Attachment K Performance Work Statement PWS revised.pdf

Attachment K – Performance Work Statement (PWS) revised

US Department of Agriculture (USDA)

United States Department of Agriculture (USDA) Food and Nutrition Service (FNS) Storage and Distribution Services

Performance Work Statement (PWS)

Contents Project Title General Information

1.0 Background and Purpose

Contractor Requirements

2.0 Technical Requirements / Tasks

2.1 Project Management

2.2 Receipt of Commodities

2.3 Storage and Handling

2.4 Receipt of Orders Placed by FDPIR and CSFP Program Operators (i.e., recipient agencies)

2.5 Delivery to Recipients

2.6 Access to Contractor’s Inventory System

2.7 WBSCM Interaction

2.8 Transition-In Plan

2.9 Transition-Out Plan

2.10 Quality Assurance/Quality Control (QA/QC) Plan

2.11 Exigency Plan

2.12 Reports and Data

3.0 Deliverable / Schedule

4.0 Government Furnished

5.0 Contractor’s Key Personnel

6.0 Training

7.0 Security Requirements

8.0 Data Rights

9.0 Section 508 Accessibility

10.0 Performance Requirement Measures

Project Title United States Department of Agriculture (USDA) Food and Nutrition Service (FNS) Storage and Distribution Services

General Information

1.0 Background and Purpose

USDA is made up of 29 agencies and offices with nearly 100,000 employees who serve the American people at more than 4,500 locations across the country and abroad. USDA offices provide support to Department officials and employees at all levels, and they support our programs and services by working with our agencies, Congress, organizations, and Tribal Governments. USDA’s vision is to provide economic opportunity through innovation, helping rural America to thrive; to promote agriculture production that better nourishes Americans while also helping feed others throughout the world; and to preserve the Nation's natural resources through conservation, restored forests, improved watersheds, and healthy private working lands.

USDA supports access to a healthy diet for low-income individuals and help to keep America's farmers and ranchers in business and ensure that the Nation's commercial supply of meat, poultry, and egg products is safe, wholesome, and properly labeled. USDA also helps to ensure the health and care of animals and plants and the health of the land through sustainable management, and work to improve the economy and quality of life in all rural America.

Specifically, the scope of the Performance Work Statement (PWS) requires storage and distribution Third- Party Logistics (3PL) solution services for the transportation, receipt, storage, and distribution of multi-temperature food products purchased by USDA. The scope also includes the responsibility for the day-to-day quality inspection, monitoring, and reporting of all work performed to ensure compliance with contract requirements overseen by USDA. Products purchased by USDA will be used to stock the warehouse and will require dry, cooler, or freezer storage. All work performed under this PWS shall be of the highest quality, consistent with best industry practices, to assure timely performance of services, optimum agency satisfaction and adequately protect the Government's assets.

USDA Food Distribution Programs The PWS supports various USDA programs, among them, the Food Distribution Program on Indian Reservations (FDPIR) and the Commodity Supplemental Food Program (CSFP). Food shipments currently include FDPIR and CSFP, with occasional shipments to other programs, such as The Emergency Food Assistance Program (TEFAP). The regulations for these programs may be found under the Code of Federal Regulations (CFR); FDPIR (7 CFR Part 253), CSFP (7 CFR Part 247) and TEFAP (7 CFR Part 251). The CFR may be accessed at: https://www.gpo.gov/help/index.html#about_code_of_federal_regulations.htm

FDPIR is a Federal program that provides domestic commodity foods to low-income households, including the elderly, living on or near Indian reservations. Many Native Americans participate in FDPIR as an alternative to the Supplemental Nutrition Assistance Program (SNAP), usually because they do not have easy access to food stores. FDPIR served on average approximately 55,000 participants in Fiscal Year (FY) 2024. More information on FDPIR can be found here- https://www.fns.usda.gov/fdpir/food-distribution-program-indian-reservations

CSFP works to improve the health of low-income elderly persons at least 60 years of age by supplementing their diets with nutritious, domestic USDA Foods. CSFP served an average of approximately 720,000 participants per month in FY 2024. More information on the CSFP can be found here-https://www.fns.usda.gov/csfp/commodity-supplemental-food-program https://www.gpo.gov/help/index.html#about_code_of_federal_regulations.htm https://www.fns.usda.gov/fdpir/food-distribution-program-indian-reservations https://www.fns.usda.gov/csfp/commodity-supplemental-food-program

TEFAP is a Federal program that helps supplement the diets of low-income Americans, including elderly people, by providing them with emergency food and nutrition assistance at no cost, usually through food banks, which, in turn, distribute the food to soup kitchens and food pantries that directly serve the public.

More information on TEFAP can be found here- https://www.fns.usda.gov/tefap/emergency-food-assistance-program

Food shipments under these programs will contain a variety of commodities that can also have different temperature requirements. For additional background, see Attachment L - CSFP and FDPIR Food Package Description.

