SP0600-09-R-0518 RFP.pdf

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS

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

1. REQUISITION NUMBER PAGE 1 OF

2. CONTRACT NO. 3. AWARD/EFFECTIVE

DATE

4. ORDER NUMBER 5. SOLICITATION NUMBER 6. SOLICITATION ISSUE

DATE

7. FOR SOLICITATION

INFORMATION CALL:

a. NAME b. TELEPHONE NUMBER (No collect calls)

8. OFFER DUE DATE/

LOCAL TIME

9. ISSUED BY

13b. RATING

14. METHOD OF SOLICITATION

CODE

15. DELIVER TO 16. ADMINISTERED BY CODE

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

OFFEROR

CODE

FACILITY

CODE

CODE

TELEPHONE NO.

17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH ADDRESS IN

OFFER

18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS BLOCK

BELOW IS CHECKED

RFQ IFB RFP

SEE ADDENDUM

19.

ITEM NO.

20.

SCHEDULE OF SUPPLIES/SERVICES

21.

QUANTITY

22.

UNIT

23.

UNIT PRICE

24.

AMOUNT

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

25. ACCOUNTING AND APPROPRIATION DATA 26. TOTAL AWARD AMOUNT (For Govt. Use Only)

28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN

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

ADDITIONAL SHEETS SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED

29. AWARD OF CONTRACT: REF.

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

30b. NAME AND TITLE OF SIGNER (Type or print) 30c. DATE SIGNED

31a. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER)

31b. NAME OF CONTRACTING OFFICER (Type or print) 31c. DATE SIGNED

AUTHORIZED FOR LOCAL REPRODUCTION

PREVIOUS EDITION IS NOT USABLE

STANDARD FORM 1449 (REV. 3/2005)

Prescribed by GSA - FAR (48 CFR) 53.212

10. THIS ACQUISITON IS

UNRESTRICTED OR

NAICS:

SIZE STANDARD:

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND

OFFER

13a. THIS CONTRACT IS A

RATED ORDER UNDER

DPAS (15 CFR 700)

SET ASIDE: % FOR:

SMALL BUSINESS

HUBZONE SMALL

BUSINESS

SERVICE-DISABLED VETERAN-

OWNED SMALL BUSINESS

EMERGING SMALL

BUSINESS

8(A)

11. DELIVERY FOR FOB DESTINA-

TION UNLESS BLOCK IS

MARKED

SEE SCHEDULE

12. DISCOUNT TERMS

ARE ARE NOT ATTACHED

ARE ARE NOT ATTACHED

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

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

STANDARD FORM 1449 (REV. 3/2005) BACK

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:

41a. I CERTIFY THIS ACCOUNT IS CORRECT AND PROPER FOR PAYMENT

32b. SIGNATURE OF AUTHORIZED GOVERNMENT

REPRESENTATIVE

32c. DATE

41b. SIGNATURE AND TITLE OF CERTIFYING OFFICER 41c. DATE

42a. RECEIVED BY (Print)

42b. RECEIVED AT (Location)

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

40. PAID BY

32d. PRINTED NAME AND TITLE OF AUTHORIZED GOVERNMENT

REPRESENTATIVE

32e. MAILING ADDRESS OF AUTHORIZED GOVERNMENT REPRESENTATIVE 32f. TELPHONE NUMBER OF AUTHORZED GOVERNMENT REPRESENTATIVE

32g. E-MAIL OF AUTHORIZED GOVERNMENT REPRESENTATIVE

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

CORRECT FOR

PARTIAL FINAL

37. CHECK NUMBER

38. S/R ACCOUNT NO. 39. S/R VOUCHER NUMBER

36. PAYMENT

COMPLETE PARTIAL FINAL

SP0600-09-R-0518

75,000 BBLS of JPTS

Houston, TX

SECTION B – SUPPLIES/SERVICES AND PRICE/COST

B34.01 SERVICES TO BE FURNISHED AND PRICES (DESC FEB 1991)

The services to be furnished during the period specified herein and the unit prices are as follows:

CONTRACT LINE ITEM 1001 (MUCC):

The services and facilities to be provided during the performance of this contract and the prices are as follows:

Performance Period: 1 January 2010 through 31 December 2014.

Use Charge per Tank per Month (Prorated for part SHELL FILL months) includes initial CAPACITY CAPACITY fill and final shipment

TANK NO. TYPE BARRELS BARRELS PRICE

CONTRACT LINE ITEM 1001AA (EXTP):

For the first 48,000 barrels of product received after initial fill, per year of prorated for part thereof for any part year that the use of the storage is limited to a period of less than one year………………………………………………NO ADDITIONAL CHARGE (Included in Tankage charge)

CONTRACT LINE ITEM 1001AB: For the first 48,000 barrels of product loaded and shipped from storage prior to final shipment, per year or prorated for part thereof for any part year that the use of the storage is limited to a period of less than one year………………………………………………NO ADDITIONAL CHARGE (Included in Tankage charge)

CONTRACT LINE ITEM 1002 (EXTP):

Excess Throughput: In excess of 48,000 barrels of throughput per year (or prorated part thereof for any partial year), the Contractor will be reimbursed $__________ (for the entire contract period) per barrel. Throughput is defined as receipts plus issues divided by two. (2)

CONTRACT LINE ITEM 1003 (LABS):

In accordance with clause C19.07 the Government shall reimburse the Contractor for the actual costs of the tests by a commercial laboratory.

All other associated costs are to be included in the monthly use charge costs.

