SP0600-09-R-0300 RP-1.pdf

1. REQUISITION NUMBER PAGE 1 OF 59 SOLICITATION/CONTRACT/ORDER FOR COMMERICAL ITEMS

OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24 & 30 SP0600-08-0751

2.CONTRACT NO. 3. AWARD/EFFECTIVE

DATE

4. ORDER NUMBER 5. SOLICITATION NUMBER 6.SOLICITATION

ISSUE DATE

SP0600-09-R-0300 02 Oct 08

a. NAME

b. TELEPHONE NUMBER (No collect calls)

8.OFFER DUE DATE/

LOCAL TIME

7. FOR SOLICITATION

INFORMATION CALL:

MARIA Q. NG 210-925-6845 30 Oct 08; 10:00AM

9. ISSUED BY CODE SP0600

DEFENSE ENERGY SUPPORT CENTER (DESC-MK)

BLDG 1621

1014 BILLY MITCHELL BLVD

SAN ANTONIO, TX 78226-1859

MARIA Q. NG 210-925-6845

E-MAIL: maria.ng@dla.mil

10.THIS ACQUISITION IS

UNRESTRICTED OR SET ASIDE: % FOR:

SMALL BUSINESS EMERGING SMALL

HUBZONE SMALL BUSINESS

BUSINESS

NAICS: 324110 SERVICE-DISABLED VETERAN- 8(A)

SIZE STANDARD: 1,500 OWNED SMALL BUSINESS

13b. RATING

14. METHOD OF SOLICITATION

11. DELIVERY FOR FOB DESTINA-

TION UNLESS BLOCK IS

MARKED

SEE SCHEDULE

12. DISCOUNT TERMS

13a. THIS CONTRACT IS A

RATED ORDER UNDER DPAS

(15 CFR 700)

RFQ IFB RFP

15. DELIVER TO CODE 16.ADMINISTERED BY CODE

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

(INDEFINITE QUANTITY) (AEROSPACE ENERGY) (DESC

APR 2006)

18a.PAYMENT WILL BE MADE BY CODE HQ0104 17a. CONTRACTOR/ CODE

OFFEROR

FACILITY

CODE

TELEPHONE NO.

DEFENSE FINANCE AND ACCOUNTING SERVICE

COLUMBUS CENTER

ATTN: DFAS/BVDFB (AEROSPACE ENERGY)

P. O. BOX 182317

COLUMBUS, OH 43218-2317

17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT

SUCH ADDRESS IN OFFER

18b. SUMMIT INVOICES TO ADDRESS SHOWN IN BLCOK 18a UNLESS BLOCK

BELOW IS CHECKED. 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) 25.ACCOUNTING AND APPRORIATION DATA 26.TOTAL AWARD AMOUNT (For Govt. Use Only)

27a.SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1, 52.212-4. FAR 52.212-3 AND 52.212-5 ARE ATTACHED. ADDENDA ARE ARE NOT ATTACHED.

27b.CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA ARE ARE NOT ATTACHED.

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

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND

DELIVER ALL ITEMS SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY

ADDITIONALSHEETS SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED HEREIN.

29. AWARD OF CONTRACT: REFERENCE __________ OFFER

DATED ___________. YOUR

OFFER ON SOLICITATION (BLOCK 5), INCLUDING ANY ADDITIONS

OR CHANGES WHICH ARE SET FORTH HEREIN, IS ACCEPTED AS

TO ITEMS:

30a. SIGNATURE OF OFFEROR/CONTRACTOR 31a. UNITED STATES OF AMERICA(SIGNATURE OF CONTRACTING OFFICER)

30b. NAME AND TITLE OF SIGNER (Type or Print) 30c.DATE SIGNED 31b. NAME OF CONTRACTING OFFICER (Type or print) 31c.DATE 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 RECEIVED INSPECTED ACCEPTED, AND CONFORMS TO THE CONTRACT, EXCEPT AS NOTED: _______________________

32c. DATE

32b. SIGNATURE OF AUTHORIZED GOVERNMENT

REPRESENTATIVE

33d. PRINTED NAME AND TITLE OF AUTHORIZED GOVERNMENT

REPRESENTATIVE

32e.MAILING ADDRESS OF AUTHORIZED GOVERNMENT REPPRESENTATIVE 32f.TELEPHONE NUMBER OF AUTHORIZED GOVERNMENT REPRESENTATIVE

32g.E-MAIL OF AUTHORIZED GOVERNMENT REPRESENTATIVE

33. SHIP NUMBER 34. VOUCHER NUMBER 35.AMOUNT VERIFIED

CORRECT FOR

37.CHECK NUMBER

PARTIAL FINAL

36.PAYMENT

COMPLETE PARTIAL FINAL

38.S/R ACCOUNT NUMBER 39.S/R VOUCHER NUMBER 40. PAID BY

41a.I CERTIFY THIS ACCOUNT IS CORRECT AND PROPER FOR PAYMENT 42a. RECEIVED BY (Print) 41b.SIGNAUTRE AND TITLE OF CERTIFYING OFFICER 41c.DATE

42b. RECEIVED AT (Location)

42c.DATE REC’D (YY/MM/DD) 42d.TOTAL CONTAINERS

STANDARD FORM 1449 (REV 3/2005) BACK

SP0600-09-R-0300

PART I – SF 1449 CONTINUED

IMPORTANT NOTICES TO OFFERORS

1. This solicitation is for production, storage and distribution of Propellant, Rocket Grade Kerosene (RP-1 and RP-2), IAW MIL-DTL-25576E, dated 14 April 2006. The Defense Energy Support Center (DESC), Defense Logistics Agency (DLA), requires the offeror to provide all production, materials, supplies, management, tools, equipment and labor necessary for the manufacture of RP-1 and RP-2. DESC also requires Contractor furnished storage of bulk RP-1 and RP-1 and RP-2 drums.

