SPE60224R0708 WP PREPROPOSAL SLIDES.pdf

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

WARFIGHTER ALWAYS

Welcome to the Western Pacific

(WESTPAC)

Preproposal Conference

Clare Sanchez Division Chief, Bulk Petroleum Products June 4, 2024

DLA ENERGY

Western Pacific

(WESTPAC)

Program and

Solicitation Overview

SPE602-24-R-0708

Christopher W. Clement

Contracting Officer

WARFIGHTER ALWAYSWARFIGHTER ALWAYS

WESTPAC OVERVIEW

Source: WESTPAC Preproposal Conference As of May 30, 2024

Guam, Japan, Korea, Marshall Islands, Philippines, UK, Wake Island

Djibouti, Qatar, Oman, UAE

Estimated annual overseas bulk petroleum requirements in Western Pacific & Middle East

PROGRAM DESCRIPTION

Source: WESTPAC Preproposal Conference As of May 30, 2024

• REQUIREMENTS:

F76 (Fuel, Naval Distillate; 1.1A): 201,804,000 USG

JA1 (Turbine Fuel, Aviation; 1.1H): 282,320,000 USG JP5 (Turbine Fuel, Aviation; 1.1C): 90,786,000 USG

• DELIVERY MODES:

‐ Tanker (FOB Origin only), Shallow Draft Tanker, Barge, Tank Truck, Railcar and/or Pipeline

PROGRAM DESCRIPTION

• ORDERING PERIOD:

– Date of award through December 31, 2025

• DELIVERY PERIOD:

– January 1, 2025 through December 31, 2025

• CONTRACT TYPE:

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

Adjustment (EPA)

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

I86.12 DELIVERY-ORDER LIMITATIONS – SCOPE OF CONTRACT

(BULK) )

• Multiple Awards

• COMPETITION:

– Full and Open Competition IAW FAR 6.1

– No Set-Asides for Small Business Concerns

5Source: WESTPAC Preproposal Conference As of May 30, 2024

SOLICITATION OVERVIEW

• SOLICITATION:

– SPE602-24-R-0708

– Negotiated Request for Proposal (RFP)

– Published on Contract Opportunities via SAM.Gov

– System for Award Management (SAM) registration required at https://sam.gov/content/home

• TIMELINE AND KEY DATES:

– Solicitation issued on May 20, 2024

– Deadline for receipt of offers is expected to be June 10, 2024, 3:00 pm

EDT (“late is late!”)

– Awards expected to be made on or around October 31, 2024

– Delivery period will begin January 1, 2025

6Source: WESTPAC Preproposal Conference https://sam.gov/content/home

SOLICITATION OVERVIEW

(CONT’D)

7Source: WESTPAC Preproposal Conference As of May 30, 2024

• 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

OFFER SUBMISSION

• WHAT TO SUBMIT:

– SF-1449

– Offeror Submission Package (OSP)

– Applicable fill-in clauses/provisions

– Representations and Certifications (Section K)

– Quality Control Plan outline, estimated 2 pages in length (but see slide #17)

– F-76 Traceability Page

– Supply Commitment Letter (see L704 and note below)

– Any applicable amendments issued. Ensure Blocks 8 and 15 are fully completed.

– Tax Representations & Certifications Doc / TAA Cert DFARS 252.225-7020

– JOINT CONTINGENCY CONTRACTING SYSTEM (JCCS)

– AFRICOM VENDOR VETTING SYSTEM (AVVS)

See RFP SF-1449 Notes and Section L: Instructions, Conditions, and Notices to Offerors or Respondents for full details

If the offeror's source of supply is a firm or refinery independent of the offeror, the offeror may be required to submit evidence of a supply commitment from such source(s) when submitting its offer under this solicitation. Evidence of supply commitments should extend to the subcontracting level at which the product is produced.

