ENE47 RFR Ameneded 5.24.2019~2.docx

REQUEST FOR RESPONSE

Ultra-Low Sulfur Diesel & Biodiesel RFR # ENE47 / COMMBUYS Bid# BD-19-1080-OSD03-SRC01-36522

COMMONWEALTH OF MASSACHUSETTS

OPERATIONAL SERVICES DIVISION

Request for Response (RFR)

Document Title: Ultra Low Sulfur Diesel & Biodiesel Contract

Agency Document Number: ENE47

COMMBUYS Bid#: BD-19-1080-OSD03-SRC01-36522

05/15/2019 Amended 5/24 to update the number awards in category 2 Biodiesel

Please Note: This is a single document associated with a complete Bid (also referred to as Solicitation) that can be found on www.COMMBUYS.com. Bidders are responsible for reviewing and complying with all Bid requirements. Bidders may contact the COMMBUYS Helpdesk at COMMBUYS@state.ma.us or the COMMBUYS Helpline at 1-888-MA-STATE for technical assistance with COMMBUYS. The Helpline is staffed from 8:00 AM to 5:00 PM Monday through Friday Eastern time, as applicable, except on federal and state holidays.

Bidders with disabilities or hardships that seek reasonable accommodation, which may include the receipt of RFR information in an alternative format, must communicate such requests in writing to the contact person. Requests for accommodation will be addressed on a case by case basis. A Bidder requesting accommodation must submit a written statement which describes the Bidder’s disability and the requested accommodation to the contact person for the RFR. The SST reserves the right to reject unreasonable requests.

Please Note: This is a single document associated with a complete Bid (also referred to as Solicitation) that can be found on www.COMMBUYS.com. Bidders are responsible for reviewing and complying with all Bid requirements. Bidders may contact the COMMBUYS Helpdesk at COMMBUYS@state.ma.us or the COMMBUYS Helpline at 1-888-MA-STATE for technical assistance with COMMBUYS. The Helpline is staffed from 8:00 AM to 5:00 PM Monday through Friday Eastern time, as applicable, except on federal and state holidays.

Contents

A.

Introduction and Bid Overview

1. Purpose of Procurement The Commonwealth of Massachusetts and the Ultra-Low Sulfur Diesel & Biodiesel Strategic Sourcing Team (SST) are soliciting Bidders for the acquisition of Category 1: Ultra-Low Sulfur Diesel (ULSD) and Category 2: Biodiesel (B5) for year round delivery with the ability to purchase other blend percentages (B10, B15, B20) at the discretion of contract users, these numbers denote the percentage of renewable biofuel that is blended with Ultra Low Sulfur Diesel. The resulting Contract will be the primary Statewide Contract used by Executive Agencies of the Commonwealth for the goods and services covered by the Contract. The Statewide Contract will also be available for use by other eligible entities listed below. Each Commonwealth Agency and eligible entity is responsible for executing its own purchase orders and paying its own invoices for goods and/or services acquired from this Statewide Contract. Contractors will be responsible for marketing their goods and/or services to Commonwealth Agencies and other eligible entities.

Contract Categories

· Category 1 - Ultra-Low Sulfur Diesel (ULSD)

· Category 2 – Biodiesel

· Category 3 – Fixed Pricing for Ultra Low Sulfur Diesel

2. Estimated Procurement Calendar

Training for Online Submission – Contractors that have not previously submitted electronic quotes via COMMBUYS are strongly encouraged to attend training

Locate and Respond to Bids in COMMBUYS Dates and Times Available:

May 23, 2019 1:00 PM Location:

Operational Services Division One Ashburton Place, Room 1017 Boston, MA 02108 Limited seating – reserve your seat now at: https://www.mass.gov/files/documents/2019/03/15/Vendor_Schedule_Spring-Summer-2019.pdf

Times are Eastern Standard/Daylight Savings (US), as displayed on the COMMBUYS system clock displayed to Bidders after logging in. If there is a conflict between the dates in this Procurement Calendar and dates in the Bid’s Header, the dates in the Bid’s Header on COMMBUYS shall prevail. Bidders are responsible for checking the Bid record, including Bid Q&A, on COMMBUYS for Procurement Calendar updates.

3. Submission of Bid Questions The “Bid Q&A” function in COMMBUYS allows Bidders to ask written questions and receive written answers regarding this Bid. All questions must be submitted through the Bid Q&A found on COMMBUYS (See “Locating Bid Q&A,” below). Questions must be asked prior to the Deadline stated in the Estimated Procurement Calendar. The Strategic Sourcing Team (SST) reserves the right not to respond to late questions. Bidders are responsible for verifying that their questions are recorded in COMMBUYS and appear on the Bid Q&A page.

Questions submitted to the SST outside of COMMBUYS will not be answered.

