Price_Escalation_Provision.pdf

Amendment 0010, Attachment 1

A. The table in FAR 52.216-9069 ECONOMIC PRICE ADJUSTMENT – PUBLISHED MARKET

PRICE – DLA ENERGY DOMESTIC BULK (NOV 2011) is hereby revised to add and/or clarify the notes under each respective escalator as follows:

I II III IV V

Item No.

Name of Publication

Heading under which market indicator is published and name of product

Location where market price is applicable

Base market price as of April 5, 2016 (excludes all taxes) (see note(s) below)

EAST/GULF/INLAND/

OFFSHORE JP5/JP8/JAA

PLATT’S

OILGRAM

PRICE REPORT

JET KERO 54

US GULF PIPE

U.S. GULF COAST

$1.039260

The reference price shall be determined as follows: 100% Average of the Low and High U.S. Gulf Coast

NOTE: Prices based on this escalator will change on Tuesdays based on the prior week average. The simple average of the daily average highs and lows of the prices effective Monday through Friday (excluding any days prices are not published) shall be the adjusting market price effective for the following Tuesday through Monday.

EAST/GULF/INLAND/

OFFSHORE JP5/JP8/JAA

PLATT’S

OILGRAM

PRICE REPORT

JET KERO 54 COAST

PIPELINE

U.S. GULF COAST $0.964800

The reference price shall be determined as follows: 100% Average of the Low and High U.S. Gulf Coast

NOTE: Offers based on this Jet Kero 54 Coast Pipeline market price indicator will be subject to a positive factor of $0.065454 for evaluation purposes only. This evaluation factor represents the spread between the difference of the two reference prices and the 12-month averages of both market price indicators.

Prices based on this escalator will change daily based on the published price for that day and use the last available daily price on days a price is not published.

EAST/GULF/INLAND/

OFFSHORE JP5/JP8/JAA

ARGUS US

PRODUCTS

JET KERO 54

COLONIAL

PIPELINE

HOUSTON $1.035330

The reference price shall be determined as follows: 100% Average of the Low and High Houston - Colonial Pipeline

NOTE: Offers based on this Jet Kero 54 Colonial Pipeline market price indicator will be subject to a positive factor of $0.002101 evaluation purposes only. This evaluation factor represents the spread between the difference of the two reference prices and the 12-month averages of both market price indicators.

Prices based on this escalator will change on Tuesdays based on the prior week average. The simple average of the daily average highs and lows of the prices effective Monday through Friday (excluding any days prices are not published) shall be the adjusting market price effective for the following Tuesday through Monday.

EAST/GULF/INLAND/

OFFSHORE JP5/JP8/JAA

ARGUS US

PRODUCTS

JET KERO 54

COLONIAL

PIPELINE

HOUSTON $0.998240

The reference price shall be determined as follows: 100% Average of the Low and High Houston - Colonial Pipeline

NOTE: Offers based on this Jet Kero 54 Colonial Pipeline market price indicator will be subject to a positive factor of $0.025913 purposes only. This evaluation factor represents the spread between the difference of the two reference prices and the 12-month averages of both market price indicators.

Adjusting contract prices using this escalator would be using a 5 day wrap (2-1-2). The pricing would be the average of the 2 days prior to the lifting date, the day of, and 2 days after the lifting date.

EAST/GULF/INLAND/

PLATT’S

OILGRAM

PRICE REPORT

JET KERO NEW

YORK HARBOR

BARGE

NEW YORK

HARBOR

$1.094040

The reference price shall be determined as follows: 100% Average of the Low and High NYHB

NOTE: Offers based on the Jet Kero NYHB market price indicator will be subject to a positive factor of $0.010378 for evaluation purposes only. This evaluation factor represents the spread between the difference of the two reference prices and the 12-month averages of both market price indicators.

Prices based on this escalator will change on Tuesdays based on the prior week average. The simple average of the daily average highs and lows of the prices effective Monday through Friday (excluding any days prices are not published) shall be the adjusting market price effective for the following Tuesday through Monday.

EAST/GULF/INLAND/

OFFSHORE JP5/JP8/JAA

PLATT’S

OILGRAM

PRICE REPORT

JET KERO GROUP 3

SPOT

GROUP 3 $1.032080

The reference price shall be determined as follows: 100% Average of the Low and High Group 3

NOTE: Offers based on the Jet Kero Group 3 Spot market price indicator will be subject to a positive factor of $0.050904 for evaluation purposes only. This evaluation factor represents the spread between the difference of the two reference prices and the 12-month averages of both market price indicators.

Prices based on this escalator will change on Tuesdays based on the prior week average. The simple average of the daily average highs and lows of the prices effective Monday through Friday (excluding any days prices are not published) shall be the adjusting market price effective for the following Tuesday through Monday.

