Question and Answers for Solicitation SPE604-25-R-0401.pdf

Questions and Answers for Solicitation SPE604-25-R-0401

1. Based on the way you have the RFP written I can’t bid on line items 1 through 5 as a tied group.

Answer: The line items you reference in the question are listed as standalone items in attachments I and IV of the RFP. Per NOTE 3 on page 3 of the RFP, Standalone Line Items: Each line item identified as a standalone will be awarded to a single offeror. Offerors are not required to submit an offer for multiple standalone line items in order to be eligible for the award. Tied Line Item Groups: Each group of line items identified as tied for award will be awarded to a single offeror. Offerors must offer on all items identified in a tied group in order to be eligible for the award of that group. Offerors may offer unique pricing for each line item in a tied group.

Therefore, you are not required to offer on all of the items you referenced.

2. I cannot bid on SDG&E, PG&E, and Tuscarora Pipe locations together as a tied group.

Answer: The line items you reference in the question are listed as standalone items on attachments I and IV of the RFP. See the response to question 1.

3. For Tied Group 6 I can’t serve the core locations. I can only serve the noncore.

Answer: DLA Energy assumes you are referring to tied group 4 as identified in attachments I and IV of the RFP. Tied group 4 includes two line items. Line item 16 includes core customers, while line item 17 includes noncore and installations behind Southwest Gas. Per the definition of tied groups, offerors may offer unique pricing for each line item within a tied group.

Should an offeror be unable to offer on all items in a tied group. DLA Energy is willing to consider exceptions to these terms. See NOTE 4 on page 3 of the RFP concerning exception to the solicitation.

4. In the description on the sams.gov site it states “Any resultant awards will be fixed price with economic price adjustment, requirements type contracts” however on the schedule pages a lot of them list delivery Option as (3) Monthly Order Quantities, which is an index price with 10% tolerance, not a fixed price. Can you please confirm which pricing option is going to be utilized.

Answer: Per B700, Economic Price Adjustment-Market Price and Transportation on page 10 of the solicitation. The contract unit price is defined as the sum of the applicable supply index price (SIP) and adjustment factor (AF). The applicable index price is identified as SIP on the schedule page for each location. The adjustment factor is seasonal fixed price per unit of product as defined in B700.

Offer must propose both summer and winter adjustment factors on attachment IV of the RFP to be eligible for award. The adjustment factor is the fixed price referred to on SAM.gov.

Per C700(e)(3) Delivery/Management Options pages 5-6; monthly Order Quantities, each month the customer must place an order for natural gas based on expected usage. If the Government fails to place an order, the estimated usage in the pricing schedule will be used. With delivery option (3), the contract unit price applies to gas usage within 10% (+/-) of the ordered quantity. Quantities delivered outside the 10% swing tolerance are priced per the overage/shortage pricing methodology listed on the schedule page as referenced in C700(e)(3).

5. Looking at the RFP you have written it in such a way that the locations are part of Tied Groups, and you have to be able to serve all the facilities in that Tied Group or your bid is not valid. Would you consider changing this so you can bid for individual sites within each Tied Group. It makes it hard given supplies may not have the assets to bid on every location in each Tied Group.

Answer: Per NOTE 3 on page 3 of the RFP, Standalone Line Items: Each line item identified as standalone will be awarded to a single offeror. Offerors are not required to submit an offer for multiple standalone line items in order to be eligible for the award. Tied Line-Item Groups: Each group of line items identified as tied for award will be awarded to a single offeror. Offerors must offer on all items identified in a tied group in order to be eligible for the award of that group. Offerors may offer unique pricing for each line item in a tied group.

Should an offeror be unable to offer on all items in a tied group. DLA Energy is willing to consider exceptions to these terms. See NOTE 4 on page 3 of the RFP concerning exception to the solicitation.

6. The RFP states that payment will be in accordance with the Prompt Payment Act. Natural gas standards for payment are net10 or by the 25th of the month. Can that be used for these service contracts?

Answer: Per FAR 52.212-4, Contract Terms and Conditions paragraph (i)(2) and 5 CFR 1315.4 – Prompt Payment, the due date for payment is 30 days after receipt of a proper invoice.

7. Contract funds availability:

Can you clarify how / when contract funds are established?

Will funds be allocated prior to award to ensure payment for the term of the contract?

Are there concerns that there won't be funds for all potential awards?

Is there an Estimated Time of Arrival (ETA) on how long it takes for funds to be made available for payment?

If funds are not allocated, can you address made whole provisions for the contracted gas?

Answer: Please see clause 52.216-21 on page 28 of the RFP. Any awards will result in a requirements type contract. Delivery shall be made as authorized by orders placed against the contract. Funds are obligated against each order and not the base contract. Funds must be available at the time each order is placed.

8. Backbone Transportation Service (BTS) Right on various CLIN:

Please clarify what is meant regarding "rights" associated with BTS?

When it says “rights”, does this mean bidding rights associated with BTS or does this mean capacity that a supplier can acquire during the open season using a CLINs bidding rights that they assign to a supplier?

