ATTACHMENT I - PWS.pdf

PERFORMANCE WORK STATEMENT

FOR

DEFENSE FUEL SUPPORT SERVICES IN

HACHINOHE, JAPAN (UY7217)

1 Description and Purpose of Required Services

1.1 Requirement

1.2 Area of Consideration

1.3 Storage Tank Requirement

1.4 Grade of Service

1.5 Physical System Requirements

1.6 Allowed Throughput

1.7 Inventory Control Records and System Records (Inventory Data Input)

2 General Information

2.1 Product Receiving Requirements

2.2 Product Shipping Requirements

2.3 Custody and Risk of Loss

2.4 Product Quality Surveillance

3 Ancillary Facilities

3.1 Filtration

3.2 Laboratory Services

4 Contractor Manpower Reporting

5 Training Requirements

6 Deliverables

6.1 Contractor Detailed Plans

7 Contract Clauses

8 Best Commercial Practices

Appendices

A Quality Assurance Surveillance Plan (QASP) B Contractor Evaluation/COR Report C Common Access Card (CAC) Procedures

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COCO Storage Services Hachinohe, Japan

1. Description and Purpose of Required Services

1.1 Requirement: The Defense Logistics Agency (DLA) Energy requires Defense Fuel Support Point (DFSP) services to the U.S. Fleet Logistics Center (FLC) Hachinohe, Japan for a period of one five-year base period. This requirement is to obtain Contractor Owned, Contractor Operated (COCO) fuel facilities with the capability to receive, and store 59,000 barrels of Jet A1/JP8, ship JP8 by inter- connected pipeline to the U.S. Fleet Logistics Center (FLC) Hachinohe, Japan. The requirement is for a period of 5-years from date of award plus 6-month option period at the end of the contract.

1.2 Area of Consideration: The area limited to Hachinohe petroleum industrial area, Hachinohe Japan, the contractor must be able to connect directly via pipeline to existing US Government owned petroleum storage facilities located in the Hachinohe petroleum industrial area.

1.3 Storage Tank Requirements: A minimum of two tanks interconnected to provide the capability of re-circulating/filtering of products between tanks and isolated from other facilities and product(s) handled within the tank farm is required. All storage must be available at a single port, upon award. The storage tanks and facilities must meet the minimum requirements of the current API standards, the NFPA codes, and all state and local and/or all comparable Japanese national laws, regulations, etc., applicable to tanks and facilities of the type to be provided. Cone roof tanks with internal floating pans are preferred however, floating roof tanks will be acceptable. Floating roof tanks will be equipped with roof drains, which prevent water from coming into contact with the fuel as well as slotted “standpipes” to facilitate the accuracy of manual gauging. The tanks shall be interconnected so as to provide the capability of transferring/filtering product between tanks. The tanks and facilities will consist of one dedicated system capable of receiving, storing, and shipping one grade of Government-owned product. Each tank of the product system will be equipped for the effective removal of accumulated free water via independent suction. An isolated system in place of the preferred dedicated system is acceptable provided the requirements of DLA Energy L116.01

(d) are met.

NOTE: The contractor must provide in their technical proposal a single table that provides all data on proposed storage tanks regarding tank dimensions, tanks bottom types, and calibrated capacity to include safe fill level to include type and historical calibration data for a minimum of three years of any automated gauging systems used in the offered tank, if manual hand gauging is the method of reporting inventory it must be identified.

1.4 Grade of Service: The contractor shall receive and store aviation turbine fuel either. JP-8 (current product) or change to JA-1 when instructed by DLA Energy.

1.5. Physical System Requirements: Storage and handling facilities capable of receiving, storing, filtering, protecting, and shipping U.S. Government-owned petroleum product. The capability to transfer product between storage tanks on a 24 hour per day, seven day per week basis is required. When needed, can be either Contractor or Government directed, the Contractor shall transfer product between tanks to consolidate types or grades in preparation for receipts or issues at no additional cost to the government.

The responsibility for preventing commingling or contamination during transfers rests completely with the Contractor. The facility must be equipped with illumination to allow receipt/issue operations during of darkness.