CONTRACT SUBLINE ITEM 1004AA (TRANS):

Transportation Cost:

The Government shall reimburse the Contractor per Tank Trucks/Iso Containers per month for services associated with unloading/loading tank trucks/Iso container during regular time ___________ (multi-year) or ___________ (multi-year) during overtime. Unloading per Tank Truck/Iso Container during regular time ___________ (multi-year) or ____________ (multi-year) during overtime. Services other than normal working hours shall be ordered for this subline item in accordance with Clause I16.01 and Clause G148.05. Invoices for reimbursement shall be submitted to the QAR for certification and include supporting documentation. No fee or administrative charge shall be included.

CONTRACT LINE ITEM 1004AB (TRANS):

Transportation Cost:

The Government shall reimburse the Contractor in the amount of _____________ (multi-year) per ship for services associated with loading ship(s) with government-owned product. Invoices for reimbursement shall be submitted to the QAR for certification and include supporting documentation. No fee or administrative charge shall be added.

CONTRACT LINE ITEM 1004AC (TRANS):

Transportation Cost:

The Government shall reimburse the Contractor in the amount of ____________ (multi-year) per barge for services associated with loading barges with government-owned product. Invoices for reimbursement shall be submitted to the QAR for certification and include supporting documentation. No fee or administrative charge shall be added.

CONTRACT LINE ITEM 1004AD (TRANS):

Transportation Cost:

The Government shall reimburse the Contractor per Rail Car per month for services associated with unloading/loading rail cars with government-owned product. Services and Cost are as follows: Loading per rail car, _______________ (multi-year) or Unloading per rail car, _____________ (multi-year). Invoices for reimbursement shall be submitted to the QAR for certification and include supporting documentation. No fee or administrative charge shall be added.

CONTRACT SUBLINE ITEM 1005

The Government shall reimburse the Contractor for the cost of replacement and disposal of used filters. The Contractor shall be responsible for furnishing and providing at the Contractor’s expense all maintenance requirements of the filtration system. The Contractor will submit invoices to the QAR for certification, for replacement and disposal costs only. No fee or administrative charge shall be added.

SECTION C – DESCRIPTION/SPECIFICATIONS

C-1 Description of Services C-1.1 Aviation Fuel Storage Services C-1.2 Receiving Requirements C-1.3 Shipping Requirements C-1.4 Inventory Control and Reporting C-1.5 Product Quality Surveillance

C-1 Description of Services: The following terms and conditions are applicable to obtain the necessary services and facilities to receive and store one grade of government-owned petroleum product, Jet Petroleum Thermally Stable (JPTS) aviation turbine fuel, in the Houston, Texas area, beginning 1 January 2010 for a multi-year (five-year) contract. The contractor is also required to load the product for transportation via ocean tanker, rail car, tank trucks, and inter-modal containers.

Terms and conditions applicable to the requirement are as follows:

C-1.1 Aviation Fuel Storage Services:

C-1.1.1 Tankage Required: Approximately 75,000 barrels of storage capacity with a minimum of two tanks interconnected and isolated from other facilities and products handled within the tank farm. Clause L116.01, Data Required, must be submitted.

C-1.1.2 Estimated Throughput: 48,000 barrels for each 12-month contract period. Throughput is computed as follows:

receipts plus issues, divided by two. The estimated throughput quantity does not include the initial fill of the terminal.

C-1.1.3 Grade of Product: Thermally stable aviation turbine fuel (JPTS) per MIL-DTL-25524E.

C-1.1.4 Storage Tanks and Facilities: All tanks and facilities must meet the minimum requirement of the current API standards, the NFPA codes, and all laws, regulations, etc., applicable to tanks and facilities of the type to be provided. Cone-roof tanks with interior floating roof pans are preferred. Floating roof tanks will be equipped with roof drains that prevent water from coming into contact with the fuel. The tanks shall be connected so as to provide the capability of re-circulating/filtering of products between tanks.

C-1.1.4.1 Tank receiving and delivery lines shall be in dedicated JPTS service. Provisions shall be available for displacing common loading/unloading lines to a tank other than JPTS storage tanks.

C-1.1.4.2 All seals and gaskets used in JPTS storage system components shall be made of vitron, Teflon or nitro. Seals and gaskets made of brass, neoprene or bronze materials shall not be used.

C-1.1.4.3 UNSATISFACTORY MATERIALS: The following materials are unsatisfactory for use in JPTS systems:

Copper Zinc Silver Mild steel, uncoated Magnesium Bronze Brass Cast Iron Tin

C-1.1.5 Filtration: Contractor furnished filter separator meeting the requirements of API Bulletin 1581, Group II, Class B to allow for filtration during loading operations and tank-to-tank transfers. The government shall reimburse the contractor for the cost of the replacement of filter elements, and disposal of the used filter elements.

C-1.2 Receiving Requirements: The contractor will be required to receive government-owned product via the following government-furnished conveyances:

C-1.2.1 Via government furnished tank trucks on an 8 hour per day (6:00 a.m. to 3:00 p.m.), Monday through Friday basis (Saturday, Sunday and federal holidays as stipulated in the wage grade determination excepted), and in excess of those hours on an overtime basis.

C-1.2.2 Via government-furnished rail cars (Union Pacific) on an 8 hour per day (6:00 a.m. to 3:00 p.m.), Monday through Friday basis (federal holidays as stipulated in the wage grade determination excepted), and in excess of those hours on an overtime basis.

C-1.3 Shipping Requirements: The contractor will be required to ship government-owned product via the following government-furnished conveyances:

C-1.3.1 Via government-furnished tank trucks on an 8 hour per day (6:00 a.m. to 3:00 p.m.), Monday through Friday basis (Saturday, Sunday and federal holidays as stipulated in the wage grade determination excepted), and in excess of those hours on an overtime basis.

