[Federal Register Volume 60, Number 124 (Wednesday, June 28, 1995)]
[Notices]
[Pages 33394-33398]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-15888]
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DEPARTMENT OF ENERGY
Industry Coupled Geothermal Exploration Drilling
AGENCY: Idaho Operations Office, Department of Energy.
ACTION: Solicitation for financial assistance: Industry Coupled
Geothermal Exploration Drilling.
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SUMMARY: The U.S. Department of Energy (DOE) Idaho Operations Office
(ID) is seeking applications for cost-shared research and development
of locating, drilling and testing of new geothermal exploration wells
in the United States. A minimum 50 percent non-federal cost share for
the project is required. This notice is the complete solicitation
document DE-PS07-95ID13348.
DATES: The deadline for receipt of applications is 3:00 p.m. MST,
August 11, 1995. Late applications will be handled in accordance with
10 CFR 600.13.
Prospective applicants should request an application package by
July 7, 1995, (which includes necessary forms, assurances and
certifications), by writing to the DOE Contract Specialist. Facsimile
requests are acceptable. Questions regarding this solicitation should
be submitted in writing to the DOE Contract Specialist no later than
July 14, 1995. Questions and answers will be issued in writing as an
amendment to this solicitation. Preproposal conferences may be
available if a sufficient number of applicants request one. Preproposal
conference requests should be made no later than July 14, 1995.
DOE anticipates that this solicitation will result in the award of
one or more cooperative agreements. Substantial involvement by DOE is
anticipated. All awards are expected to be made by September 30, 1995.
ADDRESSES: Applications shall be submitted to: Procurement Services
Division; Attention: SOL DE-PS07-95ID13348 (Huggins/Bauer); U.S. DOE,
Idaho Operations Office; PO Box 52280; Idaho Falls, Idaho 83405-2280.
FOR FURTHER INFORMATION CONTACT: Wendy L. Huggins, Contract Specialist,
telephone (208) 526-2808, facsimile (208) 526-5548. The Contracting
Officer is Brad Bauer, (208) 526-0090.
SUPPLEMENTARY INFORMATION:
Introduction
This solicitation is issued pursuant to Pubic Law 93-410,
Geothermal Energy Research, Development, and Demonstration Act of 1974;
and Section 2306 of the Energy Policy Act of 1992 (EPACT). The Catalog
of Federal Domestic Assistance Number for this program is 81.087.
Energy efficiency and renewable energy projects entered into by
both the public and private sectors are the cornerstone of DOE's Energy
Partnerships for a Strong Economy. The purpose of various Energy
Partnerships programs is to strengthen the economy and reduce
greenhouse gas emissions. In support of this objective, DOE in
collaboration with the geothermal industry and the electric utilities,
has developed an initiative for furthering the commercialization of
geothermal power. A primary strategy of the initiative is the
acceleration of geothermal development through cost-shared projects.
This solicitation requests applications from industry for one or
more collaborative efforts to support the development of new geothermal
resources. These efforts are aimed towards the commercialization of
this energy source, and an increase in the amount of electrical power
generated from geothermal energy. The U.S. Department of Energy, Office
of Utility Technologies, will provide at least $1,000,000 in funding
for one or more projects. [[Page 33395]]
Objectives
The objectives of this solicitation are to promote the
commercialization of geothermal energy for the production of electrical
power, and to reduce the emission of greenhouse gases in the United
States. By accomplishing these objectives, it is anticipated that jobs
will be created and that the nation's geothermal industry will be
better positioned to compete and win in the global marketplace. The
potential sale of the new power generated by the cost-shared project(s)
and further growth of the geothermal industry will off-set the use of
fossil fuels to generate electrical power, thereby reducing the
nation's emissions of greenhouse gases.
Priorities
To promote the commercialization of geothermal energy, DOE's
geothermal exploration initiative identified the exploration of
previously undiscovered geothermal resources as specific areas for
emphasis in the solicitation of applications for new geothermal power
capacity.
DOE Funding and Cost-Sharing
The project(s) will be cost-shared, with participant(s) providing a
minimum of 50 percent of the costs. Total DOE funding is currently
$1,000,000. DOE will cost share 50 percent of well drilling and drill
site data acquisition costs up to the amount available at the time of
award.
