12. Vessel SOW-Updated.pdf

(Attachment # 12)

STATEMENT OF WORK

NATIONAL VESSEL CONTRACT

1) INTRODUCTION

The purpose of this Statement of Work (SOW) is to provide relocation, storage, maintenance, appraisal, and disposal services for the United States Marshals Service (USMS), Asset Forfeiture Program. The performance area shall cover all of the United States, its territories, and international locations as necessary.

2) DEFINITION AND TERMS

a) ADDITIONAL PERSONNEL (HOURLY RATE): If additional personnel are required for relocation, the contractor will contact the COR for approval.

b) APPRAISAL: an assessment or estimation of worth, value, or quality performed by a certified appraiser.

c) "AS IS, WHERE IS": Vessels will be sold with no warranty or guarantee whatsoever. Vessels are to be purchased exactly as they appear at auction. They will be sold based on their appearance only. "As is" is a disclaimer of warranties or representations. "Where is" denotes that the buyer takes the vessel as found and must remove it from the point of sale.

d) ASSET ID NUMBER (AIN): This is the asset identifier, assigned to each asset at the time that it is seized (commonly referred to as CATS ID).

e) BLOCK RATE (INITIAL INTAKE) FOR STORAGE: Rate to be utilized for both trailered and non-trailered vessels. Trailered: trailer is raised on blocks to keep tires from contact with the ground;

non-trailered: vessel is raised on blocks to prevent contact with the ground.

f) CAPTAIN'S DAILY RATE: Rate to be utilized for vessels that are relocated under their own power. The captain’s rate will begin 60 minutes prior to the departure time recorded in the vessel logbook for the relocation and end 60 minutes after the arrival time recorded in the vessel logbook for the relocation. All Captain Costs (excluding those items defined in ‘TRAVEL’) will be covered under the daily rate as defined in the pricing schedule.

1) Domestic Near Coastal: no more than 200 nautical miles offshore.

2) Open Oceans: All Waters.

g) COMPONENTS: Any standard or optional vessel equipment that is an integral part of the vessel

(i.e., life jackets, fire extinguishers, charts, engines, outboard motors, lines, rigging, sails, and electronic equipment).

h) CONTRACTING OFFICER (CO): A person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings.

i) CONTRACTING OFFICER'S REPRESENTATIVE (COR): A Government employee who provides technical direction to the contractor. The COR is designated in writing by the CO.

j) DEMURRAGE: A charge payable to the owner of a chartered ship in respect of failure to load or discharge the ship within the time agreed.

k) EMERGENCY REPAIRS: Non-routine repairs that cannot be planned or anticipated (i.e., storm damage from water or wind, vessel taking on water, fuel or fluid leaks etc.).

l) HAUL & LAUNCH: Vessel is hauled out of the water for either inspection or dry dock storage.

Vessel is then launched back into the water, if needed. Vessel shall only incur a one-time charge per request.

m) HIDDEN COMPARTMENTS: After-market storage spaces in a vessel that the contractor may be required to remove, repair, and/or disassemble.

n) KEYS: Upon intake, if keys are available, it should be annotated on intake log. If new and/or replacement keys are requested, COR will provide an STO for approval. This is a cost reimbursable line item.

o) LOADED MILES: The firm-fixed relocation price, as specified in the schedule, is calculated based on the actual or loaded miles from the designated point of pick-up to the designated drop-off point in which a vessel is in tow (via trailer (miles) or by water (nautical miles)). The contractor may not charge for miles traveled en route to the seized vessel pickup point.

p) MECHANICAL REPAIRS: Once a repair is identified, the contractor will notify the COR.

COR will advise the contractor to obtain three (3) quotes if repair is estimated to be over $2,500. Once approved, the COR will submit an STO requesting the repair be completed at the quoted price. This is a cost reimbursable line item.

q) PERSONAL PROPERTY: A broad term for any tangible item other than a vessel and its associated equipment. Examples may include but are not limited to clothing, furniture, jewelry, electronics, and bulk commodity cargo. Personal property may be seized/forfeited, or it may be excluded from the seizure operation. Please note that some larger vessels contain personal property items that are considered part of the vessel. COR consultation is necessary on a case-by-case basis to determine if any particular piece of personal property is to be considered an asset or not.

r) STAGING: When the contractor is requested by the COR to wait at a staging location, not a seizure/pick up location, prior to the actual seizure. The contractor shall be compensated for the wait time and shall be billed under the “Miscellaneous Relocation Charges” CLIN.

s) SUB-TASK ORDER (STO): An order placed by the COR identifying specific line items under the contract.

t) TRAVEL: All costs necessary to transport authorized persons to fulfill requirements associated with this contract. Costs include but are not exclusive to lodging, transportation, meals, and incidental expenses (M&IE) as pre-approved by the COR. All costs are reimbursed; M&IE costs shall not exceed GSA per diem rates found on www.gsa.gov.

u) TUG OPERATOR'S HOURLY RATE: Rate to be utilized for all vessels that are to be pulled by a tug. Hourly rate begins when vessel is hooked up and ends when tug is completed. This is an hourly rate for one (1) tugboat operator. If additional tugs are required to pull a vessel, the hourly rate shall apply to each tugboat separately. Hourly rate shall be all-inclusive.

