KoreaSolicitation(final)(v2).pdf

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS

OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24, & 30

1. REQUISITION NUMBER

00060624788

PAGE 1 OF

2. CONTRACT NO. 3. AWARD/EFFECTIVE

DATE

4. ORDER NUMBER 5. SOLICITATION NUMBER

SP0600-16-R-0201

6. SOLICITATION ISSUE

DATE

01/21/2016

7. FOR SOLICITATION

INFORMATION CALL:

a. NAME

Sabrina Holland/sabrina.holland@dla.mil

b. TELEPHONE NUMBER (No collect calls)

703-767-9510

8. OFFER DUE DATE/

LOCAL TIME

03/10/2016

12:00PM EST

9. ISSUED BY CODE SPE600 10. THIS ACQUISITION IS UNRESTRICTED OR SET ASIDE: % FOR:

SMALL BUSINESS WOMEN-OWNED SMALL BUSINESS

(WOSB) ELIGIBLE UNDER THE WOMEN-OWNED

HUBZONE SMALL SMALL BUSINESS PROGRAM NAICS:

BUSINESS

EDWOSB 324110

SERVICE-DISABLED

VETERAN-OWNED SIZE STANDARD:

SMALL BUSINESS 8 (A) 1500

DLA ENERGY

ATTN: FEPAB ROOM 3938

8725 JOHN J. KINGMAN STE 4950

FORT BELVOIR VA 22060-6222

P.P. 1.8V

11. DELIVERY FOR FOB DESTINA-

TION UNLESS BLOCK IS

MARKED

SEE SCHEDULE

12. DISCOUNT TERMS

13a. THIS CONTRACT IS A

RATED ORDER UNDER

DPAS (15 CFR 700)

13b. RATING

14. METHOD OF SOLICITATION

RFQ IFB RFP

15. DELIVER TO CODE 16. ADMINISTERED BY CODE

SEE ATTACHMENT I SAME AS BLOCK 9

17a. CONTRACTOR/ CODE FACILITY 18a. PAYMENT WILL BE MADE BY CODE

OFFEROR CODE

TELEPHONE NO.

DFAS- COLUMBUS CENTER DFAS-CO

LSFC PO BOX 182317

COLUMBUS OH 43218-6252

FACSIMILE NUMBER: 614-693-2537

17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH ADDRESS IN

OFFER

18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS BLOCK

BELOW IS CHECKED SEE ADDENDUM

19.

ITEM NO.

20.

SCHEDULE OF SUPPLIES/SERVICES

21.

QUANTITY

22.

UNIT

23.

UNIT PRICE

24.

AMOUNT

SEE ATTACHMENT I

(Use Reverse and/or Attach Additional Sheets as Necessary)

25. ACCOUNTING AND APPROPRIATION DATA 26. TOTAL AWARD AMOUNT (For Govt. Use Only)

27a. SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1, 52.212-4. FAR 52.212-3 AND 52.212-5 ARE ATTACHED. ADDENDA

27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA

ARE ARE NOT ATTACHED

ARE ARE NOT ATTACHED

28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN 1

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND

DELIVER ALL ITEMS SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY

ADDITIONAL SHEETS SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED

29. AWARD OF CONTRACT: REF. OFFER

DATED . . YOUR OFFER ON SOLICITATION

(BLOCK 5), INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE

SET FORTH HEREIN, IS ACCEPTED AS TO ITEMS:

30a. SIGNATURE OF OFFEROR/CONTRACTOR 31a. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER)

30b. NAME AND TITLE OF SIGNER (Type or print) 30c. DATE SIGNED 31b. NAME OF CONTRACTING OFFICER (Type or print) 31c. DATE SIGNED

AUTHORIZED FOR LOCAL REPRODUCTION

PREVIOUS EDITION IS NOT USABLE

STANDARD FORM 1449 (REV. 2/2012)

Prescribed by GSA - FAR (48 CFR) 53.212 mailto:Holland/sabrina.holland@dla.mil

19.

ITEM NO.

20.

SCHEDULE OF SUPPLIES/SERVICES

21.

QUANTITY

22.

UNIT

23.

UNIT PRICE

24.

AMOUNT

SEE ATTACHMENT I

32a. QUANTITY IN COLUMN 21 HAS BEEN

RECEIVED INSPECTED ACCEPTED, AND CONFORMS TO THE CONTRACT, EXCEPT AS NOTED:

32b. SIGNATURE OF AUTHORIZED GOVERNMENT

REPRESENTATIVE

32c. DATE 32d. PRINTED NAME AND TITLE OF AUTHORIZED GOVERNMENT

REPRESENTATIVE

32e. MAILING ADDRESS OF AUTHORIZED GOVERNMENT REPRESENTATIVE 32f. TELPHONE NUMBER OF AUTHORZED GOVERNMENT REPRESENTATIVE

32g. E-MAIL OF AUTHORIZED GOVERNMENT REPRESENTATIVE

33. SHIP NUMBER 34. VOUCHER NUMBER 35. AMOUNT VERIFIED

CORRECT FOR

36. PAYMENT

COMPLETE PARTIAL FINAL

37. CHECK NUMBER

PARTIAL FINAL

38. S/R ACCOUNT NO. 39. S/R VOUCHER NUMBER 40. PAID BY

41a. I CERTIFY THIS ACCOUNT IS CORRECT AND PROPER FOR PAYMENT 42a. RECEIVED BY (Print) 41b. SIGNATURE AND TITLE OF CERTIFYING OFFICER 41c. DATE

