Attachment 1 -SOW HAZMAT.docx

NAVAL SUPPLY SYSTEMS COMMAND (NAVSUP)

FLEET LOGISTICS CENTER SAN DIEGO (FLCSD)

STATEMENT OF WORK (SOW)

FOR

HAZARDOUS MATERIALS (HAZMAT) OPERATIONS

1. General Information

1.1 Introduction

This Statement of Work (SOW) describes the supply performance requirements for a commercial Third Party Logistics (3PL) indefinite delivery supply contract in support of Hazardous Material (HAZMAT) Operations at designated Hazardous Materials Minimization Centers (HMCs) listed in Table 1. The contractor shall provide supply support functions as defined in the SOW under guidelines of the Consolidated Hazardous Materials and Inventory Management Program (CHRIMP) NAVSUP P-722, per OPNAV 5090.1 Series and NAVSUP FLCSD 5090.4A. CHRIMP serves as a fundamental element of the Navy’s lifecycle control and management of HAZMAT and HAZWASTE. CHRIMP promotes compliance with a broad range of federal, state, and local environmental rules and regulations by mandating procedures to control, track, and reduce the variety and quantity of HAZMAT in use, both ashore and afloat. CHRIMP establishes Hazardous Minimization Centers (HMCs), which serve as HAZMAT inventory control centers for customer defined, Environmental and Safety Approved Authorized User Lists (AULs), HAZMAT products used by Navy installations. The contractor shall provide HAZMAT inventory to include receipt of customer requests and process order fulfilment (Point of Sale) for HAZMAT products.

The Contractor must provide for all services as required by the Statement of Work at no cost to the Government. As consideration, the Contractor shall be entitled to the revenue stream, if any, created through sale of the HAZMAT products, provided there is no cost to the Government. Under this arrangement, the Contractor shall be liable for all costs related to the performance of the tasks under this contract and the government’s financial liability is “zero.” This contract is not subject to the requirements of the Federal Acquisition Regulations (FAR) and the FAR will simply be used as guidance in interpreting the contract. The clauses incorporated into the contract are for the mutual benefit and protection of both parties.

1.2 Objective

Specific contractor responsibilities associated with this requirement include managing the supply chain for HAZMAT inventory at each installation as specified within the SOW. The contractor shall provide the required trained personnel, supervision, HAZMAT materials, Point of Sale and other items as necessary to track, stock, and provide items on request. All HAZMAT requirements are expected to be fulfilled within Required Delivery Dates (RDD) / Issue priorities for ashore installation work centers, to include; tenant activities, contractor operations, transient and afloat units. The contractor shall focus on detail level management and flexibility, accommodating changes in laws, regulations, technology, and site-specific requirements. The contractor may be performing these duties onsite where government employees will be co-located. Government employee duties do not conflict with the contractor’s duties under this contract.

The stated objectives and expected outcomes are as follows:

1. A reduction in HAZMAT costs

2. The reduction of time required by FLC San Diego customers to accomplish mission tasks by streamlining processes and improving HAZMAT availability

1.3 Period of Performance

Performance period for this contract will be a 12-months.

2. DEFINITIONS AND ACRONYMS

2.1 Acronyms

2.2 Definitions.

2.2.1 Authorized Use List (AUL): A list of products approved by installation safety, environmental, and industrial Hygiene for use by requesting work center.

2.2.2 Required Delivery Date (RDD): The date of which the requesting activity indicates on material request form when HAZMAT is required at the work center.

2.2.3 Estimated Delivery Date (EDD): The date in which the material is expected to be delivered to HMC or customer work center.

2.2.4 Not In Stock (NIS): Demand based inventory not on the shelf at time of customer request for material.

2.2.5 Safety Data Sheet (SDS): Manufacture supplied information sheet specific to associated hazards, safe usage, emergency contact information, storage, disposition and manufacturer’s data for products. Formally called a Material Safety Data Sheet (MSDS).

2.2.6 National Stock Number (NSN): A 13-digit numeric code, identifying standardized material items of supply' as they have been recognized by Department of Defense. NSNs are comprised of the 4 digit Federal Supply Class (FSC) and a 9 digit National Identification Item Number (NIIN).

2.2.7 HAZMINCEN (HMC): A NAVSUP operated Hazardous Materials Minimization Center for centralized management and procurement for all HAZMAT used by Navy Region Southwest activities and work centers.

2.2.8 Catalog Item: All supplies available for sale to Department of Navy in accordance to meet requirements. Products shall include, but not limited to items on the never out list and in the attached historical data. The customer, before placing order, shall comply with the requirements of FAR 8.002 and DFARS 208.7000 with acquisition of HAZMAT material from Government supply sources unless a known exception applies. The contractor’s proposed catalog in response to solicitation N00244-15-R-0027 is incorporated herein. The proposed catalog is the complete scope of what can be provided under the terms of this contract.

