SPE603-23-R-0506 RFP.pdf

PDF 1 MB Posted Jun 13, 2023

Attached to: Contractor Owned-Contractor Operated (COCO) Services - Hachinohe Japan
Solicitation number: SPE60323R0506
Issued by: Defense Logistics Agency Energy

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Other files

File	Type	Posted
Amendment 0003.pdf	PDF	Jul 17, 2023
SPE60323R0506 AMENDMENT 0002.pdf	PDF	Jul 17, 2023
SPE60323R0506 AMENDMENT 0001.pdf	PDF	Jun 27, 2023
Attachment IV - PP Consent Form.pdf	PDF	Jun 13, 2023
Attachment V - PPQ.pdf	PDF	Jun 13, 2023
ATTACHMENT VI - PPRL.pdf	PDF	Jun 13, 2023
Attachment III - QAPS.pdf	PDF	Jun 13, 2023
ATTACHMENT I - PWS.pdf	PDF	Jun 13, 2023
ATTACHMENT II PPF.pdf	PDF	Jun 13, 2023

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SOLICITATION SPE603-23-R-0506

COCO Storage, Hachinohe, Japan

ADDITIONAL INSTRUCTIONS FOR ALL PROSPECTIVE OFFERORS

NOTE: See FAR 52.212-1 INSTRUCTIONS TO OFFERORS – COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES (MAR 2023) and FAR 52.212-2 – EVALUATION – COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES (NOV 2021) for complete instructions on how to submit a proposal.

Contents

SECTION B - SUPPLIES OR SERVICES AND PRICES OR COSTS 12

B-0001-B34.01 SERVICES TO BE FURNISHED AND PRICES (DLA ENERGY FEB 1991) 12

SECTION C - SPECIFICATIONS/SOW/SOO/PWS 14

C-0001-C19.01 SECURITY AND FIRE PROTECTION (DLA ENERGY AUG 1988) 14

C-0002-C19.04 REMOVAL OF WATER BOTTOMS (DLA ENERGY FEB 1998) 14

SECTION E – INSPECTION AND ACCEPTANCE 15

DLA ENERGY QUALITY ASSURANCE PROVISIONS (QAPS) 15

SECTION F – DELIVERIES OR PERFORMANCE 15

F-0001-F1.04 GENERAL RECEIVING AND STORING CONDITIONS (DLA ENERGY DEC 2017) 15

F-0002-F1.05 GENERAL SHIPPING CONDITIONS (DLA ENERGY OCT 1997) 18

F-0003-F1.11 DLA INTERNET BID BOARDS SYSTEM (DIBBS) (DLA ENERGY APR 2014) 22

F-0004-F1.14 DETERMINATION OF QUANTITY (STORAGE) (DLA ENERGY NOV 1997) 23

F-0005 F76 CONTRACT PERIOD/PERFORMANCE REQUIREMENTS (STORAGE) (DLA ENERGY DEC 1991)