C-1.3.1.1 Transport truck loading facilities must be capable of spotting and loading two trucks simultaneously.

C-1.3.1.2 The truck loading facilities shall be of the type capable of providing bottom loading that is in compliance with federal, state, and local environmental laws/regulations for the type of product being loaded.

C-1.3.1.3 At a minimum, the transport truck loading facilities shall be equipped with a temperature compensating meter capable of accurately measuring in whole gallons the volume of product being loaded.

C-1.3.1.4 The loading of government-furnished transport trucks shall not be in competition with the contractor’s other terminal operations.

C-1.3.1.5 Each truck loading rack will have an in-line fuel sampling connection downstream of the filter separators for taking samples.

C-1.3.1.6 The truck loading rack shall have relaxation or piping configuration with sufficient capacity to retain maximum flow rate of the loading station for 30 seconds from the time the fuel leaves the filter separator to reaching loading nozzle.

C-1.3.2 Via government-furnished rail cars on an 8 hour per day (6:00 a.m. to 3:00 p.m.), Monday through Friday basis (Saturday, Sunday and federal holidays as stipulated in the wage grade determination excepted), and in excess of those hours on an overtime basis.

C-1.3.3 Via government-furnished ocean tankers, on a 24-hour per day, 7-day a week basis.

C-1.3.3.1 Dock and Berthing Facility: Dock and berthing facilities capable of receiving and berthing vessels of a minimum of 38,000 dead weight ton (DWT). The dock/pier will, as a minimum, berth vessels of 280 ft LOA, 60 ft WOA and 15 ft maximum loaded draft. The fuel loading lines from the dock through the manifold to the tanks shall be capable of receiving at a rate of at least 2,000 barrels per hour.

C-1.3.3.2 Lines used for loading/unloading marine conveyances shall be equipped with inline sampling points that enable line samples to be taken under flow conditions.

C-1.3.4 Via government-furnished inter-modal containers on an 8 hour per day (6:00 a.m. to 3:00p.m.), Monday through Friday basis (Saturday, Sunday and federal holidays as stipulated in the wage grade determination excepted), and in excess of those hours on an overtime basis.

C-1.4 Inventory Control and Reporting:

C-1.4.1 Fuels Manager Defense (FMD) Express: The contractor shall input inventory data of government-owned product directly into the government’s fuel accounting system through the web-based application FMD Express. The contractor will be required to obtain a user identification and password to access the FMD Express web site. A security background check will be required for all contractor personnel assigned a user identification and password. User instructions and access information is provided on the web site. Reference Clause I119.04 for additional information regarding the government’s inventory data requirements.

C-1.4.2 PORTS: The Contractor will also be required to report product delivery and receipt information via the Paperless Ordering and Receipt Transaction Screen (PORTS). The contractor will be required to obtain a user identification and password to access PORTS. A security background check will be required for all contractor personnel assigned a user identification and password.

C-1.5 Product Quality Surveillance: The contractor will be responsible for maintaining the quality of the government owned product delivered to the contractor in accordance with appendix (A). Contractor personnel shall pull samples as required and in accordance with requirements identified in appendix (B). All samples shall be taken in accordance with the Manual of Petroleum Measurement Standards (MPMS), Chapter 8, Section 1, Sampling of Petroleum and Petroleum Products, and/or Section 2, Automatic Sampling of Petroleum and Petroleum Products. The contractor may perform sample analysis on site, or at their own cost the contractor may procure off site lab services. Appendix B requires occasional samples to be analyzed in a U.S. Government fuels laboratory. When submitting samples to a U.S. Government fuels laboratory, the contractor shall be responsible for taking the samples, packaging and shipping them. Samples submitted to a U.S. Government laboratory for analysis shall be collected in two, one gallon UN1A1 epoxy coated fuel sample containers that are prepared in accordance with ASTM D4306. The contractor shall submit samples to the U.S. Government laboratory designated by the Quality Assurance Representative (QAR).

C-1.5.1 The contractor shall ensure samples are tagged properly and include the following information: DESC storage contract number; type testing required; sample submitter contact information; sample source; fuel grade type; quantity of fuel sample represents and submitter address/fax number for sample result distribution.

C-1.5.2 A DESC Quality Assurance Representative (QAR) will perform on-site quality surveillance and property administration oversight, the contractor will ensure that the DESC QAR’s have entry into the facilities at anytime to conduct testing, inspection or sampling.

C-1.5.3 The contractor will report immediately to the QAR and/or DESC any DoD fuel receipts or on hand stocks that fail to meet product quality for receipt, storage or issue per the requirements of appendix (A). Suspected off-specification fuel will be isolated and not released for issue until authorized by DESC via its QAR. A copy of all quality certificates will be sent via email or fax to DESC by the contractor.

C19.01 SECURITY AND FIRE PROTECTION (DESC AUG 1988)

(a) The entire facility shall be enclosed by a fence suitable to deter unauthorized access. The fence shall be fitted with gates that may be padlocked when not in use.

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

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

(d) A water supply and fire fighting equipment conforming to National Fire Protection Association and American Petroleum Institute standards will be maintained. At locations outside the United States, other standards may be used with prior approval of the Contracting Officer.

(e) In the event of an emergency at a CONUS COCO terminal, the Contractor shall seek the assistance of the following as appropriate: local ambulance service; local fire department; local, county, and State police; regional office of the Federal Bureau of Investigation; Secret Service; U.S. Marshal's Service; and the Federal Emergency Management Agency.

