Attachment I - PWS.pdf

PERFORMANCE WORK STATEMENT

FOR

DEFENSE FUEL SUPPORT POINT SERVICES

Location

Fujairah, UAE

As of June 5, 2024, 2024

SPE603-25-R-0507

Attachment I - PWS

COCO Storage Services Port of Fujairah, UAE

Performance Work Statement (PWS) For

Defense Fuel Support Point Services Fujairah, UAE

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

1.10 Local Clearances/National Notification Requirements

1.11 Bill of Lading

1.12 Product Quality Surveillance

2 General Information

2.1 Custody and Risk of Loss

2.2 Billing

2.3 Product Quality Surveillance

2.4 Ancillary Facilities

2.5 Quality Assurance Representative (QAR) Support

2.6 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

SPE603-25-R-0507

Attachment I - PWS

1. DESCRIPTION AND PURPOSE OF REQUIRED SERVICES

1.1 Requirement: This requirement is to obtain Contractor Owned, Contractor Operated (COCO) fuel services with the current capability to receive, store, protect and ship two grades of U.S. government owned product Turbine Fuel Aviation, Grade JP5 and Fuel Naval distillate, Grade F76 in the Port of Fujairah, UAE. Terminal must have direct unrestricted access 24-hours a day/ 7-days pe week (24/7) to deep-water port facilities connected to an existing commercial petroleum storage facility. All storage must be available upon award at a single facility.

All vendors and subcontractors, U.S. and non-U.S. based, must be registered in the Joint Contingency Contracting System (JCCS) to be considered for contract awards in the U.S. Central Command (CENTCOM) Area of Operation (AOR). Instructions for account registration and training can be found at www.jccs.gov. Registration must be completed by the deadline for submission of offers and the assigned JCCS number shall be submitted with the proposal package.

1.2 Area of Consideration: Port of Fujairah, United Arab Emirates (UAE) area.

1.3 Storage Capacity/Tank Requirements: Storage (fill capacity) of 440,000 barrels of Fuel Naval Distillate, Grade F76, and 325,000 barrels Aviation Turbine Fuel, Grade JP5/F44, is required. A minimum of two tanks per product interconnected to provide the capability of re-circulating/filtering of products between tanks within the tank farm, isolated from other facilities and products handled within the tank farm, is required. All storage must be available and operational upon award at a single facility.

1.4 Grades of Service: Two grades of product:

• Aviation Turbine Fuel Grade JP5/F44

• Fuel Naval Distillate Grade F76

1.5 Physical System Requirements: Storage and handling facilities capable of receiving, storing, filtering, protecting, and shipping U.S. Government-owned petroleum products.

1.6 Allowed Throughput: The U.S. Government will be entitled to 600,000 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 Excess Throughput: For volumes in excess of the allowed throughput under the Provision for Excess Throughput. Excess throughput charges will be calculated by adding the total number of barrels received and shipped in a 12-month period above the allowed throughput quantity.

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.

SPE603-25-R-0507

Attachment I - PWS

COCO Storage Services http://www.jccs.gov/

Initial fill is defined, as all receipts required filling the storage tanks to 100% of the awarded fill capacity for each product. Final shipment is defined as all shipments required withdrawing 100% of the awarded fill capacity.

1.7 Inventory Control Records and System of Record Requirements: The Contractor shall follow the physical inventory management procedures specified in applicable directives and contract texts and 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(s) 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 Governments inventory data requirements. The Contractor shall:

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

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

• If automated tank gauges (ATG) are used to report inventory volumes, ensure ATGs are calibrated annually and verified for accuracy against manual gauge readings monthly with the results recorded and filed.

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

• Ensure all actions are documented, verified, and annotated on applicable source documents IAW Department of Defense Manual 4140.25 and DLA Energy class IIIB Supply Chain Management Interim Policy and Procedural Guidance. The source documents shall be complete, accurate, and available/provided within 72 hours of request.

Refer to PWS section 3 Training Requirements for APSR Fuels Management Defense (FMD-9)) 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

SPE603-25-R-0507

Attachment I - PWS

COCO Storage Services https://public.cyber.mil/

Representative (QAR/COR), Property Administrator (PA), and other DLA Energy representatives will be provided access to APSR onsite during Contractor normal working hours.

