Keywords: US Navy, biofuel blends, DLA, bulk
fuels, fuel procurement
The Defense Logistics Agency (DLA), in conjunction with the US
Navy, has issued a solicitation for bulk fuels for DLA
Energy's customers located in the Inland/East/Gulf Coast
regions of the United States. The Inland/East/Gulf Coast is the
single largest bulk fuels acquisition program, and it is valued in
excess of $3.5 billion.
Significantly, as part of the regular bulk fuel procurement for
Inland/East/Gulf, the solicitation is designed to assist the
Department of the Navy in meeting its goals to increase the use of
biofuels. Under the joint "Farm to Fleet" program of the US
Department of Agriculture and Navy, the Navy has a goal that 10
percent of its total military specification of JP-5 aviation
turbine fuel and F-76 naval distillate fuel requirements consist of
In a statement issued on June 10, 2014, the Navy
indicated that at least 37 million gallons of "drop-in"
biofuels are being sought in the solicitation. These biofuels can
be blended in a range of 10 to 50 percent with conventional
petroleum products and must meet all military fuel specification
properties that make handling requirements and performance
indiscernible to the end user. The Navy stated that DLA will
purchase the biofuel blends only if they are cost competitive with
their conventionally derived counterparts. The Navy also added that
"[e]xpanding military energy sources improves the reliability
of our overall fuel supply, adds resilience against supply
disruptions, and gives the military more fuel options to maintain
its readiness and defend the national security interests of the
According to the Navy, $27.2 million in Commodity Credit Corp.
(CCC) funds are available to defray any additional costs that may
exist for fuels derived from domestic feedstocks on a US Department
of Agriculture-approved list. The CCC funding is capped at 71 cents
per neat gallon of biofuel.
Fuel offered under the solicitation must also comply with
Section 526 of the Energy Security and Independence Act, which
requires that the lifecycle gas emissions of the alternative fuel
must be equal to or less than petroleum-based fuel based on either
the renewable fuel standard (RFS) or GREET Model.
The solicitation anticipates award of an Indefinite
Delivery/Indefinite Quantity Type, Fixed-Price with Economic Price
Adjustment contract. The total estimated quantities are for JP-8
(376,000 USG), JP-5 (254,612,000 USG), JAA (925,544,000 USG), and
F-76 (137,886,000 USG). The procurement is 44.94 percent set-aside
for small business. Offers are due July 9, 2014, 3:00 pm EST.
Mayer Brown is a global legal services provider
comprising legal practices that are separate entities (the
"Mayer Brown Practices"). The Mayer Brown Practices are:
Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both
limited liability partnerships established in Illinois USA; Mayer
Brown International LLP, a limited liability partnership
incorporated in England and Wales (authorized and regulated by the
Solicitors Regulation Authority and registered in England and Wales
number OC 303359); Mayer Brown, a SELAS established in France;
Mayer Brown JSM, a Hong Kong partnership and its associated
entities in Asia; and Tauil & Chequer Advogados, a Brazilian
law partnership with which Mayer Brown is associated. "Mayer
Brown" and the Mayer Brown logo are the trademarks of the
Mayer Brown Practices in their respective
Mayer Brown article provides information and comments on legal
issues and developments of interest. The foregoing is not a
comprehensive treatment of the subject matter covered and is not
intended to provide legal advice. Readers should seek specific
legal advice before taking any action with respect to the matters
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The battle for control over the regulation of oil and gas activities, particularly fracking, between state and local governments has played out in courtrooms and legislatures across the country in recent months.
On March 19, 2015, FERC issued Order No. 807, a rule that makes it easier for developers of non-utility transmission lines that connect power projects to the grid to avoid having to offer unused capacity on those lines to third parties.
On March 27, 2015, FERC issued two separate orders approving Dynegy Inc. and Dynegy Resource I, LLC's (collectively, "Dynegy") $6.25 billion acquisition of merchant generators Duke Energy Corporation...