RMW_2015_MASTER_Preproposal_Conference_Slides_28Apr2015_FINAL_sanitized.pdf
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- SPE600-15-R-0711
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Defense Logistics Agency Energy
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Slides presented at the April 29 2015 RMW Pre-Proposal Conference.
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1 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
DEFENSE LOGISTICS AGENCY
AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY
WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
DLA Energy Rocky Mountain/West Coast/Offshore (RMW)
SPE600-15-R-0711
Pre-proposal Conference
April 29, 2015
2 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Master of Ceremonies: Sandra S. Shepherd Distinguished Guests: - Joseph M. Bryan, SES Deputy Asst. Secretary of the Navy (Energy)
- Mark M. McLeod, BG, USAF Commander, DLA Energy
- George W. Atwood III Deputy Commander, DLA Energy DLA Energy Points of Contact:
• Division Chief Joshua D. Catlin 703-767-9256
• Contracting Officer Jeremy S. Babb 703-767-9687
• Contract Specialist Michelle R. Sands 703-767-9296
Vendor Introductions:
Introductions
3 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
• Opening & Welcoming Remarks
• Dept of the Navy / Farm to Fleet Overview
• Dept of Agriculture
• BREAK
• RMW Program & Solicitation Overview
• Technical Evaluation Report
• CCC / Section 526 / Quality Requirements
• LUNCH
• Bid Evaluation Model (BEM)/Bio-Fuel Evaluation/Offer Entry
Tool
• “Break Out” Sessions for Questions & Answers
• Closing Remarks
Overview of Agenda
4 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Mark M. McLeod, BG, USAF Commander, DLA Energy
Opening & Welcoming Remarks
5 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Joseph M. Bryan, SES Deputy Assistant Secretary of the Navy (Energy)
Opening & Welcoming Remarks
DEPARTMENT OF THE NAVY
Farm to Fleet Overview
Chris Tindal Director for Operational Energy
Office of the Deputy Assistant Secretary of the Navy for Energy
SECNAV Energy Goals
Increase Alternative Energy Sources Ashore
Sail the “Great Green Fleet”
Reduce Non-tactical Petroleum Use
Energy Efficient Acquisitions
Increase Alternative Energy Department-w ide
Farm to Fleet Biofuels Initiative
• Biofuels acquisitions for Great Green Fleet 2016
• Ramp up to SECNAV’s 2020 goals (336 MM gal)
• DLA Energy bulk fuels contracting to begin large-scale, domestic drop-in biofuel purchases for regular operational use
• USDA CCC funds can be used to help defray feedstock costs
Farm to Fleet Biofuels Initiative
• 10% blend target, 1 year contract
– 10% ≈ 27 MM gal (neat)
– Will go up to blend amounts allowed per specification
– JP-5 jet fuel and F-76 marine diesel fuel – F-T and HEFA
– Other pathways may be added for future solicitations pending test & qualification efforts
• CCC Eligibility
– Compliance with USDA guidelines
• Feedstock Preferences
– Navy is feedstock agnostic; targets finished fuel specifications
• GHG emissions
– EISA 526 dictates same or better GHG emissions
Great Green Fleet 2016
• Year-long event throughout CY 2016
• Highlight deploying ships with 3+ energy conservation measures (ECMs) or alternative energy for propulsion, deploying aircraft with 2+ ECMs or alternative energy propulsion
• Ushers in the “New Normal”
• Maximize likeness to Great White Fleet, but no dedicated group or itinerary for 2016
• Maximize use of alternative energy (e.g. alternative fuels or nuclear power) in use
2 x F/A-18E, USS Nimitz (CVN-68)
12 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Questions / Answers
13 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
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DEPARTMENT OF AGRICULTURE
Briefer: Harry Baumes, Ph.D.
PLACE HOLDER
Office of the Chief Economist Office of Energy Policy and New Uses
Harry S. Baumes, Ph. D.