SECTION G – CONTRACT ADMINISTRATION DATA 25

DFARS 252.232-7003 ELECTRONIC SUBMISSION OF PAYMENT REQUESTS AND RECEIVING REPORTS

(DEC 2018) 25

G-0001-G3 INVOICE NUMBERING REQUIREMENTS (DLA ENERGY AUG 1998) 31

G-0002-G21 DESIGNATION OF PROPERTY ADMINISTRATOR (DLA ENERGY MAY 2009) 31

G-0003-G22 DESIGNATION OF THE DEFENSE FUEL REGION (DLA ENERGY JUL 1997) 31

TAX EXEMPT NUMBER 31

SECTION H – SPECIAL CONTRACT REQUIREMENTS 31

H-0001 H9.01 TECHNICAL DIRECTION (DLA ENERGY FEB 1992) 31

H-0002 H11 GUARD SERVICE (DLA ENERGY MAR 1982) 32

H-0003 - H19.01 REPORTING AND CONTAINING OIL SPILLS (OVERSEAS STORAGE) (DLA ENERGY JAN 1982) 32

PROCUREMENT NOTE H14 CONTRACTOR PERSONNEL SECURITY REQUIREMENTS (DEC 2021) 32

SECTION I – CONTRACT CLAUSES 35

FAR 52.212-4 CONTRACT TERMS AND CONDITIONS – COMMERCIAL PRODUCTS AND COMMERCIAL

SERVICES (DEC 2022) 35

ADDENDUM 1 TO 52.212-4 CONTRACT TERMS AND CONDITIONS – COMMERCIAL PRODUCTS AND

COMMERCIAL SERVICES - 52.243-1 CHANGES -- FIXED PRICE (AUG 1987) ALT I (APR 1984) 42

ADDENDUM 2 TO 52.212-4 CONTRACT TERMS AND CONDITIONS – COMMERCIAL PRODUCTS AND

COMMERCIAL SERVICES - 52.215-8 ORDER OF PRECEDENCE – UNIFORM CONTRACT FORMAT (OCT 1997) 43

FAR 52.212-5 -- CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUES OR

EXECUTIVE ORDERS – COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES (MAR 2023) 44

FAR 52.217-8 OPTION TO EXTEND SERVICES (NOV 1999) 54

FAR 52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT (MAR 2000) 54

FAR 52.227-1 AUTHORIZATION AND CONSENT (JUN 2020) 54

FAR 52.229-6 TAXES - FOREIGN FIXED-PRICE CONTRACTS (FEB 2013) 55

FAR 52.232-40 PROVIDING ACCELERATED PAYMENT TO SMALL BUSINESS SUBCONTRACTORS (MAR 2023) 57

FAR 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998) 58

DFARS 252.201-7000 CONTRACTING OFFICER'S REPRESENTATIVE (DEC 1991) 59

DFARS 252.204-7020 NIST SP 800-171 DOD ASSESSMENT REQUIREMENTS (JAN 2023) 59

DFARS 252.225-7041 CORRESPONDENCE IN ENGLISH (JUN 1997) 63

DFARS 252.225-7043 ANTITERRORISM/FORCE PROTECTION FOR DEFENCE CONTRACTORS OUTSIDE

THE UNITED STATES (JUN 2015) 63

DFARS 252.232-7008 ASSIGNMENT OF CLAIMS (OVERSEAS) (JUN 1997) 64

DFARS 252.233-7001 CHOICE OF LAW (OVERSEAS) (JUN 1997) 65

DFARS 252.247-7023 TRANSPORTATION OF SUPPLIES BY SEA—BASIC (JAN 2023) 65

DLAD 52.233-9001 DISPUTES-AGREEMENT TO USE ALTERNATIVE DISPUTE RESOLUTION (JUN 2020) 68

I-0001-I1.01-4 DEFINITIONS (CONT’D) (STORAGE) (DLA ENERGY JUNE 2009) 69

I-0002-I11.01-2 ADMINISTRATIVE COST OF TERMINATION FOR CAUSE – COMMERCIAL ITEMS (DLA

ENERGY FEB 1996) 71

I-0003-I116 RESPONSIBILITY FOR GOVERNMENT-OWNED PETROLEUM PRODUCTS (DLA ENERGY JAN 2012) 72

I-0004- I119.04 INVENTORY CONTROL RECORDS AND SYSTEMS OF RECORD (DLA ENERGY AUG 2017)