It is intended that the federal funds should be used to help
mitigate a portion of the initial risk associated with the development
of geothermal energy. It is not intended that the project success be
based upon a continuing subsidy of federal dollars. The funds for this
solicitation shall be used for activities directly related to drilling
new geothermal wells and characterizing the geothermal resource.
Qualified Applicants
For profit and not for profit organizations, state and local
governments, Indian tribes and institutions of higher learning.
Applications may include national laboratories, but only as lower tier
participants with funding for their expected costs provided through
their existing arrangements with the Government.
Preparation of Applications
Each application shall be submitted in two volumes. One original
and eight copies of each application are to be submitted. It is
recommended that the total number of pages for the two volumes not
exceed 200 pages. Each Volume should be a ``stand alone'' document.
Volumes one and two of the proposal should be organized with headings
and sub headings that match those in the Evaluation Criteria section of
the Statement of Work.
Applications submitted in response to this solicitation must
provide detailed program management, personnel, drilling and drill hole
data collection, site selection, environmental and budget information
as further specified in this solicitation. The applications should
contain the following information as completely and concisely as
possible consistent with being complete.
1. Cover Page: The cover page is to include the signature, title,
address, telephone number, and fax number of the applicant's authorized
representative. The cover page also is to contain the copy number of
the volume, with the original volume identified as ``Original: Copy No.
1,'' and subsequent copies identified as ``Copy No. 2,'' ``Copy No.
3,'' etc.
2. Table of Contents: The application is to include a table of
contents and page numbers corresponding to the elements outlined in
these preparation guidelines.
3. Technical Summary: The application is to provide a one page
summary that furnishes a concise and informative description of the
proposed project. This summary should contain information which is
releasable to the public.
4. Environmental: The application is to include relevant
information on leasing, permitting, and/or other legal, environmental,
and commercial issues which may effect resource testing and
development.
5. Management Discussion:
a. Program and Management Plan, Organization, and Key Personnel. A
program management plan is to be provided that includes a statement of
work detailing the activities necessary to complete the project. This
plan is to include a project schedule identifying major milestones
associated with the proposed cost-shared portion of the project, and
how these milestones are incorporated into the remaining overall
project work scope.
The management plan is to include the name and roles of the
applicant and each of the participants involved in the project,
including the contractual arrangements between the applicant and
participants. The capabilities and responsibilities of the applicant
and each participant; experience, qualifications, expected time
commitment, and responsibilities of key personnel; and any unique
facilities and/or capabilities which would assure the success of the
project are to be provided, along with information regarding the
applicant's (or appropriate participant's) experience in geothermal
exploration and drilling.
The application is to discuss the composition of the organization
of the applicant and participants from the standpoint of being involved
in, and/or representative of the geothermal industry.
b. Financial Information. The application is to provide a
description of the applicant and all other participants in the project,
including the type of business, history, size, and discussion of the
ownership and/or controlling interest, along with a listing of current
or recent (within the past two years) government contracts, grants,
cooperative agreements, and/or other work by the applicant in this or
related fields. This listing is to include the names of the sponsoring
agency or firm, instrument number, amount of the instrument, subject
area of the instrument, and the name and telephone number of the
contracting officer, or contract specialist. DOE reserves the right to
solicit from available sources relevant information concerning a
proposer's past performance and may consider such information in its
evaluation.
Financial data on the applicant and participants, identifying the
source of cost sharing and the available financial resources, are to be
provided. These data are to include annual financial statements
(balance sheet and income and expense statement) for the past 3 years
for the applicant, as well as for the participants providing cost
sharing and/or performing work.
An estimated cost to perform the tasks as identified in the
proposed statement of work for the overall project is to be provided
along with the basis or rationale supporting these costs. It will be
used to evaluate the reasonableness of the project cost, the probable
cost to the government, as well as to provide an understanding of the
magnitude of the effort required.
