Attachment 1 Statement of Work for SPE30022RX015.docx

SPE300-22-R-X015 1

ATTACHMENT TO SOLICITATION SPE300-22-R-X015

CAUTION NOTICE

THE CONTENT AND STRUCTURE OF SOLICITATION SPE300-18-R-0019 IS NEW. PLEASE READ CAREFULLY BEFORE SUBMITTING YOUR OFFER.

This procurement is being solicited as Price Only Evaluation Factor on an unrestricted basis with no HUBZone Price Preference. Solicitation SPE300-22-R-X015 is designed to place market Ready fresh milk and dairy items, all fully competitive, on a contract for various customers in state of Utah, Twentynine Palms Locations.

The resultant contract will be a fixed-price, indefinite delivery purchase order (IDPO) which provides for an indefinite quantity, within stated limits, of supplies or services during a fixed period with deliveries to be scheduled by placing orders with the contractor. The IDPO will be a fixed-price contract with economic price adjustment (EPA) for class I fluid milk items and a firm-fixed price contract for all other dairy items for the entire term of the contract. The contract period is expected to be from July 17, 2022 through July 12, 2025. The award will be issued as an IDPO per group, not to exceed three years or $250, 000.00 aggregate value, whichever occurs first. Prices quoted shall remain valid and fixed for the entire period.

Based on the Berry Amendment, all dairy items must be produced and manufactured in the United States (DFARS 252.225-7012).

This contract is for a thirty-six (36) month period “THE GOVERNMENT INTENDS TO AWARD TO THE RESPONSIBLE OFFEROR THAT CONFORMS TO THE SOLICITATION REQUIREMENTS AND OFFERS THE LOWEST PRICE’’

Please Note: Electronic mail (e-mail) is the only acceptable form of transmission for submission of initial proposals or revisions to initial proposals submitted in response to this solicitation and will be used during discussions/negotiations, if discussions/negotiations are held.

All contractors who choose to conduct business with the Department of Defense must now be registered in the System of Award Management (SAM) database. In addition, we encourage all vendors who receive contract awards as a result of this solicitation to access the “Dynamic Small Business Search” feature of SAM to identify potential suppliers and teaming partners for this initiative. You may go to the System of Award Management at www.sam.gov and click on the “Dynamic Small Business Search” button. When making your procurement decisions we encourage one’s consideration of local business as a means to nurture small business and local economies.

All contractors who receive awards as a result of this initiative are encouraged to utilize the SBA SUBNet database to assist them in further identifying additional small business sources of supply. Vendors may post notices of sources sought for teaming partners and subcontractors on future contracts. Small business can review this web site to identify opportunities in their area of expertise. You may access the SBA PRONet database through the SBA Website at www.sba.gov.

Included in their proposal submission, offerors are required to substantiate Delivered Prices for all items in the Schedule of Items, with invoices / quotes for all groups offered on. See section XXXVIII, para. D, item 2, for more information.

CONTRACTOR CODE OF BUSINESS ETHICS (OCT 2015)

FAR Part 3.1002(a) requires all government contractors to conduct themselves with the highest degree of integrity and honesty. Contractors should have a written code of business ethics and conduct within thirty days of award. To promote compliance with such code of business ethics and conduct, contractors should have an employee business ethics and compliance training program that facilitates timely discovery and disclosure of improper conduct in connection with government contracts and ensures corrective measures are promptly instituted and carried out. A contractor may be suspended and/or debarred for knowing failure by a principal to timely disclose to the government, in connection with the award, performance, or closeout of a government contract performed by the contractor or a subcontract awarded there under, credible evidence of a violation of federal criminal law involving fraud, conflict of interest, bribery, or gratuity violations found in title 18 of the United States Code or a violation of the False Claims Act. (31 U.S.C. 3729-3733).

If this solicitation or contract includes FAR clause 52.203-13 - CONTRACTOR CODE OF BUSINESS ETHICS AND CONDUCT; the contractor shall comply with the terms of the clause and have a written code of business ethics and conduct; exercise due diligence to prevent and detect criminal conduct; promote ethical conduct and a commitment to compliance with the law within their organization; and timely report any violations of federal criminal law involving fraud, conflict of interest, bribery or gratuity violations found in title 18 of the United States Code or any violations of the False Claims Act. (31 U.S.C. 3729-3733). When FAR 52.203-13 is included in the contract, contractors must provide a copy of its written code of business ethics and conduct to the contracting officer upon request by the contracting officer.

Notice to our Valued Suppliers

CHECKLIST - DID YOU REMEMBER TO ?????

[ ] Fill in Block 17a, of 1449?

[ ] Fill in Block 17A.?

[ ] Indicate remittance address and DUNS Number block 17B., if different, in offer?

[ ] Sign Block 30a, name in Block 30b, and date in Block 30c.?

[ ] Sign and return any/all amendments?

[ ] Return one (1) COMPLETE & SIGNED copy of the solicitation?

[ ] Fill out all certifications and representations in solicitation or submit a copy of your firm’s Online Representations and Certifications Applications (“ORCA”) Registration from System for Award Management (“SAM”) website?

[ ] Submit prices for every item listed in the Schedule of Items (Attachment 1)?

[ ] Fill out Vendor Name & CAGE Code for Excel Spreadsheet cell “D2” in Attachment 1 for Groups 1 ?

