Questions and Responses for SPE604-26-R-0403.pdf

Northeast Natural Gas Solicitation

SPE604-26-R-0403

Q&A

QUESTIONS FROM INTERESTED PARTIES IN RESPONSE TO

NE NATURAL GAS SOLICITATION SPE604-26-R-0403

1. Question: Will performance of this contract involve the receipt, generation, storage, transmission, or processing of any Controlled Unclassified Information (CUI), or will contractors only have access to Federal Contract Information (FCI)? Please clarify the anticipated information environment associated with contract performance.

DLA Response: Performance of the contract will strictly involve Federal Contract Information (FCI). The information environment is limited to the exchange of transactional logistics, delivery scheduling, base utility billing data, and administrative correspondence necessary to execute natural gas delivery to the designated federal installations.

2. Question: If contractor performance will involve only FCI, does the DLA anticipate that contract performance, any option period, contract modification, or any future task or delivery order issued pursuant to this solicitation could require the handling of CUI or otherwise necessitate a CMMC level above Level 1? If so, please describe the circumstances under which such requirements would apply.

DLA Response: No. The Government does not anticipate any operational parameters during initial performance, option periods, modifications, or subsequent delivery orders that would alter the information classification level or necessitate a compliance threshold above CMMC Level 1 (Self).

3. Question: For purposes of award eligibility, is a contractor required to have a completed

CMMC Level 1 self-assessment uploaded to SPRS by the proposal due date, or may the self-assessment be completed at any time prior to contract award? The solicitation states that a completed CMMC Level 1 self-assessment must be uploaded to SPRS “in advance to be eligible for contract award.”

DLA Response: Per DLAD L39, Offerors must possess a current CMMC Level 1 Self- Assessment and an active annual affirmation uploaded into the Supplier Performance Risk System (SPRS) prior to time of contract award to be eligible for selections. It is not a mandatory condition for submission on the proposal due date of August 24, 2026, but it shall be in place prior to award.

4. Question: Force majeure and imbalance charges: Could you please clarify the meaning and applicability of the term “Imbalance Charges” as used in FAR 52.212-4(f) on page 11 of the solicitation? For example, if a documented capacity curtailment or recall of released capacity qualifies as an excuse to performance under Section C, paragraph (h) on page 9, would the contractor remain responsible for imbalance charges caused solely by that excused interruption, despite complying with all applicable notice, nomination, balancing, and mitigation requirements under the solicitation?

DLA Response: Yes, the Contractor remains responsible for imbalance charges. Force Majeure allows for an excuse in performance to not result in a failure to deliver for breach of contract, but it does not shift third-party pipeline financial liabilities to the Government.

5. Question: Option and extension-price evaluation: Could you please clarify the calculation methodology DLA will use to determine the total price for all options that will be added to the total price of the basic requirement under FAR 52.212-2(b) on page 37 of the solicitation? Additionally, how will DLA assess whether option prices are “significantly unbalanced,” and will that assessment be based on the relationship between the summer and winter adjustment factors provided in Attachment IV or on some other methodology?

DLA Response: In accordance with FAR 52.212-2(b), the total evaluated price will be determined by multiplying the offeror’s proposed unit pricing by the total estimated quantities across the entire potential contract duration authorized under FAR 52.217-9.

Pursuant to FAR 15.404-6, because separate option period pricing submissions are not required, the assessment of unbalanced pricing applies directly to the submitted base pricing structure and the Attachment IV adjustment factors. This evaluation is not based solely on the mathematical relationship between summer and winter adjustment factors.

DLA will analyze the pricing structure of technically acceptable offers to ensure no line items or factors are materially over or understated in a manner that poses unacceptable performance risk or results in a government paying unreasonably high prices during any period of the contract.

6. Question: 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.

7. 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 “SPE604‐26‐R‐0403 Account Number/LOA Request” in the subject line of your request.

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

mailto:dlaenergy.ngteam@dla.mil

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 C, Statement of Work (f) Material Change and FAR 52.216‐21 Requirements (Deviation 2026-O0038) (Feb 2026).

9. 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: No. Termination fees are not authorized for standard location drops.

Pursuant to RFP Section C, Statement of Work (f) Material Change, if a reduction in consumption is not considered a “Material Change,” termination fees shall not be charged.

