PIPELINE REPAIR OPERATION

EMERGENCY RESPONSE PIPELINE REPAIR OPERATION FOR IRAQ OIL INDUSTRY REGIONAL & COUNTRY-WIDE RESPONSIBILITY Statement of Objectives Background: Due to looting and sabotage on critical pipelines transporting crude oil, refined products, and natural gas, terrorists and criminals have been able to disrupt sustained exports of crude oil and products to foreign markets for needed revenue, feed-stocks to refineries for domestic consumption, and fuel supply to power plants and other industrial customers. Failure to provide needed resources by the previous regime has also impacted the ability of the pipeline operators’ to perform suitable maintenance on the existing pipeline infrastructure. The poor maintenance history is responsible for pipeline leaks and degraded pipeline integrity which limits available pressure and flow capacities. The lack of adequate tools and proper equipment impacts timely repair of leaks from sabotage or other line failures by causing extended delay in returning the pipelines to service and productive operation of processing plants and refineries. Since the exports began on the Iraq-Turkey Pipeline during June 2003, there have been repeated attacks on the pipelines by saboteurs in the area. Repairs have required several weeks to reinstate the pipeline operation only to be hit again by sabotage soon after the pipeline service is finally restored. Similar attacks have occurred on crude oil pipelines serving the Baiji and Daura Refineries and on the refined product and LPG pipelines from these refineries where saboteurs/looters have caused damage and the need for extended downtime to complete repairs. In addition to the economic losses in revenue from cancelled export opportunities, there is a disruption in distribution of fuels and feed-stocks for transportation and other commerce in Iraq that impact the national economy and employment. Other pipeline projects will soon be on-line following restoration work to increase the ability to move products by pipeline and eliminate extensive trucking of gasoline, LPG, diesel, and kerosene. The ability to complete timely repairs of these pipelines is essential to sustaining the economic recovery of Iraq. This is an urgent and compelling requirement that has a short mobilization period. In keeping with that urgency, a compressed execution cycle is anticipated. Emergency Response Pipeline Repair Operation: Major pipeline operators in many parts of the world maintain emergency response pipeline repair operations (ERPRO) to provide stand-by equipment, tools, and qualified personnel for quick response to pipeline incidents. These operations are justified for quick response to increase reliability, improved safety, environmental protection, and economic assurance. In many areas, the risks to the pipelines include only normal corrosion leaks, construction or other accidents, and programmed maintenance repair needs. In areas of poor security risks, sabotage alone may justify a standing ERPRO team much as a fire department remains on call in a plant. For the oil fields and petroleum sector in Iraq, there are various large and small diameter pipelines that are critical to the network of supply and demand for production, processing, refining, distribution, and export. An assessment of current technology has identified various means to quickly restore pipeline operations subjected to sabotage or minor to catastrophic failures from leaks and ruptures. There is a need to provide the technology, equipment, materials, qualified operators, training, and support for implementing ERPRO teams in Iraq. Purpose: The purpose of this contract scope of work is to define the needs for an Emergency Response Pipeline Repair Operation for critical pipelines in Iraq. It is intended that a contract will be awarded to provide the technology, tools, equipment, training, and personnel to implement a suitable ERPRO for quick response and restoration of pipeline service. The ERPRO team can also perform programmed maintenance to add block valves and other scheduled pipeline maintenance/repairs while continuing pipeline operations with minimal interruptions or shutdowns. Objective: The intention of this Contract is to implement the ERPRO on an immediate basis while training local Iraq technicians and operators to transfer technical capability and responsibilities with minimal foreign ex-patriate supervision or labor within a practical transitional period and contract timeframe. Statement of Objectives: The ERPRO Contractor shall be responsible for planning and implementing a quick response team including manpower, supervision, equipment, materials, and support- including both technical and field personnel. The selected Contractor shall provide the specialty equipment in pre-positioned locations in Iraq for conducting quick response to acts of sabotage or other pipeline rupture/leak incidents. The