Attachment I - PWS.pdf

PERFORMANCE WORK STATEMENT

FOR

DEFENSE FUEL SUPPORT POINT SERVICES

Location

DJIBOUTI, AFRICA

As of

July 5, 2024

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Attachment I - PWS

Port of Djibouti, HOA

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 Product Quality Surveillance

1.12 Laboratory Testing Requirements

1.13 Environmental

2 General Information

2.1 Custody and Risk of Loss

2.2 Billing

2.3 Ancillary Facilities

3 Training Requirements

4 Deliverables

4.1 Contractor Detailed Plans

5 Contract Line Items (CLINs)

6. Best Commercial Practices

Appendix A Common Access Card (CAC) Procedures

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1. DESCRIPTION AND PURPOSE OF REQUIRED SERVICES

1.1 Requirement: This requirement is to obtain Contractor Owned, Contractor Operated (COCO) fuel services in the Port of Djibouti, Horn of Africa with the current capability to receive, store, protect and ship two grades of U.S. Government owned product Turbine Fuel Aviation, Grade JP-5/F44 and Fuel Naval distillate, Grade F-76 in the Port of Djibouti, Horn of Africa. 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.

1.2 Area of Consideration: Port of Djibouti, Horn of Africa.

1.3 Storage Capacity/Tank Requirements: Storage (fill capacity) of 402,000 barrels of Fuel Naval Distillate, Grade F-76, and 205,000 barrels Aviation Turbine Fuel, Grade JP-5/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.

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. The technical proposal must also identify whether manual hand gauging is the proposed method of reporting inventory.

1.4 Grades of Service: Two grades of product:

Aviation Turbine Fuel Grade JP-5/F44 Fuel Naval Distillate Grade F-76

1.5 Physical System Requirements: Storage and handling facilities capable of receiving, storing, filtering, protecting, and shipping U.S. Government-owned petroleum products. The capability to transfer product between storage tanks on a 24 hour per day, seven day per week basis is required. Upon award all storage tanks and facilities must meet the minimum requirements of the current API standards, the NFPA codes, and all state, local or comparable Host Nation, national laws and regulations applicable to tanks and facilities of the type to be provided.

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.

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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.

Initial fill is defined, as all receipts required filling the storage tanks to 100% of the awarded fill capacity for each product (JP-5/F44/F-76). Final shipment is defined as all shipments required withdrawing 100% of the awarded fill capacity JP-5/F44/F-76).

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. Except at this time the actual Inventory processing is to be done by the DLA Energy Europe/Africa regional office. Procedures for how the daily inventory will be provided to DLA Energy Europe/ Africa regional office will be issued at time of award. At any time during the contract period the processing can revert to contractor processing 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.

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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 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).

Planning Factor for Receiving Requirement is a range of 4 to 10 tanker/barges per 12-month period.

1.8.1 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.

1.8.2 Documentation: Unless otherwise directed, the Contractor shall prepare and distribute Government bills of lading and all other necessary paperwork, to include customs documentation, if necessary, used during product receipt. Bills of lading, routing instructions, and transportation assistance shall be furnished by the DLA Energy Europe/Africa regional office or Service activity placing orders.

1.9 Product Shipping Requirements: The Contractor’s facility shall be capable of shipping U.S. Government-owned petroleum products via tanker/barge, U.S. Navy Vessels, or other

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authorized Allied flagged naval vessels on a 24-hours per day, 7-days per week basis, at pumping rates compatible with the mode of transportation tendered (minimum 2,000 barrels for barges and 8,000 barrels per hour for tankers).

Planning Factor for 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.

1.9.1 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.

1.10 Local Clearances/National Notification Requirements: The contractor shall be responsible for obtaining all required Host Nation, 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 Europe/Africa regional office or Service activity placing orders.

1.11 Product Quality Surveillance: The Contractor shall be responsible for quality of the Government- owned Aviation Turbine Fuel Grade JP-5/F44/Fuel Naval Distillate Grade F- 76 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 Europe/Africa 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.

1.11.1 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.

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1.11.2 Off-Specification Product Reporting: The contractor shall report immediately to the DLA Energy Europe/Africa 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 Europe/Africa or the

QAR.

1.12 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

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 to include FSII at its facility or subcontract to have that level of testing performed offsite. The packing, marking, shipping, and the associated costs, will be the responsibility of the contractor. 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.

12.1 Laboratory Testing Turn-around Times: The contractor shall ensure that laboratory testing is completed within a maximum of 24 hours of obtaining the sample from the source.