10. Question: The requested billing method is not clearly identified in the schedule pages.

Please provide an updated list of billing methods requested for each group so the contractor can set up these accounts correctly and accurately (dual, consolidated, or LDC consolidated/UCB). Additionally, we see there are some notes mentioned about a billing method in Attachment IV, but there are many locations that do not discuss this. 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 depending on whether a dual or UCB billing method is selected.

DLA Response: Dual billing is the default methodology for this requirement, and all line items (LI) 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.

11. Question: Regarding regulatory changes/change in law, for electricity, the 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 alter a supplier’s cost to serve (e.g., a new tax), will the DLA allow its supplier to alter the contract price? We 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 C, Statement of Work (f) Material Change, FAR 52.216‐21 Requirements (Deviation 2026-O0038) (Feb 2026), and DFARS 252.243‐7002 Requests for Equitable Adjustment (Dec 2022).

12. 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 “SPE604‐26‐ R‐0403 Account Number/LOA Request” in the subject line of your request.

13. 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.

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 “SPE604‐26‐ R‐0403 Account Number/LOA Request” in the subject line of your request.

15. Question: Can the DLA please provide a sample NGAS summary sheet and a sample invoice summary cover sheet outlining its expectations? 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 NGAS 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: 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 RFP clause DLAD L09 Reverse Auction (OCT 2016).

17. 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 “SPE604‐26‐R‐0403 Account Number/LOA Request” in the subject line of your request.

18. Question: Can the DLA please clearly identify which groups are requesting burnertip pricing and which groups are requesting city gate pricing?

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

19. 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.

20. 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 the supplier would bill the contract price, and that any true up would be between the LDC and the customer.

DLA Response: The reference to “C700” is legacy terminology and does not appear in our current solicitation. The requirement is governed by RFP Section C, Statement of Work (i) Refused or Accepted Quantities.

Pursuant to C(i)(2), If the LDC accepts and utilizes the gas for its own system delivery, the Government will reimburse the Contractor for the quantity used by the LDC at the lesser of the contract price or the LDC cash out price. Any true-up would be between the LDC and the Supplier (Contractor).

21. 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: The reference to “C700” is legacy terminology and does not appear in our current solicitation. The requirement is governed by RFP Section C, Statement of Work (k) Repurchase and Set Off and FAR 52.216-21

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

22. 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: The reference to “C700” is legacy terminology and does not appear in our current solicitation. The requirement is governed by RFP Section C, Statement of Work (l) Excess Firm Capacity. 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, they will have access to capacity usage data.

23. 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 standalone customers?

DLA Response: The reference to “C700” is legacy terminology and does not appear in our current solicitation. The requirement is governed by RFP Section C, Statement of Work (j) Penalties and Cash Outs. DLA cannot confirm that this section is only applicable to standalone customers. Please see RFP Section C: Statement of Work (e) DELIVERY/MANAGEMENT OPTIONS, (2) Full Requirements/Pool addresses how suppliers shall address locations served by a supplier pool.

24. Question: Regarding “FAR 52.217-9 OPTION TO EXTEND THE TERM OF THE

CONTRACT (MAR 2000)”: Can the DLA confirm that an extension is to be mutually agreed upon? Can the DLA confirm that the price is to be mutually agreed upon as well?

DLA Response: No. DLA cannot confirm that the Option to Extend or that the pricing will be mutually agreed upon. Option pricing is evaluated at time of initial award and will be exercised unilaterally by the government using those established rates. However, according to the RFP Section I: Contract Clauses FAR 52.217-9 Option to Extend the Term of the Contract (MAR 2000), the government will give the contractor preliminary written notice at least 45 days before the contract expiration.

25. Question: Can the DLA clarify the use of Limited Interruptable as the delivery type when all months under curtailment days are listed with a zero value?

DLA Response: The accounts are identified as Limited Interruptible; however, all monthly curtailment days are listed as zero because no curtailments are currently anticipated. The limited Interruptible delivery type is used to account for service classes that hold the potential to be called for curtailment by the LDC, though none are presently projected.

26. Question: Tied Group 6, Columbia Gas of Virginia (CVA) is broken into market areas.

Each market area is independent of the others from both a supply and balancing perspective. Supply feeding CVA market areas is delivered off of different interstate pipelines in which capacity is required to serve. By having these accounts as a tied group, this limits the supplier pool from offers and creates a narrower field of suppliers. Can the DLA explain why these CLINs are a tied group, as the pricing for the group is for each site? If these were grouped by market area, or separated as individual line items, a broader field of suppliers with more competitive pricing would be possible.

