INLAND/EAST/GULF COAST Solicitation

Solicitation:

This is the solicitation for the annual Inland/East/Gulf Coast procurement.  The ordering period is date of award through March 31, 2017.  The delivery period is April 1, 2016 through March 31, 2017 with a 30-day carryover.  The method of delivery will be tanker, barge, truck, railcar, and/or pipeline.  The total estimated quantities are as follows:  

Turbine Fuel, Aviation, JP8 (NSN 9130-01-031-5816), Quantity 275,000 USG

Turbine Fuel, Aviation, JP5 (NSN: 9130-00-273-2379), Quantity 262,880,000 USG

Turbine Fuel, Aviation, Jet A (NSN: 9130-00-359-2026), Quantity 915,062,000 USG

Fuel, Naval Distillate, F76 (NSN: 9140-00-273-2377), Quantity 135,827,000 USG.

The Secretary of the Navy has set a goal that by 2020 half of all the Department of the Navy's energy will come from alternative sources.  To support that goal, in June 2011, the Department of the Navy (DON), Department of Energy (DOE) and the Department of Agriculture (USDA), signed a memorandum of understanding (MOU) to "assist the development and support of a sustainable commercial biofuels industry."  Under the MOU, the USDA agreed to provide funding through the Commodity Credit Corporation (CCC.) 

As part of the regular bulk procurement for Inland East Gulf, the solicitation will be designed to assist the DON in meeting its goals to increase the use of biofuels.  Offers of JP8, JP5, JAA, and F76 may contain biofuel blends up to 50%.  Under the solicitation, DON has a goal that 10% of its total military specification aviation turbine fuel (JP8, JP5, and JAA) and F-76 naval distillate fuel requirements consist of biofuels.  The revised F76 (MIL-DTL-16884N) and JP-5 (MIL-DTL-5624V) specifications allow a maximum of 50 volume percent of the finished fuel to consist of synthesized blend components derived from the Hydroprocessed Esters and Fatty Acid (HEFA) or Fischer Tropsch (FT) conversion processes.  Offerors are encouraged to submit alternative offers with a minimum of 10% of the permitted blends. 

CCC funds will be available to defray additional costs of producing biofuel and biofuel blends and are being provided as a biofuel production incentive under the CCC program to support agricultural products.  To be eligible for CCC funding, the fuel must contain at least 10% biofuel, not to exceed 50% as permitted by the JP-5 and F-76 specifications.  The biofuel must be refined from domestic (U.S. grown) feedstocks approved by the CCC.  The CCC funds will be allocated through the Bid Evaluation Model (BEM).  The biofuel production incentive will be paid for directly by the CCC, and will cover a portion of the offered price.  An offeror will not be paid a price higher than its offered price.

Offers of alternative fuel blends must comply with Section 526 of the Energy Security and Independence Act.  This means that the lifecycle greenhouse gas emissions of the alternative fuel must be equal to or less than petroleum based on either the Renewable Fuel Standards or the GREET Model. 

Copies of the Inland/East/Gulf Coast solicitation will be available via the Federal Business Opportunities (FedBizOpps) webpage at www.fbo.gov.  Requests for paper copies of this solicitation must be submitted by fax at (703) 767-9269, Attn: DLA ENERGY-FEBAB / SPE600-15-R-0719, or by email to Tara Upchurch (Tara.Upchurch@dla.mil) or Wilma McDonald (Wilma.McDonald@dla.mil).  All responsible sources must submit a proposal to be  considered, in order to be evaluated and eligible for award.  Offerors are required to complete, sign, and return the document titled Offer Submission Package to the Bid Custodian at DLA Energy.

Please be advised that DLA Energy will be conducting a Pre-Proposal Meeting on October 21, 2015.  Details regarding this event is in included in attachment 1.