Agenda Item
ii. Statewide Contract for Natural Gas No. 99999-001-SPD0000164-0002 Contract Extension Approval (Scana Energy Marketing, Inc. in the amount not to exceed $2,500,000)
Summary: Presented by: Mr. Richard H. Boyd, Director of Design & Construction, Division of Operations
Request: It is requested that the Board of Education authorize the District to purchase natural gas from SCANA Energy Marketing, Inc. in accordance with the Statewide Contract for Natural Gas in an amount not-to-exceed $2,500,000, through December 31, 2023.
Why: The DeKalb County School District is requesting to continue purchasing natural gas utilizing the buying power of the Statewide Contract for Natural Gas No. Contract 99999-001-SPD0000164. On December 9, 2019 the BOE approved the initial use of this contract. On January 10, 2022 the BOE approved the use of this contract for the second year of the contract period of January 1, 2022 through December 31, 2022.
This agenda item will authorize the use of this contract for an additional year from January 1, 2023 through December 31, 2023.
Details: On March 13, 2019, the State of Georgia re-solicited natural gas services through the RFP process and SCANA Energy Marketing, Inc. was awarded the Statewide Contract for Natural Gas to provide natural gas service for the Atlanta market on October 1, 2019. The primary service under this contract is gas delivery, but it also includes a Program Manager that monitors prices for contract compliance and make recommendations as to the best price plan.
By utilizing this agreement, DCSD will continue to purchase natural gas under the new Statewide Contract and have access to the services of the Program Manager to continue monitoring prices and maintain the option to develop an RFP should market conditions justify the need in the future.
Financial impact: The total budget for Natural Gas is allocated from the cost code (100.2600.562000.00011.7520.9990.8013.040.0000) under the Operations General Fund Budget in the amount not-to-exceed $2,500,000.00.
Contact: Mr. Richard H. Boyd, Director of Design & Construction, 678-676-1483
Mr. Erick Hofstetter, Chief Operating Officer, 678-676-1475
Effective: Upon board approval
Status: Approved by General Counsel
CHRONOLOGY OF THE AGENDA ITEM
On March 13, 2019, the State of Georgia re-solicited natural gas services
through the RFP process and SCANA Energy Marketing, Inc. was awarded
the Statewide Contract for Natural Gas to provide natural gas service for the
Atlanta market on October 1, 2019. The primary service under this contract
is gas delivery, but it also includes a Program Manager that monitors prices
for contract compliance and make recommendations as to the best price plan.
At its business meeting on December 9, 2019 the BOE approved the initial use
of this Statewide Contract. The State contract was issued for a period of two
(2) years. As required by O.C.G.A. ยง 20-2-506, a contract shall terminate at
the close of each calendar year, therefore, on December 7, 2020 the BOE
approved the use of this contract for the second year of the contract period of
January 1, 2021 through December 31, 2021.
At its business meeting on January 10, 2022 the BOE approved the use of this
contract for an additional year from January 1, 2022 through December 31,
2022.
This agenda item will authorize the use of this contract for an additional year
from January 1, 2023 through December 31, 2023.
By utilizing this agreement DCSD, will continue to purchase natural gas under
the new Statewide Contract and have access to the services of the Program
Manager to continue monitoring prices and maintain the option to develop an
RFP should market conditions justify the need in the future.