36W79723R0001.docx

Subsistence Prime Vendor (SPV-6)

This solicitation is being issued for the upcoming Subsistence Prime Vendor program effective November 1, 2023.

PAGE 1 OF

1. REQUISITION NO.

2. CONTRACT NO.

3. AWARD/EFFECTIVE DATE

4. ORDER NO.

5. SOLICITATION NUMBER

6. SOLICITATION ISSUE DATE

a. NAME

b. TELEPHONE NO. (No Collect Calls)

8. OFFER DUE DATE/LOCAL

TIME

9. ISSUED BY

CODE

10. THIS ACQUISITION IS

UNRESTRICTED OR

SET ASIDE:

% FOR:

SMALL BUSINESS

HUBZONE SMALL

BUSINESS

SERVICE-DISABLED

VETERAN-OWNED

SMALL BUSINESS

WOMEN-OWNED SMALL BUSINESS

(WOSB) ELIGIBLE UNDER THE WOMEN-OWNED

SMALL BUSINESS PROGRAM

EDWOSB

8(A)

NAICS:

SIZE STANDARD:

11. DELIVERY FOR FOB DESTINA-

TION UNLESS BLOCK IS

MARKED

SEE SCHEDULE

12. DISCOUNT TERMS

13a. THIS CONTRACT IS A

RATED ORDER UNDER

DPAS (15 CFR 700)

13b. RATING

14. METHOD OF SOLICITATION

RFQ

IFB

RFP

15. DELIVER TO

CODE

16. ADMINISTERED BY

CODE

17a. CONTRACTOR/OFFEROR

CODE

FACILITY CODE

18a. PAYMENT WILL BE MADE BY

CODE

TELEPHONE NO.

UEI:

EFT:

PHONE:

FAX:

17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH ADDRESS IN OFFER 18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS BLOCK BELOW IS CHECKED

SEE ADDENDUM

19.

20.

21.

22.

23.

24.

ITEM NO.

SCHEDULE OF SUPPLIES/SERVICES

QUANTITY

UNIT

UNIT PRICE

AMOUNT

(Use Reverse and/or Attach Additional Sheets as Necessary)

25. ACCOUNTING AND APPROPRIATION DATA

26. TOTAL AWARD AMOUNT (For Govt. Use Only) 27a. SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1, 52.212-4. FAR 52.212-3 AND 52.212-5 ARE ATTACHED. ADDENDA

ARE

ARE NOT ATTACHED.

27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA

ARE

ARE NOT ATTACHED

28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN _______________

29. AWARD OF CONTRACT: REF. ___________________________________ OFFER

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND

DATED ________________________________. YOUR OFFER ON SOLICITATION

DELIVER ALL ITEMS SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY

(BLOCK 5), INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE

ADDITIONAL SHEETS SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED

SET FORTH HEREIN IS ACCEPTED AS TO ITEMS:

30a. SIGNATURE OF OFFEROR/CONTRACTOR 31a. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER) 30b. NAME AND TITLE OF SIGNER (TYPE OR PRINT) 30c. DATE SIGNED 31b. NAME OF CONTRACTING OFFICER (TYPE OR PRINT) 31c. DATE SIGNED

AUTHORIZED FOR LOCAL REPRODUCTION

(REV. NOV 2021)

PREVIOUS EDITION IS NOT USABLE

Prescribed by GSA - FAR (48 CFR) 53.212

7. FOR SOLICITATION

INFORMATION CALL:

STANDARD FORM 1449

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES

OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24, & 30

36W79723R0001 05-22-2023 Robert C. Mills (robert.mills2@va.gov) 708-786-5147 06-28-2023 5:00pm

CDT

Department of Veteran Affairs National Acquisition Center National Contract Services, Bldg 37 1st Avenue, One Block North of Cermak Hines, IL 60141

X 311999 500 Employees N/A X Direct to Government Facilities Refer to Attachment A

Department of Veteran Affairs National Acquisition Center National Contract Services, Bldg 37 1st Avenue, One Block North of Cermak Hines, IL 60141

Government Facilities Refer to Attachment A

Subsistence Prime Vendor (SPV-6) FSC 89 - Subsistence Prime Vendor for all VA Medical Centers (including Veteran Canteen Services retail foodservice operations) and participating Other Government Agencies.