Director
Defense Logistics Agency – Energy Hilton Springfield Hotel, Virginia
April 29,2015
Pre-Proposal Conference for Rocky Mountain/West Coast/Offshore
USDA Role
Feedstock Production
Feedstock Logistics
Fuel Conversion
Conversion Scale-up/Integration
Fuel Testing/Approval Fuel
Performance Environment
Assmt
End User/ Buyer
Enable Production Fe ed st oc k
D ev el op m en t
Supply Chain Approach for Alternative Jet Fuels
Feedstock Development & Production Research and Education
Feedstock pathways – Integration - Scale Up Commercial Production
End –Use Alternative Fuels
USDA Partnerships with Navy
Farm to Fleet Program
Defense Production Act
Office of Energy Policy and New Uses Farm to Fleet
Agriculture, Navy Secretaries Promote U.S. Military Energy Independence with 'Farm-to-Fleet‘
WASHINGTON, Dec. 11, 2013 – Agriculture Secretary Tom Vilsack and Secretary of the Navy Ray Mabus today announced the U.S. Departments of Agriculture (USDA) and Navy's joint "Farm-to-Fleet" venture will now make biofuel blends part of regular, operational fuel purchase and use by the military. The announcement incorporates the acquisition of biofuel blends into regular Department of Defense (DOD) domestic solicitations for jet engine and marine diesel fuels. The Navy will seek to purchase JP-5 and F-76 advanced drop-in biofuels blended from 10 to 50 percent with conventional fuels. Funds from USDA's Commodity Credit Corporation (CCC) will assist the effort.
Farm-to-Fleet builds on the USDA / U.S. Navy partnership inaugurated in 2010, when President Barack Obama challenged his Secretaries of Agriculture, Energy and Navy to investigate how they could work together to speed the development of domestic, competitively-priced "drop-in" diesel and jet fuel substitutes.
Illustration of the Use of CCC funds
3.5
3.6
3.7
3.8
3.9
4.1
4.2
JP-5 / F-76
Biofuel Fossil Fuel
Delta
D ol la rs
P er
G al lo n
Office of Energy Policy and New Uses FEEDSTOCKS
• Feedstocks can be divided into 4 categories
1. Generate a RIN, not eligible for CCC funding support
2. Do not generate a RIN, eligible for CCC funding support
3. Generate a RIN, eligible for CCC funding support
4. Do not generate a RIN, not eligible for CCC funding support
Acceptable Feedstocks
• Annual cover crops and oil produced from these cover crops (these will likely need to be approved by Environmental Protection Agency on case by case basis)
• Slash, pre-commercial thinnings, tree residue and forest residue
• Wood mill residue / waste
• Camelina / camelina oil
• Non-food grade corn oil
• Canola / Rapeseed oil (Industrial grade)
Acceptable Feedstocks
• Algae / Algal Oil
• Cellulosic biomass from crop residues, i.e., stover, wheat straw, rice straw
• Switchgrass
• Miscanthus
• Jatropha
• Energy cane
• Fats, oils and greases derived in the initial processing phase but not otherwise used by a consumer
• Hybrid Poplars
• Shrub Willows
• Sorghum / sorghum oil (non-food grade)
• Sorghum, Biomass and Energy
• Sunflower Oil
• Safflower Oil
• Pennycress
• Eucalyptus
• Agricultural residues such as rice hulls and nut shells
• Animal wastes and by-products of animal wastes including fats, oils, and greases (not recycled)
• Other agricultural products approved by the Commodity Credit Corporation
Unacceptable Feedstocks
• Food waste
• Yard waste
• Municipal solid waste
THANK YOU
26 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
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27 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
RMW Program & Solicitation Overview
JEREMY S. BABB
Contracting Officer
703-767-9687
Jeremy.Babb@dla.mil mailto:Chris.boeding@dla.mil
28 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
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• Delivery Period:
- October 1, 2015 through September 30, 2016 plus a 30 day carryover
• Requirements:
- JP8, JAA, JA1,JP4, JP5* & F76*
• Method of Delivery:
- Tanker, Barge, Pipeline & Tank Truck
• Customers Served:
- Rocky Mountain/West Coast/Offshore Military/DoD Facilities
• Responsible Supply Chain: DLA Energy