(DESC 52.211-9FL1)

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)

C19.07 SAMPLING AND TESTING OF PETROLEUM PRODUCTS (STORAGE) (DESC OCT 2001)

(a) SAMPLING. The samples identified in the solicitation attachment entitled MINIMUM REQUIREMENTS FOR STORAGE SAMPLING AND TESTING are a required part of the services to be provided. The Contractor must provide these samples using qualified personnel, facilities, and equipment on-site and shall include all associated costs in the monthly service charge. These on-site resources may be provided by Contractor personnel or by a commercial source acting on behalf of the Contractor. The Quality Representative will not be responsible for taking any samples for the Contractor. All samples must be taken in accordance with ASTM D 4057, Standard Practice for Manual Sampling of Petroleum and Petroleum Products (API Manual of Petroleum Measurement Standards (MPMS), Chapter 8.1).

(b) TESTING. The tests identified in this solicitation attachment entitled MINIMUM REQUIREMENTS FOR STORAGE SAMPLING AND TESTING are a required part of the services to be provided. Those tests identified in the attachment which are part of a higher order analysis (defined as follows: Composite Samples, Storage Tanks After Receipt, Interface Mixture, Dormant Stocks, and Individual Tests, including particulate contamination) shall be provided by the Contractor using one of the following options (the Contractor shall check the appropriate box below):

[ ] The Contractor will perform the tests using its own qualified personnel, facilities, and equipment. (All costs for this service are to be included in the monthly service charge.)

[ ] The Contractor will not perform the tests using its own personnel, but will provide on a seven days per week, 24 hours a day basis, it’s own facilities and equipment for testing of product by Government personnel. (All costs for this service are to be included in the monthly service charge.)

[ ] The Contractor will not provide its own personnel, facilities, or equipment. Instead, the Contractor will, within 24 hours after sampling, transport any sample(s) to a commercial laboratory approved by the Government and arrange for that commercial laboratory to perform all the required tests. The Government, at its own option, may direct that samples be tested at a Government laboratory under contract to the Government. In this case, transport of such samples is still the responsibility of the Contractor. (The Government will reimburse the Contractor for the actual costs of the tests performed by their commercial laboratory. All other associated costs must be included in the monthly service charge.)

All other tests found in the above referenced attachment, which are not part of a higher order analysis, shall be provided in accordance with the CONTRACTOR INSPECTION RESPONSIBILITIES (STORAGE) clause.

(c) All facilities and equipment to be provided, whether that of a Contractor or a commercial laboratory, must conform to the standards for such facilities and equipment established by the Occupational Safety and Health Act and the National Fire Protection Association or local regulations, whichever is more stringent.

(DESC 52.211-9FL5)

SECTION E – INSPECTION AND ACCEPTANCE

E1.01 CONTRACTOR RESPONSIBILITY FOR GOVERNMENT INSPECTION OF SERVICES (DESC AUG 1981) If any inspection or test is made by the Government on the premises of the Contractor or subcontractor, the Contractor without additional charge shall provide all reasonable facilities and assistance for the safety and convenience of the Government inspectors in the performance of their duties.

(DESC 52.246-9FE5)

E1.11 QUALITY CONTROL PLAN (DESC MAR 2000)

(a) Upon award, the Contractor shall prepare, in triplicate and in English, a Quality Control Plan (QCP). Prior to the first receipt of Government-owned product into the facility, two copies of the QCP shall be forwarded to the Contracting Officer and one copy to the assigned Quality Assurance Representative for approval.

(b) The QCP shall include the following quality control procedures employed by the Contractor.

(1) Receiving (both product and additives);

(2) Blending;

(3) Sampling;

(4) Testing;

(5) Storage and handling;

(6) Loading and shipping;

(7) Calibration program for testing and measuring equipment in accordance with ISO 10012-1, "Quality Assurance Requirements for Measuring Equipment, Part I." Equivalent local regulation, as appropriate, may be used as well. Whichever program used must include a section addressing meter proving (used to determine quantity) and must comply with the American Petroleum Institute Manual of Petroleum Measurement Standards, Chapters 4, 5, and 6, or equivalent foreign standard. For any item that requires calibration but is not covered by ASTM, API, or IP publications, the applicable manufacturer's recommended calibration method(s) outlined in the applicable industry publication shall be used if acceptable to the Government;

(8) Quantity measurement;

(9) Records and reports; and

(10) Corrective action procedures (to include, but not be limited to, procedures for notification of Quality Representative, actions to be taken on discovery of off-spec product during receipts/shipments, upgrading procedures for Contractor-caused contamination, leaks, etc.). The QCP shall also include an organizational chart of key personnel and their responsibilities and a schematic diagram of the facility with key inspection/activity points marked for each product handled.

(c) The QCP shall require that each Contractor employee be familiar with its content and shall state that it must be reviewed semiannually and revised as needed. Revision should occur when any change is made to the inspection system, when any corrective action needs to be incorporated due to quality problems, and as otherwise necessary. The Contractor shall sign and date each revision of the QCP.

(DESC 52.246-9F32)

E5.03 INSPECTION OF SERVICES - FIXED-PRICE (AUG 1996)

(a) DEFINITION. Services, as used in this clause, includes services performed, workmanship, and material furnished or utilized in the performance of services.

(b) The Contractor shall provide and maintain an inspection system acceptable to the Government covering the services under this contract. Complete records of all inspection work performed by the Contractor shall be maintained and made available to the Government during contract performance and for as long afterwards as the contract requires.

(c) The Government has the right to inspect and test all services called for by the contract, to the extent practicable, at all times and places during the term of the contract. The Government shall perform inspections and tests in a manner that will not unduly delay the work.

(d) If the Government performs inspections or tests on the premises of the Contractor or a subcontractor, the Contractor shall furnish, and shall require subcontractors to furnish, at no increase in contract price, all reasonable facilities and assistance for the safe and convenient performance of these duties.