Refer to Price Schedule (Attachment C) and Section E - Instructions to Offerors X x One(1) Robert C. Mills Contracting Officer Table of Contents

SECTION B - CONTINUATION OF SF 1449 BLOCKS

Solicitation Definitions

Produces food for multiple serving sites.

Private labeled products are also known as Exclusive Brands.

Price Factor Definitions

Formula to be used by SPV that delineates the customer price. Landed Product Price + (LPP X DSF) = Delivered Price (DP)

If the delivered selling price is other than FOB destination or the manufacturer/supplier’s invoiced 3rd party freight charge, the SPV contractor may include a transportation fee (see definition) to the contractor’s first point of distribution.

Deviated pricing agreements with manufacturer/suppliers or VA Approved Suppliers are usually based on fixed prices or allowances off list price.

SCOPE OF CONTRACT

The Department of Veterans Affairs (VA) has identified a need for a national prime vendor contract for the purchase and distribution of subsistence commodities and ancillary supplies for all 171 VA Medical Centers (VAMC), 160 Veteran Canteen Service Retail Cafeterias (VCS), and some Other Government Agencies (OGAs) including Defense Health Agency, Indian Health Services, State Veteran Homes, and other participating government agencies (135 sites). Refer to Attachment A for full customer listing. Facilities may be added or removed during the performance period upon mutual agreement between the Government and the SPV contractor. An award will be made to the offeror who provides the best value to the Government for price and identified technical factors.

The Government intends to award a hybrid contract where contract purchases of certain product categories will be subject to the Requirements clause (FAR 52.216-21) and other categories will be subject to the Indefinite Delivery-Indefinite Quantity (IDIQ) clause (FAR 52.216-22). All prices awarded under the contract will be Firm Fixed-Price. For VAMCs only, this is a requirements type contract subject to FAR 52.216-21 for categories I – VI, and VIII, and an IDIQ type contract for categories VII, IX, X, and XI. For VCS and OGA customers, this is an IDIQ contract and FAR 52.216-22 applies to all product categories.

with a minimum contract amount guaranteed of $171,000 made under the product categories that are subject to FAR 52.216-22. Minimum and Maximum contract value does not apply to the categories that are subject to FAR 52.216-21.

VAMC and VCS purchases for FY2022, were approximately $156,955,800 and OGA purchases were $64,295,300, product and distribution price included. OGA customers include State Veteran Homes, Department of Defense (DoD) Healthcare facilities, Indian Health Service (IHS) facilities, Job Corp, and other Federal Agencies. The contract maximum amount for all IDIQ product categories for VA and OGA sales under this contract shall not exceed $2,000,000,000 for entire performance period, inclusive of the base year and all four option years.

The VAMCs have been grouped into eighteen (18) geographical areas referred to as Veteran Integrated Service Networks (VISNs) (See Attachment A). OGAs are assigned to a VA VISN corresponding to their geographical location and are listed in a separate section of Attachment A. All participating customers must be serviced by this contract and only one contract will be awarded for all VISNs. Offerors may use multiple distribution centers within a VISN; however, a single distribution center for all facilities within a VISN is preferred. Each facility within a VISN must be serviced by only one distribution center unless otherwise mutually agreed to by the parties.

Attachment A lists each customer and shows amongst other things, Customer Name, Customer Type and the VISN each customer is currently assigned to; the attachment also indicates the average number of deliveries per week required for each facility. If a facility has “0 deliveries” that indicates less than one delivery per week. Deliveries have been minimized (1 to 3 per week for most facilities) to optimize contract pricing. A minimum value of $1,000 per delivery is required for all but a few very small locations shown on Attachment A. Small locations are designated on Attachment A. The minimum value per delivery for designated smaller facilities is $750. Smaller facilities may request every other week deliveries, if appropriate. Larger facilities may require additional deliveries (as listed in Attachment A) or may be incentivized to decrease the number of weekly deliveries, refer to Attachment C, Price Schedule. Many VAMC and VCS locations utilize the same receiving dock for both food deliveries but are not designated on this attachment; therefore, actual drops could be less than the number listed.

