SPECIAL NOTICE
F -- Alaska Methane Hydrate Project
- Notice Date
- 12/20/2023 4:06:34 AM
- Notice Type
- Justification
- NAICS
- 213112
— Support Activities for Oil and Gas Operations
- Contracting Office
- NATIONAL ENERGY TECHNOLOGY LABORATORY MORGANTOWN WV 26507 USA
- ZIP Code
- 26507
- Solicitation Number
- 89243321CFE000064
- Archive Date
- 01/19/2024
- Point of Contact
- George LeMasters, Phone: 3042855271
- E-Mail Address
-
george.lemasters@netl.doe.gov
(george.lemasters@netl.doe.gov)
- Award Number
- 89243321CFE000064
- Award Date
- 08/04/2021
- Description
- JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (JOFOC) U.S. Department of Energy National Energy Technology Laboratory Alaska Methane Hydrate Project ����� ������������������������������������������������������� 89243321CFE000064 I recommend that negotiations be conducted only with ASRC Energy Services Alaska, Inc. (AES Alaska) for the supplies or services described herein: 1. Identification of the agency and the contracting activity, and specific identification of the document as a �Justification for Other than Full and Open Competition.� The National Energy Technology Laboratory (NETL) seeks award of a contract on a sole source basis to ASRC Energy Services Alaska, Inc. (AES Alaska), for� services related to the Alaska Methane Hydrate Project, an international research and development collaboration between Japan Oil, Gas and Metals National Corporation (JOGMEC) and the U.S. Department of Energy � National Energy Technology Laboratory (NETL).� The project will be implemented via two separate contracts.� JOGMEC and NETL plan to split the work and services between the two contracts as follows: (1) a competitive action awarded by JOGMEC that resulted in an award to AES Alaska (contract between JOGMEC and AES; and (2) the subject action, where NETL now seeks to issue a sole source award to AES Alaska to cover the NETL portion of work (contract between NETL and AES.� The JOGMEC and AES contract was the result of a solicitation issued by JOGMEC following Japanese laws and regulations as well as Federal Acquisition Regulations (FAR).� NETL had input into the solicitation, but not the evaluation and selection, and the NETL portion of work was proposed on as part of the solicitation so a baseline of pricing could be established for consideration on the sole source award to be negotiated by NETL. AES Alaska provides the necessary skilled personnel, facilities, equipment, materials, supplies, and services to support NETL in its overall objectives of the Alaska Methane Hydrate Project.� The project is to produce methane gas by disassociation during a long-term production test (up to a year or potentially longer), thereby acquiring reservoir and production data and gaining further understanding of the technical and operational issues that affect, or potentially interrupt, stable production. implementation of assigned basic, applied, and technology development based energy research. Project is expected to run for up to five years. 2. The nature and/or description of the action being approved, i.e. sole source, limited competition, establishment of a new source, etc. NETL requests approval of this Justification For Other than Full and Open Competition (JOFOC) to authorize a sole source contract for services needed in support of the NETL elements of the Alaska Methane Hydrate Project. The required expertise encompasses high level scientific and engineering disciplines as well as project management and subcontracting and regulatory compliance appropriate for conducting scientific field testing of methane hydrate production within the Prudhoe Bay Unit of the Alaska North Slope. A competitive action was issued by JOGMEC with notice that the NETL portion of the scope would be issued in a follow on sole source action to the selected contractor from the JOGMEC competition.� This action was done with consideration of the FAR and public notices of the intent to award a sole source negotatiated action to the selected vendor from the JOGMEC solicitation.� The JOGMEC solicitation was created with FAR requirements considered and included in the document.� NETL issued a Request for Information (RFI) prior to the JOGMEC solicitation to determine interested parties and to notify all interested parties of the intent to follow the JOGMEC award with a sole source action to the same operator once FAR requirements have been met.� In addition, preliminary costs associated with the NETL portion were received and evaluated during the JOGMEC competition.� As determined by the State of Alaska, only one operator is authorized to be permitted to drill and operate the wells at this location for this purpose.� In addition, the working owners group (who is leased the property by the state of Alaska) will also only allow for one operator to perform these functions. 3. A description of the supplies or services required to meet the agency�s needs. The overall objective of the project is to produce methane gas by disassociation during a long-term production test (1 year or potentially longer), thereby acquiring reservoir and production data and gaining further understanding of the technical and operational issues that affect or potentially interrupt stable production.� Work will be performed in the below work categories (these work categories include the entire project effort � both the JOGMEC and NETL portions of work): Review and provide comments on Implementation Plan. Develop Overall Plan, Drilling Plan, Surface Production Test Facilities Plan, Procurement Plan, Operation Plan for Production Facilities, Data Acquisition Plan, and Post Flow-Test Activities Plan. Initiate permits, bonding, and related requirements. Issue purchase orders for critical, longest-lead equipment for the Surface Production Test Facility. Set aside funds for drilling of Production Test Well (PTW-1). Drill and acquire data from Geo Data Well (GDW), complete GDW, drill and complete� PTW-1 and PTW-2. Finalize contract for Surface Production Test Facility, fabricate and ship modules, construct the facility, and commission the facility to be ready for operation. Obtain permits as needed, verify permit compliance, compile permit records. Conduct data acquisition before the production test. Establish contracts for water and solids disposal. Startup and operate production facility and wells. Continue operating production facility and wells through completion of test. Perform well intervention(s) as coordinated with JOGMEC. Dispose of produced water and solids. Conduct data acquisition during and after production testing. Deconstruct surface production facility. Plug and abandon all four wells (STW (already drilled in prior contracts), GDW, PTW-1, and PTW-2), and complete site restoration and clearance. 