2.2.9 Contracting Officer (KO): That individual with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the Contracting Officer acting within the limits of their authority as delegated by the Contracting Officer.

2.2.10 Contracting Officer’s Representative (COR): A Government employee appointed by the Contracting Officer, either orally or in writing, to serve as a technical liaison between the Government and the Contractor for a specific contract. The COR monitors the Contractor’s performance and provides technical advice to the Contracting Officer and Contractor within the scope of work of the contract.

2.2.11 Contractor: (May be used interchangeably with vendor.) That entity or its representative that is responsible for the delivery of the services or supplies specified in this contract, as designated by contract award. The term Contractor as used herein refers to both the prime Contractor and any subcontractors. The prime Contractor shall insure that subcontractors comply with the provision of this contract, which shall be binding and reproduced in all subcontractors or vendor agreements.

2.2.12 Contractor Representative: That individual appointed by the Contractor, either orally or in writing, who has been assigned responsibility for executing the requirements of this contract.

2.2.13 Equipment: Tangible asset that is functionally complete for its intended purpose, durable, and non-expendable.

2.2.14 Facility: A building or structure designed and created to serve a particular function.

2.2.15 Government Furnished Property (GFP): Property in the possession of, or directly acquired by, the Government and subsequently furnished to the contractor for performance of a contract. Government furnished property includes, but is not limited to, spares and property furnished for repairs, maintenance, overhaul, or modification. Government furnished property also includes contractor acquired property if the contractor acquired property is a deliverable under a cost contract when accepted by the Government for continued use under the contract.

2.2.16 Contractor Owned Material: Contractor equipment and supplies not made available to the Department of Navy for resale; but, is intended to refer to equipment/supplies used by the contractor in performance of contract requirements.

2.2.17 Performance Assessment: A method used by the Government to provide some measure of control over the quality of purchased goods and services received.

2.2.18 Quality Assurance (QA): The planned and systematic activities implemented in a quality system so that quality requirements for a product or service will be fulfilled.

2.2.19 Qualified Employee: A person who is has the statutory training and certification requirements for personnel who handle; package and transport HAZMAT or HAZWASTE.

2.2.20 Quality Control (QC): The observation techniques and activities used to fulfill requirements for quality.

2.2.21 HMC Items: Supplies designated to be carried within the HMC. These include supplies necessary to satisfy emergent, urgent and routine needs.

2.2.22 Special Orders: These are for Orders that exceed the limitations of ordering clause and/ or items identified in the contractors proposed catalog labeled as special order ( Based on the manufacturing process are impossible to meet the delivery requirements of “HMC items” or routine “Catalog” buys). These items must be identified in the contractors catalog at time of proposal. Items not identified as Special Order shall meet the delivery requirements of the basic contract. Delivery terms of these orders shall be established at the delivery order level.

2.2.23 Supplies: Supplies or inventories refer to items available for sale to Department of Navy as required under this contract.

3. SERVICES INCIDENTAL TO SUPPLIES

3.1 General Scope of Work

The requirement includes incidental services outlined in this SOW. Under the terms of this contract, the Contractor provides all services incidental to supplies and receives, as sole remuneration, profits from the sale of supplies, in conformance with contract terms and conditions. Outline of Services: Except where otherwise stated, the Contractor shall furnish all labor, supervision, management, tools, inventories, equipment, facilities, transportation, and other items necessary to provide the services outlined below and described in this Statement of Work (SOW) at various locations. The Contractor shall provide inventory management and/or provide manpower to issue materials or supplies furnished in the HMCs located on one or more military location.

HAZMAT supplies will be provided at various Naval Installations within the FLC San Diego (FLCSD) area of responsibility, to include Consolidated HAZMAT Reutilization and Inventory Management Program (CHRIMP), at HMCs located in the Southwest Region. The Southwest Region is comprised of geographically dispersed bases and supports a variety of Navy, Non-Navy and Marine Corps activities. In general terms Southwest Region encompasses all of Southwest California, Nevada and Arizona.

Note: Nevada and Arizona receive all HAZMAT support from the Naval Base San Diego Regional HMC.

3.2 General Administrative Requirements

3.2.1 Hours of Operations

TABLE 1: HMCs and Hours of Operations

Naval Base San Diego (Regional HMC)

Monday - Friday

0700-1600

Naval Air Station North Island (HMC)

Monday – Friday

0700-1600

Construction Battalion Center Port Hueneme (HMC)

3.2.2 Observed Federal Holidays

The Government observes the following holidays: New Year’s Day, Martin Luther King Jr.’s Birthday, President’s Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans’ Day, Thanksgiving Day, and Christmas Day. If any of the above holidays occur on a Saturday or a Sunday, then such holiday shall be observed by the Contractor in accordance with the practice as observed by the assigned Government employees at the using activity.

