1. PWS CTSC 2.0 20260429.pdf

Attachment 1 to RFP No. FA520926R0003

PERFORMANCE-BASED WORK STATEMENT

FOR

COMMERCIAL TRUCKING SOLUTION CONTRACT 2.0

April 2026

TABLE OF CONTENTS

1 . DESCRIPTION OF SERVICE

1.1. AREA OF PERFORMANCE

1.2. TYPES OF FREIGHT

1.2.1. General Freight

1.2.2. Dangerous Freight

1.2.3. Hazardous Freight

1.2.4. Sensitive Freight

1.3. TYPES OF TRANSPORTATION SERVICES (FAMILY)

2. SPECIAL REQUIREMENTS

2.1. GOVERNMENT SECURITY GUARDS

2.2. DUAL DRIVER PROTECTIVE SERVICE (DDP)

2.3.SAFETY REQUIREMENT FOR ARMS, AMMUNITION AND EXPLOSIVE (AA&E) TRANSPORT

2.3.1. Procedures for AA&E Transport

2.3.2. Pre-load and Arrival Inspections for AA&E Transport

2.3.3. Markings of Vehicles

3. OPERATIONAL REQUIREMENTS

3.1. ORDERING

3.1.1. Ordering Procedures and Fair Opportunity

3.1.2. Ordering Deadline

3.2. LOADING AND UNLOADING

3.2.1. Stuffing, Unstuffing, Mounting and Dismounting of Containers

3.2.2. Loading and Unloading Time (Free Time)

3.2.3. Delayed Loading and Unloading for Containers

3.3. COST OF OPERATION

3.4. POINT-TO-POINT (P2P) AND DISTANCE TABLE

3.4.1. P2P Routes

3.4.2. Distance Rates

3.4.3. Rpetitive Orders of Items In Distance Table

3.5. ROUTES NOT LISTED IN THE PRICING EXHIBITS

3.6. CONTRACTOR-PROPOSED ALTERNATE EQUIPMENT

3.7. ACCESSORIAL SERVICES (Charges Paid by BL or BAS)

3.7.1. Retention of Loaded Truck

3.7.2. Demurrage

3.7.3. Cancellation

3.7.4. Short-Notice Service Premium

3.7.5. Midnight and Early Morning Surcharge

3.7.6. Winter Premium

3.7.7. Material Handling Equipment

3.7.8. Reimbursable Expenses

3.8. CALCULATION OF CHARGES

3.9. DISTANCE MATRIX

3.10. HUMANITARIAN ASSISTANCE AND DISASTER RELIEF

4. GENERAL INFORMATION

4.1. NON-PERSONAL SERVICES

4.2. BUSINESS RELATIONS

4.3. GOVERNMENT CONTRACT MANAGEMENT

4.3.1. Contracting Officer (CO)

4.3.2. Transportation Officer (TO)

4.3.3. Ordering Officer (OO)

4.4. CONTRACTOR CONTRACT MANAGEMENT

4.4.1. Contract Manager (CM)

4.4.2. Third Country Nationals (TCN)

4.4.3. English Capability

4.4.4. Removal of Contractor Employees

4.4.5. Subcontract Management

4.5. QUALITY ASSUARANCE

4.6. GOVERNMENT REMEDIES

4.7. JAPANESE TAX EXEMPTION

4.8. SECURITY

4.8.1. Installation Base Passes

4.8.2. Gate Passes

4.8.3. Vehicle Passes

4.9. LIABILITIES

4.9.1. Report of Damage, Destruction, Injury or Death

4.10. U.S. LEGAL HOLIDAYS

5. SERVICE SUMMARY

6. DELIVERABLES

7. GOVERNMENT-FURNISHED SERVICES

8. TECHNICAL EXHIBITS. ........................................................................................................................... 20-38

A. General Trucking Services

B. Reefer Trucking Services

C. Oversized/Overweight Trucking Services

D. ISO Container Trucking Services

E. Air-suspension Trucking Services

F. Material Handling Equipment Services

G. Multimodal Transportation (Ferry, Rail, and Air) Services .............................................................. 34-38

9. APPENDIXCES. ........................................................................................................................................... 39-40

A. Distance Matrix for Mainland Japan

B. Distance Matrix for Okinawa

1 . DESCRIPTION OF SERVICE.

The Contractor shall provide all personnel, equipment, and services required for the on-demand transportation of Government freight using Contractor-provided vehicles, as scheduled by the Government on any calendar day.

The Contractor shall be fully authorized to operate and perform all services required by this Performance Work Statement (PWS), in accordance with (IAW) the terms of this contract and all applicable Government of Japan (GOJ) laws, regulations, and trade practices. Throughout this document, the slash symbol (/) shall be interpreted to mean "and/or".

This PWS supports the Commercial Trucking Solution Contract 2.0 (CTSC 2.0) contract, which consolidates transportation requirements for mission partners throughout Japan, including Okinawa. The scope covers a high volume of orders, estimated to exceed 10,000 annually, and encompasses both predictable, recurring missions (e.g., Commissary missions) and variable missions that fluctuate with military operations. The Contractor must be prepared to support this diverse and dynamic operational tempo.

1.1. AREA OF PERFORMANCE. The areas of performance shall be throughout Japan to meet transportation requirements. The area definition IAW the Ministry of Land, Infrastructure, Transport and Tourism of Japan (MLIT) is listed below. The Point-to-Point (P2P) routes are specified in the Pricing Exhibits.

• Hokkaido Area: Hokkaido.

