Amendment_0006_.pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

1. CONTRACT ID CODE

2. AMENDMENT/MODIFICATION NO.

3. EFFECTIVE DATE

July 27, 2016

4. REQUISITION/PURCHASE REQ. NO.

See Block 14

5. PROJECT NO. (If applicable)

6. ISSUED BY CODE

SPE600 7. ADMINISTERED BY (If other than Item 6) CODE SPE600 DLA Energy

8725 JOHN J. KINGMAN RD., SUITE 2945

FT. BELVOIR, VA 22060-6222

USA

8. NAME AND ADDRESS OF CONTRACTOR (NO., street,city,county,State,and ZIP Code)

X

9a. AMENDMENT OF SOLICITATION NO.

SPE60016R0510

9b. DATED (SEE ITEM 11)

10a. MODIFICATION OF CONTRACT/ORDER NO.

10b. DATED (SEE ITEM 13)

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

[ X ] The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers [ X ] is extended, [ X ] is not extended

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods:

(a) By completing Items 8 and 15, and returning _____1__ copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted;

or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment your desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

12. ACCOUNTING AND APPROPRIATION DATA (If required)

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: I2.06 CHANGES-FIXED PRlCE(ALT II,) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER

NO. IN ITEM 10A

X

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b)

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority)

E. IMPORTANT: Contractor [X] is not, [ ] is required to sign this document and return _______ copies to the issuing office.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

See Page 2

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15A. NAME AND TITLE OF SIGNER (Type or print)

16A. NAME OF CONTRACTING OFFICER (Type or print)

15B. NAME OF CONTRACTOR/OFFEROR

(Signature of person authorized to sign)

15C.DATE SIGNED 16B. UNITED STATES OF AMERICA

(Signature of Contracting Officer)

16C.DATE SIGNED

NSN 7540-01-152-8070 STANDARD FORM 30 (REV. 10-83)

Previous edition unusable Prescribed by GSA FAR (48 CFR) 53.243

The purpose of Amendment 0006:

1.) Incorporate the following clauses:

E-0001 - E1.01 CONTRACTOR RESPONSIBILITY FOR GOVERNMENT INSPECTION OF SERVICES (DLA ENERGY

JAN 2012)

E-0003 - E18

INSPECTION AND CLEANING OF BULK PETROLEUM TANKS (DLA ENERGY NOV 2003)

E-0004 - E22

LIST OF INSPECTION OFFICES FOR DLA ENERGY CONTRACTS (DLA ENERGY JUL 2013)

E-0006 - E34

TEST FOR SULFIDES IN WATER (DLA ENERGY MAY 1987)

2.) To correct the numbering of SECTION E INSPECTION AND ACCEPTANCE

3.) Solicitation SPE600-16-R-0510 will re-open July 27, 2016 and close on July 29, 2016 3:00pm EST. No questions are accepted at this time - Ambiguities in the proposal or other concerns (e.g., perceived deficiencies, weaknesses, errors, omissions, or mistakes) will be addressed during negotiations and final proposal revision.

4.) All other terms and conditions of the solicitation remain unchanged.

SECTION E INSPECTION AND ACCEPTANCE

E-0001 – E1.01 CONTRACTOR RESPONSIBILITY FOR GOVERNMENT INSPECTION OF SERVICES (DLA ENERGY JAN 2012)

If any inspection or test is made by the Government on the premises of the Contractor or subcontractor, the Contractor without additional charge shall provide all reasonable facilities and assistance for the safety and convenience of the Government inspectors in the performance of their duties.

E-0002 -E1.11 QUALITY CONTROL PLAN (DLA ENERGY MAR 2000)

(a) Upon award, the Contractor shall prepare, in triplicate and in English, a Quality Control Plan (QCP). Prior to the first receipt of

Government-owned product into the facility, two copies of the QCP shall be forwarded to the Contracting Officer and one copy to the assigned

Quality Assurance Representative for approval.

(b) The QCP shall include the following quality control procedures employed by the Contractor.