The period of performance for the basic period is five-years beginning 1 Jan 2009 through 31 Dec 2013 with the first three months, 1 Jan through 31 Mar 2009, encompassing retrofit of production and storage facilities for RP-1/RP-2 capability, if First Article (FA) is required. Production, blending, storage, and distribution services and other ancillary services are anticipated to begin following (FA) Approval at least 30 days prior to initial contract schedule delivery requirements. If all options are exercised, the contract period will run through 31 Dec 2018. Product is to be delivered FOB Origin into Government provided tanker trucks, ISO-containers and Drums, unless storage and distribution is awarded with the production contract, then product is to be delivered FOB Origin into the contractor provided storage tank.

The contractor shall deliver the FA batch at least 30 days prior to initial contract schedule delivery requirements The FA SubCLIN is a definite quantity of 6,000 gallons (unless waived) and any and all development costs for the production facility shall be included in this SubCLIN. To demonstrate that the offered production concept will be successful, the successful offeror will be required to submit pre-production samples of RP-1 and RP-2 no later than 14 days after contract award. The samples 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. The Government will award One Five (5) Year Fixed Price Requirements-Type Contract with Economic Price Adjustment (EPA), with five (5) one (1) year Option periods. All RP-1 and RP-2 product CLINs (0002, 0004, and 0005) will be adjusted using the Platts Oilgram Price Report as indicated in Clause B19.33.100 ECONOMIC PRICE ADJUSTMENT -- PUBLISHED MARKET PRICE (RP-1 AND/OR RP-2). The EPA will not be applicable to First Article, Drumming Service CLIN, or the Monthly Facility Fee Service CLIN. Award is anticipated no later than 31 Dec 2008.

3. ALL OFFERORS MUST COMPLY WITH THE REQUIREMENTS LISTED IN CLAUSE L2.35.100 PROPOSAL FORMAT AND CONTENT (AEROSPACE ENERGY) (DESC SEP 2008) AND ALL OFFERS WILL BE EVALUATED IN

ACCORDANCE WITH CLAUSE M2.14.100 EVALUATION - COMMERCIAL ITEMS (SEP 2008).

4. Approval for revisions to several clauses listed below are pending. We will issue an amendment to incorporate the clauses as soon as we obtain approval. The following clauses will be incorporated at a later date:

E45.01.100 MANUFACTURING QUALIFICATION REQUIREMENTS (RP FUELS) (AEROSPACE ENERGY)

L2.35.100 PROPOSAL FORMAT AND CONTENT (AEROSPACE ENERGY)

M2.14.100 EVALUATION -- COMMERCIAL ITEMS (AEROSPACE ENERGY)

In addition, the following clauses are also being be updated and will be incorporated at a later time:

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

I1.03-1 CONTRACT TERMS AND CONDITIONS - COMMERCIAL ITEMS

I116.05.100 RESPONSIBILITY FOR GOVERNMENT-OWNED RP-1 AEROSPACE ENERGY

5. A Preproposal Conference will be held on or about 15 Oct 2008, at 9 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 Maria Ng (maria.ng@dla.mil). In addition, we ask that you submit any questions you may have regarding the RFP no later than 14 Oct 2008, 12:00 NOON our time.

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) 7

B19.33.100 ECONOMIC PRICE ADJUSTMENT -- PUBLISHED MARKET PRICE (RP-1 AND/OR RP-2) 8-9

(DESC AUG 2008)

DESCRIPTION/SPECIFICATION

C1.02 DODISS SPECIFICATIONS (DESC OCT 2000) 15

C19.04 REMOVAL OF WATER BOTTOMS (DESC FEB 1998) 15

C900 STATEMENT OF OBJECTIVES/WORK AND/OR SPECIFICATIONS (AEROSPACE ENERGY) 15-18

PACKAGING AND HANDLING

D10 PACKAGING REQUIREMENTS (AEROSPACE ENERGY) (DESC APR 2006) 18

D14 DRUM REQUIREMENTS (AEROSPACE ENERGY) (DESC APR 2006) 18

D15 CONTRACTOR SEAL REQUIREMENT (AEROSPACE ENERGY) (DESC OCT 2006) 19

D20 PALLET REQUIREMENTS FOR DOMESTIC SHIPMENTS (AEROSPACE ENERGY) 19

INSPECTION AND ACCEPTANCE

E1.16.100 CONTRACTOR INSPECTION AND QUALITY ASSURANCE RESPONSIBILITIES (RP FUELS 19-24

PRODUCTION) (AEROSPACE ENERGY) (DESC SEP 2008)

E22.01 QUALITY REPRESENTATIVE (DESC JUL 1992) 24

E33.10 MANUFACTURING AND FILLING POINTS (DESC JUL 2008) 24

E35 NONCONFORMING SUPPLIES AND SERVICES (DESC JAN 2004) 24-25

DELIVERIES AND PERFORMANCE

F1.09-7 DETERMINATION OF QUANTITY (RP FUELS) (AEROSPACE ENERGY) (DESC JUN 2008) 25-26

F3.04 TRANSPORTATION OF HAZARDOUS MATERIALS (AEROSPACE ENERGY) (DESC APR 2006) 27

F7 DELAY OF CARRIER EQUIPMENT (DETENTION) (AEROSPACE ENERGY) (DESC APR 2006) 27

F21 CONTRACTOR NOTICE REGARDING LATE DELIVERY (DESC APR 1968) 27

CONTRACT ADMINISTRATION DATA

G3.01 PAYMENT DUE DATE (DESC OCT 1988) 27

G152 SUBMISSION OF INVOICES FOR PAYMENT (AEROSPACE ENERGY) (DESC DEC 2007) 27-28

SPECIAL CONTRACT REQUIREMENTS

H15.100 TRANSPORTATION REQUIREMENTS FOR F.O.B. ORIGIN SHIPMENTS BY TANK TRUCK, 28-29

TRUCKLOAD, AND/OR LESS THAN TRUCKLOAD (CYLINDER/DRUM)

