Direct Supply Natural Gas-Northeast Region

SOURCES SOUGHT NOTICE – MARKET RESEARCH

This is a Sources Sought Notice only.  It seeks information from small business sources that can provide direct supply natural gas.  No solicitation is being issued at this time.  The amount of information available for publication at this time is limited.  This notice is also issued for the purpose of market research in accordance with Federal Acquisition Regulation (FAR) Part 10.  

The Defense Logistics Agency (DLA) Energy, Natural Gas Division, Installation Energy Directorate seeks potential business sources to provide direct supply and delivery of natural gas to DoD and Federal Civilian facilities in the states of Maine, Massachusetts, Connecticut, Rhode Island, New York, Pennsylvania, New Jersey, Delaware, West Virginia, Maryland, Virginia, and Washington DC (US Northeast Region).

Interested firms should be able to deliver natural gas via interstate/intrastate pipelines, place nominations for natural gas consumption for customers behind applicable Local Distribution Companies (LDCs) and/or directly connected to interstate pipelines, and manage customer consumption to comply with applicable balancing provisions.      

The Government will award a requirements type contract.  The award will be made as a firm fixed price with economic price adjustment for a twenty four months period; beginning on or about April 1, 2025.  The Contractor shall act as the nominating and balancing agent on behalf of the Government customers with local distribution companies (LDCs) and/or Pipelines.    

The North American Industry Classification System (NAICS) Code is 221210 and the small business size standard is 1000 employees.  The Government is also interested in the following small business categories to respond to this notice:  Small Businesses, 8(a) Businesses, Historically Underutilized Business Zone (HUBZone) Businesses, Women-Owned Small Businesses (WOSBs), and Service-Disabled Veteran-Owned Small Businesses (SDVOSBs). 

Responses are limited to not more than 5 pages.  The Government will use this information, in addition to other information obtained, to determine its small business set-aside decision.  Any information provided by industry to the Government as a result of this notice is voluntary.  The Government will not pay for any information submitted in response to this notice.  All responses to this notice are to be submitted by 1500 hours EST on May 3, 2023.  Only responses submitted via e-mail will be considered.  E-mail submissions to:   dlaenergy.ngteam@dla.mil.

In the event a decision is made to set-aside line items within the solicitation, an offeror who certifies as a small business and offers on a line item set aside for exclusive small business participation must:

• propose to furnish direct supply natural gas from a well owned and operated by a small producer(s), which is defined by the Small Business Administration

• clearly demonstrate a direct relationship between the natural gas well(s) owned and operated by a small business producer

• provide supply commitment letters from the small business producer(s) that will be utilized during the contract performance period including a firm commitment to supply natural gas in the quantity required by the line item set aside for small business

Interested companies should respond to the following: 

1.  Provide a company profile to include number of employees, office location(s), UID/CAGE Code number, and a statement regarding current business status.  Please note that registration in the System for Award Management (SAM) is required for DLA Energy contractors.

2.  Experience.  Do you have experience as a prime contractor or subcontractor providing supply and transportation (firm and/or interruptible) of natural gas to retail customers served by a LDC or retail customers not served by an LDC.? If so, please provide the following information:  The LDC and/or pipeline in which you have experience in serving retail customers and the number of months of experience you have within the past two years for each.   In addition, please provide a list of LDCs/Pipelines which you currently have service agreements with or are authorized to supply.  If your firm acted as a subcontractor or joint venture, name the prime contractor or other party, the specific work performed, and percentage.

3.  Do you anticipate any type of teaming arrangement for this requirement?  If yes, please address what kind of arrangement and what percentage of work, and type(s) of service you would perform. 

4.   Does your company have the financial capability and financial stability, and/or adequate lines of credit to sustain and support a twenty-four month contract at one or more locations, in the event there are delays with the payment process?

5.  Do you currently have a direct relationship with a small business producer(s)?  If so, please provide the name of the producer, the expiration date and volumes associated with the agreement.

6.  Will you be able to obtain supply commitment letters from a small business producer(s) to cover a twenty-four month contract performance period to include volumes sufficient to meet supply requirement for set-aside items?