AG-DPRO-S-12-9980.pdf

Solicitation No. AG-DPRO-S-12-9980

United States Department of Agriculture

FARM SERVICE AGENCY

Kanasas City Commodity Office Kansas City, Missouri

Multi-Food National Warehouse Services: The USDA requests competitive proposals from all responsible sources to provide commercial storage and distribution services throughout the United States. Contractor(s) will provide multi-temperature facilities to receive and store commodities purchased by USDA, and distribution services to prepare shipments and deliver commodities to approximately 231 different recipient locations participating in USDA food assistance programs.

This solicitation incorporates Federal Acquisition Regulation clauses and provisions in effect through FAC 2005-55.

February 10, 2012

AUTHORIZED FOR LOCAL REPRODUCTION STANDARD FORM 33 (REV. 9-97)

Previous edition is unusable Prescribed by GSA – FAR (48 CFR) 53.214(c)

SOLICITATION, OFFER AND AWARD 1. THIS CONTRACT IS A RATED ORDER

UNDER DPAS (15CFR 350)

RATING PAGE OF PAGES

N/A 1

2. CONTRACT NO. 3. SOLICITATION NO. 4. TYPE OF SOLICITATION 5. DATE ISSUED 6. REQUISITION/PURCHASE NUMBER

AG-DPRO-S-12-9980 SEALED BID (IFB) N/A

NEGOTIATED (RFP)

7. ISSUED BY CODE 8. ADDRESS OFFER TO (If other than Item 7)

U.S. Department of Agriculture Farm Service Agency Kansas City Commodity Office

See Sec. L

NOTE: In sealed bid solicitations “offer” and “offeror” mean “bid” and bidder”.

SOLICITATION

9. Sealed offers in original and See Sec. L copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if handcarried, in the depository located in See sec. L until See L local time See Sec. L (Hour) (Date) CAUTION - LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in this solicitation.

10. FOR

INFORMATION

CALL:

A. NAME B. TELEPHONE (NO COLLECT CALLS) C. E-MAIL ADDRESS

Pre-award: See Sec. L

AREA CODE NUMBER EXT. Pre-award: See Sec L, L.4

11. TABLE OF CONTENTS

(X) SEC. DESCRIPTION PAGE(S) (X) SEC. DESCRIPTION PAGE(S)

PART I ⎯ THE SCHEDULE PART II ⎯ CONTRACT CLAUSES

X A SOLICITATION/CONTRACT FORM 2 X I CONTRACT CLAUSES 84

X B SUPPLIES OR SERVICES AND PRICES/COSTS 2 PART III ⎯ LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

X C DESCRIPTION/SPECS./WORK STATEMENT 26 X J LIST OF ATTACHMENTS 110

X D PACKAGING AND MARKING 2 PART IV ⎯ REPRESENTATIONS AND INSTRUCTIONS

X E INSPECTION AND ACCEPTANCE 6 X K

REPRESENTATIONS, CERTIFICATIONS AND

OTHER STATEMENTS OF OFFERORS 10

X F DELIVERIES OR PERFORMANCE 4

X G CONTACT ADMINISTRATION DATA 4 X L INSTRS. CONDS., AND NOTICES TO OFFERORS 12

X H SPECIAL CONTRACT REQUIREMENTS 6 X M EVALUATION FACTORS FOR AWARD 8

OFFER (Must be fully completed by offeror) NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

12. In compliance with the above, the undersigned agrees, if this offer is accepted within 120 calendar days (60 calendar days unless a different period is inserted by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the designated point (s), within the time specified in the schedule.

13. DISCOUNT FOR PROMPT PAYMENT

(See Section I, Clause No. 52-232-8)

10 CALENDAR DAYS % 20 CALENDAR DAYS % 30 CALENDAR DAYS % CALENDAR DAYS %

14. ACKNOWLEDGMENT OF AMENDMENTS

(The offeror acknowledges receipt of amendments to the SOLICITATION for offerors and related documents numbered and dated):

AMENDMENT NO. DATE AMENDMENT NO. DATE

15A. NAME AND

ADDRESS

OF OFFER-

OR

CODE FACILITY 16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER

(Type or print)

15B. TELEPHONE NUMBER 15C. CHECK IF REMITTANCE ADDRESS IS

DIFFERENT FROM ABOVE – ENTER SUCH

ADDRESS IN SCHEDULE.

17. SIGNATURE 18. OFFER DATE

AREA CODE NUMBER EXT.

AWARD (To be completed by Government)

19. ACCEPTED AS TO ITEMS NUMBERED 20. AMOUNT 21. ACCOUNTING AND APPROPRIATION

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION:

23. SUBMIT INVOICES TO ADDRESS

SHOWN IN (4 copies unless otherwise specified)

ITEM

10 U.S.C. 2304(c) ( ) 41 U.S.C. 253(c) ( ) Section G

24. ADMINISTERED BY (If other than Item 7) CODE 25. PAYMENT WILL BE MADE BY CODE

USDA/FSA/FCS/FCMO/IPG

Beacon Facility – Mailstop 8578 P.O. Box 419205, Kansas City, MO 64141-6205

26. NAME OF CONTRACTING OFFICER (Type or print) 27. UNITED STATES OF AMERICA 28. AWARD DATE

Wayne A. Oliver (Signature of Contracting Officer)

IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.