(AEROSPACE ENERGY) (DESC SEP 2008)

PART II – CONTRACT CLAUSES

I1.03-1 CONTRACT TERMS AND CONDITIONS - COMMERCIAL ITEMS (FEB 2007)(FAR 52.212-4) IBR

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

I1.20-1 CLAUSES AND PROVISIONS INCORPORATED BY REFERENCE (DESC JAN 2003) 29-30

I11.01-2 ADMINISTRATIVE COST OF TERMINATION FOR CAUSE – 30

COMMERCIAL ITEMS (DESC FEB 1996)

I28.01 FEDERAL, STATE, AND LOCAL TAXES (DESC AUG 2003) (DEVIATION) 31

I116.05.100 RESPONSIBILITY FOR GOVERNMENT-OWNED RP-1 AEROSPACE ENERGY 31-33

(DESC AUG 2008)

I119.03 INVENTORY CONTROL RECORDS AND SYSTEMS OF RECORD AT CONTRACTOR 33-37

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

I180.02.100 ENVIRONMENTAL PROTECTION (STORAGE) (DESC AUG 2008) 37

I186 PROTECTION OF GOVERNMENT PROPERTY AND SPILL PREVENTION (DESC MAY 1978) 37-38

I190.06 MATERIAL SAFETY DATA SHEETS -- COMMERCIAL ITEMS (DESC MAR 2000) 38

I209.18 OPTION TO EXTEND THE TERM OF THE CONTRACT (DESC DEC 2007) 38

I209.09 EXTENSION PROVISIONS (DESC APR 2003) 38

I290.100 COMMERCIAL USE OF PRODUCTION FACILITY (AEROSPACE ENERGY) (DESC AUG 2008) 38

I525 ISSUE ESCALATION (DESC APR 2006) 38-39

PART II – CONTRACT CLAUSES – CONTINUED

I1.04 CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR 39-42

EXECUTIVE ORDERS – COMMERCIAL ITEMS (JUN 2008)

I1.05 CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR 42-44

EXECUTIVE ORDERS APPLICABLE TO DEFENSE ACQUISITIONS OF COMMERCIAL ITEMS

(MAR 2008)

PART III – CONTRACT DOCUMENTS AND OTHER ATTACHMENTS

LOAD REPORT SAMPLE ATTACHMENT 1

PERFORMANCE SPECIFICATION MIL-DTL-25576E, DATED 14 APRIL 2006 ATTACHMENT 2

SUBCONTRACTING PLAN ATTACHMENT 3

TRANSPORTATION DELAY CERTIFICATE (H-14) ATTACHMENT 4

MOTOR VEHICLE INSPECTION ATTACHMENT 5

CONTRACTOR PERFORMANCE DATA SHEET ATTACHMENT 6

PART IV – SOLICITATION PROVISIONS

L2.05 INSTRUCTIONS TO OFFERORS - COMMERCIAL ITEMS (APR 2008)(FAR 52.212-1) IBR

ADDENDUM TO L2.05 (FAR 52.212-1)

L1.02 PROPOSAL ACCEPTANCE PERIOD (DESC NOV 1991) 44

L2.11-4 E-MAIL PROPOSALS (DESC APR 2005) 45

EVALUATION – COMMERCIAL ITEMS

M11 EVALUATION -- F.O.B. ORIGIN (JUN 2003) 45

OFFEROR REPRESENTATIONS AND CERTIFICATIONS – COMMERCIAL ITEMS

K1.01-10 OFFEROR REPRESENTATIONS AND CERTIFICATIONS - COMMERCIAL ITEMS 46-56

(ALTERNATES I/II) (JUN 2008/APR 2002/OCT 2000)

ADDENDUM TO K1.01-10

K1.01-6 AFFIRMATIVE ACTION COMPLIANCE (APR 1984) 56

K1.01-12 SMALL BUSINESS PROGRAM NOTICE (DESC MAR 1999) 57

K1.05 OFFEROR REPRESENTATIONS AND CERTIFICATIONS - COMMERCIAL ITEMS (JUN 2005) 57

K15 RELEASE OF UNIT PRICES (DESC MAR 2004) 57

K33.01 AUTHORIZED NEGOTIATORS (DESC APR 2007) 57

K45.04 FACSIMILE INVOICING (DESC JUL 1998) 58

K94 CERTIFICATION REGARDING RESPONSIBILITY MATTERS (MAY 2008) 58-59

SCHEDULE OF SUPPLIES/SERVICES

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) [ ] 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) __0002, 0004, and 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)

B19.33.100 ECONOMIC PRICE ADJUSTMENT -- PUBLISHED MARKET PRICE (RP-1 AND/OR RP-2)(AEROSPACE

ENERGY) (DESC AUG 2008)

(a) WARRANTIES. The Contractor warrants that--

(1) The base unit prices set forth in the Schedule do not include allowances for any portion of the contingency covered by this clause; and

(2) The prices to be invoiced shall be computed in accordance with the provisions of this clause.

(b) DEFINITIONS. As used throughout this clause, the term--

(1) Base unit price means the unit price set forth opposite the item in the Schedule.

(2) Market price means the price to be used in determining an economic price adjustment of the base unit price of an individual product for the market area and time period specified in this clause. The market price is derived from quotes, assessments, or sales prices in the market place for one or several items or commodity groups as reported in a consistent manner in a publication, electronic data base, or other form, as determined by an independent trade association, governmental body, or other third party independent of the Contractor.

