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F--NON-COMPETITIVE AWARD FOR METHANE HYDRATE RESEARCH ON THE ALASKA NORTH SLOPE

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DE-SOL-0008446Federal

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The U.S. Department of Energy’s National Energy Technology Laboratory (NETL) plans to award a sole source, non-competitive contract to Petrotechnical Resources Alaska (PRA) to carry out activities related to methane hydrate research on the Alaska North Slope. This contract supports existing memorandums of understanding with the Japan Oil, Gas and Metals Corporation (JOGMEC) and the Alaska Department of Natural Resources (ADNR), and builds on prior cooperative efforts to test and evaluate gas hydrate deposits. Originally released under a funding opportunity related to Arctic gas hydrate testing, no viable competitive proposals were received for the project, leading NETL to pursue this sole source arrangement with PRA, who previously secured a contract from JOGMEC for well planning and drilling activities on the same land. The contract will cover planning, analytical, and engineering services associated with drilling stratigraphic test wells intended to facilitate long-term methane hydrate production testing. The initial Phase I includes environmental and archaeological permitting and preparation of detailed plans for up to five test wells, while a Government option for Phase II involves drilling up to three wells and assessing their suitability for production testing. The total value of the contract is estimated around $8.5 million. NETL’s decision to proceed with this sole source award under federal acquisition regulations is based on PRA’s unique capability and the strategic partnership with JOGMEC, which allows the DOE to leverage substantial financial resources despite budget constraints. Interested parties may express capability by a specified deadline, but the Government retains full discretion over whether to move forward competitively.

General Info

NETL awards $8.5M sole source contract to PRA for methane hydrate drilling, Alaska North Slope.

Agency

N/A

NAICS

213111 - Drilling Oil and Gas Wells

Place of Performance

Not specified

Set-Aside

NONE

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Organization & Contact Information

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Full Description

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The U.S. Department of Energy (DOE) National Energy Technology Laboratory (NETL) intends to enter into a non-competitive, sole source procurement with Petrotechnical Resources Alaska (PRA) in order to execute activities established in memorandums of understanding (MoU) with the Japan Oil, Gas and Metals Corporation (JOGMEC) and the Alaska Department of Natural Resources (ADNR). Background Information: NETL issued Funding Opportunity Announcement (FOA) DE-FOA-0001023 entitled, ?FY 2014 Methane Hydrates? on March 4, 2014 which included an area of interest for Extended Duration Testing of Arctic Gas Hydrate Deposits. Upon review, DOE established that there were no viable respondents to this portion of the FOA. While JOGMEC is interested in such work, they withdrew their application submitted to the FOA and indicated that acting as a performer under a Cooperative Agreement with DOE is inappropriate and not suitable for its needs. Subsequently, on November 6, 2014 NETL and JOGMEC signed a MoU to establish a cooperative working arrangement in the area of gas hydrate production testing on the land set aside by the ADNR on the North Slope of Alaska. The MoU enables the Office of Fossil Energy to leverage substantially greater financial contributions which JOGMEC has indicated that it will make available pursuant to hydrate production testing on the North Slope through this partnership In January of 2015, JOGMEC released a solicitation for proposals for the planning and drilling of stratigraphic test wells on the land set aside by the ADNR in collaboration with NETL/DOE. PRA was the only respondent and was awarded the JOGMEC contract in April 2015. NETL plans to issue a separate non-competitive, cost type contract to PRA in order to collaborate on activities established under its MOU with JOGMEC. This is an attractive opportunity to the DOE Hydrate Program given current budget constraints and limited financial resources and partnership opportunities related to hydrate production testing on the North Slope of Alaska. These arrangements will support the evaluation of and potentially enable the long term production testing of gas hydrate deposits, which is a major goal of the Hydrate Program. EFFORT: The contract will be for the performance of specific planning, analytical and engineer services associated with potential drilling of stratigraphic test wells on the North Slope of Alaska in preparation for long-term methane hydrate projection tests. The Contract will include Phase I activities, with a Government option for Phase II activities. It is expected that the magnitude of the award will be for approximately $8.5 million, which includes the base and all options. NETL?s contract with PRA in Phase I of the project shall include support for required environmental and archeological permitting and the development of comprehensive plans and associated costs for the completion of up to five (5) stratigraphic test wells. PRA shall conduct a series of geologic and engineering studies designed to assess the nature of prospective acreage set aside for gas hydrate in Alaska by the ADNR in association with a MoU signed between the ADNR and the Office of Fossil Energy on April 16, 2013. Phase II of the project, if exercised, shall include the drilling of up to three (3) stratigraphic test wells and analysis of the sites for their appropriateness for long term production testing. NETL will enter into this non-competitive procurement, under the sole source authority 41 U.S.C. 3304(a)(1) pursuant to FAR 6.302-1(a)(2) in which the services are only available from one responsible source for the work to be performed. This notice of intent is not a request for quote/proposal. Any interested party that believes it is capable of meeting the NETL requirement described herein may identify themselves and must provide evidence of their capability to fulfill the requirement being requested by 2:00 PM local time on May 20, 2015. Responses must be submitted in writing to lucas.payne@netl.doe.gov no later than the time and date noted above. Telephone responses and requests will not be accepted. A determination by the Government not to compete this requirement based on responses to this notice is solely within the discretion of the Government. Information received will be considered solely for the purpose of determining whether to conduct a competitive procurement.

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