6. Cost Sharing: The requested amount of DOE funds to be cost-
shared is to be identified, along with how these funds will be used and
the year in which they will be utilized. The percentage level of the
DOE funds to the total project cost is to be defined. The impact of
DOE's cost share to the viability of the project is to be addressed.
The application is to provide an estimate of the monetary value of
all labor and cash contributions to the project by year and by party
(DOE, applicant, and participants). If cost [[Page 33396]] share is
provided by someone other than the applicant, the application must
include a statement by the providing entity which specifically commits
the labor and cash cost share for use on the project. Note that non-
federal ``cost sharing'' is limited to monetary and labor investment.
Payment of actual costs in the final agreement will only include those
costs that are allocable to the program and allowable as determined in
accordance with the applicable cost principles prescribed in 10 CFR
600.127 for the respective participants and in the cost share ratios to
be defined in the negotiations.
7. Budget: A budget period is an interval of time into which the
project period is divided for funding and reporting purposes. Project
period means the total approved period of time that DOE will provide
support, contingent upon satisfactory progress and availability of
funds. The project periods may be divided into one or more budget
periods. Project periods are not expected to exceed two years. Each
application must contain Standard Forms 424 and 424A. The budget
summary page must be completed for each of the proposed budget periods.
The application should contain full details of the costs regarding the
labor, overhead, material, travel, subcontracts, consultants, and other
support costs broken down by task and by year. Every cost item should
be justified. Further details of the costs may be required if the
application is selected for the award. Items of necessary equipment
should be individually listed by description and estimated cost,
inclusive of tax. The destination and purpose of budgeted travel and
its relevance to the research should be specified. Anticipated
consultant services should be justified and information furnished on
each individual's expertise, primary organizational affiliation, daily
compensation rate and number of days of expected service. Consultant's
travel costs should be listed separately under travel in the budget.
8. Cost Application: In the event there are multiple projects
proposed in a submittal, a separate cost application should be included
for each project proposed for funding. The cost application should have
sufficient detail that an independent evaluation of the labor,
materials, equipment and other costs as well as verification of the
proposed cost share can be performed.
Proprietary Application Information
Applications submitted in response to this solicitation may contain
trade secrets and/or privileged or confidential commercial or financial
information which the applicant does not want used or disclosed for any
purpose other than evaluation of the application. The use and
disclosure of such data may be restricted provided the applicant marks
the cover sheet of the application with the following legend,
specifying the pages of the application which are to be restricted in
accordance with the conditions of the legend:
``The data contained in pages ______ of this application have been
submitted in confidence and contain trade secrets or proprietary
information, and such data shall be used or disclosed only for
evaluation purposes, provided that if this applicant receives an award
as a result of or in connection with the submission of this
application, DOE shall have the right to use or disclose the data
herein to the extent provided in the award. This restriction does not
limit the government's right to use or disclose data obtained without
restriction from any source, including the applicant.''
Further, to protect such data, each page containing such data shall
be specifically identified and marked, including each line or paragraph
containing the data to be protected with a legend similar to the
following:
``Use or disclosure of the data set forth above is subject to the
restriction on the cover page of this application.''
It should be noted, however, that data bearing the aforementioned
legend may be subject to release under the provisions of the Freedom of
Information Act (FOIA), if DOE or a court determines that the material
so marked is not exempt under the FOIA. The Government assumes no
liability for disclosure or use of unmarked data and may use or
disclose such data for any purpose. Applicants are hereby notified that
DOE intends to make all applications submitted available to non-
Government personnel for the sole purpose of assisting the DOE in its
evaluation of the applications. These individuals are required to
protect the confidentiality of any specifically identified information
obtained as a result of their participation in the evaluation.
Statement of Work
1.0 Introduction
DOE hopes to encourage the exploration for, and the development of,
new geothermal resources within the United States by supporting
research determining the nature and location of hydrothermal resources.
By obtaining and providing this information publicly, DOE hopes to
stimulate additional geothermal exploration. In order to attain these
goals, DOE seeks to obtain data from exploration drilling in new
geothermal areas.
