OFFEROR_SUBMISSION_PACKAGE_15-R-0205.pdf

PUERTO RICO/V.I. POST, CAMPS, AND STATIONS (PC&S) OFFEROR SUBMISSION PACKAGE- SPE600-15-R-0205

OFFEROR SUBMISSION

PACKAGE

SOLICITATION: SPE600-15-R-0205 3.11 PUERTO RICO & US VIRGIN ISLANDS PC&S

PROGRAM

THE ENCLOSED SOLICITATION COVERS THE PERIOD:

1 APRIL 2015 THROUGH 31 MARCH 2018

INSTRUCTIONS:

1. The original completed package must be returned to John Stanislaus/DLA-ENERGY- FEPBB/RM 3938/Defense Energy Support Center/8725 John J. Kingman Road, Suite 3938/Fort Belvoir, VA 22060-6222 as your offer.

All documents requiring fill-in or completion are contained in this Offeror Submission Package

(OSP):

X Standard Form SF 1449, Solicitation/Contract/Order for Commercial Items

X Certification and Representations (Fill-in-Clauses)

2. Please review all offer prices submitted. Offers must shown as price per gallon (e.g. $0.0000), not price differentials. Prices should be listed on the price data sheet provided. The price data may be reproduced as needed.

3. Please review your offer package for accuracy and legibility prior to submission. Initial all changes and sign and date the Standard Form 1449 in ink.

4. Facsimile Proposals may be submitted in accordance with Clause 52.215-5, FACSIMILE

PROPOSALS –COMMERCIAL ITEMS (NOV 1999).

5. Electronic Proposals may be submitted in accordance with Clause L2.11-4, E-MAIL

PROPOSALS (DESC APR 2005).

6. By submitting this package, you accept the terms and conditions of the entire solicitation, and that these terms and conditions are applicable to your offer, unless exceptions are clearly stated herein.

SPECIAL INSTRUCTIONS

A. CLOSING DATE: February 9, 2015, 3:00 PM, EASTERN TIME.

B. PROPOSAL SUBMISSION: Offeror(s) shall submit proposals and offer prices for all of the line items listed above in the Post Camps and Stations (PC&S) Offeror Entry Tool (OET).

PC&S OET is an external web application which allows prospective Posts, Camps & Stations / ground fuel vendors to securely bid on a DLA-Energy fuel Solicitation. Offeror must be registered in the PCS OET application in order to submit proposals. In order to have system access to PCS OET, offerors must request the applicable user roles at https://dla.deps.mil/dod/dla/dlaenergy/customer/SitePages/Account%20Management%20and% 20Provisioning%20System%20(AMPS).aspx

For a detailed guide to registering for the applicable role in AMPS, please visit:

https://dla.deps.mil/dod/dla/dlaenergy/customer/Customer%20Resources/AMPS/AMPS%20Ext ernal%20Energy%20User%20Guide%20Ver%201.4.4E.pdf

Please allow at least 5 business days for registration approval. For assistance in acquiring access to the PC&S OET application, please contact John Stanislaus at john.stanislaus@dla.mil or Marty Pratt at marty.pratt@dla.mil.

C. Once an offeror is registered in the PCS OET application, the offeror will log onto the application and select a solicitation to bid on. The offeror will then select the applicable line items and enter offer prices for each line item. The offeror will then submit its bid package on the PCS OET website along with its offer prices.

D. LATE OFFERS: Please note that offers must be received by, February 9, 2015, 3:00 PM

Eastern Time. Any offer received after 3:00 PM will be considered “late” and may be determined unacceptable. See Clause FAR 52.212-1 INSTRUCTIONS TO OFFERORS – COMMERCIAL ITEMS (PC&S) (DLA ENERGY MAR 2009), subparagraph (f) LATE

SUBMISSIONS, MODIFICATIONS, REVISIONS, AND WITHDRAWALS OF OFFERS.

E. AWARD WITHOUT DISCUSSIONS: Offerors are directed to paragraph (m) of Clause FAR

52.212-1 INSTRUCTIONS TO OFFERORS – COMMERCIAL ITEMS (PC&S) (DLA

ENERGY JUN 2008). While the Government intends to evaluate offers on the “lowest price technically acceptable” basis and award a contract without discussions, it reserves the right to conduct discussions if later determined by the Contracting Officer to be necessary. Therefore, those participating are advised to submit their best prices with their initial offer. If the Contracting Officer determines that negotiations are necessary, the Government will then evaluate proposals and award a contract after conducting discussions with Offerors whose proposals have been determined to be within the competitive range.

