SCOMS_OSP_FY17_DRAFT_TWO.doc

SEA CARD® OPEN MARKET SYNOPSIS

PACKAGE

SHIPS’ BUNKERS

SP0600-17-R-0200

SEA Card® Open Market

THE ENCLOSED PURCHASE REQUEST COVERS THE PERIOD:

1 October 2016 THROUGH 30 September 2017

INSTRUCTIONS:

This copy of this Purchase Request Package is for your reference. All documents that are associated with the DLA Energy Bunkers SEA Card® Open Market are contained in the Purchase Request Package or located as ATTACHMENTS on the Internet site where they can be downloaded.

General Information:

Document Type: P = Presolicitation Notice

Solicitation Number: SP060017R0200

Posted Date: October 1, 2016

Response Date: October 1, 2016

Archive Date: December 30, 2016

Classification Code: 91—Fuels, Lubricants, Oils & Waxes

Set Aside: N/A

Contracting Office Address:

ATTN: Defense Logistics Agency, Logistics Operations, Attn: Bunkers/DLA Energy-PHB, Francis Murphy, Defense Logistics Agency - Energy, 8725 John J. Kingman Rd., Suite 3821, Fort Belvoir, VA 22060-6222.

TITLE: 91: Fuels, Lubricants, Oils & Waxes

Solicitation SP0600-17-R-0200 is for the procurement of Distillates & Residuals for ships’ bunkers at various ports Worldwide. Fuel will be procured on a spot-buy as-required basis through SEA Card Online system. Distillate is Commercial Marine Gas Oil; Residuals are Commercial Fuel Oil, Intermediate, Grades RME-180 (IFO 180), and RMG-380 (IFO 380). Fuel is to be delivered as ships’ bunkers directly into U.S. vessels for DoD and Federal Civilian agencies by barge, truck, or pipeline. Ordering period is October 1, 2016 through September 30, 2017. Delivery period is October 1, 2016 through October 31, 2017. These are Requirements-Type, Fixed Price Contracts. Any technical questions regarding the download should be addressed to Mr. Francis Murphy at (703) 767-8479. Request for hard copies of the solicitation must be submitted in writing. Please state name, address, and solicitation number. All responsible sources may submit a proposal, which shall be considered.

Contracting Office Address:

8725 John J. Kingman Road, Suite 3821 Fort Belvoir, Virginia 22060-6222 Point of Contact:

Francis C. Murphy, Contracting Officer, Direct Delivery Fuels – Phone: (703) 767-8479, Fax: 703-767-8506 (No collect calls), Email francis.c.murphy@dla.mil Marcarthur Alexandre II, Contract Specialist, Direct Delivery Fuels – Phone: (703) 767-5494, Fax: 703-767-8506 (No collect calls), Email: marcarthur.alexandre@dla.mil

Diana Knight, Contracting Officer, Direct Delivery Fuels-- Phone: (703) 767-9538, Fax: 703-767-8506 (No collect calls), Email diana.knight@dla.mil Place of Performance: Various ports Worldwide.

DLA Energy Bunkers SEA Card® Open Market Overview The U.S. Government Ships bunkers Easy Acquisition Card Program (SEA Card®) is the Defense Logistics Agency - Energy (DLA Energy) worldwide marine fuel procurement program used by the Department of Defense (DoD) and Federal Civilian agencies. The program is based on the SEA Card® Order Management System (SEA CARD® ONLINE®), a web-based platform which eliminates the need for paper-based processes and can be accessed at https://www.seacardsys.com.

One feature of the SEA Card® program is our Open Market purchase program which allows for marine fuel purchases by the U.S. Government in over 2,600 ports worldwide. In the event that fuel is requested at a non-contract port, an Open Market purchase is requested. Registered vessels can use the SEA Card® system to create an open market fuel request and input the specification requirements, special terms and conditions for the specific request, and requested mode of delivery. Once a Request for Quote (RFQ) is thus established, a competitive process in which quotes are submitted by multiple merchants will commence and an award is made to the merchant who submitted the lowest priced, technically acceptable quote. After fueling occurs, the merchant may input the transaction details into SEA Card® Online. The transaction details are then routed to the approving official for approval before processing for payment. This ensures that the appropriate purchasing policies are followed and purchase details are correct.

The SEA Card® system eliminates paper based processes as all communications regarding Open Market SEA Card® orders are electronic.

Vendors interested in participating in the program must register with DLA Energy by sending an email to the DLA Energy point of contact below with the following information: Name of Company, Point of Contact, Point of Contact information (i.e. phone, and email address).

For those merchants who have additional questions about the Open Market SEA Card® program please contact the points of contact: Diana Knight, Branch Chief at extension 703-767-9538, or via email diana.knight@dla.mil or Francis Murphy, Contracting Officer, at extension 703-767-8479, francis.c.murphy@dla.mil or Marcarthur Alexandre II, Contract Specialist, at extension 703-767-5494, marcarthur.alexandre@dla.mil.