v) USM-102: Seized property and evidence control form which provides description of the asset and custodial information.

w) VESSEL: All types of watercraft, of all sizes, construction, composition, configuration, condition, and source(s) of power/propulsion. This could include cargo ships, commercial workboats, dinghy, fishing vessels, skiffs, small watercraft, tenders, tugs, barges, and yachts.

x) VESSEL CATEGORIES:

1) Up to 30’ Dry Dock Service

2) 31’-50’ Dry Dock Service

3) 51’-80’ Dry Dock Service

4) Over 80’ Dry Dock Service

5) Up to 30’ Wet Dock/Moored Service

6) 31’-50’ Wet Dock/Moored Service

7) 51’-80’ Wet Dock/Moored Service

8) Over 80’ Wet Dock/Moored Service

y) VESSEL RELOCATION VIA SHIP: To be utilized for vessels that are loaded on a ship and relocated to the contractor's facility.

3) FACILITY LOCATION, PERFORMANCE AREA & TRANSITION PERIOD

a) Contractor shall have a primary storage facility located within 80 road miles of the USMS

Southern District of Florida Office (Wilkie D. Ferguson U.S. Courthouse, 400 N. Miami Avenue, 6th Floor, Miami, Florida 33128). The storage facility must be able to store the vessels listed under the Miami Storage Facility on the pricing schedule. Vessels may be stored in wet dock or dry dock. If the proposed primary facility cannot accommodate both wet and dry dock storage commensurate to the estimated quantities, a separate location for each storage category can be considered but must be located within 40 road miles of one another.

b) If a vessel(s) cannot be relocated to the primary storage facility, the contractor shall procure a secondary storage facility with COR approval.

1) Secondary storage facilities will be required throughout the performance area on an as-needed basis. The national coverage area includes the 94 USMS District Offices within the continental United States, Alaska, Hawaii, Puerto Rico, the US Virgin Islands, Guam, and the Northern Mariana Islands.

2) If a vessel is located internationally and cannot be relocated to the US primary storage facility or a secondary storage facility, the contractor may be asked to identify and provide a storage facility (considered a secondary storage facility) which satisfies safety and security requirements, as pre-approved by the COR.

3) Secondary storage locations can be added or withdrawn during the life of the contract dependent upon inventory needs.

4) Any secondary storage locations (including subcontractor locations) must be approved by the COR in writing prior to any use. Safety/security plans for each secondary storage location must be individually pre-approved by the COR.

c) The COR may request a vessel to be stored at a substitute custodial location with another

Federal, State, or Local agency. If so ordered, the contractor may need to provide maintenance services at a specific custodial location, as referenced in the maintenance section. Security at the substitute custodial location is not a deliverable by the contractor.

d) The contractor, including the contractor’s facilities, shall be fully equipped and ready to begin performance within 30 calendar days of the award date. Upon approval of the facility(s) by the COR, the contractor has 30 calendar days to relocate all vessels identified by the COR from their current location(s) to the storage facility(s).

e) Contract Phase-In/Phase-Out: The Contractor shall be responsible for the phase-in and the assumption of ongoing tasks in accordance with the COR’s requests. Certain staff or number of staff of the incumbent (specified by the COR) shall be available during this period to provide assistance to new Contractor personnel, familiarize the Contractor with required services, and provide other guidance and assistance as mutually determined by the Government (COR) and the Contractor. The specific phase-in assistance to be provided shall be determined by the

Government (COR). If the new contractor intends to use existing subcontractor locations, a list of all shall be provided upon award. Upon termination and/or completion of this contract, there will be a transition period. Unless otherwise specified by the COR all vessel relocations shall occur no later than 30 calendar days from STO issuance. Final payment will be held, at zero interest, until the COR certifies that the assigned work is complete. The contract will then be closed in accordance with FAR Part 4.804.

4) FACILITY REQUIREMENTS

a) Storage Capacity

1) Primary and secondary storage facilities must be of sufficient combined capacity to accommodate the number of vessels listed on the pricing schedule.

2) The contractor must have signed Memorandums of Understanding (MOU) or Leasing

Agreement(s), which will be used to secure the storage facilities.

3) Storage rate at primary storage facility shall be all inclusive of expenses—to include insurance and overhead expenses.

b) Physical Security

1) The contractor shall provide secure storage facilities, maintenance, viewing, and sales areas for all USMS assets.

2) The contractor shall provide a detailed physical security plan that shall include at a minimum:

i. Facility Location – state the address of all locations to be utilized under this contract

ii. Facility Capacity – total amount of square footage to be utilized

iii. Physical Security – describe area where vessels will be stored, alarm system, video surveillance system, emergency response notification, access points, and lighting

iv. Photos – provide photos of the facility

v. Schematic – provide a sketch of the facility

3) To the extent practical, USMS vessels shall be segregated from all non-USMS vessels to restrict all unauthorized access. Upon contract award, the contractor shall provide an onsite review of all facilities with the COR to demonstrate security requirements. If necessary, a USMS vessel may be located in a non-segregated area of the facility, but only with prior COR approval.

4) Storage facilities must have video surveillance. Video must be kept for at least thirty (30) days.

5) Indoor facilities must have motion sensors and all entry points must have alarm contacts.

