Research, Development and Demonstration of New and Advanced Natural Gas Utilization TechnologiesVery Low Emission Industrial Combustion Equipment; Financial Assistance, DE-PS07-94ID13285

DEPARTMENT OF ENERGY

Research, Development and Demonstration of New and Advanced

Natural Gas Utilization Technologies--Very Low Emission Industrial

Combustion Equipment; Financial Assistance, DE-PS07-94ID13285

AGENCY: Department of Energy, Idaho Operations Office.

ACTION: Solicitation for Financial Assistance.

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SUMMARY: Notice is hereby given pursuant to Public Law 93-577, and

Federal Non-nuclear Energy Research and Development Act of 1974, the

U.S. Department of Energy (DOE) Idaho Operations Office (ID), is

seeking cost-shared applications to expedite private sector deployment

of cost effective new and advanced natural gas combustion systems which

improve efficiency and reduce combustion emissions significantly

without post-combustion controls. To encourage commercialization of the

developed technology, applications are expected to include direct

participation by an industrial partner (equipment manufacturers, the

end user industry sector or the natural gas industry). A minimum 20%

non-DOE cost-share for research and development phases and a minimum

50% non-DOE cost-share for the demonstration phase is required. The

applicant or one of the industrial partners is expected to be an

organization that will market the equipment developed and demonstrated

as a result of this solicitation. This is a complete solicitation

document.

DATES: The effective date of this solicitation is February 4, 1994. The

deadline for receipt of applications is 4 p.m. MDT, May 5, 1994.

ADDRESSES: Applications shall be submitted to: NUMBER DE-PS07-94ID13285

J.O. Lee, Contracting Officer; Procurement Services Division; U.S.

Department of Energy; 785 DOE Place, MS 1221, Idaho Falls, ID 83401-

1562.

FOR FURTHER INFORMATION CONTACT: Dallas L. Hoffer, Contract Specialist,

(208) 526-0014.

Background

U.S. Industry burns eighteen percent of all fuels combusted in the

U.S. for all purposes. Wide spread adoption of combustion equipment

incorporating even a small improvement in efficiency can, on a nation-

wide basis, result in significant energy savings which translate into

significant cost savings.

Projects sponsored by the DOE Industrial Combustion Equipment

Program are based on the needs and concerns of industry. The program

advances technology to the point of commercialization. Historically,

activities have focused on the development of energy efficient,

environmentally benign combustion equipment for use in one or more high

energy consuming manufacturing industries.

The on-going implementation of clean air regulations is making

environmental considerations a major factor in the adoption of the

equipment developed by this DOE Program. Low emissions are expected to

be the major incentive for adoption of these energy saving technologies

by industry.

Title I of the 1990 Clean Air Act Amendments (CAAA), requires some

ozone non-attainment areas to meet 9 ppm or lower NOx standards for new

industrial combustion equipment. This emission target can now be met

only by using Selective Catalytic Reduction (SCR) systems which have

high capital and operating costs and which may have a substantial

energy penalty, resulting in low overall energy efficiency. The need to

use SCR systems on new industrial units has been a serious impediment

to the replacement of existing equipment which is generally

``grandfathered'' and may require no emission controls or minimal

controls such as low NOx burners for continued operation. As a

consequence, industry has kept old, inefficient equipment operating,

often far beyond the anticipated or design life of that equipment.

The opportunity now exists for the U.S. to introduce very low

emission combustion equipment for use by industry. Emissions would be

in the range now realized with post-combustion equipment controls, but

these costly, inefficient downstream systems would not be needed.

Mandated emissions targets would be met by using equipment based on

advanced natural gas combustion techniques and would be realized by

replacing or retrofitting existing furnaces, heaters, and boilers with

these advanced systems. Energy efficiency, a traditional DOE goal,

would be at least equal to today's best industrial combustion

equipment. Overall, substantial energy would be saved since the energy

required to operate post-combustion control systems and produce and

transport their chemical reagents would not be needed.

Increased energy efficiency decreases the emission of greenhouse

gasses as an additional benefit. In addition, combustion of natural gas

releases less carbon dioxide per unit energy than from other fossil

fuels.

This work responds to the Energy Policy Act (EPAct) of 1992 (Public

Law 102-486), Title XXII (Energy and Economic Growth), enabled October

24, 1992. Section 2014 directs the development of efficient, low

emission combustion equipment that uses natural gas.

