SPE60326R0517_0005 - Attachment III (DLAE MOA).pdf

MEMORANDUM OF AGREEMENT BETWEEN

THE DEFENSE LOGISTICS AGENCY ENERGY (DLA ENERGY)

AND

THE UNITED STATES ARMY GARRISON HAWAII, HAWAII (USAG-HI)

AND

THE 402D ARMY FIELD SUPPORT BRIGADE (AFSB)

FOR

PROVISION OF CONTRACTOR SERVICES FOR CONTRACTOR AND

GOVERNMENT OWNED, CONTRACTOR-OPERATED FUEL RELATED SERVICES

DLAE-MOA-SP-03-23

This is a Memorandum of Agreement between DLA Energy and the USAG-HI and 402d AFSB. When referred to collectively, DLA Energy, the USAG-HI, and 402d AFSB are referred to as the “Parties.”

1. AUTHORITIES: (See Enclosure 1 References)

2. PURPOSE:

2.1. The purpose of this Agreement is to establish the respective roles and responsibilities for DLA Energy and the USAG-HI for Contractor-Owned Contractor-Operated (COCO) and Government-Owned Contractor-Operated (GOCO) operations under a service contract that is administered by DLA Energy and located at Schofield Barracks and Wheeler AAF. This Agreement is designed to address the controls over business cycle processes rather than detailed operational requirements for USAG-HI’s fuels service requirements.

2.2. All activities under, or pursuant to, this Agreement are subject to the availability of funds; and no provision herein shall be interpreted to require the obligation or provision of funds in violation of the Anti-Deficiency Act, 31 U.S.C. Section 1341.

2.3 Under the authority delegated in DoD Manual 4140.25, "DOD Management of Energy Commodities (reference d), DLA is the Integrated Material Manager (IMM) for bulk petroleum, and plans, programs, budgets, provides funding for Class III (B) facility maintenance and repair, and environmental compliance of Class III (B) facilities in coordination with the Military Departments. This document is intended to be consistent with the above higher-level guidance and any other DoD level issuances. In the event of any inconsistency, the higher-level guidance governs.

3. RESPONSIBILITIES OF THE PARTIES:

3.1. DLA Energy will:

3.1.1. Develop the Performance Work Statement (PWS) to identify required contractor services. As part of this process, DLA Energy shall coordinate with USAG-HI, 402d AFSB and the Army Petroleum Center (APC) to ensure the PWS encompasses installation mission requirements.

3.1.2. Verify USAG-HI has completed requirements for developing leases or licenses for all COCO facilities prior to solicitation. For example: National Environmental Policy Act (NEPA) documentation, Environmental Condition of Property (ECP), and Findings of Suitability to Lease (FOSL).

3.1.3. Prior to solicitation, verify USAG-HI has complied with provisions of the

Office of Management and Budget Circular A-76 and any other applicable law, regulation and any other applicable law, regulation and policy to ensure no military and/or civilian personnel are impacted or displaced by this initiative.

3.1.4. Appoint a source selection authority (SSA) to make the “best value” contract award decision(s). Appoint a technical review board with representation from USAG-HI to evaluate proposals. This representation expense is funded by the organizations participating.

3.1.5. Appoint a qualified Contracting Officer’s Representative (COR) or qualified

Contracting Officer’s Technical Representative (COTR), and Assistant COR/COTR as appropriate, to provide contractor oversight in accordance with applicable regulations. DLA Energy has final authority in the selection of CORs/COTRs but will strongly consider candidates nominated by the 402d AFSB.

3.1.6. Appoint a qualified Property Administrator (PA) to provide oversight of government property, as appropriate. DLA Energy has final authority in the selection of the PA but will strongly consider the candidates nominated by USAG-HI.

3.1.7. Fund all costs associated with the Fuel Services Contract effort in accordance with Reference (e) or otherwise specified herein. Provide pre- and post-award contract administration functions for this effort. These funded costs do not include increased contract costs incurred as a result of changes in the lease/license/easement agreement required by USAG-Hawaii for its purposes and made after submission of final proposals.

3.1.8. Perform periodic reviews and facility oversight visits on an as-required basis.

3.1.9. Coordinate with USAG-HI, 402d AFSB and the Army Petroleum Center (APC) on all issues and contract changes/modifications affecting mission support requirements under the Fuel Services Contract(s).

3.1.10. Include contractual requirements for the COCO fuel service contractor to maintain the COCO facility to standards similar to those established for GOCO facilities.