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NOTE: In addition to the above data, the potential contractor will be required to provide in their technical proposal a table showing their tank cleaning and inspection data (Reference requirements contained in L116.01 DATA REQUIREMENTS (STORAGE) (DLA ENERGY JAN 2013) and DLA Energy Quality Assurance Provision (QAP) E18 INSPECTION AND CLEANING

OF BULK PETEROLEUM STORAGE TANKS (DLA ENERGY FEB 2017)

1.6. Allowed Throughput: The U.S. Government will be entitled to 600,000 barrels of total throughput, for each 12-month contract period, hereafter referred to as allowed throughput.

Note: Throughput is defined and calculated by adding the total number of barrels for each product type received and shipped in a 12 consecutive month period divided by 2 starting on contract being placed on revenue after receiving the initial fill and resetting on the anniversary date each following year, not to include the final shipment.

NOTE: Throughput does not include initial fill or final shipment. All costs shall be included in the contract price.

1.6.1 Initial Fill and Final Shipment: The U.S. Government will be entitled to initial fill during year 1 of CLIN 0001 of the performance period and final shipment during the final year of CLIN 0001 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 safe fill capacity for each product.

• Final shipment is defined as all issues required withdrawing 100% of the awarded safe fill capacity.

1.7 Inventory Control Records and System Records (Inventory Data Input): The contractor shall follow the physical inventory management procedures specified in applicable directives and contract clauses in accordance with DoD 4140.25M and DLA ENERGY Class IIIB Supply Chain Management Interim Policy and Procedural Guidance. Fuel inventory management involves a full range of actions associated with the order, requisition, receipt, transfer, issue, physical inventory, and storage of fuel and additives. The contractor shall process inventory and accounting data of government-owned product utilizing DLA Energy’s web-based application “Fuels Manager Defense” (FMD). Refer to contract text I119.04, INVENTORY CONTROL RECORDS AND SYSTEM OF RECORDS (DLA ENERGY AUG 2017) 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.

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

• Contractor shall verify the accuracy of any ATG used on receipt tanks monthly and ATG used for inventory reporting quarterly.

• The accuracy verification will be accomplished by comparing the ATG measurements to manual measurements. The contractor may use the DLA Form 2026 to document the

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• The Contractor shall have the ATG calibrated whenever the difference between the ATG and Manual measurements exceed 3/16th inch (or 4MM).

To process FMD inventory data, the contractor is required to obtain a Common Access Card (CAC) (refer to Appendix A) or, as an alternative, obtain an External Certificate Authority (ECA).

Authorized users who are not eligible for the CAC should refer to https://iase.disa.mil/pki/eca/Pages/index.aspx for current information on obtaining ECA provided certificates. The Contractor is responsible for all costs associated with this effort.

1.7.1 Inventory access: The contractor shall ensure the Government has full access to its complete inventory. The DLA Energy Quality Assurance Representative/Contracting Officer’s Representative (QAR/COR), and other DLA Energy representatives will be provided access to FMD onsite, inventory documents, and storage tanks as needed.

1.7.2 Fuels Management Defense (FMD) ADP Equipment: Contractor furnished computer system shall meet the current commercial standards for a computer system capable of accomplishing the data reporting and records keeping required by FMD; maintaining the data collection and records keeping associated with product quality surveillance (i.e., product analysis and testing reports); and the document collection and records keeping associated with the Contractors preventive maintenance program. The Contractor is required to input inventory data of Government-owned product directly into FMD utilizing DLA Energy web-based applications. DLA Energy may provide training to a minimum of two Contractor personnel. See contract text I119.04, INVENTORY CONTROL RECORDS AND SYSTEM OF RECORDS (DLA ENERGY AUG 2017) for additional information regarding the Government’s inventory data requirements.

2.General Information:

2.1 Product Receiving Requirements: The Contractor’s facilities shall be capable of receiving U. S.

Government-owned petroleum product via tanker/barge on a 24 hours per day, seven day per week basis at pumping rates compatible with the mode of transportation tendered 2000 barrels per hour for barges and 8,000 barrels (for tankers). The facility will be required to have a tanker/barge berth and access to the open sea.

• Notification: The Government shall give notice to the Contractor of scheduled product receipts. Receipt notification shall include the estimated quantity, mode of delivery, projected delivery date, shipment source, grade or type of product, and any special instructions.

NOTE: Planning Factor for Receiving Requirement is a range of 550,000 BBLS to 600,000 BBLS per 12-month period regardless of receiving mode.