SPV customers utilize all varieties of food production and food service; from commissary cooking and shipping, blast chill and retherm cooking, convenience minimal preparation cooking, to cook serve preparation. Service may be in dining room setting, table or cafeteria style, preassembled tray delivery or room service. Menus are usually three-week cycles offering set meals and a variety of selection capabilities. These varied systems mandate a wide variety of food types, packaging, and food service supplies.

Attachment A also lists historical dollar amount for annual purchases from this contract for each VAMC and VCS facility. These figures are based on actual dollars spent in FY 2022 for all food items, which includes the distribution price, except fresh bread, fresh milk, and some produce plus approximately 50% of their non-food (flatware, china, serving utensils, disposable products, etc.) purchases.

Fresh bread is usually not available from a broadline food distributor, so it is excluded from this contract. Fresh milk is optional from this contract, however, can be purchased through the Subsistence Prime Vendor if local contracts are not available. The purchase of fresh milk is not subject to the requirements clause, however VA may elect to purchase through the SPV. Attachment C, Price Schedule, includes an optional category for the offeror to propose pricing for fresh produce, as fresh produce is not always available for facilities to purchase locally.

Prices for the majority of the dietary supplement products included in this solicitation have been established separate from this solicitation through a national mandatory VA Dietary Supplement contract. Each of the Dietary Supplement contracts is available to all SPV customers at the established contract price with no change in terms and conditions based on customer type. The products and F.O.B Destination awarded prices will be provided to the SPV contractor directly by the dietary supplement contractors for distribution through this contract. Dietary Supplement contract holders will be required to establish their own agreements and bill back processes with the SPV. It is the responsibility of the dietary supplement contract holders to report sales to the NAC contracting officer and submit the cost recovery fee to the VA. The SPV contractor shall not add the SPV distribution price (fee) or the additional cost recovery fee to the awarded Dietary Supplement items. Quarterly sales reporting for the Dietary Supplement products shall not be included in the SPV quarterly sales report to the NAC Contracting Officer.

For Category IX, products are made available through the GSA Janitorial and Sanitation Supplies (JanSan) Purchase Channel (a Strategic Sourcing program available to Federal agencies). VA facilities will be utilizing SPV as a back-up source if product is not available through the Jan/San program, Ability One, and a SDVOSB/VOSB as their primary source. See https://www.gsa.gov/portal/category/107587 for more information. All purchases made from those programs/small businesses would be independent of the SPV program.

For Category X, products are made available through AbilityOne National Procurement List. See http://www.abilityone.gov/procurement_list/index.html for more information. All mandatory sources of supply products through either the GSA Janitorial and Sanitation program or the AbilityOne programs have their own ordering instructions and can be found on their respective websites. VA facilities will be utilizing SPV as a back-up source if product is not available through Ability One or any SDVOSB or VOSB as their primary source. All purchases of those products would be independent of the SPV program.

The VA encourages teaming arrangements for small and medium-size businesses. Teamed contractor groups must have one national coordinator/contact with contracting authority over disposition of this contract, can coordinate for the VA deviated pricing agreements with manufacturers and enforce implementation (stocking and pricing) of these agreements with all “teamed” offerors, and must be able to provide consolidated management reports (broken down by SPV customer type) of total purchases off this contract from all product manufacturers/suppliers. The “teamed” offeror must provide the same computer ordering system to all SPV customers. Each VISN must be serviced by one contractor. Each facility shall have contractor and distribution center identified in the proposal, Attachment D – Customer Delivery Information. All contract requirements; technical, past performance, and pricing shall be provided for each contractor incorporated into a teamed proposal.

The initial base period of this contract will be from November 1, 2023 through October 31, 2024, with 4, one- year options. The contract effective date is November 1, 2023. Each customer facility will provide product usage data to the SPV at least sixty calendar days prior to the contract starting date. All order guide development and electronic order procedure training for facility personnel must be completed by the SPV prior to the contract starting date. 90% of product requirements must be available to the facilities no less than 5 calendar days prior to the contract effective date. Fill-rate requirements must be met within 90 days of the contract effective date.