(e) If any of the services do not conform with contract requirements, the Government may require the Contractor to perform the services again in conformity with contract requirements, at no increase in contract amount. When the defects in services cannot be corrected by reperformance, the Government may (1) require the Contractor to take necessary action to ensure that future performance conforms to contract requirements and (2) reduce the contract price to reflect the reduced value of the services performed.

(f) If the Contractor fails to promptly perform the services again or to take the necessary action to ensure future performance in conformity with contract requirements, the Government may (1) by contract or otherwise, perform the services and charge to the Contractor any cost incurred by the Government that is directly related to the performance of such service or (2) terminate the contract for default.

(FAR 52.246-4)

E18 INSPECTION AND CLEANING OF BULK PETROLEUM STORAGE TANKS (DESC NOV 2003)

(a) The Contractor shall maintain and make available upon request the following historical data relative to each storage tank provided:

(1) Date and type of construction;

(2) Name of installing contractor;

(3) Product service (past and present) and dates;

(4) Date of last cleaning/physical entry inspection and contractor's name;

(5) Structural condition based on cycle inspection at the time of cleaning or repair;

(6) Record or tank repairs;

(7) Tank dimensions and capacity;

(8) Inspection and tank cleaning frequency (date of next mandatory inspection, when tank out of service, required);

(9) Tank coating history;

(10) Tank strapping charts;

(11) As built drawings (if available); and

(12) Records of product tests and trends.

(b) At the Contractor's expense, the Contractor shall empty, inspect, and clean each bulk petroleum storage tank and dispose of all tank bottom waste for each tank furnished under this contract at the following intervals. When tank cleaning does take place, the Contractor, at his own expense, shall be responsible for providing alternate tankage and transferring the remaining product to that tankage.

Such tankage shall be suitable for storing the transferred product and shall be of equal or greater capacity than the tankage being cleaned.

Any proposed reduction in the storage capacity cited in the contract must be approved by the Contracting Officer in advance.

(1) AVIATION FUEL STORAGE TANKS.

(i) Every 4 years for uncoated storage tanks without an inlet-filter separator;

(ii) Every 6 years for either a coated tank without an inlet filter separator, or for an uncoated tank with an inlet-filter separator; and

(iii) Every 8 years for coated tanks with an inlet-filter separator.

(iv) For storage tanks with direct receipt of fuel from barge or tanker, the frequency for physical entry inspection and cleaning will be 3, 5, and 8 years for (i), (ii), and (iii) above, respectively.

(v) Tanks will be emptied, cleaned, and inspected more frequently than the periods stated in (i) through (iv) above when sample analysis indicates a build up of sediment in the tanks.

(2) GROUND AND MARINE FUEL STORAGE TANKS. Tanks will be emptied, cleaned, and inspected when sample analysis indicates a build up of sediment in the storage tanks.

(c) The time for cleaning will be measured from the date of the last cleaning regardless of whether the tank was under contract with DESC at the time of the last cleaning.

(d) Samples will be taken and tested at Government expense. If tank cleaning is required earlier than the criteria listed in (b)(1) above and the Government is shown to be at fault, then the Government will be responsible for cleaning, sampling, and testing costs.

In all other cases, tanks requiring cleaning will be removed from revenue and cleaned at the Contractor's expense.

(e) At the time of offer submission, the offeror shall provide the Contracting Officer with a listing of all tank inspections and cleanings, and other activities that would take a tank out of service, which are anticipated to occur during the contract period (see chart below). This listing shall include the tank number, location, reason for being out of service, dates the tank will be out of service and provisions that have been made to replace the tankage while it is out of service. Updates to the listing shall be sent to the Contracting Officer as soon as a change is known.

Tank Number Location Reason Dates Replacement Tankage

(DESC 52.246-9FF1)

E22 LIST OF INSPECTION OFFICES FOR DESC CONTRACTS (DESC JAN 2009)

The following lists shall be used to identify the Government inspection office assigned inspection responsibility for DESC contracts in a particular geographic area. These contracts include, but are not limited to, those for bulk petroleum products and additives, into-plane refueling, petroleum storage and laboratory services, coal, aerospace energy (including compressed gases), and posts, camps, and stations. The area of inspection responsibility and corresponding office code are assigned in paragraphs (a) and (b). The address and phone number of each inspection office by office code is provided in paragraph (c). Unless a particular inspection office is identified in another part of the contract, the assignments in this clause shall apply.

(a) AREAS OF RESPONSIBILITY AND OFFICE CODES WITHIN THE CONTINENTAL UNITED STATES

(CONUS):

Alabama 110 Maine 110 Oklahoma 110 Arizona 120 Maryland 110 Oregon 120 Arkansas 110 Massachusetts 110 Pennsylvania 110 California 120 Michigan 110 Rhode Island 110 Colorado 120 Minnesota 110 South Carolina 110 Connecticut 110 Mississippi 110 South Dakota 110 Delaware 110 Missouri 110 Tennessee 110 District of Columbia 110 Montana 120 Texas 110 Florida 110 Nebraska 110 Utah 120 Georgia 110 Nevada 120 Vermont 110 Idaho 120 New Hampshire 110 Virginia 110 Illinois 110 New Jersey 110 Washington 120 Indiana 110 New Mexico 120 West Virginia 110 Iowa 110 New York 110 Wisconsin 110 Kansas 110 North Carolina 110 Wyoming 120 Kentucky 110 North Dakota 110 Louisiana 110 Ohio 110

EXCEPTIONS:

(1) The El Paso, Texas, area is assigned to Code 120 (DESC Americas – West).

(2) The Newcastle, Wyoming, area is assigned to Code 110 (DESC Americas – East).

(b) AREAS OF RESPONSIBILITY AND OFFICE CODES OUTSIDE THE CONTINENTAL UNITED STATES

(OCONUS) (INCLUDING ALASKA AND HAWAII):

Afghanistan 400 Cyprus 200 Malaysia 300 Singapore 300 Africa 2001 Egypt 4001 Maldives 300 South America 110 Alaska 300 Europe (Continental) 200 Malta 200 South Korea 300 Antarctica 300 Georgia 200 Mauritius 200 Sri Lanka 300 Armenia 200 Greenland 200 Mexico 110 Syria 400 Ascension Island 110 Hawaiian Islands 300 Midway Island 300 Taiwan 300 Australia 300 Hong Kong 300 Mongolia 300 Tajikistan 400 Azerbaijan 200 Iceland 200 Myanmar 300 Thailand 300 Azores 200 India 300 Nepal 300 Turkey 200 Bahrain 400 Indonesia 300 New Zealand 300 Turkmenistan 400 Bangladesh 300 Ireland 200 North Korea 300 United Arab Bermuda 110 Iran 400 Oman 400 Emirates 400 Bhutan 300 Iraq 400 Pacific Islands United Kingdom 200

Brunei 300 Israel 200 (Central & South) 300 Uzbekistan 400 Cambodia 300 Japan 300 Pakistan 400 Vietnam 300 Canada 110/1202 Jordan 400 Papua New Guinea 300 Wake Island 300 Canary Island 200 Kazakhstan 400 Philippines 300 Yemen 400 Caribbean Islands 110 Kuwait 400 Qatar 400 Central America 110 Kyrgyzstan 400 Russia 200 Chagos Archipelago 300 Laos 300 Ryukus Islands, Japan 300 China 300 Lebanon 400 Saudi Arabia 400 Comoros 200 Madagascar 200 Seychelles Is. 420

[1] Except for Egypt, which is assigned to DESC Middle East (Code 400), all other countries in Africa fall under DESC Europe (Code 200).

[2] The provinces of Manitoba, Ontario, Quebec, Newfoundland and Labrador, New Brunswick, Nova Scotia, and Prince Edward Island are assigned to DESC Americas East (Code 110). The rest of Canada falls under DESC Americas West (Code 120).

(c) INSPECTION OFFICES AND CODES.

110. DESC Americas East 3 ATTN: Quality Manager Federal Building, Room 1005 2320 LaBranch Street Houston, TX 77004-1091 Phone: (713) 718-3883, ext. 162/161/160

FAX: (713) 718-3891

120. DESC Americas West 3 ATTN: Quality Manager 3171 N Gaffey Street San Pedro, CA 90731-1099 Phone: (310) 241-2806/2807

FAX: (310) 241-2836

200. DESC Europe 3 Mailing Address:

DESC Petroleum Lab ATTN: Quality Manager

CMR 422

APO AE 09067-0422

[Location: Kaiserslautern, Germany] Phone: 49-631-3406-2285/2286 4

FAX: 49-631-3406-2289 4

Shipping Address:

DESC Petroleum Lab ATTN: Quality Manager Rhine Ordinance Barracks , Bldg 320 Am Opelkreisel 67663 Kaiserslautern, Germany

300. DESC Pacific 3

1025 Quincy Avenue, Building 479, Suite 2000 Pearl Harbor, HI 96860-4512 Phone: (808) 473-4307/4287

FAX: (808) 473-4232

400. DESC Middle East 3

PSC 451, Box DESC-ME

FPO AP 09834-2800

[Location: Juffair, Bahrain] Phone: 973-17-85-4658/4665 4

FAX: 973-17-85-4670 4

[3] Designated location of the DESC Regional Quality Manager/Pre-Award Survey Monitor.

[4] Dial 011 before these numbers when calling from the U.S. When calling these numbers from outside the U.S., use the appropriate international long distance prefix for the country where the call originates.

(DESC 52.246-9F40)

E28 CONTRACTOR INSPECTION RESPONSIBILITIES (STORAGE) (DESC OCT 2002)

(a) Inspection and tests by the Government of services, facilities, and equipment specified within this contract does not relieve the Contractor from responsibility to meet all requirements of the contract.

(b) The Contractor shall furnish personnel, facilities, and equipment on-site to accomplish the following routine tests and procedures. These on-site resources may be provided by Contractor personnel or by a commercial source action on behalf of the Contractor.

The Quality Representative will not be responsible for performing any of these services for the Contractor.

(1) Sampling of storage tanks, shipments and receipts in accordance with ASTM D 4057, Standard Practice for Manual Sampling of Petroleum and Petroleum Products (API Manual of Petroleum Measurement Standards (MPMS), Chapter 8.1);

(2) Retaining of product composite samples from shipments and receipts as follows:

MINIMUM

METHOD OF SHIPMENT MINIMUM QUANTITY RETENTION PERIOD

Pipeline 20 liters 60 days

Tanker/Barge Parcel Composite 20 liters 90 days Each compartment 0.5 liters 90 days

Navy Fleet Oilers/Vessels 10 liters 60 days

Tank Truck/Car 1 liter 15 days

NOTE: After the minimum retention period, samples shall be tested for Appearance, Color (Visual), API Gravity/Density and Flash Point and, if found to be on-specification, shall be returned to like Government stock on-site. Sample containers may be reused if properly cleaned.

