Attachment I - Performance Work Statement.pdf

PERFORMANCE WORK STATEMENT

FOR

DEFENSE FUEL SUPPORT POINT SERVICES

Location

REPUBLIC OF PANAMA

As of January 26, 2021

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Attachment I - Performance Work Statement

Republic of Panama

Performance Work Statement (PWS) For

Defense Fuel Support Point Services

1 Description and Purpose of Required Services

1.1 Requirement

1.2 Area of Consideration

1.3 Storage Capacity/Tank Requirements

1.4 Grade of Service

1.5 Physical System Requirements

1.6 Allowed Throughput

1.7 Inventory Control Records and System of Record Requirements

1.8 Product Receiving Requirements

1.9 Product Shipping Requirements

2 General Information

2.1 Local Clearances/National Notification Requirements

2.2 Custody and Risk of Loss

2.3 Billing

2.4 Product Quality Surveillance

2.5 Ancillary Facilities

2.6 Quality Assurance Representative (QAR) Support

2.7 Best Commercial Practices

3 Training Requirements

4 Deliverables

4.1 Contractor Detailed Plans

5 Contract Line Items (CLINs)

Appendix A Common Access Card (CAC) Procedures

1. DESCRIPTION AND PURPOSE OF REQUIRED SERVICES

1.1 Requirement: The Defense Logistics Agency (DLA) Energy requires Defense Fuel Support Point (DFSP) services in the Republic of Panama for a four-year base period, with one five-year option period.

The following terms and conditions are applicable to the requirement for contract services and ancillary facilities for receiving, storing, protecting, and shipping U.S. Government-owned aviation turbine fuel.

1.2 Area of Consideration: Pacific Ocean (Western entrance) side of the Panama Canal, Republic of Panama.

1.3 Storage Capacity/Tank Requirements: Storage of 26,000 barrels (fill capacity) is required. A minimum of two tanks interconnected and isolated from other fuel facilities and products handled within the storage facility is required. All storage must be available upon award at a single facility.

1.4 Grade of Service: Turbine Fuel, Aviation Grade JP-5 (F44).

1.5 Physical System Requirements: Storage and distribution facility capable of receiving, storing, protecting, and shipping U.S. Government-owned aviation turbine fuel.

1.6 Allowed Throughput: The U.S. Government will be entitled to 13,000 barrels of total throughput for each year; hereafter referred to as ‘allowed throughput’. Allowed throughput is defined and calculated by adding the total number of barrels for all product types received and shipped in a twelve consecutive month period, divided by two, starting when inspection and acceptance takes place after receipt of initial fill and resetting on the anniversary date each following year. Allowed throughput does not include initial fill or final shipment.

1.6.1 Initial Fill and Final Shipment: The U.S. Government will be entitled to initial fill beginning at the twelve-month period immediately following inspection and acceptance, and final shipment during the last twelve months of the performance period, at no additional cost. Initial fill is defined as all receipts required filling the storage tanks to 100% of the awarded fill capacity for JP-5 (F44). Final shipment is defined as all shipments required withdrawing 100% of the awarded fill capacity.

1.7 Inventory Control Records and System of Records (Inventory Data Input): The Contractor shall follow the physical inventory management procedures specified in applicable directives and contract texts in accordance with the most current version of Department of Defense Manual 4140.25 and DLA Energy Class IIIB Supply Chain Management Interim Policy and Procedural Guidance. The management of fuel inventories involves a full range of actions associated with order, requisition, receipt, transfer, issue, physical inventory, and storage of fuel. The Contractor shall process inventory data of Government-owned product utilizing DLA Energy’s web-based application Accountable Property System of Record (APSR).

DLA Energy will provide training to a minimum of two Contractor personnel. See contract text I119.04 INVENTORY CONTROL RECORDS AND SYSTEM OF RECORDS for additional information regarding the Government’s inventory data requirements. The Contractor shall:

• Ensure that all orders, receipts, transfers, issues sales/credits, losses, gains, and adjustments are properly documented.

• Maintain control over the physical environment to ensure proper product storage can take place with minimal losses.