STATEMENT OF WORK

1. PRODUCT LINE AND AVAILABILITY

Products being procured are commercially available products; no specific product characteristics are defined in this contract, but the SPV contractor is expected to carry a full, commercial product catalog with detailed product descriptions and enough diversity and inventory to meet the healthcare needs and economic constraints of each facility. Products shall include but are not limited to:

1. A variety of food types (i.e. shelf stable, refrigerated, frozen, raw, precooked) including nutrient modified (reduced/low fat and sugar, reduced sodium and increased fiber/whole grains), consistency modified (i.e. pureed, thickened foods, ground/diced meats, fruits and vegetables), allergy-free (i.e. free of wheat, dairy, soy, peanut, tree nut, egg, shellfish, fish and sesame) and sustainable (i.e. organic, antibiotic free and locally sourced) foods in all product categories.

1. A variety of plant-based proteins products and vegan offerings (i.e., meat analogues, tofu, quinoa, tempeh, edamame, lentils, chickpeas, etc.), including entrée options that are manufactured and packaged as a cook-to-serve vegetarian and/or vegan products, comparable to a regular menu offering.

1. Multiple product choices for each food type and grade level, allowing for various price levels.

1. A variety of both branded and private label products.

1. A variety of pack sizes; individual portion packs, small/medium multi-serve packaging and large bulk pack.

1. A broad inventory of supply products (paper, plastics, foil, etc.), chemicals (cleaning and sanitation), and small food service equipment (scoops, ladles, tongs, can openers, pans, trays, etc.) including those that support “Sustainable” environmental practices.

The SPV contractor must be able to provide an uninterrupted source of supply in sufficient quantities to meet the estimated requirements for the base contract period and four option years, which may be exercised. Sixty days prior to the contract effective date, each participating customer will provide the SPV contractor a list of products and weekly/monthly usage requirements to ensure appropriate inventory is available at start-up. This data will be provided to the SPV contractor whenever a facility implements a new menu cycle, generally with 30-day notice, and/or any other food production changes that would impact product purchases. The SPV contractor must be able to react to emergency situations with advanced additional orders and/or additional or replacement products as quickly as conditions allow.

Sufficient inventories (SKUs) shall be maintained by the SPV contractor to minimize the need for substitutes and/or “special orders”. When inventory is temporarily unavailable substitutions of appropriate (like) products shall be offered to the customer within the ordering process (customer may pre-select appropriate substitute if possible). No substitute shall be made without prior approval by the customer. Substituted items must be of equal or higher quality (i.e., same, or better grade; nutritional value; pack size, etc.) and equal or lower in price whenever possible. Inventory that has been permanently discontinued shall be communicated within three days of when item is considered no longer available.

Any SPV customer can request stocking of any product they require with a usage of at least 12 cases per month. Usage minimum can be met by aggregate of all SPV customers serviced out of the designated warehouse. The SPV contractor shall bring into its warehouse new products (either part of standardization program or not) within thirty days of customer request if usage requirement is met.

If a 12 case/month customer usage is not possible, products from a deviated pricing agreement manufacturer/supplier or one who is an established customer to SPV contractor shall be processed as a “special order”. A simple, easily implemented, and timely process shall be in place to allow for special orders on a one time or continued need basis. Process shall include a tracking/communication mechanism that allows SPV contractor to communicate the order status to the customer. Order invoice shall be complete within ten days of receiving order unless otherwise agreed upon by the facility COR and SPV contractor. If the requested product manufacturer/supplier is new to the SPV contractor, the manufacturer/supplier must meet the SPV’s requirements and certifications before any new product can be procured. This process shall not exceed 60 days without notification to the customer of reason for delay.

The SPV contractor shall work with SPV customers for bringing in new/experimental products for testing outside of the normal stocking requirements. New/experimental products will not be required for long-term stocking but to ensure that SPV customers have access to products entering the marketplace.

Monthly reoccurring special order products that do not meet the minimum stocking requirements shall be addressed at the customer quarterly business reviews to determine if any additional accommodations can be made between the SPV and customer.

2. PRODUCT QUALITY & SAFETY

All products offered must be in accordance with their designated quality level or specification as listed in the product description in the electronic catalog and on product labels. The SPV contractor must have an established process for verifying product quality level when received into stock and throughout the product life cycle. Food safety is a priority for healthcare foodservice and, as such, the SPV contractor shall maintain exacting policies and procedures that ensure all their suppliers and their own staff procure properly grown, manufactured, packaged, and delivered products. Manufacturers/suppliers must certify via their corporate HACCP plan their manufacturing and distribution facilities comply with all applicable state and federal health regulations FDA Food Code Standards, and comply with Good Manufacturing Practices (GMPs) as outlined by the U.S. Food and Drug Administration and found in 21 CFR Part 110.

