IEGC_PPC_Slides.pdf

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Supplier Advocate Team Ashleigh Johnson & Susan Lowe

• Maintain strong relationships with existing industry partners and build new relationships with perspective partners.

– Act as the supplemental point of contact for suppliers with non-contracting questions.

– Manage every aspect of industry engagements, from fielding meeting requests to coordinating the logistics.

– Co-chair the Supplier Advocacy Council (SAC)

– Manage the DLA Energy Industry Engagement webpage &

Industry Connections

• https://www.dla.mil/Energy/Business/IndustryEngagement/

– Leads for the DLA Energy Worldwide Energy Conference

• Contact us: Energy.Industry-Engagement@dla.mil https://www.dla.mil/Energy/Business/IndustryEngagement/ mailto:Energy.Industry-Engagement@dla.mil

2022 DLA Energy Worldwide Energy Conference

Warfighter Readiness through

Stronger Partnerships

March 28-30, 2022 Gaylord National Hotel &

Convention Center Monday, March 28, 2022

Military Services Day Expanded Industry Day

DLA Energy at a Glance Sessions Industry White Papers

Pre-proposal Conferences Academia Sessions

Special Networking Sessions Trade Show Opening & Reception

Tuesday, March 29, 2022 Conference Opening Networking Session

Panels, Sessions & Trade Show

Wednesday, March 30, 2022 Morning Networking Session

Panels, Sessions & Trade Show Closing Networking Session

Proposed Agenda*

*Subject to change

Find out more at:

DLAENERGY-WWEC.COM

The Nation’s Combat Logistics Support Agency

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Inland/East/Gulf Coast Offshore (IEGC)

SPE602-21-R-0708

Program and Solicitation

Overview Stephanie Koessel, Contracting Officer

May 20, 2021

Program Description

• Program: The IEGC program covers the estimated annual domestic bulk fuels requirements under the IEGC regions and Purchase Programs, serving approximately 250 Military/DoD Facilities

• Locations:

• Requirements:

– Distillate, Naval (F76) 9140-00-273-2377, PP 2.5a: 129,091,000 USG

– Turbine Fuel, Aviation (JAA) 9130-00-359-2026, PP 2.2a: 834,751,000 USG

– Turbine Fuel, Aviation (JP5) 9130-00-273-2379, PP 2.2c: 181,881,00 USG

– Turbine Fuel, Aviation (JP8) 9130-01-031-5816, PP 2.2a: 167,000 USG

• Methods of Delivery:

– FOB Origin and Destination

– Tanker, Barge, Tank Truck, Railcar, and/or Pipeline

• Ordering Period:

– Date of award through March 31, 2023

• Delivery Period:

– April 1, 2022 through March 31, 2023, plus a 30-day carry-over period

• Contract Type:

– Fixed Price, Indefinite Delivery/Indefinite Quantity with Economic Price

Adjustment (EPA)

• Minimum Lift Guarantee of 75% of the total original contract volume

(Provision I86.12)

• Multiple Awards

• Competition:

– Full and Open Competition IAW FAR 6.1

– Full and Open Competition after Exclusion of Sources IAW FAR 6.2

– 49.03% Set Aside for Small Business Concerns

Solicitation Overview

• Solicitation:

– SPE602-21-R-0708

– Now on Contract Opportunities via beta.sam.gov, not FedBizOpps (FBO)

– 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:

– Draft Solicitation on May 18, 2021

– Final Solicitation expected on June 25, 2021

– Deadline for receipt of offers is expected to be July 9, 2021

– Awards expected to be made on or around February 1, 2022

– Delivery period will begin April 1, 2022

Offeror Submittals

• What To Submit:

– SF-1449

– Offeror Submission Package (OSP)

– Applicable fill-in clauses/provisions

– Quality Control Plan Outline (Two Page Limitation)

– Representations and Certifications (Section K)

– F-76 Traceability Page

– Supply Commitment Letter (Non-manufacturers Only) (L704)

– Small Business Subcontracting Plan (Large Businesses Only)

• Offer Submittal Through the Offer Entry Tool (OET):

– Ensure entity has access to the OET

– STRONGLY RECOMMENDED to enter and test the system prior to 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, you are having system issues, or another unforeseen issue arises

