Performance Work Statement SP0600-08-R-0505 9-26-08.pdf

PERFORMANCE WORK STATEMENT

FOR

DEFENSE FUEL SUPPORT SERVICES

MEDITERRANEAN SEA AREA

C-1 Description and Purpose of Required Services

C-1.1 Area of Consideration C-1.2 Storage Tank Requirement C-1.3 Grade of Service C-1.4 Physical System Requirements C-1.5 Estimated Throughput Requirements C-1.6 Property Control Records

C-2 General Information

C-2.1 Product Receiving Requirements C-2.2 Product Shipping Requirements C-2.3 Berthing and Mooring Facilities C-2.4 Product Quality Surveillance C-2.5 Ancillary Facilities C-2.6 Laboratory Services C-2.7 Best Commercial Practices

C-1 Description and Purpose of Required Service:

C-1.1 Area of Consideration: the purpose of this requirement is to locate and obtain the necessary facilities and services to receive, store, and ship U. S.

Government-owned petroleum products in the Mediterranean Sea area. The Mediterranean Sea area is defined as the geographic area from the West Coast of Italy, south to North Africa, east to Port Said, Egypt, and north to and including Turkey and back to the West Coast of Italy including Greece but excluding the Adriatic Sea. Ports must be on the Mediterranean or Aegean Seas only.

C-1.1.1 Purpose of the Requirement: The purpose of this requirement is to obtain commercial facilities with the capability to store JP-8/Jet A-1 and JP-5 jet fuel in the

Mediterranean Sea area at any location that can receive and ship by fully loaded Ocean tanker. Any storage offered in Turkey must also include truck loading capability.

C-1.2 Storage Tank Requirements: 1) Jet A-1/JP-8 Storage - A minimum of 1,300,000 barrels (fill capacity) and a maximum of 2,000,000 barrels (fill capacity) of storage is required. Multiple storage locations are acceptable. Minimum storage at a single location is 400,000 barrels (fill capacity).

2) JP-5 Storage - A minimum of 600,000 barrels (fill capacity) of storage is required.

All JP5 storage must be available at a single port.

A minimum of two tanks interconnected and isolated from other facilities and products handled within the tank farm is desired at each location. Offeror must submit the data required by Clause L116.01.

C-1.2.1 Tank Type: Offeror must identify type of construction (i.e. floating roof, Cone, etc.) for all tanks included in the offer.

C-1.3 Grade of Service: 1) Turbine Fuel Aviation Grade Jet A-1/JP-8

2) Turbine Fuel Aviation Grade JP-5

C-1.4 Physical System Requirements: Storage and handling facilities capable of receiving, storing, protecting, and shipping U. S. Government-owned petroleum product. In addition to the data required by Clause L116.01, offerors will be required to provide the tank cleaning and inspection data required by Clause E18 as part of their proposal.

C-1.5 Allowed Throughput: For both grades of product, Jet A-1/JP-8 and JP-5, the U. S. Government will be entitled to initial fill and final shipment of awarded fill capacity at no charge during the 5-year contract performance period. In addition to initial fill and final shipment, the Government will be entitled to allowed throughput equal to two turnovers of the awarded fill capacity during each 12-month period.

(Initial fill is defined as all receipts required to completely fill 100% of the awarded fill capacity. Turnover of the awarded fill capacity is defined as the total receipts in a 12-month performance period plus the total issues in the same 12-month period, divided by two.)

C-1.5.1 Excess Throughput: Throughput that exceeds the allowed throughput quantity is considered excess throughput. Offerors shall include any additional charge for excess throughput quantities, quantities in excess of initial fill, final shipment and the allowed throughput, in their offeror submission. Excess throughput charges will be calculated by multiplying the number of barrels shipped and/or received by the per barrel price included in the offeror submission.