Content entered must be suitable for public viewing. Bidders must not include inappropriate content, including but not limited to, information that could be considered personal, security sensitive, inflammatory, incorrect, or collusory. The SST reserves the right to edit or delete any inappropriate content.

All answers are final when posted. Any subsequent revisions to previously provided answers will be dated.

Bidders and awarded Contractors are required to view the COMMBUYS requirements associated with this bid are responsible for compliance with those requirements.

4. Locating Bid Q&A Log into COMMBUYS, locate the Bid, acknowledge receipt of the Bid, and scroll down to the bottom of the Bid Header page. The “Bid Q&A” button allows Bidders access to the Bid Q&A page.

5. Bid Amendment Deadline The SST reserves the right to make amendments to the Bid after initial publication. It is each Bidder’s responsibility to check COMMBUYS for any amendments, addenda or modifications to this Bid, and any Bid Q&A records related to this Bid. The SST and the Commonwealth accept no responsibility and will provide no accommodation to Bidders who submit a Quote based on an out-of-date Bid or on information received from a source other than COMMBUYS.

6. Late Bids will not be considered Bid responses must be received in full by the posted due date and time. Proposals received after the deadline will be late and ineligible for consideration and deemed as non-responsive. Each bidder must submit all required bid response forms electronically through COMMBUYS. When submitting a quote electronically through COMMBUYS, please allow sufficient time to complete the online forms and upload documents. The solicitation will end at the closing time listed in the RFR. If you are in the middle of uploading your proposal at the closing time, the system will stop the process and your quote will not be completed and received by the system.

7. Debriefing The SST will conduct debriefings for unsuccessful Bidders, if requested within 14 calendar days of the resulting Master Blanket Purchase Order being posted on COMMBUYS. The SST will provide debriefing guidelines in advance of each debriefing.

8. Applicable Procurement Law:

9. Acquisition Method:

The acquisition method(s) to acquire goods and/or services from this Bid are identified below.

10. Anticipated Contract Awards:

Check One (“X”):

a. Estimated Number of Awards The maximum number of awards for Category 1 (Ultra Low Sulfur Diesel – ULSD) is 9; for Category 2 (Biodiesel) there will be 9 awards, for Category 3 (Fixed Pricing) there will be multiple awards per zone. There are nine zones (zones are defined in the “Zone Listing” attachment on the COMMBUYS bid). Bidders may be awarded multiple contracts.

The SST may award more or fewer contracts, if it is in the best interests of the Commonwealth to do so.

Contract renewals will be offered at the sole discretion of OSD. At a minimum, offers to renew will be contingent upon satisfactory contractor performance, compliance with reporting requirements, and adequate sales volume; OSD reserves the right to reduce the number of awarded contractors for the duration of the agreement.

b. Adding Contractors after initial Contract Award If, over the life of the contract, the SST determines that additional Contractors may be added, these may be drawn from qualified companies which responded to this Solicitation but were not awarded Contracts. If necessary to meet the requirements of the Commonwealth, the Solicitation may be reopened to obtain additional Bids.

11. Entities Eligible to Use the Resulting Contract Statewide Contract – Open for Use by All Eligible Entities. Any Contract(s) resulting from this Bid will be open for use by the following entities:

1. Cities, towns, districts, counties and other political subdivisions;

2. Executive, Legislative and Judicial Branches, including all Departments and elected offices therein;

3. Independent public authorities, commissions and quasi-public agencies;

4. Local public libraries, public school districts and charter schools;

5. Public hospitals owned by the Commonwealth;

6. Public institutions of higher education;

7. Public purchasing cooperatives;

8. Non-profit, UFR-certified organizations that are doing business with the Commonwealth;

9. Other states and territories with no prior approval by the State Purchasing Agent; and

10. Other entities when designated in writing by the State Purchasing Agent.

Each eligible entity is responsible for executing its own purchase orders and paying its own invoices for goods and/or services acquired from this Contract. Contractors will be responsible for marketing their goods and/or services to Commonwealth Agencies and other eligible entities.

12. Anticipated Contract Duration:

Initial Duration

5/60

Total Maximum Contract Duration

5/60

13. Estimated Value of the Contract The estimated total number of gallons of annual purchase(s) resulting from this Bid for Category 1 ULSD is 18 million, for Category 2 Biodiesel is 1 million, Category 3 is a new category so no data currently exists. The Commonwealth makes no guarantee that any commodities or services will be purchased from any Contract resulting from this Bid. Any estimates or past procurement volumes referenced in this Bid are included only for the convenience of Bidders, and are not to be relied upon as any indication of future purchase levels.

The “Estimated Value (Gallons)” for this Bid was based on the following: This Estimated Value was derived by reviewing Contractor sales reports to Commonwealth of Massachusetts eligible entities for FY 2018.

