AEM_R-0701_Preproposal_Conference_Slides_Redacted.pdf

DEFENSE LOGISTICS AGENCY

AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY

WARFIGHTER FIRST

Bulk Petroleum Products Atlantic, Europe and Mediterranean

(AEM) SPE602-19-R-0701

Preproposal Conference December 4, 2018

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AGENDA

INTRODUCTIONS

PRESENTATION – PART I

• Supplier Relations Overview

• AEM Overview

• Inventory Planning Overview

• Quality Technical Overview

• Quality Assurance Overview

LUNCH

PRESENTATION – PART II

• Offer Entry Tool (OET) Overview

• Bid Evaluation Model (BEM) Overview

BREAK OUT SESSION

Source Selection Information – See FAR 2.101 & 3.104 / For Official Use Only

FOR OFFICIAL USE ONLY

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DLA ENERGY SUPPLIER

OPERATIONS OVERVIEW

Kathryn Moore Supplier Advocate

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DLA Energy Supplier Operations

AGENDA:

- Introduction

- DLA Energy Organization Overview

- DLA Energy Business Profile and Approach

- Supplier Operations Organization Overview

- Industry Engagement Objectives

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DLA Energy Organization

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Supplier Operations Organization

Bulk Petroleum Supply Chain Services Aerospace Energy

Bulk Petroleum Products Utility Services

Installation EnergyDirect Delivery Fuels

Posts, Camps & Stations (PCS) - Commercial Into Plane and Bunkers Mobility Fuels

Bulk Petroleum – Military & Commercial Specification Fuel Additives Transportation

Gov’t Owned/Contractor Operated Facilities Contractor Owned Storage Services Environmental Services

Utility Service Contracts for Privatized Systems Water/Wastewater Electric/Natural Gas

Natural Gas, Electricity, & Coal Renewable Energy/Power Purchase Agreements Energy Savings Performance Contracts

Liquid Propellants Cryogens Compressed Gases

Supply Chain Management

Management of Defense Fuel Supply Point (DFSP) Operations Inventory and Distribution Inventory Accountability Terminal Operations https://eworkplace.dla.mil/sites/c3/n286/_layouts/xlviewer.aspx?id=/sites/c3/n286/Governance%20Internal/DLA%20Energy%20-Supplier%20Ops%20Mar%2013%20Org%20Chart%20Spreadsheet.xlsx https://eworkplace.dla.mil/sites/c3/n286/_layouts/xlviewer.aspx?id=/sites/c3/n286/Governance%20Internal/DLA%20Energy%20-Supplier%20Ops%20Mar%2013%20Org%20Chart%20Spreadsheet.xlsx https://eworkplace.dla.mil/sites/c3/n286/_layouts/xlviewer.aspx?id=/sites/c3/n286/Governance Internal/DLA Energy -Supplier Ops Mar 13 Org Chart Spreadsheet.xlsx

STRATEGIC TACTICAL

Business Profile and Approach

• Focus on Long Term contracts (e.g. IDIQ and requirements)

• 70% of Spend is in Bulk Petroleum Products

• 80% of Contract Actions are in the Mobility Fuels Program

• Approximately $8B in Annual Contract Awards

FOR OFFICIAL USE ONLY

Army, $947

Navy, $2,849

Air Force, $4,911

Other DoD, $46

DHS,

$316

GSA, $32

USPS, $31

Agriculture, $20 Other, $445

Energy Customer Profile in millions of $

Bulk Products 70%

Bulk Services 4%

Ground Fuels 13%

Mobility Fuels 6%

Non-Petroleum 6%

Aerospace 1%

FY17 Spend= $8B

Mobility Fuels 79%

Ground Fuels 16%

Bulk Products 2%

Bulk Services <1%

Aerospace 2%

Non-Petroleum <1%

FY17 Contract Actions= 235,342

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DLA Industry Engagement Objectives