3.2.3 Crisis/Unforeseen Circumstance

Performance of Services during Crisis Declared by the National Command Authority may require HAZMAT support operations to continue as directed by the COR/ACOR/KO. Wherever possible, the Contractor will be provided as much notice as possible prior to a requirement for additional operating hours to support this requirement.

When an unforeseen installation closure occurs on a regularly scheduled day of work, the Government will have the option to reschedule the work to be performed on the following workday or reschedule the work on any day acceptable to the Government. In the event of an emergency, the Contractor shall be onsite within two hours of callback by the COR/ACOR/KO. Installation closures or curtailment of activities may include but not limited to natural disasters, inclement weather and heightened security conditions. Base or installation closure notification is provided by radio, television or base telephone information systems. HAZMAT service and HMC operations are considered essential at ALL SW Region sites identified under this contract.

3.2.4 Required Meetings

The KO, COR, and other Government personnel, as appropriate, will meet periodically with the Contractor’s Program Manager (PM), on site manager, or other “representative” to review the Contractor’s performance. These meetings shall be held as needed during the first month of the contract and monthly thereafter. At the CORs request, additional visits may be required to answer questions, solve billing and inventory problems and review reports. Conference calls will be organized and initiated by the COR and will serve to encourage communication between all parties and serve as a forum to resolve any common issues. The COR will bring critical issues to the Contractor’s attention and the contracting officer immediately. These meetings shall be at no additional cost to the Government and may be held via phone, face-to-face, or Video Teleconferencing (MS Teams).

Concerns arising under the contract, not resolved in discussion with the COR, may be re-directed to the Contracting Officer, NAVSUP-FLC San Diego, Code 250

3.2.5 Post Award Kickoff (PAK) Meeting

Within five business days of contract award, the Contractor shall meet with the Contracting Officer, the COR and other Government personnel to outline the scope of the contract and proposed implementation of inventory management, mode of HMC operations, reporting, safety program quality control procedures and the ordering process. The Contractors key personnel shall be in attendance at this meeting. The PAK meeting shall include discussion of the HAZMAT supplies required by the contract and government/contractor roles in doing business with the government. This PAK will recognize common goals through communication and teamwork. The meeting purpose shall be to outline the working environment/review scope of the contract to assure that the needs of FLCSD and incidental services to be provided by the Contractor.

3.2.6 Training and Certifications

The Contractor shall comply with the statutory training and certification requirements for personnel who handle; package and transport HAZMAT or HAZWASTE. Table 2 summarizes training and certification requirements of DoD and the Navy, some of which exceeds statutory requirements. All Contractor employees performing work related to this contract shall be trained at Contractor expense. Contractor shall provide proof of training to the COR at contract award. The Contractor shall maintain records of training qualifications, certifications and licenses on each employee for the duration of their employment. Records shall be kept on file on-site, and made available to the COR/ACOR or any Regulatory Agency Representative upon request.

Table 2: DOD, Navy, and Statutory Required Training

STATUTORY REQUIREMENTS

Hazardous Material Operations

(HAZCOM) 40CFR 1900.1200

NAVY UNIQUE Training Provided by the Government

Hazardous Material Operations

Other Training Provided by the Government

(Provided after contract award)

3.4 Environmental and Occupational Safety

The Contractor shall comply with all Federal, state and local laws, regulations and Navy requirements (including any permit requirement) for HAZMAT.

3.5 Spill Prevention and Notification

The Contractor shall comply with all local Spill Prevention and Cleanup Contingency (SPCC) Plans and the Oil and Hazardous Substance Pollution Contingency Plan. The Contractor shall take precautions to avoid the release of hazardous substances into the environment.

The Contractor shall notify the COR/ACOR or HMC Manager immediately upon discovery of any spills or accidental discharge of vendor owned HAZMAT. The Contractor shall hold the United States, Department of Defense, Department of the Navy, its agents and employees harmless for any associated fines or fees. Contractor shall likewise be responsible, and hold the United States, Department of Defense, Department of the Navy, its agents and employees harmless for any personal or property damage resulting from a HAZMAT spill, to include but not limited to, the cost of containment, environmental cleanup, disposal, and any other associated costs (non-regulatory) caused by contractor personnel.

The Government will not hold the Contractor responsible for any personal or property damage resulting from a HAZMAT spill within the Navy HMCs specified herein, to include but not limited to, the cost of containment, environmental cleanup, disposal, and any other associated costs (non-regulatory) caused by Government personnel.

3.6 Occupational Safety Program

The Contractor’s Safety Program shall comply with all applicable safety policies and procedures. The Contractor’s failure to comply with safety requirements constitutes sufficient grounds for contract termination.