4. The statutory authority permitting other than full and open competition. The authority permitting other than full and open competition is 41 U.S.C. 3304(a)(1), the property or services needed by the executive agency are available from only one responsible source and no other type of property or services will satisfy the needs of the executive agency.��� 5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority. Project is an international research and development collaboration between JOGMEC and NETL.� The project will be implemented based on two separate contracts, one with JOGMEC and the other with NETL. JOGMEC issued a Request for Proposal (RFP) competing the entire work effort (including the NETL portion of work) with the understanding that the NETL portion would be issued on a separate contract directly with the selected Third Party Operator (TPO).� NETL now seeks to issue a sole source award to the winning offeror (AES Alaska).� Of specific note, the JOGMEC RFP included receipt of preliminary cost associated with the NETL portion of work to ensure that NETL would have a starting basis for negotiation of the sole source award to ensure a competitive pricing structure.� Notices and postings associated with the JOGMEC competitive action included public notice of the intent for NETL to follow that action with a non-competitive sole source award to the selected entity. As determined by the State of Alaska, only one operator is authorized to be permitted to drill and operate the wells at this location for this purpose.� In addition, the working owners group (who is leased the property by the state of Alaska) will also only allow for one operator to perform these functions. 6. A description of efforts to ensure that offers were solicited from as many potential sources as is practicable.� Include whether or not a FedBizOpps announcement was made and what response, if any, was received, and include the exception under FAR 5.202 when not synopsizing.� Describe whether any additional or similar requirements are anticipated in the future.� (This may not be included as an addendum, but must be in the body of the JOFOC.) The proposed contract action is based on the proposal received from the JOGMEC solicitation and the FAR terms and conditions that were provided in a boiler plate document for the follow on NETL contract.� The NETL contract was previously synopsized in sufficient detail to comply with the requirements of 5.207 with respect to the current proposed contract action. 7. Cite the anticipated dollar value of the proposed acquisition including options if applicable and a determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable. $19,600,000 estimated in JFY 2020, $66,501,419 JFY 2021, and $24,847,477 JFY 2021 for a total estimated amount of $110,948,896 dollar value based on the current JOGMEC Budget Breakdown Rev 1 dated 14 OCT 2020 and JOGMEC Drilling Operations Methane Hydrate Facility AES Alaska proposal for the NETL work scope.� The listed costs are full project, including both JOGMEC and NETL contracts.� NETL roughly estimated its specific costs by Work Category 2: Drilling and Preparation for Production Test Facilities $15,752,287.00 and Work Category 3: Operation of Production Test Facilities $4,316,419.00, and Work Category 4: Post-Production Test, P&A $1,481,039.00 totally $21,549,746.00.� The Contracting Officer will determine the award price to be fair and reasonable upon execution. 8. A description of the market research conducted and the results or a statement of the reason market research was not conducted.� Do not simply refer to the sources sought synopsis. JOGMEC issued a competitive RFP and selected AES Alaska as the winning offeror.� Market analysis was done by NETL in the form of a RFI resulting in two interested parties both of which proposed on the JOGMEC competitive action. 9. Any other facts supporting the use of other than full and open competition, such as: a. Explanation of why technical data packages, specifications, engineering descriptions, statements of work or purchase descriptions suitable for full and open competition have not been developed or are not available. b. When FAR Subpart 6.302-2 is cited for follow on acquisition as described in FAR 6.302-1(a)(2)(ii), an estimate of cost to the Government that would be duplicated and how the estimate was derived. �c. When FAR 6.302-2 is cited, data, estimated cost, or other rationale as to the extent and nature of the harm to the Government. The intent of NETL placing a sole source award for its scope to the same entity selected by JOGMEC is to ensure that both the JOGMEC Scope and the NETL Scope can be implemented in an efficient cohesive manner.� The State of Alaska and the Worker Owners Group who owns the lease for the land will only allow for one operator to perform these services (the services cannot be divided between two drilling companies). 10. A listing of the sources, if any, that expressed a written interest in the acquisition. Petrotechnical Resources of Alaska, LLC. and AES Alaska. 11. A statement of actions the agency may take to remove or overcome any barriers to competition if subsequent acquisitions are anticipated. Subsequent acquisitions for these services will be conducted on a competitive basis based on agreements between parties through the existing CRADA agreements.� Therefore, no further action is required to remove the barriers to competition.
- Web Link
-
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(https://sam.gov/opp/de4ca877863e4193a24f7a4266968d4f/view)
- Place of Performance
- Address: USA
- Country: USA
- Country: USA
- Record
- SN06918061-F 20231222/231220230043 (samdaily.us)
- Source
-
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