Web Based Supply Chain Management (WBSCM) System Background Inventory management will be coordinated and integrated in real-time with the USDA Agriculture Marketing Service (AMS) Web Based Supply Chain Management (WBSCM) system- https://www.usda.gov/topics/food-and-nutrition/web-based-supply-chain-management . WBSCM, as shown in Figure 1 below, is a business application used by the USDA to facilitate the marketing of American agriculture products and support nutrition and food security for millions of Americans. The application is an integrated internet-based commodity ordering, acquisition, distribution, and tracking system built on Systems, Applications, and Products in Data Processing (SAP) commercial software.

Figure 1 – WBSCM Overview

The WBSCM system and its subsystems directly support the ordering, procurement, and delivery of American agricultural commodities to various food distribution programs.

https://www.fns.usda.gov/tefap/emergency-food-assistance-program https://www.fns.usda.gov/tefap/emergency-food-assistance-program https://www.usda.gov/topics/food-and-nutrition/web-based-supply-chain-management https://www.usda.gov/topics/food-and-nutrition/web-based-supply-chain-management

Zone Service Areas The Contractor shall provide storage and distribution services to FDPIR and CSFP Zone and Program locations.

The contract zoned service areas are divided into 2 Zones (Zone 1 and Zone 2). A “zone service area” refers to a geographically defined region where a Contractor provides contract services to the USDA, delineated by specific boundaries like city limits or zip codes, enabling efficient service delivery and operational management within that designated area. The following are the Zone states that the Contractor shall provide storage and distribution 3PL solution services for (see Attachment – I Detailed Zone Delivery Locations w Avg Volumes for specific requirement details), but are not limited:

Zone 1 States

Zone 2 States

1. Alabama-AL 1. Alaska-AK

2. Arkansas-AR 2. Arizona-AZ

3. Connecticut- CT 3. California-CA

4. District of Columbia-DC 4. Colorado-CO

5. Delaware- DE 5. Hawaii-HI

6. Florida- FL 6. Iowa-IA

7. Georgia-GA 7. Idaho-ID

8. Kentucky-KY 8. Illinois-IL

9. Louisiana-LA 9. Indiana-IN

10. Massachusetts-MA 10. Kansas-KS

11. Maryland-MD 11. Minnesota-MN

12. Maine-ME 12. Missouri-MO

13. Michigan-MI 13. Montana-MT

14. Mississippi-MS 14. North Dakota-ND

15. North Carolina-NC 15. Nebraska-NE

16. New Hampshire-NH 16. New Mexico-NM

17. New Jersey-NJ 17. Nevada-NV

18. New York-NY 18. Oregon-OR

19. Ohio-OH 19. South Dakota-SD

20. Oklahoma-OK 20. Utah-UT

21. Pennsylvania-PA 21. Washington-WA

22. Puerto Rico-PR 22. Wisconsin-WI

23. Rhode Island-RI 23. Wyoming-WY

24. South Carolina-SC

25. Tennessee-TN

26. Texas-TX

27. Virginia-VA

28. Vermont-VT

29. West Virginia-WV

Contractor Requirements

2.0 Technical Requirements / Tasks

The following tasks are required under the scope of the PWS.

2.1 Project Management

The Contractor shall implement a comprehensive management approach to be taken to satisfy all of the requirements of the contract. This approach shall include the project planning, coordination, communication, execution, monitoring and reporting, risk management, inventory management, invoicing, and transition in and out taskings, related to the requirements of the PWS. The approach should include plans to insulate the Government from increasing market price levels to continue providing the same service level awarded under the contract. The management approach shall also include the Contractor’s warehouse management and transportation systems capabilities that support the integration with the Government’s WBSCM system.

The Contractor’s management approach should include organizational structure (including details of joint venture/teaming/partnering arrangements), lines of authority, staffing plan, subcontracting plan (if applicable), and implementation plan for the contract. The Contractor shall provide a contract project manager, as key personnel, whose primary responsibilities will be to oversee all tasks required under the contract and to ensure the performance standards of the contract are met.

The Contractor shall be responsible for ensuring positive feedback from program operators (e.g., FDPIR, CSFP) served under the contract by implementing a feedback mechanism as part of overall Quality Control (QC) that includes issuing a semi-annual survey to all delivery locations and providing the draft survey for approval by the Government and results provided to the Government. The Contractor shall also acknowledge inquiries/feedback received from program operators or the Government within the same business day and provide a response within three (3) business days. The Contractor shall maintain satisfactory standards of employee competency, conduct and integrity, and shall be responsible for taking such disciplinary action with respect to employees as may be necessary. Additionally, USDA may conduct supplemental semi-annual customer experience surveys.

The Contractor shall attend a Kickoff meeting within five (5) days of contract award and provide a draft of a Monthly Status Report, including per zone service area site location that addresses status of inventory, inbound deliveries, and the status of schedule of outbound deliveries, risks, and challenges. Once approved by the Government, a Monthly Status Report shall then be submitted monthly via email, by the 10th of the month, thereafter.

The Contractor shall adhere to and be licensed in accordance with all Federal, State, and Local regulations pertaining to receipt, storage, and transportation of goods.

I. Insurance and Performance Bond The Contractor shall insure the contents of the warehouse where USDA foods are stored, as well as the physical structure itself. Proof of insurance shall be submitted to USDA annually with contract renewal documents. Within 30 calendar days of initial contract award (and immediately upon execution of each option period (if exercised)), the Contractor shall secure a performance-based surety bond to be held by the Government. In the event of a severe performance issue, the Government may (solely at the Government’s discretion) call in the bond to fund an emergency contract or other use to ensure continuity of service to program recipients and the preservation or replacement of USDA food resources. The amount of the bond shall be $10,000,000 in the base period and each option period (if exercised).

