SP0600-13-R-0204_SOLICITATION.doc

COG 3 POSTS, CAMPS & STATIONS (PC&S) - SP0600-13-R-0204

INFORMATION TO OFFERORS

OR QUOTERS

COVER SHEET

SOLICITATION: SP0600-13-R-0204 (COG 3, POSTS, CAMPS & STATIONS, PP 3.23).

THE ENCLOSED SOLICITATION COVERS THE ORDERING PERIOD:

AUGUST 1, 2013 THROUGH 31 JULY 2017

ISSUING OFFICE:

Defense Logistics Agency - Energy

ATTN: DESC-PEA, Angela Ponder

8725 John J. Kingman Road, Suite 4950

Ft. Belvoir, VA 22060-6222

SPECIALIST: Angela Ponder/DLA Energy-PEA

ITEMS TO BE PURCHASED:

DISTILLATES AND RESIDUALS FOR DEPARTMENT OF DEFENSE AND FEDERAL CIVILIAN AGENCIES IN THE STATES OF MARYLAND, VIRGINIA, WEST VIRGINIA, OHIO, INDIANA, KENTUCKY, TENNESSEE, DELAWARE AND THE DISTRICT OF COLUMBIA

POINTS OF CONTACT FOR INFORMATION:

ANGELA PONDER

DOROTHY GHEEN

(703) 767-9508

(703) 767-9542

ANGELA.PONDER@DLA.MIL

DOROTHY.GHEEN@DLA.MIL

ADDITIONAL INFORMATION:

SEE NOTES

SYNOPSIS/SOLICITATION

PART: U.S. Government Procurements

SUBPART: Supplies, Equipment, and Material

CLASSCODE: 91- Fuels, Lubricants, Oils and Waxes

OFFADD: Defense Logistics Agency Energy, 8725 John J. Kingman Road, Suite 3905, Ft.

Belvoir, VA 22060-6222

SUBJECT: COMBINED SYNOPSIS/SOLICITATION– COG 3, POST, CAMPS, &

STATIONS

SOLICITATION: SP0600-13-R-0204

DUE/CLOSING: January 18, 2013, 3pm Local Fort Belvoir, VA time

DESCRIPTION: This is a combined synopsis/solicitation for commercial items prepared in accordance with the format in Subpart 12.6.

ADDITIONAL INFORMATION:

Offerors are directed to offer in accordance with FAR Clause 52.212-1 - Instructions to Offerors -- Commercial Items (Feb 2012)

The Government will evaluate offers in accordance with the M72 and FAR 52.212-2 clauses.

1. CLOSING DATE: The closing date and time for receipt of offers is January 18, 2013, 3:00 P.M. Local Time; Fort Belvoir, Virginia. If you plan to submit your offer electronically, it is recommended you send it no later than 5 p.m. the day before the closing date.

2. PERIOD FOR ACCEPTANCE OF OFFERS: Instructions to Offerors -- Commercial Items (Feb 2012), offerors agree to hold the prices to their offers firm for 120 calendar days from the date specified for receipt of offers, unless another time period is specified in an addendum to the solicitation.

3. FACSIMILE PROPOSALS: Offers may be submitted in accordance with FAR clause 52.215-5 FACSIMILE PROPOSALS (OCT 1997). Please complete and submit the Offer Submission Package (OSP) in its entirety as your offer. Please submit all offer prices on the Price Data Sheet(s), which are included in the OSP. A completed OSP, includes the Standard Form 1449 (SF1449) (signed and dated), Certifications and Representations (Fill-in clauses), appropriate Price Data Sheet(s). All offers must sign (Block 30 of SF 1449). The DLA Energy fax number for submitting facsimile proposals is (703) 767-8506.

4. DUNS NUMBER: Include your firm’s Data Universal Numbering System (DUNS) Number on the cover sheet of your offer (See paragraph (l) of FAR Clause 52.212-1 Instructions to Offerors -- Commercial Items (Feb 2012)

5. COMMERCIAL AND GOVERNMENT ENTITY (CAGE) CODE REPORTING: Please insert your CAGE CODE in Block 17a of the SF 1449, in the box labeled, “CAGE CODE.” If your firm currently has a Government contract and you do not know your CAGE CODE, please contact Angela Ponder at (703) 767-9508 or Dorothy Gheen at (703) 767-9542. If your firm has not been assigned a CAGE CODE, please insert the word “None” in the block.

6. CONTRACT TYPE: Contracts awarded as a result of this solicitation will be Requirements Type, Fixed Price with Economic Price Adjustment. Please refer to Clauses FAR 52.216-21 (OCT 1995) and I86.03 DELIVERY-ORDER LIMITATIONS (PC&S) (DLA ENERGY JAN 2012)

7. ORDERING PERIOD: The ordering period for contracts awarded under this Solicitation is August 1 2013 through 31 July 2017.

8. PAPERLESS ORDERING AND RECEIPT TRANSACTIONS SCREENS (PORTS): The following clauses apply to: ***PORTS ACTIVE**** items in this Solicitation:

a. B1.01-2 SUPPLIES TO BE FURNISHED (DOMESTIC PC&S) (PORTS INTERNETAPPLICATION) (DLA ENERGY JAN 2012)

b. F20.02 AUTOMATIC FILL-UP PROVISIONS (PORTS INTERNET APPLICATION) (DLA ENERGY JAN 2012)

c. G150.03 ELECTRONIC SUBMISSION OF INVOICES FOR PAYMENT (EDI) (DLA ENERGY JAN 2012

d. FAR 52.212-4 -- Contract Terms and Conditions -- Commercial Items Contract Terms and Conditions -- Commercial Items (Feb 2012)

9. 52.216-9072 ECONOMIC PRICE ADJUSTMENT – PETROLEUM PRODUCT PRICE, POST, CAMP

AND STATION (PC&S) (NOV 2011): Offerors should use the preferred publication from DLAD 52.216-9072 Part (f) Reference Price Listing, as the escalation reference for offer prices. The BASE REFERENCE DATE for this solicitation is November 2, 2012.

