13)_EXH_A1Atch12_Fuel_SOO_(FINAL)_4-5-13.pdf

EXHIBIT A.1 - ATTACHEMENT 12 SAQMMA12R0130-A003

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Statement of Objectives

DOS Fuel Supply Iraq

1. Scope: The U.S. Mission in Iraq has a requirement for DF2 Diesel and 95 Octane Unleaded

Gasoline (Mo-Gas) fuel supply delivery services to be provided to the DOS Facilities, Embassy and Consulates throughout Iraq, including International Zone, Baghdad Diplomatic Support

Centre (BDSC), Erbil Diplomatic Support Center (EDSC) and Basrah Consulate General (CG).

Fuel is a mission critical item, so is considered high risk. As each DOS site operates and maintains its own power sources independent of the local power grid, fuel is important for day-to-day operations, health and safety. Iraq is an oil-rich nation, but the ability to turn natural resources into usable commodities is still limited (although this capability is rapidly evolving.)

Establishing a supply chain that takes advantage of the availability and reliability of regional sources, while maximizing the potential cost savings of Iraq sources, should be a part of any proposed strategy.

Fuel is also a critical area when mitigating risk of fraud, waste and abuse. Fuel is a target for the black market. All proposals should address internal controls, quality checks, training and inspection along with associated metrics that are to be included in a program. Ensuring that the fuel and the companies and individuals an offeror is doing business with are fully licensed, appropriately taxed, and meets all requirements for crossing borders and transiting on public highways.

Safety with fuel is also an issue. Having plans to handle spillage properly in accordance with GOI laws and DOS regulations will be a required part of the program. Appropriate training, ensuring people have the right equipment and personal safety gear, and prompt and adequate responses to spills, accidents and contamination are required elements.

Cost controls and the ability to be flexible in a market that is vulnerable to politics, economics, regional and distant conflicts, are capabilities that each offeror should address in the plans required.

Communications with the DOS Embassy and associated CORs will assist in mitigating the above risks. Ideally, any program should have a way of providing daily reporting of fuel order status.

An online dashboard (possibly in concert with other BLiSS service areas), updated in near real-time should be considered as part of an offer.

In FY 2012, the DOS purchased approximately 819,014 gallons of MOGAS, and; 14,043,490 of

DF2 for the sites listed above. The current fuel system is managed by the LOGCAP IV incumbent, primarily, and the fuel supply chain is through DLA with companies in Turkey. In some instances, local Basic Ordering Agreements are in place, purchasing fuel from local distributors.

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2. General Standards – COTS Real Time Freight Tracking Software Program: The Contractor shall provide all software and IT systems required to implement and manage the logistical supply chain for the fuel which provides customers and management status of:

a. lists all approved, outstanding bulk fuel orders by site and customer and original delivery date;

b. status of where each order is physically located in the supply chain pipeline;

c. identifies any disruption or potential distribution and specifies the mitigation plan being implemented to resolve the disruption or potential disruption;

d. identifies revised delivery dates;

e. Place orders for fuel based on requirements provided by the sites;

f. manage the transportation of all fuel ordered and coordinate the delivery schedule with the site personnel responsible for inspection and acceptance of the fuel.

g. Establish fuel price for each delivery. Possible models include: mandated prices by Iraq

Ministers of Oil; OPDC prices; local competitive prices; or, a market index such as PLATTS.

h. Ensure each individual truck and driver which will deliver fuel to a DOS site is licensed and abides by all GOI and DOS regulations:

i. Ensure the delivered fuel meets the technical quality standards for inspection and acceptance;

j. Ensure that each driver obtains a manifest sheet from OPDC stating fuel quantity received and a receipt from the DOS site stating fuel quantity delivered.

k. Coordinate operations as required with designated USG personnel in order to comply with all border and customs requirements, and mitigate checkpoint bottlenecks.

3. General Standards – Fuel and Transportation License(s), Permit(s) and Vendor Agreements:

The Contractor shall:

a) Obtain all official approval(s), contract(s), license(s) and permit(s) from the Iraq Ministers of Oil, Interior, Trade, Transportation, the Governor of each Government district or state and the Iraq Oil Products Distribution Company (OPDC), to legally conduct business in Iraq to procure Iraq gasoline (MOGAS), diesel fuel (DF2) and/or import such fuel and transport fuel into and throughout the country.

b) Establish agreements with Iraq vendors located in the different regions of the country, as well as external sources or distributors as needed to ensure a steady supply chain;

c) Perform pre-award surveys on each potential vendor;

d) Technically qualify the vendors;

e) Coordinate with DOS to perform security reviews of each vendor; and,

f) Ensure each vendor has proof of a line of credit with a financial institution to pay for fuel in advance when purchasing from the Iraq Oil Products Distribution Company (OPDC).

