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

B -- THE TECHNOLOGY AND ECONOMICS OF DEEP WATER PRODUCTION PROJECTS SOL 1435-01-99-RP-31019 DUE 070799 POC Michael W. Hargrove, Contracting Officer, 703-787-1367 E-MAIL: Contracting Officer's E-mail address, Michael.Hargrove@mms.gov. The Department of the Interior, Minerals Management Service (MMS), intends to competitively award a contract to conduct a deep water research study for the Gulf of Mexico Regional Office. Favorable economics, the development of three-dimensional (3D) and subsalt geophysical technologies, the announcement of several deep water discoveries, new deep water drilling and development technologies, and passage of the Deep Water Royalty Relief Act all contributed to the revitalization of mineral extraction in the Gulf of Mexico and the rapid move into deep water. Deep water operations often are significantly different from conventional operations on the shelf. They can be much more expensive to build and operate, may be located much further from shore than are those in the shallower shelf waters and, hence, usually are larger and technologically more sophisticated. Deep water systems may face more difficult environmental challenges while potentially producing at much higher rates. STUDY OBJECTIVES. This study will produce a scientific monograph, an annotated bibliography and information for public consumption. The Contractor shall use a "case study approach" to accomplish the following goals: (1) a description of the financing, planning, and management of five deepwater production projects; (2) an analysis of the design, engineering, manufacture, transport, operations, and maintenance of five (5) different types of deepwater platforms: fixed platform; compliant tower; mini tension leg platform; tension leg platform; and spar; (3) an evaluation comparing and contrasting five deep water projects with those on the continental shelf to show how deepwater and shelf activities differ and how they can be the same; (4) information showing the findings in ways interesting to the general public. Include also a map of the United States [and of the world] for each system. Maps will show the name, location and work done on that system. For example, reportedly 20 contractors in Florida contributed to the MARS platform. Tables also will accompany each map and will list the monies spent, people and skills employed in each state; and (5) an analysis of the national, and international where appropriate, spread of businesses, people, skills and money upon which the petroleum industry depends for its production equipment. This will lead to a clearer understanding of the national and international implications of petroleum extraction on OCS waters in the Gulf of Mexico. SCOPE OF WORK: Draft materials including research, writing and photographs collected from relevant companies for use in MMS' popular reports on deep water operations shall be submitted within 6 months of contract award. The total period of performance shall encompass all contracted tasks from initial planning, through and including MMS's final acceptance of all contract deliverables. The location of the study area will range from deep water production platforms in the Gulf of Mexico, to the headquarters of operators/owners and on to support companies and manufacturers in the United States and those located throughout the world. MMS scientists do not anticipate the need for extensive fieldwork. There are three (3) tasks. Task 1. is a LITERATURE REVIEW. Contractor will maintain a current list of both (1) companies, their profiles and their contributions to the technology of deep water platforms and their expenditure patterns by geographic location and (2) written documents, personal communications, etc. relevant to the evaluation at hand. Contractor also will submit under Task 3 a bibliography of printed material consulted. This bibliography will be annotated to conform to the MMS' social science data base. Task 2. DATA COLLECTION AND ANALYSIS will focus on the five (5) deep water projects as follows: a fixed platform operated by BP-Amoco; a compliant tower operated by Amerada-Hess; a mini tension-leg platform operated by British Borneo; a tension leg platform operated by Shell; and a spar system operated by Oryx. MMS staff will act as initial brokers with these companies regarding their cooperation in responding to requests for information and expenditure patterns. The MMS will provide to the contractor the list of projects, responsible companies and initial points of contact [POCs]. Should a project listed above prove to be unavailable for study, MMS will give an alternative to the contractor. Participating companies will have the opportunity to review draft products to ensure that information they deem sensitive is not released inadvertently. The Contractor shall conduct all primary data gathering activities as specified in its research plan. The research plan will consist of the methodology recommended by the Contractor during its oral presentation and any changes resulting from the kickoff meeting. No field methodologies may be used that require clearance from the Office of Management and Budget (OMB). MMS defines "deep water" as water depths in excess of 1,000 feet and requires a full description of the technology, finances and expenditures of each case study project selected,from their planning and design phase, engineering and fabrication to their completion, transport to the production site, operation and maintenance. For the planning stage, the MMS is particularly concerned about financing and how it differs from nearer shore, less capital intensive projects. For the construction phase, the MMS is particularly interested in what is done, where and how the pieces are brought together, and why particular locations and sequences of assembly are chosen to create the producing whole. The complexity of the projects should be detailed. The size of the labor force, its mix of skills, and geographical distribution are of interest for all phases of development and production. The MMS also requires an