.

9. Please confirm that the DLA intends to send a Notice of Intent to award following the auctions? DLA intends to notify successful offerors after final price revisions with the full contract to follow.

10. Do any of the installations have pipeline capacity that would be assigned to the winning supplier? No

CLIN Specific:

1. CLIN 001 Fort Knox, please confirm the supplier is not responsible for purchasing gas from LG&E in the event the meter is returned to service and if so, can they provide a direct pass through of costs for the gas. The supplier will not be responsible for purchasing gas from LG&E in the event the gas is unable to be delivered to the meter connected to TGT.

2. For CLIN 0001 Fort Knox Note #2, The customer has their own supply of natural gas which it will use in conjunction with monthly ordered quantities provided by the contractor” Can DLA please elaborate on this. Is this supply in addition to what they are requesting? Does this supply swing and impact the supply requested from the supplier? How is the balancing of this facility handled? Is there an OBA at the Texas Gas meter or does the imbalance get pushed back to the supplier’s Texas Gas contract? The resultant contract does not encompass the customer-owned supply, the estimates on the schedule page are requirements needed from TGT. The customer has a well on the facility where they supplement their load in concurrence with gas provided by the supplier. The supplier will provide supply management for this location. There is an OBA with Texas Gas.

3. For CLIN 0010 Wright-Patterson AFB, the price sheet only allows for a summer and a winter number. Does DLA Energy want a price versus Rex Z3 Inside FERC for a 2-year term and a Gas Daily basis for adjustments off of the base load quantity. Can the Inside FERC and Gas Daily basis to be the same? DLA is requesting pricing for summer and winter adjustment factors, the overage/shortage methodology referencing the Gas Daily determines how to invoice for those respective quantities.

For example, overage volume pricing will be invoiced at a simple average from the 1st to end of the month of the Gas Daily Rex Zone 3 for the delivery month, times the respective adjustment factor.

Please refer to B700 Economic Price Adjustment – Market Price and Transportation (Natural Gas) paragraph (b) Definitions / (c) Price Adjustments and C700 Statement of Work (Natural Gas) paragraph (e)(3) Monthly Order Quantities.

4. For CLIN 0010 Wright-Patterson AFB, Can you confirm the type of “large facility” coming online in Winter 2024? Will the DLA provide an update of when the facility is coming online during the contract term? The facility is an office building and requirements on the schedule page are inclusive of the new building. The supplier will also be notified when the facility comes online.

Q&A

5. For CLINS 0015 and 0016, NNSA Kansas City Plant and VAMC Kansas City, is there any transport capacity associated with these as well? These line items do not own transport capacity.

6. For CLINS 0017, 0018 & 0019, FCI Pekin, VAMC Marion and VAMC Danville behind Ameren IL, would the DLA consider city-gate pricing? FCI Pekin and VAMC Marion’s delivery point is the burnertip. VAMC Danville’s delivery point is the city-gate.

7. For CLINS 0020 and 0021, DOE Fermi and DOE Argonne do these have any associated NICOR storage and/or capacity? Both installations have storage.

8. For CLINs 0020 and 0021, DOE Fermi and DOE Argonne, in light of the new Nicor tariff effective 5/1/23, Are these facilities wishing to remain as standalone accounts and manage all the daily balancing and daily cashouts themselves instead of joining a supplier’s pool? It could become much more costly to be a standalone account under the new more restrictive Nicor tariff. If they are interested in joining a supplier’s pool, can they provide their storage bank details for pricing purposes? If in the best interest of the Government, and allowable per applicable LDC rules, the customer may join the suppliers’ pool(s). The storage bank limits can be provided by the LDC.

9. For CLINS 0025 and 0026, Fort Leavenworth and VAMC Leavenworth, Southern Star’s list of locations has three locations associated with Ft. Leavenworth. Location # 929201 (Ft.

Leavenworth Army Base) Location # 934201 (VA Admin Center) and Location # 932001 (Leavenworth Penitentiary). Fort Leavenworth’s ID number on the Southern Star pipeline is # 929201 and VAMC Leavenworth’s is # 934201. Leavenworth Penitentiary is a separate entity and is not included on this solicitation.

10. We also wanted to confirm that CLINS 0024, 0025, and 0026, McConnel AFB, Fort Leavenworth and VAMC Leavenworth, behind Southern Star do not have their own transport capacity. These facilities do not have capacity.

11. For CLINs 0027, 0028, & 0029, EPA Ann Arbor, VAMC Detroit and VAMC Ann Arbor, please confirm the installations will send weekly meter reads to awarded supplier. Yes, they would be able to send weekly meter reads.

12. For CLINs 0030 and 0031, DLA L&M Columbus and DFAS Columbus, would DLA consider changing the SIP from “Rex Zone 3” to “Columbia Appalachia” (aka TCO Pool)? DLA will consider changing the SIP and will issue an amendment if the decision to change it to Columbia Gas, Appalachia is made.