4. General Standards – Fuel Standards: The fuels must conform civilian standards such as the

PLATTS Methodology and Specifications Guide European Products (Latest Update: November

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2012) or ASTM D4814 - 11b Standard Specification for Automotive Spark Ignition Engine Fuel, ASTM D975 - 12 Standard Specification for Diesel Fuel Oils and ASTM D1655 - 12 Standard

Specification for Aviation Turbine Fuels.

5. General Standards – Lawful Operations, Permits, Insurance and Indemnification: The contractor shall provide the required insurance that is legally necessary or required by the local law or that are ordinarily or customarily obtained at the location of the work. The Contractor agrees that the Government shall not be responsible for personal injuries or for damages to:

a. Any property of the Contractor;

b. Its officers;

c. Agents;

d. Servants;

e. Employees;

f. Any other person, arising from an incident related to the contractor’s performance under this contract.

The Contractor must provide the U.S. Government with authentic identification of its personnel and tanker trucks invoked during delivery performance and its personnel shall be trained on proper procedures to include spill response and clean up.

The Contractor’s shall ensure that the proper Government of Iraq (GOI) licensing and approvals are in place for vendors, suppliers, trucking companies, distributors, and manufacturers; in other words, to be in full compliance with the laws and regulations of GOI. Further, the Contractor shall take steps to prevent the introduction and use of black-market items, and take aggressive action if a subcontractor or vendor is found to be trafficking in goods that are illegal, banned, stolen or not properly inspected or taxed.

General Standards – Safety and Controls: The Contractor shall perform deliveries in a manner which ensures the safety of residents, employees and visitors to the Embassy and Consulates, and the Contractor’s employees. The contractor shall ensure employees have safety education when engaged in activities involving Government facilities, personnel, or equipment. The contractor shall comply with all local environmental laws, handling, storage, and disposal of all toxic materials. Contractor shall be responsible for the conduct of Subcontractors engaged in deliveries, and for Subcontractors compliance with the terms of this Statement of Work. The

Contractor is responsible for the behavior of Subcontractors while on government property.

The Contractor will also have an oversight program in place to prevent and discover possible instances of fraud, waste and abuse. This program is responsible to “self-inspect” and make known any instances of such behavior.

6. General Standards – Packing Lists: A packing list or other suitable shipping document shall accompany each shipment and shall include the following information:

(a) Name and address of consignor;

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(b) Name and address of consignee;

(c) Government contract number (and delivery order number, if used);

(d) Government bill of lading number covering the shipment, if any; and

(e) Description of the items shipped, including item number, quantity, number of containers, and package number, if any.

The Contractor’s Safety Officer will collect and maintain a current file on site of Material Safety

Data Sheets (MSDS) on all chemicals used in the Cafeteria, and shall be ready for inspection by the COR or DOS safety officer at any time. Proper handling of all chemicals will be followed by workers.

Accidents involving personnel injury or significant damage to equipment and facilities should be investigated, recorded and reported. A Safety Report will be part of program and quality assurance reviews, along with actions taken to prevent future similar incidents.

7. General Standards – Measuring Costs: All orders shall be priced on the Contractor’s unit prices set forth in the contract schedule and invoiced in accordance with the contract’s economic adjustment clause. Payment will be made for actual fuel delivered and not vehicle load quantity.

8. General Standards – Delivery Service Interruption: At any time during the service performance, the Contracting Officer, Contracting Officer's Representative (COR), or local U. S.

Government receiving official at the delivery location, have the right to instruct the contractor to cease whatever function they are performing for the protection of personnel or property, security, or any other reason at his/her discretion. The contractor shall abide by these instructions.

9. General Standards – U. S. Missions Site Locations: The Contractor shall furnish fuel deliveries to the access-restricted International Zone. The Contractor shall ensure the fuel subcontractor’s drivers possess the required personnel badges and the following required documentation for presentation to the security guards at the entrance gates: delivery tanker motor fleet identification, tanker truck IDs, and/or any utility vehicle IDs subject to auxiliary purpose during fuel deliveries prior to the scheduled delivery so that the government may conduct security checks for its approval to grant access to the premises of the government facilities.

10. General Standards – Marking of Reports: All reports delivered by the Contractor to the

Government under this contract shall prominently show on the cover of the report:

(a) Name and business address of the Contractor;

(b) Contract number and delivery order number, if applicable;

(c) Date of report; and

(d) Program office(s).