Complied_Fuel_Card_Questions.pdf

ITALY TAX FREE FUEL CARD

QUESTION AND ANSWERS TO DRAFT RFP

Solicitation No. SPE600-16-R-0225

1. “The Government will evaluate offers in accordance with the policies and procedures of FAR part. 25.

For line items covered by the WTO GPA, the Government will evaluate offers of U.S.-made or designated country end products without regard to the restrictions of the Buy American statute. The Government will consider for award only offers of U.S.-made or designated country end products unless the Contracting Officer determines that there are no offers for such products or that the offers for such products are insufficient to fulfill the requirements of the solicitation”.

Could you please explain me what does it mean? Can foreign companies participate in the tender?

The restrictions in the Buy American statute are not applicable in acquisitions subject to certain trade agreements. The full list can be obtained at Federal Acquisition Regulation (FAR) Part 25.4- Trade Agreements

According to FAR Part 25.0003- Definitions, countries that are considered “designated country” that fall under the World Trade Organization Government Procurement Agreement (WTO GPA) are the following: Armenia, Aruba, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Montenegro, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan (known in the World Trade Organization as “the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu” (Chinese Taipei)) or United Kingdom.

Foreign companies can participate as long as they are covered by a GPA. If not, a waiver has to be approved.

2. Pricing and discount terms:

* Could you kindly confirm that “Staffetta Quotidiana” “Prezzi Italia” is the official reference price and the price adjustments are made twice a month?

Yes, although we would consider reducing it to one adjustment a month.

*Is it mandatory to offer one flat discount applied to all sites or we can submit the offer with 2 different discounts related to the self-service/full service mode?

It is preferred that all prices reflect full-service mode of fuel delivery for our customers.

*It’s not totally clear how to fill the attachment 2 - schedule A - offer price data sheet. Could you provide an example of compiled offer price data sheet?

An example cannot be provided. Please ensure that offer prices in the last column is the unit price per liter.

3. Volumes, network coverage and products:

*Could you confirm that estimated amount of fuel is in the range 45-50 Million liters per year of which approx. 80% of Unleaded?

Yes, that is correct.

*Could you provide us with an estimated volumes distribution regarding the different NATO Italy locations? If not feasible, it would be useful to get data volumes split by Italian regions.

Yes, estimated data volumes split by Regions could be provided if necessary

*In the section 1.6 Evaluation criteria - Card requirements – VII- you mention as requirement “accepted at a sufficient number of fueling locations…”. Could you explain better what sufficient number means for your tender?

A sufficient number would include 80% of the stations within a 50km radius of each site listed.

*Is it allowed to exclude any specific retail sites from the offer?

Yes, note that a decreased number of retail sites may impact what is deemed as a competitive offer.

*Could you provide the SPG (Gasoline Super Premium) and SF1 (Diesel Low Temp.) specs data sheet?

Specs can be provided, but they should be standard specs utilized at all gas stations in Italy regardless of the company

*Motor oil: could you specify the type of packaging (package 1-5 liters, drum, bulk…). Could you confirm that even this product, as the fuel, is supposed to be sold on the Site by means of Fuel Cards, and invoiced in liter to permit the tax exemption. Alternatively, would you consider a delivery of product directly to the NATO sites?

A separate card based ration could be offered for sale to customers since the value of motor is different than unleaded and diesel fuel. Yes, we could consider delivery of product directly to the NATO sites and/or relevant fueling stations.

Packaging must be one/two/five liter to ensure eligible members can purchase their authorized rations of either four/six or eight liters per month.

4. Documentation

*Are all the 6 attachments, included in “OFFEROR PROPOSAL FORMS CHECKLIST” in the RFP to be sent by October the 3rd?

As of right now all requested attachments have been attached Please keep in mind that this is a “draft” and there may be some changes to the “official” RFP.

*Are there any other documentation/activities mandatory by October the 3rd?

