District of Columbia Dept. of General Services

Natural Gas RFP WebinarNovember 13, 20121:30 pm ET

• Customer: District of Columbia Department of General Services• Natural Gas Supply starting: January 1, 2013• 415 Accounts

– including 9 new accounts– all are on non-Interruptible distribution service with WGL– 6 likely inactive accounts are not included in totals

• Approx. 977,000 therms per year• Term: 1, 2, and 3 year contract terms• 2 Pricing Products• Broker fee• Web site for Updates: http://dcrfps.ameresco.com

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Natural Gas RFP Specifications

• RFP Responses:– Kim Marburger, Ameresco– kmarburger@ameresco.com– 704-916-3508

• Broker Agreements:– Kathy Abernethy, Ameresco– kabernethy@ameresco.com– 704-916-3531

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Natural Gas RFP Contacts

• RFP Posted to RFP Web site: Friday, November 9, 2012 • Responses Due: 11 am ET on Tuesday, November 27, 2012 • Anticipated Execution: by Noon ET on Wednesday, December 5,

2012– DC may be able to execute December 4 after Council meeting– will lock NYMEX sometime after contract execution

• Service Begins: January 1, 2013

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Natural Gas RFP Timeline

• Contract: – Strong Preference for NAESB with GAPA and Special Provisions

• Government Acquisition Provision Addendum• Articles 18.5.1. – 18.5.5 added• Pp. 5-11 taken from the District of Columbia’s “Standard Contract Provisions” for

Supplies and Services Contracts, November 2004 (some but not all provisions)– Bidders’ red-line additions to Special Provisions will be received, but

unwillingness / inability to accept DC provisions may be a factor in evaluation process

• Pricing Products– Fixed Price (25% and 10% swing)– Fixed Basis (0%, 10%, 20%, 100%)

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Natural Gas RFP Contract and Pricing

• Fixed Price (25% and 100% swing options):– Basis

• Asking Bidders to hold open Fixed Basis quote from bid deadline (11 am ET on Tuesday, November 27, 2012) to Noon ET on Wednesday, December 5, 2012

– NYMEX• Asking Bidders to enter quote, but DGS intends to allow winning Supplier to adjust

NYMEX to the actual screen at the time of notification of award and actual execution– Once Basis and NYMEX are locked…

• “the price is the price” within the swing % selected

• Fixed Basis (0%, 10%, 20%, 100% swing options):– Basis

• Asking Bidders to hold open Fixed Basis quote from bid deadline (11 am ET on Tuesday, November 27, 2012) to 2 pm on Noon ET on Wednesday, December 5, 2012

– NYMEX• locked prospectively for specific quantities by month sometime after contract execution

– Once Basis is locked..• “the Basis price is the Basis price” within the swing % selected• Fixed NYMEX is fixed NYMEX for the specific volumes locked

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Pricing Products

• GAPA 18.5.1: “This contract has a not-to-exceed amount of $12,646,615 multiplied by term of the contract (in years). Seller understands and agrees that in no event shall the Buyer’s liability to the Seller exceed such amount unless the Buyer’s contacting officer authorizes an increase in this amount in advance and in writing”.– contract must include a specific figure– should provide ample allowance for volume and price variance

• GAPA Article 10 (added provisions). Multi-year Contract. Section

deals with appropriation of funds.– deals with a specific circumstance– does not authorize Buyer to terminate so as to do a deal with another

provider

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Specific Special Provisions

Thank You!

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