Dominican Republic Award15-077B

NCBA CLUSA Freight Tender IFB No.15-077B

NCBA CLUSA Bulk Yellow Grease, FFP, Dominican Republic 2019

Date: July 18, 2019

BKA Logistics LLC., as agents for and on behalf of  COOPERATIVE LEAGUE OF THE USA (CLUSA) d.b.a. as NATIONAL COOPERATIVE BUSINESS ASSOCIATION (NCBA), NCBA CLUSA Charterer, requests firm offers of U.S. and non-U.S. flag tankers for the carriage of bulk Yellow Grease (YG) financed under the Food For Progress program on the following basis:

IFB No:15-077B

BKA Ref No: F19-0010-1

FFP Agreement FCC-517-2015/008-00

WBSCM Commodity Solicitation 2000006298

WBSCM Freight Solicitation 2000006299

Sales Order (SO) # for Bulk YG 5000539999

Freight offers to be submitted electronically to WBSCM no later than 1000 hours CDT USA (1100 hours EDT) on July 22, 2019.

Freight offers to be valid until 1700 hours EDT July 24, 2019.

Only firm offers will be considered.

Submission of freight offers:

To determine lowest landed cost, all carriers are required to submit offers electronically for the cargoes advertised by this IFB via the U.S. Department of Agriculture (USDA) web based supply chain management (WBSCM) system for the solicitation number(s) referenced above. All offers are subject to all requirements of WBSCM and of the afore-mentioned solicitation(s), including the deadline(s) for submission of bids therein.

The web based supply chain management system can be accessed through the following website: https://portal.wbscm.usda.gov.

Carriers must be assigned a USDA E-Authentication logon ID and password to access the WBSCM system. Contact the WBSCM help desk for information regarding logon IDs, passwords, and WBSCM system questions or concerns:

Telephone: (877) 927-2648

E-mail: wbscm.servicedesk@caci.com

All proposals will be evaluated on the rates submitted in WBSCM. Free form remarks are not evaluated and are for informational purposes only and to cover optional ports, optional discharge rates, etc.

Freight payment: freight payment shall be processed through the WBSCM system and paid by USDA. Instructions for the freight payment procedures through WBSCM are available from BKA Logistics LLC – email: mark.millard@bkalogistics.net.

1.     Cargo: 1,060 MT min/max Yellow Grease under Sales Order No. 5000539999

The Yellow Grease must be duly segregated by tank, lines and pumping systems

   See Clause 4 for any other additional completion cargoes.

2.     Laydays: August 20-30, 2019. Offeror to submit vessel scheduled voyage itinerary giving vessel’s current position, ETA Load port/range.

3.     Fourteen (14) days preadvice required. Daily vessel position / status reports required.  Owners to provide fourteen (14) day Preadvice of vessel readiness to load.  Preadvice Notice must be received at the office of BKA Logistics LLC, Washington, DC prior to 11:00 a.m. Wash., DC time on regular business day to be considered received on that day.  If Preadvice is received later than 11:00 a.m. Wash., DC time on regular business day or on weekends / holidays, Preadvice notice will be considered received only on next business day.  Owners also to give ten (10) days', five (5) days' and two (2) days' notice of vessel's readiness to load.

4.     Vessel to sail directly from the last US port of loading to the discharge port of Rio Haina, Dominican Republic, as the first port of discharge, with exception of taking bunkers in route.  

5.     Any additional completion cargo(es) must be duly segregated by tank, lines and pumping systems and must be compatible and non-injurious to NCBA CLUSA cargo(es), and must be detailed in offer or approved by Charterers/USDA if contracted after fixture of NCBA CLUSA cargo(es). Vessel's itinerary and geographic proximity of completion cargo(es) will be taken into consideration by Charterer/USDA in approval of such part cargo(es) in order not to unduly impede delivery of NCBA CLUSA cargo(es) to discharge port. Commingling of cargo for other destinations is prohibited. Owner to guarantee that no dangerous cargo will be shipped on the vessel and Charterer’s cargo will be properly segregated. Owner is to be fully responsible for the contamination of Charterer’s cargo on board due to leakage in pipes or for any other reason(s).

6.     Loading port/range: one safe berth each one two safe U.S. ports. 

     The Mississippi River District including, but not north of Port Allen is to be

     considered as one port.  The Columbia River District including Portland is to be

     considered as one port. The San Francisco Bay Area including Sacramento and

     Stockton is to be considered as one port.

7.    Discharge port: One Safe Berth One Safe Port Rio Haina, Dominican Republic at charterer’s option.  Charterer shall nominate the discharge berth(s)/ terminal(s) prior to vessel commencing loading.

Current intentions are to discharge the 1,060 MT Yellow Grease at Rio Haina – Haina Occidental – Receiver Sanut Dominicana.