6) Indoor facilities must limit both physical and visible access to assets stored and maintained to approved persons.

7) If a secondary storage location is needed, the contractor shall provide USMS with a physical security plan for COR review and approval within 10 business days of receipt of

STO.

8) USMS COR will perform monthly and unannounced inspections of facility(s), assets, case files, and processes.

9) Loss, theft, or damage to any vessel while in the contractor's custody shall be reported immediately to the COR. In the case of loss to the vessel, the contractor shall replace the vessel with that of like or equal value or, in the case of damage, repair any damage to the vessel, as instructed by the COR, within 20 days of notification. The contractor shall report vessel theft and/or vandalism to the local police department and to the COR within 24 hours of discovery of the incident, and a copy of the police report shall be provided to the COR within 24 hours of the contractor receiving the report.

c) Staffing and Access Requirements

1) The contractor shall be available within one (1) hours’ notice, at its storage facility(s), between the hours of 8:30 AM and 5:00 PM local time, Monday through Friday, excluding Federal Government holidays. Any request for deviation of these standard hours must be approved in advance by the COR. Contractor shall provide a point of contact for 24 hours per day, 7 days per week, 365 days per year access.

2) Contractor shall be available upon request from the COR for any outside visit (for example, audit reviews, inspections, and/or by any other outside entity with COR pre-approval via

STO).

3) Contractor may be requested to travel for relocation or other related duties on the contract.

4) Contractor shall be available, in person, at any and all locations domestically (to include

USMS Headquarters) within 48 hours of notice. If contractor presence is required at an international location, the COR shall determine reasonable availability with the contractor, not to exceed 14 days’ notice.

5) Contractor must conduct themselves in a professional manner at all times.

6) Contractor shall provide COR with a list of all personnel with copies of identification who will be relocating seized and forfeited vessels, prior to the relocation. All proposed navigation operators shall possess the required licenses and shall provide photocopies to the COR prior to relocation. It is the responsibility of the contractor to ensure all licenses and permits are kept current for all authorized personnel for the duration of contractor’s involvement with the contract.

7) Access is restricted to the contractor or their authorized employees, the CO/COR or his/her designee, or individuals accompanied by USMS personnel that are pre-approved by the CO/COR. The contractor will give the COR a list of all authorized contractor employees upon award of this contract. The contractor will notify COR of any change in employees’ status.

8) The contractor shall maintain a visitor log at all storage locations. The contractor shall deny any individual who requests access to any storage facility who has not been approved by the COR (this includes seizing agency personnel). The contractor shall annotate the names of those individuals, and if applicable, the organizations represented, and immediately notify the

COR.

9) The contractor shall not provide any information regarding operations or assets to any 3rd party (ex: media outlets, attorneys, lienholders, etc.). Any requests for information shall be forwarded to the COR immediately.

d) The contractor shall assume sole responsibility, and financial liability, for all assets under their control at all times and at all locations.

e) The contractor must maintain insurance on all vessels in its physical or constructive custody.

Said insurance shall be immediately effective for each vessel upon the taking of custody, as represented by an STO. Said insurance policy shall name the U.S. Marshals Service as an additional insured through the duration of the contract, all applicable insurance policies and proof of insurance shall be provided to the USMS every six or twelve months. It is the contractor’s responsibility to maintain all insurance relative to storage and transportation of all assets to be stored by USMS. Contractor should have the ability to increase insurance coverage based on contractor’s inventory being stored. If a vessel is deemed uninsurable, the contractor shall notify the COR immediately. If a discrepancy is identified for lack of sufficient insurance coverage, the government will issue and follow guidance of a cure notice.

f) Secondary/Subcontractor Storage Facility

1) Any storage location operated by contractor (or subcontractor) other than the primary storage location shall be considered a secondary storage facility. If the contractor stores vessels at a secondary location, it is the responsibility of the contractor to ensure compliance with all aspects of the contract. If there is a deviation from the SOW as it relates to storage at a secondary location, it should be raised for COR review and approval in writing prior to storage commencing.

2) If a storage facility must be obtained from a subcontractor, the contractor shall provide three (3) quotes and detailed security plan for each proposed subcontractor location.

Quotes should reflect costs for storage, actual transportation costs, insurance, and a 10% administrative overhead fee (based on storage costs). The COR will review the proposed security plan and quotes for each subcontractor’s location, and forward approved proposals to the procurement office to be included in the contract.

3) Itemized documentation of subcontractor expenses must accompany all monthly bills.

4) The contractor will be financially responsible for any damage incurred by the subcontractor throughout the duration of the storage.

5) The contractor will remain the sole USMS point of contact for all storage locations (including subcontractor locations). The USMS will ONLY work directly with the awarded contractor on any and all issues related to the subcontractor. USMS will not work directly with subcontractors.

5) VESSEL RELOCATION

a) The COR shall notify the vendor of relocation via an STO. The contractor may be directed to relocate a vessel to a location other than the contractor’s primary storage facility. This shall be ordered via STO from the COR.

b) The COR may request via an STO for the vendor to provide seizure planning and research regarding a vessel prior to relocation. Any such services shall be billed at an hourly rate per the pricing schedule.

