RFB - Natural Gas Supply Service

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TABLE OF CONTENTS

RFB Section Page

  1. Description of Service Being Requested 1

  2. Bid Steps and Timetable 2

  3. Contractual Requirements 3

  4. Pricing Product and Billing 3

  5. Submission of Bid Prices 4‌

  6. Selection Process 5

  7. Account Enrollment 5

Appendices

Appendix A List of Accounts

Appendix B Transmittal Letter

Appendix C Bid Price Form

 

 

 

 

  1. Description of Service Being Requested

    The City of Reading is requesting bids for Natural Gas Supply from third party natural gas suppliers

    licensed by the Pennsylvania Public Utility Commission (“PUC”).

    The City of Reading has twenty-four (24) natural gas accounts located in UGI Gas (“UGI”) service territory. A new supply contract is being sought for all twenty-four (24) accounts. Total annual usage for these (24) accounts is approximately 21,800 dekatherms (dth). Mondre Energy, Inc., 1800 John F. Kennedy Boulevard, Suite 1504 Philadelphia, PA 19103 has been retained as the City of Reading’s energy consultant (“Energy Consultant”). The Energy Consultant will be assisting in the procurement and ongoing management of the City of Reading’s natural gas supply.

    The specific account numbers and tariff classifications for the twenty-four (24) natural gas accounts are set forth in Appendix A. PUC-licensed suppliers are hereby authorized to seek and obtain historical usage information from UGI for the City of Reading accounts included in this Request for Bid (RFB) and listed in Appendix A, for purposes of preparing a bid in response to this RFB. This information is to be used for the sole purposes of preparing a bid in response to this RFB and, if supplier is awarded a contract by City of Reading, of enrolling the accounts in natural gas service. Any other use of the account information provided in this RFB or obtained from UGI is strictly prohibited.

    Natural Gas Supply service for the individual accounts will begin with the September 2019 meter read dates (“MRD”) for each account. The City of Reading is soliciting bids for the following terms of service:

    • twelve (12) months (terminating on the August 2020 MRD);

    • twenty-four (24) months (terminating on the August 2021 MRD); or

    • thirty-six (36) months (terminating on the August 2022 MRD).

     

    As described

    in more detail in Section D of this RFB, the City of Reading is requesting pricing for a fixed price product option. It is their intention that an authorized representative of the City of Reading will execute a binding commitment letter and provide such commitment letter to the winning bidder by no later than 4:00 PM EST on the day of the bid, and bids must be held firm until at least that time.

     

     

  2. Bid Steps and Timetable

    The following summarizes the procedural steps and timeline associated with this RFB:

     

    Phase I:

     

    • Phase Ia: Supplier Inquiries and Questions – Any questions from prospective bidders regarding the RFB package must be received no later than 2:30 PM on Thursday, August 8, 2019. Responses to such questions and inquiries will be provided as soon as possible and, in no event later than 4:00 PM Monday, August 12, 2019.

       

    • Phase Ib: Supplier Proposed Forms of Supply Contract – Proposed forms of natural gas supply contract, including any related Sales Agreement Confirmation exhibits or Price Confirmation forms, must be submitted by prospective bidders by no later than 2:30 PM on Monday, August 12, 2019. See Section C of this RFB for further instructions and requirements.

       

      All submittals pursuant to Phases Ia and Ib must be directed to The City of Reading at the following email address:

       

      Tammi.Reinhart@readingpa.gov

       

      Phase II:

       

    • Phase II: Submission of Bid Prices – Price Bids must be received no later than 11:00 AM EST on Monday, August 19, 2019. Bid prices must be submitted on the Bid Price Forms set forth in Appendix C and must be accompanied by a completed Transmittal Letter (see Appendix B). See Section D of this RFB for further instructions and details.

