ATTACHMENT_SPE1C121R0056.pdf

SOLICITATION NO. SPE1C121R0056

Table of Contents Page

Continuation of Blocks from the Standard Form 1449 2 Block 8, Offer Due Date/Local Time 2 Block 9, Issued By 2 Block 17a, Contractor/Offeror 2 Block 17b, Remittance Address 2

Caution Notices Contractor Code of Business Ethics 3

Contract Clauses 52.212-4 Contract Terms and Conditions—Commercial Items (by reference, see SF 1449, Block 27a)

52.212-5 Contract Terms and Conditions Required to Implement Statutes or Executive Orders—Commercial Items

Addendum Containing Supplementary Clauses in Full Text and by Reference 52.211-16 Variation in Quantity 52 52.252-2 Clauses Incorporated by Reference 56 252.204-7012 Safeguarding Covered Defense Information and Cyber Incident Reporting 84 252.209-7004 Subcontracting With Firms That Are Owned or Controlled by the Government of a Country that is a State Sponsor of Terrorism

52.232-17 Interest 57 52.242-13 Bankruptcy 57 52.242-15 Stop Work Order 57 Contract Documents, Exhibits or Attachments

Solicitation Provisions 52.212-1 Instructions to Offerors—Commercial Items 57 Addendum to 52.212-1 52.212-2 Evaluation—Commercial Items 93 52.212-3 Offeror Representations and Certifications—Commercial Items, Alternate I 61 Addendum Containing Supplementary Provisions in Full Text and by Reference 52.216-1 Type of Contract 77 52.233-9001 Disputes: Agreement to Use Alternative Dispute Resolution (ADR) 77 52.252-1 Solicitation Provisions Incorporated by Reference 78 252.204-7008 Compliance with Safeguarding Covered Defense Information Controls 78 52.225-25 Prohibition on Contracting With Entities Engaging in Certain Activities or

Transactions Relating to Iran - Representation and Certification

Procurement Notes L06 Agency Protests 80 Additional Clauses as Applicable

Continuation of Blocks from SF 1449

1. Block 8 Offer Due Date/Local Time: See Block 8 “OFFER DUE DATE/LOCAL TIME” on page 1 of SF 1449.

2. Block 9

› Address and Submit “mailed” offers to:

N/A

› Address and Deliver “hand carried” offers, including delivery by commercial carrier, to:

N/A

Notes: 1. Mailed, hand carried and facsimile offer submissions will not be accepted. Electronic submission is required.

ALL OFFERS ARE TO BE SUBMITTED ELECTRONICALLY TO THE DLA DIBBS WEB SITE BY THE

CLOSING DATE OF: See Block 8 “OFFER DUE DATE/LOCAL TIME” on page 1 of SF 1449.

2. Block 17a › Offeror’s assigned Unique Entity Identifier Number:

(If you do not have a Unique Entity Identifier number, contact the individual identified in Block 7a of the SF 1449 or see 52.212-1, Instructions to Offerors—Commercial Items (paragraph j) for information on establishing a unique entity identifier.)

› Offeror’s assigned Contractor and Government Entity (CAGE) Code:

3. Block 17b Remittance Address: (if different from Contractor/Offeror address in block 17a of the SF 1449.)

CAUTION ‐ CONTRACTOR CODE OF BUSINESS ETHICS (JUN 2020)

FAR Part 3.1002(a) requires all government contractors to conduct themselves with the highest degree of integrity and honesty. Contractors should have a written code of business ethics and conduct within thirty days of award. To promote compliance with such code of business ethics and conduct, contractors should have an employee business ethics and compliance training program that facilitates timely discovery and disclosure of improper conduct in connection with government contracts and ensures corrective measures are promptly instituted and carried out. A contractor may be suspended and/or debarred for knowing failure by a principal to timely disclose to the government, in connection with the award, performance, or closeout of a government contract performed by the contractor or a subcontract awarded there under, credible evidence of a violation of federal criminal law involving fraud, conflict of interest, bribery, or gratuity violations found in title 18 of the United States Code or a violation of the False Claims Act.

