BEM_Vendor_Handout.pptx
PPTX presentation 2 MB Posted
- Attached to
- INLAND/EAST/GULF COAST Solicitation
- Solicitation number
- SPE600-15-R-0719
- Issued by
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Defense Logistics Agency Energy
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IEG PreProposal Conference - BEM Handout
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Bid Evaluation Model (BEM) Bio-Fuel Evaluation / Offer Entry Tool (OET)
William “Bill” MacLaren Procurement Analyst 703-767-8426 William.MacLaren@dla.mil
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
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
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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 into offer evaluation (storage limitations, transportation considered through 6th destination) Provides market-driven price substantiation for socio-economic program support
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BEM – Distribution Costs Operating cost for ocean tankers, barges, tank trucks, and pipelines
Terminal Operation costs for tariff agreements
Additive injection (FSII, SDA, CI)
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‘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’
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BEM - Example Evaluation
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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:
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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 Grouped offers ‘Either / Or’ offers
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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)
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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
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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!
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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 |
WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
Determine CCC 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 |
WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
Calculating CLIN Values
| SUCCESSFUL OFFER PRICE | $3.350000 |
| CCC WEIGHTED AVERAGE COST | $0.04 |
| FUEL CLIN VALUE | $3.310000 |
CLIN 0001 XX,XXX USG @ $3.31000000 (invoice paid by DLA Energy)
CLIN 0002: xx,xxx USG @ $0.040000 (invoice paid by USDA)
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PATH TO AWARD
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ISSUE RFP
CLOSE REF/ INIITIAL OFFERS SUBMISSION
INITIAL EVALS & TECH REVIEW
OPEN NEGOTIATIONS
ISSUE BEM REPORTS
FINAL PROPOSAL REVISIONS
ISSUE BEM REPORTS
REVERSE AUCTION
FINAL TECH EVALS
COMPLETED BEM
SMALL BUSINESS NEGOTIATIONS
FINAL BEM RUN
AWARDS
REQUEST INTERIM PRICES
Bulk BEM Reports
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Bulk BEM Reports
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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 Bulk Fuels OET-105
OFFER ENTRY TOOL (OET)
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OET – MAIN MENU
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OET – User Account Info
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OET – Shipping Point Setup
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OET Offer Card (Origin)
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OET Offer Card (Destination)
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To submit an offer in OET you must complete the following:
Identify at least one shipping point Create at least one offer bid line (origin or destination) Electronically sign the offer (SF1449) Attach 1 PDF document to offer package PDF document size currently limited to 4 MB PDF document can include cover sheet, remaining pages of OSP, etc.
Offer conditions can be applied (optional) Submitting OET Offer
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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 OET User Manual in Development When complete will be available from OET home page
OET – Things to Remember
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Questions / Answers
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