*Products can be offered with or without a bio-blend (10% min, 50% max)
Program Description
29 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
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Solicitation Overview
• Statement of Need:
Estimated requirement numbers are based on past consumption as received from DLA Energy Inventory and Distribution demand planning considering historical trends, and service input on mission changes:
Product Quantity (USG) Classification
JP8 4,000,000 Military
JAA 479,600,000 Commercial
JA1 135,525,000 Commercial
JP4 1,400,000 Military
JP5* 139,800,000 Military
F76* 142,000,000 Military
* Products can be offered with or without a bio-blend (10% min, 50% max)
30 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Solicitation Overview
• Contract Type:
- Indefinite Delivery, Indefinite Quantity (IDIQ) contracts with 75% minimum guarantee
- Fixed-Price with Economic Price Adjustment (EPA)
- Multiple awards
• Competition:
- Full and open w/ some small business set-asides (52.13%)
• Solicitation:
- Negotiated Request for Proposal (RFP)
• Solicitation, Addendum, Offeror Submission Package (OSP)
- Intend to award with discussions
- System for Award Management (SAM) registration required at https://www.sam.gov/portal/public/SAM (formerly CCR) https://www.sam.gov/portal/public/SAM
31 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Solicitation Overview
• Solicitation Sections
- Section B, Supplies or Services and Prices/Costs
- Section C, Descriptions/Specifications/Statement of Work
- Section D, Packaging and Marking
- Section E, Inspection and Acceptance
- Section F, Deliveries or Performance
- Section G, Contract Administration Data
- Section H, Special Contract Requirement
- Section I, Contract Clauses
- Section J, List of Documents, Exhibits and Other Attachments
- Section K, Representations, Certifications, and other
Statements of Offerors or Respondents
- Section L, Instructions, Conditions, and Notices to Offerors or
Respondents
- Section M, Evaluation Factors for Award
32 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Solicitation Overview
• Commercial Package
– Commercial Contract Clauses and Provisions
• Addendum Package
– DFAR Clauses, DLAD Clauses, and DLA Energy Internal Contract
Provisions
– Representations and Certifications (Section K)
– Instructions to Offerors (Section L)
– Evaluation Factors (Section M) -- Bio-Fuel Evaluation
• Offeror Submission Package
– SF1449
– Offer Schedule
– Applicable fill-in clauses/provisions
– SAM
33 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Solicitation Overview
• Offer Evaluation Method:
-- Lowest Price, Technically Acceptable Evaluation (LPTA)
• Factor 1: Technical Acceptability
- Subfactor 1: Supplies or Services and Prices/Cost, Section B
- Subfactor 2: Description/Specifications/Statement of Work, Section C
- Subfactor 3: Inspection and Acceptance, Section E
- Subfactor 4: Deliveries or Performance, Section F
- Subfactor 5: Section 526 - Compliance for Biofuels*
* Applies to biofuel offers only
• Factor 2: Price
34 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
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Solicitation Overview
• Responsibility Determinations (FAR Part 9)
-- Pre-award Surveys
-- Supply Commitment Letters
35 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
36 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Inventory Management / Technical Evaluation
Marlowe Grimsley
Inventory & Distribution Management
703-767-9322
Marlowe.Grimsley@dla.mil mailto:Marlowe.Grimsley@dla.mil
37 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Technical Evaluation Lowest Price, Technically Acceptable (LPTA) -- Source Selection Evaluation Board (SSEB) --- Inventory, Tankers, Transportation, Quality Assurance, and Product Technology & Standards
-- Board reviews Offer Submission Package (OSP) and/or Offer Evaluation Tool (OET) Submittal
-- Cannot over-emphasize the need to ensure the OSP or OET is fully completed. Missing details might result in sections being rated unacceptable from the
SSEB.