ADDITIONAL NOTES FOR MERCHANTS SUBMITTING QUOTES ON SEA Card® Online RFQs:

1. At time of offer, you must submit with your quote a copy of the specifications for the fuel you are offering. Specs must be directly uploaded into SEA CARD® ONLINE with your quote. Specs shall be in English or an English language translation must be provided. If you have any difficulties uploading please contact SEA CARD® Customer Support. Failure to provide spec by time of RFQ closing may render your offer nonresponsive and unacceptable.

2. Quote prices must be all-inclusive & as-delivered, to include all applicable taxes, duties, & fees as well as all transportation costs. It is the Merchant’s responsibility to know all costs, taxes, & fees that apply. Cost of oil booms, if required, shall be billed as ancillary after delivery, and should not be included in your price.

3. Each Merchant should submit only one (1) quote on each RFQ. In the event that more than one quote or price is submitted by a single Merchant, the Contracting Officer reserves the right to reject all but one offer from that Merchant.

4. Although the intention of SEA CARD® ONLINE is to minimize discussions to encourage a prompt award, it may be necessary for the Contracting Officer or designee to contact the Merchant to clarify or discuss a point of their offer. Every attempt will be made to reach the Merchant’s representative by phone or Email. However, if this is not successful and time is of the essence to make award, the Contracting Officer reserves the right to reject the quote from that Merchant.

5. The lowest-priced, technically acceptable offer on each RFQ will be awarded. A “technically acceptable” offer is one that meets the Government's supply and schedule requirements as stated in the RFQ, product specification requirements in the RFQ and in Section C, quality assurance requirements in the RFQ and in Section E, and delivery/transportation requirements in the RFQ and in Section F. Offeror-proposed exceptions to any of the foregoing requirements will be thoroughly reviewed for acceptability. The Contracting Officer reserves the right to reject any exceptions.

PROVISIONS - TABLE OF CONTENTS

INDEX

Clause # Title

Page No.

SECTION C: DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C-0001

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

(DLA ENERGY AUG 2012)

C-0002 C36 FUEL OIL, INTERMEDIATE, GRADES RME-180 (IFO 180) AND RMG-380 (IFO 380)

(DLA ENERGY AUG 2011)

C-0003

C3 SPECIFICATIONS/EXCEPTIONS (BUNKERS) (DLA ENERGY JAN 2012)

SECTION E: INSPECTION AND ACCEPTANCE

E-0001

E5.01 INSPECTION AND ACCEPTANCE OF SUPPLIES (SHIPS' BUNKERS) (DLA ENERGY JAN 2013)

SECTION F: DELIVERIES OR PERFORMANCE

FAR 52.211-16

VARIATION IN QUANTITY (APR 1984)

F-0001

F1.01-2 BUNKERING PROVISIONS (DLA ENERGY JAN 2012)

F-0002

F3.01 TRANSPORT TRUCK, TRUCK & TRAILER AND/OR TANK WAGON FREE TIME DETENTION

RATES (BUNKERS) (DLA ENERGY JAN 2012)

F-0003

F16.03 BARGE UNLOADING CONDITIONS (SHIPS' BUNKERS) (DLA ENERGY JAN 2012)

SECTION G: CONTRACT ADMINISTRATION DATA

G-0001

G153 SUBMISSION OF INVOICES FOR NON-FUEL CHARGES – LOCAL PURCHASE PAYMENT

REQUIREMENTS (FUEL CARD SERVICES) (DLA ENERGY JUN 2005)

SECTION I: CONTRACT CLAUSES

FAR 52.204-7

SYSTEM FOR AWARD MANAGEMENT (JUL 2013)

FAR 52.212-4

CONTRACT TERMS AND CONDITIONS – COMMERCIAL ITEMS (MAY 2015)

FAR 52.212-5

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR

EXECUTIVE ORDERS -- COMMERCIAL ITEMS (JUL 2014)

FAR 52.214-34

SUBMISSION OF OFFERS IN THE ENGLISH LANGUAGE (APR 1991)

FAR 52.214-35

SUBMISSION OF OFFERS IN U.S. CURRENCY (APR 1991)

I-0001

I28.01 FEDERAL, STATE, AND LOCAL TAXES (DLA ENERGY NOV 2011) (DEVIATION)

SECTION K: REPRESENTATION AND CERTIFICATIONS

FAR 52.212-3

OFFEROR REPRESENTATIONS AND CERTIFICATIONS -- COMMERCIAL ITEMS (JULY 2016)

K-0001

K15 RELEASE OF PRICES (DLA ENERGY MAR 2009)

SECTION M: EVALUATION FACTORS FOR AWARD

M-0001

M55 CONVERSION FACTORS (DLA ENERGY MAR 2007)

SECTION C: DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C-0001 C16.23-2 COMMERCIAL MARINE GAS OIL MINIMUM REQUIREMENTS ( BUNKERS) (DLA ENERGY AUG 2012)

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

a) Product Classification

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

b) SPECIFICATION MODIFICATIONS

1) Properties

ASTM D5453 or ASTM D1266 or

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

1.0 mass % max.

i) Hydrogen sulfide testing is not required.