I-0005-I147 DEMURAGE (DLA ENERGY NOV 1989) 78

I-0006-I180.02 ENVIRONMENTAL PROTECTION (STORAGE) (DLA ENERGY JAN 2012) 79

I-0007 I291 CONTRACTOR PUBLIC KEY INFRASTRUCTURE (PKI) IMPLEMENTATION (SEP 2009) 79

SECTION J – LIST OF ATTACHMENTS 80

ATTACHMENT I – PERFORMANCE WORK STATEMENT 80

ATTACHMENT II – PRICE PROPOSAL FORM 80

ATTACHMENT III - DLA ENERGY QUALITY ASSURANCE PROVISIONS (QAPS) 80

ATTACHMENT IV – PAST PERFORMANCE INFORMATION DISCLOSURE CONSENT FORM 80

ATTACHMENT V – PAST PERFORMANCE QUESTIONNAIRE 80

ATTACHMENT VI – PAST PERFORMANCE REFERENCE LIST 80

SECTION K – REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS 80

FAR 52.203-2 CERTIFICATE OF INDEPENDENT PRICE DETERMINATION (APR 1985) 80

FAR 52.203-11 CERTIFICATION AND DISCLOSURE REGARDING PAYMENTS TO INFLUENCE CERTAIN

FEDERAL TRANSACTIONS (SEP 2007) 81

FAR 52.203-18 PROHIBITION ON CONTRACTING WITH ENTITITES THAT REQUIRE CERTAIN INTERNAL

CONFIDENTIALITY AGREEMENTS OR STATEMENTS – REPRESENTATION (JAN 2017) 81

FAR 52.204-16 COMMERCIAL AND GOVERNMENT ENTITY CODE REPORTING (AUG 2020) 82

FAR 52.204-17 OWNERSHIP OR CONTROL OF OFFEROR (AUG 2020) 83

FAR 52.204-24 REPRESENTATION REGARDING CERTAIN TELECOMMUNICATIONS AND VIDEO

SURVEILLANCE SERVICES OR EQUIPMENT (NOV 2021) 84

FAR 52.209-2 PROHIBITION ON CONTRACTING WITH INVERTED DOMESTIC CORPORATIONS –

REPRESENTATION (NOV 2015) 87

FAR 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS (AUG 2020) 88

FAR 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (OCT 2018) 90

FAR 52.209-11 REPRESENTATION BY CORPORATIONS REGARDING DELINQUENT TAX LIABILITY OF A

FELONY CONVICTION UNDER ANY FEDERAL LAW (FEB 2016) 91

FAR 52.212-3 OFFEROR REPRESENTATIONS AND CERTIFICATIONS – COMMERCIAL PRODUCTS AND

COMMERCIAL SERVICES (DEC 2022) ALTERNATE I (OCT 2014) 92

DFARS 252.203-7005 REPRESENTATION RELATING TO COMPENSATION OF FORMER DOD OFFICIALS

(SEP 2022) 114

DFARS 252.204-7008 COMPLIANCE WITH SAFEGUARDING COVERED DEFENSE INFORMATION

CONTROLS (OCT 2016) 114

DFARS 252.204-7016 COVERED DEFENSE TELECOMMUNICATIONS EQUIPMENT OR SERVICES—

REPRESENTATION (DEC 2019) 115

DFARS 252.204-7019 NOTICE OF NIST SP 800-171 DOD ASSESSMENT REQUIREMENTS (MAR 2022) 116

DFARS 252.225-7050 DISCLOSURE OF OWNWERSHIP OR CONTROL BY THE GOVERNMENT OF A

COUNTRY THAT IS A STATE SPONSOR OF TERRORISM (DEC 2022) 118

DFARS 252.225-7974 REPRESENTATION REGARDING BUSINESS OPERATIONS WITH THE MADURO

REGIME (DEVIATION 2020-O0005) (FEB 2020) 120

DFARS 252.239-7098 PROHIBITION ON CONTRACTING TO MAINTAIN OR ESTABLISH A COMPUTER

NETWORK UNLESS SUCH NETWORK IS DESIGNED TO BLOCK ACCESS TO CERTAIN WEBSITE –

REPRESENTATION (DEVIATION 2021-O0003) (APRIL 2021) 121

K-0001-K15 RELEASE OF PRICES (DLA ENERGY MAR 2009) 121

K-0002-K33.01 AUTHORIZED NEGOTIATORS (DLA ENERGY APR 2007) 121

K-0003-K150 WIDE AREA WORKFLOW (WAWF) SUPPLEMENTAL INVOICE SUBMISSION (DLA ENERGY

MAY 2014) 121

SECTION L – INSTRUCTIONS, CONDITIONS AND NOTICES TO OFFERORS 122

FAR 52.212-1 INSTRUCTIONS TO OFFERORS –COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES

(MAR 2023), 122

ADDENDUM TO FAR 52.212-1 122

FAR 52.214-34 SUBMISSION OF OFFERS IN THE ENGLISH LANGUAGE (APR 1991) 125

FAR 52.214-35 SUBMISSION OF OFFERS IN U.S. CURRENCY (APR 1991) 125

FAR 52.216-1 TYPE OF CONTRACT (APR 1984) 125

FAR 52.222-24 PREAWARD ON-SITE EQUAL OPPORTUNITY COMPLIANCE EVALUATION (FEB 1999) 125

FAR 52.222-56 CERTIFICATION REGARDING TRAFFICKING IN PERSONS COMPLIANCE PLAN (OCT 2020)