(1) Receiving (both product and additives);

(2) Blending;

(3) Sampling;

(4) Testing;

(5) Storage and handling;

(6) Loading and shipping;

(7) Calibration program for testing and measuring equipment in accordance with ISO 10012-1, "Quality Assurance Requirements for Measuring Equipment, Part I." Equivalent local regulation, as appropriate, may be used as well. Whichever program used must include a section addressing meter proving (used to determine quantity) and must comply with the American Petroleum Institute Manual of Petroleum Measurement

Standards, Chapters 4, 5, and 6, or equivalent foreign standard. For any item that requires calibration but is not covered by ASTM, API, or IP publications, the applicable manufacturer's recommended calibration method(s) outlined in the applicable industry publication shall be used if acceptable to the Government;

(8) Quantity measurement;

(9) Records and reports; and

(10) Corrective action procedures (to include, but not be limited to, procedures for notification of Quality Representative, actions to be taken on discovery of off-spec product during receipts/shipments, upgrading procedures for Contractor-caused contamination, leaks, etc.). The

QCP shall also include an organizational chart of key personnel and their responsibilities and a schematic diagram of the facility with key inspection/activity points marked for each product handled.

(c) The QCP shall require that each Contractor employee be familiar with its content and shall state that it must be reviewed semiannually and revised as needed. Revision should occur when any change is made to the inspection system, when any corrective action needs to be incorporated due to quality problems, and as otherwise necessary. The Contractor shall sign and date each revision of the QCP.

E-0003 -E18 INSPECTION AND CLEANING OF BULK PETROLEUM STORAGE TANKS (DLA ENERGY JUNE 2015)

(a) The Contractor shall maintain and make available upon request the following historical data relative to each storage tank provided:

(1) Date and type of construction;

(2) Name of installing contractor;

(3) Product service (past and present) and dates;

(4) Date of last cleaning/physical entry inspection and contractor's name;

(5) Structural condition based on cycle inspection at the time of cleaning or repair;

(6) Record or tank repairs;

(7) Tank dimensions and capacity;

(8) Inspection and tank cleaning frequency (date of next mandatory inspection, when tank out of service, required);

(9) Tank coating history;

(10) Tank strapping charts;

(11) As built drawings (if available); and

(12) Records of product tests and trends.

(b) At the Contractor's expense, the Contractor shall empty, inspect, and clean each bulk petroleum storage tank and dispose of all tank bottom waste for each tank furnished under this contract at the following intervals. When tank cleaning does take place, the Contractor, at his own expense, shall be responsible for providing alternate tankage and transferring the remaining product to that tankage. Such tankage shall be suitable for storing the transferred product and shall be of equal or greater capacity than the tankage being cleaned. Any proposed reduction in the storage capacity cited in the contract must be approved by the Contracting Officer in advance.

(1) AVIATION FUEL STORAGE TANKS.

(i) Every 4 years for uncoated storage tanks without an inlet-filter separator;

(ii) Every 6 years for either a coated tank without an inlet filter separator, or for an uncoated tank with an inlet-filter separator; and

(iii) Every 8 years for coated tanks with an inlet-filter separator.

(iv) For storage tanks with direct receipt of fuel from barge or tanker, the frequency for physical entry inspection and cleaning will be 3, 5, and 8 years for (i), (ii), and (iii) above, respectively.

(v) Tanks will be emptied, cleaned, and inspected more frequently than the periods stated in (i) through (iv) above when sample analysis indicates a build up of sediment in the tanks.

With advanced approval, a delay in tank cleaning may be authorized if the cause for such delay is justified and approved by the Contracting Officer.

(2) GROUND AND MARINE FUEL STORAGE TANKS. Tanks will be emptied, cleaned, and inspected when sample analysis indicates a build up of sediment in the storage tanks.

(c) The time for cleaning will be measured from the date of the last cleaning regardless of whether the tank was under contract with

DLA Energy at the time of the last cleaning.

(d) Samples will be taken and tested at Government expense. If tank cleaning is required earlier than the criteria listed in (b)(1) above and the Government is shown to be at fault, then the Government will be responsible for cleaning, sampling, and testing costs. In all other cases, tanks requiring cleaning will be removed from revenue and cleaned at the Contractor's expense.

(e) At the time of offer submission, the offeror shall provide the Contracting Officer with a listing of all tank inspections and cleanings, and other activities that would take a tank out of service, which are anticipated to occur during the contract period (see chart below).

This listing shall include the tank number, location, reason for being out of service, dates the tank will be out of service and provisions that have been made to replace the tankage while it is out of service. Updates to the listing shall be sent to the Contracting Officer as soon as a change is known.