3.1.11. Fund for fuel facility computer software enabling receipt and transmission of Enterprise Business System (EBS) data. The fuel service contractor shall be supplied computer hardware to execute transmission of EBS data. The contractor shall supply internet connection to transmit the data.

3.1.12. Include contractual requirements in the PWS for the COCO fuel facilities to comply with Federal, State and local laws and regulations, and DoD directives and guidance.

3.1.13. Include contractual requirements in the PWS for the COCO fuel facilities to comply with USAG-HI’s National Pollution Discharge Elimination System (NPDES) Permit. US Army Garrison Environmental Team may inspect the facility at any time to ensure compliance.

3.1.14. The GOCO facilities will provide inspections to be completed and sent to the Directorate of Public Works (DPW), SPCC Program Manager. Provide Ullage logs and other compliance documents as requested.

3.1.15. Collaborate with USAG-HI to ensure the contractor's COCO fuel facility designs incorporate all applicable environmental/historic preservation/facility requirements and all plans and specifications for any modifications, improvements, or additions to the leased, licensed or easement property(s) are consistent with these requirements.

3.1.16. Include contractual requirements for the fuel service contactor to comply with initiatives to reduce energy consumption and waste in design of the COCO facilities and in operation of the COCO facilities.

3.1.17. Include contractual requirements identifying the fuel service contractor’s responsibilities for response to environmental incidents at the GOCO facility as described in the installation's spill plan(s).

3.1.18. Include contractual requirements for the COCO fuel services contractor to be responsible for paying the monthly (metered) utility invoices for the COCO facilities. USAG- HI will continue to pay the utilities for the Government-Owned facilities. The contractor of the Schofield Barracks COCO facility will install utility meters. Contractor utility usage will be metered and the contractor will pay monthly utility bills. (PLEASE NOTE: This only applies to contractor COCO utilities that can be metered, otherwise the service will pay monthly utility bills.)

3.1.19. Fund all cost for demolition and environmental assessments to be performed in accordance with applicable Federal, State, or local regulatory closure requirements of the current, DLA Energy-contracted COCO fuel infrastructure and tanks upon construction and operations of the new Schofield Barracks COCO facility. DLA Energy is not responsible for funding the environmental restoration costs associated with contamination resulting from releases of fuel that is not Defense-Wide Working Capital Fund (DWWCF)-capitalized fuel (as defined in Volume 8 of reference (e)).

3.2. USAG-HI will:

3.2.1. Coordinate with DLA Energy, the 402d AFSB and APC, in the development and review of the PWS.

3.2.2. Complete a real estate instrument (lease, license or other) with the contractor at no cost to the contractor or DLA Energy for all COCO sites and verify compliance with Title 10 United States Code Section 2667 and applicable Service specific requirements relating to the COCO facility within 90 days after contract award. Complete all required real estate documentation to include NEPA, ECP, and FOSL as required.

3.2.3. Fund increased contract costs that result from changes in the lease agreement by

USAG-Hawaii for its purposes and made after submission of the final proposals.

3.2.4. Be responsible for all real estate instrument recognition and reporting requirements for the COCO assets and facilities. This includes any financial reporting requirements for lease or license recognition associated with the COCO facilities. Ensure lease or lease language is consistent with contract and provides terms for disposition of COCO facilities at end of real estate instrument.

3.2.5. Collaborate with DLA Energy to ensure the contractor’s COCO fuel facility design incorporates all applicable environmental/facility requirements and all plans and specifications for any modifications, improvements, or additions to the real property instrument property(s) to ensure they are consistent with such requirements.

3.2.6. Ensure environmental compliance, to include, but not limited to, currency of pertinent environmental plans and permits for GOCO fuel facilities. Advise and assist the Contractor in developing appropriate plans. For COCO facilities, monitor the Contractor’s environmental compliance, advise, and assist with obtaining necessary permits. The installation may defer regulatory oversight to the Federal or State permitting agency.

3.2.7. Prior to contract solicitation, complete all required companion projects and provide connections (stubs) for utility services up to the COCO site(s) real estate border(s) at no cost to DLA Energy or the contractor, including, but not limited to, electrical power, water, sewage and communications services (one LAN/one phone line) required for the operation of the fuel sites. Ensure no utilities cross through the site that would interfere with contractor operations.