This may include assessing crew needs and providing a proposed crew roster.

c) Contractor shall submit transit method recommendations for COR pre-approval prior to any relocation.

d) The contractor shall coordinate all tugs/tows with the provided POC and the COR within twenty-four (24) hours of notification by the COR. Any deviation from this shall be addressed directly with the COR for resolution. If any unforeseen delay occurs, contractor shall notify the COR for action.

This does not apply to tows during the Phase-In/Out period of the contract.

e) The contractor shall use the USMS standardized USM-623V for each vessel. A copy shall be sent to the COR in a Portable Document Format (PDF) by email within 5 business days of the relocation date. A second copy shall be retained in the vessel case file.

f) The contractor shall meet with the USMS representative at a designated time and location to accept possession of a vessel and shall sign the USM-102 form as having received the vessel. If USMS representative is not available, the contractor shall accept custody of the vessel and sign the USM-102 on behalf of the USMS. The contractor shall verify the year, make, model, hull number, length, color, registration or official identification number of the vessel and trailer (if any), and the name of the vessel (if provided) with what is written on the USM-102. The contractor shall notify the COR of any discrepancies within 24 hours. If vessel includes supplemental fuel containers, contact the COR for instructions on rendering safe before relocation. The contractor shall inspect the fire-fighting equipment and United States Coast Guard safety equipment and ensure that it is appropriate for the type and size of vessel before moving it under its own power.

If the vessel does not have the proper fire and safety equipment, the contractor is required to have an emergency kit that is easily transferable to different vessels upon tug or relocation via water. The emergency kit shall include the minimum safety equipment required by the United States Coast Guard and any other applicable regulations and include, at a minimum, life jackets, fire extinguisher, line(s) and flares.

g) The contractor shall test the electrical system, bilge pump, and engine controls prior to moving the vessel under its own power.

h) The contractor shall secure all doors and ports and shall close and secure all hatches prior to moving the vessel under its own power.

i) Fuel is a reimbursable cost for vessels relocated under their own power.

j) For vessels on trailers, the contractor shall check wiring, lights, and connector pin for shorts and ensure brake light/turn signal system is functional and if possible, make any needed repairs prior to towing.

k) The contractor shall assess any additional equipment that may be with the vessel; to include a skiff, dinghy, tender, or other watercraft associated with the primary vessel. The equipment shall be transported with the primary vessel. If the equipment can be stored within the vessel or attached to the vessel, that is the preferred transportation method. If the vessel must be transported separately, COR pre-approval is required.

l) If the contractor notices personal property items on the vessel, that are not part of the vessel, the contractor shall notify the COR immediately before completing the relocation.

m) If there is a transponder device or a beacon on upon initial intake, notify the COR and turn off the device, annotating it on the USM-623V.

n) The contractor shall provide notification to the COR via email of successful relocation within 5 hours of arrival at the storage facility. If relocation could not be performed for any reason, or there were any issues related to the relocation, COR shall be notified immediately, and no later than 5 hours after initial pick-up time.

o) The contractor shall have the ability to provide on-site security within 24-hour notice from the

COR for any asset that is unable to be relocated to a secure storage location. The contractor must be able to maintain 24-hour security for the vessel until it is relocated. If the relocation from a secure storage location of a vessel is required for maintenance, repair, or disposal the contractor shall provide security until the asset is returned to the secured location.

p) As determined by the COR, Contractor may be asked to pay for service, fees, or any other invoice related to an asset at time of custody or during storage period. A STO will be submitted with detailed information of the service required. This is a reimbursable expense, and the contractor shall submit an invoice on the next billing cycle.

6) INITIAL INTAKE

The following applies to all vessels regardless of the category and storage location:

a) The contractor shall assume sole responsibility, as well as legal and financial liability for the vessel from pick-up until disposal.

b) The contractor shall provide initial intake services within 5 business days. Any delay shall be discussed in advance with the COR.

c) Run a domestic title search and/or a lien search for the asset.

d) Run vessel through applicable systems (ex: local law enforcement, title search alerts, etc.) to verify if vessel has been reported as stolen prior to physical intake. If vessel is indicated stolen, notify COR immediately.

e) It is incumbent upon the contractor to complete a thorough cleaning of the entire vessel to include inside and outside, cabins, accessories, kitchen(s), bathroom(s), etc. upon intake.

Contractor shall relocate to the inside of the vessel (if possible) any outside equipment that is movable to preserve its condition (such as leather seat cushions, removable electronics, etc.). Contractor shall use best industry practices to prepare the vessel in an orderly manner.

Photographs of condition before and after shall be included with the USM-623V. If further cleaning is required, contractor shall coordinate with COR to obtain pre-approval.

f) The contractor shall remove all trash, perishables, and fire hazards from the vessel (except fuel and oil stored in gas tank or engine machinery). Disposal of hazardous and flammable materials will be in accordance with all Federal, State, and Local laws.

g) The contractor shall inspect the vessel for seaworthiness and shall provide a written recommendation and estimate to the COR on all necessary repairs, and their associated costs, needed to maintain the vessel. If repairs are needed to maintain the current condition of the vessel, the contractor shall provide three (3) independent estimates for any repair(s) exceeding $2,500.00 (individually or in aggregate). The COR will issue an STO approving specific repairs.