(i) Base market price means the price as shown in Column V of the table below which is the market price from which economic price adjustments are calculated pursuant to this clause.

(ii) Adjusting market price means the market price for deliveries during the most recent period, as defined in the table below.

(3) Date of delivery is defined as follows:

(i) FOR TANKER OR BARGE DELIVERIES.

(A) F.O.B. ORIGIN. The date and time vessel commences loading.

(B) F.O.B. DESTINATION. The date and time vessel commences discharging.

(ii) FOR PIPELINE DELIVERIES. The date and time product commences to move past the specified f.o.b.

point.

(iii) FOR ALL OTHER TYPES OF DELIVERIES. The date product is received.

(c) ADJUSTMENTS.

(1) Subject to the provisions of this clause, the price payable shall be the base unit price in effect on the date of delivery increased or decreased by the same number of cents, or fraction thereof, that the adjusting market price increases or decreases, per like unit of measure, from the base market price.

(2) CALCULATIONS. All calculations shall be rounded to six decimal places.

(3) MODIFICATIONS. Any resultant price changes to the base market price and base unit price shall be executed by the Contracting Officer through a monthly price adjustment modification effective the last day of each month for deliveries to be made during the next calendar month.

(4) FAILURE TO DELIVER. Notwithstanding any other provisions of this clause, no upward adjustment shall apply to product scheduled under the contract to be delivered before the effective date of the adjustment, unless the Contractor’s failure to deliver according to the delivery schedule results from causes beyond the Contractor’s control and without its fault or negligence, within the meaning of paragraphs (f), Excusable Delays, and (m), Termination for Cause, of the CONTRACT TERMS AND CONDITIONS - COMMERCIAL ITEMS clause of this contract, in which case the contract shall be amended to make an equitable extension of the delivery schedule.

(5) UPWARD CEILING ON ECONOMIC PRICE ADJUSTMENT. The Contractor agrees that the total increase in any contract unit price, pursuant to these economic price adjustment provisions shall not exceed _575 percent of the original base unit price in any applicable program year (whether a single year or multiyear program), except as provided hereafter.

(i) If at any time the Contractor has reason to believe that within the near future a price adjustment under the provisions of this clause will be required that will exceed the current contract ceiling price for any item, the Contractor shall promptly notify the Contracting Officer in writing of the expected increase. The notification shall include a revised ceiling which the Contractor believes is sufficient to permit completion of remaining contract performance, along with appropriate explanation and documentation as required by the Contracting Officer.

(ii) If an actual increase in the established market price would raise a contract unit price for an item above the current ceiling, the Contractor shall have no obligation under this contract to fill pending or future orders for such item, as of the effective date of the increase, unless the Contracting Officer issues a contract modification to raise the ceiling. If the contract ceiling will not be raised, the Contracting Officer shall so promptly notify the Contractor in writing.

(6) REVISION OF MARKET PRICE INDICATOR. In the event--

(i) Any applicable market price indicator is discontinued or its method of derivation is altered substantially; or

(ii) The Contracting Officer determines that the market price indicator consistently and substantially fails to reflect market conditions,-- the parties shall mutually agree upon an appropriate and comparable substitute and the contract shall be modified to reflect such substitute effective on the date the indicator was discontinued, altered, or began to consistently and substantially fail to reflect market conditions. If the parties fail to agree on an appropriate substitute, the matter shall be resolved in accordance with paragraph (d), Disputes, of the CONTRACT TERMS AND CONDITIONS - COMMERCIAL ITEMS clause of this contract.

(d) CONVERSION FACTORS. If this clause requires quantity conversions for economic price adjustment purposes, the factors specified in the CONVERSION FACTORS clause shall apply, unless otherwise specified in the Schedule.

(e) EXAMINATION OF RECORDS. The Contractor agrees that the Contracting Officer or designated representative shall have the right to examine the Contractor's books, records, documents, or other data the Contracting Officer deems necessary to verify Contractor adherence to the provisions of this clause.

(f) FINAL INVOICE. The Contractor shall include a statement on the final invoice that the amounts invoiced hereunder have applied all decreases required by this clause.

(g) TABLE.

I II III IV V

Heading under which Base market price market indicator Location where as of Aug 2008_ Name of is published and market price (excludes all taxes) Item No. Publication name of product is applicable (see note(s) below)

0002,0004 Platts Oilgram Product Price U.S. Gulf Coast $3.286629 and 0005 Price Report Assessments U.S. edition Waterborne Jet/Kero 55

NOTE: Buyer shall include a note or notes in the table which will identify the specific publication(s), method(s), and time period(s) for calculating the market price(s), as exemplified below:

For Platts Oilgram: "NOTE: The East/Gulf Coast adjusting market price will be firm for monthly periods and is defined as the average of the applicable daily Platts spot assessment quotations effective for the prior month. The simple average of the daily average highs and lows of the prices effective the first through the last day of the prior month (excluding any days prices are not published) shall be the adjusting market price effective for the following month."

(DESC 52.216-9F33)

ITEM SUPPLIES/SERVICES ESTIMATED UNIT PRICE AMOUNT

QTY/UNIT

0001 FIRST ARTICLE

UNLESS WAIVED THE FOLLOWING

SUBCLINS WILL BE PERFORMED FROM 1

JAN 2009 THROUGH 31 MAR 2009.

0001AA PRE-PRODUCTION SAMPLES (RP-1 AND RP-2) ___NSP_____

REFER TO CLAUSE ENTITLED

MANUFACTURING QUALIFICATION

REQUIREMENTS. SAMPLES ARE DUE 14

DAYS AFTER CONTRACT AWARD UNLESS

WAIVED.

