Navy fuel solicitation targeting minimum 10% drop-in biofuels component in F-76 and JP-5; at least 39M gallons biofuels
The US Navy has posted a Farm-to-Fleet Inland/East/Gulf Coast Solicitation (SP060014R0061) seeking a minimum of about 39 million gallons of drop-in drop-in JP-5 and F-76 biofuels from currently approved pathways—i.e., Hydroprocessed Esters and Fatty Acid (HEFA) or Fischer Tropsch (FT)—for April 2015-March 2016 fuel deliveries.
Under this solicitation, the Navy has a goal that 10% of its total military specification JP-5 aviation turbine fuel and F-76 naval distillate fuel requirements consist of biofuels.
Revised F-76 (MIL-DTL-16884N) and JP-5 (MIL-DTL-5624V) specifications allow a maximum of 50 vol % of the finished fuel to consist of synthesized blend components derived from the HEFA or FT conversion processes. Offerors are encouraged to submit alternative offers with a minimum of 10% of the permitted blends.
The Navy is seeking four fuel types in this solicitation: Jet-A (925,544,000 gallons US); JP-8 (376,000 gallons US); JP-5 (254,612,000 gallons US); and F-76 (137,886,000 gallons US). The 10% minimum biofuel component thus works out to 25,461,200 gallons for JP-5 and 13,788,600 gallons for F-76: total 39,249,800 gallons.
Background. 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, this solicitation is designed to assist the DON in meeting its goals to increase the use of biofuels.
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 feedstocks approved by the CCC as identified in the attached list. 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.