Focus Area I: Supplier Communication and Interaction

Focus Area II: Balancing Business Decisions and Fiduciary Responsibilities

Focus Area III: Supplier Feedback Management and Advocacy

FA IV: Drive Efficiencies and Innovation in Our Business

FA V: Assess and Mitigate Supply Chain Risk

Developing DLA-Industry Relationships Based on Mutual Understanding and Responsiveness, Enabling Better Acquisition Outcomes for the Warfighter

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Upcoming Event and Contact

Point of Contact:

Supplier Advocate Phone:

Email:

Upcoming Event:

• Worldwide Energy Conference at the Gaylord National Hotel and Convention Center, National Harbor, Maryland

• May 20-22, 2019

• Visit www.wwenergyconference.com for registration information http://www.wwenergyconference.com/

Q&A

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AEM OVERVIEW

Stephany Officer Contracting Officer

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AEM TEAM

AEM BULK PETROLEUM PRODUCTS - POINTS OF CONTACT

*Note: The Contracting Officer is the only Government representative with the authority to execute and modify contracts.

Tara Upchurch Contract Specialist

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AEM SPE602-19-R-0701

REQUIREMENTS

F76 (Fuel, Naval Distillate; 1.1B) 73,000,000 USG JA1 (Turbine Fuel, Aviation; 1.1I) 205,000,000 USG JP5 (Turbine Fuel, Aviation; 1.1D) 43,000,000 USG JP8 (Turbine Fuel, Aviation; 1.1I) 105,000,000 USG

Note: Requirements estimates are based on past consumption as received from DLA Energy Inventory & Distribution demand planning considering historical trends, and Service input on mission changes.

DELIVERY MODES

FOB Origin Tanker; FOB Origin/Destination Pipeline

Note: FOB Destination Tankers will not be evaluated

ORDERING PERIOD

Date of Award – June 30, 2020

DELIVERY PERIOD

July 1, 2019 – June 30, 2020; plus a 30-day carry-over period

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SOLICITATION

COMPETITION

Full and Open Competition No Small Business (SB) Set-asides

CONTRACT TYPE

Multiple Awards Indefinite Delivery, Indefinite Quantity (IDIQ) contracts with 75% minimum lift guarantee Fixed-Price with Economic Price Adjustment (EPA) Payment Terms: Net 15-days

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SOLICITATION SECTIONS

Section B, Supplies or Services and Prices/Costs Section C, Descriptions/Specifications/Statement of Work Section D, Packaging and Marking Section E, Inspection and Acceptance Section F, Deliveries or Performance Section G, Contract Administration Data Section H, Special Contract Requirement Section I, Contract Clauses Section J, List of Documents, Exhibits and Other Attachments Section K, Representations, Certifications, and other Statements of Offerors or

Respondents Section L, Instructions, Conditions, and Notices to Offerors or Respondents Section M, Evaluation Factors for Award

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OFFER EVALUATION

BEST VALUE SOURCE SELECTION:

Lowest Price, Technically Acceptable (LPTA)

FACTOR 1: TECHNICAL ACCEPTABILITY

A technically acceptable offers meets the Government’s supply and schedule requirements

Subfactor 1: Supplies or Services and Prices/Cost, Section B Subfactor 2: Description/Specifications/Statement of Work, Section C Subfactor 3: Inspection and Acceptance, Section E Subfactor 4: Deliveries or Performance, Section F

OFFER EVALUATION (Continued):

FACTOR 2: PRICE

DLA Energy uses a computer evaluation model, the BEM, to factor in numerous variables

Variables include proposed prices, fuel types, min/max award quantities, shipping locations, shipment mode capabilities, min/max cargo sizes, customer receipt locations, receipt mode capabilities, and conditions included in the offerors’ proposals

The BEM calculates overall distribution of fuel from offerors’ facilities to specific customer locations that represent the lowest total combination of price for product and transportation

PRICE REDUCTION ROUND PROCESS (formerly Reverse Auction Round)

After closing of negotiations and if requested, submission of final proposal revisions (FPRs), offerors may be given the opportunity to provide a further discount during the Price Reduction Round

Each Offeror will be provided their own Minimum Cost Bid Evaluation Worksheet (MCBEW) and a Laid Down Cost Report (LCR). Offerors can review these report to determine whether their current pricing is successful at any location to which they are evaluated

