Lake County Addendum Forum

Bid #21069 Natural Gas Transportation & Management Services

This Invitation to Bid is for the purpose of establishing a contract to purchase a firm, uninterruptible supply of natural gas transportation and management services for Lake County as identified herein.

Addendum #1


Please use Bid Sheet by clicking Register for Bid and clicking on Bid #21069.


ADDENDUM #4  – August 12, 2021

Q#1. Page 2 states “Bidders shall enter bid prices on the Bid Sheets following this page. Bidders shall enter the description, Qty, UOM, Price and Extended Total to provide the specific services.”  We could not find the Bid Sheets, please provide.
A: Please reference Page 2 of the Bid document and Addendum #2.

Q#2. Page 2 states “Management fee per therm over index pricing for the Purchase of Natural gas” Please confirm you are requesting the price of transportation (basis) including our management fee?

Q#3. Page 2, please define the “Extended Price” you are requesting?
A: Natural Gas Supply Pricing: The Customer/Consumer will pay $ _______ per therm, multiplied by the estimated annual quantity which will equal Extended Cost.

Q#4. Page 2, states “Company Name __ will guarantee that the County will not pay any more than a fixed dollar amount for their energy for the contract year. This is based on the County usage pattern over the past year and adjustments for weather. Premium Cost per therm $___.”  Please define the Premium Cost per therm that you are requesting.
A: The Premium Cost per therm the County is asking for Suppliers to provide a built-in cost for potential impact on Energy Prices.   Since natural gas prices are at 4-year highs and natural gas supply is expected to remain tight through the upcoming winter.

Example: If the County buys 10 dth at $3.00 fixed price or index during the bid for May but we burn 15 dth during May.  We are required to purchase an additional 5 dth but at the same $3.00 fixed or index price.

A 100% swing contract will have a Risk Premium stated within the contract or on account for this pricing structure.

Q#5. IFB Terms and Conditions: 14. Indemnification. We request to change the language as follow: The Seller shall indemnify and hold harmless the County, its agents, officials, and employees from and against all injuries, losses, claims, suits, costs and expenses which may accrue against the County which occur prior to title passing to Lake County.
A: This topic can be further discussed with the Awarded Vendor prior to contract signing.

Q#6: General Terms and Conditions: 7. Bid Price.  Regarding penalty charges or balancing charges, If we cause the penalty, we should be held accountable but not for something completely outside our control, however the customer is protected if due to weather.
A: This topic can be further discussed with the Awarded Vendor prior to contract signing.

Q#7: General Terms and Conditions: 11. Supply Conditions. RFP text “Lake County transportation accounts are currently pooled at 0% standby.” Please clarify what is meant by this text?  Are you Rider SST pool with zero days of bank elected?   If you do have elected storage, then how much?   What account management are you referring to? 
A: This was just an identifier that was used in the past to go with elected 0% swing option for gas overages due to Extreme Weather.  Lake County have not experienced having excess stored gas.

Q#8: General Terms and Conditions: 18. Utility Penalty Charges. We will indemnify only if the charges were caused by our company.
A: This topic can be further discussed with the Awarded Vendor prior to contract signing.

Q#9: General Terms and Conditions: 30. Most Favored Customer. This is not relevant in this type of contract, natural gas pricing is market driven and cannot be modified on fixed price positions simply because of market movement.
A: Agreed

Q#10: General Terms and Conditions: 32. Hold Harmless Clause. We request to change the language to "with the commodity supplied under this agreement prior to title passing to Lake County"
A: This topic can be further discussed with the Awarded Vendor prior to contract signing.

Q#11: General Terms and Conditions: 37. Insurance. Will the County accept notice of cancellation only, as our systems are not set up to provide notice material change? Also, will the County accept 10 days’ notice of cancellation for non-payment of premium, as it is industry standard?
A: Please reference the General Terms and Conditions: 37. 
i. If your company take exception(s) to this language please state your exception(s) within your proposal.

Q#12: Scope of Services. We will indemnify only if the charges were caused by our company, for any imbalance penalties charged by LDC.
A: This topic can be further discussed with the Awarded Vendor prior to contract signing.

Q#13: 3. Submission of Bids – This section notes that bids must include (a) one original invitation to bid (does this mean a copy of the RFP/ITB should be part of the proposal?) and (c) compliance with specifications sheet, with compliance to each specification section indicated (please clarify what is required?)
A: Only if you as a Supplier use our Bid document as your company proposal this is not necessary if your company provide a separate proposal.  Please reference important forms required when submitting your bid such as Paged 1 – 2 and 16 – 24 along with any additional documents requested throughout our bid document.

Q#14: 22. Dispute Resolution – This section notes that all disputes will be resolved in accordance with the Appeals and Remedies provisions of Article 9 of the Lake County Purchasing Ordinance. We were unable to find this code online. Can the County please provide a direct link?

Q#15: 24. Warranties of Seller – This section notes that bidders have an investment grade credit rating of BBB issued by Standard and Poors. Please confirm that a Letter of Credit will suffice us not having the investment grade rating. 
A: Section 25 of the Bid document states that Should Seller’s creditworthiness, financial responsibility, or performance viability become unsatisfactory as a result of either the absence of an investment grade rating or a downgrade in its credit rating below BBB- by Standard & Poors, or below Baaa by Moody’s, Lake County may require at its option either: (i) the posting of a letter of credit, (ii) a cash prepayment, (iii) a parental guarantee, or (iv) the posting of other acceptable collateral or security by the Seller.