The SPV contractor shall have procedures in place for inspecting products according to HACCP (Hazard Analysis Critical Control Point) guidelines upon receipt from suppliers for quality, temperature, and any evidence of pest infestation or tampering. The SPV contractor shall warehouse and transport products in appropriate environments and under security precautions.

The SPV contractor shall have a process in place with product manufacturer/supplier for timely and complete reporting of any product quality or safety problems. Recall procedures of any problem products must be clear and easily acted upon and communicated by the SPV contractor to customer.

Product descriptions within the SPV contractor’s product catalog must provide characteristic details and be accurate and current to product numbers and inventory. Any products received by customers that do not comply with the product description will be returned for credit and/or replacement. Any repeated occurrences will be reported to the NAC Contracting Officer for further corrective action.

The SPV contractor shall ensure that products have adequate shelf-life upon delivery to customers as described herein. Products with limited shelf-life requirements such as refrigerated products, fresh salads, shell eggs, juices, bases, meats, etc. must have at least half of their normal shelf life remaining upon customer receipt. If a perishable product has a less than seven-day normal shelf life, at least four days must be remaining upon delivery. Other food items shall have at least thirty days of remaining shelf-life upon delivery except for the nationally contracted nutritional supplements and tube feedings, which must have at least sixty days of shelf life remaining at time of delivery to the facility. Products with less than the expected shelf-life remaining may be offered to a facility to meet an emergent need; however, facility CORs will provide approval prior to delivery. The SPV contractor shall have a monitoring system to track product shelf-life including checking at time of order selection.

Facilities will contact the SPV contractor to return for credit any products that upon receipt (within 24 hours of delivery) or upon opening package, thawing, or cooking:

1. are of unacceptable quality or temperature,

1. are outdated or have insufficient shelf-life,

1. have visible or concealed damage or odor

1. have been recalled,

1. were shipped in error (item or quantity),

1. are from an unacceptable supplier or a manufacturer/supplier from a non-TAA country

CORs will coordinate with the SPV contractor whether to return rejected product to the SPV contractor on the next scheduled delivery or to destroy product. Any product not picked up by the SPV contractor by the agreed date will be destroyed by the customer and the SPV contractor will be billed for any charges incurred in the destruction of the rejected products.

The SPV contractor shall maintain product traceability from farm through manufacturer, and distributor to customer. This information is vital to the recall process for problematic products. The SPV contractor shall be able to provide country of origin and/or manufacturer of any given product ordered. The SPV contractor shall provide a listing of products available from local (defined by distributor and area of the country) suppliers and farmers upon request by the customer.

The SPV contractor will, where possible, incorporate a sustainability plan which may include recycling and availability of locally grown and organic products. The SPV contractor will, where possible, use packing materials which have the least impact on the environment when manufactured or disposed.

3. PROCUREMENT CAPABILITIES

Best value acquisition of products is expected with SPV contractor forecasting requirements, monitoring markets for expected best pricing periods, utilizing full truckload product purchases to the greatest extent possible, and leveraging transportation costs (fleet management). Effective and efficient purchasing methods shall be utilized by the SPV contractor to minimize price increases and maximize price decreases.

4. ELECTRONIC ORDERING SYSTEM

The SPV contractor shall provide a real-time electronic ordering system that includes product information, number of cases on hand or expected in the near future, purchase histories, invoice history, capability to link to other commercially available software used in the foodservice industry, and management reports. Prices displayed at time of order must be the prices listed on confirmed order and invoice except for variable weight products (meats, poultry, seafood and produce) where confirmed product price per pound would be the same but case weight of product may vary due to natural size or cut. Electronic ordering process shall be web-based, shall be user friendly and shall provide full catalog access with detailed item descriptions (specifications and nutritional values), customized order guides, contract and deviated agreement pricing, identification of special VA priced products, substitution capabilities, and order confirmation immediately following order submission. Training of facility staff on the SPV contractor’s electronic ordering process must be completed prior to the contract effective date. The SPV shall provide training on the electronic ordering process to facility employees upon request or for any SPV system enhancements during the contract period. No more than one (1) training per quarter shall be requested by each customer location. The SPV shall provide access to a manual for use at each facility. Updates to the system affecting ordering processes shall be relayed to designated CORs and to the NAC contracting officer prior to implementation.