Offerors can then access the Offer Entry Tool to reduce their final offered price to make their proposal more competitive

Multiple Price Reduction Rounds may be conducted

After all Price Reduction Rounds, a final BEM will be run to determine the lowest laid down cost and overall bid award pattern

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PROCUREMENT PROCESS

Source Selection Information – See FAR 2.101 & 3.104 / For Official Use Only

Issue RFP Close RFP /

Initial Offers / OET Round 1

Initial Evals / Tech Report

Open Negotiations

Interim Proposal Revisions (IPR) /

OET Round 2

IPR BEM Run -

MCBEW

Close Negotiations

Final Proposal Revisions (FPR) / OET Round 3

Final Eval / Tech Report

FPR BEM RUN

– MCBEW &

LCR

Price Reduction Round Awards Post Award

Offeror Input

Contracting/Technical

KEY

Inventory Planning Overview

INVENTORY MANAGEMENT /

TECHNICAL EVALUATION

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TECHNICAL EVALUATION

Lowest Price, Technically Acceptable (LPTA)

Source Selection Evaluation Board (SSEB) Comprised of representatives from Inventory, Tankers, Transportation, Quality

Assurance, and Product Technology & Standards

Board reviews offers submitted through the Offer Evaluation Tool (OET)

Cannot over-emphasize the need to ensure the OET offer is fully completed. Missing details may result in sections being rated as Unacceptable from the SSEB.

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TECHNICAL EVALUATION (CON’T)

Evaluation Factors – Section M of Solicitation

Section B, Supplies or Services

Section C, Description/Specs/Statement of Work

Section E, Inspection and Acceptance

Section F, Deliveries or Performance

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TECHNICAL EVALUATION (CON’T)

Examples of missing data include:

Mode, Min/Max Quantities, Shipping Point

Min/Max Parcel Size, Lift Interval, Max Monthly Qty

Quality Exceptions/Waivers (if applicable)

Quality Control Plan

Tanker/Port Details (map coordinates for loading facility)

Shipping Rate in BBL/HR

Truck Loading Rack Details

Quality Technical Support

OVERVIEW

C-QAP Updates

F-76

Aviation Fuel (Jet A, JP-5, JP-8)

F-76 Fuel

Specification: MIL-DTL-16884P (Sept 2017)

QAP: C16.23 (Dec 2018)

• Flash Point Requirement Change OLD: 60oC minimum (62.5oC for multi-product pipeline) NEW: 62.5oC minimum for ALL origin offers

• F76 Traceability Sheet

F-76 Traceability Sheet

Jet A Fuel

Specification: ASTM D1655-18a

QAP: C16.08 (May 2018)

• Formatting changes

• Added environmental clause, disclaimer

JP-5 Fuel

Specification: MIL-DTL-5624W (March 2016)

QAP: C16.01 (April 2018)

• Included 30-day time frame requirement for shipping of 20mL samples to NRL (Navy Research Lab)

• Grammatical/formatting changes

JP-8 Fuel

Specification: MIL-DTL-83133K (July 2018)

QAP: C16.64-1 (Oct 2018)

• Formatting Changes

• Added environmental clause

ASTM D1319 Issue

ASTM D1319: Aromatics Test Affects aviation fuel (Jet A, JP5, JP8)

Dye Shortage Can not certify aviation fuel to ASTM

D1655, DEF-STAN 91-091, MIL-SPEC

Do NOT use lot numbers higher than

3000000975 Requirement will NOT be waived

ASTM D1319 Issue

Alternative Method(s) D6379 Found in D1655-18a, MIL-DTL-5624W, MIL-DTL-83133K

ASTM Ballot

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BIOFUELS

Supports the U.S. Navy Great Green Fleet Initiative

MILSPEC F-76/JP5

Max 50% HEFA and FT blends, Max 10% SIP blends

Jet A-1 Max 50% HEFA and FT blends, Max 10% SIP blends

Biofuel offers are encouraged; however, it should be noted that Commodity Credit Corporation (CCC) funds are not available under this procurement. Biofuel offers must be competitive with standard petroleum products.

