Pre-proposal Conference slides rev1.pdf

Welcome to the Western Pacific (WESTPAC) Preproposal Conference Shelly Brayboy Division Chief, Bulk Petroleum Products May 1, 2025

DLA ENERGY

Western Pacific (WESTPAC) Program and Solicitation Overview

SPE602-25-R-0707

Christopher Clement Contracting officer

WARFIGHTER ALWAYSPEOPLE PRECISION POSTURE PARTNERSHIPS

WESTPAC OVERVIEW

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

Djibouti, Qatar, Oman, UAE Guam, Japan, Korea, Marshall Islands, Philippines, UK, Wake Island

PROGRAM DESCRIPTION

• Requirements:

o F76 (Fuel, Navy Distillate; 1.1A): 201,804,001 USG o JA1 (Turbine Fuel, Aviation; 1.1H): 280,358,005 USG o JP5 (Turbine Fuel, Aviation; 1.1C): 140,475,000 USG

• DELIVERY MODES:

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

Pipeline

PROGRAM DESCRIPTION

• ORDERING PERIOD:

o Date of award through December 31, 2026

• DELIVERY PERIOD:

o January 1, 2026 through December 31, 2026

• CONTRACT TYPE:

o 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:

o Full and Open Competition IAW FAR 6.1 o Restriction on requirement for DFSP Qatar where some quantity must be delivered via pipeline.

o No Set-Asides for Small Business Concerns

SOLICITATION OVERVIEW

• SOLICITATION

o SPE602-25-R-0707 o Negotiated Request for Proposal (RFP) o Published on Contract Opportunities via SAM.Gov o System for Award Management (SAM) registration required at https://sam.gov/content/home

• TIMELINE AND KEY DATES:

o Solicitation issued on April 18, 2025 o Deadline for receipt of offers is expected to be May 8, 2025, 10:00 am EDT

(“late is late!”) o Awards expected to be made on or around First week of November 2025 o Delivery period will begin January 1, 2026 https://sam.gov/content/home

SOLICITATION OVERVIEW (CONT’D)

• SOLICITATION SECTIONS:

Section B: Supplies or Services and Prices/Costs Section C: Description/Specifications/Statements of Work Section E: Inspection and Acceptance Section F: Deliveries and Performance Section G: Contract Administration Data Section I: Contract Clauses Section J: List of Attachments Section K: Representations, Certifications and Statements Section L: Instructions, Conditions and Notices Section M: Evaluation Factors for Award

OFFER SUBMISSION

• WHAT TO SUBMIT

o SF-1449 o Offeror Submission Package (OSP) o Applicable fill-in clauses/provisions o Representations and Certifications (Section K) o Quality Control Plan outline, estimated 2 pages in length (but see slide #17) o F-76 Traceability Page (*if applicable) o Supply Commitment Letter (see L704 and note below) (*if applicable) o Any applicable amendments issued. Ensure Blocks 8 and 15 are fully completed.

o Tax Representations & Certifications Doc / TAA Cert DFARS 252.225-7020 o JOINT CONTINGENCY CONTRACTING SYSTEM (JCCS) (*if applicable) o AFRICOM VENDOR VETTING SYSTEM (AVVS) (*if applicable) o See RFP SF-1449 Notes and Section L: Instructions, Conditions, and Notices to Offerors or Respondents for full details o 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.

OFFER ENTRY TOOL (OET)

• OET OFFER SUBMISSION:

o Ensure access to the OET o 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.)

o All Technical documents MUST BE submitted through OET to be rated Technically

Acceptable o Best practice: Separate individual attachments with appropriate name when uploading to

OET

EVALUATION

• BEST VALUE SOURCE SELECTION:

o Lowest Price, Technically Acceptable Evaluation (LPTA) o Section M, FAR 52.212-2 EVALUATION – COMMERCIAL ITEMS (NOV 2021) o 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:

o (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

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

o (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

• Subfactor 3: Inspection and Acceptance, Section E:

o (i) Offer meets all inspection requirements outlined in Section E Provisions (ii) Offer certifies 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, by making this selection in Section J of its Offeror Submission Package (OSP); or Providing 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 provisions E1 and/or E1.21, and making corresponding selection in Section J of its OSP

• Subfactor 4: Deliveries or Performance, Section F:

o (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 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.

