Attachment_V_-_Provision_I119.05_amendment.pdf

SPE603-18-R-0504

Attachment to Amendment 0005

A. Amendment 0005 under contract SPE603-18-R-0504 is hereby issued to include an update to Provision I119.05- INVENTORY CONTROL RECORDS AND SYSTEMS OF RECORD (GOCO) (AIR FORCE) (DLA ENERGY DEC 2017) located in Section I- Contract clauses as follows:

(a) INTRODUCTION. The Contractor shall prepare all documentation in accordance with the information and instructions provided herein, DoD 4140.25-M, DoD Management of Bulk Petroleum Products, Natural Gas, and Coal, which is available at http://www.esd.whs.mil/Directives/issuances/414025m/ DLA Energy Publications and Policy at https://dla.deps.mil/dod/dla/dlaenergy/scm/SitePages/Publications.aspx, and applicable Accountable Property System of Record (APSR) guidance. Documents and procedures are subject to change on a recurring basis and the Contractor must maintain familiarity with current guidance.

(b) AUTOMATED FUEL INVENTORY REPORTING REQUIREMENTS.

(1) The Contractor shall prepare all necessary documentation (see paragraph (b)(5)) for each transaction affecting the inventory of Government-owned products in its possession by virtue of this contract. At the end of each business day (excluding weekends and Government holidays), the Contractor shall submit transaction data to the Resource Control Center (RCC) for input into the automated inventory and accounting system(s) or applications designated/provided by the Government.

Initial training for documenting transactional data will be provided by the Government via on-site support or via electronic means, such as user manuals or on-line support/tutorials, after which the Contractor assumes all responsibility for the timeliness and accuracy of transaction data submitted by its employees. The Contractor shall prepare and report each transaction in accordance with guidance provided during the training and, thereafter, by qualified Government representatives. The Government will advise the Contractor of any changes in processing and reporting procedures. The Government reserves the right to contact the Contractor as necessary to obtain information concerning transactions.

(2) The Contractor shall record in the automatic inventory system the physical inventory quality (corrected to 60 degrees Fahrenheit) of each Government-owned product stored at the facility or provide daily inventory documentation to the RCC for input into the automated accounting system. Daily inventories shall be recorded to reflect on-hand inventories as of 2400 hours local time (discretionary system clock/calendar rollover to the next transaction date) and monthly inventory shall be recorded to reflect on-hand inventories as of 2400 hours local time (discretionary system clock/calendar rollover to the first transaction date on next month) on the last calendar day of each month. End-of-year (EOY) physical inventories shall be reported against the last calendar day of the year. EOY transactions and inventories must be provided to the RCC for input into the APSR by close of business September 30th. The Contractor shall assist the RCC to have the account reconciled in accordance with DoD 4140.25-M and/or DLA Energy P-1, Recording and Processing Inventory Transactions Transactions, available at https://dla.deps.mil/dod/dla/dlaenergy/scm/SitePages/Publications.aspx

(3) End of Fiscal Year Closeout Process. The United States Government closes its financial ledgers at midnight on September 30th. In the event the EOY closeout falls on a Saturday or Sunday, the Contractor will be required to document and provide all inventory related transactions per EOY closeout instructions that are provided.

(4) The Contractor shall assist the government in preparing inventory adjustment documents (DD Form 1348- 8, DFSP Inventory Accounting Document and End of Month Report) in accordance with the guidance provided in DLA Energy P- 1, Recording and Processing Inventory Transactions.. The Contractor shall maintain daily inventory documents which include gain/loss analysis of each tank and provide a detailed explanation to the Government for each inventory adjustment document explaining each gain and/or loss in excess of DLA Energy provided tolerances. Each document shall be signed and dated by the Contractor’s representative and the authorized Government representative and copies provided to the responsible DLA Energy Regional Office. The authorized Government representative shall indicate whether he/she concurs or non-concurs with the statement and shall provide an explanation for any non-concurrence. The term authorized Government representative, as used in this contract text, refers to the quality representative assigned to the Defense Fuel Support Point (DFSP).

