Questions in Response to Solicitation_0402.pdf

Northeast Natural Gas Solicitation

SPE604-24-R-0402

Q&A

QUESTIONS FROM INTERESTED PARTIES IN RESPONSE TO

NE NATURAL GAS SOLICITATION SPE604-24-R-0402

1. Question: For LI 0006, Please indicate the rate class and listed on the customers utility bill so we know how to price appropriately. Rate Class is currently listed on the Schedule Page generically as “Large Commercial”, but we need to know the actual rate class code (for instance if it is a DMT rate class or not).

DLA Response: The rate class provided by the customer is valid and current at the time of the solicitation posting. A letter of authorization will also be provided to obtain further account information from the specified LDC. For suppliers seeking account numbers or an LOA, please submit a direct request to dlaenergy.ngteam@dla.mil. Please include “SPE604‐24‐R‐0402 Account Number/LOA Request” in the subject line of your request.

2. Please provide a list of facilities (if applicable) that require WAWF invoicing.

DLA Response: DLA does not have a WAWF list for our customers. The Wide Area Workflow invoicing preference will depend upon the respective invoice certifying office. DLA will provide all customer invoice and payment office point of contact information at the time of contract award.

3. Question: Please provide an updated list of account numbers and corresponding usage for this opportunity.

DLA Response: DLA will provide the most current list of account numbers for line items in this solicitation. A letter of authorization will also be provided to obtain further account information from the specified LDC. For suppliers seeking account numbers or an LOA, please submit a direct request to dlaenergy.ngteam@dla.mil. Please include “SPE604‐24‐R‐0402 Account Number/LOA Request” in the subject line of your request.

4. Question: Does the DLA foresee adding any additional accounts/meters during this contract period? If so, are any additional account adds mutually agreed upon?

DLA Response: DLA does not foresee adding additional accounts or meters to the solicitation at this time. DLA notes that accounts are regularly added and dropped from service throughout the production period of the contract as a normal course of business. DLA refers suppliers to the RFP at section B, 2- C700 Statement of Work (f) Material Change and FAR 52.216-21 Requirements (Oct 1995)(a).

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Q&A

5. 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: If a location opts for a Contract Price Conversion (B704 CONTRACT PRICE CONVERSION (NATURAL GAS) (DLA ENERGY APR 2006) (REV)), the Contract Officer and the Contractor would negotiate an equitable adjustment for unutilized natural gas if/when a location drops from the DLA program during the contract term.

Regarding a change to a location’s requirements (not a full “drop”), DLA notes that accounts are regularly added and dropped from service throughout the production period of the contract as a normal course of government business. For further information regarding equitable adjustments, DLA refers suppliers to the RFP at section B, 2-C700-Statement of Work (f) Material Change, FAR 52.216-21 Requirements (Oct 1995)(a), and DFARS 252.243-7002 Requests for Equitable Adjustment (Dec 2022)

6. Question: The billing method is not clear/identified in the schedule pages. Please provide a clear updated list of billing methods requested associated with each group so the contractor can set up these accounts correctly and accurately. Either Dual, Consolidated, or LDC Consolidated/UCB. We see there is some notes mentioned a billing method – but there is a lot that do not – this information would need to be known prior to submitting a price because there are POR fees in some of these markets so pricing will differ weather a Dual or UCB billing method is selected.

DLA Response: The billing method selected will depend upon the LDC rules and customer preferences. The billing methods available are Dual Billing, Contractor Consolidated Billing, and LDC Consolidated billing as defined in the RFP at section B, 2- C700 Statement of Work (m) Invoices and Payment (2). Dual billing is the default methodology. All LI’s on this solicitation are currently identified as Dual enrolled billing, except for Tied Aggregated Group 1: LI 0036 and LI 0037. For further information see the document uploaded to SAM.gov listed as Billing Type Tied- Aggregated Group 1.

7. Question: Regarding regulatory changes/change in lar - For electricity – DLA has clearly identified a change in law or regulatory change per section I820 ELECTRICITY REGULATORY CHANGES (DLA ENERGY DECEMBER 2014). For this Gas RFP – Should there be any change in law, tariffs or regulations that alters a suppliers cost to serve (e.g.: a new tax) will the DLA allow their supplier to alter their contract price? I do not see any reference to how regulatory changes will be implemented in this RFP.

DLA Response: If a regulatory change that effects the method of derivation is altered substantially the parties shall mutually agree upon an appropriate substitution. The Contract Officer has the authority to negotiate with a Contractor to address any/all regulatory changes during the contract performance period. For further information regarding equitable adjustments, DLA refers suppliers to the RFP at section B, 2-C700-Statement of Work (f) Material

Change, FAR 52.216-21 Requirements (Oct 1995)(a), and DFARS 252.243-7002 Requests for Equitable Adjustment (Dec 2022)

8. Question: For Tied Group 6, Fort Lee (0030), Quantico MCB (0031), FBI Academy Quantico

(0032), Portsmouth Naval Hospital (0033), Norfolk Naval Station (0034) and Saint Juliens Creek Annex (0035) are all grouped together. There are TCO constraints in between these locations with some accounts easy to supply and others much harder to supply. Would you consider splitting out Quantico MCB and FBI Academy Quantico from the other accounts and into a separate group? This would allow more suppliers to bid on these accounts.

