Attachment 12 - RMW Preproposal Slides.pdf

WARFIGHTER ALWAYS

The Nation’s Combat Logistics Support Agency E s t a b l i s h e d 1 9 6 1

DEFENSE LOGISTICS AGENCY

DLA

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Rafael Gomez, Contracting Officer January 23, 2023

Controlled by: DLA Energy/FEBB CUI Category: SSEL Distribution/Dissemination Controls: FED ONLY POC: Rafael Gomez, 571-767-9577

DLA Energy Bulk Petroleum Products

Rocky Mountain/West Coast/Offshore (RMW)

Solicitation SPE602-23-R-0702 Program and Solicitation

Overview

WARFIGHTER ALWAYSWARFIGHTER ALWAYS

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Purpose / Required Documents

2Source Selection Information (See FAR 2.101 and FAR 3.104)

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

• Locations:

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Program Description

• Requirements:

– Distillate, Naval (F76) 9140-00-273-2377, PP 2.5a: 104,194,000 USG

– Turbine Fuel, Aviation (JAA) 9130-00-359-2026, PP 2.2a: 605,006,000 USG

– Turbine Fuel, Aviation (JA1) 9130-00-753-5026, PP2.2b: 246,000,000 USG

– Turbine Fuel, Aviation (JP5) 9130-00-273-2379, PP 2.2c: 129,328,000 USG

• Methods of Delivery:

– FOB Origin and Destination

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

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Program Description

• Ordering Period:

– Date of award through October 30, 2024

• Delivery Period:

– October 1, 2023 through September 30, 2024, 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

– 21.87% of total requirement set aside for Small Business Concerns

• Products set aside: JAA & JP5.

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Solicitation Overview

• Solicitation:

– SPE602-23-R-0702

– Now on Contract Opportunities via Sam.gov

– 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:

– Final Solicitation posted on January 5, 2023

– Deadline for receipt of offers is expected to be February 6, 2023, 3:00 p.m. EST

– Open negotiations on non-technical issues expected on March 6, 2023

– Awards expected to be made on or around August 3, 2023

– Delivery period will begin October 1, 2023

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Offeror Submittals

• What To Submit:

– SF-1449

– Offeror Submission Package (OSP)

– Applicable fill-in clauses/provisions (See RFP Section J)

– Quality Control Plan Outline (estimated 2 pages in length)

– Representations and Certifications (See RFP Section Section K)

– F76 Traceability Page only applicable for F76 offers

– Supply Commitment Letter (Non-manufacturers Only) (See RFP Text 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

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Supply Commitment Letter

• Supply Commitment Letter

– Verified during negotiations

– Only applicable to Non-manufacturers

– Must include the following information (See RFP Solicitation Text L704(c))

• Volume to be supplied

• Specifications of product(s) to be supplied

• Points of delivery and period of contract performance

• Escalation provision(s) applicable to the product(s) to be supplied; and

• Supplier’s delivery and inspection terms and conditions

– Best Practice: Letter(s) should contain phone and email contact information of the signatory to verify its validity

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Price Escalators

• DLA Energy’s Default Price Escalators

– DLA Energy chooses a default price escalator for JAA, JA1 and JP5, and a default escalator for F76. Escalators in the RFP are listed in the OET.

• Alternate Price Escalators

– Defined as any escalators proposed on the basis for economic price adjustments other than the escalators listed in the solicitation

– All offers based on alternate price escalators are considered exceptions and will be evaluated for acceptance by the government prior to approval for use

– An amendment to the solicitation will be issued for approved alternate escalators

• Escalator Choice

– DLA Energy will NEVER direct the contractor as to which escalator to choose. This is a business decision alone. Example: If the offeror chooses an F76 escalator for JAA, there is nothing in the solicitation which states this is prohibited

– Please take the time to understand the escalator function (i.e. how the calculation works) ahead of using the escalator and be mindful of the products listed in the section before choosing

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Negotiations

• DLA Energy’s Intent to Award

– Government reserves the right to conduct formal discussions, if later determined by the Contracting Officer to be necessary

– Formal discussions may include:

• Formal Negotiation Letters sent via email

• Face-to-Face or Virtual Negotiation Meetings

• Teleconferences

– Please note: Responses to negotiation letter issues are to be uploaded into the OET in addition to sending as an email. The OET remains the official means of submission to be considered part of the offer (See Solicitation Note #1). If the OET is not open, it is acceptable for email alone, but must be addressed in the letter format and approved by the contracting officer.