42b. RECEIVED AT (Location)

42c. DATE REC'D (YY/MM/DD) 42d. TOTAL CONTAINERS

STANDARD FORM 1449 (REV. 2/2012) BACK

SP0600-16-R -0201 Page 3 of 56

SF Form 1449 - ADDITIONAL INFORMATION CONTINUED

a. Offerors are advised to complete and submit one copy of all forms contained in the Solicitation. Copies of all documents submitted must be exactly the same as original. Certification and Representation clauses should be answered in either the affirmative or negative, as applicable. If a clause does not apply, LEAVE BLANK. (DO NOT state "N/A - Not Applicable.") Offer must be signed by an authorized negotiator – see K-0002 K33.01 AUTHORIZED NEGOTIATORS (DLA ENERGY APR 2007) in the Solicitation. Please initial all changes and corrections. Offerors must acknowledge receipt and acceptance of all amendments to this Solicitation. FAR Clause 52.212-5 lists out all clauses incorporated by reference (IBR). Please be advised that offerors are responsible for complying with the referenced clauses as if they appeared in full text. Please read in its entirety FAR Clause 52.212-1 INSTRUCTIONS TO OFFERORS.

b. CLARIFICATION: Any reference to DAY(S) within the solicitation should be considered BUSINESS DAY(s) (Monday through

Friday). Hours of operation listed in the schedule (Attachment I) are for Korea’s time zone, any other reference to hours/time, unless otherwise stated, within the solicitation will be for Eastern Standard Time (EST). Any reference to Holidays should be considered U.S. Holidays unless otherwise noted as Korean Holidays. Any reference to BIMONTHLY should be considered twice a month, unless otherwise noted. All quantities listed on the schedule (Attachment I) are estimates.

c. NOTICE: Any contract awarded to a contractor who, at the time of award, was suspended, debarred, or ineligible for receipt of contracts with Government agencies, or was in receipt of a notice of proposed debarment from any Government agency, is voidable at the option of the Government.

d. A pre-award survey, if applicable, is required if the current pre-award survey on the offeror is expired or if the offeror has not performed under a DLA Energy contract, or at the discretion of the Contracting Officer. The pre-award survey must be approved to be considered for award. A pre-award survey is an onsite (in the physical location of the offeror) review of the offeror’s capabilities as it relates to the issued solicitation. The goal of this onsite review is to ensure that the capabilities exist to support the requirement the offeror offered against; mitigating risk of non-performance due to lack of capability. If an offeror does not pass a pre-award survey it shall reflect negatively against the offerors responsibility determination.

e. EVALAUATION: Reference FAR 52.212-1(e) ADDENDUM-for this solicitation, only one offer per CLIN will be evaluated.

f. For emergency situations during non-duty hours (Eastern Standard Time), the number to contact is (703) 767-8420 at the DLA

Energy Operations Center, Contingency Plans and Operations Division (DLA Energy - DL).

g. B-0002 B19.02 ECONOMIC PRICE ADJUSTMENT (OVERSEAS) (DLA ENERGY JAN 2012) - Initial offer price and base reference price date is January 01, 2016 for Korea. The final proposal revision reference price effective date will be the same as the reference price established for initial offers.

h. G-0003 G9.07-5 ELECTRONIC TRANSFER OF FUNDS PAYMENTS – FEDERAL RESERVE WIRE TRANSFER SYSTEM

(DLA ENERGY JAN 2012) – Foreign offerors may elect payment by electronic transfer of funds via the Federal Reserve Wire Transfer System, which does not require the receiving bank to be located in the United States. Offerors are advised to verify their FI is capable of receiving Federal Wire transactions via either a SWIFT Code or an IBAN number. Firms receiving an award under this solicitation must ensure that the appropriate arrangements are made with their FI prior to submission of the first invoice.

i. Pursuant to L-0002 L2.11-4 E-MAIL PROPOSALS (DLA ENERGY OCT 2010), offers submitted via e-mail must constitute an offeror’s hard copy. It must contain all required representations and certifications as well as all required signatures. E-Mail address in which to submit offers is: DLAEnergyPEC@dla.mil.

j. QUESTION AND ANSWER PERIOD. To encourage maximum participation on ALL line items (Attachment I) a question and answer period has been established. Starting from the issue date of this solicitation to March 3, 2016 4:00p.m. Eastern Standard Time (EST) all potential offerors may ask any and as many questions as they may need to fully participate and respond to all the listed line items (Attachment I). No further questions will be received after the above stated date and time. All questions should be sent to DLAEnergyPEC@dla.mil. Answers will be consolidated and answered via an official amendment to the solicitation, if applicable. Extensions of the closing date to an open solicitation are at the sole discretion of the Contracting Officer and will be issued via an amendment, if applicable. Potential offerors are reminded that they shall sign the amendment (block 15a-

c) OR acknowledge the solicitation/amendment(s) in their prospective submitted proposals.