Severe performance issues shall include but are not limited to:

a. Frequent delivery delays and unreliable shipping times

b. Inconsistent inventory accuracy

c. Lack of end-to-end visibility in the warehouse inventory system

d. Poor communication to Recipients and Government

e. Inability to handle demand surges

f. Problems with last-mile delivery

g. Warehouse operational inefficiencies

h. Data integration issues

i. Inadequate quality control measures

j. Labor shortages

2.2 Receipt of Commodities

I. Appointment Scheduling and Receipt The Contractor shall make available and schedule all appointments to receive and unload inbound shipments of USDA commodities. The Contractor shall obtain approval from the Government prior to receiving of commodities outside of the Required Delivery Date window. (For Example: if the required delivery date is 7/15/XX the delivery window would be 7/1/XX – 07/15/XX). The Contractor shall provide USDA with access to all scheduled inbound appointments (in a format and mechanism approved by USDA). There may be variations in inbound activity levels on a month-to-month basis.

II. Verification of Inbound Loads The Contractor shall inspect all incoming shipments from Vendors to verify commodities received are in acceptable condition and ready to be stored and later shipped to CSFP and FDPIR operators. Verification includes checking if “Best if Used By” dates and the condition of the food and packages are acceptable (see Attachment Q - Household Foods Shelf-Life Guidelines). The Contractor shall perform a full count of all Vendor shipments to ensure accuracy and quality prior to storage and subsequent delivery to program operators. Photographs (date and time stamped) and supporting documentation of damaged product shall be furnished to the Government as a complaint documented in WBSCM within 24 hours.

If more than 10% of the unit count (i.e., cases) of the load is damaged, over, short or includes substandard pallets or products with insufficient “Best If Used By” (BIUB) dates, the Contractor shall, within 48 hours of discovery, contact the Government for instructions.

III. Complaint Tracking The Contractor shall enter all complaints into the applicable part of WBSCM within 24 hours for all inbound deliveries (from either the commodity Vendor or upon transfer from another storage and distribution Contractor's warehouse) in the following instances: damages, shortage or overage, late delivery, missing seal, BIUB date, temperature, quality issues, shifting, and/or pallet issues. Documentation must accompany the complaint to include Bill of Lading (BOL) with commodity Purchase Order (PO) and line-item information, picture evidence (date and time stamped), and a written description of damages. Complaint requirements are included in Attachment - M National Multifood Warehouse Interaction With WBSCM.

IV. Palletization and Slip-Sheeting The Contractor shall palletize all floor-loaded or slip-sheeted inbound commodities. All pallets must be a number 2, 4-way, reversible flush stringer; contain no broken runners or slats; constructed to facilitate the safe handling and transportation of the packaged product, as a unit, without loss or damage; and suitable for use in the shipment of food products. The only commodity that may require palletizing is ready-to-eat cereal.

V. Lot Identification The Contractor shall maintain unique lot identity and traceability (cross reference to Inbound PO, PO line-item number, and Purchase Request (PR) numbers) from receipt into warehouse to delivery to recipient by assigning one unique lot number specific to the case count/manufacturer date per commodity received within a truckload. A unique lot number shall be established for product with manufacture dates greater than 30 days apart within the same truck. Contractor shall not mix lots under a lot number. In order to effectively identify and track lots, the Contractor may tag all products with barcodes or Radio Frequency Identification (RFID) labels that capture information such as product type, USDA program, lot number, and BIUB date, etc. If tags are used, these tags may be scanned at the point of product/order picking (at minimum) to ensure picking accuracy and traceability.

VI. Separation of Inventory The Contractor shall maintain separate inventories for each USDA program. The identity and traceability—by USDA program- of the commodities shall be maintained and documented throughout receipt of commodities;

storage and handling of commodities; and delivery of commodities to recipients. The Contractor shall immediately notify the Government by email of any lots put into the wrong programs as soon as known, with explanation, and advise again by email within 24 hours when corrected at the Contractor’s expense. The Contractor shall store product – by USDA program – in a manner that maximizes order picking efficiency.

VII. Noncompliant Product Handling The Contractor shall identify noncompliant products and inform USDA immediately. For example, for inbound deliveries of frozen meat products, fish, frozen fruits and vegetables, and buttery spread, if the manufacturer pack date is over 30 days old, questionable, and/or unidentifiable, the Contractor must notify the Government and await direction prior to acceptance of shipments. If new frozen foods are added during the performance period of the contract, the same actions may be required in accordance with the maximum manufacturer pack date specified by USDA for receipt of those commodities.

VIII. Monitoring Best if Used By (BIUB) The Contractor shall record, report, and monitor Best if Used By (BIUB) and manufactured dates. When BIUB dates are printed on the inner container (i.e., not visible), or if BIUB date are otherwise not available, the Contractor shall record the manufacture and/or pack date and contact USDA who will then estimate the BIUB date. A table of average BIUB dates is provided in Attachment Q Household Food Shelf-Life Guidelines.