Projects funded by the DOE Industrial Combustion Equipment Program

are generally phased, but it is not required that they be phased. Phase

I typically involves an expansion of market and economic estimates

based on those presented in the proposal, the identification and

finalization of host site arrangements, additional laboratory (bench

scale) or theoretical evaluation of the system proposed, and

development of a business plan. Phase II typically encompasses

development, fabrication, testing, and evaluation of a pilot scale

unit. Additional economic evaluations are generally conducted to assess

commercial scale systems. Phase III typically encompasses the

installation and testing of a demonstration (proof-of-concept) scale

unit at an industrial host facility. Tasks in more than one phase may

be addressed simultaneously. For the purpose of cost share

determination, Phase I and Phase II tasks are considered to be research

and development while Phase III tasks are demonstration. The

demonstration is designed to provide industry with credible data to

accelerate the adoption of new technology combustion equipment. A

commercial product that improves the efficiency, reduces emissions, and

enhances the competitiveness of U.S. industry is expected to result

from each project.

Project Description

This solicitation is to promote new and advanced natural gas

utilization technologies for the research, development and

demonstration of cost effective, very low emission industrial natural

gas combustion equipment in intermediate temperature applications which

will improve efficiency and reduce emissions without the need for post-

combustion controls. This approach to emissions control reflects the

view that it is substantially more economical to prevent pollution than

to eliminate it after it has been produced. This proposed technology

may be a retrofit to existing systems or may require totally new

systems. A commercial end product is the main objective of each project

funded by this solicitation. Awardees will be required to prepare a

business plan that illustrates how the equipment end product will be

commercialized.

The proposed technology must meet the current EPA Lowest Achievable

Emission Rate (LAER) NOx standards without add-on emission controls

such as Selective Catalytic Reduction (SCR). The NOx target value for

intermediate temperature range industrial combustion equipment for the

purposes of this solicitation will be 9 ppm or less at 3% excess

oxygen. Not only are NOx emissions to be low, the emissions of other

undesirable products of combustion are to be within EPA specifications

or low (if no source specifications have been promulgated) as well.

Included are carbon monoxide (CO), hydrocarbons, and air toxics. For

the purpose of this solicitation the CO target value will be 50 ppm or

less. Regulations for air toxics and hydrocarbons have not yet been

developed for the types of industrial boilers, furnaces, etc, which are

the subject of this solicitation. Additional information for air toxics

and hydrocarbons is contained in Title I and Title III of the 1990

CAAA.

The focus of the project(s) to result from this solicitation is on

natural gas combustion equipment with low emissions production from

intermediate temperature industrial combustion applications. For the

purposes of this solicitation, the intermediate temperature range

includes process steam applications (all temperatures), direct heat,

and process fluid heating applications between 800 deg.F to 2000 deg.F.

Examples of direct heating applications (but not limited by this list)

include heat transfer from combustion gasses to a heat sink such as

used in metals processing, calcining, smelting, annealing, forging, and

melting. Examples of process fluid heating applications include

petroleum refining, distillation, and oil loop heating. Internal

combustion engines, gas turbines and waste incinerator applications are

excluded from this solicitation. It would be advantageous if the

equipment developed were applicable to more than one industry.

All projects that are within the above project description are

eligible for consideration under this solicitation.

Examples of possible projects include, but are not limited to: (1)

Optimization of porous radiant burner heat transfer; (2) catalytic

combustion burner for furnaces and boilers; (3) inert porous media

furnace/boiler, and; (4) precombustion chamber burner for heavy oils

which facilitate interruptible natural gas usage. Additional

information will be provided for these four technologies in a paper

included in the pre-applicant package entitled, ``Very Low Emission

Industrial Combustion Equipment, Research and Development''. It is

stressed, these are example projects only.

It is intended that during the demonstration phase, emissions are

to be measured using a certified methodology by an independent

commercial emissions measurement company. If ``before and after''

measurements are warranted, the above is to be used for both to assure

the quality of the results obtained.

Award of Cooperative Agreements is anticipated. All projects shall

be cost shared by DOE and the participant. Applicants should be aware

that any awardee shall be required to have a cost share of not less

than 20% of the total cost of the program for the research and

development phases and 50% of the total cost of the program for the

demonstration phase.