(31 U.S.C. 3729‐3733)

If this solicitation or contract includes FAR clause 52.203‐13 ‐ CONTRACTOR CODE OF BUSINESS ETHICS AND CONDUCT;

the contractor shall comply with the terms of the clause and have a written code of business ethics and conduct; exercise due diligence to prevent and detect criminal conduct; promote ethical conduct and a commitment to compliance with the law within their organization; and timely report any violations of federal criminal law involving fraud, conflict of interest, bribery or gratuity violations found in title 18 of the United States Code or any violations of the False Claims Act. (31 U.S.C.

3729‐3733). When FAR 52.203‐13 is included in the contract, contractors must provide a copy of its written code of business ethics and conduct to the contracting officer upon request by the contracting officer.

SCHEDULE OF SERVICES

Kitted Material Order (KMO) Quantities: This contract shall have the following Annual Estimated Quantity (AEQ) and Annual Guaranteed Minimum KMO quantities for the two‐year base period and five one‐year option periods:

Guaranteed Minimum Contract Period AEQ KMO/MRO/STO Quantity

Two‐Year Base Period* 900,000* 600,000 * Option Period 1 (year 3) 600,000 400,000 Option Period 2 (year 4) 600,000 400,000 Option Period 3 (year 5) 600,000 400,000 Option Period 4 (year 6) 600,000 400,000 Option Period 5 (year 7) 600,000 400,000 Option Period 5 (6 mo. Extension) 300,000 200,000

*NOTE: The Guaranteed Minimum of 600,000 for the two‐year base period can be ordered at any time during the two‐ year period. The AEQ of 900,000 is composed of an estimated 300,000s per year for year 1 and 600,000 KMOs for year 2 and factors in up to a six‐month transition period in which the new 3PL may not receive KMOs while the warehouse is being phased into operation and inventory is transferred. Items to be inventoried and ordered include but are not limited to boots, caps, physical training uniforms, trousers, shirts, and protective equipment.

PRICING

KMO Fees

Customers will use the 3PL’s Web‐Based Operating System (WebOS) to place orders directly with the 3PL. These orders will likely contain multiple items which the 3PL Contractor will consolidate together into a single box for shipment, size permitting. This type of order may require the sewing and/or embroidery of name tapes, service tapes, or ranks to be sewn on to the uniform items being ordered, however, pricing for this function is not to be included under this section but will be covered below. If needed, other insignia items may be added via modification after award if pricing can be determined fair and reasonable.

KMOs will represent the vast majority of orders received.

The contractor will also receive two other categories of orders, MROs and STOs:

Material Release Order (MRO) ‐ This type of order will be transmitted to the 3PL Contractor from DLA via Electronic Data Interchange (EDI). An MRO is an order for a single NSN, the quantity of which may vary.

Stock Transfer Order (STO) ‐ This is a type of MRO in which shipment is made to another DLA 3PL or Government Depot.

The contractor will be reimbursed for fulfilling MROs and STOs via the KMO fee. For billing purposes, MROs and STOs are considered to be KMOs and the contractor shall be paid the KMO fee when fulfilling MROs and STOs. Only costs directly relating to the operation of the KMO portion of this contract shall be allowed as part of the price for this CLIN. In specific, these costs should include – but are not limited to – all of the following:

All Labor costs related to KMO fulfillment

All Packaging costs including packaging supplies, labels, bar‐coding supplies, package marking supplies, stretch/shrink wrap, dunnage

All costs related to processing shipments in the Vendor Shipment Module (VSM)

Profit related only to KMO fulfillment

Two‐Year Base Period KMO Fee

Two‐Year Base Period (Yr 1) $_______ Two‐Year Base Period (Yr 2) $_______

Option Period 1 (yr 3) KMO Fee

Option Period 2 (yr 4) KMO Fee

Option Period 3 (yr 5) KMO Fee

Option Period 4 (yr 6) KMO Fee

Option Period 5 (yr 7) KMO Fee

Option Period 5 extension** KMO Fee

**(This price will be utilized for a period up to six months in the event that the contract is extended in accordance with FAR 52‐217‐8 – Option to Extend Services (Nov 1999)).