Note: All products require BIUB recording/reporting/ monitoring; see Attachment R - FDIPR Foods Available and Attachment S- CSFP Foods Available for the list of products requiring such monitoring.

The designated BIUB products shall have a minimum of a two-month BIUB date when being shipped from the Contractor’s warehouse(s) (except for product going to Alaska FDPIR/CSFP Hawaii CSFP which must have three-month BIUB). These windows allow for the sites to complete the distributions and for the recipients to use the products while at optimal quality. The Contractor shall notify USDA immediately when any of these products have less than a two-month BIUB. USDA will provide disposition of the product. Notification should include product name, material code, batch, manufacturing or BIUB date(s) and quantity. USDA requires the

Contractor to follow First-Expired/First-Out (FEFO) inventory management practices to limit disposition of product, as described below.

IX. Receipt Entry The Contractor shall enter shipment receipt information into WBSCM within two (2) business days of receipt as detailed in Attachment M National Multifood Warehouse Interaction With WBSCM.

X. Accommodate USDA Program Changes The Contractor shall accommodate program changes such as the addition or removal of commodities, changes in pack sizes, WBSCM changes, and new program delivery sites per contract modification (such as changes pertaining to Attachment R and Attachment S) within five (5) business days of program change(s) by the Government. The Contractor shall send an email to the Government confirming when changes were completed.

2.3 Storage and Handling

The Contractor shall have the capacity to store a four-month supply of commodities (See Attachment J – Pricing Schedule determined to assess potential storage requirements) to ensure sufficient access for Program Operators. There are times that on hand supply of commodities increase due to: fluctuations in ordering or product availability, and program funding and participation. The Contractor shall have the capability to increase the required four-month supply of commodities up to two additional months of capacity (a maximum of six-months at any time throughout the period of performance of the contract).

The Contractor must meet or exceed all applicable requirements and standards set forth under the Food Safety Improvement Act (FSMA) and have valid Executed Lease Agreements regarding leased space throughout the effective period of the contract. Contractors must meet or exceed applicable food safety and sanitations requirements established in applicable state and federal regulations including 21 CFR 117 Subpart C Current Good Manufacturing Practice, Hazard Analysis, and Risk-Based Preventive Controls for Human Food Current Good Manufacturing Practice, Hazard Analysis, and Risk-Based Preventive Controls for Human Food and 9 CFR Chapter III Subchapter E -- Regulatory Requirements Under the Federal Meat Inspection Act, the Poultry Products Inspection Act, and the Egg Products Inspection Act.

Space utilized, or proposed to be utilized, under the contract must be made available to USDA warehouse auditors to conduct a physical warehouse examination to verify all information submitted.

Contractor shall provide floor plan/blueprint of warehouse space indicating USDA Storage Space (including square footage) to support their technical approach. Contractor shall identify proposed truck receiving/loading capacity per day for USDA under this potential contract.

I. Temperature and Humidity Control The Contractor shall maintain and record proper temperature and humidity requirements for the storage of commodities as described in Attachment V - Commodity Temperature & Relative Humidity Requirements. The Contractor shall record and maintain daily temperature and humidity readings in a log and be available upon request by the Government.

Contractor shall notify the Government of any occurrence of non-compliance under storage/humidity requirements and advise of remedial action undertaken by the Contractor within 24 hours of discovery.

II. Handling and Stacking The Contractor shall handle and stack USDA commodities in accordance with each manufacturer’s guidelines as printed on outer containers or if not printed on containers, contact the manufacturer for clarification regarding appropriate handling and stacking. The Contractor shall pick from the oldest lots first (except for offshore recipients – see section 2.2 VIII) to avoid food loss and shall pick from a single lot for each product on a single order to the maximum degree possible.

III. Inventory Control (Control and Reconciliation) On occasion, after receipt of a commodity product, the Contractor may find quality issues in the commodities during the storage, picking, or shipping phases. When that occurs, the Contractor must contact a designated USDA representative within 24 hours of discovering the problem. It must be recorded, as a complaint in WBSCM. Once received in WBSCM, the applicable USDA representative will contact the Contractor to provide instructions on disposition of the product.

The Contractor shall maintain a real-time accounting of inventory with a system that integrates with the USDA’s WBSCM. The Contractor shall monitor inventory amounts, and the quality of commodities stored in inventory. If the Contractor identifies issues with commodities stored in inventory, the Contractor shall submit in writing to the Government, at the time of occurrence, those inventory discrepancies through WBSCM. The Contractor shall immediately enter hidden Vendor damage complaints into WBSCM. The Contractor shall follow warehouse best practices by utilizing ongoing Cycle Counts – where Contractor compares its physical count with its system inventory report and reports differences to Government. All related inventory adjustments shall be submitted via email to the Government within 24 hours of the identification of the discrepancy and be included in the Monthly Inventory Adjustment Report and all other reports indicated in Attachment W – Reporting Template with References and the identification of discrepancy.

IV. First-Expired First-Out The Contractor shall maintain all inventory on a First-Expired/First-Out (FEFO) basis, based on BIUB date.

