SPE602-20-R-0704-Pre-Proposal Conference Slides.pdf

DEFENSE LOGISTICS AGENCY

THE NATION’S COMBAT LOGISTICS SUPPORT AGENCY

DEFENSE LOGISTICS AGENCY

THE NATION’S COMBAT LOGISTICS SUPPORT AGENCY

UNCLASSIFIED // FOR OFFICIAL USE ONLY

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Callie Ettleson Lake, Division Chief January 22, 2020

Rocky Mountain West Pre-Proposal Conference

DEFENSE LOGISTICS AGENCY

THE NATION’S COMBAT LOGISTICS SUPPORT AGENCY

UNCLASSIFIED // FOR OFFICIAL USE ONLY

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Gabriella Earhardt Director, Supplier Operations

January 22, 2020

DEFENSE LOGISTICS AGENCY

THE NATION’S COMBAT LOGISTICS SUPPORT AGENCY

UNCLASSIFIED // FOR OFFICIAL USE ONLY

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Susan Lowe Supplier Advocate January 22, 2020

DEFENSE LOGISTICS AGENCY

THE NATION’S COMBAT LOGISTICS SUPPORT AGENCY

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James Clough, Contracting Officer January 22, 2020

RMW2020

Program and

Solicitation Overview

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UNCLASSIFIED // FOR OFFICIAL USE ONLY

Program Description

• Program: Annual bulk petroleum products procurement for the Rocky Mountain/West Coast/

Offshore Program

• Locations: Sites in Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming

• Requirements:

- Turbine Fuel, Aviation (JP8) 9130-01-031-5816, PP 2.2b: 2,900,000 USG

- Turbine Fuel, Aviation (JP5) 9130-00-273-2379, PP 2.2d: 128,550,000 USG

- Turbine Fuel, Aviation (JAA) 9130-00-359-2026, PP 2.2b: 560,832,700 USG

- Turbine Fuel, Aviation (JA1) 9130-00-753-5026, PP 2.2b: 65,250,000 USG

- Fuel, Naval Distillate (F76) 9140-00-273-2377, PP 2.5b: 102,200,000 USG

• Methods of delivery:

- Tanker, Barge, Tank Truck and/or Pipeline

- FOB Origin and Destination

- Destination tankers are NOT accepted

Program Description

• Delivery Period:

- October 1, 2020 through September 30, 2021 plus 30-day carry over period

- I209.09 EXTENSION PROVISIONS (DLA ENERGY JAN 2012)

• Contract Type:

- Indefinite Delivery, Indefinite Quantity (IDIQ) contracts with 75% minimum guarantee

- Fixed-Price with Economic Price Adjustment (EPA)

- Multiple awards

• Competition:

- Full and open w/ partial small business set-asides (10.22%)

Solicitation Overview

• Solicitation:

- SPE602-20-R-0704

- Now on Beta SAM, not FedBizOpps

- Negotiated Request for Proposal (RFP)

- Intend to award with discussions

- System for Award Management (SAM) registration required at https://www.sam.gov/portal/public/SAM

• Timeline and Key Dates

- Solicitation was posted to Beta SAM on January 10, 2020

- Deadline for receipt of offers is February 12, 2020

- Awards expected to be made on or around August 1, 2020

- Delivery period will begin October 1, 2020

Solicitation Overview

• What To Submit

- SF-1449

- Offeror Submission Package (OSP)

° Applicable fill-in clauses/provisions ° Quality Control Plan (or outline) ° Representations and Certifications (Section K) ° F-76 Traceability Page ° Supply Commitment Letter ° Small Business Subcontracting Plan (Large Businesses Only)

• Offer submittal through the Offer Entry Tool (OET)

- Ensure your company has access to the OET system

- STRONGLY RECOMMENDED to enter and test the system long before submitting your offer

- You do not want to be in a position where you are unable to submit on the deadline, if your account is locked out, your are having systems issues or another unforeseen issue arises!

