Attachment A - Scope of Work.pdf

25-15100000-ITB

Bulk Fuel, Gasoline, Diesel, Marine, and Biodiesel Page 1 of 10

ATTACHMENT A

SCOPE OF WORK

1. PURPOSE

To provide Customers with Bulk Fuel on a statewide or regional basis, pursuant to the terms set forth in this Scope of Work.

2. DEFINITIONS

Definitions contained in section 287.012, Florida Statutes (F.S.); Rule 60A-1.001, Florida Administrative Code (F.A.C.); and Attachment D, Enterprise Standard Terms and Conditions; are incorporated by reference. In the event of a conflict, the definitions listed in this section supersede the incorporated definitions for the purposes of this Scope of Work. All definitions apply in both their singular and plural sense.

ASTM International (ASTM) – ASTM International, formerly known as the American Society for Testing and Materials, is a globally recognized organization that develops and publishes voluntary consensus standards for a wide range of materials, products, systems, and services.

Back Haul Charge – A fee assessed when a Customer orders more Fuel than their storage tank(s) can safely accommodate, requiring the Contractor to return the excess Fuel to Contractor’s facility.

Bid – The document(s) submitted by a Bidder in response to this ITB.

Bidder – A vendor who submits a Bid to this ITB.

Business Day – Monday through Friday, inclusive, from 8:00 a.m. to 5:00 p.m. Eastern Time, except for those holidays specified in section 110.117, F.S.

Cetane – The rating of diesel Fuel as a standard measure of the Fuel's ability to ignite quickly and cleanly under compression in a diesel engine. It is expressed as a number (e.g., 40, 45, 50) and indicates the Fuel’s ignition quality — with higher numbers representing shorter ignition delays and more efficient combustion.

Contractor – A vendor that enters into a Term Contract with the Department as a result of this solicitation.

Customer – A State agency or Eligible User.

Data Transmission Network (DTN) FastRacks Average Price – The Fuel pricing service provided by the Data Transmission Network, an industry benchmark for pricing Fuel and other commodities.

Delay Charge – A fee assessed for each thirty-minute increment that the Contractor is delayed (beyond the initial thirty-minute period, which is not subject to a delay charge) in commencing Delivery of Fuel due solely to the Customer's failure to provide access, authorization, or other necessary conditions for Delivery.

25-1500000-ITB

Bulk Fuel, Gasoline, Diesel, Marine, and Biodiesel Page 2 of 10

Delivery – The act of transporting and offloading Fuel at a Customer’s designated location or site.

Delivery Charge – A flat fee assessed for each completed Delivery of Fuel, regardless of the quantity delivered. This charge covers the basic costs associated with transportation, handling, equipment, and labor required to perform the Delivery.

Eligible User – As defined in Rule 60A-1.001, F.A.C.

Ethanol – A renewable, bio-based alcohol commonly used as a Fuel additive to reduce emissions and enhance Octane levels in gasoline. Ethanol used in motor Fuels must meet applicable standards such as ASTM D4806 to ensure quality, performance, and compatibility with engines.

Freight Charge – A transportation fee that may be applied to all shipments and is set by local authorities which means this fee may apply to both import or export shipments.

Fuel – Any fuel product obtained through this Term Contract. Fuel products shall consist of:

Gasoline E10, Unleaded 87 Octane; Diesel Fuel, Grade No. 2-D Ultra Low Sulfur; Diesel Fuel, Red Dye Grade No. 2 Ultra Low Sulfur; Marine Grade Gasoline – Ethanol-Free (90 Octane Minimum); Marine Diesel Fuel, Grade No. 2 with Biocide Additive; and Biodiesel Blend. Fuel may also be referred to in this Scope of Work as “Bulk Fuel.”

Group – A collection of Bulk Fuel that is described in this Scope of Work and Attachment C, Markup Sheet.

Markup – The Contractor’s price (per gallon) to be added to the DTN FastRacks Average Price to cover all costs associated with providing Fuel to the Customer’s location, except for the costs set forth in Section 3.3 of this Scope of Work. As shown on Attachment C, Markup Sheet, Markups may differ based on the Region in which Delivery of Fuel is made and actual product of Fuel ordered. Markup for Fuel shall be on a price per gallon basis. Markup may be expressed as a negative number if the Contractor is offering a discount off the DTN FastRacks Average Price.

