ATTACHMENT I PWS.pdf

SPE603-22-R-0500

Attachment I Performance Work Statement Persian Gulf Area

PERFORMANCE WORK STATEMENT

FOR

DEFENSE FUEL SUPPORT POINT SERVICES

Location

PERSIAN GULF AREA

As of 12/2/2021

Performance Work Statement (PWS) For

Defense Fuel Support Point Services Persian Gulf Area

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 Records (Inventory Data Input) Requirements

1.8 Product Receiving Requirements

1.9 Product Shipping Requirements

1.10 Additive Injection Requirements

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 Support

2.6 Best Commercial Practices

3 Training Requirements

4 Deliverables

4.1 Contractor Detailed Plans

Appendix A Common Access Card (CAC) Procedures

1. DESCRIPTION AND PURPOSE OF REQUIRED SERVICES

1.1 Requirement: Defense Logistics Agency (DLA) Energy requires Defense Fuel Support Point (DFSP) services in the Persian Gulf area, for a three-year period, with two one-year options. The following terms and conditions are applicable to the requirement for contract services and ancillary facilities for receiving, storing, protecting, and shipping U.S. Government-owned aviation turbine fuel.

1.2 Area of Consideration: The Persian Gulf area. The area is defined as an area along the Persian Gulf, littoral south that includes Kuwait, Saudi Arabia, Bahrain, Qatar, and the United Arab Emirates.

1.3 Storage Capacity/Tank Requirements: 2,000,000 barrels storage (fill) capacity is required.

A minimum of two tanks interconnected. All storage must be available and operational upon award at a single facility.

1.4 Grade of Service: Aviation turbine fuel, commercial grade Jet A-1 receipt and storage.

Grade JAA (Jet A-1 with additives) for outbound shipping mode.

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

1.6 Allowed Throughput: The U.S. Government will be entitled to 2,000,000 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 each product type received and shipped in a twelve consecutive month period, divided by two, starting when inspection and acceptance takes place after receipt of initial fill and resetting on the anniversary date each following year. Allowed throughput does not include initial fill or final shipment.

1.6.1 Initial Fill and Final Shipment: The U.S. Government will be entitled to initial fill beginning at the twelve-month period immediately following inspection and acceptance, and final shipment during the last twelve months of the performance period, at no additional cost.

Initial fill is defined, as all receipts required filling the storage tanks to 100% of the awarded fill capacity for 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 Records (Inventory Data Input) Requirements: The Contractor shall follow the physical inventory management procedures specified in applicable directives and contract texts in accordance with the most current version of Department of Defense Manual 4140.25 and DLA ENERGY Class IIIB Supply Chain Management Interim Policy and Procedural Guidance. The management of fuel inventories involves a full range of actions associated with order, requisition, receipt, transfer, issue, physical inventory, and storage of fuel. The Contractor shall process inventory data of Government-owned product utilizing DLA Energy’s accountable property system of record (APSR), the web-based application Fuels Manager Defense (FMD). See contract text I119.04, INVENTORY CONTROL RECORDS AND SYSTEM OF RECORDS for additional information regarding the

Government’s inventory data requirements. The Contractor shall:

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

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

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

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

Refer to PWS section 3 Training Requirements for the APSR (FMD) and other training requirements.

To process APSR (FMD) 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 a CAC, or in cases where contract performance is not on a U.S. Government installation and is not within reasonable access of a Real-Time Automated Personnel Identification System (RAPIDS) site, the Contractor shall obtain Department of Defense (DoD) Public Key Infrastructure (PKI) certificates through the ECA program from one of three approved vendors. These ECA vendors are found on the DoD Cyber Exchange Public website 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 access to its complete inventory. DLA Energy Quality Assurance Representative/Contracting Officer’s Representative (QAR/COR), DLA Energy Middle East (ME) Region office (see contract text G22 Designation of the Defense Fuel Region), and other DLA Energy representatives will be provided access to the APSR (FMD) onsite as needed.

1.7.2 Computer System: 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: Planning factor for the product receiving requirement is a range of approximately 1,500,000 BBLS to 2,000,000 BBLS per twelve-month period.

1.8.1 Tanker/Barge: The Contractor’s facility shall be capable of receiving aviation turbine fuel via tanker/barge on a 24-hour per day, 7-day per week basis at pumping rates compatible with https://public.cyber.mil/ the mode of transportation tendered (minimum 8,000 barrels per hour (BPH) for tanker and 2,000 BPH for barge).