DLA Response: DLA has considered the request and will not revise the tied group structure. Offerors shall submit proposals in accordance with the solicitation.

27. Question: Regarding CLIN 0005 (DOE West Valley Demonstration Project): Would the DLA consider removing the UCB requirement to enable more suppliers to participate on this line item and provide more competitive pricing?

DLA Response: DLA has considered the request and will not revise the billing requirement for CLIN 0005. Offerors shall submit proposals in accordance with the solicitation.

28. Question: Regarding CLIN 0004 (USMA West Point): Would the DLA be open to other pricing structures such as a typical basis product or fixed pricing as to prevent the significantly high cost of gas experienced this past February?

DLA Response: DLA has considered the request and will not revise the pricing structure for CLIN 0004. Offerors shall submit proposals in accordance with the solicitation.

29. Question: CLIN 0004 states as NOTE 2 “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 2027 and 2029.” Can the DLA quantify and further explain timeframes with regard to Note 2? Are the volumes in the schedule page inclusive of the “elevated usage,” based on historical need, or other?

DLA Response: The elevated usage identified for 2027 through 2029 is associated with expansion projects at the installation. At this time, DLA does not have a defined timeframe beyond the information provided by the installation. The forecasted quantities reflected on the Schedule Page include the anticipated increase in usage and represent the Government’s current projected requirements.

30. Question: Regarding CLIN 0003 (Fort Drum): Please confirm the treatment of the tariff imposed balancing pass through charge. Should this be included in the A/F price or billed separately?

DLA Response: The tariff-imposed balancing charge should be included in the Offeror’s Adjustment Factor (AF) pricing and should not be billed separately unless expressly identified elsewhere in the Schedule. See Section B, Supplies to be Furnished (d) and Economic Price Adjustment – Market Price and Transportation (Natural Gas), paragraph (b)(2) Adjustment Factor (AF), of the RFP for additional information.

31. Question: Regarding CLIN 0026 (DOE Knolls Atomic Power Lab): Please confirm the treatment of the tariff imposed balancing pass through charge. Should this be included in the A/F price or billed separately?

DLA Response: The tariff-imposed balancing charge should be included in the Offeror’s Adjustment Factor (AF) pricing and should not be billed separately unless expressly identified elsewhere in the Schedule. See Section B, Supplies to be Furnished (d) and Economic Price Adjustment – Market Price and Transportation (Natural Gas), paragraph (b)(2) Adjustment Factor (AF), of the RFP for additional information.

32. Question: CLIN 0027 (Watervliet Arsenal - Bldg 136) states as NOTE 2 “The Monthly Balancing Charge imposed by the LDC Tarriff shall be billed as a pass through charge to Watervliet Arsenal.” Can the DLA confirm similar treatment as a pass through for the Monthly Balancing Charge for both CLIN 0003 (Fort Drum) and CLIN 0026 (DOE Knolls Atomic Power Lab)?

DLA Response: No. CLIN 0027 (Watervliet Arsenal) specifically provides in Note #2 that the Monthly Balancing Charge shall be billed as a pass-through charge. That treatment is unique to CLIN 0027. For CLINs 0003 and 0026 the tariff-imposed balancing charge should be included in the Offeror’s Adjustment Factor (AF) pricing and should not be billed separately unless expressly identified elsewhere in the Schedule.

33. Question: CLIN 0012 (USP Lewisburg, Penitentiary) has a discrepancy between the PRICING SUMMARY value and the Schedule page value for the SIP. Please confirm if the SIP should be TX Eastern M-3 as the index point reflective of the market for this site.

DLA Response: Yes. The applicable Supply Index Price (SIP) for CLIN 0012 is Texas Eastern M-3. DLA acknowledges that the incorrect SIP was identified on the Schedule Page. The solicitation will be amended to revise the Schedule Page accordingly.

34. Question: Regarding Tied-Agg group 2 CLIN 0038 BGE FIRM (DRS) accounts: The

POLR (Provider of Last Resort) Charge was handled as pass through on previous solicitations. Please confirm that the POLR charge remains as a pass through for this solicitation.

