Attachment_A_13-R-0224.pdf

RFP SP0600-13-R-0224

ATTACHMENT A

A-1

SECTION F

DELIVERIES OR PERFORMANCE

F-0001 / F1.01-1 DELIVERY CONDITIONS FOR TRANSPORT TRUCKS, TRUCKS AND TRAILERS, AND TANK

WAGONS (DLA ENERGY JAN 2012)

IMPORTANT NOTE on EPA TESTING OF UNDERGROUND TANKS. If the "volumetric" method is used for annual EPA testing of underground tanks, the "topping off" of tanks for this test is outside the scope of DLA Energy requirements contracts.

(a) F.O.B. ORIGIN. On items calling for delivery at Contractor's refinery, terminal, or bulk plant f.o.b. transport truck, truck and trailer, or tank wagon—

(1) Supplies ordered hereunder shall be delivered, at Contractor's expense, into equipment specified in the

Schedule.

(2) Unless otherwise specified in the Schedule, all deliveries shall be made on the day specified in the delivery order unless otherwise authorized by the receiving activity during normal working hours of such activity, provided that the Contractor shall have received the order at least 48 hours prior to the day so specified.

(b) F.O.B. DESTINATION. On items calling for delivery f.o.b. destination by means of transport truck, truck and trailer, or tank wagon--

(1) The Contractor shall not be required to deliver by transport truck or truck and trailer a quantity less than a full load nor into more than one storage tank, with the following exceptions:

(i) An order placed under an item of this contract calling for delivery by transport truck of motor gasoline, fuel oil, diesel fuel, or kerosene, or, if this procurement is for Central America only, jet fuel, may require delivery of a quantity as low as 5,200 gallons whenever the activity is restricted either by a tank capacity or by a directive from receiving a larger quantity; and

(ii) Where the Schedule provides for multiple drop deliveries, the Contractor may be required to deliver into more than one storage tank. Where truck and trailer is the method of delivery specified, the Contractor may, at its option, make delivery by transport truck. In the case of deliveries in Alaska, where truck and trailer or transport truck is the method of delivery specified, the Contractor may, at its option, make delivery by tank wagon.

(2) Unless otherwise specified in the Schedule, all deliveries shall be made on the day specified in the delivery order unless otherwise authorized by the receiving activity during normal working hours of such activity, provided that the Contractor shall have received the order at least 48 hours prior to the day so specified.

(3) The Contractor shall not be required to deliver by tank wagon a quantity of less than 575 liters (or 150 gallons) but, at the Government's option, may be required to deliver into more than one storage tank.

(4) When delivery is made by tank wagon, such wagon shall be equipped with pump, meter, and a minimum of 100 feet (30 meters) of hose. Where delivery is made by transport truck or truck and trailer, such delivery equipment shall be equipped with a minimum of 15 feet of hose.

(5) When delivery is made by tank wagon, transport truck, or truck and trailer to a Government facility, the

Contractor shall present delivery equipment and product in such condition at destination so as to permit complete off-loading within the prescribed free time.

(6) Unless otherwise provided in the Schedule, free time for unloading trucks, transport trucks, or trucks and trailers shall be unlimited.

(7) When delivery is made by tank wagon, transport truck, or truck and trailer to a Government facility—

(i) The Contractor shall provide properly maintained delivery equipment and properly trained delivery personnel to reasonably assure that delivery can be made without damage to vegetation and asphalt pavement adjacent to storage facilities being filled. The Contractor’s delivery personnel who have not exercised reasonable care and delivery equipment that is poorly maintained may be refused entrance to the installation by the installation Commander.

(ii) The Contractor shall present delivery equipment and product in such condition at destination so as to permit complete off-loading within the prescribed free time.

F-0002 / F1.09-2 DETERMINATION OF INVOICE QUANTITY (PC&S) (DLA ENERGY JAN 2012)

(a) QUANTITY. The quantity of supplies furnished under this contract shall be determined as follows:

(1) F.O.B. DESTINATION.

(i) DELIVERIES BY TANKER OR BARGE.

(A) On items requiring delivery on an f.o.b. destination basis by tanker or barge, the quantity shall be determined on the basis of--

(1) Calibrated meters on the receiving tank system; or

(2) Receiving tank measurements.

(B) All quantities shall be converted to net gallons at 60 degrees Fahrenheit (or liters at 15 degrees Celsius).

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(ii) DELIVERIES BY RAIL TANK CAR.

(A) On items requiring delivery on an f.o.b. destination basis by rail tank car, the quantity of supplies furnished under this contract shall be determined (at the Government’s option) on the basis of--

(1) Calibrated meter on the receiving tank system;

(2) Weigh, using calibrated scales at the receiving location; or

(3) Receiving tank measurements.

(B) All quantities shall be converted to net gallons at 60 degrees Fahrenheit (or liters at 15 degrees Celsius).

(iii) DELIVERIES BY TANK TRUCK/TRUCK AND TRAILER/TANK WAGON.

(A) If the narrative requires a tank wagon (which is always equipped with a meter), that meter shall be used to determine quantity at time of delivery. The quantity shall be read directly from the meter. On items requiring delivery on a f.o.b.

destination basis by tank truck or truck and trailer, quantity shall be determined in the following order of preference:

(1) Calibrated meter on the receiving tank system

(2) Calibrated meter on the conveyance

(3) Weight using calibrated scales at the receiving location.

(4) Loading rack meter ticket. The ticket must be generated at the time of loading and be based on a calibrated loading rack meter. The loading rack ticket shall be mechanically annotated with the gross and net gallons (or gross and net liters), the observed and corrected API gravity (or density), and the temperature at which the product was measured.