[ ] Submit Distribution Prices for Group 1 Excel Spreadsheet in Attachment 1 for Groups 1 ?

[ ] Checked box stating you intend or do not intend to use one or more facilities as a place of performance under Federal Acquisition Regulation (“FAR”) 52.215-6 Place of Performance?

[ ] Fill in places of performance, [ ] Submit Place of performance for each items

[ ] ALL VENDORS MUST BE REGISTRED IN THE SYSTEM FOR AWARD MANAGEMENT (SAM) TO RECEIVE AN AWARD. SEE CLAUSE 52.212-4(t)

CAUTION: The above checklist is for convenience purposes only. This list is not intended to be all-inclusive. Offerors are responsible for carefully reviewing the entire Solicitation to ensure proper submission of all required information.

RAPID GATE, DEFENSE BIOMETERIC IDENTIFICATION SYSTEM (DBIDS) REQUIREMENT and/or OTHER SECURITY PROGRAMS

Many bases may require enrollment in a particular system for base security such as RAPIDGate, the Defense Biometric Identification System (DBIDS), or other similar system(s). Such systems manage access to Department of Defense (DoD) installations and will not allow entry without clearance. During the contract start-up/ implementation period, the Contractor must contact all customer locations to determine whether enrollment in RAPIDGate, DBIDS, or another security program is required for access to each location. If RAPIDGate, DBIDS, or other security enrollment is required, the Contractor must take all necessary steps to obtain this in time for the start of performance under this contract. Failure to have clearance may result in a vendor being turned away from the base and being unable to complete delivery. The Contractor is responsible for any costs associated with RAPIDGate, DBIDS, and/or other security program enrollment and must ensure that a properly enrolled driver is available for all deliveries. We currently estimate that RAPIDGate or DDBIDS enrollment will cost about $250 per company and $200 per enrolled employee for 1 year of access to multiple locations, but the cost of RAPIDGate, DBIDS or other security enrollment may vary, so the Contractor should contact the specific security system contractor to determine its own costs. If more than one driver is required, enrollment must be obtained for each driver. Note that enrollment can take several weeks, so an awardee that is not already enrolled must begin enrollment at the time of award notification at the latest. If difficulty or delay in enrollment is encountered during the start- up/implementation period, the Contractor MUST contact the specific security system contractor and/or the Security Officer at the applicable customer locations to resolve any issues with processing enrollment so that the Contractor will be able to deliver as required.

For additional information on current base security systems including RAPIDGate and DBIDS, including enrollment instructions, please visit their websites at www.fortoirsolutions.com and http://dbids.dmdc.mil.

STATEMENT OF WORK

I. INTRODUCTION

Defense Logistics Agency (“DLA”) - Troop Support (“Agency”) intends to enter into one (1) Indefinite Delivery Purchase Order (IDPO) with a commercial firm(s) to supply Fresh Milk & Other Dairy products to Department of Defense (“DoD”, or “Troop”) customers in the Utah. Specific requirements per item are included in the Schedule of Items (Attachment 1). Failure to propose the specified requirement per item as identified in Attachment 1 may render an offeror's proposal technically unacceptable. A successful offeror(s) will be required to source, purchase, store, and deliver a variety of milk and dairy items to DLA Troop Support customers on an ongoing basis, while at the same time maintaining acceptable fill rates, levels of customer service, and product quality. Therefore, an offeror must currently possess the physical, logistical, and financial resources to serve as a commercial distributor of a variety of milk and dairy items. It is neither sufficient nor acceptable for an offeror to be a third-party logistics (“3PL”) company (i.e. a company that does not intend to serve as the milk and dairy supplier but instead intends to subcontract out the majority of aspects required by the contract, including but not limited to ordering, warehousing, distribution, etc.). By offering, an offeror affirms its status as a current and functioning commercial distributor of milk, dairy items. In order to determine whether an offeror meets the technical requirement of being a current and functioning commercial milk and dairy distributor, the Contracting Officer will require an offeror to submit a copy of each third party warehouse audit (i.e., Sanitation Compliance and Enforcement Ratings of Interstate Milk Shippers or other state or federal sanitation inspection certificates). The audit report(s) must demonstrate that a passing score(s) was/were received. Please note that a request for the aforementioned information by the Contracting Officer will be used to make a determination of whether or not the offeror meets the technical requirement of being a current and functioning commercial distributor of milk and dairy. This information is not being sought to determine an offeror's likelihood of success in performing the contract as would be the case in a responsibility analysis.

B. The aforementioned zone is comprised of (1) Group in the area described above. Group 1 consists of customers located at and/or in Utah. Group 1 contract period is expected to be from July 17, 2022 through July 12, 2025. The Agency intends to award one contract per Group. The offeror must support all of the customers in the Group for which they make an offer. Offerors are required to propose on all items in the Schedule of Items. Failure to do so may result in its proposal being deemed technically unacceptable and therefore excluded from further consideration for award. Because the Contracting Officer is not obligated to initiate negotiations, each offeror shall submit its most competitive proposal. Said proposal shall be responsive to all of the Solicitation's requirements and free from any deficiencies.