The Contractor shall provide Contractor personnel with necessary safety equipment and personal protection equipment/clothing. The Contractor shall institute a regular safety-training program for Contractor employees no later than the first day of full contract performance. The Contractor shall keep records and report all accidents resulting in death, injury, occupational disease, or adverse environmental impact in compliance with OSHA 29 CFR 1904.4 requirements.

The Contractor shall report all accidents within one hour to the COR/ACOR or government HMC manager with basic information of circumstances associated with the incident. Specifics of the accident shall be reported as soon as possible after the accident and not later than the next working day. When an accident involves personal injury or damage to Government property or equipment, the Contractor shall submit a mishap report IAW OPNAVINST 5100.23(series).

Those Contractor personnel who are exposed to hazardous materials in the workplace are required to receive HAZCOM training according to CFR 1910.1200. This training includes instruction on labeling procedures, SDS interpretation, site-specific hazardous material procedures, and non-routine task procedures. The Contractor shall not allow any employee to work in the HMC or handle hazardous material, unless that employee is properly protected and fully trained.

3.7 QUALITY ASSURANCE

The contractor shall develop and maintain an effective quality control plan. The plan should detail the methodology to be used by the contactor to monitor and ensure that all requirements are met. A Quality Control Plan shall be submitted to the government within 30 days after contract award. After acceptance of the quality control plan, the contractor shall receive the contracting officer’s acceptance in writing of any proposed change to his QC system.

The government shall evaluate the contractor’s performance under this contract in accordance with a Quality Assurance Surveillance Plan (QASP). This plan is primarily focused on what the government must do to ensure that the contractor has performed in accordance with the performance standards. It defines how the performance standards will be applied, the frequency of surveillance, and the minimum acceptable quality level(s).

3.8 COVERED ITEMS OF SUPPLY

Federal Standard (FEDSTD) 313 specifies that commercially manufactured HAZMAT may be in the following Federal Supply Classes (FSC’s): 1560, 1615, 1650, 2090, 2640, 2940, 2990, 3426, 3439, 4210, 4220, 4230, 4240, 4940, 5350, 5610, 5970, 6135, 6140, 6260, 6505, 6515, 6520, 6525, 6550, 6630, 6665, 6750, 6810, 6820, 6830, 6840, 6850, 7510, 7910, 7930, 8010, 8030, 8040, 8110, 8120, 8135, 8520, 9110, 9130, 9140, 9150, 9160, 9620. This SOW requires the HAZMAT provider to be capable of providing these products upon demand. This list is not all inclusive and may be subject to change in the FEDSTD.

3.9 HAZMAT QUALITY STANDARDS

The Contractor shall furnish commercial pack items on the Qualified Products List and that meet applicable Military Specification (MILSPEC), Military Performance Standard (MILSTD), Federal Specification (FEDSPEC), or Commercial Item Description (CID). The Contractor shall be held solely responsible for ensuring that all HAZMAT meets quality and packaging standards in accordance with MILSTD 129.

The Contractor shall employ the most current and highest quality standards as well as competition between their established network of suppliers to procure each item at the best value to the government, unless otherwise provided by this contract or unless otherwise directed by the contracting officer.

3.10 RETURNS

The Contractor shall accept returns or either refund the cost or replace the item, at the discretion of the Government, under the following conditions:

3.10.1 Product was shipped in error

Example: The Government requested the Contractor to order item “A” however item “B” is delivered to HMC. The Government will not accept the material and the Contractor must coordinate with appropriate vendor to obtain item “A.”

3.10.2 Product was damaged during shipment

Example: Material ordered by the Contractor is delivered to HMC damaged; the Government will not accept the material. The Contractor must take appropriate action to replace damaged material.

3.10.3 Product was recalled or determined to be obsolete

Example: HAZMAT material, while in storage at HMCs becomes recalled by manufacture or determined to be obsolete by Navy Program Managers. The Contractor is financially responsible for material disposition.

3.10.4 Other actions consistent with Contractor’s standard commercial practice

3.11 ADDITIONS/DELETIONS TO THE INVENTORY

HAZMAT product range (located in the HMCs) and depth may be adjusted at any time during the performance of this contract based solely on customer requirements or technological changes. The Contractor shall be advised of these requirements in writing, a change to the customer AUL, or through the COR. The Contractor shall only add new items once they are placed on the customer AUL. Product substitutions shall be approved by the Government prior to procurement.

3.11.1 Green Products Procurement.

The Contractor shall research and recommend suitable substitutions for Green products. The Contractor must order Green products utilizing Federal Logistics Information System (FLIS) and Green Product Purchases (GPP) in accordance with DOD and SECNAV Directives and EO 13148.

Standard: Green products are a priority and should be purchased to the maximum extent possible utilizing DLA’s Web Federal Logistics Information System (WebFLIS) and Department of Defense (DoD) Sustainable Product Purchasing.

3.12 TITLE OF MATERIAL

The Contractor retains title for contractor owned material until issued to the customer. The Government will not reimburse the contractor for Contractor owned HAZMAT Excess Inventory.