(5) Receipt tank measurements (as identified in the Schedule).

(B) All quantities, other than delivery by tank wagon, shall be converted, either mechanically or manually, to net gallons at 60 degrees Fahrenheit (or liters at 15 degrees Celsius).

(C) If a loading rack meter ticket is used to determine quantity for a biodiesel blend, the quantity shall be converted to net (volume corrected) gallons at 60 degrees Fahrenheit (or liters at 15 degrees Celsius). The Contractor shall prepare separate loading rack meter tickets for the diesel portion and for the biodiesel blend stock B100 (the industry designation for pure biodiesel), hereinafter referred to as the B100 portion of the load. The B100 loading rack meter shall be recorded at gross

(ambient) temperature when the loading meter is not capable of providing a net (volume corrected) quantity. The total shall be the sum of the net diesel and gross B100. When the B100 loading rack meters are capable of providing a net (volume corrected) quantity, the total receipt quantity shall be the sum of the net diesel and the net B100.

(2) F.O.B. ORIGIN. All quantities shall be converted to net gallons at 60 degrees Fahrenheit (or liters at 15 degrees

Celsius).

(i) DELIVERIES INTO TANKER OR BARGE. On items requiring delivery at the Contractor's refinery, terminal, or bulk plant on an f.o.b. origin basis into a tanker or barge, the quantity shall be determined (at the Contractor's option) on the basis of--

(A) Calibrated meter; or

(B) Shipping/shore tank measurement.

(ii) DELIVERIES INTO RAIL TANK CAR. On items requiring delivery at the Contractor’s refinery, terminal, or bulk plant on an f.o.b. origin basis, the quantity shall be determined (at the Contractor’s option) on the basis of--

(A) Certified loading rack meter;

(B) Weight, using calibrated scales; or

(C) Certified capacity tables for the rail tank car.

(iii) DELIVERIES BY TANK TRUCK/TRUCK AND TRAILER/TANK WAGON.

(A) On items requiring delivery at the Contractor's refinery, terminal, or bulk plant on an f.o.b. origin basis, the quantity shall be determined (at the Contractor's option) on the basis of--

(1) Calibrated loading rack meter;

(2) Weight, using calibrated scales; or

(3) Certified capacity tables of the conveyance loaded.

(B) WATER BOTTOMS.

(1) Every delivery must be free of all water bottoms prior to discharge; and

(2) The Contractor is responsible for their removal and disposal.

(b) MEASUREMENT RESTRICTIONS. All methods of measurements described in this contract provision are subject to government safety and environmental restrictions, foreign or domestic. Such restrictions may prohibit, or render ineffective, a particular method in some cases.

(c) MEASUREMENT STANDARDS. All measurements and calibrations made to determine quantity shall be in accordance with the most recent edition of the API Manual of Petroleum Measurement Standards (MPMS). Outside the United

States, other technically equivalent national or international standards may be used. Certified capacity tables shall mean capacity tables prepared by an independent inspector or any independent surveyor to the aforementioned measurement and calibration standards. In addition, the following specific standards will be used as applicable:

(1) API MPMS Chapter 11.1, Temperature and Pressure Volume Correction Factors for Generalized Crude

Oils, Refined Products, and Lubricating Oils (this chapter is an adjunct to ASTM D 1250, IP 200 and ISO 91-1). Either the

2004 or 1980 version of the standard may be used. Either the printed tables (an adjunct to the 1980 version) or the computer

A-3 subroutine version of the standard may be used. In case of disputes, the computer subroutine and the 2004 version of the standard will be the referee method.

(i) For crude oils, JP4, and Jet B, use Volume I, Tables 5A and 6A; Volume VII, Tables 53A and 54A; or

Volume IV, Tables 23A and 24A.

(ii) For lubricating oils, use Volume XIII, Tables 5D and 6D; Volume XIV, Tables 53D and 54D; or Tables 23D and 24D (2004 version).

(iii) For all other fuels and fuel oils, use Volume II, Tables 5B and 6B; Volume VII, Tables 53B and 54B; or

Volume V, Tables 23B and 24B.

(iv) For chemicals/additives, use Volume III, Table 6C (or Volume IX, Table 54C) or volume correct in accordance with the product specification.

(v) Volume XII, Table 52, shall be used to convert cubic meters at 15 degrees Celsius to barrels at 60 degrees

Fahrenheit. Convert liters at 15 degrees Celsius to cubic meters at 15 degrees Celsius by dividing by 1,000. Convert gallons at 60 degrees Fahrenheit to barrels at 60 degrees Fahrenheit by dividing by 42. Should foreign law restrict conversion by this method, the method required by law shall be used.

(vi) As an option to (c)(1)(v), liters may be converted to gallons using Table F1.09A (see below). If this option is used, it must be agreed upon by both parties and shall remain in effect for the duration of the contract. Should foreign law restrict conversion by this method, the method required by law shall be stated in the offer.

(vii) If the original measurement is by weight and quantity is required by U.S. gallons, then--

(A) Volume XI, Table 8, shall be used to convert pounds to U.S. gallons at 60 degrees Fahrenheit.

(B) Volume XII of the adjunct to ASTM D 1250, Table 58, shall be used to convert metric tons to U.S.

gallons at 60 degrees Fahrenheit.

