WP_2014_Preproposal_Conference_Slides_Briefing_Slides.pdf

1 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

DEFENSE LOGISTICS AGENCY

AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY

WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

DLA Energy Western Pacific

SP0600-14-R-0077

Preproposal Conference

May 15, 2014

2 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

DLA Energy Points of Contact:

• Division Chief: Candis Schiefer x9307

• Contracting Officer: Chris Boeding x9651

• Contract Specialists: Chancley Meadows x9254

Kathryn Moore x8563

• Reverse Auction: Bill MacLaren x8426

Vendor Introductions

Welcome / Introductions

3 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

May 15, 2014 / Kabeiseman Conference Room

• Welcome / Introductions

• Program Description

• Solicitation Overview

• Contract Performance Assessment Reporting System (CPARS)

• Inventory Management

• Quality

• Bid Evaluation Model (BEM)

• Bulk Reverse Auction / Procurex

• Question & Answer Session

Agenda

4 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

May 16, 2014 / Room 2421

• Enterprise Business System (EBS)

• System for Award Management (SAM)

• DLA Internet Bid Board System (DIBBS)

• Wide Area Workflow (WAWF)

• MyInvoice

• System Registration Assistance

• WAWF Demonstration

Agenda

5 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Chris Boeding

Contracting Officer

703-767-9651

Christopher.Boeding@dla.mil

Contracting Officer mailto:Chris.boeding@dla.mil

6 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

• Delivery Period:

- January 1, 2015 through December 31, 2015 plus a 30-day carry-over period

• Requirements:

- F76, JA1, JP5, JP8

• Method of Delivery:

- Tanker, Railcar, Barge, Pipeline, Tank Truck

• Customers Served:

- Various Western Pacific and Middle East Military/DoD Facilities

• Responsible Supply Chain: DLA Energy

Program Description

7 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Solicitation Overview

• Statement of Need:

Estimated requirement numbers are based on past consumption as received from DLA Energy Inventory and Distribution demand planning considering historical trends, and service input on mission changes:

Product Quantity (USG) Classification

F76 206,617,000 Military

JA1 207,000,000 Commercial

JP5 94,270,000 Military

JP8 96,880,000 Military

8 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Solicitation Overview

• Contract Type:

- Indefinite Delivery, Indefinite Quantity (IDIQ) contracts with 90% minimum guarantee

- Fixed-Price with Economic Price Adjustment (EPA)

- Multiple awards

• Competition:

- Full and open

• Solicitation:

- Negotiated Request for Proposal (RFP)

• Solicitation, Addendum, Offeror Submission Package (OSP)

- Intend to award with discussions

- System for Award Management (SAM) registration required at https://www.sam.gov/portal/public/SAM (formerly CCR) https://www.sam.gov/portal/public/SAM

9 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Solicitation Overview

• Solicitation Sections

- Section B, Supplies or Services and Prices/Costs

- Section C, Descriptions/Specifications/Statement of Work

- Section D, Packaging and Marking

- Section E, Inspection and Acceptance

- Section F, Deliveries or Performance

- Section G, Contract Administration Data

- Section H, Special Contract Requirement

- Section I, Contract Clauses

- Section J, List of Documents, Exhibits and Other Attachments

- Section K, Representations, Certifications, and other Statements of Offerors or Respondents

- Section L, Instructions, Conditions, and Notices to Offerors or

Respondents

- Section M, Evaluation Factors for Award

10 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Solicitation Overview

• Commercial Package

– Commercial Contract Clauses and Provisions

• Addendum Package

– DFAR Clauses, DLAD Clauses, and DLA Energy Internal Contract Provisions

– Representations and Certifications (Section K)

– Instructions to Offerors (Section L)

– Evaluation Factors (Section M)

• Offeror Submission Package

– SF1449

– Offer Schedule

– Applicable fill-in clauses/provisions

– SAM

11 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Solicitation Overview Lowest Price, Technically Acceptable Evaluation

Factor 1: Technical Acceptability

Subfactor 1: Supplies or Services and Prices/Cost, Section B Subfactor 2: Description/Specifications/Statement of Work, Section C Subfactor 3: Inspection and Acceptance, Section E Subfactor 4: Deliveries or Performance, Section F

Factor 2: Price

12 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Solicitation Overview

• Responsibility Determinations (FAR Part 9)