1.9 Product Shipping Requirements: Planning factor for the product shipping requirement is a range of approximately 1,500,000 BBLS to 2,000,000 BBLS per twelve-month period.

1.9.1 Tanker/Barge: The Contractor’s facility shall be capable of shipping aviation turbine fuel via tanker/barge on a 24-hour per day, 7-day per week basis at pumping rates compatible with the facility and mode of transportation tendered (minimum 8,000 BPH for tanker and 2,000 BPH for barge).

1.9.2 Receiving Dock Berthing and Mooring Facilities: The Contractor’s dock and berthing facilities shall be capable of receiving and berthing tanker/barge not to exceed 46,000 deadweight tonnage (DWT), 800 feet length overall (LOA), with a minimum draft of 40 feet 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/requirement and harbor, or other fees associated with their proposal, along with height restrictions from ships manifold to the waterline during loading, as well as a detailed schematic of the berthing and mooring facilities showing the minimum and maximum capabilities to include current dredging charts for evaluation.

1.10 Additive Injection Requirements: The Contractor’s facility shall be capable of injecting additives to Jet A-1, and to regrade to JAA (Jet A-1 with additives) during shipping/issuing of product on a 7-day per week 24-hours per day basis. When not required to inject additives, the Contractor will be instructed by DLA Energy QAR/COR or the DLA Energy ME Region office.

All required additive injection will be accomplished in accordance with (IAW) the most current version of MIL-STD-3004-1, DEPARTMENT OF DEFENSE STANDARD PRACTICE:

QUALITY ASSURANCE FOR BULK FUELS, LUBRICANTS AND RELATED PRODUCTS,

and the appropriate contract text(s).

1.10.1 Additives Required: The additives required for injection will be Government provided.

The Contractor shall order, receive, store, inject, and maintain additives on specification.

Additives are provided by the DLA Energy ME region. The Contractor shall coordinate with the DLA Energy ME region to order additives.

1.10.1.1 Fuel System Icing Inhibitor (FSII): The Contractor shall provide an injection system for FSII. FSII will be injected based on product specification requirements. The injection requirements that apply to Jet A-1 stocks will be IAW contract text F45.03 OPERATION OF

FUEL SYSTEM ICING INHIBITOR ADDITIVE SYSTEM CONTRACTOR-OWNED

CONTRACTOR-OPERATED (COCO).

The Contractor shall provide all necessary labor, equipment, and facilities to fill Government-furnished drums, ISO intermodal tank containers, and tank trucks with FSII from the additive storage facility.

1.10.1.2 Conductivity Additive (CA): The Contractor shall provide an injection system for CA.

CA will be injected based on product specification requirements. The injection requirements that apply to Jet A-1 stocks will be IAW contract text F45.01 OPERATION OF CONDUCTIVITY

ADDITIVE SYSTEM CONTRACTOR-OWNED CONTRACTOR-OPERATED (COCO).

1.10.1.3 Corrosion Inhibitor/Lubricity Improver Additive (CI/LI): The Contractor shall provide an injection system for CI/LI. CI/LI will be injected based on product specification requirements. The injection requirements that apply to Jet A-1 stocks will be IAW contract text

F45.04 OPERATION OF CORROSION INHIBITOR/LUBRICITY IMPROVER ADDITIVE

SYSTEM, CONTRACTOR- OWNED CONTRACTOR-OPERATED (COCO).

1.10.2 Additive Storage/Injection Plan: The Contractor shall provide, a detailed additive plan that clearly demonstrates how they will receive, store, maintain, and inject the required additives to support the allowed throughput. See Section 4. Deliverables.

2. GENERAL INFORMATION

2.1 Custody and Risk of Loss

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

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

2.2 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 ME Region office.

2.3 Product Quality Surveillance: The Contractor shall be responsible for maintaining the quality of the Government-owned aviation turbine fuel 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 AND RELATED

PRODUCTS. No petroleum products will be received or shipped without first determining and confirming conformance with product quality requirements. No conveyance/container will be loaded until it is inspected by qualified contractor personnel and deemed suitable to carry the intended product. Products will be shipped on a first-in, first-out basis unless otherwise approved or directed by the QAR/COR or the DLA Energy ME Region office. Non-conforming product will be reported to the QAR/COR or the DLA Energy ME Region office immediately, but no later than 15 minutes after discovery. 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.

