20200108 FMS Amendment 0002.pdf

Block 14 (cont’d)

A. The purpose of this amendment is to add approved alternate escalators under B19.33

ECONOMIC PRICE ADJUSTMENT – PUBLISHED MARKET PRICE – DLA ENERGY

DOMESTIC BULK. (DLA ENERGY JUNE 2017) and to delete K5 USE OF ELECTRONIC DATA INTERCHANGE (DLA ENERGY MAR 2009) from the Offer Submission Package.

1. Clause B19.33 ECONOMIC PRICE ADJUSTMENT – PUBLISHED MARKET PRICE – DLA ENERGY DOMESTIC BULK. (DLA ENERGY JUNE 2017) is deleted in its entirety and replaced by the following:

B19.33 ECONOMIC PRICE ADJUSTMENT – PUBLISHED MARKET PRICE – DLA

ENERGY DOMESTIC BULK. (DLA ENERGY JUNE 2017)

(a) Warranties. The Contractor warrants that—

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

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

(b) Definitions. As used throughout this contract text, the term—

(1) Base unit price means the unit price set forth opposite the item in the Schedule.

(2) Market price means the price to be used in determining an economic price adjustment of the base unit price of an individual product for the market area and time period specified in this contract text. The market price is derived from quotes, assessments, or sales prices in the market place for one or several items or commodity groups as reported in a consistent manner in a publication, electronic data base, or other form, as determined by an independent trade association, governmental body, or other third party independent of the Contractor.

(i) Base market price means the price as shown in Column V of the table below, which is the market price from which economic price adjustments are calculated pursuant to this contract text.

(ii) Adjusting market price means the market price for deliveries during the most recent period, as defined in the table below.

(3) Date of delivery is defined as follows:

(i) For tanker or barge deliveries.

(A) Free on board (f.o.b.) origin. The date and time vessel commences loading.

(B) F.o.b. destination. The date and time vessel commences discharging.

(ii) For pipeline deliveries. The date and time product commences to move past the specified f.o.b. point.

(iii) For all other types of deliveries. The date product is received.

(c) Adjustments.

(1) Subject to the wording of this contract text, the price payable shall be the base unit price in effect on the date of delivery increased or decreased by the same number of cents, or fraction thereof, that the adjusting market price applicable at date of delivery increases or decreases, per like unit of measure, from the base market price.

(2) Calculations. All calculations shall be rounded to six decimal places.

(3) Modifications. Any resultant price changes to the base market price and base unit price shall be executed by the Contracting Officer through a weekly price adjustment modification effective each Tuesday.

(4) Failure to deliver. Notwithstanding any other wording of this contract text, no upward adjustment shall apply to product scheduled under the contract to be delivered before the effective date of the adjustment, unless the Contractor’s failure to deliver according to the delivery schedule results from causes beyond the Contractor’s control and without its fault or negligence, within the meaning of paragraphs (f), Excusable Delays, and (m), Termination for Cause, of the Contract Terms And Conditions - Commercial Items clause of this contract, in which case the contract shall be amended to make an equitable extension of the delivery schedule.

(5) Upward ceiling on economic price adjustment. The Contractor agrees that the total increase in any contract unit price, pursuant to these economic price adjustment contract texts shall not exceed 330 percent of the original base unit price in any applicable program year (whether a single year or multiyear program), except as provided hereafter.

(i) If at any time the Contractor has reason to believe that within the near future a price adjustment under the wording of this contract text 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 which the Contractor believes is sufficient to permit completion of remaining contract performance, along with appropriate explanation and documentation as required by the Contracting Officer.

(ii) If an actual increase in the established market 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.

(6) Revision of market price indicator. In the event—

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

(ii) The Contracting Officer determines that the market price indicator consistently and substantially fails to reflect market conditions,-the parties shall mutually agree upon an appropriate and comparable substitute and the contract shall be modified to reflect such substitute effective on the date the indicator was discontinued, altered, or began to consistently and substantially fail to reflect market conditions. If the parties fail to agree on an appropriate substitute, the matter shall be resolved in accordance with paragraph (d), Disputes, of the Contract Terms And Conditions - Commercial Items contract text of this contract.

(d) Conversion factors. If this contract text requires quantity conversions for economic price adjustment purposes, the conversion factors for applicable products, as specified in the DLA Energy conversion factor instruction, apply unless otherwise specified in the Schedule.