B. Procurement Scope and Description The Commonwealth of Massachusetts and the Ultra-Low Sulfur Diesel & Biodiesel Strategic Sourcing Team (SST) are soliciting Bidders for the acquisition of Category 1: Ultra-Low Sulfur Diesel (ULSD), Category 2: Biodiesel (B5) for year round delivery with the ability to purchase other blend percentages (B10, B15, B20) at the discretion of contract users, these numbers denote the percentage of renewable biofuel that is blended with Ultra Low Sulfur Diesel, and Category 3 Fixed price of ULSD.

Commodities: 15-10-15 / 15-10-18 C. Bidder Qualifications The following information must be provided using the Bidder Response Form attached to this Bid.

Company experience The bidder shall submit on the Bidder Response Form a profile of the firm’s operations, including but not limited to the years the bidder has been in business (minimum of five years), experience in the handling and delivery of Gasoline and a description of bidder's current business in Massachusetts.

Years in Business Bid consideration will only be made to those bidders that have been in business at a minimum of five (5) years.

Employee and/or business technical/business experience, certifications, licenses The bidder shall submit on the Bidder Response Form a brief description of the designated contract manager’s experience that will be responsible for the overall management, reporting and ensuring adherence to the performance measures of this contract during normal business hours.

Financial stability including DUNS report, bankruptcy, litigation and contract defaults The bidder shall submit on the Bidder Response Form a description of any and all investigations, indictments or pending litigation by any federal, state or local jurisdiction relating to the bidder, any officer, director, partner or member thereof, any affiliate or any related company and any other requested information.

References and reference information and/or requirements At a minimum three (3) letters of reference MUST be submitted with bid response from any institutional account, or from the largest customer in MA if available. In addition to the letters, the reference form must be completed. The “Reference Form” is available in the attachment entitled “Commonwealth of Massachusetts Required Forms” on COMMBUYS.

Specifications Additional required terms appear in the Appendices to this RFR

1. Commodity Specifications Ultra-Low Sulfur Diesel (ULSD) must comply with the latest version of ASTM D975 and any other applicable Federal and/or Commonwealth of Massachusetts regulations and laws, in addition to the following:

Additives:

*Winter = October 1 thru March 31.

Lubricity Additive must be nonacid, nonmetallic and contain no naturally sourced molecules which may affect engine operations and must contain less than 15ppm sulfur.

Biodiesel fuel suppliers of the contract are required to purchase from producers who are BQ-9000® certified. In cases when a producer is not BQ-9000® certified a producer is required to meet the following standards and procedures in lieu of certification. Fuel that is produced must meet the D6751 standard for B-100 biofuel and is required to be verified as follows:

· Test fuels daily during all production times using an ASTM certified QTA testing machine to verify that the fuel meets the D6751 standard.

· In addition to the daily test, the fuel must be tested monthly using an outside certified independent testing lab to verify that the fuel meets the D6751 standard.

· Testing must be done for the duration of the contract.

· All records must be kept for 6 years after the last transaction.

· The State of Massachusetts reserves the right to audit these records at any time during the retention period.

· If the fuel does not meet the specification in any one of the test;

a. The Contractor must notify the Producer when the fuel does not meet the D6751 specification.

b. The Contractor is required to stop supplying the contract immediately.

c. The Contractor must notify the SST with what corrective action will be taken to bring the fuel back into the correct standard within ten (10) days of the failed test.

ASTM D6751 Specifications The entire ASTM Standard is available from ASTM Customer Service. Telephone number: (610) 832-9585; Fax: (610) 832-9555; email: service@astm.org B100: The B100 Biodiesel must be produced from 100% waste grease, oils and fats that meet the ASTM D6751 prior to blending with Ultra Low Sulfur Diesel. This product is an advanced biofuel. To qualify as an advanced biofuel, the B100 blend must meet the lifecycle GHG reduction of at least 50% compared to the conventional diesel fuel. 100% waste grease meets these criteria. In addition, if a vendor chooses, the following biodiesel feedstock can be used, each shown with their respective lifecycle greenhouse gas emission reduction adopted by the Massachusetts Department of Energy Resources based on the U.S. Environmental Protection Agency analysis.

Waste Feedstock – 86% Lifecycle greenhouse gas reduction Soy Feedstock – 24% Lifecycle greenhouse gas reduction Hence, the quantity (gallons) of soy feedstock B100 Biodiesel can be no more than 1.385 times the quantity of waste feedstock b100 biodiesel. This ratio provides a net lifecycle greenhouse gas reduction of 50% The final blended product must meet the appropriate ASTM specification.

Blended Fuels:

B5 Biodiesel must meet the latest version of ASTM D975.

B6-B20 must meet the lasts version of ASTM D7467.

