MFR - Final Award Pattern _SBA.pdf
PDF 207 KB Posted
- Solicitation number
- SPE602-21-R-0708
- Issued by
-
Defense Logistics Agency Energy
About this file
This document is a modification to indefinite delivery, indefinite quantity contracts awarded by the Defense Logistics Agency Energy under solicitation SPE602-21-R-0708 for bulk petroleum products in the Inland East Gulf Coast/Offshore region. The contracts were awarded on March 1, 2022 to 20 offerors for jet fuels, diesel, and gasoline to be delivered from April 1, 2022 through March 31, 2023. One of the awardees, Moffett Oil Company, had formed a joint venture with Phillips 66 and claimed eligibility for the HUBZone price evaluation preference as a small business, which resulted in Moffett receiving the largest award amount. However, the Small Business Administration determined upon protest that the joint venture did not meet the requirements to qualify as a small business. As a result, the contract modifications will shift quantities to other awardees including Alon, Husky, Marathon, and Phillips 66, with products to be delivered by truck, pipeline and barge to various bases across multiple states.
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Other files
| File | Type | Posted |
|---|---|---|
| IEG FFR MCBAS.pdf | ||
| Award Pattern MFR_FINAL.pdf | ||
| IEG FFR SOA.pdf | ||
| IEG FFR MCBEW.pdf | ||
| SPE60221R07080002.pdf | ||
| SPE60221R07080001.pdf | ||
| Attachment 6 - OET_OSP Matrix.pdf | ||
| IEG SPE60221R0708_RFP.pdf | ||
| OET_OSP Matrix.xlsx | XLSX spreadsheet | |
| Attachment 1 - C_E QAPS.pdf | ||
| Attachment 2 - F76 Traceability Signature Page.pdf | ||
| Attachment 5 - Fillable Clauses.pdf | ||
| Attachment 4 - DLA Form 2019 July 2018.pdf | ||
| Attachment 3 - Equal Value Exchanges of Fuel.pdf | ||
| Attachment 7 - Excel Format Schedule B Requirements.xlsx | XLSX spreadsheet |
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Text version
DEFENSE LOGISTICS AGENCY
ENERGY
8725 JOHN J. KINGMAN ROAD
FORT BELVOIR, VIRGINIA 22060-6222
SUBJECT: Modification to FY22 IEG contracts for Alon, Husky, Marathon, Phillips 66, and Wynnewood.
Background
Solicitation SPE602-21-R-0708 (“the solicitation”) was issued on June 23, 2021. The solicitation is for Inland / East / Gulf Coast / Offshore (IEG) region, the bulk petroleum purchase of JAA, JP5, F76 and JP8. Awards were made using the lowest price technically acceptable. Period of performance is April 1, 2022 – March 31, 2022 (plus 30-day carryover), in accordance with FAR 15.101-2, and resulted in Indefinite Delivery, Indefinite Quantity contracts firm fixed price with an economic price adjustment type contract awarded on March 1, 2022.
DLA received thirty-six (36) initial offers on July 13, 2021 and awarded contracts to twenty (20) offerors. Within the twenty awardees, there were four small business offerors. One of the offerors claiming small business preference was the Moffett Oil Company (Moffett). For their IEG offer, Moffett formed a Joint Venture (JV) with large business refiner Phillips 66 Company (P66). Moffett identified P66 as the proposed supplier in their proposal. Moffett asserted eligibility for the HUBZone price evaluation preference (PEP) in their proposal, even though P66 is a large business. Based on the certifications submitted by Moffett and its SBA-certified status, DLA Energy applied the PEP to the full offered volume from Moffett. As a result, Moffett was the apparent successful offeror for 23,054,000 United States Gallons (USG) of JAA aviation jet fuel with a total estimated value of $46,367,483.50. Without the 10% PEP, Moffett’s only award is 905,000 USG. DLA Energy does not have the authority to decide if a teaming arrangement meets small business requirements. Therefore, DLA Energy filed a protest with the Small Business Administration.
SBA Protest
Moffett was awarded the 905,000 USG to Fort Campbell on March 1, 2022, but there was 22,149,000 USG remaining of JAA quantity that Moffett was in line for using the PEP. The locations are as follows: FOB Destination truck to ANG Scott AFB, MO (2,737,000 USG); Scott AFB, MO (2,632,000 USG), Fort Riley (1,453,000 USG), Ft. Leonardwood (172,000 USG), Altus AFB (8,500,000 USG), Fort Sill (512,000 USG) and Fort Campbell Airfield (6,143,000 USG). The Contracting Officer filed a protest with the Small Business Administration on March 14, 2022. The basis of the protest was Moffett and P66’s joint venture did not meet the small business criteria under 13 C.F.R. § 125.8 and §125.9 for the HubZone PEP and the JV Agreement does not contain all required elements under 13 C.F.R. §§ 125.8(b)(2) and 125.9(d)(1)(ii). SBA adjudicated the protest and decided on April 8, 2022 that Moffett’s JV with P66 did not entitle them for the HubZone PEP and; therefore, did not meet the legal definition of a small business under the JV arrangement.
Conclusion
As a result of the SBA verdict, modifications will be executed as follows:
Alon: FOB D truck to Altus AFB (6,819,000 USG)
Husky: FOB Origin Pipe (6,124,000 USG)
Marathon: FOB Origin Pipe (19,000 USG)
Phillips 66: FOB D truck to ANG Scott AFB (2,737,000 USG); FOB D truck to Scott AFB (2,632,000 USG); FOB D truck to Fort Riley (1,453,000 USG); FOB D truck to Ft.
Leonardwood (172,000 USG)
Wynnewood: FOB Origin Truck (2,193,000 USG).
The full SBA determination for the protest is located in the preaward file for SPE0221R0708.
Prepared by:
JACEE E. STUMPF
Contract Specialist Bulk Petroleum Products
Reviewed by:
HEATHER M. THOMAS
Contracting Officer Bulk Petroleum Products
| 2022-04-25T09:23:26-0400 | |
| STUMPF.JACEE.E.1368162120 |
| 2022-04-25T09:37:12-0400 | |
| THOMAS.HEATHER.MARIE.1257808846 |
File details come from the government source that posted it. Updated .