Section A AG-INTP-S-11-9980 Solicitation/Contract Form

A-1 christine.gouger Typewritten Text 2/10/12 christine.gouger Typewritten Text

Section A AG-INTP-S-11-9980 Solicitation/Contract Form

A-2

Section A – Solicitation/Contract Form Continued - Advisory Regarding Submission of Proposals

1. Due Diligence – Prospective offerors are responsible for reading the entire solicitation and referenced material.

2. Proposals − In order to comply with the provisions of the solicitation, your proposal shall include a technical proposal and a price proposal. See Section L.

3. Assistance with Government Contracting − Procurement Technical Assistance Centers (PTACs) help businesses seeking to compete successfully in federal, state and local government contracting by providing a range of expert services at little or no charge. More information, and local PTAC office contact information, is available at http://www.aptac-us.org/new/.

4. Wage Determination(s) − Offerors must request a wage determination from the Department of Labor within 10 calendar days of solicitation issuance. See Section L.

5. Processed Commodities Storage Agreement (PCSA) − Offerors needing to apply for a PCSA, including making modifications to an existing agreement, need to apply within 10 calendar days of issuance of the solicitation. See Section L.

6. Section K, Representations and Certifications – Paragraph (d) of 52.204-8 must be completed and submitted with your proposal. This requires that annual representations and certifications be completed electronically via the Online Representations and Certifications Application (ORCA) website at http://orca.bpn.gov.

7. Sealed Proposals − Sealed envelopes containing proposals shall be marked to show the offeror’s name and address, the solicitation number, amendments received and acknowledged, and the date and time proposal are due. See Section L.

8. Amendments − Have you acknowledged receipt of all amendments? Monitor amendment issuance by accessing the solicitation on the FedBizOpps website at www.fbo.gov.

9. Late Proposals − Late proposals shall be handled in accordance with provision 52.215-1. See Section L.

10. Accuracy of Proposal − Have you reviewed your technical proposal(s) and price proposal(s) for possible errors and omissions?

11. False Statements − The penalty for making false statements in Offeror's proposal is prescribed in 18 U.S.C.

1001.

12. Offerors are advised that the following numbering system is used for solicitation provisions and contract clauses.

(The numbering system identifies the source of the contract term.)

52.201-1 “52” refers to Part 52 of the Federal Acquisition Regulation (FAR) (within Title 48 of the Code of Federal Regulations, Chapter 1; or 48CFR1)

452.201-71 “452” refers to the USDA supplement to the FAR (within Chapter 4 of Title 48 of the Code of Federal Regulations, or 48CFR4)

4K52.201-71 “4K52” refers to USDA contracting activity specific clauses, the suffix “K” within “4K52” indicates the term is specific to USDA’s Farm Service Agency commodity procurements.

http://www.aptac-us.org/new/ http://orca.bpn.gov/ http://www.fbo.gov/

AG-DPRO-S-12-9980

SECTION B

SCHEDULE OF SERVICES AND PRICE/COST

B-1

B.1 Purpose: The purpose of this solicitation is to award a firm-fixed-price requirements service contract(s), with performance-based work requirements, for commercial storage and distribution services within the United States. Contractor may be awarded one or more Schedules (zones). See Section L for possible zone options.

B.2 Program Requirements: The Government’s actual program requirements will dictate the delivery and quantities ordered for various contract line items. Program delivery and/or quantity requirements may vary, for example, due to program funding levels, food prices, recipient participation rates, and/or the operation of FNS’s FDPIR, Regional Vendor Pilot. The Contractor shall plan, schedule, coordinate and assure effective performance of all services described in this solicitation. Task orders will be issued in accordance with the procedures as outlined in Section F.

B.3 Travel: Travel is expected to be minimal under this contract, with the exception of attendance at the Postaward Conference in Kansas City, Missouri. Any cost for travel outside the assigned geographic area will be negotiated. Refer to Section B, CLINs for the applicable line items.

B.4 Service Contract Act: Services outlined in Section C are applicable to the Service Contract Act. Refer to Section H.8 regarding wage determinations.

B.5 Incidental Deliverables: Incidental deliverables required under the contract, such as reports, are outlined in Section C, and Section J, Attachment E, Reports, Schedules, and Data Requirements. Deliverables, invoices and/or reports shall be prepared in accordance with Section J, Attachment E, and submitted as described in Section G. For purposes of delivery, all deliverables, invoices and/or reports shall be made by close of business (COB) 4:30 p.m. local time (Kansas City, Missouri and Alexandria, Virginia), Monday through Friday, unless stated otherwise in the contract and/or task order.

B.6 Units of Issue: The Units of Issue referenced in the Price Schedule spreadsheets are defined as follows:

CWT = Gross Hundred Weight LS = Lump Sum (Extend out total) EA = Each MI = Per Mile HR = Per Hour U/I = Unit of Issue LTL = Less than Truckload

B.7 Section B Price Schedules and CLINs: Contract Line Items (CLINs) for the Base Period and all Option Periods are located in spreadsheets starting on page B-2. These Price Schedules are completed as part of an offeror’s price proposal (see Section L), and will be used to evaluate an offeror’s proposal as stated in Section M of this solicitation.