(2) API MPMS Chapter 4, Proving Systems. All meters used in determining product volume shall be calibrated using this standard with the frequency required by local regulation (foreign or domestic). If no local regulation exists, then the frequency of calibration shall be that recommended by the meter manufacturer or every 6 months, whichever is more frequent. A meter calibration log/calibration certificates shall be maintained which, as a minimum, contains--

(i) Number/name of each meter;

(ii) Calibration frequency;

(iii) Date of the last calibration;

(iv) Due date for next calibration;

(v) Name and signature of the person performing the calibration;

(vi) Traceability to master meter/prover used for calibration; and

(vii) Calibration report number.

Each meter shall be marked with the date of the last calibration and due date for the next calibration. All calibration meter recordings and logs/certificates shall be kept on file and made available upon request. All calibration records

(including logs or certificates) shall be retained on file for a period of three years.

(3) API MPMS Chapter 12, Calculation of Petroleum Quantities. All calculations of net quantities shall be made in accordance with this chapter. Outside the U.S., use of tank shell correction factor is not required unless its use is a customary practice for custody transfer.

TABLE F1.09-2A

CONVERSION FACTOR TABLE

Density @ 15°C

Gallons @ 60°F to Liters @ 15°C, Multiply by

Liters @ 15°C to Gallons @ 60°F, Multiply by

0.723 – 0.768 3.78286

0.264350

0.769 – 0.779

3.78309

0.264334

0.780 – 0.798

3.78334

0.264317

0.799 – 0.859

3.78356

0.264301

0.860 – 0.964

3.78381

0.264284

0.965 – 1.074

3.78405

0.264267

(d) SHIPPING DOCUMENTATION. The following information shall be mechanically annotated on the contractor’s shipping document (such as a truck’s metered ticket) when the document is used to determine quantity under this contract: gross and net

A-4 quantity (gallons or liters, as required), observed and corrected API gravity/density, and the temperature (Fahrenheit or Celsius) at which the product was measured.. The following exceptions apply:

(1) Where government documents are the sole basis for payment, such as DD Form 250/250-1s, the information is not required.

(2) Where conveyances with temperature-compensating meters are used, the shipping document shall only be annotated with the corrected API gravity/density, the net quantity, and a statement that a temperature-compensating meter was used to determine net quantity.

(3) Where volume correction for temperature is not required in accordance with Paragraph (a)(1)(iii)(B) above, the shipping document shall be only be annotated with the API gravity (or density), gross quantity, and a statement that volume correction was not required.

(e) RIGHT TO REPRESENTATIVE. For f.o.b. origin deliveries, the Government has the right to have a representative present to witness the measurement of quantity. For f.o.b. destination deliveries, the Contractor has the right to have a representative present to witness the delivery and measurement of quantity.

(f) DISCREPANCIES . For f.o.b. destination deliveries utilizing volume corrected loading rack meter tickets to determine quantity:

(1) The quantities shown on the shipping document (volume corrected loading rack meter tickets) will be accepted as the quantity received, provided that any differences between that quantity and the Government’s receipt tank measurement at destination does not exceed one half of one percent (0.5%) of the amount on the shipping document.. If the difference is greater than one half of one percent (0.5%), the quantity determined by the Government using receipt tank measurements at destination will be used for acceptance and payment provided receipt tank measurements are identified in the Schedule as an approved quantity determination method for that line item. Quantity measurements using the methods specified in section (a)(1)(iii)(A) (1-

3) above will be used for acceptance and payment regardless of any discrepancy with a loading rack meter ticket.

(2) If, the Government’s receipt tank quantity measurement varies by more than one half of one percent (0.5%) from the Contractor’s quantity measurement, the parties may conduct a joint investigation) of the variation in order to identify the cause of the discrepancy. Any quantity discrepancy that cannot be settled by the parties and results in a dispute shall be resolved under the Disputes provisions of the contract.

SECTION G

CONTRACT ADMINISTRATION DATA

G-0001 / G150.03-1 PAPERLESS ORDERING AND RECEIPT TRANSACTION SCREENS (PORTS) INTERNET

APPLICATION (DLA ENERGY JAN 2012)

APPLICABLE TO DoD ACTIVITES ONLY.

(a) CONTRACTOR PASSWORD. The Contractor shall use the Paperless Ordering and Receipt Transaction

Screens (PORTS) Internal application to access electronically signed written orders (SF1449), as described in (b) below and for transmitting receipt documents to the Activity and invoices to the payment office, as identified in (d) below. PORTS will provide email notifications of orders. To gain access to PORTS and to receive email notifications, the Contractor will furnish a list of individuals to the DLA Energy Contracting Officer providing name(s), email address(es), phone and facsimile number(s). The

Contractor personnel will also register in the Account Management and Provision System (AMPS) and request PORTS roles(s).

In addition, the Contractor personnel will be required to recertify annually in AMPS to retain PORTS access or receipt of email notifications.

(b) PREPARATION AND TRANSMISSION OF ORDERS AND CALLS AGAINST ORDERS.

(1) The Government may issue an order for a specific delivery or a series of deliveries (e.g., several deliveries during a week). The Government may also elect to issue an order covering a longer period (including monthly orders) and make periodic calls against these orders designating specific delivery dates, times, and quantities.