Evaluation Round Overview

FAR 52.212-2 Evaluation-Commercial Items

1) Initial Offers

2) Interim Proposal Round

– Last opportunity to add new shipping points, products, methods of delivery, sources of supply/supply commitment letter, FOB, escalators, or exception requests

– Offerors will be provided a Minimum Cost Bid Evaluation Worksheet (MCBEW)

3) Final Proposal Revisions (FPR)

– The most recent OET submission will be evaluated as offeror’s FPR if an offeror chooses not to revise its offer during this round, and offer is not withdrawn

4) OET Price Reduction Round (Optional)

– Offerors will be provided a MCBEW and a Laid Down Cost Report (LCR)

– Multiple Price Reduction Rounds may be conducted

– Determine the lowest laid down cost and overall bid award pattern

OSP / OET Matrix

OSP Section /Subsection

Offeror Entry Tool Main Menu and Sub-Menu Items FOB O/K or B

FOB D/K

or B

• Shipping Point Physical Abilities X X

■ Edit Products / Modes /Additives X X

• Entering Offers

A/1 ■ Origin Bid Offers X B • Total Additives X C • Additional Bid Line Data (Escalator) X A/2 ■ Destination Bid Offers X B • Total Additives X C • Additional Bid Line Data (Escalator) X E ■ Offer Conditions (if applicable) A A

• Offer Submission Data F/3 ■ Overall Quantity By Refinery Source X X

■ Source of Supply F/1 • Production Capacity for Each Source X X F/2 • Shipping Points Supplied By Each Refinery Source X X

■ Parcel Shipping Sizes & Daily Load/Move Capacity G/1a • Truck/Railcar Origin G/1b • Truck/Railcar Destination G/2 • Pipeline G/3 • Barge/Tanker X X G/4 • Size/Lift Interval of One Impact Another? A A

Evaluation

• Offer Evaluation Method:

– Lowest price, technically acceptable source selection process described under

FAR 15.101-2

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

– Tradeoffs will not be permitted in this acquisition

• 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 in accordance with Provision C16.23 FUEL, NAVAL DISTILLATE (F-76)

• Factor 1: Technical Acceptability (Continued)

3) Inspection and Acceptance, Section E:

(i) Offer meets all inspection requirements outlined in Section E Provisions (ii) Offer certifies that it has a Quality Control Plan (QCP), On file with DLA Energy that is no more than 24 Months old or provide 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 provisions E1 and/or E1.21.

4) Deliveries or Performance, Section F:

(i) Offer meets all 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)

• 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.

Clause Updates

• M24 Evaluation of Offers Involving F.O.B Tanker Loading (All Programs) (DLA ENERGY Oct 2020)

– Conformed for all programs

– Considers one-way mileage instead of two-way mileage

• M72.10 Evaluation of Offers (Exceptions/Deviations) (Bulk) (DLA Energy Sep 2020)

– Exceptions must be in Section M to be evaluated

– Guidance on attaching exceptions

– Non-compliant exceptions will be rejected

– Exceptions not explicitly accepted by Government in negotiations are considered rejected

Escalators

• B19.33 ECONOMIC PRICE ADJUSTMENT

– Offered prices must be tied to base reference price

– Solicitation lists available escalators with detailed descriptions of the formula and any adjustment factors for evaluation purposes only

– Offeror’s can propose alternate escalators as an exception (M3.01)

• Adjustment factor will apply to alternate escalators

– Offered prices input in OET should reflect the total offer price (Base Reference

Price + Margin)

Responsibility Determination

• FAR Subpart 9.1: Responsible Prospective Contractors

– An affirmative responsibility determination must be made prior to award

• FAR 9.104 General Standards

– Reps and Certs (SAM.beta.gov)

• FAR 9.106 Preaward Surveys:

– Information needed in initial offer but no later than interim offers

– Quality Assurance Representatives need a minimum of 30 days to complete

– Supplier Commitment Letters and Transportation Agreements required

• DLA Energy Requirements

– L704, Evidence of Responsibility

– L2.09, Evidence of Responsibility (Operating Criteria)

Offeror Inputs / How can you help?

