Fuel specification.pdf

Fuel Specifications

Purpose The Iowa Department of Transportation (DOT) is seeking qualified vendors to provide Ultra Low Sulfur (ULS) diesel fuel, bio-diesel additive, winter, summer additives, and U87E10 gasohol to DOT for locations listed on this bid.

General Requirements Respondent shall be in the business of providing fuel for the past five (5) years.

Vendors Responsibilities Provide fuels as ordered by respective locations in the required time per specifications listed below.

Fuel Specifications

• #1 Ultra Low Sulfur Diesel Fuel – ASTM D975-23a – or most current published specification

• #2 Ultra Low Sulfur Diesel Fuel – ASTM D975-23a – or most current published specification

• U87E10 Gasohol – ASTM D4814-23 & ASTM D4806-21 – or most current published specification

• Biodiesel Additive B100/B99 (equal substitution) – ASTM D6751-23a - or most current published specification.

• B6 - B20 biodiesel blends – ASTM D7467-23

• Chapter 214A Code of Iowa

Biodiesel Additive must have been produced 100% using vegetable oil. Currently known vegetable oil feed stocks included soy oil, corn oil and canola oil. Any biodiesel additive must have a cloud point of 36° F or lower. Biodiesel produced from any form of animal fat is not acceptable unless otherwise stated.

Vendor Knowledge of Blending Requirements for Biodiesel The U.S. Department of Energy NREL Biodiesel Handling and Use Guide Sixth Edition attached to this bid located under the Buyer Attachment section.

If you are unable to deliver biodiesel as ordered, you will need to contact the Garage Supervisor for further instructions. By contacting the garage supervisor of your situation, you will then be advised of the appropriate mixture of #1 & #2 ULS diesel that location would like you to deliver instead.

Certification When signing a contract from this proposal the successful bidder(s) is stating the blended fuel to be supplied during the contract period meets all the requirements stated in the Code of Iowa and DOT specifications.

BQ-9000 Producer Certification The successful bidder(s) will be responsible to supply the BQ-9000 certification for the producer of the biodiesel they will be providing for this bid. They can provide certification documentation with bid or ask for a provisional qualification while in the process of BQ-9000 Certification. Documentation as well as a phone number for a contact person from ISO will be required.

Bid Pricing The method used to obtain a delivered price for fuels/biodiesel additive is based on the bulk loading Des Moines terminal Daily Rack Average prices as quoted by the DTN Corporation or an equivalent service provider, plus a Bid Margin as provided by the bidder. Adjustments to the Daily Rack Average price shall be computed daily.

The total price of products delivered shall consist of the bid margin (markup and delivery price) plus the Daily Rack Average.

Margin (markup and delivery price) shall be an amount in dollars/cents per gallon. This cost shall include all bidder’s handling transportation/overhead costs and profit costs associated with the delivery of the fuel to each location listed.

Federal Oil Spill Liability Tax shall be included in the bid margin (markup and delivery price).

The bid margin (markup and delivery price) is to be F.O.B. destination and shall NOT include Federal or State taxes. State exemption forms and Federal tax exemption number will be furnished to the successful bidders. Dyed diesel is preferred to avoid any charges of state tax. No additional charge will be paid for undyed diesel. Your bid margin should include any costs for dyed diesel.

The actual amount paid to the supplier will be adjusted to reflect market fluctuations. Bid prices will be adjusted up or down based on the "rack average" base price of the petroleum product for the Des Moines, Iowa terminal. Terminal prices will be monitored and quoted by DTN Corporation of Omaha, NE, or an equivalent service provider. Daily rack average prices are received daily from DTN Corporation and then posted on the Iowa Department of Transportation Purchasing website at www.iowadot.gov/purchasing. Proceed to the link under Average Daily Fuel Prices called View Fuel Prices. Under this link there will be weekly fuel price spreadsheets. A password will be needed to log into the spreadsheets. Contact the Iowa DOT Purchasing Section at dot.purchasing@iowadot.us to receive a password if you currently don’t have one.

Invoices will reflect your bid margin plus or minus the change in the "Rack Average" price. The delivery date shall determine the rack average day’s price to use. If the terminal that you bid your fuel to be pulled from cannot provide product due to outage, vendor will need to contact the contract administrator per agency to negotiate a freight differential that will be paid for the vendor to pull fuel from another terminal.

Oil Spill Liability Trust Fund (OSLTF) or Oil Spill Recovery (OSR) This fee is currently $.0021/gallon and will be included in the bid margin. Biodiesel additive and ethanol blends are exempt from this fee.