Because of the interest of the natural gas industry in this

solicitation, it is expected that segments of that industry may make

some cost share funds available to applicants for projects they

consider to be beneficial to their segment of the industry. The natural

gas industry has typically supported the research, development and

demonstration phases of projects. The Industrial Gas Technology

Commercialization Center (IGTCC), 1515 Wilson Blvd, Arlington, VA

22209, has agreed to serve as a clearinghouse for channelling gas

industry funding into projects. Applicants wishing to be considered for

natural gas industry support should contact David L. Sgrignoli,

Executive Director (telephone number 703-841-8561) at IGTCC before

submitting proposals. It is suggested that bidders contact IGTCC as

early in the proposal preparation process as is practical. While the

cost share requirements of EPAct must be met, natural gas industry

funding is NOT required to obtain DOE support. Likewise, natural gas

industry funding will NOT provide assurance of DOE support.

No fee or profit will be paid to the award recipients. DOE

anticipates that approximately $873,000 will be available for support

of activities during FY-94. It is anticipated that there will be one or

more awards. Available funds for future years is anticipated to be at

the same or an increased level.

Individual project duration will not exceed 5 years. Project(s)

with durations of less than 5 years and in any phase (I, II or III) of

development are eligible, if conclusive evidence is presented that

previous phase(s) have been completed successfully. All applications

with project periods of 5 years or less will be given equal

consideration. Initial awards will be for one year, with subsequent

year extensions, contingent on available DOE funding.

Applications shall contain a well defined research concept and

plan; confirmed industrial partner participation and support; and

indicate satisfactory expertise, experience, capabilities, resources,

and management of R&D team personnel; and adequate facilities to

perform the research including a potential host facility for

demonstration purposes.

Selection is expected to be made in June 1994 and the earliest

award is expected to be made in November 1994.

Negotiation, award, and administration will be in accordance with

DOE Financial Assistance Regulations (10 CFR part 600). The Catalog of

Federal Domestic Assistance (CFDA) number for this program is 81.078.

Profit making entities, individuals, educational or nonprofit

institutions, federal laboratories, and other entities, are eligible to

submit applications in response to this solicitation. OMB A-95

clearance is not required. Applications anticipating participation of a

federal laboratory through subcontract, use agreement, or other

arrangement must include satisfactory evidence of specific

authorization from the cognizant federal agency.

Notice of Possible Availability of Loans for Bid Proposal

Preparation by Minority Business Enterprises seeking DOE Contracts and

Assistance (Section 211(e)(1) of the DOE Act Public Law 95-619 as

amended by Public Law 95-619) authorizes the DOE to provide financial

assistance to minority business enterprises to assist them in their

efforts to participate in DOE acquisition and assistance programs.

Financial assistance is in the form of direct loans to enable the

preparation of bids or proposals for DOE contracts and assistance

awards, subcontracts with DOE operating contractors, and contracts with

subcontracts of DOE operating contractors. The loans are limited to 75%

of the costs involved. Availability of these loans is subject to annual

appropriation of funds (and to the remaining availability of funds from

such appropriations under CFDA number 81.063). DOE does not warrant

that such assistance can be made available in sufficient time to

prepare an application for this solicitation. DOE does point out that

the program includes provisions for a preliminary review in advance of

a specific loan request. Information regarding loan availability,

eligibility criteria, and how to apply may be obtained from: San

Francisco Field Office, USDOE, 1333 Broadway, Oakland, California

94612, Attention: Minority Loan Program Office. Telephone (415) 273-

6403.

Evaluation of Applications

a. Application Deadline: The deadline for receipt of applications

is 4 p.m. MDT, May 5, 1994. Only applications which are timely in

accordance with 10 CFR 600.13 will be evaluated. Late applications will

not be considered and will be handled in accordance with 10 CFR 600.13.

Prospective applicants intending to submit an application in

response to this solicitation should request a pre-application package,

which includes standard forms, assurances and certifications, by

notifying the DOE Contract Specialist in writing or by telephone. It is

advised that prospective applicants submit their requests in writing no

later than February 21, 1994. Questions regarding this solicitation

should also be submitted in writing to the DOE Contract Specialist no

later than March 8, 1994. Questions and answers will be issued in

writing as an amendment to this solicitation.

b. Selection of Proposals: Applications not responsive to the

objective of this solicitation will not be considered. All timely

applications that include a minimum 20% non-DOE cost-share for research

and development phases and a minimum 50% non-DOE cost-share for the

demonstration phase and meet the other requirements of this

solicitation will be considered.

c. All applications will be evaluated and point-scored in

accordance with the following criteria. The applications should be

fully responsive to each of the criteria.

Weighting of Criteria: The Evaluation Criteria are weighted in the

following manner: The criteria will be based on a maximum of 100

points. Criterion 1 has a maximum point value of 45. Criterion 2 has a

maximum point value of 45. Criterion 3 has a maximum point value of 10.

