Solicitation JP10.doc

SP0600-08-D-1506

SOLICITATION/CONTRACT/ORDER FOR COMMERICAL ITEMS

OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24 & 30

SP0600-08-0749

DATE

ISSUE DATE

7.FOR SOLICITATION

INFORMATION CALL:

(No collect calls)

8.OFFER DUE DATE/

LOCAL TIME

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UNRESTRICTED

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SET ASIDE: 100% FOR

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SMALL BUSINESS

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HUBZONE SMALL BUS

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8(A)

NAICS: 325199

SIZE STANDARD: 1000

11.DELIVERY FOR FOB DESTINATION UNLESS BLOCK IS MARKED

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SEE SCHEDULE

12.DISCOUNT TERMS

DEFENSE ENERGY SUPPORT CENTER (DESC-MK)

BLDG 1621

1014 BILLY MITCHELL BLVD

SAN ANTONIO, TX 78226-1859

BARBARA M. PETERSON 210-925-2543

E-MAIL: Barbara.Peterson@dla.mil

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13a. THIS CONTRACT IS A RATED

ORDER UNDER DPAS(15 CFR 700)

13b. RATING DO-A2

CODE:

14.METHOD OF SOLICITATION

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RFQ FORMCHECKBOX

IFB FORMCHECKBOX

RFP

SEE PART I, B1.09-2 SUPPLIES TO BE

FURNISHED (INDEFINITE QUANTITY)(AEROSPACE ENERGY)(DESC APR 2006)

SEE BLOCK 9

17a.CONTRACTOR/ CODE

OFFEROR

DEFENSE FINANCE AND ACCOUNTING SERVICE

COLUMBUS CENTER

ATTN: DFAS/BVDFB (AEROSPACE ENERGY)

P. O. BOX 182317

COLUMBUS, OH 43218-2317

EFT:T

TELEPHONE NO. (410)286-9020

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17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT

SUCH ADRESS IN OFFER

18b.SUMMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS BLOCK BELOW IS CHECKED. FORMCHECKBOX

SEE ADDENDUM

19.

ITEM NO.

20.

SCHEDULE OF SUPPLIES/SERVICES

21.

QUANTITY

22.

UNIT

23.

UNIT PRICE

24.

AMOUNT

SEE PART I, B1.09-2 SUPPLIES TO BE

FURNISHED (INDEFINITE QUANTITY)(AEROSPACE ENERGY)(DESC APR 2006)

(Use Reverse and/or Attach Additional Sheet as Necessary)

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27a.SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1, 52.212-4, FAR 52.212-3 AND 52.212-5 ARE ATTACHED ADDENDA FORMCHECKBOX

ARE FORMCHECKBOX

ARE NOT ATTACHED.

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27b.CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4, FAR 52.212-5 IS ATTACHED. ADDENDA FORMCHECKBOX

ARE FORMCHECKBOX

ARE NOT ATTACHED.

28.CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN COPIES

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TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND DELIVER ALL

ITEMS SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY ADDITIONAL

SHEETS SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED HEREIN.

29.AWARD OF CONTRACT: REF. ______________OFFER DATED

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DATED _________________. YOUR OFFER ON SOLICITATION

(BLOCK 5) INCLUDES ANY ADDITIONS OR CHANGES WHICH ARE SET

FORTH HEREIN, IS ACCEPTED AS TO ITEMS:

SIGNED

SIGNED

AUTHORIZED FOR LOCAL REPRODUCTION STANDARD FORM 1449 (REV 3/2005)

PREVIOUS EDITION IS NOT USABLE Prescribed by GSA – FAR (48CFR) 53.212

19.

ITEM NO.

20.

SCHEDULE OF SUPPLIES/SERVICES

21.

QUANTITY

22.

UNIT

23.

UNIT PRICE

24.

AMOUNT

32a. QUANTITY IN COLUMN 21 HAS BEEN

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RECEIVED FORMCHECKBOX

INSPECTED FORMCHECKBOX

ACCEPTED, AND CONFORMS TO THE CONTRACT, EXCEPT AS NOTED:

32b. SIGNATURE OF AUTHORIZED GOVERNMENT

REPRESENTATIVE

32c. DATE

33d. PRINTED NAME AND TITLE OF AUTHORIZED GOVERNMENT

REPRESENTATIVE

32g.E-MAIL OF AUTHORIZED GOVERNMENT REPRESENTATIVE

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COMPLETE FORMCHECKBOX

PARTIAL FORMCHECKBOX

FINAL

37.CHECK NUMBER

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PARTIAL FORMCHECKBOX

FINAL

42b. RECEIVED AT (Location)

STANDARD FORM 1449 (REV 3/2005) BACK

PART I – SF 1449 CONTINUED

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 October 2008 through 19 October 2013 with the first four months, 20 October through 19 February 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 February 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 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 L2.34.10 PROPOSAL FORMAT AND CONTENT (JP-10/PF-1)(AEROSPACE ENERGY)(JUL 2008) AND ALL OFFERS WILL BE EVALUATED IN ACCORDANCE WITH CLAUSE M2.11.10 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 produce a gallon of JP-10 including production labor, 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 produce a gallon of PF-1 using Government-provided JP-10 excluding production labor. All labor costs for mixing 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 produce a gallon of PF-1 using Government-provided JP-10 excluding production labor. All labor costs for mixing 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 100,000 gallons as required in the C900 Statement of Objectives; distribution costs, all labor costs for mixing/producing the PF-1 and performing DFSP related duties; all overhead costs and profit.

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.

5.

A PreProposal Conference will be held on 5 September 2008, at 9:00 AM, in the New Horizons Conference Room at Aerospace Energy offices, DESC-M, San Antonio, Texas. Please submit the names and titles of personnel who will be in attendance to the attention of Barbara Peterson (Barbara.Peterson@dla.mil). In addition, we ask that you submit any advance questions you may have regarding the RFP no later than 4 September 2008 at 12 Noon.

6.

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.