The SPV must have the capability to interface with the foodservice software for both price files and orders, including Computrition. The Prime Vendor shall be able to provide a price file to the user for import into the foodservice software to interface updated product prices. The Prime Vendor shall also provide the capability to the user for the user to import an order export file from the foodservice software into the Prime Vendor’s electronic ordering tool so that an order built in the foodservice software can be interfaced to the Prime Vendor where it can be submitted electronically.

The SPV contractor shall coordinate all order guide creation and updates with each facility. Timely price updates and product additions are necessary to streamline the ordering process. The SPV contractor shall provide all participating customers with alternate procedures for placing orders when the electronic ordering system is not functioning. Utilization reports of the online ordering system shall be kept by the SPV and available upon request by the NAC Contracting Officer.

Just in time deliveries are required by customers to minimize facility inventory. Facilities may place orders one to five days in advance of delivery, with inventory reserved at time of order or not less than twenty-four hours prior to delivery, with additions or deletions possible up to 3:00 PM local time the day prior to delivery. Normal order cut-off time can be no earlier than 3:00 PM local time; any earlier cut-off time will need to be mutually agreed upon between the SPV contractor and facility COR. If inventory is not reserved at time of order placement, shortages and potential substitutes must be reported to the ordering facility twenty-four hours prior to delivery. All orders shall be processed as “fill or kill.” Substitutions may be offered to the customer but must be accepted by the customer before delivery. No back orders for unfulfilled orders (out of stock, mispicks, or damaged product) are allowed.

5. MANAGEMENT REPORTS

The SPV Contractor shall have a robust reporting system that allows for Individual Facilities, VISN Leaders, VCS & OGA Customer Managers and the NAC Contracting Officer the ability the analyze all aspects of SPV business operations. All reports shall be downloadable into an Excel format for customer use.

Individual Customer Facility Individual facilities shall, at a minimum, be able to generate the following monthly reports with capability to roll-up quarterly and annually as needed for their specific location.

· Invoice History

· Account Status

· Purchase History

· Credit History

· Cost Avoidance

· Deviated pricing program compliance

· Any report that supports a performance metric requirement VISN Leaders and VCS & OGA Customer Managers SPV contractor shall have a process and timeline for delivering specialized management reports. VISN Leaders and VCS & OGA Customer Managers (Management) shall have, at a minimum, the ability to generate reports for each of the individual facilities that fall under their specific area of responsibility, i.e., VISNs, Canteen Locations, broad OGA Customer Type, etc., to ensure customer group is maintaining strong operational efficiency. In addition to having access to reports for each individual reports listed above, Management, shall have the ability to generate the following reports for their area of responsibility.

· Total sales

· Customer Purchases

· Total Cost Avoidance

· Product Pricing trends

· Product availability

· Program Pricing Program Compliance NAC Contracting Officer The NAC Contracting Officer requires the ability to view and generate facility data reports stated above and roll-up reports for all SPV customers in a VISN by customer type, VAMC, VCS, or OGA. Additionally, the SPV Contractor shall provide the following quarterly and monthly reports:

Monthly: A Sales Report that shows total purchase dollars, cases, deviated pricing program purchases, and cost avoidance for each individual customer. The report shall be summarized with the ability to filter by customer type, facility and VISN.

Quarterly: On a quarterly basis, all reports that support any performance metric function is to be submitted, i.e., Fill Rate Report, etc. Additionally, a sales report and cost avoidance report shall be submitted that summarizes the same information as the monthly sales report.

Other additional reports should be made available on an ad hoc basis:

1. Performance metrics per facility per month or quarter

1. Deviated Pricing program information showing total products on the agreement

1. Product Recall incidence report specific to SPV Customers

1. Incentives report of savings

1. Available warehouse third party sanitation score reports and corrective actions.

1. Product standardization report highlighting deviated pricing agreement products that may be substituted for current purchases.