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

2.3.2 Off Specification Product Reporting: The Contractor shall report immediately, but no later than 15 minutes after discovery, to the QAR/COR or the DLA Energy ME Region office, and the contracting officer, all receipts or on hand stocks that fail to meet product quality for receipt, storage, or shipment in accordance with the most current version of MIL-STD- 3004-1.

Suspected off-specification product will be isolated and will not be released for shipment until authorized by the QAR/COR or the DLA Energy ME Region office.

2.3.3 Laboratory Testing Requirements: The Contractor shall perform laboratory testing in accordance with (IAW) the most current version of MIL-STD-3004-1, Table IX Minimum Sampling and Testing Requirements for Petroleum Products, and sampling in accordance with American Society for Testing Materials (ASTM) D4057 Manual of Petroleum Measurement Standards (MPMS), Chapter 8.1 Standard Practice for Manual Sampling of Petroleum and Petroleum Products. 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 proposal when subcontracting for the required testing to allow DLA Energy to evaluate for final approval. Information to include at a minimum: laboratory name, point of contact, location, testing capabilities, employee proficiency, and testing turn-around times.

The Contractor shall be capable of petroleum product sampling IAW 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: Complies with ASTM D4306 Standard Practice for Aviation Fuel Sample Containers for Tests Affected by Trace Contamination, 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.

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

2.3.4 Additional Samples: The Contractor shall provide to the QAR/COR samples of any product being stored, shipped, or received under the contract, at the request of, and in the manner designated by the QAR/COR. 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, shall be the responsibility of the Contractor. The Contractor shall provide the QAR/COR samples of any product being stored, shipped, or received under the contract IAW ENERGY QAP E28 CONTRACTOR INSPECTION

RESPONSIBILITIES (STORAGE).

2.4 Ancillary Facilities: The Contractor’s facilities to be furnished under this requirement will include, at a minimum, the following:

2.4.1 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 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 of transfer of 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).

2.4.2 Filtration: The terminal must be capable of filtering all products during inbound receipts to storage tanks, outbound issue/shipment to all modes of delivery, stored products during tank-to-tank transfers, when replacing dormant fuel in pipelines, or when repacking pipelines. The filtration system must meet specifications outlined in the current edition of EI 1581, “Specifications and Qualification Procedures – Aviation Jet Fuel Filter/Separator.” Routine filter replacement is at contractor’s expense and shall be included under the firm fixed price offer.

2.4.3 Lighting: The facility must be equipped with illumination to allow receipt and shipping operations during hours of darkness.

2.5 Quality Assurance Representative Support

2.5.1 Office Facility Support: The Contractor shall furnish, as a minimum, office space of approximately 110 square feet and furniture for use by the DLA Energy QAR/COR. Furniture items include a 3-drawer desk, one swivel chair with arms, one straight chair, 2-shelf bookcase, 3-drawer letter size locking file cabinet, and a ten digit desktop calculator or equivalent. The Contractor shall provide janitorial services for the QAR/COR office space of the same quality and type that is provided for the Contractor’s office area at the terminal.

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

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

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

2.6 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.

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.

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 DLA Energy Account Transaction Processor/Recorder (inventory 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 inventory accountant shall first complete the current Base-Level Defense Fuels Management Course. During the six months on the job training period, the inventory accountant must complete the FMD Accounting computer-based training (CBT) and register for a formal course. The inventory 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 inventory accountants, one primary and one alternate.

b. 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.

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 plans to the Contracting Officer for review and acceptance.

The detailed plans listed below will be reviewed by the DLA Energy 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.

http://www.jccs.gov/ https://www.fuelstraining.com/ https://www.fuelstraining.com/

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, at a minimum, will include performance-based plans.

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

o Record keeping and reporting procedures pertaining to administrative requirements.

o Bulk storage operations.

o Facility/equipment maintenance.

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

The CCP will be made available for Government review, upon request, at any time during the contract performance period. The CCP may be used by the QAR/COR for monitoring and assessing contract performance.

4.1.2 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 QAR, for review and approval, prior to the first receipt of Government-owned product or within 60 days after contract award, whichever occurs first.

4.1.3 Additive Storage/Injection Plan: The Contractor shall provide a comprehensive and detailed additive plan that clearly demonstrates how they will receive, store, inject, and maintain the required additives to support the allowed throughput.

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 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.

• 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

• 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)