8.     Terms:

a)     Loading terms: Free in with no demurrage / no dispatch / no detention.

Load rate (without guarantee): 150 MT per hour.  Load port agent to be appointed and paid by Owner.

b)    Discharging terms:  Full Berth Terms – No Demurrage / No Despatch / No Detention. The cargo shall be pumped out of the vessel at the expense of the vessel, but at the risk and peril of the vessel only so far as the vessel’s permanent hose connections where delivery of the cargo shall be taken by the Receivers.

As a guideline only, without guarantee, Receivers will undertake to receive and store the cargo at an average rate of 80 MT per running hour WWDSHINC in shore tanks and or trucks.   

c)     The vessel shall have all necessary equipment (including without limitation main/stripping pumps, hoses, and reducers) in good working order to enable the discharge of the cargo into shore tanks and/or tank trucks with pumps to have

(i) a minimum pressure of 50 pounds p.s.i. (ii) pumping capacity of not less than  100 MT per hour and (iii) capability to pump water with adequate pressure to clean hoses and pipes at the discharge terminal.

d)    All other hose (suitable to fit vessel’s connection) and other necessary equipment and labor to accomplish delivery of the cargo shall be provided by the Receivers.

e)     If stevedoring is required, it is to be arranged and paid for by the Receivers.

f)     The vessel remains responsible for sweeping a/o puddling at their expense and time.

g)    If needed, vessel to furnish steam at its expense for the operation of receivers’ pumps at port of discharge. Squeeging to be paid by the vessel.

h)    HEATING: - The vessel must be fitted with heating system.

Heating is required for the Yellow Grease cargo and shall be in accordance with the Charterer’s Receiver instructions given below.

Owner/Master to observe these instructions during the carriage and discharge of the above captioned parcel. These instructions shall apply to each individual ship’s tank(s) that will contain the Yellow Grease:

1.      Ship’s coils must be completely covered by the cargo on completion of loading.

2.      Heating shall be effected by means of hot water or, if this is impracticable, by means of low pressure steam or thermal heating oil.

3.      During the voyage, the cargo must be kept at a temperature of minimum 35 degrees C to maximum 40 degrees C.

4.      In sufficient time prior to the arrival at port of discharge, heat should be applied steadily to ensure that the temperature of the cargo at the time of discharge should not be less than 40 degrees C and not more than 42 degrees C. The cargo should be maintained within this range of temperatures throughout the discharge.

5.      The increase in temperature of the cargo during a period of 24 hours must never exceed 2 degrees C.

6.      In order to avoid any damage to the quality of the cargo, it is essential that heat should be applied gradually. A sudden increase in temperature must be avoided as it will almost certainly result in damage to the cargo.

7.      At no stage of the handling must the temperature of the cargo exceed 42 degrees C.

8.      Top and bottom temperatures should be maintained as equal as possible.

9.      The temperatures referred to above are the average of top, middle, and bottom readings. The top reading will be taken at about one foot below the surface of the cargo. The bottom reading will be taken:

A.    In tanks which have heating coils on the floor, at one foot above the level of coils.

B.     In tanks which have side coils but no floor coils, at a point about two feet from the bottom of the tank and about one foot from the side coils.

10.  The temperatures indicated in numbers 4 and 7 above are applicable under normal conditions prevailing at port of discharge. In the event of abnormal conditions (such as extremely low atmospheric or water temperatures) receivers of the cargo (but no one else) may vary the temperatures stated, by giving wireless or written notification to the captain or ship owner.

Details of any amendments must be duly recorded and advised to shippers or their representatives.

These instructions to be conveyed by Owner to the Master of the vessel and Master to sign and return to Charterer’s agent BKA Logistics and to the Receiver a duplicate copy as an acknowledgement of receipt. 

9.     Notices and Inspections:

a)     At loading port(s)- prior to tendering Notice of Readiness (NOR) at first load port, owner to provide vessel tank inspection certificate evidencing cleanliness of all tanks to be loaded for this fixture. Vessel must pass inspection by a FOSFA/AFOA for Yellow Grease, International member inspector appointed by the supplier(s) and/or Charterer and be certified as compliant with FOSFA OPS before loading can commence. Vessel is to clean tanks, lines and pumps to the said inspectors’ satisfaction at owner’s time, risk and expense. The NOR must be accompanied with the said certificate. All vessel inspections and vessel certificates mentioned above are at Owner’s time, risk, expense.

b)    Owners are required to provide an additional NCB certification that any openings leading to cargo compartments have been properly sealed to prevent any outside water from entering the cargo spaces.  Cost of sealing and special survey are for account of owner and in no way diminishes owners' liability and responsibilities toward the cargo.

c)     Charterer/Receiver may require a Pre-Shipment inspection by Receiver appointed surveyor. Said Pre-Shipment Inspection shall be arranged and paid for by Charterer and or Receiver, but Owner to permit appointed surveyor /inspector to board the vessel and witness the loading.