F. CONTRACT TYPE: This is a three (3) year multiyear solicitation for gasoline, gasohol, distillate fuels. Contracts awarded as a result of this solicitation will be REQUIREMENTS TYPE CONTRACTS, FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENTS. Please refer to Clauses FAR 52.216-1, TYPE OF CONTRACT (APR 1984) and FAR 52.216-21

REQUIREMENTS (OCT 1995).

https://dla.deps.mil/dod/dla/dlaenergy/customer/SitePages/Account%20Management%20and%20Provisioning%20System%20(AMPS).aspx https://dla.deps.mil/dod/dla/dlaenergy/customer/SitePages/Account%20Management%20and%20Provisioning%20System%20(AMPS).aspx https://dla.deps.mil/dod/dla/dlaenergy/customer/Customer%20Resources/AMPS/AMPS%20External%20Energy%20User%20Guide%20Ver%201.4.4E.pdf https://dla.deps.mil/dod/dla/dlaenergy/customer/Customer%20Resources/AMPS/AMPS%20External%20Energy%20User%20Guide%20Ver%201.4.4E.pdf mailto:john.stanislaus@dla.mil mailto:marty.pratt@dla.mil

EVALUATION: Please be advised that the Government will be awarding contract(s) to the responsible offeror(s) on the “Lowest Price Technically Acceptable Basis.” Proposals will be evaluated pursuant to FAR 52.212-2 – Evaluation – Commercial Items. The contracting officer will evaluate proposals in accordance with the FAR 15.101-2 Lowest Price Technically Acceptable source selection process. In order to be considered for award an offeror must meet or exceed technical acceptability standards for the following non-price factors: Supplies; Terms and Conditions and Past Performance. Offerors should thoroughly read and understand the terms and conditions contained in the solicitation. Failure to provide any information requested in the solicitation may render an offeror’s proposal technically unacceptable, and preclude it from any further consideration for contract award. Offerors should ensure that the information contained in their proposal is factual, accurate, and complete.

G. Pursuant to FAR Clause 52.214-34 Submission of Offers in the English Language (Apr 1991) all offers submitted in response to this solicitation must be in English. Offers received in other than the English language will not be considered for contract award by DLA Energy.

H. Pursuant to FAR 52.214-35 Submission of Offers in U.S. Currency (Apr 1991) all proposed prices for requirements issued under this solicitation must be in U.S. Dollars. Offer prices not submitted in U.S. Dollars will not be considered for contract award by DLA Energy.

I. Proposed prices should reflect pricing based on U.S. Gallons (USG). Offer prices not based on

U.S. Gallons (USG) will not be considered for award.

J. ECONOMIC PRICE ADJUSTMENT AND BASE REFERENCE PRICE: Please refer to

Clause B-0002, B19.02 ECONOMIC PRICE ADJUSTMENT (OVERSEAS) (DLA ENERGY JAN 2012). The base reference date is 22 December 2014 for prices averaged from 15 December 2014 to 19 December 2014. Offerors should use the preferred publication from B19.02 as the escalation reference for their offer prices.

K. ORDERING PERIOD: The ordering period for all contracts awarded under this solicitation will be 1 April 2015 through 31 March 2018. Quantities stated in the SCHEDULE represent the Government’s best estimates covering a three (3) year requirement.

L. PERIOD FOR ACCEPTANCE OF OFFERS: Pursuant to paragraph (d) of Clause (FAR

52.212-1), INSTRUCTIONS TO OFFERORS – COMMERCIAL ITEMS (PC&S), Offerors agree to honor prices indicated in their Offeror Submission Packages for 120 calendar days from the date specified for receipt of offers, unless another time period is specified in an addendum to the solicitation.

M. SYSTEM FOR AWARD MANAGEMENT (SAM) registration is required prior to contract award. See paragraph (k) of Clause FAR 52.212-1, INSTRUCTIONS TO OFFERORS- COMMERCIAL ITEMS (APR 2014) and paragraph (t) of Clause FAR 52.212-4 CONTRACT TERMS AND CONDITIONS-COMMERCIAL ITEMS (MAY 2014). The SAM is a central repository of trading partner information about firms qualified to conduct business with the Federal Government. Contractors register one time and confirm on an annual basis that their

SAM registration is complete and accurate. Offerors may obtain information on registration and annual confirmation requirements at https://www.acquisition.gov or by calling 1-866-606-8220 or 334-206-7828.

N. COMMERCIAL AND GOVERNMENT ENTITY (CAGE) CODE REPORTING: Please insert your CAGE code in Block 17a of the SF 1449, in the space marked “Facility Code”: If you have not been assigned a CAGE code, insert the word “None” in the block.

O. DUNS NUMBER: Include your company’s Data Universal Numbering System Number on all

Price Data Sheet(s) in your Offeror Submission Package.

P. NOTICE: ANY CONTRACT AWARDED TO A CONTRACTOR WHO AT THE TIME OF

AWARD WAS SUSPENDED, DEBARRED, OR INELIGIBLE FOR RECEIPT OF

CONTRACTS WITH THE GOVERNMENT AGENCIES OR IN RECEIPT OF A

PROPOSED DEBARMENT FROM ANY GOVERNMENT AGENCY IS VOIDABLE AT

THE OPTION OF THE GOVERNMENT.