2.0 Scope
DOE will pay the Awardee in this solicitation for the data package
associated with locating, drilling and testing of new geothermal
exploration wells in the United States. Total DOE funding is currently
$1,000,000. DOE will cost share 50 percent, up to the amount available
at the time of award, of the cost of drilling a well and acquiring the
minimum required data package as listed below. Highest evaluation will
be given to proposed wells that are truly exploration wells and are
wells in locations that will add the most to the exploration knowledge
base of geothermal resources, rather than step-out wells. The wells
must be at least 3,000 feet in depth and have a bottom hole temperature
of at least 250 degrees celsius. Wells may be either ``slim holes'' or
production-diameter wells.
Data will be collected from the top of the well to the total depth
of the well. In order to participate in this program the well must be
drilled after July 1, 1995, and the data collected must be transferred
to DOE within one year after award.
The Awardee will collect and provide DOE with the following minimum
data package:
Daily drilling reports, drilling and casing program, well
survey plat.
Drill cuttings from the entire drilled interval at a
minimum of each 5 meters (15 feet) in four splits of 500 grams each and
an accompanying lithologic drilling log, and daily drilling report.
Cuttings should not be washed. If the well is cored, a split of any
core recovered is to be delivered to DOE.
Lost circulation amounts, times and depths.
In the case of artesian flow, or if a pumped or otherwise
stimulated flow test is performed, representative samples of formation
water should be collected for chemical analysis. At least 2 liters of
clear, filtered water should be collected in plastic bottles and sealed
to prevent evaporative loss. A 2-liter sample of the drilling fluids in
use prior to sampling should accompany each sample. Chemical analyses
of the samples will be provided to DOE.
Pressure and temperature logs of the hole from
approximately 500 feet to total depth are required, prior to setting
casing at all depths below 500 feet.
Proposers are encouraged to provide results from any initial well
tests in the data set, including flowrate, pressures from surface
metering instrumentation, [[Page 33397]] and raw pressure transient
data. Such tests are to be witnessed by an experienced geothermal
engineer.
Additional data to be collected by the proposer (such as borehole
televiewer logs, sonic logs, electrical logs, etc.) may also be offered
to DOE. The identification of additional data to be collected and
provided to DOE will be used to evaluate the value of the data package
to DOE during the proposal evaluation.
If the Awardee(s) determines and justifies that the completed
hole(s) are of no economic value, the Awardee(s) shall plug and abandon
the hole(s) and restore the site(s) in accordance with governing
regulations. If for any reason the hole is not plugged and abandoned
within 6 months after well completion, the hole shall become the legal
and financial responsibility solely of the Awardee(s).
The Awardee will identify all reports, plans, permits, licenses and
other items required by governmental regulatory agencies for the
performance of this work, the agency whose requirement the item
fulfills, and the actual or projected submittal and agency approval
dates. Any costs incurred prior to award will not be considered project
costs, even though the effort was in fulfillment of this task.
The Proposer shall confirm that all financial arrangements for
implementation of the project and provide DOE with evidence that
project financing is sufficient to complete the project prior to
performance of any work under this Agreement. Details may be
negotiated.
Qualification Criteria
To qualify for consideration under this financial assistance, the
proposer must meet the following qualification criteria. Prior to the
detailed evaluation, each proposal will undergo a preliminary review to
assure the qualification criteria are satisfied. Proposals which do not
meet the qualification criteria will not receive a comprehensive
evaluation and will be eliminated from further consideration. Proposers
of eliminated proposals will be notified in writing.
a. The proposed site must be within the United States.
b. The data must come from a well at least 3,000 feet deep.
c. The proposer must agree to minimum data collection requirements
(see Statement of Work, Part 2.0).
d. The well must be drilled after July 1, 1995.
e. The proposer must provide assurance that the well will be
drilled and data submitted to DOE within two years after award.
f. The proposer must provide documentation in the form of a lease,
agreement or ownership providing a legal right of access to drill the
hole at the proposed location.
g. The proposer must demonstrate the ability to successfully meet
National Environmental Policy Act and other local, State, and Federal
requirements for similar projects.