1. Sustainable products available

1. Local vendor products carried by Contractor

1. Lists specific to any required food type; i.e., organic, antibiotic free, gluten free, etc.

6. QUALITY ASSURANCE

Products delivered by product manufacturers/suppliers to the SPV contractor shall be inspected by the SPV contractor upon receipt for quality, temperature, and tampering. All deliveries from manufacturers/suppliers to the SPV shall include appropriate documentation to authenticate product, and source shall accompany product delivery. HACCP guidelines shall be used as basis for inspection, acceptance, and storage of products to maintain product integrity.

7. DELIVERY SCHEDULE & PROCESS

Most customers of this contract require one to three deliveries per facility per week. Larger facilities may require a five-day delivery schedule. “Attachment A” lists by facility, the average number of deliveries per week and drop sites per location. Deliveries shall be completed within a four-hour window on scheduled days and if delayed more than 15 minutes beyond delivery time, the SPV contractor shall contact the facility to give an estimated revised delivery time. A specific delivery schedule, truck size and facility location shall be mutually established between each facility COR and the SPV contractor after award. Any changes in the delivery schedule during the contract period shall be communicated to facilities and mutually agreed upon before being implemented.

No deliveries shall be made to facilities on Federal Holidays unless otherwise authorized by the individual facility. Delivery schedule adjustments shall be planned in advance to accommodate facilities requirements. Schedule changes as a result of local holidays or local altering circumstances will be communicated by the customer to the SPV contractor in advance or as soon as possible to meet the facility’s requirements and SPV contractor’s delivery schedule.

Any change to a customer’s distribution center shall be approved by the NAC Contracting Officer no less than 90 days prior to any customer transition to a new distribution center. To ensure customer product continuity, any change to a customer’s distribution center shall include an action plan outlining the following items:

1) Detailed overview of transition plan,

2) Product listings of each affected customer,

3) Impact statement of how current customers will be affected by change to the proposed distribution center,

4) Any changes in distribution schedule to affected customers

5) A detailed communication schedule for each affected customer.

This action plan shall be mutually agreed upon between SPV and the NAC Contracting Officer prior to any changes being implemented. Failure to seek approval prior to changing a customer’s distribution center may result in negative performance ratings.

All products shall be assembled for delivery in an environment conducive to the products requirements; i.e., ambient, refrigerated, and freezer temperatures. Products shall be stacked according to fragility of product with most fragile on top and sturdier on bottom. Chemicals shall be separate from food products. SPV orders shall be palletized, stacked no higher than 60 inches, assembled and packaged to protect from damage (i.e., banded and or shrink wrapped). Some products may be stacked higher than 60 inches for truck utilization if product is not damaged in any way; however, pallet shall be reduced to 60 inches for delivery into the customer’s facility. SPV orders shall not be delivered on pallets with orders of any other customers.

Products are to be received by the facility in high quality condition and in accordance with all HACCP guidelines. Products labeled as: “Protect from Heat”, “Chilled/Refrigerated”, and “Frozen” food products shall be shipped and stored to maintain these products at optimal temperature to destination. Optimal temperature is based upon the latest edition of the FDA food code and specific to the food product category. At destination frozen product shall be hard frozen with no signs of defrosting and temperature of product shall not be above 0 degrees Fahrenheit. Mixed product loads must be in equipment capable of maintaining the products in their accepted safe temperature ranges from loading to destination.

All vehicles used in transportation will be subject to inspection at time of delivery by the facility’s COR or designated alternate. Unsatisfactory results of any such truck inspections will be reported to the Contractor’s representative. The SPV contractor’s failure to have delivery trucks adequately secured and/or failure of any product to meet safety, temperature, or quality standards will result in rejection of products and will require appropriate replacement and/or credit.

When long distance distribution requires two trailers or a drop off trailer, security measures shall be in place to safeguard products and electronic temperature logs are essential.

The SPV contractor’s drivers are responsible for unloading all products from trucks expeditiously and are required to deliver product to the customers’ designated docks or storage areas. Unsecured products shall never be left unattended unless previously planned for and/or approved by mutual agreement of the facility’s COR and Contractor.

Orders will be inspected upon receipt by facility personnel according to delivery invoice and food safety guidelines for product quality, shelf life, and temperature.