Trade Agreement: WTO-AGP/NAFTA/AIT/Canada FTAs with Peru/Colombia/Panama
Tendering Procedures: Generally only one firm has been invited to bid
Non-Competitive Procurement Strategy: Exclusive Rights
Comprehensive Land Claim Agreement: No
Vendor Name and Address:
Coretest Systems Inc
400 Woodview Ave
Morgan Hill California
United States
95037
Nature of Requirements:
Ultra Rock Centrifuge
23375-171025/A
Shannahan, Cassandra
Telephone No. - (819) 420-1068 ( )
1. Advance Contract Award Notice (ACAN)
An ACAN is a public notice indicating to the supplier community that a department or agency intends to award a contract for goods, services or construction to a pre-identified supplier, thereby allowing other suppliers to signal their interest in bidding, by submitting a statement of capabilities. If no supplier submits a statement of capabilities that meets the requirements set out in the ACAN, on or before the closing date stated in the ACAN, the contracting officer may then proceed with the award to the pre-identified supplier.
2. Definition of the requirement
The Department of Natural ResourcesCanada (NRCan) has a requirement for the purchase of an ultra rock centrifuge system from the company Coretest Systems, Inc. to evaluate capillary pressure and relative permeability of tight rocks including shale, for research and development on oil andgas production from tight formations.
3. Criteria for assessment of the Statement of Capabilities (Minimum Essential Requirements)
a) Capable of imposing confining pressure up to 5,000 psi on rock samples for use in the ultra-speed centrifuge (speeds up to 16,000 RPM);
b) Allow high confining pressure tests and unconfined tests, as required, with the same unit;
c) Allow chamber temperatures up to 90 °C; and
d) Have a continuous and uninterrupted light source.
4. Applicability of the tradeagreements to the procurement
This procurement is subject to the following trade agreements:
- Agreement on Internal Trade (AIT)
- World Trade Organization - Agreement on Government Procurement (WTO-AGP)
- North American Free Trade Agreement (NAFTA)
5. Justification for the Pre-Identified Supplier
The ultra rock centrifuge system from Coretest Systems, Inc. has unique technical features not found elsewhere which are required for work related to tight rocks:
(a) Capable of imposing confining pressure up to 5,000 psi on rock sample for use in the ultra-speed centrifuge (speeds up to 16,000 RPM).
For oil and gas production from tight formations such as shale formations, the in-situ pressure is high and the permeability is low. In order to conduct lab evaluations, high confining pressure is required to simulate the in-situ conditions. Because the rock permeability is low, the rotation speeds need to be as high as possible to displace liquids. No other vendor’s product has been foundto be able to attain the confining pressure and speeds of the product of Coretest Systems, Inc. specified above.
(b) Allow high confining pressure tests and unconfined tests, as required, with the same unit.
In accordance with requirements, unconfined tests will be conducted as well. The product of Coretest Systems allows high confining pressure tests and unconfined tests to be conducted with the same unit. This feature is important for our work. There are rock centrifuges for conducting high confining pressure tests but not for conducting unconfined tests. In order to conduct both high confining pressure tests and unconfined tests, an additional rock centrifuge designed for unconfined tests would be required. Our budget and lab space are limitedand we cannot purchase an additional centrifuge. We must use one centrifuge for both types of tests.
(c) Allow chamber temperatures up to 90 °C.
To make evaluations for deep tight formations, high temperature is appropriate to simulate in-situ conditions. Temperature in the subsurface increases with the depth. Deeper formations would have higher temperatures. In formations deeper than 3,000 meters, the temperature could reach 90 °C or higher. In order to conduct experiments for deep-formation scenarios, the highest allowable temperature for the centrifuge is desired. The product of Coretest Systems allows 90°C while no other vendors’ products have been found to attain this temperature.
(d) Have a continuous and uninterrupted light source.
The centrifuge of Coretest Systems, Inc. uses a constant ON light source to achieve continual light intensity while the camera is triggered to take an image when the bucket moves into position over the light. If a strobe light source is used, it requires several things to happen at one time instead of just taking an image. When using a strobe there are timing complications that include triggering the strobe to come on and also trigger the camera to take an image at the same instant, and this doesn’t always happen in unison (especially at higher speeds). In addition, the strobe intensity may occasionally be slightly different from one strobe light on-cycle to the next. This difference in intensity can sometimes cause the interface image to shift or be different from the ones around it, causing that data point to require editing or be deleted. For these reasons, the constant light source is more stable and reliable than a strobe approach.
6. Government Contracts Regulations Exception
The following exception to the Government Contracts Regulations is invoked for this procurement under subsection 6(d): only one company is capable of performing the work.
7. Exclusions and/or Limited Tendering Reasons
The following exclusions and/or limited tendering reasons are invoked under the:
- Agreement on Internal Trade (AIT) - Article 506.12(b)
- World Trade Organization - Agreement on Government Procurement (WTO-AGP) - Article XV.1(b)
- North American Free Trade Agreement (NAFTA) - Articles 1016.2(b)
8. Period of the proposed contract or delivery date
The equipment must be delivered on or before March 31, 2017.
9. Name and address of the pre-identified supplier
Coretest Systems Inc.
400 Woodview Ave.
Morgan Hill, CA 95037
USA
10. Suppliers' right to submit a statement of capabilities
Suppliers who consider themselves fully qualified and available to provide the goods, services or construction services described in the ACAN may submit a statement of capabilities in writing to the contact person identified in this notice on or before the closing date of this notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.
11. Closing date for a submission of a statement of capabilities
The closing date and time for accepting statements of capabilities is December 21, 2016 at 2:00 p.m EST.
12. Inquiries and submission of statements of capabilities
Inquiries and statements of capabilities are to be directed to:
Cassandra Shannahan
Public Works and Government Services Canada
Acquisitions Branch
Commercial and Consumer Products Directorate
11 Laurier Street, 6A2, Phase III
Place du Portage, Gatineau, Québec, K1A 0S5
Telephone: (819) 420-1068
Facsimile: (819) 956-3814
E-mail address: c••••••••@••••••••.••.ca
Delivery Date: Above-mentioned
You are hereby notified that the government intends to negotiate with one firm only as identified above. Should you have any questions concerning this requirement, contact the contracting officer identified above.
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 contracting authority may then proceed with the award. However, should a Statement of Capabilities be found to meet the requirements set out in the ACAN, then the contracting authority will proceed to a full tendering process.
Suppliers who consider themselves fully qualified and available to provide the services/goods described herein, may submit a statement of capabilities in writing to the contact person identified in this Notice on or before the closing date of this Notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.
The PWGSC file number, the contracting officer's name and the closing date of the ACAN must appear on the outside of the envelope in block letters or, in the case of a facsimile transmission, on the covering page.
The Crown retains the right to negotiate with suppliers on any procurement.
Documents may be submitted in either official language of Canada.
