SPE60621R0200 OSP.pdf

SEA CARD® OPEN MARKET PROGRAM

TERMS AND CONDITIONS

SHIPS’ BUNKERS

SEA Card® Open Market

Solicitation: SPE606-21-R-0200

THE ENCLOSED TERMS AND CONDITIONS

COVER THE PERIOD:

01 October 2020 THROUGH 30 September 2021

The applicable terms and conditions are enclosed for your reference. All documents that are associated with the DLA Energy Ships’ Bunkers’ Easy Acquisition SEA Card® Open Market are located at beta.SAM.gov and the SEA Card® Online website https://www.seacardsys.com/cgi-bin/usage_acceptance.

https://www.seacardsys.com/cgi-bin/usage_acceptance

DLA Energy Bunkers SEA Card® Open Market Overview

The U.S. Government Ships bunkers Easy Acquisition Card (SEA Card®) Online Program is the Defense Logistics Agency - Energy (DLA Energy) worldwide marine fuel procurement program used by the Department of Defense (DoD) and Federal Civilian agencies. The program is based on the SEA Card® Online system, a web-based platform, which eliminates the need for paper-based processes and can be accessed at https://www.seacardsys.com.

One feature of the SEA Card® program is the Open Market purchase program that allows for marine fuel purchases by the U.S. Government in over 2,600 ports worldwide. In the event that fuel is requested at a non-contract port, registered vessels can use the SEA Card® system to create an open market fuel request and input the specification requirements, special terms and conditions for the specific request, and requested mode of delivery. Once a Request for Quotations (RFQ) is established, a competitive process in which quotes are submitted by multiple merchants will commence and an award is made to the responsible merchant who submitted the lowest priced, technically acceptable quote. After fueling occurs, the merchant inputs the transaction details into SEA Card® Online. The transaction details are then routed to the Accountable Official (AO) for approval before processing for payment. This ensures that the appropriate purchasing policies are followed and that the purchase details are correct.

The SEA Card® Online program eliminates paper-based processes as all communications regarding Open Market SEA Card® Online orders are electronic. Merchants interested in participating in the program must register with KHI by sending an email to merchant-support@seacardsys.com with the following information: Name of Company, Point of Contact, Point of Contact information (i.e. phone number and email address).

For merchants with additional questions about the Open Market SEA Card® Online program please contact the points of contact listed below:

DLA Energy Points of Contact:

Francis C. Murphy, Contracting Officer, Direct Delivery Fuels – Phone: (571) 767-8479, (No collect calls), Email: francis.c.murphy@dla.mil Tabassam Salim, Contracting Officer, Direct Delivery Fuels - Phone: (571) 767-6744, (No collect calls), Email: Tabassam.salim@dla.mil Joseph Teye-Kofi, Contracting Officer, Direct Delivery Fuels - Phone: (571) 767-8496, (No collect calls), Email: Joseph.Teye-Kofi@dla.mil Marcarthur Alexandre II, Contract Specialist, Direct Delivery Fuels – Phone: (571) 767-

5494, (No collect calls), Email: marcarthur.alexandre@dla.mil Jerome Heath, Contract Specialist, Direct Delivery Fuels – Phone: (571) 767-1770, (No collect calls), Email: Jerome.heath@dla.mil Samuel Rhodes, Contract Specialist, Direct Delivery Fuels – Phone: (571) 236-2487, (No collect calls), Email: Samuel.rhodes@dla.mil

DLA Energy Contracting Office Address:

Defense Logistics Agency Energy Bunkers/DLA Energy FEPEC Francis Murphy 8725 John J. Kingman Rd., Suite 3821 Fort Belvoir, VA 22060-6222 https://www.seacardsys.com/ mailto:merchant-support@seacardsys.com mailto:francis.c.murphy@dla.mil mailto:Tabassam.salim@dla.mil mailto:Joseph.Teye-Kofi@dla.mil mailto:Jerome.heath@dla.mil mailto:Samuel.rhodes@dla.mil

ADDITIONAL NOTES FOR MERCHANTS SUBMITTING QUOTATIONS

ON SEA Card® Online SYSTEM REQUEST FOR QUOTATIONS (RFQ):

1. By RFQ Closing, merchants must submit a copy of your fuel specifications (Specs) with the quote, including FAME and Sulfur content, for the product offered. Specs must be uploaded into the SEA Card® Online System with your quote. Specs shall either be in English or a complete English language translation must be provided. If you have difficulty uploading the documents, then please contact KHI/SEA Card® Merchant Support at merchant-support@seacardsys.com or PH: 866-308-5475 (US) or 913 217 9329 (International).

Failure to provide the fuel specifications in English and, for U.S. Navy & Army requirements, answering the three questions below (2.a-c), by the time the RFQ closes, will render your offer unacceptable.

2. In addition, offerors are required to answer the following questions for all RFQs for U.S. Navy and

Army requirements:

a) Does the fuel contain FAME? If so, what is the percentage?

b) Is the fuel offered 100% Distillate?

c) Is the fuel offered compliant with ISO 8217/ 2017 DMA (or highest standard available)?

3. Quoted prices must be all-inclusive and as-delivered, to include all applicable costs, such as duties, fees, transportation (barging or trucking) costs, profit etc. The merchant is responsible to know all costs that apply.

Cost of oil booms, if required, shall be invoiced as ancillary in the SEA Card® Online system after delivery, and should not be included in your price.

4. Each Merchant shall submit only one (1) quotation in response to each RFQ. In the event that more than one quote is submitted by a single Merchant, the Contracting Officer reserves the right to reject all but one quote from that Merchant.

5. The SEA Card® is used to procure commercial ship propulsion fuels and ancillary services incurred during fuel lift at commercial ports worldwide. As indicated on the www.seacardsys.com website, fuel purchase through the SEA Card® Online Program will be invoiced to DLA Energy and non-fuel charges such as demurrage, booming, overtime charges, and backhaul may be transacted through the SEA Card® Online Program, provided the charges are authorized by Accountable Official (AO) and will be invoiced to, and paid by, the customer (ship or service).