Documentation submission is welcomed, but not mandatory. The purpose of posting of the “draft” RFP is to give the public the opportunity provide feedback and suggest any improvements.

5. Who is expected to manage the cards from the administrative and financial point of view: the offeror, or the client (DLA Energy)? In addition to a technology solution, is DLA Energy looking for a fuel card service?

The cards could be managed in a variety of ways per the questionnaire attached in the draft RFP. The offeror, a NATO sales outlet, or a fuel service provider could be part of a potential solution. Fuel card service and a technology service are both components we are considering by offerors to determine a solution that meets the needs of our US-NATO community in Italy. Therefore, multiple mediums, just technology, just cards, just fuel service are all components for consideration in creating the optimal solution for the fuel program in 2017 and beyond.

6. Will Fuel Cards only be used within a defined circuit of affiliated service stations, or are they also expected to be used for different purchases through any operator (such as the standard banking system credit / debit cards)?

Both statements are possible solutions.

7. Are Fuel cards expected to allow the payment only in open facilities with the operator or even in closed facilities (self-service mode)?

An ideal solution would include the ability for card readers/card technology to be in use at closed stations without service attendants; allowing our community of up to 20,000 customers to fulfill their fuel needs at any hour of the day. The cards sold would thereby need the relevant capability and technology to be compatible with card readers.

8. MISCELLANEOUS EXPENSES: surcharges associated with the day to day use of the fuel card are requested in %:

Can surcharges also be expressed in cents/liter (as done with US Military / AAFES in NL)?

Since the price of fuel will change 1-2 times per a month we believe it is easier to work on the basis of a %. However, a company may choose a fixed rate. (e.g. If the cost per a liter of fuel for February 2016 was .88 / per a liter and the company chooses to have a fixed rate such as .10 cents, despite if the cost of fuel rises to 1.00/per a liter. I believe that could be acceptable if the rate/charge mechanism is well described in a proposal. If the proposed surcharge is greater than 15% I believe an offeror should describe why an exorbitant surcharge is required to support this program.

9. RFP - Paragraph 1.5: 'Offer prices' are requested to be a unit price per liter:

In Spain and Netherlands, a vendor offers a tax-free fuel card to the US military for which pricing is agreed to be dependent on the pump prices. Pump prices can change daily and cannot be predicted.

Would this type of pricing be possible in Italy?

This model would indicate that the offeror would recommend usage of a post-paid card for this version of a pricing model. As such, that would be a less than desirable solution unless a well-articulated method of customer payment is accessible and described in the offeror's proposal. What fuel stations would be accessible? How would the offeror ensure the card is accepted at the pumping station? How would customers add value at an IVA exempt rate?

10. RFP - par 1.6: Card expiry is requested at one year from contract date in the RFP:

Some post-paid fuel cards expire after 3 years, but the card is automatically blocked (and can no longer be used) at quota/ration end date. Quota rules are defined by the US military and Italian government, for example US military in NL lets the quota expiry at vehicle registration end date. This has proven to be a very useful control.

Can the requested card expiry be replaced by a card blocking at quota expiry as explained before?

The question is not clear. The card should have the ability to comply with the required liter/quota requirements per an authorized user per a month (200, 300, 400 liters max). Additionally, we must maintain the capability to conduct close-out reporting effective 30 SEP of each year. Blocking capabilities should be options that will allow us to comply with our requirement to ensure customers do not have access to IVA free fuel after the termination of their benefits. Usually one's benefits of tax-free fuel expire with one's departure from their assignment to Italy and/or if they incur a criminal or safety infraction that eliminates their access to benefits.

11. RFP – Paragraph 2.5: Tax Recoupment Process:

Is it already clear how the tax recoupment process (performed by the vendor) will work? Will taxes be claimed back each quarter based on 'quarterly plafonds' or 'consumed volumes'? How long will it take before Italian government will pay back the taxes?

Currently the Italian government processes quarterly plafonds. The process of refunding taxes can take up to 180 days.