Tank

Number Location Reason Dates Replacement Tankage

E-0004 - E22 LIST OF INSPECTION OFFICES FOR DLA ENERGY CONTRACTS (DLA ENERGY JUL 2013)

The following lists shall be used to identify the Government inspection office assigned inspection responsibility for DLA Energy contracts in a particular geographic area. These contracts include, but are not limited to, those for bulk petroleum products and additives, into-plane refueling, petroleum storage and laboratory services, coal, aerospace energy (including compressed gases), and posts, camps, and stations. The area of inspection responsibility and corresponding office code are assigned in paragraphs (a) and (b). The address and phone number of each inspection office by office code is provided in paragraph (c). Unless a particular inspection office is identified in another part of the contract, the assignments in this contract provision shall apply.

(a) AREAS OF RESPONSIBILITY AND OFFICE CODES WITHIN THE CONTINENTAL UNITED STATES (CONUS):

Alabama 110 Maine 110 Oklahoma 110

Arizona 120 Maryland 110 Oregon 120

Arkansas 110 Massachusetts 110 Pennsylvania 110

California 120 Michigan 110 Rhode Island 110

Colorado 120 Minnesota 110 South Carolina 110

Connecticut 110 Mississippi 110 South Dakota 110

Delaware 110 Missouri 110 Tennessee 110

District of Columbia 110 Montana 120 Texas 110

Florida 110 Nebraska 110 Utah 120

Georgia 110 Nevada 120 Vermont 110

Idaho 120 New Hampshire 110 Virginia 110

Illinois 110 New Jersey 110 Washington 120

Indiana 110 New Mexico 120 West Virginia 110

Iowa 110 New York 110 Wisconsin 110

Kansas 110 North Carolina 110 Wyoming 120

Kentucky 110 North Dakota 110

Louisiana 110 Ohio 110

EXCEPTIONS:

(1) The El Paso, Texas, area is assigned to Code 120 (DLA Energy Americas – West).

(2) The Newcastle, Wyoming, area is assigned to Code 110 (DLA Energy Americas – East).

(b) AREAS OF RESPONSIBILITY AND OFFICE CODES OUTSIDE THE CONTINENTAL UNITED STATES (OCONUS)

(INCLUDING ALASKA AND HAWAII):

Afghanistan 400 Cyprus 200 Malaysia 300 Singapore 300

Africa 200 1 Egypt 4001 Maldives 300 South America 110

Alaska 300 Europe (Continental) 200 Malta 200 South Korea 300

Antarctica 300 Georgia 200 Mauritius 200 Sri Lanka 300

Armenia 200 Greenland 200 Mexico 110 Syria 400

Ascension Island 110 Hawaiian Islands 300 Midway Island 300 Taiwan 300

Australia 300 Hong Kong 300 Mongolia 300 Tajikistan 400

Azerbaijan 200 Iceland 200 Myanmar 300 Thailand 300

Azores 200 India 300 Nepal 300 Turkey 200

Bahrain 400 Indonesia 300 New Zealand 300 Turkmenistan 400

Bangladesh 300 Ireland 200 North Korea 300 United Arab

Bermuda 110 Iran 400 Oman 400 Emirates 400

Bhutan 300 Iraq 400 Pacific Islands United Kingdom 200

Brunei 300 Israel 200 (Central & South) 300 Uzbekistan 400

Cambodia 300 Japan 300 Pakistan 400 Vietnam 300

Canada 110/120 2 Jordan 400 Papua New Guinea 300 Wake Island 300

Canary Island 200 Kazakhstan 400 Philippines 300 Yemen 400

Caribbean Islands 110 Kuwait 400 Qatar 400

Central America 110 Kyrgyzstan 400 Russia 200

Chagos Archipelago 300 Laos 300 Ryukus Islands, Japan 300

China 300 Lebanon 400 Saudi Arabia 400

Comoros 200 Madagascar 200 Seychelles Is. 420

1 Except for Egypt, which is assigned to DLA Energy Middle East (Code 400), all other countries in Africa fall under DLA Energy Europe (Code

200).

2 The provinces of Manitoba, Ontario, Quebec, Newfoundland and Labrador, New Brunswick, Nova Scotia, and Prince Edward Island are assigned to DLA Energy Americas East (Code 110). The rest of Canada falls under DLA Energy Americas West (Code 120).