C-1.6 Property Control, Records and System Records: The Contractor shall provide Property Control and System Records in compliance with paragraph (a) of Clause I119.04. A Contractor-furnished computer system shall meet the current commercial standards for a computer system capable of accomplishing the data reporting and records keeping required by the Fuels Automated System (FAS) as shown in C-1.6.1; maintaining the data collection and records keeping associated with product quality surveillance (i.e., product analysis and testing reports); and the document collection associated with the Contractor’s preventive maintenance program.

C-1.6.1 The Contractor shall input inventory and sales data of Government-owned product directly into the Government’s Fuel Automated System (FAS) utilizing the Contractor-furnished company computer system via Contractor-furnished internet access (with static IP address capability) or creation of a dial-in account to the DESC FAS web server. Additional data and requirements can be found in Clause I119.04 and on the internet at, http://ports2.desc.dla.mil.mil/manuals/REF111D.htm”

C-2 General Information:

C-2.1 Product Receiving Requirements: The Contractor’s facilities shall be capable of receiving U. S. Government-owned petroleum product via ocean-going tanker/barge on a 24 hour per day, seven day per week basis at pumping rates compatible with the mode of transportation tendered (minimum 2000 barrels per hour for barges and 8,000 barrels per hour for tankers). The Contractor’s facility shall have filtration capability upon receipt of product. A Contractor representative will witness all vessel quantity measurements, and ensure vessel calculations are accurate. Quantity determination shall be by a temperature compensating meter (C-2.5.4). Calibration of the meter is the requirement of the contractor in accordance with the manufacturer’s guidance.

C-2.2 Product Shipping Requirements: The contractor’s facility shall be capable of shipping U.S. Government-owned petroleum product via ocean-going tankers/barges on a 24 hour per day, seven day per week basis at pumping rates compatible with the mode of transportation tendered (minimum 2,000 barrels per hour for barges and 8,000 barrels per hour for tankers). Note: For storage offers in Turkey, truck loading capability is also required on a 24 hour per day, seven day per week basis as required. A Contractor representative will witness all vessel quantity measurements, and ensure vessel calculations are accurate. Quantity determination shall be by a temperature compensating meter (C-2.5.4). Calibration of the meter is the requirement of the contractor in accordance with the manufacturer’s guidance.

C-2.2.1 Tank to Tank Transfer Capability: The capability to transfer product between storage tanks on a 24 hour per day, seven day per week basis.

C-2.2.2 Pipeline Shipping Capability: 24 hours per day, seven day per week basis is required if included in the offer.

http://ports2.desc.dla.mil.mil/manuals/REF111D.htm

C-2.3 Berthing and Mooring Facilities: The Contractor’s berthing and mooring facility shall be capable of handling a minimum 46,000 dead weight ton (DWT) vessel with an overall length of 800 feet, with a minimum draft of 45 feet at mean low water from the Contractor’s berthing and mooring facility to the open ocean.

The offeror shall provide any port restrictions/requirements and harbor fees with their proposal, along with height restrictions from ships manifold to the waterline during loading/unloading. Note: The Contractor shall provide, with his proposal, detailed maximum capability of his berthing and mooring facilities for evaluation, by the Government, and be prepared to permit the Government to occasionally utilize the maximum berthing and mooring facility capability.

C-2.4 Product Quality Surveillance: No petroleum products shall be received or shipped without first determining and confirming conformance with product quality requirements. No conveyance/container shall be loaded until it is inspected by a qualified contractor person and deemed suitable to carry the intended product.

Products shall be shipped on a first-in, first-out basis unless otherwise approved or directed by the QAR/COR. Non-conforming product shall be reported to the QAR/COR immediately. Anytime product is received into a tank, the tank’s contents shall be suspended from issue pending quality conformance sampling and testing. The Contractor shall ensure that certificates of quality conformance (test reports) are maintained on file for all on-hand fuel stocks.

C-2.4.1 The Contractor will be responsible for maintaining the quality of the Government-owned product stored at the Contractor’s facility in accordance with the Quality Control Plan.