• Exceptions/Waivers

– Must be submitted in OET in interim proposal submittal

– Long lead times for approval

– Submitting in proposal vs after award

• Interims October 5, 2020 / Performance began April 1, 2021

• Adding alternate shipping points

– PAS (up to 30 days)

– No guarantee unless included in proposal

• Submit complete initial proposals

– Last Year Initial Submittals:

• Approx. 553 sequence lines X Four Technical SubFactors = 2,248 Tech Ratings

• 1,003 or 45% of Tech Ratings were unacceptable at award

• Approx. 624 or 62% of unacceptable items at initials were resulting from incomplete fields in OET

IEGC Points of Contact

Stephanie Koessel Lead Contracting Officer DLA Energy FEBE stephanie.koessel@dla.mil

(571) 767-9127

Daniel Ferry Division Chief DLA Energy FEBE daniel.ferry2@dla.mil

(571) 767-8411

Paul Johnson Lead Contract Specialist DLA Energy FEBE paul.johnson@dla.mil

(571) 767-2966

Joseph Yacovone Contracting Officer DLA Energy FEBA joseph.yacovone@dla.mil

(571) 767-0456

Hamida Ahmadi Division Chief DLA Energy FEBA hamida.ahmadi@dla.mil

(571) 767-8485 mailto:stephanie.koessel@dla.mil mailto:daniel.ferry2@dla.mil mailto:paul.johnson@dla.mil mailto:joseph.yacovone@dla.mil mailto:hamida.ahmadi@dla.mil

Questions

19Source: IEGC Pre-Proposal Conference As of May 20, 2021

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IEGC Pre-Proposal Conference

Emily Weaver, IEGC Program Manager

Technical Evaluation

• Lowest Price, Technically Acceptable (LPTA)

– Source Selection Technical Team

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

• Technical Team reviews offers submitted through the Offer Evaluation Tool (OET) against the Solicitation posted on BetaSAM.Gov website.

– Each offeror is evaluated solely based upon the offer's compliance with the solicitation factors and subfactors outlined in Section M Evaluation Factors for Award.

– Tech Team will ensure the evaluation process follows the evaluation criteria and the ratings are appropriately and consistently applied to all offers.

22Source: IEGC Pre-Proposal Conference

• Missing/Incomplete details may result in an Unacceptable rating for corresponding bid lines.

• Examples of Missing Data:

– Mode, Min/Max Quantities, Shipping Point

– Source/Refinery, Max Monthly Production

– Inconsistent Shipping Point and Source Point Names

– Parcel Shipping Sizes & Daily Capacity

– Pipeline Shipping Point and Ingress, Min/Max Parcel

Size, Lift Interval

– Barge/Tanker Facility Loading and Port Information

– Map Coordinates

– Shutdown Period

– Exceptions/Waivers (if applicable)

23Source: IEGC Pre-Proposal Conference

A.1. Origin Offer - Mode, Min/Max Quantities, Shipping Point

A.2. Destination offer - Mode, Min/Max Quantities, Shipping Point

24Source: IEGC Pre-Proposal Conference As of May 20, 2021

Seq Set

ID

Product Shipping Point

To Location

Line Item

Max Qty

(USG)

Min Qty

(USG)

Mode Price w/o Additi ves

(USD)

Total Additi ve Cost

% Bio-Fuel Included in Offer Qty**

EPA

Escalator

Total Offer Price

S5 A JAA Shipping Point A, VA

Ft Belvoir 0126 20,000,000 2,500,000 T

*.****** *.****** 0 *.****** *.******

Seq Set ID Product Shipping Point

Max Qty

(USG)

Min Qty

(USG)

Mode Price w/o Additiv es

(USD)

Total Additive Cost

% Bio-Fuel Included in Offer Qty**

EPA

Escalator

Total Offer Price

S1 A JP5 Shipping Point B, LA

50,000,000 1,000,000 P *.****** *.****** 0 *.****** *.******

S2 A JAA Shipping Point A, VA

46,000,000 2,500,000 T *.****** *.****** 0 *.****** *.******

S3 A F76 Shipping Point C, TX

120,000,000 120,000,000 K *.****** *.****** 0 *.****** *.******

S4 A JP5 Shipping D, NJ

8,400,000 4,200,000 B *.****** *.****** 0 *.****** *.******

OET - Entering Offers Main Menu: Origin Bid Offers Sub-Menu: N/A

OET - Entering Offers Main Menu: Destination Bid Offers Sub-Menu: N/A

B. Total Additives

25Source: IEGC Pre-Proposal Conference As of May 20, 2021

Seq Mode FSII Price

FSII Included / Optional / Not Included

SDA

Price

SDA

Included / Optional / Not Included

CI

Price

CI Included / Optional / Not Included

S1 P *.****** N *.****** N *.*****

Y

S2 T *.****** Y *.****** Y *.*****

Y

S3 K *.****** N *.****** N *.*****

N

S4 B *.****** O *.****** N *.*****

O

S5 T *.****** Y *.****** Y *.*****

Y

OET - Entering Offers Main Menu: Origin/Destination Bid Offers Sub-Menu: Total Additives