(c) INSPECTION OFFICES AND CODES.

110. DLA Energy Americas East

ATTN: Quality Manager 3

Federal Building, Room 1005

2320 LaBranch Street

Houston, TX 77004-1091

Phone: (713) 718-3883, ext. 162/161/160

FAX: (713) 718-3891

120. DLA Energy Americas West

3171 N Gaffey Street

San Pedro, CA 90731-1099

Phone: (310) 241-2806/2807

FAX: (310) 241-2836

200. DLA Energy Europe and Africa

Military Mailing Address:

DLA Energy Petroleum Lab

ATTN: Quality Manager 3

CMR 422

APO AE 09067-0422

Phone: 49-631-3406-2285/2286 4

FAX: 49-631-3406-2289 4

Commercial Shipping Address:

DLA Energy Petroleum Lab

ATTN: Quality Manager

Bldg. 320, Rhine Ordinance Barracks

Am Opelkreisel

67663 Kaiserslautern, Germany

300. DLA Energy Pacific

1025 Quincy Avenue, Building 479, Suite 2000

Pearl Harbor, HI 96860-4512

Phone: (808) 473-4307/4287

FAX: (808) 473-4232

400. DLA Energy Middle East

PSC 851, Box 180

FPO AP 09834-2800

Phone: 973-17-85-6493 4

FAX: 973-17-85-4650 4

[Location: Bahrain]

3 Designated location of the DLA Energy Regional Quality Manager/Pre-Award Survey Monitor.

4 Dial 011 before these numbers when calling from the U.S. When calling these numbers from outside the U.S., use the appropriate international long distance prefix for the country where the call originates.

E-0005 - E28 CONTRACTOR INSPECTION RESPONSIBILITIES (STORAGE) (DLA ENERGY DEC 2011)

(a) Inspection and tests by the Government of services, facilities, and equipment specified within this contract does not relieve the

Contractor from responsibility to meet all requirements of the contract.

(b) The Contractor shall furnish personnel, facilities, and equipment on-site to accomplish the following routine tests and procedures.

These on-site resources may be provided by Contractor personnel or by a commercial source action on behalf of the Contractor. The Quality

Representative will not be responsible for performing any of these services for the Contractor.

(1) Sampling of storage tanks, shipments and receipts in accordance with ASTM D 4057, Standard Practice for Manual

Sampling of Petroleum and Petroleum Products (API Manual of Petroleum Measurement Standards (MPMS), Chapter 8.1);

(2) Retaining of product composite samples from shipments and receipts as follows:

MINIMUM

METHOD OF SHIPMENT MINIMUM QUANTITY RETENTION PERIOD

Pipeline 20 liters 60 days

Tanker/Barge

Parcel Composite 20 liters 90 days

Each compartment 0.5 liters 90 days

Navy Fleet Oilers/Vessels 10 liters 60 days

Tank Truck/Car 1 liter 15 days

NOTE: After the minimum retention period, samples shall be tested for Appearance, Color (Visual), API Gravity/Density and Flash

Point and, if found to be on-specification, shall be returned to like Government stock on-site. Sample containers may be reused if properly cleaned.

(3) Determining the presence of water in storage tanks, shipments and receipts. Ensure that accurate water cuts are obtained by means of a water indicating paste conforming to MIL-W-83779B. Two suggested sources are Stewart Hall Chemical Testmaster Water

Indicating Paste or Sartomer Sar Gel Water Indicating Paste (see Note 2 below);

(4) Determining Density at 15 degrees Celsius or API gravity of products by ASTM D 1298 or ASTM D 4052 (see

Note 2 below);

(5) Determining the temperature of products by the API MPMS, Chapter 7 (see Note 2 below);

(6) Determining the Appearance of applicable products using ASTM D 4176, Procedure 1 (see Note 2 below);

(7) Determining the visual color of products.

(8) Determining the Flash Point of applicable products using test methods cited in the appropriate product specification

(see Note 2 below);

(9) Conversion of gross to net gallonage (liters);

(10) Determining the percentage (volume) of fuel system icing inhibitor (FSII) by means of a portable refractometer in accordance with ASTM D 5006. One suggested source is H.B. Industries, Inc., Glenview, IL 60025 (B/2 Anti-Icing Additive test kit) (see Note 2 below); and

(11) Determining the range of fuel electrical conductivity using ASTM D 2624. One suggested source for a conductivity meter is Emcee Electronics, Inc., Sarasota, FL 33581 (Model 1152) (see Note 2 below).

