RFP-118-23 kastow - orphan well package - mccreary #001

The Commonwealth of Kentucky, through the Finance and Administration Cabinet and the Department of Energy's Division of Oil and Gas, issued RFP-118-23 for the Kentucky Abandoned Storage Tank and Orphan Well Reclamation Program (KASTOW) to procure construction services for the plugging and reclamation of seven orphan oil and gas wells located in McCreary County, Kentucky. The scope of work encompasses well plugging in accordance with KRS Chapter 353.562-564 and 805 KAR 1:060, removal of aboveground equipment and flowlines, TENORM (Technologically Enhanced Naturally Occurring Radioactive Material) scanning and disposal when necessary, site reclamation including erosion control and vegetative establishment, and submission of required affidavits and documentation. The seven identified orphan wells range in estimated depth from 577 to 1,500 feet and are designated by permit numbers 12588, 6592, 105458, 105422, N17183, N16862, and N17183. Contractors must complete all work within 18 months (547 calendar days) from the contract award date and achieve final completion within one additional year, creating a total project duration of up to 27 months. The RFP required written questions by October 13, 2022, with Commonwealth responses issued by October 19, 2022; proposals were due October 31, 2022, at 3:00 PM Eastern Time, with evaluation scheduled for November 9, 2022, and contract award anticipated by November 18, 2022. Technical evaluation is based on a 70-point scale assessing prime contractor experience (2 points), project history (6 points), equipment adequacy (8 points), work plan completeness (4 points), past performance with the Division of Oil and Gas (5 points), and proposal completeness (5 points), with an additional 40 points allocated for total project cost, where the lowest bid receives the full 40 points and higher bids are scored proportionally.

The procurement is subject to reciprocal preference for Kentucky resident bidders and preferences for qualified bidders or the Department of Corrections Division of Prison Industries under Kentucky Administrative Regulation 200 KAR 5:410. Contractors must comply with all applicable federal and state regulations, including Davis-Bacon prevailing wage requirements and Build America, Buy America (BABA) provisions, as the project is funded through the Bipartisan Infrastructure Law administered by the U.S. Department of Interior. Bidders must submit a bid bond or certified check equal to five percent of the lump sum base bid, and the successful bidder is required to provide 100% performance and payment bonds within five calendar days of selection. Retainage will be withheld at 10 percent until 50 percent project completion, then reduced to 5 percent thereafter, and liquidated damages are assessed at $200 per calendar day for delays beyond the substantial completion and final completion dates. The Commonwealth of Kentucky is not tax exempt, and the winning bidder shall be liable for Kentucky sales and use tax on all services and materials. While the specific total contract value is not disclosed in the RFP documents, the project scope of seven orphan wells with depths ranging from 577 to 1,500 feet and associated site reclamation activities indicates a substantial construction contract, with the Division of Oil and Gas retaining the right to delete individual sites and adjust the contract price accordingly.