38 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Evaluation Factors – Section M of Solicitation:
-- Section B, Supplies or Services
-- Section C, Description/Specs/Statement of Work
-- Section E, Inspection and Acceptance
-- Section F, Deliveries or Performance
-- Section 526, Compliance for Biofuels
Technical Evaluation (Con’t)
39 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Examples of missing data include:
-- Mode, Min/Max Quantities, Shipping Point
-- Min/Max Parcel Size, Lift Interval, Max Monthly Qty
-- Quality Exceptions/Waivers (if applicable)
-- Quality Control Plan, Tanker/Port Details
-- Shipping Rate in BBL/HR
-- Truck Loading Rack Details
Technical Evaluation (Con’t)
40 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
41 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
CCC / Section 526 / Quality Requirements
42 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Mike Domen
Chemist, Product Technology & Standardization Division Michael.Domen@dla.mil
703-767-8357
Glenn Rowinski Quality Assurance Specialist, Quality Operations Division
Glenn.Rowinski@dla.mil 703-767-8395 mailto:Michael.Domen@dla.mil mailto:Richard.Knapp@dla.mil
43 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Specifications & Quality Assurance Provisions
• Jet A (ASTM D 1655-15), Quality Assurance Provision C16.08-1
• Jet A-1 (ASTM D1655-15), Quality Assurance Provision C16.09
• JP-4 (MIL-DTL-5624V), Quality Assurance Provision C16.01-5
• JP-8 (MIL-DTL-83133H with Amd 2), Quality Assurance Provision C16.64-1
– Chevron Pipeline Aviation Fuel (UT, ID, or WA entry points): total sulfur content 0.15 mass% max
– Alaska - fuels refined in AK and delivered to AK locations: total acid number 0.020 mg KOH/g max
• JP-5 (MIL-DTL-5624V), Quality Assurance Provision C16.01
– Sulfur reduction to 0.20 mass% max
– Allowance of Fischer Tropsch (FT) and Hydroprocessed Esters and Fatty Acids (HEFA) blend components up to 50%v
• F-76 (MIL-DTL-16884N), Quality Assurance Provision C16.23
– Ultra low sulfur limit 15ppm maximum
– Allowance of FT and HEFA blend components up to 50%v
– Traceability of additives and materials
– Reference to MIL-PRF-32490, Feb 3, 2014, ADDITIVE, LUBRICITY IMPROVER, DIESEL
44 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
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Commodity Credit Corporation (CCC) Funds
• Incentive to support agricultural products used for energy production
− Not intended to be a perpetual subsidy
• To be eligible for CCC funding under this solicitation:
− JP-5 or F-76 fuel must contain at least 10% biofuel, not to exceed 50% − Fuel must be produced from domestic feedstocks as identified in Attachment 5
• Funds applied on a prorated basis as determined by the Bid Evaluation Model (BEM)
• Additional considerations during Pre-award Survey:
− Verification of feedstock(s), blend percentage, additional spec properties, storage/segregation
• Use of feedstock(s) not identified in the contract may result in loss of subsidy − Any changes in feedstock must be submitted to the contracting officer in writing
45 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
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• Requirement to ensure all Federal procurements of alternative fuels for mobility-related use result in a reduction of lifecycle greenhouse gas (GHG) emissions
– Alternative fuel GHG emissions must be less than or equal to the equivalent fuel produced from conventional petroleum sources
– Does not include fuel used for research or testing purposes
– Only applies to solicitations where source of fuel is specified
• Reduction in lifecycle GHG emission must be verified prior to contract award (See Attachment 6 of the solicitation)
– EPA approved pathway or D code according to 40 CFR §80 Subpart M
– GREET Model developed by Argonne National Lab, in accordance with methodology of AFRL report “Framework and Guidance for Estimating Greenhouse Gas Footprints of Aviation Fuels” dated April 2009
• Changes to the feedstock or production pathway/process not identified in the contract must also be reviewed for Sec 526 compliance
– Must be submitted to the contracting officer in writing
EISA 2007 Section 526
46 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
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• Please see Section 3.1.1 of MIL-DTL-5624V
• OSP - Required to provide full CoAs for any JP-5 containing a synthetic fuel blend
– 52.212-1 (b)(13) under Section L of solicitation
– Includes 3 items:
• CoA for the neat synthetic fuel, showing conformance to Table I and Annex A1 or A2 of ASTM D7566
• CoA for the finished (blended) fuel, showing conformance to Tables II and IV
• Percentage of synthetic fuel contained in the JP-5 noted on the test report (not to exceed 50%v)
JP-5 Synthetic Fuel Requirements
47 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
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• Please see Section 3.2.1 of MIL-DTL-16884N
• OSP - Required to provide full CoAs for any F-76 containing a synthetic fuel blend
– 52.212-1 (b)(13) under Section L of solicitation
– Includes 3 items:
• CoA for the neat synthetic fuel, showing conformance to Appendix A Tables A-I and A-II
• CoA for the finished (blended) fuel, showing conformance to Table I
• Percentage of synthetic fuel contained in the F-76 noted on the test report (not to exceed 50%v)
F-76 Synthetic Fuel Requirements
48 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
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• Thorough review of MILSPECs are a must
– Synthetic fuel must meet separate requirements BEFORE being blended with petroleum
• This may exclude certain storage and blending practices
– Differences from commercial specs may be significant
• Examples: Flash point, carbon/hydrogen %, metals
• If test equipment not available or unable to be procured in-house, alternate locations/methods should be identified
• Additives – Antioxidant is required for neat syn fuels added after production. Other additives per conventional fuel spec
• Feedstock type/percentage considerations
– Plant “mass balance” approach
• Evaluation of Exceptions/Deviations/Waivers is available
Notes on Previous Experience From Evaluating Biofuel Blend Offers
49 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
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Contractor Inspection Responsibilities E Clauses
• Two clauses of which one applies based on product type and mode of transport:
E1.21 applies for commercial fungible Jet A/A-1 with & w/o additives. Mode of P/L, TT, and TC. E1 applies to all others, including Jet A by marine vessel
E1: QCP acceptable to Gov’t., Cover all phases: Rec, Storage, Sample, Test/Calibrate, Load, Documentation, Off-spec.