Monthly Storage and Warehousing Fee

The Monthly Storage and Warehousing Fee includes all of the General and Administrative and Overhead costs to store and warehouse the Government’s inventory. From a general standpoint, these costs should include – but are not limited to – receiving, storage, security, Information Technology systems, material handling equipment, utilities, Supply Discrepancy Report (SDR) processing and quality assurance. Only costs directly relating to storage and warehousing shall be allowed as part of the price for this line item.

In specific, these costs should include – but are not limited to – all of the following:

All Information Technology Systems costs including hardware, software, servers and Programming

All Facilities costs including lease/rent, insurance, overhead, alarm/sprinkler systems, racking, shelving, utilities

All costs associated with receiving and storing incoming inventory

All Material Handling Equipment (MHE) costs such as forklifts, dollies, pallet jacks, ladders, and lifts

All Costs associated with Supply Discrepancy Report (SDR) processing

All costs associated with Customer service support

Costs of providing office space, high‐speed internet access, and phone line to a DLA Troop Support Sourcing Strategy Specialist (SSS)

All costs associated with attending or hosting meetings or program management reviews

Profit related only to the monthly storage and warehousing fee

Two‐Year Base Period Monthly Fee

Two‐Year Base Period (Yr 1) $ Two‐Year Base Period (Yr 2) $

Option Period 1 (yr 3) Monthly Fee

Option Period 2 (yr 4) Monthly Fee

Option Period 3 (yr 5) Monthly Fee

Option Period 4 (yr 6) Monthly Fee

Option Period 5 (yr 7) Monthly Fee

Option Period 5 extension** Monthly Fee

**(This price will be utilized for a period up to six months in the event that the contract is extended in accordance with FAR 52‐217‐8 – Option to Extend Services (Nov 1999)).

Sewing and Embroidery Production Fees

Sewing and Embroidery Production Fees includes all of the sewing of rank insignia as well as sewing and embroidery of name tapes and branch tapes produced over the course of the month and invoiced at the prices awarded for each item.

Includes all of the General and Administrative and Overhead costs to produce and sew name tapes and branch tapes and to sew rank insignia under this program. In addition to the production of the name or branch tape itself, these fees should include all costs associated with sewing of the tapes and rank insignia – e.g. the cost of all materials, equipment and machinery such as sewing machines, fabric, hook and loop fastener, needles and thread to make the tapes and/or to sew the tapes and insignia to the uniform. Only costs directly relating to the operation of the sewing and embroidery portion of this contract shall be allowed as part of the price for this CLIN. In specific, these costs should include – but are not limited to – all of the following:

• All Labor costs related to the monthly embroidery and sewing of Name Tapes, Branch Tapes, and Rank Insignia

• Profit related only to the sewing and embroidery fees

• All materials, equipment and machinery used for sewing and embroidery

Two‐Year Base Period Sewing and Embroidery Fees per tape/insignia produced and sewed onto uniform

Two‐Year Base Period Fees (Yr 1)

Name Tapes and Branch Tapes $________

Pricing for the sewing, and embroidery, of each name tape or branch tape. This includes the cost to produce and embroider name and branch tapes and the cost to sew them onto uniform items as needed. Name tapes require a personalized name to be embroidered onto the tape. Branch tapes require a military branch name be embroidered on to the tape: for example, “U.S. ARMY” or “U.S. NAVY.”

Rank Sewing $ ________

Rank Sewing requires the Contractor to sew military service rank insignia onto a jacket or shirt. Such rank insignia will be provided to the Contractor by DLA.

Two‐Year Base Period Fees (Yr 2)

Name Tapes and Branch Tapes $________

Rank Sewing $ ________

Option Period 1 Fees (Yr 3)

Name Tapes and Branch Tapes $________

Rank Sewing $ ________

Option Period 2 Fees (Yr 4)

Name Tapes and Branch Tapes $________

Rank Sewing $ ________

Option Period 3 Fees (Yr 5)

Name Tapes and Branch Tapes $________

Rank Sewing $ ________

Option Period 4 Fees (Yr 6)

Name Tapes and Branch Tapes $________

Rank Sewing $ ________

Option Period 5 Fees (Yr 7)

Name Tapes and Branch Tapes $________

Rank Sewing $ ________

Option Period 5 Fees – Extension **

Name Tapes and Branch Tapes $________

Rank Sewing $ ________

**(This price will be utilized for a period up to six months in the event that the contract is extended in accordance with FAR 52‐217‐8 – Option to Extend Services (Nov 1999)).