10. TAXES: Please make sure that you have included all applicable taxes in your offer prices with the exception of the Federal Excise Tax which is a separate line item. Taxes must be complete as changes or mistake in bids after award may not be accepted. These are some of the taxes that apply.

LUST Tax - $0.00100

Oil Spill Tax - $0.001905

District of Columbia –$0.187 heating tax

Maryland - $0.235 on motor fuels delivered to the D.C. Government only

$0.00137 Oil transfer fee

$0.27264 Montgomery county fuel energy tax on No. 1 diesel fuel

$0.28283 Montgomery county fuel energy tax on No. 2 diesel fuel

West Virginia - $0.322 Motor Fuel Excise Tax (Gasoline and E85)

$0.322 Diesel Fuel Excise Tax TAX AND FEE INFORMATION: Applicability of various Federal, State, and Local taxes is governed by the following Clauses: I28.01 FEDERAL, STATE, AND LOCAL TAXES (DEVIATION) I28.02-2 FEDERAL, STATE, AND LOCAL TAXES/FEES EXCLUDED FROM CONTRACT PRICE, I28.03-2 TAX EXEMPTION CERTIFICATES Note: Offerors are responsible for ensuring all applicable taxes and fees are included in or excluded from their offer price, as appropriate. To view the COMPILATION OF UNITED STATES TAXES: 2012 on the DLA Energy home page, please click on the Customer Resources drop down, then click Customer Prices drop down to get to tax compilation or go to http://www.energy.dla.mil/DLA_counsel_energy/Documents/Tax%20Documents/Tax%20compilation%202012-04.pdf The tax table provided on the DLA Energy website is a guide and does not relinquish Offerors from knowing the applicable taxes in their states of operation. The Offeror is responsible for confirming the applicability of taxes and tax rates with the state or local tax authority in question.

(1) DO NOT INCLUDE any Federal Excise Taxes (FET) in your offer prices. Include the FET as a separate line item on the Contractor’s invoice.

(2) INCLUDE State and Local environmental, oil spill taxes, and inspection fees in your offer price, unless an exemption applies.

11. OFFER SUBMISSION: As part of your offer, please complete and submit all forms in the Offeror Submission Package and thoroughly review the supply schedule under Clause B1.01 SUPPLIES TO BE FURNISHED for the delivery narratives you are offering on. Facsimile offers are authorized in accordance with FAR 52.215-5 – Proposals (Oct 1997). When submitting your Offeror Submission Package via fax, please fax to the ATTENTION of Angela Ponder/DLA-PEA at (703) 767-9508. Email Proposal may be submitted in accordance with Clause L2.11-4 EMAIL PROPOSALS. Email completed Offeror Submission Packages to angela.ponder@dla.mil and Dorothy.gheen@dla.mil and DLAEnergyPEA@dla.mil

12. LATE OFFERS: Please note that offers must be received by January 18, 2013, 3:00 PM (Local-Fort Belvoir, VA time). Any offer received after 3:00 PM will be considered “late” and may be determined unacceptable. See FAR Clause 52.212-1 -- Instructions to Offerors -- Commercial Items (Feb 2012)

13. BIODIESEL CERTIFICATIONS: In accordance with Clause C16.27, all offerors are required to submit a suppliers EPA registration. If you are supplying a suppliers EPA registration, a letter is required from the supplier stating that the product will be provided from their terminal/refinery. These documents must be provided along with your offer.

14. ORDERING PERIOD: The ordering period for all contracts awarded under this solicitation will be 01 August 2013 through 31 July 2017. Quantities stated in the SCHEDULE represent the government’s best estimates covering this requirement.

15. SITE VISITS: You are directed to Clause L54, SITE VISIT, please note that it is the responsibility of the Offeror to inspect the site where supplies are to be delivered and to obtain all available information about the site necessary to satisfy themselves about general and local conditions that may affect delivery and the cost of contract performance, to the extent that the information is reasonably obtainable. DLA Energy encourages all potential Offerors to call or visit the sites in which they intend to submit an offer.

16. SYSTEM FOR AWARD MANAGEMENT (SAM) SAM registration is required prior to contract award. See Clause FAR 52.204-99, SYSTEM FOR AWARD MANAGEMENT REGISTRATION. The SAM is a central repository of trading partner information about firms qualified to conduct business with the Federal Government. Contractors register one time and confirm on an annual basis that their SAM registration is complete and accurate. Offerors may obtain information on registration and annual confirmation requirements at https://www.acquisition.gov or by calling 1-866-606-8220 or 334-206-7828

17. NOTICE: any contract awarded to a contractor who at the time of award was suspended, debarred, or

Ineligible for receipt of contracts with the government agencies or in receipt of a proposed debarment from any

Government agency is voidable at the option of the government.

18. ACKNOWLEDGEMENT OF AMENDMENTS: YOU MUST ACKNOWLEDGE RECEIPT OF ANY

AMENDMENTS TO THIS SOLICITATION. You may do this by signing and returning one (1) copy of the amendment.

19. SUBCONTRACTING PLAN REQUIREMENT: In accordance with Clause FAR 52.219-16, large businesses that receive a contract award of more than $500,000.00 must submit an approved subcontracting plan.

20. NOTIFICATION OF SUPPLIER AND TRANSPORTATION AGREEMENTS: Please furnish copies of your supplier and transportation agreements with your offer or be prepared to provide within five working days when requested by the Contracting Officer. DLA Energy may conduct pre-award surveys to determine responsibility regarding the offeror’s transportation, technical, production, and quality assurance capabilities. Therefore, this information is necessary to determine if secondary pre-award surveys will be required based on the offeror's supplier location.

21. POINTS OF CONTACT: Emergency Situations after Duty Hours OPERATIONS CENTER, CONTINGENCY PLANS AND OPERATION DIVISION (703) 767-8420 Information Regarding Solicitation SP0600-13-R-0204: Angela Ponder at (703) 767- 9508 angela.ponder@dla.mil or Dorothy Gheen, (703) 767-9542 dorothy.gheen@dla.mil and DLAEnergyPEA@dla.mil

22. UNCOMMON ESCALATORS: DLA Energy will not evaluate uncommon escalators under solicitation SP0600-13-R-0204, therefore DLA Energy will not accept any exceptions to the Base Reference Prices under solicitation SP0600-13-R-0204.