Q. ACKNOWLEDGEMENT OF AMENDMENTS: YOU MUST ACKNOWLEDGE

RECEIPT OF ANY AMENDMENTS TO THIS SOLICITATION. You may do this by completing Block 8 and signing and returning one (1) copy of the amendment.

R. All offerors are required to complete the Offeror Submission Package (OSP) in its entirety.

Clauses that require “fill-in” are included in the OSP with DLA Energy Clause B1.05-2, Supplies To Be Furnished (Overseas PC&S) (DLA Energy Jan 2012).

S. POINTS OF CONTACT:

Emergency Situations after Duty Hours

OPERATIONS CENTER,

CONTINGENCY PLANS AND OPERATION DIVISION

(703) 767-8420

Information Regarding Solicitation SPE600-15-R-0205 John Stanislaus (703) 767-9512; email: john.stanislaus@dla.mil Marty D. Pratt (703) 767-9525; email: marty.pratt@dla.mil https://www.acquisition.gov/ mailto:john.stanislaus@dla.mil mailto:marty.pratt@dla.mil

B1.01 SUPPLIES TO BE FURNISHED (DOMESTIC PC&S) (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 clause.

(b) All items of this contract call for delivery f.o.b. destination unless the item otherwise specifies. The destination for each item is the point of delivery shown in the particular item.

(c) Written telecommunication (facsimile) is authorized for transmittance of a properly completed order. In an emergency, oral orders may be issued but must be confirmed in writing by an order within 24 hours.

(d) If any gasoline items are included in this document, they may require oxygenated fuel as a result of changes in environmental laws. See the SPECIFICATIONS (CONT'D) (PC&S 3.11) clause for a listing of counties, cities, and townships that require oxygenated gasoline during the period listed.

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

(1) IFBs. Any bids received for less than the full quantity for each line item will be considered nonresponsive and will be rejected by the Government.

(2) RFPs. Any offers received for less than the full quantity for each line item will be rejected by the Government.

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-- [ ] (i) The low price published in __________________. (name of publication)

[ X ] (ii) The average of the prices published in PLATTS OIL GRAM PRICE REPORTS.

[ ] (iii) The established price posted by ______________ and (name of company)

(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 375 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.platts.com/ http://www.desc.dla.mil/

(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.

I II III IV V VI VII

Name of If company - Reference Maximum price company/ name of product; Method of price payable under publication If publication - delivery as of this contract any (identify heading under applicable 22 DEC 2014 (includes Item No. by number which reference Location where to the (date) tax included (listed from (c)(2) price is published reference price reference (excludes in the award items) above) and name of product is applicable price all taxes price .

Product Reference Base Reference Price

Date

For all Regular Unleaded Gasoline / Gasohol

Platt's Oilgram Price, US Gulf Coast, Waterborne, Unleaded; 5 day average (5 days ending Friday prior to week of delivery) Price adjustments are effective Mon-Sun of week of delivery.

$1.403700 22-Dec-14

For all Ultra Low Sulfur Diesel

Coast, Waterborne, ULSD; 5 day average (5 days ending Friday prior to week of delivery)

$1.719580 22-Dec-14

For Marine Gas Oil

Coast, Waterborne, LS No2; 5 day average (5 days ending Friday prior to week of delivery)

$1.719580 22-Dec-14

Jet Fuel (JA1)

Coast, Waterborne, Jet/Kero 54;

5 day average (5 days ending Friday prior to week of delivery) Price adjustments are effective

$1.756980 22-Dec-14

Prices are adjusted monthly. Each month’s price adjustments are calculated based on the Platt’s European Monthly Average

C-0001 C16.69 FUEL SPECIFICATIONS (PC&S) (DLA ENERGY JULY 2012)

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 any existing or after-imposed Title V (Clean Air Act) Permits. The list of such requirements contained in this contract is not intended to be a complete list, and the Contractor shall be responsible for determining the existence of all such requirements. Selected regional environmental requirements are highlighted in the SPECIFICATIONS (CONT’D) clause. In the event that a Federal, State, or local environmental requirement is more stringent than a fuel specification contained in this contract, the Contractor shall deliver product that complies with the more stringent fuel specification. Product that fails to meet the more stringent fuel specification will be considered to be a nonconforming supply. Product(s) to be supplied shall fully meet the requirements of the applicable specification(s) as cited below.

In the event that compliance with the more stringent fuel specification causes the contractor to incur additional costs, the contractor may request an equitable adjustment.

NOTE: Gasoline, gasohol and reformulated gasoline Reid Vapor Pressure (RVP) specification requirements are seasonal and vary geographically throughout the United States. Therefore, Contractors are expected to know the local, State, or Federal RVP requirements of areas being supplied and comply with those requirements.

(a) GASOLINE, AUTOMOTIVE, UNLEADED, GRADES REGULAR, MIDGRADE, AND PREMIUM.

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.