Solicitation Overview

• 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

Technical Evaluation Criteria Offer Evaluation:

• Lowest Price, Technically Acceptable source selection method

• Section M, FAR 52.212-2 Evaluation – Commercial Items (OCT 2014)

EVALUATION CRITERIA:

• FACTOR 1/TECHNICAL ACCEPTABILITY: Offer conforms to material solicitation requirements in the following subfactors:

(1) Supplies or services and prices/cost, Section B:

(i) Offer meets all schedule requirements in Section B, (ii) Offered line items meet the delivery requirements of the schedule for additives required, (iii) Offered line items meets the delivery requirements of the schedule for mode and FOB point, (iv) Offer line item meets the required minimum and maximum quantity of the schedule

(2) Description/specifications/statement of work, Section C:

(i) Offer meets all specification requirements outlined in Section C provisions, (ii) For F76 offers, offer includes a completed and signed Traceability form for F76 fuel offers IAW Provision C16.23 FUEL, NAVAL DISTILLATE

Technical Evaluation Criteria EVALUATION CRITERIA (Cont’d):

(3) Inspection and Acceptance, Section E:

(i) Offer meets all specification requirements outlined in Section E provisions, (ii) Offeror certifies that it has a Quality Control Plan (QCP) on file with DLA Energy that is no more than 24 months old or provides an outline, not to exceed two pages in length of a proposed QCP describing the offeror’s current inspecition system and quality assurance procedures, with references to the corresponding requirements in provisions E1 and/or E1.21. (iii) For F76 offers, offer includes a separate and distinct

QCP.

(4) Deliveries or performance, Section F:

(i) Offer meets all specification requirements outlined in Section F provisions, (ii) Offer includes completed information under Sources of Supply for all products and shipping points, (iii) Offer includes completed information under Parcel Shipping Sizes and Daily Capacity for all products, modes and shipping points offered, (iv) Offer includes completed information under Tanker and Barge Loading Facility Data (if offering via Origin Barge/Tanker mode), (v) Offer includes completed information under Port Restrictions (if offering via Origin Barge/Tanker mode)

Technical Evaluation Criteria

• FACTOR 2/PRICE: DLA Energy uses a computer evaluation model, the Bid Evaluation Model (BEM), to factor in numerous variables. These variables include the offerors’ offered prices, fuel types and quantities, minimum and maximum award quantities, offered locations, shipment mode capabilities, minimum and maximum cargo sizes, customer receipt locations, receipt mode capabilities, and any other conditions included in the offerors’ proposals. The BEM calculates the overall distribution of fuel from offerors’ facilities to specific customer locations that is the lowest total combination of price for product and transportation.

Escalators

• B19.33 ECONOMIC PRICE ADJUSTMENT

- Table lists available escalators to pick from. Detailed descriptions of the formula and calculations are listed.

- Offerors are required to pick escalators based on their shipping point.

- Rocky Mountain Area: Colorado, Idaho, Montana, New Mexico, Texas, Utah, and Wyoming

- West Coast Area: Alaska, Arizona, California, Hawaii, Nevada, Oregon and Washington

Price Reduction Rounds

• 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 tools 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 rounds may be conducted

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

Responsibility Determination

• FAR 9.103: Purchases shall be made from, and contracts shall be awarded to, responsible prospective contractors only

• To be determined responsible, a prospective contractor must:

– meet the responsibility criteria prescribed in FAR 9.104

– comply with requirements in DLA Energy Clause L704, Evidence of Responsibility; DLA

Energy Clause L2.09, Evidence of Responsibility (Operating Criteria)

DEFENSE LOGISTICS AGENCY

THE NATION’S COMBAT LOGISTICS SUPPORT AGENCY

UNCLASSIFIED // FOR OFFICIAL USE ONLY

WARFIGHTER FIRSTWARFIGHTER FIRST

Eulanda Whiteside, RMWC Program Manager

January 22, 2020

RMWC Pre-Proposal Conference

Inventory Management Evaluation

• Eulanda Whiteside

– RMWC Program Manager

• Jessica Evans

– Chief, Inventory Planning Branch

Technical Evaluation

• Lowest Price, Technically Acceptable (LPTA)

– Source Selection Evaluation Board (SSEB)

• Comprised of representatives from Inventory Planning, Tanker Operations, Transportation, Quality Assurance, and Product Technology & Standards.

• SSEB reviews offers submitted through the Offer Evaluation Tool (OET)

• Missing details may result in an unacceptable rating for corresponding bid lines.