2.1.1 Dock or Pier Requirements: The contractor’s dock or pier facilities shall be capable of receiving and berthing tankers/barges not to exceed 35,000 dead weight ton (DWT) vessels and a draft of 21 feet at mean low water. The contractor will maintain a minimum water depth of 25 feet at mean

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COCO Storage Services https://iase.disa.mil/pki/eca/Pages/index.aspx low water in all passages or channels from the ocean to the dock or pier. However, the Government recognizes jurisdiction of the Hachinohe Municipal Port Authority, and that the contractor's liability with regard to maintenance of desired berth and draft is limited to its "good faith" effort in advocating the government's desired specifications before the port authority. The contractor shall provide a detailed description of any port restriction/requirements and harbor or other fees associated with their proposal, along with all height restrictions from ships manifold to the waterline. The contractor’s dock or pier shall have sufficient lighting to allow operations in hours of darkness.

NOTE: The contractor is required to provide, as part of its technical proposal, a detailed schematic of the berthing and mooring facilities showing the minimum and maximum capabilities. Include any planned or proposed dredging schedules.

2.2 Product Shipping Requirements: The Contractors facility shall be capable of Shipping by contractor provided pipeline to the U. S. Fleet Logistics Center (FLC) Hachinohe, Japan. A pumping rate of 2,000 barrels per hour is desired; however, facilities with lesser capabilities will be considered.

NOTE: Planning Factor for Shipping Requirement is a range of 550,000 BBLS to 600,000 BBLS per 12-month period regardless of receiving mode.

2.2.1 Tank Truck: The Contractor’s facilities shall be capable of shipping services for (Aviation Turbine Fuel Grade Jet A1/JP8). (Trucks to be provided by 3rd party) capable of allowing for returned US Government product to be returned to stock as required. contractor is responsible for providing all equipment up to and including the connections to the tank trucks and all operations and maintenance.

2.2.1.1 Hours of Operations: Load/offload tank trucks during normal business hours 0800 ~ 1700 Monday through Friday and Provide afterhours services within 4 hours of notification.

2.2.1.2 Filtration: Contractor shall provide Filtration of all Outbound products into truck.

2.3 Custody and Risk of Loss: Custody and risk of loss is as stated below unless otherwise agreed upon.

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

b. Cross-Island Pipeline Issue. Custody and the risk of loss of product issued by cross-island pipeline shall pass from the Contractor to the U.S. Government when the fuel passes the first permanent valve or tie in flange leaving the contractor pipeline and entering the U. S. Fleet Logistics Center (FLC) Hachinohe, Japan Military Storage Facility.

c. Tank Truck Shipment: 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 first permanent hose connection.

2.4 Product Quality Surveillance: The contractor will be responsible for maintaining the quality of the Government-owned product stored at the Contractor’s facility in accordance with latest revisions of

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MIL-STD-3004 DEPARTMENT OF DEFENSE STANDARD PRACTICE: QUALITY

ASSURANCE/SURVEILLANCE FOR FUELS, LUBRICANTS AND RELATED PRODUCTS. No petroleum products shall be received or shipped without first determining and confirming conformance with product quality requirements. No conveyance/container shall be loaded until it is inspected by qualified contractor personnel and deemed suitable to carry the intended product. Products shall be shipped on a first-in, first-out basis unless otherwise approved or directed by the Quality Assurance Representative/Contracting Officers Representative (QAR/COR). Anytime product is received into a tank, the tank’s contents shall be suspended from issue pending quality conformance sampling and testing. The Contractor shall ensure that certificates of quality conformance (test reports) are maintained on file for all on-hand fuel stocks.

2.4.1 Contaminated Product Reimbursement: The contractor shall reimburse the U.S. Government the cost of the product and the cost of disposal or remediation for all products that becomes contaminated while at the contractor’s facility due to contractor fault or negligence.

2.4.2 Off-Specification Product Reporting: The contractor shall report immediately to DLA ENERGY-Japan or the QAR, 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. Suspected off-specification product will be isolated and shall not be released for shipment until authorized by DLA Energy Japan or the QAR.