Further BEM and Pricing details to be provided in upcoming presentations.

• M24 EVALUATION OF OFFERS INVOLVING FOB TANKER LOADING (ALL

PROGRAMS) (DLA ENERGY OCTOBER 2020)

o Conformed for all programs o Evaluates one-way mileage instead of two-way mileage

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

o Exceptions must be included in Section M of the OSP to be evaluated o Non-compliant exceptions will be rejected o Exceptions not explicitly accepted by Government in negotiations are considered rejected

CONTRACTOR RESPONSIBILITY

• FAR SUBPART 9.1: RESPONSIBLE PROSPECTIVE CONTRACTORS

o An affirmative responsibility determination must be made prior to award

• FAR 9.104 GENERAL STANDARDS

o Reps and Certs (SAM.Gov)

• FAR 9.106 PREAWARD SURVEYS

o Pre-award 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.

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

RESPONSIBILITY)

o Financial Pre-award Surveys may be requested o Eligibility Reviews - Debarment, Suspension, and Ineligibility

JOINT CONTINGENCY CONTRACTING SYSTEM

(JCCS)

• JOINT CONTINGENCY CONTRACTING SYSTEM (JCCS)

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

(AOR). Applicable when:

Offeror physical address located in CENTCOM Offeror is submitting FOB Destination offer to CENTCOM Offeror is submitting shipping point(s) located in CENTCOM o 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

TRADE AGREEMENTS ACT (TAA)

• TRADE AGREEMENTS ACT (FAR PART 25):

o Designated / Qualifying Countries o 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

*Several OET fields close for further revision following IPRs **Optional round(s); participation limited to offers rated Technically Acceptable

PROCUREMENTS PROCESS OVERVIEW

1) INITIAL OFFER ROUND

2) INTERIM PROPOSAL ROUND (IPR)

o 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.

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

3) FINAL PROPOSAL REVISIONS (FPR)

o Last opportunity to revise proposals to address any technical acceptability issues o 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)

o Optional Round(s), held at CO discretion o May be submitted only for Technically Acceptable offers o Multiple PRRs may be conducted o Offerors will be provided a MCBEW and a Laid Down Cost Report (LCR) o Govt will determine the lowest laid down cost and overall bid award pattern

HOW CAN OFFERORS HELP

• START EARLY!

• SUBMIT COMPLETE INITIAL PROPOSALS

o High quality, complete proposals, that fully address ALL solicitation requirements o Provide timely and complete verbal and written communications throughout process

• EXCEPTIONS/WAIVERS

o Long lead times may be needed for approval

PROGRAM PARTICIPANTS

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

Western Pacific (WESTPAC) Market Research Christopher Clement

PRICING

• Fixed Price with Economic Price Adjustment

• Economic Price Adjustment Explained o Price Escalators = Published prices used to adjust contract prices over time

(allows prices to fluctuate with the market) o Base reference price = Escalator price on the base reference date (2/2/25) o Offer price - Base reference price = Margin o Invoice price = Reference price on lift date + Margin

• Default Escalators o Published price we believe most accurately reflects price movements for that product in the specified location o 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

• Uncommon Escalators o Any escalator that differs from default escalator o Uncommon escalators not included in the solicitation may be proposed by offerors

Other assessment locations, product assessments or calculation methods

(pending approval) o Evaluation factors are applied to all offer prices based on uncommon escalators

• Evaluation Factors

• Evaluation Factors – Calculation

JP5

Jet Kero FOB

Spore Cargo (USD) Jet FOB Med Cargo

(USD)

Ref Price (12/21/21) 1.998571 1.985720

12 mo avg 1.711704 1.725125

Difference 0.286867 0.260595

Adjustment factor 0.026272

• 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

QUESTION SUBMITTALS

Interested vendors shall submit all questions to both:

Grant Wulliman, Grant.Wulliman@dla.mil,Contract Specialist Christopher Clement, Christopher.Clement@dla.mil, Contracting Officer

Questions regarding WESTPAC Solicitation SPE602-25-R-0707 mailto:Anthony.Brown@dla.mil mailto:Christopher.Clement@dla.mil