– DLA Energy will not consider email communications alone to be part of the official proposal.

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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 (F76)

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Evaluation Cont’d

FACTOR 1/TECHNICAL ACCEPTABILITY (Cont’d):

3. Inspection and Acceptance, Section E:

(i) Offer meets all specification requirements outlined in Section E provisions,

(ii) Offeror demonstrates an understanding of the quality assurance requirements in Quality Assurance Provisions (QAP) E1 and/or E1.21 of the solicitation by:

– 1) Certifying that it has a QCP, applicable to a DLA Energy bulk petroleum contract, on file with DLA Energy that is no more than 24 months old, by making this selection in Section J of its Offeror Submission Package (OSP); or

– 2) Providing an outline, estimated two pages in length, of an example QCP describing the offeror’s current inspection system and quality assurance procedures, with references to the corresponding requirements in provisions E1, and making the corresponding selection in Section J of its OSP.

• Source

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FACTOR 1/TECHNICAL ACCEPTABILITY (Cont’d):

(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 (monthly product capacity for each source of supply and shipping points supplied by each refinery/source 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), including but not limited to map coordinates for shipping points in the proper format as specified in the Solicitation Notes, item 3, and the Map Coordinate Desk Guide, attached to the solicitation

(v) Offer includes completed information under Port Restrictions (if offering via Origin Barge/Tanker mode)

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Evaluation Cont’d

• 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.

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DEFENSE LOGISTICS AGENCY

DLA

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Jesse Hall, Office of Market Research

January 23, 2023

Rocky Mountain/West Coast/Offshore

Pricing/Escalators

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• 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 (11/1/2022)

– Offer price - Base reference price = Differential

– Invoice price = Reference price on lift date + Differential

Pricing

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Default Escalators

Published price we believe most accurately reflects price movements for the product being provided for each region

RMW default escalators are Prior Week Averages updated Tuesdays

Base Reference Date – November 1, 2022

Base Reference Prices are based on the average of daily midpoint prices from 10/24/22 – 10/28/22

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Default Escalators

Published price we believe most accurately reflects price movements for the product being provided for each region

RMW default escalators are Prior Week Averages updated Tuesdays

Base Reference Date – November 1, 2012

Base Prices are based on the average of daily midpoint prices from

10/24/22 – 10/28/22

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Default Escalators

Default escalator by region/product

West Coast Region: Alaska, Arizona, California, Hawaii, Nevada, Oregon, and

Washington

Jet Fuel = Prior weekly average of Platts Jet Fuel Pipeline LA (PJAAP00), San Francisco (PJABC00), and Seattle (PJABB00) midpoint prices

F76 = Prior weekly average of Platts ULSD Pipeline LA (POAET00), San

Francisco (POAEY00), and Seattle (AAUEX00) midpoint prices

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

Jet Fuel = Prior weekly average OF Platts Jet54 USGC Pipeline (PJABO00) midpoint prices

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Uncommon Escalators

Any escalator that differs from default escalator

Uncommon escalators not included in the solicitation may be proposed by offerors

Other assessment locations, product assessments or calculation methods (pending approval)

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

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Pricing

Evaluation Factors

PLATTS: JET

(SF+LA+SEA) AVG

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.

$3.299660

ARGUS: JET

(LA+SF) AVG 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 -0.013134 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.

