Green Initiative for Fuels Transition Pacific (GIFTPAC)

The changes below are being made to update the following: 1) The Defense Energy Support Center will now be known as the Defense Logistics Agency Energy (DLA Energy) 2) New information about the Industry Days is provided Solicitation Number: DESCBCRFI001 Notice Type: Sources Sought Synopsis: Added: Jun 25, 2010 12:59 pm The Defense Logistics Agency Energy (DLA Energy), a Primary Level Field Activity of the Defense Logistics Agency, is the DoD Class III Bulk Executive Agent responsible for all bulk petroleum supply management for source of supply to the point of customer acceptance. DLA Energy is the centralized procurement agency for DoD fuel requirements and handles product transportation to the product point of sale. DLA Energy also is responsible for product inventory and sales transaction accounting, product quality assurance, and administers a robust Sustainment, Restoration, and Modernization (SRM) and environmental remediation program for capitalized sites. Part I: SHORT TERM OBJECTIVE This is a Request for Information (RFI) only as defined in FAR 15.201(e). The Government seeks to identify responsible potential sources and obtain information regarding possible suppliers of bio-derived alternative fuel for aviation purposes, and potentially for marine diesel, for delivery to various locations in the state of Hawaii. The fuel will be for operational use and as such must meet the applicable specification for either: 1) Hydrotreated Renewable Jet (HRJ) for both HRJ8 and HRJ5, and Hydrotreated Renewable Marine Diesel, HRF76 or; 2) Fischer-Tropsch Jet for both FTJ8 and FTJ5, and Fischer-Tropsch Marine Diesel FTF76, where the feedstock for the FT process must be biomass. The Department of Defense (DoD) is investigating the feasibility of meeting up to 25% of its current estimated requirements for aviation and marine diesel fuels in Hawaii with renewable fuels. The current estimated annual requirements for DoD in Hawaii are 78,550,000 gallons of JP8, 7,180,000 gallons of JP5, and 42,250,000 gallons of F76. There is also a smaller quantity of commercial diesel fuel purchased for use in Hawaii, equating to approximately 750,000 gallons per year. Please note that the 25% goal represents the bio-fuel quantity of the blended 50-50 bio-derived and petroleum derived product. Delivery dates are to be determined and will be based on availability of an approved specification to purchase against, completed testing and certification of necessary weapon system platforms, and information received from interested sources concerning timeframes for their abilities to meet the necessary quantities and quality. Part II: LONG-TERM OBJECTIVE DoD is interested in long-term prospects for the manufacture and supply of aviation biofuels and marine diesel biofuels in increasing quantities, potentially from multiple suppliers and feedstock sources, to foster an assured domestic supply of these fuels through a healthy industry with sustainable, ongoing competition. DoD intends to purchase bio-derived jet and marine diesel fuels which meet approved specifications, meet the provisions of the Energy Independence and Security Act (EISA) Section 526, are a - drop in fuel that can utilize existing infrastructure, are delivered to DoD fully blended (50:50 blend ratio with conventional petroleum product counterpart (JP8, JP5 or F76) and ready for use. Cost competitiveness with conventional petroleum derived fuels is a key objective. To comply with EISA 526, the bio-derived fuels must have lifecycle greenhouse gas emissions that are less than or equal to those of conventional petroleum derived fuels. All potential providers of bio-derived fuels must comply with all applicable federal, state, local environmental laws and regulations. PROCESS This request is to gather information from interested parties and is an essential step in determining market interest for the manufacture and supply of bio-derived aviation and marine diesel fuels. In order to minimize costs to potentially interested parties and to the Government, this notice is issued to determine market interest and feasibility as well as determine market strategies for production of bio-derived aviation fuels. Interested parties should provide a statement of interest on company letterhead. The statement of interest must not exceed 20 pages. The statement shall include, at a minimum, the following information: (1) product quality - ability to meet anticipated specifications as understood at this time (including identification of any issues or concerns), (2) Current (if any) and future production capabilities, (3) location of production capabilities or plans to build, including ability to finance, (4) quantities that can be produced and when it can be made available, to include anticipated time necessary from contract award to delivery of product, and plans (if any) to supply commercial aviation or diesel fuels in addition to military specification products, (5) type, growth and processing location of feedstock contemplated for use, (6) capability and experience in the sale and delivery of aviation fuels, (7) distribution methods available from the production facility, (8) a description of your contemplated end to end supply chain including plans for the blending of the biofuel component with the conventional petroleum products and final delivery to DoD, and any partnerships contemplated to provide fuel and contracting party with DLA Energy, (9) financial capabilities necessary to meet criteria for award of a supply contract, (10) estimated start-up cost to begin production of bio-derived jet and marine diesel fuels including