B.8 Application of the Fuel Related General Rate Adjustment (FRGRA): Only the following CLINS are subject to application of the CLIN 0011 FRGRA:

• 0004 – Transportation by Truck Load per State – Standard Conveyance (Dry)

• 0005 – Transportation by Truck Load per State – Standard Conveyance (Combo)

• 0008 – Less than Truck Load – by State for Dry Commodities (Standard Conveyance)

• 0009 – Less than Truck Load – by State for Combo Shipments (Standard Conveyance)

• 0010 – Intermodal Door to Door from Contractors Warehouse to Final Destination Transportation https://www.fbo.gov/spg/USDA/FSA/KCCO/AG-DPDV-S-11-0002/listing.html

SECTION B

SCHEDULE OF SERVICES AND PRICE/COST

B-2

PAGES B3 - B232

are found in the 4 spreadsheets included as a FBO Document Package with the following filenames:

Filename Pages Section B Schedule of Services and Price Schedule A-West.xls B3 - B37 (plus mileage sheets) Section B Schedule of Services and Price Schedule B-Central.xls B38 - B77 (plus mileage sheets) Section B Schedule of Services and Price Schedule C-East.xls B78 - B132 (plus mileage sheets) Section B Schedule of Services and Price Schedule D-National.xls B133-B232 (plus mileage sheets)

Line

Line

SECTION C

DESCRIPTION OF WORK/PERFORMANCE STANDARDS

C-1

C.1 Description of Work: The Farm Service Agency (FSA) is seeking to establish and implement a firm-fixed-price requirements service contract(s) to receive and store commodities purchased by the USDA for multi-food shipments. USDA will purchase commodities to stock the contractor(s) warehouse. Notification of commodities to be shipped to the contractor(s) facilities will be provided to the contractor utilizing an Advanced Shipping Notice email. (Refer to Section J, Attachment F.) Contractor must have the capability of maintaining several months’ supply of commodities (see estimates in paragraph C.4). The contractor(s) must have an account to access the Web Based Supply Chain Management System (WBSCM) in order to access information on incoming shipments and to enter receipt information. (Refer Section J, Attachment N.) A WBSCM account will be made available to the contractor free of charge.

The contractor(s) will be responsible for distribution (including rating, routing and transportation) of contractor-stored, USDA commodities (supplied as described above) to recipients identified by USDA. Orders will generally be placed through WBSCM and be distributed to recipients of Government food assistance programs; however, other distributions may be necessary, such as for natural disaster assistance. Distribution must be accomplished in full and less-than-truckload quantities. Commodities requiring dry, cooler and freezer climate conditions may be consolidated in a single truck. The contractor(s) will provide a project manager (operations manager) whose primary responsibilities will be to oversee all tasks required under this contract and to ensure the performance standards of this contract are met. The contractor(s) must utilize WBSCM to access recipients’ orders. (Refer Section J, Attachment N.)

Section J, Attachment A identifies the Food and Nutrition Service (FNS) Zone(s), the approximate quantity of dry, cooler, and freezer foods delivered each year.

All work performed under this contract 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. The contractor is responsible for the day-to-day quality inspection and monitoring of all work performed to ensure compliance with contract requirements. The contractor shall have in place a quality assurance/quality control (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 include requirements for documentation of quality control efforts. The results of inspections shall made available to the CO, ACO, FSA/COR and FNS/COR, as required.

The contractor(s) will also be required to provide monthly reports to USDA as required in Section J, Attachment E.

C.2 USDA Food Distribution Programs: The Food Distribution Program on Indian Reservations (FDPIR), the Commodity Supplemental Food Program (CSFP) and the Emergency Food Assistance Program (TEFAP) are federally mandated commodity distribution programs.

Multi-food shipments will include primarily FDPIR and CSFP, with occasional shipments to other programs, such as 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 http://www.gpoaccess.gov/cfr/index.html

FDPIR is a federal program that provides commodity foods to low income households, including the elderly living on Indian reservations, and to Native American families residing in designated areas near reservations.

Many Native Americans participate in the FDPIR as an alternative to the Special Nutrition Assistance Program, usually because they do not have easy access to food stores.

http://www.gpoaccess.gov/cfr/index.html

C-2

The CSFP supplements the diets of low income, pregnant and breastfeeding women, other new mothers up to one year postpartum, infants, children up to age six, and elderly people at least 60 years of age.

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.

These will be multi-food shipments containing a variety of commodities that can also have different temperature requirements.

C.3 Zones: This contract will provide storage and distribution services for FNS’s Nationwide Program, which is comprised of the four zones as indicated below:

Zone A CSFP and FDPIR – Alaska*, Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Wyoming and Washington

Zone B CSFP and FDPIR – Arkansas, Iowa, Kansas, Louisiana, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma, South Dakota, and Texas

The FDPIR program for the following states will be delivered from Zone B facilities: Michigan, Mississippi, New York, North Carolina and Wisconsin.

Zone C CSFP – Alabama, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, Mississippi, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, Virgin Islands **, Washington, D.C., West Virginia, and Wisconsin

Zone D – Nationwide Nationwide is composed of all states and the Virgin Islands in Zone A, B and C. (Refer to Zone A, B and C above for details.)

* Approximately two shipments of commodities per month are delivered to Alaska.

** Approximately two shipments of commodities are delivered once a year to the Virgin Islands.

Notes:

- When negotiating delivery schedules for Alaska and Virgin Islands, the contractor should take into consideration the shipments are to be delivered within thirty (30) days after the WBSCM requisition cut-off date.

- Should the Contractor(s) be unable to meet the Government’s delivery requirements in the event of an emergency, the Government reserves the right to rate, route and transport the picked and packed commodities.