6. All fuel transactions are processed by DFAS Columbus as the DLA-E paying office. Transactions for fuel are transmitted to EBS. DFAS certifies the payment through EBS as the paying entity, for reimbursement to KHI. DLA Energy will subsequently also bill the customer for the fuel transactions either at standard price or cost plus.

7. All Non-fuel transactions are processed by the Customer’s respective paying office. KHI provides non-fuel transactions to the Accountable Official (AO). The AO sends the transactions to their respective paying office for payment. The AO’s paying office reimburses KHI for non-fuel transactions.

mailto:merchant-support@seacardsys.com http://www.seacardsys.com/

8. The intention of the SEA Card® Online system is to minimize discussions and encourage a prompt award.

In some cases, it may be necessary for the Contracting Officer or designee to contact the merchant to clarify or discuss a point in its quotation. However, if time is of the essence to make an award, the Contracting Officer reserves the right to reject any quotation for the following reasons:

The quote is missing the fuel specification.

The fuel specification is not in English and no translation has been provided (uploaded).

The quote is incomplete or missing required information.

The quote does not meet the solicited requirement.

There are unanswered questions and we cannot make contact with the merchant.

Unreasonable ancillary charges on top of the fuel price deemed much higher than other competitive

RFQs.

The Ship or Ordering Office has rejected any proposed exceptions or has not responded as to whether the exceptions are acceptable.

Proposed exceptions to any of the foregoing requirements will be thoroughly reviewed for acceptability.

The Contracting Officer reserves the right to reject any exceptions to the RFQ.

The Contracting Officer reserves the right to reject any quote for the above reasons or any other reason if the quote is determined not to be in the best interest of the Government.

9. The customer will determine if the fuel specification is technically acceptable based on the class of Ship requiring the fuel. The lowest-priced, technically acceptable offer on the fuel will be awarded based on price and technical capability.

10. Merchant Claims: As discussed below, Open Market merchant claims (a written demand assertion by one of the contracting parties, seeking, as a matter of right, the payment of money in a certain sum, the adjustment or interpretation of open market terms, or other relief arising under or relating to the open market purchase) shall be submitted to the Contracting Officer and their agency as listed on the Sea Card Open Market (i.e., the purchase order) in accordance with procedures set forth in paragraph 52.212-4(d), Disputes. Note, a written demand or assertion seeking payment over $100,000 is not a claim under 41 U.S.C. § 7103 until certified.

a. As provided in FAR 52.233-4, Applicable Law for Breach of Contract Claim (Oct 2004), United States law governs this contract.

b. As provided in FAR 52.212-4(d) Disputes, this Sea Card Open Market or contract is subject to 41

U.S.C. Chapter 71, Contract Disputes. Merchant claims shall be submitted in accordance with 52.212- 4(d): “Failure of the parties to this contract to reach agreement on any request for equitable adjustment, claim, appeal or action arising under or relating to this contract shall be a dispute to be resolved in accordance with the clause at FAR 52.233-1, Disputes, which is incorporated herein by reference. The contract merchant shall proceed diligently with performance of this contract, pending final resolution of any dispute arising under the contract.”

c. See F1.01-2 Bunkering (DLA Energy Jan 2012) and F16.03 Barge Unloading Conditions (Ships’ Bunkers) (DLA Energy Jan 2012) for specific types of claims, such as those for disputed detention or demurrage charges.

d. Disputes concerning quantities and non-fuel items on open market purchases. The customer disputes directly in the SEA Card® system with the Open Market merchant at www.seacardsys.com .

(1) The Accountable Official (AO) initiates a dispute within the DoD SEA Card® System, which provides instant notification e-mails to the vessel warranted Ordering Officer (OO) and the Open Market merchant.

http://www.seacardsys.com/

(2) The Contracting Officer: (a) Mediates a dispute resolution on order quantities and ancillary charges when the AO and Open Market merchant are unable to mutually resolve a delivery dispute. (b) AO requests a copy of the delivery receipt notice from the Open Market merchant.

(3) The AO prepares and processes a DD Form 1155, or Standard Form (SF) 1449, “Solicitation/Contract/Order for Commercial Items,” through the SEA Card® Program to pay the Open Market merchant the undisputed portion of the invoice.

e. Disputes concerning damages on open market purchases. The customer is responsible to dispute directly with the Open Market merchant outside of the DoD SEA Card® system.

11. U.S. NAVY Additional Terms and Conditions under Sea Card Open Market

a. Liability for Damage: The Open Market merchant shall be liable under this Sea Card Open Market award for any loss suffered by the U. S. Government including, but not limited to, loss, destruction of, or damage to, Government property or for expenses incidental to such loss, destruction, or damage to property of the U.S. Government during the performance of SEA Card® fuel orders. All damage claims will be processed between the Vessel, DLA Energy SEA Card® contracting officer, and the merchant who received the Sea Card Open Market award.

b. Cancellations: An authorized Ordering Officer and/or Accountable Official may cancel orders placed under Sea Card Open Market within the following time specified by delivery method, without incurring cancellation charges, unless otherwise provided by the merchant within the Merchant Quote comment section of SEA Card®. The DLA Energy Contracting Officer must be aware of all Cancellations of Orders.

i. Delivery into Government vessels by means of transport truck, truck and trailer, tank wagon, Marine Service Station, barge, or pipeline. No less than 24 hours prior to the specific time such delivery is required to be made.

ii. Deliveries by barge under open market. No less than 48 hours prior to the specific time such delivery is required to be made.

iii. RFQs (Request for Quotes) awarded and then cancelled by the ordering customer in the SEA Card® online system within but not limited to certain countries, which the merchant must indicate in their quote, may result in ancillary (backhaul/cancellation) /ancillary charges with all associated costs invoiced to the ordering customer's operating target (OPTAR) funds, whether the fuel is taken or not. These backhaul/cancellation/ancillary charges are passed on to the ordering customer because some countries do not allow fuel to be returned to their terminals. In addition, it is the responsibility of the Customer to provide their Husbanding Service Provider (HSP) contact information and notify the awarded open market merchant with details immediately on all SEA Card® orders.