(3) Determining the presence of water in storage tanks, shipments and receipts. Ensure that accurate water cuts are obtained by means of a water indicating paste conforming to MIL-W-83779B. Two suggested sources are Stewart Hall Chemical Testmaster Water Indicating Paste or Sartomer Sar Gel Water Indicating Paste (see Note 2 below);

(4) Determining Density at 15 degrees Celsius or API gravity of products by ASTM D 1298 or ASTM D 4052 (see Note 2 below);

(5) Determining the temperature of products by the API MPMS, Chapter 7 (see Note 2 below);

(6) Determining the Appearance of applicable products using ASTM D 4176, Procedure 1 (see Note 2 below);

(7) Determining the visual color of products.

(8) Determining the Flash Point of applicable products using test methods cited in the appropriate product specification (see Note 2 below);

(9) Conversion of gross to net gallonage (liters);

(10) Determining the percentage (volume) of fuel system icing inhibitor (FSII) by means of a portable refractometer in accordance with ASTM D 5006. One suggested source is H.B. Industries, Inc., Glenview, IL 60025 (B/2 Anti-Icing Additive test kit) (see Note 2 below); and

(11) Determining the range of fuel electrical conductivity using ASTM D 2624. One suggested source for a conductivity meter is Emcee Electronics, Inc., Sarasota, FL 33581 (Model 1152) (see Note 2 below).

Note 1: All costs for providing the above tests and procedures shall be included in the monthly service charge. The only exception to the Contractor’s obligation to provide these services as part of the monthly service charge is when the tests described above are part of the higher order analysis (defined as the following categories: Composite Samples, Storage Tanks After Receipt, Interface Mixtures, Dormant Stocks and Individual Tests (including particulate contamination) found in the attachment to the solicitations entitled MINIMUM REQUIREMENTS FOR STORAGE SAMPLING AND TESTING. Provisions for providing higher order analyses are covered in the SAMPLING AND TESTING OF PETROLEUM PRODUCTS (STORAGE) clause.

Note 2: Upon request, the Contractor shall permit the Quality Representative unrestricted use of the equipment and ancillary supplies needed to perform this test/procedure on behalf of the Government.

(c) During the contract, the Contractor shall furnish representative samples of the product in each storage tank, shipment or receipt at the request of, and in the manner and to the place designated by, the Quality Representative. Sample size will be 2 gallons for gasoline-type fuels and one gallon or 10 gallons for jet diesel-type fuels. The number of samples to be furnished during any 12-month period shall not exceed eight times the number of tanks specified in the contract. Such samples shall be packed, marked, and shipped by the Contractor, shipping expense prepaid, in containers and shipping boxes furnished by the Contractor. Sample containers shall be epoxy coated on the interior. This requirement is in addition to sampling required elsewhere in this clause and the contract. All reasonable direct shipping costs associated with samples required by this paragraph shall be reimbursed upon request from the Contractor and such costs shall not be included in the monthly service charge. However, all other costs related to this requirement shall be included as part of the monthly service charge.

(DESC 52.246-9FE1)

E34 TEST FOR SULFIDES IN WATER (DESC MAY 1987)

(a) SCOPE. This method describes a procedure for determining the presence of hydrogen sulfide, which is sometimes formed as a result of bacterial action on the sulfates contained in water bottoms in fuel storage tanks.

(b) APPARATUS. 250 ml conical flask.

(c) MATERIALS.

(1) Dilute (10%) chemically pure sulfuric or hydrochloric acid.

(2) Lead acetate paper.

(d) SAMPLES. Representative water samples from storage tank bottoms must be taken in a glass bottle. In some cases it will be necessary to take the water sample in a Bacon bomb sampler. Samples so taken will always be transferred to a glass bottle. To preclude oxidation by air, the filled bottle must be capped immediately. The sample should be tested as soon as possible after sampling to minimize possible changes in the composition of materials in the water.

(e) PROCEDURE.

(1) The sample must be shaken thoroughly just prior to performing the test to make certain that any sediment present is included in the portion of the sample to be tested.

(2) Transfer 100 ml of the shaken sample into a conical flask. Add 20 ml of dilute (10%) chemically pure sulfuric or hydrochloric acid to the flask. Immediately place a piece of lead acetate paper folded in a "V" shape in the neck of the flask. Bring the water to a boil and continue to gently boil for three or four minutes.

(f) REPORT. The presence of sulfides in the sample will be reported if the lead acetate paper shows a black or brown discoloration. (DESC 52.246-9FN5)

E36 INSPECTION (STORAGE) (DESC FEB 1970)

The facilities to be provided hereunder shall be ready for inspection and acceptance by 15 (fifteen) days prior to service start date. The Contractor shall notify the Contracting Officer of the date such tanks and facilities are available for inspection and acceptance, and the Contracting Officer, or his designated representative, shall promptly thereafter inspect such tanks and facilities. No payment will be made for services performed or facilities provided prior to service start date.

(DESC 52.246-9FD5)

SECTION F – DELIVERIES OR PERFORMANCE

F1.04 GENERAL RECEIVING AND STORING CONDITIONS (DESC OCT 1997)

(a) Notice will be furnished to the Contractor of upcoming product receipts. The notice will include the method of receipt, the source, grade, or type of product, and any special instructions.

(b) The Contractor shall transfer and store each grade of product in a manner that preserves the quality of the product and will prevent contamination. The responsibility for preventing contamination rests with the Contractor.

(c) When requested, the Contractor will transfer product between tanks to consolidate like types or grades.

