AHEC-17922-R - Transport Gas Contracting

The Auraria Higher Education Center (AHEC) issued Request for Proposal AHEC-17922-R to procure transport natural gas services for the Auraria Campus in Denver, Colorado, serving three participating institutions: Metropolitan State University of Denver and Community College of Denver. The procurement seeks a qualified Transport Gas Service Company to supply natural gas to approximately 16 buildings totaling 1,319,271 square feet, with estimated annual consumption of 47,845 dekatherms, including 8,573 dekatherms during summer months (May through September) and 39,272 dekatherms during winter months (October through April). Deliverables include full-requirement, no-swing, no-nomination service with 100 percent fully balanced pricing, with all charges included up to the City Gate and upstream supply charges. Key qualifications require the contractor to possess a current Gas Transportation Agreement and established credit with Xcel Energy, demonstrate the ability to provide uninterrupted natural gas supply subject only to force majeure events, and provide a minimum of three references documenting past performance. Evaluation criteria include offeror capabilities, analysis and evaluation of market conditions, cost proposal, past performance and references, and value-added components. Pricing must be presented as a premium or discount from the Colorado Interstate Gas (CIG) first-of-month firm gas index, with separate pricing for winter and summer months on a per-dekatherm basis, and must remain firm for a minimum of 90 days after the proposal due date. Key deadlines included a written inquiry deadline of April 28, 2017 at 5:00 PM, proposal submission due May 19, 2017 at 2:00 PM Mountain Time, with oral presentations and site visits potentially required during the week of May 22, 2017; the Notice of Award was estimated for June 5, 2017, with contract execution required by July 1, 2017.

The RFP does not specify set-aside designations or restrictions limiting organizational types from responding, nor does it reference disadvantaged enterprise preferences. The current incumbent provider arrangement includes Xcel Energy, which provides natural gas to the majority of campus buildings through lines it owns, while Tiger Natural Gas serves the Tivoli and King Center; the selected contractor must integrate with these existing infrastructure arrangements and establish separate billing relationships with each of the three participating institutions at distinct accounts payable addresses. The contract structure establishes AHEC as the single contracting entity while maintaining separate billing relationships to facilitate cost allocation and accounting procedures. No specific budget ceiling is stated in the RFP; however, the current cost for natural gas was $0.54 per therm based on the last 12 months of invoices, which provides a baseline for cost evaluation. The initial contract term is one calendar year from execution, with optional renewal periods of up to four additional one-year terms for a maximum total contract duration of five years, and AHEC reserves the right to cancel the contract at any time without cause upon 30 days' written notice, with the Participating Institutions also reserving the right to adjust or reduce quantities based on budgetary restrictions.