DLA Response: DLA has consistently received adequate competition on these grouped line items on previous solicitations and will not consider separating them at this time.

9. Question: For LI 0037 (6 of 15), National Institute of Health (limited interruptible), note #3 mentions that a COGEN plant can go down and result in increased usage of as much as 11,000 DTH/day for an undetermined/unpredictable amount of time. This creates substantial risk to suppliers. Please confirm that the COGEN plant is not part of this solicitation. As well, would the government entertain a swing bandwidth on the NIH interruptible boiler account, where any volume deviations outside 10 or 25% of their contract volume could be priced at a Gas Daily Price? Or removing the account to a separate line item?

DLA Response: DLA can confirm that the COGEN plant volumes are not included in this solicitation. No, DLA will not consider changing the Delivery Option for LI 0037 (6 of 15) National Institute of Health and reiterates that the Delivery Option will remain as Option (2) Full Requirements/Pool.

10. Question: Can the DLA please provide the historical usage for each account included in this solicitation?

DLA Response: A letter of authorization can be provided to obtain further account information from the specified LDC. For suppliers seeking account numbers or an LOA, please submit a direct request to dlaenergy.ngteam@dla.mil. Please include “SPE604‐24‐R‐0402 Account Number/LOA

11. Question: Would the DLA consider separating the CLINs in group 6? Line items 0031 and 0032 represent different market areas behind this LDC compared to the other four line items (0030, 0033, 0034 and 0035). Separating them would lead to more competitive pricing.

DLA Response: No, DLA will not separate the CLIN’s in group 6. DLA has consistently received adequate competition on these grouped line items on previous solicitations and will not consider separating them at this time.

12. Question: Can the DLA confirm whether all capacity assets are listed in the notes for each CLIN in attachment IV?

DLA Response: All information provided by the customers is valid and current at the time of the solicitation posting.

13. Question: Could the DLA please provide an updated list for group 4 with the correct SIP locations? Some facilities in 0026 and 0027 are currently listed as using Transco Zone 6 but should use Transco Zone 2 or Henry Hub to avoid paying risk premiums.

DLA Response: These New York locations have the current SIP selected due to feedback from industry. The Contract Officer welcomes further discussions on appliable SIP selection; however, the DLA will not change a SIP based on one supplier’s preference. If consensus is reached to change a SIP due to market changes the DLA will consider changes to facilitate competition.

14. Question: Can the DLA please provide the daily contract quantities and the account numbers associated with the WGL accounts?

DLA Response: DLA provides estimated monthly contract quantities as listed in the schedule pages. A letter of authorization can be provided to obtain further account information from the specified LDC. For suppliers seeking account numbers or an LOA, please submit a direct request to dlaenergy.ngteam@dla.mil. Please include “SPE604‐24‐R‐0402 Account Number/LOA

15. Question: Can the DLA please provide a sample NGAS summary sheet and a sample invoice summary cover sheet that it is expecting? This has not been provided in the past, and we want to ensure we can support this request.

DLA Response: No, DLA cannot provide a sample NGAG summary sheet. Please see the notes on the corresponding schedule pages. There you will find clear instructions regarding the information that must be included on the NGAS summary sheet and the Invoice summary cover sheet.

16. Question: CLIN 0004 has the following note: “USMA West Point anticipates an upward trend in natural gas consumption attributed to current and future projects, which are expected to elevate usage levels between 2025 and 2027.” Can the DLA please elaborate specifically on when this increase is expected and by how much?

DLA Response: No. DLA cannot elaborate on the anticipated upward trend in natural gas consumption as currently there is not a specific project timeline available from the customer at this time.

17. Question: Could the DLA please clarify whether suppliers will have the opportunity to refresh pricing? The RFP states on page 34 that offerors are required to hold prices specified in the addendum of the solicitation. The addendum on page 36 of the RFP provides a timeframe of 120 days.

DLA Response: Yes, pricing can be refreshed. DLA asks offerors to submit initial pricing with their offer package. After the technical and past performance review is completed, each offeror will be able to refresh their initial pricing during the final reverse auction. For further information regarding the Reverse Auction process, please see the RFP clause DLAD L09 Reverse Auction (OCT 2016).

18. Question: Can the DLA please provide an updated version of Attachment I? Columns I and J currently lack dropdown menu options.

DLA Response: Yes. DLA will provide a revision of Attachment I via Amendment 0001 to this solicitation.

19. Question: Could the DLA please provide Attachment V that is referenced in the RFP?

DLA Response: Yes. DLA will provide the addition of Attachment V via Amendment 0001 to this solicitation.

20. Question: Regarding CLIN 0006, the annual usage is about 60% more than the last 12 months and the two-year average, with no explanation in the notes section. Some of the months are three to five times above the average. Is there an explanation for this increase, or could this be an error?

