Jul 19, 2016 - monies will fund projects demonstrating alternative applications of NG ... CHP is the concurrent producti
NRCan-5000024598 ADVANCE CONTRACT AWARD NOTICE (ACAN)
1.
Title
Technical Due Diligence on Combined Heat and Power (CHP) Demonstrations using Natural Gas
2.
Definition
An Advance Contract Award Notice (ACAN) allows departments and agencies to post a notice, for no less than fifteen (15) calendar days, indicating to the supplier community that it intends to award a good, service or construction contract to a pre-identified contractor. If no other supplier submits, on or before the closing date, a Statement of Capabilities that meets the requirements set out in the ACAN, the competitive requirements of the government's contracting policy have been met. Following notification to suppliers not successful in demonstrating that their Statement of Capabilities meets the requirements set out in the ACAN, the contract may then be awarded using the Treasury Board's electronic bidding authorities. If other potential suppliers submit Statement of Capabilities during the fifteen calendar day posting period, and meet the requirements set out in the ACAN, the department or agency must proceed to a full tendering process on either the government's electronic tendering service or through traditional means, in order to award the contract.
3.
Background
In 1981, the Governments of Canada and Alberta established the Market Development Incentive Payments (MDIP) Memorandum of Agreement which allocated funds to develop new markets for NG and expand its’ use. Remaining monies will fund projects demonstrating alternative applications of NG through a Transportation Stream and a Combined Heat and Power (CHP) Stream. This project supports the objectives of the MDIP fund by advancing the use of NG in the CHP Stream. CHP is the concurrent production of electrical and thermal energy from a single fuel source, in this case natural gas, and has the potential to reduce primary energy consumption and associated GHG emissions. The primary driver for most CHP installations is the cost effective use of natural gas to generate electricity on-site, thereby reducing electricity purchases from the grid. As a form of distributed generation – CHP can improve grid resilience where back-feed to the grid is practiced. CHP can also improve electricity security when the grid is unavailable. From 2011 to 2016, the Market Development Incentive Payments (MDIP) program made three strategic investments to demonstrate the potential for medium scale CHP systems in Canada. This analytical report will attempt to identify and to draw lessons from the technical challenges these projects faced, and is intended to fill a critical gap in information for stakeholders and project developers who may be considering the deployment of medium scale CHP systems in Canada.
4.
Rationale
As electricity costs increase and the price of natural gas remains near historical lows, the need for economical, efficient and sustainable power and energy technologies is beginning to favour the adoption of distributed generation systems. While large scale CHP plants have been applied in primary industries such as pulp and paper for many decades, experience with medium scale systems (100 to 500 kWe ) is clearly lacking in Canada despite the large number of businesses of all types that would benefit from generating some or all of their electricity needs. Even smaller micro scaled cogeneration systems (< 25 kWe) are now being introduced in Japan and Europe where favourable incentives are driving the introduction of this new technology. Page 1 of 7
NRCan-5000024598
The Canadian Gas Association (CGA) has recently identified the adoption of micro-cogeneration systems as a strategic priority going forward based on the state of the industry abroad. SaskEnergy and other provinces have also indicated interest in this technology. Here again well documented early adoption experiences will be important for establishing the technical challenges and performance benefits of the technology.
5.
Objective
Because of the high interest in medium scale (100- 500 kWe) CHP technologies in Canada, an opportunity exists to identify and draw lessons from the technical challenges experienced within demonstration projects that received MDIP funding support. The results of this study should provide the following information, in four (4) main themes: 1)
Develop a sound chronology/timeline of project events, through: o review of project reporting and approved correspondence o on-site interviews, telephone conversations and email correspondence with key project personnel
2) Source and assemble a binder of approved Technical Data Sheets (TDS) including a summary of any performance guarantees and-or maintenance planning provided, in relation to the: o cogeneration unit proper o mechanical equipment and subsystems o electrical equipment and subsystems o thermal equipment and subsystems o control and data acquisition systems 3) Identify the key technical challenges faced during installation, start-up, commissioning and initial operation, including: o Installation of equipment and subsystems o Tie-in of heat recovery equipment and subsystems o Tie-in of electrical equipment and subsystems o Start-up and commissioning of overall system o Control system tuning and optimization of set-points o Instrumentation and data acquisition of energy related values o Calculation and reporting of energy balance to assess project impacts 4)
6.