DLA ENERGY

PRODUCT

NATIONAL STOCK NUMBER PRODUCT NOMENCLATURE CODE AKI, MINIMUM

9130-00-148-7103 Gasoline, Regular Unleaded MUR 87 9130-01-272-0983 Gasoline, Midgrade Unleaded MUM 89 9130-00-148-7104 Gasoline, Premium Unleaded MUP 91

(ii) Reductions for altitude and seasonal variations are allowed for all AKI values in accordance with figures X1.2 and X1.3 of ASTM D 4814.

(iii) For regular unleaded gasoline, in addition to an AKI of 87 minimum, the MON must not be less than 82.

(2) OXYGENATE REQUIREMENTS.

(i) In order to achieve minimum/maximum oxygen content limits specified per Federal, State, and local environmental requirements, supplies shall only include oxygenates that are permitted by environmental regulations applicable to the time and place of delivery.

(ii) Blending of oxygenates into gasoline to meet oxygenated fuel requirements shall be accomplished by mechanical mixing or agitation in a tank, or by in-line blending, prior to loading the product into transport equipment, and the resultant product must meet contract requirements.

(3) Refer to the REGIONAL SPECIFICATIONS document for additional regional gasoline requirements located online at https://www.desc.dla.mil/DCM/Files/Regional%20Specifications.pdf.

(b) GASOHOL, AUTOMOTIVE, UNLEADED, GRADES REGULAR, MIDGRADE, AND PREMIUM.

Products shall conform to Commercial Item described (CID) A-A-52530 dated October 10, 1995, as modified below. In accordance with Executive Order 12261 of January 5, 1981, "Gasohol in Federal Motor Vehicles," Gasohol may be considered an acceptable substitute for Unleaded Gasoline. The Unleaded Gasoline items that permit the substitution of Gasohol are identified in the Schedule. Contractors are required to state, for each line item in their offer, whether Gasohol will be provided. Contractors will not be permitted to substitute Unleaded Gasoline under line items awarded as gasohol. Also, Contractors are not permitted to substitute gasohol for gasoline under line items awarded as gasoline, except when Government regulations mandate use of fuel containing an oxygenate for control of carbon monoxide pollution.

(1) OCTANE REQUIREMENTS.

(i) Unleaded automotive gasohol shall meet the AKI requirements shown in the table below.

DLA ENERGY

PRODUCT

NATIONAL STOCK NUMBER PRODUCT NOMENCLATURE CODE AKI, MINIMUM

9130-01-090-1093 Gasohol, Regular Unleaded GUR 87 9130-01-355-2393 Gasohol, Midgrade Unleaded GUM 89 9130-01-090-1094 Gasohol, Premium Unleaded GUP 91

(ii) Reductions for altitude and seasonal variations are allowed for all AKI values in accordance with figures X1.2 and X1.3 of ASTM D 4814.

(iii) For regular unleaded gasohol, in addition to an AKI of 87 minimum, the MON must not be less than 82.

(2) OXYGENATE REQUIREMENTS

(i) Ethanol concentration shall be between 9 and 11 volume percent.

(ii) Blending of ethanol into gasoline to make gasohol shall be accomplished by mechanical mixing or agitation in a tank, or by in-line blending, prior to loading the product into transport equipment, and the resultant product must meet contract requirements.

(3) Refer to the REGIONAL SPECIFICATIONS document for additional regional requirements affecting gasohol located online at https://www.desc.dla.mil/DCM/Files/Regional%20Specifications.pdf.

(c) REFORMULATED GASOLINE, AUTOMOTIVE, UNLEADED, GRADES REGULAR, MIDGRADE, AND PREMIUM. Product shall conform to ASTM D 4814 , as modified by the Environmental Protection Agency (EPA) requirements detailed in 40 CFR Part 80 - "Regulation of Fuels and Fuel Additives; Subpart D Reformulated Gasoline”. In part, these regulations mandate that Phase II complex model reformulated gasoline must meet three emissions performance requirements when compared to the baseline gasoline marketed by a refiner in 1990: a 27 percent reduction in emissions of volatile organic compounds (VOCs), a 22 percent reduction in emissions of toxic pollutants, and a 7 percent reduction in emissions of oxides of nitrogen (NOx). Further, Phase II complex model reformulated gasoline must meet two compositional requirements: 1.3 volume percent maximum benzene and no heavy metals (lead and manganese are examples of such metals).

(1) OCTANE REQUIREMENTS.

(i) Reformulated gasoline shall meet the AKI requirements shown in the table below.

DLA ENERGY

PRODUCT

NATIONAL STOCK NUMBER PRODUCT NOMENCLATURE CODE AKI, MINIMUM

9130-01-388-4080 Reformulated Gasoline, Regular MRR 87 9130-01-388-4513 Reformulated Gasoline, Midgrade MMR 89 9130-01-388-4524 Reformulated Gasoline, Premium MPR 91

(ii) Reductions for altitude and seasonal variations are allowed for all AKI values in accordance with figures X1.2 and X1.3 of ASTM D 4814.

(2) OXYGENATE REQUIREMENTS.