8Source: WESTPAC Preproposal Conference

OFFER ENTRY TOOL (OET)

• OET OFFER SUBMISSION:

– Ensure access to the OET

– STRONGLY RECOMMENDED:

Enter and test the system prior to submitting offer Allow sufficient time to submit offer by the deadline (Accounts may be locked, system issues may occur, etc.)

– All Technical documents MUST BE submitted through OET to be rated

Technically Acceptable

– Best practice: Separate individual attachments with appropriate name when uploading to OET

Further OET details may be found in the solicitation attachments.

9Source: WESTPAC Preproposal Conference

EVALUATION

Source: WESTPAC Preproposal Conference As of May 30, 2024

• BEST VALUE SOURCE SELECTION:

‐ Lowest Price, Technically Acceptable Evaluation (LPTA) ‐ Section M, FAR 52.212-2 EVALUATION – COMMERCIAL ITEMS (NOV 2021) ‐ Tradeoffs will not be permitted

Factor 1: Technical Acceptability: Offer conforms to material solicitation requirements in the following subfactors:

Subfactor 1: Supplies or Services and Prices/Cost, Section B Subfactor 2: Description/Specifications/Statement of Work, Section C Subfactor 3: Inspection and Acceptance, Section E Subfactor 4: Deliveries or Performance, Section F

Factor 1: Technical Acceptability continued

• Subfactor 1: Supplies or Services and Prices/Cost, Section B:

a. Offer meets all schedule requirements in Section B

b. Offered line items meet the delivery requirements of the schedule for additives required

c. Offered line items meet the delivery requirements of the schedule for mode and FOB point

d. Offered line items meet the required minimum and maximum quantity of the schedule

• Subfactor 2: Description/Specifications/Statement of Work, Section C:

a. Offer meets all specification requirements outlined in Section C provisions

b. 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).

11Source: WESTPAC Preproposal Conference

Factor 1: Technical Acceptability continued

• Subfactor 3: Inspection and Acceptance, Section E:

a. Offer meets all inspection requirements outlined in Section E Provisions

b. Offeror demonstrates an understanding of the quality assurance requirements in Quality Assurance Provision (QAP) E1 of the solicitation by:

1) Certifying that it has a Quality Control Plan (QCP), applicable to a DLA Energy bulk petroleum contract, on file with DLA Energy that is no more than 24 months old;

or

2) providing an outline, estimated to be no more than 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.

• Subfactor 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)

12Source: WESTPAC Preproposal Conference

Factor 1: Technical Acceptability continued

• Subfactor 4: Deliveries or Performance, Section F:

a. Offer meets all requirements outlined in Section F provisions.

b. 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.

c. Offer includes completed information under Parcel Shipping Sizes and Daily Capacity for all products, modes, and shipping points offered.

d. Offer includes completed information under Barge/Tanker/Shallow Draft Tanker Loading Facility Data (if offering via Origin Barge/Tanker/Shallow Draft Tanker mode) including but not limited to map coordinates for shipping points in the proper format as specified in Attachment 12 – Addenda to FAR 52.212-1(b)(23) and Attachment 8 – Map Coordinate Desk Guide.

e. Offer includes completed information under Port Restrictions (if offering via Origin Barge/Tanker/Shallow Draft Tanker mode).

13Source: WESTPAC Preproposal Conference

Factor 2: Price

– DLA Energy uses a computer evaluation model, the Bid Evaluation Model (BEM), to analyze numerous variables, to include the offerors’ proposed prices, fuel types, minimum and maximum offer quantities, shipping locations, shipment method capabilities, customer receipt locations, receipt mode capabilities, and any other conditions included in the offerors’ proposals.

– The BEM calculates the overall pattern of delivery from offerors’ facilities to specific customer locations that is the lowest total combination of price for product and transportation.