SOLICITATION FORMAT

PART I – SF 1449 CONTINUED

CLAUSE NUMBER

PAGE

SCHEDULE OF SUPPLIES/SERVICES

B1.09-2

SUPPLIES TO BE FURNISHED (INDEFINITE QUANTITY) (AEROSPACE ENERGY)

(DESC APR 2006)

B18

SET-ASIDE QUANTITIES (DESC FEB 1968)

C1.02

DODISS SPECIFICATIONS (DESC OCT 2000)

C900

STATEMENT OF OBJECTIVES/WORK AND/OR SPECIFICATIONS (JP-10/PF-1) (AEROSPACE

12-14

ENERGY) (DESC JUL 2008)

PACKAGING AND HANDLING

D10

PACKAGING REQUIREMENTS (AEROSPACE ENERGY) (DESC APR 2006)

D14

DRUM REQUIREMENTS (AEROSPACE ENERGY) (DESC APR 2006)

D15

CONTRACTOR SEAL REQUIREMENT (AEROSPACE ENERGY) (DESC OCT 2006)

D20

PALLET REQUIREMENTS FOR DOMESTIC SHIPMENTS (AEROSPACE ENERGY)

(DESC APR 2006)

INSPECTION AND ACCEPTANCE

E1.13.100

CONTRACTOR INSPECTION RESPONSIBILITIES (JP-10/PF-1)(AEROSPACE ENERGY)

15-17

(DESC JUL 2008)

E22.01

QUALITY REPRESENTATIVE (DESC JUL 1992)

E33.10

MANUFACTURING AND FILLING POINTS (AEROSPACE ENERGY) (DESC JUL 2008)

E35

NONCONFORMING SUPPLIES AND SERVICES (DESC JAN 2004)

18-19 E45.01.100

MANUFACTURING QUALIFICATION REQUIREMENTS (JP-10/PF-1) (AEROSPACE ENERGY)

19-20

(DESC JUL 2008)

DELIVERIES AND PERFORMANCE

F1.09-6.100

DETERMINATION OF QUANTITY (JP-10/PF-1) (AEROSPACE ENERGY) (DESC JUL 2008)

20-21 F7

DELAY OF CARRIER EQUIPMENT (DETENTION) (AEROSPACE ENERGY) (DESC APR 2006)

F21

CONTRACTOR NOTICE REGARDING LATE DELIVERY (DESC APR 1968)

CONTRACT ADMINISTRATION DATA

G3.01

PAYMENT DUE DATE (DESC OCT 1988)

G152

SUBMISSION OF INVOICES FOR PAYMENT (AEROSPACE ENERGY) (DESC DEC 2007)

SPECIAL CONTRACT REQUIREMENTS

H15.100

TRANSPORTATION REQUIREMENTS FOR F.O.B. ORIGIN SHIPMENTS BY

TANK TRUCK, TRUCKLOAD, LESS THAN TRUCKLOAD (CYLINDER/DRUM),

TUBE BANK TRAILER, AND RAIL (AEROSPACE ENERGY) (DESC APR 2006)

PART II – CONTRACT CLAUSES

I1.03-1

CONTRACT TERMS AND CONDITIONS - COMMERCIAL ITEMS (SEP 2005)(FAR 52.212-4)

IBR

ADDENDUM TO I1.03-1 (FAR 52.212-4)

I1.04

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR

24-27

EXECUTIVE ORDERS – COMMERCIAL ITEMS (FEB 2008)

I1.05

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR

27-28

EXECUTIVE ORDERS APPLICABLE TO DEFENSE ACQUISITIONS OF COMMERCIAL ITEMS

(MAR 2008)

I1.20-1

CLAUSES AND PROVISIONS INCORPORATED BY REFERENCE (DESC JAN 2003)

29-30 I11.01-2

ADMINISTRATIVE COST OF TERMINATION FOR CAUSE –

COMMERCIAL ITEMS (DESC FEB 1996)

I28.01

FEDERAL, STATE, AND LOCAL TAXES (DESC AUG 2003) (DEVIATION)

Ill6.100

RESPONSIBILITY FOR GOVERNMENT-OWEDED JP-10 (JP-10/PF-1) (AEROSPACE ENERGY)

31-32

(DESC JUL 2008)

I119.03

INVENTORY CONTROL RECORDS AND SYSTEMS OF RECORD AT CONTRACTOR DEFENSE

32-36

FUEL SUPPORT POINTS (AEROSPACE ENERGY) (DESC JUL 2007)

I180.02

ENVIRONMENTAL PROTECTION (STORAGE) (DESC MAY 1987)

I190.06

MATERIAL SAFETY DATA SHEETS -- COMMERCIAL ITEMS (DESC MAR 2000)

I209.09

EXTENSION PROVISIONS (DESC APR 2003)

I525

ISSUE ESCALATION (DESC APR 2006)

PART III – CONTRACT DOCUMENTS AND OTHER ATTACHMENTS

PERFORMANCE SPECIFICATION MIL-DTL-87107D, DATED 28 DEC 2006

ATTACHMENT 1

PERFORMANCE SPECIFICATION MIL-DTL-87173B, DATED 13 FEB 1998

ATTACHMENT 2

SHIPMENT DOCUMENTS (5)

ATTACHMENT 3

DESTINATION LOCATIONS FOR JP-10/PF-1 SHIPMENTS

ATTACHMENT 4

PAST PERFORMANCE QUESTIONNAIRE

ATTACHMENT 5

CONTRACTOR PERFORMANCE DATA SHEET

ATTACHMENT 6

PART IV – SOLICITATION PROVISIONS

L1.02

PROPOSAL ACCEPTANCE PERIOD (DESC NOV 1991)

L2.05

INSTRUCTIONS TO OFFERORS - COMMERCIAL ITEMS (SEP 2006)(FAR 52.212-1)

IBR

ADDENDUM TO L2.05 (FAR 52.212-1)

L2.11-4

E-MAIL PROPOSALS (DESC APR 2005)

L2.34.100

PROPOSAL FORMAT AND CONTENT (JP-10/PF-1)(AEROSPACE ENERGY) (DESC JUL 2008)

39-43 L114

SHIPPING POINT(S) USED IN EVALUATION OF F.O.B. ORIGIN OFFERS (DEC 1984)