EAST/GULF/INLAND/

OFFSHORE JP5/JP8/JAA

ARGUS

PRODUCTS

JET KERO NEW

YORK HARBOR

BARGE

NEW YORK

HARBOR

$1.086310

The reference price shall be determined as follows: 100% Average of the Low and High NYHB

NOTE: Offers based on this Jet Kero NYHB market price indicator will be subject to a positive factor of $0.015872 for evaluation purposes only. This evaluation factor represents the spread between the difference of the two reference prices and the 12-month averages of both market price indicators.

Prices based on this escalator will change on Tuesdays based on the prior week average. The simple average of the daily average highs and lows of the prices effective Monday through Friday (excluding any days prices are not published) shall be the adjusting market price effective for the following Tuesday through Monday.

EAST/GULF/INLAND/

OFFSHORE JP5/JP8/JAA

ARGUS

PRODUCTS

JET KERO NEW

YORK HARBOR

BARGE

NEW YORK

HARBOR

$1.039490

The reference price shall be determined as follows: 100% Average of the Low and High NYHB

NOTE: Offers based on this Jet Kero NYHB market price indicator will be subject to a positive factor of $0.048791 for evaluation purposes only. This evaluation factor represents the spread between the difference of the two reference prices and the 12-month averages of both market price indicators.

Adjusting contract prices using this escalator would be using a 5 day wrap (2-1-2). The pricing would be the average of the 2 days prior

EAST/GULF/INLAND

PLATT’S

OILGRAM

PRICE REPORT

JET KERO BUCKEYE

PIPELINE

NEW JERSEY

$1.094040

The reference price shall be determined as follows: 100% Average of the Low and High New Jersey – Buckeye Pipeline

Note: Offers based on the Jet Kero Buckeye Pipeline market price indicator will be subject to a positive factor of $0.010417 for evaluation purposes only. This evaluation factor represents the spread between the difference of the two reference prices and the 12-month averages of both market price indicators.

Prices based on this escalator will change on Tuesdays based on the prior week average. The simple average of the daily average highs and lows of the prices effective Monday through Friday (excluding any days prices are not published) shall be the adjusting market price effective for the following Tuesday through Monday.

EAST/GULF/INLAND

OFFSHORE JP5/JP8/JAA

PLATT’S

OILGRAM

PRICE REPORT

JET KERO 54

WATERBORNE

USGC $1.056760

The reference price shall be determined as follows: 100% Average of the Low and High US Gulf Coast

Note: Offers based on this Jet Kero 54 US Gulf Coast Waterborne market price indicator will be subject to a factor of $0.00 for evaluation purposes only. This evaluation factor represents the spread between the difference of the two reference prices and the 12-month averages of both market price indicators.

Prices based on this escalator will change on Tuesdays based on the prior week average. The simple average of the daily average highs and lows of the prices effective Monday through Friday (excluding any days prices are not published) shall be the adjusting market price effective for the following Tuesday through Monday.

PLATT’S

OILGRAM

PRICE REPORT

JET KERO 54

WATERBORNE

USGC $1.003500

The reference price shall be determined as follows: 100% Average of the Low and High US Gulf Coast

Note: Offers based on this Jet Kero 54 US Gulf Coast Waterborne market price indicator will be subject to a positive factor of $0.044156 for evaluation purposes only. This evaluation factor represents the spread between the difference of the two reference prices and the 12-month averages of both market price indicators.

Prices based on this escalator will change daily based on a 3-day wrap average (last published price prior to the lift date, published price on the lift date, and first published price following the lift date). On dates when a price is not published, the escalator will remain unchanged from the prior day.

PLATT’S

OILGRAM

PRICE REPORT

JET KERO ASIA

SINGAPORE

$1.132571

The reference price shall be determined as follows: 100% Average of the Low and High Asia Singapore

Note: Offers based on the Jet Kero Asia Singapore market price indicator will be subject to a negative factor of $-0.076310 for evaluation purposes only. This evaluation factor represents the spread between the difference of the two reference prices and the 12-month averages of both market price indicators.

Prices based on this escalator will change on Tuesdays based on the prior week average. The simple average of the daily average highs and lows of the prices effective Monday through Friday (excluding any days prices are not published) shall be the adjusting market price

PLATT’S

OILGRAM

PRICE REPORT

JET KERO 54

PIPELINE

CHICAGO $1.075640

The reference price shall be determined as follows: 100% Average of the Low and High US Gulf Coast

Note: Offers based on the Jet Kero FOB Chicago Pipeline market price indicator will be subject to a positive factor of $0.081462 for evaluation purposes only. This evaluation factor represents the spread between the difference of the two reference prices and the 12-month averages of both market price indicators.

Prices based on this escalator will change on Tuesdays based on the prior week average. The simple average of the daily average highs and lows of the prices effective Monday through Friday (excluding any days prices are not published) shall be the adjusting market price effective for the following Tuesday through Monday.

