Plug & Abandon Swanson-Peterson #1

The Colorado Department of Natural Resources and the Colorado Oil and Gas Conservation Commission (COGCC) are soliciting bids for the plugging and abandonment of the Swanson-Peterson #1 domestic gas well located in Ouray County, Colorado. This documented quotation procurement requires the contractor to perform complete well abandonment services including bradenhead access, tubing removal and replacement, installation of two cement plugs (totaling 1,080 sacks of Class G cement or equivalent), wellbore circulation, casing cutting and welding in accordance with COGCC Rule 319.a(5), and equipment demobilization on a vertical shut-in well with a total measured depth of 500 feet. The contractor must provide all labor, materials, equipment, temporary facilities, and services necessary for project completion, including daily job logs documenting progress and personnel, with work scheduled between October 19, 2015 and December 1, 2015, and all equipment removed from the site by December 1, 2015 at 5:00 PM. Bidding is conducted on a lump sum and unit price basis with separate line items for mobilization/demobilization, plug and abandon labor and equipment (hourly rate with standby time paid at 75 percent of regular rate), cement services (per 94-pound sack), solid waste management (lump sum), and liquid waste management (up to two 130-barrel loads). A mandatory pre-bid meeting and site showing was held on September 29, 2015 at 1:00 PM near Ridgway, Colorado, with attendance required for bid consideration; bids were due on October 13, 2015 at 4:00 PM to the Department of Natural Resources Purchasing Office. Award will be made to the low responsive and responsible bidder demonstrating capability to meet performance requirements and providing a completed List of Equipment Offered form with evidence of ownership or firm arrangements to procure adequate equipment.

The procurement includes a Colorado resident bidder preference equal to preferences given in a nonresident bidder's home state, and Service Disabled Veteran-Owned Small Businesses (SDVOSBs) officially registered with the U.S. Department of Veterans Affairs receive a 5 percent price preference on bid price. The contractor must maintain comprehensive insurance coverage including Workers' Compensation as mandated by state statute, Commercial General Liability Insurance with minimum limits of $1,000,000 each occurrence and general aggregate, and Automobile Liability Insurance of $1,000,000 combined single limit, with the State of Colorado named as additional insured. Performance and payment bonds equal to 100 percent of the contract price are required before contract execution. Funding for this project is provided from the COGCC's Oil and Gas Conservation and Environmental Response Fund and/or bond claims. Based on the engineer's estimate bid schedule, the anticipated project value is approximately $63,500, with line items ranging from $3,000 for liquid waste management to $27,000 for cement services; however, actual payment will be made only for verified quantities completed during construction as determined by the project manager. For contracts exceeding $50,000, five percent retainage will be held from all payments until final settlement, and state law requires payment within 45 days of receipt of correct invoices with interest accruing at one percent monthly on delinquent amounts after day 46.