EVALUATION – COMMERCIAL ITEMS

M2.11.100

EVALUATION -- COMMERCIAL ITEMS (JP-10/PF-1) (AEROSPACE ENERGY) (DESC JUL 2008)

43-44 M11

EVALUATION—F.O.B. ORIGIN (JUN 2003)

OFFEROR REPRESENTATIONS AND CERTIFICATIONS – COMMERCIAL ITEMS

K1.01-7

OFFEROR REPRESENTATIONS AND CERTIFICATIONS –

COMMERCIAL ITEMS (CONT’D) (DESC FEB 1999)

K1.01-10

OFFEROR REPRESENTATIONS AND CERTIFICATIONS –

46-55

COMMERCIAL ITEMS (ALTS I/II) (SEP 2006/APR 2002/OCT 2000)

ADDENDUM TO K1.01-10

K1.01-12

SMALL BUSINESS PROGRAM NOTICE (DESC MAR 1999)

K1.05

OFFEROR REPRESENTATIONS AND CERTIFICATIONS – COMMERCIAL ITEMS (JUN 2005)

K1.06

DATA UNIVERSAL NUMBERING SYSTEMS (DUNS) NUMBER (APR 2008)

K15

RELEASE OF UNIT PRICES (DESC MAR 2004)

K33.01

AUTHORIZED NEGOTIATORS (DESC APR 2007)

K45.04

FACSIMILE INVOICING (DESC JUL 1998)

K93

REPRESENTATION OF EXTENT OF TRANSPORTATION BY SEA (AUG 1992)

K94

CERTIFICATION REGARDING DEBARMENT, SUSPENSION, PROPOSED DEBARMENT,

57-58

AND OTHER RESPONSIBILITY MATTERS (DEC 2001)

B1.09-2 SUPPLIES TO BE FURNISHED (INDEFINITE QUANTITY) (AEROSPACE ENERGY) (DESC APR 2006)

(a) This is an indefinite quantity contract for the purchase of supplies (and/or services, if applicable) to be furnished during the contract term. The delivery points, methods of delivery, and estimated quantities are specified in the Schedule as contract line item numbers (CLINs). The quantities shown are best estimates of required Government quantities only. Unless otherwise specified, the total quantity ordered and required to be delivered/loaded may be greater than or less than such quantities as allowed by the VARIATION IN QUANTITY clause.

(b) The following provisions apply ONLY if the applicable box is checked:

(1) [ X ] This is a REQUIREMENTS-TYPE contract. The Government agrees to order from the Contractor and the

Contractor shall deliver, if orders are placed by the DESC Contracting Officer during the contract period, all items awarded under this contract, as allowed by the REQUIREMENTS clause. A Blanket Delivery

Order is considered “an order”, for the purposes of this clause.

(2) [ ] This is an INDEFINITE DELIVERY/INDEFINITE QUANTITY contract. The Government agrees to order from the Contractor and the Contractor shall deliver, if orders are placed by the Contracting Officer during the contract period, at least the quantity of supplies or services designated in the Schedule as the

“minimum”, as allowed by the INDEFINITE QUANTITY clause. A Blanket Delivery Order is considered

“an order”, for the purposes of this clause

(3) [ ] Orders issued by the Ordering Officer at the destination location are considered extensions of the Blanket

Delivery Order issued by the DESC Contracting Officer and, as such, may be issued orally, by facsimile or by electronic commerce methods, as allowed by the ORDERING clause.

(4) [ X ] The unit prices specified below shall be fixed for the term of the contract.

(5) [ ] The prices paid shall be the unit prices specified in subsequent price change modifications issued in accordance with the ECONOMIC PRICE ADJUSTMENT – STANDARD SUPPLIES clause, as contained in the Schedule.

(6) [ ] The prices paid shall be the unit prices specified in subsequent price change modifications issued in accordance with the ECONOMIC PRICE ADJUSTMENT – SEMISTANDARD SUPPLIES clause, as contained in the Schedule.

(7) [ ] Items of this contract call for f.o.b. destination delivery, unless the item specifies otherwise. The destination for each item is the point of delivery shown in the particular item. Inspection for quality will be at origin with final acceptance at destination. Applicable to CLIN(s) ____________________________________.

(8) [ ] F.o.b. destination item(s) called for under this contract shall have shipment quantity determinations performed at destination.

(9) [ X ] Items of this contract call for f.o.b. origin delivery, unless the item specifies otherwise. Inspection and acceptance will be at origin. Applicable to CLIN(s) 0001 through 0005.

(10) [ ] Any offers received for less than the full quantity for each line item will be rejected by the Government.

(11) [ X ] A copy of the certified weight ticket shall accompany each shipment.

(12) [ X ] A copy of the Certificate of Analysis shall accompany each shipment.

(13) [ X ] An original and one copy of the H-14 Transport Equipment Delay Certificate shall be provided with each shipment, if applicable.

(DESC 52.207-9F79)

B18

SET-ASIDE QUANTITIES (DESC FEB 1968)

The total quantities set aside by item and destination are as follows:

ITEM

TOTAL

NON-SET-ASIDE

SET-ASIDE

NO.

PRODUCT

QUANTITY

DESTINATION

0001/0002

JP-10

513,392 GAL

0 GAL

513,392 GAL

FOB ORIGIN

& 0003

0004 & 0005

PF-1

11,350 GAL

0 GAL

11,350 GAL

FOB ORIGIN

0006 & 0007

SERVICES

VARIOUS

NONE

ALL

AT FACILITY

(DESC 52.207-9F05)

EST

UNIT

SUPPLIES/SERVICES

QTY

UNIT

PRICE

AMOUNT

MANUFACTURING QUALIFICATION TESTING

UNLESS WAIVED THE FOLLOWING SUBCLINS

WILL BE PERFORMED FROM 20 OCTOBER 2008

TO 19 FEBRUARY 2009.

0001AA

PRE-PRODUCTION SAMPLE (JP-10) IAW

GL

$____NSP___ $____NSP______

CLAUSE E-45.01.100 MANUFACTURING

QUALIFICATION REQUIREMENTS

FOUR 1-GALLON SAMPLES ARE

DUE 21 DAYS AFTER CONTRACT

AWARD UNLESS WAIVED.

