The Colorado Department of Natural Resources and Colorado Oil and Gas Conservation Commission issued a Documented Quotation (PHAA-2015-1098) for plugging and abandonment services on the South Nucla Unit #1-32 well located in Montrose County, Colorado. This procurement seeks qualified contractors to plug and abandon a directional wellbore measuring 9,199 feet in depth, originally drilled in 2008, including installation of four cement plugs at specified depths, perforation of squeeze holes, placement of cast iron bridge plugs and cement retainers, and management of circulated fluids and solid waste. The scope of work encompasses approximately 109 sacks of cement, one perforation set, one cement retainer, two bridge plugs, and disposal of up to 130 barrels of liquid waste and associated solid waste, with detailed technical specifications provided in the wellbore bond claim drawings. Bidders were required to attend a mandatory pre-bid meeting and site showing on April 1, 2015, with bids due on April 9, 2015 at 4:00 PM. The project performance period runs from April 20, 2015 through June 5, 2015, with all work and equipment removal required by June 5, 2015 at 5:00 PM. Award was to be made to the lowest responsive and responsible bidder demonstrating capability to meet performance time requirements, mathematical accuracy, and compliance with all stated requirements and specifications, with consideration of residence bidder preferences. Contractors must maintain Workers' Compensation Insurance, Commercial General Liability Insurance with minimum limits of $1,000,000 per occurrence, and Automobile Liability Insurance with $1,000,000 combined single limits, and must comply with OSHA Part 1926 Construction Standards and all applicable federal and state laws.
Service Disabled Veteran Owned Small Businesses incorporated or maintaining a place of business in Colorado and officially registered with the U.S. Department of Veterans Affairs were eligible for a 5% bid preference. For projects exceeding $500,000 without federal funds, eighty percent of laborers must be Colorado residents. The project is funded by the Plugging and Well Reclamation portion of COGCC's Oil and Gas Conservation and Environmental Response Fund, with a $30,000 plugging bond claimed by COGCC (Commission Order No. 1V-470) covering initial project costs; any costs exceeding this amount are funded through the state conservation and environmental response fund. No incumbent contractors or existing infrastructure integration requirements were identified in the procurement documents. Contractors were required to submit a Bid Schedule itemizing eight cost categories: Mobilization-Demobilization, Plug and Abandon work, Perforation Services, Cement Retainers, Cast Iron Bridge Plugs, Cement Services, Solid Waste Management, and Liquid Waste Management, with payment based on verified quantities as determined by the Project Manager. A Purchase Order contract would be issued to the awarded bidder incorporating all specified General Conditions, Terms and Conditions, and project documents, with payment to be made within 45 days of receipt of products or services and acceptable invoicing.