(i) In order to achieve minimum/maximum oxygen content limits specified per Federal, State, and local environmental requirements, suppliers shall only include oxygenates that are permitted by environmental regulations applicable to the time and place of delivery.

(ii) Blending of permissible oxygenate into reformulated gasoline shall be accomplished by mechanical mixing or agitation in a tank, or by in-line blending, prior to loading the product into transport equipment, and the resultant product must meet contract requirements.

(3) Refer to the REGIONAL SPECIFICATIONS document for additional regional reformulated gasoline requirements located online at https://www.desc.dla.mil/DCM/Files/Regional%20Specifications.pdf.

(d) DIESEL FUEL.

(1) APPLICABLE TO ALL DIESEL GRADES.

(i) ADDITIVES.

(A) A fuel stabilizer additive conforming to MIL-S-53021 may be blended into the fuel to improve the suitability of fuel for long term storage. Permissible additive concentrations are specified in the latest revision of QPL-53021.

(B) A corrosion inhibitor/lubricity improver additive may be blended into the fuel to inhibit corrosion and improve fuel lubricity. Permissible additive concentration limits are specified in the latest revision of QPL 25017.

(C) A fuel system icing inhibitor may be blended into the fuel to purge small quantities of water from the fuel and prevent the formulation of ice crystals. The additive concentration shall not exceed 0.15 volume percent when tested in accordance with ASTM D 5006.

(ii) BLENDING. Blending one grade of diesel fuel with another grade, or other compatible components, to produce a different grade or a variation within a grade is permitted. However, such blending shall be accomplished by mechanical mixing or agitation in a tank, or in-line blending, prior to loading the product into transport equipment, and the resultant product must meet all the requirements of the desired fuel.

(iii) LOW TEMPERATURE OPERABILITY. The low temperature performance of diesel fuel shall be defined by the following property:

CLOUD POINT. Unless a more restrictive cloud point limit is specified in the contract schedule, the cloud point shall be equal to or lower than the tenth percentile minimum ambient temperature specified in Appendix X5 of ASTM D 975.

(iv) DYE. As a means of identification, the Internal Revenue Service (IRS) requires that a red dye, identified as Solvent Red 164 (alky derivatives of azo benzene azo naphthol), must be added to all nontaxable diesel and all nontaxable kerosene used for purposes other than military jet fuel. The definitions of diesel and kerosene are provided in 26 CFR Section 48.4081-1. The minimum concentration is provided in 40 CFR Part 80.

(2) APPLICABLE TO GRADES DS2, DS1, DSS, DSW, LS2, LS1, LSS, LSW, HS2, HS1, AND SF2 ONLY.

Product shall conform to commercial specification ASTM D 975. In accordance with this specification, product shall be visually free of undissolved water, sediment, and suspended matter. Product classification is shown below.

ULTRA-LOW SULFUR GRADES

DLA ENERGY MAXIMUM

PRODUCT SULFUR

NATIONAL STOCK NUMBER PRODUCT NOMENCLATURE CODE CONTENT RED DYE

9140-01-524-0139 Grade Number 2-D S15 (ULSD) DS2 0.0015 wt% No 9140-01-524-5174 Grade Number 1-D S15 (ULSD) DS1 0.0015 wt% No 9140-01-541-6760 Grade Number 2-D S15 (ULSD) DSS 0.0015 wt% Yes 9140-01-541-6767 Grade Number 1-D S15 (ULSD) DSW 0.0015 wt% Yes 9140-01-570-9278 Grade Number 2-D S15 (ULSD-Low Temp) SF2 0.0015 wt% No

LOW SULFUR GRADES

DLA ENERGY MAXIMUM

PRODUCT SULFUR

NATIONAL STOCK NUMBER PRODUCT NOMENCLATURE CODE CONTENT RED DYE

9140-01-398-0697 Grade Number 2-D S500 (“low sulfur No.2-D”) LS2 0.05 wt% No 9140-01-398-1130 Grade Number 1-D S500 (“low sulfur No.1-D”) LS1 0.05 wt% No 9140-01-413-4919 Grade Number 2-D S500 (“low sulfur No.2-D”) LSS 0.05 wt% Yes 9140-01-413-7494 Grade Number 1-D S500 (“low sulfur No.1-D”) LSW 0.05 wt% Yes

HIGH SULFUR GRADES

DLA ENERGY MAXIMUM

PRODUCT SULFUR

NATIONAL STOCK NUMBER PRODUCT NOMENCLATURE CODE CONTENT RED DYE

9140-01-398-1395 Grade Number 2-D S5000 (“regular No.2-D”) HS2 0.50 wt% Yes 9140-01-398-1422 Grade Number 1-D S5000 (“regular No.1-D”) HS1 0.50 wt% Yes

(3) APPLICABLE TO GRADES DLS, DLW, DF2, AND DF1 ONLY. Product shall conform to commercial specification ASTM D 975. In addition, product shall contain no more than 10 milligrams/liter (mg/L) of particulates as measured by ASTM D 6217. Product classification is shown below.