Alaska FDPIR/CSFP, Hawaii CSFP, Montana and North Dakota FDPIR/CSFP program orders shall be filled with inventory from latest manufacture dates and/or latest BIUB dates.

V. Notification of Limited Storage Capacity The Contractor shall notify the Government immediately regarding storage space capacity concerns to mitigate any disruption or impact to services and provide notification when square footage for USDA anticipated demand meets or exceeds 85% for dry, cooler, and/or freezer capacities. The Contractor shall ensure that there is space available to receive all scheduled inbound deliveries prior to scheduling appointments.

VI. Annual Food Defense Audit The Contractor shall schedule and complete an annual Food Defense Plan and Food Defense Audit through USDA. Fees associated with the audit will be the responsibility of the Contractor. Any deficiencies found during these audits must be immediately corrected. A copy of the audit report shall be provided to the Government upon receipt from the auditor.

VII. Disposition of Commodities with Less Than Two Months BIUB When a commodity is placed on hold due to having less than two months BIUB, the Government will provide guidance to the Contractor on disposition. Such guidance may include permitting a local emergency food provider to pick up the product or destroying the product. The Contractor shall segregate this commodity and clearly mark it so that it is not distributed to recipients. If the Government directs that the Contractors shall allow an emergency food provider to pick up this commodity, the Contractor shall facilitate such donation with the timeframes directed by the Government.

2.4 Receipt of Orders Placed by FDPIR and CSFP Program Operators (i.e., recipient agencies)

I. Receive Recipient Orders The Contractor’s Warehouse systems shall be able to access and interface with WBSCM-https://portal.wbscm.usda.gov on a 24/7 basis, to receive the recipient agency orders as detailed in Attachment M- National Multifood Warehouse Interaction With WBSCM. The recipient agencies may not make modification or cancel the WBSCM requisition after the cut off deadline for modifying orders. This is the same cut off deadline for entering new orders (9 business days prior or 31 business days for offshore locations).

2.5 Delivery to Recipients

The Contractor shall be responsible for distribution (including rating, routing, and transportation) of Contractor-stored, USDA commodities to program operator recipients identified by USDA. Orders will generally be placed by recipients through WBSCM and be distributed to site locations (e.g., FDPIR, CSFP);

however, other distributions may be necessary, such as for emergency or disaster assistance. USDA expects most shipments to be in full or close to full truckload quantities, but there may be times when less than full truckload shipments are required due to recipient agency size or time-sensitive needs. Commodities requiring dry, cooler and freezer climate conditions may be consolidated in a single truck with appropriate safeguards taken to maintain temperature integrity. The Contractor shall provide a description of these safeguards for multi-temperature shipments to USDA. Contractor shall ensure that no more than nine (9) days elapses between recipient order being placed and product delivery to recipient site (within the continental United States) unless pre-approved by USDA.

I. Coordination with Recipient Agencies The Contractor is required to keep recipient agencies apprised of the status of the orders and provide electronic alerts upon order status changes (e.g., order is being picked, packed, loaded, in transit (with close to real time location and estimated delivery time).

The Contractor is required to ensure that delivery appointments are made and adhered to. The timely achievement of all delivery appointments includes negotiating regular delivery dates with each recipient agency with the objective of balancing recipient agency needs and the need to maximize the incidence of full-truckload shipments and minimize out-of-route mileage. When seeking to provide frequent deliveries to recipient agencies near each other, the Contractor shall arrange for the most efficient lanes of service for the Government, minimizing out of route mileage. Contractor shall arrange transportation in the most cost-efficient method for the Government, i.e., full truckloads, multi-stop truckload routing, minimizing out of route miles, or Less than Truckload (LTL) shipments to all destinations. The Contractor shall enter the delivery schedule into WBSCM within 30 days of notification, no deviations are permitted without COR approval.

Delivery shall be made in accordance with negotiated delivery schedule with a minimum of 98% on time delivery. The Contractor shall not make any changes to the Delivery Schedule (appointments) after the order cutoff date nine (9) business days prior to delivery date for all deliveries with the exception of offshore locations which are required 31 business days from delivery). Notification of an inability to meet a negotiated delivery date should also be immediately provided to the Government and shall include summary of the revision and supporting rationale.

https://portal.wbscm.usda.gov/

Recipient agency accommodation of late deliveries/delayed delivery (including holiday scheduling) does not constitute an excusable delay.

The Contractor shall provide the Government a list of recipient destinations requiring tailgating services. Planning should be done in a fashion allowing sufficient space that during loading the Contractor will not pinwheel (or alternate straight and turned) pallets.

II. Truck Routing The Contractor shall make deliveries in accordance with a negotiated delivery schedule in the most cost-efficient manner to the Government in terms of consolidation and transportation mode. Contractors shall explain how routes will be determined and how trucks will be packed to meet the requirements of (1) on-time deliveries, with (2) all required products, (3) meeting all quality standards as required in the contract. Quality standards must include accurate orders aligned with the recipient agencies’ orders; BIUB dates in accordance with contract requirements, all products meeting quality standards for safety and usability, and all other accuracy and quality standards as required in the contract. This includes all foods, whether dry, cooled, or frozen, and all truck packaging shall be in accordance to meet these standards for all shipments.

For Intermodal Door to Door container shipments to offshore locations, only U.S. flag vessels shall be utilized.