Q#16: 25. Credit Requirements. Please confirm what the amount of a Letter of Credit would be?
A: The Letter of Credit should be in the amount of 90 days of service for all accounts under contract.

Q#17: 28. Credit Requirements – The last sentence notes that “If Seller’s credit rating returns to the level warranted in Section 27 above, the need for additional credit will cease and any such additional credit provided by Seller will either be returned to, or may be terminated by, Seller, as applicable.” Is the reference to ‘Section 27’ correct, or a typo?

A: Yes.  It should read Section 24




ADDENDUM #3 – August 9, 2021

Q#1. Will you accept Dual billing for this RFP? Which would be bills from both us and the local utility.
A: Yes, dual bidding is only allowed to split between North Shore Gas and Nicor accounts, bidders are still required to provide consolidated billing into a single monthly billing per Dept (Health Dept, Public Works, Facilities and Construction and DOT) for all associated meter accounts within these two local distribution companies.

Q#2. Are you tax exempt?
A: Yes 


Q#3. Please confirm to exclude from bid prices State Sales Tax, Gross Receipt Taxes (GRT), or Commercial Activity Taxes (CAT)?
A: Confirmed


Q#4. Would you pay the difference between the Contract price and the current market price of forward energy purchased, should there be a termination that is not due to a breach of contract by the supplier?
A: The County reserves the right to terminate this contract, or any part of this contract, upon thirty (30) days’ written notice.  In case of such termination, the Contractor shall be entitled to receive payment from the County for work completed to date in accordance with the terms and conditions of this contract.


Q#5. Have you ever exercised the termination for convenience for natural gas supply contracts?
A: No


Q#6. Please confirm you are requesting full plant requirements, 100% bandwidth.
A: Confirmed


Q#7. Should there be any change in law, tariffs or regulations that alters a suppliers cost to serve (e.g.: a new tax) will the buyer allow the supplier to alter their contract price? Does the buyer need to approve the cost change, or can we just pass through after notification?
A: In the event of change in any federal, state, or municipal legislation, regulation, or administrative ruling Vendor shall notify Lake County in writing of the change in charges to be billed at least sixty (60) days prior to the effective date of the change, and Lake County hereby agrees to notify the Vendor of any dispute arising thereof within fifteen (15) days of such notification change.

Q#8: Please confirm contract extensions will be done at a mutually upon agreed price?
A: Confirmed


Q#9. Please confirm accounts would be added at a mutually agreed upon price.
A: Confirmed


Q#10. Please confirm all pricing quotes are city gate.
A: Confirmed


Q#11. Are you requesting separate pricing quotes for 12-month term, for both Index and Fully Fixed products?
A: Yes


Q#12. What day and time are you requesting bidders to hold the prices in our price proposal firm until you make the award?
A: Requesting Bidders hold their prices for 30 days.  This will be September 18, 2021, by 5:00 PM CST.


Q#13. What are you requesting for days in payment terms?
A: All payments will be made in accordance with the Illinois Local Government Prompt Payment Act (50 ILCS 505/1 et seq.).


Q#14. Will you disclose what product you are currently on?  Who is the current supplier?
A: Yes, Constellation Energy


Q#15. Will you award all accounts to one supplier?
A: Award will be made to the lowest responsive and responsible bidder based on the total base bid amount who is best qualified to perform in accordance with the terms and conditions of the contract.  Lake County reserves the right to award this contract by line item, group or in whole if determined to be in the best interests of the County. 


Q#16. Section 16. Experience. Are you asking for experience from 1999 and 2000?
A: The Bidder shall include a brief background of the firm and the services offered (purchasing gas utilities) for the last 21 years (2000).




Addendum #2 – August 4, 2021

Q#1: Will you accept Dual billing for this RFP?
i. Which would be bills from both us and the local utility.
A: No, the County is requesting one consolidated bill from North Shore Gas/Nicor Gas or Supplier.  A copy of this consolidated bill should be emailed and mailed to the physical address located on Page 6 of the Bid document.


Q#2: We do not offer Single/Consolidated billing.
A: Please reference Bid document Page 6; #13. Invoices, Payment and Billing section and Scope of Services found on page 15.


Q#3: Did you want to see 0% and 100% swing options broken out separately?
A: Yes, provide pricing for both swing options


Q#4: Are you interested in prices for Renewable Natural Gas (RNG) and Carbon Offsets?
A: Please provide prices for Renewable Natural Gas and Carbon offsets.




Addendum #1 – July 30, 2021

Q#1. Did you want to see 0% and 100% swing options broken out separately?
A: Yes


Q#2. We are going to need the LOA (below) filled out for the Nicor accounts. 
A:  You can find the Letter of Authorization form(s) by going to, click on the Bid #: 21069, Click on Register for this bid and download  Letter of Authorization – Nicor Gas and Letter of Authorization – North Shore Gas


Q#3: Lastly, we have worked with Lake County in the past, and they shared some sustainability goals.  Is that still on the table? 
A: Yes, please share your sustainability goals.