F.2. Shipping Points Supplied via Source/Refinery

F.1. Maximum Monthly Production

*Please provide maximum production that is offered with your Offer Submission Packet

26Source: IEGC Pre-Proposal Conference As of May 20, 2021

Product Source of Supply Maximum Monthly Production

(USG)*

JAA Refinery A, VA 5,500,000

JP5 Refinery B, LA 4,900,000

F76 Refinery C, TX 9,870,000

Product Source/Refinery Shipping Points Supported

JAA Refinery A, VA Shipping Point A, VA

JP5 Refinery B, LA Shipping Point B, LA Shipping Point D, NJ

F76 Refinery C, TX Shipping Point C, TX

OET - Offer Submission Data Main Menu: Source of Supply Sub-Menu: Shipping Points Supplied By Each Refinery Source

OET - Offer Submission Data Main Menu: Source of Supply Sub-Menu: Production Capacity for Each Source

G.1.a. Parcel Shipping Sizes & Daily Capacity - Origin

VENDOR NOTES: Max truck loading for Shipping Point, VA is 13 trucks for both Origin or Destination

G.1.b. Parcel Shipping Sizes & Daily Capacity - Destination

VENDOR NOTES: Max truck loading for Shipping Point, VA is 13 trucks for both Origin or Destination

27Source: IEGC Pre-Proposal Conference As of May 20, 2021

Product/Mode Shipping Point

Days of Week Terminal Open

Hours Each Day Terminal is Open

No. Racks Max Load Per Normal Work Day

JAA Shipping Point A, VA

Sun-Sat 0000-2359 2 13

Product/Mode Shipping Point Min Daily Quantity

Max Daily Quantities Days Available for Delivery

JAA Shipping Point A, VA

0 120,000 Sun-Sat

OET - Offer Submission Data Main Menu: Parcel Shipping Sizes & Daily Load/Move Capacity Sub-Menu: Truck/Railcar Origin Truck/Railcar Destination

G.2. Pipeline

VENDOR NOTES: Ingress Point is Parrish, LA.

G.3. Barge/Tanker

VENDOR NOTES:

28Source: IEGC Pre-Proposal Conference As of May 20, 2021

Product/Mode Shipping Point and Pipeline

Minimum Qty

(BBLS)

Maximum Qty

(BBLS)

No. of Days Between Lift / Delivery

JP5 / P Shipping Point B, LA – Colonial PL

75,000 200,000 7

OET - Offer Submission Data Main Menu: Parcel Shipping & Daily Load/Move Capacity Sub-Menu: Pipeline; Tanker

Product/Mode Shipping Point

Minimum Qty

(BBLS)

Maximum Qty (BBLS)

No. of Days Between Lift / Delivery

F76 / K Shipping Point C, TX

125,000 235,000 7

JP5 / B Shipping Point D, NJ

25,000 50,000 3

G.4. Would the parcel size/lift interval for one product or mode impact the available parcel size/lift for any other product mode or mode at the same shipping point?

29Source: IEGC Pre-Proposal Conference As of May 20, 2021

OET - Offer Submission Data Main Menu: Parcel Shipping & Daily Load/Move Capacity Sub-Menu: Pipeline; Tanker

H.1. Origin Tanker/Barge Loading Facility Data

H.2. Facilities Restrictions/Capacity Ballast

H.3. Map Coordinates (Pier Side)

– 00°00’00"N 00°00’00“E

30Source: IEGC Pre-Proposal Conference As of May 20, 2021

Shipping Point

Mode Ballast Capacity (BBLS) Max Loading Rate (Pump Rate

BPH)

Shipping Point C, TX

TANKER NONE 6,000

Shipping Point D, NJ

BARGE NONE 2,000

Shipping Point

Mode Cargo Capacity

(BBLS)