E1.21 Company Plan – but must address those points cited under E1.21: COQ, additive injection procedures (homogeneity), inspect TC, provide test reports to P/L Company (must meet their spec), documentation (COQ & BOL) to QAR, P/L and/or truck driver. Additive concentrations on COQ or BOL.
50 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
51 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Bid Evaluation Model (BEM)
Bio-Fuel Evaluation / Offer Entry Tool (OET)
William A. (Bill) MacLaren
Bulk Petroleum Procurement Analyst
703-767-8426
William.MacLaren@dla.mil mailto:William.MacLaren@dla.mil
52 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Bid Evaluation Model (BEM)
• Awards made based on lowest overall cost to DoD taking into account offer pricing, transportation to point of sale and other cost factors
• Model calculates costs of all possible ways to connect an offer to a requirement
- All offer lines considered individually
- All possible transportation modes considered
- Applicable node/arc combinations up to four iterations to connect offerors and requirements
- All offer options (such as “either/or” options for JP5 or JP8) and considerations (offer maximums/minimums) and additive possibilities
• Each “leg” of a route is monetized and added to the offer (up to 6 legs)
• Includes intermediate throughput costs and evaluation factors
• Lowest overall cost across all requirements is awarded
53 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
BEM - Capabilities
• Reflects anticipated supply chain management execution/cost
• FAR Part 47 compliant
• Supports industry demand for evaluation of complex offer structures, including:
- Tiered pricing
- Volume discounts or penalties
- Product combination limitations
- Multiple load capabilities (modes of transport)
- Parcel size limitations
- Additive injection limitations/capabilities throughout supply chain
• Factors commercial/DoD petroleum distribution network limitations in offer evaluation (storage limitations, transportation considered through 6th destination)
• Provides market-driven price substantiation for socio-economic program support
54 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
BEM – Distribution Costs
• Operating cost for ocean tankers, barges, tank trucks, and pipelines
• Terminal Operation costs for tariff agreements
• Additive injection (FSII, SDA, CI)
55 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
• ‘Other Costs’ are the costs the Government will incur if a particular award pattern is awarded.
– Excess thru-put charges, Environmental Fees, etc.
• ‘Eval Factors’ are things that affect the delivered cost of a specific bid line of an offer
– Alternate price escalators, Farm to Fleet discount, etc.
• ‘Other Costs’ and ‘Eval Factors’ do NOT change actual award price.
