Attachment_1_Amen_0002.pdf

Amendment 0002, Attachment 1

SPE600-17-R-0710

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 the PLATTS JET KERO 54 COAST PIPELINE escalator to the current solicitation:

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

November 15, 2016 (excludes all taxes) (see note(s) below)

ROCKY MOUNTAIN PLATT’S OILGRAM

PRICE REPORT

JET KERO 54

PIPELINE

U.S. GULF

COAST

$1.315520

JP8/JAA

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

Note: Adjusting contract prices using this escalator will be firm for weekly periods and is defined as the average of the applicable daily spot assessment quotations effective for the prior week. 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 adjusted contract price effective for the following

Tuesday through Monday.

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

$1.318900

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 $-0.000722 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.

Amendment 0002, Attachment 1

SPE600-17-R-0710

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 between 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.