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).
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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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