The Contractor shall assess no other fees associated with the Delivery of Fuel except as expressly provided herein.

Non-Transport Delivery – A Delivery by Tank Wagon or other means with a minimum Delivery of 250 gallons and a maximum Delivery of 5,999 gallons for all Fuel products.

Octane – The rating of gasoline as a standard measure of the Fuel's ability to resist engine knocking or pinging during combustion, caused by the air/Fuel mixture detonating prematurely in the engine. It is expressed as a number (e.g., 87, 89, 91) and indicates the Fuel’s anti-knock properties.

Order – Written agreement between the Customer and Contractor which establishes the products agreed upon by the Customer and Contractor and may be used interchangeably with purchase order.

Pump Off Charge – A fee charged when Fuel must be offloaded from the Delivery truck to one or more tanks at the Customer’s designated location or site using a pump, rather than relying on gravity or standard unloading methods.

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Region – Service area compromised of specific Florida counties, as defined in Attachment C, Markup Sheet.

Tank Wagon – A Delivery method utilizing a smaller-capacity Fuel truck capable of servicing locations with limited access or lower volume needs. This Delivery method requires a minimum volume of 250 gallons per Delivery and a maximum volume of 5,999 gallons per Delivery.

Term Contract – The legally enforceable State Term Contract, as defined in section 287.012, F.S., between the Department and the Contractor.

Top Off Charge – To bring Fuel to the maximum tank level of 1,000 gallons or less.

Transport Delivery – A Delivery by a transport truck with a minimum Delivery of 6,000 gallons for gasoline, 6,000 gallons for diesel, and 7,500 gallons for a combination load of gasoline and diesel.

3. SCOPE OF WORK

3.1 Description of Scope

The Bulk Fuel available for purchase through this Term Contract is classified under the following Groups:

Group Product Description A Gasoline E10, Unleaded 87

Octane The product shall meet ASTM D4814 for automotive spark-ignition engine fuel and shall comply with the standards in Rule 5J-21.001, F.A.C.

B Diesel Fuel, Grade No. 2-D Ultra Low Sulfur

Grade no. 2-D (.0015 mass Percentage sulfur, 40 Cetane min.), for use in over the road diesel engine, per ASTM D975, complying with Rule 5J-21.001, F.A.C.

C Diesel Fuel, Red Dye Grade No. 2 Ultra Low Sulfur

For use in off-road diesel engine, minimum Cetane number of 40 using ASTM D613, ASTM D975, Grade # 2 S15. The product shall comply with the standards in Rule 5J-21.001, F.A.C.

D Marine Grade Gasoline – Ethanol-Free (90 Octane

Minimum)

The product shall be Unleaded Gasoline, 90 Octane (Anti-Knock Index minimum) and Ethanol-free, formulated specifically for use in marine engines.

Product shall meet ASTM D4814 for automotive spark-ignition engine Fuel and comply with the standards in Rule 5J-21.001, F.A.C.

E Marine Diesel Fuel, Grade No. 2 with Biocide Additive

The product shall be Grade No. 2-D Ultra Low Sulfur Diesel Fuel (maximum 0.0015 mass percent sulfur, minimum Cetane number of 40), meeting ASTM D975.

It shall be suitable for use in marine diesel engines and treated with a Fuel-compatible biocide additive to control microbial growth, biofilm formation, and Fuel degradation. The biocide additive shall meet the Environmental Protection Agency (EPA) registration requirements under Federal Insecticide, Fungicide, Bulk Fuel, Gasoline, Diesel, Marine, and Biodiesel Page 4 of 10 and Rodenticide Act (FIFRA) for use in diesel fuels and be compatible with engine components and fuel system materials. The final product shall comply with the standards in Rule 5J-21.001, F.A.C.

