CHARLES COUNTY GOVERNMENT Department of Fiscal and Administrative Services Purchasing Division Telephone: 301-645-0656 November 13, 2014 RFP NO. 15-02 BIOSOLIDS MANAGEMENT ADDENDUM NUMBER TWO TO: All Offerors Please be advised of the following modification(s) & information related to Request for Proposals 15-02. These modifications, comments, and attachments are hereby made a part of the solicitation documents to the same extent as if bound therein. The due date for questions has passed and the due date for proposals has changed (see Changes below). I. Changes, Additions, and Modifications to the RFP A. Changes 1. Part I, Section 1.5 Solicitation Schedule (page I-2) Delete the strikethrough text and replace with the bold, italicized text: Milestone Date RFP Published October 2, 2014 Pre-Proposal Meeting & Site Visit #1 Site Visit #2 October 15, 2014 at 10:00 am October 22, 2014 at 10:00 am Site Visit #3 Last Day for Questions October 28, 2014 at 10:00 am October 29, 2014 before 4:30 pm Last Day for Addendums November 13 December 11, 2014 Proposals Due to County November 21 December 18, 2014 before 11:00 a.m. 2. Part I, Section 1.13 Performance and Payment Bonds (page I-6) Add the bold, italicized text below: 1
A Performance Bond and Labor & Material Payment Bond in the amount of onehundred percent (100%) of the annual contract price will be required for this project and contract, from sureties licensed to do business in the State of Maryland and satisfactory to the COUNTY, and shall be submitted to the County at the time of contract execution by the Offeror within the timeframes required herein. Premiums for the bonds described above shall be paid by the Contractor. Bonds shall contain a provision that it shall not be cancelled, non-renewed or materially altered without at least ninety (90) days written prior notice to the County. 3. Part I, Section 3.0 Proposal Content, Section 2B Land Disposal Sites (page I- 13) Add the bold, italicized text to the paragraph below: Section 2B - Land Disposal Sites Attach summaries of existing permits available for sites that are intended to be used for biosolids disposal following the award of this Contract. Indicate the remaining capacity for biosolids disposal at each site. Also attach copies of the first page or applicable summary page of existing permits issued by the State regulatory agencies for the transporting, storage, and land application of biosolids that contains the name of the permittee, site name, permit number, issuance date, expiration date, and issuing state. Describe additional sites to be permitted to meet the requirements for one-year worth of permitted capacity within ninety (90) days of the Notice-to-Proceed. 4. Part I, Section 6.4 Insurance (page I-20) Delete the original text in its entirety and replace with the bold, italicized text below: The Contractor shall provide, at their expense, the following: Contract Pollution/Environmental Liability Insurance with limits of at least $1,000,000 each occurrence and $3,000,000 aggregate. Comprehensive automobile bodily injury and property damage insurance covering all vehicles whether owned, hired, or non-owned operated by/or on behalf of the Contractor in the performance of this contract with not less than the following units: o Bodily Injury: $1,000,000 per person $2,000,000 per occurrence o Property Damage: $500,000 per occurrence The Contractor shall also obtain and pay premium for the following: Workmen s Compensation in compliance with Maryland Statutory Limit. Comprehensive General Liability in an amount not less than $2,000,000 2
(combined personal injury and/or property damage) per occurrence subject to $2,000,000 aggregate. Offerors limits may be covered by a combination of the above with excess/umbrella insurance, subject to written approval by the County. The successful Offeror shall provide the County with Certificates of Insurance evidencing the coverage required by this solicitation prior to award of a contract for all insurance required. The following certificates shall name The County Commissioners of Charles County (or other name as directed by the County) as an additional named insured: Comprehensive automobile bodily injury and property damage insurance Comprehensive General Liability All Certificates shall reference the solicitation name and number, and have an ending date that covers the entire contract term or extension period. Such certificates shall provide that the County be given at least thirty (30) days prior written notice of any cancellation of, intention to not renew, or any material change in such coverage. The Contractor shall provide the County with copies of the Declarations and Exclusions for the Professional Liability insurance. If the insurance obtained requires deductibles, the Contractor shall pay all costs not covered because of such deductibles. Providing insurance as required herein does not relieve the successful Offeror of any responsibility or obligations ensuing as a result of the contract award, or for which the Offeror may be liable by law or otherwise. Proof of Insurance will be required and must be submitted prior to final execution of the Contract by Charles County Government. 