Addendum No. 1 - Attachment 1. State of Florida. Department of Management Services. Invitation To Bid

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1 Addendum No. 1 - Attachment 1 State of Florida Department of Management Services Invitation To Bid Capacity Management and Acquisition of Natural Gas Responses to Bidder Questions Z 5/12/ Q: Is the pricing point at the FGT supply pool or at the Direct Connect/City Gate, i.e. are the volumes billed the volumes nominated out of the Contractor s supply pool, or volumes delivered to the Direct Connect/LDC city gate? A: The volumes billed are the volumes nominated and the volumes nominated are priced in accordance with the FGT Tariffs. 2. Q: Will the FGT Average Index for Z1, Z2, and Z3 be grossed up for FGT fuel, or will we need to build this into our pricing? A: The method for determining the price is delineated in ITB Section Q: When we quote our Final Markup Pricing does the fuel percentage on FGT have to be included for the Index as well as the fuel on the other pricing components A: Fuel allowance is included in the FGT Tariff. 4. Q: Will the monthly index calculation be a straight average or weighted to the supply zone mix of the capacity released to shipper on FGT? The Weighted Average of the supply zones on the capacity is: a. FTS-1: 36% Zone 1, 43% Zone 2, and 21% Zone 3 b. FTS-2: 19% Zone 1, 35% Zone 2, and 46% Zone 3 c. Total: 33% Zone 1, 42% Zone 2, and 25% Zone 3 A: Please see answer to Q2. 1

2 5. Q: Clarify if the only capacity is the FTS-1 and FTS-2 volumes listed in the Exhibit A s. Will all capacity listed be released directly to the Contractor or will only a portion of this capacity, based on actual facility participation in the program, be released A: The Capacity Manager will be designated as the shipper and will control all the Gas identified in the agreement. 6. Q: Is there any intrastate capacity or capacity on any other pipeline that needs to be accounted for in our response? A: No. 7. Q: Does the Contractor pay FGT demand charges directly and include them in our Final Markup Pricing or would those FGT demand charges be passed through as charges to the State separately from our Final Markup Pricing? A: FGT demand charges (if any) are a cost associated with interstate transport. Please refer to ITB Section as clarified in this Addendum Q: Page 16 item states Contractor shall pay FGT and LDC invoices and that the LDC charges will be passed through to the Customer. What about the FGT charges, are they passed through as well. A: Please see the answer in Q7. 9. Q: Page 18 item lists the monthly invoice components. Are these components all to be included in our Final Markup Price? A: No. Please refer to ITB Sections and as clarified in this Addendum Q: Specifically, does the Contractor pay Local Transportation bills directly to the Local Transportation Co and pass these charges through to the Customer or would these need to be included in our Final Markup Price? A: Please refer to ITB Section as clarified in this Addendum Q: Specifically, does the Contractor pay Interstate Transportation bills directly to Interstate Transportation Co and pass these charges through to the Customer or would these need to be included in our Final Markup Price? A: Please refer to ITB Section as clarified in this Addendum. 1. 2

3 12. Q: Specifically, would the Contractor treat Interstate Transportation and Local Transportation fuel/shrinkage factors as pass through charges to the Customer or would these need to be included in our Final Markup Price? A: Please refer to ITB Sections and , as clarified in this Addendum 1, and Q: Is this section just the detail needed on the invoice or would the charges that we are responsible for paying and passing through to the Customers need to be included in our Final Markup Price? A: Please refer to ITB Sections and 4.3.3, as clarified in this Addendum Q: Can we get a list of those accounts that are Direct Connect and those that are at a City Gate and the number/usage profile for each Direct Connect or City Gate? A: There is only one Direct Connect and that is Raiford Prison in Starke, FL. For listing of LDCs, see Attachment 2 on the second tab. 15. Q: For those accounts that are Direct Connect, does the State have an OBA in place with FGT or any other pipeline to cover actual meter variances from the scheduled quantities or would the supplier need to set these up on their own with the connecting pipeline? A: The State of Florida has not entered into any Operational Balancing Agreements (OBA) with any Transporter. 16. Q: Can you list the Direct Connect accounts and whether they are covered by an existing OBA? A: There is one Direct Connect; Raiford Prison (Florida Department of Corrections). The State does not have an OBA; that is a responsibility of the Capacity Manager. 17. Q: The solicitation screen states that Minority Business Enterprises are encouraged to participate, but nowhere does it specify a set aside or preference for MBE. They do have a preference for FL businesses. Is there any preference or provision for MBE in the ITB? A: There are no set asides for small or minority business. 18. Q: Is pricing submitted to be per Dth or per Therm? A: Per Dekatherm. 3