0001AB

JP-10 FIRST ARTICLE BATCH

6,000

GL

AND ALL ASSOCIATED COSTS FOR

PREPARATION/RETROFIT/MODIFICATION

OF CONTRACTOR’S PLANT/FACILITY

RELEVANT TO PRODUCTION OF THE

FIRST ARTICLE QUANTITY AND/OR

BECOMING A DEFENSE FUEL SUPPLY

POINT. DUE 90 DAYS AFTER CONTRACT

AWARD UNLESS WAIVED. ALL PLANT

PREPARATION/RETROFIT/MODIFICATIONS

MUST BE COMPLETED BY 19 FEBRUARY 2009.

PROPELLANT, HIGH DENSITY

SYNTHETIC HYDROCARBON

JP-10 (BULK) IAW MIL-DTL-87107D

DATE 28 DEC 2006

NSN: 9135-01-048-5285

FOB: ORIGIN

0002AA

YEAR ONE

98,000

GL

(20 FEB 09 – 19 FEB 10)

0002AB

YEAR TWO

95,000

GL

(20 FEB 10 – 19 FEB 11)

0002AC

YEAR THREE

90,000

GL

(20 FEB 11 – 19 FEB 12)

0002AD

YEAR FOUR

90,000

GL

(20 FEB 12 – 19 FEB 13)

0002AE

YEAR FIVE

90,000

GL

(20 FEB 13 – 19 OCT 13)

SUPPLIES/SERVICES

QTY

UNIT

PRICE

AMOUNT

PROPELLANT, HIGH DENSITY

SYNTHETIC HYDROCARBON

JP-10 (DRUM) IAW MIL-DTL-87107D

DATE 28 DEC 2006

NSN: 9135-01-048-5285

0003AA

YEAR ONE

11,988

GL

0003AB

8,100

GL

(20 FEB 10 – 19 FEB 11)

0003AC

YEAR THREE

8,100

GL

0003AD

8,100

GL

(20 FEB 12 – 19 FEB 13)

0003AE

YEAR FIVE

8,100

GL

(20 FEB 13 – 19 OCT 13)

PROPELLANT, PRIMING FLUID

PF-1 (BULK) IAW MIL-DTL-87173B

DATED 13 FEB 1998 AND BLENDED

FROM GOVERNMENT-PROVIDED

NSN: 9135-01-150-7862

0004AA

YEAR ONE

2,000

GL

0004AB

2,000

GL

(20 FEB 10 – 19 FEB 11)

0004AC

YEAR THREE

2,000

GL

0004AD

2,000

GL

(20 FEB 12 – 19 FEB 13)

0004AE

YEAR FIVE

2,000

GL

(20 FEB 13 – 19 OCT 13)

SUPPLIES/SERVICES

QTY

UNIT

PRICE

AMOUNT

PROPELLANT, PRIMING FLUID

PF-1 (DRUM) IAW MIL-DTL-87173B

DATED 13 FEB 1998 AND BLENDED

FROM GOVERNMENT-PROVIDED

NSN: 9135-01-150-7862

0005AA

YEAR ONE

GL

0005AB

GL

(20 FEB 10 – 19 FEB 11)

0005AC

YEAR THREE

GL

0005AD

GL

(20 FEB 12 – 19 FEB 13)

0005AE

YEAR FIVE

GL

(20 FEB 13 – 19 OCT 13)

SERVICES, MONTHLY FACILITY FEE

(MFF) IAW CLAUSE C900 STATEMENT

OF OBJECTIVES/WORK

AND SPECIFICATIONS.

0006AA

YEAR ONE

MO

0006AB

MO

(20 FEB 10 – 19 FEB 11)

0006AC

YEAR THREE

MO

0006AD

MO

(20 FEB 12 – 19 FEB 13)

0006AE

YEAR FIVE

MO

(20 FEB 13 – 19 OCT 13)

SERVICES, ADDITIVE INJECTION

$_____________/PER GALLON PF-1 TO BE MIXED

IN SUPPORT OF JP-10/PF-1.

CONTRACTOR-FURNISHED FUEL

SYSTEM ICING INHIBITOR (FSII) SHALL

BE INJECTED WHEN REQUESTED BY

DELIVERY ORDER IN ACCORDANCE

WITH CLAUSE C900 STATEMENT

OF OBJECTIVES/WORK AND

SPECIFICATIONS

DESCRIPTION SPECIFICATIONS

C1.02

DODISS SPECIFICATIONS (DESC OCT 2000)

Unless otherwise specified, the issues of Federal and Military specifications, standards, and related standardization documents and those non-Government standards adopted for Department of Defense use, which are cited in this solicitation/contract, are those listed in the most recent Department of Defense Index of Specifications and Standards (DODISS) and any applicable supplement. The basic DODISS is issued on July 1st every year; supplementals thereto are issued every other month thereafter, those dates being September 1st, November 1st, January 1st, March 1st, and May 1st.

(DESC 52.246-9FT1)

C900 STATEMENT OF OBJECTIVES/WORK AND/OR SPECIFICATIONS (JP-10/PF-1) (AEROSPACE ENERGY)

(DESC JUL 2008)

1.

DESCRIPTION OF REQUIREMENT: The Defense Energy Support Center (DESC), Defense Logistics Agency, as the Department of Defense (DoD) Integrated Materiel Manager (IMM) for Aerospace Energy products and services, requires production, storage, and distribution of JP-10 and PF-1 into both Government-provided tank trucks (bulk) and ISO- containers, as well as Contractor-furnished drums. The Contractor shall provide all production, materials, supplies, management, tools, equipment and labor necessary to manufacture, store and distribute JP-10 as well as blend PF-1 from Government-provided JP-10. The intended use of the JP-10 is to support the Navy and Air Force Tactical Tomahawk Missile programs, to include the Low Rate Initial Production program for the Advanced Technology Engine program development, other Research and Development programs and the Commercial Space Launch Act programs. Requirements are FOB Origin.

2.

PRODUCT SPECIFICATION AND TESTING REQUIREMENTS:

a.

JP-10 provided under this contract shall meet the requirements of MIL-DTL-87107D (Propellant, High Density Synthetic Hydrocarbon Type JP-10), dated 28 December 2006.

b.