5. Part III, Section 2.10.1 General (page III-6) Add the bold, italicized text below to the end of the second paragraph: The Contractor will be paid within 30 days after receipt of the accurate and approved monthly invoice. 6. Part III, Section 2.10.3 Measurement of Biosolids and Lime (page III-7) Add the bold, italicized text below to the end of bullet 5: The County shall reimburse the Contractor the actual cost of these weight tickets provided costs are properly invoiced and receipted with the monthly invoice submission and approved by the County. 3
7. Part III, Section 2.23 Contaminated Biosolids Add the bold, italicized text below: Part III, Section 2.23 Contaminated Biosolids. The Contractor, at the written approval of the County, shall handle and dispose of any biosolids that may be contaminated by hazardous materials (as defined by applicable law), including concentrations of PCBs over 50 parts per million (PPM). The County shall reimburse the Contractor the actual costs for disposal of contaminated biosolids with allowance for a ten (10) percent markup over actual invoiced costs. Actual disposal costs shall be properly documented and submitted with the monthly invoice. 8. Part I, Section 2.4 Term of Contract (page I-10) Add the bold, italicized text below to the end of the section: Cost Increase due to Regulatory Conditions/Requirements In the event that, after the date of Contract execution, the Contractor s cost of performance hereunder increases due to one or more of the following, the Contractor shall be entitled to compensation for such documented increased costs only, with no profit to the Contractor thereon: (i) A change in Federal, State, or local law or ordinance; (ii) Performance requirements imposed through orders or judgments of any Federal, State or local court, administrative agency or governmental body that directly impacts the performance of this Contract; and/or (iii) A change in permit conditions or requirements. B. Attachments 1. Attachment A Site Visit #3 Sign In Sheet 2. Attachment B Dewatering Facility Electrical Usage III. Written Question Received through 10/29/2014 Question 1 Question: What is the price being charged to Charles County for the current biosolids contract? Can you please provide a copy of the most recent invoice detailing the specific billing procedures? Response: This information is not relevant to the future services being solicited. Question 2 Question: Part I, Section 1.13 PERFORMANCE AND PAYMENT BONDS -Paragraph states "Bond in the amount of one-hundred percent of the contract price will be required for this Project and contract RFP # 15-02 does not appear to stipulate an annual bond renewal? Is it acceptable to have an "Annual Renewable Bond" for each base year of the contract for the annual 4
cost of the estimated 3,900 dry tons per year? What are the requirements of the Performance Bond and Material and Payment Bond that is presently in place with the current Contractor? Please provide copies. Response: The current Performance Bond and Material and Payment Bond in place with the current Contractor are negligible to the work solicited in this Contract. The County will not provide these copies due to the reason above. See Item I.A.2 above regarding the bonding requirements for this project. Question 3 Question: Part I, Section 3.0 PROPOSAL CONTENT, Section 2A - Work Plan- This section goes into great detail regarding process descriptions, dewatering and lime stabilization equipment operation and maintenance, etc Does the dewatering facility have an Operations and Maintenance Manual for the operator and equipment? Please provide copies. Does the lime stabilization facility have an Operations and Maintenance Manual? Please provide copies. Does the odor control system have an Operations and Maintenance Manual? Please provide copies. What chemicals are used by the current Contractor in the dewatering, lime stabilization, and odor control operations? Please provide copies of MSDS reports. Response: To be addressed in a future addendum. Question 4 Question: Part I, Section 3.0 PROPOSAL CONTENT - Section 2B - Land Disposal Sites Last paragraph, Page 1-13 states "Also attach copies of existing permits issued by