$3.305660

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Pricing

Evaluation Factors – Calculation

West Coast Jet Kero Argus Jet Kero

LA/SF/Seattle AVE LA/SF Ave Pipe Ref Price (11/1/22) 3.299660 3.305660

12 mo avg 3.221098 3.213965

Difference 0.078562 0.091695

Adjustment factor -0.013134

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Pricing

Evaluation Factors – Calculation

West Coast Jet Kero Argus Jet Kero

LA/SF/Seattle AVE LA/SF Ave Pipe Ref Price (11/1/22) 3.299660 3.305660

12 mo avg 3.221098 3.213965

Difference 0.078562 0.091695

Adjustment factor -0.013134

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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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DEFENSE LOGISTICS AGENCY

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Eulanda Whiteside, RMWC Program Manager

January 23, 2023

DLA Energy Supply Planner

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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 Sam.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.

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

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Technical Evaluation

• 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)

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Technical Evaluation

A.1. Origin Offer - Mode, Min/Max Quantities, Shipping Point A.2. Destination offer - Mode, Min/Max Quantities, Shipping Point

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

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

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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 *.****** *.******

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

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

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Technical Evaluation

B. Total Additives

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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

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Technical Evaluation

F.1. Maximum Monthly Production

1. State the monthly production capacity for each source of supply:

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

F.2. Shipping Points Supplied via Source/Refinery

2. List all shipping points supplied by each refinery/source of supply:

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Product Source Of Supply Maximum Monthly Production

(USG)

JAA Refinery A, CA 5,500,000

JP5 Refinery B, WA 4,900,000

F76 Refinery C, OR 9,870,000

Product Source/Refinery Shipping Points Supported

JAA Refinery A, CA Shipping Point A, CA

JP5 Refinery B, WA Shipping Point B, WA

F76 Refinery C, OR Shipping Point C, OR

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

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Technical Evaluation

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Product/Mode Shipping Point

Days of Week Terminal Open

Hours Each Day Terminal is Open

No. Racks Max Load Per Normal Workday

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

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Technical Evaluation

G.2. Pipeline

VENDOR NOTES: Ingress Points is Watson Station, CA.

G.3. Barge/Tanker

VENDOR NOTES:

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Product/M ode

Shipping Point and Pipeline

Minimum Qty

(BBLS)

Maximum Qty

(BBLS)

No. of Days Between Lift / Delivery

JAA / P Shipping Point B, LA - KM Pipeline

75,000 200.000 7

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

(BBLS)

No. of Days Between Lift / Delivery

F76 / K Shipping Point

C, WA

125,000 235,000 7

JP5 / B Shipping Point

D, OR

25,000 50,000 3

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

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Technical Evaluation

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?

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OET – Offer Submission Data Main Menu: Parcel Shipping &

Daily Load/Move Capability Sub-Menu: Pipeline; Tanker

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Technical Evaluation

Shipping Point

Mode Cargo Capacity

(BBLS)

Mean Low Water Depth

(FT)

LOA (FT) Draft (FT)

Shipping Point C, CA

TANKER 235,000 40 600 40

Shipping Point D, WA

BARGE 50,000 35 300 38

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

BPH)

Shipping Point

C, CA

TANKER NONE 6,000

Shipping Point

D, WA

BARGE NONE 2,000

H.1. Origin Tanker/Barge Loading Facility Data OET - Offer Submission Data

Main Menu: Facilities Restrictions/Capacities Cargo Sub-Menu: Facilities Restrictions, Capacity Ballast, Map Coordinates

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Technical Evaluation

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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, CA

N/A N/A 100,000 120 feet

Shipping Point D, WA

35 FT 15 FT 25,000 100 feet

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Technical Evaluation

Shipping Point Berthing Loading

Shipping Point C, CA 24 x 7 24 x 7

Shipping Point D, WA 24 x 7 24 x 7

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

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Technical Evaluation

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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, at least 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

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, CA

2 $100.00

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Changes to E1 QAP

REFINERY LOCATION SHUTDOWN PERIOD IMPACT OF SHUTDOWN ON SUPPLY

AVAILABILITY

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

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

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L. SCHEDULE OF REFINERY SHUTDOWNS FOR

TURNAROUNDS

(1) No shutdowns planned []

(2) Shutdowns planned [X]

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

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Technical Evaluation

M.1. Clause/Provision Exception Requested Supplies or Services & Prices Section B of Solicitation