Development of constructive/actionable advice that can be shared with others planning medium scale (100 – 500 kWe) CHP projects, including: o Clear description of technical challenges faced within the projects o Summary of technical solutions tried and relative success achieved o Insights and lessons learned both within and across projects o Residual Opportunities-for-Improvement (OFI) identified and prioritized o Recommendations that can be made to improve project outcomes o Early indication of best practices for calculating and reporting of energy balance to assess project impacts
Definitions and Applicable Documents
The following list of definitions and/or acronyms are relevant to, and form a part of, this Statement of Work (SOW). The list of definitions below is not exhaustive, but rather is intended to ensure clarity of understanding of critical
Page 2 of 7
NRCan-5000024598 terms used within this SOW. It is therefore imperative that questions of interpretations be directed to the NRCan Departmental Representative. Term/Acronym Constraint
Deliverable
Transporation and Alternative Fuels (TAF) Division
NRCan CanmetENERGY - Ottawa Alternative Energy Lab CHP TDS OEE The Roadmap
7.
Definition A Constraint is an operating reality within NRCan’s environment that may impede the Contractor’s ability to complete the work described in this SOW. Constraints may require effort or ingenuity on the part of the Contractor to ensure the satisfactory completion of its work under this Contract. A Deliverable is defined as a tangible, measurable output of the work related to the Contract, that must be delivered by the Contractor to the NRCan Departmental Representative, in accordance with the terms of the Contract, and that must be satisfactorily acceptable to the NRCan Departmental Representative in order to satisfy the Contractor’s obligations under the Contract. The Transportation and Alternative Fuels Division: administers Natural Resources Canada’s transportation and alternative fuels programs; provides analyses and develops tools that are used by policy makers so that they may make informed decisions with respect to alternative and renewable fuels; 1) provides Canadians with objective information concerning energy efficiency related to transportation and use of alternative and renewable fuels. Natural Resources Canada. A division of Natural Resources Canada Group within CanmetENERGY tasked with R&D related to cogeneration systems and technologies Combined Heat and Power Technical Data Sheets approved by vendors for use within project The Office of Energy Efficiency http://oee.nrcan.gc.ca/ Refers to The Natural Gas Use in the Canadian Transportation Sector Deployment Roadmap. A collaborative effort which brought together stakeholders from governments, industry, non-governmental organizations and academia, to discuss the potential for NG use in the medium- and heavy-duty transportation sector, explore strategies for overcoming barriers associated with its’ use, and develop recommendations for deployment.
Tasks, Deliverables, Milestones and Schedule
The contract will conclude March 31st, 2017. The study will target current users: Tasks/Activities
Deliverables/ Milestones
Communications: Liaise and attend meetings in Ottawa with NRCan representatives. Conference calls in lieu of face to face meetings will be scheduled when possible. Maximum number of face to face meetings will be 4 over the period of the contract. Weekly progress report by email required. Trip reports required within 30 days.
Attend face to face meetings as required. Submit weekly progress report by email. Submit trip reports within 30 days of travel.
Page 3 of 7
Time Schedule
Include for time required within project plan (subject to NRCan approval)
NRCan-5000024598
Task I: Develop Chronology of Project Events Task 2: Source Technical Data Sheets (TDS) Task 3: Identify Key Technical Challenges Task 4: Develop Actionable Advice Task 5: Reporting
Provide proposal to NRCan for comment and approval
To be determined with the Consultant
Bi-weekly or monthly progress report (by email) Face to face meetings (limited to 4) Final report (index) Final report (appendices) Final report (first draft of discussion) Final report (final draft with revisions) Final presentation of findings
7.1
Final Deliverables
A ‘Final Report’ in MS:Word (English only); A “Final Presentation of Findings” in MS:PowerPoint (English only)
Please note: cover report must contain contract number. Executive summary must contain the name of the Contractor and Contractor coordinates and Contract award date.
8.
Language of Work
NRCan is under the obligation to respect the spirit and the letter of the Official Languages Act. The Contractor shall have the ability to perform all or part of the work in either Official Language (English or French). However, all deliverables produced under this Contract shall be in the English language. Deliverables will be translated into the French language as required.
9.