- Currently, not all states in a given zone receive shipments; however, they can become active at any time. Please see historical data in Section J, Attachment A.

C-3

C.4 Estimated Warehouse Space Required: The commercial contractor(s) must have dry, cooler, and freezer capacity. These spaces must be capable of maintaining temperatures in accordance with the Commodity Temperature and Relative Humidity Requirements provided at Section J, Attachment B.

Based on historical data, the following is an estimate of minimum useable square footage requirements for commodities:

Zone A: CSFP/FDPIR

Space Requirement Square Footage Dry 120,000 Cooler 40,000 Freezer 20,000

Refer to Section J, Attachment A for estimated yearly pounds of dry, cooler, and freezer deliveries.

Approximately 28.5 million pounds of multi-food shipments are delivered to Zone A on an annual basis. The multi-food shipments for this Zone will go to approximately 96 different locations.

Zone B: CSFP/FDPIR

Dry 140,000 Cooler 60,000 Freezer 40,000

Approximately 51 million pounds of multi-food shipments are delivered to Zone B on an annual basis. The multi-food shipments for this Zone will go to approximately 113 different locations.

Zone C-CSFP

Dry 70,000 Cooler 20,000

(Freezer space is not required for Zone C.) Refer to Section J, Attachment A for estimated yearly pounds of dry and cooler deliveries. Approximately 24 million pounds of multi-food shipments are delivered to Zone C on an annual basis. The multi-food shipments for this Zone will go to approximately 87 different locations.

Zone D-Nationwide-CSFP/FDPIR

Dry 300,000 Cooler 80,000 Freezer 40,000

C-4

C.5 Performance-Based Acquisition: FAR 37.102 established the policy to use a performance-based contracting approach for all service contracts. In performance-based contracting, the Government describes the work in terms of the required results rather than either “how” the work is to be accomplished or the number of hours to be provided. The Government relies on the use of measurable performance standards and appropriate financial incentives in a competitive environment to encourage competitors to develop and institute innovative and cost-effective methods of performing the work. The performance-based work is described below in a Performance Work Statement table. The following list defines the column headings:

a. TASK – The overall required service to be performed, through a series of related tasks and deliverables that are directed toward fulfillment of the contract’s objectives, using the performance indicators.

b. INDICATOR - The performance indicators are the specific means of measuring performance of each task and deliverable. These are also the primary evaluation factors for purposes of evaluating and scoring each Offeror’s proposal.

c. PERFORMANCE STANDARD – The Performance Standard identifies the standards for completeness, reliability, accuracy, timeliness, quality and/or cost for each Indicator.

d. ACCEPTABLE QUALITY LEVEL (AQL) - The AQL defines the minimum level of acceptability for each Performance Standard. This is the minimum level of quality the Government will accept.

e. MONITORING METHOD – The Monitoring Method is the means that the Government will use to measure the level of success that has been achieved by the Contractor in meeting each Performance Standard under this Contract.

f. INCENTIVES/DISINCENTIVES - Incentives and/or disincentives are used to achieve better quality performance and may be positive, negative, or both. Incentives and/or disincentives are for exceptional performance or poor performance based on the Performance Standards of the Contract.

These are applied to motivate contractor efforts and to discourage inefficiency. Incentive is defined, for this acquisition, as a non-monetary reward, in or arising directly from the terms and conditions of the Contract. Disincentives represent the value of service that is lost. If a task is not performed according to the requirements, deductions can be computed based on specified formulas.

C.6 Performance Work Statement

TASK: Contractor shall provide storage and distribution services to recipients for USDA INDICATOR: 1. Project Management Approach

PERFORMANCE

STANDARD

ACCEPTABLE QUALITY

LEVEL (AQL)

MONITORING

METHOD

INCENTIVES/

DISINCENTIVES

For Meeting or Not Meeting the Performance Standard*

A. Provide a comprehensive management approach to be taken to satisfy all of the requirements of this contract.

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 this contract.

Complete knowledge of scope of work.

Recognition of appropriate sequence and time tables.

Knowledge of appropriate types of resources to perform the work.

Knowledge of the personnel qualifications to perform the work.

Periodic meetings between Government and Contractor.

Day-to-day contact between Government and Contractor.

Random and periodic warehouse examinations by Government personnel.

Key Personnel Clause (See Section H).

B. Provide key personnel and lead contacts responsible for organizing, planning, and directing all contract support activities.

Key personnel must be capable of negotiating and making binding decisions.

Key personnel and Project Manager position(s) shall not be filled by a subcontractor; they shall be permanent employees of the contractor (including those employed pursuant to joint venture/teaming/ partnering arrangements).

Ensure completion of all tasks identified.

Contractor’s QA/QC Plan.

Normal contract administrative functions.

Review of Government and Contractor’s reports.

Review of Contractor’s resumes/employment records during periodic audits by Government personnel.

Exemplary performance will result in individual letters of commendation.

Exemplary performance may result in option renewal at the discretion of the CO.

Issuance of Cure/Show Cause Letter and other administrative remedies as appropriate and in accordance with FAR Clauses in Section I.

C-5

C-6

INDICATOR: 1. Project Management Approach

INCENTIVES/

DISINCENTIVES

For Meeting or Not Meeting the Performance Standard*

Key personnel and lead contacts demonstrate a complete under-standing of desired goals and exhibit strong leadership skills.

Key personnel and lead contacts will be accessible to USDA CO/CORs during normal business hours and 24/7 for emergencies.