• Tohoku Area: Aomori, Iwate, Akita, Miyagi, Yamagata, Fukushima.

• Kanto Area: Ibaraki, Tochigi, Gunma, Yamanashi, Saitama, Chiba, Tokyo, Kanagawa.

• Hokuriku-Shinetsu Area: Niigata, Nagano, Toyama, Ishikawa.

• Chubu Area: Shizuoka, Gifu, Aichi, Mie, Fukui.

• Kansai Area Shiga, Kyoto, Nara, Wakayama, Osaka, Hyogo.

• Chugoku Area: Tottori, Shimane, Okayama, Hiroshima, Yamaguchi.

• Shikoku Area: Tokushima, Kagawa, Ehime, Kochi.

• Kyushu Area: Fukuoka, Saga, Nagasaki, Kumamoto, Oita, Miyazaki, Kagoshima.

• Okinawa Area: Okinawa.

1.2. TYPES OF FREIGHT. The Contractor shall transport the following property upon order issued by the Ordering Officer (OO) or the Contracting Officer (CO).

1.2.1. General Freight consists of all types and descriptions other than dangerous, hazardous, or sensitive freight as further defined below.

1.2.2. Dangerous Freight consists of items which are applied to the following GOJ laws and ordinances with revisions thereto. These items must be transported IAW such laws/ordinances. An additional charge for transporting this freight is specified in the Pricing Exhibits:

• Fire Defense Law (Law No. 186, 24 July 1948)

• Poisonous and Deleterious Substances Control Law (Law No. 303, 28 December 1950)

• High Pressure Gas Safety Law (Law No. 204, 7 Jun 1951)

• Other related laws/ordinances

1.2.3. Hazardous Freight consists of low explosives, high explosives, or such other materials of explosives listed under the following GOJ laws and ordinances with revisions thereto. These items must be transported IAW such laws/ordinances. An additional charge for transporting this freight is specified in the Pricing Exhibits:

• Explosives Control Law (Law No. 149, 4 May 1950)

• Other related laws/ordinances

Based on shipping information provided by the OO, the Contractor shall obtain a GOJ clearance from the Prefectural Public Safety Commission responsible for the area from which the explosives are shipped, and it must be carried when the explosives are being transported. In addition, the Government shall provide special (safety) instructions including truck inspection to the Contractor’s driver(s) prior to releasing the truck loaded with explosives. Written instruction and inspection shall be bilingual to ensure driver(s) fully understand the contents.

1.2.3.1. As defined in the GOJ Explosives Control Law, the following Items shall not require the GOJ clearance based on net explosive weight (NEW) or quantities specified below. They shall be defined as sensitive freight specified in paragraph 1.2.4 under the contract, however, the Contractor shall not be relieved from complying with the said laws/ordinances and instruction/inspection related to hazardous freight.

• Low explosives: NEW of 200 kilograms or less.

• High explosives: NEW of 100 kilograms or less.

• Blasting caps, electric and non-electric: 40,000 each or less.

• Small arms primer: 400,000 each or less.

• Detonating cord: 6 kilometers length or less.

• Live or blank small arms ammunition (SAA) NEW of 0.5 grams or less per round: 400,000 each or less.

• Live or blank SAA NEW of over 0.5 grams per round: 200,000 each or less.

• Other explosive materials not listed above: NEW of 100 kilograms or less.

Remarks: When transporting two or more items mentioned above on the same truck, NEW or quantity of the items shall be divided by the applicable weight or quantity specified above, and the sum of the percentages shall not exceed 100% IAW GOJ Explosives control Law and applicable ordinances. In case the sum of the percentages exceeds 100%, a GOJ clearance is required, and the items shall be transported as the hazardous freight under the contract.

1.2.4. Sensitive Freight consists of any freight which requires a high degree of protection while in transit as designated by the OO. An additional charge for transporting this freight is specified in the Pricing Exhibits. It includes explosives which do not require a GOJ clearance under the GOJ Explosives Control Law (See paragraph

1.2.3 above).

1.3. TYPES OF TRANSPORTATION SERVICES (FAMILY). There are nine (9) types of required transportation services: General Trucking, Reefer Trucking, Oversized/Overweight Trucking, ISO Container Trucking, Air-suspension Trucking, Material Handling Equipment, and Multimodal Transportation (Ferry, Rail, and Air). The specific requirements, specifications, and capabilities for each service category are defined in their corresponding Technical Exhibits (See Section 8). The Contractor shall provide transportation services to cover one and/or all the categories of services as listed in the Technical Exhibits. When a modification only affects the requirements of a specific service family, the scope of the update will be limited to the corresponding Technical Exhibit.

2. SPECIAL REQUIREMENTS.

2.1. GOVERNMENT SECURITY GUARDS. The Government reserves the right to furnish security guards or military police escorts for any or all vehicles performing services under this contract. If required by the OO, the Contractor shall permit one (1) security guard or escort to ride on any vehicle at no additional charge. The Contractor is not required to provide return transportation for the security guard to the point of origin. In the case of Dual Driver Protective Service, the Government will provide transportation for the alternate driver.

2.2. DUAL DRIVER PROTECTIVE SERVICE (DDP). Any truck transporting sensitive or hazardous freight shall be manned by two (2) drivers possessing applicable driver’s licenses. The loaded vehicle shall be attended at all times by at least one of the drivers. During brief, necessary stops, this driver must remain in the vehicle's cab or within 25 feet of the vehicle, and not in the sleeper berth. The OO will require drivers to have company-verified reliability checks, consistent with the standards applied to similar shipments for the Japanese Self-Defense Forces (JSDF). For shipments under Dual Driver Protective (DDP) service, both drivers must sign DD Form 1907 upon assuming responsibility for the shipment.

2.3. SAFETY REQUIREMENT FOR ARMS, AMMUNITION AND EXPLOSIVE (AA&E)

TRANSPORT. The Contractor may be required to provide trucks with wood beds when directed by the OO. The Government will nail wood-blocking and brace to the wood truck floor IAW the applicable regulations at the loading points. The Contractor shall comply with the following requirements when transporting arms, ammunition and explosives (AA&E) (Reference: C3.3 and C3.16, DOD 4145.26-M, most recent version.)

2.3.1. Procedures for AA&E Transport. For AA&E shipments, the Contractor may be subject to the following procedures specified by the OO prior to transporting AA&E shipments, as a minimum:

(a) Breaks shall be set and the wheels chocked when the possibility exists that the vehicle could move during loading or unloading.

(b) AA&E shall not be loaded or unloaded when a motor vehicle’s engine is running, unless the engine is providing power to accessories used in the loading and unloading, such as mechanical handling equipment.

(c) Motor vehicles transporting AA&E within the installation but outside the explosives area shall bear at least two appropriate placards identifying the hazard division of the AA&E. These placards should be removed or covered whenever the vehicle is not loaded. Reflectorized placards are preferred.

(d) The vehicle operator shall be trained in emergency procedures to be followed in the event of a vehicle fire, breakdown, accident, damaged or leaking containers, and spilled AA&E material.

(e) In the case alternate procedures are required by the OO, coordination will be done prior to performance.

Cancellation premium shall not apply if Contractor vehicle fails to meet the coordinated procedures to perform.

2.3.2. Pre-load and Arrival Inspections for AA&E Transport. For AA&E shipments, the Contractor may be subject to the following inspections to ensure safe and efficient transportation:

2.3.2.1. Pre-Loading Motor Vehicle Inspections:

(a) Vehicles are in safe operating condition.

(b) Batteries and wiring are not in contact with containers of AA&E.

(c) Exposed ferrous metal in the interior of the vehicle body is covered with non-sparking material when scrap and bulk explosives are being transported in containers that could be damaged or when explosives could otherwise become exposed.

(d) A serviceable portable fire extinguisher of the appropriate class is carried on the motor vehicle IAW the referenced manual and the local standards.

2.3.2.2. Arriving Motor Vehicle Inspections:

(a) Vehicles loaded with AA&E shall be inspected upon arrival at remote sites. If no problems are found vehicles may be opened for interior inspection or moved to a designated unloading location.

(b) Motor Vehicles loaded with AA&E that are suspected of being in a hazardous condition shall be moved to a truck site that is separated from other potential explosion sites or exposed sites by the applicable quantity distance criteria.

(c) Vehicle should be inspected by the Government Quality Assurance Specialist (Ammunition Surveillance) personnel and the Contractor after unloading AA&E to ensure that they are clean and free from loose explosives and flammable materials and that placards and vehicle certificates have been removed.

Explosives waste cleaned and removed from the floors shall be disposed properly.

(d) In the case alternate inspections are required by the OO, coordination will be done prior to performance.

Cancellation shall not apply if Contractor vehicle fails to meet the coordinated inspections to perform.

2.3.3. Markings of Vehicles. Vehicles transporting explosives on public highways shall display prominent explosive signs on both the front and rear. These signs shall be approximately 38 centimeters (15 inches) square, featuring a white Japanese Kanji or symbol for 'explosive' in white on a red background. For nighttime transport, the markings shall be clearly visible from the front and rear at a minimum distance of 150 meters (492 feet).

3. OPERATIONAL REQUIREMENTS.

The Contractor shall perform services when scheduled by the OO at any time during any calendar day to meet the established loading and unloading dates and times. The Contractor is required to follow the operational definitions and requirements described below.

3.1. ORDERING. The Contractor shall transport freight IAW the OO's instructions to meet all established loading and unloading schedules. Oral requests (e.g., telephone) are not considered valid orders unless and until they are confirmed in writing via electronic mail. In case of urgent requirements, preliminary directions may be given orally but must be followed by written confirmation. The OO has broad discretion in determining the level of detail and specificity of individual transportation actions to meet the unique needs of their mission. When an order for services is placed with the Contractor, the OO will typically specify the loading and unloading points, reporting time and date at loading and unloading points, size and type of truck, nature of freight, estimated weight/cubic measurement including quantity, route requirements, advance delivery requirements for Contractor-owned container chassis, and ferry/rail/air service, if required.

3.1.1. Ordering Procedures and Fair Opportunity. All services under this contract shall be ordered IAW the following procedures, which are based on the estimated dollar value of the requirement and adhere to the principles of Fair Opportunity as set forth in the Federal Acquisition Regulation (FAR).

3.1.1.1. Ordering Procedures. Services shall be ordered via either a Task Order issued by the Contracting Officer (CO) or a smaller-scale order placed by a duly appointed OO, as detailed below.

(a) Orders Below the Micro-Purchase Threshold (MPT): For requirements with an estimated value below the current Micro-Purchase Threshold (MPT), a Fair Opportunity process is not required. An OO may place an order directly with the Contractor that is deemed to provide the best value and is most advantageous to the Government.

(b) Orders Above MPT up to $25,000: For requirements with an estimated value exceeding the MPT but not exceeding $25,000, the OO shall consider Fair Opportunity among all contract holders within the relevant "Family" (as defined in Section 1.3.). The OO will place the order with the Contractor selected based on this consideration.

(c) Orders from $25,001 up to the Simplified Acquisition Threshold (SAT): For requirements with an estimated value exceeding $25,000 but not exceeding SAT, the Government will provide a Fair Opportunity to all contract holders within the relevant "Family." The CO will provide the final approval for any order in this tier.

(d) Orders Exceeding SAT or In-Scope, Unpriced Requirements: A formal Fair Opportunity Proposal

Request (FOPR) process, culminating in the issuance of a Task Order by the CO, is required for two distinct types of requirements:

(1) High-Value Requirements: Any requirement with an estimated value exceeding SAT.

(2) Unpriced, In-Scope Requirements: Any requirement that the CO determines to be within the general scope of the contract but is not specifically priced in the PWS or its associated Price Exhibits. This formal process is required regardless of the estimated dollar value of the requirement.

The CO will determine the appropriate pool of contract holders for each FOPR, which may be defined by “Family,” geographic region, required capabilities, or may include all contract holders, as deemed in the best interest of the Government. Based on the evaluation of proposals received in response to the FOPR, the CO will issue a firm-fixed-price Task Order to the successful Contractor(s).

3.1.1.2. Changes Exceeding Ordering Officer (OO) Authority: If a proposed change would cause, or is reasonably expected to cause, the cumulative value of an order to exceed the OO’s delegated authority (e.g., $25,000), the following process shall apply:

(a) Contractor Notification: The Contractor shall immediately notify both the CO and the OO before proceeding with any work associated with such change.

(b) Conditional Authorization: The Contractor may proceed with such change only upon direction from the CO. In situations where delays could materially affect mission requirements, as determined by the Government, directions may be provided by an authorized representative designated by the CO. Such directions may be provided verbally or via electronic communication, provided that written confirmation is issued as soon as practicable thereafter.

(c) Limitation on Work: In the absence of CO direction, the Contractor may continue performance only within the current authorized order value.

(d) Unauthorized Work: Any work performed without CO authorization may be considered unauthorized and not compensable.

3.1.1.3. Payment Procedures. The Transportation Officer will issue a Bill of Lading (BL), using USFJ Form 334EJ or a Commercial Bill of Lading (CBL), for each shipment. The BL serves as the primary record for shipping services and as a supporting document for all invoice verification.

(a) BL Issuance Process and Conditions:

(1) Content of BL: To ensure clarity for payment, the Transportation Officer shall specify the terms and conditions for which payment is due (e.g., size/type of truck ordered, ferry routes, authorized accessorial services) in the "Remarks" column of the BL.

(2) Issuance Timeline and Exchange: The Government shall provide one (1) original (or in a digital format)

BL to the Contractor within fifteen (15) calendar days after the shipment is completed.

(3) Lost BL Procedure: In the event an original BL is lost, rendered unusable, or destroyed, a Certificate in Lieu of Lost Bill of Lading (USFJ Form 376EJ) shall be used to document the shipment.

(b) Methods of Payment:

(1) Primary Method (Syncada): The primary method for all payments under this contract shall be via Syncada. The Contractor shall submit invoices through the Syncada system for all services, unless an alternative method is authorized.

(2) Alternative Method (Legacy Payment): In circumstances where the primary Syncada system cannot be utilized, an alternative Legacy payment method, such as the one provided by DFAS, is authorized for processing payments. This legacy approach can be employed under specific conditions such as, when Syncada is unavailable due to systemic or technical failure, or when the specific service type, like standalone BAS charges or Multiple-TAC, cannot be processed through Syncada. Additionally, its use is authorized if both parties have mutually agreed in writing to employ the Legacy method for a particular transaction because of operational constraints.

(c) Invoicing and Certification for Legacy Payments:

(1) The BL (USFJ Form 334EJ) and BAS (USFJ Form 416EJ) shall not be used as direct payment instruments. Their use is restricted to supporting documentation for invoices, primarily in Legacy Payment cases as defined in paragraph (b)(ii). The Contractor is strictly prohibited from invoicing the same service through both Syncada and a Legacy payment system. The submission of a duplicate invoice shall be grounds for corrective action as stipulated in this contract.

(2) Certification Requirement: For any invoice submitted for Legacy payment, the Contractor must provide the following written certification: "The Contractor certifies that the services described in this invoice have not been submitted for payment through Syncada and no duplicate payment has been or will be requested for these services."

3.1.2. Ordering Deadline. The specific ordering deadline for each service category is detailed within the corresponding Technical Exhibits. Contractors shall refer to the applicable Technical Exhibit(s) for all ordering time requirements. The term "business days" used herein covers Monday through Friday excluding United States Federal holidays specified at Paragraph 4.10. Orders completed after 14:00 JST shall be considered as the next business day order.

3.2. LOADING AND UNLOADING. Unless specified otherwise in the shipping documentation for a given shipment, all freight shall be loaded and unloaded by the Government. When the Contractor is required to perform loading and/or unloading services, such as forklift or crane operations, the requirement shall be explicitly stated in the written instructions authorizing the shipment. For the purposes of this section, "written instructions" may include, but are not limited to, a formal Task Order, an explicit notation in the "Remarks" column of the BL, or a direct email communication from the OO. Regardless of which party performs the loading and unloading, the Contractor shall not be relieved from responsibility for the proper stowage and securing freight against loss, damage, or spoilage while freight is in transit.

3.2.1. Stuffing, Unstuffing, Mounting and Dismounting of Containers. Stuffing, unstuffing, mounting, and dismounting of containers shall be performed by the Government. However, the Contractor shall not be relieved from the responsibility for the proper stowage and securing of freight against loss or damage while in transit. As required, the Government reserves the right to reposition the Contractors chassis while performing stuffing, unstuffing, mounting or dismounting on a Government Installation.

3.2.2. Loading and Unloading Time (Free Time). The Contractor shall provide loading and unloading time of one (1) hour at no additional cost to the Government for all types of transportation services (Family). Loading and unloading time begins at the time transport arrives or is placed by the Contractor at the freight loading or unloading point within each installation and notice is given to and acknowledged by the OO or designated representative. Pre-cooling for loading shall not be included in the free time for Reefer Trucking Services.

3.2.3. Delayed Loading and Unloading for Containers. If stuffing or unstuffing cannot be completed within the allowable time, at the discretion of the OO, the container may be off-loaded from the truck and left at the Government installation, and the truck will be released. In this case, stuffing and unstuffing shall normally be completed within two (2) calendar days of the date of transport (including date of the delivery).

3.3. COST OF OPERATION. All costs of operation under this contract shall be borne by the Contractor, including but not limited to licenses, administrative costs for pass applications and document collection, toll fees, costs of overtime/Sunday or holiday work, ferry charges, or for operations during stormy or inclement weather.

The only exception is for pre-authorized as Accessorial Services. As a general guideline, toll roads shall be utilized for all medium range (100-445 km), long range (over 450 km) and inter-prefectural routes, unless usage is deemed impractical for a specific route or is determined not to be in the best interest by both parties.

3.4. POINT-TO-POINT (P2P) AND DISTANCE TABLE.

3.4.1. P2P Routes. The pricing for transportation services under this contract is, in principle, applied as a fixed price based on "P2P Scheduled Routes" connecting specific origins and destinations, as defined in the Pricing Exhibits. This pricing structure is intended to enhance predictability for both parties.

3.4.1.1. Definition and Application. A P2P Scheduled Route refers to a one-way transportation service between a specific origin (e.g., Sagami General Depot) and a specific destination (e.g., US Fleet Activities Yokosuka), as explicitly defined in the Pricing Exhibits. When the Government requests a service corresponding to a P2P Scheduled Route, the applicable fixed price listed in the Pricing Exhibit for that route shall generally be applied, unless otherwise determined by the CO, as the total cost, inclusive of all standard operational expenses (including fuel, labor, payment associated fee and tolls). No additional charges shall apply, except under specific conditions separately defined in this PWS. These P2P Scheduled Routes have been selected as frequently used segments based on historical usage data.

3.4.1.2. Route Deviations. If, during the execution of a P2P Scheduled Route, a deviation from the original route or an additional stop is directed by OO, the service may be reclassified as a "Distance Rate" as determined by the CO and the pricing formula in Section 3.4.2. may apply. The determination of whether a deviation is minor or significant shall be made by the CO, acting reasonably, based on factors including, but not limited to, additional distance and operational impact. The Contractor shall promptly notify the CO of any such service-altering instructions.

3.4.2. Distance Rates. This section establishes a distance-based rate structure to calculate pricing for "Custom Routes" not listed in the P2P routes in a fair and transparent manner. This rate structure, while aligned with the principles of standard fare systems published by the MLIT, is a contract-specific table rate that simplifies application by consolidating all of Japan into two (2) distinct pricing blocks.

3.4.2.1. Definition of Pricing Blocks. For the application of distance-based rates under this contract, the following two pricing blocks are established:

(a) Mainland Block: Applies to all origins, stop-overs, and destinations within Hokkaido, Honshu, Kyushu, Shikoku, and their associated islands connected by bridges or tunnels.

(b) Okinawa Block: Applies to all origins, stop-overs, and destinations within Okinawa Main Island and other islands in the Okinawa Prefecture.

3.4.2.2. Price Calculation Process. The price for a Distance Rate Table shall be determined according to the following process:

(a) Calculate Transportation Distance and Duration: The chargeable distance shall be defined as the distance of the freight movement segment only, from the point of cargo pick-up (Point A) to the point of final cargo delivery (Point B). This distance, along with the estimated duration for the entire service period (including positioning and de-positioning), shall be calculated based on the most efficient commercial route. Deadhead mileage (i.e., travel from the Contractor's garage to Point A, and from Point B back to the garage) is not separately billable and is considered incorporated into the overall rate structure.

(b) Finalize Price: The price shall be determined based on the total freight transportation distance as follows:

(1) For distances up to 200km: The final price is the sum of the applicable "Distance (KM)" rate and the

"Duration (HR)" rate, as specified for the corresponding distance bracket in the Pricing Exhibit.

(2) For distances over 200km: The base price for the initial 200km (i.e., the sum of the rate for the "up to

200km" distance bracket and the total estimated duration rate). PLUS, for the distance segment from 201km up to 500km, the incremental charge listed in the Pricing Exhibit ("Additional amount per 20km increment") is applied for each full or partial 20km block beyond 200km. PLUS, for the distance segment over 500km, the incremental charge listed in the Pricing Exhibit ("Additional amount per 50km increment") is applied for each full or partial 50km block beyond 500km.

The price determined by the Distance-Based Rate Tables is comprehensive and shall be inclusive of fuel, labor, payment associated fee, and highway/toll fees for the specified segment. No additional charges will be permitted, except as otherwise stipulated in this PWS.

3.4.3. Repetitive Orders Of Items In Distance Table. Reserved Items in “P2P” Groups in the Pricing Exhibits are to be used for unforeseen requirement. When repetitive orders are required for a specific service under the rates indicated in the Tables, upon written request of either the Contractor or the Government, the said service may be incorporated into the “P2P” pricing exhibit by way of a supplemental agreement to the contract.

3.5. ROUTES NOT LISTED IN THE PRICING EXHIBITS. Occasionally, an OO will have a transportation requirement that is not currently covered either by the P2P routes or the standard distance rate tables. In these cases, the CO will place orders via FOPR.

3.6. CONTRACTOR-PROPOSED ALTERNATE EQUIPMENT. In the event of the non-availability of specified equipment, the Contractor is permitted to propose the use of alternate equipment, provided it offers capabilities that are equivalent or superior to those specified for each Exhibit Line Item Number (ELIN). Any such proposal must adhere to the following conditions and procedures:

(a) Conditions for Proposal: A proposal for substitution must be supported by technical documentation that clearly demonstrates the alternate equipment meets or exceeds all critical performance aspects of the required equipment (e.g., load capacity, temperature control, security).

(b) Approval Process:

(1) Submission: The Contractor shall submit a written request for substitution to the OO and CO for review.

To ensure timely consideration, requests shall be submitted at a reasonable time in advance of the required service date.

(2) Review and Consent: Substitution is permissible only under the express prior written consent of the CO.

The CO, in consultation with the OO, will evaluate the proposal based on technical equivalence, operational suitability, and the best interest of the Government.

(3) Final Authority and Responsibility. The CO's decision to accept or reject a proposed substitution is final.

This clause does not obligate the Government to accept any proposed alternative, nor does it relieve the Contractor from the responsibility of providing the originally specified equipment if the substitution is not approved.

(4) Cost Savings Consideration: If a proposed substitution results in cost savings to the Contractor, the Contractor's proposal shall include a plan for sharing those savings with the Government. The CO will consider the proposed cost savings as a factor in the approval decision. Acceptance of the substitution may be conditioned upon a downward adjustment of the contract price.

3.7. ACCESSORIAL SERVICES.

3.7.1. Retention. When specifically scheduled by the OO, the Contractor shall leave a loaded truck in the designated Government installation overnight or for other extended periods outside of normal working hours. The specific start and end times for any required layover period shall be explicitly stipulated in each individual order, and the Contractor shall ensure their vehicle remains at the designated location for the entire directed period. This service shall be priced IAW the applicable "Vehicle Detention" or "Overnight Layover" rates as specified in the Pricing Exhibits, based on the times defined in the order.

3.7.2. Demurrage. If through no fault of the Contractor, a vehicle is not loaded and dispatched or discharged and released within the allowable free time as specified in paragraph 3.2.2., the Contractor shall be entitled to demurrage for detention of the vehicle by the Government. For purpose of payment thereunder, the full half hourly rates shall be paid for any period of time up to and including 30 minutes. The Contractor shall submit a request for demurrage to the OO within thirty (30) calendar days following incurrence of the said charges. In the event the Contractor fails to submit such a request for demurrage as herein required, the Government shall be relieved from all responsibility for such a request unless the Contractor’s delay in submitting the said request is due to circumstances beyond the Contractor’s control, as determined by the CO. Demurrage shall apply only when the delay is unplanned and not pre-authorized in the order. When an extended retention is scheduled in advance by the Government, the applicable Retention charges shall apply instead of demurrage. Under no circumstances shall both charges apply simultaneously for the same period.

3.7.3. Cancellation. In the event a scheduled service is cancelled, rescheduled, or postponed by the Government, cancellation charges, as specified in the Pricing Exhibits, shall apply. The applicable charge is determined by when the cancellation notice is received, based on the day of service, as follows:

(a) Two-Day Prior Cancellation: Applies to any cancellation notice received on the calendar day 2 days prior to the day of service from 00:00 to 23:59.

(b) One-Day Prior Cancellation: Applies to any cancellation notice received on the calendar day preceding the day of service from 00:00 to 23:59.

(c) Same-Day Cancellation: Applies to any cancellation notice received on the day of service after 00:00.

These charges shall apply regardless of whether the Contractor’s vehicle has been positioned at the loading point.

In the case when the truck is held after the expiration of the free time and the transportation is subsequently cancelled by the Government, a cancellation charge equal to the scheduled transportation charge multiplied by the applicable cancellation rate, or the total demurrage charges accrued for the entire period the truck was held.

Demurrage shall not be paid in addition to the cancellation charge and only the greater of the two amounts shall be payable.

In the event the service is scheduled, and the requirement is cancelled after the Contractor has obtained all clearances for transportation of hazardous freight from the Public Safety Commission(s) of GOJ, the Contractor shall be entitled to cancellation charge by submitting evidence to the OO. However, the cancellation charge shall not be accrued when the shipment is rescheduled or postponed due to military necessity within the allowable period of the clearance certificate. Cancellation charges shall not exceed 100% of the total order value.

3.7.4. Short-Notice Service Premium. If an order is placed after the established Ordering Deadline specified in the applicable Technical Exhibit, the Contractor shall be entitled to a billable “Short-Notice Service Premium” to compensate for the operational disruption and expedited resources required. Offerors may propose premium rates between 0% and 50%, to be applied as a percentage uplift to the base transportation cost. Proposed rate shall be subject to evaluation for price reasonableness, and the CO reserves the right to determine the acceptability of such rates. The applicability of the Short-Notice Service Premium shall be determined at the time of order placement by the OO. If an order to which this premium has been applied is subsequently cancelled by the Government, any applicable cancellation charges shall be calculated based on the total order value, inclusive of both the base transportation cost and the Short-Notice Service Premium. For the purpose of cancellation calculations, the Short-Notice Service Premium shall be considered applicable only after the Contractor has confirmed acceptance of the order. If an order is cancelled prior to such confirmation, the Short-Notice Service Premium shall not apply.

3.7.5. Midnight and Early Morning Surcharge. When specifically directed by the OO, the Contractor shall commence the service between 2200 hours and 0500 hours. An additional charge is specified in the Pricing Exhibits.

3.7.6. Winter Premium.

(a) When the Contractor performs service to/from/within Tohoku/Hokuriku-Shinetsu Areas during the period from 1 December through 31 March, a premium shall be applied as a percentage of the applicable base price per truck per movement, as specified in the Pricing Exhibits.

(b) When the Contractor performs service to/from/within Hokkaido Area during the period from 16 November through 15 April, a premium shall be applied as a percentage of the applicable base price per truck per movement, as specified in the Pricing Exhibits.

3.7.7. Material Handling Equipment. Accessorial MHE is defined as material handling equipment (e.g., forklifts and cranes) required for the direct purpose of loading freight onto, or off-loading freight from, a transportation asset (e.g., a truck) being provided by the same Contractor under the same transportation order. This service is considered subordinate to the primary transportation service. If MHE is required for any other purpose, or to service a conveyance not operated by the same Contractor under the same order, it shall not be ordered as an accessorial service. The specific types, sizes, pricing, and ordering rules for Accessorial MHE are detailed within the applicable Technical Exhibit for the primary transportation service being ordered. The service shall be billed IAW the "Accessorial" rates specified in the corresponding Pricing Exhibit, and not as a stand-alone service.

3.7.8. Reimbursable Expenses. The Expenses ELIN shall be used for the reimbursement of incidental Contractor expenditures that are essential for the direct performance of this PWS, subject to the conditions below.

Reimbursement shall be made at actual cost, based on a legible, unaltered receipt. Reimbursement expenses shall not include any costs already covered under other contract line items, including cancellation charges. No handling fees, administrative charges, or profit shall be applied to these reimbursable expenses. All claims must be auditable and verifiable.

(a) Pre-Approved Specific Costs: The following costs may be reimbursed provided they are deemed reasonable and are approved by the OO, whenever practicable, prior to being incurred:

(1) Paid parking fees.

(2) Costs reasonably incurred in connection with obtaining hazardous freight permits, and, where applicable, cancelling such permits, including administrative, documentation and third-party service fees.

(3) Ferry transport, but only for routes not listed in Pricing Exhibit G and when specifically authorized by the

OO for a given order.

(b) Other Unforeseeable Costs (Exceptional Basis Only): In exceptional circumstances, other types of direct, unforeseeable costs may be considered for reimbursement. Reimbursement for any cost not explicitly listed in paragraph (a) above requires the explicit, prior, and written approval of the CO. The Contractor must provide a detailed justification explaining why the cost is necessary and was unforeseeable.

Approval by an OO is not sufficient for this category.

3.8. CALCULATION OF CHARGES. Additional charges shown in percentages shall be calculated based on unit price listed in the Pricing Exhibits (including Distance Rate Tables).

(a) In case the items loaded on a truck are commingled with general/dangerous/hazardous/sensitive freight, the charge is calculated based on the highest rate specified in the Pricing Exhibits.

(b) If more than one (1) increase percentage is applicable, adjustments for such percentages will be made prior to calculation of transportation cost, e.g., if a 30% increase and 5% increase are applicable, transportation charge will be calculated by increasing the price by 35%.

(c) All final calculated charges for each line item shall be rounded to the nearest whole Japanese Yen (JPY).

For rounding purposes, any fraction of a Yen amounting to 0.5 or greater will be rounded up to the next whole Yen, and any fraction less than 0.5 will be rounded down.

3.9. DISTANCE MATRIX.

(a) For Mainland Japan Including Hokkaido: The official addresses listed “In the Clear Address List” of the Military Traffic Management Bulletin (MTMB) No. 2 “Official Table of Highway Distances, Japan” as revised, shall be used as origin and destination locations for distance calculation. P2P routes and the distance matrix for major installations are specified in Appendix A. For transportation between locations identified in Appendix A, the Ordering Office may utilize reliable commercially available tools (e.g., Google Maps (https://www.google.com/maps/), Navitime (https://www.navitime.co.jp/)) at the time of order placement.

(b) For Okinawa: P2P routes and the applicable distance matrix are specified in Appendix B.

(c) Distance shall be established at the time of order placement and shall not be subject to retroactive adjustment unless an error is identified. In the event of discrepancies, such discrepancies shall be resolved by mutual agreement of both parties and in coordination with 374 CONS/PKS.

3.10. HUMANITARIAN ASSISTANCE AND DISASTER RELIEF. The services under this contract may be used to support operations conducted in an emergency environment, including humanitarian assistance and disaster relief. Any such services will be ordered IAW the ordering procedures of this contract and are subject to Contractor availability and operational conditions.

4. GENERAL INFORMATION.

4.1 NON-PERSONAL SERVICES. The Government shall neither supervise Contractor employees nor control the method by which the Contractor performs the required tasks. Under no circumstances shall the Government assign tasks to, or prepare work schedules for, individual Contractor employees. It shall be the responsibility of the Contractor to manage its employees and to guard against any actions that are of the nature of personal services or give the perception of personal services. If the Contractor believes that any action constitutes, or is perceived to constitute personal services, it shall be the Contractor's responsibility to notify the CO immediately.

4.2. BUSINESS RELATIONS. The Contractor shall successfully integrate and coordinate all activity needed to execute the requirement. The Contractor shall manage the timeliness, completeness, and quality of problem identification. The Contractor shall provide corrective action plans, proposal submittals, timely identification of issues, and effective management of subcontractors. The Contractor shall seek to ensure customer satisfaction and professional and ethical behavior of all Contractor personnel.

4.3. GOVERNMENT CONTRACT MANAGEMENT.

4.3.1. Contracting Officer (CO) Operates out of the 374th Contracting Squadron at Yokota Air Base, Japan.

The CO will designate personnel authorized to order services. The CO is responsible for ensuring performance of all necessary actions for effective contracting, ensuring compliance with the terms of the contract. The CO is also authorized to order all actions under this contract to the extent of the authority delegated in their CO's warrant.

4.3.2. Transportation Officer (TO). A Government official with the inherent functional authority to issue and manage transportation-related documentation, including the Bill of Lading (BL). This authority is separate and distinct from any ordering authority.

4.3.3. Ordering Officer (OO). A Government representative who has been formally appointed in writing by the Chief of the Contracting Office (or their designee) to place orders for routine, smaller-scale services under this contract. The OO's authority is strictly limited to the scope defined in their letter of appointment. The OO is not authorized to direct any change that would affect contract price, scope, or terms and conditions. Any such direction must be issued or ratified by the CO. In the event of a conflict between OO direction and contract terms, the Contractor seek clarification from the CO prior to proceeding.

4.4. CONTRACTOR CONTRACT MANAGEMENT.

4.4.1. Contract Manager (CM). The Contractor shall establish clear organizational lines of authority and responsibility to ensure effective management of the resources assigned to the requirement. At a minimum, the Contractor shall provide a CM who shall be responsible for managing the performance of work under this contract. The name of this individual and alternate(s) who shall act for the Contractor when the CM is absent shall be designated in writing to the CO. The CM or alternate(s) shall have full authority to act on behalf of the Contractor on all contractual matters relating to the daily operations of the work performed under this contract.

The Contractor shall establish processes and assign appropriate resources to effectively administer the requirement. The Contractor shall respond to Government requests for contractual actions in a timely fashion. The CM or alternate(s) shall not perform any other services under this PWS without coordination through the CO or designated representative. The CM shall report any problems that are encountered in any work location.

4.4.2. Third Country Nationals (TCN). The Security Forces on each base control entry to the base. Under certain circumstances, the TCN might be denied entry. It is the Contractor’s responsibility to coordinate with Security Forces at each base when there is a question about particular circumstance.

4.4.3. English Capability. The Contractor shall ensure that the CM and CM alternate(s) possesses good communication skills in English. The CM and CM alternate(s) must be able to communicate verbally and in writing in English.

4.4.4. Removal of Contractor Employees. The Contractor shall utilize only experienced, responsible and capable employees in the performance of this contract. The CO may require that the Contractor remove from the Government job any of his/her employees who endanger persons or property, or whose continued employment under this contract is inconsistent with the interests of military security.

4.4.5. Subcontract Management. The Contractor shall be responsible for any subcontract management necessary to integrate work performed on this requirement and shall be responsible for and accountable for subcontractor’s performance on this requirement.

4.5. QUALITY ASSUARANCE. The Government will evaluate the Contractor’s performance by appointing a Contracting Officer’s Representative (COR) to monitor performance to ensure services are received. The COR will evaluate the Contractor’s performance through receipt of complaints from the OOs. The Government will evaluate all of the Contractor’s performance IAW the Quality Assurance Surveillance Plan (QASP).

4.6. GOVERNMENT REMEDIES. The CO will follow FAR 52.212-4, Contract Terms and Conditions- Commercial Items for the Contractor’s failure to perform satisfactory services or failure to correct non-conforming services.

4.7. JAPANESE TAX EXEMPTION. The basis whereby US Armed Forces obtain exemption from Japanese taxes are prescribed in paragraph 3, Article XII of the Status of Forces Agreement under Article VI of the Treaty of Mutual Cooperation and Security between the U.S. and Japan.

(a) The Contractor shall be responsible for submission of the following documents to the 374th Contracting Squadron for verification and issuance of fuel tax exemption certificates under this contract not later than 365 calendar days after receipt of an original BL. The Contractor shall also submit a certified statement to the Contracting Office for claiming deadhead distances for each ordered service during the performance period. The Contractor shall not include deadhead distance for trucks that are owned or used by a third party as this service is not considered for official use for fuel tax exemption purposes. The CO will review the accuracy of the Contractors’ figures on fuel consumption prior to issuance of appropriate tax exemption certificate:

(1) Fuel consumption ratios of truck by size.

(2) Accurate lists of all trucks to be used under this contract with copies of vehicle inspection certificates, and other information if required.

4.8. SECURITY.

4.8.1. Installation Base Passes. For access to US Installations, the US Government will issue all required Gate Passes/Vehicle Passes to Contractor personnel at no cost to the Contractor. To obtain passes, the Contractor is required to submit documents IAW each installation instruction.