PROVISIONS - TABLE OF CONTENTS

INDEX

Clause # Title Page No.

Note, (IBR) next to a clause or provision indicates that is has been incorporated by reference in the Section below.

SECTION C: DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C-0001 ENERGY QAP C16.23-2 COMMERCIAL MARINE GAS OIL MINIMUM REQUIREMENTS 9

(BUNKERS) (DLA ENERGY FEB 2019)

C-0002 ENERGY QAP C36-1 FUEL OIL, INTERMEDIATE, GRADE RME-180 (IFO 180) 10

(DLA ENERGY FEB 2020)

SECTION E: INSPECTION AND ACCEPTANCE

E-0001 ENERGY QAP E5.01 INSPECTION AND ACCEPTANCE OF SUPPLIES (SHIPS' BUNKERS) 10

(DLA ENERGY JAN 2013)

SECTION F: DELIVERIES OR PERFORMANCE

F-0001 F1.01-2 BUNKERING (DLA ENERGY JAN 2012) 12

F-0002 F3.01 TRANSPORT TRUCK, TRUCK & TRAILER AND/OR TANK WAGON FREE TIME 15

DETENTION RATES (BUNKERS) (DLA ENERGY JAN 2012)

F-0003 F16.03 BARGE UNLOADING CONDITIONS (SHIPS' BUNKERS) (DLA ENERGY JAN 2012) 16

FAR 52.211-16 VARIATION IN QUANTITY (APR 1984)

FAR 52.247-34 F.O.B. DESTINATION (NOV 1991) 16

SECTION G: CONTRACT ADMINISTRATION DATA

G-0001 G153 SUBMISSION OF INVOICES FOR NON-FUEL CHARGES – LOCAL PURCHASE PAYMENT 18

REQUIREMENTS (FUEL CARD SERVICES) (DLA ENERGY JUN 2005)

SECTION I: CONTRACT CLAUSES

I-0001 I1.01 DEFINITIONS (DLA ENERGY JUN 2009) 19

I-0002 I28.01 FEDERAL, STATE, AND LOCAL TAXES (DLA ENERGY NOV 2011) (DEVIATION) 20

I-0003 I28.02-2 FEDERAL, STATE, AND LOCAL TAXES AND FEES (DLA ENERGY DEC 2019) 20

I-0004 I28.03-1 TAX EXEMPTION CERTIFICATES (DLA ENERGY AUG 2003) 21

I-0005 I186 PROTECTION OF GOVERNMENT PROPERTY AND SPILL PREVENTION (DLA ENERGY FEB 2009) 21

I-0006 I190.04 SAFETY DATA SHEETS -- COMMERCIAL ITEMS (DLA ENERGY JUL 2016) 22

FAR 52.203-3 GRATUITIES (APR 1984) (IBR)

FAR 52.204-13 SYSTEM FOR AWARD MANAGEMENT MAINTENANCE (JUL 2016) 22

FAR 52.204-18 COMMERCIAL AND GOVERNMENT ENTITY CODE MAINTENANCE (JUL 2016) (IBR)

FAR 52.204-21 BASIC SAFEGUARDING OF COVERED CONTRACTOR INFORMATION SYSTEMS

(JUN 2016) (IBR)

FAR 52.204-25 PROHIBITION ON CONTRACTING FOR CERTAIN TELECOMMUNICATIONS AND VIDEO 22

SURVEILLANCE SERVICES OR EQUIPMENT (AUG 2020)

FAR 52.212-4 CONTRACT TERMS AND CONDITIONS – COMMERCIAL ITEMS (OCT 2018) 23

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

ORDERS -- COMMERCIAL ITEMS (MAR 2020) 26

FAR 52.229-3 FEDERAL, STATE, AND LOCAL TAXES (FEB 2013) 29

FAR 52.229-6 TAXES—FOREIGN FIXED-PRICE CONTRACTS (FEB 2013) 30

FAR 52.232-17 INTEREST (MAY 2014) (IBR)

FAR 52.242-13 BANKRUPTCY (JUL 1995) (IBR)

DFARS 252.203-7000 REQUIREMENTS RELATING TO COMPENSATION OF FORMER DOD OFFICIALS (SEP 2011)

(IBR)

DFARS 252.204-7012 SAFEGUARDING COVERED DEFENSE INFORMATION AND CYBER INCIDENT

REPORTING (DEC 2019) (IBR)

DFARS 252.204-7018 PROHIBITION ON THE ACQUISITION OF COVERED DEFENSE TELECOMMUNICATIONS

EQUIPMENT OR SERVICES (DEC 2019) (IBR)

DFARS 252.211-7003 ITEM UNIQUE IDENTIFICATION AND VALUATION (MAR 2016) 31

DFARS 252.225-7021 TRADE AGREEMENTS - BASIC (SEP 2019) (IBR)

DFARS 252.229-7001 TAX RELIEF – BASIC (SEP 2014) 35

DFARS 252.232-7010 LEVIES ON CONTRACT PAYMENTS (DEC 2006) (IBR)

DFARS 252.243-7002 REQUESTS FOR EQUITABLE ADJUSTMENT (DEC 2012) (IBR)

DFARS 252.247-7023 TRANSPORTATION OF SUPPLIES BY SEA-BASIC (FEB 2019) 35

DLAD 52.233-9001 DISPUTES- AGREEMENT TO USE ALTERNATIVE DISPUTE RESOLUTION (DEC 2016) (IBR)

SECTION K: REPRESENTATIONS AND CERTIFICATIONS

K-0001 K15 RELEASE OF PRICES (DLA ENERGY MAR 2009) 38

K-0002 K33.01 AUTHORIZED NEGOTIATORS (DLA ENERGY APR 2007) 38

K-0003 K86 FOREIGN TAXES (DLA ENERGY NOV 2014) 38

FAR 52.204-16 COMMERCIAL AND GOVERNMENT ENTITY CODE REPORTING (JUL 2016) (IBR)

FAR 52.204-24 REPRESENTATION REGARDING CERTAIN TELECOMMUNICATIONS AND VIDEO 38

SURVEILLANCE SERVICES OR EQUIPMENT (AUG 2020)

