GREENBUSH ENERGY GROUP
REQUEST FOR PROPOSAL SUPPLY OF NATURAL GAS AND TRANSPORTATION SERVICES
Issue Date: April 20, 2016
Return Due Date: April 29, 2016
The Greenbush Energy Group is desirous of selecting a vendor or vendors to provide a natural gas supply and transportation service to its members. The Group is principally made up of school districts from within the state of Kansas. The period for which supply of natural gas and transportation services are to be provided is from July 1, 2016, through June 30, 2017. By mutual written agreement, the contract may be extended for up to three additional 12-month periods ending June 30, 2018 June 30, 2019, and June 30, 2020. Such annual renewals will be evidenced in writing on or before April 1 of each year by mutual agreement of both parties.
Please carefully review this document as it provides information necessary to aid participating firms in formulating a thorough response. Because purchases and/or agreements of this nature require the expenditure of public funds, it shall be noted that the successful firm’s proposal will become public record after its acceptance by members of the Greenbush Energy Group.
Responses to this RFP must be submitted and received by Cinda Homes, Southeast Kansas Educational Service Center no later than 1:00 PM CT, Friday, April 29, 2016. Late or incomplete responses will not be accepted and will not receive consideration for final award. All responses are to be electronically sent (e-mailed) to Cinda Homes, using the following e-mail address: [email protected]. Delivery Receipt and Read Receipt are suggested to establish time of delivery.
No gratuities may be offered to any Southeast Kansas Education Service Center – Greenbush employee(s) or its consultant(s). Any employee or official representative of Southeast Kansas Education Service Center - Greenbush, who shall take, receive or offer to take or receive, either directly or indirectly, any rebate, percentage of contract, money or other things of value, as an inducement or intended inducement, in the procurement of business, or the giving of business for, or to, or from any person, partnership, firm or corporation, offering, bidding/proposing for, or in open market seeking to make sales under this proposal shall be deemed guilty of a felony and upon conviction such person or persons shall be subject to punishment or a fine in accordance with State and/or Federal laws.
1 I. TABLE OF CONTENTS
I. Instructions II. Timeline III. Selection Process IV. Mandatory Requirements V. Special Requirements VI. Appendix a. Estimated volumetric usage on KGS* b. Estimated volumetric usage on Atmos* c. Estimated volumetric usage on Black Hills* d. Estimated SSNGP Direct Connection* e. Actual volumes July 2014-June 2015 f. Pricing sheets * All volumes are estimates of usage based on a 4300 heating degree year. Actuals are available following award of contract.
2 II. INSTRUCTIONS
The Greenbush Energy Group and its members reserve the right to accept any proposal(s), which they deem most favorable to their interest and to reject any or all proposals, or any portion of any proposal submitted which, in their opinion, is not in the best interest of the Greenbush Energy Group and/or its members.
All proposals will remain firm until accepted or rejected by The Greenbush Energy Group and its member(s). The accepted proposal(s) will remain firm through January 1, 2017. This is to accommodate varying ending dates of contracts currently in place for Greenbush Energy Group members and provide a stable plan for others wishing to join the group.
Proposals must be received no later than 1:00 PM CT, on Friday, April 29, 2016.
Be it understood any contracts entered into on the basis of submitted proposals are revocable if contrary to law. It is the responsibility of the proposer to insure all contracts are in compliance with such jurisdictions as apply to all members of the Greenbush Energy Group.