0001AB FIRST ARTICLE (FA) BATCH 6,000 GL ___________ __________

THE CONTRACTOR SHALL DELIVER THE FA

BATCH AFTER CONTRACT AWARD. THE FA

SUBCLIN IS A DEFINITE QUANTITY OF 6,000 GL

(UNLESS WAIVED). REFER TO CLAUSE

ENTITLED MANUFACTURING QUALIFICATION

REQUIREMENTS. ALL PLANT

PREPARATION/RETROFIT/ MODIFICATIONS

MUST BE COMPLETED AT LEAST 30 DAYS

PRIOR TO INITIAL CONTRACT SCHEDULE

DELIVERY REQUIREMENTS.

0002 PROPELLANT, ROCKET GRADE KEROSENE,

RP-1 GRADE, (BULK) IAW MIL-DTL-25576E,

DATED 14 APRIL 2006

IAW CLAUSE C900, STATEMENT OF

OBJECTIVES/WORK AND/OR SPECIFICATIONS

NSN: 9130-00-543-7429

0002AA PERIOD ONE 374,000 GL $_________________ $________________

01 APR 2009 – 31 MAR 2010

0002AB PERIOD TWO 260,000 GL

01 APR 2010 – 31 MAR 2011

0002AC PERIOD THREE 260,000 GL

01 APR 2011 – 31 MAR 2012

0002AD PERIOD FOUR 260,000 GL

01 APR 2012 – 31 MAR 2013

0002AE PERIOD FIVE 260,000 GL

01 APR 2013 – 31 DEC 2013

0002AF OPTION ONE 260,000 GL

01 JAN 2014 – 31 DEC 2014

0002AG OPTION TWO 260,000 GL

01 JAN 2015 – 31 DEC 2015

0002AH OPTION THREE 260,000 GL

01 JAN 2016 – 31 DEC 2016

0002AJ OPTION FOUR 260,000 GL

01 JAN 2017 – 31 DEC 2017

0002AK OPTION FIVE 260,000 GL

01 JAN 2018 – 31 DEC 2018

0003 SERVICE, DRUMMING FROM BULK INVENTORY

IN SUPPORT OF PROPELLANT,

ROCKET GRADE KEROSENE, RP-1 GRADE,

FROM DLA OWNED RP-1 PRODUCT

IAW CLAUSE C900, STATEMENT OF

OBJECTIVES/WORK AND/OR SPECIFICATIONS

PARAGRAPH VI

0003AA PERIOD ONE 1,060 GL $_________________ $________________

01 APR 2009 – 31 MAR 2010

0003AB PERIOD TWO 530 GL

01 APR 2010 – 31 MAR 2011

0003AC PERIOD THREE 530 GL

01 APR 2011 – 31 MAR 2012

0003AD PERIOD FOUR 530 GL

01 APR 2012 – 31 MAR 2013

0003AE PERIOD FIVE 530 GL

01 APR 2013 – 31 DEC 2013

0003AF OPTION ONE 530 GL

01 JAN 2014 – 31 DEC 2014

0003AG OPTION TWO 530 GL

01 JAN 2015 – 31 DEC 2015

0003AH OPTION THREE 530 GL

01 JAN 2016 – 31 DEC 2016

0003AJ OPTION FOUR 530 GL

01 JAN 2017 – 31 DEC 2017

0003AK OPTION FIVE 530 GL

01 JAN 2018 – 31 DEC 2018

0004 PROPELLANT, ROCKET GRADE KEROSENE,

RP-2 GRADE, (BULK) IAW MIL-DTL-25576E,

DATED 14 APRIL 2006

IAW CLAUSE C900, STATEMENT OF

OBJECTIVES/WORK AND/OR SPECIFICATIONS

NSN: 9130-01-539-9895

0004AA PERIOD ONE 6,000 GL $_________________ $________________

01 APR 2009 – 31 MAR 2010

0004AB PERIOD TWO 6,000 GL

01 APR 2010 – 31 MAR 2011

0004AC PERIOD THREE 6,000 GL

01 APR 2011 – 31 MAR 2012

0004AD PERIOD FOUR 6,000 GL

01 APR 2012 – 31 MAR 2013

0004AE PERIOD FIVE 6,000 GL

01 APR 2013 - 31 DEC 2013

0004AF OPTION ONE 6,000 GL

01 JAN 2014 – 31 DEC 2014

0004AG OPTION TWO 6,000 GL

01 JAN 2015 – 31 DEC 2015

0004AH OPTION THREE 6,000 GL

01 JAN 2016 – 31 DEC 2016

0004AJ OPTION FOUR 6,000 GL

01 JAN 2017 – 31 DEC 2017

0004AK OPTION FIVE 6,000 GL

0005 PROPELLANT, ROCKET GRADE KEROSENE,

RP-2 GRADE, (DRUM) IAW MIL-DTL-25576E,

DATED 14 APRIL 2006

IAW CLAUSE C900, STATEMENT OF

OBJECTIVES/WORK AND/OR SPECIFICATIONS

NSN: 9130-01-522-9767

0005AA PERIOD ONE 1,060 GL $_________________ $________________

01 APR 2009 – 31 MAR 2010

0005AB PERIOD TWO 530 GL

01 APR 2010 – 31 MAR 2011

0005AC PERIOD THREE 530 GL

01 APR 2011 – 31 MAR 2012

0005AD PERIOD FOUR 530 GL

01 APR 2012 – 31 MAR 2013

0005AE PERIOD FIVE 530 GL

01 APR 2013 - 31 DEC 2013

0005AF OPTION ONE 530 GL

01 JAN 2014 – 31 DEC 2014

0005AG OPTION TWO 530 GL

01 JAN 2015 – 31 DEC 2015

0005AH OPTION THREE 530 GL

01 JAN 2016 – 31 DEC 2016

0005AJ OPTION FOUR 530 GL

01 JAN 2017 – 31 DEC 2017

0005AK OPTION FIVE 530 GL

0006 SERVICES, MONTHLY FACILITY FEE FOR

STORAGE AND DISTRIBUTION IN

SUPPORT OF PROPELLANT, ROCKET GRADE

KEROSENE, MIL-DTL-25576E DATED 14 APR 2006

IAW CLAUSE C900, STATEMENT OF

OBJECTIVES/WORK AND/OR SPECIFICATIONS,

PARAGRAPHS ENTITLED BULK LOAD-OUT AND

BULK RP-1 STORAGE

0006AA PERIOD ONE 12 MO $_________________ $________________

01 APR 2009 – 31 MAR 2010

0006AB PERIOD TWO 12 MO $_________________ $________________

01 APR 2010 – 31 MAR 2011

0006AC PERIOD THREE 12 MO $_________________ $________________

01 APR 2011 – 31 MAR 2012

0006AD PERIOD FOUR 12 MO $_________________ $________________

01 APR 2012 – 31 DEC 2013

0006AE PERIOD FIVE 12 MO $_________________ $________________