The following specifications are applicable to the name and branch tapes to be produced as part of this effort:

NCTRF PD12‐10 – US NAVY

MIL I 12718F – US ARMY, US MARINE CORPS and US AIR FORCE, with Amendment 3 and Amendment 4

Information regarding these specifications is available via the following web‐sites:

https://quicksearch.dla.mil/qsSearch.aspx https://www.dla.mil/TroopSupport/ClothingandTextiles/SpecRequest.aspx

Freight Pricing

Priority Shipping Timeframe

• Routine Orders. Picked/Packed/Shipped: 10 Business Days after order receipt.

• Overnight/Expedited Orders – Orders requiring immediate shipment shall be picked, packed, and shipped 1 business day after order receipt.

A KMO received by the 3PL Contractor prior to 2:00 PM EST will be considered to have been received that same business day for the purposes of calculating on‐time delivery. KMOs received 2:00 PM EST or later will be considered to have been received during the next business day for the purposes of calculating on‐time delivery.

A breakout of shipment estimates according to weight, priority, and region can be found in the business evaluation section of this solicitation.

Note: the freight prices below shall be valid through Base Period Year 1 only. Procurement Note C09 ECONOMIC PRICE ADJUSTMENT – DEPARTMENT OF LABOR PRICE INDEX (AUG 2017) shall be utilized to adjust standard freight charges starting in the second year of the base period (contract year 2). All freight prices shall include all applicable fuel surcharges.

Standard Freight Shipments

North East Region: PA, NY, NJ, MD, DE, RI, CT, MA, VT, NH, ME, DC

Base Period Year 1 1 to 25 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 26 to 69 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 70 to 150 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 Over 150 lb Priority Level Freight Price

Routine $ (per lb) Overnight/Expedite $ (per lb)

South East Region: VA, WV, KY, TN, NC, SC, AR, LA, MS, AL, GA, FL.

Base Period Year 1 1 to 25 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 26 to 69 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 70 to 150 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 Over 150 lb Priority Level Freight Price

Routine $ (per lb) Overnight/Expedite $ (per lb)

Great Lakes Region: MI, OH, IN, IL, WI

Base Period Year 1 1 to 25 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 26 to 69 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 70 to 150 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 Over 150 lb Priority Level Freight Price

Routine $ (per lb)

Plains Region: MN, IA, MO, KS, NE, ND, SD.

Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 26 to 69 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 70 to 150 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 Over 150 lb Priority Level Freight Price

Routine $ (per lb) Overnight/Expedite $ (per lb)

South West Region: OK, TX, AZ, NM.

Base Period Year 1 1 to 25 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 26 to 69 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 70 to 150 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 Over 150 lb Priority Level Freight Price

Routine $ (per lb)

Mountain Region: MT, ID, WY, UT, CO.

Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 26 to 69 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 70 to 150 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 Over 150 lb Priority Level Freight Price

Routine $ (per lb) Overnight/Expedite $ (per lb)

Pacific Region: CA, NV, WA, OR

Base Period Year 1 1 to 25 lb

Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 26 to 69 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 70 to 150 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 Over 150 lb Priority Level Freight Price

Routine $ (per lb)

Alaska Region

Base Period Year 1 1 to 25 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 26 to 69 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 70 to 150 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 Over 150 lb Priority Level Freight Price

Routine $ (per lb) Overnight/Expedite $ (per lb)

Hawaii Region:

Base Period Year 1 1 to 25 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 26 to 69 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 70 to 150 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 Over 150 lb Priority Level Freight Price

Routine $ (per lb) Overnight/Expedite $ (per lb)

Armed Forces Europe Region:

Base Period Year 1 1 to 25 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 26 to 69 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 70 to 150 lb Priority Level Freight Price

Routine $ (per shipment) Overnight/Expedite $ (per shipment)

Base Period Year 1 Over 150 lb Priority Level Freight Price

Routine $ (per lb) Overnight/Expedite $ (per lb)

*AE = Army Europe. Such orders a generally fulfilled via shipments to Army Post Office (APO) to ship‐to locations in Europe, Africa, Middle East and Canada. Shipments to Fleet Post Office (FPO) locations in these same areas may also be required.