Reference Note: The Federal Government will assign preferential Backbone Transportation Service (BTS) Bidding Rights to the contracted natural gas supplier ("Assignee"). This enables the Assignee to bid during Step 2 of the Open Season and to be the contract holder of the BTS Rights. Should the Assignee choose to release or reassign this capacity to another party, it shall be on a recallable basis. If the Federal Government is required to change suppliers (e.g., contract termination or end of the period of performance), at DLA Energy's request all BTS Rights assigned by the Federal Government shall be reassigned on a non-recallable basis to any party designated by DLA Energy. These Rights shall be transferred at 100% of the reservation rate associated with schedule G-BTS. Should the Assignee choose to obtain the BTS Rights through the Open Season process, it must meet all LDC's terms and conditions for acquiring BTS Rights including contractual and credit obligation

Answer: A supplier can acquire capacity during the open season using the bidding rights of each installation within the CLIN.

9. To increase participation for line items associated in Tied Group 4, would DLA consider separation of the CLINs associated with Southwest Gas to be a separate Group / CLIN from the SoCal Core/ Non-Core accounts?

Answer: See the response to question 3.

10. Southwest transport assignment.

Please clarify how is the contractor expected to pass back the cost if a supplier is assigned their transport and have to pay the invoice for it?

Please provide clarity surrounding the expectation of the invoicing of costs associated to the assignment transport.

How is the cost of transport to be applied to charged to the customer?

Will the transport be assigned to supplier to pass through the charges?

Answer: Concerning the locations under CLIN 17 behind Southwest Gas, there is no transport, storage, or BTS capacity assets assigned by either Southwest Gas or SoCal for any Southwest Gas customers.

Although the SoCal citygate is the supply point to service Southwest Gas, SoCal doesn’t recognize them as part of the SoCal system (be it core or noncore), so there are no SoCal assets. Southwest Gas doesn’t assign any assets of their own.

11. How are the schedule page volumes included in the RFP derived?

Answer: The schedule pages are based off an installation’s three year history adjusted for expected changes in consumption during the period of performance.

12. Are the volume in Dth respective of the “LOCATION” value indicating distinction of City Gate vs Burner Tip volumes for grossed up volumes relative to the contract Delivery Point requirement?

Answer: The estimated usage quantities on each schedule page are measured at the location specified in the Estimated Usage Information section. Suppliers should account for fuel loss from the delivery point where necessary.

13. For suppliers which may be incumbent, and volumes from the active supply period differ from the provided schedules pages, please advise on the best manner to address these differences?

Answer: See the response in question 11.

14. Can you confirm when all information will be provided to the supplier to ensure enrollments can be made in a timely fashion?

Answer: All information will be provided to supplier upon award.

15. Will supplier be made whole for any impact from incorrect information causing a delay in the enrollment start of the contract?

Answer: Reimbursement for costs incurred due to a delay in enrollment will be handled on a case-by-case basis.

16. Clin: 0017- 02 Vandenberg SFB.

What advance notice can be provided to the awarded supplier regarding note 1 "unpredictable" launch schedules?

Can notice be provided 1 month in advance for launches the month to follow?

Answer: Launch schedules are unpredictable. The installation may not be able to provide advance notice due to security restrictions.

17. Regarding C700. Statement of Work (k) Repurchase and Set Off and FAR 52.216-21 Requirements, please acknowledge and confirm 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.

Answer: The Government may procure natural gas from other sources per the terms in C700(k). Therefore, if the awarded supplier fails to deliver in any given month the ordered quantity of direct supply of natural gas and there is no excuse to performance and/or makes no progress or perform a provision of the contract, the supplier is determined to be in default to the CONTRACT TERMS AND CONDITIONS. The Government shall have the right to procure such deficient amount from either the LDC, or by reprocurement from another direct supplier without coordinating with the awarded supplier. Should these conditions not apply, the Government is obliged to procure supplies from the supplier identified in the contract.

18. Please confirm all CLINs in CA will use DUAL billing for invoicing.

Answer: Yes, all CLINs in the CA will utilize Dual billing for invoicing. Per C700(m)(2)(iii), dual billing is the default methodology. Unless otherwise stated on the schedule page, dual billing will be used.

19. Regarding the Socal Non-Core/CAT accounts:

Answer: See B700(b)(1) on page 10 of the RFP. The supply index price (SIP) is specified in the publication table listed in the schedules. It measures the general rate and direction of price within the market. However, it does not indicate a mandatory source of supply or area where offerors must obtain gas supplies. For Socal noncore accounts, this is Platts Inside FERC Socal Gas citygate.

Who would own the imbalance on these deals, and do the nominations?

Answer: See C700(a) on page 4 of the RFP. The Contractor shall act as the nominating and balancing agent on behalf of the Government customers with local distribution companies (LDCs) and pipelines.

What sort of swing on these monthly estimates do they expect/anticipate? What about daily changes?

Answer: Please reference the delivery management option definitions and terms at C700(e) on page 5 of the RFP. The applicable option is identified on the schedule page for each installation.

20. Regarding the Socal Core/CAT accounts:

Do they currently have BTS transport on Socal?

Answer: Yes

Who would own the imbalance on these deals, and do the nominations?

Answer: See the response in question 19.

What sort of swing on these monthly estimates do they expect/anticipate? What about daily changes?

Answer: See the response in question 19.