- Preaward Surveys

- Eligibility review

13 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

• Addendum Package

– Removal of RME 180 Requirement

– F76 Quantity Update

– Removal of E40.07 Material Inspection and Receiving

Report Contract Provision

– Revision to Routing Data Table in DFARS 252.232-

7006 Wide Area Workflow Payment Instructions

• Offeror Submission Package

– Addition of F3.02 Transport Truck and/or Truck and Trailer Free Time and Detention Rates Contract Provision

Amendment 0001

14 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Questions / Answers

15 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Michael Huck

Contract Specialist

703-767-9295

Michael.Huck@dla.mil mailto:Kathryn.Moore@dla.mil

16 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

CPARS

• Contractor Performance Assessment Reporting System (CPARS)

– Web-enabled application that collects and manages library of automated contractor report cards https://www.cpars.gov https://www.cpars.gov/

17 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

CPARS - Workflow Contract

Registration

Enter Proposed Ratings

Validate Proposed Ratings

Review Contractor Comments

Reviewing Official Comments

Contractor Comments

18 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

CPARS – Ratings & Narratives

Rating Contract Requirements Problems Corrective Actions

Exceptional Exceeds Many

– Govt Benefit

Few Minor Highly Effective

Very Good Exceeds Some

– Govt Benefit

Some Minor Effective

Satisfactory Meets All Some Minor Satisfactory

Marginal Does not Meet Some – Govt Impact

Serious:

Recovery Still

Possible

Marginally Effective; Not Fully

Implemented

Unsatisfactory Does Not Meet Most – Govt Impact

Serious:

Recovery Not

Likely

Ineffective

19 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

20 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

John Phinisey

Inventory & Distribution Management

703-767-9287

John.Phinisey@dla.mil mailto:John.Phinisey@dla.mil

21 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Inventory Management / Technical Evaluations

• Lowest Price, Technically Acceptable (LPTA)

• Quality and Specification Issues

• Exceptions to Delivery Terms

22 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

23 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Daniel Baniszewski Chief, Product Technology & Standardization Division

Daniel.Baniszewski@dla.mil 703-767-8740

Richard Knapp

WESTPAC Program Manager, Quality Operations Division Richard.Knapp@dla.mil

703-767-8738 mailto:Daniel.Baniszewski@dla.mil mailto:Richard.Knapp@dla.mil

24 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Specifications & Contract Provisions

• JP-8 (MIL-DTL-83133H w/ amd 2) & Jet A1 (Def Stan 91-91 issue 7 w/ amd 2), Contract provisions C16.64-3 & C16.09-5

• JP-5 (MIL-DTL-5624V), Contract provision C16.01

– Sulfur reduction to 0.2% maximum

– Allowance of Fischer Tropsch and Hydroprocessed Esters and Fatty Acids blend components up to 50%

– Particle counting report requirement

– Added test methods (Freezing point, hydrogen content, particle counting)

• F-76 (MIL-DTL-16884N), Contract provision C16.23

– Ultra low sulfur limit 15ppm maximum

– Ultra-low sulfur levels effect on supply chain (e.g. Kwajalein Missile Range)

– Allowance of FT and HEFA blend components up to 50%

– Traceability of additives and materials

– Reference to MIL-PRF-32490, Feb 3, 2014, ADDITIVE, LUBRICITY IMPROVER, DIESEL

Innospec Octamar LI5 200 ppm max Nalco EC 5711A 200 ppm max Lubrizol 539D 200 ppm max Baker Petrolite Tolad 9112 200 ppm max Total PC-32 200 ppm max Infineum R650 200 ppm max Infineum R655 150 ppm max

25 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

26 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

William A. (Bill) MacLaren

Bulk Petroleum Procurement Analyst

703-767-8426

William.MacLaren@dla.mil mailto:William.MacLaren@dla.mil

27 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Bid Evaluation Model (BEM)

• Awards made based on lowest overall cost to DoD taking into account offer pricing, transportation to point of sale and other cost factors

• Model calculates costs of all possible ways to connect an offer to a requirement

- All offer lines considered individually

- All possible transportation modes considered

- Applicable node/arc combinations up to four iterations to connect offerors and requirements

- All offer options (such as “either/or” options for JP5 or JP8) and considerations (offer maximums/minimums) and additive possibilities