14Source: WESTPAC Preproposal Conference

• M24 EVALUATION OF OFFERS INVOLVING FOB TANKER LOADING

(ALL PROGRAMS) (DLA ENERGY OCTOBER 2020)

– Conformed for all programs

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

• M72.10 EVALUATION OF OFFERS (EXCEPTIONS/DEVIATIONS)(BULK)

– Exceptions must be included in Section M of the OSP to be evaluated

– Non-compliant exceptions will be rejected

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

Source: WESTPAC Preproposal Conference

CONTRACTOR RESPONSIBILITY

Source: WESTPAC Preproposal Conference As of May 30, 2024

• 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.Gov)

• FAR 9.106 PREAWARD SURVEYS

‐ Preaward Surveys (may take minimum of 30-45 days to coordinate/complete)

Ensure offer information is complete so that survey requests may be conducted in a timely manner.

‐ Supply Commitment Letters may be required (see RFP L704, EVIDENCE OF

RESPONSIBILITY)

‐ Financial Preaward Surveys may be requested ‐ Eligibility Reviews - Debarment, Suspension, and Ineligibility

• JOINT CONTINGENCY CONTRACTING SYSTEM (JCCS)

– Required for awards in the U.S. Central Command (CENTCOM) Area of

Operation (AOR). Applicable when:

• Offeror physical address located in CENTCOM

• Offer is submitting FOB Destination offer to CENTCOM

• Offer is submitting shipping point(s) located in CENTCOM

– See SF1449 Note for details on JCCS website and information requirements.

Submit completed company profile and information as soon as possible, preferably with initial offer submission.

JCCS review can require 2-3 months for completion

17Source: WESTPAC Preproposal Conference

JCCS

AVVS

• AFRICOM VENDOR VETTING SYSTEM (AVVS)

– Required for awards in the U.S. Africa Command (AFRICOM) Area of

Operation (AOR). Applicable when:

• Offeror physical address located in AFRICOM

• Offer is submitting FOB Destination offer to AFRICOM

• Offer is submitting shipping point(s) located in AFRICOM

– See SF1449 Note for details on AFVV and JCCS website and information requirements.

Submit completed company profile and information as soon as possible, preferably with initial offer submission.

Review can require 2-3 months for completion

18Source: WESTPAC Preproposal Conference

TRADE AGREEMENTS ACT (TAA)

19Source: WESTPAC Preproposal Conference As of May 30, 2024

• TRADE AGREEMENTS ACT (FAR PART 25):

‐ Designated / Qualifying Countries ‐ Determination whether to both request and grant a waiver

DLA Commander approval; waiver determination follows final pricing round

Offerors may submit both TAA-compliant and TAA noncompliant offers

PROCUREMENT PROCESS OVERVIEW

20Source: WESTPAC Preproposal Conference As of May 30, 2024

Issue RFP Close RFP / Initial Offers

Initial Evaluations

Open Negotiations

Interim Prices Requested

(IPRs)* Close

Negotiations Final Proposal

Revisions Requested

Final Technical Evaluations

Price Reduction Round(s)**

TAA Waiver Determination Awards Contract

Administration

KEY

Contracting/Technical

Offeror Input *Several OET fields close for further revision following IPRs

**Optional round(s); participation limited to offers rated Technically Acceptable

PROCUREMENT PROCESS OVERVIEW

1) INITIAL OFFER ROUND

2) INTERIM PROPOSAL ROUND (IPR)

– Last opportunity for Offerors to revise or add shipping points, products, modes of delivery, sources of supply, FOB, escalators exception requests or add new bid lines.

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

3) FINAL PROPOSAL REVISIONS (FPR)

– Last opportunity to revise proposals to address any technical acceptability issues

– 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) PRICE REDUCTION ROUND(S) (PRR)

– Optional Round(s), held at CO discretion

– May be submitted only for Technically Acceptable offers

– Multiple PRRs may be conducted

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

– Govt will determine the lowest laid down cost and overall bid award pattern

Source: WESTPAC Preproposal Conference

HOW CAN OFFERORS HELP?

Source: WESTPAC Preproposal Conference As of May 30, 2024

• START EARLY!