FAR 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (OCT 2018) 40

FAR 52.212-3 OFFEROR REPRESENTATIONS AND CERTIFICATIONS -- COMMERCIAL ITEMS (MAR 2020) 41

FAR 52.222-56 CERTIFICATION REGARDING TRAFFICKING IN PERSONS COMPLIANCE PLAN

(MAR 2015) (IBR)

FAR 52.225-25 PROHIBITION OF CONTRACTING WITH ENTITIES ENGAGING IN CERTAIN ACTIVITIES

OR TRANSACTIONS RELATING TO IRAN – REPRESENTATIONS AND CERTIFICATIONS

(OCT 2015) (IBR)

DFARS 252.204-7016 COVERED DEFENSE TELECOMMUNICATIONS EQUIPMENT OR SERVICES

REPRESENTATION – BASIC (DEC 2019) (IBR)

DFARS 252.204-7017 PROHIBITION ON THE ACQUISITION OF COVERED DEFENSE TELECOMMUNICATIONS

EQUIPMENT OR SERVICES – REPRESENTATION (DEC 2019) (IBR)

DFARS 252.225-7974 REPRESENTATION REGARDING PERSONS THAT HAVE BUSINESS OPERATIONS 54

WITH THE MADURO REGIME (DEVIATION 2020-O0005)

SECTION L: INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

FAR 52.204-7 SYSTEM FOR AWARD MANAGEMENT (OCT 2018) (IBR)

FAR 52.212-1 INSTRUCTIONS TO OFFERORS – COMMERCIAL ITEMS (MAR 2020) 54

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

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

FAR 52.216-1 TYPE OF CONTRACT (APR 1984) 57

FAR 52.233-2 SERVICE OF PROTEST (SEPT 2006) 57

DFARS 252.204-7008 COMPLIANCE WITH SAFEGUARDING COVERED DEFENSE INFORMATION

CONTROLS (OCT 2016) (IBR)

L-0001 L117 NOTIFICATION OF TRANSPORTATION COMPANY TO BE UTILIZED IN THE DELIVERY OF

PRODUCT (PC&S) (DLA ENERGY JAN 2012) 57

SECTION M: CONVERSION FACTORS

FAR 52.212-2 EVALUATION – COMMERCIAL ITEMS (OCT 2014) 57

M-0001 M55 CONVERSION FACTORS (DLA ENERGY MAR 2007) 58

M-0002 M72 EVALUATION OF OFFERS (EXCEPTIONS/DEVIATIONS) (DLA ENERGY APR 1997) 60

SECTION C: DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C-0001 ENERGY QAP C16.23-2 COMMERCIAL MARINE GAS OIL MINIMUM REQUIREMENTS (BUNKERS)

(DLA ENERGY FEB 2019)

Product Classification

NATIONAL STOCK

NUMBER PRODUCT NOMENCLATURE DLA ENERGY PRODUCT CODE UNIT OF

ISSUE

9140-01-313-7776 Marine Gas Oil MGO Gallons 9140-01-417-6843 Marine Gas Oil MGO Metric Tons

Supplies delivered under this contract, the Contractor shall conform to all Federal, State, and local environmental requirements applicable to the geographic location of the receiving activity on the date of delivery. The Contractor shall also comply with all applicable International Agreements, Treaties, Conventions, and the like to which the United States is a party or with whose terms the receiving activity has otherwise agreed to comply, including but not limited to, the requirements of MARPOL 73/78 Annex VI Regulations 14 & 18. The Contractor shall be responsible for determining the existence of all such requirements prior to the time deliveries are made. This includes delivery of fuel and documentation in a manner consistent with any existing or after-imposed Title V (Clean Air Act) Permits. The list of such requirements contained in this contract is not intended to be a complete list, and the Contractor shall be responsible for determining the existence of all such requirements. Selected regional environmental requirements are highlighted in the SPECIFICATIONS (CONT’D) clause. In the event that an International, Federal, State, and /or local environmental requirement, as identified above, is more stringent than a requirement contained in this contract, the Contractor shall deliver product(s) that complies with the more stringent requirement. Product(s) that fails to meet the more stringent requirement will be considered nonconforming supply. Product(s) to be supplied shall fully meet the requirements of the applicable specification(s). In the event that compliance with the more stringent requirement causes the contractor to incur additional costs, the contractor may request an equitable adjustment.

Product shall conform to the requirements of the latest revision of ISO 8217, Category ISO-F-DMA. In Accordance with Annex A of ISO 8217, the de minimis value of FAME shall be 0.5 volume %. Offeror/Supplier shall ensure product offered meets ISO 8217 de minimis FAME requirement. The following are additional requirements or approved modifications to specifications.

(a) SPECIFICATION MODIFICATIONS

(1) TESTING

(i) Hydrogen sulfide testing is not required

(ii) In addition to ISO 8217 approved sulfur tests, the following test methods are approved for Sulfur testing: ASTM D129, D5453, D1266, D1552, D2622, D3120, D6920, D7039, or ISO16591. See section 6.3 of ISO 8217 for referee test method.

For a total sulfur content of less than 0.05 mass % (500 ppm), the latest revision of ASTM D5453 is the recommended ASTM method.

(iii) The following test methods are approved for FAME testing per ISO 8217: IP 579 or ASTM D 7963. Test method EN 14078 is an equivalent test method for IP 579 and approved for FAME testing. See section 6.10 ISO 8217 for referee test method.

(iv) ASTM International Test Methods equivalent to ISO test methods referenced in ISO 8217, DMA testing, are approved for use.

(2) Environmental

(i) Per MARPOL 73/78 Annex VI Regulation 14, for ships operating in the most current emission control areas, the sulfur content of the fuel shall not exceed 0.10% mass (1000 ppm).

(ii) Per 40 CFR Section 80.510, the Marine Gas Oil sulfur requirement for all refineries and deliveries to ports within

Continuous United States (CONUS) shall not exceed 0.0015 mass % (15 ppm) sulfur.

(b) ADDITIVES: Marine Gas Oil shall contain no black dye or dyes.