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• Ensure automated tank gauges are verified monthly against manual gauge readings and calibrated annually if used to report inventory volumes.

• Ensure inventory variations are within allowable limits. Document, investigate, report, and take corrective action if necessary, on excessive variations.

Refer to PWS section 3 Training Requirements for APSR and other training requirements.

To process APSR inventory data, the Contractor is required to obtain a Common Access Card (CAC) (see Appendix A CAC Procedures) or, as an alternative, obtain an External Certificate Authority (ECA) no later than sixty days prior to inspection and acceptance. Authorized users who are not eligible for the CAC should refer to https://public.cyber.mil for current information on obtaining ECA provided certificates.

1.7.1 Inventory Access: The Contractor shall ensure DLA Energy has full unrestricted access to its complete inventory. DLA Energy Quality Assurance Representative/Contracting Officer’s Representative (QAR/COR), and other DLA Energy representatives will be provided access to APSR onsite as needed.

See QAP E1.01 CONTRACTOR RESPONSIBILITY FOR GOVERNMENT INSPECTION OF

SERVICES.

1.7.2 APSR Automated Data Processing (ADP) Equipment: The Contractor shall provide an ADP computer system that meets the current commercial standards for a computer system capable of accomplishing the data reporting and records keeping required by APSR, email, maintaining the data collection and records keeping associated with product quality surveillance (product analysis and testing reports), and the document collection and records keeping associated with the Contractor’s preventive maintenance program.

1.8 Product Receiving Requirements: The Contractor shall provide facilities capable of receiving JP-5 (F44) via tanker/barge on a 24-hour per day, 7-day per week basis at pumping rates compatible with the mode of transportation tendered (minimum of 6,500 barrels per hour (BPH) for tankers and 2,000 BPH for barges). Planning factor for the product receiving requirement is a range of approximately 10,000 to 20,000 barrels per 12-month period regardless of receiving mode.

1.8.1 Receiving Dock Berthing and Mooring Facilities: The Contractor’s dock and berthing facilities will be capable of receiving and safely berthing tankers/barges up to dead weight tons (DWT) 49,000MT, length overall (LOA) 600.4 feet (183M), and a minimum draft of 42 feet (12.8M) at the dock. The facilities should be equipped with a turning dolphin capable of accommodating the lateral forces induced when turning a vessel. The Contractor shall provide a detailed description of any port restriction/requirements and harbor or other fees associated with their proposal, along with height restrictions from ships manifold to the waterline during loading. The Contractor must also provide a detailed schematic of their berthing and mooring facilities showing the minimum and maximum capabilities to include current dredging charts.

1.9 Product Shipping Requirements: The Contractor shall provide facilities capable of shipping JP-5 (F44) via tanker/barge or U.S. Navy vessels via dedicated pipeline on a 24-hour per day, 7-day per week basis at pumping rates compatible with the facility and mode of transportation tendered (minimum 6,500 BPH for tankers and 2,000 BPH for barges). Planning factor for the product shipping requirement is a range of approximately 10,000 to 20,000 barrels per 12-month period regardless of receiving mode. The Contractor shall maintain the capability to load tankers/barges or vessels within 36 hours. Shorter order

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Attachment I - Performance Work Statement https://public.cyber.mil/ lead times may be required on an infrequent basis. However, requesting U.S. Navy vessels and U.S Coast Guard cutters routinely place fuel orders 5-7 days in advance.

1.9.1 Tank Truck: The Contractor shall:

• Ensure capability for shipping JP-5 (F44) product via tank truck at a rate of 250 gallons per minute, per truck on a 24-hour per day, 7-day per week basis. The truck facility must be equipped (connected) to a dedicated pipeline, maintain one bottom loading arm, and maintain illumination to allow for tank truck operations during hours of darkness.

• Provide trucking services or subcontract required services capable of safely loading and dispatching tank trucks loaded with JP-5 (F44). The number of tank truck shipments for each 12-month period is estimated at 20.

• Inspect each tank truck to ensure it is clean, suitable to load JP-5 (F44), and prevents pilferage.