       

       

  3. Contractual Requirements

    The City of Reading will utilize the form of natural gas supply contract submitted by the winning supplier,

    provided that said form of natural gas supply contract is in compliance with this RFB. Specifically, the following sets forth the required and/or permissible terms and conditions of the form of natural gas supply contract:

     

    • The City of Reading will accept a standard Material Change in Usage and/or usage bandwidth provision (permits supplier to adjust fixed contract price to reflect incremental costs in the event that actual aggregate usage of the City of Reading accounts varies materially from historical usage levels upon which supplier based its bid price), provided that: a) monthly variances in usage (as compared to historical) of at least plus or minus 25% will be permitted (i.e. a usage bandwidth of 25% or greater is permitted without price adjustment); and b) such usage variance will be determined on an aggregate basis (i.e. inclusive of all accounts under the contract);

       

    • Contract Price will equal the Bid Price ($/dth) submitted by the supplier and accepted by the City of Reading, and the monthly amount due shall equal the Contract Price times metered usage as reported by UGI;

       

    • Contract Price is firm and fixed for the term of the contract. A standard change in law provision will be permitted to reflect a change in law or tariff implemented after the date hereof that has a material impact on the cost to Natural Gas Supply. Material impact will be an increase in cost of no less than $0.1/dth. In this instance, natural gas supplier may adjust the Contract Price by a percentage amount up to the percentage change in the supplier’s direct total cost to provide Natural Gas Supply to the City of Reading directly caused by the change in law. The natural gas supplier shall provide a minimum of thirty (30) days written notice to the City of Reading of an adjustment to the Contract Price and, if requested, provide reasonable documentation of the change in costs. The City of Reading retains the right to review and dispute the validity of such adjustments, and to withhold payment of any disputed amounts during the dispute.

  4. Pricing Product and Billing

    The City of Reading is soliciting bids for a fixed price product, described below. Bids must be submitted

    using the Bid Price Form provided in Appendix C.

     

    1. Fixed Price Product

       

      • A single bid price in dollars per dekatherm ($/dth) for each potential contract term is being requested. The bid price is for a fixed charge ($/dth) inclusive of all commodity and non- commodity gas supply costs. Non-commodity gas supply costs include, but are not limited to transportation capacity, balancing, energy consultant fees and supplier margin.

         

      • Bid prices must include the cost to the supplier of the Energy Consultant fee of $0.09/dth which will be payable directly to the Energy Consultant in accordance with the terms of an agreement to be executed between the winning bidder and the Energy Consultant

         

      • The City of Reading will be obligated to a usage bandwidth provision (permits supplier to adjust fixed contract price to reflect incremental costs in the event that actual aggregate usage of the City of Reading accounts varies materially from historical usage levels upon which supplier based its bid price), provided that: a) monthly variances in usage (as compared to historical) of at least plus or minus 25% will be permitted; and b) such usage variance will be determined on an aggregate basis (i.e. inclusive of all accounts under the contract).

         

    2. General Specifications

       

      For the supply product stated above, the following specifications shall apply to the Bid Price:

       

      • Bid Prices should not include any utility distribution charges and other charges imposed by UGI

      • The City of Reading is requiring that bills for Natural Gas Supply service be rendered on a consolidated billing basis.

  5. Submission of Bid Prices

    In Phase II the City of Reading will accept bid prices. Bid prices must be submitted on the Bid Price Form

    (standard form in Appendix C of this RFB) and must be accompanied by a Bid Transmittal Letter (standard form in Appendix B of this RFB). The deadline for bid submission is 11:00 AM EST on Monday, August 19, 2019. Bids must be submitted electronically, as described below. Bids received after the 11:00 AM EST deadline on bid day will be returned unopened.

     

    The Bid Price Form in Appendix C provides for the input by suppliers of separate bid prices ($/dth) for fixed price product and the three potential contract terms (12, 24, or 36 months). Bid prices must include all cost elements of Natural Gas Supply service as set forth in Section C of this RFB. The City of Reading will select the natural gas supply product and contract term which, in the sole judgment of the City of Reading, offers the greatest benefit to the City of Reading and its constituents.

