08R0335 AMEND 0004 FINAL 9.30.08.doc

SP0600-02-R-0306-0003

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19 JULY 2002

OMB Approval 2700-0042

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AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

DEFENSE ENERGY SUPPORT CENTER (DESC-MK)

BLDG 1621

1014 BILLY MITCHELL BLVD.

SAN ANTONIO, TX 78226-1859

BUYER: BARBARA M. PETERSON/210-925-2543

SEE BLOCK 6

SP0600-08-R-0335

2008 AUG 27

10A. MODIFICATION OF CONTRACT/ORDER NO.

fillin "If MOD. Enter 'See Block 2 Above' or Mod #"

10B. DATED (SEE ITEM 13)

CODE

FACILITY CODE

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers FORMCHECKBOX is extended, FORMCHECKBOX

(is not extended.

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods:

(a) By completing Items 8 and 15, and returning one (1) copy of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATA SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and data specified.

12. ACCOUNTING AND APPROPRIATION DATA (If required)

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.

B.

THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

C.

THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D.

OTHER Specify type of modification and authority)

E. IMPORTANT: Contractor

FORMCHECKBOX

is not, FORMCHECKBOX is required to sign this document and return __ copies to the issuing office.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

CONTINUED ON PAGE 2 OF 2

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

BARBARA M. PETERSON

(Signature of person authorized to sign)

BY _____________________________

(Signature of Contracting Officer)

NSN 7540-01-152-8070

30-105

STANDARD FORM 30 (REV. 10-83)

PREVIOUS EDITION UNUSABLE

Computer Generated Prescribed by GSA FAR (48 CFR) 53.243

SUBJECT AMENDMENT IS ISSUED TO ADDRESS QUESTIONS FROM INDUSTRY, TO CHANGE VARIOUS SECTIONS OF THE RFP AS A RESULT OF THE QUESTIONS AND TO ISSUE A CONFORMED COPY OF THE SOLICITATION REFLECTING ALL THE CHANGES.

A. The purpose of this section is to address questions from industry pertaining to the subject solicitation asked during the Pre-Proposal Conference held 05 September 2008.

INDUSTRY QUESTION 1: Are the prices fixed per year?

GOVERNMENT RESPONSE: Yes, this is a Firm Fixed Price contract with fixed prices per year for each of the contract line items.

INDUSTRY QUESTION 2: In regards to Drummed JP-10, the Clause C900 STATEMENT OF OBJECTIVES/WORK AND/OR SPECIFICATIONS states that the JP-10 to be drummed will be Government-provided. Wouldn’t this in essence be making the contractor a Defense Fuel Support Point (DFSP) for Drummed JP-10/PF-1 as well as Bulk JP-10?

GOVERNMENT PRE-PROPOSAL RESPONSE: Yes, you are correct. There appears to be an apparent disconnect between the C900 STATEMENT OF OBJECTIVES/WORK AND/OR SPECIFICATIONS and the solicitation that will need to be reconsidered by the Government.

After reconsideration by the Government, Clause C900 STATEMENT OF OBJECTIVES/WORK AND/OR SPECIFICATIONS, will be changed to make the contractor a DFSP for Bulk JP-10, Drummed JP-10 and Drummed PF-1.

These changes have been incorporated in the conformed RFP document included as an attachment to this Amendment.

INDUSTRY QUESTION 3: In regards to Amendment 0001 to the solicitation provided today, why does the Government require 130,000 gallons in a minimum of 2 tanks for DFSP storage? And has the Government considered the possible difficulty of acquiring enough Bulk JP-10 to fill them during the first months of the contract given the difficulty of acquiring the raw materials in enough quantity?

GOVERNMENT PRE-PROPOSAL RESPONSE: Unlike previous JP-10 requirements, this new requirement now includes a requirement for the JP-10 contractor to be a Defense Fuel Support Point (DFSP) for Bulk JP-10 as wells as Drummed JP-10 and Drummed PF-1; meaning that DESC will be maintaining an inviolate level of this product in storage in the interest of National Security. The 130,000 gallons for Bulk JP-10 is DESC’s best estimate of the total of the required inviolate level plus a calculated working level to meet customer peak demands.

After reconsideration by the Government regarding the difficulty of acquiring the raw materials in enough quantity during the first months of the contract, offerors will be asked in the INSTRUCTION TO OFFERORS to provide as part of their offers a proposed Production Plan laying out their schedule for producing a 100,000 gallons of product to meet the Government’s inviolate level in addition to the estimated amount of product that will be needed for shipment to customers over that period.