• Obtain samples after completion of truck loading and provide a copy of the laboratory analysis of samples taken to the QAR.

• Arrange and provide tank truck services for the delivery of JP-5 (F44) to U.S. Navy vessels, U.S. Coast Guard vessels, and other DoD sponsored customers, calling at Colon and Vasco Nunez de Balboa (VNB), Panama. Average delivery quantities are in the 1,500 – 15,000 USG range.

• Provide trucking services with a qualified trucking company capable of providing clean trucks at the contractor’s facility with 24-hour notice.

• Monitor all fueling operations to ensure that delivery operations comply with Transportation, Environmental, and Safety rules and regulations of Panama.

• Advise customer they are expected to receive all ordered product. If there is remaining product in the tank truck, after topping off their aviation tank, the remaining product in the truck is the responsibility of the customer, product shall not be returned to stocks.

2. GENERAL INFORMATION

2.1 Local Clearances/National Notification Requirements: The contractor shall be responsible for obtaining all required Country, National, local notifications, clearances and filing, required for the purposes of receiving and issuing US Government-owned products at their facilities. Any costs/fees required under this section shall be included in the firm-fixed price.

2.2 Custody and Risk of Loss

2.2.1 Marine Receipts: Custody and risk of loss of product delivered by tanker or barge will pass from the carrier to the Contractor when the fuel passes the vessel’s permanent hose connection.

2.2.2 Tank Truck Issue: Custody and risk of loss of product issued to tank truck will pass from the Contractor to the carrier when the fuel passes the tank truck’s loading manifold.

2.2.3 Marine Issue: Custody and risk of loss of product issued to tanker or barge will pass from the Contractor to the vessel when the fuel passes the vessel’s permanent hose connection.

2.3 Billing: Unless otherwise directed, the Contractor shall prepare and distribute Government bills of lading and all necessary paperwork to include customs documentation, if necessary, used in issuing

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product. Bills of lading, routing instructions, and transportation assistance shall be furnished by the DLA Energy Americas East (AME) regional office or Service activity placing orders.

2.4 Product Quality Surveillance: The Contractor shall be responsible for maintaining the quality of the Government-owned product stored at the Contractor’s facility in accordance with the most current version of MIL-STD-3004-1, DEPARTMENT OF DEFENSE STANDARD PRACTICE: QUALITY

ASSURANCE/SURVEILLANCE FOR BULK FUELS, LUBRICANTS AND RELATED PRODUCTS.

No petroleum products will be received or shipped without first determining and confirming conformance with product quality requirements. No conveyance/container will be loaded until it is inspected by qualified contractor personnel and deemed suitable to carry the intended product. Products will be shipped on a first-in, first-out basis unless otherwise approved or directed by the QAR/COR or AME region office. Non-conforming product will be reported to the QAR/COR or AME region office immediately, but no later than 15 minutes after discovery. Anytime product is received into a tank, the tank’s contents will be suspended from issue pending quality conformance sampling and testing. The Contractor shall ensure that certificates of quality conformance (test reports) for all Government-owned fuels are kept on file for the duration of the contract and for 3 years after contract completion.

2.4.1 Contaminated Product Liability: The Contractor is liable to the U. S. Government for the cost of the product and the cost of disposal or remediation for all products that become contaminated while at the Contractor’s facility due to the Contractor’s fault or negligence.

2.4.2 Off-Specification Product Reporting: The Contractor shall report immediately, but no later than 15 minutes after discovery, to the QAR/COR or the AME region office, and the contracting officer, all receipts or on hand stocks that fail to meet product quality for receipt, storage, or shipment in accordance with latest revisions of MIL-STD-3004-1. Suspected off-specification product will be isolated and will not be released for shipment until authorized by the QAR/COR or AME region office.