Criterion 1: Research Concept and Plan--Factors to be considered

are the clarity, completeness, responsiveness, and adequacy of the

statement of work; the merit and depth of discussion of the proposed

project (review of supporting data obtained in laboratory and/or pilot

scale work completed to date) to determine if the proposed work is new

and advanced, is based on sound scientific/engineering principles,

improves efficiency and reduces natural gas combustion equipment

emissions significantly without post-combustion controls, and the

general applicability, timeliness and potential economic viability of

the proposed technology; the planned levels of data acquisition,

sampling and analyses; the schedule (sequence of project tasks,

principal milestones, decision points, and adequacy of time for each

task); and the planned assignment of responsibilities and level of

manpower to complete the research.

Criterion 2: Applicant/Team Capabilities--Factors to be considered

for the applicant and industrial partner team personnel are experience

in research, development and demonstration of the project proposed;

knowledge of past advanced developments in the work proposed; resources

to perform the research, development and demonstration of the work

proposed; ability to assemble a team of multi-disciplined individuals;

qualifications of key individuals and the percentage of time devoted to

the project; individual responsibilities, task assignments, and

resource and manpower availability; draft business plan outline;

project management methods; and, the applicant's or an industrial

partner's capability to market the equipment developed and demonstrated

as a result of this solicitation.

Criterion 3: Facilities--Factors to be considered are the

availability of laboratory and potential host facilities for performing

research, development and demonstration work proposed; apparatus for

performance of the tests, instrumentation, and data acquisition and

control systems; and the availability of analytical support.

d. The proposed cost of the project will not be point scored.

Applicants are advised, however, that notwithstanding the lower

relative importance of the cost considerations, the evaluated cost may

be the basis for selection. In making the selection decision, the

apparent advantages of individual technical and business applications

will be weighed against the probable cost to the government to

determine whether the application approaches (excluding cost

considerations) are worth the probable cost differences.

e. Selection: Applications will be evaluated under the Office of

Energy Conservation and Renewable Energy Merit Review of Discretionary

Financial Assistance Applications Review Procedures for Solicited

Proposals. The Source Selection Official (SO) will make the selection

for negotiation and award in accordance with the above evaluation

criteria and in a manner that furthers the DOE programmatic goals.

Conditions, Instructions and Notices to Applicants

1. General Conditions

In conducting the application evaluations, the government may

obtain assistance and advice from non-governmental personnel.

Applicants are therefore requested to state on the application cover

sheet if they do not consent to an evaluation by such non-government

personnel. The applicants are further advised that DOE may be unable to

give full consideration to an application submitted without such

consent. Information contained in the applications shall be treated in

accordance with the policies and procedures set forth in 10 CFR 600.18.

DOE reserves the right to fund, in whole or in part, any, all, or

none of the applications submitted in response to this solicitation.

DOE may require applications to be clarified or supplemented to the

extent considered necessary, either through additional written

submissions or oral presentations; however, the award may be made

solely on the information contained in the application. DOE is under no

obligation to pay for any costs associated with preparation or

submission of applications if an award is not made.

All applicants will be notified in writing of the action taken on

their applications in approximately 90 days after the closing date for

this solicitation, provided no follow-up clarifications are needed.

Status of any application during the evaluation and selection process

will not be discussed with the applicants. Unsuccessful applications

will not be returned.

2. Instructions for Preparation of Applications

Each application in response to this solicitation should be

prepared in one volume. One original and seven copies of each

application are required. The application facesheet is the Standard

Form 424. The application is to be prepared for the complete project

including a detailed statement of objectives and cost estimate by task

for the entire project. The statement of objectives and cost estimate

by task should be presented in yearly increments. Applications shall be

as short as possible consistent with completeness, clearly and

concisely written, and neatly and logically assembled; applications

shall exclude material not essential to evaluation of the proposal. The

importance of supplying full and completely responsive information for

each of the evaluation criteria cannot be overemphasized.