All repairs performed without the prior written authorization by the COR will not be reimbursed to the contractor. The USMS may indicate "no repairs are to be made" on the delivery documentation or via email.

h) The contractor shall inventory and if practical remove all components and subassemblies of the electronic equipment (leaving wiring in place) and propellers that are subject to theft. The contractor shall place the removed items in a box(s) or plastic bag(s), clearly identify the related case number on the box(s) or bag(s), photograph all items and store in a dry, secure place. An inventory list shall be included with the USM-623V and shall indicate where the various items are stored. If an alternate industry standard is more effective, contractor shall propose to COR.

i) The contractor shall take digital high-resolution photographs (after vessel cleaning and, if possible, with no other objects or vessels in the photos) of each vessel to include fore, aft, starboard side, port side, detailed interior pictures of every room, hull number, and an additional photograph of the number of hours on the engine(s), if applicable. The contractor shall also photograph all electronic equipment of value and provide sufficient photographs of any damage to the vessel. Photographs shall be a 5-megapixel minimum, or in a resolution reasonably acceptable to the COR. The COR may request additional photos.

j) The contractor shall establish/maintain a separate case file (which may be either physical or electronic) for each vessel covered under this SOW. Upon completion of initial intake, an electronic copy of each case file must be provided to the COR within 5 business days. Each case file shall include, at a minimum:

1) Signed USM-102

2) USM-623V

3) All documentation related to vessel condition, repairs, storage, disposal, and all STOs

4) All maintenance documentation

5) High-resolution photographs of the vessel and its contents

6) Documentation verifying checks that the vessel was not reported as stolen

7) Valuation of vessel (see section 11 – Valuation Services)

k) If vessel is deemed foreign registered, the contractor shall notify the COR requesting an STO to obtain documentation and registration information.

l) If the contractor discovers a potentially hazardous substance (ex: human waste, drug residue, explosives, etc), or a hidden compartment, in a vessel (which was not already previously identified by the seizing agency or USMS) during the initial intake or during any time while in the contractor’s custody, the contractor shall immediately secure the vessel and contact the COR.

The contractor shall not handle any such item(s) discovered.

m) The contractor shall store all vessel keys in a secure depository1. If keys are missing at time of intake, the USM-623V must be annotated. The contractor is responsible for having keys made for those vessels only if the COR approves a prior request via STO. Keys are to be replaced at contractor’s expense if not annotated as missing on the USM-623V.

n) The contractor may be requested to relinquish custody to another party at any time during the contract period. If USMS requests that the contractor take custody back of the same vessel within the same month then the contractor may not invoice the USMS twice for initial intake or monthly storage. (EX: returning custody to the seizing agency for additional evidence searches, then returning the vessel to contractor.)

o) DRY DOCK INITIAL INTAKE PROCEDURES: In addition to the initial intake procedures detailed above, below is a list of the minimum additional requirements for all vessels to be dry docked. If contractor has additional recommendations based on industry standards, contact the COR for pre-approval via an STO.

1) A freshwater connection shall be made available to wash the vessels. Vessel shall be pressure-washed and cleaned with marine approved, environmentally safe soap and water.

2) If an asset includes a trailer:

i. The vessel may remain secured on the trailer.

ii. Block the trailer to raise tires from contact with the ground.

iii. Clean and repack trailer wheel bearings, as required. Ensure wheel lugs are tight;

tires are properly inflated; and trailer brakes are functioning properly.

iv. Remove license plate from trailer and maintain in the case file until the trailer is ready for disposal. If the trailer is returned to the owner, the license plate should be returned to the owner with the trailer. Otherwise, the license plate shall be disposed of in accordance with DMV requirements after the disposal or sale of the trailer

3) If an asset does not include a trailer, support boat with cradles sufficient for the weight/size of the vessel.

4) Make sure fluid drain holes are open.

5) Inspect fuel tank, clean, or replace filter. Provide a sufficient fuel level or treat chemically to prevent condensation in fuel tanks, consistent with industry standards for long term dry dock storage.

6) Check steering and control cables. Lubricate moving parts on the control cables and any other moving parts. Inspect wiring harnesses for wear.

1 Keys shall not be stored inside the vessel unless under exigent circumstances and with COR pre-approval.

7) Check battery cables. Make sure the battery is fully charged. Clean battery cables, terminal points, and connectors.

8) Cover vessel with adequate covering (shrink-wrap, canvas, tarp, etc.), if instructed by COR via

STO.

9) Store vessel with stern lower than bow.

10) Position boat (and/or trailer) so that rain or other accumulation will drain through the scuppers.

11) Inspect engine(s): Pickle, drain, fill, and grease for storage.

12) Flush out the engine with fresh water if the vessel was in salt water.

13) Check fluid level in the gear housing and add, if required.

14) Check the hull for cracks or leaks.

15) Pull the prop and grease the prop shaft splines.

16) Advise the COR of any conditions that may result in any additional costs to the USMS.

p) WET DOCK OR MOORED INITIAL INTAKE PROCEDURES: In addition to the initial intake procedures detailed above, below is a list of the minimum additional requirements for all vessels to be wet docked/moored. If contractor has additional recommendations based on industry standards, contact the COR for pre-approval via an STO.