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M.2.Clause/Provision Exception Requested Descriptions/Specifications/Statement 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

M.5. Clause/Provision Exception Requested

Other Exceptions Other Exceptions

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

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Technical Evaluation

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O. General Comments Any additional applicable comments

OET - Offer Submission Data Main Menu: General Comments

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DEFENSE LOGISTICS AGENCY

DLA

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Sarah MacLean, Quality Assurance Specialist January 23, 2023

DLA Energy Quality Assurance

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Quality Operations

Quality Control Plan

• If the offeror has had a DLA Energy Bulk Contact within the last 24 months, please check the appropriate box and do not submit a QCP (Quality Control Plan) with the offer.

• If no QCP currently on file, please provide an outline (preferably just a table of contents). The outline is recommended not to exceed two pages in length and should encompass a proposed QCP describing the offeror’s current inspection system and quality assurance procedures, with references to the corresponding requirements in provisions E1 QAP.

Please check the corresponding box selection in Section J of the OSP.

• NOTE: the final QCP is to be completed after award and prior to first delivery. Any and all exceptions must be requested in the appropriate section of the OSP and will not be considered if listed in the QCP outline.

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Quality Assurance Provisions (QAP) – E QAPs

• E QAPs that Apply:

– E1 QAP applies to bulk aviation fuels, lubes, and additives, and bulk non-aviation fuels delivered by pipeline or waterborne transport. Details requirements for QCP.

– 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 – Contact information for responsible DLA region office.

– E35 – Non Conforming Supplies – Request for a deviation or waiver goes to Contracting.

– E40.01 MIRR in PIEE/WAWF – Requirements outlined for Marine, P/L, TT.

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Changes to E1 QAP

• The E1 QAP (Quality Assurance Provision) was updated in March of 2022.

• Major updates include:

o The merging of the E1.21 QAP (Contractor Inspection

Responsibilities, Fungible JAA/JA1 supply chains)

• Section a(1)-a(3) of the new E1 QAP now addresses requirements from the old E1.21 QAP

• The E1.21 QAP is no longer applicable o Requirement for QCP to be updated annually o Updates to table section, to include:

• Addition of Tables III-XV, which outline tests required for B&C series tests

• Addition of table XVII, Requirements for Preparation of Barge and Tanker Cargo Tanks

• Major changes to Table I, Sample Retention, and Table II, Min Sampling and Testing Requirements

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Break

1:30 PM – 1:35 PM

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Offer Entry Tool (OET) Overview

Darren Dunham Bulk Petroleum Procurement Analyst

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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

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Offer Entry Tool (OET)

• OET

– A web-based tool for use in submitting offers

– Replaces the hard copy offer submission package

– URL: https://offerwizard.dla.mil/epst_oet/oet.html

• Bulk vs Direct Delivery sections of OET

– Two Different business units to choose from once logged in

• Is OET required?

– Solicitation will state if OET is mandatory

– RMW, IEG, AEM, WPC and Deep Freeze use OET

– OET offers must comply with solicitation closing date/time

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

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Solicitation/OET Sequence

• Solicitation posted to https://sam.gov/content/home

• OET is opened

• Vendors receive automated email notification

• Vendor inputs offer in OET, and submits

• OET round closes

• Offers are imported into the Bulk Bid Evaluation Model (BEM)

• Review/evaluation

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https://sam.gov/content/home

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OET Rounds

INITIAL OFFERS /

OET ROUND 1

OPEN

NEGOTIATIONS

INTERIM OFFERS /

OET ROUND 2

CLOSE

NEGOTIATIONS

FINAL OFFERS /

OET ROUND 3

PRICE REDUCTION

ROUND (Optional)

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OET Rounds

• 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

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OET Access

• First, obtain a CAGE CODE for your company

– Register at SAM.gov | Home for a CAGE code

– Your 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

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https://amps.dla.mil/

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OET Access

• Next, 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 – PC&S Ground Vendor Role OET -100’

– Complete all information and submit request

– The ‘Energy OET Prod – PC&S Ground Vendor Role OET -100’ MUST BE

REVALIDATED ANNUALLY in AMPS by each user

• OET Username and password will be sent to you via email from the EPST Provisioner

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

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OET Access

• Access

– Allow 3-5 business days for OET access once AMPS request is submitted

– 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

– 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

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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!