23. Blocks highlighted on the SF1449 must be filled in and submitted with your offer. You must fill in your company name, address, email address and phone number in block 17A. Code and Facility Code, means your bidder code and cage code if you know them.

24. PLEASE CERTIFY THAT YOU ARE NOT DOING ANY BUSINESS WITH THE COUNTRY OF IRAN.

PLEASE SIGN AND DATE ACKNOWLEDGING YOU HAVE READ AND UNDERSTAND THESE ADDITIONAL POINTS OF INFORMATION UNDER THE SOLICITATION:

25. In accordance with Clause 52.215-9023 REVERSE AUCTION (JUL 2012), DLA Energy will be utilizing Reverse Auction for selected contract line item numbers (CLINs), you will be notified of the specific clins and scheduled dates via contract amendment.

PART I – THE SCHEDULE

SECTION B – SUPPLIES OR SERVICES AND PRICES/COSTS

DLAD 52.216-9072

ECONOMIC PRICE ADJUSTMENT – PETROLEUM PRODUCT PRICE, POST,

CAMP AND STATION (PC&S) (NOV 2011)

B-0001

B1.01

SUPPLIES TO BE FURNISHED (DOMESTIC PC&S) (DLA ENERGY JAN 2012)

B-0002 B1.01-2

SUPPLIES TO BE FURNISHED (DOMESTIC PC&S) (PORTS INTERNET

APPLICATION) (DLA ENERGY JAN 2012)

B-0003

B19.27-3 ECONOMIC PRICE ADJUSTMENT - MARKET PRICE (PC&S) (ETHANOL)

(DLA ENERGY JAN 2012)

SECTION C DESCRIPTION /SPECIFICATIONS/STATEMENT OF WORK

C-0001

C1

SPECIFICATIONS (DLA ENERGY JAN 2012)

C-0002

C1.02

ASSIST DATABASE OF SPECIFICATIONS (DLA ENERGY 10 MAR 2011)

C-0003

C16.14

FUEL, ETHANOL (PC&S)(DLA ENERGY JUL 2011) 10 – 11

C-0004

C16.23-2

COMMERCIAL MARINE GAS OIL MINIMUM REQUIREMENTS (BUNKERS)

(DLA ENERGY AUG 2012)

C-0005

C16.27

FUEL, BIODIESEL (B20)(DLA ENERGY JUN 2009)

C-0006

C16.69

FUEL SPECIFICATIONS (PC&S) (DLA ENERGY JUL 2012) SEE OSP

SECTION D PACKAGING AND MARKETING

D-0001

D12

DRUMS, CONTAINERS, AND PACKAGING (DLA ENERGY DEC 2011)

SECTION E INSPECTIONS AND ACCEPTANCE

FAR 52.246-2

INSPECTION OF SUPPLIES – FIXED PRICE (AUG 1996)

DLAD 52.246-9029

INSPECTION AND ACCEPTANCE POINTS (APR 2010)

E-0001

E1

CONTRACTOR INSPECTION RESPONSIBILITES (DLA ENERGY NOV 2008)

E-0002 E4

INSPECTION (DLA ENERGY DEC 2011)

E-0003

E18.01

SAMPLE SUBMISSION (DLA ENERGY AUG 2009)

E-0004

E22

LIST OF INSPECTION OFFICES FOR DLA ENERGY CONTRACTS (DLA

ENERGY DEC 2011)

E-0005

E35

NONCONFORMING SUPPLIES AND SERVICES (DLA ENERGY FEB 2011)

E-0006

E37

SOURCE RESTRICTION AND SOURCE INSPECTION (PC&S) (DLA ENERGY

(DEC 2011)

E-0007

E40.05

MATERIAL INSPECTION AND RECEIVING REPORT (DLA ENERGY MAR

2000)

SECTION F DELIVERIES OR PERFORMANCE

FAR 52.211-16

VARIATION IN QUANTITY (APR 1984)

F-0001

F1.01-1

DELIVERY CONDITIONS FOR TRANSPORT TRUCKS, TRUCKS AND

TRAILERS, AND TANK WAGONS

(DLA ENERGY JAN 2012)

F-0002

F1.09-2

DETERMINATION OF INVOICE QUANTITY (PC&S) (DLA ENERGY JAN 2012)

F-0003

F3

TRANSPORT TRUCK AND/OR TRUCK AND TRAILER FREE

TIME AND

DENTENTION RATES (PC&S) (DLA ENERGY AUG 2005) – SEE OSP

F-0004

F3.03

NOTIFICATION OF CHANGE IN TRANSPORTATION COMPANY (PC&S)(DLA

ENERGY APR 2005) – SEE OSP

F-0005

F4

DELIVERY AND ORDERING PERIODS (DLA ENERGY JUN 2002)

F-0006 F15

BARGE AND/OR T1 CLASS TANKER DEMURRAGE AND LOADING

CONDITIONS (DLA ENERGY JAN 2012)

F-0007

F16

BARGE UNLOADING CONDITIONS (DLA ENERGY JAN 2012) – SEE OSP

F-0008

F20

AUTOMATIC FILL-UP PROVISIONS (DLA ENERGY JAN 2012)

F-0009

F20.02

AUTOMATIC FILL-UP PROVISIONS (PORTS INTERNET APPLICATION)

(DLA ENERGY JAN 2012)

F-0010

F98

DELIVERY CONDITIONS FOR ALL GRADES OF MOTOR GASOLINE AND

AVIATION FUELS (DLA ENERGY OCT 1992)

SECTION G CONTRACT ADMINISTRATION DATA

FAR 52.232-38

SUMISSION OF ELECTRONIC FUNDS TRANSFER INFORMATION WITH

OFFER (MAY 1999)

