Attachment 10 - BEM Overview 2025.pdf
PDF 3 MB Posted
- Attached to
- Rocky Mountain /West Coast / Offshore Program Federal contract opportunity
- Solicitation number
- SPE602-25-R-0705
- Issued by
- Defense Logistics Agency Energy
About this file
This is a presentation about the Defense Logistics Agency's Bulk Bid Evaluation Model (BEM), dated February 2025. The BEM is an optimization program using mixed-integer linear evaluation to determine minimum laid-down costs for bulk petroleum procurements.
The presentation details how BEM evaluates procurement costs by considering offered product price, transportation costs, additive costs, storage/onward distribution costs (including fixed costs, variable costs, and excess throughput charges), and offer-specific evaluation factors. The evaluation process includes multiple rounds: Base Run, 8(A) Run, HUBZone Run, Small Business Set-Aside Run, Final Forced Run, and Optimization Run. The model handles various procurement characteristics including large volume petroleum contracts with 75% minimum lift guarantees, FOB Origin and FOB Destination basis awards, commercial distribution systems usage, and socio-economic considerations for domestic procurements (8(a) Reservations, HUB Zone Premium Program, and Small Business Set-asides with Price Matching).
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Text version
Bulk Bid Evaluation Model (BEM)
Sean Lucas February 2025
WARFIGHTER ALWAYSPEOPLE PRECISION POSTURE PARTNERSHIPS
Bulk Petroleum Procurement Characteristics
2 of xx
• Procurement of large volumes of petroleum products
• Large dollar value contracts
• 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 point of demand or through intermediate terminal(s)
• Socio-Economic considerations (Domestic Procurements only):
• 8(a) Reservations
• HUB Zone Premium Program
• Small Business Set-asides (Price Matching)
Offer Conditions
Bid Evaluation Model (BEM)
3 of xx
• Optimization program (mixed-integer linear evaluation) used to find the minimum laid down cost for the procurement.
• Laid Down Cost considers:
• Offered product price
• Transportation costs
• Additive costs
• Storage/onward distribution costs
• Fixed costs
• Variable costs
• Excess throughput charges
• Offer specific evaluation factors
• Base Reference Price evaluation factors
Bid Evaluation
Model
Volume Restrictions
Multiple Transport /
Delivery Modes
Injection Capability
Tiered / Block Pricing
Either or / One before
Two
* Conditional statements must not conflict with one another (i.e., minimum award by mode exceeds overall maximum award volume)
CUI
CUI
(Offered Price vs. Laid Down Cost)
Evaluation Visual
4 of xx
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 Requirements Into Y by PL, out by TT to all Requirements
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
Intermediate Terminal X
Intermediate Terminal Y
Requirement 3
1,000,000 USG
Requirement 2
3,000,000 USG
Requirement 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 ($870,000)
Evaluated on Offered Price Only: Evaluated on Laid-Down Cost:
CUI
Evaluation Rounds
Bid Evaluation Model (BEM)
5 of xx
INITIAL OFFERS
ROUND 1
INTERIM OFFERS
ROUND 2
FINAL OFFERS
ROUND 3
PRICE REDUCTION
ROUND
Minimum Cost Bid Evaluation Sheet
Minimum Cost Bid Evaluation Sheet & Laid Down Cost Report
CUI
Minimum Cost Solution Evaluation Sheet
6 of xx
CUI
Laid Down Cost Report
7 of xx
CUI
Model Sequence
8 of xx
Small Business Set-Aside Run
HUBZone Run
8(A) Run
Base Run
Optimization Run
Final Forced Run
CUI
Contact Information
9 of xx
For questions concerning the functionality of the Bulk Bid Evaluation Model (BEM) please contact:
Sean.Lucas@dla.mil
File details come from the government source that posted it. Updated .