ATTACHMENT - E - Bunkers Notes.pdf

SPE608-26-R-0200

DLA Energy-FEPEC Bunkers

Source Selection Information See FAR 2.101 and FAR 3.104

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 solicitation, 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 the solicitation annotates a specific response/delivery time restriction/requirement, the solicitation shall dictate.

(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

Source Selection Information See FAR 2.101 and FAR 3.104 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 overwater (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 Solicitation, orders placed under this purchase order may be cancelled by an authorized Ordering Officer within the following time period without incurring cancellation charges—

(i) Delivery into Government vessels (including 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 solicitation, 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) DETERMINATIOM OF QUANTITY: The quantity of supplies furnished under this solicitation 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.

Source Selection Information See FAR 2.101 and FAR 3.104

(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 the 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.

Source Selection Information See FAR 2.101 and FAR 3.104

(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--

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

(ii) 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 recommended by the meter manufacturer or every 6 months, whichever is more frequent.

(d) ANCILLARY CHARGES. The following are the ancillary charges allowed under the SEA Card® Program-

(i) Back-Haul charges are transportation charges associated with returning the excess quantities to the supply terminal, when the full ordered quantity of fuel cannot be delivered to a vessel. Back-haul charges are subject to the 10 percent increase/decrease thresholds as indicated in FAR 52.211-16 VARIATION IN

Source Selection Information See FAR 2.101 and FAR 3.104

QUANTITY. In addition, contractors shall limit the time the 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 charge. Back-Haul charges shall be charged as per the unit of measure in the solicitation: per gallon (USG); or per metric ton (MT).

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.

(ii) Booming Fee is the cost associated with arranging, setting up, and disassembling a boom, which is a temporary floating barrier used to contain an oil spill. Booming Fee shall be charged as a flat fee.

(iii) Cancellation is a fee incurred when an order is canceled. Cancellation shall be charged as a flat fee.

(iv) Demurrage is a fee incurred when the delivery is delayed beyond the agreed time for loading fuel as ordered, by the receiving party. Demurrage shall be charged as “per hour.”

(v) Overtime is a fee associated with deliveries outside the normal hours of operation. Overtime shall be charge as “per hour”.

(vi) Quantity Change fee shall apply only when the Customer specifically requests a change in quantity ordered. Quantity Change shall be charged as a flat fee.

(vii) Total ancillary charges, which include Cancellation, Quantity Change, Demurrage, Backhaul, Overtime, and Booming, cannot exceed 10% of the total quoted price for fuel. By submission of its quote, the offeror agrees that the Government will not pay more than 10% of the quoted price for fuel in total ancillary charges.

Any ancillary charges will be handled as follows:

(1) SEA Card® Electronic Access System (SEA CARD® EAS) Orders.

Ancillary charges are considered non-fuel charges and are the responsibility of the activity incurring them. The Contractor shall invoice these charges using SEA CARD® ONLINE, upon approval by the activity, the Charge Card Processor (CCP) will pay the Contractor and the CCP will then bill the receiving activity.

(2) In the event the incurring activity disputes the charge(s), the DLA Energy Contracting Officer will verify the charges were billed in accordance with the purchase order and will notify the activity of his/her findings. If the Contracting Officer determines the charges are valid and if the incurring activity agrees, the CCP will issue payment to the contractor.

(3) In the event the incurring activity disagrees with the Contracting Officer finding, the contractor has the right to submit a claim to the DLA Energy Contracting Officer in accordance with FAR 52.233-1 Disputes. Claims shall be forwarded to

Source Selection Information See FAR 2.101 and FAR 3.104 the Contracting Officer, with all supporting documentation, 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.

Supporting Documentation:

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: A detailed copy of the incurred demurrage charge must be provided as evidence to substantiate the demurrage rate.

(e) CONTRACTOR DELIVERY DELAYS.

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.

BARGE UNLOADING CONDITIONS ORDERING PROCESS.

(a) ORDERING PROCESS. The supplies ordered hereunder shall be delivered to the destination specified in SF 1449 (to be referred to in this instruction as the “purchase order”), in accordance with the schedule, unless mutually agreed to by the parties. Unless otherwise specified in the purchase order , orders placed for bunkers for delivery (anchorage and/or pier-side) by means of barge will be furnished to the Contractor at least 48 hours, in advance of the date/time on which delivery is to be made, which date is hereinafter referred to in this instruction as the “scheduled delivery date”. The purchase order will specify the quantity to be delivered, the scheduled delivery date, and location.

(b) SCHEDULED DELIVERY DATE. The scheduled delivery date may be changed by mutual agreement between the parties. If an agreement on a new scheduled delivery date cannot be reached, the previous scheduled delivery date will be maintained.

(c) EXPECTED TIME OF ARRIVAL. Unless otherwise specified in the delivery narrative, the Contractor must provide to the receiving Government vessel a notice of readiness to bunker at least 2 hours prior to the scheduled bunkering. The Government shall provide a safe and assessable berth for the Contractor’s bunkering vessel, not later than 2 hours after receipt of the Contractor’s bunkering vessel’s notice of readiness to bunker.