If you do not revalidate your OET role in AMPS annually, your account will be archived by the DLA IT Department (J6)

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Initial Log In to OET

• OET URL

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

• Change Password (required every 60 days per DoD policy)

– 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

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

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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 (OSP) -‘Fill in’ clauses

- Exceptions

- Replaces the paper OSP

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OET Main Menu

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Offer Details

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Offer Submission Package

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Offer Submission Data

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Offer Submission Data

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Refinery Shutdown Info

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

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User Account Info

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Origin and Destination Offers

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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 two different products together:

– Read Section M of the solicitation

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Best 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

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OET/OSP Crosswalk

Darren Dunham Bulk Petroleum Procurement Analyst

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Reminders

• The Section headings in the OSP are duplicated in the OET fairly closely

– Ex. Parcel sizes in the OSP are entered using the “Parcel Sizes” button in the

OET

– The data in the OSP is shown in the same order as in the OET. If the vendor completes the first screen, top to bottom, then the second screen, that is the same order as the OSP

– The first screen of OET is Sections A-E of the OSP

– Second screen is Sections F- O of the OSP

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OET Main Menu

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Offer Submission Package

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Offer Details

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Offer Details

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Origin Offer Sheet

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Destination Offer Sheet

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Offer Details

Offer Details

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Offer Submission Data

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Offer Submission

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Break

2:20 PM – 2:30 PM

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BEM Overview

Darren Dunham Bulk Petroleum Procurement Analyst

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Bulk Petroleum Products

• 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 (CONUS only):

– Small Business Set-asides (Price Matching)

– HUBZone Premium Program

– 8(a) reservations

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Bid Evaluation Model

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

• Laid Down Cost 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

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BEM Data

• Enterprise Business System (EBS)

– Requirements and solicitation data

– Amendments

– Contract Awards

• Contract Information System (CIS)

– Amendments (schedule changes)

• Transportation Rates Information System (TRIS)

– Transportation rates

• Offer Entry Tool (OET)

– Initial offers and subsequent revisions

• BEM User

– Additives, Escalators, DFSP costs, Evaluation factors

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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)

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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

.04

.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:

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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)

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BEM MCBEW

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Laid Down Cost Report (LCR)

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Sequence of BEM Runs

103103

Small Business Set-Aside Run

HUBZone Run

8(A) Run

Base Run

Optimization Run

Final Forced Run

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Post Award

• Once the solicitation is awarded, award data will be published at SAM.gov | Home

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

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Best Practices

• Submitting Offers

– The vendor should complete the “Shipping Point Physical Abilities” screen first, then move on to the offer

– If an error message is received, read the message

– There are small question marks throughout the OET. Clicking on these will generate help for that screen

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Reference

• OET User Manual

– Available on the OET main page

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

– Darren Dunham, Darren.M.Dunham@dla.mil, (571) 767-0338 https://offerwizard.dla.mil/epst_oet/oet.html mailto:DESC-BTechTeam@dla.mil mailto:Darren.M.Dunham@dla.mil

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Points of Contact

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Jennifer Arthur Division Chief DLA Energy FEBBA Jennifer.Arthur@dla.mil

(571) 767-8531

Rafael Gomez Contracting Officer DLA Energy FEBBA Rafael.Gomez@dla.mil

(571) 363-7978

Norma Birch Lead Contract Specialist DLA Energy FEBA Norma.Birch@dla.mil

(571) 363-7128

Donnie Conner, II Lead Contract Specialist DLA Energy FEBBA Donnie.Conner@dla.mil

(571) 992-3642 mailto:Jennifer.Arthur@dla.mil mailto:Rafael.Gomez@dla.mil mailto:Norma.Birch@dla.mil mailto:Donnie.Conner@dla.mil