3-ATT B SOW Final.docx

Scope of Work Attachment B BW26-3: Gasoline and Diesel Fuel

I. PURPOSE

A. The purpose of this State of Utah Cooperative Contract will be for the benefit and use of all Eligible Users, which includes the State of Utah’s government departments, institutions, agencies, political subdivisions (e.g., colleges, school districts, counties, cities, etc.), and, as applicable, nonprofit organizations, agencies of the federal government, or any other entity authorized by the laws of the State of Utah to participate in State Cooperative Contracts. This contract does not guarantee any sales.

B. Any awarded contract may be modified to incorporate new technology or technological upgrades related to the Scope of Work throughout the term of the contract.

II. ANTICIPATED PRODUCTS, SERVICES, and BACKGROUND

A. It is anticipated that the awarded contractors will provide Gasoline and Diesel Fuel to Eligible Users in the State of Utah.

B. The resulting contracts will replace the expiring “Gasoline and Diesel Fuel” State Cooperative Contracts. The current contracts receive an average of $20,000,000 in usage annually.

III. SCOPE OF WORK

A. Contractors must provide at least one of the following categories of Bulk Fuel in at least 1 Utah County

1. Gasoline

2. Non-Ethanol Gasoline

3. Diesel #1

4. Diesel #2

B. Specifications:

1. Gasoline Fuel:

a. Gasoline must meet or exceed the most current and active standard specification listed in the American Society for Testing and Materials (ASTM) Specification D4814.

b. Contractors must provide unleaded gasoline with an anti-knock index “(R+M)/2” of at least 87.

c. Contractors must clearly indicate the octane rating and fuel grade on all bill of lading (BOL) documents and delivery tickets provided upon drop.

2. Diesel Fuel

a. Diesel Fuel must meet or exceed the most current and active standard specification listed in the ASTM Specification D975

b. Diesel fuel must meet or exceed standard specifications listed in ASTM Specification D4294.

c. Blended Diesel Fuel must meet or exceed ASTM Specification D975 low-temperature requirements, with Cloud Point testing conforming to ASTM D2500.

d. Contractors must provide blended diesel that is suitable for use at temperatures that can be reasonably expected to occur.

C. Testing:

1. At various times and places of delivery, samples of the products delivered under awarded contract may be taken for the purpose of determining whether the products conform to the specifications cited in this proposal. The right is reserved to cancel the contract at Contractor’s expense for inferior deliveries, if product is found to contain dirt or sediment or if it will cause clogging and/or prevent proper operation of equipment. Testing shall be the responsibility of the buyer or other authorized participant and shall not be included in the price of this proposal.

D. Spillage:

1. It is the responsibility of the seller to provide for the delivery of the products in an efficient and workman- like manner. Spillage which could result in dangerous conditions for environmental contamination, maintenance, repairs or pedestrian or vehicular traffic is to be addressed immediately by the seller. If it becomes necessary for the buyer to remedy or provide such remedy to a damaged area, the cost shall be reimbursed by the seller to the buyer.

E. Ordering and Invoicing:

1. Order Confirmation: Contractor will confirm orders no later than 5:00 PM MST on the following business day from when the order is received. Orders placed after 5:00 PM MST from eligible users will be considered placed on the following business day. Deliveries will be made no later than the following business day after order confirmation, unless a later delivery is requested by the eligible user.

2. Base Commodity Pricing: The base price per gallon for all fuel delivered under this contract shall be based on the OPIS Unbranded Gross Rack Average published for the designated terminal on the actual Date of Delivery, specifically utilizing the 10:00 AM ET OPIS Contract Summary report.

3. Terminal Determination & Outages: Pricing shall be pegged to the designated primary OPIS terminal for the applicable Freight Zone specified in the Contractor’s awarded Cost Sheet. In the event of a terminal supply allocation, fuel shortage, or emergency redirection requiring fuel to be pulled from an alternate terminal, the Contractor must obtain written approval from the State Contract Administrator prior to delivery, and pricing shall temporarily reflect the OPIS rack average for that approved alternate terminal on the date of delivery.

4. Invoice Verification Requirements: To authorize payment, the Contractor must attach a dated copy or verifiable excerpt of the official OPIS publication showing the rack average for the specific product, terminal, and delivery date to every invoice submitted. Invoices missing the required OPIS verification documentation will be deemed incomplete and held without penalty to the State until supporting proof is provided.

5. Taxes: All taxes and mandatory government fees must be clearly itemized as separate, distinct line items on every invoice.

IV. PRICING INFORMATION

A. Contractor will provide pricing in their completed Attachment C: Cost Sheet. Contractors will be awarded subcategory tiers based on the scoring matrix. Contractors may only provide products in the subcategory tiers in which they are awarded.

B. Taxes and Regulatory Fees: Contractor’s awarded markup (margin) and freight rates must remain firm and independent of any tax liabilities. Contractors shall not combine, bundle, or hide taxes or regulatory fees within their markup or freight rates. Contractor is authorized to pass through mandatory, legally applicable federal, state, and local motor fuel taxes and environmental fees (including, but not limited to, the Utah Motor Fuel / Special Fuel Tax, the Utah Environmental Assurance Fee, and the Federal Leaking Underground Storage Tank [LUST] fee).

C. Tax Exemptions & Rate Changes: The State of Utah and many of its participating political subdivisions are exempt from certain taxes, such as the Federal Excise Tax on motor fuels. The Contractor must recognize and immediately apply all valid tax exemption certificates provided by participating Eligible Users. The Contractor shall not invoice Eligible Users for taxes from which they are legally exempt. For taxes where the Eligible User is required by law to pay at the time of purchase and subsequently seeks a statutory refund directly from the taxing authority (e.g., via the Utah State Tax Commission), the Contractor shall correctly calculate and clearly itemize those taxes. If statutory tax rates or environmental fees increase or decrease during the contract term, the Contractor is authorized to adjust the pass-through amounts strictly to match the new statutory rates on their legislative effective date.

D. All pricing and rates are guaranteed during the 12-month price guarantee period. After the price guarantee period is over, the Contractor may submit a request to amend the contract pricing if the following conditions are met:

1. The price guarantee period of 12 months has been met.

2. The request is made at least 30 days in advance of the expected effective date.

3. The price adjustment must not produce a higher profit margin than the original contract pricing

4. The request includes a thorough market analysis (e.g. data from the Producer Price Index) and/or documentation with objective data from the Contractor’s suppliers of materials or products.

The Division of Purchasing’s Contract Manager has the right to approve or deny any price adjustment requests. Pricing will remain as stated in the agreement beyond the price guarantee period until an amendment has been executed.

E. New products or services with associated pricing may be added to the contract upon approval of the Division of Purchasing’s Contract Manager. Additions, with their applicable pricing, must be incorporated via amendment.