• Each “leg” of a route is monetized and added to the offer (up to 4 legs)

• Includes intermediate throughput costs and evaluation factors

• Lowest overall cost across all requirements is awarded

28 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

BEM - Capabilities

• Reflects anticipated supply chain management execution/cost

• FAR Part 47 compliant

• Supports industry demand for evaluation of complex offer structures, including:

- Tiered pricing

- Volume discounts or penalties

- Product combination limitations

- Multiple load capabilities (modes of transport)

- Parcel size limitations

- Additive injection limitations/capabilities throughout supply chain

• Factors commercial/DoD petroleum distribution network limitations in offer evaluation (storage limitations, transportation considered through 4th destination)

• Provides market-driven price substantiation for socio-economic program support

29 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

BEM – Distribution Costs

• Operating cost for ocean tankers, barges, tank trucks, and pipelines

• Excess thru-put charges, environmental fees, etc.

• Terminal Operation costs for tariff agreements

• Additive injection (FSII, SDA, CI)

30 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

BEM - Example Evaluation

31 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

BEM – Complex Model – Data Points

5 Transportation Arcs 35 Requirement Locations

32 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

BEM - Considering Transportation: Effect

Offers A: 6,000,000 USG by TT @ $2.95/gallon B: 6,000,000 USG by PL @ $3.00/gallon C: 1,000,000 USG by PL @ $2.99gallon

Requirements Base 1: 3,000,000 gallons received by TT Base 2: 3,000 ,000 gallons received by TT Base 3: 1,000 .000 gallons received by TT

Intermediate Depot Support Available Into X by PL, out by TT to all Requirements Into Y by PL, out by TT to all Requirements

Transportation Rates A to 1 (TT): .28/gallon A to 2 (TT): .20/gallon A to 3 (TT): .23/gallon B to X (PL): .02/gallon B to Y (PL): .02/gallon C to X (PL): .01/gallon C to Y (PL): .04/gallon X to 1 (TT): .05/gallon X to 2 (TT): .02/gallon X to 3 (TT): .05/gallon Y to 1 (TT): .04/gallon Y to 2 (TT): .06/gallon Y to 3 (TT): .02/gallon

PL = Pipeline; TT = Tank Truck

Offer A

6,000,000 USG

@$2.95

Offer C

1,000,000 USG

@$2.98

Offer B

6,000,000 USG

@$3.00

DFSP X

DFSP Y

Base 3

1,000,000 USG

Base 2

3,000,000 USG

Base 1

3,000,000 USG

.28

.02

.05

.01

.02 .05 .02

.04

.02

.04

.20

.23

.06

Requ 1 – Offeror A (total cost $3.23/gal) Requ 2 – Offeror A (total cost $.315/gal) Requ 3 – Offeror C (total cost $3.04/gal) Total cost: $22,180,000

Requ 1 – Offeror B (total cost $3.06/gal) Requ 2 – Offeror C (total cost $3.01/gal) Requ 2 – Offeror B (total cost $3.04/gal) Requ 3 – Offeror B(total cost $3.04/gal) Total cost: $21,310,000 $870K Savings Distribution Plan Generated

Evaluated on Offered Price Only: Evaluated on Laid-Down Cost:

33 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

BEM – Conditional Coding

• BEM will allow offers to place various conditions on offer

• Overall Maximum / minimum

• Combined products

• Limits by method of delivery

• Multiple product Max / Min restrictions

• Tie multiple bid lines together for evaluation

• Allows offer to split the performance period between two or more bid lines

34 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

BEM – Complex Offer Example

VOLUME JP-5 PRICE JP-8 PRICE FOB Origin:

30,660,000-45,989,999 2.564600 2.563600 P 30,660,000-45,989,999 2.567600 2.566600 B

30,660,000-45,989,999 2.565600 2.564600 TK

46,000,000-61,319,999 2.549900 2.548900 P 46,000,000-61,319,999 2.552900 2.551900 B

46,000,000-61,319,999 2.550900 2.549900 TK

61,400,000-76,649,999 2.540500 2.539500 P 61,400,000-76,649,999 2.543500 2.542500 B

61,400,000-76,649,999 2.541500 2.540500 TK

76,650,000-91,979,999 2.536000 2.535000 P 76,650,000-91,979,999 2.539000 2.538000 B

76,650,000-91,979,999 2.537000 2.536000 TK

91,980,000-153,300,000 2.534400 2.533400 P 91,980,000-153,300,000 2.537400 2.536400 B

91,980,000-153,300,000 2.535400 2.534400 TK

153,300,001-352,590,000 -- 2.529000 P 153,300.001-352,590,000 -- 2.532000 B

153,300,001-352,590,000 -- 2.530000 TK

CONDITIONS:

