Department of the Interior, Minerals Management Service, Procurement Operations Branch, MS2500, 381 Elden Street, Herndon, Virginia 20170-4817

B -- DEEPWATER PROGRAM: LITERATURE REVIEW, ENVIRONMENTAL RISKS OF CHEMICAL PRODUCTS USED IN DEEPWATER OIL & GAS OPERATIONS SOL 3900 DUE 031398 POC Wallace Adcox (703) 787-1362 WEB: MMS homepage with general information about our agency., http:/www.mms.gov. E-MAIL: Contracting Officer's e-mail address, wallace.adcox@mms.gov. The Minerals Management Service (MMS) of the Department of Interior intends to competitively award a contract for a literature review to assess the environmental risks of chemical products used in deepwater oil and gas operations. We estimate the cost of this contract to be between $270,000 and $300,000 for a twenty (20) month period of performance. PLEASE READ THIS ENTIRE NOTICE CAREFULLY AS IT CONSTITUTES THE ONLY NOTICE THAT WILL BE ISSUED. BACKGROUND, PURPOSE, and OBJECTIVE: Recent patterns of oil and gas leasing activity have reflected a renewed acceleration of industry activity, especially in the deeper waters of the Gulf of Mexico. This has presented the MMS with many new challenges. The increase in activity has been fueled by both economic incentives and many new technological developments. The 1997 Central Gulf of Mexico and the Western Gulf of Mexico Lease Sales broke all existing records following two years of very heavy bidding. Since 1992, blocks leased in these planning areas have increased annually from a total of 204 to 1,778. Even more remarkable has been the extraordinary acceleration of activity in ever-deeper waters. The MMS has attributed this deepwater initiative largely to the passage of the Deep Water Royalty Relief Act of 1996. This legislation was enacted to offer monetary incentives to lease and develop large deep-water petroleum reserves. Under the Act, royalties were reduced depending on depth of operation. Among the many changing aspects in conducting operations offshore has been the transportation, storage, and usage of a myriad of chemicals and chemical mixtures in order to develop oil and gas at the temperature and pressures encountered in deepwater. The MMS anticipates more extensive and frequent use of chemical products and compounds to enhance throughput of the oil and gas. Examples include wax inhibitors, hydrate inhibitors, corrosion inhibitors, and asphaltene inhibitors. Although technological advances have resulted in the offshore oil and gas industry routinely usinga variety of chemicals for some time, it has only recently come to the attention of the MMS that there has been an increased usage of potentially hazardous and toxic chemicals, some of which are due to deep-water operations. There are new environmental concerns over these chemicals. Deep operations are typically remote from shore and from each other. They are subject to differing environmental conditions, from deep and surface water currents to potential geological hazards. The potential environmental impacts of the petroleum industry are now well within the range of true deep-sea biological communities and habitats, including sensitive, fragile chemosynthetic communities. Many deep-water plays are expected to produce at very high daily rates from very large reservoirs. So the move onto the continental slope requires a number of operational, logistical, and support considerations. It requires an increase in pipeline construction and capacity. Deep-water operations require an increasingly large and complex infrastructure. The remoteness, low density and the large size of the new operations require upgraded, large, fast supply vessels; and a land-based transportation and storage support infrastructure. These deeper complex systems are expected to require more extensive and frequent uses of specialized chemicals. These chemical products, compounds, and mixtures may be stored at onshore facilities, transported by vessels or pipelines, and held at offshore facilities prior to usage. Of major concern is the possibility of chemical spills, especially those of significant volume and those with a significant hazard to humans and the environment. Some chemicals employed offshore may contain hazardous and toxic substances. Most of these products are proprietary mixtures of chemicals whose concentrations are adjusted for different fields and different operators, and it is possible that small additions of various additives can affect the environmental consequences of a spill. The identification of all of the components of such mixtures might be necessary to understand the behavior of a spill, and the mechanisms needed for mitigation. Factors such as biogradation, reactivity, solubility, and density must be understood to estimate the ultimate fates of chemicals, the potential risks, and actual environmental impacts of spills. In addition to the specific chemical makeup of a product, the methods of handling, storage, transportation, usage, and disposal may increase or lessen the potential risk levels. The Oil Pollution Act of 1990 requires that MMS develop regulatory requirements that cover the response to a discharge of hazardous substances regardless of water depth. To accomplish this, MMS will need information on the types of hazardous substances and quantities typically used offshore. Information shall therefore be gathered on the major hazardous substances used by industry to assist in this effort. The National Environmental Policy Act (NEPA) requires an analysis of the environmental consequences of the MMS's issuance of permits on industry's plans to develop offshore oil and gas resources. The NEPA also requires a determination if a proposed plan could result in a significant impact on the environment. At present, MMS lacks the information needed to write regulations requiring spill response plans covering chemicals hazardous substances used offshore and to effectively evaluate plans proposing the use of these chemicals. The present program shall be designed to gather information on the offshore use of the wide variety of chemical mixtures and hazardous substances, assess their potential impacts, and estimate future usage trends. A substantial amount of the required information may be found at universities in published technical journals, in existing data bases, and in existing Government and industry documents. THUS, IT IS EXPECTED THAT THE OFFEROR PERFORMING THIS PROJECT SHALL WORK CLOSELY WITH BOTH THE MMS AND THE OCS OPERATORS (OFFSHORE OPERATORS COMMITTEE). RELEVANT EXPERTISE: We expect the project team to have experience in, but not limited to, the fields of marine biology; chemical, and geological oceanography; fates and behaviors of chemicals; toxicology; and petroleum sciences and engineering. HOW TO RESPOND: In order to compete for this contract interested parties MUST demonstrate that they are qualified to perform the work by providing, BY FOUR O'CLOCK EASTERN TIME ON MARCH 13, 1998, a Capabilities Statement detailing: (1) your key personnel (those who would have primary responsibility for performing and/or managing the study) with their qualifications and specific experience; (2) your organizational experience and facilities; and (3) specific references (including contract number & project description, period of performance, dollar amount, client identification with the point of contact & telephone number) for previous work of this nature that your key personnel or organization has performed within the last four years (references will be checked). If you believe the Government will find derogatory information as a result of checking your past performance record, please provide an explanation and any remedial action taken by your company to address the problem. Following review of all Capabilities Statements, we will establish a list of those deemed most qualified to perform the work. Offerors shall then be contacted and told their evaluation. We will provide additional proposal instructions at that time. Proposals shall essentially consist of an oral technical presentation and written cost/business proposal. Further details of proposal requirements and logistical considerations will be provided at a later date. Your Capabilities Statement will be evaluated based on your key persons' skills, abilities and experience; your organization's experience and past performance (including number, size, and complexity of similar projects, adherence to schedules and budgets, effectiveness of program management, willingness to cooperate when difficulties arise, general compliance with the terms of the contracts, and acceptability of delivered products.) Questions should be faxed or E-mailed as soon as possible to fax (703)787-1807 or E-mail "wallace.adcox@mms.gov." Please include with your question(s) your full name, the RFP number & title, your organization, complete address, and phone and fax numbers. TELEPHONIC QUESTIONS or REQUESTS are STRONGLY DISCOURAGED. (0050)

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