The entire ASTM Standard is available from ASTM Customer Service. Telephone number: (610) 832-9585; Fax: (610) 832-9555; email: service@astm.org Blending: Contractor must accurately conduct all fuel blending for product provided under this contract. The use of subcontractors for any form of fuel blending is not permitted.

Test Results: Contractor must provide test results for lubricity, sulfur content, calculation methodology and other product specifications upon request.

Alternative Biodiesel blends: The Commonwealth reserves the right to purchase the blends of biodiesel for specific applications should the need arise and negotiate price with the contractor who has been awarded the Biodiesel category.

2. Testing of Ultra Low Sulfur Diesel and Biodiesel It is agreed that high quality Ultra Low Sulfur Diesel and Biodiesel, meeting the specifications of the customer order is a paramount goal of this contract. Contractor assures the Commonwealth that there are high quality control mechanisms in place to assure the quality of delivered Ultra Low Sulfur Diesel and Biodiesel. Contractor will supply evidence of its quality control plan, if requested by OSD. If customer has evidence to believe that the Contractor has delivered Ultra Low Sulfur Diesel and Biodiesel of an inferior quality, questionable grade, and questionable blend or with contaminants contained within the customer will;

· Have independent testing performed at the customers expense, or

· Request that the Contractor have an independent lab conduct such testing and provide results to the Agency and the Strategic Sourcing Lead, Energy at OSD.

In the event that the Ultra-Low Sulfur Diesel and Biodiesel delivered by the Contractor is tested and determined to be of inferior quality, the Contractor will be responsible for all costs associated with the testing, product removal, tank cleaning and proper disposal of the product. All applicable Federal, State, and Local regulations must be complied with to meet the requirements of this section. All parties agree that this process must occur immediately, but in no case will exceed 24 hours.

If tests show that Ultra Low Sulfur Diesel and Biodiesel l is substandard, then deliveries will be suspended until appropriate standards are met. Any damages or losses incurred by the Commonwealth will be charged to Contractor. The contract may be cancelled if, in the opinion of OSD, the Ultra-Low Sulfur Diesel and Biodiesel supplied or the method of delivery is unsatisfactory. OSD may use another supplier, if suspension of deliveries is deemed necessary. If the Commonwealth is required to pay a higher price from an alternative supplier the difference will be charged to the contracted vendor.

In the event that the Ultra-Low Sulfur Diesel and Biodiesel delivered by the Contractor is determined to be of acceptable quality and the agency has requested the vendor to perform such testing, the agency will be responsible for all test expenses.

Category 2 Biodiesel The bidder must have a Quality Control plan in place that ensures product integrity and non-contamination of the product(s) from blending to delivery. The quality control plan must be submitted with the bidder’s response and will be reviewed and approved by the Strategic Sourcing Team prior to making any contract award. If the vendor provides a BQ-9000® Marketer Certification, no plan needs to be submitted.

BQ-9000® Producer Certification: Bidders not certified as BQ-9000® Marketers must source B100 product from a BQ-9000® Producer. If the Marketer purchases fuel from a Producer that is not BQ-9000® certified, the Producer must submit a quality control plan with the bidder response and approval from the Strategic Sourcing team is needed prior to any contract award.

Bidders that are certified as BQ-9000® Marketers must have a Certificate of Analysis that verifies products meet the full ASTM D6751 specifications as per the BQ-9000® Marketer protocol.

A Certificate of Analysis for the B100 Supply used must be provided as requested. The Certification of Analysis will contain Lot Number, Sample Date and a Certification that lot was tested and met the ASTM D6751 Requirements.

3. Performance Requirements Winter Requirements: Ultra Low Sulfur Diesel and Biodiesel must meet all winter requirements to insure proper performance during the winter months. The following schedule denotes the required fluidity of the distillate at the time and place of use:

Cloud Point

Pour Point

4. Service Specifications

a. Office Location The vendor must have an office located in New England, preferably Massachusetts.

b. Title to Ultra Low Sulfur Diesel and Biodiesel The Contractor warrants that it has good and merchantable title to the Ultra-Low Sulfur Diesel and Biodiesel supplies that will be supplied in meeting its obligations pursuant to this bid and resulting contract. Further the Contractor warrants that the Ultra-Low Sulfur Diesel and Biodiesel that it sells to the Commonwealth and/or other eligible contract user is free from liens and adverse claims of every kind. The Contractor or its successor shall indemnify and hold the Commonwealth harmless against all loss, damages, and expense of every kind on account of adverse claims which attach before delivery to the contract users’ sites. The title to such Ultra Low Sulfur Diesel will pass to the contract user (buyer) at the delivery point(s).