Bills of lading (BOLs) shall evidence the use of U.S. flag vessels.

III. Notice of Inventory Shortages to Recipients The Contractor shall provide notice to USDA of any known commodity shortages on an order (i.e., products requested by the recipient agency that are not available in inventory) at a minimum of 48 hours prior to shipping so that USDA may direct the Contractor to provide an alternate product from the warehouse instead, as applicable. The Contractor shall provide notice to the recipient of any known commodity shortages from recipient’s order at a minimum of 24 hours prior to regularly scheduled delivery.

IV. Palletization Procedures The Contractor shall prepare pallets of commodities for shipment to minimize any potential damage during shipment and delivery. All pallets must be- a number 2, 4-way reversible flush stringer; contains no broken runners or slats; constructed to facilitate the safe handling and transportation of the packaged product, as a unit, without loss or damage; and suitable for use in the shipment of food products.

Pallets shall be positioned to facilitate timely unloading of commodities (e.g., no pin- wheeling).

V. Maintain Commodity Condition during shipping The Contractor shall ensure the quality of each type of commodity(s) (dry, cooler, and freezer) is maintained during shipment through delivery to recipient. The Contractor will provide USDA with the plan for maintaining commodity condition during transport including when loads include multiple commodity types. All items will be shipped dry except for items identified in Attachment V - Temp Humidity Req.

VI. Minimize Split-temperature Loads To the extent practicable, the Contractor shall not split temperature-controlled products over more than one conveyance per destination, per delivery date.

VII. Security Seal Management The Contractor shall be responsible for placing a seal(s) on all doors of each Truckload, Less-than-Truckload and/or Multi-Stop deliveries upon completion of loading or servicing. The seal number(s) shall be entered on the BOL, which shall be signed or acknowledged by the carrier or its agent. Seals are required to be tamper-evident commercial flat metal, wire, or plastic security seals. Conveyance must be re-sealed upon unloading at each stop-off, with seal numbers referenced on each BOL.

The Contractor shall immediately notify Government by email of any seal incidences upon delivery to recipient agencies and await decision to accept or reject load.

VIII. Tailgate Delivered Loads The Contractor shall tailgate loads as needed. The number of tailgate sites will be identified during the delivery schedule negotiation, however the number of sites requiring tailgating is estimated to be below 5% of all delivery sites.

IX. Multi-stop Deliveries The Contractor shall minimize the need for recipients to unnecessarily handle pallets at each stop and clearly label pallets such that one order can be readily identified from another. The Contractor shall deliver recipient agencies’ orders to the locations on-time, within 9 days of receiving the order through WBSCM. The Contractor shall account for rural areas with dirt roads that can be very remote and difficult to traverse in rainy or snowy conditions. In some cases, orders may not require a full truck. To minimize the cost to the Government and be as efficient as possible, the Contractor shall plan deliveries that pack multiple orders onto as few trucks as possible and minimize drive time.

X. Emergency Disaster Relief The Contractor shall handle emergency, disaster-relief, or contingency operations deliveries as required. These deliveries are typically limited and only used as a last resort. Emergency shipments for relief to disaster victims shall be given top priority. Most emergency shipments will be under exigent circumstances and must be released, and/or shipped, within 24 hours with verbal notice from the Government with written documentation to follow. The definition of ‘emergency’ and ‘disaster’ are solely at the discretion of the Government and may change based on circumstances. For example, an emergency may include a performance issue with the Contractor under this or another contract.

XI. On-hold or Recalled products The Contractor shall handle on-hold or recalled products as required. Action to prevent shipment or distribution of commodity(s) placed on hold or recalled shall be immediately taken. The Contractor will receive notice from the Government, with documentation to follow, if there is a hold or recall issued. The Contractor shall cooperate fully with Government officials regarding the disposition of any recalled commodities. This may include regulatory officials from USDA agencies or the U.S. Food and Drug Administration (FDA).

The Contractor shall be required to work closely with USDA in the event of a hold or recall. The Contractor shall be responsible to provide documentation regarding the specific commodity(s) that has been shipped, placed on hold, or recalled. If the product is still in the Contractor’s warehouse, the commodity should immediately be placed on hold. If not, the Contractor shall provide information regarding which recipient agency(s) received the commodity, quantity, and date the commodity was delivered to the recipient agency(s).

The Contractor shall observe all applicable requirements of the FSMA Final Rule on Requirements for Additional Traceability Records for Certain Foods | FDA, including maintaining traceability records for commodities according to required schedules.

2.6 Access to Contractor’s Inventory System

The Contractor shall grant authorized Government personnel 24/7 access to Contractor’s inventory system to track inventory in real time and the inventory system must be able to interface with WBSCM as described below. Accessible data should include scheduled inbound replenishment loads, outbound load information (i.e. Bill of Ladings, or BOLs), and lot shipment activity. The Contractor shall make all relevant updates required to ensure that inventory in WBSCM is current. The Contractor shall upload accurate BOLs to WBSCM within 12 hours of a shipment leaving the warehouse.