Trade Agreements
Applicable Limited Tendering Provision under NAFTA (Article 1016.2) 1016.2(b) - where, for works of art, or for reasons connected with the protection of patents, copyrights or other exclusive rights, or proprietary information or where there is an absence of competition for technical reasons, the goods or services can be supplied only by a particular supplier and no reasonable alternative or substitute exists; 1016.2(d) - for additional deliveries by the original supplier that are intended either as replacement parts or continuing services for existing supplies, services or installations, or as the extension of existing supplies, services or installations, where a change of supplier would compel the entity to procure equipment or services not meeting requirements of interchangeability with already existing equipment or services, including software to the extent that the initial procurement of the software was covered by this Chapter;
Page 4 of 7
NRCan-5000024598 Applicable Limited Tendering Provision under Canada-Chile (Article Kbis-09) 1016.2(b) - where, for works of art, or for reasons connected with the protection of patents, copyrights or other exclusive rights, or proprietary information or where there is an absence of competition for technical reasons, the goods or services can be supplied only by a particular supplier and no reasonable alternative or substitute exists; Kbis-09 (c) - for additional deliveries by the original supplier that are intended either as replacement parts, extensions, or continuing services for existing equipment, software, services or installations, where a change of supplier would compel the entity to procure goods or services not meeting requirements of interchangeability with existing equipment, software, services, or installations; Applicable Limited Tendering Provision under Canada-Peru / Canada-Colombia (Article 1409) 1409 (b) where the goods or services can be supplied only by a particular supplier and no reasonable alternative or substitute goods or services exist for any of the following reasons: (i) the requirement is for a work of art, (ii) the protection of patents, copyrights or other exclusive rights, or (iii) due to an absence of competition for technical reasons; 1409 (c) for additional deliveries by the original supplier of goods or services that were not included in the initial procurement where a change of supplier for such additional goods and services: (i) cannot be made for economic or technical reasons such as requirements of interchangeability or interoperability with existing equipment, software, services, or installations procured under the initial procurement, and (ii) would cause significant inconvenience or substantial duplication of costs to the procuring entity; Applicable Limited Tendering Provision under AIT (Article 506.12) 506.12(b) – where there is an absence of competition for technical reasons and the goods or services can be supplied only by a particular supplier and no alternative or substitute exists;
10.
Title to Intellectual property
Natural Resources Canada has determined that any intellectual property arising from the performance of the Work under the Contract will vest in Canada, on the following grounds:
11.
where the material developed or produced consists of material subject to copyright, with the exception of computer software and all documentation pertaining to that software.
Contract Period
The contract period shall be from date of award to March 31, 2017.
12.
Estimated Cost
The estimated maximum value of the contract is $75,000.00, before applicable taxes.
Page 5 of 7
NRCan-5000024598
13.
Exception to the Government Contracts Regulations and applicable trade agreements
Sole Source Justification - Exception of the Government Contract Regulations (GCR): (d) Only one person or firm is capable of performing the contract NRCan (CANMet) who are piloting and demonstrating new energy efficient technology requires the services of a resource as the key person who has both the experience and field expertise, which is a critical component of the study. 1. The Contractor must have a minimum of ten (10) years of practical hands-on experience with the many technical aspects involved with design and commissioning of electrical, mechanical, and thermal recovery systems for gaseous fueled cogeneration units; which is the innovative technology being demonstrated within this project 2. The Contractor must have a minimum of ten (10) years of first person technical experience developing and testing control systems for Natural Gas engines, with demonstrated experience either teaching related courses at institutions of higher learning or prosecuting one or more patents related to innovative natural gas fueled engine developments. 3. The Contractor must have led the installation and commissioning of more than three natural gas fueled reciprocating engine based power systems with at least one being equipped for energy recovery as well. Specifically, the contractors shall have performed the related site work and client liason functions, including the writing and defending of project completion reports for technical aspects of the work. 4. The Contractor must have first-hand experience selecting, specifying and configuring system control and data acquisition systems for reciprocating engine based systems. 5. The contractor must have first-hand experience investigating electrical issues related to grid-tie connections including off-grid operation and-or black start capability.
14.
Name and Address of the Proposed Contractor
Jim Larocque 8 Forsyth Lane Ottawa, ON K2H 9G9
15.
Inquiries on Submission of Statement of Capabilities
Suppliers who consider themselves fully qualified and available to provide the services/goods described herein, may submit a Statement of Capabilities in writing, preferably by e-mail, to the contact person identified in this Notice on or before the closing date and time of this Notice. The Statement of Capabilities must clearly demonstrate how the supplier meets the advertised requirements.
16.
Closing Date
Closing Date: Closing Time:
10 August 2016 2:00 p.m. EDT
Page 6 of 7
NRCan-5000024598
17.
Contract Authority
Valerie Holmes Procurement Specialist Natural Resources Canada 580 Booth Street, 5th Floor. Ottawa, ON K1A 0E4 Telephone: (343) 292-8371 Fax: (613) 947-5477 E-mail :
Page 7 of 7