     

    As indicated above, bidders must submit Phase II price bids electronically. Bids must be submitted on the Bid Price Form set forth in Appendix C, and must be accompanied by a completed Transmittal Letter (Appendix B) executed by a person duly authorized to legally bind the Bidder (the "Authorized Representative").

     

    Bidders must email the completed Bid Price Form (an MS Excel document) and a PDF version (pdf) of the completed Transmittal Letter. The completed Bid Price Form and Transmittal Letter should be forwarded via email to: Tammi.Reinhart@readingpa.gov. Bids received will not be opened until 11:00 AM EST Prevailing Time on bid day.

     

    The costs and expenses associated with the preparation of a Bid will be at the sole cost and expense of the Bidder. In no event will a Bidder have a claim against the City of Reading for reimbursement of any such costs or expenses.

  6. Selection Process

    The City of Reading will determine, in its sole judgment, whether any of the bids provide sufficient benefit

    to merit the award of a contract and, if so, will make an award for the contract duration and to the supplier whose bid, in City of Reading’s sole judgment, provides the most benefit to City and its constituents.

     

    The City of Reading reserves the right to reject any and all Bids in its sole discretion. The City of Reading is not obligated to enter into an Agreement with any Bidder, and reserves the right to waive any informalities or omissions in any Bid.

     

    The City of Reading intends to notify the winning Bidder of the bid award by no later than 4:00 PM EST on Monday, August 19, 2019. Such bid award shall be implemented through the issuance of a written Award Letter signed by a designated representative of The City of Reading. The signed Award Letter is a legally binding commitment on the part of The City of Reading. The winning Bidder will be expected to honor the Bid Price(s) so long as the Award Letter is issued to the selected Bidder by 4:00 PM EST on the date of bid submission.

     

    Once an Award Letter is issued, the supplier is expected to hedge the supply necessary to honor the bid price, based upon the binding commitment in the Award Letter. Once that is completed, the supplier shall prepare the applicable transaction confirmation for product, term and Contract Price to append to the City of Reading form of natural gas supply contract for execution by the City of Reading and the supplier. It is the intent of the City of Reading that the natural gas supply contract will be executed by the supplier and the City of Reading within one (1) business day of contract award.

  7. Account Enrollment

Upon the award of the contract, the Supplier shall be responsible for taking the steps necessary to enroll

each awarded City of Reading account in a manner and in a timeframe necessary to assure the commencement of Natural Gas Supply service on the September 2019 MRD for each account.

 

 

Natural Gas Account

Utility

411003179388

UGI

411003180170

UGI

411003256954

UGI

411003599304

UGI

411003951729

UGI

411004151428

UGI

411004399175

UGI

411004403613

UGI

411004443890

UGI

411004474556

UGI

411004547971

UGI

411004550660

UGI

411004638309

UGI

411005157879

UGI

411005496277

UGI

411005496434

UGI

411005530166

UGI

411005784177

UGI

411006244114

UGI

411007599896

UGI

411007599920

UGI

421000068732

UGI

421000585586

UGI

421001050143

UGI

 

Appendix B

Bid Transmittal Form

DATE: August 19, 2019‌

 

City of Reading

815 Washington Street

Reading, PA 19601-3615

 

Dear City of Reading:

___________________ (the “Bidder” hereby submits its bid (the “Bid” in response to the Request for Bids (RFB) for Natural Gas Supply Service (“RFB”) issued by the City of Reading on July 29, 2019.

 

As a duly authorized representative of the Bidder, I hereby certify, represent and warrant as follows in connection with the Bid:

 

  1. The submittal of the Bid has been duly authorized by, and in all respects, is binding upon, the Bidder, subject to the terms of the RFB. If Bidder receives an executed Award Letter from the City of Reading at or before 4:00 PM EST on the date of the bid submission, Bidder hereby acknowledges that this will be considered a legally binding commitment on the part of the City of Reading and Bidder, that it will provide natural gas supply service to the City of Reading accounts included in the RFB commencing with the September 2019 meter read dates, and that the Bid Price for the awarded term shall be the Contract Price.