C. The resultant Contract will be an Indefinite Delivery Purchase Order (IDPO) that provides for an indefinite quantity, within states limits, of specific supplies or services to be furnished during a fixed period, with deliveries to be scheduled by placing order with the contractor (FAR 16-504(a). The total contract period will be thirty- six months. The IDPO will be firm-fixed contract with economic price adjustment (EPA) for class I fluid milk item and a firm-fixed price contract for all other items for the entire term of the contract D. The contract will not exceed thirty-six months or $250,000.00 aggregate value, whichever occurs first. The contract will begin on July 17, 2022 and end on July 12, 2025. Prices will be firm-fixed, thus not subject to change, except for the prices of class I fluid milk items, which are subject to the EPA terms and condition contained in this solicitation. Prices will be based on the time an order is placed, not when an order is delivered. For example, if an class I fluid milk item is placed before a price adjustment (in accordance with the EPA terms and conditions), but delivery is made after a price adjustment, then the prices in effect for that order will be the prices before the price adjustment.

E. This solicitation is being issued as unrestricted With HUBZone evaluation preference under full and open competition procedures. NAICS is 311511 and size standard is 1000. Comment by Nichols Harris, Alicia A CIV DLA TROOP SUPPORT (USA): With HUBZone evaluation preference under full and open…..

F. This Solicitation utilizes the Lowest Price Technically Acceptable (“LPTA”) Source Selection Process. The length of the contract is 36 -months (3- years).

II. EFFECTIVE PERIOD OF CONTRACT

A. Any resulting contract from this Solicitation will not exceed 3 years commencing on the effective date of July 17, 2022.

III. CONTRACT START-UP PERIOD

After an award is made, the Contractor (also referred to as the Awardee) will be required to take steps to implement its new contract prior to initial ordering/delivery. This may include but is not limited to invoicing (STORES), sourcing new items, finalize delivery schedule per customer location, base access, etc. The timeline for the “start-up” period, as described above, is not included in the first 24-month performance period

IV. ELECTRONIC ORDERING CATALOGS

An offeror that receives an award will be required to maintain electronic catalogs (STORES) that list all items available to the customers covered under this solicitation. Each item in the catalog shall contain the corresponding national or local stock number (as appropriate), Government item description, packaging characteristics, unit of issue, and unit price.

A. Catalog Maintenance

· New Items

If a customer seeks to order a Milk and/or Dairy item that is not a part of the catalog after the customers' ordering period commences (i.e. post “start-up” period), the Contractor will be afforded a maximum of 10 days to source the item and have the item added to the ordering catalog. The final step prior to the item being “live” on the catalog is for the Contracting Officer to determine the item's price “fair and reasonable.” Once this is complete, the item should remain a constant within the contractor's inventory, subject to availability issues. When requesting all item approvals (including new additions and/or changes to an existing item, such as pack size, etc.) with the Contracting Officer, the Contractor shall use the “Request for New Item” Form (Attachment 2). This form is mandatory and without it, no new items or changes to existing items will be processed by the Contracting Officer.

2. Catalog Pricing

(a) Schedule of Items Pricing: Items priced in the Schedule of Items (see Attachment 1) will be included in the ordering catalog following award. Schedule of Items will be determined fair and reasonable prior to award.

(b) Contractor-Requested Catalog Price Changes: Upon award, all items included in the Solicitation's Schedule of Items that ultimately are included in the ordering catalogs have been deemed “fair and reasonable” from a pricing standpoint by the Contracting Officer.

(c) Contractor-Requested Catalog Additions: Before an item is added to the catalog, the Contractor is required to submit to the Contracting Officer the “Request for New Item” Form as previously addressed (see Attachment 2). Said request shall include the stock number, Government item description including the quality grade of the item (if applicable), proposed unit price with a corresponding supplier invoice or quote (quotes) permitted in very limited circumstances as approved by the Contracting Officer; e.g. Contractor never purchased item before. The Contracting Officer will review the catalog addition request and upon determining the price “fair and reasonable” will contact the Contractor to indicate acceptance. The item once accepted will be added by the Contracting Officer to the catalog. Should the proposed price fail to be determined “fair and reasonable,” the Contracting Officer will conduct negotiations with the Contractor. If, after negotiations, the proposed price still cannot be determined “fair and reasonable,” the item will not be added to the catalog.

(d) Pricing Requirements: The Contractor's catalog prices, as awarded, constitute the initial catalog prices. The prices shall remain in effect for all subsequent ordering periods except as otherwise adjusted in accordance with the EPA provision.

VI. Berry Amendment A. The Berry Amendment contained in Defense Federal Acquisition Supplement (“DFARS”) 252.225.7012 included in this solicitation is applicable. This regulation mandates that all foods items including milk and other dairy items provided under instant solicitation and resulting contracts be produced and manufactured in the United States.

VII. ECONOMIC PRICE ADJUSTMENT (EPA) - ESTABLISHED MARKET PRICE – MILK 52.216-9032

VIII. (FEB 2009)

(a) To the extent that contingent cost increases are provided for by this clause, the contractor warrants that prices included in the contract do not include any amount to protect against such contingent cost increases.

