Attachment_C_-_DLA_Energy_P-19.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

Instruction Number: DLA Energy P-19 3 Jan 2013

SUBJECT: RETAIL CASH SALES STANDARD OPERATING PROCEDURE (SOP) FOR

CAMP CARROLL AND K-16 SEOUL AB, REPUBLIC OF KOREA

1. PURPOSE. This issuance outlines the SOP for cash sales of Defense Working Capital Fund (DWCF) Stocks to ensure effective controls are in place and provide oversight of ground fuel retail cash sales processes.

2. APPLICABILITY. This issuance applies to Defense Fuel Support Points (DFSPs) Camp Carroll and K-16 Seoul AB, Republic of Korea, and is in addition to any commercial SOP or DLA Energy policy and procedure.

3. POLICY. Cash sales are authorized as prescribed by DLA Energy Memorandum Authorization to Conduct Cash Sales dated 14 August 2012, DLA Energy P-6 AUTHORIZED CUSTOMERS AND CASH SALES (01 Aug 11), and DLA Energy Instruction I-7 CASH

SALES PROCEDURES FOR DEFENSE WORKING CAPITAL FUND (DWCF) OWNED

FUEL (01 Apr 09).

4. RESPONSIBILITIES. See Enclosure 1.

5. PROCEDURES. See Enclosure 2.

6. EFFECTIVE DATE. This guidance is effective upon signature of the approving authority.

////SIGNED COPY ON FILE//////

PETER D. CREAN

COL, USA

Chief of Staff

OPR: DLA Energy NI OCR: DLA Energy C, G, R, PAC

Enclosures:

Enclosure 1 – Responsibilities Enclosure 2 – Procedures Enclosure 3 – Authorization for Cash Sales of Defense Logistics Agency-Energy Owned Fuel at Camp Carroll and K-16 Air Force Base, Korea Enclosure 4 – COR Checklist Enclosure 5 – DLA Energy Form 1990, Titled: Daily Issue of Petroleum Product

DLA ENERGY P-19

3 Jan 2013

ENCLOSURE 1

RESPONSIBILITIES

1 The DLA Energy Pacific Region shall review the need to conduct ground fuel cash sales at these locations annually. When Army & Air Forces Exchange Services (AAFES) or commercial sources become feasible - the need for this SOP will be obsolete.

2 The DLA Energy Contractor (Terminal Manager (TM) in coordination with the designated Government representative (Contract Officer Representative (COR) or Property Administrator (PA)) shall:

a Submit to DLA Energy and the Installation Commander a site specific standard operating procedure annually for approval. The procedure will include:

(1) Retail Point Operating Hours.

(2) Local authorized identification cards/documentation and verification process.

(3) Maximum amount of fuel authorized if less than 25 gallons.

(4) Detailed Cash Collection Process from the point of sale to cash turn in.

(5) Security procedures IAW DoD Financial Management Regulation 7000.14-r, Vol. 5, Deposit and Transfer of Public Funds.

b Ensure local inventory levels are not depleted below the authorized control limit without prior authorization from the United States Forces Korea Sub-Area Petroleum Office, J4 Logistics.

c Ensure authorized sales are kept to the minimum purchase authorized by DLA Energy P-6 to preserve military readiness, protect life and property while sustaining local operations.

(1) Sales in excess of 25 gallons to a single owner/vehicle per day are not authorized.

(2) Fuel delivery for cash is not authorized.

(3) Refer to United States Forces Korea Regulation (USFK REG) 60-1, 23 May 2011, for Gasoline Purchase Policy.

(a) Authorization to purchase gasoline will not be included in contracts, memoranda of agreement, or memoranda of understanding without the USFK J1(FKJ1-12) and FKAQ approval.

(b) Authorized patrons may purchase gasoline for vehicles registered on a USFK military post/base, displaying a post/base decal and by presenting the DoD or USFK ID, and Ration Control Plate. The names on all these documents must match.

d Monitor sales by vehicle and owner to ensure this privilege is not being abused. Any person/s identified for abuse will be reported to the installation commander or their designated unit representative and will lose the privilege to purchase DoD fuel.

e Ensure cash sales are not consolidated but recorded individually on DD Form 1898, Fuels Sales Slip, or on DD Form 1149, Requisition and Invoice/Shipping Document, or a DLA Energy Form 1990 , Daily Issues of Petroleum Product. When a DLA Energy Form 1990 is used it will be accompanied by a single DD Form 1898 prepared and signed by the fuels accountant and verified (by signature) by an authority identified in paragraph b above.

f IAW DLA Energy I-7, Ensure daily cash sale documentation is sent to the DLA Energy COR for verification by an authorized government representative. Cash sale documentation will include a DD Form 1131, DD Form 1898, SF 215 (if applicable,) DLA Energy Form 1990 (Enclosure 5), and the Fuel Master DoD Activity Address Code (DoDAAC) Daily Transaction Report for the previous days sales.

g IAW DLA Energy P-3, Document/Data Control and Retention (21 Feb 12) all documentation will be maintained locally.