 

 

 

 

APPENDIX C - BID PRICE FORM

   
           
     

Monday, August 19, 2019

   

City of Reading - Bid for Natural Gas Supply

   

Supplier's Name

   
   

Enter Supplier Name Here

     
           
           
   

Bid Group

24 City of Reading Accounts from RFB

   
     

Fixed Price ($/dth)

   
   

12-Month

     
   

24-Month

     
   

36-Month

     
     
     

 

 

 

NON-COLLUSION AFFIDAVIT

 

INSTRUCTIONS FOR NON-COLLUSION AFFIDAVIT

 

1. This Non-Collusion Affidavit is material to any contract pursuant to this bid. According to the Pennsylvania Antibid-Rigging Act, 73 P.S. 1611 et seg., governmental agencies may require Non-Collusion Affidavits to be submitted together with bids.

  1. This Non-Collusion Affidavit must be executed by the member officer, or employee of the bidder who is authorized to legally bind the bidder.

  2. Bid rigging and other efforts to restrain competition, and the making of false sworn statements in connection with the submission of bids are unlawful and may be subject to criminal prosecution. The person who signs the Affidavit should examine it carefully before signing and assure himself or herself that each statement is true and accurate, making diligent inquiry, as necessary, of all other persons employed by or associated with the bidder with responsibilities for the preparation, approval or submission of the bid.

  3. In the case of a bid submitted by a joint venture, each party to the venture must be identified in the bid documents, and an Affidavit must be submitted separately on behalf of each party.

  4. The term “complementary bid” as used in the Affidavit has the meaning commonly associated with that term in the bidding process, and includes the knowing submission of bids higher than the bid of another firm, any intentionally high or noncompetitive bid, and any form of bid submitted for the purpose of giving a false appearance of competition.

  5. Failure to file an Affidavit in compliance with these instructions will result in disqualification of the bid.

 

NON-COLLUSION AFFIDAVIT OF PRIME BIDDER

 

State of

County of

,

being

first

duly

sworn,

deposes and says that:

       

 

  1. He/She is

    (Owner, Partner, Officer, Representative or Agent)

    of , the Bidder that has submitted the attached Bid or Bids;

     

  2. He/She is fully informed respecting the preparation and contents of the attached Bid and of all pertinent circumstances respecting such Bid;

     

  3. Such Bid is genuine and is not a collusive or sham Bid;

     

  4. Neither the said Bidder nor any of its officers; partners, owners, agents, representatives, employees or parties in interest, including this affiant, has in any way colluded, conspired, connived or agreed, directly or indirectly, with any other Bidder, firm or person to submit a collusive or sham Bid in connection with the Contract for which the attached Bid has been submitted or to refrain from bidding in connection with such Contract, or has in any manner, directly or indirectly, sought by agreement or collusion or communication of conference with any other Bidder, firm or person to fix the price or prices in the attached Bid or of any other Bidder, or to fix any overheld profit or cost element of the Bid price or the Bid price of any other Bidder, or to secure through any collusion, conspiracy, connivance or unlawful agreement any advantage against the City of Reading or any person interested in the proposed Contract;

     

  5. The price or prices quoted in the attached Bid are fair and proper and are not tainted by any collusion, conspiracy, connivance or unlawful agreement on the part of the Bidder or any of its agents, representatives, owners, employees, or parties in interest, including this affiant; and,

     

  6. Neither the said Bidder nor any of its officers, partners, owners, agents or parties in interest, have any interest, present or prospective, that can be reasonably construed to result in a conflict of interest between them and the City of Reading, which the Bidder will be required to perform.