1) A freshwater connection shall be made available to wash the vessels. Vessel shall be pressure-washed and cleaned with marine approved, environmentally safe soap and water.

2) Inspect fuel tank, clean, or replace filter. Provide a sufficient fuel level or treat chemically to prevent condensation in fuel tanks, consistent with industry standards for long term storage.

3) Install temporary bilge alarms if the vessel is not equipped with them.

4) Secure all doors, ports, and hatches. If doors, ports, and/or hatches cannot be secured, notify the COR immediately.

5) Check all mooring lines to determine they are serviceable.

6) Inboard engines - Check fluid levels of engine(s), out-drive, transmission, and generator, if present, and fill, as necessary.

7) Outboard engines - Check motor cowl for missing or broken parts, then remove cowl and inspect powerhead. Remove any debris and check for any frayed wires or insulation.

Check fluid level in gear housing and check the entire lower unit for cracks and/or leaks.

8) Check battery cables. Make sure the battery is fully charged. If battery is not fully charged, charge to full. Clean battery cables, terminal points, and connectors.

9) Start engine(s) - Run 20 minutes.

10) Start generator(s) - Run 20 minutes.

11) Spray the following components with a rust inhibitor, to prevent corrosion:

i. Exterior metal parts

ii. Winches

iii. Controls

iv. Control Cables

v. Behind instrument panel

vi. Generator(s)

vii. Alternator(s)

viii. Electrical contact

ix. Engine(s) Transmission

x. Autopilot

12) Clean and inspect all deck and hull drains.

13) Mold remediation: if mold is found notify the COR and provide (3) estimates if over $2500.

14) Provide shore power, when available and appropriate, to maintain batteries and to power automatic bilge pump.

15) Remove sails, place in canvas sacks, and store in a dry place.

1) Cover vessel with adequate covering (shrink-wrap, canvas, tarp, etc.), if provided or instructed by COR via STO.

2) Vessel shall be docked or moored in a manner to prevent damage to the vessel.

7) STORAGE

a) The contractor shall provide evidence that they have complied with all laws and ordinances associated with vessel storage. Applicable permits shall be kept current throughout the term of the contract.

b) All contractor-provided facilities shall be clean and orderly, to include running water and a restroom. All storage facilities shall be maintained in such a manner as to eliminate standing water, mud, weeds, debris, pests and/or infestations. If any signs of infestation occur, it shall be the contractor’s responsibility to abate.

c) Contractor shall have the ability to provide either dock side electricity or inside storage

(climate controlled) for vessels, if requested by the COR.

d) For vessels with additional equipment (such as a dinghy, skiff, tender, or personal watercraft) contractor shall bill only one storage rate if additional equipment can be housed within the main vessel. If storage within the main vessel is not practical an additional billing rate may apply, and proposed storage/maintenance shall be presented to the COR for approval.

e) Trailers that are picked up with vessel will be stored at no additional cost.

f) If at any time during storage an asset(s) is removed via COR direction for outside repair/maintenance, etc., the contractor shall bill the storage rate for the duration of repair up to 15 calendar days. If the repairs exceed 15 calendar days, COR pre-approval is required.

Contractor still assumes responsibility, as well as financial liability, at all times while the asset(s) receive(s) outside repairs.

g) If the contractor proposes a different facility during the contract term, and the COR approves the change in writing, then the contractor assumes any costs for relocating all stored vessels to the new facility.

8) MAINTENANCE

The contractor shall complete regular monthly inspections of all assets and report any issues to the COR along with photo documentation (see section 13). As the vessel industry expert, it will be incumbent upon the contractor to fully explain the proposed maintenance with the COR prior to any maintenance being performed. After a thorough discussion with the COR, an appropriate STO will be issued, and maintenance can begin. Contractor shall maintain all maintenance-related documentation in the asset case file, along with copies of monthly inspection photos. The maintenance schedule may change during the course of the storage and will be ordered by the COR. Maintenance needs for personal property/cargo assets will be determined on a case-by-case basis and communicated to the contractor by the COR in writing. The COR may request a professional recommendation from the contractor or a 3rd party expert regarding asset maintenance needs. Any costs associated with such consultation will be a reimbursable expense.

Contractor shall also have ability to perform or subcontract for the performance of all one-time maintenance and repairs.

Dry dock vessels – At a minimum all vessels to be dry docked must have the following monthly maintenance performed: check and maintain tire pressure on all trailers and survey entire exterior

(and interior if accessible) to verify there are no cracks, leaks, mold, or debris. If contractor has additional recommendations based on industry standards, contact the COR for pre-approval via an

STO.