3.2.8. In accordance with Reference (e) and the applicable emergency and/or spill plan(s), provide emergency response to petroleum related environmental releases (to include worst-case discharges) and spill remediation when immediate response requirements exceed contractor capability. For the COCO facilities, the installation shall develop agreements for these services and update the installation spill plan(s) and other documents, as appropriate.

3.2.9. Support DLA with estimating Imputed Costs (no cost support) related to

DWWCF Fuel Management in accordance with DoD Financial Management Regulation (FMR) and Federal Accounting Standard Advisory Board (FASAB) guidance. This support may include collaboration on the identification and development of estimations, providing supporting documentation, and reconciling and recording related party transactions.

3.3. 402d AFSB will:

3.3.1. Coordinate with USAG-HI, DLA Energy and APC in the development and review of the PWS.

3.3.2. Comply with provisions of the Office of Management and Budget Circular A-76 and any other applicable law, regulation, and policy by ensuring no military and /or civilian personnel are impacted or displaced by this initiative.

3.3.3. Defer daily operation and management of the fuel support operations to DLA Energy through its contractor. Support DLA Energy management and oversight functions (e.g., allowing access to auditors to all Class III administrative and operation areas). Assist DLA Energy in scheduling personnel for site visits (surveillance visits, audits, etc.).

3.3.4. Coordinate with DLA Energy on issues that may arise at the fuel sites to include any changes in fuel requirements, operating hours, or operational procedures due to exercises and/or deployments.

3.3.5. Nominate qualified personnel with experience in petroleum management and fuel operations as COR, to provide contractor oversight in accordance with DODI 5000.72, the Performance Work Statement (PWS) and the COR Handbook. Nominate qualified replacements, Alternate COR (ACOR) to fulfill this role in the event the primary COR is unavailable.

3.3.6. May optionally provide a qualified representative to serve as a member of the Technical Review Board and advise the Source Selection Authority.

3.3.7. Nominate qualified person to serve as PA to provide oversight of Government property in accordance with DLA Energy P-7.

3.3.8. Support DLA with estimating Imputed Costs (no cost support) related to DWWCF Capitalized Fuel Management in accordance with DoD Financial Management Regulation (FMR) and Federal Accounting Standard Advisory Board (FASAB) guidance. This support may include collaboration on the identification and development of estimations, providing supporting documentation, and reconciling and recording related party transactions.

3.3.9. Collaborate with DLA Energy to ensure the contractor’s COCO fuel facility design incorporates all applicable environmental/facility requirements and all plans and specifications for any modifications, improvements, or additions to the leased or licensed property(s) to ensure they are consistent with such requirements.

4. PERSONNEL: Each Party is responsible for all costs of its personnel, including pay and benefits, support, and travel. Each Party is responsible for supervision and management of its personnel.

5. GENERAL PROVISIONS:

5.1. POINTS OF CONTACT: The following points of contact shall be used by the Parties to communicate in the implementation of this Agreement. Each Party may change its point of contact upon reasonable notice to the other Party.

5.1.1. For DLA Energy:

5.1.1.1. Primary:

Supply Chain Management Director

(DLA Energy-FEN) Defense Logistics Agency Energy 8725 John J. Kingman Road, Suite 4828 Fort Belvoir, VA 22060-6222 Commercial Telephone: 571-767-8606, DSN 427-8606

5.1.1.2. Alternate:

Supply Chain Management Deputy Director (DLA Energy-FEN) Defense Logistics Agency Energy 8725 John Kingman Road Fort Belvoir, VA 22060-6222 Commercial Telephone: 571-767-8438, DSN 427-8438

5.1.2. For USAG-HI:

5.1.2.1. Primary:

Mr. Milton A. Rodriguez U.S. Army Garrison Hawaii 745 Wright Ave, Bldg 107 Schofield Barracks, Hawaii 96857

CML: (808) 656-1153

5.1.2.2. Alternate:

Mr. Raul M. Shuett U.S. Army Garrison Hawaii 745 Wright Ave, Bldg 107

CML: (808) 656-4150

5.1.3. For 402d AFSB:

5.1.3.1. Primary: AFSBn-HAW

LTC James R. Cook Commander, Army Field Support Battalion-Hawaii 1904 Higgins Road (East Range) Schofield Barracks, HI 96857

CML: (808) 304-2607

GOV Cell: (808) 354-2217

5.1.3.2. Alternate:

MAJ Laronda D. Davis Executive Officer, Army Field Support Battalion-Hawaii 1904 Higgins Road (East Range) Schofield Barracks, HI 96857