Technical Evaluation

• Solicitation Products - Quantities:

– Turbine Fuel, Aviation (JAA) – 560,832,700 USG

– Turbine Fuel, Aviation (JA1) – 65,250,000 USG

– Turbine Fuel, Aviation (JP8) – 2,900,000 USG

– Turbine Fuel, Aviation (JP5) – 128,550,000 USG

– Fuel, Navel Distillate (F76) – 102,200,000 USG

Technical Evaluation

• Examples of Missing Data:

– Mode, Min/Max Quantities, Shipping Point

– Min/Max Parcel Size, Lift Interval, Max Monthly Quantity

– Quality Exceptions/Waivers (if applicable)

– Quality Control Plan (QCP)

– Tanker/Port Details

– Shipping Rate in Barrels Per Hour (BPH)

– Map Coordinates

– Truck Loading Rack Details

• Mode, Min/Max Quantities, Shipping Point

• Origin Offer Sheet

Technical Evaluation

• Destination Offer Sheet

Seq Set ID Product Shipping Point Max Qty (USG) Min Qty (USG) Mode(s

Price W/O Additives

(USD)

Total

Additive Cost

% Bio-Fuel Included in Offer Qty**

EPA

Escalator

Total Offer Price

S1 A F76 XXXXX 50,000,000 2,500,000 K *.****** *.****** 0 *.****** *.******

Seq Set ID Product Shipping Point To Location Line Item Max Qty

(USG)

Min Qty (USG) Mode(s)

Price W/O Additives

(USD)

Total Additive

Cost

% Bio-Fuel Included in Offer Qty**

EPA

Escalator

Total Offer Price

S2 A JA1 XXXXX XXXXX 00002 50,000,000 2,500,000 P *.****** *.****** 0 *.****** *.******

• Minimum/Maximum Parcel Size and Lift Interval

Technical Evaluation

• Maximum Monthly Quantity

Product Mode Shipping Point Minimum Qty (BBLS) Maximum Qty (BBLS)

No. of Days Between Each Lift / Delivery

F76 XXXXX 74,630 99,206 30

Product Source Of Supply Maximum Monthly Production (USG)

F76 XXXXX 10,000,000

• Tanker/Port Details

Technical Evaluation

• Shipping Rate in Barrels Per Hour (BPH)

Shipping Point Mode Cargo Capacity

(BBLS)

Mean Low Water

Depth (FT) LOA (FT) Draft (FT)

XXXXX TANKER 450,000 38 FT 300 FT 240 FT

Shipping Point Mode Ballast Capacity

(BBLS)

Max Loading Rate (Pump Rate

BPH)

XXXXX TANKER 30,900 6,000

• Map Coordinates (Pier Side)

00°00’00"N 00°00’00“E

Technical Evaluation

• Truck Loading Rack Details

Product / Mode Shipping Point Days of Week

Terminal Open

Hours Each Day Terminal

Open No. Of Racks

Max Loads Per Normal Work

Day*

F76 / Truck XXXXX 7 8am-4pm 2 2

Questions

DEFENSE LOGISTICS AGENCY

THE NATION’S COMBAT LOGISTICS SUPPORT AGENCY

UNCLASSIFIED // FOR OFFICIAL USE ONLY

WARFIGHTER FIRSTWARFIGHTER FIRST

Philip Chang Chemist

Specifications & Quality Assurance Provisions

(QAP)

Product Codes Latest Specifications Latest C‐QAPs Notes JAA (F24) D1655‐19a QAP C16.08‐1 (May

2018)

JA1 D1655‐19a QAP C16.09 (Oct 2017) JP8 MIL‐DTL‐83133K (2018) QAP C16.64‐1 (Oct

2018)

JP5 MIL‐DTL‐5624W (2016) QAP C16.01 (Apr 2018) F76 MIL‐DTL‐16884P (2017) QAP C16.23 (Dec 2018) Traceability Page shall be submitted with

OSP.

• JP-5 and QAP C16.01

• JP-8 and QAP C16.64-1

– Flash point of 62.5C is required at the custody transfer for delivery in Ca, Or and Wa.

– Flash point of 62.5C is required for Government acceptance at origin and subsequent shipment vis a multiproduct pipeline.