I state that understands

(Name of Firm)

 

and acknowledges that the above representations are material and important, and will be relied on by the City of Reading in awarding the Contract(s) for which this Bid is submitted. I understand and my firm understands that any misstatement in this Affidavit is and shall be treated as fraudulent concealment from the City of Reading of the true facts relating to the submission of bids for this Contract.

 

 

(Name and Company Position)

 

SWORN TO AND SUBSCRIBED BEFORE ME THIS DAY

OF , 20

 

 

 

Notary Public

My Commission Expires:

 

PROVIDER’S CERTIFICATION OF NON-INDEBTEDNESS TO THE CITY OF READING

 

Provider hereby certifies and represents that Provider and Provider’s parent company(ies) and subsidiary(ies) are not currently indebted to the City of Reading (the “City”), and will not at any time during the term of this Contract (including any extensions or renewals thereof) be indebted to the City, for or on account of any delinquent taxes, liens, judgments, fees or other debts for which no written agreement or payment plan satisfactory to the City has been established. In addition to any other rights or remedies available to the City at law or in equity, Provider acknowledges that any breach or failure to conform to this certification may, at the option of the City, result in the withholding of payments otherwise due to Provider and, if such breach or failure is not resolved to the City’s satisfaction within a reasonable time frame specified by the City in writing, may result in the offset of any such indebtedness against said payments and/or the termination of this Contract for default (in which case Provider shall be liable for all excess costs and other damages resulting from the termination).

 

Name of Provider

 

By:

 

Authorized Signatory

 

Title:

 

President or Vice President

 

Attest:

 

NON DISCRIMINATION STATEMENT

 

The undersigned hereby certifies that it shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, handicap, familial status, or national origin. The undersigned shall take affirmative action to insure that applicants for employment are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, handicap, familial status, or national origin.

 

 

 

 

 

City of Reading, Pennsylvania.

 

NOW, THEREFORE, in consideration of the award of said contract to the undersigned,

, as well as in further consideration of the sum of ONE DOLLAR ($1.00) in hand paid to the said by the City of Reading, receipt whereof is hereby acknowledged, the said agrees to indemnify and save harmless the CITY OF READING, its officers, agents, servants, and employees against any and all loss, damage, costs and expenses which the said CITY may hereafter suffer, incur, be put to or pay by reason of any bodily injury (including death) or damage to property arising out of any act or omission in performance of the work undertaken under the aforesaid contract.

 

EXECUTED this day of , 20 .

 

By:

 

Title:

 

ATTEST:

 

 

 

 

(Title)

 

STIPULATION AGAINST LIENS

 

 

WHEREAS, , hereinafter called the CONTRACTOR, has entered into a CONTRACT, dated , 20 , with hereinafter called the CITY, to provide materials and perform labor necessary for the manufacture and furnishing of the:

 

as set forth in the CONTRACT DOCUMENTS as prepared by the City of Reading.

NOW, THEREFORE, it is hereby stipulated and agreed by and between the said parties, as part of the said CONTRACT, and for the consideration therein set forth, that neither the undersigned CONTRACTOR, any SUBCONTRACTOR or material man, nor any other person furnishing labor or materials to the said CONTRACTOR under this CONTRACT shall file a lien, commonly called a mechanic's lien, for WORK done or materials furnished for the above manufacture.

This stipulation is made and shall be filed with the Berks County Prothonotary within ten (10) days after execution, in accordance with the requirements of Section 1402 of the Mechanics Lien Law of 1963 of the Commonwealth of Pennsylvania in such case provided.

IN WITNESS WHEREOF, the parties hereto have caused the signature of their proper officers to be affixed thereto on this day of 20 .

 

 

(CITY OF READING) ATTEST:

 

BY:

 

TITLE:

 

BY:

 

TITLE:

 

 

(CONTRACTOR)

 

ATTEST:

 

BY:

 

TITLE:

 

BY:

 

TITLE:

 

BY:

 

TITLE: