Amendment 0002.pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

1. CONTRACT ID CODE

PAGE OF PAGES

1 3

2. AMENDMENT/MODIFICATION NO.

3. EFFECTIVE DATE

December 20, 2011

4. REQUISITION/PURCHASE REQ. NO.

N/A

5. PROJECT NO. (If applicable)

6. ISSUED BY CODE

SP0600 7. ADMINISTERED BY (If other than Item 6) CODE

Defense Energy Support Center 8725 John J. Kingman Road, Suite 3827 Fort Belvoir, VA 22060-6222 Buyer / Symbol: Bob Knudson/Charlene Miller DLA Energy-A Phone: (703) 767-8536/8583 Fax: (703) 767-8757 Email: james.knudson@dla.mil /Charlene.miller@dla.mil Purchase Program 8.1

8. NAME AND ADDRESS OF CONTRACTOR (NO., street,city,county,St

X

9a. AMENDMENT OF SOLICITATION NO.

SP0600-11-R-0440

9b. DATED (SEE ITEM 11)

November 17, 2011 10a. MODIFICATION OF CONTRACT/ORDER NO.

10b. DATED (SEE ITEM 13)

BIDDER CODE: CAGE CODE:

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

[ X ] The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers [ ] is extended, [ X ] is not extended _____________________________________________________________.

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods: (a) By completing Items 8 and 15, and returning 1 copies of the amendment;(b) By acknowledging receipt of this amendment on each copy of the offer submitted; or(c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

12. ACCOUNTING AND APPROPRIATION DATA (If required)

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE

CONTRACT ORDER NO. IN ITEM 10A.

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b)

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority)

E. IMPORTANT: Contractor [ ] is not, [ X ] is required to sign this document and return ___1____ copies to the issuing office.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

(SEE CONTINUATION PAGE)

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15A. NAME AND TITLE OF SIGNER (Type or print)

16A. NAME OF CONTRACTING OFFICER

LAWRENCE T. FRATIS

15B. NAME OF CONTRACTOR/OFFEROR

BY

(Signature of person authorized to sign)

15C.DATE SIGNED 16B. UNITED STATES OF AMERICA

BY

(Signature of Contracting Officer)

16C.DATE SIGNED

mailto:james.knudson@dla.mil mailto:/Charlene.miller@dla.mil

Amendment 0002

SPR – Bryan Mound

1. The changes set forth herein are incorporated into Solicitation SP0600-11-R-0440.

2. Part I, Section 2(a), Supplemental has hereby been amended to include the following:

5. In the event of a Reserve Drawdown, the Government will notify the Contractor as soon as an alert level is set (anticipated to be within hours of the notification). There are 3 alert levels. Alert level one means that, due to world events, there is a chance the Strategic Petroleum Reserve may go into a drawdown sometime in the future. This can last days or sometimes months and result in either the cancellation of the alert or a move to the next level. In addition, the Government also notifies terminals, pipelines and other customers, partners, and contractors. Alert level two means that the situation has worsened and there is a greater likelihood that the Strategic Petroleum Reserve may go into a Reserve Drawdown. This level can also be either long or short in duration and, in the event of an emergency, even skipped. The Contractor and other relevant entities will again be notified following a move to alert level two.

Alert level three means that the President has directed a Reserve Drawdown to occur. The Government will immediately notify the Contractor and subsequent discussions may take place as additional details become available. The normal process is designed to take 13 days from when the President directs the Strategic Petroleum Reserve to drawdown until the first oil is moved from a given site. In some cases deliveries will not occur for over a month, though early deliveries may be requested in others. Early deliveries of petroleum can only occur after a solicitation is posted, contractors are given time to develop their bids, bids are received, and awards are made. This will typically take at least several days.

During the last drawdown, the Strategic Petroleum Reserve was directed on 23 June, 2011 to drawdown in the month of August, though some early deliveries occurred in the second half of July.

3. Part 1, Section 9(c), has hereby been amended to read as follows:

(c) If, in any month, Excess Energy is consumed, an Excess Energy Adjustment shall be made. Excess Energy is the amount of electricity consumed above the upper limit of the contract bandwidth for an installation for a month. Excess Energy Adjustment means the charge calculated each monthly billing period for the Excess Energy. The Excess Energy Adjustment equals the Excess Energy times the Weighted Average Market Price in dollars per kWh for the month minus the average monthly contract price in dollars per kWh plus an adder(s) of 2.5 mills per kWh or .75 mills per kWh. The average monthly contract price for the month shall be determined as follows: the contract prices will be averaged over the on-peak and off-peak hours of the month weighted by the on-peak and off-peak hours in the month to calculate an average monthly contract price. The Weighted Average Market Price for a month is the product of the hourly or 15 minute LMP values for the applicable delivery zone as posted on ERCOT’s website and the actual energy for the applicable interval as provided by the interval meter developed using ERCOT assigned load profiles for non interval meters divided by the installation total kWh for the calendar month. A Daily Market Price shall be determined as follows: (1) the hourly LMP as posted on ERCOT website (for the applicable zone where the impacted installation is physically located) will be averaged over the on-peak and off-peak hours of the day to calculate an average on-peak and off-peak value for that day ; (2) the average on-peak and off-peak average values as calculated in (1) will be weighted by the number of on-peak and off-peak hours in the day (as defined by ERCOT to calculate the Daily Market Price.

Expressed as a formula, the Excess Energy Adjustment is--

EEA = EE x (WAMP – CP + A) where--

EEA is the Excess Energy Adjustment, in dollars EE is the Excess Energy, in kWh CP is the contract price, in dollars per kWh WAMP is the Weighted Average Market Price, in dollars per kWh A is the adder, in dollars per kWh

Note: In the event of a Energy Excess Adjustment the following is defined:

$0.0025 is the adder, in dollars per kWh $0.00075 is the adder, in dollars per kWh (in the event of a drawdown ONLY)

Amendment 0002

SPR – Bryan Mound

The Excess Energy Adjustment shall be calculated following the monthly billing period in which the energy was consumed and included on the next monthly invoice. If the EEA is positive, then it will be a charge to the customer. If the EEA is negative, then it will be a credit to the customer.

4. Part II, Section 1(b)(2)(vi)(B) on page 13 has hereby been amended to read as follows:

E-mail receiving data and compatibility characteristics are as follows: e-mail address: dlaenergy.eteam@dla.mil

5. All amendments must be signed and submitted prior to pricing date.