2.4.3 Laboratory Testing Requirements: The contractor is required to perform laboratory testing in accordance with the latest revisions of MIL-STD-3004, 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 either have Type C level testing capability at its facility or subcontract to perform tests. The contractor must provide very detailed information in its technical proposal and allow DLA Energy to evaluate for final approval. Information to include at a minimum:

laboratory name, location, testing capabilities, employee proficiency, testing turn-around time and POCs.

a. The contractor shall be capable of taking petroleum product sampling in accordance with API

MPMS and/or ASTM D4057 of vessels, barges, tank trucks, storage tanks, 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 specifics: Complies with ASTM D-4306, height not to exceed 9 inches, diameter not to exceed 7 inches, capacity 1 USG, bung plug ¾” with lock-wire hole, carrying handle able to be shipped as hazardous material.

NOTE: The contractor shall be responsible for transporting all petroleum samples from job site to its laboratory or its subcontracted laboratory in accordance with local, state, or federal 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 will 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 will not exceed eight times the number of tanks specified in the contract. The packing, SPE603-23-R-0506

Attachment I - PWS marking, shipping, and the associated costs, will be the responsibility of the contractor. The contractor will provide the government representative samples of any product being stored, shipped, or received under the contract in accordance with the most current version of MIL-STD-3004, Table IX Minimum Sampling and Testing Requirements for Petroleum Products and ASTM D4057, STANDARD PRACTICE FOR MANUAL SAMPLING OF PETROLEUM AND PETROLEUM

PRODUCTS (API MANUAL OF PETROLEUM MEASUREMENT STANDARDS (MPMS),

Chapter 8.1).

NOTE: All Laboratory Testing, Samples, and Additional Samples, Shipping costs and fees shall be included in the contractor’s monthly price.

NOTE: Planning Factor for Laboratory Testing Requirements is a range of 400,000 BBLS to 600,000 BBLS per 12-month period.

3. Ancillary Facilities:

All Ancillary Facility costs shall be included the contractor’s monthly price.

3.1 Filtration: The contractor’s facility must include Filtration required during receipt, shipping and tank-to-tank transfers as outlined in the most current version of API Publication 1581, Specifications and Qualification Procedures -Aviation Jet Fuel Filter Separator.

NOTE: Scheduled/Routine filter replacement is at contractor’s expense. All costs for filters, disposal, labor, and supplies will be included in the firm fixed contract price.

4. 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. Fuels Management Defense (FMD-9) course: The Energy Account Transaction

Processor/Recorder and his alternate shall complete the Fuels Management Defense (FMD-

9) course and shall obtain a Common Access Card (CAC) in accordance with Appendix A of the PWS or as a minimum obtain an External Certificate Authority (ECA) as required in DLA Energy Interim Policy P-7, P-26 and P-2. Authorized users who are not eligible for the CAC should refer to https://iase.disa.mil/pki/eca/Pages/index.aspx.

b. RO/TM/PA Computer Base Training (CBT) course: Terminal Manager(s) – TM and

Inventory Manager (s) shall complete the training as required in DLA Energy P-7, P-26 and P-32. Upon appointment, TMs, and PAs shall first complete the RO/TM/PA Computer Base Training (CBT) course and then, within 90 days of appointment, attend the Joint Terminal Managers & Responsible Officers Course. Additionally, the TM and PA may attend the formal training course after three years in order to remain current on DLA Energy and DoD policy and application changes.

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COCO Storage Services https://iase.disa.mil/pki/eca/Pages/index.aspx

NOTE: DLA provides a course of instruction at a Training Facility in Alexandria, VA or at www.fuelstraining.com. The duration of the training is as follow: three weeks for FMD-9 for accountants and one week for RO/TM/PA. The contractor shall factor in all travel and any other expenses for their personnel to attend these courses in the contract firm fixed price.

5. DELIVERABLES

5.1 Contractor Detailed Plans: Following contract award, the contractor will have 60 days, unless otherwise indicated, to submit the following plans to the Contracting Officer for review and acceptance.

These plans must be reviewed by the DLA Energy COR/QAR prior to submitting to the Contracting Officer. The plans are considered dynamic documents and will be updated, as required, throughout the contract period.

a. Contract Compliance Plan (CCP): The contractor is responsible for ensuring compliance with all 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 will be made available for government review, upon request, at any time during the contract performance period. The CCP may be used by the COR for monitoring and assessing contract performance. The CCP will address procedures for corrective actions including the resolution of Corrective Action Reports (CARs) and Quality Deficiency Reports (QDRs) generated by the Contracting Officer’s Representative (COR) within 30 days after award the contractor will submit the CCP to the COR for review prior to forwarding to the Contracting Officer for final approval. The CCP will at a minimum shall include the following performance-based plans.