LOW SULFUR GRADES

DLA ENERGY MAXIMUM

PRODUCT SULFUR

NATIONAL STOCK NUMBER PRODUCT NOMENCLATURE CODE CONTENT RED DYE

9140-01-413-7511 Grade Number 2-D S500 (“low sulfur No.2-D”) DLS 0.05 wt% Yes

9140-01-412-1311 Grade Number 1-D S500 (“low sulfur No.1-D”) DLW 0.05 wt% Yes

HIGH SULFUR GRADES

PRODUCT SULFUR

NATIONAL STOCK NUMBER PRODUCT NOMENCLATURE CODE CONTENT RED DYE

9140-00-286-5294 Grade Number 2-D S5000 (“regular No.2-D”) DF2 0.50 wt% Yes 9140-00-286-5286 Grade Number 1-D S5000 (“regular No.1-D”) DF1 0.50 wt% Yes

(4) APPLICABLE TO DIESEL GRADE NUMBER 1 ONLY. DLA ENERGY frequently requires Number 1 diesel fuel grades when it is anticipated that the fuel may be exposed to temperatures below 10 degrees Fahrenheit (-12 degrees Celsius). These products shall conform to ASTM D 975 and additional requirements as specified above for each DLA ENERGY product code. Although the Government does not encourage such actions, Contractors electing to deliver kerosene or Jet A to meet Number 1 diesel fuel requirements must—

(i) Provide certification to the Contracting Officer prior to 1 October of each year that the kerosene or Jet A will meet requirements applicable to the specific product code, including particularly, sulfur, dye, lubricity, viscosity and cetane index; AND

(ii) For each delivery, submit relevant documents (delivery tickets, bills of lading, etc.) indicating that Number 1 diesel fuel is being delivered.

(5) Refer to the REGIONAL SPECIFICATIONS document for additional regional requirements affecting diesel located online at https://www.desc.dla.mil/DCM/Files/Regional%20Specifications.pdf.

(e) FUEL OIL, BURNER (VIRGIN FUEL OILS). Applicable to all burner fuel oil grades. Product shall conform to ASTM D 396, as modified by the requirements of paragraphs (1) through (7) below. Product classification is shown in the table below. PRODUCT CONTAINING USED OIL SHALL NOT BE SUPPLIED. (See paragraph (f) below for DLA Energy product codes, national stock numbers, and detailed requirements applicable to blends of residual fuel with recycled lubricating oil.)

DLA ENERGY

NATIONAL STOCK NUMBER PRODUCT NOMENCLATURE PRODUCT CODE RED DYE

9140-01-546-1786 Fuel Oil, Burner No. 2 S500 FL2 Yes 9140-00-247-4366 Fuel Oil, Burner No. 1 S5000 FS1 Yes 9140-00-247-4365 Fuel Oil, Burner No. 2 S5000 FS2 Yes 9140-01-107-6139 Fuel Oil, Burner No. 4 (Light) FL4 Yes 9140-00-247-4360 Fuel Oil, Burner No. 4 FS4 No 9140-01-058-4431 Fuel Oil, Burner No. 5 (Light) FL5 No 9140-00-247-4359 Fuel Oil, Burner No. 5 (Heavy) FS5 No 9140-00-247-4354 Fuel Oil, Burner No. 6 FS6 No

(1) These residual grades of burner fuel oil (Grades No. 4, No. 4(Light), No. 5(Light), No. 5(Heavy), and No. 6) shall consist of fossil-derived hydrocarbon stock. They may not contain used oil or other recycled petroleum components.

(2) SULFUR REQUIREMENT. Refer to the Schedule for the maximum allowable sulfur content of Burner Oil, Grades No. 4, No. 4(Light), No. 5(Light), No. 5(Heavy), and No. 6. The maximum allowable sulfur content for Burner Oil, Grades No. 1 S5000 and No. 2 S5000, shall be 0.50 weight percent or per State/local environmental requirements, whichever is more stringent. The maximum allowable sulfur content for Burner Oil, Grade No. 2 S500 shall be 0.05 weight percent.

(3) NITROGEN REQUIREMENT. The nitrogen content shall be tested using ASTM D 3228, Total Nitrogen in Lubricating Oils and Fuel Oils by Modified Kjeldahl Method, or ASTM D 4629, Trace Nitrogen in Liquid Petroleum Hydrocarbons by Chemiluminescence Detection. The nitrogen content is used to determine nitrous oxide (NOx) emissions in boiler systems as determined by State/local environmental agencies. The requirement applies for line items with Burner Oil No. 4, Burner Oil No. 5 (heavy), Burner Oil No. 5 (light), and Burner Oil No. 6. The Contractor is required upon request from the Government to provide a copy of the test report, within two working days, that states the actual nitrogen content of fuel delivered.

(4) Blending of various compatible grades of burner oil to produce an intermediate grade is permitted, however, such blending shall be accomplished by mechanical mixing or agitation in a tank, or by in-line blending, prior to loading the product into transport equipment, and the resultant product must meet all the requirements of the grade produced.