• SUBMIT COMPLETE INITIAL PROPOSALS

– High quality, complete proposals, that fully address ALL solicitation requirements

– Provide timely and complete verbal and written communications throughout process

• EXCEPTIONS/WAIVERS

– Long lead times may be needed for approval

PROGRAM PARTICIPANTS

23Source: WESTPAC Preproposal Conference As of May 30, 2024

FORT BELVOIR SUPPORT

• DEMAND PLANNERS (-QEVS)

• TRANSPORTATION DISTRIBUTION (-FENBA)

• INVENTORY MANAGEMENT (-FENBB)

• TANKER OPERATIONS (-FENBC)

• QUALITY OPERATIONS (-AQ)

• PRODUCT TECHNOLOGY & STANDARDIZATION (-AT)

• CONTRACT SPECIALISTS/OFFICERS (-FEBC)*

• PROCUREMENT PROCESS SUPPORT (-BP)

• BUSINESS PROCESS SUPPORT ANALYSTS (BPAs) (-BP)

• COUNSEL (-G)

• FINANCE (-F8F)

• SOURCE SELECTION AUTHORITY

REGION SUPPORT

• REGIONAL CONTRACT SPECIALISTS/OFFICERS

• QUALITY ASSURANCE

• SUPPLY PLANNERS

*All offeror questions should be directed to Contracting office only

WP POINTS OF CONTACT

24Source: WESTPAC Preproposal Conference As of May 30, 2024

Clare Sanchez Division Chief DLA Energy FEBC Claire.Sanchez@dla.mil

(571) 767‐9307

Roger Wilson Contract Specialist DLA Energy FEBCA Roger.Wilson@dla.mil

(571) 767‐9310

Yuliya Kent Contract Specialist DLA Energy FEBCA yuliya.kent@dla.mil

(571) 767‐1016

Eric Harvey Contract Specialist DLA Energy FEBCA Eric.Harvey@dla.mil

(571) 767‐0518

Christopher Clement* Contracting Officer DLA Energy FEBCA Christopher.Clement@dla.mil

(571) 585‐0991

Anthony Brown Contract Specialist DLA Energy FEBCA Anthony.Brown@dla.mil

(571) 328‐2847

*The CO is the only Govt representative with authority to execute and modify contracts.

Grant Wulliman Contract Specialist DLA Energy FEBCA Grant.Wulliman@dla.mil

(571) 767‐1730 mailto:Stephany.Officer@dla.mil mailto:Roger.Gomez@dla.mil mailto:yuliya.kent@dla.mil mailto:Eric.Harvey@dla.mil mailto:Gerardo.Gomez@dla.mil mailto:Anthony.Brown@dla.mil

Western Pacific

(WESTPAC)

Market Research Christopher W. Clement

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

(01 FEB 2024)

– Offer price - Base reference price = Margin

– Invoice price = Reference price on lift date + Margin

26Source: WESTPAC Preproposal Conference

• Default Escalators

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

– WESTPAC escalators are Prior 10-Day Averages

• Average of the 10 published prices preceding the date of delivery

• The 10-day average $/barrel price is rounded to 2 decimal places, and then divided by 42 to convert it to $/gal

• JP5 & JA1: Platts Jet Kero FOB Spore Cargo

• F76: Platts Gasoil 10ppm FOB Spore Cargo

27Source: WESTPAC Preproposal Conference

• 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

Source: WESTPAC Preproposal Conference

• Evaluation Factors

29Source: WESTPAC Preproposal Conference

• 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

30Source: WESTPAC Preproposal Conference

QUESTION SUBMITTALS

Interested vendors shall submit all questions in response to SPE602-24-R-0708 to both the Contract Specialist (Anthony Brown, Anthony.Brown@dla.mil) and the Contracting Officer (Christopher Clement, Christopher.Clement@dla.mil)

31Source: WESTPAC Preproposal Conference As of May 30, 2024 mailto:Christopher.Clement@dla.mil

QUESTIONS

32Source: WESTPAC Preproposal Conference