®

Procurement Department

Date: January 25, 2017

REQUEST FOR PROPOSAL (RFP)

#SARC-0034-17JC

BID DESCRIPTION: Natural Gas Supply & Services Seneca Allegany Resort & Casino

BID DEADLINE: February 1, 2017 by 5pm ET

The Seneca Gaming Corporation Procurement Department is requesting bids for the above mentioned goods/service. All communications regarding this bid should be addressed to:

Seneca Gaming Corporation - Procurement Department

Attn: John Czepinski

310 Fourth Street

Niagara Falls, NY 14303

RE: # SARC- 0034-17JC

Telephone: (716) 501-2162

All questions should be submitted in writing and answers will be distributed to all bidders.

Proposals must be received by the Procurement Department on or before the date stated above by 5:00 pm ET. Proposals received after the deadline will not be considered. SGC recognizes e-mail as a sealed response in relation to this RFP.

Scope and Intent

Seneca Gaming Corporation (SGC) invites Energy Service Providers (ESP) to submit proposals for natural gas and related services in accordance with the requirements, terms, and conditions of the Request for Proposal (RFP) to serve the following sites for this customer:

This RFP is for firm delivery of natural gas for consumption at the Seneca Allegany Resort & Casino.

General Company Information

Seneca Allegany Casino & Hotel has 68,000 square feet of gaming space, with more than 2,200 slot machines and 40 table games. For more information, please visit our websites at http://www.senecagamingcorporation.com/ or http://www.senecaalleganycasino.com/.

Credit Information Required

A credit review of SGC is assumed favorable for you to submit a quote on this project by the deadline. In order to facilitate your research, the following information is provided:

Legal name of the contracting entity: Seneca Territory Gaming Corporation

Federal Identification Number: 55-0847440

Dunn and Bradstreet Number: 80-803-5997

Location / Annual
Load / LDC / Tariff / Read
Date / Current
Supplier
Expiration
Date
Seneca Allegany Casino & Hotel / 79171
DTH / National Fuel / Various / +-31st / 10/31/2017

Schedule of Events:

Request for Proposal issued on or about 01/25/2017

Submittal Deadline of Questions 01/30/2017 5PM ET

Request for Proposal due 02/01/2017 5PM ET

Vendor Requirements:

Performance: Bidders must have the necessary experience, knowledge, abilities, skills, and resources to satisfactorily perform the terms, conditions and requirements of the RFP. Subcontracting of services is not permitted without advance, express written consent. Goods/services must be provided by the entity submitting proposal. Vendor must be able to deliver/provide Natural Gas service at the time of RFP issuance. If you intend to sell natural gas and/or electricity to end users within New York State, you first must be deemed an eligible Energy Service Company (ESCO) by the Department of Public Service (DPS) and then be certified by the Utility in whose territory you will participate. For more information, visit the New York State PSC website at http://www/dps.state.ny.us/escoapp.htm

Alternative Products & Services

Alternative products and services provide an opportunity for the ESP to develop an innovative price solution for the customer. ESP’s are encouraged to propose any pricing strategy or terms that they believe may provide an overall lower cost to SGC. If you chose to provide alternative product and service scenarios, please indicate the potential savings over the tariff rate for any alternative presented.

Insurance: At all times during the Awarded Vendor(s) performance of any resulting Purchase Order, Agreement or Contract, unless otherwise waived by Buyer, Vendor shall obtain and keep in force insurance coverage of the types, and with the minimum coverage limits, as determined by Buyer's Risk Management Department. All insurance must be provided by a licensed company with a minimum AM Best rating designated by Buyer's Risk Management department. Vendor shall provide Buyer with a certificate of insurance before commencing work under any Purchase Order, Agreement or Contract and Buyer shall be named as an additional insured on Vendor’s General Liability and Automobile Liability policies, if applicable. Buyer’s insurance requirements vary according to the nature of the contract and degree of risk, but normally include general liability, automobile liability, and workers’ compensation coverage. In addition, in appropriate cases, Buyer may require professional liability/errors & omissions coverage and/or network security/privacy coverage. Vendor shall not insure the goods on Buyer's account unless the terms of the Agreement or Contract so require. Certificates of such coverage shall be submitted prior to work being started. Proof of insurance coverage must be provided to SGC Risk Management Department.

For any questions regarding insurance, please contact the Risk Management Department at . Please reference the Request for Proposal (RFP) number and Bid Description.