d)    In the event that any of the last three cargoes were not food grade cargoes and if vessel fails to pass initial inspection by the surveyor, additional test for trace cargoes to be evidenced by means of a wall wash test at owner's expense.

e)     Upon completion of loading – Owner to send Charterer’s agent a Sailing Notice, with Vessel Name, date and time of sailing foreign, cargo on board, stowage plan, Cargo Manifest, and ETA discharge port.

f)     Owner / Master to keep Charterer or their agent and Receivers’ agent at discharge port on vessel status and any changes of vessel ETA.

g)    Owner/ Master to give Charterer’s agent and Receivers’ and or their agents Vessel’s 96 hours, 72, 48 and 24 hours ETA discharge port.

h)    On arrival at the discharge port Master to file vessel’s Notice of Readiness, in writing to discharge with the Receivers’ agents and the shore terminal office. At the port of discharge, the vessel must be in free pratique on arrival.

10.  The performing vessel and any lighterage vessels utilized must comply with the Federation of Oils, Seeds and Fats Association Ltd. (FOSFA) "operational procedures for all ships engaged in the ocean and short sea carriage and transshipment of oils and fats for edible and oleo-chemical use", hereinafter "FOSFA OPS" except as modified elsewhere herein and in the proforma Charter Party.

11.  Owners are to list the last three cargoes carried (for both vessel and lighterage vessel, if applicable) in cargo tanks and the last three cargoes pumped through the cargo pumps and lines (if different) and certify in their offer that the last three cargoes were clean, unleaded and non-toxic.  Further, owners are to certify that the immediate previous cargo for tanks, lines and pump systems (for both ocean vessel and lighterage vessels, if applicable) designated to load the oils must be in compliance with the NIOP/FOSFA list of acceptable previous cargoes.  Owners must stipulate exactly the last three cargoes carried, without statements of "and or" or "will be".  Further, cargo names must be spelled out without abbreviations. For ship's tanks that have been newly coated or fully re-coated and have not carried at least three cargoes subsequent to the new/re-coating, Owners are to list any cargoes that have been carried in those tanks, pumps and lines after the new/re-coating, otherwise subject to the above.  In addition, owners must furnish with their offer a  certificate from a FOSFA-approved surveyor, dated not more than six months prior to the offer date, or alternatively a statement from the owner,  attesting that the vessel (all tanks, whether or not new/re-coated) is in compliance with FOSFA requirements for the carriage of edible oils.  For lighterage vessels only: if owners cannot provide information on immediate prior cargoes at the time of offer, offeror shall acknowledge that they will not be permitted to utilize any lighterage vessel that has not been inspected and approved prior to loading by a FOSFA-approved surveyor at the load and/or discharge port.  Any time lost at load and/or disports for inspection or other delays in providing suitable lighterage vessel to be at owner's expense and shall not count as laytime or time on demurrage at the discharge ports.

12.  ISM and ISPS code compliance required as per Proforma CP clause 41.

13.  As the cargo advertised in this tender is a government impelled (preference) cargo, offerors of non-U.S. flag vessels must warrant that vessel(s) and owner / operator are not disqualified to carry such government impelled (preference) cargo(es) as outlined in Section 408 of the Coast Guard Authorization Act of 1998, Public Law 105-383 (46 U.S.C., paragraph 2302(e).  See Proforma C/P clause 42 for full details.

14.  Owners are responsible for assuring that performing vessel is fully compliant (at time of fixing and during time of performance) with all international regulations and protocols regarding the carriage of cargo(es), including Marpol 73/78 Annex ii revisions, as well as all regulations of the countries of loading and discharge.  Owners to certify in offer that vessel (performing and/or substitute) meets or exceeds the ship type 2 tank configuration requirements of the IBC code or, alternatively, that the vessel meets all requirements for ship type 3 chemical tankers and related exemption requirements as outlined in Marpol Annex ii regulation 4.1.3; that the certificate of fitness for vessel indicates that vessel is entitled to operate under the provisions of this Reg; that all flag state and port state authorizations have been received or confirmed, as necessary; and, that the owners can confirm that vessel will be permitted to berth and load or discharge at all ports named or contemplated in this tender.  Owners should be prepared to submit copies of documentation evidencing compliance with Marpol regulations upon request at the time offers are submitted.

15.  Owners are responsible for vessel arriving at discharge port meeting any vessel restrictions for the discharge port / terminal – see Clause 7 above.   Any lightening required as a result of vessel's failure to arrive at discharge port in accordance with the vessel restrictions for the discharge port is for owner's risk and expense.  Lightening, if required, to be accomplished in the territorial waters of Dominican Republic.