(d) LAYTIME. Unless otherwise provided in the purchase order, the Government shall be allowed and will complete receipt of the bunkers within laytime determined as follows:

(1) One hour for each 1,500 barrels of supplies to be bunkered. (Example: Quantity to be bunkered is 4,000 barrels, laytime will be 2 hours and 40 minutes.) This assumes the barge delivering bunkers is capable of pumping into the receiving vessel at a rate of 1,500 barrels

Source Selection Information See FAR 2.101 and FAR 3.104 per hour (BPH). Laytime will be extended by the appropriate additional time when the pumping rate is less than 1,500 BPH.

(2) Laytime shall commence as follows:

(i) At Notice of Readiness (NOR) plus 1 hour; or

(ii) Immediately upon arrival in berth of the Contractor’s bunkering barge (i.e., all fast) provided that the Contractor issued a notice of readiness to bunker at the proper time.

(See paragraph (c) above.)

(iii) Laytime shall continue 24 hours a day, 7 days a week, without interruption, unless port authority regulations require differently, from its commencement until bunkering of the barge is completed and the hoses have been disconnected.

(e) LAYTIME CREDIT.

(1) If regulations of the Port Authority prohibit bunkering at any time, time lost shall be added to the amount of laytime allowed.

(2) Delays, after commencement of laytime, attributed to the condition of the bunkering barge or delays caused by a failure of the bunkering barge will be added to the allowed laytime. In the event of Contractor delay, if total adjusted laytime is not fully utilized and/or is exceeded due to further Contractor delays, the provisions of paragraph (e), Contractor Delivery Delays, of the instruction titled BUNKERING may be utilized.

(3) Delays, after commencement of laytime, attributed to causes beyond the control and without the fault or negligence of the Contractor or the Government will result in increasing basic allowed laytime for one half of the delay.

(4) Delays caused solely by the Government, due to late arrival of the vessel, late commencement, and/or late continuation of the delivery, will be deducted from allowed laytime and/or free-time after coordination with the Chief Engineering and/or Ordering Officer. In the event of Government delay, if total allowed laytime and free time are exceeded, the Contractor may bill for detention charges in accordance with paragraph (i) below. Evidence of such delay must be provided.

(f) DELAYS. In the event of a breakdown of the Contractor’s equipment, which prohibits bunkering for at least 2 hours, the Contractor will be required to remove the equipment from the Government-provided berth, unless permission is granted by the Government to allow the equipment to remain at berth. When the Government grants permission for the Contractor’s equipment to remain at berth, the Contractor will be responsible for reimbursing the Government for any cost incurred by the Government for furnishing personnel to remain with the barge during repair. If the Contractor removes the equipment from the Government-provided berth, notice of readiness to bunker will be again required as provided in paragraph (b) above.

(g) EQUIPMENT. Hoses for bunkering a barge shall be provided by the Contractor. However, the Government shall be responsible for connecting and disconnecting the hoses at the flange of the receiving Government vessel.

(h) TITLE. Title to the supplies delivered, and risk of loss thereof, shall pass from the Contractor to the Government when the supplies cross the receiving Government vessel’s manifold.

(i) DEMURRAGE RATE.

Source Selection Information See FAR 2.101 and FAR 3.104

(1) SEA CARD® EAS Orders.

(i) Charges for demurrage are deemed ancillary, non-fuel charges and are the responsibility of the activity incurring them. In accordance with the contractor’s merchant agreement with the Card Processor (CCP), the Contractor shall invoice these charges using SEA CARD® EAS. Upon approval by the activity, the 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):

a. The Accountable Official (AO) initiates a dispute on the SEA Card® EAS, which provides e-mail notifications to the vessel warranted Ordering Officer (OO), DLA Energy Contracting Officer, and the Open Market merchant.

b. The DLA Energy Contracting Officer (a) Mediates a dispute resolution on open market fuel orders 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 bunker delivery notice from the merchant.

(2) The demurrage rate payable per hour by the Government for detainment of the Contractor’s barge will be specified below. The detention payable to the Contractor shall in no event exceed 10% of the quoted price for fuel in total ancillary charges. Free time allowed and demurrage rates will be considered in evaluation of quotes for awards and may be addressed during negotiations.

Demurrage Beyond Free Time

Per Hour

Item Free Time Allowed Barge Tug Other (explain)

NOTE: Exceptions to laytime are not allowed.

SITE VISIT (DLA ENERGY)

(a) It is the responsibility of the offerors/bidders to inspect the site where supplies are to be delivered and to obtain all available information about the site necessary to satisfy themselves about general and local conditions that may affect delivery and the cost of contract performance, to the extent that the information is reasonably obtainable. Offerors/bidders are responsible for any costs incurred for any site inspection and for obtaining information.

(b) In no event shall failure to inspect the site constitute grounds for a claim after contract award.