Mean Low Water Depth

(FT)

LOA

(FT)

Draft (FT)

Shipping Point C, TX

TANKER 235,000 40 600 40

Shipping Point D, NJ

BARGE 50,000 35 300 38

OET - Offer Submission Data Main Menu: Facilities Restrictions/Capacities Cargo Sub-Menu: Facilities Restrictions, Capacity Ballast, Map Coordinates

I.1. Port Restrictions

I.2. Other Restrictions

31Source: IEGC Pre-Proposal Conference As of May 20, 2021

Shipping Point Height Restrictions

– Sea Level to Manifold (FT)

Distance from Vessel Rail to Manifold (FT)

Maximum Vessel Size (DWT)*

Maximum Beam (FT)

Shipping Point C, TX N/A N/A 100,000 120 feet

Shipping Point D, NJ 35 FT 15 FT 25,000 100 feet

OET - Offer Submission Data Main Menu: Port Restrictions Sub-Menu: For Each Shipping Point, Other Restrictions

I.3. Operating Hours for Berthing and Loading

I.4. Additional Vetting Criteria & Port Restrictions

32Source: IEGC Pre-Proposal Conference As of May 20, 2021

Shipping Point Berthing Loading

Shipping Point C, TX 24 x 7 24 x 7

Shipping Point D, NJ 24 x 7 24 x 7

OET - Offer Submission Data Main Menu: Port Restrictions Sub-Menu: Operating Hrs for Berthing & Loading and Additional Vetting Criteria

J. Quality Control Plan

K. Truck/Truck Trailer Free Time and Detention Rates

33Source: IEGC Pre-Proposal Conference As of May 20, 2021

Shipping Location (Load Point)

Free Time for Unloading Transport Truck or Truck and Trailer (in hours)`

Rate For Detention Beyond the Free Time (in dollars per hour)

Shipping Point A, VA 2 $100.00

Offeror certifies that it has a Quality Control Plan (QCP) on file with DLA Energy that is no more than 24 months old.

An outline, estimated 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.

OET - Offer Submission Data Main Menu: Quality Assurance & Truck Free Time & Detention Rates

L. SCHEDULE OF REFINERY SHUTDOWNS FOR

TURNAROUNDS

• (1) No shutdowns planned []

• (2) Shutdowns planned [X]

34Source: IEGC Pre-Proposal Conference As of May 20, 2021

OET - Offer Submission Data Main Menu: Schedule of Refinery Shutdowns For Turnarounds

REFINERY LOCATION SHUTDOWN PERIOD IMPACT OF SHUTDOWN ON SUPPLY

AVAILABILITY

Refinery A, VA June-August 2022 None, Refinery will keep on hand barrels during shutdown

Refinery B, LA October 2022 No product will be available during shutdown.

Requests for Exceptions

35Source: IEGC Pre-Proposal Conference As of May 20, 2021

M.1. Clause/Provision Exception Requested Supplies or Services & Prices

Section B of Solicitation

M.2.Clause/Provision Exception Requested Descriptions/Specifications/S tatement of Work

Section C of Solicitation

M.3. Clause/Provision Exception Requested Inspection & Acceptance Section E of Solicitation

M.4. Clause/Provision Exception Requested Deliveries or Performance Section F of Solicitation

OET - Offer Submission Data Main Menu: Requests for Exceptions Sub-Menu: M.1., M.2., M.3., M.4. M.5.

M.5. Clause/Provision Exception Requested Other Exceptions Other Exceptions

O. General Comments

36Source: IEGC Pre-Proposal Conference As of May 20, 2021

OET - Offer Submission Data Main Menu: General Comments

O. General Comments Any additional applicable comments

Questions

37Source: IEGC Pre-Proposal Conference

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DLA Energy Bulk Petroleum Products

IEGC

Quality Technical Support

Cheng Yen Quality Technical (AT)

Domestic Bulk Petroleum Products

Overview

• Flash Point Requirement for F76

• F76 Traceability Sheet

• Section C Waivers (M. Requests for Exception)

• Batch Sampling Requirement (F76 and JP5)

Quality Assurance Provisions (C-

QAP)

C-QAP 16.23 (F76 Fuel)

• Flash Point Requirement Change

• OLD: 60oC minimum (62.5oC for multi-product pipeline)