(2) Orders, and calls against orders, may be issued orally or in writing. An oral delivery order for fuel shall be considered issued by the Government when it is verbally assigned a delivery order number. For all orders, the appropriate ordering office/officer will provide the Contractor, via the PORTS Internet application, with an electronically signed written order, SF 1449, within 24 hours or one business day after issuing the oral order. (Once the Ordering Officer has completed the web page order, an email will be sent to the Contractor to provide notice that the order is available on the contract-specific web page. The order will also be submitted to the payment office.) An oral order shall provide the required advance notice to the

Contractor and the following information: Order number; contract number; item number; quantity; delivery location; any applicable taxes, which should be billed as a separate item on the invoice; and the required delivery date. Regardless of the unit price cited on the written order, the office designated to make payments on the written order will pay the applicable unit price in effect under the ECONOMIC PRICE ADJUSTMENT (PC&S) provision.

(3) Calls against previously issued orders must be confirmed in writing within 24 hours or one business day via email message. The email confirmation will reference the previously issued order number and item number and designate specific delivery location, dates, and quantity to be delivered against that order.

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(4) The Contractor’s nonreceipt of a written or electronic confirmation of an oral order or oral call against a written or electronic order does not itself relieve the Contractor from its obligation to perform in accordance with the oral order or oral call against a written or electronic order. The Contractor should contact the DLA Energy Contracting Officer if problems are experienced with receipt of the electronic or written confirmation.

(c) COMMERCIAL RECEIPTS.

(1) The Contractor shall provide a commercial receipt (bill of lading, metered ticket, or delivery ticket) upon completing delivery. The Government representative may date and sign the commercial receipt and will be provided with a legible copy. The following information shall be stated on the commercial receipt:

(i) Item number;

(ii) Order number;

(iii) Type of fuel delivered;

(iv) Date of the delivery into the Government’s tank(s);

(v) Delivered quantity and, if volume correction is required in accordance with the DETERMINATION OF

QUANTITY (PC&S) provision, the fuel temperature and API gravity. If temperature compensating meters are used, only the API gravity and delivered quantity are recorded;

(vi) Tank identifier determined by the base; and

(vii) Any other required information specified in the narrative of the Schedule for the item.

(2) The Contractor will maintain all signed receipts as evidence of delivery and will provide them to the

Government upon request, as dictated by the CONTRACT TERMS AND CONDITIONS - COMMERCIAL ITEMS (PC&S)

(PORTS INTERNET APPLICATION)

provision. The records will be annotated with “NONTAXABLE USE ONLY.

PENALTY FOR TAXABLE USE” where applicable.

(d) PREPARATION AND TRANSMISSION OF THE MATERIAL INSPECTION AND RECEIVING

REPORT (DD FORM 250)/INVOICE. At the time of each delivery of supplies or services under this contract, the Contractor shall prepare and furnish to the Government a Material Inspection and Receiving Report in the manner and to the extent required by Appendix F of the Defense FAR Supplement, Material Inspection and Receiving Report, except as noted in this provision.

The Contractor, or its designee, shall key the following information from the commercial receipt(s) into the contract-specific web pages for generation of the continuation page and the first page of the DD Form 250 document upon accessing the web screens per the instructions to be provided on the DLA Energy homepage.

(1) On the first page of the web screen for creating a new DD Form 250, the Contractor will select the appropriate line item and order/amendment number from a pull-down list (which already depicts the associated contract number, requisition number, and mode of delivery). The Contractor must insert the shipment date reflecting the date fuel was actually delivered. On the next screen, the Contractor will enter a unique invoice number, confirm the escalated unit price (which may also be corrected if applicable) and any discount terms offered other than net 30 days, and select the appropriate method of quantity determination (either loading rack method or nonloading rack method). The loading rack method is selected if the quantity delivered is determined based on loading rack meter tickets from the terminal; the nonloading rack method is selected if quantity determination is based on any other method as specified in the DETERMINATION OF QUANTITY (PC&S) provision.

(2) On the next screen, the Contractor will enter sequentially the following information from each commercial ticket, which will be depicted in three columns on the DD Form 250 continuation page:

(i) The commercial ticket number;

(ii) The quantity indicated on the commercial receipt, (system will round quantity up or down), determined in accordance with the DETERMINATION OF QUANTITY provision; and

(iii) The tank identifier determined by the Activity (such as a building number). This tank identifier is required only for auto-fill items.

The total volume delivered to the Activity as input by the Contractor will automatically be entered into Block 17 of the DD Form 250 as a whole number; the required sequential shipment number under the order will automatically be entered into Block 2. If there is disagreement between the Contractor and the Government as to the quantity delivered, the DLA Energy

Contracting Officer will be promptly notified. (See the CONTRACT TERMS AND CONDITIONS – COMMERCIAL ITEMS

(PC&S) (PORTS INTERNET APPLICATION) provision.)

(3) Upon completion of the DD Form 250/invoice web screen document, the Contractor or designee will key the submission for processing, which automatically triggers two actions:

(i) An email message to the Activity. The email message will request approval of the DD Form 250 and inform the Activity to access the web page to accomplish this by electronic signature or it will specify order number, shipment date and number, item, quantity shipped and all delivery tickets that apply.

(ii) An electronic submission to the payment office and Contractor notification of that invoice submission. The invoice transaction must be received no later than 5:30 p.m. to be considered received that day. Invoices received after 5:30 p.m. shall be considered received the next United States Government business day.

(4) AIR FORCE ONLY: The Government’s Authorized Representative will either—

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(i) Verify the invoiced amount and return an email message confirming the quantity invoiced. The

Contractor will receive an email message from the activity that the invoiced amount has been confirmed; OR

(ii) Dispute the quantity being invoiced. Advise the Contractor by email of the reason (such as shipment date or quantity error). In this case, the Contractor will then submit a revised DD Form 250/invoice to the Activity (and to the payment office)via PORTS; the Contractor need only key in the data field(s) requiring correction and resubmit for processing.