C. Offeror and key personnel must have related experience in the field of warehousing and distribution, which must include experience in a pick-and-pack and logistics operation.

All key personnel have proven record of success in their area of expertise.

Review of resumes and contacting references.

Past performance checks on corporate management by Government personnel.

D. Must provide Quality Assurance/Quality Control (QA/QC) plan covering all performance standards. QA/QC plan shall also include a thorough security plan covering all performance standards.

QA/QC plan addresses 100% of all contract performance standards and is revised and updated as needed.

Government review of QA/QC Plan.

Random and periodic warehouse examinations by Government personnel.

Issuance of Cure/Show Cause Letter and other administrative remedies as appropriate and in accordance with FAR Clauses in Section I.

DESCRIPTION OF WORK/PERFORMANCE STANDARDS

INDICATOR: 2. Receipt of commodities

INCENTIVES/

DISINCENTIVES

For Meeting or Not Meeting the Performance Standard

A. Make available and schedule unload appointments with all inbound shippers of USDA commodities.

The contractor shall obtain approval from the CO, FSA/COR and/or FNS/COR prior to receipting 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)

95% of unload appointments are scheduled during normal business hours with mutually agreed to unload times, when there has been a minimum of 24 hours advance requests for appointments.

Government Complaint Log.

B. Verify all inbound loads to ensure USDA commodity was secured and maintained properly during shipping and upon arrival, verifying any over, short or damaged (O/S/D) product.

If more than 10% of the unit count (i.e., cases) of the load is damaged, identify immediately upon discovery and contact CO for instructions.

Photographs and/or supporting documentation must be furnished to CO, FSA/COR and FNS/COR within 24 hours on major (greater than 10% of the unit count) over, short and/or damaged commodities and substandard pallets.

Government Complaint Log.

Government Damage Reports.

Random and periodic warehouse examinations by Government

Immediate notification may lead to lesser liability of Contractor, if over, short and/or damaged commodity is discovered at a later date.

C-7

DESCRIPTION OF WORK/PERFORMANCE STANDARDS

INCENTIVES/

DISINCENTIVES

For Meeting or Not Meeting the Performance Standard

C. 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.) Any additional use of billable pallets and/or stretch wrapping on inbound shipment must be pre-authorized by the

CO.

100% of pallets utilized must meet contract requirements.

Government Customer Survey.

Government Complaint Log.

Random and periodic warehouse examinations by Government personnel.

Fair and reasonable costs incurred by the contractor for substandard pallets and subsequent damage for the account of the Government.

D. Assign one unique lot number specific to the case count/manufacturer date per commodity received within a truckload. All lot numbers shall be maintained with the USDA inbound purchase order line item number. Sub numbers may be used on the USDA inbound purchase order line item number to accommodate multiple manufacturing dates.

100% of all inbound shipments have a lot number assigned by the warehouse to ensure traceability to the inbound Purchase Order and Purchase Order Line Item number.

Lot numbers shall be assigned within the same business day as received.

Review of Contractor’s and Government’s Inventory Reports.

Random and periodic warehouse

C-8

INCENTIVES/

DISINCENTIVES

For Meeting or Not Meeting the Performance Standard

E. The Contractor shall maintain separate inventories for the FDPIR and CSFP programs

The identity and traceability—by USDA program—of the commodities must be maintained and documented throughout receipt of commodities; storage and handling of commodities;

and delivery of commodities to recipients.

100% of warehouse data entry meets all stated requirements in accordance Section J, Attachment E.

100% of commodities are maintained and documented with program identity and lot traceability intact.

Review of Contractor’s invoices and inventory reports.

Periodic and spot inventory audits by Government personnel.

Random use and monitoring of system by authorized Government

Charges in accordance with Compliance Deducts Schedule in Section J, Attachment L

Exemplary performance may result in option renewal at the discretion of the CO.

Poor performance will be reported into the Government-wide Past Performance database.

F. For frozen beef and chicken* when upon inbound delivery, the manufacturer pack date is over 30 days old, questionable and/or unidentifiable, Contractor shall notify the CO, FSA/COR and FNS/COR, and await direction prior to acceptance of shipments.

*If new frozen foods are added, the same actions may be required in accordance with the maximum manufacturer pack date specified by USDA for receipt of those commodities.

100% notification of any manufacturer pack date over 30 days old, questionable and/or unidentifiable.

Review of Contractor’s invoices and inventory reports.

Periodic and spot inventory audits by Government personnel.

Random use and monitoring of

Section J, Attachment L

Exemplary performance may result in option renewal at the discretion of the CO.

Poor performance will be reported into the Government-wide Past Performance database.

C-9

DESCRIPTION OF WORK/PERFORMANCE STANDARDS

INCENTIVES/

DISINCENTIVES

For Meeting or Not Meeting the Performance Standard

G. Record, report, and monitor product 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, record the manufacture and/or pack date and then USDA can estimate the BIUB date.

Note: Not all products require BIUB recording/reporting/ monitoring; see Section J Attachments C and D 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). This two month window allows for the sites to complete their distributions and for the recipients to use the products. The contractor shall notify USDA when any of these products have less than a 2 month BIUB. USDA will provide disposition of the

100% notification of any BIUB date and/or expiration date.

100% compliance with the minimum 2 month BIUB date when being shipped from the contractor’s warehouse(s).

100% notification when any of these required products have less than a 2 month BIUB.

Review of Contractor’s invoices and inventory reports.