4 19. Q: What is the MFMP Transaction Fee? Is this a percentage or a set $ per Dth? A: It is a percentage. Please see ITB Section 3.9.5, as clarified in this Addendum 1, and Sections and The MFMP transaction fee is 1% of the total invoiced amount (and is not to be included on Customer Invoice). 20. Q: What are the load requirements for the State of Florida on an annual basis? A: Please refer to Attachment 2 to this Addendum. 21. Q: What is the number of meters? A: Approximately 454 metered locations. 22. Q: What is the ratio of peak winter needs to base summer needs? A: No information is available. 23. Q: The same information above, broken out by LDC A: No information is available. 24. Q: Can you provide historical consumption information? A: Please refer to Addendum 1; Attachment Q: Please confirm our interpretation of the bid the following tariff-based charges are not included in the Firm Markup and can be billed as separate line items on the bill as pass-through costs: Q: Pipeline and LDC fuel? Q: Pipeline transportation demand charges? A: Correct Q: Pipeline transportation volumetric charges? Q: LDC monthly charges per meter? Q: LDC start-up fees per mete? 4

5 26. Q: Can you provide sample invoices? A: No. Please refer to ITB Section 3.9.5, as clarified in this Addendum 1. It describes the content to be provided on each Invoice. 27. Q: Can an account list with indications of the following be provided? Q: LDC / Pipeline / Local Utility Connection? A: Refer to Addendum 1; Attachment 2. Q: Volume? A: Refer to Addendum 1; Attachment 2. Q: Service Type (e.g., Firm / Interruptible / etc.)? A: All service is firm. 28. Q: Please provide more information regarding the State s contracted FTS-1 and FTS-2 capacity and how it is intended to be used A: Attachments E and F of the ITB show the daily amount of MMBTUs reserved for use under the Contract(s) resulting from this solicitation. Please refer to ITB Section 3: Description of Scope. 29. Q: Will the State s contracted FTS-1 and FTS-2 capacity be released directly to the Contractor, or will the Contractor serve as the State s agent for supply nominations, scheduling, and dispatching per the intent of this capacity? A: Please refer to the answer to Q Q: How many accounts utilize interruptible service? Are these accounts directly connected to FGT? A: Please refer to ITB Section 3: Description of Scope. All accounts use Firm service. 31. Q: Page 4 mentions spending volume of $6.5 million. In order to provide a competitive price, we need to know volume associated with this opportunity. Please provide 12 month load profile for every account included on the above mentioned ITB. A: Please refer to Addendum 1; Attachment 2. 5

6 32. Q: Page 4 same paragraph states Department reserves the right to award to one or multiple Respondents. In reality, proposed price will be based on entire opportunity as the aggregate load allows for a more competitive price. Will Vendor have the option to decline service if only some of the accounts under the submitted price are being awarded? A: No. 33. Q: Intent to Award is listed as 6/2/2014 for a contact start date 07/01/2014. LDC Florida City Gas enrollment deadline for a July 1 start is 5/31/2014. We are unable to determine if this will be an issue since we do not know if there are any Florida City Gas accounts included on this ITB. How will DMS handle timing issue? A: There is existing service with Florida City Gas. The selected vendor will be required to make all necessary arrangements to continue the service without interruption, including expediting administrative procedures, when necessary. 34. Q: Page 13 specifies FTS-1 and FTS-2 capacity agreements held by DMS with FGT. Will bidder be acquiring capacity from other sources (i.e. assigned capacity under a retail access program)? A: We are unaware of any requirement for additional sources. 35. Q: As listed in the current term agreement, there are municipal systems with unregulated tariffs serving State of Florida facilities. Are these facilities included in the above mentioned ITB? If so, please provide a copy of the agreements governing the transportation of natural gas to these facilities. A: The State is not a party to such agreements. The successful bidder shall establish any agreements necessary for efficient operation. 36. Q: Please provide copies of last 3 months of invoices to serve as a sample of the required information needed on every monthly invoice as per ITB Section A: Please see the answer in Q Q: Does DMS audit the awarded Contractor to verify information stated on such affidavit? A: DMS reserves the right to audit or monitor the contractor s performance and documentation. Please refer to ITB Section Q: What is the expected frequency of these audits by DMS (if any)? A: As needed to protect the interest of the State of Florida. Refer to ITB Section

7 39. Q: In the past 5 years, how many times did DMS perform these audits to incumbent supplier? A: None. 40. Q: Please provide copies of last 3 Contract Quarterly Reports to serve as a sample of the required information needed on each contract quarterly report due to DMS Contract Manager A: No. Please refer to ITB Section and ITB Attachment B as a guide for creating Contract Quarterly reports. 41. Q: Please clarify is Monthly Summary Report as detailed on page 28 is required by the 10 th of each month in addition to monthly invoice. A: Yes. Please refer to ITB Section Q: Please provide copies of the last 3 Monthly Summary Reports to serve as a sample of the required information needed on monthly summary report. A: No. Please refer to the answer in Q41. 7