2.7 WBSCM Interaction

The Contractor shall provide systems integration and interfacing between the Contractor’s inventory management system and the USDA’s WBSCM system to reduce overall administrative costs to the Government and to enhance the timeliness, completeness, and accuracy of inventory data with the USDA’s WBSCM system. The interface with the WBSCM system shall provide near real-time visibility to inventory details in WBSCM as described in Attachment M-National Multifood Warehouse Interaction With WBSCM.

The Contractor shall develop and implement a System Integration Plan for establishing and maintaining interface(s) between the Contractor’s systems and the USDA WBSCM system. The plan shall describe how the Contractor will utilize the Contractor’s systems and WBSCM to integrate services with USDA as detailed in Attachment M National Multifood Warehouse Interaction With WBSCM. The plan shall also outline options to enhance efficiency and automate interfaces between Offeror’s system and WBSCM. The plan shall have enough detail and be organized efficiently and effectively for USDA to decide on the appropriate course of action for the to-be integrated / interfaced systems.

Following the implementation of the systems integration and interfaces, the Contractor shall provide operations and maintenance support of all contract activities interacting with Contractor systems. The flow of information and business events between the Contractor system(s) and USDA WBSCM should be assumed to be bilateral.

2.8 Transition-In Plan

The Contractor shall provide a detailed Transition-In Plan as part of the proposal with a practical approach describing the procedures and timelines the Contractor will implement to transition-in, including management support and participation in implementation to be fully completed during the first six (6) months of contract award; fully operational for receipt, storage and distribution within four (4) months of contract award and fully integrated with WBSCM within six (6) months of award. The approach shall also include a plan for efficiently managing receipt and disposition of inventory at the current storage location including the potential influx of inbound deliveries that will occur during the transition period as the Contractor establishes baseline inventory. The approach shall also include knowledge transfer for the various levels of Contractor and subcontractor staff to become proficient at fulfilling the requirements as described in the PWS.

The contractor shall start implementing its Government approved Transition-In Plan No Later Than (NLT) ten

(10) calendar days after contract award and all transition activities shall be completed within six (6) months of contract award.

https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.fda.gov%2Ffood%2Ffood-safety-modernization-act-fsma%2Ffsma-final-rule-requirements-additional-traceability-records-certain-foods&data=05%7C02%7Ckristin.garcia%40usda.gov%7Ca8f901d58ad6419661ef08dd1df21a1d%7Ced5b36e701ee4ebc867ee03cfa0d4697%7C1%7C0%7C638699647843096471%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=dm0jmEh4jaCQqImit9KV%2FitD6XJS%2FNJ8TISWxkisM74%3D&reserved=0 https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.fda.gov%2Ffood%2Ffood-safety-modernization-act-fsma%2Ffsma-final-rule-requirements-additional-traceability-records-certain-foods&data=05%7C02%7Ckristin.garcia%40usda.gov%7Ca8f901d58ad6419661ef08dd1df21a1d%7Ced5b36e701ee4ebc867ee03cfa0d4697%7C1%7C0%7C638699647843096471%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=dm0jmEh4jaCQqImit9KV%2FitD6XJS%2FNJ8TISWxkisM74%3D&reserved=0

The Transition-In Plan shall facilitate the accomplishment of a seamless transition from the incumbent to incoming Contractor/Government personnel in order to ensure that there will be minimum service disruption to vital Government business and no service degradation during and after transition.

The Transition-In Plan shall cover the Contractor’s approach for the following areas at a minimum:

1. Transition scope, goals, and objectives

2. Roles and responsibilities/transition management team

3. Risks and mitigations

4. Schedule, milestones, critical path items related to receipt of commodities and delivery to recipient agencies

5. Plan for providing Government access into Contractor’s inventory system within 10 days of award

6. Plan for full integration with the WBSCM within six (6) months of award

7. Proposed owned or leased facility arranges to include support for exigency

8. Plan for maintaining the requirements during the transition period

The Transition-In Plan shall describe how the Contractor plans to manage and coordinate with the outgoing Contractor and the Government in the following key operational areas, at a minimum:

1. Program management activities

2. Approach for assuming current on-hand inventory, up to four (4) months, that is not drawn down during the Transition Period

3. Continuity of Receipting, Storage, and Handling of Commodities

4. Continuity of Commodity Ordering and Outbound Deliveries

5. Inventory Management Snapshots

6. Quality Management

2.9 Transition-Out Plan

The Transition-Out Plan shall facilitate the accomplishment of a seamless transition from the incumbent to the incoming Contractor(s)/Government personnel at the end of the effective period of the contract. In the Transition-Out Plan, the Contractor shall identify how it shall coordinate with the incoming Contractor(s)/Government personnel regarding the following:

1. Incumbent Contractor key personnel contact information

2. Status of ongoing projects operational and technical initiatives to implement Government requirements

3. Identification and status of schedules and milestones

4. Actions required of the Government

5. Identify and track the transfer of on hand inventory and Government-owned property

Tracking of inventory and Government-owned property should include a lot tracking document with new lot assignments created and updated in WBSCM

6. Commitment and plan to use key personnel to facilitate transfer

7. Identification of Transition Risks and associated mitigation strategies to ensure continuity of operations

The Contractor shall also establish and maintain effective communication with the incoming Contractor(s)/Government personnel for the period of the transition as often as necessary to ensure a seamless transition-out.