Periodic and spot inventory audits by Government personnel.

Random use and monitoring of

Performance will be reported into the Government-wide Past Performance database.

C-10

DESCRIPTION OF WORK/PERFORMANCE STANDARDS

INCENTIVES/

DISINCENTIVES

For Meeting or Not Meeting the Performance Standard product. Notification should include product name, material code, batch, manufacturing or BIUB date(s) and quantity.

H. Enter the receipt information into

WBSCM.

100% of commodities received shall be entered into WBSCM within the same business day as received.

Review of Contractor’s Inventory Report and WBSCM.

Section J, Attachment L

Poor performance will be reported

C-11

DESCRIPTION OF WORK/PERFORMANCE STANDARDS

INDICATOR: 3. Storage and handling of commodities

INCENTIVES/

DISINCENTIVES

For Meeting or Not Meeting the Performance Standard

A. Contractors must receive and maintain a Processed Commodities Storage Agreement (PCSA) and an Executed Agreement regarding leased space throughout of the effective period of the contract.

Space utilized under the contract must be made available to USDA for the warehouse examiner to conduct a physical warehouse examination to verify all information submitted for the PCSA prior to final approval.

All space utilized for the storage of USDA commodities has an active PCSA; and a current executed lease agreement, if applicable.

Random and periodic warehouse

Issuance of Show Cause Letter, which may result in termination for default of contract in accordance with FAR Clauses in Section I.

Performance will affect the decision on contract option renewal at the discretion of the CO.

Poor performance will be reported into the Government-wide Past Performance database.

B. Maintain proper temperature and humidity requirements per Commodity Temperature & Relative Humidity Requirements in Section J, Attachment B.

100% of commodities are stored and maintained in a good, acceptable condition.

Random and periodic warehouse examinations by Government personnel will review the daily temperature and humidity logs in each storage area.

Contractor’s QA/QC Plan.

Claims will be assessed against the Contractor for the purchase value of the damaged commodity.

Charges in accordance with Compliance Deducts Schedule in Section J, Attachment L

Poor performance will be reported

C-12

DESCRIPTION OF WORK/PERFORMANCE STANDARDS

INCENTIVES/

DISINCENTIVES

For Meeting or Not Meeting the Performance Standard

PERFORMANCE

STANDARD

C. Handle and stack USDA commodities in accordance with each manufacturer’s guidelines.

Contractor shall provide floor plan/blueprint of warehouse space indicating USDA Storage Space (including square footage) to support their technical approach for this subfactor (see estimated space requirements in Section C).

Identify proposed truck receiving/loading capacity per day for USDA under this potential contract.

No commodity damage due to improper handling, storage, and/or stacking.

Random and periodic warehouse

Contractor’s QA/QC plan.

Government Damage Reports.

Claims will be assessed against the Contractor for the purchase value of the damaged commodity.

Charges in accordance with Compliance Deducts Schedule in Section J, Attachment L

Poor performance will be reported into the Government-wide Past Performance database.

D. Submit to the CO, FNS/COR and FSA/COR, Inventory Discrepancies, i.e., at Contractor(s) warehouse and at the recipient agency warehouse adjustment due to Over, Short and Damaged (O/S/D) product found after initial receipt.

The Contractor shall submit Monthly O/S/D report.

O/S/D information shall be submitted via e-mail to the CO, FNS/COR and FSA/COR within 24 hours of the identification of discrepancy.

Photographs and/or supporting documentation must also be furnished to CO, FSA/COR and

FNS/COR.

Random and periodic warehouse examinations by Government personnel.

Contractor’s QA/QC plan.

Government Damage Reports.

Claims will be assessed against the Contractor for the purchase value of the damaged commodity.

Charges in accordance with Compliance Deducts Schedule in Section J, Attachment L

Poor performance will be reported

C-13

DESCRIPTION OF WORK/PERFORMANCE STANDARDS

INCENTIVES/

DISINCENTIVES

For Meeting or Not Meeting the Performance Standard

PERFORMANCE

STANDARD

E. All inventory shall be maintained on a First-in/First-out (FIFO) basis, based on manufacture date.

FIFO inventory methods are adhered to and maintained 100% of the time.

Random and periodic warehouse examinations by Government personnel.

Contractor’s QA/QC plan.

Poor performance will be reported into the Government-wide Past Performance database.

Charges in accordance with Compliance Deducts Schedule in Section J, Attachment L

F. The contractor shall notify the CO, FNS/COR and FSA/COR when the approved PCSA storage square footage level meets or exceeds 85% for dry, cooler and/or freezer capacities.

Square footage levels over 85% level for dry, cooler and/or freezer capacities shall be submitted via e-mail to the CO, FNS/COR and FSA/COR within 24 hours.

Square Footage levels are monitored and maintained 100% of the time.

Random and periodic warehouse

Poor performance will be reported

C-14

INDICATOR: 4. Receive recipient orders

INCENTIVES/

DISINCENTIVES

For Meeting or Not Meeting the Performance Standard

A. The Contractor shall access WBSCM to receive the recipient agency orders. Web address is:

https://portal/wbscm.usda.gov

See Section J, Attachment N The recipient agencies may not make modification or cancel the WBSCM requisition after the order cut-off date (five business days prior to the scheduled/negotiated delivery date for all deliveries with the exception of Alaska and the Virgin Islands which is thirty (30) days.)

100% of the orders are received and processed for distribution.