MAX COMBINATION OF JP-8 AND JP-5 IS 352,590,000

IN THE EVENT NO JP-5 IS AWARDED THE JP8 MAX TANKER PARCEL IS INCREASED

TO 240,000 FROM 175,000

P= FOB Origin into DLA-contracted Commercial Pipeline at refinery gate B= FOB Origin into DLA-contracted Barge at refinery pier TK= FOB Origin into DLA-contracted Tanker at refinery pier

35 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Bulk Reverse Auction Process

ISSUE

RFP

CLOSE RFP/

INITIAL OFFER

SUBMISSION

INITIAL EVALS/

INITIAL TECH RPT

OPEN

NEGOTIATIONS

INTERIM

PRICING

SUBMISSION*

1st BEM/

ISSUE MCBEW

& LCR+

CLOSE

NEGOTIATIONS

FINAL PROPOSAL

REVISION

SUBMISSION**

2nd BEM/

ISSUE MCBEW & LCR

REVERSE AUCTION

PROCUREX

(DISCOUNTS)***

FINAL EVALS/

FINAL TECH

RPT

3rd BEM TAA WAIVER?

4th BEM

OPTIMIZATION

RUN

AWARDS

** Vendor may make adjustments to product prices, quantities, (including overall minimum and maximum offer) and additives. Other changes will be considered on a case by case basis. Changes that would require additional delay to the award process (i.e. - to perform additional technical reviews) will not be considered.

* Vendor may modify most parameters: Minimums/maximums, pricing, shipping points, parcel sizes, etc.

+ Minimum Cost Bid Evaluation Worksheet and Laid Down Cost Report

*** All offerors are required to register in Procurex; however, offerors are not required to submit discounts. Discount bidding will be offered per product (JA1, JP8, etc.), against a starting reference price (e.g. $1.00) that will be provided by the Contracting Officer prior to the start of the auction. Offered discounts will be subtracted from all bid lines for that product and entered in BEM.

36 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Bulk Reverse Auction

37 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Bulk Reverse Auction

38 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

39 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Kathryn Moore

Contract Specialist

703-767-8563

Kathryn.Moore@dla.mil mailto:Sheila.Jackson@dla.mil

40 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Procurex

• Procurex Reverse Auction model and bid planning

• Receiving an auction invitation and registering

• Accepting the invitation

• Bidding in an auction

41 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

• Auctions hosted on https://dla.procurexinc.com

• Invitation only: The buyer decides which suppliers to invite based on buyer’s qualification requirements.

• Help-desk staffed during normal working hours.

• Web-based: standard browser, no special software needed.

• There is no fee to participate in a DLA Reverse Auction https://dla.procurexinc.com/

42 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Procurex

• Determine if your company should participate

- Understand the buyer’s requirements

- Understand the item specifications

- Understand the terms and conditions

• Know your competition

• Develop your bidding and price strategy

• Understand the auction parameters / ask questions

• Make sure you will be available at the bidding time

• Participate in a training auction

• If you don’t know, ask. Know your bottom price.

43 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Procurex

• I have received an event invitation email, now what?

- Do not delete the invitation email.

• Step-by-step instructions on how to participate in the event.

• Spam blockers could affect the content.

• Login to Procurex and click on the “Accept an Event Invitation” link.

• Do not delete the instructions.

44 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

45 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Registering Your Company

46 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Registration: Administrator

47 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Registration: Company Options

48 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Adding Users To Your Account

49 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Procurex Home Page

50 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Review Auction Invitation

51 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Auction Invitation Acceptance Screen

52 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Auction Bidding Screen

53 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Bid Confirmation Screen

54 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Auction Status Screen

55 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Procurex contact information:

1(866) 412-7161, option 1 https://dla.procurexinc.com service@procurexinc.com mailto:service@procurexinc.com

56 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

57 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

DEFENSE LOGISTICS AGENCY

AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY

WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT