---
title: "Contracts"
canonical: "https://flagshiphelpcenter.myekos.com/space/EHC1/3193667736/Contracts"
format: markdown
---
[BULK FUEL HELP] 

# Contract Grid

EKOS helps you manage your bulk fuel contracts from one or more suppliers. This application allows you to see all the Bulk Contracts you have with different suppliers and detailed information on each contract. You can track the status of the contract, and EKOS will also decrement each order from contracts with volumes. 

![image](media://198e18d4-c489-4066-9522-235d313a7e20)

You can filter this grid by active and closed contracts and view the following key details:

- **Contract Name: **This is typically the name of the contract company; users can name this contract whatever they want to make managing each contract easy for them.
- **Contract Number:** This is a customer entered field, the contract number assigned by the customer
- **Status:** This will show if the current contract is active, or has been completed
- **Supplier Logo:** The logo of the supplier you are contracting fuel with will appear
- **Supplier:** This is the name of the supplier you are contracting fuel with
- **PO #**
- **Loading #**
- **Pricing Method**
- **Price by Site**
- **Unit of Measure: ** Users can select the units to come in gallon/liters or barrels
- **Currency**
- **Contract Type: **
  - Fixed forward: This is a contracted price for some fixed amount of time. For example, the fixed price could be $3.40 for fuel for the next 6 months. This is the price that users will get no matter what the market does, it is a predetermined amount of time as well as price. No matter what the market price is, you have a fixed price.
  - Index + Diff: This is the most common type of contract. This is the index plus an amount. This changes daily based on what the indexes do. This is the safest across the board because the price is based on where the market moves, based on the index (OPIS or DTN) that was selected.
  - Manual: This is spot buying based off the best quote that you can find for a particular day. Users may be able to get a better price than a contract here depending on what the market is doing. There is a risk if prices skyrocket, or if there is a shortage on fuel you may not be able to get fuel at all.
- **PRA**
- **Benchmark: **This shows you which benchmark preference you selected between DTN and OPIS
- **Freight Setup**
- **Product: **This indicates which type of fuel the user will be receiving
- **Effective Date: **This is the date that the contract starts
- **Daily Effective Time**
- **Expiration Date: **This is the date that the contract expires
- **Closed Date**

Users can update the current information on the contract or view a more detailed look at each specific contract. This will display the number of contracted units with each specific supplier, as well as the remaining allocation and days left in the contract. Any bulk contract order requests are listed and EKOS provides a place to upload any documentation users want to save to each specific supplier and contract. This is done by simply clicking on the “select file” button, or users can drag and drop documentation onto the page. 

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# Create Bulk Contract 

EKOS allows users to create new contracts here. To access this feature, go to the Bulk Fuel Module > Create Contract. This will bring you through a step-by-step process of how to create a contract.

STEP 1

Enter contract and supplier details that follow:

- Contract Name
- Contract Number
- Supplier
- PO Number
- Status
- Supplier/Vendor #
- Loading Num: the contract loading number is the number assigned to the customer for lifting by the carrier at the terminal. Numbers are typically assigned according to the state of the destination.
- Any additional notes you want included

STEP 2

Choose a pricing method so EKOS knows how to setup the contract.  EKOS has 4 pricing methods that you can choose from, and they are displayed below.