(b) This EPA clause applies to Skim Milk and Butterfat Fluid Milk Products classified as Class I Milk only (i.e., whole milk, fat-free milk, low fat milk, light milk, reduced fat milk, milk drinks, eggnog and cultured buttermilk, including any such beverage products that are flavored, cultured, modified with added nonfat milk solids, sterilized, concentrated, or reconstituted. As used in this paragraph, the term concentrated milk means milk that contains not less than 25.5 percent, and not more than 50 percent, total milk solids). Any package sizes other than gallons will be pro-rated based upon the price adjustment per gallon.

(c) Class I milk, as described in this clause, is subject to the regulations of the United States Department of Agriculture under the Federal Milk Marketing Orders.

(d) The economic indicator for the purpose of prospective adjustments to contract prices under this clause shall be the Class I price [(Base Skim Milk Price for Class I times 0.965) plus (Advanced Butterfat Pricing Factor times 3.5)] in the Announcement of Advanced Prices and Pricing Factors released by the U.S. Department of Agriculture, Agricultural Marketing Service, Dairy Programs. The Announcement is released on the Friday before the 23rd of the month unless the 23rd of the month falls on a Friday in which case, Friday the 23rd will be the release date.

(e) Price adjustments shall be based on the following:

(1) The "base price" for the purpose of the initial adjustment calculation under this clause shall be the current month price of the economic indicator in effect at (i) the closing date for proposals, if no discussions are held, or (ii) the due date for final proposal revisions, if discussions are held. The "base price" for each subsequent monthly adjustment calculation shall be the adjusting price from the previous month.

(2) The "adjusting price" shall be the monthly price of the economic indicator released following the month used to determine the "base price".

(f) For the purpose of price adjustments pursuant to this clause:

(1) Adjustments will be made in increments of $0.01 per gallon when and only when the change per gallon in either direction is equal to or greater than +/-$0.0100.

(2) Adjustments in excess of $0.0100 per gallon and in excess of $0.0050 for units other than a gallon (i.e., half gallon, quart, pint and half pint) will be rounded to two decimal places to accommodate systems requirements of the Subsistence Total Order Receipt Electronic System (STORES), as follows:

$0.0050 to $0.0099 = $0.01

$0.0100 to $0.0149 = $0.01

$0.0150 to $0.0199 = $0.02

$0.0200 to $0.0249 = $0.02

$0.0250 to $0.0299 = $0.03, etc.

(3) One hundred weight (CWT) as used in the price of the economic indicator equates to 11.63 gallons of milk deliverable under this contract.

(g) Promptly following release of the Announcement of Advanced Prices and Pricing Factors applicable to the following month, the contracting officer shall compute the adjustments, if any, to the current contract prices for the purpose of determining any revised prices applicable to orders for the next month in the manner detailed below:

(1) Compute adjusting price.

(2) Compute base price.

(3) Compute change from base price. (4) Convert the price change to price per gallon.

(5) Compute price change for other units other than a gallon.

(6) Round price adjustment(s) from lines (4) and (5) to nearest $0.01 increment (see paragraph (f)(2)).

(7) Compute adjusted contract unit price(s). The following sample price computation is an illustration using January as the Base Price and February as the Adjusting Price.

(1) Adjusting Price

Class I Price

$10.7055

(2) Base Price Base Skim Milk

Class I Price

$10.8987

(3) Change from Base Price per CWT

($0.1932)

(4) Price change per gallon Line (3) divide by 11.63 gallons/cwt

($0.0166)

(5) Price change per half gallon

($0.0083)

Price change per quart

($0.0042)

Price change per pint

($0.0021)

Price change per half pint

($0.0010)

(6) Price adjustment per gallon

($0.02)

Price adjustment per half gallon

($0.01)

Price change per quart

$0.00

Price change per pint

$0.00

Price change per half pint

$0.00

(7) Adjusted contract unit price

Item per gallon (Current Unit Price - $0.02)

Item per half gallon (Current Unit Price - $0.01)

Item per quart (No adjustment)

Item per pint (No adjustment)

Item per half pint (No adjustment)

(h) Revised prices will become effective on the 1st Sunday of the next month and will remain in effect until the next price change occurs.

(i) Price adjustments pursuant to this clause will not be made by separate contract modifications. Adjustments will be implemented by the government as follows, and these actions shall constitute a modification to the contract:

(1) The adjusted contract unit price(s) for the following month will be input in STORES,

(2) A facsimile transmission will be sent to contractors who do not have electronic access, and

(3) The calculations used to derive the adjusted contract unit price(s) for the following month will be posted on the Internet at http://www.dscp.dla.mil/subs/pv/mrepa/index.asp.

(j) The aggregate of the increases in any contract unit price under this clause shall not exceed 30% of the original contract unit price. The original contract unit price is the price in effect on the date of award. If at any time during the term of the contract, a proposed economic price adjustment will exceed this ceiling, the Government reserves the right to raise this ceiling where changes in market conditions during the contract period support an increase. There is no percentage limitation on the amount of downward adjustments that may be made under this clause.

(k) In the event publication of the economic indicator is discontinued or its method of calculation substantially altered so that it no longer reflects market prices, the parties shall mutually agree upon an appropriate substitute for price adjustment(s) under this clause.

(l) Any dispute arising under this clause is subject to the "disputes" clause of the contract.

VIII. BUY AMERICAN ACT

A. The Buy American Act, contained in Federal Acquisition Regulation (“FAR”) 52.225-1 and included in this solicitation, is applicable. This regulation mandates that all food items, including milk and dairy items, provided under the instant solicitation and resulting contracts be produced and manufactured in the United States.