1.7.2 APSR Automated Data Processing (ADP) Equipment: The 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 the APSR (FMD), 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: Contractor’s facilities shall be capable of receiving U. S.

Government-owned petroleum product via Marine Tanker/Barge. Marine Tanker/Barge:

facilities shall be capable of receiving U.S. Government Owned product via ocean going tanker/barges or U.S. Navy Fleet Oilers on a 24 hours per day, 7-days per week basis at pumping rates compatible with the mode of transportation tendered 2,000 barrels per hour (for barges) and 8,000 barrels (for tankers and U.S. Navy Vessels).

Notification: The Government shall give notice to the Contractor of all scheduled product receipts. Receipt notification shall include the estimated quantity, mode of delivery, projected delivery date, shipment source, grade, and any special instruction. When needed, as determined by either Contractor or US Government, 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 of different fuel grades or contamination during transfers rests completely with the Contractor.

Planning Factor for Receiving Requirement is a range of 10 to 30 tanker/barges per 12-month period.

1.9 Product Shipping Requirements: Marine Tanker/Barge, Naval Vessels, and trucks:

1.9.1 Marine Tanker/Barge, Naval Vessels: The contractor’s facilities shall be capable of shipping U.S. Government-owned petroleum products via Tanker/Barge: U. S. Government-owned petroleum product via tanker/barge or U.S. Navy Fleet Oilers and other various U.S.

Navy Vessels on a 24 hours per day, 7-days per week basis at pumping rates compatible with the mode of transportation tendered that being 2,000 barrels per hour (for barges) and 8,000 barrels (for tankers) with a minimum of 72 hours’ advance notice.

Planning Factor for Marine Tanker/Barges is a range of 6 to 10 vessels per 12-month period.

Planning Factor for Naval Vessels is a range of 0 to 25 per 12-month period.

1.9.2 Tank Truck: The contractor is responsible for loading and shipping JP5 via (third-party provided) tank trucks, 24 hours per day, seven days per week within 48 hours’ advance notice.

Contractor shall provide inspection services of the tank trucks prior to loading for suitability of use and provide all required documentation services to legally transport US Government-owned product within the host nation. When required, Contractor shall provide quality and administrative services for Tank Truck off-loading services for US Government-owned

SPE603-25-R-0507

Attachment I - PWS product being returned to stock by truck. Shall comply with all applicable Local Host Nation and local environmental laws and regulations based upon the type of product being off-loaded.

Planning Factor for tank trucks is a range of 0 to 10 tank trucks per 12-month period.

1.10 Local Clearances/National Notification Requirements: The contractor shall be responsible for obtaining all required Country, National, local notifications, clearances, and filing, and any and all costs/fees required for the purposes of receiving and issuing US Government owned products at their facilities.

1.11 Bill of Lading: 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 product. Bills of lading, routing instructions, and transportation assistance shall be furnished by the DLA Energy-Middle East, Bahrain regional office.

1.12 Product Quality Surveillance: The Contractor shall be responsible for quality of the Government- owned Aviation Turbine Fuel Grade JP5/Fuel Naval Distillate Grade F76 stored at the Contractor’s facility IAW the most current version of MIL- STD-3004-1, DEPARTMENT OF DEFENSE STANDARD PRACTICE: QUALITY ASSURANCE FOR

BULK FUELS, LUBRICANTS ANDRELATED 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 the DLA ENERGY Middle East Bahrain regional office. Any time 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) are maintained on file for all on-hand fuel stocks. All Laboratory Testing, Samples, and Additional Samples, Shipping costs and fees shall be included in the contractor’s monthly price.

1.12.1 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 becomes contaminated while at the contractor’s facility due to the contractor’s fault or negligence.

1.12.2 Off-Specification Product Reporting: The contractor shall report immediately to the DLA ENERGY Middle East Bahrain regional office or the QAR/COR, all receipts or on hand stocks that fail to meet product quality for receipt, storage, or shipment in accordance with MIL-STD-3004 (Latest Edition). Suspected off-specification product will be isolated and shall not be released for shipment until authorized by DLA Energy Middle East or the

QAR.