Evaluation Criteria
Proposals that meet the Qualification Criteria will undergo a
comprehensive evaluation in accordance with the Evaluation Criteria
listed below and considering any relevant public information. The
Evaluation Criteria parallel the information required in Volume I and
Volume II of the submitted proposals as outlined below. This
information forms the basis for evaluation. The criteria are listed in
descending order of importance within each volume.
Criterion 1 comprises half the weight while Criterion 2 and 4 are
equal in weight and twice as much as Criterion 3.
Volume I--Evaluation Criteria
Criterion 1: Resource Potential--The potential of the location to
add to the inventory of developable geothermal sites will be evaluated
based on submitted exploration data, technical analysis and rationale
provided in the proposal considering the following factors:
a. Locations in previously undrilled areas will be given priority
over locations considered to be step-outs or in-fill locations. The
greatest weight will be given to locations that have a high potential
of being a new ``field discovery.''
b. The potential that the well and its proposed location will
provide data that will expand or enhance the present knowledge of the
resource potential and exploration methods within the United States.
c. The potential that the proposed depth of the hole will provide
for evaluation of a deep subsurface geothermal system.
d. The amount of surface and subsurface data contained in the
proposal that is of high quality and relevant to evaluating geothermal
potential exploration methods, including geophysical, hydrological, and
geological reconnaissance data and results.
e. The quantity and quality of previously unreleased data contained
in the proposal that can be made available to the public domain.
Criterion 2: Technical approach to the project--
a. The quality, type and quantity of data to be gathered during the
project in addition to the minimum data requirements of the Statement
of Work, Part 2.0.
b. The content, adequacy and completeness of data collection plans.
c. The suitability of planned hole completion and maintenance for
the data collection proposed, plugging and abandonment and site
maintenance (including drilling fluid disposal, health, safety and
environmental considerations) and restoration plans.
d. The lack of any restrictions on release of data collected during
and subsequent to the drilling of the well and included in the proposed
data package.
e. The lack of restriction on release and publishing by DOE of
interpretation or integration of the data collected.
Criterion 3: Business approach to the project--
a. Qualifications of the proposer, subcontractors and key personnel
including the extent of experience in geothermal well drilling, data
collection, business related area and capabilities to carry out the
data collection proposed.
b. The completeness and adequacy of the proposed management plan,
including institutional concerns, proposed solutions and impact on the
project.
Volume II--Evaluation Criteria
Criterion 4: Financial Considerations--
a. Cost-share plan--The plan for cost-sharing will be evaluated on
the percentage in excess of 50 percent of the drilling and data
acquisition costs to be borne by the proposer. More consideration may
be given to projects with a greater-than-50 percent cost share. DOE
cost share is limited to well drilling and drill site data acquisition
activities. The applicant must cost share those portions of the project
that are excluded from DOE cost share. The application will be
evaluated on the nature and amount of cost-sharing. The applicant must
demonstrate how it will meet its cost share. This demonstration will
occur through the adequacy (e.g., completeness, relevancy,
substantiation) of the cost portion of the application. Cash and cash-
equivalent items (e.g., direct labor) are required.
b. Data package--The plan will be evaluated on the data to be
collected and reported relative to the total DOE cost for the project.
[[Page 33398]]
c. Project financial plan--The project financial plan will be
evaluated for the ability of the proposer to commit resources to
finance the non-DOE share of the entire project and the adequacy of the
proposer's financial condition.
Project cost/budget summary--This information should be provided
for the proposed project. Reasonableness of cost to the government will
be considered. The project cost/budget summary will be considered as an
indication of the offeror's understanding of the job.
Evaluation of Applications
Applications submitted will be subject to a preliminary review by
DOE to check for completeness and accuracy. Applications that are
clearly non-responsive or do not provide evidence of cost-sharing
agreements, will be rejected.
DOE reserves the right to support all, none, or certain parts of
the applications submitted in response to this solicitation.
The information presented in the each application will be evaluated
to determine the degree to which the stated objectives and priorities
of this solicitation are met. The following is a summary listing of the
criteria which will be considered in the evaluation and relative
importance in the ranking process: resource potential, technical
approach, cost- sharing, and business approach.
Issues relating to leasing, permitting, and related activities for
the project development will be considered along with the environmental
restrictions. The environmental evaluation will consider the impact of
the proposed activities at the project site.