FAR 52.233-2 SERVICE OF PROTEST (SEP 2006) 126

FAR 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998) 126

FAR 52.252-5 AUTHORIZED DEVIATIONS IN PROVISIONS (NOV 2020) 127

L-0001-L2.11-4 E-MAIL PROPOSALS (DLA ENERGY OCT 2010) 127

L-0002 - L116.01 DATA REQUIREMENTS (STORAGE) (DLA ENERGY JAN 2013) 128

SECTION M – EVALUATION FACTORS FOR AWARD 130

FAR 52.212-2 EVALUATION – COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES (NOV 2021). 130

M-0001-M72 EVALUATION OF OFFERS (EXCEPTIONS/DEVIATIONS) (DLA ENERGY APR 1997) 136

SECTION B - SUPPLIES OR SERVICES AND PRICES OR COSTS

B-0001-B34.01 SERVICES TO BE FURNISHED AND PRICES (DLA ENERGY FEB

1991)

See Section M, FAR 52.212-2, Evaluation of Factors for Award, Price Factor 3 for evaluation methodology concerning all price proposals. Reference Attachment II for price proposal form.

The services to be furnished during the period specified herein and the unit prices are as follows:

BASE PERIOD

CONTRACT LINE ITEM 0001 – OUTSIDE CONTINENTAL UNITED STATES

(OCONUS) CONTRACTOR-OWNED, CONTRACTOR-OPERATED (COCO) STORAGE

SERVICES, V20000404: (FIRM FIXED PRICE)

The Contractor shall provide OCONUS COCO bulk fuel service capabilities in accordance with (IAW) the Performance Work Statement (PWS) (Section C below, Attachment I of this solicitation) and all other terms and conditions set forth herein, during the base period of February 15, 2024 – February 14, 2029 (five (5) years). All costs associated with performing required services, including any startup costs, shall be included in the total price of CLIN 0001.

AREA(S) OF CONSIDERATION: Hachinohe Petroleum Industrial Area, Hachinohe, Japan area

LINE ITEM 0001:

PRODUCT

TYPE

SHELL

CAPACITY

(BARRELS)

FILL

CAPACITY

(BARRELS)

OCONUS

COCO

STORAGE

SERVICES

(MONTHLY

USE COCO

CHARGE)1

ANNUAL

STORAGE

USE

CHARGE

TOTAL

PRICE (5

YEARS)

1Includes initial & final shipment price. In the event of a partial month, the monthly price will be prorated.

IAW the PWS, a storage (fill) capacity of 59,000 barrels of JP8 or JA1is required. Monthly and Annual Storage Charges shall be based on this quantity. Monthly prices per tank, when added, should equate to the total monthly price. Additionally, Monthly Usage prices when multiplied by 12 months should equate to the Annual Storage Usage Charge as stated in the above chart. All dedicated line fill (if applicable) should be captured on a separate line above notated as “Dedicated Line Fill.” The Government shall have the right to utilize the total Fill Capacity of above identified tanks at no increase to the offered storage charges.

DLA Energy Quality Assurance Provision (QAP) E18 INSPECTION AND CLEANING OF BULK PETROLEUM STORAGE TANKS (DLA ENERGY FEB 2017), tanks required to be cleaned/inspected at the contractor’s expense shall be removed from/returned to revenue at a prorated amount. Prorated daily reductions/additions to line item 0001 (OCONUS COCO Storage Services) for utilization during the month in which the tank is removed from/returned to revenue for cleaning/inspection for each tank offered should be annotated in the chart below:

Tank # Monthly OCONUS

COCO Storage Service Price

Annual Storage Use Charge

Daily Reduction/Addition Per Tank When Removed

From/Returned To Revenue

IAW E18

For each full calendar month a tank is out of service and removed from revenue, line item 0001 shall reflect a reduction to $0.00 for the subject tank. If alternate tankage was not offered under QAP E18 and will not be utilized when cleaning/inspection occurs, the rates in the above chart will be utilized when subject tank is out of service. Rates above shall be determined for each tank offered under line item 0001 by utilizing the following formula:

Monthly OCONUS COCO Storage Service Price * 12 Months = Daily Reduction/Addition 365 Days

If alternate tankage is offered IAW QAP E18, include shell/fill capacities in the offer. QAP

E18 INSPECTION AND CLEANING OF BULK PETROLEUM STORAGE TANKS

(DLA ENERGY FEB 2017) is not an evaluated price factor.