2) TESTING

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

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

3) Environmental

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

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

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

c) ADDITIVES

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

d) OTHER REQUIREMENTS

1) Unless otherwise indicated by the Contractor in writing, prior to award, and in accordance with the EVALUATION (SHIP’S BUNKERS) provision, the product offered shall fully meet the applicable specification. The supplier shall provide to the receiving vessel a “Statutory Sample” of at least 400 mL in volume, taken from the receiving vessel’s inlet bunker manifold, together with a Bunker Delivery Note (BDN). This sample will be sealed and carry a sample tag that provides the documentation required per MARPOL 73/78 Annex VI Regulation 18 C-0002 C36 FUEL OIL, INTERMEDIATE, GRADES RME-180 (IFO 180) AND RMG-380 (IFO 380) (DLA ENERGY AUG 2011)

(a) In delivering supplies and services under this contract, the Contractor shall conform to all Federal, State, and local environmental requirements applicable to the geographic location of the receiving activity on the date of delivery. The Contractor shall also comply with all applicable International Agreements, Treaties, Conventions, and the like to which the United States is a signatory or with whose terms the receiving activity has otherwise agreed to comply, including but not limited to, the requirements of MARPOL 73/78 Annex VI Regulations 14 and 18. The Contractor shall be responsible for determining the existence of all such requirements prior to the time deliveries are made.

(1) In the event that an International, Federal, State, and/or local environmental requirement, as identified above, is more stringent than a requirement contained in this contract, the Contractor shall deliver product(s) that complies with the more stringent requirement. Product(s) that fails to meet the more stringent requirement will be considered nonconforming supply. Product(s) to be supplied shall fully meet the requirements of the applicable specification(s). In the event that compliance with the more stringent requirement causes the contractor to incur additional costs, the contractor may request an equitable adjustment.

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

(b) Product shall conform to the latest revision of ISO 8217.

(c) ALTERNATE TEST METHODS. The test methods below can also be used to determine the following requirements:

REQUIREMENTS

TEST METHOD

Density @15oC, kg/m3

ASTM D 4052

Carbon Residue

ASTM D 4530

Vanadium, mg/kg

ASTM D 5863

Aluminum plus silicon, mg/kg

ASTM D 5184

(d) FOR THE BULK PROGRAM. RME-180 (IFO 180) purchased under the DLA Energy Bulk Purchase Program must not exceed a revised maximum sulfur weight percent of 3.5.

(e) REPORTS. Copies of the applicable DD Form 250 or DD Form 250-1 and a copy of the laboratory analysis report for each tank of product lifted shall be emailed, faxed, or mailed to the appropriate address provided below:

EMAIL ADDRESS: PQIS@dla.mil

FAX NUMBER: (703) 767-8747

ATTN: DLA ENERGY-QT, ROOM 2843

DEFENSE LOGISTICS AGENCY ENERGY

8725 JOHN J KINGMAN ROAD

FORT BELVOIR VA 22060-6222

C-0003

C3 SPECIFICATIONS/EXCEPTIONS (BUNKERS) (DLA ENERGY JAN 2012)

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

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

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

(d) If requesting an exception to product requirements in the solicitation, the offeror shall provide the following information:

(1) Offeror name;

(2) Contract Line Item Number, if applicable;

(3) Product, if applicable;

(4) Clause or contract provision number, paragraph, and subparagraph, as appropriate;

(5) Nature of request;

(6) Reason for the request;

(7) Corrective action, if appropriate; and

(8) Supporting documentation

SECTION E: INSPECTION AND ACCEPTANCE

E-0001 E5.01 INSPECTION AND ACCEPTANCE OF SUPPLIES (SHIPS' BUNKERS) (DLA ENERGY JAN 2013)

(a) INSPECTION.

(1) The Contractor shall maintain a written inspection system acceptable to the Government covering all supplies under this contract and shall tender to the Government, for acceptance, only supplies that have been found by the Contractor to conform to the contract requirements. A copy of the written inspection system shall be in English. As part of that system, the Contractor shall be able to provide, for review by the Government, laboratory test data from its suppliers verifying that the supplies being furnished meet the contract requirements. The Government has the right to perform reviews and evaluations, as reasonably necessary, to ascertain compliance with this paragraph. Such reviews and evaluations by the Government shall be conducted in a manner that does not unduly delay contract performance. The right of review, whether exercised or not, does not relieve the Contractor of its obligations under the contract.

(2) The Government has the right to inspect and/or test all supplies called for by the contract, to the extent practicable, at any time or place prior to acceptance. Unless otherwise noted, inspection will be performed by the receiving activity based on documents required to be supplied by the Contractor at the time of delivery. The Government assumes no contractual obligation to perform any inspection or test for the benefit of the Contractor, unless specifically set forth in this contract.

