Wallace Bond Claim Project-3Wells, Re-entry, Plug, Abandon

The Colorado Department of Natural Resources, Oil and Gas Conservation Commission (COGCC) issued this procurement for plugging and abandonment services on three oil and gas wells located in Baca County, Southeast Colorado, designated as the Wallace Bond Claim Project (PHAA-2015-1097). The project encompasses the re-entry, plugging, and abandonment of three wells: Watkins #1A, Newman #1-7, and Hume #17-1, all operated by Wallace Oil and Gas, Inc. Deliverables include mobilization and demobilization services, plugging and abandonment labor and equipment on an hourly basis, installation of three cement plugs per well (including cast iron bridge plugs, cement retainers, and surface plugs), 171 sacks of cement across all three wells, perforation services, solid and liquid waste management, and complete removal of all production equipment including pump jacks, separators, meter runs, tanks, rods, and tubing from the well sites. Contractors must visit job sites for assessment, provide detailed equipment specifications and capabilities, maintain comprehensive insurance coverage including workers' compensation and commercial general liability with minimum limits of $1,000,000 per occurrence, and complete daily job logs documenting progress, personnel, materials, equipment, and time allocations. A pre-bid meeting and site showing was held on Friday, April 3, 2015 at 12:30 PM at the Newman #1-7 well site, with bids due Friday, April 10, 2015 at 4:00 PM, subsequently extended to Monday, April 13, 2015 at 4:00 PM per Amendment #2. Project execution was required between April 15, 2015 and June 1, 2015, with completion and equipment removal by June 7, 2015 at 5:00 PM. Award was to be made to the low responsive and responsible bidder meeting all specified requirements, with the COGCC Project Manager Diana Burn designated to supervise and inspect all work for compliance with design specifications.

The procurement offered a resident bidder preference and a 5 percent preference for Service Disabled Veteran Owned Small Businesses (SDVOSBs) officially registered with the U.S. Department of Veterans Affairs. For projects exceeding $500,000 without federal funding, eighty percent of laborers must be Colorado residents. Pricing is structured as a combination of lump sum and unit price bids, with mobilization and demobilization costs as lump sum per project location, plug and abandon work billed hourly with standby time reimbursed at 75 percent of the hourly rate, cement paid per 94-pound sack installed, perforation services and bridge plugs paid per unit installed, solid waste management as lump sum payment, and liquid waste management paid per load up to 130 barrels per load. Amendment #1 established that mobilization and demobilization for both the Wallace and Chapman projects should be executed concurrently as a single, combined approach to enhance cost-effectiveness and schedule efficiency. A retainage of five percent applies to purchase order contracts exceeding $50,000, with final payment authorized only after the Principal Representative accepts the work and publication of a notice of final settlement occurs at least ten days prior to settlement. The specific award value or budget range is not disclosed in the procurement documents provided; actual costs will be determined based on verified quantities and the contractor's unit price bids on the Bid Schedule, with final payment contingent upon work completion and performance verification by the project manager.