Inventory Operating Gain or Loss Tolerances

Post Group

Allowable Operating Tolerance

Gain/Loss Percentage

Distillates (Diesel Fuels, Jet A1, JP5, JP8, JPTS, F76, Kerosene, other residuals, etc.)

.0025 or .25%

JP4 .003 or .3%

Aviation and Motor Gasoline (AVGAS (130), MOGAS (MUR, MUP, etc.) .005 or .5%

Fuel System Icing Inhibitor (FSII) .0025 or .25%

Lube Oils** .0025 or .25%

**NOTE: All Lube Oil transactions are to be reported at “gross” or ambient temperatures.

(5) END OF MONTH/END OF YEAR RECONCILIATION. EOM and EOY reconciliation procedures are detailed in DLA EnergyP-1, Recording and Processing Inventory Transactions. DLA Energy P-1 and end of year close out instructions are located athttps://dla.deps.mil/dod/dla/dlaenergy/scm/SitePages/Publications.aspx .

(6) The following are documentation requirements for transactions (NOTE: DD Forms are located at http://www.esd.whs.mil/Directives/forms/

TRANSACTION DOCUMENT

Appointment/Delegation Letters Formal Correspondence

RECEIPTS

Receipts from DLA Energy Procurement Contracts DD Form 250/250-1

Receipts of Shipments from a DFSP DD Form 250/250-1

DD Form 1348-7

Receipts from an end-user (with or without credit) DD Form 1898 or 1149

SHIPMENTS

Shipments from a DFSP to authorized customers See Sales

Shipments between DFSPs DD Form 250/250-1

DD Form 1348-7

INVENTORY

Physical Inventory DD Form 1348-8* and/or

DD Forms 2920, 2921, 2921C

*DD Form 1348-8 is required for end-of-month inventory reporting or transfer of account actions only.

All Inventory Adjustments DD Form 1348-8

Normal handling of variances (excessive) DD Form1348-8

Determinable losses such as spills, line breaks, non-recoverable tank bottoms, major disasters, combat losses, etc.

Condition/Identity Change DD Form 1348-8

Downgrade, regrade, or additive

ISSUES/SALES OR RETURNS/CREDITS

Issues of product from a DFSP to an end user customer DD Form 1898 or 1149 Automated data capture printout If required, supporting DLA Energy Forms

Return of product from an end user customer with credit DD Form 250/250-1 DD Form 1898 or 1149 Automated Data Capture printout

REPORT OF SURVEY

As required, when directed by the DLA Energy Accountable Officer/ DD Form 200 and supporting Contracting Officer or Property Administrator documents

(c) OTHER REQUIREMENTS.

(1) STORAGE TANK OUT OF SERVICE. Prior to removing a storage tank from service, the Contractor shall immediately notify the authorized Government representative by telephone, with follow-up confirmation in writing, providing the date and time the tank is scheduled to be removed from service. In addition, the Contractor shall provide the authorized Government representative a written estimate of unrecoverable tank bottoms. The estimate will be reviewed and approved by the authorized Government representative prior to submission to DLA Energy.

(2) UNRECOVERABLE TANK BOTTOMS. Prior to the end of the contract period, the Contractor shall provide the authorized Government representative a written estimate of unrecoverable tank bottoms. The estimate will be reviewed and approved by the authorized Government representative prior to submission to DLA Energy.

(3) REPORTING FUEL ADDITIVES AND SLOP FUEL. Government-owned fuel additives, slop fuel, and transmix stock at the DFSP will be treated as separate and distinct items, and all transactions shall be documented as outlined herein. These products will be recorded in gallons and reported under the approved National Stock Number (NSN).

(i) An auditable identity change document (DD Form 1348-8) shall be used to account for bulk FSII blended with bulk fuel and fuel downgraded to slop. Fractions of a gallon cannot be used (e.g., if 1.5 gallons of FSII were injected, report 1 gallon and record the .5 once a whole gallon is used).

(ii) Packaged additives such as COR, ASA, AS1, AD1, and CO1 shall be accounted for locally using a general log or ledger. As the additive is injected, record the amount in the log to track usage and inventory. No other documentation is required.