PF-1 provided under this contract shall meet the requirements of MIL-DTL-87173B (Propellant, Priming Fluid, ALCM Engine, Grade PF-1), dated 13 February 1998.

c.

When delivery orders include a requirement for the addition of Fuel System Icing Inhibitor (FSII) to either JP-10 or PF-1, the following applies:

(1) FSII shall be added to JP-10 or PF-1, when specifically requested, and shall conform to MIL-DTL-85470, dated 15 Jun 1999. The FSII shall be provided by the Contractor and must be proportionately injected into the JP-10 or PF-1 to ensure the additive is homogeneously blended into the propellant. The Contractor shall maintain records evidencing the homogeneous blending of all line-injected additives. Such methods may include meter or tank gauge readings or test results taken at intervals to provide confidence in the injection process.

(2) If ordered, the required FSII concentration range for the finished blend for either JP-10 or PF-1 is .10% to .15% by volume.

(3) When FSII is required, additive concentration must be verified based on a representative shipment sample(s).

d.

In addition to the reports required elsewhere in this contract, one copy of the certificate of analysis for each sample required by the specification shall be sent to DESC-Q at (210) 925-8048 or emailed to tech.prop@dla.mil.

3.

UNIT OF ISSUE: Unit of issue is U.S. Gallon. Reporting of gallons shall be in whole numbers only.

4.

PRODUCTION REQUIREMENTS:

a.

Bulk JP-10

The Contractor shall have bulk JP-10 ordered on delivery orders issued by the DESC Contracting Officer (CO) available for inspection and acceptance in Contractor-furnished tank(s) within fifteen calendar days of the issuance of the delivery order. Upon inspection and acceptance by the Government Quality Assurance Representative (QAR), the product shall become Government-owned with the Contractor-furnished storage tanks serving as a Defense Fuel Support Point (DFSP) in accordance with Clause I116.100 RESPONSIBILITY FOR GOVERNMENT OWNED JP-10.

The Contractor shall identify the tank(s) into which the product is delivered by serial number on each certificate of analysis as well as on each applicable DD Form 250.

b.

Bulk PF-1

(1) Government-owned JP-10 stored at the DFSP shall be made available to the Contractor at no cost as Government Furnished Material (GFM) for blending with Contractor-Furnished Material (methylcyclohexane and additives) to produce PF-1. Clause I116.100 RESPONSIBILITY FOR GOVERNMENT OWNED JP-10 applies as it relates to the Government furnishing JP-10 for blending into PF-1.

Bulk PF-1 product shall be offered to the Government for inspection and acceptance by the Government QAR as its delivered into Government-provided tank trucks within 7 calendar days after issuance of the delivery order by the DESC CO. Government-owned bulk PF-1 will not require storage at, nor distribution out of the DFSP.

Drummed JP-10

(1) Within 7 calendar days after the DESC Item Manager issues either a DD From 1149 or a DD Form 2908, the Contractor shall have Government-owned JP-10 placed into Contractor-furnished drums for shipment by the Government.

(2) Contractor-furnished drums shall be new and un-used and will not be returned by the Government. The “Drum Shipments” section of the Clause E1.13 applies.

(3) All filled JP-10- drums shall be palletized for shipment. OCONUS shipments shall be palletized in accordance with Paragraph 7 of this Statement of Objectives (SOO). CONUS shipments shall be palletized in accordance with Clause D10 PACKAGING REQUIREMENTS (AEROSPACE ENERGY).

d.

Drummed PF-1

(1) Government-owned JP-10 stored at the DFSP shall be made available to the Contractor at no cost as Government Furnished Material (GFM) for blending with Contractor-Furnished Material (methylcyclohexane and additives) to produce PF-1 for delivery via Contractor-furnished drums. Clause I116.100 RESPONSIBILITY FOR GOVERNMENT OWNED JP-10 applies as it relates to the Government furnishing JP-10 for blending into PF-1.

(2) Within 7 calendar days after the DESC CO issues the delivery order, the Contractor shall have blended PF-1 placed into Contractor-furnished drums for inspection and acceptance by the Government QAR.

(3) All filled PF-1 drums shall be palletized for shipment. OCONUS shipments shall be palletized in accordance with Paragraph 8 of this Statement of Objectives. CONUS shipments shall be palletized in accordance with Clause D10 PACKAGING REQUIREMENTS (AEROSPACE ENERGY).

5. BULK STORAGE REQUIREMENTS: For JP-10, the Contractor shall provide bulk storage, and distribution of Government-owned JP-10 into Government provided conveyances while maintaining product on-specification at all times. In order to maintain accountability and control over Government-owned product located at the Contractor’s site, the facility shall be designated as a DFSP and the Contractor shall comply with all requirements stated in Clause I116.100 RESPONSIBILITY FOR GOVERNMENT-OWNED JP-10.

a.

The Contractor shall provide a minimum of two (2) JP-10 storage tanks with a combined useable capacity of at least 100,000 gallons.

b.

The Contractor-furnished storage tanks shall have the capability to receive and distribute JP-10 from or into tank trucks, drums and ISO-containers.

c.

The Contractor shall have bulk shipments available for distribution and shipment from storage within 7 calendar days after the DESC Item Managers issues the DD Form 1149 or DD Form 2908.

6.

PRODUCT DISTRIBUTION: The Government shall provide approved carriers for JP-10 and PF-1 bulk shipments via tank trucks and ISO-containers, as well as approved carriers for JP-10 and PF-1 drum shipments.

a. The Contractor shall have the capability to load a minimum of two commercial tank trucks or ISO-containers per day, between 0700 and 1900 hours, Monday – Friday, excluding Federal holidays. In addition, the Contractor shall have the capability to load a minimum of 100 filled JP-10 and/or PF-1 drums per day between the same hours, Monday – Friday, excluding Federal holidays.

b. The Contractor shall provide a point of contact for coordination of scheduling in carrier(s) for load-out date and time of arrival. The following shall be supplied by the Contractor:

Point of Contact – Primary: _______________

Phone Number: ________________________

Cell Phone: ____________________________

Email: ________________________________

Point of Contact – Alternate: ______________

Phone Number: _________________________

Cell Phone: ____________________________

Email: ________________________________

7.