To ensure fairness and equity in competition for all potential vendors, any questions regarding the proposal should be referred to David Banks, Flint Hills Energy Consultants who is acting as agent for the Advisory Committee of the Greenbush Energy Group: David Banks, CEM, CEP Flint Hills Energy Consultants (316) 990-8385 [email protected]
Formal questions shall be submitted by e-mail prior to 12:00 Noon CT, Wednesday, April 27, 2016. Written responses to questions shall be e-mailed as an addendum to all known proposal participants. It is the vendor’s responsibility to check for any addendums
3 III. TIMELINE
It is anticipated the following time line will be observed in the selection of the successful supplier(s):
Request for Proposal issued: Wednesday, April 20, 2016
Proposals due by 1:00 PM CT: Friday, April 29, 2016
Negotiations with potential Suppliers if necessary: Wednesday & Thursday May 4 & 5, 2016
Selection of a natural gas supply/transportation Friday, May 6, 2016 proposal and recommendation of acceptance to member districts:
Members of the Greenbush Energy Group retain the right to accept or reject any or all proposals obtained by the Greenbush Energy Group on their behalf. Acceptance of a proposal is subject to a completed contractual agreement between the member district and the natural gas supplier.
4 IV. SELECTION PROCESS
The selection process will be based on the responses to this Request for Proposal, and any subsequent proposal review and/or negotiations. A committee comprised of employees of the Southeast Kansas School Service Center - Greenbush, and members of the Greenbush Energy Group and their consultant(s) will judge each firm’s response. The selection criteria will include, but not be limited to, the following criteria:
1. The price for a reliable supply of natural gas delivered to the point(s) specified.
2. The price for transportation services required by members of the Greenbush Energy Group.
3. Proposing the natural gas transportation services, which best addresses the needs of the members of the Greenbush Energy Group, and meets the mandatory requirements, conditions, and specifications set forth by pipeline(s), Local Distributing Companies (LDC), and/or regulatory agencies.
4. Proposing the natural gas transportation services which provide the most appropriate risk management options to members of the Greenbush Energy Group.
5. In addition to the criteria set forth above and in all accompanying documents, the selection shall include the proven ability to provide high quality performance within the conditions, requirements, specifications, and instructions for transporting natural gas. Such ability will be determined by:
Providing references verifying exemplary levels of service for similar projects.
Demonstrated ability to deliver purchased natural gas to the appropriate designated points necessary for service to members of the Greenbush Energy Group.
Evidence of willingness to work as a partner with the Greenbush Energy Group.
Evidence of willingness to work cooperatively with applicable members of the Greenbush Energy Group during periods of daily balancing or operational flow orders to prevent the assessment of penalties.
Evidence of creative billing/payment terms, which will reduce expenditures for members of the Greenbush Energy Group.
5 Evidence of an effective means of managing gas nominations and/or balancing to reduce the economic impact of cash in/cash out fees or penalty fees associated with balancing/nominations.
Delivery service quality, cost-effectiveness and evidence of willingness to work cooperatively as a partner with members of the Greenbush Energy Group will be the major determiners in the selection process.
The Greenbush Energy Group reserves the right to select the service/provider which best meets its goals, objectives, needs, budget constraints, quality demands, and service expectations.
Excluded Parties Info – Bidding parties that are currently identified on the excluded list on the System for Award Management of the General Services Administration or have been identified as excluded on the System for Award Management of the General Services Administration in the last five (5) years shall not be eligible to receive a contract award. Furthermore, by signature accepting the Terms and Conditions, it is certified on behalf of the company and their key employees that neither the bidding party nor any of its employees have been proposed for debarment, debarred, or suspended by any State or Federal Agency within the last five years.
6 V. MANDATORY REQUIREMENTS
1. All costs must be shown as a firm figure or a formula with industry accepted variables. All variables must be clearly defined and/or related to a readily available index or listing. Example: Basis must be a fixed amount or percentage of NYMEX or tied to a basis listing. If tied to a basis listing, the listing must be specified and if tied to an index, the index must be specified. Fuel and lost and unaccounted for gas are additional examples of items that must be shown as a firm figure or formula.
2. Pricing must include the cost of commodity, pipeline capacity charges, and transportation charges to the city gate or LDC interconnect point.
