BEM_Overview_-_WWEC_WP.pptx.pdf

DEFENSE LOGISTICS AGENCY

AMERICA S COMBAT LOGISTICS SUPPORT AGENCY

WARFIGHTER FIRST

Bulk Bid Evaluation Model

(BEM)

Matthew Shuster May 2019

WARFIGHTER FIRST

Bulk Fuels Business Model

Manage petroleum products in very large volumes

Fewer contracts with large dollar values

Estimated quantity with high minimum lift guarantee (75%)

Awards on FOB Origin and FOB Destination Basis

Extensive use of commercial distribution systems Distribution may be direct to demand point or through intermediate

Defense Fuel Supply Points (DFSPs) Socio-Economic considerations

Small Business Set-asides (Price Matching)

Hubzone Premium Program

8(a) reservations

Bid Evaluation Model (BEM)

Mixed-integer linear optimization program used to find the minimum laid down cost for the entire procurement.

Laid Down Price includes:

Offered product price

All transportation costs

All additive costs

All intermediate DFSP distribution costs (fixed and variable costs)

– Excess throughput charges

Offer specific evaluation factors –Base Reference Price evaluation factors

Offer Conditions

Offer Conditions

Offer Conditions

Optional

BEM evaluates complex offers

– Tiered pricing

– Block pricing

– Volume restrictions (Minimums and Maximums)

– Multiple load capabilities (modes of transportation)

– Additive injection capabilities

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

Conflicting Conditions

– Conditional statements must not conflict with each other (i.e.: Minimum award by Tanker is 5 million and 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 $3.06/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: $21,310,000 $870K 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 & LCRPRICE REDUCTION ROUND

BEM MCBEW

Laid Down Cost Report (LCR)

SEQUENCE OF BEM RUNS

Final Forced Run

Small Business Set-Aside Run

HUBZone Run

8(A) Run

Base Run

Post Award

Once the solicitation is awarded, award data will be published on Federal Business Opportunities website at https://www.fbo.gov/

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

Contact Information

For questions concerning the functionality of BEM/OET, please contact:

Matthew Shuster Matthew.Shuster@dla.mil Work: (571) 767-9250

WARFIGHTER FIRST 12

QUESTIONS?