the State regulatory agencies for the transporting, storage and land application of biosolids." Since there are typically only a few transportation and storage permits, submitting a copy of the complete permit is not too burdensome, but submitting copies of all land application permits is quite a substantial stack of paper. Maryland issues individual permits for each site and an average permit consists of approximately 20 pages. The majority of the permit is boiler plate regulatory language. Is it acceptable to submit the summary of existing permits with a copy of the front permit page which shows permittee, site name, permit#, issuance date and expiration date? After contract award, the Successful Offeror could submit complete copies of all permits? Response: See Item I.A.3 above regarding permit submission requirements. Question 5 Question: Part I, Section 6.4 INSURANCE - First paragraph states "Contractor shall provide Professional Liability Insurance.... Professional Liability insurance is typically associated with engineering, design and consulting projects, is it acceptable to substitute Pollution Liability Insurance in lieu of Professional Liability Insurance? Response: See Item I.A.4 above regarding insurance. Question 6 Question: Part I, Section 6.4 INSURANCE - Last paragraph, Page 1-20 states "Such certificates shall provide that the County be given at least sixty (60) days prior written notice of any 5
cancellation of Our insurance company informed us that a 60 day notice of cancellation (NOC) is not available and that notification timeframe is contrary to Maryland contract law. Is it acceptable to use Maryland standards of a 10 day NOC in lieu of the 60 days? Response: See Item I.A.4 above regarding insurance. Question 7 Question: Part Ill, Section 2.10.4 Electric Power- Electric Usage - Paragraph states "Successful Offeror shall be responsible for paying for the utilization of power for these areas at the current electrical utilities billing rate (sub-metering kilowatt hours (x) the current SMECO rate)." Appendix 2- Electric Usage -lists 2012 & 2013 historical KWH usage. What is the current SMECO rate? The KWH usage fluctuates greatly from month to month. Can you please provide KWH usage and SMECO rates for each month in2014? Response: See Attachment B. Question 8 Question: One Belt Filter Press (BFP) is currently not operational Can you please provide the details of the problem(s) associated with the inoperable BFP? Response: The Belt Filter Press is operational. Question 9 Question: Is there a spare parts inventory for any of the equipment the Successful Offeror would assume under this contract? Response: No. Question 10 Question: What is the average ratio of digested sludge vs. secondary sludge that is sent to the BFP's for dewatering? Response: An answer cannot be provided. We do not understand the question. Question 11 Question: Part I, pg. I-6, Section 1.13: This is a 5-9 year contract. Requiring bonds covering 100% of the contract price (presumably for the guaranteed 5 year term) would be prohibitively expensive and not provide the County with significantly more protection than one year bonds renewed every year. Accordingly, Bidder requests that the bonds be limited to 100% of the contract price for one year of the contract, renewed annually. Further, the floor of 50% means that in year 5, when only 20% of the work remains to be performed, the bond must be at 50% of the 5- year price which would exceed the maximum conceivable loss that the County would suffer if the successful failed to perform in the final year of the contract. Response: See Item I.A.2 above for changes related to bonding. 6
Question 12 Question: Part I, pg. I-8, Section 1.24: This section states that after final scores are computed, discussions may be conducted with responsible Offerors whose Proposals have been determined by the Evaluation Committee to be eligible for award. Can more than one Offeror be determined as eligible for award? If so, is the intent to have discussions with more than one Offeror that was determined as eligible for award? Response: The County maintains the right to interview and/or hold discussions with any or all Offerors. Question 13 Question: Part I, pg. I-17, Evaluation Criteria, #1.e.: The issue of capital investments for equipment replacement will be approached differently by each Proposer, and will occur in different periods of the initial term, and may not be scheduled until potential extensions periods. Proposed capital improvements effects unit pricing and will therefore have a different impact for each proposal submitted and evaluated by the County. What metrics will be used by the County during the evaluation process