IX. ADDITION OF NEW CUSTOMERS

A. Adding Customers within the Contract's Geographic Distribution Region/Zone:

1. After contract award, there may be instances when new customers request support of their fresh milk and dairy requirements. Additional DoD and/or Non-DoD federal government customers that request DLA Troop Support fresh milk and dairy support may be added to the contract without any new acquisition or competition process, if the customer(s) is/are within the geographic distribution region/zone covered by this contract.

2. The decision as to whether a potentially new customer is within the contract region or zone and, thus, will be added to the contract without further competition and at the existing contract prices, shall be the sole decision of the DLA Troop Support Contracting Officer.

3. Pursuant to the above, the Contracting Officer will instruct the contractor to include the customer(s) at the effective contract prices applicable to that distribution zone/region.

B. Under no circumstance may the resulting contract's maximum dollar value be exceeded with the addition of any customer(s) and its respective milk and dairy requirements.

X. CUSTOMER SERVICE

A. The contractor(s) shall treat each of the customers covered under the contract as one of its best customers. Therefore, any treatment and/or customer service policy given to other essential accounts shall also be given to the customers covered under the resulted contract.

B. Troop and other customers conduct periodic food menu boards and similar meetings that the Contractor may be required to attend. At these meetings, the customers typically review their internal business practices and may request that the Contractor show new products and/or provide nutritional information.

XI. ORDERING SYSTEMS

A. Subsistence Total Order & Receipt Electronic System (“STORES”): DoD customers will order using the STORES catalog as applicable.

1. Accessed via the Internet, STORES is the Government's translator/ordering system that is capable of accepting orders from any of the Services', i.e., Army, Air Force, Navy, or Marines, individual ordering systems and translating them into an Electronic Data Interchange (“EDI”) format. In addition, this information is passed to DLA Troop Support for the purposes of contractor payment and customer billing.

2. Customers will be able to order all of their requirements through STORES. The system will transmit orders to the Contractor and DLA-Troop Support.

3. The Contractor is required to interface with STORES and must be able to support the following EDI transactions: 810 Electronic Invoice820 Payment Voucher Information

The EDI-capability is not a requirement for award under this solicitation, however, offerors should consider moving towards a fully function EDI environment.

If a vendor is not capable of receiving an order through EDI, then a copy of the STORES Orders will be transmitted VIA FAX from the customers listed in this solicitation to the successful awardee(s). While it is not a requirement of this solicitation, Vendors are encouraged to have a separate FAX line in order to accommodate orders in a timely, efficient manner.

Note: A complete description of these transaction sets is included in the “EDI Implementation Guidelines” and can be found at http://www.dla.mil/TroopSupport/Subsistence/Doing-Business-with-Sub/STORES/, click STORES and EDI Requirements.

5. The Contractor shall have access to the Internet and be able to send and receive electronic mail (email). Unit prices must be formatted not more than two (2) places to the right of the decimal point in all ordering catalogs. Standard rounding methods must be applied. For example, a price of $2.215 or higher must be rounded up to $2.22 and a price of $2.214 or lower must be rounded down to $2.21.

6. Contractors are required to utilize the Government's item descriptions on all invoices, delivery tickets to the customer, and 810 invoice.

7. The Contractor will utilize the DLA Troop Support invoice reconciliation process, or other such systems as may become available, to the maximum extent, towards the goal of correcting invoices early and facilitating the payment process.

8. In the event the STORES system or the Contractor's interface is not operational, the Contractor must provide alternate ways for the customer to order (e.g., by fax by phone, pick up orders, etc.)

9. Public Key Infrastructure (“PKI”)/ External Certificate Authorities (“ECA”) Certificates: The Department of Defense (“DoD”) PKI Certificate will be required for all DoD users. A DoD PKI certificate will be required for all contractors. The requirement for PKI certificates is implemented in accordance with DoD security policy promoting secure electronic transactions.

(a) Obtaining a PKI certificate:

(i) Contractors who do not work on-site at a Department of Defense facility may purchase a DoD PKI certificate from one of three External Certificate Authorities (“ECAs”). The ECAs are vendors who provide digital certificates to DoD's industry partners who are using their own equipment or working in non - Governmental facilities. Certificate prices range from $99 - $179 per certificate per year, with volume discounts at some ECAs. A list of ECAs is available at the following web address: https://www.transactionservices.dla.mil/ daashome/pki_contacts.asp .

(ii) Each contractor must fully comply with the DoD requirement to implement PKI in order for our information systems to remain secure and viable.

10. Purchase Orders There shall only be one invoice per purchase order and only one purchase order per day. This will reduce invoice and payment issues. At no time is a delivery permitted to deliver items that do not appear on the purchase order.

XII. ORDER PLACEMENT and ADJUSTMENTS/CANCELLATION OF ORDERS

A. The minimum order requirement for any resultant contract is $75.00. This requirement shall be based on the aggregate total of orders for a specific delivery date to all customers located within a particular military base or delivery location.