mailto:DLAEnergyPEC@dla.mil mailto:DLAEnergyPEC@dla.mil mailto:DLAEnergyPEC@dla.mil

SP0600-16-R -0201 Page 4 of 56

INDEX

Section B- Supplies or Services and Price/Costs

PROVISION/CLAUSE TITLE PAGE

B-0001 B1.05 SUPPLIES TO BE FURNISHED (OVERSEAS PC&S) (ALASKA/HAWAII) (DLA

ENERGY JAN 2012) 8

B-0002 B19.02 ECONOMIC PRICE ADJUSTMENT (OVERSEAS)(DLA ENERGY JAN 2012) 8

Section C- Description/Specifications/Statement of Work

C-0001 C16.16-1 FUEL OIL DIESEL AUTOMOTIVE (PC&S) (KOREA) (DLA ENERGY NOV

2014) 10

C-0002 C16.69-2 AUTOMOTIVE GASOLINE FUEL SPECIFICATIONS (PC&S) (DLA

ENERGY OCT 2015) 10

Section D- Packaging and Marking

None 11

Section E- Inspection and Acceptance

E-0001 E18.01 SAMPLE SUBMISSION (QAP AUG 2009) 11

E-0002 E22 LIST OF INSPECTION OFFICES FOR DLA ENERGY CONTRACTS (QAP JULY

2013) 11

E-0003 E35 NONCONFORMING SUPPLIES AND SERVICES (QAP DEC 2011) 12

E-0004 E37 SOURCE RESTRICTION AND SOURCE INSPECTION (PC&S) (QAP DEC 2011) 13

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) 13

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

JAN 2012) 14

F-0003 F1.11 DLA INTERNET BID BOARD SYSTEM (DIBBS) (DLA ENERGY) (APR 2014) 16

F-0004 F3.03 NOTIFICATION OF CHANGE IN TRANSPORTATION COMPANY

(PC&S)(DLA ENERGY APR 2005) 17

F-0005 F51 SHIPMENT AND ROUTING (OVERSEAS)(DLA ENERGY NOV 2005) 18

Section G- Contract Administration Data

G-0001 G3 INVOICE NUMBERING REQUIREMENTS (DLA ENERGY AUG 1998) 18

SP0600-16-R -0201 Page 5 of 56

G-0002 G9.06 ADDRESS TO WHICH REMITTANCE SHOULD BE MAILED (DLA

ENERGY DEC 1999) 18

G-0003 G9.07-5 ELECTRONIC TRANSFER OF FUNDS PAYMENTS – FEDERAL

RESERVE WIRE TRANSFER SYSTEM (DLA ENERGY JAN 2012) 19

G-0004 G150.07-2 SUBMISSION OF INVOICES FOR PAYMENT (OVERSEAS

PC&S)(DLA ENERGY JAN 2012) 21

DFARS 252.232-7006 WIDE AREA WORKFLOW PAYMENT INSTRUCTIONS (MAY 2013) 23

Section H- Special Contract Requirements

None 25

Section I- Contract Clauses

FAR 52.203-3 GRATUITIES (APR 1984) 25

FAR 52.203-11 CERTIFICATION AND DISCLOSURE REGARDING PAYMENTS TO

INFLUENCE CERTAIN FEDERAL TRANSACTIONS (SEP 2007) 25

FAR 52.203-12 LIMITATION ON PAYMENTS TO INFLUENCE CERTAIN

FEDERAL TRANSACTIONS (OCT 2010) 25

FAR 52.212-1 INSTRUCTIONS TO OFFERORS -- COMMERCIAL ITEMS (OCT 2015) 25

FAR 52.212-4 CONTRACT TERMS AND CONDITIONS- COMMERCIAL ITEMS (MAY 2015) 25

FAR 52.214-34 SUBMISSION OF OFFERS IN ENGLISH LANGUAGE (APR 1991) 25

FAR 52.214-35 SUBMISSION OF OFFERS IN U.S.CURRENCY (APR 1991) 25

FAR 52.223-3 HAZARDOUS MATERIAL IDENTIFICATION AND MATERIAL SAFETY DATA

(JAN 1997) 25

FAR 52.229-6 TAXES—FOREGIN FIXED-PRICE CONTRACTS (FEB 2013) 25

FAR 52.232-17 INTEREST (OCT 2010) 25

FAR 52.232-38 SUBMISSION OF ELECTRONIC FUNDS TRANSFER INFORMATION WITH