If the offer is submitted under a joint venture arrangement, this

fact must be clearly set forth. The cost principles that shall apply

will depend on the type of awardee; FAR 31.2 and DEAR 931.2 shall apply

to commercial organizations; OMB Circular A-21 shall apply to

institutions of higher education; OMB Circular A-87 shall apply to

state and local governments; and OMB Circular A-722 shall apply to

nonprofit organizations. The awardee must have an accounting system

capable of accumulating costs by project. All applicants are required

to provide in the application the nine digit Taxpayer Identification

Number (TIN) assigned by the U.S. Internal Revenue Service.

a. Proprietary Proposal Information: Applications submitted in

response to this solicitation may contain trade secrets and/or

privileged or confidential commercial or financial information which

the applicant does not want used or disclosed for any purpose other

than evaluation of the application. The use and disclosure of such data

may be restricted provided the applicant marks the cover sheet of the

application with the following legend, specifying the pages of the

application which are to be restricted in accordance with the

conditions of the legend:

The data contained in pages ______ of this application have been

submitted in confidence and contain trade secrets or proprietary

information, and such data shall be used or disclosed only for

evaluation purposes, provided that if this applicant receives an

award as a result of or in connection with the submission of this

application, DOE shall have the right to use or disclose the data

herein to the extent provided in the award. This restriction does

not limit the government's right to use or disclose data obtained

without restriction from any source, including the applicant.

Further, to protect such data, each page containing such data shall

be specifically identified and marked, including each line or paragraph

containing the data to be protected with a legend similar to the

following:

Use or disclosure of the data set forth above is subject to the

restriction on the cover page of this application.

It should be noted, however, that data bearing the aforementioned

legend may be subject to release under the provisions of the Freedom of

Information Action (FOIA), if DOE or a court determines that the

material so marked is not exempt under the FOIA. The Government assumes

no liability for disclosure or use of unmarked data and may use or

disclose such data for any purpose.

Applicants are hereby notified that DOE intends to make all

applications submitted available to non-Government personnel for the

sole purpose of assisting the DOE in its evaluation of the

applications. These individuals will be required to protect the

confidentiality of any specifically identified information obtained as

a result of their participation in the evaluation.

b. Budget: A budget period is an interval of time (12 months) into

which the project period is divided for funding and reporting purposes.

Project period means the total approved period of time that DOE will

provide support contingent upon satisfactory progress and availability

of funds. The project period may be divided into several budget

periods. Each application must contain a Standard Form 424A, Budget

Information Form.

Items of needed equipment should be individually listed by

description and estimated cost, inclusive of tax, and adequately

justified. The type and extent of budgeted travel and its relation to

the research should be specified. Anticipated consultant services

should be justified and information furnished on each individual's

expertise, primary organizational affiliation, daily compensation rate

and number of days of expected service. Consultant's travel costs

should be listed separately under travel in the budget.

3. Notices to Applicants.

a. False Statements: Applicants must set forth full, accurate, and

complete information as required by this solicitation. The penalty for

making false statements is prescribed in 18 U.S.C. 1001.

b. Application Clarification: DOE reserves the right to require

applications to be clarified or supplemented to the extent considered

necessary either through additional written submissions or oral

presentations.

c. Amendments: All amendments to this solicitation will be mailed

to recipients who submit a written request for the application forms.

d. Applicant's Past Performance: DOE reserves the right to solicit

from available sources relevant information concerning an applicant's

past performance and may consider such information in its evaluation.

e. Commitment of Public Funds: The Contracting Officer is the only

individual who can legally commit the Government to the expenditure of

public funds in connection with the proposed award. Any other

commitment, either explicit or implied, is invalid.

f. Effective Period of Application: All applications should remain

in effect for at least 180 days from the closing date.

g. Availability of Funds: The actual amount of funds to be

obligated in each fiscal year will be subject to availability of funds

appropriated by Congress.

h. Assurances and Certifications: DOE requires the submission of

preaward assurances of compliance and certifications which are mandated

by law. The assurance and certification forms will be provided in the

application package.

i. Preaward Costs: The government is not liable for any costs

incurred in preparation of an application. Awardees may incur preaward

costs up to ninety (90) days prior to the effective date of award.

Should the awardee take such action, it is done so at the awardee's

risk and does not impose any obligation on the DOE to issue an award.

j. Patents, Data, and Copyrights: Applicants are advised that

patents, data, and copyrights will be treated in accordance with 10 CFR

600.33.

k. Environmental Impact: An applicant environmental checklist will

be provided in the application package. Award will not be made until

all environmental requirements are completed.

l. To facilitate handling, please place the solicitation number DE-

PS07-94ID13285 on the outside of the application/proposal package.

Procurement Request Number: 07-94ID13285.000

Dated: January 26, 1994.

David W. Newnam,

Director, Procurement Services Division.

[FR Doc. 94-2597 Filed 2-3-94; 8:45 am]

BILLING CODE 6450-01-P