The Contractor shall implement its Transition-Out Plan at the request of the Government.

2.10 Quality Assurance/Quality Control (QA/QC) Plan

The Contractor shall have in place a QA/QC Plan appropriate for the receipt, storage, and distribution of food for human consumption. The QA/QC plan format shall contain a title page, table of contents, material, and appendices. The QA/QC plan shall cover all performance standards and shall also include thorough Security, Safety, and Food Safety plans.

The QA/QC plan shall include requirements for documentation of quality control efforts. QA/QC plan shall also include a thorough Security Plan and Safety Plan covering all performance standards. The Contractor shall specify all quality control measures to be used in monitoring product quality and detecting and minimizing errors of both Contractor and subcontractor staff. The QA/QC plan must identify actions the Contractor shall take to escalate measures as needed if USDA identifies persistent concerns with the timeliness, accuracy or quality of deliveries to recipient agencies. For example, the plan shall detail how individual orders will be inspected for quality prior to leaving the warehouse with plans for increased staffing and oversight as needed.

The Contractor's QA/QC plan shall provide for the noting of nonconforming services, the number and type of noted deficiencies and decisions made regarding the acceptability of processes, services, and corrective action procedures.

1. Security Plan: The Contractor shall abide by the Security Plan accepted as part of the requirement deliverable, which should be included as part of the Contractor's QA/QC Plan covering all performance standards. The Security Plan shall establish and maintain comprehensive security measures that establish procedures for the following:

a) Safeguarding the USDA products received, stored, and delivered to the respective recipient agencies

b) Seals on Transportation Conveyances - Contractor shall be responsible for placing a seal(s) on all doors of each transportation conveyance upon completion of loading or servicing. The seal number(s) shall be entered on the BOL, which must be signed or acknowledged by the carrier or its agent. Seals are required to be tamper-evident commercial flat metal, wire, or plastic security seals

c) Area security of the physical structures and grounds for leased and/or space facilities

d) Vulnerability Assessments

e) Visitor Control

f) Response to emergency situations to include pre-planning for system outages to notify inbound

Vendors and recipient agencies

2. Safety Plan: Contractor shall provide and abide by the Safety Plan and the normal rules and regulations governing safety and security which are outlined in both the approved Safety and QA/QC Plan the entire time performance is completed under the contract. The Safety Plan should include the understanding of and a plan for dealing with any safety related issues involved in performance of services to USDA. The Safety Plan should include complete understanding of hazards, which may occur to Government or Contractor employees who ignore rules and regulations, including a discussion concerning the way the Contractor shall orient/train employees to the Federal and State regulations, which are applicable to the industry. Also, the plans should discuss the Contractor’s corrective actions, if and when violations occur as well as maintenance of plans to include updating plans as appropriate.

3. Food Safety Plan: Contractor shall provide and abide by a Food Safety Plan and meet or exceed the applicable rules and regulations governing food safety the entire time that performance is being completed under the contract.

Facilities (e.g., warehouses) that are covered under FSMA that receive, store, and distribute human and animal food products are required to have a written food safety plan (21 CFR 117 Subpart C). Food Safety Plans should address, at minimum, the following information:

a) Education and Training

b) The Current Good Manufacturing Practices (CGMPs)

c) Hazard Analysis

d) Preventative Controls (e.g., Process Controls, Allergen Controls, Sanitation Controls, Pest Controls, Chemical Controls, Employee Health/Hygiene, Transportation Controls, Foreign Material Controls, Maintenance, Security, Traceback/Recalls)

Pest Controls shall address an Integrated Pest Management (IPM) plan that identifies pests and monitors progress, sets action thresholds, and prevents and controls pests through inspection, monitoring, and reporting

e) Oversight and Management of Preventative Controls (to include Corrective Actions and Verification of Corrective Actions)

f) Supply Chain Program

The U.S. Food and Drug Administration's (FDA) Food Safety Plan Builder (FSPB) is a tool designed to assist owners/operators of food facilities (e.g. warehouses) with the development of food safety plans that are specific to the facilities and meet the requirements of the Current Good Manufacturing Practice, Hazard Analysis, and Risk-Based Preventive Controls for Human Food regulation (21 CFR Part 117).

2.11 Exigency Plan

The Contractor shall provide an Exigency Plan that describes the following:

1. Plan to ensure receipt of recipient orders and continuity of warehousing and delivery services due to power outages and other system failures at the Contractor’s facility(s).

2. Plan to manage deliveries based on unexpected closures at recipient’s location. (All non-regularly scheduled deliveries shall be approved in advance by recipient. The Government shall be notified of the delivery schedule change.)

3. Plan to continue making regularly scheduled deliveries in the case of a nation-wide fuel shortage.

4. Plan to prevent cyber-attacks upon Contractor’s Information Technology (IT) systems and to mitigate the effects of any attacks that do occur. This plan should describe security controls in place to protect the IT assets required to operate the warehouse, including physical security, network security, hardening of systems, patching of all software for support and security vulnerabilities, backup and restore capabilities, security of backups, scanning for vulnerabilities, encryption capabilities (encryption-in-transit, encryption-at-rest), endpoint protection, information security awareness training for all system users.