Note 1: All costs for providing the above tests and procedures shall be included in the monthly service charge. The only exception to the Contractor’s obligation to provide these services as part of the monthly service charge is when the tests described above are part of the higher order analysis (defined as the following categories: Composite Samples, Storage Tanks After Receipt, Interface Mixtures, Dormant Stocks and

Individual Tests (including particulate contamination) found in the attachment to the solicitations entitled MINIMUM REQUIREMENTS FOR

STORAGE SAMPLING AND TESTING. Provisions for providing higher order analyses are covered in the SAMPLING AND TESTING OF

PETROLEUM PRODUCTS (STORAGE) contract provision.

Note 2: Upon request, the Contractor shall permit the Quality Representative unrestricted use of the equipment and ancillary supplies needed to perform this test/procedure on behalf of the Government.

(c) During the contract, the Contractor shall furnish representative samples of the product in each storage tank, shipment or receipt at the request of, and in the manner and to the place designated by, the Quality Representative. Sample size will be 2 gallons for gasoline-type fuels and one gallon or 10 gallons for jet diesel-type fuels. The number of samples to be furnished during any 12-month period shall not exceed eight times the number of tanks specified in the contract. Such samples shall be packed, marked, and shipped by the Contractor, shipping expense prepaid, in containers and shipping boxes furnished by the Contractor. Sample containers shall be epoxy coated on the interior. This requirement is in addition to sampling required elsewhere in this contract provision and the contract. All reasonable direct shipping costs associated with samples required by this paragraph shall be reimbursed upon request from the Contractor and such costs shall not be included in the monthly service charge.

However, all other costs related to this requirement shall be included as part of the monthly service charge.

E-0006 - E34 TEST FOR SULFIDES IN WATER (DLA ENERGY MAY 1987)

(a) SCOPE. This method describes a procedure for determining the presence of hydrogen sulfide, which is sometimes formed as a result of bacterial action on the sulfates contained in water bottoms in fuel storage tanks.

(b) APPARATUS. 250 ml conical flask.

(c) MATERIALS.

(1) Dilute (10%) chemically pure sulfuric or hydrochloric acid.

(2) Lead acetate paper.

(d) SAMPLES. Representative water samples from storage tank bottoms must be taken in a glass bottle. In some cases it will be necessary to take the water sample in a Bacon bomb sampler. Samples so taken will always be transferred to a glass bottle. To preclude oxidation by air, the filled bottle must be capped immediately. The sample should be tested as soon as possible after sampling to minimize possible changes in the composition of materials in the water.

(e) PROCEDURE.

(1) The sample must be shaken thoroughly just prior to performing the test to make certain that any sediment present is included in the portion of the sample to be tested.

(2) Transfer 100 ml of the shaken sample into a conical flask. Add 20 ml of dilute (10%) chemically pure sulfuric or hydrochloric acid to the flask. Immediately place a piece of lead acetate paper folded in a "V" shape in the neck of the flask. Bring the water to a boil and continue to gently boil for three or four minutes.

(f) REPORT. The presence of sulfides in the sample will be reported if the lead acetate paper shows a black or brown discoloration

E-0007 – E35 NONCONFORMING SUPPLIES AND SERVICES (DLA ENERGY DEC 2011)

(a) DEFINITION: As used in this contract provision:

Deviation is defined as a written authorization granted after contract award and prior to manufacture of an item, to depart from a particular performance or design requirement of a contract, specification, or referenced document, for a specific number of units or specific period of time, normally the duration of the contract.

Extraordinary situation means the matter cannot await resolution until the next DLA Energy business day (0800 to

1630 hours EST, Monday through Friday, Federal Holidays excluded).

Waiver is defined as a written authorization granted after contract award to accept a configuration item or other designated item which, during production or after having been submitted for inspection, is found to depart from specified requirements, but nevertheless is considered suitable for use “as is” or after repair by an approved method. Approval is on a case-by-case basis and is normally for a set period of time.

(b) The Government may, at its discretion, accept nonconforming supplies or services. In such cases, the Contractor must obtain a deviation or waiver from the Contracting Officer prior to acceptance.