01 APR 2013 - 31 DEC 2013

0006AF OPTION ONE 12 MO $_________________ $________________

01 JAN 2014 – 31 DEC 2014

0006AG OPTION TWO 12 MO $_________________ $________________

01 JAN 2015 – 31 DEC 2015

0006AH OPTION THREE 12 MO $_________________ $________________

01 JAN 2016 – 31 DEC 2016

0006AJ OPTION FOUR 12 MO $_________________ $________________

01 JAN 2017 – 31 DEC 2017

0006AK OPTION FIVE 12 MO $_________________ $________________

01 JAN 2018 – 31 DEC 2018

ACRONYMS:

GL - Gallon NSP – Not Separately Priced MO – Month

NOTES:

REPORTING OF UNITS OF ISSUE SHALL BE IN WHOLE NUMBERS

ONLY.

CONVERSION - ONE GALLON OF RP-1 OR RP-2 EQUALS 6.73 POUNDS

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)

C19.04 REMOVAL OF WATER BOTTOMS (DESC FEB 1998)

Storage tanks for DESC use shall be equipped with positive water sumps for removal of all water bottoms. All storage tanks shall be drained of water a minimum of once each week and whenever storage tank gauging indicates water is present. (Weekly water drainage is necessary because the datum plate may not necessarily be the low point in the storage tank.

Water could possibly accumulate below the datum plate and not show up in the gauging process.) Additionally, all storage tanks shall be drained of water prior to any transfer of fuel and after a minimum of 4 hours or maximum of 24 hours settling time following each product receipt. Storage tanks equipped with floating roofs shall be gauged for water after each rain and drained if water is found present. Product and water levels shall be gauged before and after the draining of water. Water gauges of each storage tank shall be taken and recorded each time it is gauged for product. (Each storage tank shall be equipped with a fuel/water separation system for collection of all product or water dispensed from its bottom water drain(s). This system shall have the capability to return separated product back into the same storage tank.)

(DESC 52.211-9FM1)

C900 STATEMENT OF OBJECTIVES/WORK AND/OR SPECIFICATIONS (AEROSPACE ENERGY) (DESC APR 2006)

I. DESCRIPTION OF REQUIREMENT: The Defense Energy Support Center (DESC), Defense Logistics Agency (DLA), as the Department of Defense (DoD) Integrated Materiel Manager (IMM) for the Aerospace Energy Business Unit (BU) products and services, requires the production, storage and distribution of Propellant, Rocket Grade Kerosene (RP-1 and RP-2). Contractor shall provide all materials, supplies, management, tools, equipment and labor necessary for the production of RP-1 and RP-2 and all management, planning, programming, administration, supplies and labor necessary to ensure that product storage requirements, receipts, conveyance loading, quality surveillance, security, and safety services are performed for DLA in accordance with (IAW) standards outlined in this Statement of Objectives (SOO), as well as local, state and federal regulations.

DLA-owned RP-1 is utilized as a propellant for space launch vehicles and RP-2 is utilized for new engine development.

II. SPECIFICATION REQUIREMENTS:

A. RP-1 and RP-2 provided shall conform to Propellant, Rocket Grade Kerosene, MIL-DTL-25576E, dated 14 April 2006.

B. In addition to the reports required elsewhere within this contract, one copy of the Certificate of Analysis for each sample required by this contract shall be sent to DESC-QA/QT within three days after the analysis of that sample. The analysis report shall be emailed to tech.prop@dla.mil or faxed to the attention of DESC-QA/QT at (210) 925-8048.

III. DELIVERY LEAD TIMES:

A. RP-1 Bulk: Routine orders for bulk production will require the Contractor to deliver up to 28,000 U.S. gallons of RP- 1 within 28 calendar days. On occasion the Government may issue expedited orders requiring less than 20,000 gallons to be delivered in 21 days.

B. RP-2 Bulk: The Contractor shall have the capability to produce up to 6,000 U.S. gallons of RP-2 within 30 calendar days advance notification provided by the Government.

C. DRUM PRODUCTION (RP-2): Drummed RP-2 shall be made available for inspection by a Quality Assurance Representative (QAR) within 30 calendar days of order notification, unless a longer period is specified by the Government.