Additionally as a result of this question, the estimated quantity for CLIN 0002AA Bulk JP-10 for the First Year of the Contract will be increased from 98,000 gallons to 198,000 gallons.

These changes have been incorporated in the conformed RFP document included as an attachment to this Amendment.

INDUSTRY QUESTION 4: Clause C900 STATEMENT OF OBJECTIVES/WORK AND/OR SPECIFICATIONS states that the delivery time for PF-1 is 7 days. Because of the difficulty mixing this product can this be increased to 15 days?

GOVERNMENT PRE-PROPOSAL RESPONSE: The Government will take this under advisement.

After reconsideration by the Government, Clause C900 STATEMENT OF OBJECTIVES/WORK AND/OR SPECIFICATIONS, paragraph 4.b.(2) will be changed to allow for delivery 15 days after issuance of the delivery order by the DESC Contracting Officer.

The change has been incorporated in the conformed RFP document included as an attachment to this Amendment.

INDUSTRY QUESTION 5: Is the 6,000 gallons (CLIN 0001AB) guaranteed to be ordered by the Government after passing First Article Test?

GOVERNMENT PRE-PROPOSAL RESPONSE: Yes, assuming the First Article Batch Testing is passed, the Government will reimburse the contractor for the cost of CLIN 0001AB which includes the 6000 gallons of Bulk JP-10 and the costs of the Contractor’s Plant Preparation/Retrofit/Modification.

INDUSTRY QUESTION 6: As a follow-on question to Amendment 0001, it states that the 130,000 gallons capacity has to be a minimum of two tanks, is this correct? Can it be more than two?

GOVERNMENT PRE-PROPOSAL RESPONSE: The Government requirement is a minimum of two (2) JP-10 storage tanks with a combined useable capacity of at least 130,000 gallons. There can be more than two tanks, within reason, but not less than two tanks. The total storage capacity of all tanks combined must be at least 130,000 gallons.

INDUSTRY QUESTION 7: Regarding CLIN 0004 Bulk PF-1 and CLIN 0005 Drummed PF-1, the way DESC asked us to allocate the costs in the Instructions to Offerors if the prices don’t include the labor costs then all that is left is the cost of the MCH (Methylcyclohexane) for CLIN 0004 and the cost of the MCH and the Drumming in CLIN 0005. Do we include the Drumming Labor in the cost of CLIN 0005?

GOVERNMENT PRE-PROPOSAL RESPONSE: That is correct. Since the Blending Labor Costs for PF-1 are considered part of the CLIN 0006 Monthly Maintenance Fee, the only cost left in CLIN 0004 is cost of the MCH and the only costs left in CLIN 0005 are the cost of the MCH and the Drumming costs. Contractors are asked to include any labor costs for Drumming as part of the overall Drumming cost; meaning that cost of the drum and the drumming labor should be included in the cost of both CLIN 0005 Drummed PF-1 as well as CLIN 0003 Drummed JP-10.

INDUSTRY QUESTION 8: Under CLIN 0007 Additive Injection of Contractor –Furnished Fuel System Icing Inhibitor (FSII), would the Government consider providing the FSII as Government Furnished Material? If not, would the Government consider adding subCLINS to CLIN 0007 in order to allow for yearly escalation costs?

GOVERNMENT PRE-PROPOSAL RESPONSE: The Government will consider both of these requests and provide a decision at a later date.

After reconsideration by the Government regarding the issue of Contractor-Furnished versus Government-Furnished FSII, it has been determined that FSII is readily available in the marketplace and, therefore, it is not necessary for the Government to furnish it to the Contractor the few times that it will be required under the contract. If the successful contractor needs authorization to purchase the FSII utilizing Government contract vehicles such as Federal Supply System Schedules, they can request it in writing after contract award.

Additionally as a result of this question, SubCLINS will be added to CLIN 0007 Additive Injection of Contractor –Furnished Fuel System Icing Inhibitor (FSII) to allow offerors to escalate the price each year of the contract. This change has been incorporated in the conformed RFP document included as an attachment to this Amendment.

INDUSTRY QUESTION 9: What prompted this requirement to be a 100% Small Business Set-Aside? Is the current contractor a Small Business?

GOVERNMENT PRE-PROPOSAL RESPONSE: The current contract was awarded as a 100% Small Business Set-Aside with adequate price competition; therefore, under current regulations, the requirement will remain a 100% Small Business Set-Aside. Yes, the current contractor is a Small Business.

INDUSTRY QUESTION 10: It seems like the incumbent has all the advantages? Can you please shed some light on this?

GOVERNMENT PRE-PROPOSAL RESPONSE: The Federal Acquisition Regulation (FAR) says an incumbent inherently has some advantages, but not all the advantages. Each proposal that is received will be evaluated on its own merit utilizing the evaluation criteria stated in Section M of the RFP.