SECTION C - SPECIFICATIONS/SOW/SOO/PWS

The Performance Work Statement (PWS) is incorporated by reference as if fully set forth herein.

Refer to Attachment I.

C-0001-C19.01 SECURITY AND FIRE PROTECTION (DLA ENERGY AUG 1988)

(a) The entire facility shall be enclosed by a fence suitable to deter unauthorized access. The fence shall be fitted with gates that may be padlocked when not in use.

(b) A method of visitor and entrance control will be in effect. A visitor register shall be maintained.

(c) An internal, self-powered communication system linking all critical points of the facility, capable of serving both as an alarm system and for conduct of terminal operation, will be in use.

(d) A water supply and firefighting equipment conforming to National Fire Protection Association and American Petroleum Institute standards will be maintained. At locations outside the United States, other standards may be used with prior approval of the Contracting Officer.

(e) In the event of an emergency at a CONUS COCO terminal, the Contractor shall seek the assistance of the following as appropriate: local ambulance service; local fire department; local, county, and State police; regional office of the Federal Bureau of Investigation; Secret Service;

U.S. Marshal's Service; and the Federal Emergency Management Agency.

C-0002-C19.04 REMOVAL OF WATER BOTTOMS (DLA ENERGY FEB 1998)

Storage tanks for DLA Energy use shall be equipped with positive water sumps for removal of all water bottoms. All storage tanks shall be drained of water a minimum of once each week and whenever storage tank gauging indicates water is present. (Weekly water drainage is necessary because the datum plate may not necessarily be the low point in the storage tank. Water could possibly accumulate below the datum plate and not show up in the gauging process.)

Additionally, all storage tanks shall be drained of water prior to any transfer of fuel and after a minimum of 4 hours or maximum of 24 hours settling time following each product receipt.

Storage tanks equipped with floating roofs shall be gauged for water after each rain and drained if water is found present. Product and water levels shall be gauged before and after the draining of water. Water gauges of each storage tank shall be taken and recorded each time it is gauged for product. (Each storage tank shall be equipped with a fuel/water separation system for collection of all product or water dispensed from its bottom water drain(s). This system shall have the capability to return separated product back into the same storage tank.)

SECTION E – INSPECTION AND ACCEPTANCE

DLA ENERGY QUALITY ASSURANCE PROVISIONS (QAPS)

The Quality Assurance Provisions pertaining to the inspection of services, inspection offices, and nonconforming supplies and services, are found in Attachment III of this solicitation and incorporated herein.

SECTION F – DELIVERIES OR PERFORMANCE

F-0001-F1.04 GENERAL RECEIVING AND STORING CONDITIONS (DLA ENERGY

DEC 2017)

(a) Notice will be furnished to the Contractor of upcoming product receipts. The notice will include the method of receipt, the source, grade, or type of product, and any special instructions.

(b) The Contractor shall transfer and store each grade of product in a manner that preserves the quality of the product and will prevent contamination. The responsibility for preventing contamination rests with the Contractor.

(d) Whenever a product is to be removed from a tank to accomplish cleaning or repair of the tank, or to change product, or to effect the release of the tank to the Contractor, the Contractor shall strip such tank to preclude loss of recoverable fuel. The Contractor shall provide the Quality Assurance Representative (QAR) with information pertaining to the amount of fuel deemed unrecoverable, the reason why the fuel cannot be recovered, and an analysis of the unrecovered fuel quality. All unrecoverable tank bottoms/line fill quantities will be reported to the Property Administrator for disposition instructions. Contaminated/off-specification product will be reported to the QAR in order to obtain disposition instructions. Tanks out of service for repair shall be removed from revenue until such time as they are returned to Government Service. Tanks out of service for cleaning shall be governed by the INSPECTION AND CLEANING OF BULK PETROLEUM STORAGE TANKS contract provision.