• NEW: 62.5oC minimum for ALL origin offers

• F76 Traceability Sheet

41Source: Director’s Office DLA Slide Template As of August 26, 2020

F-76 Traceability Sheet

42Source: Director’s Office DLA Slide Template As of August 26, 2020

Located in

QAP

C16.23

F-76 Traceability (Part 1)

F-76 Traceability (Part 2)

Section C Waiver Request

Waiver Request: Unapproved additive, please provide the following:

• Name of additive

• Concentration of additive (e.g., max concentration)

• Technical reason

• Supporting documentation

• Safety Data Sheets (SDS)

• Product Spec Sheet

• Miscellaneous

45Source: Director’s Office DLA Slide Template

Batch Sampling Requirement

• 20mL sampling requirement for JP5 and F76

• JP5 (QAP C16.01, section d) and F76 (QAP

C16.23, section e).

• All-level sample or Composite of U/M/L samples

• When to sample? Upon completion of each individual procurement batch

• “Batch”: specific quantity of product that is processed or utilized as a single unit and tested to meet test criteria and specifications

46Source: Director’s Office DLA Slide Template

• Submission period: shipped with 30 days of delivery of procurement batch along with CoQ

• Contract number, contractor’s name, product, refinery location, quantity of tank/batch, etc.

• Send samples to:

US Naval Research Laboratory

ATTN: Thomas Loegel 4555 Overlook Ave., S.W.

Washington D.C. 20375-5320

• JP5 (QAP C16.01, section d) and F76 (QAP C16.23, section e).

47Source: Director’s Office DLA Slide Template

Batch Sampling Requirement

Contact Information

Primary

• Cheng Yen

• Cheng.Yen@dla.mil

• 571-767-5295

• Backup

• David Grieco

• David.Grieco@dla.mil

• 571-767-0007

48Source: Director’s Office DLA Slide Template As of August 26, 2020 mailto:Cheng.Yen@dla.mil mailto:David.Grieco@dla.mil

Questions?

E s t a b l i s h e d 1 9 6 1

Quality Assurance Provisions (QAPs)

Marcus Ortman Quality Program Manager, Americas

571-363-8916 marcus.ortman@dla.mil

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, estimated 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.

51Source: Director’s Office DLA Slide Template

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

IEGC - Americas East.

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

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

52Source: Director’s Office DLA Slide Template

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IGEC Pre-Proposal Conference

Jesse Hall Office of Market Research

Pricing

• Fixed Price with Economic Price Adjustment

• Economic Price Adjustment Explained

– Price Escalators = Published prices used to adjust contract prices over time (allows prices to fluctuate with the market)

– Base reference price = Escalator price on the base reference date

(4/20/21)

– Offer price - Base reference price = Margin

– Invoice price = Reference price on lift date + Margin

55Source: Director’s Office DLA Slide Template

• Default Escalators

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

– IEGC default escalators are prior weekly averages (updated on

Tuesday)

• JP5/JP8/JAA: Platts Jet Kero 54 USGC Pipeline PJABO00

• F76: Platts ULSD USGC Pipeline AATGY00

• Uncommon Escalators

– Escalators proposed by offerors that differ from DLA default escalator

• Other pricing sources, assessment locations, calculation methods

(pending approval)

• Many from prior years already included

– Evaluation factors are applied to all offer prices based on uncommon escalators

• Evaluation factors

• Evaluation Factors – Calculation

59Source: Director’s Office DLA Slide Template As of August 26, 2020

JP5/JP8/JAA Platts Jet 54 Argus Jet 54 USGC Pipe (USD) Colonial Pipe (USD)

Ref Price (4/20/21) 1.669380 1.669830

12 mo avg 1.121570 1.121635

Difference 0.547810 0.548195

Evaluation factor -0.000385

• Evaluation 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

• Used only for price evaluation – Will not be factored into invoice prices once contract performance begins

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Offer Entry Tool

(OET)

Darren Dunham Supplier Relationship Manager

AGENDA

63Source: Director’s Office DLA Slide Template As of August 26, 2020

• 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)