PALLET REQUIREMENTS FOR OVERSEAS SHIPMENTS: The following statements are in compliance with the European Union (EU) requirements levied on the United States, Canada, China, and Japan concerning environmental infestation. These requirements are specifically concerned with the pinewood nematode. The statements below cite the requirements in detail and cover lumber used to build containers, existing containers, and pallets used for deliveries resulting in shipments to the EU (Direct, through Air Logistics Center (ALCs) or through other bases).

a.

All wooden lumber and wood containers produced entirely or in part of non-manufactured softwood species shall be constructed from heat treated (HT) material (HT to 56 degrees Centigrade or 133 degrees Fahrenheit for 30 minutes). Certification is required by an accredited agency recognized by the American Lumber Standards Committee (ALSC). Construction and Certification shall be in accordance with non-manufactured wood packing policy and non-manufactured wood packing enforcement regulations both dated May 30, 2001. These documents can be found at www.aphis.usda.gov.

b.

All wooden pallets produced entirely or in part of non-manufactured softwood species shall be constructed from heat-treated (HT) material (HT to 56 degrees Centigrade or 133 degrees Fahrenheit for 30 minutes). Certification is required by an accredited agency recognized by the American Lumber Standards Committee (ALSC). Construction and certification shall be in accordance with non- manufactured wood packing policy and non-manufactured wood packing enforcement regulations both dated May 30, 2001. These documents can be found at www.aphis.usda.gov.

All wooden pallets produced entirely of non-manufactured hardwood species shall be identified by a permanent marking of "NC" (NON- CONIFEROUS), 1.25 inches or greater in height, accompanied by the cage code of the contracted manufacturer and the month and year of the contract. On pallets, the marking shall be applied to the stringer or block on opposite sides and ends of the pallet and be contrasting and clearly visible. PALLET REQUIREMENT FOR OVERSEAS SHIPMENTS – The following statements are in compliance with the European Union (EU).

(DESC 52.246-9F28)

PACKAGING AND HANDLING

D10

PACKAGING REQUIREMENTS (AEROSPACE ENERGY) (DESC APR 2006)

(a) The Contractor shall be responsible for ensuring the hazardous materials shipment is in full compliance with all applicable packaging/packing, marking, labeling, placarding, blocking and bracing, and palletizing and shipping certifications in force and effect on the date of the shipment in accordance with the following applicable rules and regulations for the individual hazard, ultimate destination, and mode of transportation:

(1) Title 49 of the Code of Federal Regulations (49 CFR) -- Packaging.

(2) DLAI 4145.3, Preparing Hazardous Materials for Military Air Shipments.

(3) International Air Transport Association (IATA) -- Dangerous Goods Regulations.

(4) International Civil Aviation Organization (ICAO) -- Technical Instructions for the Safe Transportation of Dangerous

Goods by Air.

(5) International Maritime Organization (IMO) -- International Maritime Dangerous Goods (IMDG) Code (for overseas shipments by vessel).

(6) MIL-STD 129, Standard Practice for Military Marking (for military destinations).

(7) MIL-HDBK 774, Department of Defense Handbook, Palletized Unit Loads (for guidance only).

(8) ASME MH 1.8, Wood Pallets.

(b) Contractor commercial packaging (ASTM D 3951) shall also be in compliance with the requirements listed.

(DESC 52.223-9F17)

D14

DRUM REQUIREMENTS (AEROSPACE ENERGY) (DESC APR 2006)

(a) Drums shall be 55-gallon capacity steel drums meeting, as a minimum, the Performance-Oriented Packaging (POP) wall thickness and testing criteria for the UN 1A1 specification packaging of Packing Group (PG) III hazardous materials, as specified in Title 49 of the Code of Federal Regulations (49 CFR).

(b) Drums shall meet the following specifications:

(1) The interior of the drums shall be lined with epoxy coating conforming to MIL-PRF-4556.

(2) The exterior of the drums shall be phosphatized.

(3) Bungs need not be painted.

(4) Cap seals shall be applied to each bung and vent closure prior to shipment.

(DESC 52.223-9F01)

D15

CONTRACTOR SEAL REQUIREMENT (AEROSPACE ENERGY) (DESC OCT 2006)

(a) The Contractor shall place tamper indicating devices (TIDs) such as a seal or cap on the shipping container(s) immediately after filling and sampling. The TIDs shall be placed on the containers in such a manner that pilferage or tampering of the product could only be accomplished by breaking or otherwise destroying the TID. This may require the application of several TIDs on each shipment container.

(b) Where possible, the TID shall be printed with a serial number. The container number and TID number(s) shall be recorded on the certificate of analysis and on the shipping documents. Monthly equipment inventory reports provided to DESC by the Contractor shall include container numbers as well as corresponding TID numbers.

(c) TIDs shall not be removed from a container unless authorized by DESC. If a TID is broken or no longer intact, the Contractor shall contact the Contracting Officer for further instructions. If the Contractor is instructed to place a new TID on the container, the new TID number (if applicable) shall be noted, along with the container number, as stated in paragraph (b) above.

(DESC 52.211-9FN1)

D20

PALLET REQUIREMENTS FOR DOMESTIC SHIPMENTS (AEROSPACE ENERGY) (DESC APR 2006)

Pallets shall be constructed in accordance with one of the following guidelines: MIL-HDBK 774, Department of Defense Handbook, “Palletized Unit Loads”; or ASME/ANSI MH 1.8H or Contractor’s equivalent.

(DESC 52.246-9FPM)

INSPECTION AND ACCEPTANCE

E1.13.100 CONTRACTOR INSPECTION RESPONSIBILITIES (JP-10/PF-1) (AEROSPACE ENERGY) (DESC JUL 2008)

(a) QUALITY CONTROL PLAN.