The Contractor shall provide the government the initial demand based inventory and stocking levels required to support continuous customer requirement. The Government will provide historical sales data to the assist the contractor in establishing stocking objectives. Upon contract award the Government will allow the Contractor 90 days to obtain full contract performance. The Contractor shall purchase all inventory to supply the Hazardous Material Minimization (HAZMIN) Center and to include delivery of inventory under consignment to be stored at the HAZMIN centers.

3.14 EXTENDED HOURS OF SERVICE

In the event of an emergency, the Contractor shall be onsite within two hours of callback by the COR/ACOR/KO. The contractor shall work extended hours on weekends, national holidays or before/after normal working hours when operational requirements dictate as determined by the COR/ACOR/KO. Functions to be performed during extended hours include: materials acquisition, processing GCPC transactions and joint inspection of incoming HAZMAT deliveries.

3.15 PHYSICAL INVENTORY AND ACCOUNTABILITY

Items held in HAZMIN Center, shall remain with Government under consignment. The Government and the Contractor shall be jointly responsible for the accuracy of contractor owned inventory with respect to quantity, location, and ownership for all HAZMAT managed in GDS. The performance requirement for inventory accountability is 95 percent accuracy in IAW NAVSUP Instruction 723.

3.16 ORDERING NOT IN STOCK (NIS) MATERIALS

The Government may submit order requests to the Contractor for items not in inventory. The Contractor shall meet delivery requirements specified in table 3. When urgent requirements arise, the Contractor shall expedite the receipt of the HAZMAT to include overnight/express delivery as warranted to satisfy customer RDD. Transportation cost for expedited shipments must be approved by the customer in advance. The customer will be responsible for expedited shipping costs.

3.17 COMPRESSED GASES SUPPORT

The Contractor may be required to provide Just in Time (JIT) support for compressed gas cylinder requirements and meet specified issue priorities listed in Table 3.

3.18 ISSUE PRIORITIES

TABLE 3: Issue Priority Timelines

3.19 PRIORITY GUIDELINES

3.19.1 Emergency

Emergency requests require immediate resolution within 24 hours of emergency. The Contractor must be capable of filling requests within 1-2 hours.

3.19.2 Urgent

Urgent requests require resolution within 5 business days. The Contractor must be capable of filling urgent requests within 2 business days.

3.19.3 Routine

Routine requests require resolution within 20 business days. The Contractor must be capable of filling requests within 10 business days.

3.19.4 Never-Out of Stock

The Contractor shall ensure items contained on Never-out list remain in stock at all times. The Contractor must notify the COR/ACOR immediately in the event a Never-out item cannot be obtained. Proof of order must be also be provided to the COR/ACOR upon request.

The government can modify Never-out list items as needed.

3.20 STOCKING CRITERIA

3.20.1 Long Lead Time Stocking

The Contractor shall notify the Government of any Long Lead Time items which may take more than 10 days to receive from order placement.

3.20.2 Special Stocking Requirement

Any customer may request the stocking of particular demand based AUL item for their exclusive use however; department head approval is required and the requesting customer will be responsible to reimburse the Contractor for any item determined to be no longer required or shelf life expired. Special stocked items must be approved by the customer department head.

3.20.3 Sole Source Procurement

On occasion, customer directed sole source procurement may be required and shall include justification in accordance with Federal Acquisition Regulations (FAR). Situations qualifying for sole source procurement may include, but are not limited to, incompatibility, cost of production, local environmental limitations, safety of flight, and manufacturers' warranties. Contractor must notify the KO to ensure Brand Name acquisition complies with the FAR.

3.21 RECEIVING

3.21.1 Receiving/Storage of Contractor Ordered Materials

The Government and Contractor shall conduct a joint inspection of all incoming materials ordered by the Contactor, to ensure materials are properly labeled, correct quantity, proper Safety Data Sheets (SDS) and National Emissions Standards for Hazardous Air Pollutants Certificates (NESHAP) are received with material. Upon completion of joint inspection by the Government and Contractor, the Government will accept and process Contractor ordered material into GDS to include physical storage of material on the shelf. The Government will provide the Contractor a monthly receipt inventory report or as requested.

Standard: The Contractor shall ensure 100% of all materials ordered have required documentation IAW OSHA 1910.1200 and EPA standards.

Designated storage for consignment inventory at HMCs listed in table 3, will be provided by site. Any additional commercial storage outside of designated Government facilities will be at the contractor’s expense

3.21.2 Misdirected Shipments

Upon receipt of any misdirected shipments, both Contractor and Government shall research to identify ownership. The Government will take appropriate action for any misdirected shipments in which the Contractor did not order.