F Biodiesel Blend Blend of grade no. 2-D ultra-low sulfur diesel and up to 20% biodiesel, for use in over the road diesel engine, meeting the ASTM D7467 for biodiesel blends (6% – 20%). The biodiesel component shall consist of mono-alkyl esters of long chain fatty acids derived from new and used vegetable oils, designated B100, B99.9, or B99, meeting the ASTM D6751 and be certif ied under the BQ9000 quality program. The diesel component (grade no. 2-D ultra-low sulfur diesel) and any blends with less than 6% biodiesel shall meet ASTM D975.

The final product shall comply with the standards in Rule 5J-21.001, F.A.C. The Contractor must deliver any blend requested by the Customer.

Upon Customer request, Contractor must provide all certif icates concerning product quality of all commodities listed in this Scope of Work.

3.2 Pricing Elements for Purchase of Fuels

Prices will be calculated for each Fuel product using the following information:

3.2.1 Group A - Gasoline E10, Unleaded 87 Octane

• DTN FastRacks Average Price for Gasoline E-10 10% Ethanol.

• Contractor’s Markup as determined in Attachment C, Markup Sheet for the Region in which Delivery of Fuel is made.

• All applicable Fuel taxes and/or petroleum associated fees as determined by the county in which Delivery of Fuel is made.

3.2.2 Group B - Diesel Fuel, Grade No. 2-D Ultra Low Sulfur

• DTN FastRacks Average Price for Ultra Low No. 2.

• Contractor’s Markup as determined in Attachment C, Markup Sheet for the Region in which Delivery of Fuel is made.

by the county in which Delivery of Fuel is made

3.2.3 Group C - Diesel Fuel, Red Dye Grade No. 2 Ultra Low Sulfur

• DTN FastRacks Average Price for Ultra Low Red No. 2.

• Contractor’s Markup as determined in Attachment C, Markup Sheet for the Region in which Delivery of Fuel is made.

3.2.4 Group D - Marine Grade Gasoline – Ethanol-Free (90 Octane Minimum)

• DTN FastRacks Average Price for Ethanol-Free Unleaded Gasoline (Marine Grade) or the closest available benchmark for non-Ethanol

Bulk Fuel, Gasoline, Diesel, Marine, and Biodiesel Page 5 of 10 recreational/marine gasoline as published for the terminal location nearest the Delivery point*.

• Contractor’s Markup, as determined in Attachment C, Markup Sheet for the Region in which Delivery of Fuel is made.

*Note: If the DTN FastRacks Average Price report does not publish a distinct Ethanol-Free gasoline price at a nearby terminal, the Contractor shall use the nearest available non-Ethanol gasoline rack price from the closest terminal location from the approved list below, with prior approval by the Customer. Contractor must provide supporting documentation showing the benchmark source used in invoicing.

3.2.5 Group E – Marine Diesel Fuel, Grade No. 2 with Biocide Additive

• DTN FastRacks Average Price for Ultra Low Sulfur Diesel No. 2, as published for the terminal location nearest the Delivery point.

• Contractor’s Markup, as determined in Attachment C, Markup Sheet for the Region in which Delivery of Fuel is made.

• All applicable Fuel taxes and/or petroleum-associated fees as determined

3.2.6 Group F - Biodiesel Blend

• DTN FastRacks Average Price for Ultra Low No. 2. The daily price will be used to calculate the diesel portion for Biodiesel.

• The Wall Street Journal’s published Monday closing price for soybean oil, as printed in the Tuesday edition under “Fats and Oils” in the “Cash Prices” column. This weekly price will be used to calculate the bio portion of the Biodiesel. This method of calculating the bio portion will be used unless the Contractor receives prior written consent from the Customer to an alternate method of getting the weekly price. If no Monday price is published in the Wall Street Journal, then the next available published price will apply (Tuesday, Wednesday, etc.).

• Contractor’s Markup as determined in Attachment C, Markup Sheet for the Region in which Delivery of Fuel is made.

• All applicable Fuel taxes and/or petroleum associated fees as determined by the county in which Delivery of Fuel is made.

Sample Calculations:

B20 wholesale price = 0.80 times the price for ultra-low sulfur no. 2 diesel plus 0.20 times the price for soybean oil.