EAST/GULF /

OFFSHORE F76

PLATT’S

OILGRAM

PRICE REPORT

GASOIL NO.2

PIPELINE

U.S. GULF COAST $0.927080

The reference price shall be determined as follows: 100% Average of the Low and High U.S. Gulf Coast

Prices based on this escalator will change on Tuesdays based on the prior week average. The simple average of the daily average highs and lows of the prices effective Monday through Friday (excluding any days prices are not published) shall be the adjusting market price

PLATT’S

OILGRAM

PRICE REPORT

ULSD

PIPELINE

U.S. GULF COAST $1.084080

The reference price shall be determined as follows: 100% Average of the Low and High U.S. Gulf Coast.

NOTE: Offers based on this ULSD Pipeline market price indicator will be subject to a negative factor of $-0.033596 for evaluation purposes only. This evaluation factor represents the spread between the difference of the two reference prices and the 12-month averages of both market price indicators.

Prices based on this escalator will change on Tuesdays based on the prior week average. The simple average of the daily average highs and lows of the prices effective Monday through Friday (excluding any days prices are not published) shall be the adjusting market price

PLATT’S

OILGRAM

PRICE REPORT

ULSD

PIPELINE

U.S. GULF COAST $1.049880

The reference price shall be determined as follows: 100% Average of the Low and High U.S. Gulf Coast.

NOTE: Offers based on this ULSD Pipeline market price indicator will be subject to a negative factor of $-0.013482 for evaluation purposes only. This evaluation factor represents the spread between the difference of the two reference prices and the 12-month averages of both market price indicators.

Adjusting contract prices using this escalator would be using a 5 day wrap (2-1-2). The pricing would be the average of the 2 days prior

ARGUS US

PRODUCTS

ULS Diesel 62 10 ppm Colonial PIPELINE

HOUSTON $1.076350

The reference price shall be determined as follows: 100% Average of the Low and High Colonial

NOTE: Offers based on the ULS Diesel 62 10 ppm Colonial Pipeline market price indicator will be subject to a negative factor of $-0.027297 for evaluation purposes only. This evaluation factor represents the spread between the difference of the two reference prices and the 12-month averages of both market price indicators.

Prices based on this escalator will change on Tuesdays based on the prior week average. The simple average of the daily average highs and lows of the prices effective Monday through Friday (excluding any days prices are not published) shall be the adjusting market price

PLATTS

OILGRAM

PRICE REPORT

ULSD No2 CARB

DIESEL PIPELINE

LOS ANGELES $1.201640

The reference price shall be determined as follows: 100% Average of the Low and High Colonial

NOTE: Offers based on the ULSD No2 CARB Diesel Pipeline market price indicator will be subject to a negative factor of $-0.064423 for evaluation purposes only. This evaluation factor represents the spread between the difference of the two reference prices and the 12-month averages of both market price indicators.

Prices based on this escalator will change on Tuesdays based on the prior week average. The simple average of the daily average highs and lows of the prices effective Monday through Friday (excluding any days prices are not published) shall be the adjusting market price effective for the following Tuesday through Monday.

EAST/GULF /

OFFSHORE F76

ARGUS

PRODUCTS

ULSD NEW YORK

HARBOR BARGE

NEW YORK $1.152260

The reference price shall be determined as follows: 100% Average of the Low and High NYHB

NOTE: Offers based on the ULSD NYHB market price indicator will be subject to a negative factor of $-0.049954 for evaluation purposes only. This evaluation factor represents the spread between the difference of the two reference prices and the 12-month averages of both market price indicators.

Prices based on this escalator will change on Tuesdays based on the prior week average. The simple average of the daily average highs and lows of the prices effective Monday through Friday (excluding any days prices are not published) shall be the adjusting market price

The following note provides an explanation on how DLA Energy uses and calculates evaluation factors. The note is applicable to the entire provision:

DLA-Energy chooses a "default" or "recommended" escalator for each product based on which published price we believe will most accurately reflect price movements for that product in the specified location. Uncommon escalators are any other escalators being proposed as the basis for economic price adjustments besides the "default" escalator. Offers based on uncommon escalators receive adjustment factors in order to account for the difference in volatility between the uncommon escalator and the default escalator. Applying the adjustment factor to uncommon escalators allow us to evaluate offers based on the relationship the uncommon escalator and the default escalator for a 12 month period, as opposed to the difference between the escalators on a single day (the base reference date). The problem with only comparing escalators on a single date is there may be something causing a market abnormality on that date, and using a full 12 month average for the comparison allows us to see the "normal" relationship between the two escalators. The adjustment factor is calculated by finding the difference between each price on the Base Reference Date and that price's 12 month average. Then, the difference between the uncommon escalator's BRP and 12 month average is subtracted from the difference between the "default" escalator's BRP and 12 month average to find the adjustment factor for the uncommon escalator. That value is then applied to the offer price of the offer using the uncommon escalator. Offers based on "preferred" or "default" escalators do not receive an adjustment factor.