– JP5 delivered to Kodiak Is. Alaska: the Max TAN shall be 0.020 mg KOH/g.

– 20ml of each batch sample need to be delivered to NRL.

Specifications & Quality Assurance Provisions

(QAP)

• JAA and JA1 and QAP C16.08-1 for JAA and QAP C16.09 for

JA1

• F-76 and QAP C16.23

– Traceability Signature Page

– Reference to MIL-PRF-32490, Feb 3, 2014, ADDITIVE, LUBRICITY

IMPROVER, DIESEL, and QPL-32490

• https://quicksearch.dla.mil

– Flash point of 62.5C is required at the government acceptance at origin and subsequently deliver through a multiproduct pipeline.

– 20ml of each batch sample need to be delivered to NRL.

Specifications & Quality Assurance Provisions

(QAP)

Specifications & Quality Assurance Provisions

(QAP)

Renewable Fuels

JP-5: Section 3.1 of MIL-DTL-5624W

JP-8: Section 3.1.1 of MIL-DTL-83133K

F-76: Section 3.2.1 of MIL-DTL-16884P

- No co-processing approved in F76 yet.

DEFENSE LOGISTICS AGENCY

THE NATION’S COMBAT LOGISTICS SUPPORT AGENCY

UNCLASSIFIED // FOR OFFICIAL USE ONLY

WARFIGHTER FIRSTWARFIGHTER FIRST

Marcus Ortman Program Manager, AMW

E Quality Assurance Provisions (QAPs)

CONTRACTOR INSPECTION RESPONSIBILITIES:

The QAP used depends on product type and mode of transport:

E1.21 applies for commercial fungible Jet A/A-1 with & without additives. Modes: P/L, TT, and TC. E1 applies to all others, including Jet A/A-1by marine vessel.

E1: QCP changes: if a vendor has a QCP on file within the last two years, they do not need to submit a QCP outline. If outline is required, a max of two pages, and must reference corresponding requirements in E1/E1.21.

E1.21 Company Plan – but must address those points cited under E1.21: COQ, additive injection procedures (homogeneity), inspect TC, provide test reports to P/L Company (must meet their spec), documentation (COQ & BOL) to QAR, P/L, and/or truck driver.

Annotate additive concentrations on COQ or BOL.

E Quality Assurance Provisions (QAPs)

Other “E” QAPs:

• E12 Point of Acceptance – defines where Acceptance takes place.

• E22.01 Point of Inspection – where Gov’t inspection takes place. Normally inspection occurs at Origin.

• E22 Inspection Offices – Which Region covers which states. For RMWC - Americas West.

• E35 – Non Conforming Supplies – Request goes to Contracting.

• E40.01 MIRR in WAWF/iRAPT – Marine, P/L, TT.

DEFENSE LOGISTICS AGENCY

THE NATION’S COMBAT LOGISTICS SUPPORT AGENCY

UNCLASSIFIED // FOR OFFICIAL USE ONLY

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Transportation Rates Process

Cydne Chambers January 22, 2020

TRANSPORTATION RATES

FAR 47.306-2

- Initial Offer Due Date

Type Rates

- Truck

- Tanker

- Pipeline

- Barge

- Rail

TRANSPORTATION RATES

• Truck Rates

– Contracts

– Surface Deployment and Distribution Command (SDDC) / Global Freight

Management (GFM)

• Point-Point / Zone-Zone / State-State /

• State-Region / Region-Region /

• CONUS-CONUS (9C-9C)