(3) The Government may require the Contractor to provide the following samples of fuel being supplied under this contract, free of cost to the Government, to a testing location to be identified at the time of the request. The samples may be requested by the Contracting Officer or the Quality Manager, as identified in the LIST OF INSPECTION OFFICES FOR DLA ENERGY CONTRACTS contract provision. The conditions under which the sample shall be taken (i.e. location, type) shall be included in the request and any testing performed shall be at the expense of the Government.

(i) A one (1) gallon sample under each line item. Requests for this type of sample shall be limited to no more than six (6) per year (per line item) during the life of the contract. However, if the Government deems that there is an issue with product quality under a specific line item, the Government reserves the right to increase the total number of samples to a maximum of twelve (12) per year for that line item.

(ii) A five (5) gallon sample under each line item. These samples are collected for the purpose of gathering data on world-wide bunker quality. Requests of this type shall be limited to no more than two (2) (per line item) per contract period. These samples shall be shipped to the following address:

ATTN: AIR 4.4.5 FUEL SAMPLE

NAVAL AIR STATION PATUXENT RIVER

HAZMART BUILDING 2385

22680 HAMMOND ROAD

PATUXENT RIVER, MD 20670-1534

(4) If the Government performs inspection or test on the premises of the Contractor or a subcontractor, the Contractor shall furnish, and shall require subcontractors to furnish, at no increase in contract price, all reasonable facilities and assistance for the safe and convenient performance of these duties.

(5) The Government may perform quality validation on samples taken at the point of acceptance, i.e., ship’s manifold. In cases where on-site testing is available, acceptance shall not be conclusive until the results of the on-site tests confirm that the product conforms to the contract requirements. One representative sample, typically three (3) gallons, will be taken and split into three (3) sealed one (1) gallon samples. One sample shall be offered to the Contractor’s representative. One sample shall be submitted by the Contractor’s representative, at no cost to the Government, to a Government approved laboratory for analysis. The remaining sample shall be retained by the Contractor’s representative for a minimum of ninety (90) days. Except as otherwise provided in the contract, the Government shall bear the expense of Government inspections or tests made at other than the Contractor’s or subcontractor’s facilities. In the event the test results on the sample taken at the acceptance point do not conform to contract specifications, the Government may exercise its rights and direct the Contractor to immediately remove the product at the Contractor’s expense. Detainment of the Government vessel for the removal of nonconforming product will be at the Contractor’s expense.

(6) When supplies are not ready for inspection or test at the time specified by the Contractor, the Contracting Officer may charge the Contractor for any additional cost incurred by the Government related to that inspection or test. The Contracting Officer may also charge the Contractor for any additional cost incurred by the Government when prior rejection makes reinspection or retest necessary.

(7) If this contract provides for the performance of Government quality assurance at source, and if requested by the Government, the Contractor shall furnish advance notification of the time when Contractor inspections or tests will be performed in accordance with the terms and conditions of the contract and when the supplies will be ready for Government inspection. The Government's request shall specify the period and method of the advance notification and the Government representative to whom it shall be furnished.

(8) The contractor may provide transportation to/from/between contractor facilities and operations to a DLA Energy representative performing official duties relating to the administration of the contract and the contract price includes any such transportation.

(9) A copy of the latest full specification analysis for the shipping tank shall be provided to the customer at the time of each delivery. If the latest shipping tank analysis is not available, the full specification certificate of quality for the most recent product delivered into that shipping tank shall be provided. Additionally, when product is supplied by barge, the following analysis results shall be provided on a barge composite sample: Appearance, Color, Density, and Flash Point.

(b) ACCEPTANCE. Acceptance of the supplies furnished hereunder will take place at destination notwithstanding that inspection by the Government may take place elsewhere prior to acceptance.

SECTION F: DELIVERIES OR PERFORMANCE

FAR 52.211-16

VARIATION IN QUANTITY (APR 1984)

(a) A variation in the quantity of any item called for by this contract will not be accepted unless the variation has been caused by conditions of loading, shipping, or packing, or allowances in manufacturing processes, and then only to the extent, if any, specified in paragraph (b) of this clause.

(b) The permissible variation shall be limited to:

10 Percent increase 10 Percent decrease This increase or decrease shall apply to EACH DELIVERY ORDER.

F-0001

F1.01-2 BUNKERING (DLA ENERGY JAN 2012)

(a) DELIVERY CONDITIONS.

(1) Unless otherwise specified, all items require delivery f.o.b. destination by means of transport truck, truck and trailer, tank wagon, pipeline, or barge under the following conditions:

(i) Delivery By Pipeline (ex-pipe at pier or wharf). Into Government vessel at a pier or wharf where the following conditions can be met: Pier must accommodate vessels up to 30 feet in draft, 600 feet in length with a displacement of approximately 9,000 tons. Pier must be serviced by a pipeline capable of delivering bunker fuel into the Government vessel at approximately 2,000 barrels per hour. The Contractor will provide a minimum 100-foot length of 4- to 6-inch hose and line handlers.