c. Quality of Ultra Low Sulfur Diesel and Biodiesel The Contractor is obligated to supply to full Ultra Low Sulfur Diesel and Biodiesel requirements of the contract user to include the purchase, transport, and delivery of Ultra Low Sulfur Diesel and Biodiesel to each contract user. The Contractor is responsible for all costs associated with the transport of Ultra Low Sulfur Diesel and Biodiesel to the contract user’s tank.

d. Reliable Supply The Contractor will take all reasonable and prudent steps to ensure a continuous supply of Ultra Low Sulfur Diesel and Biodiesel to contract users.

e. Replacement Costs If the Contractor is unable to supply the required volume of quality of Ultra Low Sulfur Diesel and Biodiesel, and the contract user is required to purchase Ultra Low Sulfur Diesel and Biodiesel from another supplier, the Contractor will be responsible to pay the price differential and any associated penalties incurred by the contract user. The Contractor shall be responsible for the net cost difference between the replacement Ultra Low Sulfur Diesel and Biodiesel cost and the cost of the contracted Ultra Low Sulfur Diesel and Biodiesel supply, plus any associated penalties, if the Contractor is unable to fulfill the obligations for reasons other than force majeure. The Commonwealth and any other eligible contract user reserve the right to withhold that portion of the previous month’s balance due to satisfy the Contractor’s obligation in this section.

f. Volume/Guarantee of Purchases under this Contract The Commonwealth makes no guarantees that any commodities or services will be purchased from any contract resulting from this RFR. Any volume estimates provided in this RFR are included only for the convenience of bidders, and are not to be relied upon as any indication of future purchase levels. Neither the Commonwealth nor the contract users make any guaranty of volume of Ultra Low Sulfur Diesel and Biodiesel to be purchased under this contract.

g. Contract Termination In the event the contract is terminated for non-performance, the Contractor is responsible for payment of all cost incurred by the Commonwealth in replacing Ultra Low Sulfur Diesel and Biodiesel to include removal of defective Ultra Low Sulfur Diesel and Biodiesel, and any delivery charges as well as any and all cost incurred which exceed the costs the Commonwealth would have incurred were the contract still in place.

h. Call to order All deliveries will be on a call to order basis.

i. Delivery Contractor(s) (awarded bidders) must verify operational details about sites which are located in their awarded zone(s) prior to making deliveries. Prior to initial delivery the Contractor should verify water and sediment levels in storage tanks. These levels must be reported in writing to the user agency for any tanks which require attention. Contractors must deliver to all identified sites located in the awarded zone that are accessible by truck. Delivery of Ultra Low Sulfur Diesel and Biodiesel must be made on days and during hours that are acceptable to contract users. Lead time for normal delivery will be 24 hours; 48 hours for holidays and weekends. Deliveries must be in compliance with all applicable Local, State and Federal laws and regulations. Contractors are responsible for paying for any damages they cause at a site. For those sites receiving delivery by tanker or taking an entire compartment, Contractor must provide a verified copy of the Contractor’s supplier’s statement of delivery. For other deliveries, each truck must be equipped with a meter that automatically prints a ticket showing the number of gallons delivered, which must be signed by the delivery person and the respective contract user’s site manager. Ticket must be supplied to site at time of delivery unless site has requested other arrangements. TRUCKS MUST BE EQUIPPED WITH A MEASURING STICK AND THE DRIVER MUST USE THIS TO CONFIRM DELIVERY AMOUNT IF REQUESTED, unless the tank/fill configuration does not permit such a measurement.

Trucks must be equipped with adequate spill containment equipment/supplies & the driver must be trained in the proper usage of that equipment. If customers are required to have a SPCC plan in place, the Contractor must become familiar with this plan, and understand their role in any such plan.

The Commonwealth reserves the right to inspect delivery trucks to verify quantity being delivered. The delivering Contractor must supply means of inspection. Further, facilities management may choose to physically measure the Ultra-Low Sulfur Diesel and Biodiesel level in a storage tank before and after delivery (“sticking”) in order to verify the amount delivered.

j. Deliveries under 500 gallons Deliveries less than 500 gallons will not be subject to any additional charges or service fees.

k. Emergency Delivery/Dispatch Services Contractor must have available dispatch services 365 days a year / 24 hours a day / 7 days a week. The need for emergency delivery will occur and the Contractor must provide 24 hour, 365 day coverage. If emergency deliveries become a recurring problem, the Contractor must seek resolution via contact with the Strategic Sourcing Lead at OSD.

l. State of Emergency/Disaster In the event of, and for the duration of, any state of emergency or disaster declared by the Governor, the Contractor for any zone in which the emergency or disaster is officially declared shall be prepared to provide continuous twenty-four hour service as directed by the State. For the purpose of maintaining necessary communications and service, the Contractor will designate a primary contact person. The Contractor guarantees that the person so designated will be available throughout the emergency.