The DD Form 250 must be resubmitted within 24 hours or one business day of the Activity’s notification. If the Contractor disagrees with the Activity’s notification of disagreement, the Contractor may contact the DLA Energy Contracting Officer. (See the CONTRACT TERMS AND CONDITIONS – COMMERCIAL ITEMS (PC&S) (PORTS INTERNET APPLICATION) provision.

(iii) If any errors are discovered on the Contractor’s DD Form 250 after submission to the Activity, but before either confirmation or notification of disagreement, the Contractor will promptly correct by clicking on the “Correct Submitted

DD Form 250/invoice” key and entering corrections of any prior errors. When submitted to the Activity for verification/confirmation, the DD Form 250/invoice document is automatically labeled with the words “CORRECTED COPY.”

As in (d)(4)(i) and (ii) above, the Contractor is notified with automatic posting of the electronic transmission to the payment office.

(5) OTHER DoD ONLY: The Government’s Authorized Representative will either—

(i) Approve or accept the DD Form 250 document by electronic signature and submit the document via the

PORTS Internet application to the payment office. The Contractor will receive an email message via the Internet application that the document has been approved and submitted to the payment office; OR

(ii) Reject the DD Form 250 document, advising the Contractor by email of the reason for rejection (such as shipment date or quantity error). In this case, the Contractor will then submit a revised DD Form 250/invoice to the Activity (and to the payment office) via PORTS; the Contractor need only key in the data field(s) requiring correction. If the Contractor fails to submit a revised DD Form 250 within 24 hours or one business day of the Activity’s rejection notification based on discrepancy in quantity or shipment date, in order to avoid potential delays in payment the Activity may proceed to change either the quantity or shipment date to that which the Activity had asserted. These changes will be forwarded to both the payment office and the

Contractor. If the Contractor still disagrees with the Activity’s change(s), the Contractor may contact the DLA Energy

Contracting Officer. (See the CONTRACT TERMS AND CONDITIONS – COMMERCIAL ITEMS (PC&S) (PORTS

INTERNET APPLICATION) provision.)

(iii) If any errors are discovered on the Contractor’s DD Form 250 after submission to the Activity, but before either approval or rejection, the Contractor will promptly advise the Activity by either telephone or email in order that the document can be rejected with an accurate notation and then revised (see (d)(5)(ii) above) as soon as possible.

(iv) Upon signature of approval/acceptance on the DD Form 250 by the Government representative, any corrections to the document must be performed via the web page. The Contractor will click on the “Correct Submitted DD Form

250/Invoice” key and enter corrections of any prior errors. When submitted to the Activity for approval, the DD Form

250/invoice document is automatically labeled with the words “CORRECTED COPY.” As in (d)(5)(i) and (ii) above, the

Contractor is notified, with automatic posting of the electronic transmission to the payment office.

(6) Invoices will be handled in accordance with the Prompt Payment Act (31 U.S.C. 3903) and Office of

Management and Budget (OMB) Circular A-125, Prompt Payment.

(7) The Government will not be liable to the Contractor for any incidental or consequential damages resulting from any delay, omission, or error in the transmission or receipt of invoices under the Internet application.

(8) Electronic data transmitted by the Internet application will be admissible as evidence on the same basis as customary paper documents. The parties will be legally bound by the electronic documents.

(e) REQUIRED USE OF PORTS INTERNET APPLICATION.

(1) Use of PORTS, as described above, is required except in the cases indicated in (g) below and as identified exceptions to electronic invoicing under the CONTRACT TERMS AND CONDITIONS – COMMERCIAL ITEMS (PC&S)

(PORTS INTERNET APPLICATION) – ADDENDUM provision.

(2) In the event there is an interruption of PORTS service, fax/paper invoices may be submitted to DFAS

Columbus only after the Contractor has contacted the DLA Energy Contracting Officer and is given authorization to do so. A four-digit confirmation code will be provided by the DLA Energy Contracting Officer and must be inserted (handwritten or typed) on each fax/paper invoice. DFAS Columbus will return any fax/paper invoice that does not contain the four-digit confirmation code. Fax/paper invoices must contain information required for a proper invoice per instructions contained in the

CONTRACT TERMS AND CONDITIONS – COMMERCIAL ITEMS (PC&S) (PORTS INTERNET APPLICATION) provision. Once the difficulties with PORTS has been resolved, the Contractor must revert to using PORTS to invoice.

(f) PAYMENT.

(1) Payment shall be made in accordance with the terms as stated in the CONTRACT TERMS AND

CONDITIONS - COMMERCIAL ITEMS (PC&S) (PORTS INTERNET APPLICATION) provision. Notwithstanding any

A-7 permissible variation percentage between the ordered and delivered quantity, payment is authorized for a percentage not to exceed

120 percent of the ordered quantity.

(2) Payment terms for an invoice received via electronic PORTS submission by the payment office will be net

30 days from date of receipt of a proper invoice. See (d)(3) above. Payment terms for invoices other than by the electronic

PORTS transmission will also be net 30 days from receipt of a proper invoice unless a discount is offered and accepted by the payment office.