As an additional comment, the inclusion of the requirement for the winning offeror to function as a DFSP and the storage the 130,000 gallons of product is a new requirement for all the offerors including the incumbent should they choose to propose.

INDUSTRY QUESTION 11: If the 6,000 gallon First Article Test Batch does not pass, the Government does not pay, is this correct?

GOVERNMENT PRE-PROPOSAL RESPONSE: That is correct. However, your company should have a 30-day adjustment time to fix problems and retest another First Article Test Batch prior to the required Production Date. These requirements and its remedies are discussed in Clause E45.01.100 MANUFACTURING QUALIFICATION REQUIREMENTS (JP-10/PF-1) of the solicitation.

INDUSTRY QUESTION 12: Is FSII (Fuel System Icing Inhibitor) the same as PF-1?

GOVERNMENT PRE-PROPOSAL RESPONSE: No. Fuel System Icing Inhibitor is an anti-icing agent consisting primarily of diethylene glycol monomethyl ether (DIEGME) that is sometimes added to either JP-10 or PF-1 depending on the customer’s requirements. PF-1 is a Priming Fluid/Propellant which is a blend of JP-10 with methylcyclohexane. The MIL-SPEC for PF-1 is MIL-DTL-87173B dated 13 Feb 1998 and the MIL-SPEC for the FSII is MIL-DTL-85470B, dated 15 Jun 1999.

INDUSTRY QUESTION 13: When dealing with billing, when would we be able to bill DESC (for product deliveries)?

GOVERNMENT PRE-PROPOSAL RESPONSE: A Delivery Order will be issued for each product delivery. In the case of Bulk JP-10, once the product is delivered into the Government-leased tanks, passes product testing, and a DD250 signed by a Government Quality Assurance Representative (QAR) authorizing acceptance has been received; payment will be processed.

INDUSTRY QUESTION 14: Can newly manufactured Bulk JP-10 be added to Government-owned product currently in the tank?

GOVERNMENT PRE-PROPOSAL RESPONSE: Per Clause I116.100 RESPONSIBILITY FOR GOVERNMENT-OWNED JP-10 (JP-10/PF-1) (AEROSPACE ENERGY), “new JP-10 production runs can to be introduced into a Government-leased tank that is not completely empty and contains Government-owned inventory. However, if a production batch is found to be off specification, the Contractor will assume responsibility and replace at no cost to the Government on a one-for-one gallon basis the amount of Government-owned inventory that became off-specification when commingled with a production run”.

INDUSTRY QUESTION 15: Are the Drum Specifications in the RFP?

GOVERNMENT PRE-PROPOSAL RESPONSE: Yes, the Drum Specifications are including in the “Drum Shipments” section of the Clause E1.13.100 CONTRACTOR INSPECTION RESPONSIBILITIES (JP-10/PF-1).

After review by the Government, Clause D14 DRUM REQUIREMENTS will be deleted from the conformed solicitation document because it conflicts with drum requirements state in the “Drum Shipments” section of the Clause E1.13.00 CONTRACTOR INSPECTION RESPONSIBILITIES (JP-10/PF-1).

INDUSTRY QUESTION 16: Are there any rail shipments?

GOVERNMENT PRE-PROPOSAL RESPONSE: No, there are no requirements for rail shipments.

INDUSTRY QUESTION 17: Are the EU (European Union) pallet requirements listed for OCONUS Shipments?

GOVERNMENT PRE-PROPOSAL RESPONSE: Yes, the EU Pallet requirements for OCONUS drum shipments are included in Clause C900 STATEMENT OF OBJECTIVES/WORK AND/OR SPECIFICATIONS paragraph 8.

INDUSTRY QUESTION 18: In SubCLIN 0001AB is the offeror to include the storage facility?

GOVERNMENT PRE-PROPOSAL RESPONSE: Yes, all costs for the preparation/retrofit/modification of the contractor’s plant/facility relevant to the production and storage of product should be included in the cost of SubCLIN 0001AB. Offerors are reminded that any information relative to the pricing structure for both CLIN 0001AB FIRST ARTICLE BATCH AND ALL ASSOCIATED COSTS FOR PREPARATION/RETROFIT/MODIFICATION OF CONTRACTOR’S FACILITY AND BECOMING A DFSP as well as CLIN 0006 MONTHLY FACILITY FEE (MFF) shall be submitted in the Pricing Proposal.

INDUSTRY QUESTION 19: Raw material pricing is varying greatly in the marketplace? Is there a way for an offeror to index them? Would indexing raw materials be acceptable in the proposal?