3.21.3 Material Shelf-life

The Contractor shall ensure all materials ordered are within DOD 4140.27M requirements. Materials with less than 6 months Shelf-life will not be accepted by the Government without prior approval from COR/ACOR. The Government and Contractor will conduct joint Shelf-life extension for Contractor owned materials. The Government will update Shelf-life information in GDS. Disposition of expired or damaged Contractor owned materials will be the responsibility of the Contractor. The Contractor will seek 100% approval in writing from COR/ACOR prior to ordering any items with less than 6 months Shelf-life.

3.21.4 Transfer of Contractor Owned HAZMAT to Waste Management Office

Prior to the Governments removal of any damaged, defective, expired and Non-extendable contractor owned material from storage to HW staging area, the Government and Contractor will conduct a joint inspection.

The Contractor shall be responsible for documenting and preparing required hazardous waste turn-in documentation for Contractor owned materials. It is the responsibility of the Contractor to fund disposal costs of Contractor owned material. The Contractor may establish an account with the Government Hazardous Waste Service Provider.

The Contractor shall maintain a file on site of all HW transfer documentation. The Contractor shall provide to the HMC a manifest of all waste transported off-base by a licensed Hazardous Waste Service Provider.

3.22 INSURANCE

Contractor Owner HAZMAT Inventory - Liability: The Contractor understands, agrees, and shall hold the Government (to include its officers, employees, and/or agents) harmless, for any acts or omissions that result in losses or damage to Contractor-Owned--HAZMAT Inventory (HAZMAT). Contractor understands and agrees that the Government will not be responsible or liable to the Contractor for actual damage, lost profits, anticipatory profits, administrative costs, or any indirect, special, or consequential damages or any kind or nature arising out of Government handling, storage, transportation or movement, staging, and inspecting of HAZMAT. This clause shall be effective whether the property is insured or not insured, and/or whether the Government's actions or inactions are considered negligent or willful. The Government does not insure Contractor inventory.

Within 15 calendar days after award of this contract, the Contractor shall furnish the COR a Certificate of Insurance as evidence of the existence of the following insurance coverage in amounts not less than the amounts specified below in accordance with the FAR Clause 52.228-05, INSURANCE – WORK ON A GOVERNMENT INSTALLATION. This insurance must be maintained during the entire performance period.

3.22.1 Certificate of Insurance

The Certificate of Insurance shall provide for at least 30 calendar day’s written notice to the KO or COR by the insurance company prior to cancellation or Inventory change in policy coverage. Other requirements and information are contained in the aforementioned insurance clause.

3.22.2 Minimum Insurance Amounts

The Contractor shall procure and maintain, during the entire period of performance under this contract, the following minimum insurance coverage:

a. Comprehensive General Liability

$500,000 per occurrence.

b. Automobile Liability

$200,000 per person, $500,000 per occurrence, $20,000 per occurrence for property damage.

c. Workmen's Compensation

As required by Federal and State worker's compensation and occupational disease statutes.

d. Employer's Liability coverage

$100,000, except in states where worker's compensation may not be written by private carriers.

4.0 SECURITY AND VETTING

4.1 Work under this contract/task order is UNCLASSIFIED.

4.1.1 General Security Requirements

Contract employees are required to obtain and maintain, at a minimum, a favorably adjudicated National Agency Check with Local Agency Check and Credit Check (NACLC) investigation or equivalent. The investigation must be opened and favorable results of the fingerprints must be received prior to commencement of work and issuance of a Common Access Card (CAC).

The contractor shall comply with all applicable DOD security regulations and procedures. Contractor shall not disclose and must safeguard procurement sensitive information, computer systems and data, privacy act data, controlled unclassified information (CUI), and all government personnel work products that are obtained or generated in the performance of this task order.

Work under this task order requires access to personally identifiable information (PII) and information protected by the Privacy Act of 1974. In addition to the security requirements below, contractors performing work under this task order must meet the following criteria: Per SECNAV M-5510.30, all individuals with access to PII or Privacy Act information must be US Citizens; therefore US Citizenship is a requirement. In all cases contract employees must meet eligibility requirements for a National Security, Non-Critical Sensitive (NCS) position at a minimum.

NO FOREIGN NATIONAL WILL BE EMPLOYED ON THIS GOVERNMENT CONTRACT.