‘Other Costs’ vs ‘Eval Factors’
56 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
BEM - Example Evaluation
57 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
BEM - Considering Transportation: Effect
Offers A: 6,000,000 USG by TT @ $2.95/gallon B: 6,000,000 USG by PL @ $3.00/gallon C: 1,000,000 USG by PL @ $2.99gallon
Requirements Base 1: 3,000,000 gallons received by TT Base 2: 3,000 ,000 gallons received by TT Base 3: 1,000 .000 gallons received by TT
Intermediate Depot Support Available Into X by PL, out by TT to all Requirements Into Y by PL, out by TT to all Requirements
Transportation Rates A to 1 (TT): .28/gallon A to 2 (TT): .20/gallon A to 3 (TT): .23/gallon B to X (PL): .02/gallon B to Y (PL): .02/gallon C to X (PL): .01/gallon C to Y (PL): .04/gallon X to 1 (TT): .05/gallon X to 2 (TT): .02/gallon X to 3 (TT): .05/gallon Y to 1 (TT): .04/gallon Y to 2 (TT): .06/gallon Y to 3 (TT): .02/gallon
PL = Pipeline; TT = Tank Truck
Offer A
6,000,000 USG
@$2.95
Offer C
1,000,000 USG
@$2.98
Offer B
6,000,000 USG
@$3.00
DFSP X
DFSP Y
Base 3
1,000,000 USG
Base 2
3,000,000 USG
Base 1
3,000,000 USG
.28
.02
.05
.01
.02 .05 .02
.04
.02
.04
.20
.23
.06
Requ 1 – Offeror A (total cost $3.23/gal) Requ 2 – Offeror A (total cost $.315/gal) Requ 3 – Offeror C (total cost $3.04/gal) Total cost: $22,180,000
Requ 1 – Offeror B (total cost $3.06/gal) Requ 2 – Offeror C (total cost $3.01/gal) Requ 2 – Offeror B (total cost $3.04/gal) Requ 3 – Offeror B(total cost $3.04/gal) Total cost: $21,310,000 $870K Savings Distribution Plan Generated
Evaluated on Offered Price Only: Evaluated on Laid-Down Cost:
58 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
BEM – Conditional Coding
• BEM will allow offers to place various conditions on offer
• Overall Maximum / minimum
• Combined products
• Limits by method of delivery
• Multiple product Max / Min restrictions
• Tie multiple bid lines together for evaluation
• Allows offer to split the performance period between two or more bid lines
59 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
APPLYING FEEDSTOCK EVALUATION FACTOR
• BIO FEEDSTOCK EVALY FACTOR $0.25 PER
BLENDED USG
• ACCEPTABLE BLEND 10%-50%
• EVALUATED PRICE REDUCED BY FACTOR!!
OFFER PRICE EVAL FACTOR EVALUTATED
PRICE
$3.500000 $0.250000 $3.250000
AWARD PRICE WOULD BE THE OFFER
PRICE OF $3.500000 (IF SUCCESSFUL)
60 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Set Aside Values
Matching price calculations for location with qualified small bio Feedstock
DELIVERED
PRICE
EVAL FACTOR EVALUATED
DELIVERED PRICE
No Bio Small $3.350000 $0.00 $3.350000
Bio Small $3.550000 -$0.25 $3.300000
Bio Large $3.540000 -$0.25 $3.290000
• Laid down prices for offers
61 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Set Aside Values
• Eval factor removed from non-qualified smalls
Matching price calculations for location with qualified small bio Feedstock
DELIVERED
PRICE
EVAL FACTOR EVALUATED PRICE
No Bio Small $3.350000 $0.00 $3.350000
Bio Small (10%) $3.550000 -$0.25 $3.300000
Bio Large (10%) $3.540000 -$0.25 $3.290000
Small Bio Fuel offer wins!
62 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Set Aside Values
Initial laid down cost for price matching.
BID PRICE EVAL FACTOR DELIVERED PRICE
No Bio Small $3.35000 $0.00 $3.350000
Bio Large $3.540000 $0.25 $3.290000
• Price matching for locations without qualified small bio feedstock offers
Price matching with eval factor removed
BID PRICE EVAL FACTOR DELIVERED PRICE
No Bio Small $3.35000 $0.00 $3.350000
Bio Large $3.540000 $0.00 $3.540000
63 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Determine CCR Premium and Avg cost per gallon
Delivered Value Final Run with Eval Factor $1,500,500,000.00
Delivered Value Final Run without Eval Factor $1,490,500,000.00
Total cost of eval factor (difference) $ 10,000,000.00
Total gallons of procurement 250,000,000 USG
Total of premium $10,000,000.00
Cost per gallon $0.04
64 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Calculating CLIN Values
SUCCESSFUL OFFER PRICE $3.350000
CCR WEIGHTED AVERAGE COST $0.04
FUEL CLIN VALUE $3.510000
CLIN 0001 XX,XXX USG @ $3.51000000 (invoice paid by DLA Energy)
CLIN 0002: xx,xxx USG @ $0.040000 (invoice paid by USDA)
65 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
ISSUE RFP
CLOSE REF/
INIITIAL OFFERS
SUBMISSION
INITIAL EVALS &
TECH REVIEW
OPEN
NEGOTIATIONS
REQUEST
INTERIM PRICES
ISSUE BEM
REPORTS
FINAL PROPOSAL
REVISIONS
ISSUE BEM
REPORTS
REVERSE
AUCTION FINAL TECH EVALS
COMPLETED BEM SMALL BUSINESS
NEGOTIATIONS FINAL BEM RUN AWARDS
PATH TO AWARD
66 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Bulk BEM Reports
67 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Bulk BEM Reports
68 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
• BULK OET AND DIRECT DELIVERY OET ARE
DIFFERENT!!