2.4.3 Laboratory Testing Requirements: The Contractor shall perform sampling and laboratory testing in accordance with the latest revisions of MIL-STD-3004-1, Table IX Minimum Sampling and Testing Requirements for Petroleum Products, and sampling in accordance with STANDARD PRACTICE FOR

MANUAL SAMPLING OF PETROLEUM AND PETROLEUM PRODUCTS (API MANUAL OF

PETROLEUM MEASUREMENT STANDARDS (MPMS), Chapter 8.1) and/or ASTM D4057. At a minimum, the Contractor shall have either Type C level testing capability for aviation turbine fuels at its facility or subcontract to have that level of testing performed offsite, which is included in the Contractor’s firm fixed price. Information to include at a minimum: laboratory name, location, testing capabilities, employee proficiency, testing turn-around times and POCs.

The Contractor shall be capable of petroleum product sampling IAW API MPMS and/or ASTM D4057 of vessels, barges, tank trucks, storage tanks, and pipelines as it applies to location. The Contractor shall maintain a supply of 10 unused epoxy lined fuel sample shipping containers for DLA Energy use or emergency need. Sample containers shall be stored to ensure they are clean and free from all substances that might contaminate the product being sampled. Containers must meet the following specifications:

Complies with ASTM D-4306, height not to exceed 9 inches, diameter not to exceed 7 inches, capacity 1 USG, epoxy lined, bung plug ¾” with lock-wire hole, carrying handle able to be shipped as hazardous material.

The Contractor shall be responsible for transporting all petroleum samples from job site to its laboratory or its subcontracted laboratory and/or to a Government contracted laboratory for higher level testing as directed by the QAR/COR or the AME region office in accordance with host nation local, state, or national laws.

2.4.4 Additional Samples: The Contractor shall provide to the government representative samples of any product being stored, shipped, or received under the contract, at the request of, and in the manner designated by the QAR. These samples shall be provided in addition to samples required elsewhere in the contract. The total number of these samples to be provided during any 12-month period shall not exceed eight times the number of tanks specified in the contract. The packing, marking, shipping, and the associated costs shall be the responsibility of the Contractor. The contractor shall provide the government representative samples of any product being stored, shipped, or received under the contract IAW MIL- STD-3004-1, section 4.2.1.

2.5 Ancillary Facilities: The Contractor shall provide the following facilities, at a minimum, under this requirement.

2.5.1 Tanks: All tanks and facilities offered must meet the minimum requirements of the current American Petroleum Institute (API) standards, National Fire Protection Association (NFPA) codes, and/or all host nation local, state, or national laws and/or regulations applicable to tanks and facilities of the type to be provided. The tanks will be interconnected to provide the capability of recirculating and filtering of product between tanks. Each storage tank will be equipped with a fuel/water separation system for collection of all product or water drawn/removed from its bottom water drain(s). This system shall have the capability to return separated product back into the same storage tank. Water checks shall be performed daily on issue tanks and performed weekly on static tanks or each time a tank is gauged, whichever occurs first. When water is found, it shall be drained as soon as possible. For tank periodic inspection and cleaning requirements see QAP E18 INSPECTION AND CLEANING OF BULK

PETROLEUM STORAGE TANKS.

2.5.2 Filtration: Contractor furnished fuel filtration/separation system is required. The fuel filtration/separation system must be of the kind that meets the specifications outlined in the current API Publication 1581, “Specifications and Qualification Procedures – Aviation Jet Fuel Filter/Separator.”

Normal filter replacement is at the Contractor’s expense. All costs for filters, disposal, labor, and supplies will be included in the contract firm-fixed-price.

2.5.3 Lighting: The facility must be equipped with illumination to allow receipt/issue operations during hours of darkness.

2.6 Quality Assurance Representative Support: The Contractor shall coordinate, as needed, with the QAR regarding quality concerns and compliance. The Contractor shall support the QAR, as needed. Prior to receiving the initial fill of U.S. Government-owned product, the offered storage tanks and facility must be inspected and accepted by the QAR. The Contractor shall coordinate this inspection, with adequate time to address inspection findings, and be ready to receive initial fill on the contract performance start date.