to determine each individual Proposer s rankings (in light of the variability of capital investments to County facilities in terms of total dollar amounts, timing of each investment, and the County s determination of the near-term suitability and post-contract long-term value for equipment selected and proposed for replacement)? Response: To be addressed in a future addendum. Question 14 Question: Part I, pg. I-20, Section 6.2: Excluding only the indemnitee s sole negligence may not be enforceable in Maryland. Bidder understands that Maryland law generally prohibits indemnifying a party for its intentional acts or willful, wanton, reckless or grossly negligent acts. Bidder prefers that its indemnification obligations be limited to its proportional responsibility for the damages. Response: To be addressed in a future addendum. Question 15 Question: Part II, pg. II-6, Section 1.6.B : Charging liquidated damages for delay and terminating the contractor with the contractor responsible for cover costs renders the delay liquidated damages a penalty (and a windfall to the County), which are unenforceable. Bidder recommends that, to maintain the enforceability of County s remedies, the County be required to choose between cover damages and delay liquidated damages. Response: To be addressed in a future addendum. Question 16 Question: Part III, pg. III-3, Section 2.4: This section indicates that the Successful Offeror shall operate at a level which prevents storage in the thickeners and to keep biosolids at normal levels at County aerobic holding tanks, or as otherwise directed to prevent biosolids storage which might escalate overflow and/or recycle solids. Can this be explained further? What are considered normal levels and how was this determined? Are any or all aerated storage tanks available for use? Is there a minimum and/or maximum storage tank level that should not be exceeded and why? Historically, what has been tried or practiced from an operations standpoint and what was the outcome? 7
Response: Historically a low level of 25% allows for getting through the weekend without overflow from the digesters and still allows the diffusers to provide a good mix. A maximum of 90% typically allows space to prevent foam overflow. Digesters #6 through #11 are in use for digested sludge, #1 and #5 for skimmings and #3 and #4 for septage receiving; #2 is the only digester not currently in use. Question 17 Question: Part III, pg. III-5, Section 2.7: Does maintenance include repair and replacement? That is, if equipment fails for a reason other than Contractor s failure to maintain it in accordance with manufacturer s recommendations, who is responsible to pay for the repair or replacement of the failed equipment? Response: Yes, the Contractor shall be responsible for all equipment during the duration of the Contract. Question 18 Question: Part III, pg. III-5, Section 2.7: If there is an equipment failure such as the one described in the previous question, is Contractor excused from performance (and liquidated damages for failing to achieve 90% dewatering) until the repair is made or the replacement is installed? If not, what County resources are available to maintain operations during such repair/replacement? Is Contractor expected to provide, within its price and scope, standby redundant equipment to the extent the County does not have it? Response: The Contractor shall not be excused from performance until a repair is made or replacement equipment is installed. The County does not have resources available to maintain operations in the event of a repair/replacement. The Contractor is expected to provide coverage if such an event occurs. Question 19 Question: Part III, pgs. III-6 III-9, Section 2.10: The detailed payment provisions omit any statement as to when payment will be made. Bidder requests adding that payment of undisputed amounts will be made within 30 days of the submittal of the invoice. Response: This section has been changed. See Item I.A.5 above for changes. Question 20 Question: Part III, pg. III-8, Section 2.10.3.5: If the County weigh scales are out of service, will the County reimburse the Contractor for the fees charged by a commercially owned weigh scale? Response: Yes. See Item I.A.6 above for changes. Question 21 Question: Part III, pg. III-8, Section 2.10.4: This section indicates that electrical costs will be calculated by the County [sub-metering kilowatt hours x current SMECO rate] and subsequently deducted from the monthly invoice. What were the actual monthly electrical costs for the past year? Response: See Attachment B. Question 22 Question: Does the capability exist to combine the scum/skimmings with the gravity thickened sludges (primary, waste activated, and waste-chemical) into the same aerated sludge holding 8