Vendor Shipment Module (VSM) – To be used as needed for MRO shipments only, not for shipments using an APO or FPO address.

The contractor shall use the VSM system to make shipments going to international destinations. VSM is the vehicle by which the contractor notifies the DLA transportation experts that a shipment is ready for processing. No matter the size or weight, VSM will assess information provided and process shipments according to the contract terms. Once shipment is processed, VSM will allow you to access your contract information in order to print the applicable documentation for your type of shipment. For VSM registration and instruction, a Help Desk is available and can be reached by email at delivery@dla.mil or by phone Mon‐Fri 0600‐1700 Eastern Time at 800‐456‐5507.

VSM is a web based, front‐end application interfaced to the Distribution Standard System (DSS) mainframe. It is also capable of full Electronic Data Interface (EDI) integration at the vendor location. The EDI version is more complex and requires more programming on the vendor’s part to integrate into their production systems. However, the payoff includes higher volume shipping capacity and eliminates human intervention in the process.

When processing Free on board (FOB) destination shipments in VSM, vendor selects the desired Purchase Order to ship, enters shipment weight, dimensions and carrier and submits transaction. The system determines “Ship To” and “Final Destination” addresses using the Global Address file and transportation logic in DSS. Once shipping addresses have been derived, the system generates a MIL‐STD‐129P compliant Military Shipping Label (MSL) in Adobe Acrobat Portable Data File (PDF) format, which is printed at the vendor location.

When vendor processes a shipment requiring Aerial Port Clearance, shipment is offered for clearance to the Financial Air Clearance Transportation System (FACTS). When clearance is complete (could be up to 3 days) VSM notifies vendor via their web page the shipment has been cleared and shipping labels are available to print.

Similar processes are executed for FOB Origin Shipments. When vendor processes a shipment in VSM, freight is offered through system to procure transportation by the Government. This includes securing a carrier and arranging the pick‐up schedule, creating the CBL (Commercial Bill of Lading) for freight shipments and alerting vendor the shipment is scheduled and all documents are ready to print. Small parcel shipments will include a small parcel carrier label and vendor will be required to request a pick up from that carrier. Vendor must ensure paperwork and freight are ready to ship when carrier arrives for pick‐up.

Orders from Naval ship customers will also frequently require the use of VSM in order to obtain the most up‐to‐date shipping addresses.

International Shipments not going through VSM

While the overwhelming majority of orders will be shipped to locations within the continental United States, Alaska, and Hawaii it will be necessary from time to time to ship internationally in support of DLA Troop Support customers.

Examples can include Army and Air Force Exchanges (AAFES) located in Europe. The Government will reimburse the Contractor for actual shipping charges for these shipments, but the Contractor is responsible for obtaining a minimum of three (3) bids from shipping companies/carriers to ensure that reasonable freight charges are applied. Proof of international shipping charges and bid records shall be available for government inspection immediately upon request (no later than two business days after such a request is made.)

Foreign Military Sales (FMS) Shipments

At times the Contractor will be required to deliver items to foreign military customers. All FMS MROs shall be coordinated with the Defense Distribution Center (DDC) transportation office, which will provide approved shipping instructions and carrier designation. To obtain Ship‐To addresses for FMS customers, the vendor will need access to the VSM Web‐based system operated by DLA Distribution.

To prevent frustrated shipments, the contractor must contact the VSM office for ALL FMS orders to request that the transportation method be changed in VSM from Destination to Origin, regardless of the fifth position of the document number.

Delivery codes for FMS shipments:

Delivery Term Codes for Shipments from the U.S. (Outbound) DTC ‐ instructions 2 ‐Movement from origin to destination within CONUS or within the same overseas geographical area. (normally shipment via DTS on CBL/GBL).

3 ‐Delivery alongside vessel/aircraft at port of exit (normally GBL/DTS). (No longer used).