2.6.1 Telephone Support: The Contractor shall provide access to a telephone, as needed.

2.6.2 Facsimile Machine: The Contractor shall provide access to a facsimile machine, as needed.

2.6.3 Photocopier Machine: The Contractor shall provide access to a photocopy-type reproduction machine that is capable of handling letter and legal size copies. The Contractor shall provide sufficient quantities of both sizes of paper to meet the terminal's and QAR/COR’s copy requirements.

2.7 Best Commercial Practices: In the absence of any contract provisions or references to a method, specifications or other instruction, the contractor shall perform all services hereunder in accordance with best commercial practices.

3.0 Training Requirements: The Contractor shall ensure personnel are trained by job classification. The Contractor is responsible to meet the following training requirements and certification:

a. The Contractor shall have a minimum of two DLA Energy Account Transaction Processor/Recorder personnel, one primary and one alternate. The DLA Energy Account Transaction Processor/Recorder (inventory accountant) shall complete the Fuels Management Defense (FMD-9) course and shall obtain a Common Access Card (CAC) in accordance with Appendix A and 1.7 of the PWS or, at a minimum, obtain an External Certificate Authority (ECA) as required in DLA Energy P-7, P-26 and P-32. Authorized users who are not eligible for the CAC should refer to https://public.cyber.mil.

b. Terminal Manager (TM) – TM shall complete the training as required in DLA Energy P-7, P-26 and P-32, and shall obtain a CAC in accordance with Appendix A and 1.7 of the PWS, or, as a minimum, obtain an ECA. The TM shall first complete the DLA Energy Responsible Officer, Terminal Manager, and Property Administrator (RO/TM/PA) computer-based training course and then, within 90 days of appointment, attend the Joint Terminal Managers & Responsible Officers Course. The TM must also complete the RO/TM/PA computer-based training course every two years for refresher training. Additionally, the TM may attend the formal training course after three years to remain current on DLA Energy and DoD policy and application changes. Prospective eligible applicants shall apply through the online registration tool located at:

https://www.fuelstraining.com. CBT training requirements for DFSP personnel are located at https://www.fuelstraining.com.

c. DLA provides a course of instruction at a Training Facility in Alexandria, VA or at https://www.fuelstraining.com. The duration of the training is as follow: three weeks for FMD-9 for accountants and one week for TM. The Contractor shall factor in all travel and any other expenses for their personnel to attend the course in the COCO Monthly Service Price.

4. Deliverables:

4.1 Contractor Detailed Plans: Following contract award, the Contractor will have 60 days, unless otherwise indicated, to submit the QAR/COR reviewed plans to the Contracting Officer for review and acceptance. The detailed plans listed below will be reviewed by the QAR/COR prior to submitting to the Contracting Officer. The plans are considered dynamic documents and will be updated, as required, throughout the contract period. Submitted plans from the Contractor must be written in English.

4.1.1 Contract Compliance Plan (CCP): The Contractor is responsible for ensuring compliance with all

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Attachment I - Performance Work Statement

Republic of Panama https://public.cyber.mil/ https://www.fuelstraining.com/ https://www.fuelstraining.com/ https://www.fuelstraining.com/ contract performance requirements. As such, the Contractor shall develop an inspection system acceptable to the Government for monitoring overall contract performance. The inspection system is to include a written CCP developed and used by the Contractor to measure performance on a continuous basis. The CCP, at a minimum, will include performance-based plans.

• General performance criteria will include the Contractor’s ability to provide continuous support capabilities as specified in this PWS.

• Record keeping and reporting procedures pertaining to administrative requirements.

• Bulk storage operations.

• Facility/equipment maintenance.

The CCP will include time specific checklists for evaluation of all operational and preventive maintenance requirements. The CCP will address procedures for corrective actions including the resolution of Corrective Action Report (CAR) and Quality Deficiency Reports (QDR) generated by the QAR/COR.

Within 30 days after award the Contractor shall submit the CCP to the QAR/COR for review prior to forwarding to the Contracting Officer for final approval. The CCP will be made available for Government review, upon request, at any time during the contract performance period. The CCP may be used by the QAR/COR for monitoring and assessing contract performance.

