AMENDMENT 1 FUEL BARBARA LOIS.pdf

AMENDMENT 1

6/29/2022

This solicitation is changed to read firm fixed price with Economic Price Adjustments.

NOTE: For the option years OPIS rates, please specify the basis of escalation (i.e.

Consumer Price Index or Producer Price Index)

The delivery of this fuel is 30 days after award.

OIL PRICE INFORMATION SERVICE (OPIS): A company that provides pricing and news information for petroleum pricing, news and analysis for gasoline, diesel, ethanol, biodiesel, LP-gas, jet fuel, crude, natural gas, refinery feedstocks, residual fuel, and kerosene.

BASE REFERENCE PRICE (BRP): The contractor shall furnish to the Contracting Officer a copy of the Published OPIS rack price in effect on the contract award date for Red Dyed#2 Ultra Low Sulfur Diesel. The same procedure will be followed each time MARAD exercises an optional period of performance. The BRP applicable to the period of performance (base or option periods) will be used in establishing the UPWARD CEILING ECONOMIC PRICE ADJUSTMENT as described below.

Reference price: This means the end of day OPIS contract average effective that day for the product delivered to MARAD. In the event there is no price published for date of delivery, then it shall be the item’s reference as last previously published.

Date of delivery: This means the date product is delivered to MARAD.

Published: This means the price issued in either print or electronic format by OPIS, unless otherwise specifically stated. In the event of a conflict between the prices set forth in the print version and those set forth in the electronic version for the same date, the electronic version shall prevail, unless otherwise specified.

CALCULATIONS: The prices payable hereunder shall be determined by adding to the award price the same number of cents, or fraction thereof, that the daily reference price increases or decreases, per like unit of measure. All arithmetical calculations, including the final adjusted unit price, shall be carried to six decimal places, truncated.

Red-Dye #2 Fuel: Pricing for invoicing purposes shall be based on a unit price in dollars/gallon delivered which is the sum of the following two components:

1. The daily OPIS Red Dye # 2 Ultra Low Sulfur Rack Price (dollars per gallon) for the date of delivery and the product delivered. Invoices shall include a copy of the Published OPIS price in effect on the date of delivery.

2. The contract awarded unit price (dollars per gallon) for cost of delivery during the period of performance which shall include all labor, equipment, transportation expenses, overhead, general and administrative expenses and profit.

The two component unit prices shall be summed and multiplied by the actual quantity delivered to arrive at the invoice amount. The invoice amount shall be rounded to the nearest cent.

REVISION OF PUBLISHED REFERENCE PRICE: In the event—

(I) Any applicable reference price is discontinued or its method of derivation is altered substantially; or (II) The Contracting Officer determines that the reference price consistently and substantially failed to reflect market conditions, the parties shall mutually agree upon an appropriate and comparable substitute for determining the price adjustments hereunder. The contract shall be modified to reflect such substitute effective on the date the reference price was discontinued, altered, or began to consistently and substantially fail to reflect market conditions. If the parties fail to agree on an appropriate substitute, the matter shall be resolved in accordance with FAR Clause 52.233-1 – Disputes.

UPWARD CEILING ON ECONOMIC PRICE ADJUSTMENT: The Contractor agrees that the total increase in any contract unit price pursuant to these economic price adjustment provisions shall not exceed 120 percent of the base reference price.

(I) If any time the Contractor has reason to believe that within the near future a price adjustment under the provisions of this clause will be required that will exceed the current contracting ceiling price for any item, the Contractor shall promptly notify the Contracting Officer in writing of the expected increase. The notification shall include a revised ceiling the Contractor believes is sufficient to permit completion of remaining contract performance, along with an appropriate explanation and documentation as required by the Contracting Officer.

(II) If an actual increase in the reference price would raise a contract unit price above the current ceiling, the Contractor shall have no obligation under this contract to fill pending or future orders for such item, as of the effective date of the increase, unless the Contracting Officer issues a contract modification to raise the ceiling. If the contract ceiling will not be raised, the Contracting Officer shall so promptly notify the Contractor in writing.

FINAL INVOICE: The Contractor shall include a statement of final invoice that the amounts invoiced hereunder have applied all decreases required by this clause.

PUBLICATION: The following index is to be used:

OPIS – Oil Price Information Service PAD Reports (average daily price for Beaumont TX, Red Dyed #2 Ultra Low Sulfur Diesel)