Failure to maintain requisite insurance will entitle SGC to immediately rescind and/or terminate any resultant business relationship and contract with Awarded Vendor.

Vendor Registration: Awarded Vendor(s) agrees to submit a completed Vendor Registration Form and designated fees as required by SGC’s regulator, the Seneca Gaming Authority (SGA). It is the Awarded Vendor(s) responsibility to fulfill the requirements, submit information and cooperate with any SGA investigation into its business functions, structures and principals when sales by said Awarded Vendor may reach or exceed Seventy Five Thousand Dollars ($75,000); and to maintain the registration/license through the duration of any purchase order or contract resulting from this RFP. Failure to do so will entitle SGC to immediately rescind and/or terminate any resultant contract or business relationship and may result in the suspension of payments to the Awarded Vendor.

The SGA may also, in an appropriate case, require the licensure of individual employees of the Awarded Vendor who perform certain services that are or may be closely associated with SGC’s casino operation. As SGA retains the discretion to make this type of determination on a case-by-case basis, SGC is unable at the RFP point in the bidding process to state definitively whether such licensure will be required in any particular case.

Seneca Nation of Indians Business License: In addition to SGA licensure, Awarded Vendor(s) with a calendar year spend of over $10,000 are required to obtain a Seneca Nation of Indians (SNI) business license throughout the course of any contract or business dealings with SGC. It is the Awarded Vendor(s) sole responsibility to maintain and renew the SNI business license in accordance with the terms set forth in the “Seneca Nation of Indians Business Code”. The cost of the license is currently $150 per calendar year. The Awarded Vendor must submit the application, together with the requisite fee, within 30 days following award of contract, to the following address: Seneca Nation of Indians, Business Permit Office, 12837 Rte. 438, Irving, NY 14081. To obtain the application form, and for any questions, please contact the SNI Business Office at (716) 532-4900, ext. 5033 or visit the SGC website at http://www.senecagamingcorporation.com/corp_standards.cfm. A copy of the Awarded Vendor’s application should contemporaneously be sent to Seneca Gaming Corporation - Procurement Department, 310 Fourth Street, Niagara Falls, NY 14303.

Confidentiality: This document contains information (and Bidders may have access to) confidential information of the SGC and/or its affiliate. Bidders are authorized to use this information solely in connection with the preparation of a response to this RFP and fulfillment of any resulting purchase order or contract award. In submitting response(s) to this RFP, Bidder(s) agree and represent that the Bidder(s) will not directly or indirectly use the Confidential Information beyond the scope of the authority granted by SGC or disseminate, disclose or in any way reveal the Confidential Information or any part thereof, except upon the express written approval of SGC. SGC will keep all documents received from Bidders on a confidential basis, save to the extent disclosure is required to comply with requirements of SGC’s corporate Charter, as regards the approval of SGC’s Audit Committee, Board of Directors and Council of the Seneca Nation of Indians, if applicable.

Disclosure of Potential Conflicts of Interest: If Bidder, or any director, officer, employee or owner of Bidder has a business or personal relationship with a director, officer or employee of the Seneca Gaming Corporation (or its affiliates) that may create a conflict of interest, or appearance of impropriety, for or relating to such director, officer or employee in connection with the entry into, or ongoing performance of, the transaction(s) or service(s) contemplated under this RFP, Bidder must disclose such conflict to the Corporation, in writing, to the extent Bidder has knowledge thereof.

Kickback Covenant: SGC will not tolerate Kickbacks in any form. A “Kickback” shall be defined as any cash, fee, commission, credit, gift, gratuity, thing of value or compensation of any kind in exchange for favorable treatment in obtaining or retaining any purchase order or contract servicing SGC. Bidder agrees that its officers or employees have not and will not provide or attempt to provide, either directly or indirectly, any Kickback to any employees of SGC, the Seneca Nation of Indians (the “Nation”) or their respective officers, directors, employees or agents, nor to any citizens of the Nation.

Conditions: Bidders shall question the conditions under which the goods and/or services will be used by SGC to guarantee the goods and/or services will be of sufficient quality and fit for the purposes of the bid specification. To proceed with the supply of goods and/or services shall mean acceptance of site conditions. Failure to comply with this clause shall in no way serve as the basis of any claims by the Bidder against SGC. No allowances will be made for failure to make proper site investigations or to completely understand the full nature of the requirements involved.