(c) OTHER REQUIREMENTS: Unless otherwise indicated by the Contractor in writing, prior to award, and in accordance with the EVALUATION (SHIP’S BUNKERS) provision, the product offered shall fully meet the applicable specification.

The supplier shall provide to the receiving vessel a “Statutory Sample” of at least 500 mL in volume, taken from the receiving vessel’s inlet bunker manifold, together with a Bunker Delivery Note (BDN). This sample will be sealed and carry a sample tag that provides the documentation required per MARPOL 73/78 Annex VI Regulation 18

C-0002 ENERGY QAP C36-1 FUEL OIL, INTERMEDIATE, GRADE RME-180 (IFO 180)

(DLA ENERGY FEB 2020)

NATIONAL STOCK

NUMBER

PRODUCT

NOMENCLATURE

DLA ENERGY PRODUCT

CODE

UNIT OF

ISSUE

9140-01-271-5280 Fuel Oil, Intermediate 180 Gallons

Supplies delivered under this contract, the Contractor shall conform to all International, Federal, State, and local environmental requirements applicable to the geographic location of the receiving activity on the date of delivery. The Contractor shall also comply with all applicable International Agreements, Treaties, Conventions, and the like to which the United States is a signatory or with whose terms the receiving activity has otherwise agreed to comply, including but not limited to, the requirements of MARPOL 73/78 Annex VI Regulations 14 and 18. The Contractor shall be responsible for determining the existence of all such requirements prior to the time deliveries are made. This includes delivery of fuel and documentation in a manner consistent with any existing or after-imposed Title V (Clean Air Act) Permits. The list of type requirements contained in this contract is not intended to be a complete list, and the Contractor shall be responsible for determining the existence of all such requirements. Selected regional environmental requirements are highlighted in the SPECIFICATIONS (CONT’D) clause. In the event that an International, Federal, State, and/or local environmental requirement, as identified above, is more stringent than a requirement contained in this contract, the Contractor shall deliver product(s) that complies with the more stringent requirement. Product(s) that fails to meet the more stringent requirement will be considered nonconforming supply. Product(s) to be supplied shall fully meet the requirements of the applicable specification(s). In the event that compliance with the more stringent requirement causes the contractor to incur additional costs, the contractor may request an equitable adjustment.

Product shall conform to the latest revision of ISO 8217 for Intermediate Fuel Oil, RME, 180.

(a) APPROVED ALTERNATE TEST METHODS. Other than the test methods called for in ISO 8217, these test methods, below, may be used to determine the following requirements:

REQUIREMENTS TEST METHOD

Density @15oC, kg/m3 ASTM D 4052 Carbon Residue ASTM D 4530 Vanadium, mg/kg ASTM D 5863 Aluminum plus silicon, mg/kg ASTM D 5184

(b) ENVIRONMENTAL: As of 01 JAN 2020, under the requirements listed in MARPOL 73/78 Annex VI Regulation 14, RME-180 purchased under DLA Energy programs shall not exceed a revised maximum sulfur weight percent of 0.5 (% m/m). This requirement does not supersede any stricter Federal, State, and local environmental requirements.

(c) Unless otherwise indicated by the Contractor in writing, prior to award, and in accordance with the EVALUATION (SHIPS’ BUNKERS) provision, product offered shall be required to fully meet the applicable specifications. The supplier shall provide to the receiving vessel a “Statutory Sample” of at least 400-milliters in volume, taken from the receiving vessel’s inlet bunker manifold, together with a Bunker Delivery Note (BDN). This sample will be sealed and carry a sample tag that provides the documentation required per MARPOL 73/78 Annex VI Regulation 18.

SECTION E: INSPECTION AND ACCEPTANCE

E-0001 ENERGY QAP E5.01 INSPECTION AND ACCEPTANCE OF SUPPLIES (SHIPS' BUNKERS) (DLA ENERGY

JAN 2013)

(a) INSPECTION.

(1) The Contractor shall maintain a written inspection system acceptable to the Government covering all supplies under this contract and shall tender to the Government, for acceptance, only supplies that have been found by the Contractor to conform to the contract requirements. A copy of the written inspection system shall be in English. As part of that system, the Contractor shall be able to provide, for review by the Government, laboratory test data from its suppliers verifying that the supplies being furnished meet the contract requirements. The Government has the right to perform reviews and evaluations, as reasonably necessary, to ascertain compliance with this paragraph. Such reviews and evaluations by the Government shall be conducted in a manner that does not unduly delay contract performance. The right of review, whether exercised or not, does not relieve the Contractor of its obligations under the contract.

(2) The Government has the right to inspect and/or test all supplies called for by the contract, to the extent practicable, at any time or place prior to acceptance. Unless otherwise noted, inspection will be performed by the receiving activity based on documents required to be supplied by the Contractor at the time of delivery. The Government assumes no contractual obligation to perform any inspection or test for the benefit of the Contractor, unless specifically set forth in this contract.

(3) The Government may require the Contractor to provide the following samples of fuel being supplied under this contract, free of cost to the Government, to a testing location to be identified at the time of the request. The samples may be requested by the Contracting Officer or the Quality Manager, as identified in the LIST OF INSPECTION OFFICES FOR DLA ENERGY CONTRACTS contract provision. The conditions under which the sample shall be taken (i.e. location, type) shall be included in the request and any testing performed shall be at the expense of the Government.

(i) A one (1) gallon sample under each line item. Requests for this type of sample shall be limited to no more than six (6) per year (per line item) during the life of the contract. However, if the Government deems that there is an issue with product quality under a specific line item, the Government reserves the right to increase the total number of samples to a maximum of twelve

(12) per year for that line item.

(ii) A five (5) gallon sample under each line item. These samples are collected for the purpose of gathering data on world-wide bunker quality. Requests of this type shall be limited to no more than two (2) (per line item) per contract period. These samples shall be shipped to the following address:

ATTN: AIR 4.4.5 FUEL SAMPLE

NAVAL AIR STATION PATUXENT RIVER

HAZMART BUILDING 2385

22680 HAMMOND ROAD

PATUXENT RIVER, MD 20670-1534

(4) If the Government performs inspection or test on the premises of the Contractor or a subcontractor, the Contractor shall furnish, and shall require subcontractors to furnish, at no increase in contract price, all reasonable facilities and assistance for the safe and convenient performance of these duties.