G-0001

G3

INVOICE NUMBERING REQUIREMENTS (DLA ENERGY AUG 1998)

G-0002 G9.06

ADDRESS TO WHICH REMITTANCE SHOULD BE MAILED (DLA ENERGY

DEC 1999) – SEE OSP

G-0003 G9.07

ELECTRONIC TRANSFER OF FUNDS PAYMENTS –

CORPORATE TRADE EXCHANGE (DLA ENERGY JUL 2007) – SEE OSP

G-0004 G150.03

ELECTRONIC SUBMISSION OF INVOICES FOR PAYMENT (EDI) (DLA

ENERGY JAN 2012)

G-0005

G150.03-1

PAPERLESS ORDERING AND RECEIPT TRANSACTION SCREENS (PORTS)

INTERNET APPLICATION (DLA ENERGY JAN 2012)

G-0006

G150.06

SUBMISSION OF INVOICES FOR PAYMENT (DOMESTIC PC&S) (DLA

ENERGY JAN 2012)

PART II – CONTRACT CLAUSES

SECTION I CONTRACT CLAUSES

FAR 52.203-3

GRATUITIES (APR 1984)

FAR 52-203-6

RESTRICTIONS ON SUBCONTRACTOR SALES IBR TO THE GOVERNMENT

(SEP 2006)

FAR 52.203-8

CANCELLATION, RESCISSION, AND RECOVERY OF FUNDS FOR ILLEGAL

OR IMPROPER ACTIVITY (JAN 1997)

FAR 52.212-4

CONTRACT TERMS AND CONDITIONS – COMMERCIAL (JUNE 2010)

FAR 52.212-5

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT

STATUTUES OR EXECUTIVE ORDERS COMMERCIAL ITEMS (AUG 2011)

FAR 52.215-9023

REVERSE AUCTION (JUL 2012)

FAR 52.216-1

TYPE OF CONTRACT (APR 1984)

FAR 52.216-18

ORDERING (OCT 1995)

FAR 52.216-21

REQUIREMENTS (OCT 1995)

FAR 52.223-5

POLLUTION PREVENTION AND RIGHT-TO-KNOW INFORMATION

(MAY 2011)

FAR 52.232-17

INTEREST (OCT 2010)

FAR 52.232-35

DESIGNATION OF OFFICE FOR GOVERNMENT RECEIPT OF ELECTRONIC

FUNDS TRANSFER INFORMATION (MAY 1999)

FAR 52.242-13

BANKRUPTCY (JUL 1995) 92

DFAR 252.204-7004

ALTERNATE A, CENTRAL CONTRACTOR REGISTRATION (SEP 2007)

DFAR 252.212-7001

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT

STATUTES OR EXECUTIVE ORDERS APPLICABLE TO DEFENSE

ACQUISITIONS OF COMMERCIAL ITEMS (AUG 2011)

DFAR 252.232-7003

ELECTRONIC SUBMISSION OF PAYMENT REQUESTS AND RECEIVING

REPORTS (MAR 2008)

I-0001

I1.20-1

CLAUSES AND PROVISIONS INCORPORATED BY REFERENCE (DLA

ENERGY JAN 2012)

I-0002

I11.01-2

ADMINISTRATIVE COST OF TERMINATION FOR CAUSE – COMMERCIAL

ITEMS (DLA ENERGY FEB 1996)

I-0003

I28.01

FEDERAL, STATE, AND LOCAL TAXES (DLA ENERGY NOV 2011)

(DEVIATION)

I-0004

I28.02-2

FEDERAL, STATE AND LOCAL TAXES AND FEES (DLA ENERGY JUL 2006)

I-0005

I28.03-2

TAX EXEMPTION CERTIFICATES (DLA ENERGY APR 2006)

I-0006

I86.03

DELIVERY-ORDER LIMITATIONS (PC&S) (DLA ENERGY JAN 2012)

I-0007

I174.06

MANUFACTURING AND FILLING POINTS (UNRESTRICTED) (SDB PEA) (DLA

ENERGY JAN 2012)

I-0009

I186

PROTECTION OF GOVERNMENT PROPERTY AND SPILL PREVENTION

(DLA ENERGY FEB 2009)

I-0010

I190.06

MATERIAL SAFETY DATA SHEETS COMMERCIAL ITEMS (DLA ENERGY

APR 2006)

I-0011

I209.09

EXTENSION PROVISIONS (DLA ENERGY JAN 2012)

PART III – LIST OF DOCUMENTS, EXHIBITS, AND OTHER ATTACHMENTS

SECTION J LIST OF ATTACHMENTS

FORM 2.18

PRICE DATA SHEET

ATTACHMENT A

REQUIREMENT LINE ITEMS

ATTACHMENT B

BASE REFERENCE PRICES 15 AUG 2011 ATTACHMENT C

PART IV – REPRESENTATIONS AND INSTRUCTIONS

SECTION K REPRESENTATIONS, CERTIFICATION AND OTHER STATEMENT OF OFFERORS OR RESPONDENTS

FAR 52.212-3

OFFEROR REPRESENTATIONS AND CERTIFICATIONS COMMERCIAL

ITEMS (MAY 2011)

FAR 52.219-22

SMALL DISADVANTAGED BUSINESS STATUS (OCT 1999) – SEE OSP

DFAR 252.209-7001

DISCLOSURE OF OWNERSHIP OR CONTROL BY THE GOVERNMENT OF A

TERRORIST COUNTRY (JAN 2009) – SEE OSP

DFAR 252.212-7000

OFFEROR REPRESENTATIONS AND CERTIFICATIONS – COMMERCIAL

ITEMS (JUN 2005) – SEE OSP

K-0001

K15

RELEASE OF PRICES (DLA ENERGY MAR 2009)

K-0002 K33.01

AUTHORIZED NEGOTIATORS (DLA ENERGY APR 2007) – SEE OSP

SECTION L INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS OR RESPONDENTS

FAR 52.215-5

FACSIMILE PROPOSALS (OCT 1997)