### Contract Types 

1. All included (Fuel + Freight in one number):
  1. A contract that is setup with an All Included pricing method is designed so that the supplier provides one price that includes both the fuel and the freight (including ancillaries).
  2. All Included contracts are also known as “Delivered Price” contracts or “Laid-in” contracts.  Delivered price in this case means that the price includes everything to get the fuel delivered to the tank.  Laid-in is a similar term that was coined in the retail fuel industry to mean the total cost of the fuel that was laid into the tank.
  3. Contracts with an All Included price method can be setup with a contract type of Benchmark + Diff or a Fixed Forward.
  4. All included contracts do not need a freight setup or freight ancillary setup since everything is included.
2. Line item – Fuel and Freight:
  1. A contract that is setup with a Line-Item pricing method is designed so that the fuel price (or diff) is separated from the Freight and Freight ancillaries.  The same supplier is responsible for charging both the fuel and freight, and as the same suggests, they are literally separate line items on an invoice.
  2. Line-item contracts provide the buyer more visibility into the actual cost of each component in the supply chain to get the fuel delivered, and many buyers also seek detailed reconciliations by line item.
  3. Contracts with a Line-Item price method can be setup with a contract type of Benchmark + Diff but not a Fixed Forward.
  4. In EKOS, Freight Only contracts do not show a fuel setup section since fuel is not relevant to the contract
3. Fuel Only:
  1. A contract that is setup with a Fuel Only pricing method is designed to only handle fuel and not handle anything regarding freight or freight ancillaries.  The price that is given by the supplier will only specify the price for fuel and will detail out contractual terms related to fuel.
  2. Fuel Only contracts are also known as “FOB Rack” or “FOB Terminal” contracts because the supplier specifies that the fuel will be picked up by the buyer (who arranges the freight) at the rack city or the specific terminal outlined in the contract.  The important part is that the exchange for the transaction is related to when the fuel is pumped through the meter at the terminal into the buyer’s truck…but the transaction and price has nothing to do with the freight or ancillaries.
  3. Contracts with a Fuel Only pricing method can be setup with a contract type of Benchmark + Diff or Fixed Forward
  4. EKOS, for Fuel Only contracts, does not show a freight setup or freight ancillary setup since freight is not relevant to the contract.
4. Freight Only:
  1. A contract that is setup with a Freight Only pricing method is designed to capture a freight contract that is exclusive of fuel.  The contract only deals with freight rates and freight ancillary rates.
  2. Typically Freight Only Contracts are used when a buyer contracts for the fuel using an FOB Rack contract and that forces the buyer to arrange freight themselves.  Therefore, the buyer will go out in the marketplace and obtain a freight only contract to facilitate the hauling of the fuel to the destination site.
  3. Contracts with a Freight Only price method can be setup with a Freight Table or a Site-Specific freight setup.  They will also have an Ancillary Freight setup that allows the user to specify ancillary types and rates for the contract.
  4. In EKOS, Freight Only contracts have a freight setup and a freight ancillary setup since freight can be specified.  You can choose a Freight Table or a Site-Specific freight setup with a line-item contract.
  5. TIP:  You can also key in a freight only contract as a freight table in EKOS.
    1. A freight table does not have several of the fields that constitute a contract, but in a case where the terms of a contract are not memorialized in a document…using a freight table can be setup and allow EKOS to calculate things just like a contract would.
    2. EKOS will assume that the order (if purchased from the supplier) will use the Supplier Freight table.

After choosing a pricing method EKOS will dynamically setup the rest of the page to help you key in only relevant information for your selection. For example, if you choose a Fuel Only pricing method then EKOS will not ask you any questions about freight setup since it is not relevant.

Choose the Unit of Measure and Currency you want in your Contract.

![image](media://b7f6ad55-3e83-4b7c-baa8-3ff8b857db69)

STEP 3

Enter the Fuel and Freight Setup for this Contract.

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## Fuel Setup

1. Benchmark + Diff
  1. A Benchmark + Diff contract is a contract type where the pricing is tied to a benchmark from a Price Reporting Agency.  Once the Benchmark is chosen the supplier would apply a diff (or price amount above the benchmark).  For example, DTN would be the Price Agency and then a benchmark would be Rack Average.  The diff will be in cents per gallon such as $.02.
2. Fixed Forward
  1. A Fixed Forward contract is a contract type that allows the buyer to “fix” the price (based on current markets) that they want for the contract term and requested gallons.  The supplier will go out to the market and arrange the transaction (using financial market hedging instruments) and charge a premium to facilitate (through a broker) the contract.
  2. When the broker is facilitating the transaction…they are only dealing with fuel.  Freight is not relevant.  However, if the supplier (after the market transaction is done with the broker) wants to package freight into the contract then they do an “all included” contract where the fixed forward and freight are combined into one number for the buyer.
  3. For example, a buyer contracts for 420,000 gallons at $2.27 per gallon for the period of up to one year.  The freight could be included in the $2.27 or a separate contract for the freight could be setup in EKOS.
3. Manual
  1. A Manual contract is a contract type where you (the customer) can set the base pricing by feeding it into EKOS…like you own persona custom index.
  2. To set one up you will first have to create the custom index (which is done on a separate screen). Then when you are choosing your PRA in this section you can select the “custom index” option. Then EKOS will present you with a drop down of all the custom indexes that you have created in EKOS. After you select one of your indexes then this contract will be linked to that index and have a basis for reconciliation.
  3. Manual contracts can still have site-based pricing, freight, and ancillaries.
  4. An example of a custom index would be if you had a national deal for DEF and received pricing each day based on an agreed upon basis, then you can setup your custom index and feed the daily prices into EKOS (manually or with an automated file import).
4. Cost Plus (coming soon)
  1. A Cost-Plus contract is a type of contract where the supplier commits to the customer that they will provide (and pass on) their exact cost for the fuel as a basis for the contract.
  2. Typically, the supplier would have to provide proof of the cost so the customer can audit the price.

This type of contract is typically used when the customer and supplier agree to a fixed margin for the supplier…and the supplier then works to get the customer the best market deals for fuel.