DLA Response: Yes. The Government confirms that the Provider of Last Resort (POLR) charge for CLIN 0038 remains a pass-through charge. 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 Contracting Officer may make an equitable adjustment by mutual agreement.

35. Question: Notes regarding the OFO language on various schedule pages such as CLINs 0028/0036 (13 of 23) and CLIN 0037 (6 of 15) have been removed for this solicitation.

Can the DLA advise if these were removed in error or intentionally left off, given the solicitation does not outline in scope other than definition?

DLA Response: The removal of the OFO provision was an error and will be updated to include it on the corresponding schedule pages by Solicitation Amendment 001. The solicitation represents the Governments’ current requirements and contract terms.

36. Question: Can the DLA clarify if the intention is to still blend UCB and dual customers behind WGL for CLINs 0036/0037 via bill method? Is pricing to be to the Citygate for those that are on UCB? In general, can the DLA confirm the delivery point and billing method for each of the line items for CLINs 0036/0037 to ensure accuracy of the pricing needs?

DLA Response: The delivery point for each applicable line item is identified on the Schedule Pages. To further clarify the billing method applicable to each line item under CLINs 0036 and 0037, DLA will upload attachment “Billing Type Tied-Aggregated Group 1” to SAM.Gov.

37. Question: Would customers in CLINs 0036 through 0039 behind BGE/WGL be amenable to prorated billing logic for cycle reads (blending rate across cycle reads)?

DLA Response: Yes. Customers in CLINs 0036 through 0039 behind BGE/WGL may be billed using prorated billing logic for cycle reads, where applicable.

38. Question: For LI 0037 (6 of 15), National Institute of Health (limited interruptible), note #2 mentions that usage can change drastically due to equipment availability and weather, and note #4 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. Can you please confirm that the COGEN plant is not part of this solicitation? Also, 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 confirms that the COGEN plant volumes are not included in the solicitation. DLA will not revise the delivery option or separate this account into a different line item. The delivery option for LI 0037 (6 of 15), National Institute of Health, will remain Option (2) Full Requirements/ Pool.

39. 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.

40. Question: For the NJ CLINs, when pricing, does DLA want Suppliers to include Sales and Use Tax (SUT) in the price?

DLA Response: No. Government buildings/facilities are tax exempt from the NJ SUT law. A tax-exempt form will be provided at the time of award.

41. Question: Can you please confirm that payment obligations are not excused, delayed or suspended by any force majeure provision?

DLA Response: DLA can confirm. Force majeure excuses operational duties, such as physical delivery or acceptance, not financial liability.

42. Question: The following account numbers were included in the previous 2024 solicitation but do not appear in the current solicitation. Could you please confirm whether these accounts have been intentionally excluded, or if they should be included as part of this procurement?

CLIN 0036-0011: Joint Base Andrews AFB

• 210002208440

• 210002220791

• 210003601247

• 210003799405

8614 Westwood Center Dr.

Suite 1200 Vienna, VA 22182 703.333.3900 WGLEnergy.com

• 210003799439

• 210003799447

• 210003809634

CLIN 0022: DLA Distribution- Susquehanna DS

• 411000858711

• 421003650742

• 421004540256

CLIN 0036-0001: Fort McNair

• 120000041380

• 120000040572

CLIN 0036-0007: Bethesda Naval Hospital

• 210006689322

CLIN 0037-0009: USDA Beltsville

• 210006276799

CLIN 0012: USP Lewisburg, Penitentiary

• 411008006859

DLA Response: The aforementioned account numbers have been removed by the utility to reflect changes at the respective installations, and are no longer active, or a part of the current solicitation.

43. Question: Some of the schedules in Attachment IV state that the Contractor will need to pass through any balancing fees as a separate line item. The bid document states that prices 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. It also states that penalties and cash outs which are the responsibility of the Contractor. However, since as per the schedules, balancing fees charged by an LDC are to be listed in a separate line item, should we assume that the Contractor’s cost to nominate and balance are included in the bid price but, that balancing fees charged by the LDC should be excluded from bid pricing?

DLA Response: Yes. Pursuant to SECTION B: SUPPLIES OR SERVICES, SUPPLIES TO BE FURNISHED (NATURAL GAS) (d), 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. Because the Attachment IV schedule for these specific locations explicitly breaks out LDC charged balancing fees as a separate line item, those specific fees should be excluded from your baseline bid price and pass through as indicated.