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

2. Record keeping and reporting procedures pertaining to administrative requirements.

3. Bulk storage operations.

4. Facility/equipment maintenance.

i. The CCP will include time specific checklists for evaluation of all operational and preventive maintenance requirements.

b. 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 those areas identified by QAP E1.11 (QUALITY CONTROL PLAN (DLA ENERGY MAR 2000); such as, sampling, testing methods, equipment, documentation of tests, records keeping, and actions to be taken in the event of unacceptable test results. The plan will describe how product quality surveillance data will be documented and reported. The plan will identify responsible parties for the functions. Written procedures must be clear and concise as to: what is done, where it's done, when it's done, how it's done, and who (position) does it. They must describe, in proper sequence, how contract compliance is achieved. For example: receipt of additives prior to blending, blending before sampling, sampling before

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COCO Storage Services http://www.fuelstraining.com/ testing, testing before release of product for shipment, etc. They must describe (and include) only those functions pertinent to contract performance and compliance. They must be reviewed upon initial and succeeding contract awards to assure the technical and procedural requirements are adequately described. They must be dynamic (i.e., modified or extended as changes in technical or procedural requirements occur). This plan will be submitted to the QAR prior to the first receipt of Government-owned product, or within 30 days, whichever occurs first, for review prior to being forwarded to the Contracting Officer for review and acceptance.

The required QCP will be effective at the start of the contract performance period.

6. Contract Clauses: All standard contract clauses that apply to Contractor Owned Contractor

Operated services are applicable to this requirement.

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.

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APPENDIX A

CONTRACTOR INSTRUCTIONS

Performance under this contract may require the contractor to obtain a Common Access Card (CAC).

If CACs are issued under this contract, the contractor will complete and comply with the following steps to obtain, control, and turn-in Government-issued CACs, as well as establish procedures to always control and account for contractor CACs. 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.

Common Access Card (CAC) Procedures

1. The contractor has each contractor employee requiring a CAC complete DLAH Form 1728 in accordance with Enclosure 3; 2a. Note: Contractors do not complete blocks 11, 14, 15.a. or 15.b.; these are completed by the COR.

2. The contractor hand carries the DLAH 1728 form(s) or sends via secure mail, or encrypted email to (NOTE: The contractor may forward these forms individually or as a group to):

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

b. The Contracting Officer (KO) for the contract if no COR was designated.

3. Each contractor employee must verify their 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.

4. Each contractor employee will receive an email via TASS when their 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.

5. Each contractor employee will obtain their issued CAC from the RAPIDS office.

6. The contractor, within one business day of issuance, provides written notice via email to the COR (or the KO, 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 employee or together for a group of contractor employees.

Note: This requirement is not applicable when the same is person is performing both COR and TA roles.

7. The contractor always establishes procedures to control and account for Government-issued contractor CACs – to include the following:

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

b. 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.

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

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

8. If a contractor CAC is lost or stolen:

a. The contractor employee will immediately notify the contractor that the contractor CAC has been lost or stolen.

b. The contractor will immediately notify the COR (or the KO, if no COR was designated), detailing the circumstances regarding the lost or stolen contractor CAC, as follows:

(1) Face-to-face, followed within one business day by a written notice via email, or

(2) In writing, via email, or

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

c. The contractor will 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 will provide information to the COR/KO, as applicable, detailing the circumstances of how the CAC was lost or stolen. The COR/KO will provide a memorandum for the contractor employee to support issuance of new CAC.

d. 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.

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

a. Notifies the COR as follows:

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b. No less than 10 business days before 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.

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

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

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

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

a. Contract completion or termination

b. 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)

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

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

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

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

(3) Completes and signs the Government-Issued Contractor CAC Turn-In Receipt with the

COR (or the KO if no COR was designated). The contractor is provided a copy of the receipt.

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

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

(2) Notifies COR/KO that CACs have been sent via certified mail.

(3) Receives a completed copy of the receipt from the COR/KO once the COR/KO has received the CACs.

13. For termination/reassignment of an employee:

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a. Immediately notifies the COR (or the KO, 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:

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

14. Contractor Reporting Requirements: Every month, validate the contractor CAC log with the contractor for accuracy.

15. 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:

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

b. Disapproval of invoices and delay of payment

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

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

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