(ii) Delivery By Barge. Barge capacity of 2,000 - 5,000 barrels with pump/motor to discharge cargo to the Government vessel at approximately 1,500 to 2,000 barrels per hour. The Contractor must provide a clean barge suitable for loading bunker fuel. The Contractor will provide a minimum 100-foot length of 4- to 6-inch hose. The Contractor shall not be required to provide any additional hose unless requested by the receiving activity and accepted by the Contractor. The Contractor shall not be required to hook up hoses with the receiving conveyance prior to scheduled delivery time. When delivery of residual fuels is by barge, the Contractor may deliver using a heated barge for ease of flow.

(iii) Delivery By Tank Truck, Truck And Trailer, Or Tank Wagon. Truck delivery to a berthing pier, provided the berthing pier which must accommodate a Government vessel up to 30 feet in draft, 600 feet in length with a displacement of 9,000 tons. 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. At the Contractor’s option, a transport truck may be substituted for items requiring delivery by truck and trailer.

(iv) Connections. Pump and hose connections to fit requesting vessels shall be provided by the Contractor for each delivery.

(v) Order Size Capacity. Ordered delivery quantities may require multiple delivery conveyances and/or return trips at less than a full load to satisfy the Government's requirement.

(2) Unless otherwise specified in the Schedule and/or contract, delivery into Government vessels (to include dredges & barges) by means of transport truck, truck and trailer, tank wagon, or pipeline shall be made at the specific time specified in the order, provided that such order shall have been received by the Contractor at least 24 hours prior to the specific time such delivery is required to be made. Deliveries by barge shall be made at the specific time specified in the order, provided that such order shall have been received by the Contractor at least 48 hours prior to the specific time such delivery is required to be made. However, if an item in the Schedule annotates a specific response/delivery time restriction/requirement, the Schedule shall dictate. Also see the SUPPLIES TO BE FURNISHED (SHIPS' BUNKERS) contract provision.

(3) 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 vessels being bunkered. The Contractor's delivery personnel who have not exercised reasonable care and delivery equipment which is poorly maintained, may be refused entrance to the bunkering location by the installation Commander, the port authorities and/or US Coast Guard. The Contractor shall present delivery equipment and product in such condition at destination so as to permit complete off-loading within the prescribed lay-time and applicable free time. All delivery equipment and personnel must meet all environmental requirements for over water (marine) fuel deliveries. This is to include the requirements to have an approved U.S. Coast Guard Oil Response Plan for domestic ports.

(4) Unless otherwise specified in the Schedule and/or contract, orders placed under this contract may be cancelled by an authorized Ordering Officer within the following time period without incurring cancellation charges—

(i) Delivery into Government vessels (to include dredges and barges) by means of transport truck, truck and trailer, tank wagon, Marine Service Station, or pipeline: No less than 24 hours prior to the specific time such delivery is required to be made;

(ii) Deliveries by barge: No less than 48 hours prior to the specific time such delivery is required to be made; or

(iii) No less than the minimum delivery notice as stated in the Schedule, if different from the above.

(b) LOADING TEMPERATURE. Product offered as bunkers to U.S. Navy and Coast Guard Vessels (excluding those controlled by the Military Sealift Command) shall not exceed 49 degrees Celsius (120 degrees Fahrenheit) temperature at time of delivery. On all other bunkerings the product shall be at least 5.5 degrees Celsius (10 degrees Fahrenheit) below the flash point of the product and in no case higher than 66 degrees Celsius (150 degrees Fahrenheit) if the tanks are uncoated, or 57 degrees Celsius (135 degrees Fahrenheit) if coated; PROVIDED, however, that in no event shall the difference between the temperature of the product entering the tanker manifold and the recorded temperature of the seawater at the tanker's condenser intake exceed 39 degrees Celsius (70 degrees Fahrenheit); PROVIDED, further, that the Master of the vessel may authorize loading the product at a temperature higher than specified above so long as the temperature of the product remains at least 5.5 degrees Celsius (10 degrees Fahrenheit) below the flash point of the product.

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

(1) DELIVERY BY BARGE. On items delivered by barge, the quantity shall be determined (at the Contractor's option) on the basis of--

(i) Origin Shore Tank Measurements. If the vessel is unable to receive any or all of the delivery, the Contractor must immediately notify the DLA Energy Contracting Officer of the circumstances and provide documentation to substantiate the quantity and location where excess product has been off-loaded); or

(ii) Calibrated Meter; or

(iii) Gauging the barge before and after delivery.

(iv) The Government reserves the right to have a representative present to witness the measurement of quantity.

(2) DELIVERY BY PIPELINE OR FROM MARINE SERVICE STATION INTO VESSEL. On items delivered by pipeline or from Contractor's marine service station, the quantity shall be determined (at the Contractor's option) on the basis of--

(i) Origin shore tank measurements; or

(ii) Calibrated meter.

(iii) The Government reserves the right to have a representative present to witness the measurement of quantity.