44. Question: For sites such as Carlisle Barracks where the site utilizes a utilities’ long haul firm transport capacity on TETCO and will be billed for such transport by the utility, is it envisioned that the Contractor/Supplier would 1) nominate natural gas supplies to the utility delivered into a receipt point on their contract and 2) balance the load behind the city gate? Also, to the extent that the Contractor is nominating supplies into TETCO, what are the utilities primary firm points, i.e., S. TX, Mont Belview, Vidor, Gillis, Opelousas, etc.?

DLA Response: Yes. Suppliers are expected to nominate natural gas to the utility delivered and balance the load behind the city gate. Further, to confirm primary firm points, please consult directly with the utility. 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 “SPE604‐26‐R‐0403 Account Number/LOA Request” in the subject line of your request.

45. Question: In a scenario such as Carlise Barracks in Question 2 above, how does the

Contractor bill and what is the billing process when the site is a “Customer is under Utility Direct Billing?

DLA Response: Some of the utilities use pass through billing while others invoice the installation directly. The billing style is at the discretion of the utility and currently, Carlisle Barracks has passthrough billing.

46. Question: Does the clause "the Contractor shall manage any excess firm capacity not utilized by the installation” mean that 1) the Contractor needs to manage, 2) can we freely market the excess firm capacity, and 3) does this fall under the 80/20 split?

DLA Response: 1) Yes, the Contractor must manage the capacity; 2) No, the contractor cannot freely market it without exhausting federal priorities and obtaining DLA Contracting Officer approval; and 3) No, the 80/20 split does not apply to this section but is only in reference to ALTERNATE FUEL CAPABILITIES AND DISTRIBUTION INTERRUPTIONS. Please refer to RFP SECTION C: STATEMENT OF WORK, STATEMENT OF WORK (NATURAL GAS) (l) EXCESS FIRM CAPACITY for further information.

47. Question: In terms of fuel switching, we understand "mutually agreeable" and the sharing incentive we would like to know if there are specific time constraints around switching, i.e., can a facility switch real time or easily for day ahead, i.e., can we understand the capabilities by facility or is this something we would learn should we be the successful Contractor?

DLA Response: There is no established time constraint within the solicitation parameters. Detailed operational switching capabilities and facility specific protocols will be coordinated with the winning supplier upon contract award.

48. Question: Please clarify the intent of the clause and the acceptable reasons under which an LDC could elect not to accept our gas. Should the DLA nominate supply and the Contractor purchases it on their behalf, there needs to be reason for lack of acceptance of gas by the LDC that results in the government not needing to pay for it such as a force majeure event, an OFO etc. Should the LDC have discretion not to accept our gas due to the fact they are swimming in supply and prices have fallen since the first of the month, this could cost the contractor a lot of money and result in a risk premium needing to be applied to service any facility behind and LDC that has the unilateral right to reject gas deliveries for any reason.

DLA Response: The intent of this provision is to clarify allocation of risk when an LDC refuses to accept natural gas due to its own supply or system operating constraints. As reflected in the clause, acceptance of gas by the LDC has always been at the LDC’s discretion and if the LDC does not accept the quantities ordered by the Government for those reasons, those quantities are deemed undeliverable and therefore are not payable by the Government. Historically, LDCs only refuse deliveries under limited operational circumstances, such as system constraints or other conditions affecting safe and reliable operation and not based on market price movements or change in supply economics.

Accordingly, the Government does not expect the LDC to exercise this discretion absent of legitimate operational or system related constraints.

49. Question: Does the contactor have the right to refuse the up to 30-month extension if given proper notice of interest by the government? If so, under what circumstances?

(page 13)

DLA Response: No. The 30 month extension references the initial 24 month base contract period and an optional 6 month extension period. This extension is optional at the discretion of the Government and will not be enacted without written notice to the contractor 45 days prior to contract expiration.

50. Question: For the NIH Cogen, will the contractor be notified asap when the system trips offline. Will we receive expected burns when the trips occur?

DLA Response: Yes.

51. Question: For 0036(16 of 23) will we have to schedule and balance 89 different DRV accounts or just one? Same question for 17 of 23 (122 accounts)

DLA Response: Yes, you will have to balance the 89 DRV accounts for LI 0036 (16 of

23) as well as the 122 accounts associated with the LI 0036 (17 of 23).