Attachment III - SOW - Lead Acid Battery 70Z08026Q17005B00.doc

UNITED STATES COAST GUARD (USCG)

SURFACE FORCES LOGISTICS CENTER (SFLC) PATROL BOAT PRODUCT LINE (PBPL) LEAD ACID BATTERY

STATEMENT OF WORK

1.0 BACKGROUND

The United States Coast Guard (USCG) Surface Forces Logistics Center (SFLC) Patrol Boat Product Line (PBPL) has an ongoing for lead acid battery delivery, pick-up and disposal of multiple types and manufacture. The predictable and reliable delivery of batteries to all USCG Patrol Boats for both routine planned and emergency unplanned replacements, are absolutely critical to the operation and mission readiness of the fleet of over 100 patrol boats dispersed around the continental United States as well as Alaska, Hawaii, Puerto Rico, Guam and Southwest Asia.

2.0 SCOPE

The scope of this contract is for the total supply chain management of brand name or equal lead acid batteries in direct support of filling the requirements of the USCG SFLC Patrol Boat Product Line. The lead acid batteries currently required by the USCG SFLC PBPL are of various manufacturers and type. All batteries in this contract are required to be delivered to the end users properly filled with electrolyte, fully charged and ready for immediate installation. The salient physical, functional, or performance characteristics that "equal" products must meet are specified in the attached technical data sheets (Attachment 4). The following batteries or proposed equals are required under this contract:

Lead acid batteries for this contract are defined as a storage battery with lead electrodes with dilute sulfuric acid as the electrolyte and will include wet charged, dry charged, sealed, valve regulated, absorbed glass mat (AGM) & gel technologies.

All batteries must be delivered within the timeframes outlined in the CLIN Delivery Schedule. Under this contract new battery delivery is required both in the service areas vendor agrees to provide fixed price delivery, pick-up and disposal AND in areas outside the firm price service areas as listed on Attachment 2, USCG Patrol Boat Homeport Battery Service Areas (see further details below).

New battery deliveries required at delivery addresses that are NOT in the vendor proposed fixed cost service areas, will include the fixed battery cost plus additional financial compensation to the vendor, in the form of Government reimbursement for all actual shipping charges vendor incurs in delivery to these service areas.

All emergency battery orders, regardless of delivery address will include the fixed battery price plus additional financial compensation to the vendor in the form of Government reimbursement for all actual shipping charges vendor incurs in the expedited emergency battery delivery.

Battery delivery to service areas outside those proposed by vendor at fixed cost on Attachment 2, USCG Patrol Boat Homeport Battery Service Areas DO NOT require, nor is the vendor obligated to perform, used battery pick-up or disposal; this will be performed organically at the local unit level by USCG.

The vendor will be required to perform timely, cost effective and environmentally conscious supply chain management in performance of the lead acid battery delivery, pick-up and disposal services required globally by the USCG Patrol Boat Fleet. The range of functions anticipated for the vendor to successfully fulfill the requirements of this contract, include but are not explicitly limited to the following:

· Inventory management

· Shelf-life management

· Distribution

· Demand forecasting

· Delivery

· Pick-up

· Disposal/Recycling

· HAZMAT compliance

· Dedicated program customer service representatives

· Quality assurance

· Bi-annual performance reports Vendor furnished “New Battery Delivery, Used Battery Pick-up and Used Battery Disposal” definitions:

Vendor Furnished New Battery Delivery - for the purposes of this requirement, in the service areas proposed at firm, fixed price by the vendor as identified on Table A and for any/all locations outside the agreed service areas, is defined as delivery of new batteries which are packaged and transported in compliance with all Federal, State and local government guidelines to the Patrol Boat pier side berth or shipping/receiving facility at the address on the delivery order. Transportation of new batteries may be performed by any licensed commercial freight carriers and may incorporate land, sea and air modes of transport - such as but not limited to UPS, FedEx, DHL and many more. However, final delivery to the Patrol Boat delivery address in all instances shall only be made by licensed commercial carrier truck/van or by vendor or sub-contractor operated commercially licensed truck/van unless specifically authorized in writing by the USCG on a case by case basis.

Vendor will be required to provide bi-annual report to the Contracting Officers Representative detailing total quantity of each CLIN delivered, total number of orders, total dollar value invoiced for batteries and total dollar value invoiced for government reimbursed shipping costs every 6 months of contract performance.

Vendor Furnished Used Battery Pick-up - For the purposes of this requirement, and only in the service areas proposed at firm, fixed price by the vendor as identified on Table A, is defined as a vendor operated or sub-contractor operated commercial vehicle which is employed in the routine business of transporting used unpackaged lead acid batteries for the purposes of performing battery disposal. At the time of new battery delivery or within 15 days of receiving such delivery, the USCG will contact the vendor provided single point of contact, via email or phone, with a pick-up request for an equal amount and type of used batteries as those delivered new under the delivery order. The vendor will be obligated to schedule with the USCG a date for the pick-up, and provide such pick-up of the respective quantity of used batteries and transport them off-site for disposal within 7 business of receipt of such request.

The USCG will not perform or be liable for any inspection of used batteries, preparation and packaging of used batteries or any other functions or interventions involved in preparing used batteries for pick-up, determining suitability for transportation/shipping or disposal; other than consolidating them in a single location readily accessible to commercial vehicle, for vendor furnished pick up at the delivery address listed on the respective new battery order.

The vendor assumes 100% of the responsibility for inspecting each unpackaged used battery presented by the USCG for pick-up and is solely liable for determining their suitability for transport. Only after a complete visual inspection of the used batteries, will the vendor make necessary preparations of the batteries for transportation, load and remove off-site all used batteries presented for pick-up that they deem suitable to transport for disposal. In such a case where batteries are determined not suitable for pick-up and transportation, they shall be identified by the vendor (or their subcontractor) and photographed. These photos shall be presented to the USCG Contracting Officers Representative (COR) along with a Condition Found Report (CFR) simply describing the factors found to make the battery(s) un-suitable for transportation. The photos are required to clearly show the defects and conditions found and along with CFR, shall be sent to the email address specified in the contract for the COR within 3 business days of such findings, along with the delivery order number and Patrol Boat name.

All used batteries presented by the USCG for vendor pick-up and disposal that are determined by the vendor not suitable for transport shall be left on-site in the exact same location and condition they are found to be as presented for pick-up, and shall become the sole responsibility of the USCG to properly dispose of. The vendor shall have absolutely no liability for used unpackaged batteries presented by the USCG for pick-up and disposal which are found to be damaged or unsuitable for transport in any way and are to be left on-site for those reasons.

The vendor is however, contractually obligated to notify the COR of such findings to the extent described above.

Vendor Furnished Used Battery Disposal – For the purposes of this requirement, and only in the service areas proposed at firm, fixed price by the vendor as identified on Table A is defined as vendor performed HAZMAT disposal of all used lead acid batteries collected from these service areas, utilizing recycling facilities and methods that comply with all Federal, State and local government rules and regulations pertaining to such operations. The vendor assumes all liability for transportation of the used batteries and shall be contractually bound to comply at all times with the aforementioned requirements upon pick-up, removal and transportation off-site of used batteries collected from USCG Patrol Boat delivery service locations and anytime thereafter while in custody of the vendor furnished pick-up and transport services in route to the HAZMAT collection depot or recycling facility destination.

The USCG will not be liable for any aspect of Vendor Performed HAZMAT Disposal of used batteries and will not perform any function or intervention in performance of such; other than preparing used batteries for pick-up and disposal by consolidating them in a single location readily accessible to commercial vehicle, for vendor furnished pick-up at the delivery address listed on the respective new battery order.