analysis of the national and, where appropriate, international, spread of businesses, people and money on which the petroleum industry depends for its equipment. Include also a map of the United States and, if necessary of the world for each system chosen. Maps will show the name, locationand monetary value of work done for that system. For example, reportedly 20 contractors in Florida contributed to the MARS platform. Tables accompanying each map will list the monies spent and people employed and economic value of these factors to the local county if in the U. S. or country if abroad. The Contractors shall conduct an evaluation of the design life and complexity of the projects. For example, platforms keep an inventory on board of nuts, bolts, corrosion compounds and other standard items to ensure continuous operation. Simply a list of these parts, a description of what they are used for, where they originated, their aggregate value and the costs and logistics of keeping that inventory, i.e., resupplying, might capture part of the complexity of the operations. Task 3 will be INFORMATION SYNTHESIS AND TECHNICAL REPORTS in which the Contractor shall produce three (3) separate but complementary documents: (1) Information for popular consumption comprised of different descriptions featuring one deep water project each plus other designs being developed, relevant photographs or illustrations of each type of structure and one national and, if appropriate, international map per structure which shows total expenditures and, if possible, employment by state in the United States and by country in the world. (2) A detailed, technical report with an executive summary and proper referencing and an annotated bibliography in a standard format as designated by MMS staff. HOW TO RESPOND: To compete for this contract, an offeror must demonstrate they are qualified to perform the work by providing a CAPABILITIES STATEMENT, describing in detail: (A) Key personnel with the expertise and experience to conduct the described multi-disciplinary program. Particularly relevant is their expertise in the fields of social and economic impact assessment, their familiarity and understanding of available Gulf of Mexico deep water information, their understanding of the technology, financing, and economics of oil platforms in hazardous parts of the world, their insight into the process from design and manufacture to locating, maintaining and operating oil production structures in hazardous areas. Offeror must demonstrate their ability to do the work, and an understanding of the directed missions of the MMS. Principal scientists must collectively illustrate relevant experience in the social sciences through authorship in appropriate peer-reviewed publications, and/or work history, and/or professional affiliations. Please indicate which personnel will have responsibility for what objective (s) and/or task(s) as specified above in this announcement. (B) The organization's expertise relevant to the objectives of this study and a description of facilities and resources to be used and how they relate to the objectives and tasks of this study;and(C)Specific references (including project identifier and description, period of performance, dollar amount, and client name and phone number) for previous work comparable to that described in this announcement that your organization or personnel is currently performing or has completed within the last three (3) years. REFERENCES WILL BE CHECKED. If there exists concern the Government will find derogatory information as a result of checking your Past Performance Record, please provide an explanation for same and any remedial action taken by your company to rectify the problem. Your Capabilities Statement will be evaluated based on (1) the currency, quality and depth of experience of individual personnel who have worked on similar projects. "Similar project" is meant to convey similarity in topic, methodologies, dollar value, duration and complexity;(2)quality and depth of education; experience on other projects which may not be similar enough to include in response to (1), but may be relevant; and publication history;(3)organization's history of successful completion of projects; history of producing high-quality reports and other deliverables; history of staying on schedule and within budget. Individualskills and experience will be evaluated based on the tasks to be performed. Offerors shall submit their CAPABILITIES STATEMENT in original and two (2) copies to Michael W.Hargrove, Contracting Officer, Minerals Management Service, 381 Elden Street, MS-2500, Herndon Virginia 20170-4817, not later than 4:00 PM Eastern Standard Time on JULY 07, 1999. ELECTRONIC COPIES WILL NOT BE ACCEPTED. Six (6) additional copies shall be submitted to Dr. Claudia M. Rogers,(MS 5411),Minerals Management Service, Gulf of Mexico OCS Region, 1201 Elmwood Park Boulevard, New Orleans, LA 70123-2394. Time of receipt of submissions will be determined by the time received in the Procurement Operations Branch, Herndon, Virginia. Following the review of all Capabilities Statements submitted, the MMS will establish a list of respondents deemed most qualified to perform the prospective effort and invite them to provide a written technical/cost/business proposal. The offerors will be required to present an Oral Presentation of their technical/cost/business proposal. The identified key personnel will provide the Oral Presentation and emphasis should be on how your business proposes to perform this work. The period of performance of the resultant contract will be twelve (12) months from the effective date of contract award and have an estimated value of $150,000 to $175,000. Questions may be E-mailed to Michael.Hargrove@mms.gov and/or Lane.Donley@mms.gov, or faxed to 703-787-1387. All correspondence MUST include the RFP number, your full name, and your company name, address, telephone and facsimile number. MMS STRONGLY DISCOURAGES TELEPHONE REQUESTS OR QUESTIONS. Posted 06/04/99 (W-SN339554). (0155)

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