Government Customer Surveys.

default of contract in accordance with FAR Clauses in Section I.

Performance will affect the decision on contract option renewal at the discretion of the CO.

Poor performance will be reported into the Government-wide Past Performance database.

B. Maintain an exigency plan to ensure receipt of recipient orders from WBSCM due to power outages and system failures at the Contractor’s facility(s).

100% of orders are received and processed for distribution.

Government Customer Surveys.

default of contract in accordance with FAR Clauses in Section I.

Charges in accordance with Compliance Deducts Schedule in Section J, Attachment L

Exemplary performance may result in option renewal at the discretion of the CO.

C-15 https://portal/wbscm.usda.gov

DESCRIPTION OF WORK/PERFORMANCE STANDARDS

INDICATOR: 4. Receive recipient orders

INCENTIVES/

DISINCENTIVES

Performance Standard

Performance database.

C. The Contractor shall accommodate the addition or removal of commodities or pack sizes and new recipient agency sites.

Contractor must accommodate the addition or removal of commodities or pack sizes and new recipient agency sites within 5 business days of modification by CO.

Review of Contractor’s and Government’s monthly inventory reports.

Charges in accordance with

Section J, Attachment L

Exemplary performance may result in option renewal at the discretion of

C-16

DESCRIPTION OF WORK/PERFORMANCE STANDARDS

INDICATOR: 5. Delivery of commodities to recipients

INCENTIVES/

DISINCENTIVES

For Meeting or Not Meeting the Performance Standard

A. The Contractor shall negotiate 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. When seeking to provide acceptably frequent deliveries to small recipient agencies in reasonable proximity of each other, the Contractor shall arrange for multi-stop truckload shipments rather than Less-than-Truckload shipments. Less-than-Truckload (LTL) refers to Less-than- Truckload quantities and/or gross weight versus Less-than- Truckload services provided by a LTL carrier.

The Contractor shall negotiate simultaneous, same day delivery, if the recipient agency typically orders more than a truckload per scheduled delivery date (i.e., 8:00 a.m., 10:00 a.m., and 1:00 p.m. delivery appointments).

After negotiations are complete, Within 30 days of the Postaward Conference (or within 30 days of contract award if no Postaward Conference is held) , and within 30 days of the Government’s exercise of an option, Contractor shall submit report identifying the regular delivery dates and times for each recipient agency. Report must show 100% of recipient agencies have a negotiated delivery date and time.

Contractors shall enter the delivery

Verification of Contractor’s schedule with recipient agencies.

Government Complaint Log.

Contractor’s Report on Established Delivery Dates.

Review of Contractor’s transportation invoices and supporting documentation.

Review of the WBSCM system.

Compliance Deducts Schedule in Section J, Attachment L

Poor performance will be reported into the Government-wide Past

C-17

DESCRIPTION OF WORK/PERFORMANCE STANDARDS

INCENTIVES/

DISINCENTIVES

For Meeting or Not Meeting the Performance Standard the Contractor shall enter the delivery schedule into WBSCM within 60 days of post award conference.

schedule in WBSCM system within 60 days 100% of the time.

B. Delivery shall be made in accordance with negotiated delivery schedule in the most cost efficient manner in terms of consolidation and transportation mode. For Intermodal Door to Door container shipments to off-shore locations, only U.S. flag vessels shall be utilized.

Contractor meets delivery schedule 98% of the time.

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

Government Customer Survey.

Monitoring of Government Reports.

Charges in accordance with Compliance Deducts Schedule in Section J, Attachment L

Exemplary performance may result in option renewal at the discretion of the CO.

Timely delivery in accordance with the delivery schedule over a twelve period may result in public recognition.

Poor performance will be reported into the Government-wide Past Performance database.

C. In the event the Contractor cannot meet the regularly scheduled delivery date and time, the Contractor shall immediately contact the recipient and negotiate a (mutually agreed upon) revised delivery date and time.

100% compliance is required for customer satisfaction.

Note: Recipient agency accommodation of late deliveries does not constitute an excusable delay.

Charges in accordance with Compliance Deducts Schedule in Section J, Attachment L

Poor performance will be reported into the Government-wide Past

C-18

DESCRIPTION OF WORK/PERFORMANCE STANDARDS

INCENTIVES/

DISINCENTIVES

For Meeting or Not Meeting the Performance Standard

Neither the recipient agency nor the Contractor shall make changes to the Delivery Schedule after the order cutoff date (five

(5) business days prior to delivery date for all deliveries with the exception of Alaska and Virgin Islands) without CO approval.

D. Maintain an exigency plan for delivery based on unexpected closures at recipient’s location.

All non-regularly scheduled deliveries shall be approved in advance by recipient. The CO, FSA/COR and FNS/COR shall be notified of the delivery schedule change.

Non-regularly scheduled deliveries are negotiated, with mutually agreed upon delivery dates 95% of the time.

Cost to the Government and delay of deliveries to recipients is minimized.

Fair and reasonable costs incurred by the Contractor for extenuating circumstances will be covered.

E. The Contractor shall provide to the recipient, knowledge of any known commodity shortages from recipient’s order at least 24 hours prior to regularly scheduled delivery.

100% compliance is required for customer satisfaction.

C-19

DESCRIPTION OF WORK/PERFORMANCE STANDARDS

INCENTIVES/

DISINCENTIVES

For Meeting or Not Meeting the Performance Standard

PERFORMANCE

STANDARD

F. 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)

100% compliance is required for customer satisfaction.