(5) The Government may perform quality validation on samples taken at the point of acceptance, i.e., ship’s manifold.

In cases where on-site testing is available, acceptance shall not be conclusive until the results of the on-site tests confirm that the product conforms to the contract requirements. One representative sample, typically three (3) gallons, will be taken and split into three

(3) sealed one (1) gallon samples. One sample shall be offered to the Contractor’s representative. One sample shall be submitted by the Contractor’s representative, at no cost to the Government, to a Government approved laboratory for analysis. The remaining sample shall be retained by the Contractor’s representative for a minimum of ninety (90) days. Except as otherwise provided in the contract, the Government shall bear the expense of Government inspections or tests made at other than the Contractor’s or subcontractor’s facilities. In the event the test results on the sample taken at the acceptance point do not conform to contract specifications, the Government may exercise its rights and direct the Contractor to immediately remove the product at the Contractor’s expense. Detainment of the Government vessel for the removal of nonconforming product will be at the Contractor’s expense.

(6) When supplies are not ready for inspection or test at the time specified by the Contractor, the Contracting Officer may charge the Contractor for any additional cost incurred by the Government related to that inspection or test. The Contracting Officer may also charge the Contractor for any additional cost incurred by the Government when prior rejection makes reinspection or retest necessary.

(7) If this contract provides for the performance of Government quality assurance at source, and if requested by the Government, the Contractor shall furnish advance notification of the time when Contractor inspections or tests will be performed in accordance with the terms and conditions of the contract and when the supplies will be ready for Government inspection. The Government's request shall specify the period and method of the advance notification and the Government representative to whom it shall be furnished.

(8) The contractor may provide transportation to/from/between contractor facilities and operations to a DLA Energy representative performing official duties relating to the administration of the contract and the contract price includes any such transportation.

(9) A copy of the latest full specification analysis for the shipping tank shall be provided to the customer at the time of each delivery. If the latest shipping tank analysis is not available, the full specification certificate of quality for the most recent product delivered into that shipping tank shall be provided. Additionally, when product is supplied by barge, the following analysis results shall be provided on a barge composite sample: Appearance, Color, Density, and Flash Point.

(b) ACCEPTANCE. Acceptance of the supplies furnished hereunder will take place at destination notwithstanding that inspection by the Government may take place elsewhere prior to acceptance.

SECTION F: DELIVERIES OR PERFORMANCE

F-0001 F1.01-2 BUNKERING (DLA ENERGY JAN 2012)

(a) DELIVERY CONDITIONS.

(1) Unless otherwise specified, all items require delivery f.o.b. destination by means of transport truck, truck and trailer, tank wagon, pipeline, or barge under the following conditions:

(i) Delivery By Pipeline (ex-pipe at pier or wharf). Into Government vessel at a pier or wharf where the following conditions can be met: Pier must accommodate vessels up to 30 feet in draft, 600 feet in length with a displacement of approximately 9,000 tons. Pier must be serviced by a pipeline capable of delivering bunker fuel into the Government vessel at approximately 2,000 barrels per hour. The Contractor will provide a minimum 100-foot length of 4- to 6-inch hose and line handlers.

(ii) Delivery By Barge. Barge capacity of 2,000 - 5,000 barrels with pump/motor to discharge cargo to the Government vessel at approximately 1,500 to 2,000 barrels per hour. The Contractor must provide a clean barge suitable for loading bunker fuel. The Contractor will provide a minimum 100-foot length of 4- to 6-inch hose. The Contractor shall not be required to provide any additional hose unless requested by the receiving activity and accepted by the Contractor. The Contractor shall not be required to hook up hoses with the receiving conveyance prior to scheduled delivery time. When delivery of residual fuels is by barge, the Contractor may deliver using a heated barge for ease of flow.

(iii) Delivery By Tank Truck, Truck And Trailer, Or Tank Wagon. Truck delivery to a berthing pier, provided the berthing pier which must accommodate a Government vessel up to 30 feet in draft, 600 feet in length with a displacement of 9,000 tons. When delivery is made by tank wagon, such wagon shall be equipped with pump, meter, and a minimum of 100 feet (30 meters) of hose. Where delivery is made by transport truck or truck and trailer, such delivery equipment shall be equipped with a minimum of 15 feet of hose. At the Contractor’s option, a transport truck may be substituted for items requiring delivery by truck and trailer.

(iv) Connections. Pump and hose connections to fit requesting vessels shall be provided by the Contractor for each delivery.

(v) Order Size Capacity. Ordered delivery quantities may require multiple delivery conveyances and/or return trips at less than a full load to satisfy the Government's requirement.

(2) Unless otherwise specified in the Schedule and/or contract, delivery into Government vessels (to include dredges & barges) by means of transport truck, truck and trailer, tank wagon, or pipeline shall be made at the specific time specified in the order, provided that such order shall have been received by the Contractor at least 24 hours prior to the specific time such delivery is required to be made. Deliveries by barge shall be made at the specific time specified in the order, provided that such order shall have been received by the Contractor at least 48 hours prior to the specific time such delivery is required to be made.

However, if an item in the Schedule annotates a specific response/delivery time restriction/requirement, the Schedule shall dictate.

Also see the SUPPLIES TO BE FURNISHED (SHIPS' BUNKERS) contract provision.

(3) The Contractor shall provide properly maintained delivery equipment and properly trained delivery personnel to reasonably assure that delivery can be made without damage to vegetation and asphalt pavement adjacent to vessels being bunkered.

The Contractor's delivery personnel who have not exercised reasonable care and delivery equipment which is poorly maintained, may be refused entrance to the bunkering location by the installation Commander, the port authorities and/or US Coast Guard. The Contractor shall present delivery equipment and product in such condition at destination so as to permit complete off-loading within the prescribed lay-time and applicable free time. All delivery equipment and personnel must meet all environmental requirements for over water (marine) fuel deliveries. This is to include the requirements to have an approved U.S. Coast Guard Oil Response Plan for domestic ports.