DLA Response: All information listed on the schedule pages are complete and up to date.

21. Question: Could the DLA send an updated list for CLIN 0007, ensuring correct SIP locations?

Correcting this would help avoid substantial risk premiums.

DLA Response: This Pennsylvania location has the current SIP selected due to feedback from industry. The Contract Officer welcomes further discussions on appliable SIP selection; however, the DLA will not change a SIP based on one supplier’s preference. If consensus is reached to change a SIP due to market changes the DLA will consider changes to facilitate competition.

22. Question: Regarding aggregated group 1 in PSE&G, we previously served the JB MDL accounts as one aggregated group, rather than breaking out small and large accounts. Would the DLA allow this to continue to be served in the same way?

DLA Response: No, DLA cannot reorganize the account structure for aggregated group 1. The JB MDL accounts are broken into large and small accounts due to customer preference resulting from the military’s Basic Realignment and Closure Efforts (BRAC) that occurred some years back.

Furthermore, DLA has consistently received adequate competition on these grouped line items on previous solicitations and will not consider combining them at this time.

23. Question: When providing a list of account numbers, could the DLA also include the appropriate rate class for each account?

DLA Response: DLA provides the Rate Class information on the schedule pages and in the account number document. DLA will provide the most current list of account numbers for line items in this solicitation. A letter of authorization will also be provided to obtain further account information from the specified LDC. For suppliers seeking account numbers or an LOA, please submit a direct request to dlaenergy.ngteam@dla.mil. Please include “SPE604‐24‐R‐0402 Account Number/LOA Request” in the subject line of your request.

24. Question: For the WGL accounts, the RFP states that balancing is a pass-through line item. Can the DLA please confirm this is correct?

DLA Response: Yes, DLA can confirm that balancing for the WGL accounts are a pass through to the customer. All information listed on the schedule pages are complete and up to date.

25. Question: For the BGE accounts, is it accurate that the POLR charge, previously included, is now required to be passed through?

DLA Response: Yes. However, if a change to the POLR/MOLR LDC charge(s) occurs during the contract term that affects the supplier’s delivery costs, the supplier and the Contract Officer may make an equitable adjustment per mutual agreement. DLA

26. Question: Can the DLA please clearly identify which groups are requesting burner tip pricing and which groups are requesting city gate pricing?

DLA Response: Yes. Burner Tip and City Gate pricing is identified on the schedule page under Delivery Point. All information listed on the schedule pages are complete and up to date.

27. Question: Please confirm that for New Jersey accounts, suppliers should embed NJ SUT in the price on the invoice, per state law.

DLA Response: DLA can confirm that Government buildings/facilities are tax exempt from the NJ SUT law. A tax-exempt form will be provided at the time of award.

28. Question: Regarding C700. Statement of Work (i) Refused or Accepted Quantities, please confirm that if the LDC accepts delivery of a supplier’s gas, that supplier would bill the contract price, and that any true up would be between the LDC and the customer.

DLA Response: No. According to RFP (i) Refused Or Accepted Quantities, any reimbursement would be between the customer and the supplier. See the RFP (i) Refused Or Accepted Quantities, (2) Accepted by LDC

29. Question: Regarding C700. Statement of Work (k) Repurchase and Set Off and FAR 52.216-21

Requirements, please acknowledge that while the customer can procure gas from another supplier, the winning supplier for each CLIN would be the only supplier authorized to deliver on their behalf. The customer would need to coordinate the gas purchase with the winning supplier for delivery.

DLA Response: Yes, DLA can confirm that the winning supplier would be the only supplier authorized to deliver on the customers behalf unless for some unforeseeable reason the awarded supplier was unable to perform or is removed as the supplier for cause.

30. Question: Regarding C700. Statement of Work (l) Excess Firm Capacity, please acknowledge that suppliers do not have the ability to track capacity usage at the customer level.

DLA Response: DLA agrees that suppliers do not currently have the ability to track capacity usage however at the time of award once the supplier takes control of customer owned capacity then they will have access to capacity usage data.

31. Question: Regarding C700. Statement of Work (j) Penalties and Cash Outs, in instances where the supplier operates a pool which is cashed out by the LDC, (i.e., PNG and CVA), these calculations would not be applicable. Can the DLA confirm that this section is only applicable to stand-alone customers?

DLA Response: No, DLA cannot confirm that this section is only applicable to stand alone customers. Please see RFP Section C700 Statement of Work (e) DELIVERY/MANAGEMENT OPTIONS, (2) Full Requirements/Pool addresses how suppliers shall address locations served by a supplier pool.

32. Question: We also wanted to point out that in the Schedule page there is a note “Westover will receive one invoice from Columbia Gas of Massachusetts for transportation charges of both.”

We cannot single bill this location – it would have to be Dual Billed. Two of these accounts are in the Daily pool so we couldn’t UCB that group. Please advise that we can Dual Bill Westover in addition to the questions below.

DLA Response: Yes. Dual billing is allowable for the Westover Installation.