The proposed cost of the project will not be point scored.
Applicants are advised, however, that notwithstanding the lower
relative importance of the cost considerations, the evaluated cost may
be the basis for selection. In making the selection decision, the
apparent advantages of individual technical and business applications
will be weighed against the probable cost to the government to
determine whether the technical and business approaches (excluding cost
considerations) are worth the probable cost differences.
Merit Reviews
All applications will be evaluated under the procedure for
``Objective Merit Review of Discretionary Financial Assistance
Applications'', Federal Register, May 31, 1990, Vol. 55, No. 105 (copy
provided upon request), and the criteria and programmatic
considerations set forth in this solicitation. In conducting this
evaluation, the Government may utilize assistance and advice from non-
Government personnel. Applicants are therefore requested to state on
the cover sheet of the applications if they do not consent to an
evaluation by such non-Government personnel. The applicants are further
advised that DOE may be unable to give full consideration to an
application submitted without such consent.
General Conditions and Notice to Applicants
a. Applicants: All applicants will be notified in writing of the
action taken on their applications in approximately 90 days after the
closing date for this solicitation, provided no follow-up
clarifications are needed. Status of any application during the
evaluation and selection process will not be discussed with the
applicants. Unsuccessful applications will not be returned.
b. False Statements: Applications must set forth full, accurate,
and complete information as required by this solicitation. The penalty
for making false statements is prescribed in 18 U.S.C. 1001.
c. Application Clarification: DOE reserves the right to require
applications to be clarified or supplemented to the extent considered
necessary either through additional written submissions or oral
presentations.
d. Amendments: All amendments to this solicitation will be mailed
to recipients who submit a written request for the DOE application
package.
e. Applicant's Past Performance: DOE reserves the right to solicit
from available sources relevant information concerning an applicant's
past performance and may consider such information in its evaluation.
f. Commitment of Public Funds: The Contracting Officer is the only
individual who can legally commit the Government to the expenditure of
public funds in connection with the proposed award. Any other
commitment, either explicit or implied, is invalid.
g. Effective Period of Application: All applications should remain
in effect for at least 180 days from the closing date.
h. Availability of Funds: The actual amount of funds to be
obligated will be subject to availability of funds appropriated by
Congress.
i. Loans under DOE Minority Economic Impact (MEI) Loan Program:
Applicants are advised that loans under the DOE Minority Economic
Impact (MEI) Loan Program are not available to finance the cost of
preparing an application pursuant to this solicitation.
j. Assurances and Certifications: DOE requires the submission of
preaward assurances of compliance and certifications which are mandated
by law. The assurance and certification forms will be provided in the
application package.
k. Questions and Answers: Questions regarding this solicitation
should be submitted in writing to the DOE Contract Specialist no later
than July 14, 1995. Any answers will be issued in writing.
l. Preaward Costs: The government is not liable for any costs
incurred in preparation of an application. Awardees may incur preaward
costs up to ninety (90) days prior to the effective date of award.
Should the awardee take such action, it is done so at the awardee's
risk and does not impose any obligation on the DOE to reimburse such
costs if an award is not made.
m. Patents, Data, and Copyrights: Applicants are advised that
patents, data, and copyrights will be treated in accordance with 10 CFR
600.33.
n. Environmental Impact: An applicant environmental checklist will
be provided in the DOE application package. Award will not be made
until the environmental checklist is completed. Review of the
environmental checklist and the application will be conducted by DOE as
required by 10 CFR 1021.216.
o. EPACT: Applicants shall be required to comply with Section 2306
of the Energy Policy Act of 1992 (EPACT) [42 U.S.C. 13525], as
applicable.
p. Buy American Act: Any organization receiving an award under this
solicitation must comply with the Buy American Provisions of Section
307 of Public Law 103-332, Department of the Interior and Related
Agencies Appropriations Act of 1995.
Dated: June 16, 1995.
R.J. Hoyles,
Director, Procurement Services Division.
[FR Doc. 95-15888 Filed 6-27-95; 8:45 am]
BILLING CODE 6450-01-P
