Bulk Natural Gas Initiative

Trade Agreement: NONE Tendering Procedures: Attachment: YES (MERX) Electronic Competitive Procurement Strategy: N/A - P&A/LOI Only Comprehensive Land Claim Agreement: No Nature of Requirements: Bulk Natural Gas Initiative

EW479-131698/A Dong, Michael Telephone No. - (780) 497-3642 Fax No. - (780) 497-3510

REQUEST FOR INFORMATION (RFI) REGARDING THE BULK NATURAL GAS INITIATIVE (BNGI)

TABLE OF CONTENTS

1. BACKGROUND AND PURPOSE OF THIS REQUEST FOR INFORMATION (RFI) 2. NATURE OF REQUEST FOR INFORMATION 3. NATURE AND FORMAT OF RESPONSES REQUESTED 4. RESPONSE COSTS 5. TREATMENT OF RESPONSES 6. CONTENTS OF THE RFI (attached documents) 7. FORMAT OF REPONSES 8. ENQUIRIES 9. SUBMISSION OF RESPONSES

1. BACKGROUND AND PURPOSE OF THIS REQUEST FOR INFORMATION (RFI)

Since the natural gas commodity has been deregulated across Canada, there is a national opportunity to explore price competition purchasing gas in bulk volume to reduce costs specific to the commodity, transportation, load management and administration costs internal and external to the Crown.

To date the natural gas Industry has never been approached to provide bulk natural gas of significant volume to the Canadian Federal Government under price competition. When a price competition was held in 2006 for the supply of bulk electrical energy to Federal Departments and Agencies in Alberta the result was a significant reduction in overall cost.

The objective of this RFI is to attain industry and stakeholder feedback on the intent of the Bulk Natural Gas Initiative, the attached documents which include the proposed procurement strategy with various options and any other pertinent feedback or recommendations regarding the proposed BNGI.

2. NATURE OF REQUEST FOR INFORMATION

This is not a bid solicitation. This RFI will not result in the award of any contract. As a result, potential suppliers of any goods or services described in this RFI should not reserve stock or facilities, nor allocate resources, as a result of any information contained in this RFI. Nor will this RFI result in the creation of any source list. Therefore, whether or not any potential supplier responds to this RFI will not preclude that supplier from participating in any future procurement. Also, the procurement of any of the goods and services described in this RFI may not necessarily follow this RFI. This RFI is simply intended to solicit feedback from industry with respect to the matters described in this RFI.

3. NATURE AND FORMAT OF RESPONSES REQUESTED

Respondents are requested to provide their comments, concerns and, where applicable, alternative recommendations regarding how the requirements or objectives described in this RFI could be satisfied. Respondents are also invited to provide comments regarding the content, format and/or organization of any draft documents included in this RFI. Respondents should explain any assumptions they make in their responses.

4. RESPONSE COSTS

Canada will not reimburse any respondent for expenses incurred in responding to this RFI.

5. TREATMENT OF RESPONSES

A.Use of Responses: Responses will not be formally evaluated. However, the responses received may be used by Canada to develop or modify procurement strategies or any draft documents contained in this RFI. Canada will review all responses received by the RFI closing date. Canada may, in its discretion, review responses received after the RFI closing date. B.Review Team: A review team composed of representatives of the client (where applicable) and PWGSC will review the responses. Canada reserves the right to hire any independent consultant, or use any Government resources that it considers necessary to review any response. Not all members of the review team will necessarily review all responses. C.Confidentiality: Respondents should mark any portions of their response that they consider proprietary or confidential. Canada will handle the responses in accordance with the Access to Information Act. D.Follow-up Activity: Canada will meet with each respondent upon request (one-on-one meeting). Following the closing date, the Contracting Authority will follow up individually with all respondents who indicate in their responses that they wish to meet with Canada.

6. CONTENTS OF THE RFI

NOTE: The following documents remain a work in progress, requirements may be added or modified or deleted. Comments regarding any aspect of the following draft documents are welcome.

Attached Documents: PART I - SELECTED REQUEST FOR PROPOSAL (RFP) AND RESULTING CONTRACT CLAUSES ANNEX "A" - STATEMENT OF WORK ANNEX "B" - SITE DATA SUMMARY ANNEX "D" - NATURAL GAS CONSUMPTION BY PROVINCE AND LDC ANNEX "E" - NOTICE OF SITE CHANGE ANNEX "F" - INVOICE RECONCIALIATION FLOWCHART ANNEX "G" - BASIS OF PAYMENT ANNEX "H" - EVALUATION CRITERIA AND SELECTION METHODOLOGY

PART II - QUESTIONNAIRE

NOTE: Although reference is made to the following Annexes, they are not included in this RFI.

ANNEX "C" - CLIENT DEPARTMENT SITE LIST AND LOAD PROFILE

ANNEX "I" - LETTER OF INTENT TO REGISTER WITH LOCAL DISTRIBUTION COMPANIES (LDC)

7. FORMAT OF RESPONSES

A.Cover Page: If the response includes multiple volumes, respondents are requested to indicate on the front cover page of each volume the title of the response, the solicitation number, the volume number and the full legal name of the respondent. B.Title Page: The first page of each volume of the response, after the cover page, should be the title page, which should contain: (i)The title of the respondent's response and the volume number; (ii)The name and address of the respondent; (iii)The name, address and telephone number of the respondent's contact; (iv)The date; and, (v)The RFI number. C.Numbering System: Respondents are requested to prepare their response using a numbering system corresponding to the one in this RFI. All references to descriptive material, technical manuals and brochures included, as part of the response should be referenced accordingly. D.Response to be sent electronically: Canada requests that respondents submit their responses electronically by e-mail to the Contracting Authority define below.

8. ENQUIRIES

Because this is not a bid solicitation, Canada will not necessarily respond to enquiries in writing or by circulating answers to all potential suppliers. However, respondents with questions regarding this RFI may direct their enquiries to:

Contracting Authority: Michael Dong, Supply Team Leader Acquisitions, Western Region 5th Floor, Telus Plaza North 10025 Jasper Ave Edmonton, AB T5J 1S6

E-mail Address: michael.dong@tpsgc-pwgsc.gc.ca Telephone: 780-497-3874

9. SUBMISSION OF RESPONSES

1.Time and Place for Submission of Responses: Suppliers interested in providing a response should email their response to the Contracting Authority identified above by the time and date indicated in this document. 2.Responsibility for Timely Delivery: Each respondent is solely responsible for ensuring its response is delivered on time to the Contracting Authority. 3.Identification of Response: Each respondent should ensure that its name and return address is provided and that the solicitation number and the closing date appear legibly in the subject line of the e-mail.

The Crown retains the right to negotiate with suppliers on any procurement.

Documents may be submitted in either official language of Canada.

Delivery Date: Above-mentioned

The Crown retains the right to negotiate with suppliers on any procurement.

Documents may be submitted in either official language of Canada.