(e) Custody of product received by pipeline, and risk of loss thereof, shall pass from the carrier to the Contractor when the product passes the flange connecting the carrier's pipeline and the Contractor's pipeline.

(f) Custody of product received by transport truck, and risk of loss thereof, shall pass from the carrier to the Contractor when the product passes from the transport truck discharge hoses into the Contractor's receiving facilities.

(g) Custody of product received by tank car, and risk of loss thereof, shall pass from the carrier to the Contractor when the tank car comes to rest on the Contractor's siding.

(h) Custody of product received from tanker or barge, and risk of loss thereof, shall pass from the carrier to the Contractor when the fuel passes the vessel’s permanent hose connection.

(i) The Contractor shall be held accountable for demurrage charges arising from delay(s) in receipt by tank cars or transport trucks, except when the delay(s) are caused by reason beyond the control and without the fault or negligence of the Contractor and its subcontractors.

(j) The Contractor will prepare and process the following certificate on bond paper when it is necessary to upgrade or downgrade a product:

I certify that ______________ gallons of _____________________ have been upgraded/downgraded (quantity) (product) from ___________________ to ____________________. This action was required because (product) (product)

(enter reason for the action)

Signature of Contractor Representative

[ ] I concur with the Contractor’s certification.

[ ] I do not concur with the Contractor’s certification for the following reasons:

Signature of Quality Representative

(A receipt transaction will be reflected on the monthly stock report for the gain in product, with a shipment being reflected for the losing product.)

(k) The following subparagraphs apply only to barges and tankers.

(1) SCHEDULED ARRIVAL DATE AND BASIC ALLOWED LAY TIME.

(i) The Contractor shall be notified in advance of the scheduled arrival date. Each notice will specify the quantity to be delivered, the cargo number, the name of the vessel, and the scheduled arrival date. For tankers, the notice will also include the size of the vessel and the expected time of arrival. For tankers, the notice of delivery will be furnished at least 72 hours in advance of the scheduled arrival date; for barges, at least 48 hours in advance of the scheduled arrival date. The Government will provide the maximum notice practicable when the anticipated vessel transit time from the loading point is less than the 72/48 hours. Changes in the scheduled arrival date that will provide less than the 48 hours’ notice for barges and the 72 hours’ notice for tankers will require the verbal approval of the Contractor. This verbal approval is to be confirmed in writing as soon as practicable.

(ii) The Contractor shall provide a reachable berth, free of charge, where the vessel can be safely moored and afloat with necessary access thereto as soon as possible, but no later than, for barges, within 3 hours after issue of notice of readiness to unload, and, for tankers, within 6 hours after issue of notice of readiness, PROVIDED --

(A) If the vessel is tendered for unloading on a date earlier than the last agreed scheduled arrival date, the Government’s vessel shall be unloaded as soon as possible in its proper turn with other vessels, and lay time shall not commence until the vessel moors alongside or, for barges, 3:00 A.M. local time; for tankers, 6:00 A.M. local time, on the last agreed scheduled arrival date, whichever occurs first.

(B) If the vessel is tendered for unloading later than 12:00 noon of the day following the last scheduled arrival date, the vessel shall be unloaded in its proper turn with other vessels. Lay time shall commence when the vessel moors alongside, provided a good faith effort is made by the Contractor to moor the vessel in its turn with other vessels as loading berths become available.

(iii) Lay time shall commence either (A) at the expiration of the notice period prescribed in subparagraph (ii) above, berth or no berth, or (B) immediately when the vessel moors alongside, with or without notice of readiness, whichever occurs first.

(iv) Lay time, once started, shall continue 24 hours per day, 7 days per week, without interruption, from its commencement until unloading of the barge or tanker is completed and hoses have been disconnected.

(v) Unless otherwise provided in the Schedule, the Contractor shall be allowed and will complete unloading within lay time determined as follows:

(A) FOR BARGES: One hour for each 2,000 barrels of product to be unloaded.

(B) FOR TANKERS: Thirty-six hours of discharge of a full vessel cargo.