4‐ Delivery at origin (normally shipment to freight forwarder by commercial carrier on a CCBL).

5‐ Delivery to port of exit (normally U.S. government sponsored transportation to the freight forwarder on a CBL/GBL via

DTS).

6 ‐Delivery to overseas port of discharge (normally GBL/DTS). (No longer used).

7‐ Delivery to final destination in recipient country (normally CBL/GBL via DTS).

8 ‐Delivery to vessel/aircraft (on board) at port of exit (normally GBL/DTS).

9 ‐Delivery to overseas port of discharge (landed) (normally CBL/GBL via DTS).

0 ‐DTC for service that do not involve transportation of materiel. Also used if transportation is funded by "above‐the‐ line" case funds and not charged as an accessorial.

Accessorial Charges

The Contractor is not authorized to charge the Government for freight charges in circumstances in which the charge is a result of the Contractor’s error. This includes instances where the Contractor mistakenly ships to an incorrect address that differs from the address supplied by the Government. The Contractor shall invoice the Government for these charges on its monthly invoice. To support all monthly accessorial charges, the Contractor shall provide a spreadsheet containing a rolled‐up summary of all amounts being charged. The Contractor will provide the records of all invoices for charges incurred to the Contracting Officer when the monthly invoice is submitted.

When making shipments, the contractor may incur accessorial charges stemming from nominal and minor changes for second attempts at delivery, residential address surcharges and/or wrong addresses. The Contractor can seek reimbursement by the Government for commercially typical freight charges to cover costs in circumstances such as the following:

Carrier charges to the Contractor for shipments denied by the ship‐to customer; Charges for address changes and/or multiple delivery attempts due to packages found to be undeliverable because of incorrect address information provided by the Government. The Contractor will be reimbursed for its actual shipping charges for these shipments only.

Shipment Staging

There will be instances when orders to be shipped will need to be staged in the Contractor’s warehouse in order to provide the precise pieces, weight, cube, and other relevant shipment data for shipments going to DLA Distribution Depots, shipments going to DLA Disposition Services, and other entities requiring such information prior to shipment.

When such staging is required it is possible that a shipment may remain staged and not shipped for a number of days or more before shipment authorization is provided or the shipment is picked up by the carrier. The Contractor must ensure that it has sufficient space in its warehouse to stage shipments in this manner without interrupting normal shipment or receipt timeframes. The contractor shall not be entitled to recoup any additional costs from the Government associated with such staging.

The Maximum dollar value that may be ordered against this contract – including ALL CLINs – over the potential seven‐and‐ one‐half year period is $175,000,000.00.

PERFORMANCE WORK STATEMENT

Performance Work Statement Table of Contents

Section 1.0 – Background Section 2.0 – Scope Section 3.0 – Performance Requirements Section 4.0 – Inventory Accountability and Audit Readiness Section 5.0 – Sewing of Name Tapes, Branch Tapes, and Rank Insignia

1.0. Background

The DLA Troop Support Clothing & Textile (C&T) Supply Chain provides integrated logistics solutions for military apparel items and equipment utilized by the military services. The following Performance Work Statement (PWS) focuses on military clothing items and equipment and will utilize the enhanced logistical support of a Third‐Party Logistics (3PL) provider to furnish warehousing, storage, inventory management, embroidery, sewing, and distribution functions for DLA Troop Support, and its’ military customers.

2.0 Scope

The purpose of this initiative is to satisfy customer requisitions for military service C&T items. The Contractor will not be responsible for requisitioning clothing from the manufacturing community. Rather, DLA Troop Support will procure the clothing items and order the replenishment quantities from other 3PL providers or manufacturers to ship to the Contractor. Such items include but are not limited to boots, caps, goggles, trousers, shirts, blouses, insignia, and coats.

DLA Troop Support’s goal is 100% supply availability of military clothing items. In order to achieve this goal, it is necessary to employ third party logistics support in order to best optimize inventory levels, provide total asset visibility to the customers for all shipments, readiness and support for military customers located worldwide (with the potential to support Whole‐of‐Government customers in the future).

The estimated square footage required for inventory storage in order to effectively support this program is 300,000 square feet. Please note that it is possible for this amount to be expanded/decreased in the future should warehousing requirements change over time.