– New Vendor Shipping Point

• New Vendor SPLC Required

• Co-Located With Other Vendor Shipping Point

– Ex: Multiple Offerors from Same Refinery/Terminal

• Same Rate

– New Unique Location

• Close as Possible to Existing/Similar Shipping Point

• City SPLC

TRANSPORTATION RATES

• Tanker Rates

– Military Sealift Command – Daily Rate

– Vessel Mileage

• Calculation Based on Solicitation

– Round Trip

– Origin/Destination/End Point

• Map Coordinates

– Parcel Size

• Solicited vs Offered

– Penalty

• Daylight Berthing/Loading

• 2-Port Discharge

TRANSPORTATION RATES

• Pipeline Rates

– Vendor Must Have Access to Pipeline Supply Chain

• Rates Filed With SDDC/GFM or FERC

– SDDC/GFM

• Pipeline Transportation

• Storage

• Throughput

• Documentation

• Truck Loading Fee

• Additive Injection

– FERC

• Pipeline Transportation

TRANSPORTATION RATES

• Barge Rates

– USTRANSCOM Contracts

• Contract Rate

• Parcel Size

• Sail Time

– SDDC Tender

• Negotiated Rate

– Hourly

– Trip

• Parcel Size

• Specific Route

TRANSPORTATION RATES

• Rail Rates

– GFM Tender

– Capacity

• DODX – 20,000

• Commercial RC – 30,000

– Colonial Pipeline

– DFSP Selma, NC

• Seymour Johnson AFB, NC

• MCAS Cherry Point, NC

DEFENSE LOGISTICS AGENCY

THE NATION’S COMBAT LOGISTICS SUPPORT AGENCY

UNCLASSIFIED // FOR OFFICIAL USE ONLY

WARFIGHTER FIRSTWARFIGHTER FIRST

RMW Pre-Proposal Conference Jesse Hall

Office of Market Research

Pricing

• Economic Price Adjustment

• Default or Recommended Escalators

– Published price we believe most accurately reflects price movements for that product in the specified location

– Base Reference Date – December 10, 2019

– Prior Week Average Pricing

– Average of daily midpoint prices from 12/2/19 – 12/6/19

• Uncommon Escalators

– Escalators proposed by offerors that differ from DLA default escalator

Pricing

Base Reference Price – Default Escalators

West Coast Jet: Platts Jet Fuel Pipeline LA, San Francisco, and Seattle average West Coast F76: Platts ULSD Pipeline LA, San Francisco, and Seattle average Rocky Mountain Jet: Platts Jet54 USGC Pipeline

Price Escalation Offer price - Base reference price = Margin Contract price = Reference price + Margin

Pricing

• Adjustment factors

Publication/Description Detailed Description Based Market Price December 10, 2019

PLATTS: JET (SF+LA+SEA) AVE PIPE PWA NOTE: Adjusting contract prices using this escalator will be firm for weekly periods and is defined as the average of Los Angeles, San Francisco, and Seattle 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.

$1.949280

ARGUS: JET (LA+SF) AVE PIPE PWA NOTE: Adjusting contract prices using this escalator will be firm for weekly periods and is defined as the average of Los Angeles and San Francisco 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: Offers based on this escalator will be subject to a negative adjustment factor of -0.003388 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.

$1.943280

Pricing

• Adjustment factors – Calculation

West Coast Jet Kero Argus Jet Kero LA/SF/Seattle AVE LA/SF Ave Pipe

Ref Price (12/10/19) 1.949280 1.943280

12 mo avg 1.969798 1.960411

Difference ‐0.020518 ‐0.017131

Adjustment factor ‐0.003388

Pricing

• Adjustment factors – Why?

• Evaluate offers based on the relationship of the uncommon escalator and the default escalator for a 12 month period

• Looking at full 12 month average for the comparison allows us to see the "normal" relationship between the two escalators

• May be a market abnormality on the base reference date

DEFENSE LOGISTICS AGENCY

THE NATION’S COMBAT LOGISTICS SUPPORT AGENCY

UNCLASSIFIED // FOR OFFICIAL USE ONLY

WARFIGHTER FIRSTWARFIGHTER FIRST

BULK

OFFER ENTRY TOOL

(OET)

AGENDA

What is the Offer Entry Tool (OET)

Solicitation/OET Sequence

Getting Access

Parts of an OET Offer

Best Business Practices

Getting help with OET

OFFER ENTRY TOOL (OET)

Bulk OET An web-based tool for use in submitting offers Replaces 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

IEG, RMW, AEM and WP use OET OET offers must comply with solicitation closing date/time

Solicitation/OET Sequence

Solicitation posted to https://www.beta.sam.gov/)

OET is opened Vendors receive automated email notification

Vendor inputs offer in OET, and submits

OET round closes

Offers are imported into the Bid Evaluation Model (BEM)

