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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SPE60225R0705 AMD 0002 Conformed RFP.pdf PDF
SF30_SPE60225R0705 AMD 0002.pdf PDF
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updated ATT 12 - Addenda to FAR 52_AMD 0001.pdf PDF
updated ATT 6 - Solicitation Fill-Ins_AMD 0001.pdf PDF
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updated ATT 9 - Equal Value Exchanges of Fuel_AMD 0001.pdf PDF
updated ATT 7 - QAPs_C and_ E_AMD 0001_redacted.pdf PDF
SPE60225R0705 AMD 0001 Confirmed RFP.pdf PDF
RMW PREPROPOSAL Slides 2025.pdf PDF
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Attachment 11 - F76 Traceability Signature Page.pdf PDF
Attachment 8 - Small Business Subcontract Plan (DEC 2023).pdf PDF
Attachment 7 - QAPs_C and_ E.pdf PDF
Attachment 1 - Offer Submission.pdf PDF
Attachment 12 - ADDENDA TO FAR 52.pdf PDF
Attachment 6 - Solicitation Fill-Ins.pdf PDF
Attachment 5 -OET OSP Crosswalk 2025.pdf PDF
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Attachment 2 - OET Overview 2025.pdf PDF
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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 .