(3) DELIVERY BY TANK TRUCK/TRUCK AND TRAILER/TANK WAGON INTO VESSEL. On items delivered by TANK TRUCK/TRUCK AND TRAILER/TANK WAGON, the quantity shall be determined (at the Contractor’s option) on the basis of--

(i) Calibrated meter; or

(ii) Certified capacity tables. The tables must be made available at the time of delivery; or

(iii) Certified tank calibration markers. Certified tank calibration markers will not be accepted unless the conveyance is full to the marker and the entire quantity is delivered; or

(iv) The net quantity determined at the loading point by a calibrated loading rack meter or calibrated scales. This quantity must be mechanically imprinted on the loading rack meter ticket that is generated by the loading rack meter or calibrated scales. If this method is used, the Government reserves the right to determine the quantity received at time of delivery by any valid means available.

(v) The Government shall have the right to have a representative present to witness the measurement of quantity.

(vi) In any case, at the Government's option, quantity may be determined at the receiving activity on the basis of--

(A) Weight, using calibrated scales; or

(B) A calibrated meter on the receiving tank system.

(vii) The Contractor has the right to have a representative present to witness the delivery and measurement of quantity.

(4) WATER BOTTOMS.

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

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

(5) VOLUME CORRECTION. Volume correction to liters at 15 degrees Celsius (or gallons at 60 degrees Fahrenheit) is required for--

(i) All product volumes determined by gauging.

(ii) All product volumes determined by loading rack meters.

(iii) All pipeline tenders.

(iv) All product volumes determined by weight.

(v) All product volumes determined by meters or calibrated markers that are in excess of 20,000 liters (5,000 gallons) or that have a kinematic viscosity equal to or greater than 5.5 mm3/s.

(6) 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 of 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. In addition, the following specific standards will be used as applicable:

(i) API MPMS Chapter 11.1, Volume Correction Factors (API 2540/ASTM D 1250/IP 200/ISO 91-1). Either the printed version or the computer subroutine versions of the standard may be used.

(A) Use Volume VIII, Tables 53B and 54B (or Volume II, Tables 5B and 6B) for all bunker fuels.

(B) Volume XII, Table 52, shall be used to convert cubic meters at 15 degrees Celsius to barrels at 60 degrees Fahrenheit, except when this method is restricted by foreign law. 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 stated in the offer.

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

(a) Volume XII, Table 58, shall be used to convert metric tons to U.S. gallons at 60 degrees Fahrenheit.

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

(D) If the original measurement is by volume and quantity is required in metric tons, then metric tons shall be calculated by multiplying the volume in (m3) at 15 degrees Celsius by the density (in kg/m3) at 15 degrees Celsius. Convert kilograms to metric tons by dividing by 1,000.

(ii) 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.

(d) BACK-HAUL. NOTE: Navy and USCG regulations may require certain vessels to "top-off" for maintaining a specific reservoir of fuel quantity on-board at all times when on stand-by mode. In addition, instability of the vessel in water may result in variances between the quantity ordered vice receivable by the vessel resulting in returned product.

(1) On f.o.b. destination deliveries as ships’ bunkers, excess quantities ordered but not accepted by the Government will be referred to as back-haul. Back-haul charges are only those transportation charges associated with returning the excess quantities to the supply terminal or, if not returnable, incurred demurrage until the product is sold off the barge or truck all resulting in back-haul. Contractors shall limit the time product remains in transit or on-board the barge or truck until sold to another party to mitigate costs. Failure to do so may result in denial of the claim.

(2) Any back-haul remaining after delivery has been made will be handled as follows:

(i) SEA Card Order Management System (SEA CARD® ONLINE) Orders.

(A) Charges for detention are deemed ancillary, non-fuel charges and are the responsibility of the activity incurring them. In accordance with the SUBMISSION OF INVOICES FOR NON-FUEL CHARGES – LOCAL PURCHASE PAYMENT REQUIREMENTS (FUEL CARD SERVICES) contract provision, the Contractor shall invoice these charges using SEA CARD® ONLINE, upon approval by the activity, the Credit Card Processor (CCP) will pay the Contractor and the CCP will then bill the receiving activity.

(B) In the event the incurring activity disputes the charge(s), the DLA Energy Contracting Officer in accordance with procedures set form in subparagraph (ii) below for non-SEA CARD® ONLINE orders. The Contractor may include the SEA CARD® ONLINE processing fee as parts of its claim which must be clearly identified and expresses as a whole number, not a percentage.

(ii) Non-SEA CARD® ONLINE Orders

(A) The Contractor shall notify the Contracting Officer and the Ordering Officer as to the amount and type of product not taken by the vessel and the location(s) that caused the back-haul.

(B) The Contractor shall file a claim against the Government for returned quantities. This claim shall be submitted to the Contracting Officer in accordance with procedures set forth in paragraph (d), Disputes, of the CONTRACT TERMS AND CONDITIONS – COMMERCIAL ITEMS clause. For back-haul: A copy of the transportation provider’s and/or supplier’s invoice for the transportation cost must be provided as evidence to substantiate the actual cost of transportation cost per unit of issue. For demurrage leading to sold product: A detailed copy of the incurred demurrage charge must be provided as evidence to substantiate the demurrage rate. A copy of the written fuel order (as cited in the SUPPLIES TO BE FURNISHED (BUNKERS) contract provision) and signed receiving reports from the Government must also be submitted for all claims described above.

(C) Claims shall be forwarded to the Contracting Officer, with supporting documents, no later than 120 days after the original delivery date, failing which the Government shall be discharged from any and all liability in respect thereof.

(3) Product downgraded due to its inability to be reintroduced into a terminal shall be treated as a separate claim unlike back-haul. Contractors must submit all supporting documentation of this result to the Contracting Officer to substantiate the claim and within the time-frame as described in (C) above.

(e) CONTRACTOR DELIVERY DELAYS.

(1) The Contractor shall be liable for costs the Government incurs due to delays/detainments/demurrage of vessels when--

(i) The actual pumping rate for the method of delivery does not meet the required contract rate;

(ii) The Contractor fails to deliver due to fuel shortages/outages;

(iii) The Contractor cannot deliver by the contracted method of delivery;

(iv) The Contractor fails to provide the proper delivery conveyance equipment; or

(v) Any other delay or default does not constitute an excusable delay.

(2) Any demurrage claims against the Contractor shall be computed to the nearest half hour.

(3) MILITARY SEALIFT COMMAND (MSC) VESSELS.

(i) If the delayed vessel is under a voyage (spot) charter, demurrage may be assessed at the rate provided in the charter. For long term barge contracts not awarded by MSC, demurrage may be assessed at the contract hire rate for the vessel. In all cases when the vessel is under charter, the demurrage payable by the Contractor shall not exceed the actual demurrage expense incurred by the Government.

(ii) If the vessel is not under a voyage charter, demurrage may be assessed at the demurrage rate for that class of vessel as published by the MSC.

(4) Acceptance of a late delivery shall be for the purpose of mitigating damages and shall not constitute a waiver of the Government’s right to recover delay damages from the Contractor.

F-0002 F3.01 TRANSPORT TRUCK, TRUCK AND TRAILER AND/OR TANK WAGON FREE TIME AND DETENTION

RATES (BUNKERS) (DLA ENERGY JAN 2012)

(a) Upon arrival of Contractor's transport truck, truck and trailer, or tank wagon, the receiving activity shall promptly designate the delivery point into which the load is to be discharged.

(b) DETENTION BEYOND FREE TIME CAUSED BY THE GOVERNMENT.

(1) SEA Card Order Management System (SEA CARD® ONLINE) Orders.

(i) Charges for detention are deemed ancillary, non-fuel charges and are the responsibility of the activity incurring them. In accordance with the SUBMISSION OF INVOICES FOR NON-FUEL CHARGES – LOCAL PURCHASE PAYMENT REQUIREMENTS (FUEL CARD SERVICES) contract provision, the Contractor shall invoice these charges using SEA CARD® ONLINE, upon approval by the activity, the Credit Card Processor (CCP) will pay the Contractor and the CCP will then bill the receiving activity.

(ii) In the event the incurring activity disputes the charge(s), the DLA Energy Contracting Officer will be provided documentation from both parties in order to arbitrate a settlement. In the event an agreement cannot be reached through Alternate Dispute Resolution (ADR), via arbitration, the Contractor shall file a claim in accordance with the Contract Disputes Act of 1978 and the CONTRACT TERMS AND CONDITIONS – COMMERCIAL ITEMS (BUNKERS) clause. The Contractor may include the SEA CARD® ONLINE processing fee as parts of its claim which must be clearly identified and expressed as a whole number, not a percentage.

(2) Non-SEA CARD® ONLINE Orders. The Contractor shall be paid for detention beyond free time for delays caused by the Government. Detention costs will be the sole responsibility of the activity incurring them. Any invoices for detention costs will be forwarded directly to the activity receiving the product.

(3) Unless otherwise specified in the delivery narrative for a particular line item, a minimum of one hour free time is required per item requiring transport truck, truck and trailer, or tank wagon delivery.

(i) Additional free time beyond the stated minimum per item for unloading a transport truck, truck and trailer, or tank wagon in excess of the required one hour.

Item Number

Additional Free Time

(ii) Rate per item detention beyond required, plus any additional free time.

Item Number

Rate per hour

(iii) Notwithstanding the above, the Government is entitled to at least as much free time as is allowed by the common carrier or that the Contractor normally allows its regular commercial customers, whichever is greater. In addition, the Government will not pay more in detention rates that the actual rate charged by the common carrier or the rate the Contractor normally charges its regular commercial customers, whichever is lower. UNLESS THE OFFEROR OTHERWISE INDICATES IN PARAGRAPH (b)(3)(i) and (ii) ABOVE, FREE TIME WILL BE CONSIDERED UNLIMITED.

(iv) NOTE: The above free time and detention rates will not be considered in the evaluation of offers for award.