C-2.4.2 Quality Control Plan: The Quality Control Plan (QCP) shall provide comprehensive and detailed step-by-step procedures covering all requirements in clause E1.11, QUALITY CONTROL PLAN. Following contract award, the Contractor shall have 30 days to submit the detailed plan to the QAR/COR and Contracting Officer for review and acceptance. Written procedures must be clear and concise as to: what is done, where it's done, when it's done, how it's done, and who (position) does it. They must describe, in proper sequence, how contract compliance is achieved. For example: receipt of additives prior to blending, blending before sampling, sampling before testing, testing before release of product for shipment, etc. They must describe (and include) only those functions pertinent to contract performance and compliance. They must be reviewed upon initial award and succeeding to assure the technical and procedural requirements are adequately described. They must be dynamic (i.e., modified or extended as changes in technical or procedural requirements occur). Contractor responsibility to inspect product and services shall be in accordance with clause E28, CONTRACTOR

INSPECTION RESPONSIBILITIES.

C-2.4.3 The Contractor shall report immediately to DESC Europe, or the QAR/COR all receipts or on-hand stocks that fail to meet product quality for receipt, storage, or shipment in accordance with the Quality Control Plan.

Suspected off-specification product will be isolated and shall not be released for shipment until authorized by the Contracting Officer or the QAR/COR.

C-2.4.4 Sampling and Testing: The Contractor shall sample and test in accordance with clause C19.07, SAMPLING AND TESTING OF PETROLEUM PRODUCTS.

Calibration of testing equipment required under the provisions of this contract shall be covered in the Quality Control Plan (QCP). The frequency of testing may be increased by the QAR/COR as required. Considerations for increased testing are conditions of storage, age of stock and type of product. Individuals performing product quality testing shall be properly trained and qualified. If a commercial laboratory is used the Contractor shall report any non-responsiveness to the QAR/COR immediately for resolution. All laboratory reports shall be reviewed and kept on file to ensure compliance with specification requirements.

C-2.4.5 Quality During Shipments General: General loading conditions for tank trucks, tank cars, tankers and barges shall be in accordance with clause F1.05, GENERAL SHIPPING CONDITIONS. Written procedures shall be in place for product movement and related quality/quantity checks from shipping tank(s) to conveyance in order to maintain product integrity. The QCP shall provide a description of procedures to use for transfer system from shipping tank to conveyance in order to maintain product integrity, including but not limited to, procedures for properly isolating loading system from shipping tank to conveyance to prevent contamination.

C-2.4.6. Quality During Receipts of Tankers and Barges: General receiving conditions for tankers and barges shall be in accordance with clause F1.04, GENERAL RECEIVING AND STORING CONDITIONS. Before commencing with a receipt of fuel, the contractor shall assure that the shore-side is ready for discharge to ensure the quality of the product in the receipt tank(s) after receiving the product. The terminal shall be aware of the time of the vessel’s arrival. State procedures for assuring condition of loading line (i.e., full of tested product, all air bled and pressure packed, etc.) and gauging shore tanks, both before and after discharge. Determine net quantities before discharge.

C-2.4.6.1 Verify that seal numbers as compared to the DD Form 250-1 are intact.

A meeting shall be held with vessel personnel prior to discharge to discuss procedures and pumping rates to be used. Paperwork onboard the vessel shall be examined to confirm product type, quantity, and quality, and the presence of free water. If there is any indication the product does not conform to the quality requirements, discharge shall not be commenced, the QAR/COR shall be notified.

Discharge shall not commence until the QAR/COR has received disposition instructions and authorizes discharge. Sampling and testing shall be performed according to paragraph C-2.4.5. Line samples are taken to assure product is the same as that being discharged (e.g.: when the line contains unlike product in a non-dedicated system, or when problems were experienced with the previous receipt).

The contractor shall assure additive injectors are in working order, and that required additives are in proper quantity and quality.