(4) Unless otherwise specified in the Schedule and/or contract, orders placed under this contract may be cancelled by an authorized Ordering Officer within the following time period without incurring cancellation charges—

(i) Delivery into Government vessels (to include dredges and barges) by means of transport truck, truck and trailer, tank wagon, Marine Service Station, or pipeline: No less than 24 hours prior to the specific time such delivery is required to be made;

(ii) Deliveries by barge: No less than 48 hours prior to the specific time such delivery is required to be made;

or

(iii) No less than the minimum delivery notice as stated in the Schedule, if different from the above.

(b) LOADING TEMPERATURE. Product offered as bunkers to U.S. Navy and Coast Guard Vessels (excluding those controlled by the Military Sealift Command) shall not exceed 49 degrees Celsius (120 degrees Fahrenheit) temperature at time of delivery. On all other bunkerings the product shall be at least 5.5 degrees Celsius (10 degrees Fahrenheit) below the flash point of the product and in no case higher than 66 degrees Celsius (150 degrees Fahrenheit) if the tanks are uncoated, or 57 degrees Celsius (135 degrees Fahrenheit) if coated; PROVIDED, however, that in no event shall the difference between the temperature of the product entering the tanker manifold and the recorded temperature of the seawater at the tanker's condenser intake exceed 39 degrees Celsius (70 degrees Fahrenheit); PROVIDED, further, that the Master of the vessel may authorize loading the product at a temperature higher than specified above so long as the temperature of the product remains at least 5.5 degrees Celsius (10 degrees Fahrenheit) below the flash point of the product.

(c) DETERMINATION OF QUANTITY. The quantity of supplies furnished under this contract shall be determined as follows:

(1) DELIVERY BY BARGE. On items delivered by barge, the quantity shall be determined (at the Contractor's option) on the basis of--

(i) Origin Shore Tank Measurements. If the vessel is unable to receive any or all of the delivery, the Contractor must immediately notify the DLA Energy Contracting Officer of the circumstances and provide documentation to substantiate the quantity and location where excess product has been off-loaded); or

(ii) Calibrated Meter; or

(iii) Gauging the barge before and after delivery.

(iv) The Government reserves the right to have a representative present to witness the measurement of quantity.

(2) DELIVERY BY PIPELINE OR FROM MARINE SERVICE STATION INTO VESSEL. On items delivered by pipeline or from Contractor's marine service station, the quantity shall be determined (at the Contractor's option) on the basis of--

(i) Origin shore tank measurements; or

(ii) Calibrated meter.

(iii) The Government reserves the right to have a representative present to witness the measurement of quantity.

(3) DELIVERY BY TANK TRUCK/TRUCK AND TRAILER/TANK WAGON INTO VESSEL. On items delivered by TANK TRUCK/TRUCK AND TRAILER/TANK WAGON, the quantity shall be determined (at the Contractor’s option) on the basis of--

(i) Calibrated meter; or

(ii) Certified capacity tables. The tables must be made available at the time of delivery; or

(iii) Certified tank calibration markers. Certified tank calibration markers will not be accepted unless the conveyance is full to the marker and the entire quantity is delivered; or

(iv) The net quantity determined at the loading point by a calibrated loading rack meter or calibrated scales. This quantity must be mechanically imprinted on the loading rack meter ticket that is generated by the loading rack meter or calibrated scales. If this method is used, the Government reserves the right to determine the quantity received at time of delivery by any valid means available.

(v) The Government shall have the right to have a representative present to witness the measurement of quantity.

(vi) In any case, at the Government's option, quantity may be determined at the receiving activity on the basis of--

(A) Weight, using calibrated scales; or

(B) A calibrated meter on the receiving tank system.

(vii) The Contractor has the right to have a representative present to witness the delivery and measurement of quantity.

(4) WATER BOTTOMS.

(i) Every delivery must be free of all water bottoms prior to discharge; and

(ii) The Contractor is responsible for their removal and disposal.

(5) VOLUME CORRECTION. Volume correction to liters at 15 degrees Celsius (or gallons at 60 degrees Fahrenheit) is required for--

(i) All product volumes determined by gauging.

(ii) All product volumes determined by loading rack meters.

(iii) All pipeline tenders.

(iv) All product volumes determined by weight.

(v) All product volumes determined by meters or calibrated markers that are in excess of 20,000 liters (5,000 gallons) or that have a kinematic viscosity equal to or greater than 5.5 mm3/s.

(6) MEASUREMENT STANDARDS. All measurements and calibrations made to determine quantity shall be in accordance with the most recent edition of the API Manual of Petroleum Measurement Standards (MPMS). Outside of the United States, other technically equivalent national or international standards may be used. Certified capacity tables shall mean capacity tables prepared by an independent inspector or any independent surveyor. In addition, the following specific standards will be used as applicable:

(i) API MPMS Chapter 11.1, Volume Correction Factors (API 2540/ASTM D 1250/IP 200/ISO 91-1). Either the printed version or the computer subroutine versions of the standard may be used.

(A) Use Volume VIII, Tables 53B and 54B (or Volume II, Tables 5B and 6B) for all bunker fuels.

(B) Volume XII, Table 52, shall be used to convert cubic meters at 15 degrees Celsius to barrels at 60 degrees Fahrenheit, except when this method is restricted by foreign law. Convert liters at 15 degrees Celsius to cubic meters at 15 degrees

Celsius by dividing by 1,000. Convert gallons at 60 degrees Fahrenheit to barrels at 60 degrees Fahrenheit by dividing by 42. Should foreign law restrict conversion by this method, the method required by law shall be stated in the offer.

(C) If the original measurement is by weight and quantity is required in U. S. gallons, then--

(a) Volume XII, Table 58, shall be used to convert metric tons to U.S. gallons at 60 degrees Fahrenheit.

(b) Volume XI, Table 8, shall be used to convert pounds to U.S. gallons at 60 degrees Fahrenheit.