(1) The Contractor is required to provide and maintain an inspection system and a written description (Quality Control Plan (QCP)) acceptable to the Government. If the Contractor is ISO certified to Q91 (ISO9001) Quality Management Systems, they have the option to offer their Q91 written quality plan as their QCP. If the Contractor chooses to comply with Q91 quality system format, all the specific Quality Assurance provisions of this contract must be included in the Q91 written quality plan. The QCP shall be established and reviewed for adequacy by the Quality Representative (QR) prior to commencement of production or services. The copy of the QCP provided to the QR shall be in English. The QCP shall be dated, reviewed and updated when deemed necessary.

(2) The QCP shall include an identification of key operational positions, a schematic diagram of plant facilities pertinent to the inspection system indicating all inspection points, and a description covering the following operations relating to the product to be furnished under the contract:

(i) FUEL SYSTEM ICING INHIBITOR ADDITIVE. Procedures used for procuring, storing and blending fuel system icing inhibitor into product to assure contract and product specification requirements are met;

(ii) SAMPLING AND TESTING. Procedures for sampling and testing blend tanks, shipping tanks, lines, and conveyances/containers shall be in accordance with American Petroleum Institute (API) Manual of Petroleum Measurement Standards (MPMS), Chapter 8, Section 1, American Society for Testing and Materials (ASTM) (ASTM D 4057) Sampling of Petroleum and Petroleum Products, and/or Section 2 , (ASTM D 4177), Automatic Sampling of Petroleum and Petroleum Products. Procedures shall include location of sample taken, frequency, quantity, and minimum tests required for each sample. Types of tests performed on samples and test methods/procedures shall be in accordance with requirements in the applicable product specifications and the sampling and testing requirements identified below in Table I;

TABLE I

MINIMUM SAMPLING AND TESTING REQUIREMENTS

SAMPLING POINT

1. Refinery/Terminal

Shipping Tank Each Batch Prior to

Commencement of Shipping or Drumming

2 . Shipping Line (All

Modes): Dedicated Line Prior to Loading/Shipping

Line

Appearance/Workmanship; Color; Density; Flash Point

Composite Appearance/Workmanship; Color; Density; Flash Point; FSII if present

* Fuel System Icing Inhibitor (FSII) content shall be determined by conducting test in accordance with ASTM D5006

(iii) CALIBRATION. Program for testing and measuring equipment shall be in accordance with ISO 10012-1, Quality Assurance Requirements for Measuring Equipment, Part 1, or equivalent local regulation as appropriate. A program for calibrating meters used to determine quantity shall comply with the API MPMS , Chapters 4, 5, and 6, or equivalent foreign standard. For items not covered by ASTM, API or IP publications, the applicable manufacturer's recommended calibration method, or methods outlined in the applicable industry publication shall be used if acceptable to the Government;

(iv) STORAGE AND HANDLING. Procedures for storage and handling shall include a description of storage and handling equipment including tanks, lines, valves, and manifolds used. It shall also include identification of dedicated/common product system including description of line segregation and controls to assure capability for proper gauging, sampling, draining of water, filtration, circulation, drying; and identification of any other process/system used in maintaining product integrity during storage and handling;

(v) LOADING AND SHIPPING, GENERAL. Procedures for product movement and related quality/quantity checks shall include a description of transfer point from shipping tank(s) to custody transfer point in order to maintain product integrity. Lines shall have a low point drain to enable complete draining of entire line or for obtaining line samples. Dedicated line is defined as a piping system that shall be used exclusively for JP-10 and PF-1. The lines must be flushed and drained with new fuel when some other blend of the aforementioned fuels has been used in the dedicated lines. Valve bodies in JP-10/PF-1 systems will be constructed of stainless steel or aluminum. All gaskets/seals shall be Teflon, viton, or nitrile (seals, seats and gasket material of zinc, bronze, brass or copper bearing materials are not acceptable). Carbon steel valves are permitted, provided they are internally plated with chromium. Electroplated nickel is permitted for double-seated plug valves and on nodular iron diaphragm control valves within the tank dike area. Iron or bronze-bodied valves shall not be used in JP-10/PF-1 systems.

(vi) PRELOAD INSPECTION - TANK CARS, TANK TRUCKS, AND INTERMODAL CONTAINERS. The Contractor shall inspect and prepare all shipping conveyances prior to loading to insure suitability for loading as follows:

(A) JP-10/PF-1 conveyances not in dedicated JP-10 or PF-1 service shall be cleaned prior to loading. Prior to loading conveyances the Contractor shall verify that the conveyance meets the requirements of DESC Conveyance Conversion Chart in regard to the cleaning process and allowable last product carried (DESC Conveyance Conversion Chart provided by DESC with shipping paperwork). The Contractor shall refrain from loading and immediately contact DESC when conveyance does not meet the requirements of the DESC Conveyance Conversion Chart.

(B) Verify conveyance discharge hoses are clean and capped, and pump housing is clean and dry. All tank truck manifold outlets shall be capped.

(C) Verify interior of conveyance is visibly clean, dry and has been prepared for loading. Remove caps from loading connections and visually inspect interior surfaces to ensure cleanliness. Interior surfaces shall be free from the presence of moisture, corrosion, scale, dirt, grease and foreign matter.

(D) Inspect tankers for general over-the-road readiness (tires, lights, no loose or missing components), and verify readiness for loading.

(vii) LOADING - TANK CARS, TANK TRUCKS, AND INTERMODAL CONTAINERS. Loading of conveyances may only proceed after having passed all pre-load inspections.

(A) Loading rack(s) shall be equipped with filter separators that are located as near the loading or filling point as practicable. Loading rack filters shall be filter/separator (F/S) types conforming to API 1581 and shall be located on the fill line upstream of the fill nozzle header (allow 30 seconds relaxation time between the F/S and the issue nozzle). The F/S shall be outfitted with coalescer cartridge elements. The elements shall be changed in accordance with manufacturer recommendations.

(B) Filled conveyances shall be sampled and tested in accordance with Table I of this clause.

(C) Prior to releasing conveyances from the loading rack, check tank exterior, valves, flanges and welds for leakage. Perform final inspection of tanker and attach a seal or seals in accordance with the clause entitled CONTRACTOR SEALS REQUIREMENT annotating seal numbers on the shipping documents.