m. Industry/Regulatory Changes In the event of the adoption of industry changes which substantially modifies the contract structure in place, the parties will negotiate in good faith an appropriate amendment to this Agreement. Such amendment shall be designed to retain the existing relationships between the parties with due consideration of the risks and rewards. If a change occurs which gives rise to the belief in either party of a necessity to negotiate an appropriate amendment to this Agreement, the party claiming the need to modify the Agreement shall notify the other party at first opportunity, but in any event, within 20 days of the occurrence of the event. If, after 30 days of notice, the parties are unable to negotiate an amendment mutually agreeable to each other (or a shorter time period is the time between the announcement of the proposed change and the date of implementation is less than 30 days) then this Agreement shall terminate on the date that the regulatory change becomes effective. The Contractor agrees that it has specifically assumed the risks and liabilities associated with pricing and terms and conditions of this RFR as specified in this contract except the uncertainties as specified above. Changes in market conditions and prices of Ultra Low Sulfur Diesel and Biodiesel shall not be a change entitling either party to re-negotiate the Agreement.

n. Guarantee/Accidents/Spills The Contractor guarantees to furnish protection from damage to the agency’s building, grounds and/or equipment occurring on account of, or in connection with, or occasioned by, or resulting from the furnishing and delivery of Ultra Low Sulfur Diesel and Biodiesel under this contract and shall be liable for any damages for which its employees are responsible.

This liability includes and is not limited to spills occurring during delivery. The Contractor shall provide constant surveillance during delivery by having a person in attendance at all times at point of transfer. A department ordering too much Ultra Low Sulfur Diesel and Biodiesel will not relieve the vendor responsibility.

While performing work under this contract, the Contractor shall be responsible for completing cleanup of any spills or accidental releases to the environment (pursuant to MGL c. 21E and other relevant regulations) that the Contractor is responsible for at no cost to the Commonwealth. The Contractor shall notify all local, state and federal authorities as required by law in the event of such a release or threat of release. The Contractor will immediately notify the user facility contact person, in writing, in the event of a spill, release, or threat of a release to the environment and prior to initiating clean up response actions. If prior notification of the facility contract is not possible, then the Contractor shall take appropriate response actions, and notify the contact person, in writing, as soon as possible thereafter. The Contractor must provide a written summary of the response actions taken in any case within the timelines established for reporting of spills and/or contamination as set forth in MGL c. 21E. A copy must also be sent to the Strategic Sourcing Lead at OSD.

o. Stand-alone Equipment Contractor must provide on-site deliveries to stand alone equipment such as snow melters or other construction/lawns and grounds equipment. The differential pricing for this service is to be negotiated on a case by case basis. This service can be subcontracted.

p. Geographic Service and Delivery Areas There are nine zones. The City/Town Zone Location Listing lists the Commonwealth communities sorted alphabetically by designated zone. This list is available with the other bid documents in COMMBUYS.

Compensation Structure/Pricing The Commonwealth is interested in signing a differential price and a fixed price contract.

1. Category 1 & 2 Differential pricing Differential price to be added to the lowest wholesale Boston price as published each day in the OPIS–Oil Price Daily (formerly JOC) for Ultra Low Sulfur Diesel and Ultra Low Sulfur Premium Diesel (winter blend).

Prices must be quoted for both Truckload (TL) and Less-Than-Truckload (LTL) deliveries for each zone. Less-Than) Truckload (1-7,999 gallons), Truckload (8,000+ gallons) Price is net F.O.B destination including all customs duties and charges and delivery into Agency’s storage tanks. No additional charges will be accepted, except as noted in the RFR.

The following exceptions to the OPIS–Oil Price Daily (formerly JOC) postings will apply. Saturday, Sunday and Monday Holiday pricing will be based on the previous Friday’s Posting. Prices in effect for midweek or Friday holidays will be based on prices posted for the preceding day.

Corrections to posted prices previously stated in the OPIS–Oil Price Daily (formerly JOC) will be considered only when caused by a typographical or clerical error on the part of said service provided.

Differential pricing will be reviewed annually one month before the anniversary date of the contract. At this time vendors will have the opportunity to request an adjustment to their differential pricing which must be reviewed and approved by the SST. If an increase is requested industry data justification must be submitted with the request.

2. Category 3 - Fixed Pricing Fixed price has a fixed adder over the weighted average of the NYMEX price. The weighted average will be determined at time of purchase by averaging the number of months needed. Contractor will work with the individual purchasing entities to determine specific time to lock into the NYMEX, when it is deemed to be most advantageous. The specific volume will be verified when NYMEX is locked in by the purchasing entities. Purchasing Entities reserves the right to roll over purchases to additional months if needed. It is the responsibility of the Contractor and Purchasing Entity to come to a decision of how unused gallons will be handled prior to entering into an agreement.