(D) If the original measurement is by volume and quantity is required in metric tons, then metric tons shall be calculated by multiplying the volume in (m3) at 15 degrees Celsius by the density (in kg/m3) at 15 degrees Celsius. Convert kilograms to metric tons by dividing by 1,000.

(ii) API MPMS Chapter 4, Proving Systems. All meters used in determining product volume shall be calibrated using this standard with the frequency required by local regulation (foreign or domestic). If no local regulation exists, then the frequency of calibration shall be that recommended by the meter manufacturer or every 6 months, whichever is more frequent.

(d) BACK-HAUL. NOTE: Navy and USCG regulations may require certain vessels to "top-off" for maintaining a specific reservoir of fuel quantity on-board at all times when on stand-by mode. In addition, instability of the vessel in water may result in variances between the quantity ordered vice receivable by the vessel resulting in returned product.

(1) On f.o.b. destination deliveries as ships’ bunkers, excess quantities ordered but not accepted by the Government will be referred to as back-haul. Back-haul charges are only those transportation charges associated with returning the excess quantities to the supply terminal or, if not returnable, incurred demurrage until the product is sold off the barge or truck all resulting in back-haul. Contractors shall limit the time product remains in transit or on-board the barge or truck until sold to another party to mitigate costs. Failure to do so may result in denial of the claim.

(2) Any back-haul remaining after delivery has been made will be handled as follows:

(i) SEA Card Order Management System (SEA CARD® ONLINE) Orders.

(A) Charges for detention are deemed ancillary, non-fuel charges and are the responsibility of the activity incurring them. In accordance with the SUBMISSION OF INVOICES FOR NON-FUEL CHARGES – LOCAL PURCHASE PAYMENT REQUIREMENTS (FUEL CARD SERVICES) contract provision, the Contractor shall invoice these charges using SEA CARD® ONLINE, upon approval by the activity, the Credit Card Processor (CCP) will pay the Contractor and the CCP will then bill the receiving activity.

(B) In the event the incurring activity disputes the charge(s), the DLA Energy Contracting Officer in accordance with procedures set form in subparagraph (ii) below for non-SEA CARD® ONLINE orders. The Contractor may include the SEA CARD® ONLINE processing fee as parts of its claim which must be clearly identified and expresses as a whole number, not a percentage.

(ii) Non-SEA CARD® ONLINE Orders

(A) The Contractor shall notify the Contracting Officer and the Ordering Officer as to the amount and type of product not taken by the vessel and the location(s) that caused the back-haul.

(B) The Contractor shall file a claim against the Government for returned quantities. This claim shall be submitted to the Contracting Officer in accordance with procedures set forth in paragraph (d), Disputes, of the CONTRACT TERMS AND CONDITIONS – COMMERCIAL ITEMS clause. For back-haul: A copy of the transportation provider’s and/or supplier’s invoice for the transportation cost must be provided as evidence to substantiate the actual cost of transportation cost per unit of issue.

For demurrage leading to sold product: A detailed copy of the incurred demurrage charge must be provided as evidence to substantiate the demurrage rate. A copy of the written fuel order (as cited in the SUPPLIES TO BE FURNISHED (BUNKERS) contract provision) and signed receiving reports from the Government must also be submitted for all claims described above.

(C) Claims shall be forwarded to the Contracting Officer, with supporting documents, no later than 120 days after the original delivery date, failing which the Government shall be discharged from any and all liability in respect thereof.

(3) Product downgraded due to its inability to be reintroduced into a terminal shall be treated as a separate claim unlike back-haul. Contractors must submit all supporting documentation of this result to the Contracting Officer to substantiate the claim and within the time-frame as described in (C) above.

(e) CONTRACTOR DELIVERY DELAYS.

(1) The Contractor shall be liable for costs the Government incurs due to delays/detainments/demurrage of vessels when--

(i) The actual pumping rate for the method of delivery does not meet the required contract rate;

(ii) The Contractor fails to deliver due to fuel shortages/outages;

(iii) The Contractor cannot deliver by the contracted method of delivery;

(iv) The Contractor fails to provide the proper delivery conveyance equipment; or

(v) Any other delay or default does not constitute an excusable delay.

(2) Any demurrage claims against the Contractor shall be computed to the nearest half hour.

(3) MILITARY SEALIFT COMMAND (MSC) VESSELS.

(i) If the delayed vessel is under a voyage (spot) charter, demurrage may be assessed at the rate provided in the charter. For long term barge contracts not awarded by MSC, demurrage may be assessed at the contract hire rate for the vessel. In all cases when the vessel is under charter, the demurrage payable by the Contractor shall not exceed the actual demurrage expense incurred by the Government.

(ii) If the vessel is not under a voyage charter, demurrage may be assessed at the demurrage rate for that class of vessel as published by the MSC.

(4) Acceptance of a late delivery shall be for the purpose of mitigating damages and shall not constitute a waiver of the Government’s right to recover delay damages from the Contractor.

F-0002 F3.01 TRANSPORT TRUCK, TRUCK AND TRAILER AND/OR TANK WAGON FREE TIME AND

DETENTION RATES (BUNKERS) (DLA ENERGY JAN 2012)

(a) Upon arrival of Contractor's transport truck, truck and trailer, or tank wagon, the receiving activity shall promptly designate the delivery point into which the load is to be discharged.

(b) DETENTION BEYOND FREE TIME CAUSED BY THE GOVERNMENT.

(1) SEA Card Order Management System (SEA CARD® ONLINE) Orders.

(i) Charges for detention are deemed ancillary, non-fuel charges and are the responsibility of the activity incurring them. In accordance with the SUBMISSION OF INVOICES FOR NON-FUEL CHARGES – LOCAL PURCHASE PAYMENT REQUIREMENTS (FUEL CARD SERVICES) contract provision, the Contractor shall invoice these charges using SEA CARD® ONLINE, upon approval by the activity, the Credit Card Processor (CCP) will pay the Contractor and the CCP will then bill the receiving activity.

(ii) In the event the incurring activity disputes the charge(s), the DLA Energy Contracting Officer will be provided documentation from both parties in order to arbitrate a settlement.