4.1.2 Product Quality Control Plan (QCP): The Contractor shall provide a comprehensive and detailed plan that will ensure that products handled by the Contractor remain on specification. The plan will include all the quality control procedures required in QAP E1.11 ENERGY QUALITY CONTROL PLAN. The plan will describe how product quality surveillance data will be documented and reported. The plan will identify responsible parties for the functions. This plan will be submitted to the QAR, for review and approval, prior to the first receipt of Government-owned product or within 30 days after contract award, whichever occurs first. The approved plan will be effective at the start of the contract performance period.

5. Contract Line Items (CLINs): Prices for all storage and ancillary services included in this PWS should be included in the monthly price for CLIN 0001 and Option CLIN 0002.

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Appendix A

Contractor Instructions Common Access Card (CAC) Procedures

Performance under this contract may require the contractor to obtain a Common Access Card (CAC). If CACs are issued under this contract, the contractor shall complete and comply with the following steps to obtain, control, and turn-in Government-issued CACs, as well as establish procedures to control and account for contractor CACs at all times. This process is only for the issuance and accountability of CACs. Contractors may be required to provide additional forms and follow additional procedures for other forms of access and/or background/security checks depending on local site/installation requirements.

1. The contractor has each contractor employee requiring a CAC complete and sign Sections I and II of the DD Form 1172-2. The instructions for completing the DD Form 1172-2 are located at https://www.cac.mil/Resources/

For Section II, Block 22 - If the contractor employee signs and the DD Form 1172-2 it is then forwarded by the contractor. This provides verification for the employee information. If the contractor is submitting a DD Form 1172-2 for him/herself (e.g., the owner), with no higher authority above them for verification, then the signature in Block 22 must be notarized to verify identity.

2. The contractor forwards the DD Form(s) 1172-2 via hand-carry, secure mail, or encrypted email to (NOTE: The contractor may forward these forms individually or as a group):

• The Contracting Officer’s Representative (COR) for the contract if a COR was designated.

• The Contracting Officer (CO) for the contract if no COR was designated.

• Each contractor employee must verify his/her account information upon receipt of an email from the Government containing a username and password for the Trusted Associate Sponsorship System (TASS). The web link for TASS is included in the email.

3. Each contractor employee will receive an email via TASS when his/her account has been approved. The email will notify the employee to obtain a Government-issued CAC from the nearest Real-Time Automated Personnel Identification System (RAPIDS) office.

The email will also provide a link that identifies the locations of RAPIDS offices.

4. Each contractor employee shall obtain his/her issued CAC from the RAPIDS office.

5. The contractor, within one (1) business day of issuance, provides written notice via email to the COR (or the CO, if no COR was designated) for each contractor CAC issued identifying the contractor employee’s name, the date of issuance, and the date of expiration of the CAC. This notification may be made individually for each contractor

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Attachment I - Performance Work Statement https://www.cac.mil/Resources/ employee or together for a group of contractor employees.

6. The contractor establishes procedures to control and account for Government-issued contractor CACs at all times, to include the following:

• Ensure contractor CACs issued for this contract are only used for the purpose of performing under this contract.

• Ensure contractor CACs are secured in a manner that precludes unauthorized use and that recognizes the CAC is the property of the U.S. Government.

• Ensure contractor employees do not abuse or place holes in their CACs.

• Ensure contractor employees do not display their CACs in public.

7. If a contractor CAC is lost or stolen:

• The contractor employee shall immediately notify the contractor that the contractor CAC has been lost or stolen.

• The contractor shall immediately notify the COR (or the CO, if no COR was designated), detailing the circumstances regarding the lost or stolen contractor CAC, as follows:

• In person, followed within one (1) business day by a written notice via email, or

• In writing, via email, or

• By telephone, followed within one (1) business day by a written notice via email.

• The contractor shall report the lost or stolen CAC card to the local DLA

Police/host installation police, who will provide the contractor a police report. If there are no local DLA Police/host installation police, or no police report is provided, the contractor shall provide information to the COR/CO, as applicable, detailing the circumstances of how the CAC was lost or stolen. The COR/CO will provide a memorandum for the contractor employee to support issuance of new CAC.