4.1.2 Pre-employment Actions

All contractor employees, working within DoN Spaces must be entered into the Defense Information System for Security (DISS), the facility security officer (FSO) must establish an ‘owning’ relationship indicating the company’s Commercial and Government Entity (CAGE) code. A visit authorization request (VAR) will be submitted to the Security Management Office (SMO) code: 002445. The point of contact to be used on the VAR will be the Contracting Officer’s Represent (COR). The NAVSUP FLCSD Security Office will then process those individuals’ VAR requests, in JPAS, and track and monitor their investigation status. The contractor shall provide to all contract employees, picture identification cards. The cards must be worn above the waist, and users must comply with all on-site security procedures.

a) For contract companies who do not have a FSO, the Chief Executive Officer (CEO)/President will submit a VAR, on company letterhead via facsimile to the receiving command Security Management Office. The SMO Manager will process those individuals’ VAR request in DISS, and track and monitor their investigation status.

b) All contractor employees will personally appear for ‘in-process’ with the command Security Office and Information Assurance Manager upon arrival to NAVSUP FLCSD, and will “out-process” prior to their departure.

c) Local controlled unclassified information (CUI) indoctrination will take place at that time.

d) Employment Eligibility Verification: The contractor shall comply with the HSPD-12, E-Verify Federal Acquisition Regulations FAR Clause 52.222-54.

e) The Contractor shall comply with all security requirements in accordance with the directives shown in Section C-6, and site-specific regulations.

f) All warehousing and offices spaces shall be secured unless work is actually being performed in these areas. By the close of the operating period, all equipment, facilities and material shall be secured. Contractor employees shall follow the orders of base or installation security personnel.

g) Security/identification badges are to be worn over the front of outer clothing, above the waist. These badges shall be worn at all times while on the base or installation and shall be presented for inspection when requested by security personnel, police, and management. The Contractor shall return the employee’s pass and badge to the COR/ACOR or designated official NLT COB of the day the employee leaves the Contractor’s employment or upon expiration/termination of the contract. All lost badges must be reported immediately to the issuing office. It is the Contractor’s responsibility to recover and turn in a badge should an employee resign without returning to work. Violations of any security or base procedures will be reported immediately to both the SMO and the COR.

4.2 Vetting Process for Base Access

The Contractor (FSO/President/CEO (or person designated in writing by said persons)) will coordinate with the receiving command’s Security Manager to ensure that all contractor employees have an Entrance National Agency Check with Local Agency and Credit Checks (NACLC) package submitted prior to full performance date.

Reminder: A NACLC investigation or equivalent must be opened and favorable results of the fingerprints must be received prior to commencement of work and issuance of a Common Access Card (CAC).

The vetting process is initiated when the contractor submits the following information to the COR, who will then submit it to the SMO:

1. A request for Industrial Security Investigation. This request contains the information required to enter a contractor employee into the e-QIP system. The contractor employee must be listed on the aforementioned VAR prior to sending the request.

2. Proof of Citizenship. Proof of citizenship will be verified by the Command Security Manager (or designate representative) and a copy of said document shall indicate as “Verified a True Copy” and be signed. Acceptable proof of citizenship includes:

a) For individuals born in the United States, a birth certificate is the primary and preferred means of citizenship verification.

b) If the individual claims citizenship by naturalization, a certificate of naturalization is acceptable proof of citizenship.

c) If citizenship was acquired by birth abroad to a U.S. citizen parent or parents, the following are acceptable evidence:

1. A Certificate of Citizenship issued by issued by the Department of Homeland Security, U.S. Citizenship and Immigration Services (USCIS) or its predecessor organization.

2. A Report of Birth Abroad of a Citizen of the United States of America (Form FS-240).

3. A Certificate of Birth. (Form FS-545 or DS-1350).

d) A passport, current or expired, is acceptable proof of citizenship.

e) A Record of Military Processing-Armed Forces of the United States (DD Form 1966) is acceptable proof of citizenship, provided it reflects U.S. citizenship.

The command Security Manager will notify the contractor at various stages of the process, at a minimum this will include, when the investigation package has been released to the Office of Personnel Management (OPM) and upon final adjudication.

AN “UNFAVORABLE” OR “NO DETERMINATION” ADJUDICATION OF THE CONTRACTOR EMPLOYEE’S INVESTIGATION WILL RESULT IN IMMEDIATE TERMINATION OF ACCESS TO THE WORKSPACE AND RECORDS. THE EMPLOYEE WILL BE ESCORTED OFF-SITE.

4.3 Information Systems Access

The Department of the Navy (DoN) has determined that all DoN Information systems are sensitive regardless of whether the information is classified or unclassified. A contractor whose work involves access to sensitive unclassified information warrants a judgment of an employee's trustworthiness. Therefore, all personnel accessing DoN Computer systems must undergo investigation for a National Security, Non-Critical Sensitive (NCS) position to verify their trustworthiness.

Department of Navy (DON) policy prescribes that all unclassified data at rest (information stored on a computer or removable media device) that has not been approved for public release and is stored on mobile computing devices shall be treated as sensitive data and encrypted using commercially available encryption technology. A contractor employee, whose work involves access to sensitive unclassified information, warrants a judgment of trustworthiness.

The FSO will ensure that the SAAR-N is forwarded to the NAVSUP FLCSD Security Office for receipt at least one week prior to the start date for the individual.

A NACLC investigation must be opened and favorable fingerprint results received prior to commencement of work and issuance of a Common Access Card (CAC).