B10 wholesale price = 0.90 times the price for ultra-low sulfur no. 2 diesel plus 0.10 times the price for soybean oil.

B5 wholesale price = 0.95 times the price for ultra-low sulfur no. 2 diesel plus 0.05 times the price for soybean oil.

The Contractor is prohibited from negotiating or billing in a manner that exceeds the stated prices included in the Term Contract. The Contractor

Bulk Fuel, Gasoline, Diesel, Marine, and Biodiesel Page 6 of 10 agrees that the price charged to the Customer shall be subject to audit, and the Contractor shall make all records supporting the invoiced prices available for inspection, upon written request by the Customer.

The DTN FastRacks Average Price used above will be that of the closest appropriate terminal, on the date of Delivery to the Customer, regardless of when or where the Contractor obtained the Fuel. The Contractor must subscribe to the DTN FastRacks Averages by calling DTN’s Sales Department at 1-800-475-4755 or by creating an account at https://www.dtn.com/refined- Fuels/wholesaler/fastracks/.

The following terminals are used to refer to the DTN FastRacks Average Prices:

• Pensacola, FL

• Panama City, FL

• Jacksonville, FL

• Orlando, FL

• Tampa, FL

• Miami, FL

• Bainbridge, GA

3.3 Fuel Fees, Taxes, and Other Costs

The Contractor may assess the following charges at the rates set forth in Attachment C, Markup Sheet, for the county in which Delivery of Fuel is made:

• Delivery Charge.

• Freight Charge (Transport Deliveries only).

• Pump Off Charge (Transport Deliveries only).

• Delay Charge.

• Back Haul Charge.

• Top Off Charge.

• Tank maintenance, but only in the event the Contractor receives prior written consent from the Customer agreeing to pay a tank maintenance fee and the amount thereof.

• Any applicable Fuel taxes and petroleum-associated fees as determined by the county in which Delivery of Fuel is made.

No other fees, taxes, or costs may be assessed by the Contractor unless expressly allowed by the Term Contract or by law.

3.4 Delivery to Customers

A map of the four geographical Regions (Western, Northern, Central, and Southern) can be located in Attachment C, Markup Sheet.

3.4.1 Delivery Requirements

The following replaces section 5.e., Transportation and Delivery, of the PUR 1000.

NOTE: Gallons listed below may be converted to liters.

3.4.1.1 Transport Delivery on this Term Contract shall be for a minimum of:

• 6,000 gallons for a Delivery of gasoline;

• 6,000 gallons for a Delivery of diesel; and

• 7,500 gallons for a combination load of gasoline and diesel.

https://www.dtn.com/refined-fuels/wholesaler/fastracks/ https://www.dtn.com/refined-fuels/wholesaler/fastracks/

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3.4.1.2 Delivery options on the Term Contract for less than the Transport Delivery minimum amounts listed above may be made via Non-Transport Delivery.

3.4.1.3 In the event of an emergency, gasoline and/or diesel Deliveries can be made by a transport truck for gasoline or diesel Deliveries less than the Transport Delivery minimum amounts listed above.

3.4.1.4 Delivery shall be Free on Board (F.O.B.) destination to the Customer’s location throughout the State of Florida.

3.4.1.5 Delivery shall be made available to all Customers and their locations. Imperial measurements appearing are not intended to preclude Bids for Fuel with equivalent metric measurements.

3.4.1.6 Delivery of Fuel will be delivered to the Customer’s tank(s) within 48 hours after a Customer’s Order is received unless specified otherwise in writing by the Customer. For new accounts, the Contractor will be allowed additional time to enter all required account information into their ordering/billing system to establish the new account. This time will be agreed upon by the Customer and the Contractor. The State prefers that vehicles equipped with meters make Delivery. If non-metered vehicles are used, the driver shall leave with the Customer a metered loading report from the terminal. If temperature corrected billing is used, the loading report shall give all pertinent information.

Customer may agree to a higher Delivery Charge than that which is set forth in Attachment C, Markup Sheet, if Customer requests same day Delivery.

3.4.1.7 Before unloading of Fuel begins, Customer personnel and Contractor personnel shall measure the Customer’s tank(s) to receive Fuel and shall again measure the tank(s) after Delivery.