• Use of OET is optional for this procurement
• Two steps to obtaining an OET account
– Register for an account in AMPS (or use existing account)
– In AMPS apply for Vendor Offer Submission Role OET-100
OFFER ENTRY TOOL (OET)
69 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
• A separate account for each CAGE code
– List ALL CAGE codes you may submit offers entry in the justification notes box in the role application
• Link to AMPS: https://amps.dla.mil/oim
• Link to OET:
https://offerwizard.dla.mil/bulkoet/bulkoet.html
• OET training available
– William.MacLaren@dla.mil
– (703) 767-8426
OET – Things to Remember https://amps.dla.mil/oim https://offerwizard.dla.mil/bulkoet/bulkoet.html mailto:William.MacLaren@dla.mil
70 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
71 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
• Tables with Subject Matter Experts are located in the main conference room and “Break-Out” Room 1
• Questions and answers that are not vendor specific regarding their offer will be recorded, compiled and posted on FBO.gov on the FAQ memo.
Break-Out Sessions for Q&A
72 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Closing Remarks
RMW Pre-Proposal Conference
73 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
DEFENSE LOGISTICS AGENCY
AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY
WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
| Slide Number 1 |
| Introductions |
| Overview of Agenda |
| Opening & Welcoming Remarks |
| Opening & Welcoming Remarks |
| Slide Number 6 |
| Slide Number 7 |
| Farm to Fleet Biofuels Initiative |
| Farm to Fleet Biofuels Initiative |
| Great Green Fleet 2016 |
| Slide Number 11 |
| Slide Number 12 |
| Slide Number 13 |
| Pre-Proposal Conference for�Rocky Mountain/West Coast/Offshore� �USDA Role |
| Slide Number 15 |
| USDA Partnerships with Navy� |
| Farm to Fleet |
| Illustration of the Use of CCC funds |
| FEEDSTOCKS |
| Acceptable Feedstocks |
| Acceptable Feedstocks |
| Acceptable Feedstocks |
| Acceptable Feedstocks |
| Unacceptable Feedstocks |
| THANK YOU |
| Slide Number 26 |
| Slide Number 27 |
| Program Description |
| Solicitation Overview |
| Solicitation Overview |
| Solicitation Overview |
| Solicitation Overview |
| Solicitation Overview |
| Solicitation Overview |
| Slide Number 35 |
| Slide Number 36 |
| Slide Number 37 |
| � |
| Slide Number 40 |
| Slide Number 41 |
| Slide Number 42 |
| Specifications & �Quality Assurance Provisions |
| Commodity Credit Corporation (CCC) Funds |
| EISA 2007 Section 526 |
| JP-5 Synthetic Fuel Requirements |
| F-76 Synthetic Fuel Requirements |
| Notes on Previous Experience�From Evaluating Biofuel Blend Offers |
| Contractor Inspection Responsibilities�E Clauses |
| Slide Number 50 |
| Slide Number 51 |
| Slide Number 52 |
| BEM - Capabilities |
| BEM – Distribution Costs |
| ‘Other Costs’ vs ‘Eval Factors’ |
| BEM - Example Evaluation |
| BEM - Considering Transportation: Effect |
| BEM – Conditional Coding |
| APPLYING FEEDSTOCK EVALUATION FACTOR |
| Set Aside Values |
| Set Aside Values |
| Set Aside Values |
| Determine CCR Premium and Avg cost per gallon |
| Calculating CLIN Values |
| Bulk BEM Reports |
| Bulk BEM Reports |
Slide Number 70
Slide Number 73
File details come from the government source that posted it. Updated .