REQUEST FOR PROPOSALS TO SUPPLY NATURAL GAS TO

UNIVERSITY OF SOUTHERN MAINE

Administered by

Purchasing Department

University of Maine

Orono, Maine

A. BACKGROUND

The University of Southern Maine currently purchases natural gas as a transportation customer for its Portland, Gorham and Lewiston/Auburn (LA) campuses. Local transportation is provided by Maine Natural Gas (MNG) for Gorham pursuant to a Negotiated Service agreement and by Northern Utilities (NU) for both Portland and LA. Natural gas supplies are purchased delivered at the New Portland Road Station city gate for the Gorham accounts and Portland City Gate and Lewiston City Gate for the Portland and LA accounts.

Northern Utilities has interconnections with Granite State Pipeline and MNG interconnects with "Joint Pipeline" (Maritimes & Northern [M&N] and Portland Natural Gas Transportation System [PNGTS]).

Local Transportation

For Gorham, local transportation will be provided by MNG through a Natural Gas Transportation Services Agreement, on file with the Maine Public Utilities Commission (MPUC). For Portland and LA, local transportation is provided by Northern Utilities.

Pipeline Transportation

Pipeline transportation will be provided by the Granite State Pipeline and "Joint Pipeline" (M&N and PNGTS).

Usage

Attached, as Appendix 1, is a chart with the estimated monthly fuel requirements of the University during the period covered by this RFP. The requirements are broken down by LDC and city gate for each campus, and between firm and interruptible for the Gorham campus.

Gorham Campus Interruptible Service

The bulk of the University’s requirements are for interruptible service for the campus heating plant. The primary use is for space heating. The plant maintains the ability to burn No. 2 fuel oil as its backup fuel. (The University is considering buying firm gas for this account; please quote both firm and interruptible for the Central Heat Plant account in Gorham.)

Firm Service

Firm service is required to serve other accounts at the each of the University’s campuses. Appendix 1 shows the total amounts these accounts are expected to consume over the next 12 months.

Future Requirements: The University is presently planning to convert the Portland Central Heat Plant, which has two 300 HP boilers and one 500 HP boiler, to natural gas during the summer of 2003. Natural gas will be used for the 2003/2004 heating season. Currently the plant burns approximately 79,465 gallons of #6 fuel oil annually. The plant is typically shut down during the months of June, July and August.

Bids should contain:

• The price for natural gas delivered to the New Portland Road Station City Gate and the Portland and Lewiston City Gates.
• A description of the interstate pipeline transportation arrangements to be used
• Notice of any exceptions to the language written in the RFP
• A clear description of the conditions under which natural gas supply could be interrupted
• A clear explanation of the pricing of monthly consumption that exceeds or is less than the range estimated in Appendix 1
• A copy of the supplier/customer contract
• Prices should be binding on the supplier for one week beyond the due date for proposals. Indicative prices will not be accepted.

D. TRANSPORTATION TERMS AND CONDITIONS

Gas Supplier will be responsible for knowing and following the terms and conditions for transporting on the interstate pipeline(s) and MNG and NU.

E. NOMINATIONS AND BALANCING

The daily and monthly nominations for the University’s natural gas needs, which are required by MNG and NU and the interconnecting pipeline(s), will be the obligation of the Supplier. In addition, the gas supplier will be responsible for balancing monthly the University’s gas volumes on any interconnecting pipeline system and the MNG and NU system. The University will notify supplier of significant changes in anticipated usage during the month. Supplier shall make nominations to MNG and NU and applicable pipeline(s) to ensure delivery of scheduled volumes. This will be done as often as necessary to stay in compliance with MNG and NU and pipeline operating procedures and tariff requirements. Supplier will be responsible for all properly imposed charges, costs and/or penalties assessed by pipelines or MNG and NU resulting from differences between actual gas usage and the volumes provided by supplier.

F. EXPERIENCE AND REFERENCES

Supplier must have demonstrated experience in supplying natural gas on a contract basis in volumes similar to those requested in this bid. Supplier will supply a minimum of three references with names of the individual to contact. Reference must substantiate Supplier experience and ability to supply natural gas as required in this request. Before signing a contract, Supplier may be required to furnish their most recent audited financial statements or provide other evidence of financial strength acceptable to the University.

G. PIPELINE ARRANGEMENTS

The supplier shall be responsible for arranging all transmission and other related services to the city gate.

H. SUPPLIER REGISTRATION

The supplier shall be registered by the Maine Public Utilities Commission (MPUC) to contract with retail natural gas consumers in Maine.

J. AWARD

For administrative simplicity, the University would like to award this contract all to one supplier however it reserves the right to award to more than one supplier if it is advantageous for the University to do so. Proposals will be judged on the Supplier’s ability to meet the University’s need for economical natural gas. The principle criteria in evaluating proposals will include total delivered cost of fuel over the contract term, certainty of proposed gas supply, and financial and operational viability of energy supplier. The University reserves the right to consider other factors that may be relevant to its energy supply needs. The University reserves the right to waive irregularities. Preferred bidder to be notified by 3:00 on August 15, 2002.

K. SUBMISSION OF OFFERS

Communication with the University: It is the responsibility of the bidder to inquire about any requirement of this RFP that is not understood. Responses to inquiries, if they change or clarify the RFP in a substantial manner, will be forwarded by addenda to all parties that have received a copy of the RFP. Addenda will also be posted on our web site, www.umaine.edu/purchasing/. The University will not be bound by oral responses to inquiries or written responses other than addenda.

Inquiries must be made to: Hal Wells

Purchasing Department

University of Maine

5765 Service Building

Orono, Maine 04469-5765

(207) 581-2689

Proposal Submission: A SIGNED original and 2 copies of the proposal must be submitted to the University of Maine Purchasing Department, 5765 Service Building, Orono, Maine 04469-5765, in a sealed envelope by August 13, 2002, to be date stamped by the Purchasing Department in order to be considered. Normal business hours are 8:00 a.m. to 4:30 p.m., Monday through Friday. Proposals received after the due date will be returned unopened. There will be no public opening of proposals. Vendors are strongly encouraged to submit proposals in advance of the due date to avoid the possibility of missing the due date because of unforeseen circumstances. Vendors assume the risk of the methods of dispatch chosen. The University assumes no responsibility for delays caused by any package or mail delivery service. Postmarking by the due date WILL NOT substitute for receipt of proposal. Additional time will not be granted to any single vendor, however additional time may be granted to all vendors when the University determines that circumstances require it. FAXED OR E-MAIL PROPOSALS WILL NOT BE ACCEPTED. The envelope must be clearly identified on the outside as follows:

Name of Bidder

Address of Bidder

Due Date

RFP #