OFFER (JUL 2013) 25

FAR 52.232-39 UNENFORCEABILITY OF UNAUTHORIZED OBLIGATIONS (JUN 2013) 25

FAR 52.232-40 PROVIDING ACCELERATED PAYMENTS TO SMALL

BUSINESS SUBCONTRACTORS (DEC 2013) 25

FAR 52.242-13 BANKRUPTCY (JUL 1995) 25

FAR 52.246-2 INSPECTION OF SUPPLIES – FIXED PRICE (AUG 1996) 25

FAR 52.247-34 F.O.B. DESTINATION (NOV 1991) 25

FAR 52.247-45 F.O.B. ORIGIN AND/OR F.O.B. DESTINATION EVALUATION (APR 1984) 25

FAR 52.247-46 SHIPPING POINT(S) USED IN EVALUATION OF F.O.B. ORGON OFFERS (APR

1984) 25

DFARS 252.203-7000 REQUIREMENTS RELATING TO COMPENSATION OF FORMER DOD

OFFICIALS (SEP 2011) 25

DFARS 252.203-7002 REQUIREMENT TO INFORM EMPLOYEES OF WHISTLEBLOWER RIGHTS

(SEP 2013) 25

SP0600-16-R -0201 Page 6 of 56

DFARS 252.203-7005 REPRESENTATION RELATING TO COMPENSATION OF FORMER

DOD OFFICIALS (NOV 2011) 25

DFARS 252.204-7004 ALTERNATE A, SYSTEM FOR AWARD MANAGEMENT (FEB 2014) 25

DFARS 252.204-7012 SAFEGUARDING COVERED DEFENSE INFORMATION AND CYBER

INCIDENT REPORTING (AUG 2015) 25

DFARS 252.209-7001 DISCLOSURE OF OWNERSHIP OR CONTROL BY THE GOVERNMENT OF

A TERRORIST COUNTRY (JUN 2010) 25

DFARS 252.222-7007 REPRESENTATION REGARDING COMBATING TRAFFICKING IN PERSONS

(JAN 2015) 25

DFARS 252.232-7010 LEVIES ON CONTRACT PAYMENTS (DEC 2006) 25

DFARS 252.233-7001 CHOICES OF LAW(OVERSEAS)(JUN 1997) 25

DFARS 252.243-7002 REQUEST FOR EQUITABLE ADJUSTMENT (DEC 2012) 26

DFARS 252.244-7000 SUBCONTRACTS FOR COMMERCIAL ITEMS (JUN 2013) 26

DFARS 252.246-7000 MATERIAL INSPECTION AND RECEIVING REPORT (MAR 2008) 26

DLAD 52.233-9000 AGENCY PROTEST (NOV 2011) 26

DLAD 52.233-9001 DISPUTES AGREEMENT TO USE ALTERNATIVE DISPUTE RESOLUTION

(ADR) (NOV 2011) 26

FAR 52.252-1 SOLICITATION PROVISION INCORPORATED BY REFERENCE (FEB 1998) 26

FAR 52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT (MAR 2000) 26

FAR 52.204-7 SYSTEM FOR AWARD MANAGEMENT (JUL 2013) 26

FAR 52.211-16 VARIATION IN QUANTITY (APR 1984) 27

FAR 52.211-17 DELIVERY OF EXCESS QUANTITIES (SEP 1989) 29

FAR 52.212-5 CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT

STATUTES OR EXECUTIVE ORDERS -- COMMERCIAL ITEMS (OCT 2015)

FAR 52.216-1 TYPE OF CONTRACT (APR 1984) 34

FAR 52.216-18 ORDERING (OCT 1995) 34

FAR 52.216-19 ORDER LIMITATIONS (OCT 1995) 34

FAR 52.216-21 REQUIREMENTS (OCT 1995) 35

FAR 52.237-2

PROTECTION OF GOVERNMENT BUILDINGS, EQUIPMENT, AND VEGETATION

(APR 1984)

Section J- List of Attachments

SCHEDULE OF SUPPLIES Attachment I

PRICE DATA SHEETS Attachment II

PRICE HISTORY INSTRUCTIONS/WORKSHEET FOR

UNCOMMON ESCALATORS Attachment III

SP0600-16-R -0201 Page 7 of 56 Section K- Representations, Certifications, and other Statements of Offerors or Respondents