(d) Whenever a product is to be removed from a tank to accomplish cleaning or repair of the tank, or to change product, or to effect the release of the tank to the Contractor, the Contractor shall strip such tank to preclude loss of recoverable fuel. The Contractor shall provide the Quality Assurance Representative (QAR) with information pertaining to the amount of fuel deemed unrecoverable, the reason why the fuel cannot be recovered, and an analysis of the unrecovered fuel quality. All unrecoverable tank bottoms/line fill quantities will be reported to the Property Administrator for disposition instructions. Contaminated/off-specification product will be reported to the QAR in order to obtain disposition instructions. Tanks out of service for repair shall be removed from revenue until such time as they are returned to Government Service. Tanks out of service for cleaning shall be governed by the INSPECTION AND CLEANING OF BULK PETROLEUM STORAGE TANKS clause.

(e) Custody of product received by pipeline, and risk of loss thereof, shall pass from the carrier to the Contractor when the product passes the flange connecting the carrier's pipeline and the Contractor's pipeline.

(f) Custody of product received by transport truck, and risk of loss thereof, shall pass from the carrier to the Contractor when the product passes from the transport truck discharge hoses into the Contractor's receiving facilities.

(g) Custody of product received by tank car, and risk of loss thereof, shall pass from the carrier to the Contractor when the tank car comes to rest on the Contractor's siding.

(h) Custody of product received from tanker or barge, and risk of loss thereof, shall pass from the carrier to the Contractor when the fuel passes the vessel’s permanent hose connection.

(i) The Contractor shall be held accountable for demurrage charges arising from delay(s) in receipt by tank cars or transport trucks, except when the delay(s) are caused by reason beyond the control and without the fault or negligence of the Contractor and its subcontractors.

(j) The Contractor will prepare and process the following certificate on bond paper when it is necessary to upgrade or downgrade a product:

I certify that ______________ gallons of _____________________ have been upgraded/downgraded (quantity) (product) from ___________________ to ____________________. This action was required because (product) (product)

(enter reason for the action)

Signature of Contractor Representative

[ ] I concur with the Contractor’s certification.

[ ] I do not concur with the Contractor’s certification for the following reasons:

Signature of Quality Representative

(A receipt transaction will be reflected on the monthly stock report for the gain in product, with a shipment being reflected for the losing product.)

(k) The following subparagraphs apply only to barges and tankers.

(1) SCHEDULED ARRIVAL DATE AND BASIC ALLOWED LAYTIME.

(i) The Contractor shall be notified in advance of the scheduled arrival date. Each notice will specify the quantity to be delivered, the cargo number, the name of the vessel, and the scheduled arrival date. For tankers, the notice will also include the size of the vessel and the expected time of arrival. For tankers, the notice of delivery will be furnished at least 72 hours in advance of the scheduled arrival date; for barges, at least 48 hours in advance of the scheduled arrival date. The Government will provide the maximum notice practicable when the anticipated vessel transit time from the loading point is less than the 72/48 hours. Changes in the scheduled arrival date that will provide less than the 48 hours notice for barges and the 72 hours notice for tankers will require the verbal approval of the Contractor. This verbal approval is to be confirmed in writing as soon as practicable.

(ii) The Contractor shall provide a reachable berth, free of charge, where the vessel can be safely moored and afloat with necessary access thereto as soon as possible, but no later than, for barges, within 3 hours after issue of notice of readiness to unload, and, for tankers, within 6 hours after issue of notice of readiness, PROVIDED --

(A) If the vessel is tendered for unloading on a date earlier than the last agreed scheduled arrival date, the Government’s vessel shall be unloaded as soon as possible in its proper turn with other vessels, and laytime shall not commence until the vessel moors alongside or, for barges, 3:00 A.M. local time; for tankers, 6:00 A.M. local time, on the last agreed scheduled arrival date, whichever occurs first.

(B) If the vessel is tendered for unloading later than 12:00 noon of the day following the last scheduled arrival date, the vessel shall be unloaded in its proper turn with other vessels. Laytime shall commence when the vessel moors alongside, provided a good faith effort is made by the Contractor to moor the vessel in its turn with other vessels as loading berths become available.

(iii) Laytime shall commence either (A) at the expiration of the notice period prescribed in subparagraph (ii) above, berth or no berth, or (B) immediately when the vessel moors alongside, with or without notice of readiness, whichever occurs first.

(iv) Laytime, once started, shall continue 24 hours per day, 7 days per week, without interruption, from its commencement until unloading of the barge or tanker is completed and hoses have been disconnected.

(v) Unless otherwise provided in the Schedule, the Contractor shall be allowed and will complete unloading within laytime determined as follows:

(A) FOR BARGES: One hour for each 2,000 barrels of product to be unloaded.

(B) FOR TANKERS: Thirty-six hours of discharge of a full vessel cargo. When partial vessel cargoes are to be unloaded, the 36 hours will be prorated based on quantities discharged in each port.

(vi) Hoses and loading arms for unloading a barge or tanker will be furnished, connected, and disconnected by the Contractor.

(2) INCREASES TO BASIC ALLOWED LAYTIME.

(i) If, after laytime commences, the conditions or facilities of the barge or tanker to be unloaded do not permit unloading, basic allowed laytime shall be increased by the duration of the delay.

(ii) If the vessel is delayed in reaching its berth and the delay is caused by the fault of the vessel, basic allowed laytime shall be increased by the duration of the delay.

(iii) If the vessel owner’s or operator’s regulations prohibit unloading at any time after laytime has commenced, the lost time shall be added to the basic allowed laytime.

(iv) If, for any reason, the Contractor is delayed in unloading the barge or tanker because of actions of a Government representative, acting under the contract, that arise through no fault or negligence on the part of the Contractor or its subcontractors, basic allowed laytime shall be increased by the duration of the delay.

(v) There will be no increase to basic allowed laytime (nor other reductions to any resulting demurrage time) for saved laytime arising out of other…