B. Customers shall place orders via STORES to accommodate at a minimum a 2-day lead time, i.e. “skip day” delivery. For example, an orders placed on Monday, September 1st would have a required delivery date of Wednesday, September 3rd. Orders shall generally be sent by the customer no later than 10:00 a.m. to allow the vendor to receive orders the same business day. However, a customer may decide to place an order with a longer lead-time for delivery, except as noted under the - “Holidays” subsection under the “Deliveries and Performance” section of this Solicitation.

Once submitted through the applicable electronic ordering system (STORES), an order may be cancelled by a customer up to 24 hours before scheduled delivery via written notification to the Contractor and the Contracting Officer. Within less than 24 hours from delivery, an order may be cancelled by mutual agreement between the customer and the Contractor. In the event of an act of God, such as extreme weather, the specific situation regarding a cancelled delivery will be dealt with in an equitable manner by the Contracting Officer, who has the ultimate authority and discretion to resolve said issues. (SKIP DAY) Adjustments.

C. All pricing is at time the order is placed. Comment by Nichols Harris, Alicia A CIV DLA TROOP SUPPORT (USA): D. Adjustments - For procedures discussing adjustments to order, refer to Attachment 4 (STORES manual).

D. Adjustments - For procedures discussing adjustments to order, refer to Attachment 4 (STORES manual).

XIII. ITEM AVAILABILITY

A. Contractors must have the ability to provide to the customers a range of milk and dairy items in sufficient quantities to fill all customer requirements and maintain the overall 97% contract fill rate. All supplies shall be delivered on a “fill or kill” per line-item basis (i.e. If a Contractor cannot fill a line item, the line item dies). Therefore, item substitutions are not authorized.

B. Contractors shall notify the customer within 24 hours of required delivery date/time of the non-availability of any particular ordered item, whether in whole or in part. The customer may choose to replace the non-available item with another item from the contract catalog by placing a new, separate order for the item in STORES as applicable. Assuming the proper procedure is followed, this circumstance (i.e., replacement of a NIS item with a separate order for another catalog item) will not negatively impact a Contractor's fill rate.

C. Substitution The customers have to authorize any substitution to their order prior to delivery. Substitution must be on the same or higher quality and at the same or lower price. Payment of items will be based on the price in the vendor’s electronic catalog. Therefore, firms that submit an invoice reflecting a higher price for substituted items will not be paid the full amount and will only be reimbursed for the unit price shown in the catalog.

XIV. PACKAGING, PACKING, LABELING, AND MARKINGS

A. All packaging and packing shall be in accordance with good commercial practice. Labeling shall be in accordance with commercial labeling complying with the Federal Food, Drug and Cosmetic Act and regulations promulgated there under. Shipping containers shall comply with the National Motor Freight Classification and Uniform Freight Classification Code.

B. All items must be identified with readable dates (open code dates), coded dates.

C. Protection during inclement weather is required. All products that are susceptible and sensitive to temperature must be protected by any means to prevent damage.

XV. DELIVERY INSTRUCTIONS

A. Contractors shall ensure all products are delivered in sanitary trucks that are of a commercially acceptable standard. If applicable, all delivery trucks must be equipped with a lift gate to expedite the offloading of products. Trucks shall maintain proper temperatures in accordance with standard commercial practices. Deliveries shall be FOB Destination to all delivery points. Delivery will be completed when the Contractor has unloaded the order(s) from the vehicle and placed them on the dock, and customer-receiving personnel has accepted the delivery ticket, in accordance with Section XVI below. All items will be delivered to customer locations free of damage and with all packaging and packing intact. See Attachment 3 Delivery Schedule. Comment by Nichols Harris, Alicia A CIV DLA TROOP SUPPORT (USA): Attachment 3 Delivery Schedule.

B. Customers' delivery schedules (days and times), routes, and stop-off sequences will be coordinated and verified with the customers on a post-award basis by the Contractor immediately following award and on an annual basis as required. On average, each Troop customer receives one to three deliveries per week. However, these schedules may be revised as necessary on a case-by-case basis at the approval of the Contracting Officer.

C. Products for individual customers/dining facilities must be segregated. Many of the military bases have more than one delivery point. All products shall be segregated by drop-off point and loaded into the delivery vehicle in reverse drop sequence. The intent is to provide expeditious off-loading capability and delivery to the customers.

D. The Contractor shall ensure that the personnel loading and delivering the product provide professional, prompt, and efficient service to the customer. Failure to adhere to these standards will be reported to the Customer Representative and the Contracting Officer by the affected customer(s) whereby appropriate corrective action will be coordinated with the Contractor.

XVI. INSPECTION AND ACCEPTANCE

A. Inspection and acceptance of products will be performed at destination. The inspection is normally limited to identity, count, and condition; however, this may be expanded if deemed necessary by either the military, Veterinary Inspector, Dining Facility Manager, Food Service Advisor/Officer, or the Contracting Officer. Delivery vehicles may be required to stop at a central location for inspection before proceeding to the assigned delivery point(s). In addition, the delivery vehicles will be inspected for cleanliness and condition. Supplies transported in vehicles that are unsanitary, or which are not equipped to maintain prescribed temperatures, may be rejected without further inspection. Failure to identify latent defects or similar issues at time of acceptance will not absolve the Contractor of its liability or preclude the customer from obtaining appropriate remedy upon the timely discover of said defects or issues after-the-fact. In this circumstance, the customer shall notify the Customer Representative who will coordinate with the Contracting Officer in seeking an appropriate resolution.

