Attach_4_15R0711.pdf

Attachment 4

EVALUATION OF OFFERS for BIOFUEL BLENDS

Application of the Biofuel Production Incentive (BPI) Evaluation Factor to F76 and JP-5

A Biofuel Production Incentive (BPI) evaluation factor will be applied to offers to supply F76 or JP5 containing a minimum of 10% and a maximum of 50% blended biofuel as permitted by specifications MIL-DTL-16884N and MIL-DTL-5624 respectively, and using a qualified feedstock or feedstocks listed in Attachment 5 to produce the biofuel used in the blended product. The BPI evaluation factor will be a fixed $.25 per gallon of blended biofuel, regardless of the percentage of biofuel blend offered. The BPI will be applied by subtracting that amount from an offeror’s price for evaluation purposes only.

Small business set-aside match pricing will be determined by the Bulk Fuels Bid Evaluation Model (BEM) award pattern that includes the BPI evaluation factor for qualified small business offers ONLY. Any quantities designated for award to a small business under the Small Business Set-Aside price matching portion of the portion of the evaluation will be excluded from further consideration. The BPI evaluation factor will then be applied to all qualified offers and the BEM will be used to determine the award pattern. If the resulting award pattern yields a successful offeror evaluated with the BPI applied, the BPI will be removed from all offers and the BEM will be used to determine the price that the Government would otherwise pay for fuel for each location in the solicitation, while preserving previously identified small business set-aside award quantities.

For each quantity awarded that contains a BPI evaluation factor, the awarded price will be the offered price, which will be split into two contract line items. The first line item will be the price that DLA Energy would otherwise pay, based on the award pattern determined in the BEM run without the BPI included. The second line item will be the difference between that price and the offered price, and will represent the actual amount of the BPI to be paid by the Commodity Credit Corporation (CCC).

This BPI will be firm and fixed for the life of the contract; it will not escalate based on any market index.

$66,368,750 of CCC funds are available to support awards made to offerors eligible for the biofuel production incentive. The award pattern determined by the BEM will be reviewed to ensure that potential awards that include the BPI do not exceed the total available CCC funds. Actual award quantities will be restricted to meet CCC funding limitations.

The BPI is not an additional sum to be paid to an offeror over and above the offered price. The BPI will be applied as an evaluation factor as described above to determine if any award will be made for biofuel blends. After the award decision is made, the actual amount of the BPI to be paid by the CCC will be separately calculated and covers the portion of the total offered price, which exceeds the price the Government would otherwise pay. In no event will an offeror be paid a price higher than its offered price.

In the event of a tie between two or more equally evaluated offers, award will be made to the offeror with the highest biofuel content.