Attachment 1 PWS 9 29 2009.pdf

Attachment 1 Performance Work Statement

DFSP, Fujairah, United Arab Emirates

PERFORMANCE WORK STATEMENT

FOR

DEFENSE FUEL SUPPORT POINT SERVICES

PORT OF FUJAIRAH, UNITED ARAB EMIRATES (UAE)

1. Description of Required Services

1.1 Area of Consideration

1.2 Storage Tank Requirements

1.3 Grade of Product

1.4 Physical System Requirements

1.5 Estimated Through-put Requirements

1.6 Property Control, Records and System Records

2. Facilities

2.1 Product Receiving Requirements

2.2 Product Shipping Requirements

2.3 Truck Fill Stand

2.4 Berthing and Mooring Facilities

2.5 Storage Tanks

2.6 Filtration

2.7 Additive Injection

2.8 Laboratory Services

3. Product Quality Surveillance

3.1 Responsibilities

3.2 Quality Control Plan

3.3 Calibration

3.4 Quality During Shipments

3.5 Quality During Receipts

3.6 General

APPENDIX A.

Minimum Requirements for Storage Sampling and Testing Required, Aviation Turbine Fuel Tests Required for F76 and JP5.

1. Description of Required Services: Defense Fuel Support Point facilities and services to receive, store, protect and ship two grades (300.000 BBLS of F76 and 475,650 BBLS of JP5) of U.S. government owned product in the Port of Fujairah, UAE.

CONTRACT PERFORMANCE PERIOD: The contract shall be for a period of five (5) years.

Performance period: November 1, 2010 through October 31, 2015.

1.1 Area of Consideration: Port of Fujairah, United Arab Emirates (UAE) area.

1.2 Storage Tank Requirements: 775,650 barrels (shell capacity) of storage:

DFSP, Fujairah, United Arab Emirates

(1) 475,650 barrels (fill capacity) of Turbine Fuel Aviation, Grade JP5

(2) 300,000 barrels (fill capacity) of Fuel Naval distillate, Grade F76

A minimum of two tanks per product, interconnected and isolated from other facilities and products handled within the tank farm is desired, however, one tank per product will be considered. Dedicated facilities are required.

1.3 Grade of Service: Two grades of product: JP5 and F76.

(1) Aviation Turbine Fuel Grade JP5

(2) Fuel Naval Distillate Grade F76

1.4 Physical System Requirements: Storage and handling facilities capable of receiving, storing, protecting, and shipping two grades of U.S. Government-owned petroleum products. A dedicated system is preferred, however, a common system will be considered, providing the offeror(s) submit the data required by Clause L116.01, Data Required to be Submitted. In addition to the data required by Clause L116.01, the potential Contractors will be required to provide the tank cleaning and inspection data required by Clause E18 as part of their proposal. The tank cleaning and inspection data will be evaluated and utilized as an evaluation factor in determining the governments risk associated with the utilization of the facility.

1.5 Allowed Throughput: The U.S. Government will be entitled to initial fill and final shipment during the 5-year performance period, in addition to 2,500,000 barrels of total product turnover for each product within a 12-month period, hereafter referred to as allowed throughput. Initial fill is defined as all receipts required to fill the storage tanks to 100% of the awarded safe fill capacity. Final shipment is defined as all issues required to withdraw 100% of the awarded safe fill capacity. The 5,000,000 total barrels of allowed throughput is defined as the total receipts of each product, JP5 and F76, in a 12-month performance period plus the total shipments (JP5/F76) in the same 12-month performance period, divided by two.

1.5.1 Excess Throughput: Offeror(s) shall indicate any additional throughput charge for volumes in excess of the allowed throughput under Subline Item 1001AA - Excess Throughput. Excess throughput charge will be calculated by multiplying the total number of barrels received and shipped in a 12-month period above the allowed throughput quantity by the excess throughput charge offered under Subline Item

1001AA.

1.6 Property Control, Records and System Records: The Contractor shall provide Property Control and System Records in compliance with paragraph (a)(1) of Clause I119.04. The Contractor furnished computer system shall meet the current commercial standards for a computer system capable of accomplishing the data reporting and records

DFSP, Fujairah, United Arab Emirates keeping required by the Fuels Automated System (FAS); maintaining the data collection and records keeping associated with product quality surveillance (i.e., product analysis and testing reports); and the document collection and records keeping associated with the Contractors preventive maintenance program, etc.

1.6.1 The Contractor shall input inventory and sales data for Government own product directly into the Government's Fuel Automated System (FAS) utilizing a Contractor-furnished computer system via a Contractor-furnished internet access (with static IP address capability) or creation of a dial-in account to the DESC FAS web server.

Additional data and requirements can be found in Clause 1119.04.

2. Facilities:

2.1 Product Receiving Requirement: The Contractor's facilities shall be capable of receiving U.S. Government-owned product via ocean going tankers/barges or U.S. Navy Fleet Oilers on a 24-hour per day, seven day per week basis at pumping rates compatible with the mode of transportation tendered (minimum 2,000 barrels per hour for barges and 8,000 barrels per hour for tankers and Fleet Oilers).

2.2 Product Shipping Requirement: The Contractor's facilities shall be capable of shipping U.S. Government-owned product via ocean going tankers/barges or Navy Fleet Oilers on a 24¬hour per day, seven day per week basis at pumping rates compatible with the mode of transportation tendered (minimum 2,000 barrels per hour for barges and 8,000 barrels per hour for tankers and Fleet Oilers.

2.3 Tank Truck Fill Stand Facility: The Contractor's truck fill stand facility shall be capable of simultaneously loading and shipping four tank trucks at a combined rate of 1,000 gallons per minute. The tank truck loading and shipping capability is required for JP5. The Contractor is responsible for loading and shipping tank trucks on a 5-day workweek schedule; 8:00 a. m. to 5:00 p. m. weekends and local holidays excepted.

Hours worked in excess of these hours will be on an overtime basis (see Clause G148.05). (NOTE: The normal United Arab Emirates workweek is Sunday through Thursday).

2.4 Berthing and Mooring Facilities: The Contractor's berthing and mooring facilities shall be capable of handling a minimum 40,000 dead weight ton (DWT) vessels with an overall length of 800 feet with a minimum draft of 39 feet at mean low water from the Contractor's berthing and mooring facility to the open ocean. The offeror shall provide any port restriction requirements and harbor fees with their proposal, along with height restrictions from ship's manifold to the waterline during loading/unloading.

2.5 Storage Tanks: All storage tanks must meet the minimum requirements of the current American Petroleum Institute (API) standards and all local laws, regulations, etc.

applicable to the tanks and facilities to be provided. Cone roof tanks with internal floating pans are preferred however, floating roof tanks will be considered if they are equipped with roof drains which prevent water from coming into contact with the product

DFSP, Fujairah, United Arab Emirates to be stored. The bottom floor of the floating roof that contacts the product should be epoxy coated IAW, (UFC-3-460-1, Para. 8.3.7 Interior Coatings).

The tanks shall be interconnected and have the capability of re-circulating the product from tank to tank through an (API 1581) type filter separators when needed. 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).

The facility must be equipped with illumination to allow receipt/issue operations during hours of darkness.

2.6 Filtration: Contractor-furnished filtration system that meets the specifications outlined in the current API Publication 1581, Specifications and Qualification Procedures -Aviation Jet Fuel Filter Separator. The capability must exist to filter product during tank-to-tank transfers under max flow conditions, as a minimum. Contractor will have a Micronic or Filter Water Coalescer/Separator on the Inlet/Port side of the facility capable of filtering fuel at a minimum flow rate of 8000 to 14000 Barrels per hour during receipt.

Contractor will have a Micronic or Filter Water Coalescer/Separator on the Outlet/terminal side of the facility capable of filtering fuel at a minimum flow rate of 8000 to 14000 Barrels per hour during loading.

