Natural Gas Supplier - Pre-Qualification For Choice Program

The State of Michigan is seeking pre-qualification of natural gas suppliers for its Customer Choice Program through Request for Proposal No. 180000000077, with the primary objective of establishing Tier 1 contracts for gas supply across multiple utility service areas including Consumers Energy, SEMCO, MGU, and MichCon. The procurement is designed to create a pool of qualified suppliers who can provide natural gas to state agencies and MiDeal members such as cities, townships, counties, schools, universities, community colleges, and non-profit hospitals. Bidders must demonstrate a minimum net worth of $5,000,000, provide comprehensive price management tools, and have proven experience with annual loads of at least 100,000 Mcf. The evaluation criteria include technical factors weighted at 100 points, with 40 points for financial stability, sales, experience, and relationships; 50 points for general requirements and contract terms; and 10 points for background information. Proposals must score at least 80 points technically to have pricing considered. Key deadlines included a pre-proposal meeting on September 28, 2017, questions due by October 5, 2017, and proposal submissions due by October 24, 2017 at 3:00 p.m. EST, with an anticipated contract start date of December 22, 2017.

The solicitation includes provisions for businesses owned by qualified disabled veterans, requiring documentation of service, disability, and ownership. Participating suppliers must include a 0.5% administrative fee in their pricing and are expected to provide quarterly gas cost savings summaries to participants. The contract will run from December 5, 2017, to December 4, 2024, with options for up to five additional one-year renewal periods. While no specific incumbent vendors are mentioned, the program allows for flexible participation across utility territories, with suppliers not required to service all areas. The contract will operate on a two-tier system: Tier 1 for pre-qualification and Tier 2 for actual pricing solicitations. Pricing structures can include fixed prices, fixed basis plus, fixed index plus, and variable rates, with historical data indicating fixed pricing as most common. Though no explicit budget range is provided, historical consumption for state agencies participating in Consumers Choice averaged 100,000 MMBtu annually, suggesting a significant potential market for natural gas suppliers.