Wet dock or moored vessels – At a minimum all vessels to be wet docked/moored must have the below list of monthly maintenance performed. If contractor has additional recommendations based on industry standards, contact the COR for pre-approval via an STO.

a) Perform exterior wash. Vessel shall be pressure-washed and cleaned with marine-approved, environmentally safe soap and water monthly

b) Clean interior (if not shrink-wrapped). A light cleaning of surfaces to include vacuuming and dusting of areas

c) Start engine(s) – Run 20 minutes

d) Start generator(s) – Run 20 minutes

e) Check and maintain fluid levels.

f) Spray the following components with a rust inhibitor, to prevent corrosion:

1) Exterior metal parts

2) Winches

3) Controls

4) Control Cables

5) Behind instrument panel

6) Generator(s)

7) Alternator(s)

8) Electrical Contact

9) Engine(s) Transmission

10) Autopilot

g) Fuel Tank: Maintain a sufficient fuel level or treat chemically to prevent condensation in fuel tanks.

h) Check exterior/interior for cracks or leaks.

i) Clean and inspect all deck and hull drains.

j) Ensure vessel is kept in the same condition as received at intake post cleaning.

k) The contractor shall provide a written recommendation to the COR on all necessary repairs, and their associated costs, necessary to maintain the vessel. Contractor shall provide this for each vessel in their possession and provide them to the COR no less than 5 days after intake, unless another time frame is pre-approved by the COR. Repairs can include such items as preventative measures (zinc anode, barnacle removal, etc.).

l) For vessels that require onboard presence to maintain operability, the contractor will provide a detailed proposal of staffing needs, maintenance schedule, and crew expenses. All proposals must be pre-approved by the COR via STO prior to any hiring or work being performed.

9) ADDITIONAL SERVICES - For all assets regardless of storage method, the COR may order additional services on an as-needed basis. These services may include, but are not limited to:

1) Diver rate – this is a per hour rate to hire a diver to perform underwater maintenance and repairs/cleaning.

2) Detailing services – contractor shall provide the ability to fully detail the vessel (this is above and beyond the regular cleaning and washing for sales preparation that is included in regular intake/disposal phases).

3) Sea trial – contractor shall provide testing phase for watercraft upon request of COR. This should be used only in rare circumstances. Contractor shall provide proper security and insurance for purposes of the sea trial to demonstrate proper operation of the main and auxiliary machinery, all under realistic conditions.

4) 3rd Party escort – this is a per hour rate, used in rare instances, where there is a pre-approved visit by an outside entity (other than the COR unannounced/monthly inspections) wherein a knowledgeable representative is available to answer questions and allow access to a vessel(s).

5) Locksmith services – this is a per hour rate to hire a locksmith to access locked doors, hatches, safes, etc. when keys are not available.

6) IT support – a cost reimbursable Contract Line-Item Number (CLIN) shall be provided for IT maintenance and operational support of computer systems, electronics, and communications technology as needed.

7) Power run – providing/installing cabling to allow electrical supply to a vessel.

8) Expert Consultation – upon request by the COR, the contractor may be asked to provide, secure, and/or contract with industry experts in a specific field or industry. Upon issuance of the STO, the contractor shall work with the COR to determine the required need, identify the proper party(ies) and define scope of services.

9) Winterization – draining any freezable fluids and/or replacing with anti-freeze, preparing engine for temperature extremes, and any other steps necessary to preserve the vessel against seasonal conditions.

10) 3rd party contract advisement – as needed and only when requested, the contractor will be requested to assist the USMS in contract negotiations with 3rd parties in relation to the transport, storage, assessment, appraisal, and/or disposal of specific assets. In such cases the contractor shall advise the USMS on best practices to minimize costs. No agreements are to be made on behalf of the USMS without prior written approval from the COR.

11) Destruction – upon direction by the COR via STO, the contractor may be required to dispose of assets or specific items of equipment associated with an asset. In such cases, the contractor shall be responsible for ensuring that all applicable local, state, federal, and international laws are observed; that the destruction is carried out safely; that all waste is disposed of properly; and for providing evidence of the destruction and a certificate of destruction to the COR in a timely manner.

10) WEATHER PREPAREDNESS

a) The contractor may be required to prepare vessels for incoming severe weather (hurricanes/cyclones, storms, flood, etc.), when necessary or otherwise directed by the COR.

b) Contractor shall provide a weather preparedness plan to the COR at the start of the contract. A specific plan for each asset and/or location shall be provided no later than 24 hours prior to expectation of severe weather.

c) Within five business days after the conclusion of a severe weather event, contractor shall provide the COR via email an assessment report of each vessel with before and after photos detailing any damage.

11) ASSESSMENT SERVICES – Contractor shall obtain an estimate of the value of all assets at initial intake, prior to disposal, and at any other time as requested by the COR via STO.

a) For valuations that can be obtained via free sources (such as J.D. Power/NADA Marine) the contractor shall either provide such report directly or integrate it with the USM-623V if applicable at no cost.

b) For vessels for which a free source is not available or is not suitable, the contractor (as an industry expert) shall advise the COR on the most appropriate valuation source. This could be either a certified appraisal or a marine survey. Any and all valuations should include statements for any onboard watercraft as well as any licenses and/or permits exclusive to the watercraft.

c) Assets may require specialized assessment, quality testing, or other evaluation based on the nature of the asset. Such specialized evaluation may be conducted by the contractor directly or they may subcontract with an entity that is certified in the appropriate field.

d) Appraisals and marine surveys shall be conducted by a certified appraiser or accredited marine surveyor. Contractor may use its own certified staff or subcontract with an entity which is certified. Contractor shall be responsible for knowing and ensuring compliance with all applicable laws and rules in effect regarding appraisal standards by state.

e) Contractor shall submit final valuation2 to the COR within 10 calendar days after completion, unless there is prior approval from the COR regarding alternate timelines for delivery.