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CONTACT INFORMATION

Quality Technical Support

QUALITY ASSURANCE PROVISIONS (QAPs)

Pursuant to FAR 52.212-1, the offeror must demonstrate an understanding of the quality assurance requirements in Quality Assurance Provisions (QAPs) E1

CONTRACTOR INSPECTION RESPONSIBILITIES (DLA ENERGY SEP 2013)

and E1.21 CONTRACTOR INSPECTION RESPONSIBLITIES (JET A/A- 1)(BULK/PC&S)(DLA ENERGY FEB 2014) of the solicitation.

Accordingly, offerors must indicate one of the following and submit the required documentation for review with their initial offer:

A copy of the dated coversheet and table of contents of an existing Quality Control Plan (QCP), no more than 24 months old.

An outline, not to exceed two pages in length, of a proposed QCP describing the offeror’s current inspection system and quality assurance procedures, with references to the corresponding requirements in E1 and/or E1.21.

DLA Energy Quality Assurance Provisions (QAPs) E1 Contractor Inspection Responsibilities

This contract provision applies to:

1. All aviation fuel, lubricating oil, and additive shipments

2. All Bulk and Posts, Camps, and Stations non-aviation fuel shipments via pipeline or waterborne transport.

Quality Control Plan:

1. Receiving, Blending and Compounding

2. Sampling

3. Testing

4. Calibration

5. Storage and Handling

6. Loading and Shipping

7. Records and Reports

8. Corrective Action

DLA Energy Quality Assurance Provisions (QAPs) E1.21

This contract provision applies to:

1. Jet A / Jet A-1, with or without additives, shipped into fungible pipeline systems or transported by Tank Truck/ Trailer and Rail Car.

Quality Control Plan – The contractor shall, as a minimum, have a Company Plan in effect that supports all aviation fuel produced for this contracting period. The following minimum elements are required in the Company Plan:

1. Full Specification Testing to include Certificate of Quality (COQ)

2. Procedures for injecting additives

3. Inspection Procedures

4. Aviation fuel via P/L shipments must meet P/L Company spec

5. Documentation (COQ, BOL)

E QUALITY ASSURANCE PROVISIONS (QAPs)

Other “E” QAPs:

E12 Point of Acceptance – defines where Acceptance takes place.

E21.01 Point of Inspection – where Gov’t inspection takes place. Normally inspection occurs at Origin.

E22 Inspection Offices – Which Region covers which OCONUS locations.

E35 – Non Conforming Supplies – Defines Deviations, Extraordinary Situations and Waivers. Request must be submitted to Contracting.

E40.01 Material Inspection and Receiving Report (MIRR) for data entry into WAWF/iRAPT – Marine, Pipeline, Tank Truck, Rail Car and Intermodal Container shipments.

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LUNCH BREAK

ENJOY

HOULIHAN’S!

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OFFER ENTRY TOOL (OET)

Toka Trau-Ma Program Analyst

OFFER ENTRY TOOL (OET)

Bulk OET An electronic tool for use in submitting offers under DLA Energy Bulk

Fuels solicitations Replaces some or all of the hard copy offer submission package URL: https://offerwizard.dla.mil/bulkoet/bulkoet.html

Bulk vs Direct Delivery OET Different systems

Is OET required?

Solicitation will state if OET is mandatory Offers submitted via OET must still comply with solicitation closing date/time https://offerwizard.dla.mil/bulkoet/bulkoet.html

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SOLICITATION/OET SEQUENCE

Solicitation posted to Federal Business Opportunities (https://www.fbo.gov/)

Solicitation published to OET with Open/Close date to match solicitation Vendors that have selected to receive email notification on specific Bulk programs will automatically be notified by e-mail of OET postings

Vendor inputs/submits offer in OET

After OET round closes, DLA imports offers directly to Bid Evaluation Model (BEM) for review/evaluation https://www.fbo.gov/

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OET ROUNDS EXAMPLE

INITIAL OFFERS /

OET ROUND 1

OPEN NEGOTIATIONS

INTERIM OFFERS /

OET ROUND 2

CLOSE NEGOTIATIONS

FINAL OFFERS /

OET ROUND 3REVERSE AUCTION

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OET OFFER SEQUENCE

Initial Required for all OET solicitations An offer must be submitted to be eligible for later rounds

Interim Use at the Contracting Officer’s discretion There may be more than one interim round Participation optional

- If no offer submitted on an interim round, previously offered data is retained.