B. The authorized Government receiving official at each delivery point is responsible for inspecting and accepting products as they are delivered. The delivery ticket shall not be signed prior to the inspection of each product. All overages/shortages/returns are to be noted on the delivery ticket by the receiving official and truck driver. The authorized Government receiving official's signature and printed name on the delivery ticket is required for acceptance of the product. All signatures MUST be legible along with a printed name and title block. Failure to adhere to this requirement may result in disputes going against that party as its failure can severely limit the Contracting Officer's judgment.

C. Delivery Ticket and related information. No electronic invoice may be submitted for payment until acceptance is verified.

1. Troops: The Contractor shall provide three copies of the delivery ticket with the shipment. The first copy is provided to the receiving official (i.e., the customer) who will use the delivery ticket as the new receipt document. The second copy will be retained by the Contractor (or its agent) for invoicing and the final copy will be forwarded (either as the driver leaves the base or faxed/emailed with 24 hours of delivery) to the Fleet Logistics Center “FLC” or Fleet Industrial Supply Center “FISC” located at the prospective Base.

XVII. AUTHORIZED RETURNS

A. The Contractor shall accept returns under the following conditions:

1. Products shipped in error.

2. Products damaged in shipment.

3. Products with concealed or latent damage.

4. Products that are recalled.

5. Products that do not meet shelf-life requirements.

6. Products that do not meet the minimum quality requirements as defined for the items listed in the schedule.

7. Products delivered in unsanitary delivery vehicles.

8. Quantity excess as a result of catalog error by the Contractor.

9. Products that do not comply with FAR 52.225-1 - Buy American Act.

10. Any other condition not specified above that is deemed by the customer to be valid reasons for return, confirmed by the Contracting Officer within his/her discretion.

XVIII. REJECTION/RETURN PROCEDURES

A. In the event an item is returned for any of the reasons cited in Section XII., the delivery ticket/invoice shall be annotated as to the item(s) rejected/returned. These items shall then be deducted from the delivery ticket/invoice. The invoice total must be adjusted to reflect the correct dollar value of the shipment. Replacements will be authorized based on the customer's needs. On an as- needed basis determined by customer need, same day re-delivery of items that were previously rejected shall be made, so that the customer's food service requirements do not go unfulfilled for that day. The re-delivered items will be delivered under a separate invoice utilizing the same call number, contract line-item number, and purchase order number for the discrepant line. These re-deliveries will not constitute an emergency order requirement.

B. In the event a product is rejected after initial delivery is made, the Contractor will pick up the rejected product or make other disposition arrangements deemed acceptable by the customer. Credit due to the ordering activity as a result of the rejected product being returned, will be handled through a receipts adjustment process in STORES. If the Contractor has already been paid for the product, a claim will be issued through DLA TROOP SUPPORT's financial system and the Contractor shall promptly pay the claimed amount. In all Items, one (1) copy of the credit memo is to be given to the customer and one (1) copy of the credit memo is to be sent to the DLA TROOP SUPPORT Contracting Officer.

C. It is a requirement of this solicitation that product shall be inspected upon receipt as promptly as practicable. However, failure to promptly inspect or accept supplies shall not relieve the contractor from responsibility, nor impose liability on any of the customers, for nonconforming supplies. See FAR clause 52.212-4, paragraph (o) and addendum to clause 52.212-4, paragraph 1.

XIX. INVOICING

A. Each delivery will be accompanied by the Contractor's delivery ticket/invoice. The customer shall sign all copies of the invoice/ delivery ticket. Any changes must be made on the face of the delivery ticket/invoice; attachments are not acceptable. See Section XVI, para. C.

B. No paper invoices shall be submitted to DFAS for payment. For all orders placed via STORES, invoicing for payment is to be filed electronically using EDI 810 (see http://www.dla.mil/TroopSupport/,Select supply chains: Select Subsistence, Select Information: Select Stores & EDI Requests for EDI guidelines).

C. All invoices submitted by the Contractor must be “clean”, i.e., all debits and/or credits must be reflected on the invoice prior to its submission. The Contractor is required to ensure the accuracy of its invoices. The Reconciliation Tool in STORES Web provides the Contractor the ability to ensure said accuracy.

D. All internal debit/credit transactions must be completed prior to the submission of the invoice. Invoice lines that do not contain the correct invoice data and/or contain incorrect quantities delivered or prices charged will be rejected. The Contractor will be responsible for correction and re-submission.

E. The same invoice cannot be submitted with different dollar amounts.

F. Any manually keyed, or emergency, orders must contain the word “Emergency” in the Purchase Order field when the invoice is submitted for payment. In addition, the CALL number and contract line-item number (CLIN) will be entered as “9999” on the invoice. Failure to follow this procedure may result in the rejection of the Contractor's invoice.

G. For catch weight items, standard rounding methods must be observed, i.e., less than .5 is rounded down; greater than or equal to .5 is rounded up. All weights must be rounded to whole pounds using standard rounding methods. Any line submitted for other than whole numbers will be rejected and require correction and re-submission by the Contractor. Note:

Currently, no catch weight items apply to this Solicitation. This does not preclude the possibility that catch weight items may be added in the future for certain items.