12) DISPOSAL

a) The COR shall determine the methods of disposal for all USMS assets. The contractor shall receive instructions for disposal via an STO. The primary method for disposal under this contract will be internet sale by contractor. The various disposal methods include, but are not limited to:

1) Online Auction by Contractor/Broker

2) Live Auction by Contractor/Broker

3) Online Sale by USMS Third Party Vendor

4) Sealed Bid Sale

5) Sold as Salvage

6) Sold for Scrap

7) Destruction/Crushing

8) Official Use

9) Release to Lien Holder, Claimant, or Other Party

b) Online Auction by Contractor/Broker is the preferred method, unless otherwise directed by the COR in consultation with the vendor as the industry expert.

c) Upon receipt of STO for disposal by any form of sale, the contractor shall run a domestic title search. A foreign title search shall only be run upon COR request.

d) Upon receipt of a disposal STO (except salvage, scrap, or destruction), the contractor shall check and/or add engine fluids; check the trailer tire pressure and add air if necessary; check the battery; wash the exterior; and vacuum the interior of all vessels to be disposed. If needed, fuel/oil shall be added to all vessels prior to sale (this expense shall be included in the commission rate and shall not be invoiced separately).

e) Upon receipt of any disposal STO, the contractor shall be responsible for confirming all documentation authorizing release of property.

f) Prior to completion of any sale or transfer, the contractor shall be responsible for verifying the identification and obtaining valid signatures from the receiving party.

g) Disposal via Sale – Any disposal method that results in receipt of funds shall be considered a “sale”.

2 Appraisal and marine survey documents should use industry standards to provide an as-is condition value, they should also address, if repairs are needed, what the projected expense of repair shall be along with a revised statement of worth if repair is accomplished. Range of value is not acceptable.

1) Contractor shall refrain from conducting sales of any type that will close after the 20th of each month.

2) The following persons shall be prohibited from purchasing property through the U.S.

Department of Justice Asset Forfeiture Program and are also, therefore, barred from placing bids to buy such property:

i. Defendants in Criminal Cases: The defendant from whom the property to be sold was forfeited.

ii. DOJ Employees and USMS Contractors: DOJ Employees who have not received a waiver from their agency pursuant to 5 C.F.R. § 3801.104(a) and USMS contractors who have not received a waiver.

iii. Civil Forfeiture Actions/Administrative Forfeiture: Any person whose conduct gave rise to a civil or administrative forfeiture of the property to be sold.

iv. Insider Knowledge: Any person who, by virtue of their association with the DOJ AFP, has acquired material, non-public, information about the property to be sold.

v. Law Enforcement: Federal, state, and local law enforcement officers who perform duties associated with the seizure and forfeiture of property in conjunction with

DOJ.

vi. DOJ AFP Contractors: Contractors and subcontractors hired by or working with DOJ in the DOJ AFP or its agencies and their employees involved in the DOJ AFP.

vii. Other Third Parties: Any person, in the reasonable judgment of the USMS, in consultation with the United States Attorney’s Office or the Money Laundering and Asset Recovery Section, as appropriate, who may have received, from a prohibited purchaser, material, non-public, information, about the property to be sold, or whose purchase may give rise to the appearance of impropriety.

viii. Special circumstances may rebut the presumption, i.e., supersede the above determination, that someone is or is not a prohibited purchaser in one or more of the above categories, as determined by the USMS and the relevant U.S.

Attorney’s Office (USAO), with the concurrence of its Ethics Officer, Office of General Counsel.

3) An asset may require non-standard sales procedures or be subject to special constraints, such as delivery to buyer required at sea prior to reaching port. In such case, the COR will issue an STO requesting the contractor to provide a comprehensive sales plan for review and approval. All constraints and special considerations shall be indicated on the STO to the extent that they are known at the time and shall be addressed in the sales plan. The plan must also include, at minimum:

i. Recommendations for minimum bid.

ii. The posting of sales terms and conditions, and the USMS Forfeited Property Sales Certification where it can be viewed by all prospective buyers. Sales terms and conditions shall fully define bid process, bid deposit, pick up process, and sales proceeds closeout process.

iii. Details of appropriate receipt and other documentation that shall be provided to the purchaser upon completion of the sale.

iv. Timeline and remittance process for all funds collected during the sale.

v. Proposed one-time fee that the contractor will charge the USMS upon completion of the sale. This fee is subject to negotiation and must be approved by the COR prior to proceeding with offering the asset for sale.

1. At the sole discretion of the COR and only when specifically directed to do so in writing via an STO, the contractor may deduct approved sales fee from sales proceeds and submit the remaining balance to the USMS.

4) For any form of sale, the contractor shall be responsible for executing the following documents:

i. Coast Guard Vessel Bill of Sale

ii. USMS Forfeited Property Sales Certification. The COR shall provide any information necessary for the completion of the form prior to obtaining signature

(ex. Defendant’s name and/or US Code violation)

iii. If vessel is sold outside the United States of America, contractor shall execute all applicable legal documents for transfer.

iv. SF-97, if required

5) Advertising for Auctions

i. The contractor is required to advertise for all contractor-held auctions.

ii. Contractor shall take high resolution photographs for sales and marketing purposes. Pictures should be taken from a professional perspective to maximize the vessel for sales purposes.

iii. Contractor…