2.7 Additive Injection: Contractor-furnished injection system(s) to inject additives as follows: The additives (Fuel System Icing Inhibitor (FSII), Corrosion Inhibitor/Lubricity Improver (CI/LI) will be injected by the Contractor based on product specification requirements. Injection requirements apply to JP5 stocks. (See Clause F45.03)

2.8 Laboratory Services: The Contractor shall provide laboratory services to test U.S.

Government-owned petroleum products. If the Contractor cannot provide full testing capabilities identified in Appendix A acceptable to the Government, the Contractor shall be responsible for shipping the required samples to a laboratory specified by the Government representative within the Middle East. As a minimum, the Type C testing capability, including FSII, identified in Appendix A, Types of Tests Required on Aviation Turbine Fuel, shall be available within the Contractor’s facility.

3.0 Product Quality Surveillance:

3.1 Responsibilities: The Contractor will be responsible for maintaining quality and quantity of the Government-owned product stored at the Contractor’s facility, to include but not limited to monitoring product deterioration and contamination, in accordance with the contractor developed Quality Control Plan and MIL-STD-3004B latest edition.

3.1.1 No petroleum products shall be received or shipped without first determining and confirming conformance with product quality requirements. No conveyance/container shall be loaded until it is inspected by a qualified contractor person and deemed suitable to carry the intended product. Products shall be shipped on a first-in, first-out basis unless otherwise approved or directed by the QAR/QM. Non-conforming product shall be reported to the QAR/QM immediately. Anytime product is received into a tank, the tank’s contents shall be suspended from issue pending quality conformance sampling and

DFSP, Fujairah, United Arab Emirates testing IAW MIL-STD-3004B latest edition. The Contractor shall ensure that certificates of quality conformance (test reports) are maintained on file for all on-hand fuel stocks.

3.2 Quality Control Plan: The Quality Control Plan (QCP) shall provide comprehensive and detailed step-by-step procedures covering all requirements in clause E1.11, QUALITY CONTROL PLAN. Following contract award, the Contractor shall have 30 days to submit the detailed plan to the QAR/QM and Contracting Officer for review and acceptance. Written procedures must be clear and concise as to: what is done, where it's done, when it's done, how it's done, and who (which contractor employee position) does it. It must describe, in proper sequence, how contract compliance will be achieved and how the contractor intends to perform the required services in order to ensure that all products meet specification requirements during the performance of the contract. The plan shall include procedures for the following operations, as they affect quality control, and an organizational chart that identifies responsible parties for these operations:

a. Receiving - See Clause F1.04

b. Blending – See Clause F45.03

c. Sampling – See Clause C19.07

d. Testing – See Clause C19.07 and E28

e. Calibration

f. Storage and Handling – See Clauses E28 and I116

g. Loading and Shipping – See Clause F1.05

h. Quantity Determination – See Clause F1.14

i. Records and Reports – See Clause I119.04

j. Corrective Action

The QCP must describe at a minimum those functions pertinent to contract performance and compliance. The QCP must be reviewed/approved upon initial award to assure the technical and procedural requirements are adequately described. The QCP must be dynamic (i.e., modified or extended as changes in technical or procedural requirements occur). Contractor responsibility to inspect product and services shall be in accordance with clause E28, CONTRACTOR INSPECTION RESPONSIBILITIES.

3.2.1 The Contractor shall report immediately to DESC Middle East or the QAR/QM all receipts or on-hand stocks that fail to meet product quality for receipt, storage, or shipment in accordance with the Quality Control Plan. Suspected off-specification

DFSP, Fujairah, United Arab Emirates product will be isolated and shall not be released for shipment until authorized by the Contracting Officer or the QAR/QM.

3.3 Calibration: Calibration of testing equipment required under the provisions of this contract shall be covered in the Quality Control Plan (QCP). The frequency of testing may be increased by the QAR/QM as required.

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

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

3.5.1 Additional testing shall be performed if required to assure split cargoes have not been commingled. Establish procedures for the transportation of samples from vessel to the testing facility. Establish procedures for monitoring the discharging from vessel to shore tank, investigating irregularities immediately, and stopping discharging if necessary. Establish procedures for investigating discrepancies in quality (mandated if off-specification or out of testing tolerance) and quantity.

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

3.6 General: In the absence of any contract provision or referenced method, specification, or other instruction, the Contractor shall perform all services in accordance with the best commercial practices.