Tab 09 Att 8 - Equal Value Exchanges of Fuel.pdf
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- Solicitation number
- SPE602-26-R-0700
- Issued by
-
Defense Logistics Agency Energy
About this file
This document is an Equal Value Exchange (EVE) Agreement template between the Defense Logistics Agency Energy (DLA Energy) and an unspecified company for fuel exchange. The agreement, authorized under 10 USC 2922e, allows for exchanging equivalent petroleum products (such as Jet A-1, JetA, JP5, and F76) while recognizing market value differences and product price volatility. The exchange will follow specific technical specifications including ASTM and military standards for fuel types, with precise quantities to be determined during agreement finalization.
Key terms include: no monetary exchanges are included in the base agreement, but quantity imbalances will be settled via monetary claims within 30 days using market reference prices; the Exchange Partner may be required to provide security through prepayment or a letter of credit; and the agreement can be amended by mutual consent. The exchange aims to help both parties leverage global physical fuel assets to meet short-term requirements, with each specific exchange developing its own detailed terms while adhering to the general framework outlined in this template.
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EQUAL VALUE EXCHANGES OF FUEL
Under the authority granted to Defense Logistics Agency Energy (DLA Energy), exchange of petroleum products on an Equal Value Exchange (EVE) may become part of this contract through mutual agreement of the parties. An EVE is defined as an exchange of equal value of petroleum products recognizing the different values associated with product in different markets and the impacts of product price volatility. This will allow the parties to take advantage of physical assets held globally to meet short fused requirements or opportunities to the mutual benefit of the parties.
Specifics of the EVE will be handled through a separate EVE agreement between the parties. The terms and conditions of this contract apply to the EVE agreement, in addition specific terms and conditions established at the time of the EVE agreement will also apply.
The following includes an EVE agreement template. This shall be referenced as a starting point;
however, each agreement will include its own terms and conditions, specific to the exchange.
Equal Value Exchange Agreement by and Between Defense Logistics Agency-Energy
And (Full Company Name)
Under the authority of 10 USC 2922e, the Defense Logistics Agency Energy (hereinafter “DLA Energy”), and COMPANY (hereinafter “Exchange Partner”) enter into an Equal Value Exchange (EVE) of Fuel. The General Terms and Conditions from contract SPE602-XX-D-XXXX pertain to this EVE agreement unless otherwise specified.
DLA Energy and Exchange Partner agree to exchange like products of equal value as follows:
Specific Terms and Conditions:
Type of Product being exchanged – From DLA Energy
Jet A-1 JetA JP5 F76 From Exchange Partner
Jet A-1 JetA JP5 F76
Specification(s) –
Jet A Requirements of ASTM D 1655 (See C16.08-1)
Jet A/A1/A50 Requirements of ASTM D1655-12 (See C16.09)
F76 Requirements of Military specification MIL-DTL-16884P dated September 26, 2017
JP5 MIL-DTL-5624X, dated Feb 12, 2024 (See C16.01)
Other:
Quantity of Product Being Exchanged – From DLA Energy to Exchange Partner: US Gallons (estimated) From Exchange Partner to DLA Energy: US Gallons (estimated)
Market Reference Price used to determine value of fuel source:
From DLA Energy to Exchange Partner fuel source is based on:
From Exchange Partner to DLA Energy fuel source is based on:
Exchange locations – From DLA Energy to Exchange Partner:
From Exchange Partner to DLA Energy:
Custody transfer point – From DLA Energy to Exchange Partner:
From Exchange Partner to DLA Energy:
Method/Mode of Shipment – From DLA Energy to Exchange Partner:
From Exchange Partner to DLA Energy:
Timeframe for exchange:
From DLA Energy to Exchange Partner: Anticipated date of delivery/receipt From Exchange Partner to DLA Energy: Anticipated date of delivery/receipt Exchange completion must occur by following date:
Loading requirements:
Additional information:
Payment Terms. Monetary exchanges between parties shall not be included as part of an EVE agreement; however, due to the nature of the petroleum business, quantities agreed upon to be exchanged may include quantity variations. Quantity imbalance between the volume lifted and volume delivered shall be settled by monetary request for payment by either party.
Monetary request for payment shall be billed as a claim by either party. The owing party shall make monetary payment within thirty (30) days of the letter of claim date.
Any tax implications will be settled at the time of the exchange, once the specific terms and conditions are confirmed. Documentation may be required from either DLA Energy or the Exchange Partner upon settlement.
Any quantity imbalances will be settled using the Market Reference Prices as indicated above on the day of delivery. If the delivery date is over a weekend the price from the Friday immediately preceding the delivery will be used.
Term. The term of this Agreement shall commence on the last date below and shall continue until the exchange completion date, subject to any earlier termination as provided herein.
Miscellaneous. Per DLA Energy’s discretion, the Exchange Partner may need to provide the following:
The Exchange Partner must agree to provide security for the exchange in the form of either prepayment or letter of credit commensurate to the market value of the fuel being exchanged. DLA will be the beneficiary of the letter of credit.
This agreement may be amended by mutual agreement of the parties.
Signed and Agreed:
FOR DLA ENERGY FOR CONTRACTOR
NAME
Title Full Company Name
STEPHANY OFFICER
Contracting Officer DLA Energy
Date: Date:
| EQUAL VALUE EXCHANGES OF FUEL |
| Specific Terms and Conditions: |
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