When partial vessel cargoes are to be unloaded, the 36 hours will be prorated based on quantities discharged in each port.

(vi) Hoses and loading arms for unloading a barge or tanker will be furnished, connected, and disconnected by the Contractor.

(2) INCREASES TO BASIC ALLOWED LAY TIME.

(i) If, after lay time commences, the conditions or facilities of the barge or tanker to be unloaded do not permit unloading, basic allowed lay time shall be increased by the duration of the delay.

(ii) If the vessel is delayed in reaching its berth and the delay is caused by the fault of the vessel, basic allowed lay time shall be increased by the duration of the delay.

(iii) If the vessel owner’s or operator’s regulations prohibit unloading at any time after lay time has commenced, the lost time shall be added to the basic allowed lay time.

(iv) If, for any reason, the Contractor is delayed in unloading the barge or tanker because of actions of a Government representative, acting under the contract, that arise through no fault or negligence on the part of the Contractor or its subcontractors, basic allowed lay time shall be increased by the duration of the delay.

(v) There will be no increase to basic allowed lay time (nor other reductions to any resulting demurrage time) for saved lay time arising out of other loadings/discharges.

(vi) Delays, after commencement of lay time, attributed to causes beyond the control and without the fault or negligence of the Contractor or the U.S. Government will result in increasing the basic allowed lay time by one half of the delay time.

(3) PAYMENT OF DEMURRAGE. For all hours of lay time which elapse in excess of the basic allowed lay time for unloading provided for by subparagraph (k)(1)(v), or as otherwise provided in the Schedule, the Contractor shall pay demurrage to the Government as follows:

(i) USS, USNS, OR TIME CHARTERED VESSELS. At the demurrage rate for the vessel loaded computed to the nearest whole hour as published by the Military Sealift Command and in effect on the date the loading of the vessel is completed.

(ii) VOYAGE CHARTERED VESSELS. At the demurrage rate cited in the charter, except that the demurrage payable by the Contractor shall in no event exceed the demurrage expense incurred by the Government under the Charter.

F-0002-F1.05 GENERAL SHIPPING CONDITIONS (DLA ENERGY OCT 1997)

(a) The Contractor will prepare the inspection and shipment documents covering deliveries made from the terminal in accordance with instructions contained in the Documentation and Product Property Control Plan. Normally, the document will consist of DD Form 250 for tank car, tank truck, pipeline, and packaged shipments, and DD Form 250-1 and ullage/innage reports in the case of barge and tanker shipments. The Contractor will distribute the DD Forms 250 and the Quality Representative (QR) will distribute the DD Forms 250-1. When the QR is not present for release or shipment of product inspected at these facilities, and the Contractor's quality control program has been approved by the responsible Government Quality Office in accordance with paragraph 246.471 of the DOD FAR Supplement, the Contractor will insert the following certification on the inspector's copy of the shipping documents:

"I certify that the above supplies were (a) in the quantity indicated, (b) taken from Government-owned and approved stocks and (c) loaded into inspected and approved containers. This shipment was released in accordance with paragraph 246.471-2 of the DoD FAR Supplement under authorization of (NAME and TITLE OF THE

AUTHORIZED REPRESENTATIVE OF THE CONTRACT ADMINISTRATION

OFFICE) in a letter dated (DATE OF AUTHORIZING LETTER). (SIGNATURE AND

TITLE OF CONTRACTOR'S DESIGNATED REPRESENTATIVE)."

(b) Shipment of products hereunder will be made only pursuant to a "release" furnished by the Product Property Administrator or his designated representative. The "release" will indicate the consignees who are authorized to issue "calls" or "orders" for shipment of product. Such "release" will be periodically furnished to the Contractor by the cognizant Product Property Administrator.