1. Drums shall be Contractor furnished and non-returnable.

2. The order quantity will be based on the economic order quantity proposed by the Contractor.

IV. RP-1 BULK STORAGE: The Contractor shall provide storage for bulk RP-1 as follows:

A. A minimum of 60,000 U.S. gallons of RP-1 bulk storage is required.

B. No individual storage tank capacity of less than 10,000 U.S. gallons.

C. The capability to transfer product between storage tanks is required.

D. The storage tank system shall be capable of meeting all technical requirements defined in the clause titled

CONTRACTOR INSPECTION AND QUALITY ASSURANCE RESPONSIBILITIES.

V. INSPECTION AND ACCEPTANCE: It is the responsibility of the contractor to deliver bulk RP-1 production into the storage facility and inspection and acceptance of bulk RP-1 will be accomplished at the tank. New RP-1 production may be introduced into tank(s) that are not empty and contains Government owned on-specification inventory. If a new RP-1 production batch is introduced to existing Government owned on-specification inventory and 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 was thrown off-specification when commingled with a new RP-1 production batch.

VI. DRUMMING SERVICE (RP-1): Contractor shall have the capability to fill drums of RP-1 out of DLA bulk RP-1 inventory.

Drum production shall be completed, and made available for inspection by a QAR within 30 calendar days of order notification, unless a longer period is specified by the Government.

A. Drums shall be Contractor furnished and non-returnable.

B. Drums shall be placed in storage.

VII. RP-1 and RP-2 Drum Storage:

A. Contractor shall provide an area to store up to 40 drums.

B. Contractor shall provide an area which is secure from the weather and accessible only by authorized personnel.

VIII. DEFENSE FUEL SUPPORT POINT: The Contractor’s storage site shall be designated as a Defense Fuel Support Point (DFSP) and shall require the documentation and submission of reports for accountability and control of DLA-owned RP-1 and RP-2 per the terms of the clause titled RESPONSIBILITY FOR GOVERNMENT-OWNED RP-1.

IX. LABORATORY SUPPORT (BULK RP-1 STORAGE)/ PRODUCT QUALITY SURVEILLANCE REQUIREMENTS: The Contractor shall provide laboratory services to perform analysis of RP-1 samples in accordance with the requirements of the clause titled CONTRACTOR INSPECTION AND QUALITY ASSURANCE RESPONSIBILITIES.. The Contractor is also responsible for providing sample containers, performing sampling, delivering samples to the laboratory, and issuing quality Certificate of Analysis. The Contractor will also be responsible for performing all sampling and laboratory testing of DLA-owned RP-1 stored and distributed from the Contractor’s storage facility in accordance with the quality requirements of the clause titled

CONTRACTOR INSPECTION AND QUALITY ASSURANCE RESPONSIBILITIES.

X. BULK RP-1 LOAD-OUTS: The Government will provide tank trucks and ISO containers from approved sources for load-out of bulk RP-1 from DLA-owned inventory.

A. The Government will schedule bulk load-outs at least 7 days in advance.

B. The Government requires access for load-outs, Monday through Friday, from 0700 to 1900 hours daily.

C. The Contractor shall have the capability to load-out at least 3 tank trucks or ISO containers per day, per stated access for load-outs.

1. This requirement includes the ability to sample, complete laboratory analysis and provide test reports to allow release for delivery of all loaded tank trucks and/or ISO containers within the access hours stated in this paragraph.

2. The Contractor shall be required to perform conveyance inspection and flushing prior to loading RP-1 per the clause titled CONTRACTOR INSPECTION AND QUALITY ASSURANCE RESPONSIBILITIES.

3. 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:

a) Point of Contact – Primary: ___________________________

b) Duty Phone: _________________________________________

c) Cell Phone: __________________________________________

d) Email: _______________________________________________

e) Point of Contact – Alternate: _________________________

f) Duty Phone: _________________________________________

g) Cell Phone: __________________________________________

h) Email: _______________________________________________

XI. DRUM LOAD-OUTS: The Government will provide at least 7 calendar days advance notification for RP-1 and RP-2 drum load-outs from inventory.

A. The Government requires access for carriers to pickup drums for shipment, Monday through Friday, from 0700 to 1900 hours daily.

B. Drums shall be palletized and secured (banded) for shipment.

XII. LOAD REPORT (BULK ONLY): A Load Report shall be prepared for each tank truck or ISO container loaded with RP-1 from DLA-owned inventory. See suggested sample format provided as attachment 1, “Load Report”.

A. The Contractor may use an existing company format, provided the following data items are included:

i. Name of Commodity: (use Propellant, Rocket Grade Kerosene, RP-1)

ii. Date: (the date the tank truck/ISO container is loaded)

iii. CBL #: (reference to Commercial Bill of Lading # for the shipment)

1. Carrier Truck #: (reference to commercial carrier truck number)

2. Tank Truck/ISO Container: (reference the loaded tank truck/ISO container #)

3. Storage Tank ID/#: (reference the storage tank(s) identification number from which the tank truck/ISO container is loaded)

4. Load-Out Time (Completed): (the time the carrier is released for delivery, and includes all documentation required; i.e., load report)

5. Quantity Loaded (GL): (whole numbers only)

6. Tank Truck/ISO Container, Seal #s: (record all seal numbers for verification at off-load site)

a) Weight (Gross, Tare, Net) LBS

b) Lab Analysis Test Results:

c) Storage Tank Temperature, oF

d) Gravity, API

e) Flash Point, oF

f) Particulate Matter, mg/L

g) Tank Gravity

B. Load report shall be distributed at time of shipment:

i. One copy goes with carrier,

ii. One copy to “RP-1 Manager”, Fax to (210)925-8048 or scan and email to Selvin.Rex@dla.mil

(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

E1.16.100 CONTRACTOR INSPECTION AND QUALITY ASSURANCE RESPONSIBILITIES (RP FUELS PRODUCTION)

(AEROSPACE ENERGY) (DESC SEP 2008)

(a) QUALITY CONTROL PLAN.