PROVISION/CLAUSE TITLE PAGE

FAR 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS (OCT 2015) 36

FAR 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (JUL 2013) 37

FAR 52.212-3 OFFEROR REPRESENTATIONS AND CERTIFICATIONS – COMMERCIAL

ITEMS (OCT 2015) 38

K-0001 K15 RELEASE OF PRICES (DLA ENERGY MAR 2009) 50

K-0002 K33.01 AUTHORIZED NEGOTIATORS (DLA ENERGY APR 2007) 50

K-0003 K86 FOREIGN TAXES (DLA ENERGY NOV 2014) 50

K-0004 K150 WIDE AREA WORKFLOW (WAWF) SUPPLEMENTAL INVOICE SUBMISSION

(DLA ENERGY MAY 2014) 51

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

PROVISION/CLAUSE TITLE PAGE

FAR 52.212-1 INSTRUCTIONS TO OFFERS 25

L-0001 L1.02 PROPOSAL ACCEPTANCE PERIOD (DLA ENERGY NOV 1991) 51

L-0002 L2.11-4 E-MAIL PROPOSALS (DLA ENERGY OCT 2010) 51

L-0003 L54 SITE VISIT (DLA ENERGY OCT 1992) 52

L-0004 L117 NOTIFICATION OF TRANSPORTATION COMPANY TO BE UTILIZED IN

THE DELIVERY OF PRODUCTS (PC&S)(DLA ENERGY JAN 2012) 52

Section M- Evaluation Factors for Awards

PROVISION/CLAUSE TITLE PAGE

FAR 52.212-2 EVALUATION -- COMMERCIAL ITEMS (OCT 2014) 53

M-0001 M3.01 EVALUATION OF OFFERS WHERE UNCOMMON ESCALATORS ARE

USED (DLA ENERGY JAN 1998) 54

M-0002 M55 CONVERSION FACTORS (DLA ENERGY MAR 2007) 55

M-0003 M72 EVALUATION OF OFFERS (EXCEPTIONS/DEVIATIONS) (DLA ENERGY

APR 1997) 56

SP0600-16-R -0201 Page 8 of 56

Part I-The Schedule

SECTION B- SUPPLIES OR SERVICES AND PRICES/COSTS

B-0001 B1.05 SUPPLIES TO BE FURNISHED (OVERSEAS PC&S) (ALASKA/HAWAII) (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 contract provision.

(b) In an emergency, oral orders may be issued and must be confirmed in writing by a Standard Form 1449 or DD Form 1155 within 24 hours.

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

Offers submitted for less than the estimated quantities will not be considered for award, except for items specifically designated as _5_-year requirements. Period of performance is 01 August 2016 through 31 July 2021.

SUPPLIES, DELIVERY POINTS,

ITEMS AND METHOD OF DELIVERY ESTIMATED QUANTITY

See Attachment I* Gasoline Automotive, UNLD Product Code: MG7 3,284,750 USG

NSN: 9130-01-289-8638

Specification: KSM-2612 (Most Current Specifications Standards)

See Attachment I* Korean Diesel Class 3, Regular Product Code: KDR 63,375,136 USG

NSN: 9140-01-534-3068

Specification: KSM-2610 (Most Current Specifications Standards)

* Specifications stated are applicable to Contract line Item Number (CLIN) nomenclature indicated herein

B-0002 B19.02 ECONOMIC PRICE ADJUSTMENT (OVERSEAS) (DLA ENERGY JAN 2012)

(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 contract provision; and

(2) The prices to be invoiced hereunder shall be computed in accordance with the provisions of this contract.

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

(1) Award price means the unit price offered by the Contractor and set forth opposite the item in the Schedule.

(2) Reference price means the market price, this is either published in an independent publication or supplied by the Contractor, with which the award price is to fluctuate. The reference price should be a market price for the same or similar product(s) as the item being purchased.

(3) Date of delivery means--

(i) FOR TANKER OR BARGE DELIVERIES.

(A) 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 PIPELINE DELIVERIES. The date and time product commences to move past the specified f.o.b.

point; and

(iii) FOR ALL OTHER TYPES OF DELIVERIES. The date product is received.

(c) ADJUSTMENTS. The prices payable under this contract shall be the award price increased or decreased by the amount, determined according to the following formula that the reference price shall have increased or decreased, to and including the date of delivery.

(1) The amount of increase or decrease in the award price shall be based on the same number of cents, or fraction thereof, that the reference price increases or decreases per like unit of measure.

(2) The reference price with which the award price for the listed item is to fluctuate (and which is more fully defined in the Table below) is-- [X] (i) The low price published in _Platts Oilgram Price Report, Singapore Gasoil 50ppm Cargo, and Singapore Mogas 92 Unl Spore Cargo___________________________________________________________________________.

(name of publication)

[ ] (ii) The average of the prices published in ________________________________________________.

(name of publication)

SP0600-16-R -0201 Page 9 of 56

[ ] (iii) The established price posted by ______________________________________________________ and (name of company) published in _________________________________________________________ (name of publication)

(3) COMMERCIAL. For price adjustments utilizing commercial publications such as Platts Oilgram, etc., the reference price in effect on the date of delivery shall be that item’s reference price that is in effect for the dates in the Table below. If an effective date is not cited in a publication, then the date of publication shall apply. An increase or decrease in any reference price published in a trade price service or in a commercial journal shall apply only to deliveries made on or after the effective date of such trade price service or commercial journal. In the event of a holiday for which an effective date is not used, the latest effective price(s) prior to the effective date shall be used. NOTE: Platts issues corrections to its published prices on a regular basis. Platts posts corrections to its website (www.platts.com) for its subscribers. If a correction to a reference price is found on the Platts website, all of the items that use that reference price will be corrected. DLA Energy will correct any other reference prices, as notice of the correction is received. DLA Energy will work with the pricing services to determine the appropriate price, whenever an offeror or contractor can show that the price referenced should be reviewed.

(4) NONCOMMERCIAL (NOTIFICATION). For price adjustments utilizing a reference price indicator other than commercial publications such as Platts Oilgram, the Contractor shall notify the Contracting Officer of any changes in the reference price in writing within 15 calendar days from the date thereof.