COM: (808) 787-1208

DSN: (315) 437-1208

5.2. CORRESPONDENCE: All official correspondence to be sent and notices to be given pursuant to this Agreement shall be addressed, if to

5.2.1. DLA Energy, to-

5.2.1.1. Defense Logistics Agency

8725 John J. Kingman Road Suite 4828 Attn: DLA Energy-FEN Fort Belvoir, VA 22060-6222

5.2.2. USAG-HI, to-

5.2.2.1. Garrison Commander

U.S. Army Garrison Hawaii 745 Wright Ave, Bldg 107

5.2.3. 402d AFSB, to –

5.2.3.1. 402d AFSB Commander 420 Palm Circle Drive, Bldg 112 Fort Shafter, HI 96858

5.3. FUNDS AND MANPOWER: This Agreement neither documents nor provides for the exchange of funds or manpower between the Parties nor does it make any commitment of funds or resources.

5.4. REVIEW OF AGREEMENT: This Agreement will be reviewed annually on or around the anniversary of its effective date for financial impacts and triennially in its entirety.

5.5. MODIFICATION OF AGREEMENT: This Agreement will be updated when there are changes relevant to the business processes, key systems, controls, evidential matter, audit communications or other requirements that would impact the terms of this Agreement. This Agreement may only be modified by the written agreement of the Parties.

5.6. DISPUTES: Any disputes relating to this Agreement shall, subject to any applicable law, Executive Order, Directive or Instruction, be resolved by consultation between the Parties.

The disputes will be handled at the lowest possible command level. Disputes that cannot be resolved at the lowest possible command level will be elevated within the respective Parties’ command structures until resolved. Disputes shall not be referred to any third party for resolution.

5.7. TERMINATION OF AGREEMENT: This Agreement may be terminated by either

Party by giving at least 180 days written notice to the non-terminating Party. The Agreement may also be terminated at any time upon the mutual written consent of the Parties. A copy shall be forwarded to the other Party per paragraph 5.1.

5.8. TRANSFERABILITY: This Agreement is not transferable except with the written consent of the Parties.

5.9. ENTIRE AGREEMENT: It is expressly understood and agreed that this Agreement embodies the entire understanding between the Parties regarding the Agreement’s subject matter.

5.10. EFFECTIVE DATE: This Agreement takes effect beginning the day after the last Party signs.

5.11. EXPIRATION DATE: This Agreement expires nine years from the effective date.

APPROVAL:

For DLA Energy For USAG-HI

BRIAN J. ANDERSON

CAPT, SC, USN

Commander, Defense Logistics Agency Energy 8725 John J. Kingman Road Fort Belvoir, VA 22060

STEVEN B. McGUNEGLE Colonel, AR Garrison Commander, U.S. Army Garrison Hawaii 745 Wright Ave, Bldg 107 Schofield Barracks, Hawaii 96857

Date Date

For 402d AFSB

COURTNEY M. SUGAI

COL, LG

Commanding, 402d AFSB 420 Palm Circle Drive, Bldg 112 Fort Shafter, HI 96858

Date

Digitally signed by

MCGUNEGLE.STEVEN.BERLE.

1155416595 Date: 2023.08.21 10:32:48 -10'00'

SUGAI.COURTNEY

.MOMIALOHA.1179

394525

Digitally signed by

SUGAI.COURTNEY.MOMIALOH

A.1179394525 Date: 2023.09.05 16:40:03 -10'00'

8/21/23

9/5/23

10 ENCLOSURE 1

ENCLOSURE 1

REFERENCES

(a) Section 2922 of title10, United States Code

(b) Section 2667 of title10, United States Code

(c) Section 1341 of title 31, United States Code

(d) DoD Manual 4140.25, “DoD Management of Energy Commodities”

(e) DLA Energy Interim Policy Implementation and Procedural Guidance

(f) DoD Instruction 4140.25, "DoD Management Policy For Energy Commodities and

Related Services" dated June 25, 2015

(g) DoD Instruction 4000.19, “Support Agreements,”, Incorporating Change 1

(h) DLA Energy Environmental Guide for Fuel Terminals

(i) AR 200-1, “Environmental Protection and Enhancement”

(j) Office of Management and Budget Circular No. A-76, “Performance of

Commercial Activities”

(k) AR 190-13 Physical Security Program

(l) AR 525-13 Antiterrorism Policy

Date2_af_date: 10/27/23