Att 11 BEM Overview.pdf

WARFIGHTER ALWAYS

The Nation’s Combat Logistics Support Agency E s t a b l i s h e d 1 9 6 1

DEFENSE LOGISTICS AGENCY

DLA

Bulk Bid Evaluation Model (BEM)

Darren Dunham/Shanice Whitfield Bulk Petroleum Purchase Analysts

March 22, 2023

WARFIGHTER ALWAYSWARFIGHTER ALWAYS 2

Bulk Petroleum Products

• Manage petroleum products in very large volumes

• Fewer contracts with large dollar values

• Estimated quantity with high minimum lift guarantee (75%)

• Awards on FOB Origin and FOB Destination Basis

• Extensive use of commercial distribution systems

• Distribution may be direct to demand point or through intermediate

Defense Fuel Supply Points (DFSPs)

• Socio-Economic considerations (CONUS only):

– Small Business Set-asides (Price Matching)

– HUBZone Premium Program

– 8(a) reservations

WARFIGHTER ALWAYSWARFIGHTER ALWAYS

Bid Evaluation Model

• Mixed-integer linear optimization program used to find the minimum laid down cost for the entire procurement.

• Laid Down Price includes:

– Offered product price

– All transportation costs

– All additive costs

– All intermediate DFSP distribution costs (fixed and variable)

– Excess throughput charges

– Offer specific evaluation factors

– Base Reference Price evaluation factors

BEM Data

• Enterprise Business System (EBS)

– Requirements and solicitation data

– Amendments

– Contract Awards

• Contract Information System (CIS)

– Amendments (schedule changes)

• Transportation Rates Information System (TRIS)

– Transportation rates

• Offer Entry Tool (OET)

– Initial offers and subsequent revisions

• BEM USER

– Additives, Escalators, DFSP costs, Evaluation factors

Offer Conditions

• Optional

• BEM evaluates complex offers

– Tiered pricing

– Volume restrictions (Minimums and Maximums)

– Multiple load capabilities (modes of transportation)

– Additive injection capabilities

– Offer conditions such as “Either/Or” and “One before Two”

• Conflicting Conditions

– Conditional statements must not conflict with each other (i.e.:

Minimum award by Tanker is 5 million and overall maximum award is 3 million)

Evaluation Example

Offers A: 6,000,000 USG by TT @ $2.95/gal B: 6,000,000 USG by PL @ $3.00/gal C: 1,000,000 USG by PL @ $2.98gal

Requirements Base 1: 3,000,000 gallons received by TT Base 2: 3,000,000 gallons received by TT Base 3: 1,000,000 gallons received by TT

Intermediate Depot Support Available Into X by PL, out by TT to all Req Into Y by PL, out by TT to all Req

PL = Pipeline; TT = Tank Truck

Offer A

6,000,000 USG

@$2.95

Offer C 1,000,000

USG @$2.98

Offer B 6,000,000

USG @$3.00

DFSP X

DFSP Y

Base 3

1,000,000 USG

Base 2 3,000,000

USG

Base 1

3,000,000 USG

.28

.02

.05

.01

.02 .05.02

.04

.02

.04

.20

.23

.06

Req 1 – Offer A (total cost $3.23/gal) Req 2 – Offer A (total cost $3.15/gal) Req 3 – Offer C(total cost $3.04/gal) Total cost: $22,180,000

Req 1 – Offer B (total cost $3.06/gal) Req 2 – Offer C (total cost 3.01/gal) Req 2 – Offer B (total cost $3.04/gal) Req 3 – Offer B(total cost $3.04/gal) Total cost: $21,310,000 $870K Savings Distribution Plan Generated

Evaluated on Offered Price Only: Evaluated on Laid-Down Cost:

NOTE: When determining the vendor in line for award, the lowest laid‐down cost is taken into account. A vendor may appear to be the best award choice for the government based on their offer price being the lowest, but once evaluation costs such as adjustment factors and/or transportation rates are applied, this will determine which vendor (dark grey oval) is the lowest laid down cost for the Government. There are intermediate DFSPs (light grey oval) to requirements locations (orange ovals) that have different transportation costs (light blue oval). The BEM will evaluate the best route based on the cheapest costs along the route.

BEM Rounds

INITIAL OFFERS

OET ROUND 1

INTERIM OFFERS

OET ROUND 2

IPR BEM RUN

MCBEW

FINAL OFFERS

OET ROUND 3

FPR BEM RUN –

MCBEW & LCR (if Price Reduction

Round)

PRICE REDUCTION

ROUND (Optional)

Sequence Of BEM Runs

Small Business Set-Aside Run

HUBZone Run

8(A) Run

Base Run

Optimization Run

Final Forced Run

BEM MCBEW

Laid Down Cost Report (LCR)

Post Award

• Once the solicitation is awarded, award data will be published at SAM.gov | Home

• For questions specific to an offer, please contact the Contracting Officer listed on the solicitation

Contact Information

• For questions concerning the functionality of the Bulk BEM/OET, please contact:

Darren Dunham Darren.M.Dunham@dla.mil

(571) 767-0338

Shanice Whitfield Shanice.Whitfield@dla.mil

(571) 767-8495

WARFIGHTER ALWAYSWARFIGHTER ALWAYS 13