3. All costs are to be stated as individual units per the pricing example. These costs should include but not be limited to all of the following which apply: Administrative fees/margins Terms for billing Commodity cost Basis fees Fuel adjustment Lost and unaccounted for gas Line loss Pipeline capacity charges Transportation charges Delivery point requirements Pass through pipeline charges Balancing fees
4. Proposals must contain an option for members of the Greenbush Energy Group to move from market driven pricing (NYMEX or index) to a fixed price at their discretion. Proposals must also contain provisions for members of the Greenbush Energy Group to liquidate any established position. All costs associated with conversion and/or liquidation must be clearly defined; any formula plainly stated and examples provided using close of business prices for Friday, April 22, 2016. Any fixed pricing will be refreshed at time of award.
5. Any fixed price agreement may require such notice as defined by the supplier and will remain in force for the term of said fixed price agreement unless, and until such time as the member district chooses to liquidate any fixed position using the provisions set forth by the supplier.
6. Proposals must contain a sample contract for evaluation by and approval of the evaluation committee. The contract must address but not be limited to the following: Nominations/balancing and associated penalties Stranded investment
7 Force majeure Renewal Pricing Aggregation pools (if applicable) Default and termination Selling, transferring or assignment of contracts Adjustments to incorrect invoices
7. Proposals must contain any changes in price for members of differing volumetric use, any considerations or changes in price for members with duel fuel capabilities, and/or changes in price for members at differing distribution points, utilities or pipelines.
8. Suggested sample price sheets have been provided in appendix f. Price sheets are to be prepared for each pricing option being offered and for each LDC, pipeline and/or delivery zone.
8 VI. SPECIAL REQUIREMENTS
1. List two companies for which your company has provided a supply of natural gas and transportation services similar to those required in this RFP. Include company name, company address, phone number, and the name of a contact person.
2. List at least one school district for which your company has provided a supply of natural gas and transportation services. Include the name of the district, address of the district, name of a contact person, and phone number
3. A performance bond or revocable letter of credit in an amount up to 20% of the total value of the natural gas being supplied may be required of the successful natural gas provider. Please indicate what additional fee if any would be charged for this requirement.
4. It is desirous that a copy of each billing invoice sent to member districts also be sent to Greenbush. Please indicate any additional cost for such service.
5. Please list the account manager(s) who will handle the Greenbush Energy Group’s accounts. Account Manager’s name: ______
The account manager’s years of experience handling accounts of a similar size/scope: ______
Please provide the name of a contact person and phone number from one account handled by this manager. Name: ______Phone Number: ______
6. Please list the names and years of experience for additional personnel who will regularly be handling the accounts of the Greenbush Energy Group. Please include those employees who will be responsible for scheduling and/or routing of the gas supply, employees responsible for nominations and changes to nominations, and employees responsible for billing and account errors.
9 VII. APPENDIX
NATURAL GAS FIXED PRICE SCENARIOS
Fixed Price Option. Complete the formula for calculating a city gate price as a function of the NYMEX for each of the delivery options listed:
NYMEX + + + = City Gate + Price Basis Transportation Fuel Other**
** Define and quantify any additional costs:
Basis: Basis shall be a fixed amount or percentage of NYMEX or tied to a basis listing. If tied to a basis listing, specify which:
10 INDEXED PRICE SCENARIOS
Complete one form per LDC, pipeline and distribution zone.
(LDC)
Index + transportation services adder = City interconnect point delivered price
LDC/DISTRIBUTION INDEX TRANSPORTATION OTHER ZONE SRVICES ADDER CHARGES KGS (T SYSTEM) SSNGP FIRST OF THE MONTH KGS (K SYSTEM) SSNGP FIRST PRODUCTION OF THE MONTH KGS (K SYSTEM) SSNGP FIRST MARKET OF THE MONTH ATMOS SSNGP FIRST OF THE MONTH BLACK HILLS SSNGP FIRST OF THE MONTH BLACK HILLS NNG
SSNGP DIRECT SSNGP CONNECT USD 410 SSNGP *USD 410 Has additional charges for pipeline delivery please list them separately
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