Superfund Surcharge This fee is currently $.00405/gallon and will NOT be included in the bid margin. This fee will need to be a separate line-item charge on the invoice. DOT will pay this amount on the diesel products, U87E10 blends and will not pay it towards gallons of biodiesel since we order biodiesel in different mixes and the fee is different for all blends.

Federal LUST This fee is currently $.001/gallon and will NOT be included in the bid margin. This fee will need to be billed as a separate line-item charge on the invoice.

https://www.iowadot.gov/purchasing mailto:dot.purchasing@iowadot.us

RIN Value If the value of the RIN is substantially affected by an outside influence, such as a change in EPA policy or market factors, either the Supplier or state agency can initiate discussions to determine a fair and reasonable adjustment on margin prices. The RIN value as of the letting date will be used as the benchmark to evaluate margin changes for the first RIN change and all subsequent changes will be evaluated from the last RIN value change. An attribute has been added requiring all vendors to respond if they deal in “RINS” and would be able to allow for changes in bio-diesel margins per RIN value changes.

Certificate of Analysis for biodiesel The successful bidder(s) needs to obtain and retain this information so that any authorized representative of the state shall have access to this information if requested. This only applies to Biodiesel additive B99.9/B100 and these documents will not be required for every invoice. This information needs to be held for 6 months beyond the life of the contract.

Monitor Sampling & Testing The contracting authority reserves the right to inspect blending plants and take samples of components and test to verify compliance. Also, random monitor samples of the blended fuel will be taken at various locations and tested to verify compliance.

DOT Fuel Requirements DOT locations will try to use a 20% Biodiesel fuel when temperatures are feasible for this mix. DOT knows that deliveries between November 1st and March 1st may not meet temperature requirements.

If vendor can’t meet biodiesel blending temperature requirements, they will need to notify the garage Supervisor of their situation, you will then be advised of the appropriate mixture of #1 & #2 Low Sulfur Diesel that location would like you to deliver instead.

Transport Deliveries Quantities to be ordered: From 7,000 to 8,000 gallons.

Contracted vendor is required to make delivery within two working days after receiving an order.

Expectation is for deliveries to be made between the hours of 7:00 A.M. and 3 P.M., Monday through Friday excluding holidays. Upon award vendors are encouraged to work with their awarded locations to determine hours best suited for delivery to each location. Loads may be split into two separate delivery locations. A split delivery fee of up to $25.00 will be allowed for such deliveries.

Quantities The estimated annual usage in gallons by location is listed. While these figures are indicative of the quantities that may be delivered to this location, the appropriate agency reserves the right to increase or decrease the quantity delivered. The successful bidder agrees to furnish the DOT and all agencies with fuel throughout the contract period and, if necessary, reserve fuel for the DOT and all agencies on a priority basis.

Contracted vendor shall furnish a metered ticket at the time of delivery showing gallons delivered. In lieu of a metered ticket, a hand-written ticket with quantities taken from a meter reading and confirmed by a state employee will be acceptable. Ticket should list gallons of each type of fuel that was delivered at the location and list if winter or summer additive was included as ordered.

DOT Ordering Procedure

• Maintenance Garage or Local Office will decide on quantity and will have discretion on what mix of fuels needed and contact the contracted vendor to place the order and give the following information:

• Location calling. (Garage name & address)

• Purchase Order Number.

• Quantity, description of fuel and if additives are requested. Contracted Vendor should not assume to add additives unless instructed by the DOT personnel calling in the order and require DOT personnel to detail out all products needed.

• Requested delivery date.

• A copy of the purchase order will be sent to the vendor at the end of the business day. If you don’t receive a copy of the purchase order, feel free to contact the Purchasing Agent for a copy.

Vendor should try and have all the above information prior to making a delivery. If they are missing something that is critical for proper delivery, please contact the Purchasing Agent for assistance. Vendors should call locations prior to delivery to make sure someone will be at the location to accept the delivery unless other arrangements have been made. A list of contacts and cell phone numbers will be given to contracted vendors upon award.

Invoicing The vendor shall invoice the DOT with the following information clearly marked:

1. Delivery Date

2. Gallons of each type of fuel delivered

3. Delivered Unit Price (Rack average plus the bid margin) per gallon

4. Lust Fee, fuel surcharge and any taxes allowed to be charged should be listed as a separate line item on the invoice.