"All authorized users of DoD information systems shall receive initial Information Assurance (IA) orientation as a condition of access and thereafter must complete annual IA awareness refresher training to maintain an active user account.” The COR can provide the contractor employee with a current link.

4.4 Key Control

a) The Government will issue keys for occupied spaces to the Contractor who shall issue, store and keep them safe IAW local key-control procedures. Signature receipt of keys will be kept on file.

b) The Contractor shall establish a control system to safeguard Government-issued keys to prevent theft, loss or use by unauthorized persons.

c) The Contractor shall not duplicate Government keys without the Key Control Officer’s (KCO) authorization via the COR.

d) The Contractor shall report to the COR any occurrence of a lost key within one working day of discovery of the loss. If the key cannot be found, Contractor shall replace all master locks and keys for that system at no cost to the government and shall coordinate the replacement through the COR.

e) The Contractor shall provide the COR physical proof of all keys issued, for Semi-Annual Key Inventory Report.

f) The Contractor shall conduct key inventories. The inventory report shall be completed on the first day of full contract performance provided to the COR on the second day. Subsequent inventories shall be submitted semi-annually thereafter, beginning six months after full contract performance date.

5 DATA AND REPORTS

The Contractor shall provide data, reports, Inventory listings and other sales and inventory data within 24 hours of a request for data from the COR. Unless otherwise requested, data shall be provided in a Microsoft readable format and sent via email to the COR. The physical layout of the reports is at the Contractor’s discretion unless otherwise stated by the Government. All reports are to be provided AT NO ADDITIONAL COST TO THE GOVERNMENT. The COR may reject reports that do not contain the required information or is not provided in a Microsoft readable format, and not sent by email. A list of data, metrics and reports required during the execution of this contract include, but are not limited to the following:

5.1 Outstanding Requisition Report 001: Contractor shall provide daily outstanding requisition status report for all customer requirements that were either Not in Stock or Not Carried at time requirement was submitted. Report should include Government reference number, status of Contractor procurement, and estimate ship date and shall be provided to the COR, ACOR, or Technical Point of Contact at the site the item was not in stock. The report shall include the following:

I. FSC

II. NIIN

III. Nomenclature IV. Requisition Number V. Work Center VI. Not Carried/NIS VII. Price VIII. Date Requested IX. Quantity Requested X. Due Requisition Status XI. Status code XII. Source of supply

XIII. ESD/EDD

XIV. Comments (if applicable)

Report Number 001

5.2 Not-in-Stock (NIS) Report 002: Contractor shall provide a monthly report for Not-in-Stock items. The list shall include all NIS items, to include, but not limited to, the following data fields:

I. Dates of all NIS hits II. Date requirement provided to contractor

III. NIIN

IV. Nomenclature V. Quantity Requested VI. Quantity Filled

VII. H/L

VIII. L/L

IX. Last Issue Date X. Last Issue Quantity XI. Due Quantity (if applicable) XII. Due Requisition Number (if applicable) XIII. Due Requisition Status (if applicable) XIV. Date Resolved XV. Comments Pertinent to Resolution

Report Number 002

5.3 Monthly Sales Report 003: Contractor shall provide a monthly report of HAZMAT sales report. This shall serve as the "official record of sales" and must be provided to the COR NLT five days after the closed out billing period.

I. Customer II. Stock Number III. unit of issue IV. qty V. standard price VI. extended price

Report Number 003

5.4 Stock Status Report: Contractor shall provide a monthly inventory report containing but not limited to:

I. FSC

II. NIIN

III. Nomenclature IV. Price V. Quantity On Hand

VI. H/L

VII. L/L

VIII. Last Issue Date IX. Last Issue Quantity X. Due Quantity (if applicable) XI. Due Requisition Number (if applicable) XII. Due Requisition Status (if applicable) XIII. Comments (if applicable)

Report Number 004

5.5 Actual Customer (HMC) Wait Time Report 005: Contractor shall provide a monthly actual customer wait time report containing but not limited to:

I. FSC

II. NIIN

III. Nomenclature IV. Requisition Number V. Work Center VI. Not Carried/NIS VII. Price VIII. Quantity Requested IX. Last Issue Quantity X. Aging Criteria XI. Date Received XII. Date Issued XIII. Comments (if applicable)

Report Number 005

6 GOVERNMENT FURNISHED PROPERTY

In accordance with FAR 52.245, the Government will furnish or make available to the Contractor certain Government-owned facilities, utilities, inventories, and equipment for use in connection with this contract as stated below.

All material, including records, files, documents, and work papers provided to the Contractor by the Government shall be considered Government property. The information shall not be disclosed, copied, modified, used ) or otherwise disseminated (except during performance of this contract) to any other person or entity at any time to include, but not limited to, inclusion in any database external to the Government, without the express, written…