Price is net F.O.B destination including all customs duties and charges and delivery into Agency’s storage tanks. No additional charges will be accepted, except as noted in the RFR.

Please note this fixed adder is ceiling, not to exceed pricing. Eligibility entities reserve the right to negotiate a lower fixed adder based on total gallons with the vendor. A minimum of 42,000 gallons must be purchased by the Eligible Entity. It is at the discretion of the Contractor to enter into any agreements less than 42,000 gallons.

3. Taxes State agencies and political subdivisions are specifically exempt from state sales tax and exempt from Federal Excise Taxes. The prices quoted shall be exclusive of said taxes. The Operational Services Division will supply the tax exemption certification when requested.

This contract is subject to the following Taxes/Fees:

Massachusetts Motor Fuels Excise Tax (Exempt entities include: The federal Government, the Regional Transit Authorities, and three state agencies exempted by their enabling statutes the Water Resource Authority, the Port Authority, and the MBTA).

Federal Oil Spill Liability Trust Fund (OSLTF) only if reinstated Federal Leaking Underground Storage Tank (LUST) – Except #6 Massachusetts Uniform Oil and Prevention Fee These fees must be shown as separate line items on the invoice.

4. Standard Business Expenses Standard Business Expenses may be allowed with prior authorization only but in no case will the amount be more than that allowed for Commonwealth of Massachusetts employees. (www.mass.gov/hrd - search for the term “Red Book”)

5. Price Response Sheet For purposes of this RFR, the differential prices submitted on the Price Response Sheet, must be provided in cents per gallon. Differential pricing quoted are to be expressed to four (4) decimal places.

Supplier Diversity Plan Massachusetts Executive Order 524 established the Supplier Diversity Program within the Supplier Diversity Office of the Operational Services Division in order to promote the award of State Contracts in a manner that develops and strengthens Minority and/or Women Business Enterprises (M/WBEs). More recently the Service-Disabled Veteran Owned Business Enterprise Program (“SDVOBE Program”), which is designed to promote access and equity of opportunity to Commonwealth business opportunities to SDVOBE qualifying businesses. As a result, M/WBEs and SDVOBEs are strongly encouraged to submit Quotes in response to this Bid, either as prime contractors, joint venture partners or subcontractors.

All Bidders, regardless of their certification status, are required to submit a completed SDP Plan Form #1 – SDP Plan Commitment as part of their Quote for evaluation. It is required that Supplier Diversity Program participation accounts for no less than 10% of the total points in the evaluation.

Environmental Specifications

0. Environmentally Preferable Products and Services (EPP) Products and services purchased by state agencies must be in compliance with Executive Order 515, which requires Executive Departments to reduce their impact on the environment and enhance public health by procuring environmentally preferable products and services (EPPs) when EPPs perform to satisfactory standards and represent best value. EPPs are considered to be products and services that help to conserve natural resources, reduce waste, protect public health and the environment, and promote the use of clean technologies, recycled materials, and less toxic products. Questions concerning the EO or the appropriate specifications may be directed to OSD’s EPP Procurement Program, www.mass.gov/epp. The Order can be seen at http://www.mass.gov/governor/docs/executive-orders/executive-order-515.pdf Environmental benefit claims concerning products or services must be consistent with the Federal Trade Commissions’ Guides for the Use of Environmental Marketing Terms. Product environmental claims are to include the industry standard the product meets and certifier. Products claiming environmental benefits must include the industry standard it meets within the catalog product description.

Environmental plan Beginning the first year of the Statewide Contract and throughout the life of the Statewide Contract, awarded Bidders must agree to work with OSD and the SST to examine the feasibility of implementing an environmental plan. The objective of this requirement is to actively encourage suppliers to incorporate sustainable practices throughout their business operations and further market such practices to Contract users. Such a plan may include, but not be limited to, the following:

Implementing energy efficiency initiatives at the corporate level such as; lighting retrofits, purchase of energy from renewable sources, use of bio-heat fuel, and other energy reduction technologies.

Using alternative fuel vehicles for delivery or transportation purposes and/or vehicles equipped with diesel emission control devices and deploying anti-idling initiatives.

Working with the SST to develop and distribute information and/or materials to Commonwealth customers on the Awarded Bidder’s environmental practices and initiatives throughout the term of the Contract.

Requirements for Doing Business After Contract Award

1. Performance Measures

a. Continued qualification based on performance The Commonwealth reserves the right to cancel any contract based on lack of vendor performance regarding services required under this contract including but not limited to: on-time deliveries, billing services and customer service.

b. Failure to perform contractual obligations The Commonwealth reserves the right to cancel any contract based on lack of vendor performance regarding services required under this contract including but not limited to: on-time deliveries, billing services and customer service.

c. Corrective Action, Suspension and Termination The Commonwealth reserves the right to develop a corrective action plan, suspend and/or terminate any contract based on lack of vendor performance.