(i) INCREASES. Any increase in unit price as a result of an increase in reference price shall apply only to deliveries made on or after the date of receipt by the Contracting Officer of a written notification from the Contractor of such increase.

However, the prices payable under this contract shall in no event exceed the Contractor’s posted or established selling price in effect on the date of delivery for the product supplied in the form of delivery made at the point of delivery. Also, no notification incorporating an increase in a contract unit price shall be executed pursuant to this contract provision until the increase has been verified by the Contracting Officer.

(ii) DECREASES. If the Contractor fails to notify the Contracting Officer of any decrease in the reference price, within the allotted 15 day period, such decrease shall apply to all 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 in the established price, the Contractor shall be charged interest on such overpayment from the date of the overpayment to the date of reimbursement by the Contractor for the overpayment in accordance with the Disputes paragraph of the CONTRACT TERMS AND CONDITIONS – COMMERICAL ITEMS clause of this contract.

(5) Where the reference price is the Contractor’s established price (see (c)(2)(iii) above), the Contractor warrants that the product selected is one for which, except for modification required by the specifications of this contract, the Contractor has an established price. Such price is the net price after applying any applicable standard trade discounts offered by the Contractor for its catalog, list, or schedule price. The Contractor further warrants that, as of the current date, any differences between the unit prices of the line items identified in the Schedule and the Contractor's established price for like quantities of the nearest commercial equivalents of such contract items are due to compliance with contract specifications and to compliance with any requirements that this contract may contain for preservation, packaging, and packing beyond standard commercial practice.

(d) MODIFICATIONS. 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.

(e) 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 the Excusable Delays and Termination for Cause paragraphs of the CONTRACT TERMS AND CONDITONS – COMMERCIAL ITEMS clause of the this contract in which case the contract shall be amended to make an equitable extension of the delivery schedule.

(f) 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 __575%____ percent of the award price, except as provided hereafter:

(1) 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 appropriate explanation and documentation as required by the Contracting Officer.

(2) 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.

(g) REVISION OF REFERENCE PRICE INDICATOR. In the event—

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

(2) The reference price is an average of published or posted prices, and any one price ceases to be published or posted;

http://www.desc.dla.mil/

SP0600-16-R -0201 Page 10 of 56

(3) The reference price is published in a trade price service or commercial journal and such publication ceases to publish said reference price or changes its method of quoting prices; or

(4) 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 adjustment described hereunder. 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 the Disputes paragraph of the CONTRACT TERMS AND CONDITIONS – COMMERCIAL ITEMS clause of this contract.

(h) CONVERSION FACTORS. If this contract provision requires quantity conversion for economic price adjustment purposes, the conversion factors for applicable products, as specified in the CONVERSION FACTORS contract provision, apply unless otherwise specified in the Schedule.

(i) 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 contract provision.

(j) 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.

(k) TABLE. The Base Reference Price (BRP) date is January 1, 2016 and the publication and BRPs to be used when submitting offers (unless using uncommon escalators- see M-0001 for instructions) are as follows:

Product Publication Price Per U.S. Gallon

Gasoline, Automotive, UNLD (MG7)

Prior month’s Midpoint average posting in Platts Singapore Cargo, MOGAS 92 UNL Spore Cargo under the heading “Platts Gasoline Unl 92 FOB Spore Cargo”

$1.258041

Korean Diesel Class 3, reg.

(KDR)

Prior month’s Midpoint average posting in Platts Singapore, Gasoil 50ppm under the heading “Platts Gasoil .005%S (50ppm) FOB Spore Cargo”

$1.142998

SECTION C- DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C-0001 C16.16-1 FUEL OIL DIESEL AUTOMOTIVE (PC&S) (KOREA) (DLA ENERGY NOV 2014)

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. 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 fail to meet the more stringent requirement will be considered nonconforming supply. Product(s) to be supplied shall fully meet the requirements of the applicable specification(s).

(a) FUEL OIL DIESEL AUTOMOTIVE- Diesel Fuel Oil shall confirm to Korea Petroleum and Alternative Fuels Business Act (Korea Ministry of Knowledge Economy Notice No. 2010-236).

1) Classification

National Stock Number

Product Nomenclatur e

Pour Point Temperature

DLA Energy Product Code

Korean National Standard

9140-01-534-3068 Fuel Oil, Diesel, Regular

Seasonally Adjusted

KDR Automotive Diesel Fuel Oil

C-0002 C16.69-2 AUTOMOTIVE GASOLINE FUEL SPECIFICATIONS (PC&S) (DLA ENERGY OCT 2015) 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. This includes delivery of fuel and documentation in a manner consistent with existing or future Title V (Clean Air Act) Permits. In the event that a Federal, State, or local environmental requirement is more stringent than a similar requirement in a fuel specification contained in this contract, the Contractor shall deliver product that complies with the more stringent requirement. Product that fails to meet the more stringent environmental requirement will be considered to be a nonconforming supply. All supplies furnished under this contract shall fully meet the requirements of the applicable specification(s) as cited below. In the event that compliance with the more stringent requirement causes the contractor to incur additional costs, the contractor may request an equitable adjustment.