3.5 Invoices

The Contractor shall submit timely and accurate invoices to the Customer. The Contractor shall have the ability to accept Customer Orders in writing, including electronically.

3.5.1 At a minimum the invoices are to provide the following information:

• Contractor’s name, contract number, actual date of Delivery, location of Delivery, Fuel manufacturer, and Fuel quantity delivered;

• DTN FastRacks Average Price based on the actual Delivery date and named closest terminal used for price;

• Exempted taxes, fees, credits, Markup, and other charges consisting of Delivery, Freight, Pump Off, Delay, Back Haul, Top Off, or tank maintenance charge;

• Downward adjustments due to unforeseen circumstances including but not limited to erroneous orders, Fuel spills, Delivery of incorrect Fuel, and cross-fueling; and

• Total invoice price.

3.5.2 To encourage transparency, all line item costs on all invoices shall include a description of each cost sufficient for a Customer to understand and audit.

4. WARRANTY

The Contractor warrants that all Fuel delivered under this Term Contract shall conform to the specifications stated in this Scope of Work, and all applicable federal and state regulations, Bulk Fuel, Gasoline, Diesel, Marine, and Biodiesel Page 8 of 10 including Rule 5J-21.001, F.A.C.

4.1 The Fuel shall be free from contamination, water, sediments, or other impurities that could impair vehicle or equipment performance. The Contractor shall be fully responsible for any damages, costs, or losses arising from Delivery or supplying of non-conforming or contaminated Fuel, including equipment repairs and remediation.

4.2 If any Fuel delivered under this Term Contract is found to be non-compliant, the Contractor shall, at their own expense:

4.2.1 Promptly replace the non-conforming Fuel;

4.2.2 Remove and dispose of the defective product in compliance with applicable federal and state regulations; and

4.2.3 Reimburse the Customer for any damages and reasonable expenses resulting from the Delivery, handling, or use of such Fuel.

The warranty shall extend for a period of at least 90 days from the date of each Delivery.

5. CUSTOMER SERVICE

The Contractor shall designate at least one authorized representative to serve as the primary point of contact for all matters related to this Term Contract, including ordering, Delivery coordination, billing inquiries, and quality concerns. The representative must be available by phone and email during Business Days and must respond to inquiries within one Business Day.

The Contractor’s representative shall maintain courteous and professional communication with the Department and Customers at all times.

6. COMPLIANCE AND COMPATIBILITY

It is the Contractor’s responsibility to ensure that all Fuel supplied is compliant with the Term Contract requirements, specifications, terms, and conditions. The Contractor’s acceptance of the Customer’s Order shall indicate that the Contractor agrees to deliver Fuel that is fully compliant and compatible with the Customer’s Order requirements, specifications, terms, and conditions.

7. PUNCHOUT CATALOG AND ELECTRONIC INVOICING

The Contractor is encouraged to provide an MFMP punchout catalog.

The punchout catalog provides an alternative mechanism for suppliers to offer the State access to products awarded under the Term Contract. The punchout catalog also allows for direct communication between the MFMP eProcurement System and a supplier’s Enterprise Resource Planning (ERP) system, which can reflect real-time product inventory/availability information.

The punchout catalog enables Florida buyers to “punch out” to a supplier’s website. Using the search tools on the supplier’s Florida punchout catalog site, the user selects the desired products.

When complete, the user exits the supplier’s punchout catalog site and the shopping cart (full of products) is “brought back” to MFMP. No Orders are sent to a supplier when the user exits the supplier’s punchout catalog site. Instead, the chosen Products are “brought back” to MFMP as line items in a purchase order. The user can then proceed through the normal workflow steps, which may include adding, deleting, and editing products (i.e., line items) in the purchase order.

An Order is not submitted to a supplier until the user approves and submits the purchase order, at which point the supplier receives an email with the Order details.