(g) INVOICING DETENTION AND DEMURRAGE COSTS. Detention costs, allowable only on tank truck deliveries (not applicable to multiple drop tank truck or any tank wagon deliveries), and demurrage costs for barge/tanker deliveries will be the sole responsibility of the Activity incurring them. The Contractor will submit invoices for detention or demurrage costs directly to the Activity receiving the product. These provisions are applicable to DLA-owned/capitalized as well as non-DLA-owned/noncapitalized products. If the receiving activity is an Army activity, a copy of the detention/demurrage cost invoice must also be furnished to the following address:

US Army Petroleum Center

Room 0522, Mail Stop 6241

8725 John J. Kingman Road

Fort Belvoir, VA 22060-6241

SECTION K

REPRESENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS OF OFFERORS OR

RESPONDENTS

52.229-6 TAXES -- FOREIGN FIXED-PRICE CONTRACTS (FEB 2013)

(a) To the extent that this contract provides for furnishing supplies or performing services outside the United States and its outlying areas, this clause applies in lieu of any Federal, State, and local taxes clause of the contract.

(b) Definitions. As used in this clause--

“Contract date” means the date set for bid opening or, if this is a negotiated contract or a modification, the effective date of this contract or modification.

“Country concerned” means any country, other than the United States and its outlying areas, in which expenditures under this contract are made.

“Tax” and “taxes” include fees and charges for doing business that are levied by the government of the country concerned or by its political subdivisions.

“All applicable taxes and duties” means all taxes and duties, in effect on the contract date, that the taxing authority is imposing and collecting on the transactions or property covered by this contract, pursuant to written ruling or regulation in effect on the contract date.

“After-imposed tax” means any new or increased tax or duty, or tax that was exempted or excluded on the contract date but whose exemption was later revoked or reduced during the contract period, other than excepted tax, on the transactions or property covered by this contract that the Contractor is required to pay or bear as the result of legislative, judicial, or administrative action taking effect after the contract date.

“After-relieved tax” means any amount of tax or duty, other than an excepted tax, that would otherwise have been payable on the transactions or property covered by this contract, but which the Contractor is not required to pay or bear, or for which the Contractor obtains a refund, as the result of legislative, judicial, or administrative action taking effect after the contract date.

“Excepted tax” means social security or other employment taxes, net income and franchise taxes, excess profits taxes, capital stock taxes, transportation taxes, unemployment compensation taxes, and property taxes. “Excepted tax” does not include gross income taxes levied on or measured by sales or receipts from sales, property taxes assessed on completed supplies covered by this contract, or any tax assessed on the Contractor’s possession of, interest in, or use of property, title to which is in the U.S.

Government.

(c) (1) Unless otherwise provided in this contract, the contract price includes all applicable taxes and duties, except taxes and duties that the Government of the United States, and the government of the country concerned have agreed shall not be applicable to expenditures in such country by or on behalf of the United States except as provided in subparagraph (c)(2) of this clause.

(2) Taxes imposed under 26 U.S.C. 5000C may not be—

(i) Included in the contract price; nor

(ii) Reimbursed.

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(d)(1) Except as provided in subparagraph (d)(2) of this clause, the contract price shall be increased by the amount of any after-imposed tax or of any tax or duty specifically excluded from the contract price by a provision of this contract that the

Contractor is required to pay or bear, including any interest or penalty, if the Contractor states in writing that the contract price does not include any contingency for such tax and if liability for such tax, interest, or penalty was not incurred through the

Contractor’s fault, negligence, or failure to follow instructions of the Contracting Officer or to comply with the provisions of paragraph (i) below.

(2) The contract price may not be increased to offset taxes imposed under 26 U.S.C. 5000C.

(e) The contract price shall be decreased by the amount of any after-relieved tax, including any interest or penalty. The

Government of the United States shall be entitled to interest received by the Contractor incident to a refund of taxes to the extent that such interest was earned after the Contractor was paid by the Government of the United States for such taxes. The

Government of the United States shall be entitled to repayment of any penalty refunded to the Contractor to the extent that the penalty was paid by the Government.

(f) The contract price shall be decreased by the amount of any tax or duty, other than an excepted tax, that was included in the contract and that the Contractor is required to pay or bear, or does not obtain a refund of, through the Contractor’s fault, negligence, or failure to follow instructions of the Contracting Officer or to comply with the provisions of paragraph (i) below.

(g) No adjustment shall be made in the contract price under this clause unless the amount of the adjustment exceeds

$250.

(h) If the Contractor obtains a reduction in tax liability under the United States Internal Revenue Code (Title 26, U.S.

Code) because of the payment of any tax or duty that either was included in the contract price or was the basis of an increase in the contract price, the amount of the reduction shall be paid or credited to the Government of the United States as the Contracting

Officer directs.

(i) The Contractor shall take all reasonable action to obtain exemption from or refund of any taxes or duties, including interest or penalty, from which the United States Government, the Contractor, any subcontractor, or the transactions or property covered by this contract are exempt under the laws of the country concerned or its political subdivisions or which the governments of the United States and of the country concerned have agreed shall not be applicable to expenditures in such country by or on behalf of the United States.

(j) The Contractor shall promptly notify the Contracting Officer of all matters relating to taxes or duties that reasonably may be expected to result in either an increase or decrease in the contract price and shall take appropriate action as the

Contracting Officer directs. The contract price shall be equitably adjusted to cover the costs of action taken by the Contractor at the direction of the Contracting Officer, including any interest, penalty, and reasonable attorneys’ fees.

SECTION L

INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS OR RESPONDENTS

52.215-9023 REVERSE AUCTION (NOV 2012)

The Contracting Officer may utilize on-line reverse auctioning as a means of conducting price discussions under this solicitation. If the Contracting Officer does not conduct a reverse auction, award may be made on the basis of initial offers or following discussions not using reverse auctioning as a pricing technique. If the Contracting Officer decides to use on-line reverse auctioning to conduct price negotiations, the Contracting Officer will notify offerors of this decision and the following provisions will apply.

(a) The award decision will be made in accordance with the evaluation factors as set forth in the solicitation. The reverse on-line auction will be used as a pricing technique during discussions to establish the final offered prices from each offeror. These prices will be used in conjunction with the evaluation factors stated elsewhere in the solicitation in order to make the award decision in accordance with the basis for award stated in the solicitation.

(b) Following the decision to conduct discussions using on-line reverse auctioning as a pricing technique, the

Contracting Officer or his/her representative will provide offerors determined to be in the competitive range with information concerning the on-line auction process. The Government intends to use a commercial web-based product to conduct the reverse auction.

(c) Prior to or simultaneously with conducting the on-line reverse auction, the Contracting Officer may hold discussions with the offerors concerning matters appropriate for discussion, such as issues involving technical proposals or unbalanced pricing.

(d) The lowest offeror’s price(s) for each round of the reverse auction will be disclosed to other offerors and anyone else having authorized access to the on-line auction. This disclosure is anonymous, meaning that each offeror’s identity will be concealed from other offerors (although it will be known to the Government; only a generic identifier will be used for each offeror’s proposed pricing, such as “Offeror A” or “lowest-priced offeror”). By submitting a proposal in response to the solicitation, offerors agree to participate in the reverse auction and that their prices may be disclosed, including to other offerors, during the reverse auction.

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(e) The reverse auction system currently in use designates offers as "Lead," meaning the current low price in that auction, or "Not Lead," meaning not the current low price in that auction. In the event of a tie offer, the reverse auction provider's system designates the first offer of that price as "Lead" and the second or subsequent offer of that price as "Not Lead." Offerors shall not submit a tie offer, since this is inconsistent with the purpose of the reverse auction. If a tie offer is submitted, the "Not

Lead" offeror that submitted the tie offer must offer a changed price; it will be ineligible for award if the final price in the auction is the tie offer price.

(f) An offeror's final auction price at the close of the reverse auction will be considered its final proposal revision. No price revisions will be accepted after the close of the reverse auction, unless the Contracting Officer decides that further discussions are needed and final proposal revisions are again requested in accordance with Federal Acquisition Regulation (FAR)

15.307, or the Contracting Officer determines that it would be in the best interest of the Government to re-open the auction.

(g) The following information is provided regarding the procedures to be followed if a reverse auction is conducted.

(1) Each offeror identified by the Contracting Officer as a participant in the reverse auction will be contacted by Defense Logistic Agency’s commercial reverse auction service provider to advise the offeror of the event and to provide an explanation of the process.

(2) In order for an Offeror to participate in the reverse auction, such offeror must agree with terms and conditions of the entire solicitation, including this provision, and agree to the commercial reverse auction service provider’s terms and conditions for using its service. Information concerning the reverse auction process and the commercial service provider’s terms and conditions is embedded within the email notification sent by the on-line reverse auction pricing tool system administrator.

(3) Offerors shall secure the passwords and other confidential materials provided by the commercial reverse auction service provider or the Government and ensure they are used only for purposes of participation in the reverse auction. Offerors shall keep their own and other offerors’ pricing in confidence until after contract award.

(4) Any offeror unable to enter pricing through the commercial reverse auction service provider’s system during a reverse auction must notify the Contracting Officer or designated representative immediately. The Contracting

Officer may, at his/her sole discretion, extend or re-open the reverse auction if the reason for the offeror’s inability to enter pricing is determined to be without fault on the part of the offeror and outside the offeror’s control.

(5) The reverse auction will be conducted using the commercial reverse auction service provider’s website as embedded in the email notification. Offerors shall be responsible for providing their own computer and internet connection.

(6) Training:

(i) The commercial reverse auction service provider and/or a Government representative will provide familiarization training to offerors’ employees; this training may be provided through written material, the commercial reverse auction service provider’s website, and/or other means.

(ii) An employee of an offeror who successfully completes the training shall be designated as a 'trained offeror.' Only trained offerors may participate in a reverse auction. The Contracting Officer reserves the right to request that offerors provide an alternate offeror employee to become a 'trained offeror.' The Contracting Officer also reserves the right to take away the 'trained offeror' designation from any trained offeror who fails to abide by the solicitation’s or commercial reverse auction service provider’s terms and conditions.

52.225-25 PROHIBITION ON CONTRACTING WITH ENTITIES ENGAGING IN CERTAIN ACTIVITIES OR

TRANSACTIONS RELATING TO IRAN—REPRESENTATION AND CERTIFICATIONS. (DEC 2012)

(a) Definitions. As used in this provision--

Person--

(1) Means--

(i) A natural person;

(ii) A corporation, business association, partnership, society, trust, financial institution, insurer, underwriter, guarantor, and any other business organization, any other nongovernmental entity, organization, or group, and any governmental entity operating as a business enterprise; and

(iii) Any successor to any entity described in paragraph (1)(ii) of this definition; and

(2) Does not include a government or governmental entity that is not operating as a business enterprise.

Sensitive technology—

(1) Means hardware, software, telecommunications equipment, or any other technology that is to be used specifically—

(i) To restrict the free flow of unbiased information in Iran; or

(ii) To disrupt, monitor, or otherwise restrict speech of the people of Iran; and

(2) Does not include information or informational materials the export of which the President does not have the authority to regulate or prohibit pursuant to section 203(b)(3) of the International Emergency Economic Powers Act (50

U.S.C. 1702(b)(3)).