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(a) GASOLINE AUTOMOTIVE. Gasoline shall conform to each countries specification as listed below:

COUNTRY SPECIFICATION RON, MINIMUM NATIONAL STOCK NUMBER

CANADA CAN/CGSB-3.5-2011 87 (AKI)

AUSTRALIA

FUEL QUALITY

STANDARDS ACT 2000 91

COSTA RICA RTCA 75.01.20:04 91

EL SALVADOR RTCA 75.01.20:04

88 9130-00-148-7103

GUATEMALA RTCA 75.01.20:04 88

NICARAGUA RTCA 75.01.20:04 88

HONDURAS RTCA 75.01.20:04 88

KOREA KSM 2612

91 9130-01-289-8638

(1) Specifications for countries not listed in the chart above may be used if they meet or exceed the specification requirements of ASTM D4814. In-country specifications not meeting D4814, but meet local requirements may also be submitted for approval.

(2) REID VAPOR PRESSURE (RVP). The contractor is expected to know and comply with the in-country RVP requirements of the area being supplied.

(b) GASOLINE, AUTOMOTIVE, UNLEADED, MIDGRADE (ALL OTHER REGIONS). Product shall conform to ASTM D

4814, as modified below.

(1) OCTANE REQUIREMENTS.

(i) Unleaded automotive gasoline shall meet the Anti-Knock Index (AKI) requirements shown in the table below:

NATIONAL STOCK

NUMBER

PRODUCT

NOMENCLATURE

AKI, MINIMUM

9130-00-148-7103 Gasoline, Midgrade Unleaded 89

SECTION D- PACKAGING AND MARKINGS

Not applicable

SECTION E- INSPECTION AND ACCEPTANCE

E-0001 E18.01 SAMPLE SUBMISSION (QAP AUG 2009)

The Contractor shall furnish hereunder, from time to time, samples of each product or grade of product to be furnished under this contract at the request of, and in the manner and to the place designated by, the Quality Representative;

PROVIDED, however, that in no event shall the Contractor be required to furnish during the period of this contract more than five 1-gallon samples under each contract line item. Such samples shall be furnished without charge to the Government and shall be packed, marked, and shipped by the Contractor, shipping expense prepaid, in containers and shipping boxes furnished by the Contractor.

E-0002 E22 LIST OF INSPECTION OFFICES FOR DLA ENERGY CONTRACTS (DLA ENERGY JUL 2013)

The following lists shall be used to identify the Government inspection office assigned inspection responsibility for DLA Energy contracts in a particular geographic area. These contracts include, but are not limited to, those for bulk petroleum products and additives, into-plane refueling, petroleum storage and laboratory services, coal, aerospace energy (including compressed gases), and posts, camps, and stations. The area of inspection responsibility and corresponding office code are assigned in paragraphs (a) and (b). The address and phone number of each inspection office by office code is provided in paragraph (c). Unless a particular inspection office is identified in another part of the contract, the assignments in this contract provision shall apply.

(a) AREAS OF RESPONSIBILITY AND OFFICE CODES OUTSIDE THE CONTINENTAL

UNITED STATES (OCONUS) (INCLUDING ALASKA AND HAWAII):

SP0600-16-R -0201 Page 12 of 56

(b) South Korea Code: 300

(c) DLA Energy Pacific ATTN:

Quality Manager 3 1025 Quincy Avenue, Building 479, Suite 2000 Pearl Harbor, HI 96860-4512

Phone: (808) 473-4307/4287

FAX: (808) 473-4232

E-0003 E35 NONCONFORMING SUPPLIES AND SERVICES (QAP DEC 2011)

(a) DEFINITION: As used in this contract provision:

Deviation is defined as a written authorization granted after contract award and prior to manufacture of an item, to depart from a particular performance or design requirement of a contract, specification, or referenced document, for a specific number of units or specific period of time, normally the duration of the contract.

Extraordinary situation means the matter cannot await resolution until the next DLA Energy business day (0800 to 1630 hours EST, Monday through Friday, Federal Holidays excluded).

Waiver is defined as a written authorization granted after contract award to accept a configuration item or other designated item which, during production or after having been submitted for inspection, is found to depart from specified requirements, but nevertheless is considered suitable for use “as is” or after repair by an approved method. Approval is on a case-by-case basis and is normally for a set period of time.

(b) The Government may, at its discretion, accept nonconforming supplies or services. In such cases, the Contractor must obtain a deviation or waiver from the Contracting Officer prior to acceptance.

(c) The following procedures shall be used to request a deviation or waiver.

(1) Requests for deviations and waivers shall be submitted by the Contractor to the Contracting Officer with a copy to the appropriate Inspection Office referenced in the LIST OF INSPECTION OFFICES FOR DLA ENERGY CONTRACTS or QUALITY REPRESENTATIVE contract provision of this contract. Each request shall provide the following information:

Contractor name; name and contact information of the contractor's authorized negotiator; contract number; contract line item number and product nomenclature, clause or contract provision number, paragraph and subparagraph, as appropriate; the nature of the request; the reason for the request; the corrective action being taken by the Contractor to correct and prevent recurrence of the condition(s) causing the nonconformance; and an agreement to pay an equitable price reduction, estimated and proposed by DLA Energy, over and above the administrative fee, contingent on the impact of the specific circumstances on DLA Energy relative to approval of the deviation or waiver.