(e) Examination of records. The Contractor agrees that the Contracting Officer or designated representative 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 wording of this contract text.

(f) Final invoice. The Contractor shall include a statement on the final invoice that the amounts invoiced hereunder have applied all decreases required by this contract text.

I II III IV V

Item No. Name of Publication

Heading under which market indicator is published and name of product

Location where market price is applicable

Base market price as of Aug 27, 2019 (excludes all taxes) (see note(s) below)

0001, 0003, 0005, 0007, 0009

EAST/GULF/

INLAND/

OFFSHORE JP8

PLATT’S

OILGRAM

PRICE

REPORT

JET KERO 54

US GULF PIPE

U.S. GULF

COAST

$1.812500

The reference price shall be determined as follows: 100% Average of the Low and High U.S. Gulf Coast

NOTE: Prices based on this escalator will change on Tuesdays based on the prior week average. The simple average of the daily average highs and lows of the prices effective Monday through Friday (excluding any days prices are not published) shall be the adjusting market price effective for the following Tuesday through Monday.

Publication

Heading under which market indicator is published and name of product

Location where market price is applicable

Base market price as of Aug 27, 2019 (excludes all taxes) (see note(s) below)

0002, 0004, 0006, 0008, 0010

EAST/GULF/

INLAND/

OFFSHORE

DIESEL (EN590)

PLATT’S

OILGRAM

PRICE

REPORT

ULSD

PIPELINE

U.S. GULF

COAST

$1.801260

The reference price shall be determined as follows: 100% Average of the Low and High U.S. Gulf Coast

NOTE: Prices based on this escalator will change on Tuesdays based on the prior week average. The simple average of the daily average highs and lows of the prices effective Monday through Friday (excluding any days prices are not published) shall be the adjusting market price effective for the following Tuesday through Monday.

Publication

Heading under which market indicator is published and name of product

Location where market price is applicable

Base market price as of Aug 27, 2019 (excludes all taxes) (see note(s) below)

0001, 0003, 0005, 0007, 0009

EAST/GULF/

INLAND/

OFFSHORE JP8

PLATT’S

OILGRAM

PRICE

REPORT

PLATTS JET

KERO 54 USGC

PIPELINE

U.S. GULF

COAST

$1.796733

The reference price shall be determined as follows: 100% Average of the Low and High U.S. Gulf Coast

NOTE: Prices based on this escalator will change daily using a 3 day wrap average (1-1-1). The escalator price will be the average of the day prior to the lifting date, the day of, and the day after the lifting date. On days when prices are not published, the escalator price will remain the same as the last day on which prices were published. When using this escalator please note that if awarded a contract, invoicing must be completed two

(2) business days after the delivery date.

Offers based on this escalator will be subject to a positive adjustment factor of +0.017015 for evaluation purposes only. This evaluation factor represents the spread between the difference of the two reference prices and the 12-month averages of both market price indicators.

Publication

Heading under which market indicator is published and name of product

Location where market price is applicable

Base market price as of Aug 27, 2019 (excludes all taxes) (see note(s) below)

0002, 0004, 0006, 0008, 0010

EAST/GULF/

INLAND/

OFFSHORE

DIESEL (EN590)

PLATT’S

OILGRAM

PRICE

REPORT

PLATTS ULS

HEATING OIL

USGC

PIPELINE

U.S. GULF

COAST

$1.764733

The reference price shall be determined as follows: 100% Average of the Low and High U.S. Gulf Coast

NOTE: Prices based on this escalator will change daily using a 3 day wrap average (1-1-1). The escalator price will be the average of the day prior to the lifting date, the day of, and the day after the lifting date. On days when prices are not published, the escalator price will remain the same as the last day on which prices were published. When using this escalator please note that if awarded a contract, invoicing must be completed two

(2) business days after the delivery date.

Offers based on this escalator will be subject to a positive adjustment factor of + 0.013332 for evaluation purposes only. This evaluation factor represents the spread between the difference of the two reference prices and the 12-month averages of both market price indicators.

2. K5 USE OF ELECTRONIC DATA INTERCHANGE (DLA ENERGY MAR 2009)

is deleted from the Offer Submission Package.

B. All other terms and conditions shall remain unchanged and in full force and effect.