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Port of Argentia

Terms of Reference

Argentia Offshore Marine Support & Service Base

Commercial Feasibility Study

Jan 2020

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Port of Argentia

Argentia Offshore Marine Support & Service Base – Commercial Feasibility Study – Terms of Reference

TERMS OF REFERENCE

Argentia Offshore Marine Support & Service Base

Commercial Feasibility Study

1. Port of Argentia Overview

Port of Argentia is a private not-for-profit corporation incorporated in 1995 under the laws of

Newfoundland and Labrador (under the legal title Argentia Management Authority Inc.) with a

mandate to provide effective stewardship of the seaport and industrial property at Argentia to

enhance the region’s economic vitality and quality of life.

The property under the control of the Port was formerly the site of a US Naval Base and came

into the Port’s possession in 2001 with the signing of Land Transfer Agreements with Public

Works & Government Services Canada. These Land Transfer Agreements also assigned

responsibility for the Argentia public marine terminal to Port of Argentia. Port of Argentia

operates the Argentia marine terminal through its wholly owned subsidiary, Argentia Port

Corporation (APC).

Argentia Harbour is located on the east side of Placentia Bay and offers ice free, year-round

access, a wide turning basin, heavy lift capacity, and up to 11-metre draft alongside 625 metres

of dock facilities. The sheltered, deep-water harbour is over 3 kilometers in length with a wide

turning basin. The marine terminal facility has a variety of stevedoring, transportation, crane

and other dock services available on site. There are two wharf structures that can be utilized by

shippers: i) Fleet Dock (three berths), and ii) Navy Dock (two berths).

The Port is certified by Transport Canada as compliant under the Marine Transportation

Security Regulations (MTSR), to receive vessels of International registry, with dock facilities

surrounded by a 40-hectare secure fenced compound. The Port of Argentia is well known as

one the finest ports in Atlantic Canada. For shippers operating out of Atlantic Canada,

Argentia’s most important attribute is the year around, ice-free access.

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Port of Argentia

Argentia Offshore Marine Support & Service Base – Commercial Feasibility Study – Terms of Reference

Overview - Port of Argentia

In addition to the marine terminal pictured above, the Port owns and operates:

• the Southside Industrial Park a fully developed industrial park ready for immediate

occupancy with 110 acres of property comprising 41 lots, and

• the 1000 acre Northside Industrial Area includes the Argentia marine terminal area. The

land is relatively flat “built” land and is in a prime location for heavy industrial projects.

Cooper Cove is a deep water cove just north of the Fleet Dock adjacent to this property.

• the Argentia Sunset Park, a recreational vehicle (RV) and travel trailer park,

which was officially opened on June 1, 2007. The Sunset Park is located past the

main entrance way to the Argentia site and is about one kilometer from the

Marine Atlantic Ferry terminal.

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Port of Argentia

Argentia Offshore Marine Support & Service Base – Commercial Feasibility Study – Terms of Reference

1000-acre Argentia Northside Industrial Area

The Port is led by a dedicated and experienced volunteer nine-member Board of Directors, and a

professional staff with knowledge in port and property management, and business and economic

development. Members of the staff team involved in this project for the Port include:

CEO (Acting) Mr. Ray Greene

General Manager Mr. Chris Newhook

Port Facility/Operations Officer Mr. Loyola Pomeroy

Office Manager Ms. Marion King

1. Study Objectives The primary objective of this study is to determine and confirm the commercial feasibility (and viability) of establishing an Offshore Marine Support & Service Base at Argentia. Additionally, input of operators and other industry players will be sought to inform design features and specifications of the facility.

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Port of Argentia

Argentia Offshore Marine Support & Service Base – Commercial Feasibility Study – Terms of Reference

2. Scope of Work and Deliverables The work plan will include, but not be limited to, the following components: 1) carrying out a comprehensive engagement plan with industry players to:

i) identify future needs and preferred design features and specifications of this facility

ii) determine interest in service capabilities to be made available at this facility once constructed,

as confirmed by obtaining letters of support, MOUs, and/or options and other conditional

operating agreements for use of this facility upon completion.

iii) identify potential value add to this marine base of the adjacent industrial site which will

remain following the West White Rose Project tow out from the Argentia graving dock

ii) and in doing the above confirm commercial feasibility (viability) of the proposed offshore

marine support & service base.

In no particular order of priority, the facility will be examined for the ability to match the following

needs:

➢ conventional supply base operations

➢ pipe spool base

➢ mooring system inspections and other inspections

➢ heavy lift quayside maintenance & repair facilities

➢ storage of oversized and other spares

➢ drill rig and other marine vessel alongside maintenance & repairs

➢ bollard pull testing

➢ storage and provision of fuels and other stores to offshore activities

➢ storage and inspection of casing, drill pipe and riser components

➢ offshore industry research (PRNL or other) and data storage centre.

This component will include submission of a final detailed report of work completed,

summarizing findings and making recommendations for the Port as it prepares for Phase III -

construction.

Phase II components include the following:

1. Commercial Feasibility Confirmation & Development

The following section provides the description, objectives, and timeline chart with milestones for

this program component as listed above. Separately in Appendix D the cash requirements for

the component by calendar quarter is provided.

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Port of Argentia

Argentia Offshore Marine Support & Service Base – Commercial Feasibility Study – Terms of Reference

Confirmation of commercial feasibility and viability is the key element of this component, as the

Port will require this information to highlight the potential for the Argentia offshore marine base

to assist in maximizing opportunities for participation for individuals and businesses on a local,

provincial and national level. This confirmation will be important in obtaining commitments of

support from government agencies and/or private sector entities that will be needed to

participate financially along with the Port in this development. Signed commitments to lease

lands and operate at this new facility, have marine vessels call at this new facility, and invest in

additional infrastructure to support future activities on site will be the ideal outcome from this

engagement. However, the Port will also seek to secure options to operate, memorandums of

understanding, and as well as letters of support as indicators of the value proposition presented

by this offshore base.

While engaging with the players in this industry, the Port, through the consulting team retained

to carry out this work, will also collect feedback from these players as to facility design

preferences that would best serve the industry going forward. This input could inform: necessary

alongside draft, dock heavy lift area capabilities, logistical layout, mooring buoys, bollard

strengths and other mooring needs, security requirements, electrical and other utilities

availability alongside, requirements for, and maximum distance from dock face to, indoor

storage, ship service needs (bunkers & other fuels, stevedoring, harbour cranes, welding &

other repairs, waste services, potable water, fire emergency services, etc.)

This new ice-free port facility will be matched against emerging needs for

➢ conventional supply base operations

➢ pipe spool base

➢ mooring system inspections and other inspections

➢ heavy lift quayside maintenance & repair facilities

➢ storage of oversized and other spares

➢ drill rig and other marine vessel alongside maintenance & repairs

➢ bollard pull testing

➢ storage and provision of fuels and other stores to offshore activities

➢ storage and inspection of casing, drill pipe and riser components

➢ offshore industry research (PRNL or other) and data storage centre.

Engagement with industry operators and Tier 1 and Tier 2 suppliers will serve to gather details

on optimal design specifications for the above possible activities and will include research of

comparable facilities operated by these players to identify best design layouts and best

practices in setting out on-site operating arrangements to enable fair access by as many

business operators as possible.

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Port of Argentia

Argentia Offshore Marine Support & Service Base – Commercial Feasibility Study – Terms of Reference

An added feature of Port of Argentia, following the 2022 tow out of the West White Rose Project

Concrete Gravity Structure from the Argentia Graving Dock (approximately 1 km from Cooper

Cove), will be a flat-bottomed deep-water berth (18 metres cd) enclosed on three sides. Also,

the Port will have a dredged harbour entry channel capable of welcoming deep draft mobile

operating drill units (MODUs).

The availability of this new berthing and industrial area will be examined in discussion with

industry players to determine any synergies with other sections of the Port being reviewed.

This project component will include submission of a final detailed report of work completed,

summarizing findings and making recommendations for the Port as it prepares for Phase III -

construction.

Commercial Feasibility & Development Component - Timelines

Component Element Start Finish Output/Milestones

Submit Engagement Plan

for Port Approval

Feb/20 Feb/20 Approved Engagement Plan

Execute Engagement Plan

Mar/20 Aug/20 Records of engagement with industry players

outlining discussions re Cooper Cove

offshore facility, and potential add on benefits

of graving dock site nearby.

Conduct supportive

research to inform future

facility design, layout and

operating arrangements

Mar/20 Aug/20 Report outlining preferred design and layout

specifications desired by industry

Report outlining best practices in site

operating agreements

Commercial Development Mar/20 Aug/20 Various letters of support, MOUs, options to

operate, and/or site partner investment

and/or operating agreements.

Final report on commercial development &

feasibility.

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Port of Argentia

Argentia Offshore Marine Support & Service Base – Commercial Feasibility Study – Terms of Reference

The research, industry engagement, analysis and conclusions considered as deliverables from this Plan are expected to provide the Port with sufficient information to:

• Confirm the feasibility and validity of the Argentia Offshore Marine Support & Service

Base project concept,

• Make specific decisions with respect to facility design based on the special interests and

needs of the offshore industry, as related to the Port through the industry engagement

process,

• Establish a priority list of companies seeking to participate or possibly participate in this infrastructure development which the Port can focus on as industry partners.

• Establish timelines for this development in order to maximize on upcoming offshore exploration and development opportunities.

Deliverables

The consultant will undertake the scope of work as identified above and provide updates

and reports as outlined below:

a) The consultant will prepare a Briefing Note (1-2 pages) at the end of each month during

the work phase of the project to keep AMA informed of the progress of the work and of

any issues that may have arisen during the period;

b) The Port and the consultant will meet in Argentia in early March 2020 to discuss the

work progress and to update the Port on any issues concerning the project work to date;

c) The consultant will submit to the Port a Draft Report (3 hard copies plus an electronic

copy) by Friday, August 28, 2020 ;

d) The consultant will make a presentation on the Draft report to the Port at a date to be

selected by the Port;

e) The Port will submit comments on the Draft Report to the consultant within 30 days

following the presentation of the Draft Report;

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Port of Argentia

Argentia Offshore Marine Support & Service Base – Commercial Feasibility Study – Terms of Reference

f) The consultant will submit to the Port a Final Report (3 hard copies plus an electronic

copy) by Friday, September 11, 2020. The consultant may, if requested by the Port

Board, be required to make a presentation on the Final Report.

2. Qualifications of Consultants

The Consulting team should demonstrate extensive experience and a solid track record in business/facility planning, research and feasibility analysis, marine and offshore activities, marketing and development, and the ability to prepare a practical and comprehensive work reports covering all of the requirements of the work plan. The proposal should include comments on the team’s experience related to the work required for this project along with any additional information which may assist the client in evaluating the credentials and experience of the proponent and their overall proposal.

Proposals are expected to include:

• a brief cover letter naming the Project Manager and sub-contractors, and the total budget including professional fees, expenses and HST;

• a description of the Project Manager (lead company) and any sub -contractors, along with a brief outlining their respective roles and qualifications as it relates to this specific project;

• the Methodology and approach to be used to carry out the requirements of the project;

• a minimum of three (3) references from any previous projects which involved a similar scope and scale of work;

• time and tasks assigned to team members;

• schedule (timeline) of project activities in chronological order which shows each activity and its duration;

• total project cost and a breakdown itemized by expected number of work days for each team member, hourly rates for all team members, travel budget and other related expenses, as well as a payment schedule; HST should also be shown as a separate item.

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Port of Argentia

Argentia Offshore Marine Support & Service Base – Commercial Feasibility Study – Terms of Reference

The proponent may wish to include additional information that may assist the Evaluation Committee in its assessment of the experience and qualifications of the proponent.

The proponent should ensure that a contact person from the proponent’s organization is assigned to handle questions from Port staff.

3. Evaluation Process

All proposals will be evaluated by a Committee established by the Port, using a point system applied to the following factors:

➢ Qualifications and experience of the consulting team as outlined in section 2 above;

➢ Demonstration in the proposal that there is a clear and thorough understanding of the scope of the work, the objectives to be achieved and the Port’s expectations of the work;

➢ The methodology and approach that the consultant proposes to use to accomplish the tasks required to be completed;

➢ Information contained in the proposal that would assist the Port in understanding the consultant ‘s current level of knowledge and experience which would be applied in an effort to recognize Argentia’s potential to attract new business opportunities;

➢ How the consultant plans to keep the Port informed during the work period, the type of presentations to be made at the report stages, any issues with the expected deliverables of the project;

➢ The due dates for completion of the draft and final reports, and the overall cost of the project.

Evaluation Criteria and Maximum Points

Criteria Max. Points Project Team Qualifications and Experience 25 Comprehension of the Project Tasks 15 Methodology & Approach to the Work Plan 20 Recognition of Potential for Business Opportunities 15 Reporting & Presentation 10 Timing and Cost 15 Total Points 100

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Port of Argentia

Argentia Offshore Marine Support & Service Base – Commercial Feasibility Study – Terms of Reference

The Evaluation Committee may develop a short list of candidates who may be requested to be interviewed. Proponents selected for interviews are expected to make a presentation to the Port at their own cost. The Port is not bound to accept the lowest cost or any proposal. Should any additional information relevant to these Terms of Reference come to light after the RFP advertisement has been placed, the Port will post this information on its website. Please refer to the Port’s website (www.portofargentia.ca) from time to time until the closing date of February 14th for the submission of proposals. All proponents will be informed that a successful candidate has been chosen as soon as possible following the decision by the Port.

4. Budget

The maximum Budget, is $150,000 CAN.

5. Ownership of Material The successful proponent will agree that all information submitted shall be the sole property of the Port. Any and all such information provided to the Port shall be treated as confidential and shall not be published or similarly used other than by the Corporation, its agents and staff.

6. Instructions for Submission of Proposals/Contact Three (3) hard copies, plus one electronic copy, of the proposals are to be received by the

Corporation by 1:00 p.m., NL time Friday, 14 Feb 2020 at the following address:

Port of Argentia c/o Chris Newhook, General Manager P O Box 95, Argentia, NL A0B 1W0

Envelopes are to be clearly marked "Proposal for Argentia Feasibility Study.” Proposals can also be hand delivered to:

Port of Argentia

Attn: Chris Newhook, General Manager

1 Augusta Avenue

Argentia, NL A0B 1W0

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Port of Argentia

Argentia Offshore Marine Support & Service Base – Commercial Feasibility Study – Terms of Reference

Mr. Newhook will also be the contact person should any proponents need to contact the Port for more information or for clarification of the Terms of Reference. Mr. Newhook can be reached at (709) 227-5502 ext 202.