(2) In extraordinary situations, the Contractor may initially submit a verbal request for a waiver, but not a deviation, to the Contracting Officer. Written requests shall be submitted to the Contracting Officer by the next DLA Energy business day (0800 to 1630 hours EST, Monday through Friday, Federal Holidays excluded). If the Contracting Officer cannot be reached, the Duty Officer shall be contacted to provide the necessary information to the proper individuals as soon as possible. The Duty Officer's telephone number is (800) 286-7633 or (703) 767-8420.

(3) If a deviation or waiver is granted, the contract will be modified to accept the nonconforming supplies or services and to require the Contractor to provide an equitable price reduction or other adequate consideration commensurate with the deviation or waiver being granted. If the situation warrants, a deviation or waiver may be granted without prior agreement on price reduction or other consideration, subject to agreement by the Contractor, or its representative, to subsequent negotiation.

Such an agreement, in addition to a brief description of the terms of the deviation or waiver, shall be documented on the shipping document or other appropriate correspondence. After negotiations, failure to agree on adequate consideration shall be a dispute concerning a question of fact within the meaning of the Disputes paragraph of the CONTRACT TERMS AND CONDITIONS - COMMERCIAL ITEMS contract provision of this contract.

(4) If a deviation or waiver is granted and the nonconforming supplies are accepted, then in no event will consideration be less than $500, which covers administrative costs, plus any additional cost of Government reinspection or retest, if necessary.

(5) If a deviation or waiver is granted modifying this contract, but the supplies accepted are subsequently determined to be in conformity with contract specifications, the Contractor shall still be obligated to pay the consideration originally agreed upon in support of the deviation or waiver. If, however, this consideration exceeds $1000, a second contract modification shall be issued reducing the Contractor's obligation to $1000 (the administrative cost of issuing the two required modifications), plus, if appropriate, any cost of Government reinspection or retest performed as a result of the deviation or waiver being granted.

(d) When notification of nonconforming supplies is received after the supplies have been accepted, and the Government determines not to exercise its right to reject or to require correction under the INSPECTION OF SUPPLIES - FIXED-PRICE, INSPECTION OF SERVICES - FIXED PRICE, or CONTRACT TERMS AND CONDITIONS - COMMERCIAL ITEMS contract provision, then in no event will consideration be less than $500 to cover administrative costs. This $500 fee is in addition to --

(1) Consideration commensurate with the extent of nonconforming supplies; and

(2) Cost of Government reinspection or retest, if necessary.

The administrative fee will apply to each claim letter issued for off-specification product delivered to an activity.

(e) Contractors shall be held responsible for payment of any fines or penalties imposed on a receiving activity by an environmental enforcement agency, resulting from the delivery of nonconforming supplies under a DLA Energy contract.

SP0600-16-R -0201 Page 13 of 56

(f) Repeated tender of nonconforming supplies or services, including those with only minor defects, will be discouraged by appropriate actions, including, but not limited to, rejecting the supplies or services whenever feasible and documenting the Contractor's performance records.

E-0004 E37 SOURCE RESTRICTION AND SOURCE INSPECTION (PC&S) (QAP DEC 2011)

(a) SOURCE RESTRICTION.

(1) If the Contractor delivers any product that is determined to be off-specification, the Contracting Officer (CO) shall thereafter have the right, upon giving written notice, to require the Contractor to designate a single source of supply for each destination set forth in the contract. Upon receiving such notice, the Contractor shall have 10 days to respond, in writing, after which time the source restriction will become effective.

(2) In addition to the name of a single source of supply, the Contractor must provide the address of the terminal or loading point to be used in drawing the requirements for each item in the contract.

(3) The Contractor may change suppliers only after requesting and receiving the express written approval of the CO.

(b) SOURCE INSPECTION.

(1) If serious quality problems arise or if a quality problem recurs, for which the Contractor was supposed to have taken corrective action, the CO shall, in addition to source restriction, have the right to change the inspection point from destination to origin (source) by advising the Contractor in writing. Source inspection will become effective 10 days after written notice has been received by the Contractor.

(2) At the time the change becomes effective --

(i) All appropriate contract provisions relating to origin inspection shall be incorporated into the contract for the item(s) involved;

(ii) Source restriction, if not already in force, will be invoked for all items involved, in accordance with (a) above; and

(iii) The cognizant DLA Energy field office, upon receiving written notification by the CO, will become the office responsible for inspection at the origin loading or filling point for providing necessary field assistance.

(c) Failure to provide the information requested or to take prompt corrective action may result in the item(s) and/or contract being terminated for default.

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.

SP0600-16-R -0201 Page 14 of 56

(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 (4.6 meters) 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).

(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…