(viii) DRUM SHIPMENTS - The following requirements apply to drums filled under this contract:

(A) When drummed product is required, the contractor will be responsible for providing the containers, pallets, and other services. The contractor is responsible for the task of drumming and palletizing product.

(B) Only new (unused) steel drums shall be filled under this contract. Drums used shall be 55gallon capacity meeting, as a minimum, the Performance-Oriented Packaging (POP) wall thickness and testing criteria for the UN1A1 specification packaging of Packing Group (PG) III hazardous materials, as specified in Title 49 of the Code of Federal Regulations (49 CFR).

(C) Drums shall be internally coated (including bungs) with epoxy conforming to MIL-PRF-4556. Prior to filling drums, remove bungs and inspect interior of each drum with a suitable droplight. Interior shall be free of rust, dirt, oil, water and all foreign matter. Damage to the epoxy coating, including blisters, cuts, bare spots and other defects will be cause for rejection of the drum.

(D) The exterior of the drum shall be protected from external corrosion in adverse climates through the use of appropriate surface preparations and application of a corrosion preventive coating compatible with JP-10 and PF-1.

(E) The drum line and filling system shall be flushed and drained with product to be loaded or filled immediately prior to use for filling drum orders under this contract.

(F) Fill each drum with 53 +/- 1 gallons of JP-10 or PF-1, verified in accordance with the DETERMINATION OF QUANTITY clause of this contract.

(G) Filled drums shall be sampled and tested in accordance with Table I of this clause.

(H) After filling and sampling drums(s) insert bungs, tighten with bung wrench sufficient to stop any leakage, and apply a cap seal to each bung and vent closure in accordance with the clause entitled CONTRACTOR SEALS REQUIREMENT.

(ix) CORRECTIVE ACTION.

(A) The QCP shall identify actions to be followed to effect correction of any deficiency affecting product quality or quantity determination, such as handling of off-specification product (waivers, conveyance rejections, etc.). The corrective action procedures shall include notification of the QR.

(B) The Contractor shall perform all inspection and acceptance tests required by the specifications of the supplies to be furnished under this contract or shall have such tests performed in a laboratory acceptable to the Government. When such tests are performed at origin on supplies to be accepted at destination, documentation that will enable verification of the original test results shall be provided to the Government at the time of acceptance.

(DESC 52.246-9F33)

E22.01

QUALITY REPRESENTATIVE (DESC JUL 1992)

The Quality Office assigned inspection responsibility under this contract is _______________________________

(DESC 52.246-9F35)

E33.10

MANUFACTURING AND FILLING POINTS (AEROSPACE ENERGY) (DESC JUL 2008)

(a) Provide the name, complete addresses and telephone number of the manufacturing and filling points for each product to be furnished, and identify the filling points as primary or secondary.

NAME, COMPLETE ADDRESS

AND TELEPHONE NUMBER OF

PRODUCT

MANUFACTURING POINT/FILLING POINT

(b) Suppliers that list primary and alternate manufacturing/filling points for supporting the same requirement shall provide a 30 calendar day notice to the Government prior to offering an initial shipment from an alternate manufacturing/filling point.

(c) For f.o.b. origin shipments, the contract price shall not be adjusted if a Contractor uses a different fill location other than the primary fill point during contract performance. However, if the use of the alternate fill point results in increased costs to the Government, such as transportation costs, the Contractor agrees to reimburse the Government for those increased costs.

(DESC 52.246-9F51)

E35

NONCONFORMING SUPPLIES AND SERVICES (DESC JAN 2004)

(a) The Government may, at its discretion, accept nonconforming supplies or services. In such cases, the Contractor must obtain a deviation or waiver from the Contracting Officer prior to acceptance.

(b) The following procedures shall be used to request a deviation or waiver to the applicable nonconformance(s). A deviation is a request by a Contractor to deviate from the contract requirements after contract award, but prior to initial production of each product (for the duration of the contract). A waiver is a request by a Contractor to deviate from the contract requirements after initial production or each product (on a case-by-case basis or for a set period).

(1) Requests for deviations and waivers shall be submitted by the Contractor to the Contracting Officer with a copy to the Quality Representative (QR). Each request shall provide the following information: Contractor name; contract number; contract line item and product, if applicable; clause number, paragraph and subparagraph, as appropriate; the nature of the request; the reason for the request; the corrective action being taken by the Contractor to correct and prevent recurrence of the condition(s) causing the nonconformance; and equitable price adjustment offered over the administrative fee. In extraordinary situations, the Contractor may initially submit the request for a waiver, not a deviation, through the cognizant QR to the Contracting Officer or the Contracting Officer's Representative (COR) in the Quality Operations Division (DESC-BQ) of the Defense Energy Support Center (DESC). Extraordinary situation requests shall be submitted formally to the Contracting Officer prior to close of business of the next normal DESC workday (0800 to 1630 hours EST, Monday through Friday, Federal Holidays excluded). As used in this clause, the term extraordinary situation means the matter cannot await resolution until the next normal DESC workday. In addition, if either the Contracting Officer or the COR cannot be reached, the Duty Officer shall be contacted and provided the necessary information to forward to the proper individuals as soon as possible. The Duty Officer's telephone number is (800) 286-7633 or (703) 767-8420; (DSN) 427-8420.

(2) If a deviation or waiver is granted, the contract will be modified to provide an equitable price reduction or other adequate consideration commensurate with the deviation or waiver being granted. If the situation dictates, a deviation or waiver may be granted without prior agreement on price adjustment or other consideration subject to agreement by the Contractor, or its representative, to subsequent negotiation. Such agreement shall be documented on the receiving document or other appropriate correspondence. After negotiations, failure to agree on adequate consideration shall be a dispute concerning a question of fact within the meaning of the Disputes paragraph of the CONTRACT TERMS AND CONDITIONS – COMMERCIAL ITEMS clause of this contract.

(3) If a deviation or waiver is granted and the nonconforming supplies are accepted, then in no event will consideration be less than $250 to cover administrative costs, plus any additional cost of Government reinspection or retest, if necessary.

(4) If a deviation or waiver is granted modifying this contract but the supplies accepted are subsequently determined to be in conformity with contract specifications, the Contractor shall still be obligated to pay the consideration originally agreed upon in support of the…