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(b) The offeror shall email questions concerning sensitive technology to the Department of State at

CISADA106@state.gov.

(c) Except as provided in paragraph (d) of this provision or if a waiver has been granted in accordance with 25.703-4, by submission of its offer, the offeror--

(1) Represents, to the best of its knowledge and belief, that the offeror does not export any sensitive technology to the government of Iran or any entities or individuals owned or controlled by, or acting on behalf or at the direction of, the government of Iran;

(2) Certifies that the offeror, or any person owned or controlled by the offeror, does not engage in any activities for which sanctions may be imposed under section 5 of the Iran Sanctions Act. These sanctioned activities are in the areas of development of the petroleum resources of Iran, production of refined petroleum products in Iran, sale and provision of refined petroleum products to Iran, and contributing to Iran's ability to acquire or develop certain weapons or technologies; and

(3) Certifies that the offeror, and any person owned or controlled by the offeror, does not knowingly engage in any transaction that exceeds $3,000 with Iran’s Revolutionary Guard Corps or any of its officials, agents, or affiliates, the property and interests in property of which are blocked pursuant to the International Emergency Economic Powers

Act (50 U.S.C. 1701 et seq.) (see OFAC’s Specially Designated Nationals and Blocked Persons List at http://www.treasury.gov/ofac/downloads/t11sdn.pdf ).

(d) Exception for trade agreements. The representation requirement of paragraph (c)(1) and the certification requirements of paragraphs (c)(2) and (c)(3) of this provision do not apply if—

(1) This solicitation includes a trade agreements notice or certification (e.g., 52.225-4, 52.225-6, 52.225-12, 52.225-24, or comparable agency provision); and

(2) The offeror has certified that all the offered products to be supplied are designated country end products or designated country construction material.

(End of provision)

SECTION M

EVALUATION FACTORS FOR AWARD

M-0001 / M55 CONVERSION FACTORS (DLA ENERGY MAR 2007)

(a) This provision applies to all products except lubricating oils.

(b) The offeror should use conversion factors that reflect its product characteristics and submit prices and transportation rates in the requested units. In the event prices or transportation rates are not submitted in the requested units, the following conversion factors based on an assumed density for the product will be used by DLA Energy in the evaluation of the offer.

(1) TABLE I.

One Imperial Gallon = 1.20095 U.S. Gallons at the same temperature

One Liter = 0.264172 U.S. Gallons at the same temperature

One Cubic Meter (1,000 liters) = 6.2898 Barrels at the same temperature

One U.S. Barrel = 42 U.S. Gallons at the same temperature

One Kilometer = 0.62137 Miles

One Mile = 1.6093 Kilometers

One Nautical Mile = 1.15 Statute Miles

(2) TABLE II.

DENSITY TYPICAL

PRODUCT @15oC @60oF

BARRELS PER GALLONS PER LITERS PER BARRELS PER GALLONS PER

Kg/m3 API METRIC TON METRIC TON METRIC TON LONG TON LONG

TON

AUTOMOTIVE

GASOLINE (ALL) 744.9 58.4 8.462 355.42 1342.46 8.598 361.12

AVIATION

GASOLINE (ALL) 716.3 66.0 8.801 369.66 1396.06 8.943 375.59

mailto:CISADA106@state.gov http://www.treasury.gov/ofac/downloads/t11sdn.pdf

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BURNER FUEL OILS

FUEL OIL NO. 1 812.8 42.5 7.753 325.61 1230.31 7.877 330.83

FUEL OIL NO. 2 846.9 35.5 7.440 312.49 1180.78 7.560 317.51

FUEL OIL NO. 4 914.2 23.2 6.891 289.44 1093.85 7.002 294.09

FUEL OIL NO. 5

LIGHT 954.2 16.7 6.602 277.27 1048.00 6.707 281.71

FUEL OIL NO. 5

HEAVY 960.7 15.7 6.557 275.39 1040.91 6.662 279.81

FUEL OIL NO. 6 976.6 13.3 6.450 270.90 1023.96 6.554 275.25

DIESEL FUELS

NO. 1 DIESEL (ALL) 818.9 41.2 7.695 323.17 1122.15 7.818 328.36

NO. 2 DIESEL (ALL)

& GAS OIL 839.3 37.0 7.507 315.30 1191.47 7.628 320.36

INTERMEDIATE FUEL OILS

IFO 180 965.3 15.0 6.526 274.09 1035.95 6.630 278.48

IFO 380 973.9 13.7 6.468 271.65 1026.68 6.572 276.01

JET FUELS

JP4/JET B 764.6 53.5 8.243 346.22 1307.87 8.376 351.78

JP5 819.9 41.0 7.686 322.80 1219.66 7.809 327.98

JP8/JET A1/F34/TS1 805.9 44.0 7.820 328.42 1240.85 7.945 333.69

JET A 814.2 42.2 7.739 325.04 1228.20 7.863 330.26

KEROSINES (ALL) 815.2 42.0 7.730 324.68 1226.69 7.854 329.88

MARINE GAS OIL 839.3 37.0 7.507 315.30 1191.47 7.628 320.36

NAPHTHA 731.1 62.0 8.623 362.16 1367.80 8.761 367.97

NAVAL DISTILLATE

FUEL (F76) AND

DFW (F75) 844.3 36.0 7.463 313.43 1184.41 7.582 318.46

(3) TABLE III.

ASSUMED DENSITY

PRODUCT 20 deg C/20 deg C g/mL lb/gal Kg/gal

FSII DIEGME 1.025 8.561 3.884