2. Contract Management Requirements The individual listed in the Purchaser field in the Header Information section of the Master Blanket Purchase Order is the Commonwealth Contract Manager. Awarded contractors will be expected to comply with the following:

· All Statewide Contract questions must be directed to the Commonwealth Contract Manager.

· Provide timely responses to requests

· Maintain professionalism and courtesy in dealings with OSD and eligible entities.

· Make appropriate staff available for periodic meetings with the Commonwealth Contract Manager

· Providing electronic documents for up-to-date transparent pricing

· Change notification

· Changes to Contractor’s information

· Changes to the Contractor’s contact information, company name, legal address, payment address, tax identification number, authorized signatories, SDO-certification status, or EFT information must be promptly reported via email to the Commonwealth Contract Manager. In some cases additional paperwork will be required to effect the change.

· Contractor account team

· Single Point of Contact

· Designate a Single Point of Contact (Contractor Contract Manager) for communications with the Commonwealth Contract Manager

· Replacement of Contractor Staff

· Promptly notify the Commonwealth Contract Manager regarding Replacement of Contractor staff

· Complying with contract requirements for:

· Adding commodities and/or services to the Statewide Contract

· Requesting price adjustments Fiscal Terms

a. Bill Payment All invoices issued pursuant to this contract are payable in accordance with the Comptroller’s Bill Payment Policy: http://www.mass.gov/osc/docs/policies-procedures/accounts-payable/po-ap-commonwealth-bill-paying.doc

b. Prompt Pay Discount All Bidders must agree to offer discounts through participation in the Commonwealth Prompt Payment Discount (PPD) initiative for receiving early and/or on-time payments, unless the Bidder can provide compelling proof that it would be unduly burdensome.

Bidders must submit agreeable terms for Prompt Payment Discount unless otherwise specified by the SST. The SST will review, negotiate or reject the offering as deemed in the best interest of the Commonwealth.

The requirement to offer a PPD may be waived by the SST on a case-by-case basis if participation in the program would be unduly burdensome on the Bidder. If a Bidder is claiming that this requirement is a hardship or unduly burdensome, the specific reason must be documented in the Bidder’s Quote.

c. Late Payment Fees Late Payment fees may be assessed only as authorized by the Office of the Comptroller: http://www.mass.gov/osc/docs/ctrinfo/comptroller-regulations/815/cumulative-lpi-rates.doc

d. Electronic Funds Transfer (EFT) All Bidders must agree to participate in the Commonwealth Electronic Funds Transfer (EFT) program for receiving payments. A link to the EFT application can be found on the OSD Forms page (www.mass.gov/osd). Additional information about EFT is available on the Comptroller’s VendorWeb site located at: https://massfinance.state.ma.us/VendorWeb/vendor.asp

Upon notification of award, Contractors are required to enroll in EFT by completing and submitting the “Authorization for Electronic Funds Payment Form” to the SST for review, approval and forwarding to the Office of the Comptroller, unless already enrolled in EFT. A link to the EFT application can be found on the Comptroller’s VendorWeb site (see above link). This form, and all information contained on this form, shall not be considered a public record and shall not be subject to public disclosure through a public records request.

e. Creditworthiness No public entity utilizing this contract shall be required, as a condition of purchase, to undergo any creditworthiness review or application process.

f. Tax Exemption Payment vouchers or invoices submitted to Massachusetts government entities must not include sales tax.

Evaluation Criteria Contractors must submit responses that meet all the submission requirements of the RFR. Only responsive proposals that meet the submission requirements will be evaluated, scored and ranked by the evaluation team according to the evaluation criteria. Additional information may be requested for evaluation purposes.

Any submission which fails to meet the submission requirements of the RFR will be found non-responsive without further evaluation unless the evaluation team, at its discretion, determines that the non-compliance is insubstantial and can be corrected. In these cases, the evaluation team may allow the contractor to make minor corrections to the submission.

Bidder scores will be used to rank Bidders and will determine which Bidders will proceed to subsequent stages of the evaluation and/or enter into negotiations with the Commonwealth to receive a Contract award.

1. Evaluation Phases The evaluation process will consist of multiple phases. Bidder’s scores will be used to determine which Bidders will proceed to subsequent stages of the evaluation.

· Phase I – Review of Mandatory Submittals

· Phase II – Qualitative Review

· Phase III – Price Review

· Phase IV – Reference Check

2. Components The following components will be some of the criteria considered by the team when evaluating each response/quote:

· Company Experience

· Financial Stability

· Supplier Diversity Plan (minimum of 10% weight)

· Price

· References

· BQ-9000® Marketer Certification or Quality Control Plan The order of these factors does not…