(1) The Contractor shall provide and maintain an inspection system and a written Quality Control Plan (QCP) acceptable to the Government. If the Contractor is ISO certified Q91 (ISO9001) Quality Management Systems, they have the option to offer their Q91 inspection system as their QCP, provided their Q91 written plan incorporates all the QCP elements identified in paragraph (3) below. The QCP shall be established and reviewed for adequacy by the Quality Representative (QR) prior to commencement of production or services.

(2) The Contractor shall require subcontractors (unless otherwise instructed by the Government) to provide and maintain inspection systems and QCPs that are acceptable to the Government.

(3) 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 supplies to be furnished under the contract:

(i) PROCESSING/BLENDING. To include, but not be limited to, identification of component base stocks used to produce finished product. Procedures to be used for adding, prior to batching, all required additives at all locations.

(ii) SAMPLING. Shall include procedures and frequencies for all sampling and testing that will be performed to meet the requirements listed in the below table titled Minimum Sampling and Testing Requirements.

(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.

(iv) STORAGE AND HANDLING. Include procedures for storage and handling to 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 and filtration.

(v) LOADING AND SHIPPING, GENERAL. Shall include, but not be limited to, procedures for product movement and related quality/quantity checks from shipping tank(s) to conveyances in order to maintain product integrity.

Systems with single valve (excluding twin seal single valves) isolation require specific procedures be included in the QCP to assure product integrity after the last single valve and prior to conveyance fill line.

(vi) CORRECTIVE ACTION. Shall include 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.).

(4) The QCP shall identify one individual to serve as a point of contact for quality/quantity matters relating to the inspection system described in the plan.

(5) The Contractor is responsible for all inspection systems, QCPs, and product quality and quantity.

(6) The Government QR will be available to review and discuss the Contractor's proposed QCP; however, the Contractor shall remain responsible for developing and describing acceptable quality control procedures.

(b) QUALITY ASSURANCE REQUIREMENTS.

(1) Sampling procedures shall be in accordance with API Manual of Petroleum Measurement Standards (MPMS), Chapter 8, Section 1, ASTM D 4057, Sampling of Petroleum and Petroleum Products, and/or Section 2, ASTM D 4177, Automatic Sampling of Petroleum and Petroleum Products.

(2) Contractor storage tanks that will be used for storing Government-owned RP fuels under this contract shall have last contained a similar product, aviation fuel, kerosene, non-aromatic solvent, unleaded gasoline or arctic diesel and shall be completely free of water, scale and previous product. Tanks must be equipped with valves that can be locked or sealed so that they can be locked or sealed when receiving or delivery operations are not in progress. Mild steel tanks used for storing RP fuels shall be epoxy coated with a material approved under specification MIL-PRF-4556. Tanks shall have the capability to be pumped dry.

(3) Systems used for loading and transferring this product shall be dedicated or properly isolated common systems incorporating blind flanges, spectacle plates, or double valves between them to prevent contamination. Single valves designed to provide the same protection are also acceptable if positive isolation is assured. Line systems used for receipt, transfer and filling of conveyances shall be constructed of stainless steel, aluminum or mild steel (if mild steel lines are used it is preferred they be internally epoxy coated, however, mild steel lines that are not lined with epoxy are acceptable). Lines will 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 RP-1 or RP-2. Valve bodies in RP fuel 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. Do not furnish or install cast iron or copper alloy valves in liquid petroleum service.

(4) The QR shall be notified of any corrective action taken to correct any deficiencies effecting product quality or quantity determination.

(5) The Contractor shall perform all specification and contract required inspection and acceptance tests of the supplies to be furnished under this contract or shall have such tests performed in a laboratory acceptable to the Government.

(6) The Contractor shall inspect all shipping conveyances used for distributing product to DESC customers prior to loading to determine suitability for loading as follows: RP fuels conveyances shall have last carried a product allowed in the below list and shall have evidence that the below referenced conveyance conditioning requirements have been met.

Conveyance discharge hose shall be clean and capped, and pump housing shall be clean and dry. All conveyance outlets will be capped. Regardless of the conditioning requirement, the Contractor shall inspect conveyance prior to loading to insure conveyances are visually free of all liquid, residue and sediment.

LAST PRODUCT

CARRIED*

CONVEYANCE

CONDITIONING

REQUIREMENTS

Gasolines:

MOGAS/E-85

AVGAS

Steam & Dry

Jet Fuels:

JP-4, Jet-B, Jet A/A-1, JP-8, JP-5, TS1

Jet Fuel:

JPTS (JP-7)

Drain Empty

RP-1 or RP-2 Drain Empty JP-10/PF-1 Steam & Dry Petroleum Solvents:

Xylene, Methyl Ethyl Ketone, Acetone, Benzene, Toluene, Cyclohexane, Methylcyclohexane, Petroleum Ether, Mineral or Petroleum Spirits, or Naphtha

Hot Water Rinse & Dry

Kerosene Steam & Dry Diesel Fuels:

F-76, DL1, DL2, LS1, LS2, DF1, DF2, DFW, Bio- Diesel

1-D, 2-D, FS1, FS2, B20

Lubricating Oils NO LOAD ASTM D975 No.4D, FS4, FS5, FS6, IFOs NO LOAD Sodium Hydroxide, Isopropanol, Methanol, Hot Water Rinse & Dry

Do not load conveyance if the last product carried is not included in the above list.

(i) The following inspection and flush shall be performed prior to loading tank trucks:

(A) Inspect truck prior to flushing. Verify 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. Inspect all transfer equipment (pump and hose) for visual cleanliness as well.

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

(C) Flush tank truck by pumping approximately 30 gallons of RP fuel into the…