2.1. Contract Duration and Type

2.1.1. Contract Duration – The contract will have a two‐year base period followed by five potential one‐year option periods. Option period five may potentially be extended by a period of up to six months in accordance with FAR 52‐217‐ 8 – Option to Extend Services.

The total contract duration is not to exceed seven (7) and one‐half years.

2.1.2. Contract Type – DLA Troop Support will utilize a Fixed Price Service Contract with an Economic Price Adjustment (EPA) allowed for freight only with the following Annual Estimated Quantity (AEQ) of KMO, MRO and STO Orders:

Contract Period Orders

Two‐year Base Period 900,000

Option Period One (yr 3) 600,000 Option Period Two (yr 4) 600,000 Option Period Three (yr 5) 600,000 Option period Four (yr 6) 600,000 Option period Five (yr 7) 600,000 Option Period Five (6 mo. Extension) 300,000 ** (If needed in accordance with FAR 52‐217‐8 – Option to Extend Services.)

NOTE: The AEQ of 900,000 for the Two‐year base period is composed of an estimated 600,000 orders per year and factors in up to a six‐month transition period in which the new 3PL may not receive Orders while the warehouse is being phased into operation and inventory is transferred. Items to be inventoried and ordered include but are not limited to boots, caps, trousers, shirts, blouses, insignia, and coats. The Government is only obligated to order the guaranteed minimum detailed earlier.

2.2. Current Procedure

The current program procedures are as follows: The 3PL Contractor receives apparel and equipment item shipments daily, primarily from other C&T 3PLs (the majority of incoming shipments), U.S Government supply depots, and item manufacturers; warehouses the items; and ships directly to C&T customers located both in the Continental U.S. (CONUS) and Outside the Continental U.S. (OCONUS).

Orders are submitted by individual customers via a dedicated web site. There is one web page for approximately fifteen

(15) different customer organizations including, but not limited to all of the following: Army National Guard, Marine Reserves, Navy Reserves, Navy Seabees, Navy Amphibs, Air National Guard, Navy Seals, Army Direct Ordering, Army Reserves, Air Force Reserve, Army and Air Force ROTC, United States Army Africa (USARAF), US Army Cadet Command, and the Air Force Global Strike Command. The quantity of items fulfilled in a single order will vary. The 3PL Contractor will consolidate all items in a single order into a single box for shipment, size permitting. This includes providing sewing and/or embroidery onto the uniforms, i.e. ranks, name tapes, and service tapes as requested by the customer.

Order Types:

Kitted Material Order (KMO): These will represent the vast majority of orders. Customers will use the 3PL’s Web‐Based Operating System (WebOS) to place orders directly with the 3PL. These orders will likely contain multiple items which the 3PL Contractor will consolidate together into a single box for shipment, size permitting. This type of order may require the sewing and/or embroidery of name tapes, service tapes, or rank insignia items to be sewn on to the uniform items being ordered.

Material Release Order (MRO): This type of order will be transmitted to the 3PL Contractor from DLA via Electronic Data Interchange (EDI). An MRO is an order for a single NSN, the quantity of which may vary.

Stock Transfer Order (STO): This is a type of MRO in which shipment is made to another DLA 3PL or Government Depot.

Pre‐Bill Process:

When an order is placed – there is a document number created by the 3PL Contractor’s Warehouse Management System (WMS). At a minimum, by the end of each day, a C0A (post/post sales order) Electronic Data Interchange (EDI) transaction is sent to DLA for orders that have been shipped. This transaction is based upon the ordering DODAAC and national stock number (NSN). Multiple orders are consolidated into a single C0A transaction should the orders share the same billing DODAAC, NSN, and fund code.

In the middle of each month, DLA will send pre‐bill information to the 3PL Contractor for the prior month’s orders (i.e.

mid‐month to mid‐month). This information includes a pre‐bill summary file that summarizes the monthly billing for each customer organization. This data is compared to the orders shipped by the Contractor to military Service units and individual personnel. The Contractor will separate the pre‐bill information into different levels (e.g. Service Headquarter level, state level, command level, unit level, etc…) depending on the preferences of each customer organization. The Contractor then creates and sends a list of issues (LOI) file which contains shipments to the customer each month.