specialty equipment shall include all material, tools, and components to complete hot tap and stoppling operations with by-pass piping for continued flow of high pressure pipelines. The field operation shall include all pipeline construction and repair equipment needed to transport the equipment, pipe, and other materials from a pre-positioned staging area to a incident location on a rapid response basis. The ERPRO Contractor shall propose an organization of qualified personnel to plan and implement the field operations on a call-out basis. It is expected that the proposed ERPRO team would be agile and flexible to assemble and move to the incident location within 2 hours of notice of an incident. The type of repair may include various procedures for temporary and permanent solutions to quickly restore operations: pressure taping of minor leaks with such technology as ClockSpring, StrongBack, or other similar products application of welded half/full sleeves or mechanical clamps tie-in of new tested pipe specialty stoppling and by-pass methods cold cutting and replacing pipe plugging and hot tapping by passes other conventional or specialty methods. Training and qualification of Iraqi technicians and operators will be required. A formal training program including field testing and qualification of operators shall be conducted. The program of instruction will be retained by the government with all rules and rights to execute program after the period of the contract. Programmed maintenance activities shall be implemented for training of personnel and enhancement of pipeline system operations. Such activities may include: planned installation of additional block valves on the existing pipelines. upgrading known pipeline segments of low integrity pre-testing pipe to store for cut in and replacement testing and qualification of ERPRO procedures for quick repair and specialty equipment operation maintenance of specialty equipment and material preparation for quick response consultation for security assessments and field preparations inventory management for programmed and emergency response operations The contractor will be required to provide resumes with experience of the personnel that will be responsible for the training and qualification of the Iraqi personnel. In addition, the contractor will provide resumes with experience of the personnel responsible for the management and daily operations of the in country sites and teams. Areas of Operations It is expected that the ERPRO Contractor will respond to repair and maintenance operations throughout the Country of Iraq on all pipeline systems that are at risk. Due to security concerns involved with the areas of recent incident activity, the ERPRO Contractor will be provided with security protection by military forces responsible for the various areas and Ministry of Oil Police assets. For proposal purposes, the expected capabilities for each area will include the following: Northern Iraq- Full equipment spread of specialty equipment and construction equipment for round the clock repair operations at the incident site; including, but not limited to transport, backhoes, dozers, welding gear, test equipment, hot tap tools, stoppling tools, night lighting, generators, camp trailers, life support, field kitchen, etc. Military escort and perimeter security at site will be provided by the area military command, and Ministry of Oil assets. For proposal purposes, assume that the ERPRO team will be based in Baiji. Central Iraq- Technical support and training center for technicians and operators will be in Baghdad at OPC. Procedure development and planning of operations will be performed at this Technical Center. A warehouse will be provided and a center for performing repair and maintenance of specialty equipment will be developed at this site. Procedures will be developed and qualified at this location. Program maintenance and emergency response planning will be managed in this office. Technical personnel will be on-call for travel to work locations to supervise field operations as equipment is mobilized to locations. Division of Responsibility The Operating Companies from the Ministry of Oil will cooperate with the ERPRO Contractor in providing pipeline operating assistance to control or stop flow and help de-pressure operations for safety concerns. Following repairs, the Operating Company will coordinate with the ERPRO Contractor to complete any testing and re-instate the pipeline operating service. The ERPRO Contractor shall be responsible for assessing the ERPRO needs, planning field procedures and emergency preparedness, providing the technical expertise and qualified supervision and operating personnel, training and technology transfer to the Operating Companies, and conducting repair operations in the field. Security to escort the ERPRO Contractor from accommodation base to the incident or maintenance