C-2.4.6.2 Additional testing shall be performed if required to assure split cargoes have not been commingled. Establish procedures for the transportation of samples from vessel to the testing facility. Establish procedures for monitoring the discharging from vessel to shore tank, investigating irregularities immediately, and stopping discharging if necessary. Establish procedures for investigating discrepancies in quality (mandated if off-specification or out of testing tolerance) and quantity (mandated if shore to shore variance is greater than 0.2 percent for cargos not requiring cleaning, gas freeing or drop/strip; 0.3 percent for cargos requiring drop/strip, 0.5 percent for cargos requiring gas freeing and cleaning, or figures are suspect) on loaded conveyance.

C-2.4.6.3 Establish procedures for immediately notifying the QAR/COR when irregularities occur or are suspected and on all occasions when loading is interrupted. Establish procedures for completing and distributing required documentation prior to release of the vessel. Documentation includes DD Form 250- 1 and DD Form 250-1 continuation sheet, ullage reports, and results of quality/quantity investigations.

C-2.4.7 Corrective Action: Actions to be followed to effect correction of any deficiency affecting product quality or quantity determination, such as handling of off-specification product. The corrective action procedures shall include notification of the COR/QAR. The Contractor is responsible for all inspection systems, Product QCP, and product quality and quantity.

C-2.4.8 Record Keeping and Reports: The Contractor shall be responsible for maintaining detailed sampling and testing logs. Each storage tank shall have a current analysis test report on file. Customers shall be provided copies of tank test reports upon issuance of product if requested. Historical product quality records shall be maintained. All laboratory reports shall be reviewed and kept on file for the duration of the contract to ensure compliance with specification requirements.

These reports shall be turned over to the Government at the end of the contract.

C-2.5 Facilities: The facilities to be furnished under this requirement shall include, as a minimum, the following:

C-2.5.1 All tanks and facilities offered must meet the minimum requirements of the current AOI standards, the NFPA codes, and/or all comparable national laws, regulations, etc., applicable to tanks and facilities of the type to be provided, identify type of tank offered i.e. floating roof, cone, etc.. The facility must be equipped with illumination to allow receipt/issue operations during hours of darkness.

C-2.5.2 Filtration Capability: The Contractor-furnished filtration system shall meet the requirements of API Bulletin 1581, Fourth Edition, January 2000, “Category M” and “Type S” for product filtration during product receiving, shipping, and tank-to-tank transfers. The Government will reimburse the Contractor for the cost of the replacement of filter elements, and disposal of the used filter elements. The Contractor is required to invoice the Government, certified by the QSR, for replacement filters. No fee or administrative charge shall be added.

C-2.5.3 Additive Injection System: The Contractor shall provide an injection system for additives. The Contractor’s additive injection system shall provide a separate injection system (pump and ancillary connection facilities) for the injection of each additive (i.e., FSII, Conductivity and Corrosion Inhibitor/Lubricity Improver additives) into the product during normal receiving, shipping, and tank-to-tank transfer operations. Additive injection equipment requirements for FSII, Conductivity and CI/LI are contained in Clauses F45.01, F45.03, F45.04 respectively.

The additive injection procedures must be capable of frequent monitoring to ensure that the additive injection rate is consistent and within the prescribed limits.

C-2.5.4 Temperature Compensating Meters: The Contractor shall provide API approved temperature compensating meters capable of accurately measuring the volume of product being received and shipped. Calibration of the meter is the requirement of the contractor in accordance with the manufacturer’s guidance.

C-2.6 Laboratory Service: The Contractor shall provide laboratory services to test U. S. Government products to the minimum standards. If using commercial laboratory services the Contractor shall be responsible for shipping the required samples to a laboratory specified by the Government representative. The calibration of testing equipment will be IAW Clause E1.11, Quality Control Plan (DESC Mar 2000).

C-2.7 Best Commercial Practices: In the absence of any contract provisions or reference to a method, specification, or other instruction, the Contractor shall perform all services hereunder in accordance with the best commercial practices.