(5) The maximum allowable ash content for Burner Oil, Grade No. 6, shall be .50 weight percent using ASTM D 874, Standard Test Method for Sulfated Ash from Lubricating Oils and Additives.

(6) Under United States regulations, Grades No. 1, 2, and 4(Light) are required by 40 CFR Part 80 to contain a sufficient amount of the dye Solvent Red 164 so its presence is visually apparent. At or beyond terminal storage tanks, they are required by CFR Part 48 to contain the dye Solvent Red 164 at a concentration spectrally equivalent to 3.9 pounds per thousand barrels of the solid dye standard Solvent Red 26.

(7) APPLICABLE TO FUEL OIL, BURNER, GRADE #1 ONLY. This product shall conform to ASTM D

396. Contractors electing to deliver kerosene (red dye) to meet No. 1 burner oil requirements must—

(i) Provide certification to the Contracting Officer prior to 1 October of each year that the kerosene will meet No. 1 burner oil specifications, including , specifically, viscosity, distillation, density and pour point, AND

(ii) For each delivery, submit relevant documents (delivery tickets, bills of lading, etc.) indicating that No. 1 burner oil is being delivered.

(iii) All kerosene delivered to meet No. 1 burner oil must be tax free, i.e., dyed in accordance with IRS regulations.

(f) FUEL OIL, BURNER, CONTAINING RECYCLED USED OILS, GRADES 4, 5(LIGHT), 5(HEAVY) AND 6. Product shall conform to ASTM D 6823, as modified by the requirements of paragraphs (1) through (5) below. Product classification is shown in the table below.

DLA ENERGY

NATIONAL STOCK NUMBER PRODUCT NOMENCLATURE PRODUCT CODE

9140-01-468-9135 Fuel Oil, Burner, Grade RFC4 RF4 9140-01-468-9157 Fuel Oil, Burner, Grade RFC5L R5L 9140-01-468-9147 Fuel Oil, Burner, Grade RFC5H RF5 9140-01-468-9164 Fuel Oil, Burner, Grade RFC6 RF6

(1) SULFUR REQUIREMENT. Refer to the Schedule for the maximum allowable sulfur content of Grades 4, 5(Light), 5(Heavy), and 6.

(2) NITROGEN REQUIREMENT. The nitrogen content shall be tested using ASTM D 3228, Total Nitrogen in Lubricating Oils and Fuel Oils by Modified Kjeldahl Method, or ASTM D 4629, Trace Nitrogen in Liquid Petroleum Hydrocarbons by Chemiluminescence Detection. The nitrogen content is used to determine nitrous oxide (NOx) emissions in boiler systems as determined by State/local environmental agencies. The Contractor is required upon request from the Government to provide a copy of the test report, within two working days, that states the actual nitrogen content of fuel delivered.

(3) INCLUSION OF OFF-SPECIFICATION USED OIL PROHIBITED. 40 CFR Parts 266 and 279 define off-specification used oil. The supply of RF4, R5L, RF5, or RF6 containing off-specification used oil is not permitted.

[ ] The offeror represents that it will provide certified test reports with associated QC documents validating compliance with EPA used oil standards contained in 40 CFR Parts 266 and 279 or State/local requirements, whichever is more stringent, for all contract deliveries under the line items identified above to—

ATTN: DLA ENERGY-BPE ROOM 2954

DEFENSE LOGISTICS AGENCY ENERGY

8725 JOHN J KINGMAN ROAD SUITE 4950

FORT BELVOIR VA 22060-6222

Offeror's EPA Identification Number: _______________________

(4) Blending of various compatible grades of burner oil to produce an intermediate grade is permitted, however, such blending shall be accomplished by mechanical mixing or agitation in tank, or by in-line blending, prior to loading the product into transport equipment, and the resultant product must meet all the requirements of the contract.

(5) The maximum allowable ash content for Burner Oil, Grade RF6, shall be 0.50 mass percent, using ASTM D 874, Standard Test Method for Sulfated Ash from Lubricating Oils and Additives.

(g) KEROSENE. Product shall conform to ASTM D 3699. Classification of product is shown below.

LOW SULFUR GRADES

DLA ENERGY MAXIMUM

PRODUCT SULFUR

NATIONAL STOCK NUMBER PRODUCT NOMENCLATURE CODE CONTENT RED DYE

9140-01-292-4460 Kerosene, Grade No. 1-K KS1 0.04 wt% max No 9140-01-461-3989 Kerosene, Grade No. 1-K KSR 0.04 wt% max Yes

HIGH SULFUR GRADES

PRODUCT SULFUR

NATIONAL STOCK NUMBER PRODUCT NOMENCLATURE CODE CONTENT RED DYE

9140-00-242-6748 Kerosene, Grade No. 2-K KSN 0.30 wt% max Yes

NOTE: The IRS requires taxation of No. 1-K and No. 2-K kerosene upon removal from the terminal unless the kerosene is indelibly (cannot be removed) dyed or used for military jet fuel. These requirements, part of 26 CFR 48 - Manufacturers and Retailers Excise Taxes, were published in the July 1, 1998, Federal Register. Only undyed (taxable) No. 1-K kerosene is suitable for use in non flued (unvented) kerosene burner appliances. No. 2-K kerosene (dyed or undyed) is unsuitable for non flued (unvented) kerosene burner appliances.