GOVERNMENT PRE-PROPOSAL RESPONSE: Yes, the Government would allow an alternate proposal with an Economic Price Adjustments on raw materials; however, the EPA would have to be tied to an Official Published Pricing Index readily available in the marketplace and otherwise consistent with FAR Part 16.203.

INDUSTRY QUESTION 20: Would DESC consider providing the DCPD (Dicyclopentadiene)?

GOVERNMENT PRE-PROPOSAL RESPONSE: The Government would have to weigh the benefits versus the implications of the DCPD being Government-Furnished Material (GFM) and respond at a later date.

After reconsideration by the Government regarding the issue of DCPD being GFM under the contract, the Government has decided to leave the requirement as written. This does not preclude an offeror from providing an alternate proposal demonstrating the cost benefits to the Government of providing the DCPD as GFM.

INDUSTRY QUESTION 21: Is the current contract indexed for DCPD?

GOVERNMENT PRE-PROPOSAL RESPONSE: No the current contract is not indexed; the pricing for all of the CLINs is Firm Fixed Price.

INDUSTRY QUESTION 22: Are the MCH (Methylcyclohexane) specifications included in the solicitation?

GOVERNMENT PRE-PROPOSAL RESPONSE: No, the Government does not have specifications for raw materials used to produce our products.

B. The IMPORTANT NOTICES TO OFFERORS, Page 3-4 of 58, are hereby deleted and replaced with the notices shown below. These changes have been incorporated in the conformed RFP document included as an attachment to this Amendment.

IMPORTANT NOTICES TO OFFERORS

1.

This requirement covers award of a contract for the production, storage and distribution of High Density, Synthetic Hydrocarbon Type Propellant (JP-10) and Priming Fluid (PF-1) for use in Air Launched Cruise Missiles and Air Cruise Missile (ALCM/ACM) in both Bulk and Drum quantities. The period of performance is five-years beginning 20 January 2009 through 19 January 2014 with the first four months, 20 January through 19 May 2009, encompassing retrofit of production and storage facilities for JP-10/PF-1 capability, if proposed. Production, blending, storage, and distribution services and other ancilliary services are anticipated to begin following First Article (FA) Approval but not earlier than 20 May 2009. Product is to be delivered FOB Origin into Government provided tanker trucks, ISO-containers and Contractor-provided Drums.

Offerors may propose using production methods that differ from those known and proven in the commercial industry in the manufacturing of JP-10/PF-1. However, evaluation of such a proposal will consider the added risk to the performance of the vehicles/equipment utilizing the product from an unknown and/or unproven production process.

The contractor shall deliver the FA batch 90 days after contract award. The FA SubCLIN is a definite quantity of 6,000 gallons (unless waived) and any and all development costs shall be included in this SubCLIN. To demonstrate that the offered production concept will be successful, the successful offeror will be required to submit a pre-production sample of JP-10 no later than 21 days after contract award. The sample shall be produced from a facility (e.g. a pilot plant) utilizing the same process including the same materials of construction as proposed for the full-scale production facility. See the Clause entitled E45.01.100 MANUFACTURING QUALIFICATION REQUIREMENTS.

2.

This solicitation is restricted to 100% Small Business performing in the United States. Foreign sources, including Canadian sources, are not eligible for award, as they are, by definition, not considered US Small Businesses.

3.

ALL OFFERORS MUST COMPLY WITH THE REQUIREMENTS LISTED IN CLAUSE L2.34.100 PROPOSAL FORMAT AND CONTENT (JP-10/PF-1)(AEROSPACE ENERGY)(JUL 2008) AND ALL OFFERS WILL BE EVALUATED IN ACCORDANCE WITH CLAUSE M2.11.100 EVALUATION - COMMERCIAL ITEMS (JP-10/PF-1)(AEROSPACE ENERGY)(JUL 2008)

4.

Segregation of Costs for Pricing Proposals:

When preparing the Pricing Proposal, offerors are instructed to include the following costs in each of the CLIN prices.

CLIN 0001

MANUFACTURING QUALIFICATION TESTING, SubCLIN 0001AB – this SubCLIN shall include all developmental costs for the FA Test Batch and all associated capital asset costs for the preparation/retrofit/modification of the contractor’s plant/facility relevant to production of the first article quantity and/or any capital asset costs necessary to becoming a Defense Fuel Supply Point (DFSP).

CLIN 0002

JP-10 BULK. These SubCLINs shall include all variable and incremental costs to produce a gallon of JP-10 including production labor and any escalation in costs from year to year.

CLIN 0003

JP-10 DRUM. These SubCLINs shall include all variable and incremental costs to drum a gallon of Government-owned JP-10 including drumming costs and any escalation in costs from year to year.