Final Proposal Revision Last standard round

Reverse Auction Use at the Contracting Officer’s discretion There may be multiple rounds Only price can be changed

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MINIMUM OFFER REQUIREMENT

The following information is the minimum that must be included to successfully submit an offer in OET

At least one shipping point must be identified in the Shipping Point Physical Abilities Table

At least one FOB Origin or FOB Destination Bid

- Must include shipping point, product, max quantity, mode, product price, additive costs (if any)

Electronically sign SF1449

Complete Offer Submission Data (OSP) portion of OET package

OBTAINING OET ACCESS

1. Obtain a CAGE CODE for your company

CAGE code assigned when registration in System for Award Management (SAM) is complete https://www.sam.gov/ OET account is linked to your CAGE code(s) One OET account can have multiple CAGE codes Multiple Users per CAGE code allowed

2. Create an account in the Account Management And Provisioning System (AMPS) to apply for OET access https://amps.dla.mil/oim https://www.sam.gov/ https://amps.dla.mil/oim

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3. Log into your AMPS account to request the OET role Click on ‘Energy Applications’ on the Browse Roles by Application Tab Select ‘Energy OET’ Select ‘Energy OET Prod – Bulk Vendor Role OET -105’ Complete all information and submit request

- During initial account request list all CAGE codes you will be using to submit offers in the CAGE Code for Bulk Fuels attribute field

4. Username and password will be sent to you via email User ID and Password for AMPS are NOT the same as for BULK OET

OBTAINING OET ACCESS

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INITIAL LOG IN TO OET

OET URL

https://offerwizard.dla.mil/epst_oet/oet.htm

Change Password Minimum 15 characters At least 1 Upper case, 1 lower case, 1 number, 1 special character

Update ‘My Account’ information Company Name for SF1449 and BEM E-mail address for notifications and password resets Company size status Buy Selection used to filter solicitations you will see https://offerwizard.dla.mil/epst_oet/oet.htm

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OET SOLICITATION MENU

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BEST BUSINESS PRACTICES

Access Ensure that vendor allows enough time to gain access. Access will have to go to multiple levels of approvals Ensure that access to OET account is active Do not share OET access, each user should have his/own account Only the Account holder can submit for reset of account/password One account can have multiple CAGE codes

Account Settings To receive notification of published solicitations from the OET, ensure specific buy program(s) are selected Ensure email listed under Account Settings is correct If you are not receiving emails, check your Junk mail and internal firewall setting

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BEST BUSINESS PRACTICES

Submitting Offers

Entry to the OET is real time and auto-save Ensure any conditions entered does not conflict with each other Must select “Submit Offer Package” to submit offer To check if your offer has been entered in the OET, click on the Bid

Package Report. This report will reflect what the vendor entered in the OET real time. If the offer data has been submitted, the vendor will receive an email. There will also be a time and date stamp next to the Submitted: field in the header of the report.

Once an offer is submitted and the vendor goes back to the offer screen, the vendor will receive a message if he/she would like to view or edit the offer. If the vendor selects edit and make changes and does not submit the offer, the last submitted offer will be evaluated.

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GETTING HELP WITH OET

OET User Manual Available on the OET main page https://offerwizard.dla.mil/bulkoet/bulkoet.html

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

For questions concerning the functionality of OET, please contact:

https://offerwizard.dla.mil/bulkoet/bulkoet.html

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Bid Evaluation Model (BEM)

Toka Trau-Massey Program Analyst

(571) 767- 0564

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.

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 mode

Offer specific evaluation factors –Base Reference Price Adjustment factors

Offer Conditions

OFFER CONDITIONS

Offer Conditions

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

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BREAK OUT SESSIONS

MEET IN THE

WOODLAWN ROOM

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