2022.02.14 Attachment 2b Accessorials Escalation Optional Svc.xlsx

1-Instructions

Tab 2-The Offeror shall provide the corresponding accessorial code from Attachment 5, Reporting Dictionary as well as a definition for each accessorial and any parameters of when or how the accessorial is applied. The Offeror shall annotate which service(s) the accessorial applies to (i.e. International Express, Domestic Express, Ground, All). If the accessorial is priced differently for shipments 0 to 150 lbs. than for shipments 151-300 lbs., the Offeror shall provide two entries (one row for each). On some accessorials, Offerors are able to propose both a minimum charge and a per pound cost if offered commercially. When these apply, the shipper shall be invoiced the greater of the two values.

Tab 3-Offerors shall propose the percentage escalation that shall apply across all rates and accessorials. If no escalation is proposed, the Offeror shall insert zero (0%).

**Proprietary Information**

HTC711-22-R-C003

Attachment 2b, Instructions 1 October 2022

NOTE: The “Set Escalation Percentage” cell found at the top of the rate sheets is offered as a convenience to carriers as a means of allowing the annual escalation rate to be applied automatically to each of the current year’s rates on file. This optional field can be used in lieu of requiring the manual entry of new rates each year. If a carrier chooses to utilize the “Set Escalation Percentage” cell when applying the escalation rate after the first year of performance, all carrier rates in Attachment 2 will be limited to two decimals utilizing the “set precision as displayed” function in excel. The following year’s escalation will then be applied to the hard-coded two-decimal dollar value displayed in the rate sheet. This pricing methodology will be applied to the four-year base period, and if applicable, the four-year option period.

Example: Assume a per lb. rate of $1.23 for the first year of performance with proposed escalation rates of 1% in year 2; 2% in year 3; and 3% in year 4.

a) After the first year of performance at a rate of $1.23, the year-two rate will be calculated as $1.23*(1+.01) =$1.2423 and the rate will be hard-coded at the “display value” of $1.24.

b) The year-three rate will be calculated as $1.24*(1+.02) = 1.2648, and the rate will be hard-coded at the “display value” of $1.26.

c) The year-four rate will be calculated as $1.26*(1+.03)= 1.2978, and the rate will be hard-coded at the “display value” of $1.30.

2-Accessorials Set Escalation Percentage (enter as decimal) see comment Barker, Sonya CIV USTRANSCOM AQ: Barker, Sonya CIV USTRANSCOM AQ:

This is a placeholder. This escalation rate is not applicable to the first year of performance.

EDI 858D Accessorial (Surcharge) Code tc={ADE0CEAD-C007-4C0B-B210-CC4E76CE88AD}: [Threaded comment]

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Comment:

Ref Tab 1 - Do we need to have a diff color code and/or instructions for what we're looking for on the EDI 858D (Surcharge Code)?

Barker, Sonya CIV USTRANSCOM AQ: Barker, Sonya CIV USTRANSCOM AQ:

International & Domestic Transportation Services Accessorial Surcharges **Proprietary Information**

HTC711-22-R-C003

Attachment 2b, Accessorial Surcharges

3-Escalation

**Proprietary Information**

HTC711-22-R-C003

Attachment 2b, NGDS-2 Annual Escalation

RATE REFRESH NOTE: The “Set Escalation Percentage” cell found at the top of the rate sheets is offered as a convenience to carriers as a means of allowing the annual escalation rate to be applied automatically to every current year rate on file by service level (excel spreadsheet tab). This optional field may be used in lieu of requiring the manual entry of new rates each year. If a carrier chooses to utilize the “Set Escalation Percentage” cell when applying the escalation rate after the first year of performance, all carrier rates in Attachment 2 will be U.S. dollar and cent formatted and limited to two decimals utilizing the “set precision as displayed” function in excel. The following year’s escalation will then be applied to the hard-coded two-decimal dollar value displayed in the rate sheet. This pricing methodology will be applied to the four-year base period, and if applicable, the four-year option period.

Example: Assume a per lb. rate of $1.23 for the first year of performance with proposed escalation rates of 1% in year 2; 2% in year 3; and 3% in year 4.

a) After the first year of performance at a rate of $1.23, the year-two rate will be calculated as $1.23*(1+.01) =$1.2423 and the rate will be hard-coded at the “display value” of $1.24.

b) The year-three rate will be calculated as $1.24*(1+.02) = 1.2648, and the rate will be hard-coded at the “display value” of $1.26

c) The year-four rate will be calculated as $1.26*(1+.03) = 1.2978, and the rate will be hard-coded at the “display value” of $1.30.

4-Optional Standard Mail

tc={5FEDFA62-8502-41C8-BBB6-C09CDD393BB6}: [Threaded comment]

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Comment:

This is a placeholder. This escalation rate is not applicable to the first year of performance.

Average Volumes

FY 2019 - FY 2021

Flat Volume October November December January February March April May June July August September 50000 80000 125000 610000 915000 490000 197000 50000 45000 60000 55000 53000 Parcel Volume October November December January February March April May June July August September 10000 15000 13000 30000 9000 8000 6000 7000 9500 8700 6500 7000

Parcel Volume October December February April June August 3000 4400 4900 9000 13000 4500 3000 1000 1100 700 500 600 image1.emf