Att 11 BEM Overview.pdf

PDF 794 KB Posted

Attached to
Western Pacific Bulk Fuels Purchase Program (WESTPAC) Federal contract opportunity
Solicitation number
SPE602-24-R-0708
Issued by
Defense Logistics Agency Energy

About this file

This document is a presentation on the Bulk Bid Evaluation Model (BEM) used by the Defense Logistics Agency (DLA) to evaluate offers for large volume petroleum product procurements.

The BEM is a mixed-integer linear optimization program that is used to determine the minimum laid-down cost for the entire procurement, which includes the offered product price, transportation costs, additive costs, intermediate distribution costs, excess throughput charges, and other offer-specific and base reference price evaluation factors. The presentation provides an overview of the BEM process, data sources, offer conditions that can be evaluated, and an example evaluation. It also outlines the sequence of BEM runs conducted, including small business, HUBZone, and 8(a) set-aside runs. After award, the contract information is published on SAM.gov.

The presentation supports the solicitation SPE602-24-R-0708 for the Western Pacific Bulk Fuels Purchase Program (WESTPAC), which covers annual bulk petroleum requirements for the Western Pacific and Middle East Regions, including F76, JA1, and JP5 fuels. The delivery period is January 1, 2025 through December 31, 2025 and vendors will be required to submit offers through the Offer Entry Tool (OET).

View the file

Other files for this federal contract opportunity

Other files attached to Western Pacific Bulk Fuels Purchase Program (WESTPAC), newest first.
File Type Posted
Sole_Source_PL_JA_Redacted.pdf PDF
Minimum_Cost_Solution_Bid_Evaluation.pdf PDF
Summary_of_Awards.pdf PDF
Minimum_Laid-Down_Cost_Contractor_Summary.pdf PDF
Minimum_Cost_Solution_Contract-Value.pdf PDF
Minimum_Cost_Solution_Bid_Award.pdf PDF
Qatex_JA_P00003_Redact2.pdf PDF
AMD 0006_SF30.pdf PDF
RFP_SPE602-24-R-0708_Conformed_to_AMD_0005.pdf PDF
AMD 0005_SF30.pdf PDF
RFP_SPE602-24-R-0708_Conformed_to_AMD_0004.pdf PDF
AMD 0004_SF30.pdf PDF
Att 12 FAR Part 12 Addenda_(AMD0004).pdf PDF
RFP SPE602-24-R-0708 - 0003.pdf PDF
AMD_0003_SF30.pdf PDF
MIL-DTL-5624X (JP5).pdf PDF
Att 6 QAPs.pdf PDF
AMD 0002_SF30.pdf PDF
RFP SPE602-24-R-0708-0001.pdf PDF
WPAC_Questions and Answers.pdf PDF
Att 12 FAR Part 12 Addenda.pdf PDF
AMD 0001_SF30.pdf PDF
RFP SPE602-24-R-0708.pdf PDF
Att 2 Equal Value Exchanges of Fuel.pdf PDF
Att 7 OET Guidance.pdf PDF
Att 8 Map Coordinate Desk Guide.pdf PDF
Att 10 OET OSP Crosswalk.pdf PDF
Att 12 FAR Part 12 Addenda.pdf PDF
Att 1 Fill-Ins.docx DOCX document
Att 3 DL2019 Small Business.pdf PDF
Att 4 F76 Traceability Sheet.pdf PDF
Att 5 AFRICOM Foreign Vendor Info Sheet.pdf PDF
Att 6 QAPs.pdf PDF
Att 9 OET Overview.pdf PDF
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Text version

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)

Sean Lucas Bulk Petroleum Purchase Analyst

February 8, 2024

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:

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 https://sam.gov/content/home

Contact Information

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

Sean Lucas Sean.Lucas@dla.mil

(571) 767-8407 mailto:Sean.Lucas@dla.mil

WARFIGHTER ALWAYSWARFIGHTER ALWAYS 13

Bulk Bid Evaluation Model (BEM)
Bulk Petroleum Products
Bid Evaluation Model
BEM Data
Offer Conditions
Evaluation Example�
BEM Rounds
Sequence Of BEM Runs�
BEM MCBEW
Laid Down Cost Report (LCR)
Post Award�
Contact Information �
Slide Number 13

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