16.  Any dues and/or taxes on cargo and/or freight to be for charterers' account, and any dues and/or taxes on vessel (including normal port dues, dockage, wharfage on freight and services and facilities charges) to be for owners' account.

17.  Non-Vessel Operating Common Carriers (NVOCC) may not be employed to carry U.S. flag or foreign flag shipments. U.S. flag towed tank barges and ITB/ATB tank barges will be considered.

18.  U.S. flag vessel(s) must be registered highest in ABS. Non U.S. flag vessels must not exceed 15 years of age and must be registered highest in Lloyd's or equivalent classification society.  Applicable to U.S. Flag vessels - Extra insurance owing to vessel's age, flag, type, configuration (including ITB), class or ownership to be for owners' account, but not exceeding New York market rates for U.S. flag vessels.

19.  Bills of lading to be issued in accordance with shore figures.  If any discrepancies between shore figures and ship's tank ullages, then shore figures shall prevail.

   Full set of ‘Shipped on Board’ Tanker Bills of Lading marked “Clean“ and “Freight

   Payable as per Charter Party”, must be signed and released to Charterer and or their

   agent. Bills of Lading cannot be claused and must include the name of the vessel

  “Owner” as stated in the governing Charter Party.

   Additional documents to be provided by Vessel Owner:

- Original Vessel Owner’s certificate of the last 3 cargoes as per FOSFA

  rules.

Said Certificate to be couriered by Owner or their agent to BKA Logistics LLC within 48 hours of vessel sailing from the load port. The additional documents/certificates listed above must be provided in original form with original blue ink signatures.  Electronic certs not acceptable.

20.  Freight rates to be quoted per Metric Ton (MT) Free In with no demurrage/ no despatch /no detention and Berth Terms discharge with no demurrage/ no despatch no detention basis one loading berth/ one loading port to one discharging berth / one discharging port.  Plus additional freight for each additional load/discharge berth or port, if used.

All proposals will be evaluated on the rates submitted in WBSCM. Free form remarks are not evaluated and are for informational purposes only and to cover optional ports, optional discharge rates, etc.

Offers submitted under this invitation are required to have a canceling date no later than the last contract layday as above, and the vessels which are offered with a canceling date beyond the laydays specified above will not be considered. Offers of named vessels only. No vessel substitution is permitted without NCBA CLUSA and USDA approval.

Offers should also include the following information: Vessel type, number of cargo systems, number of tanks, discharge equipment including hoses, current employment and position of the vessel, and proposed itinerary of the vessel with ETA at load and discharge ports.

U.S. flag non-liner vessels which exceed 15 years of age from date of original construction must offer an alternate freight rate (one way rate) to be applicable in the event the vessel is either scrapped or vessel ownership is transferred to another owner after discharge at destination, but prior to its return to the United States.

If owners intend to lighten, the offer is to specify the cost of lightening. If lightening is not performed at the discharge port and vessel directly discharges at berth, the lightening cost will be deducted from ocean freight.

21.  Provisions applicable to U.S. Flag vessels

(a) U.S. Flag approved freight rates will be reduced to a level not higher than Maritime Administration fair and reasonable rate in the event that originally approved vessel is substituted by a lower cost vessel (including tug and/or barge).

(b) For U.S. Flag vessels loading less than a full cargo, the less than full cargo freight rate will be subject to reduction to meet any revised Maritime Administration freight rate guideline due to vessel loading other additional cargo.

(c) U.S. Flag offers will not be considered if the vessel operator has not provided the Maritime Administration with the vessel costs prior to submission of the offer.

(d) U.S. Flag vessels which require approval from the Maritime Administration to participate in preference cargoes because of Operating Differential Subsidy (ODS), contractual constraints or because of reflagging/foreign construction issues must obtain such MARAD approval prior to submission of bids.

(e) One way rates must be quoted in addition to round trip rates for non-liner U.S. Flag vessels whose date of original construction exceeds fifteen years from date of fixture.

22.  Further details and additional terms are subject to the terms and conditions of the NCBA CLUSA Proforma Charter Party (free in/berth terms discharge - Food For Progress (as current). which is available upon request from BKA Logistics LLC, Washington, DC. In event of any terms and condition of this IFB are in conflict to the Proforma CP, the IFB terms shall prevail over the Charter Party terms and shall be incorporated into the governing Charter Party.

23.  NCBA CLUSA reserves the right to accept or reject offers.

24.  Only offers which are responsive to this IFB will be considered and no negotiation is permitted. Only firm offers will be considered. 

25.  Commission: 1.67 percent on freight / deadfreight is payable to BKA Logistics LLC.

26.  All fixtures resulting from this tender are subject to approval by USDA and NCBA CLUSA.

For further information, contact:

BKA logistics LLC, Washington, DC

Telephone: 202-331-7395, fax: 202-331-7735; Email: mark.millard@bkalogistics.net