DLAD 52.233-9000

AGENCY PROTESTS (SEP 1999

52.212-1

INSTRUCTIONS TO OFFERORS -- COMMERCIAL ITEMS (FEB 2012)

L-0001

L2.11-4

E-MAIL PROPOSALS (DLA ENERGY OCT 2010)

L-0002

L54

SITE VISIT (DLA ENERGY OCT 1992)

L-0003

L117

NOTIFICATION OF TRANSPORTATION COMPANY TO BE UTILIZED IN THE

DELIVERY OF PRODUCT (PC&S) (DLA ENERGY JAN 2012) – SEE OSP

SECTION M EVALUATION FACTORS FOR AWARD

FAR 52.212-2

EVALUATION - COMMERCIAL ITEMS (JAN 1999)

M-0001

M48.01

EVALUATION OF OFFERS (BARGE ITEMS) (DLA ENERGY MAR 1980)

M-0002

M55

CONVERSION FACTORS (DLA ENERGY MAR 2007)

M-0003

M63.01

EVALUATION OF OFFERS FOR ALTERNATE PRODUCT (PC&S)(DLA

ENERGY APR 2000)

M-0004

M72

EVALUATION OF OFFERS (EXCEPTIONS/ DEVIATIONS) (DLA ENERGY APR

1997) 52.216-9072 ECONOMIC PRICE ADJUSTMENT – PETROLEUM PRODUCT PRICE, POST, CAMP AND STATION (PC&S) (NOV 2011)

(a) Warranties: The Contractor warrants that—

(1) The 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 hereunder shall be computed daily in accordance with the provisions of this clause.

(b) Definitions: As used throughout this clause, the term--

(1) Base price means—

(i) The unit price offered for an item and included in the contract award schedule; or

(ii) During any subsequent program year, either the effective contract price as of the start of the subsequent program year, or the price agreed upon as of the start of the subsequent program year.

(2) Base reference price means the reference price for an item as published on_02 November 2012. In the event one or more applicable reference prices are not (or were not) published on the date shown, then the term base reference price means the reference price for an item as published on the date nearest in time prior to the date shown.

(3) Reference price means that published reference price or combination of published reference prices for price adjustment of individual items by product, market area, and publication as specified in (f) below.

(4) Date of delivery means—

(i) For tanker or barge deliveries.

(A) Free on board (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 all other types of deliveries: The date product is received on a truck-by-truck basis.

(5) Published means issued in either printed or electronic format by the service designated to be employed as an escalator, unless otherwise specifically stated. In the event of a conflict between the price set forth in the print version and those set forth in the electronic version for the same date, the electronic version shall prevail unless otherwise specified in (c) below.

(c) Adjustments: Contract price adjustments shall be provided via notification through contract modifications and/or posting to the web page under the heading Vendor Resources and then Product Price Adjustments to reflect any price change pursuant to this clause.

(1) Calculations: The prices payable hereunder shall be determined by adjusting the award price by the same number of cents, or fraction thereof, that the daily reference price increases or decreases, per like unit of measure. All arithmetical calculations, including the final adjusted unit price, shall be carried to six decimal places.

Oil price information service (OPIS): For all items employing OPIS, the reference price in effect on the date of delivery shall be the end of day OPIS rack average effective (6:00 p.m. timestamp) that day. In the event there is no price published for date of delivery, then it shall be the item’s reference price that was last in effect.

Other publications: Except for items employing OPIS, the reference price in effect on the date of delivery shall be that item's preselected reference price that is in effect the date of delivery. In the event there is no price published for date of delivery, then it shall be the item’s reference price that was last in effect.

(2) Revision of published reference price: In the event—

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

(ii) The Contracting Officer determines that the reference price consistently and substantially failed to reflect market conditions— the parties shall mutually agree upon an appropriate and comparable substitute for determining the price adjustments hereunder. The contract shall be modified to reflect such substitute effective on the date the reference price 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.

(3) 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.

(4) 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 __375_ percent (%) of the of the base price in any applicable program year, except as provided below.

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 the Contractor believes is sufficient to permit completion of remaining contract performance, along with an appropriate explanation and documentation as required by the Contracting Officer.

If an actual increase in the reference 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.

(d) Examination of records: The Contractor agrees that the Contracting Officer or designated representatives 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.

(e) 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.

(f) Publications. The following publication(s) is (are) used: SEE OSP (End of Clause)

B-0001 B1.01

SUPPLIES TO BE FURNISHED (DOMESTIC PC&S) (DLA ENERGY JAN 2012)

(a) The supplies to be furnished during the period specified in the REQUIREMENTS clause, the delivery points, methods of delivery, and estimated quantities are shown below. The quantities shown are best estimates of required quantities only. Unless otherwise specified, the total quantity ordered and required to be delivered may be greater than or less than such quantities. The Government agrees to order from the Contractor and the Contractor shall, if ordered, deliver during the contract period all items awarded under this contract. The prices paid shall be the unit prices specified in subsequent price change modifications issued in accordance with the ECONOMIC PRICE ADJUSTMENT clause.

(b) All items of this contract call for delivery f.o.b. destination unless the item otherwise specifies. The destination for each item is the point of delivery shown in the particular item.

(c) Written telecommunication (facsimile) is authorized for transmittance of a properly completed order. In an emergency, oral orders may be issued but must be confirmed in writing by an order within 24 hours.

(d) If any gasoline items are included in this document, they may require oxygenated fuel as a result of changes in environmental laws. See the SPECIFICATIONS (CONT'D) (COG) contract provision for a listing of counties, cities, and townships that require oxygenated gasoline during the period listed.

(e) Offers shall not be submitted for quantities less than the estimated quantities specified below for each line item. Any offers received for less than the full quantity for each line item will be rejected by the Government.

