5-_IEGC_Bid_Evaluation_Model.pdf

DEFENSE LOGISTICS AGENCY

AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY

DEFENSE LOGISTICS AGENCY

AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY

WARFIGHTER FIRSTWARFIGHTER FIRST

DLA Energy Bulk Petroleum Products Inland/East/Gulf Coast/Offshore (IEGC)

SPE602-18-R-0717

Bid Evaluation Model (BEM) IEGC Pre‐Proposal Conference

Lorena Montenegro Phone: 571‐767‐9496

Email: Lorena.Montenegro@dla.mil

WARFIGHTER FIRSTWARFIGHTER FIRST

Bid Evaluation Model (BEM)

The Bulk BEM is a mixed-integer linear optimization program used to find the minimum laid down cost for the entire requirements of a purchase program.

Awards take into account offer pricing, transportation to requirement location, and other cost factors

Model calculates costs of all possible ways to connect an offer to a requirement:

-All offer lines considered individually (S1, S2, etc.)

-All possible transportation modes considered -Applicable node/arc combinations up to six iterations to connect offers and requirements -All offer conditions (i.e. “either/or,” offer maximums/minimums) -Additive possibilities

Each “leg” of a route is monetized and added to the offer (six legs) to come up with the laid down price

Other Costs include:

-Intermediate throughput costs -Base Reference Price (BRP) adjustment factors

Components of Laid Down Price

Laid Down Price includes:

The offered product price

All transportation costs

All additive costs

All intermediate DFSP distribution costs (fixed and variable costs) –Excess throughput charges –Unique costs for specific receipt modes

Offer specific evaluation factors –BRP Adjustment factors

Offer Evaluations

Offer Conditions

OET provides you with the opportunity to define your offer in great detail by defining the conditions applicable to you offer

–You do NOT have to use any conditional statements –You CAN use more than one conditional statement

Supports evaluation of complex offers

– Tiered pricing

– Block pricing

– Volume restrictions (Minimums and Maximums)

– Multiple load capabilities (modes of transportation)

– Parcel size limitations

– Additive injection capabilities

– Offer conditions such as ‘Either/Or and One before Two

Conflicting Conditions

– Ensure your conditional statements do not conflict with each other (i.e.:

Stating your minimum award by Tanker is 5 million and stating your overall maximum award is 3 million)

Evaluation Example

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 @ $2.98gallon

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

Req 1 – Offer A (total cost $3.23/gal) Req 2 – Offer A (total cost $3.15/gal) Req 3 – Offer C (total cost $3.04/gal) Total cost: $22,180,000

Req 1 – Offer B (total cost $3.07/gal) Req 2 – Offer C (total cost $3.01/gal) Req 2 – Offer B (total cost $3.04/gal) Req 3 – Offer B(total cost $3.04/gal) Total cost: $21,340,000 $840K Savings Distribution Plan Generated

Evaluated on Offered Price Only: Evaluated on Laid-Down Cost:

BEM Rounds

INITIAL OFFERS /

OET ROUND 1

INTERIM OFFERS /

OET ROUND 2

IPR BEM RUN ‐ MCBEW

FINAL OFFERS /

OET ROUND 3 FPR BEM RUN – MCBEW & LCR

REVERSE AUCTION

BEM Evaluation Report

Laid Down Cost Report (LCR)

SEQUENCE OF BEM RUNS

Final Forced Run

Small Business Set-Aside Run

HUBZone Run

8(A) Run

Base Run

Contact Information

For questions specific to an offer, please contact the Contracting Officer listed on the solicitation.

For questions concerning the functionality of BEM please contact:

Toka Trau-Massey Lorena Montenegro Toka Trau-Massey@dla.mil Lorena.Montenegro@dla.mil

(571) 767-0564 (571) 767-9496