ENCLOSURE 2

PROCEDURES

1 Fuel sales to Privately Owned Vehicle (POV), IAW Enclosure 3 of this document, will be conducted in the same manner as issues to military vehicles using the following criteria to ensure proper accountability.

a Operating hours will be established by the Government Contract and posted at the Military Retail Points (gas station).

b Cash Sales Fuel Retail Points will be closed on U.S. and Korean legal holidays.

c Daily verification of total cash sales will be accomplished using the daily report from Fuel Master. Identify cash sale transactions processed against the DLA cash sale DODAAC.

Compare that total to the totals on the DLA Energy Form 1990 (Enclosure 5).

d Fuel will be sold to only vehicles which display an official serial numbered decal or license plate indicating ownership by the individuals possessing an approved authorization to access the military installation.

e Before dispensing fuel, check for proper identification; insure the identification matches the vehicle registration (ownership) documents.

f Non US Military POV drivers must have a valid Ration Control Plate; this will be checked against a CAC/ID card.

g After fuel is dispensed, the transaction will be recorded and the customer will be required to sign the DLA Energy Form 1990 (Enclosure 5). Information that will be annotated on the 1990 is as follows: Vehicle ID/license plate number, the amount of gallons sold, the cash collected, the customer’s printed name, rank, sponsoring unit, and signature.

h Cash sales will not be made after normal duty hours.

2 The DLA Contractor will be responsible for the mathematical accuracy of each sale and associated documentation and will ensure that the cash collected and turned-in agrees with the total of all cash sales for the day.

3 A designated government representative will verify the amounts recorded on DLA Energy Form 1990 (Enclosure 5) match the consolidated DD 1898 and DD 1131 and will sign the DD 1131 IAW DESC I-7 prior to turn in.

4 Cash will be collected, secured, and transported IAW DoD Financial Management Regulation 7000.14-R, Vol. 5, Deposit and Transfer of Public Funds, AR 190-51, Security of Unclassified Army Property, and AR 600-20 Army Command Policy and Procedure.

5 All monies collected will be turned into a Military Finance or DFAS Disbursing Office accompanied by a completed Cash Collection Voucher (DD Form 1131) and consolidated sales slip (DD Form 1898).

6 Copies of the completed DD Form 1131 and DD Form 1898, SF 215 (if applicable,) and the fuels master DoDAAC Daily Transaction Report will be forwarded to the DLA Energy Korea COR within one business day and to Retail Management, DLA Finance Energy, (DLA Energy- RR) within two business days following the date of deposit. The DFSP shall send the cash sale source documents by facsimile (FAX), as e-mailed scanned documents, or by U.S. Postal Service mail addressed to the Retail Management, DLA Finance Energy (DLA Energy RR point of contact as reflected in DESC I-7). Include a cover sheet with the DFSP name, DODAAC, FAX number or sender e-mail address with the document package. DESC-RR shall provide receipt acknowledgement to the sending DFSP.

ENCLOSURE 3

ENCLOSURE 4

COR CHECKLIST

EXAMINATION OVERVIEW

Scope: Checklist to be used by Contracting Officers Representative (COR) overseeing Contractor Owned, Contractor Operated/Government-owned, Government Operated DFSPs in support of DLA Energy

EXAMINATION INFORMATION

Government Owned and Contractor Operated Defense Fuel Support Points

Responsible Officer/ COR: Examination Date:

Site / Location: Last Examination: Contractor Risk Rating:

Service Examination Type: Monthly Follow Up

Contractor QA/QC: E-Mail:

Contractor Supervisor: E-Mail:

Contractor Performance Rating: SAT UNSAT Score

Follow-Up Examination Required: Yes No Out-brief with COR/Contractor Supervisor: Yes No

Corrective Measures Required: Yes No CAR issued: Yes No Observations -The Examination results/summary should include nature (i.e. locations, ID#, nomenclature) and number of assessment items that are traceable to an actual contract / SOW requirement(s):

Deficiencies Identified: Corrective Action S/N

EXAMINATION GUIDELINES

Select appropriate response for each requirement Examined YES = Requirement performed satisfactory. May comment when key observations are noted.

NO = Requirement performed unsatisfactory. Comment should identify corrective action in-place or plan of action i.e.

Contract Activity Report (CAR).

N/O = Performance of requirement not observed. Comment when adverse circumstances prevent verification of requirement.

N/A = Requirement not applicable. Comment when contractor disputes validity of requirement.

Note: The Observations Section (Examination Information Block) provides a summation of the overall Examination Assessment.

Shorthand: RVI = Records Visually Inspected; CAO = Corrective Action Observed; CAIP = Corrective Action In Place Select appropriate box for rating Example of calculating scores: Number of observation in compliance add number of observations not in compliance, do not include items which are not applicable; using total of compliant and non-compliant items, divide that sum by 100, using the answer, multiply that number by the number of observations in compliant to find the score.

Total Observed = 70 (68 in compliance, 2 not in compliance) 100 divided by 70 = 1.42 per question

1.42 multiplied by 68 = 96

96 = SAT

SAT (81-100): Performance is satisfactory. There were no deficiencies or problems encountered during the evaluation period.