The Contractor shall inspect all shipping conveyances prior to loading to ensure that product loaded will not be lost or contaminated by the condition of the equipment. Tank truck inspection must be performed by qualified Contractor personnel. Delegation of this responsibility shall not be passed to the tank truck operator/driver. The tank truck operator/driver may be permitted to physically load the tank truck; however, the loading operation must be under the surveillance and direction of Contractor personnel. Equipment found to be unsatisfactory shall be reported as follows: (1) TANKERS AND BARGES. Report immediately by telephone to the QR; if not present, the master of the tanker or barge or to the carrier's agent or general office; (2) TANK CARS. Report to the QR and by wire (Government Rate, Collect) to Commander, Eastern Area, Military Traffic Management Command, ATTN:

MTE-INR-O, Brooklyn, NY 11250. Any shortage or overage of tank cars shall be similarly reported; (3) TRANSPORT TRUCKS. Contractor shall expeditiously report to the Traffic Manager of the appropriate Defense Fuel Region, Government QR, and to the carrier's terminal where equipment is domiciled.

(d) Except when loading barges or tankers, or making pipeline deliveries, strainers of 100 mesh or finer shall be utilized in loading aviation fuels, jet lubricating oil, and 60 mesh or finer in the case of reciprocating engine oil. Strainers shall be located as near the loading point as practicable. Contractor shall furnish, periodically inspect, clean such strainers, and repair same, if necessary, keeping a written record thereof.

(e) Contractor shall affix serially numbered seals to the dome covers of tank cars and all openings in the case of tank trucks in such a manner that entry could only be gained by breaking a seal. The Contractor will furnish such seals. Seal numbers will be indicated on shipping documents.

(f) Placards, as required by 49 CFR 172.506 and 49 CFR 172.508, shall be furnished and affixed to all tank cars and tank trucks by Contractors unless placards are already affixed.

(g) FOR TANK CARS ONLY.

(1) If Government-owned or leased tank cars are furnished, the Contractor will maintain records showing each day a car is received or forwarded by car number and will furnish the information to the Defense Fuel Regional Office upon request.

(2) Bottom outlet gaskets and manway cover gaskets, when required due to deterioration or loss, shall be furnished and applied to tank cars by the Contractor.

(3) The Contractor shall (i) inspect empty Government-owned tank cars located on the Contractor's premises and (ii) ship tank cars located on the Contractor's premises to repair facilities as directed by the Government.

(h) Unless otherwise directed, the Contractor shall prepare and distribute Government bills of lading utilized in shipments. Such bills of lading, routing instructions, and transportation assistance will be furnished by the Defense Fuel Region placing orders.

(i) The Contractor shall comply with routing instructions furnished by the Government. Such instruction will include names, routes, route order numbers, and other pertinent information.

The Contractor shall be responsible for scheduling of commercial transport trucks, trucks and trailer, and tank wagons to its plant in accordance with such routing instructions and consonant with the applicable order. The Contractor shall provide sufficient advance notice to carriers and schedule the carrier's equipment for loading. The Contractor shall reimburse the Government for any demurrage incurred as a result of improper scheduling.

(j) Custody of product shipped by pipeline, and risk of loss thereof, shall pass from the Contractor to the carrier when the product passes the flange connecting the Contractor's pipeline and the carrier's pipeline.

(k) Custody of product shipped by transport truck, and risk of loss thereof, shall pass from the Contractor to the carrier when the loaded transport truck is released for shipment by the Contractor.

(l) Custody of product shipped by tank car, and risk of loss thereof, shall pass from the

Contractor to the carrier when the loaded tank car is picked up by the carrier.

(m) Custody of product delivered to tanker or barge, and risk of loss thereof, shall pass from the Contractor to the carrier when the fuel passes the vessel’s permanent hose connection.

(n) The Contractor shall be held accountable for demurrage charges arising from delay(s) in shipment by tank cars and transport trucks except when those delays are caused by reasons beyond the control and without the fault or negligence of the Contractor and its subcontractors.

(o) The following subparagraphs only apply to barges and tankers.

(1) SCHEDULED ARRIVAL DATE AND BASIC ALLOWED LAY TIME.

(i) Notice shall be furnished to the Contractor in advance of the date on which loading is to be made, which date is hereinafter referred to as the "Scheduled Arrival Date." Each notice will specify the quantity to be loaded, the cargo number, and name of the vessel and the scheduled loading date. For tankers, notice will also include the size of the vessel and the expected time of arrival. Notice of delivery will be furnished at least 72 hours in advance of the scheduled arrival date for tankers, and at least 48 hours in advance of the scheduled arrival date for barges.

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