CLIN 0004

PF-1 BULK. These SubCLINs shall include all variable and incremental material costs and any escalation in costs from year to year to blend a gallon of PF-1 using Government-provided JP-10 excluding production labor. All labor costs for blending the PF-1 are to be included in CLIN 0006 Monthly Facility Fee.

CLIN 0005

PF-1 DRUM. These SubCLINs shall include all variable and incremental material costs, drumming costs and any escalation in costs from year to year to blend a gallon of PF-1 using Government-provided JP-10 excluding production labor. All labor costs for blending the PF-1 are to be included in CLIN 0006 Monthly Facility Fee.

CLIN 0006

MONTHLY FACILITY FEE (MFF). The MFF is fixed and shall include all costs associated with depreciation of a capital asset. The MFF should include the cost for providing, and maintaining the minimum (2) storage tanks with a total capacity of at least 130,000 gallons as required in the C900 Statement of Objectives; palletizing drummed orders and distribution costs, all labor costs for blending/producing the PF-1 and performing DFSP related duties; all overhead costs and profit.

CLIN 0007 SERVICES, ADDITIVE INJECTION OF CONTRACTOR-FURNISHED FUEL SYSTEM ICING INHIBITOR (FSII). These SubCLINs shall include all variable and incremental material costs, and any escalation in costs from year to year to inject a gallon of JP-10 or PF-1 with Contractor-provided FSII including the injection labor and excluding any costs already recouped in the CLIN 0006 MFF above.

Information relative to the pricing structure for both CLIN 0001AB FIRST ARTICLE BATCH AND ALL ASSOCIATED COSTS FOR PREPARATION/RETROFIT/MODIFICATION OF CONTRACTOR’S FACILITY AND BECOMING A DFSP and CLIN 0006 MONTHLY FACILITY FEE (MFF) shall be submitted in the Pricing Proposal.

Additionally in order to facilitate the build up of the Government’s inviolate level of Bulk JP-10, offerors are asked to provide a draft Production Plan outlining their schedule for production. The time it takes to build the inviolate level will be taken into consideration in the Government’s trade-off decision.

5.

Questions regarding Small Business or Small Disadvantage Business affairs should be addressed to Ms. Lula Manley of the DESC Small Business Office at 1-800-526-2601 or 703-767-9400.

(End of Notices) C. The Clause C19.01.100 SECURITY AND FIRE PROTECTION (JP-10/PF-1)(AEROSPACE ENERGY) (DESC SEP 2008) is hereby added to the conformed solicitation included as an attachment to this Amendment and reads as shown below:

C19.01.100

SECURITY AND FIRE PROTECTION (JP-10/PF-1)(AEROSPACE ENERGY) (DESC SEP 2008)

(a) The entire facility shall be enclosed by a fence suitable to deter unauthorized access.

(b) A method of visitor and entrance control will be in effect. A visitor register shall be maintained.

(c) An internal, self-powered communication system linking all critical points of the facility, capable of serving both as an alarm system and for conduct of plant operation, will be in use.

(d) A water supply and fire fighting equipment conforming to National Fire Protection Association standards will be maintained.

(DESC 52.211-9FL1)

D. As a result of several questions from Industry and the changes to the CLINs referenced above, Clause C900 STATEMENT OF OBJECTIVES/WORK AND/OR SPECIFICATIONS (DESC JUL 2008) is hereby deleted in its entirety and replaced with Clause C900 STATEMENT OF OBJECTIVES/WORK AND/OR SPECIFICATIONS (DESC SEP 2008) incorporated in the conformed solicitation document included as an attachment to this Amendment.

E. As a result of one of the questions above, Clause D14 DRUM REQUIREMENTS will be deleted from the conformed solicitation document included as an attachment to this Amendment.

F. As a result of time extensions given in Amendments 0001 through 0003, the Period of Performance of the resulting Contract has been changed:

FROM: 20 October 2009 – 19 October 2013 TO: 20 January 2009 – 19 January 2014

All of the CLIN date changes have been incorporated in the conformed RFP document included as an attachment to this Amendment.

G. As a result of all the changes to the Request for Proposal (RFP) document referenced in this Amendment, a Conformed RFP document is hereby provided as an attachment to this Amendment. This Conformed RFP makes all the changes discussed above and adjusts other corresponding items that are affected by the changes. Additionally, a newer version of Clause I1.04 CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERS – COMMERCIAL ITEMS (JUN 2008) is incorporated into the document.

H. The Solicitation Closing Date and Time remains unchanged at 2008 October 30/ 4:00 PM Local Time.