At time of delivery, no commodity damage is reported by recipient agencies due to improper preparation and movement.

Government Damage Reports.

Claims will be assessed against the contractor for the purchase value of the damaged commodity.

Claims will be assessed against the contractor for the previously paid out handling charge on the damaged commodity.

Fair and reasonable costs incurred by recipient agencies for delays due to improper loading may be charged to the Contractor.

Poor performance will be reported into the Government-wide Past Performance database.

Charges in accordance with Compliance Deducts Schedule in Section J, Attachment L

G. The Contractor must ensure that the quality of each type of commodity(s) (dry, cooler, freezer) is maintained during shipment through delivery to recipient. All items will be shipped dry with the exception of items identified in Section J, Attachment B.

100% of commodities are delivered in good, acceptable condition.

Government Damage Reports.

Claims will be assessed against the Contractor for the purchase value of the damaged commodity.

Claims will be assessed against the contractor for the previously paid out handling charge on the damaged commodity.

C-20

DESCRIPTION OF WORK/PERFORMANCE STANDARDS

INCENTIVES/

DISINCENTIVES

For Meeting or Not Meeting the Performance Standard

Based on the recipient need, if necessary, the Commodity(s) shall be replaced within five (5) business days. Transportation costs for delivery of replacement commodity(s) shall be borne by the Contractor.

Charges in accordance with Compliance Deducts Schedule in Section J, Attachment L

H. To the extent practicable, the Contractor shall not split temperature controlled products over more than one conveyance per destination, per delivery date.

To the extent practicable, all temperature controlled products shipped in one conveyance 100% of the time.

Transportation Invoice and Supporting Documentation

Charges in accordance with Compliance Deducts Schedule in Section J, Attachment L

I. The Contractor is 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 bill of lading, which must be signed or acknowledged by the carrier or its agent. Seals shall be sequentially numbered, barrier-type and meet the American Society for Testing and Materials (ASTM) Standards. Seals shall

100% of commodities are delivered in conveyances with required type of seals intact. Corresponding signed Bill of Lading is provided with seal number recorded, including for each stop-off.

Government Customer Survey.

Government Complaint Log.

Transportation Invoice and Supporting Documentation

The Government reserves the right to reject product delivered without proper seals in place on a case-by-case basis. See Section H requirements on obliteration of USDA markings.

Claims may be assessed against the Contractor for the purchase value of the rejected commodity.

Charges in accordance with

C-21

DESCRIPTION OF WORK/PERFORMANCE STANDARDS

INCENTIVES/

DISINCENTIVES

For Meeting or Not Meeting the Performance Standard be 1/8-inch diameter cable, high security bolt, or equivalent.

Information on ASTM Standards may be found at www.astm.org.

Conveyance must be re-sealed upon unloading at each stop-off, with seal numbers referenced on each Bill of Lading.

Section J, Attachment L, if applicable.

J. The Recipient will notify the Contractor of requested delivery date on commodities short-shipped. The warehouse shall comply with the recipient’s requested delivery date on short-shipped commodities.

Contractor will negotiate a mutually agreed upon resolution to the recipient’s satisfaction for delivery of short-shipped commodity(ies) within 24 hours of notice by the recipient agency.

Government Customer Survey.

Government Complaint Log.

Delivery costs shall be borne by the Contractor.

Charges in accordance with Compliance Deducts Schedule in Section J, Attachment L

K. The Contractor is responsible for tailgating the load at each destination identified during negotiation of the delivery schedule.

100% of applicable deliveries are tailgated for easy unload access by recipient agencies.

Government Customer Survey.

Government Complaint Log.

Fair and reasonable costs incurred by recipient agencies to unload, if tailgating does not occur, will be charged to the Contractor.

L. On multi-stop deliveries, the Contractor is responsible for rebracing shipment upon unloading at each stop-off.

100% of multi-stop deliveries are rebraced by Contractor.

No commodity damage is reported by recipient agencies due to improper bracing and movement.

Government Customer Survey.

Government Complaint Log.

Government Damage Reports.

Claims will be assessed against the Contractor for the purchase value of the damaged commodity.

Charges in accordance with Compliance Deducts Schedule in Section J, Attachment L

C-22 http://www.astm.org/

DESCRIPTION OF WORK/PERFORMANCE STANDARDS

INCENTIVES/

DISINCENTIVES

Performance Standard

Performance database.

M. 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 CO, FSA/COR and/or FNS/COR with written documentation to follow.

Release and/or shipment of disaster relief commodities shall be achieved within 24 hours notice, or as directed by CO and/or COR, 100% of the time.

Review of Contractor’s transportation invoices and supporting documentation.

Constant communication and feedback with disaster relief agencies and Government.

Prompt, efficient response will receive public recognition.

N. Deliveries must be made in a courteous, respectful manner to all recipients.

100% of complaints regarding lack of courtesy/respect are researched, analyzed, and resolved by the Contractor within two (2) business days.

Government Customer Survey.

Government Complaint Log.

No complaints in a 12-month period will result in recognition.

Exemplary performance may result in option renewal at the discretion of the CO.

O. Commodity(s) placed on hold or recalled shall be given top priority. The Contractor will receive notice from the CO, FSA/COR and/or FNS/COR with documentation to follow, if there is a hold or recall issued.

The Contractor will be required to work closely with USDA in the event of a hold or recall. The

100% compliant to prompt response to…