RFP-48-23 kastow - orphan well package - ohio #002

The Commonwealth of Kentucky, through the Division of Oil and Gas within the Energy and Environment Cabinet, is soliciting competitive proposals via Request for Proposal RFP-48-23 for the Kentucky Abandoned Storage Tank and Orphan Well Reclamation Program (KASTOW) to plug, abandon, and reclaim ten orphan well sites located in Ohio County, Kentucky, designated as Orphan Well Package Ohio #002. The procurement seeks general construction services for the complete plugging and abandonment of orphan wells, including removal of aboveground production infrastructure, flowline disconnection and abandonment, wellbore cleaning and obstruction clearing, cement plugging at specified depths, casing removal, and full site reclamation with vegetative cover establishment. All work must be completed within 180 calendar days of contract award, with contractors required to submit comprehensive technical proposals detailing their experience qualifications, proposed equipment lists, and detailed work plans through the Commonwealth's MOVEit system. Contract award will be evaluated based on contractor experience with plugging operations, corporate qualifications with references, proposal completeness, past experience with state plugging programs, equipment adequacy, and total project cost, with a maximum of 2 points available for experience evaluation criteria. The solicitation was released on July 28, 2022, with a written questions deadline of August 12, 2022, Commonwealth responses provided by August 17, 2022, and a proposal submission deadline of August 26, 2022, at 3:00 PM Eastern Time, with contract award anticipated by September 15, 2022. Proposals must be submitted in two separate parts—a Technical Proposal and a Cost Proposal Bidder's Response Forms—along with all required documentation including signed face of solicitation, latest addendum acknowledgment, transmittal letter, Kentucky Tax Registration Application, Required Annual Affidavit for Bidders, and debarment certification.

The contract structure is a firm-fixed-price arrangement with individual well costs to allow for potential site deletion and price adjustment, with specific pricing and total contract value not detailed in the solicitation documents reviewed. This procurement is federally funded through the Bipartisan Infrastructure Law administered by the U.S. Department of Interior, requiring compliance with Davis-Bacon prevailing wage requirements, Build America Buy America standards, and DOI Standard Award Terms and Conditions; contractors must submit weekly Davis-Bacon payroll certifications on Form WH-347 and maintain payroll records accordingly. Contractors must secure performance and payment bonds equal to 100 percent of the contract sum and carry commercial general liability insurance with a minimum of $1,000,000 combined single limit, including full subcontractor coverage. All contractors must comply with applicable Kentucky statutes, particularly KRS Chapter 353 regarding well abandonment standards, and are responsible for obtaining any required permits at their own cost with no Commonwealth reimbursement. Additional compensation may be provided for downhole obstruction clearing operations exceeding two shifts per well and for TENORM disposal costs with documentation, plus 10 percent administrative costs, with the Commonwealth retaining 5 percent of contract payments until site reclamation and vegetation are approved by Division of Oil and Gas personnel one year after completion. Liquidated damages are assessed at $200 per calendar day for delays beyond the final completion date.