tank(s)? Response: Based upon the current piping and valving setup, this is not possible. Question 23 Question: Where does the filtrate water get returned to the WWTP process stream? Response: Filtrate waters gets returned to the headworks or raw influent for processing. Question 24 Question: Bidder has experienced customers that have had their biosolids contaminated through illegal dumping. Disposal of such contaminated biosolids is significantly more costly than Class B biosolids and the force majeure relief only provides additional time, not compensation. Accordingly, Bidder requests that language be added to the contract making clear that Contractor may, pursuant to an agreed change order, handle and dispose of any biosolids that may be contaminated by hazardous materials (as defined by applicable laws) including concentrations of PCBs over 50 ppm, but that Contractor is otherwise not responsible for handling such contaminated material. Response: See Item I.A.7 above for changes. Question 25 Question: Please confirm that prevailing wage requirements would apply only to construction work over $500k and do not otherwise apply to this scope of work. Response: Yes, prevailing wages apply to construction work. Question 26 Question: Although Contractor is protected from an event of force majeure, that terms do not include changes in law, permit, etc. Accordingly, Bidder requests adding the following to the contract: In the event that, after the date hereof, (i) a change in Federal, State, or local law or ordinance; (ii) orders or judgments of any Federal, State or local court, administrative agency or governmental body; or (iii) a change in permit conditions or requirements increases Contractor s cost of performance hereunder, Contractor shall be entitled to compensation for such documented increased costs, but no profit thereon. Response: See Item I.A.8 above for changes. Question 27 Question: Part I, pg. I-20, Section 6.4 states: Contract Professional Liability Insurance with limits of at least $1,000,000 each occurrence and $3,000,000 aggregate. --Bidder s current coverage affords a $1,000,000 per occurrence, and a $2,000,000 aggregate limit. However, when this is combined with our $25,000,000 in Excess coverage, the aggregate limit is $27,000,000. Would the additional Excess insurance be acceptable to the County for the required minimum limits? Response:Yes. See Item I.A.4 above for changes. Question 28 Question: Part I, pg. I-20, Section 6.4 states: Comprehensive automobile bodily injury and property damage insurance covering all vehicles whether owned, hired, or non-owned operated by/or on behalf of the Contractor in the performance of this contract with not less than the 9
following units: Bodily Injury: $1,000,000 per person $2,000,000 per occurrence Property Damage: $500,000 per occurrence Bidder s current Auto Liability coverage is for $2,000,000 combined single limit. There is no breakdown of specific BI or PD coverages. Again, our $25,000,000 umbrella rides atop this standard coverage. Is this acceptable to the County? Response: Yes. See Item I.A.4 above for changes. Question 29 Question: Part I, pg. I-20, Section 6.4 states: The Contractor shall also obtain and pay premium for the following: Workmen s Compensation in compliance with Maryland Statutory Limit. Comprehensive General Liability in an amount not less than $2,000,000 (combined personal injury and/or property damage) per occurrence subject to $2,000,000 aggregate. Bidder is appropriately covered for WC benefits. However, our per occurrence coverage for Comprehensive General Liability is set at $1,000,000 with an aggregate of $2,000,000. Again, our Excess/Umbrella insurance adds an additional $25,000,000 to these limits. Is this acceptable to the County? Response: See Item I.A.4 above for changes. Question 30 Question: Part I, pg. I-21, Section 6.4 states: County be given at least sixty (60) days prior written notice of any cancellation of, intention to not renew, or any material change in such coverage. Bidder can agree to a 30 day notice of cancellation on the policies, but our insurers do not offer a 60 day notice of cancellation clause. Would there be a need for an endorsement to show this 30 day notice of cancellation? Response: See Item I.A.4 above for changes. 10
ATTACHMENT A 11
ATTACHMENT B DEWATERING FACILITY ELECTRIC USAGE/DEDUCTIONS Month Total kwh Used Electrical Deduction January 115485 $7,749.04 February 101736 $6,826.49 March 109978 $7,379.52 April 40330 $2,706.14 May 12793 $858.41 June 17970 $1,195.01 July 12939 $860.44 August 17015 $1,827.92 September 12991 $2,462.85 12