S--Compressed Natural Gas (CNG) - White River Junction VAMC (VA-19-00035710)

Page 1 of 1 Notice of Intent to Sole Source The Department of Veteran Affairs, Program Contracting Activity Central (PCAC) intends to negotiate directly with Xpress Natural Gas LLC, a small business under North American Industrial Classification System (NAICS) code 221210 located at 300 Brickstone Square, Suite 1005, Andover, MA 01810, for the procurement compresses natural gas (CNG) service in support of an Energy Savings Performance Contract (ESPC) at the White River Junction, VT VA Medical Center under the authority of Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. DESCRIPTION OF REQUIREMENT: The purpose of this contract is to procure CNG supply and transportation service in support of an ESPC contract that is converting the existing fuel oil-fired boiler to natural gas-fired. Due to the lack of an existing natural gas pipeline network in this geographic area, CNG was determined to be an economically viable solution. ESPCs are a particularly unique contracting vehicle in that the Energy Service Company (ESCO) performs an Investment Grade Audit (IGA) at-risk and is not entitled to recover costs incurred (typically within a not-to-exceed amount) unless the VA moves forward with the project via a contract or task order award for implementation. The IGA results in a proposal submitted by the ESCO to the VA that, among other information, includes a 30 percent design package, a firm, fixed-price for the overall cost of the project and the guaranteed annual savings amount the ESCO will be held to throughout the term of the contract. In order to provide this proposal to the VA, the ESCO had to make some subcontractor selections prior to any task order being awarded for implementation. The entirety of the design for the project is dependent on the CNG solution the ESCO decides to move forward with. Without having a CNG provider selected, the ESCO would not be able to complete an acceptable 30 percent design package, and perhaps more importantly would find it problematic to come up with a guaranteed annual savings amount it will be held to throughout the term of the ESPC contract. The CNG supplier provides a turnkey solution, which includes owning and operating compression terminals at various interstate pipeline locations; owning and operating trucks and trailers necessary for CNG transport from the compression terminals to the customer s facility; and specialized, custom-built decompression equipment to be installed at the White River Junction VAMC where the gas will be decompressed and piped into the facility for use by the converted natural gas-fired boiler. Based on the above, the ESCO conducted its own competitive selection process, and decided to select Xpress Natural Gas to be the CNG provider in order for this project to move forward. Thus, the VA intends to award a sole source contract to Xpress Natural Gas LLC for the supply and transportation of CNG effective if and when ESPC implementation phase is completed. This notice of intent is not a request for competitive proposals, as this requirement is not available for competition. However, any responsible source who believes it is capable of meeting the requirement may submit a capability statement, proposal, or quotation, which shall be considered by the agency, only if received by the closing date and time of this notice. A determination not to compete the proposed requirement based upon the responses to this notice is solely within the discretion of the government. Responses to this notice are due on or before April 1, 2019 at 12:00 p.m. EDT by email to contact@example.gov.