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FBO DAILY ISSUE OF SEPTEMBER 12, 2007 FBO #2116
SOURCES SOUGHT

91 -- Request for Information - Synthetic Fuel

Notice Date
9/10/2007
 
Notice Type
Sources Sought
 
NAICS
324110 — Petroleum Refineries
 
Contracting Office
Defense Logistics Agency, Acquisition Management, Defense Energy Support Center, 8725 John J. Kingman Road, Fort Belvoir, VA, 22060-6222, UNITED STATES
 
ZIP Code
00000
 
Solicitation Number
Reference-Number-DESCBCRFI002
 
Response Due
11/1/2007
 
Description
This is a follow-up Request for Information (RFI) as defined in FAR 15.201(e). The Government previously sought information regarding the ability of potential suppliers to meet a Fischer-Tropsch draft synthetic fuel specification and suppliers' current and future production capability. For this RFI, the Department of Defense is interested in whether potential domestic suppliers would require long term contracts and what specific terms and conditions would be included in those contracts. PROCESS This request is to gather information from interested parties and is an essential step in determining contract terms and conditions for the manufacture and supply of aviation synthetic fuel which would meet the attached draft specification. Interested parties should answer the following questions and provide the requested information: 1. Please provide a copy of your standard terms and conditions for a long term contract. Provide copies of any special terms that would be in addition to standard terms. 2. Would you require a long term arrangement in order to enter into a Government contract for synthetic fuel? What would the minimum and maximum length of the contract be? 3. The Government currently cannot enter into a contract for synthetic fuel longer than five years, although the contract could contain options for an additional five years. If the Government cannot obtain longer term contract authority, would you be willing to enter into a five year contract? Would the five year contract be more attractive if it contained options for an additional five years? What would be the consequences of a five year contract in terms of price, risk, or any other payment or contract term? 4. Some responses to the previous RFI referred to the need for offtake agreements. Would you require an offtake agreement? If the Government only needed jet fuel, would an offtake agreement require the Government to take all the products produced at the facility? Would you require that the Government purchase some minimum quantity from the facility? 5. Some responses to the previous RFI referred to take or pay arrangements. Please advise if you would require a take or pay agreement and explain exactly how it would work. What would be the financial consequence if the Government terminated for convenience a take or pay agreement? 6. The Government currently has the right under its contracts to terminate a contract for the convenience of the Government. In the event of such a termination, a contractor has the right to submit a claim for termination costs, which are generally the unrecovered costs under the contract. Please advise whether a termination for convenience clause would be compatible with an offtake agreement or a take or pay agreement. 7. How would a long term contract be priced? Would it be fixed price or a cost contract? Would it contain an escalation provision? If the contract did contain an escalation provision, would that provision be based on a jet fuel market reference or would it be tied to some other market? Would the escalation clause be based on cost inputs? The Government would prefer a fixed price contract, priced per gallon, with some type of market escalator. 8. Would the contract price require some floor price? How would this be determined? Would it include a ceiling price? 9. What type of payment terms would be required? Would any advance or progress payments be required while a facility is being constructed? Or would payment only be made when fuel is delivered to the Government on a per gallon of fuel? 10. Are there any special risk terms which would be needed? 11. Please provide some basic information about your existing or proposed facilities: a. Location of plant(s). b. Size in barrels per day. c. Since the Government preference is to purchase blended product, advise on your ability to blend up to 50% Fischer-Tropsch synthetic fuel with conventional fuel, and advise whether blending would be done on or off site. d. Ability to provide blended Fischer-Tropsch synthetic fuel containing all of the Government's required additives; i.e., Antioxidant, Static Dissipator Additive, Fuel System Icing Inhibitor, Corrosion Inhibitor/Lubricity Improver? 12. Company point of contact, address, telephone number, email address, and size and status of the company; i.e., small business, HUBZone business, etc. DISCLAIMER This RFI is issued solely for information and planning purposes and does not constitute a solicitation. All information received in response to this RFI will be treated as business confidential information, and exempted from disclosure under the Freedom of Information Act. Nonetheless, submitters should properly mark their responses if the information is confidential. Responses to the RFI will not be returned. In accordance with FAR 15.201(e), responses to this notice are not offers and cannot be accepted by the Government to form a binding contract. Responders are solely responsible for all expenses associated with responding to this RFI. CONTACT INFORMATION Emma Smith, Contract Specialist, Phone 703-767-9253, Email Emma.Smith@dla.mil Phyllis Orange, Contracting Officer/Division Chief, Phone 703-767-9305, Email Phyllis.Orange@dla.mil HOW TO RESPOND Please submit comments no later than November 1, 2007. Preferred media is electronic copies in Microsoft Word, Power Point, or Excel. Preferred method of submission is via email.
 
Place of Performance
Address: THIS IS A REQUEST FOR INFORMATION ONLY!!! 8725 JOHN J. KINGMAN ROAD, FORT BELVOIR, VA.
Zip Code: 22060-6222
Country: UNITED STATES
 
Record
SN01400553-W 20070912/070910220115 (fbodaily.com)
 
Source
FedBizOpps Link to This Notice
(may not be valid after Archive Date)

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