Review/evaluation

OET Rounds Example

INITIAL OFFERS /

OET ROUND 1

OPEN NEGOTIATIONS

INTERIM OFFERS /

OET ROUND 2

CLOSE NEGOTIATIONS

FINAL OFFERS /

OET ROUND 3

PRICE REDUCTION ROUND

(Optional)

OET OFFER SEQUENCE

Initial Required for all OET solicitations Initial offer must be submitted prior to the closing date/time to be eligible for later rounds

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

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

Final Proposal Revision Last standard round Data fields may be locked (product, mode, shipping point)

Price Reduction Round (Optional) Use at the Contracting Officer’s discretion Only price can be changed

Obtaining OET Access

1. Obtain a CAGE CODE for your company

Register at https://www.beta.sam.gov/ Obtain a CAGE code OET account is linked to your CAGE code(s) 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

Obtaining OET Access

3. Log into your AMPS account to request the OET role Click ‘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

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

OET Access

Access Allow 1-2 weeks for OET access Log in every 30 days per DoD policy Account tied to your CAGE code Do not share your username or password Only the Account holder can submit for reset of account/password Link for DoD Root Certificates available on the OET homepage Passwords expire every 60 days (users will be prompted to change)

Account Settings Select the purchase programs you’re interested in Use personal email, no group accounts If you are not receiving emails, check your Junk mail and internal firewall setting

Obtaining OET Access

Do not share your OET username or password with anyone!

OET accounts are individual accounts, not group accounts!

If you do not log in for 30 days your account will be de-activated!

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 E-mail address for notifications Company size status Select your purchase program under Buy Selection

Parts of An OET Offer

Three Primary Sections to OET Offer data

1. My Account

- Update contact information

- Change password

2. Offer Details

- Shipping points, products, quantity and price

- Offer conditions

- This is the data that is sent to the BEM

3. Offer Submission Package -‘Fill in’ clauses

- Exceptions

- Replaces the paper OSP

OET Main Menu

NEW!!

Offer Details

Offer Submission Package

Offer Submission Data

WARFIGHTER FIRSTWARFIGHTER FIRST 68

Offer Submission Data

Refinery Shutdown Info

If you have no refinery shutdown information, leave this chart BLANK

User Account Information

Origin and Destination Offer

Conditional Statements

You can use conditional statements in your offer

Make sure your conditions don’t conflict

You can offer overall max/min quantities, or by Product Mode Shipping Point

You cannot tie two shipping points, or products together Read Section M of the solicitation

Best Business Practices

Submitting Offers Real time and auto-saved Review Offer Submission Package Review Bid Package Report Select “Submit Offer Package” to submit offer

You will get an error message if critical info is missing Enter password again and submit Watch for a confirmation email Enter OET after submission... VIEW/EDIT

VIEW allows you to view the offer, not make changes EDIT will un-submit your offer! You will be able to make changes, but you must submit your offer Do not submit a “place-holder” offer/submit best offers in the initial round Do not wait until the last minute to submit Keep your OET account current (log in once every 30 days) Read the solicitation and familiarize yourself with the clauses and schedule

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:

Matthew Shuster, Matthew.Shuster@dla.mil, (571) 767-9250 Darren Dunham, Darren.M.Dunham@dla.mil, (571) 767-0338

QUESTIONS???

QUESTIONS???

DEFENSE LOGISTICS AGENCY

THE NATION’S COMBAT LOGISTICS SUPPORT AGENCY

UNCLASSIFIED // FOR OFFICIAL USE ONLY

WARFIGHTER FIRSTWARFIGHTER FIRST

Bulk Bid Evaluation Model

(BEM)

OVERVIEW

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 factor

Offer Conditions

Optional

BEM evaluates complex offers

– Tiered 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 & LCR

(if Price Reduction Round)PRICE REDUCTION ROUND

(Optional)

BEM MCBEW

SEQUENCE OF BEM RUNS

Small Business Set-Aside Run

HUBZone Run

8(A) Run

Base Run

Optimization Run

Final Forced Run

Post Award

Once the solicitation is awarded, award data will be published at https://www.beta.sam.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

(571) 767-9250

Darren Dunham Darren.M.Dunham@dla.mil

(571) 767-0338

WARFIGHTER FIRSTWARFIGHTER FIRST 87

QUESTIONS?