RFI_-_08_Mar.xlsx

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Request for Information-Fuel Management Services
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39111988
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2013 RFI

Questions for Fuel Management Services
1Explain what type of fuel purchasing strategies work best for a retailer such as the Exchange. If a purchasing strategy includes both supply contracts and spot purchases, what percentage of each of the total purchase is customary and the most advantageous for a retailer of the size of the Exchange?
Business Requirements
2Briefly describe how forecasting is used to determine dispatching of loads? Does the forecasting use "real" market pricing, geopolitical factors, weather factors, historical trends, etc.? Describe how your solution ensures compliance with contract terms for ratable gallons and is able to balance real-time market trends to make the most advantageous business decision to order, release, or hold fuel inventory for the Exchange's facilities.
3How do you believe a retailer the size and extent of the Exchange should determine its cost of fuel delivered to its retail sites? 1. How would you determine the current annual cost of fuel to the Exchange? 2. How would you compare this current cost of fuel to a benchmark, such as an OPIS rate? 3. Is one benchmark appropriate for all Exchange locations located throughout the US? If not, explain how many benchmarks should be used and why? 4. What data do you need to be able to determine that cost to the Exchange for (Calendar Year) (Exchange Fiscal Year) 2012?
4Besides purchase cost of fuel, are there other measurable financial benefits of your software or hosted solution? If so, explain how the Exchange could attain these benefits and how they would be quantified. How can the Exchange know that it is realizing results and what is it based on?
5Does your software solution provide Daily Pricing Feed (Cost Data) i.e. DTN, PLATTS, Spot Market?
6What technology and systems does your company have in place to meet customer requirements? (online reporting, analysis, etc.)
7Describe how your solution would handle tax issues 1.verify the current tax rate; 2.bill based on the tax which takes into account tax exemptions; 3. those exemptions which are exclusive to the Exchange; and 4. fuel distributor tax allowances if/where applicable?
8Describe how your company actively pursues controlling accessorial charges such as fuel minimums, order cancellation, stop charges, demurrage, notification and various other charges that seem to be overtaking the industry? What are your performance metrics for Run-outs (Run-outs are determined by the defined tank bottom, whether it is 1000 gallons or 700 gallons which is preset by the customer) and Retains? Are these performance metrics based on all customers (software & hosted)? If the performance metrics are only based on certain customers, what is the criteria (length in program, size of customer, only hosted customers, etc.)? Will your firm take financial responsibility for errors which lead to these costs?
9Define your track and trace methods. How are actual shipment events monitored against the estimated / expected times in the dispatch notice? What are your procedures for assuring if a site receives delivery of fuel? What is the notification process to the customer of a non-delivery? How does your system account for the delivery of the correct fuel type to each location? How does your system realize when a fuel tanker has been filled but the designated site never receives the fuel?
10Describe your normal pricing model/structure for the fuel management system? Do you offer incentive pricing? (reduced fee for costs above a benchmark(s), bonus fee for costs below a benchmark(s))
11Describe how your system looks at SPOT pricing with its components? How does the system decide/determine which SPOT pricing it will accept versus the contracted price? Does your system consistently throughout the month look at SPOT pricing on a daily basis? Does your system match up the agreed spot price with the price as delivered? If so, describe how this is done.
12Explain how your fuel management system would assist the Exchange in the solicitation and award of fuel procurements. Explain how your fuel management system would compare different benchmarks in evaluating proposals from various suppliers? Is it customary and advantageous to solicit proposals based on various benchmarks or to dictate a single benchmark in the solicitation of proposals? Can your system evaluate proposals based on different percentages of allocations (I.e., supplier provides different diff for 60% of volume versus 80% of volume)?
13Explain how your fuel management system would evaluate seasonal bids (different differential offered for summer versus winter). Is the allowance of seasonal bids by suppliers on yearly contracts allow for better pricing for the customer? Is it a viable option with your system? If not, explain why.
14Describe how your system calculate real cost of fuel accounts by using fuel cost plus accessorial charges factored in, such as the demurrage charges, pump fees, etc.
Technical Requirements:
15Describe how credit/rebills will be handled in the interface. Are they finalized (matched to receiving) before being interfaced? If so, will the history of credit/rebills be interfaced along with the final invoice when the invoice is finalized and interfaced? Describe how adjustments will be handled after the final invoice is interfaced and what would cause these adjustments. Describe how the finalized invoice, the credit/rebill history, and adjustments can be uniquely identified, linked together and reconciled. How are index corrections and requests for credit and re-bills handled?
16Do you have hosted software or in-house solutions for fuel management or both available for use?
In-House Solution
17Can the Exchange use your product or will the Exchange need to hire “a bunch of IT guys” to help use it?
18Who will be responsible for setting up the initial system? What type of support is provided after implementation?
19Does the User Interface depend on any client software or specific configuration?
20Can the solution be customized? If so, describe how the solution can be customized. Will the Exchange have access to the source code to customize the solution?
Hosted Environment
21Describe your hosted solution to include:
1. Each layer of the solution (software, platform, and infrastructure) does the company own all layers of the solution? If not, who provides each layer (i.e. is any layer subcontracted). If subcontracted, identify the country of origin for the subcontractors.
2. Where is the Exchange data going to reside and describe how the Exchange data will be kept secure.
3. What level of Exchange associate interaction is necessary? What level of interaction is necessary for each of the following Exchange personnel: finance and accounting; procurement; operational/service station; other?
Project Management
22Provide the time required from notification of selection of your software solution/services to starting the project.
23Provide your definition of a successful implementation. Provide examples where you successfully implemented your system and what made it successful.
Documentation
24Describe how you benchmark? Is it year-over-year such as 2012 compared to 2011? Or what do you use as a basis for benchmark?
25The Exchange requires the following reports: daily incident report; weekly summary report; monthly usage tracking report for each supplier/carrier; monthly itemized accessorial charges report; cumulative monthly incident report; site specific itemized reports of accessorial charges (how much and how often) such as demurrage, retain, etc.; and year-over-year comparison reporting. Describe your company's reporting capability. Can the Exchange create its own reports with your software solution/services?
Past Performance / Experience
26Provide a brief history and overview of your company. How do you differentiate your company from your competitors? Who are your competitors? What do you consider your greatest value which will benefit your customer to increase their business/bottom line? Describe your company’s strength and relative position within your industry.
27If your company uses "industry standards" for measurement where are you obtaining the industry standard numbers? Who do you consider your peers in the industry? How do you collect industry information? Who is the community of companies you would compare the Exchange to?
28Describe the types of Quality Controls you have in place.
Maintenance and Support
29Provide the levels of support in your standard maintenance contract. If a hosted solution describe the subscription program.
30Do you have your own in-house IT department so if there are changes needed to the software it can be performed quickly? If not, who do you outsource it to and how quickly do they respond to your requests?
Customer Base
31Provide three to five client references with contact names from companies who are comparable to the Exchange that are currently using your services which the Exchange can contact.
32Has your firm provided fuel management services to any US Government entities? If so, please provide a list.
Final Question
33Are there other questions you think the Exchange should have asked to help understand the operation or benefits of your system for Exchange operations? If so, please explain the questions you would have recommended and your answers.

Detailed Questions Attachment No. 1

Detailed Questions Fuel Management Services Page &P of &N

Sheet2

Sheet3

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