![image](media://a56d0372-dc4b-41c4-9b48-aa5be0d733c6)

Enter the compliance period. This will be defined by the supplier in your contract and refers to the number of gallons/units that you are expected to use in the specified period. For example, if the supplier set the compliance period to monthly then they want you to order the specified number of gallons for a month. EKOS will help you track your orders and report to you if you have ordered enough fuel to be in compliance with the contract terms.

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### Freight Setup 

Select a freight set up from the following options:

1. Freight Table
  1. A freight table is a tool that lists out mileage ranges and each range (such as mile 1 through mile 10) has a price per unit for the freight.  The price could also be a flat fee for the range.
  2. Freight tables are very useful for contracts where the supplier is not certain where the fuel will be purchased OR to provide a large menu of prices to accommodate growing or transient operations.
  3. Freight tables are typically accompanied by fuel surcharges that get applied on top of (in addition to) the rates in the base freight table.  Therefore, the base freight table typically stays the same, but the fuel surcharge will fluctuate with the price of fuel in the retail markets.  Some fuel surcharges are also based on the Dept of Energy (DOE) weekly reports.
  4. A fuel surcharge protects the supplier/carrier from escalating prices of fuel used to in the petroleum tanker trucks (which is a cost to the carrier that can’t be accounted for in a static freight rate).
2. Site Specific
  1. Site specific freight rates are used when the customer and supplier agree on an exact rate for the supplier to transport the fuel to the delivery site.  A site-specific freight setup protects the customer from fluctuating freight (due to surcharges), and it also simplifies reconciliations of invoices.
  2. Many customers like site specific rates because freight rates don’t change, even when the supplier elects to pull from a non-customary rack/terminal.  For example, a supplier might have a significant purchase deal at a terminal that is 50 miles further from the customer’s delivery site and they want to execute on that deal despite the additional freight.  In this case the supplier can get the cheaper fuel and the customer does not have to pay the added freight since the freight was locked in.
3. Cost or Cost Plus
  1. A cost (or cost plus) freight setup allows the supplier to charge the customer their cost for freight or their cost plus a markup.
  2. In EKOS, if this freight setup is chosen the EKOS will not be able to reconcile the freight portion of the invoice so EKOS will assume the invoiced portion for freight will be correct.
  3. In terms of industry best practices, the EKOS recommends using a different freight setup than a Cost- or Cost-Plus setup.
4. Point to Point (coming soon)
  1. Point to Point freight rates specifically define the rates from rack cities (or specific terminals) to the customer’s delivery site.
  2. Point to point rates are established when both parties agree that the pull point for the fuel could fluctuate based on market conditions.
  3. For example, suppose a customer had (1) site with (3) potential pull points in the defined in the contract.  On one day the supplier could pull from the first terminal and the next day the supplier could pull from the second terminal.  In each case there would be a freight rate applied from one terminal point to the delivery site.

![Screen Shot 2022-07-05 at 2.26.08 PM.png](media://be81cd3a-129a-434a-9f64-6e54646d52b0)

Tip: Key in your freight tables prior to creating a contract, so EKOS can give you a list of freight tables to connect with this contract. If you need to add a freight table, click [here](https://myekos.com/bulk/freightTable/create)

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### Ancillary Freight Setup

EKOS is displaying all the ancillary types you have loaded into the settings section for the Bulk Module. If the supplier you have chosen for this contract has ancillary types loaded into EKOS then those will be displayed as well.

If you need to add more ancillary types to accommodate your contract then click [HERE](https://myekos.com/bulk/ancillaryType/create).

Once you enter a rate for an ancillary in this section then EKOS will use this rate as the default for the contract and all sites that fall under the contract. This will save you time entering in ancillary rates since you only have to do it here one time.

If you have setup a different ancillary type or want to override the rate for an ancillary at a site level then that will take precedent when EKOS does calculations.

STEP 4

Enter dates and times related to the contract. For the contract dates enter in the following information:

- Effective Date: this is the date the contract begins
- Expiration Date: this is the date the contract ends
- Closed Date: only enter a closed date if this contract is not going to be used any longer or if the contract terms have been met. You can also enter a date here if you are keying in this contract historically for your records. Once you enter a closed date for this contract, then on the Buy Now page (where you order fuel), EKOS will not show this contract. A closed date for a contract can be before the expiration date. For example, you could have used the contracted quantity of gallons prior to the expiration date.

Under the daily price set up section, enter in the daily effective time.

*If you have entered a contract that has pricing by site then when you click save, EKOS will take you back to this page where you can enter your site pricing details. Otherwise, EKOS will take you to a view page of the contract you have just entered.*

Click Save

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### Site Specific Pricing

Add fuel, freight, and ancillary contract details for 1 or more sites and save your line items.

![image-20260814-130346.png](media://9922428b-0166-4d87-a067-bca35a6166b5)