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The Contractor may supply electronic invoices in lieu of paper-based invoices for those transactions processed through MFMP. Electronic invoices may be submitted to the Customer through one of the mechanisms as listed below:

1) EDI (Electronic Data Interchange) This standard establishes the data contents of the Invoice Transaction Set (EDI 810) for use within the context of an Electronic Data Interchange (EDI) environment. This transaction set can be used for invoicing via the Business Network (formerly known as Ariba Network) for catalog and non-catalog goods and services.

2) PO Flip via BN This online process allows Contractors to submit invoices via the BN for catalog and non-catalog goods and services. Contractors are able to create an invoice directly from their inbox in their BN account by simply "flipping" the PO into an invoice. This option does not require any special software or technical capabilities.

The Contractor warrants and represents that it is authorized and empowered to and hereby grants the State and the third-party provider of MFMP, a State contractor, the right and license to use, reproduce, transmit, distribute, and publicly display within MFMP the information outlined above.

In addition, the Contractor warrants and represents that it is authorized and empowered to and hereby grants the State and the third-party provider the right and license to reproduce and display within MFMP the Contractor's trademarks, system marks, logos, trade dress, or other branding designation that identif ies the products made available by the Contractor under the Term Contract.

8. RECALLED COMMODITIES

In the event there is a recall of any commodity offered on the Term Contract, or any part or component of a, or any parts incorporated into the commodity, the Contractor shall assist the Department and Customers in developing a recall strategy and shall cooperate with the Department and the Customers in monitoring the recall operation and in preparing such reports as may be required. Each Contractor shall, at the request of the Department or any Customer, assist the Department and each Customer in locating and obtaining any recalled commodities.

Each Contractor shall immediately notify and provide copies to the Department of any communications, whether relating to recalls or otherwise, with any Customer. The Contractor shall ensure recalled commodities are rectif ied, replaced and destroyed in compliance with all applicable laws.

9. REQUEST FOR QUOTES REQUIREMENT

Customers shall use a Request for Quotes in accordance with section 287.056(2), F.S., and Rule 60A-1.043, F.A.C., when making purchases off this State Term Contract (Term Contract). For any purchases off the Term Contract, the Contractor recognizes its responsibility for all tasks and deliverables contained in the Term Contract and any Customer Request for Quote, warrants that it has fully informed itself of all relevant factors affecting accomplishment of the tasks and deliverables and agrees to be fully accountable for the performance thereof.

10. FINANCIAL CONSEQUENCES

Failure to comply with the requirements of the Term Contract will result in the imposition of f inancial consequences. The following financial consequences will apply for the Contractor’s failure to meet the performance metric standard and due date corresponding with the deliverables under the Term Contract. The Customer may impose additional Financial Consequences beyond those stated herein to apply to that Customer’s purchase. The State of Florida reserves the right

Bulk Fuel, Gasoline, Diesel, Marine, and Biodiesel Page 10 of 10 to withhold payment or implement other appropriate remedies, such as Term Contract termination, or nonrenewal, when the Contractor has failed to comply with the provisions of the Term Contract.

The financial consequences below will be paid and received by the Department of Management Services within 30 calendar days from the due date specified by the Department. These financial consequences below are individually assessed for failures over each target period beginning with the first full month or quarter of the Term Contract performance and every month or quarter, respectively, thereafter.

Financial Consequences Chart

No favorable action will be considered when Contractor has outstanding Term Contract Quarterly Sales Reports, MFMP Transaction Fee Reports, or any other documentation owed to the Department or Customer, to include fees / monies, that are required under this Term Contract.

Deliverable Performance Metric Performance Due Date Financial

Consequence for Non-Performance

Contractor will timely submit complete Term Contract Quarterly Sales Reports

All Term Contract Quarterly Sales Reports will be submitted timely with the required information

Completed reports are due on or before the 30th calendar day after the close of each State fiscal quarter

$250 per day late

Contractor will timely submit complete MFMP Transaction Fee Reports

All MFMP Transaction Fee Reports will be submitted timely with the required information

Completed reports are due on or before the 15th calendar day after the close of each month

$100 per day late

Contractor will deliver Fuel in a timely manner as described in the Delivery Requirements Section

All Fuel Deliveries will be on time

All Fuel Deliveries will be made within 48 hours after Customer’s Order is received

$250 per day late