scale of production, (11) estimated cost, variable and fixed, of producing a gallon of fuel, and anticipated pricing structure to sell a 50:50 blended gallon of fuel (12) understanding of Federal, state, and local environmental laws and regulation, and familiarity and experience with environmental compliance procedures and regulations for applicable states and U.S Environmental Protection Agency Regions, and (13) corporate requirements for contract lengths and any other contract terms considered critical by your company, and (14) company point of contact, telephone number, and email address. In addition to the aforementioned mandatory elements, you are encouraged to provide input on potential market indicators that could be utilized to allow economic price adjustments during the contract period-of-performance. Interested parties should also provide comments on the nature and level of Federal and State incentives and/or obligations (e.g. R&D, capital investment, investment or production incentives) needed to develop and sustain long-term domestic commitments to produce bio-derived fuels. These may include use of existing programs, such as those administered by the U.S. Department of Agriculture, or other incentives or programs not currently available which would be necessary for successful project development. This RFI is in support of the U.S. Pacific Command's (PACOM) Green Initiative for Fuels Transition Pacific (GIFTPAC). The GIFTPAC group is comprised of various different organization including Organizations from the Office of the Secretary of Defense, the U.S. Navy, the U.S Air Force, the U.S. Army, and the U.S. Marine Corps, the Department of Energy, US Department of Agriculture and the State of Hawaii. The goal is to displace at least 25% of the petroleum derived fuels used by the DoD in Hawaii with - green fuels. The initiative supports PACOM energy security requirements by developing domestic organic capability to diminish reliance on outside sources of supply and provide support to the military services stated alternative fuel goals and objectives. DLA Energy is the Acquisition Manager for this effort. Other similar efforts are currently in process. DLA Energy and the Air Transport Association (ATA) recently concluded a Strategic Alliance in an effort to spur the commercial viability of alternative aviation fuels. Market engagements through this cooperative effort are forthcoming and interested parties are encouraged to check for further information on this site, the DLA Energy webpage, and the ATA webpage in the coming months. DoD will hold Industry Days to answer questions, seek additional information, and help establish the best market engagement strategy possible to ensure success in meeting the aggressive DoD goals of displacing large quantities of conventional petroleum derived aviation fuels with domestic renewable fuels. The dates for Industry Days are set for the afternoon of September 2nd and September 3rd to coincide with the Asia Pacific Clean Energy Summit and Expo to be held in Honolulu, Hawaii from August 30 - September 2, 2010. Please note the Industry Day is not part of, nor connected to, the Asia Pacific Clean Energy Summit. Additional details on the Industry Day are posted on the DLA Energy website (www.desc.dla.mil). On September 2nd, at 1:00 in Honolulu, the Government will provide an overview of the GIFTPAC effort and discuss available Government programs, technical issues related to supply under the initiative, and hold a Q&A period. Day two, to be held at the Hilton Hawaiian Village in Honolulu, will be individual meetings between interested companies and DLA Energy and GIFTPAC representatives. Each meeting is contemplated to be about one hour in length, but could vary based on the level of interest. If you are interested in attending the Industry Day, please notify DLA Energy by August 13th. Please specify if you would like to reserve a time for a one-on-one meeting on Friday, September 3rd. Upon receipt of interest, DLA Energy will assign times. Additionally, DLA Energy will provide information on the procedures and content for the one-on-one meetings. DLA Energy intends to provide a list of attendees representing DLA Energy and the GIFTPAC initiative prior to the one-on-one meetings. All information presented during the one-on-one meetings will be held confidential and all DLA Energy and GIFTPAC participants attending the meetings will be required to sign non-disclosure agreements. DISCLAIMER This RFI is issued solely for information and planning purposes and does not constitute a solicitation. All information received is response to this RFI is marked Proprietary will be handled accordingly. 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 Farheena Khan, Contract Specialist, 703 767-9265, farheena.khan@dla.mil Emma Smith, Contract Specialist, 703 767-9253, emma.smith@dla.mil Phyllis M. Orange, Contracting Officer, 703 767-9305, phyllis.orange@dla.mil HOW TO RESPOND Please submit comments no later than August 6, 2010. Preferred media is electronic copies in Microsoft Word, Power Point, or Excel. Preferred method of submission is via email. Contracting Office Address: 8725 John J. Kingman Road Fort Belvoir, Virginia 22060-6222 Place of Performance: THIS IS A REQUEST FOR INFORMATION ONLY Defense Logistics Agency, Logistics Operations 8725 JOHN J KINGMAN ROAD Fort Belvoir, Virginia 22060-6222 United States Primary Point of Contact: Farheena J Khan, Contract Specialist farheena.khan@dla.mil Phone: 703-767-9265 Fax: 703-767-9269 Secondary Point of Contact: Phyllis M. Orange, Chief Bulk Domestic Contracting phyllis.orange@dla.mil Phone: 703+767-9305 Fax: 703+767-9269