SEE ATTACHMENT B

B-0002 B1.01-2 SUPPLIES TO BE FURNISHED (DOMESTIC PC&S) (PORTS INTERNET APPLICATION) (DLA ENERGY JAN 2012)

(a) The supplies to be furnished during the period specified in the REQUIREMENTS clause, the delivery points, methods of delivery, and estimated quantities are shown below. The quantities shown are best estimates of required quantities only. Unless otherwise specified, the total quantity ordered and required to be delivered may be greater than or less than such quantities. The Government agrees to order from the Contractor and the Contractor shall, if ordered, deliver during the contract period all items awarded under this contract. The prices paid shall be the unit prices specified in subsequent price change modifications issued in accordance with the ECONOMIC PRICE ADJUSTMENT clause.

(b) All items of this contract call for delivery f.o.b. destination unless the item otherwise specifies. The destination for each item is the point of delivery shown in the particular item.

(c) Oral orders may be issued but must be confirmed in writing via a PORTS-generated order within 24 hours or one business day. See the PAPERLESS ORDERING AND RECEIPT TRANSACTION SCREENS (PORTS) INTERNET APPLICATION contract provision.

(d) If any gasoline items are included in this document, they may require oxygenated fuel as a result of changes in environmental laws. See the SPECIFICATIONS (CONT'D) (COG3) contract provision for a listing of counties, cities, and townships that require oxygenated gasoline during the period listed.

(e) Offers shall not be submitted for quantities less than the estimated quantities specified below for each line item.

SEE ATTACHMENT B

B-0003 B19.27-3

ECONOMIC PRICE ADJUSTMENT - MARKET PRICE (PC&S) (ETHANOL) (DLA ENERGY JAN 2012)

(a) WARRANTIES. The Contractor warrants that--

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

(2) The prices to be invoiced hereunder for listed items shall be computed in accordance with the conditions of this contract provision.

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

(1) Award price means the unit price accepted by the Government for the item of supply identified by the item number.

(2) Base market price means the industry publication, Contractor’s posted price, or the Contractor’s supplier’s price to be used in determining an economic price adjustment of the award price of an individual product for the market area and time period specified in this contract provision. The base market price is shown in paragraph (g), Column V of the Market Indicator Table and is the price from which economic price adjustments are calculated pursuant to this contract provision. The Contractor will propose a base market price which is subject to review by the Government to ensure it accurately reflects market conditions.

(3) Adjusting market price means the market price in effect on the date of delivery and that will be used to determine the change from the base market price (see Column V of the Table below).

(4) Date of delivery means--

(i) FOR TANKER OR BARGE DELIVERIES.

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

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

(ii) FOR ALL OTHER TYPES OF DELIVERIES. The date the product is received on a truck-by-truck basis.

(c) PRICE ADJUSTMENTS. The Contractor’s price change notification shall be submitted in writing within 5 calendar days of such change. Any resultant price changes shall be provided via notification through contract modifications and/or postings to the DLA Energy web page at http://www.DESC.dla.mil under the heading Vendor Resources and then Product Price Adjustments.

(1) CHANGE IN SUPPLIER’S PRICE. The price change notification shall include a copy of the Contractor's supplier's notice or invoice, which clearly shows the supplier's name, the increase/decrease in price or invoice, the applicable product, and the effective date of the change.

(2) CHANGE IN CONTRACTOR’S POSTED PRICE. The price change notification documentation shall be sufficient to justify such change and shall include, but not be limited to, the actual supplier-published fuel prices (rack, terminal, truck, etc.) clearly annotated for the fuel type to be procured and the effective date of the price change.

(3) In the event the Contracting Officer determines the justification is insufficient to warrant such a change in the supplier’s price or the Contractor’s posted price, the Contractor will be notified within 3 working days of DLA Energy’s receipt of the price change notification. The Contractor shall continue performance under this contract until the situation is resolved in accordance with paragraph (d), Disputes, of the CONTRACT TERMS AND CONDITIONS - COMMERCIAL ITEMS clause of this contract.

(4) CHANGE IN INDUSTRY PUBLICATION PRICE. In the event that there is a change in the industry publication price used to effect a change in base market price, the Contractor will notify the Contracting Officer in writing and include substantiating documentation.

(5) CALCULATIONS. The prices payable hereunder shall be determined by adjusting the award price by the same number of cents, or fractions thereof that the base market price increases or decreases per like unit of measure between the date shown in Column V of the Table below and the date of delivery. All arithmetical calculations, including the final adjusted unit price, shall be carried to six decimal places, truncated.

(6) DECREASES. If the Contractor fails to notify the Contracting Officer of any decrease in the base market price within the allotted 5-day period, such decrease shall apply to deliveries made on or after the effective date of such decrease. However, if any overpayment is made to the Contractor as a result of the Contractor’s failure to give timely notice to the Contracting Officer of any decrease from the base market price, the Contractor shall be charged interest on such overpayment from the date of the overpayment to the date reimbursement is received from the Contractor for the overpayment in accordance with paragraph (d), Disputes, of the CONTRACT TERMS AND CONDITIONS - COMMERCIAL ITEMS clause of this contract.

(7) INCREASES. Any increase in award price as a result of an increase in the base market price shall apply to all deliveries made on or after the date of receipt by the Contracting Officer of written notification from the Contractor of such increase in accordance with paragraph (c) above. However, no notification incorporating an increase in an award price shall be executed pursuant to this contract provision until the increase has been verified by the Contracting Officer.

(8) FAILURE TO DELIVER. Notwithstanding any other conditions of this contract provision, 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, or is the result of an allocation made in accordance with the terms of the ALLOCATION clause of this contract, in which case the contract shall be amended to make an equitable extension of the delivery schedule.

(9) UPWARD CEILING ON ECONOMIC PRICE ADJUSTMENT. The Contractor agrees that the total increase in any award price shall not exceed 375 percent of the award price in any applicable program year (whether it is a single year or a 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 conditions of this contract provision 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 the Contractor believes is sufficient to permit completion of remaining contract performance, along with an appropriate explanation and documentation as required by the Contracting Officer.

(ii) If an actual increase in the base market price would raise an award 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.