H. Unit prices and extended prices must be formatted not more than two (2) places to the right of the decimal point. Standard rounding methods must be applied. For example, a price of $2.215 or higher must be rounded up to $2.22 and a price of $2.214 or lower must be rounded down to $2.21.

I. Although invoices must be submitted electronically via an 810 Electronic Invoice; the following address must appear in the “Bill To” or “Payment Will Be Made By” block of the Contractor's invoice.

DFAS- Columbus Center (SL4701) Attn: DFAS-BVDP P.O. Box 369031 Columbus, OH 43236-9031 Each invoice shall contain sufficient data for billing purposes. This includes, but is not limited to:

1. Contract Number

2. Call or Delivery Order Number

3. Purchase Order Number

4. DoD Activity Address Code (DODAAC)

5. Contract line-item numbers (CLINs) listed in numeric sequence (CLIN order)

6. Item nomenclature

7. Local Stock Number (LSN) or National Stock Number (NSN), as applicable

8. Quantity purchased per item in DLA Troop Support's unit of issue

9. Total dollar value on each invoice (reflecting changes to the shipment, if applicable)

J. Invoice transactions may be submitted to DLA Troop Support daily. All internal debit/credit transactions must be completed prior to the submission of the invoice. Invoice lines that do not contain the correct invoice data and/or contain incorrect quantities delivered or prices charged will be rejected. The Contractor will be responsible for correction and re-submission.

K. Invoice Reconciliation. The following tools have been developed to provide an additional method for the Contractor to ensure the accuracy of its own internal accounting process.

1. For STORES: Vendor Reconciliation Tool - In an effort to improve the payment process, Contractors are required to view what the customer has or has not receipted via the DLA Troop Support STORES website: https://www.stores.dla.mil/ stores_web/Admin_Logon.aspx. The Contractor will have access to “un-reconciled” information, i.e., the invoice does not match the receipt because of the quantity and/or price discrepancy or because the customer has not posted a receipt. Both invoice information and receipt information will be available for review on the website by the Contractor. While the Contractor will not have the capability to update customer receipt information, update capability will be available for un- reconciled invoice information for 120 days. It is the Contractor's responsibility to ensure accurate invoices.

XX. FILL RATE

A. Order fill rates shall be calculated by the Contractor on an on-time, per order basis and tracked for monthly submission to the Contracting Officer/Account Manager. To ensure accuracy in the Contractor's reported fill rates, the Government will utilize its own internal data for comparison purposes. The fill rate shall be calculated as follows and shall not include mis-picks, damaged Items or rejected items (No other method of calculating fill rate will be accepted): Items accepted * 100 = fill rate % Items ordered

B. Definitions:

1. Items Accepted: Product that the customer has received and receipted not including damaged Items, rejected items, or mis-picks.

2. Items Ordered: Product ordered by a customer through STORES.

C. Contractor is required to maintain at a minimum a 97.0% fill-rate.

D. The Contractor will submit a monthly report, by customer, to the DLA Troop Support Contracting Officer with the following information:

1. Fill Rate

2. List of all items that were Not in Stock, Returned, Damaged, and/or Mis-picked.

XXI. HOLIDAYS

A. All orders are to be delivered on the specified delivery date, except for Federal holidays, as outlined below. When a scheduled delivery day falls on one of these days, or one designated by your firm, delivery should occur on the next business day, unless otherwise agreed to by the customer.

New Year Day Labor Day Martin Luther King Jr Birthday Columbus Day Presidents' Day Veterans Day Memorial Day Thanksgiving Day Independence Day Christmas Day Juneteenth Day

Note: Holidays falling on a Saturday are normally observed on the preceding day (Friday); holidays falling on a Sunday are normally observed on the following day (Monday)

XXII. EMERGENCY ORDERS

A. Troop requirements can accelerate and surge during wartime, civil emergencies, natural disasters, adverse weather or other conditions. Therefore, last minute ordering may take place as necessary to fulfill customers' requirements.

B. For Troop customers, the contractor will provide up to one emergency order per month per customer at no additional cost to the Government. As specified by the customer, all emergency order(s) for supplies must be same day or next day. Expeditious fulfillment of the emergency requirement is imperative. Unless otherwise noted by the Contractor, the Contractor's Tailor Vendor Logistics Specialist (“TVLS”) or Customer Service Representative (“CSR”) will be the point of contact for emergency orders, and will vet the appropriateness of such a request.

XXIII. FOOD DEFENSE

A. DLA Troop Support Subsistence Directorate provides world-wide subsistence logistics support during peace time as well as during regional conflicts, contingency operations, national emergencies, and natural disasters. At any time, the United States Government, its personnel, resources and interests may be the target of enemy aggression to include espionage, sabotage, or terrorism. This increased risk requires DLA Troop Support to take steps to ensure measures are taken to prevent the deliberate tampering and contamination of subsistence items. The Contractor must ensure that products and/or packaging have not been tampered with or contaminated throughout the growing, storage, and delivery process. The Contractor must immediately inform DLA Troop Support Subsistence of any attempt or suspected attempt by any party or parties, known or unknown, to tamper with or contaminate subsistence supplies.

B. As the holder of a contract with the Department of Defense, the Contractor should be aware of the vital role it plays in supporting the Agency's customers.