F-0003

F16.03 BARGE UNLOADING CONDITIONS (SHIPS' BUNKERS) (DLA ENERGY JAN 2012)

(a) ORDERING PROCESS. The supplies ordered hereunder shall be delivered to the destination specified in a verbal order and/or DD 1155, SF 44, SF 1449, OF 347, or CD 404 (to be referred to in this contract provision as the “ordering document”), in accordance with the contract schedule, unless mutually agreed to by the parties. Unless otherwise specified in the contract, orders placed for bunkers for delivery (anchorage and/or pier-side) by means of barge will be furnished to the Contractor at least 48 hours, in advance of the date/time on which delivery is to be made, which date is hereinafter referred to in this contract provision as the “scheduled delivery date”. Each order will specify the quantity to be delivered, the scheduled delivery date, and location.

(b) SCHEDULED DELIVERY DATE. The scheduled delivery date may be changed by mutual agreement of the parties. If an agreement on a new scheduled delivery date cannot be reached, the previous scheduled delivery date will be maintained.

(c) EXPECTED TIME OF ARRIVAL. Unless otherwise specified in the delivery narrative for a particular line item, the Contractor must provide to the receiving Government vessel a notice of readiness to bunker at least 2 hours prior to the scheduled bunkering. The Government shall provide a safe and assessable berth for the Contractor’s bunkering vessel, not later than 2 hours after receipt of the Contractor’s bunkering vessel’s notice of readiness to bunker.

(d) LAYTIME. Unless otherwise provided in the ordering document, the Government shall be allowed and will complete receipt of the bunkers within laytime determined as follows:

(1) One hour for each 1,500 barrels of supplies to be bunkered. (Example: Quantity to be bunkered is 4,000 barrels, laytime will be 2 hours and 40 minutes.) This assumes the barge delivering bunkers is capable of pumping into the receiving vessel at a rate of 1,500 barrels per hour (BPH). Laytime will be extended by the appropriate additional time when the pumping rate is less than 1,500 BPH.

(2) Laytime shall commence as follows:

(i) At Notice of Readiness (NOR) plus 1 hour; or

(ii) Immediately upon arrival in berth of the Contractor’s bunkering barge (i.e., all fast) provided that the Contractor provided notice of readiness to bunker at the proper time. (See paragraph (c) above.)

(iii) Laytime shall continue 24 hours a day, 7 days a week, without interruption, unless port authority regulations require differently, from its commencement until bunkering of the barge is completed and the hoses have been disconnected.

(e) LAYTIME CREDIT.

(1) If regulations of the Port Authority prohibit bunkering at any time, time so lost shall be added to the amount of allowed laytime.

(2) Delays, after commencement of laytime, attributed to the condition of the bunkering barge or delays caused by a failure of the bunkering barge will be added to the allowed laytime. In the event of Contractor delay, if total adjusted laytime is not fully utilized and/or is exceeded due to further Contractor delays, the provisions of paragraph (e), Contractor Delivery Delays, of the contract provision entitled BUNKERING PROVISIONS may be utilized.

(3) Delays, after commencement of laytime, attributed to causes beyond the control and without the fault or negligence of the Contractor or the Government will result in increasing basic allowed laytime for one half of the delay.

(4) Delays caused solely by the Government, due to late arrival of the vessel, late commencement, and/or late continuation of the delivery, will be deducted from allowed laytime and/or freetime after coordination with the Chief Engineering and/or Ordering Officer. In the event of Government delay, if total allowed laytime and freetime are exceeded, the Contractor may bill for detention charges in accordance with paragraph (i) below. Evidence of such delay must be provided.

(f) DELAYS. In the vent of a breakdown of the Contractor’s equipment, which prohibit bunkering for at least 2 hours, the Contractor will be required to remove the equipment from the Government-provided berth, unless permission is granted by the Government to allow the equipment to remain at berth. When the Government grants permission for the Contractor’s equipment to remain at berth, the Contractor will be responsible to reimburse the Government for any cost incurred by the Government for furnishing personnel to remain with the barge during repair. If the Contractor removes the equipment from the Government-provided berth, notice of readiness to bunker will be again required as provided in paragraph (b) above.

(g) EQUIPMENT. Hoses for bunkering a barge shall be provided by the Contractor. However, the Government shall be responsible for connecting and disconnecting the hoses at the flange of the receiving Government vessel.

(h) TITLE. Title to the supplies delivered, and risk of loss thereof, shall pass from the Contractor to the Government when the supplies cross the receiving Government vessel’s manifold.

(i) DETENTION RATE.

(1) SEA Card Order Management System (SEA CARD® ONLINE) Orders.

(i) Charges for detention are deemed ancillary, non-fuel charges and are the responsibility of the activity incurring them. In accordance with the SUBMISSION OF INVOICES FOR NON-FUEL CHARGES – LOCAL PURCHASE PAYMENT REQUIREMENTS (FUEL CARD SERVICES) contract provision, the Contractor shall invoice these charges using SEA CARD® ONLINE, upon approval by the activity, the Credit Card Processor (CCP) will pay the Contractor and the CCP will then bill the receiving activity.

(ii) In the event the incurring activity disputes the charge(s), the DLA Energy Contracting Officer will be provided documentation from both parties in order to arbitrate a settlement.