The color test requirement is deleted if red dye has been added in compliance with IRS regulations; however, the resulting fuel/dye blend must have a red tint.

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

(a) DEFINITION. Supplies, as used in this clause, include but are not limited to raw materials, components, intermediate assemblies, end products, and lots of supplies.

(b) The Contractor shall provide and maintain an inspection system acceptable to the Government covering supplies under this contract and shall tender to the Government, for acceptance, only supplies that have been inspected in accordance with the inspection system and have been found by the Contractor to be in conformity with contract requirements. As part of the system, the Contractor shall prepare records evidencing all inspections made under the system and the outcome. These records shall be kept complete and made available to the Government during contract performance and for as long afterwards as the contract requires. The Government may perform reviews and evaluations as reasonably necessary to ascertain compliance with this paragraph. These reviews and evaluations shall be conducted in a manner that will not unduly delay the contract work. The right of review, whether exercised or not, does not relieve the Contractor of the obligations under the contract.

(c) The Government has the right to inspect and test all supplies called for by the contract, to the extent practicable, at all places and times, including the period of manufacture, and in any event before acceptance. The Government shall perform inspections and tests in a manner that will not unduly delay the work. The Government assumes no contractual obligation to perform any inspection and test for the benefit of the Contractor unless specifically set forth elsewhere in this contract.

(d) 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. 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 premises;

PROVIDED, that in case of rejection, the Government shall not be liable for any reduction in the value of inspection or test samples.

(e) (1) When supplies are not ready at the time specified by the Contractor for inspection or test, the Contracting Officer may charge to the Contractor the additional cost of inspection or test.

(2) The Contracting Officer may also charge the Contractor for any additional cost of inspection or test when prior rejection makes reinspection or retest necessary.

(f) The Government has the right either to reject or to require correction of nonconforming supplies.

Supplies are nonconforming when they are defective in material or workmanship or are otherwise not in conformity with contract requirements. The Government may reject nonconforming supplies with or without disposition instructions.

(g) The Contractor shall remove supplies rejected or required to be corrected. However, the Contracting Officer may require or permit correction in place, promptly after notice, by and at the expense of the Contractor. The Contractor shall not tender for acceptance corrected or rejected supplies without disclosing the former rejection or requirement for correction, and, when required, shall disclose the corrective action taken.

(h) If the Contractor fails to promptly remove, replace, or correct rejected supplies that are required to be removed or to be replaced or corrected, the Government may either (1) by contract or otherwise, remove, replace, or correct the supplies and charge the cost to the Contractor or (2) terminate the contract for default. Unless the Contractor corrects or replaces the supplies within the delivery schedule, the Contracting Officer may require their delivery and make an equitable price reduction. Failure to agree to a price reduction shall be a dispute.

(i) (1) 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 (i) when Contractor inspection or tests will be performed in accordance with the terms and conditions of the contract and (ii) when the supplies will be ready for Government inspection.

(2) The Government's request shall specify the period and method of the advance notification and the Government representative to whom it shall be furnished. Requests shall not require more than 2 workdays of advance notification if the Government representative is in residence in the Contractor's plant, nor more than 7 workdays in other instances.

(j) The Government shall accept or reject supplies as promptly as practicable after delivery, unless otherwise provided in the contract. Government failure to inspect and accept or reject the supplies shall not relieve the Contractor from responsibility, nor impose liability on the Government, for nonconforming supplies.

(k) Inspections and tests by the Government do not relieve the Contractor of responsibility for defects or other failures to meet contract requirements discovered before acceptance. Acceptance shall be conclusive, except for latent defects, fraud, gross mistakes amounting to fraud, or as otherwise provided in the contract.

(l) If acceptance is not conclusive for any of the reasons in paragraph (k) hereof, the Government, in addition to any other rights and remedies provided by law, or under other provisions of this contract, shall have the right to require the Contractor (1) at no increase in contract price, to correct or replace the defective or nonconforming supplies at the original point of delivery or at the Contractor's plant at the

Contracting Officer's election, and in accordance with a reasonable delivery schedule as may be agreed upon between the Contractor and the Contracting Officer; PROVIDED, that the Contracting Officer may require a reduction in contract price if the Contractor fails to meet such delivery schedule, or (2) within a reasonable time after receipt by the Contractor of notice of defects or nonconformance, to repay such portion of the contract as is equitable under the circumstances if the Contracting Officer elects not to require correction or replacement. When supplies are returned to the Contractor, the Contractor shall bear the transportation cost from the original point of delivery to the Contractor's plant and return to the original point when that point is not the Contractor's plant.