Monetary threshold: At no time will the Awarded Vendor’s aggregate fees, billings, requests for reimbursement and/or invoices (collectively, “Billings”) to SGC exceed two million nine hundred ninety-nine thousand nine hundred ninety-nine dollars ($2,999,999) (the “monetary threshold”) unless and until advance written authorization to exceed the monetary threshold is granted by the Council of the Seneca Nation of Indians. SGC will not be liable for Billings which exceed the monetary threshold unless the requisite approval of the Council of the Seneca Nation of Indians has been obtained, Awarded Vendor must notify SGC when aggregate Billings reach the level of two million five hundred thousand dollars ($2,500,000). For this purpose, the term “SGC” includes the Seneca Gaming Corporation and all subsidiaries.

Bid Information:

A.  This RFP does not commit SGC to award a contract, to pay any costs incurred in the preparation of the RFP, nor to procure or contract for services or supplies.

B.  Proposal- Awarded Vendors should expect that their response to the RFP and any accompanying supporting materials (collectively, the “Proposal”) will be incorporated into any contract signed with Seneca Resorts and Casinos.

C.  Tax Exempt Status: Seneca Gaming Corporation is a governmental instrumentality of the Seneca Nation of Indians and will provide a New York State tax exemption certificate issued in the name of the Seneca Nation of Indians, as applicable.

D.  Minority Bidders: SGC encourages Bidders to solicit Native American, minority or women-owned businesses and small disadvantaged businesses as potential product suppliers. If your company falls into any of these categories, please note as such on your proposal.

E.  Payment Terms: Please provide your most competitive pricing and any additional offers. SGC will compensate Awarded Vendors based on submitted invoices according to payment and cycle dates mutually agreed upon and stated in the contract. SGC standard payment terms are FOB destination, Net 45 days after delivery of goods and/or services and receipt of a correct invoice. Bidder is encouraged to indicate any additional early payment/ discount terms in its Proposal. It is the policy of SGC not to provide deposits unless significant discounts or special circumstances apply.

F.  SGC Standard Terms and Conditions: Any purchase order or contract flowing from this RFP is subject to the terms and conditions hereof as well as to SGC Terms and Conditions which are available on the following website: http://www.senecagamingcorporation.com/corp_standards.cfm. Reference to, or inclusion of, the Bidder’s preprinted terms and conditions with Bidder’s Proposal will not be considered as exception to SGC Terms and Conditions.

G.  Audit/Performance Review: SGC must be permitted to conduct financial or inventory audit(s) with any or all of its Procurement, Financial and/or Internal Audit resources (or using a third party accounting/auditing firm )during or after the term of the contract with Awarded Vendor. Contract audits may also be performed periodically to evaluate performance against pre-determined metrics and focus on what can be improved.

H.  Business Continuity: For RFP’s involving strategic commodities/services, provide an overview of your disaster recovery/business continuity plan (the “Plan”). The Plan indicates how Bidder minimizes the risk of interruption to Bidder’s ability to provide the goods and/or services contemplated in this RFP in the event of specified occurrence ; Bidder’s critical supplier strategy to ensure continuity of suppliers in such event; and Bidders process or criteria for prioritizing customer demands during a crisis.

I.  It is the policy of SGC that all Proposals are to be held unopened and confidential until after the closing date and time. At the bid opening, Proposals will be opened by the RFP contact and are reviewed by a compliance representative.

J.  SGC reserves the right to assess damages for the non-delivery of goods/services.

K.  SGC reserves the right to terminate or rescind any agreement, contract or purchase order if, in its opinion, there is a failure by the Awarded Vendor (s), at any time, to perform/supply adequately the stipulations of the Scope of Work, as stipulated in this RFP, the contract or purchase order, or if the goods or services supplied by the Awarded Vendor are, in the opinion of SGC of unacceptable quality.

L.  Bid Validity: Bidder’s bid submission shall remain valid a minimum of ninety (90) days from the bid closing date.

Proposal Evaluation/Vendor Selection:

A.  Proposals will be evaluated to determine their completeness and compliance with the mandatory requirements and qualifications specified throughout this document. Failure to comply with one or more of these requirements may result in the proposal being judged non-responsive. SGC reserves the right to waive deviations it deems non-material and/or to reject any and all Proposals in its sole discretion.