[Federal Register Volume 59, Number 24 (Friday, February 4, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-2597]


[[Page Unknown]]

[Federal Register: February 4, 1994]


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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