(d) REVISION OF MARKET PRICE INDICATOR. If any applicable market price indicator (industry publication price, supplier’s price, or Contractor’s posted price) is discontinued, its method of derivation is altered substantially, or the Contracting Officer determines that the market price indicator consistently and substantially failed 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.

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

(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 contract provision.

(g) MARKET INDICATOR TABLE.

I

II

III

IV

V

If company -name of product;

If publication -

Base market heading under price as of

Name of which market Location where Nov. 02, 2012 company/ price is published market price (base market date)

Item no.

publication and name of product is applicable excludes all taxes)

SEE ATTACHMENT C

C-0001

C1

SPECIFICATIONS (DLA ENERGY JAN 2012)

Product to be supplied shall fully meet the requirements of the applicable specification(s) as indicated in the Supply Schedule, except as modified elsewhere in this contract. Unless otherwise indicated by the Contractor, prior to award and in accordance with the EVALUATION OF OFFERS contract provision, the product offered will be assumed to fully meet the applicable specification(s).

C-0002

C1.02

ASSIST DATABASE OF SPECIFICATIONS (DLA ENERGY MAR 2011)

Unless otherwise specified, current versions of defense or federal specifications and standards, military handbooks, commercial item Descriptions, qualified product lists, and other related technical documents cited in this solicitation/contract can be accessed from the Department of Defense (DoD) Acquisition Streamlining and Standardization Information System (ASSIST) database at https://assist.daps.dla.mil/ or http://dodssp.daps.dla.mil/ under ASSIST-Quick Search. ASSIST is the official source for all Defense Standardization Program documents and contains the most current information on documents prepared by DoD, as well as information on how to acquire referenced non-Government standards that have been adopted for DoD use. Those who register for an ASSIST account may establish profiles to receive automatic E-mail alerts when changes are planned or made to documents of interest by selecting criteria on the [Alert Portal Profile Maintenance] screens accessed from the [User Profile] menu. Users may also view or download a bi-monthly summary of changes to the ASSIST database from the DoD Single Stock Point website (http://dodssp.daps.dla.mil/) under the [ASSIST Update] menu.

C-0003

C16.14

FUEL, ETHANOL (PC&S) (DLA ENERGY JUL 2011)

In the event that a Federal, State, or local environmental requirement is more stringent than a specification contained in this contract, the Contractor shall deliver product that complies with the more stringent requirement. Supplies delivered under this contract shall conform to all Federal, State, and local environmental requirements applicable to the geographic location of the receiving activity on the date of delivery.

(a) PRODUCT PERFORMANCE REQUIREMENTS. Product shall conform to the latest revision of ASTM D5798.

(b) BLENDING. Product shall be blended prior to delivery. Manifold blending at time of delivery and blending in the receipt tank is not permitted. The resultant blended product must meet all performance requirements specified in the contract.

C-0004 C16.15

GASOLINE, AVIATION (GRADES 80/100LL) (DLA ENERGY SEP 2011)

Aviation Gasoline shall conform to the latest revision of ASTM D910 or Defense Standard 91-90.

C-0005

C16.23-2 COMMERCIAL MARINE GAS OIL MINIMUM REQUIREMENTS (BUNKERS) (DLA

ENERGY AUG 2012)

In delivering supplies and services under this contract, the Contractor shall conform to all Federal, State, and local environmental requirements applicable to the geographic location of the receiving activity on the date of delivery. The Contractor shall also comply with all applicable International Agreements, Treaties, Conventions, and the like to which the United States is a signatory or with whose terms the receiving activity has otherwise agreed to comply, including but not limited to, the requirements of MARPOL 73/78 Annex VI Regulations 14 & 18. The Contractor shall be responsible for determining the existence of all such requirements prior to the time deliveries are made. In the event that an International, Federal, State, and /or local environmental requirement, as identified above, is more stringent than a requirement contained in this contract, the Contractor shall deliver product(s) that complies with the more stringent requirement. Product(s) that fails to meet the more stringent requirement will be considered nonconforming. In the event that compliance with the more stringent requirement causes the contractor to incur additional costs, the contractor may request an equitable adjustment.

a) Product Classification

Product supplied under this contract shall conform to the requirements of ISO 8217; Fourth Edition dated 2010- 06-15 for DMA ONLY, with the following additional requirements:

b) SPECIFICATION MODIFICATIONS

1) Properties

ASTM D5453 or ASTM D1266 or

ASTM D1522 or ASTM D2622 or ASTM D3120 or ASMT D6920 or ASTM D7039 or ISO8754 or ISO14596 or ISO16591

1.0 mass % max.

i) Hydrogen sulfide testing is not required.

2) TESTING

i) For a total sulfur content of less than 0.05 mass % (500 ppm), ASTM D5453 is the recommended ASTM method.

ii) ASTM International Test Methods equivalent to the ISO test methods referenced in ISO 8217, Fourth Edition dated 2010-06-15 for DMA ONLY testing, are approved for use.

3) Environmental

i) In support of European Commission Directive 1999/32/EC, “Sulphur Provisions for Marine Gas Oils”, MGO delivered in European Union ports under this contract shall contain no more than 0.10 mass % (1000 ppm) sulfur.

ii) Specific ports where DLA Energy requires low sulfur (1000 ppm) MGO include: Algeciras, Spain; Alicante, Spain; Antwerp, Belgium; Augusta Bay, Italy; Barcelona, Spain; Bremerhaven/Nordenham, Germany; Cagliari, Italy; Cartagena, Spain; Catania, Italy; Copenhagen, Denmark; Gaeta, Italy; Genoa, Italy; Gibraltar, United Kingdom; Kiel, Germany; La Maddalena, Italy; La Spieza, Italy; Killingholme, United Kingdom; Lisbon, Portugal; Livorno, Italy; Malaga, Spain; Marseilles, France; Naples, Italy; Oslo, Norway; Palma de Mallorca, Spain; Portland, United Kingdom, Rotterdam, Netherlands; Southampton, United Kingdom; Toulon, France; and Trieste, Italy.

iii) Per 40 CFR Section 80.510, the Marine Gas Oil sulfur requirement for all deliveries at ports within the continental United States (CONUS) shall not exceed 0.05 mass % (500 ppm) sulfur.