Turn-around time ends when testing results are delivered to QAR/ COR or the DLA Energy Europe/Africa regional office. If testing cannot be completed within the turn-around time the contractor will immediately notify the QAR/COR or the DLA Energy Europe/Africa regional office, and the contracting officer, with a mediation plan to conduct the testing from another source.

1.12.2 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.

1.12.3 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

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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).

1.12.4 Transporting Samples: The Contractor shall be responsible for all costs associated with the packing, marking, shipping, and the associated costs 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 DLA Energy Europe/Africa regional office, in accordance with Host Nation, local national, state, or federal law

1.13 Environmental: The contractor is responsible for compliance with the local laws and regulations of the country. The Contractor shall ensure compliance with Host Nation, local national, state, or federal laws and contract text H19.01. REPORTING AND CONTAINING

OIL SPILLS (OVERSEAS STORAGE) (DLA ENERGY JAN 1982)

1.13.1 Immediately upon discovery: Of a product spill, leak, or seepage, the Contractor shall take all measures available to contain and prevent further spreading of such spill, leak, or seepage. Spill prevention and control measures taken by the Contractor will follow all applicable laws and regulations.

1.13.2 Immediately upon containment: of a product spill, leak, or seepage involving DLA Energy owned product, the Contractor shall notify, by telephone, (1) the Quality Assurance Representative (QAR); (2) DLA Energy Europe/Africa regional office or the QAR/COR; and

(3) the Contracting Officer.

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 Shipment. 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.

2.2 Billing: Unless otherwise directed, the Contractor shall prepare and distribute Government bills of lading and all necessary documentation required in receipt and/or issuing of product.

Bills of lading, routing instructions, and transportation assistance will be furnished by the DLA Energy Europe/Africa regional office and/or Service activity placing orders.

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

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2.3.1 Tanks: 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. The bottom floor of the floating roof that contacts the product must be epoxy coated. 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 Host Nation, local national, state, and 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).

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. In addition to the above data, provide a table showing their tank cleaning and inspection data (Reference 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).

2.3.2 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. The facility will be required to have a deep-water tanker/barge/vessel berth and access to the open sea.

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 to include current dredging charts. Include any planned or proposed major maintenance and/or dredging schedules.

2.3.3 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.

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

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. Terminal Manager (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 in order to remain current on DLA Energy and DoD policy and application changes.

b. The Fuels Accountant shall complete the training as required in DLA Energy P-7, P- 26 and P-32, and shall obtain a Common Access Card (CAC) in accordance with Appendix A and 1.7 of the PWS, or, as a minimum, obtain an External Certificate Authority (ECA). The fuels accountant shall first complete the current Base Level Defense Fuels Management Course. During the six months on the job training period, the fuels accountant must complete the FMD Accounting computer-based training (CBT) and register for a formal course. The fuels accountant will maintain training proficiency by completing the Base Level Support Application (BLSA) CBT every two years. The Contractor shall have a minimum of two fuels accountants, one primary and one alternate.

c. DLA Energy provides formal training courses of instruction at a training facility in Alexandria, VA or via CBT. Prospective eligible applicants shall apply through the online registration tool located at https://www.fuelstraining.com. CBT requirements for DFSP personnel are also located at https://www.fuelstraining.com. The Contractor shall factor in all travel and any other expenses for their personnel to attend the courses 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.

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, SPE603-25-R-0504 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 Europe/Africa 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 in 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 DLA Energy QAR/COR located in the DLA Energy Middle East, Regional Office Bahrain, prior to submitting to the Contracting Officer for review and approval prior to the first receipt of Government-owned product or within 30 days after contract award, whichever occurs first. The QCP must be dynamic (i.e., modified or extended as changes in technical or procedural requirements occur). Contractor responsibility to inspect product and services shall be in accordance with Provision E28, CONTRACTOR INSPECTION

RESPONSIBILITIES.

The QCP written procedures must be clear and concise as to:

a. What is done?

b. Where it's done

c. When it's done

d. How it's done

e. Who (which contractor employee position) does it.

The QCP must describe, in proper sequence, how contract compliance will be achieved and how the contractor intends to perform the required services in order to ensure that all products meet specification requirements during the performance of the contract.

The QCP shall include procedures for the following operations, as they affect quality control, SPE603-25-R-0504 and an organizational chart that identifies responsible parties for these operations:

a) Receiving - See Provision F1.04

b) Blending – See Provision F45.03

c) Sampling – See Provision C19.07

d) Testing – See Provision C19.07 Calibration- and Provision E28

e) Storage and Handling – See Provision E28 and I116

f) Loading and Shipping – See Provision F1.05

g) Quantity Determination – See Provision F1.14

h) Records and Reports – See Provision I119.04

i) Corrective Action

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.

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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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

SPE603-25-R-0504

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)