site will be furnished from military asset control or Oil security assets. At the repair/maintenance site, perimeter security during the ERPRO activities will be provided at all times from initial investigation until return to service. Specialty Equipment Hot tap and stoppling equipment and tools shall be supplied and furnished by the ERPRO Contractor. A complete listing of the equipment shall be provided in the contractor’s proposal. This equipment supply shall be provided from a reputable company with at least 7 years demonstrated experience in successful similar operations. No prototype equipment will be allowed. Material to support the ERPRO operations for minor leak repairs, split sleeves, lock-o-ring flanges, gaskets, tape wrap, and other repair procedures shall be kept in inventory for at least 4 major repairs per calendar quarter (90 days) for each pipe size in each region. Supplies in stock shall be sufficient for an “evergreen” stock of material to accommodate re-supply upon each use. For instance, if it takes 8 weeks to restock fittings there should be a standing supply of stock to assure that there will always be 4 sets on hand during a 90 day cycle. A complete listing of the material shall be provided in the contractor’s estimate. The Contractor shall furnish, supply, and maintain a complete spread of equipment and tools to provide full support of pipeline repairs within the ERPRO. All tools for cleaning, measuring, testing, cold cutting, beveling, tie-in line up, welding, primer and coating application, to complete full ERPRO requirements must be provided by the ERPRO Contractor. Mobile welding equipment, side booms, cranes, backhoes, and other construction spread equipment shall be identified by the ERPRO Contractor and pricing will be furnished for such supply and stand-by service. In the North region, the construction related equipment will be within the full scope of the ERPRO Contractor. In the South region, this equipment should be fully defined and priced but may be provided by the Operating Company on a support basis. Critical Pipelines for Planning Consideration For proposal purposes, the following list of pipeline sizes shall be considered in each region for stocking material and assuring proper tools and equipment on hand. Bidders should plan on all pipeline system pressure service to be ANSI 600 series with pipe specification based on API 5L X-60 with no corrosion allowance. (Full pipeline specification information will be provided to the selected ERPRO Contractor.) North Region Export Pipelines -Crude Oil – 46”, 40”, 32”, 30” Refinery Trunklines – Crude Oil – 12”, 16” Central Region LPG, Natural Gas, and Refined Products- 24”, 18” 14”, 10” South Region LPG, Natural Gas, and Refined Products- 18”, 14” Export Pipelines- Crude Oil – 48”, 42”, 28” Instructions to Offerors The deadline for responses to this RFP is January 30, 2004, 5:00 p.m. Baghdad time. THE GOVERNMENT RESERVES THE RIGHT TO MAKE MULTIPLE AWARDS FROM THIS SOLICITATION IF IT IS DETERMINED TO BE IN THE GOVERNMENT’S BEST INTEREST TO DO SO. Proposals shall be submitted with following sections and shall include the below information. Proposed approach to performance of all tasks shall be addressed and the Government reserves the right to incorporate the offeror’s proposal by reference upon contract award: SECTION I – Technical Describe the offeror’s proposed approach to meeting the Statement of Objectives, to include how and where the offeror will conduct operations Include a discussion of the offeror’s capabilities to perform. Include resumes of key personnel to include a description of their related A description of the team to be assigned to the project. SECTION III - Past Performance Provide a minimum of three references to obtain past performance information. Information should include: Name, telephone number, email address, contract number and description of the effort. SECTION IV-Cost The offeror shall provide a cost proposal in sufficient detail to determine price reasonableness and to conduct a cost realism analysis. Contract type shall be clearly proposed and is a subject for negotiatios. Evaluation Factors and Selection of Source Award of a contract resulting from this solicitation will be made to the responsible offeror whose offer represents the best value to the Government, price and other factors considered. Evaluation factors include the following: Technical Past Performance Cost Technical and Past Performance are relatively equal and slightly more important than cost. Cost will not be scored but evaluated for reasonableness and realism. Period of Performance The period of performance will be 180 days from contract award. Immediate mobilization of the team will be required.Upon completion of the contract effort, all equipment and supplies purchased under the contract will become the property of the Iraqi Ministry of Oil. DABV01-04-R-00011