c) ADDITIVES

i) The Marine Gas Oil shall contain no black dye.

d) OTHER REQUIREMENTS

1) Unless otherwise indicated by the Contractor in writing, prior to award, and in accordance with the EVALUATION (SHIP’S BUNKERS) provision, the product offered shall fully meet the applicable specification. The supplier shall provide to the receiving vessel a “Statutory Sample” of at least 400 mL in volume, taken from the receiving vessel’s inlet bunker manifold, together with a Bunker Delivery Note (BDN). This sample will be sealed and carry a sample tag that provides the documentation required per MARPOL 73/78 Annex VI Regulation 18

C-0006

C16.27

FUEL, BIODIESEL (B20) (DLA ENERGY JUN 2009)

In the event that a Federal, State, or local environmental requirement is more stringent than a specification contained in this contract, the Contractor shall deliver product that complies with the more stringent requirement. Supplies delivered under this contract shall conform to all Federal, State, and local environmental requirements applicable to the geographic location of the receiving activity on the date of delivery. Offered product shall conform to the following requirements that define a fuel suitable for use in automotive diesel engines:

(a) PRODUCT COMPOSITIONAL AND PERFORMANCE REQUIREMENTS. The finished fuel shall conform to ASTM D7467, with a biodiesel blend percentage of 20 +/- 1 percent, with the exception that the biodiesel component, per ASTM D6751, shall be derived solely from either virgin or used vegetable oils. Biodiesel derived from animal fats or tallow’s shall not be used. Product classification is shown below:

DLA ENERGY MAXIMUM

PRODUCT SULFUR

NATIONAL STOCK NUMBER PRODUCT NOMENCLATURE

CODE

CONTENT

RED DYE

9140-01-470-4520

Grade Number B20 S15

BDI

15 µg/g (ppm) No

(b) BLENDING. Product shall be blended prior to delivery. Manifold blending at time of delivery and blending in the receipt tank is not permitted. The resultant blended product must meet all performance requirements specified in the contract.

(c) LOW TEMPERATURE OPERABILITY. For fuel supplied during the months of October through March, the low temperature performance of B20 biodiesel shall be defined by the following property:

CLOUD POINT: Unless a more restrictive cloud point limit is specified in the contract schedule, the cloud point shall be equal to or lower than the tenth percentile minimum ambient temperature specified in Appendix X3 of ASTM D 7467.

(d) ENVIRONMENTAL PROTECTION AGENCY (EPA) REGISTRATION. B100 product must be EPA registered in accordance with 40 CFR Part 79, Registration of Fuels and Fuel Additives. The Contractor shall provide a copy of the EPA registration letter to the Contracting Officer at the time of offer.

C-0007

C16.69

FUEL SPECIFICATIONS (PC&S) (DLA ENERGY JUL 2012) – SEE OSP

D-0001

D12

DRUMS, CONTAINERS, AND PACKAGING (DLA ENERGY DEC 2011)

(a) Property Administrator, as used herein, means the individual so designated in the contract Schedule or pursuant to the following:

(1) ARMY, NAVY, OR MARINE CORPS PROPERTY. By the Ordering Officer.

(2) AIR FORCE PROPERTY. By the Director of Air Force Aerospace Fuels.

(b) The following requirements apply to containers:

(1) For domestic posts, camps, and stations, all drums, containers, and packaging to be furnished under this contract by the Contractor shall conform to and be filled and marked in accordance with MIL-STD-290E dated 1 May 1981 and Change Notice 2 dated 1 August 1985 except where the Schedule provides for delivery to be made in Contractor-furnished 55-gallon returnable drums. All such drums and containers shall be new or used—and of the type specified in the Schedule. The drums shall not be subject to return to the Contractor unless—otherwise provided in the Schedule.

(2) For overseas posts, camps, and stations, all 55-gallon drums to be furnished under this contract by the Contractor shall be filled and marked in accordance with the Level B requirements of MIL-STD-290E dated 1 May 1981 and Change Notice 2 dated 1 August 1985. All other containers and packaging to be furnished under this contract by the Contractor shall conform to and be filled and marked in accordance with Level A requirements of MIL-STD-290. New drums and containers shall be required unless otherwise specified in the Schedule.

(Reconditioned drums and the Contractor's colors will not be accepted unless specifically permitted.) If the Schedule indicates that drums are "resalable," the drums shall be subject to return to the Contractor at the point where they were received and the Contractor will be so notified. The Contractor shall allow the Government the amount specified in the Schedule. Notwithstanding any of the foregoing provisions to the contrary, the Contractor shall not be required to accept the return of any drums, without bungs or not in the same condition, except for reasonable wear and tear, as when delivered to the Government.

(3) For both overseas and domestic requirements, phosphate coatings are acceptable for use on drums and 5-gallon cans used for filling lubricating oils except that phosphate coatings shall not be used on interiors of drums and cans used for filling MIL-L-17331 lube oils, nor shall such drums and cans be fitted with zinc-coated closures. The interiors of these drums and cans shall also be free of fogging oils. The unit prices for the product to be furnished therein include the cost of such drums or containers, which shall become the property of the Government upon acceptance of the product contained therein.

(c) Where the Schedule provides for delivery to be made in Contractor-furnished 55-gallon returnable drums, such drums shall be of standard commercial quality suitable for shipment and storage of the product contained therein. Drums that are emptied within the allowable free period specified in the Schedule will be returned to the location where they were accepted by the Government, and the Contractor will be notified that they are available for pickup. For drums not returned within the allowable free period, the Government will pay as a deposit, upon receipt of the Contractor's invoice therefor, the amount per drum stated in the Schedule. However, if such drums are thereafter returned within the allowable return period specified in the Schedule to the point where they were received and the Contractor is so notified, the Contractor shall refund to the Government the amount of the deposit. If the drums have not been returned at the end of the return period specified in the Schedule, title thereof shall pass to the Government and the amount of the deposit shall be forfeited.