64Source: Director’s Office DLA Slide Template As of August 26, 2020

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

Solicitation/OET Sequence

65Source: Director’s Office DLA Slide Template As of August 26, 2020

• 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 https://www.fbo.gov/

OET Rounds

66Source: Director’s Office DLA Slide Template As of August 26, 2020

INITIAL OFFERS /

OET ROUND 1

OPEN

NEGOTIATIONS

INTERIM OFFERS /

OET ROUND 2

CLOSE

NEGOTIATIONS

FINAL OFFERS /

OET ROUND 3

PRICE REDUCTION

ROUND (Optional)

OET Rounds

67Source: Director’s Office DLA Slide Template As of August 26, 2020

• 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 round before Price Reduction

– 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

OET Access

68Source: Director’s Office DLA Slide Template As of August 26, 2020

• 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

• Create an account in the Account Management And Provisioning System (AMPS) to apply for OET access

– https://amps.dla.mil/oim https://www.beta.sam.gov/ https://amps.dla.mil/oim

69Source: Director’s Office DLA Slide Template As of August 26, 2020

• 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

• OET Username and password will sent to you via email

– User ID and Password for AMPS are NOT the same as for OET

70Source: Director’s Office DLA Slide Template As of August 26, 2020

• 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

– Use the same company name as the one linked to your CAGE

– 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

71Source: Director’s Office DLA Slide Template As of August 26, 2020

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

72Source: Director’s Office DLA Slide Template As of August 26, 2020

• 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

– Use the exact Company Name as depicted in SAM

– E-mail address for notifications

– Company size status

– Select your purchase program under Buy Selection https://offerwizard.dla.mil/epst_oet/oet.htm

Parts of an OET offer

73Source: Director’s Office DLA Slide Template As of August 26, 2020

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

74Source: Director’s Office DLA Slide Template

Offer Details

75Source: Director’s Office DLA Slide Template

Offer Submission Package

76Source: Director’s Office DLA Slide Template

Offer Submission Data

77Source: Director’s Office DLA Slide Template

Offer Submission Data

78Source: Director’s Office DLA Slide Template

Refinery Shutdown Info

79Source: Director’s Office DLA Slide Template As of August 26, 2020

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

User Account Info

80Source: Director’s Office DLA Slide Template

Origin and Destination Offers

81Source: Director’s Office DLA Slide Template

Conditional Statements

82Source: Director’s Office DLA Slide Template As of August 26, 2020

• 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 Practices

83Source: Director’s Office DLA Slide Template As of August 26, 2020

• 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

84Source: Director’s Office DLA Slide Template As of August 26, 2020

• 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

• If you are unable to access OET or your OET account is locked, please email the DLA Energy Bulk Technical Team:

– DESC-BTechTeam@dla.mil

• 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 https://offerwizard.dla.mil/bulkoet/bulkoet.html mailto:DESC-BTechTeam@dla.mil mailto:Matthew.Shuster@dla.mil mailto:Darren.M.Dunham@dla.mil

E s t a b l i s h e d 1 9 6 1

Bid Evaluation Model (BEM)

Matt Shuster Supplier Relationship Manager

Bulk Petroleum Products

87Source: Director’s Office DLA Slide Template As of August 26, 2020

• 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

88Source: Director’s Office DLA Slide Template As of August 26, 2020

• 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)

– Excess throughput charges

– Offer specific evaluation factors

– Base Reference Price evaluation factors

BEM Data

89Source: Director’s Office DLA Slide Template As of August 26, 2020

• EBS

– Requirements and solicitation data

– Amendments

– Contract Awards

• TRIS

– Transportation rates

• OET

– Initial offers and subsequent revisions

• USER

– Additive matrix

– Escalators

– DFSP costs

– Evaluation Factors

Offer Conditions

90Source: Director’s Office DLA Slide Template As of August 26, 2020

• 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/gal B: 6,000,000 USG by PL @ $3.00/gal C: 1,000,000 USG by PL @ $2.98gal

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 Req Into Y by PL, out by TT to all Req

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

92Source: Director’s Office DLA Slide Template As of August 26, 2020

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

93Source: Director’s Office DLA Slide Template

Laid Down Cost Report (LCR)

94Source: Director’s Office DLA Slide Template

Sequence Of BEM Runs

Small Business Set-Aside Run

HUBZone Run

8(A) Run

Base Run

Optimization Run

Final Forced Run

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 mailto:Darren.M.Dunham@dla.mil

Post Award

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

• For questions specific to an offer, please contact the Contracting Officer listed on the solicitation https://beta.sam.gov/