(4) CREATION OF SHIPMENT TRANSACTIONS. As required and directed by the Government, storage Contractors shall create electronic shipment transactions using the USBank POWERTRACK on-line freight payment system. The Government shall advise Contractors of any changes in processing and reporting procedures. Contractors shall contact the Government when additional guidance is required. CONUS storage Contractors shall maintain a daily written log of motor carrier performance to include: carrier, destination, number of trucks ordered, number of trucks furnished, and deficiencies. On the last business day of each calendar month, the Contractor shall forward a copy of the daily written logs to the DLA Energy Americas office having oversight of the motor carrier contract.

(5) STATEMENT OF AUTHORIZED SIGNATURES. The Contractor shall furnish the authorized Government representative a statement containing the names and handwritten signatures of persons authorized by the Contractor to receive and accept Government-owned product or property. The Contractor is required to provide the authorized Government representative with written notification when previously authorized persons depart (leave, quit, or transfer, etc.,) and new personnel are appointed to these positions.

(6) CHANGE IN DFSP OPERATOR. Transfer of residual inventory from expired contracts will be made regardless of whether there is a change in contractors. The transfer of DFSP product will be accomplished as follows:

(i) The outgoing Contractor, the new Contractor, and the authorized Government representative will jointly gauge all tanks, document each storage tank gauge readings on DD Forms 2920 and 2921C, and calculate the total physical inventory for each grade of fuel. Each DD Form 2920 will be signed by the incoming and outgoing Contractors and Accountable Officials and Property Administrators.

(ii) Upon completion of the inventory transfer, a summary DD Form 1348-8, reflecting both outgoing and incoming Contractor signatures verifying accuracy of the inventory summary, supported by the applicable DD Forms 2920 and 2921C, will be completed for each grade of fuel.

(iii) The following certification will be typed in the Memo block of each DD Form 1348-8 and signed by the appropriate individuals:

"The inventory recorded on this DD Form 1348-8 has been transferred from contract

(old number) to contract (new number) on (date) .

Signature (Outgoing Contractor) / (New Contractor)

Typed/Printed Name and Titles (Outgoing Contractor) / (New Contractor)

(iv) The Contractor shall provide this information to the Government Representative by telephone and by mailing one copy of each DD Form 2920, DD Form 2921C, and DD Form 1348-8.

(v) The Government Representative will mail three copies of the inventory documents covering the transfer month to the outgoing Contractor. The outgoing Contractor shall apply appropriate certification to the inventory documents and retain one copy, provide one copy to the new Contractor, and return the third copy to the Government Representative.

(7) RETENTION OF ACCOUNTABLE RECORDS AND DOCUMENTS. To satisfy auditability requirements, DFSPs shall retain a minimum of three years (current fiscal year plus two additional years) of Inventory Documentation/Data on location. Source documents and data requiring retention beyond the three year point shall be retired to a records retention center. DFSPs shall contact the DLA Energy Records Management Officer via e-mail for disposition instructions at DESCRECORDS@DLA.MIL. All records are DLA Energy-accountable records and must be retained as follows:

RECORDS RETENTION PERIOD

Appointment letters, e.g., RO/PA appointments, etc. Three years

Delegation letters Retain current letter on file at DFSP

Receipts from a DLA Energy Procurement Contract Six years, three months after the accounting month

Sales/Issues and Returns (with credit) Six years, three months after the

Government or Commercial Bills of Lading Six years, three months after the

Report(s) of Survey (ROS) and all supporting Six years, three months after Documentation completion of ROS

Returns without credit Six years, three months after the

Shipments between DFSPs Current fiscal year (FY) plus two (Shipment documentation, additional FYs e.g., DD Forms 1348-7, 250-1, etc.)

Physical inventory data/documentation Current FY plus two additional FYs

All inventory adjustment documentation Current FY plus two additional FYs mailto:DESCRECORDS@DLA.MIL

Product condition or identify changes, Current FY plus two additional FYs and supporting laboratory analysis

Contract modifications or change orders Retained locally, three years after the expiration of the current contract

B. All other terms and conditions remain the same