1.12.3 Laboratory Testing Requirements: Contractor shall perform sampling and laboratory testing in accordance with the most current version of MIL-STD-3004-1, Table IX Minimum Sampling and Testing Requirements for Petroleum Products, and sampling in accordance with

SPE603-25-R-0507

Attachment I - PWS

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 have that level of testing performed offsite. The Contractor must provide detailed information in its offeror submission package (OSP) when subcontracting for the required testing to allow DLA Energy to evaluate for final approval. Information in OSP to include at a minimum: laboratory name, location, testing capabilities, employee proficiency, testing turn-around times and POCs.

1.12.4 Sampling: 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 applicable to the 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: compliance 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, and carrying handle able to be shipped as hazardous material.

1.12.4.1 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, 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 MIL-STD- 3004 (latest edition) 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).

2. GENERAL INFORMATION

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

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

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

2.1.3. Tank Truck Issue. Custody of product issued to tank truck and risk of loss shall pass from the contractor to the carrier when the fuel passes the tank truck’s first permanent hose

SPE603-25-R-0507

Attachment I - PWS connection.

2.2 Ancillary Facilities: The facilities to be furnished under this requirement shall include, at a minimum, the following:

2.2.1 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) 48,633MT, length overall (LOA) 600.4 feet (183M), and 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.

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 major maintenance and/or dredging schedules.

2.2.2 Tank Truck Fill Stand Facility: The contractor’s truck fill stand facility shall be capable of loading and shipping one tank truck at a rate of 1,000 gallons per minute for JP5, on a 24-hour per day, 7-day per week basis, and all facility operations and maintenance. The facility shall also be capable of tank truck offloading to return product to storage as necessary. Contractor’s tank truck loading facilities shall comply with all applicable Local Host Nation regulations, and local environmental laws and regulations based upon the type of product being off-loaded.

2.2.3 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 price.

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

2.2.5 Tanks: All tanks and facilities offered must meet the minimum requirements of the current American Petroleum Institute (API) and Energy Institute (EI) standards, National Fire Protection Association (NFPA) codes, and/or all federal, state, and United Arab Emirates (UAE) local laws and/or regulations applicable to tanks and facilities of the type to be provided. The tanks will be interconnected to provide the capability to transfer product between tanks. Each storage tank will be equipped with a fuel/water separation system for collection of all product or water dispensed from its bottom water drain(s). Cone roof tanks with internal floating pans are preferred; however, floating roof tanks will be considered if they are equipped with roof drains which prevent water from coming into contact with the product to be stored.

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

SPE603-25-R-0507

Attachment I - PWS requirements contained in Contract clause 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).

NOTE: The prospective contractor must provide in their technical proposal a single table that provides all data on proposed storage tanks, including tank dimensions, tanks bottom types, calibrated capacity, safe fill level, and historical calibration data for a minimum of three years of any automated gauging systems used in the offered tank.

3. 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, at 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 within 90 days of appointment and attend the Joint Terminal Managers & Responsible Officers Course within 120 days of appointment. 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: 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

SPE603-25-R-0507

Attachment I - PWS

COCO Storage Services Port of Fujairah, UAE https://cyber.mil/ https://www.fuelstraining.com/ https://www.fuelstraining.com/ https://www.fuelstraining.com/ prior to submitting to the Contracting Officer. The plans are considered dynamic documents and will be updated, as required, throughout the contract period.

4.1.1 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 shall submit the CCP to the COR/QAR, located in the DLA Energy - Middle East, Bahrain Regional Office for review and comment prior to forwarding to the Contracting Officer for final approval. The CCP, at a minimum, shall be made available for Government review, upon request, at any time during the contract performance period. The CCP may be used by the COR/QAR for monitoring and assessing contract performance. 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.

4.1.2 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 IAW ENERGY QAP E1.11 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.

6. 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.

SPE603-25-R-0507

Attachment I - PWS

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

SPE603-25-R-0507

Attachment I - PWS

COCO Storage Services 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.

SPE603-25-R-0507

Attachment I - PWS

• 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

SPE603-25-R-0507

Attachment I - PWS

• 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)

SPE603-25-R-0507

Attachment I - PWS