• The contractor has the contractor employee bring the report/memorandum to the nearest RAPIDS office. If the CAC can be reissued within 24 hours, bring the report/memorandum to the nearest CAC office for reissue. If the CAC cannot be reissued in 24 hours, follow the steps for a new CAC, beginning at Step 1.

8. If the expiration date for a contractor CAC is prior to completion of the contract and the contractor employee is to continue working under the contract and still requires a CAC, the contractor:

• Notifies the COR as follows:

• In person, followed within one (1) business day by a written notice via email, or

• In writing, via email, or

• By telephone, followed within one (1) business day by a written notice via email.

• No less than two (2) weeks prior to the current CAC’s expiration date, completes and complies with the steps above beginning with Step 2 for issuance of a new contractor CAC for the employee.

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• Brings the expiring CAC to the RAPIDS office for turn-in and receives new

CAC.

• Notifies the COR once a new CAC has been issued.

9. The contractor/contractor employee turns in any found CACs immediately, via hand-carry, to the nearest Federal law enforcement office.

10. The contractor immediately collects all contractor CAC(s) from the contractor employee(s) at:

• Contract completion or termination

• Termination/Reassignment of an employee (this includes any reason the employee is no longer working for the contractor under the contract or otherwise no longer requires a CAC)

11. The contractor:

• For contract completion or termination – within one (1) business day after collecting the contractor CAC(s), arranges for turn-in via one of the below methods:

• If the COR/CO is co-located or near enough that in-person transfer of CACs can be arranged, the contractor:

• Arranges to meet the COR (or the CO, if no COR was designated) to turn-in the collected contractor CAC(s).

• Hand-carries all collected contractor CACs for turn-in to meet the COR (or the CO, if no COR was designated).

• Completes and signs the Government-Issued Contractor CAC Turn-In Receipt with the COR (or the CO, if no COR was designated). The contractor is provided a copy of the receipt.

If in-person transfer of CAC cannot be arranged, the contractor:

• Sends, via certified mail, the CACs to the COR/CO. The contractor includes in the package the Government-Issued Contractor CAC Turn-In Receipt, with signed acknowledgement of contractor turn-in.

• Notifies COR/CO that CACs have been sent via certified mail.

• Receives a completed copy of the receipt from the COR/CO once the

COR/CO has received the CACs.

For termination/reassignment of an employee:

• Immediately notifies the COR (or the CO, if no COR was designated) that the employee is no longer working for the contractor under the contract or otherwise no longer requires a CAC, as follows:

• In person, followed within one (1) business day by a written notice via email, or

• In writing, via email, or

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• By telephone, followed within one (1) business day by a written notice via email.

Follow the turn-in procedures above for contract completion or termination, as applicable.

Contractor Reporting Requirements: The contractor is required to submit, on a monthly basis, to the COR (or the CO, if no COR was designated) a report of all employees working on the contract who have been issued CAC cards and a verification of whether each listed employee still requires a CAC. The report must note where changes have occurred (additions or deletions) since the previous month. Contractor employees who already have a CAC related to another DLA or DoD contract must be included in the monthly report. Contractor shall note the issuing organization and the CAC expiration date. Contractor is still responsible for notifying the COR/CO when the individual is no longer working under the subject contract.

The above procedures have been established as a DLA security measure. Contractors are advised that failure to comply with any of the above requirements will be considered a violation of the terms and conditions of the contract and the Contracting Officer may take action to remedy such violations. Specifically, failure to safeguard, follow these procedures, including reporting requirements, or turn-in CACs within the established timeframes may result in the following actions, which are in addition to other actions the Contracting Officer may take under governing law and regulation and the terms and conditions of the contract:

• Immediate work stoppage (issuance of a stop work order), not to be lifted until resolution of CAC issue

• Disapproval of invoices and delay of payment

• Withholding of final payment (in accordance with FAR 52.204-9)

• Documentation of CAC Non-Compliance in the Contractor Performance Assessment Reporting System (CPARS)