(c) The following procedures shall be used to request a deviation or waiver.

(1) Requests for deviations and waivers shall be submitted by the Contractor to the Contracting Officer with a copy to the appropriate Inspection Office referenced in the LIST OF INSPECTION OFFICES FOR DLA ENERGY CONTRACTS or QUALITY

REPRESENTATIVE contract provision of this contract. Each request shall provide the following information: Contractor name; name and contact information of the contractor’s authorized negotiator; contract number; contract line item number and product nomenclature, clause or contract provision number, paragraph and subparagraph, as appropriate; the nature of the request; the reason for the request; the corrective action being taken by the Contractor to correct and prevent recurrence of the condition(s) causing the nonconformance; and an agreement to pay an equitable price reduction, estimated and proposed by DLA Energy, over and above the administrative fee, contingent on the impact of the specific circumstances on

DLA Energy relative to approval of the deviation or waiver.

(2) In extraordinary situations, the Contractor may initially submit a verbal request for a waiver, but not a deviation, to the Contracting Officer. Written requests shall be submitted to the Contracting Officer by the next DLA Energy business day (0800 to 1630 hours

EST, Monday through Friday, Federal Holidays excluded). If the Contracting Officer cannot be reached, the Duty Officer shall be contacted to provide the necessary information to the proper individuals as soon as possible. The Duty Officer's telephone number is (800) 286-7633 or (703)

767-8420.

(3) If a deviation or waiver is granted, the contract will be modified to accept the nonconforming supplies or services and to require the Contractor to provide an equitable price reduction or other adequate consideration commensurate with the deviation or waiver being granted. If the situation warrants, a deviation or waiver may be granted without prior agreement on price reduction or other consideration, subject to agreement by the Contractor, or its representative, to subsequent negotiation. Such an agreement, in addition to a brief description of the terms of the deviation or waiver, shall be documented on the shipping document or other appropriate correspondence. After negotiations, failure to agree on adequate consideration shall be a dispute concerning a question of fact within the meaning of the Disputes paragraph of the CONTRACT

TERMS AND CONDITIONS – COMMERCIAL ITEMS contract provision of this contract.

(4) If a deviation or waiver is granted and the nonconforming supplies are accepted, then in no event will consideration be less than $500, which covers administrative costs, plus any additional cost of Government reinspection or retest, if necessary.

(5) If a deviation or waiver is granted modifying this contract, but the supplies accepted are subsequently determined to be in conformity with contract specifications, the Contractor shall still be obligated to pay the consideration originally agreed upon in support of the deviation or waiver. If, however, this consideration exceeds $1000, a second contract modification shall be issued reducing the Contractor's obligation to $1000 (the administrative cost of issuing the two required modifications), plus, if appropriate, any cost of Government reinspection or retest performed as a result of the deviation or waiver being granted.

(d) When notification of nonconforming supplies is received after the supplies have been accepted, and the Government determines not to exercise its right to reject or to require correction under the INSPECTION OF SUPPLIES – FIXED-PRICE, INSPECTION OF SERVICES –

FIXED PRICE, or CONTRACT TERMS AND CONDITIONS – COMMERCIAL ITEMS contract provision, then in no event will consideration be less than $500 to cover administrative costs. This $500 fee is in addition to—

(1) Consideration commensurate with the extent of nonconforming supplies; and

(2) Cost of Government reinspection or retest, if necessary.

The administrative fee will apply to each claim letter issued for off-specification product delivered to an activity.

(e) Contractors shall be held responsible for payment of any fines or penalties imposed on a receiving activity by an environmental enforcement agency, resulting from the delivery of nonconforming supplies under a DLA Energy contract.

(f) Repeated tender of nonconforming supplies or services, including those with only minor defects, will be discouraged by appropriate actions, including, but not limited to, rejecting the supplies or services whenever feasible and documenting the Contractor's performance records.

E-0008 -E36 INSPECTION (STORAGE) (DLA ENERGY FEB 1970)

The facilities to be provided hereunder shall be ready for inspection and acceptance by __________________________. The

Contractor shall notify the Contracting Officer of the date such tanks and facilities are available for inspection and acceptance, and the Contracting

Officer, or his designated representative, shall promptly thereafter inspect such tanks and facilities. No payment will be made for services performed or facilities provided prior to ________________________.