UNSAT (0-80): Contractor’s performance is below minimum required level to meet needs. Areas of good performance are off-set by deficiencies and problems, which reduces performance to a level that is below the minimally acceptable under the contract.

SPECIAL INSTRUCTIONS

• Be familiar with all References as they relate to this examination before proceeding

• Always use good safety practices

• Use appropriate Personal Protection Equipment (PPE)

• Ensure all gauges/equipment are calibrated as necessary

• Ensure all personnel are trained as necessary

• Ensure the contractor uses process control procedures i.e. Standard Operating Procedures (SOP)

• Ensure the contractor has established a written inspection system covering the operations COCO/GOCO DFSP i.e.

inventory management, facilities management and all applicable services provided by the contractor.

REFERENCES

• DOD 4140.25-M, DOD Management of Bulk Petroleum Products, Natural Gas, and Coal DOD 4140.25M (Current Effective Date varies by Volume and Chapter)

• DOD 7000.14-R, DOD Financial Management Regulation (FMR), Volume 10, Chapter 6, Federal, State, Local, and Foreign Taxes (Sep 12)

• DOD 7000.14-R, Department of Defense Financial Management Regulation (FMR), Volume 5, Disbursing Policies and Procedures (Sep 12)

• DLA Energy P-2, Receipt and Shipment of Petroleum Product (27 Apr 10)

• DLA Energy P-3, Document/Data Control and Retention (21 Feb 120

• DLA Energy P-6 Authorized Customers And Cash Sales, (01 Aug 11))

• DESC I-7 Cash Sales Procedures For Defense Working Capital Fund (DWCF) Owned Fuel (01 Apr 09))

• DLA Energy P-7, Accountability and Custodial Responsibilities For Defense Working Capital Fund (DWCF)

Inventory and Government Property (10 Jul 12

• Standard Operating Procedures (SOP) (Locally created SOP for specific site)

REQUIREMENT YES NO N/O N/A COMMENT

1. Has the Commander, PA, or TM appointed a cash collection agent on office memorandum? IAW DESC I-7, para 4.4.3.

2. Is the cash collection agent appointment letter with their responsibility acknowledgement statement on file? IAW DESC I-7,para. 4.4.3.

3. Does the consolidated DD Form 1131 clearly reflect the date of sale, location of cash sales, detailed reason for the cash collection, accounting classification , and total dollar value of cumulative daily cash sale transactions? IAW DESC I-7, para.

4.4.1.

4. Is the Energy Stock Fund Appropriation 97X 4930 5CF0 26.1 S33150 in the Accounting Classification column for each cash collection that reflects both the DESC standard fuel price and the assessed Federal Excise Tax (FET) if applicable? IAW DESC I-7, para 4.4.2.

5. Has the collection agent who received the cash payment and the PA, TM, or designated representative jointly signed the DD Form 1131 to verifying the cash collection amount? IAW DESC I-7.

6. Has a consolidated DD form 1898 been filled out IAW DESC I-7?

7. Does the contractor ensure the DLA Energy Form 1990 TBD (Enclosure 5) is annotated with a Vehicle Number, License Plate Number, or Equipment Identification Number?

8. Does the contractor ensure the DLA Energy Form 1990 (Enclosure 5) is annotated with the sponsors: UNIT ID or

UIN?

9. Does the contractor ensure each customer signs the DLA Energy Form 1990 (Enclosure 5)?

10. Does the contractor ensure the Consolidated DD Form 1898 is annotated with: UNIT PRICE: (Mandatory) Automotive Any Type or Grade (non-contract source at a gas station) price for ground fuel, IAW DESC I-7, para 4.2.?

11. Does the contractor ensures the DD Form 1898 is annotated with: SERVICE LOCATION: name of the installation, DoDAAC?

12. Does the contractor ensures the 1898 is annotated with: TOTAL PRICE: The fuel sale QUANTITY multiplied by the UNIT PRICE plus the assessed FET (when required) IAW DESC I-7, para 4.2.8.

13. Does the contractor ensure the 1898 is annotated with: METHOD OF PAYMENT:

(Not Applicable) Enter “CASH” in the

“BILLING ADDRESS?

14. Is a daily DFSP document control folder created each day with all paper documents that support DWCF energy product inventory receipts, sales/issues, shipments, and inventory adjustment events? IAW DLA Energy P-3, Enclosure 3, para 1.b.

15. Is each fixed storage tank containing DWCF owned fuel equipped with a certified strapping chart and, at a minimum, graduated in feet, inch, and 1/8 inch increments (meters/millimeters are acceptable for overseas locations) with the associated quantities represented in whole U.S. gallons? IAW DLA Energy P- 2, para. 3.2.4.1.

16. Are sales documents (DD Form 1131 and 1898) maintained on file for 6 years, 3 months? IAW DLA Energy P-3, Appendix 1

17. Does the supervisor always ensure that PPE is worn in the work area? IAW

OSHA 29 CFR 1910

Note: Includes fuel-resistant or rubber gloves, goggles, and protective clothing to keep fuel off the skin. Wear ear protection when working in high noise areas.

ENCLOSURE 5