Defense Finance and Accounting Service (DFAS) will bill the customer near the end of the month based upon this information. This may require the contractor’s systems to have interaction with separate, Service specific financial systems to facilitate billing.

2.3. Information Systems

The Contractor shall employ Information Technology Systems (ITS) that are compatible with, and provide seamless interface with, existing and emerging Department of Defense (DOD) systems employed by DOD/Defense Logistics Agency (DLA)/DLA Troop Support, DLA Transaction Services and Defense Logistics Information Service (DLIS), specifically the Enterprise Business System (EBS), Wide Area Work Flow (WAWF), DLA Disposition Services and Virtual Item Manager (VIM) systems. By virtue of daily or more frequent updates of its ITS, the Contractor’s ITS must provide the continual flow of complete, accurate, up‐to‐date information to DLA Troop Support and its customer(s.) The Contractor agrees to provide appropriate and knowledgeable IT personnel to coordinate with DLA Troop Support for the purposes of testing/integrating it’s ITS systems with those of the government. The Contractor also agrees to provide appropriate and knowledgeable IT personnel for managing the ongoing support of this program from inception onward. At a minimum, the Contractor’s ITS will be required to;

1. Send and receive a variety of transactions via the usage of Electronic Data Interchange (EDI).

2. Provide total asset visibility to DLA Troop Support and other authorized personnel of on‐hand inventory within the Contractor’s ITS up to the point of delivery.

3. Track item consumption.

4. Provide reports as needed or requested by DLA Troop Support and/or customers to administer their logistics programs.

5. Process requisitions under Military Standard and Issue Procedures (MILSTRIP).

6. Utilize best commercial practices technology to track inbound and outbound shipments, integrating

Contractor’s software with other systems utilized by the Government.

7. The Contractor will need to coordinate with DLA customers and DLA Troop Support to ensure all IT requirements (e.g. firewalls and compatibility issues) are compliant with Government requirements.

8. Use best commercial practices to ensure that all Government data (both physical and electronic) provided to, transmitted to, or sent from the Contractor is protected and kept secure from unauthorized release or disclosure. The Contractor shall ensure that all Government data (both physical and electronic) is defended from unauthorized access, use, disclosure, modification, perusal, inspection, recording, or destruction. Examples of such data to be protected include but are not limited to orders, requisitions, receipt information, inventory quantities, customer addresses, and shipment details.

9. Utilize the Vendor Shipment Module (VSM) to obtain shipping information, as needed.

10. Utilize the WebSDR interface to process supply discrepancy reports.

11. Process customer returns and exchanges.

12. Ensure compatibility with the Army Funds Control Module and the Defense Information Assurance

Certification and Accreditation Process (DIACAP).

13. Comply with the following DFARS clauses: 252.204‐7012, Safeguarding Covered Defense Information and Cyber Incident Reporting (DEC 2019), 252.204‐7008, Compliance with Safeguarding Covered

Defense Information Controls (OCT 2016), 252.204‐7020, NOTICE OF NIST SP 800‐171 DOD

ASSESSMENT REQUIREMENTS (NOV 2020).

2.4 System transactions

The Contractor will be responsible for interfacing with the Government’s systems in order to:

Receive shipments in from manufacturers, other 3PLs and Government Supply Depots

Make shipments to DLA Troop Support customers

Report inventory status and transactions

Report other changes in contractor managed inventory to keep Government inventory records accurate

Comply with DLA Inventory Records Management (IRM) requirements and transactions

The purpose of the IRM Process is to:

1. Support a reconciliation process between Enterprise Business System (EBS) and any Storage Activity (SA) where the property management record for DLA‐owned inventory resides with the SA Warehouse Management System (WMS). This includes systems operated by DLA Distribution, the Military Services, and Commercial Contractors/Vendors.

2. Ensure asset balances in the Total Item Property Record (TIPR) in EBS and the SA WMS property management record are in agreement.

3. Identify repetitive processing errors and maintain accurate records for supply system transactions generated within the supply system by researching and reconciling property record imbalances and potential discrepancies.

4. Ensure accurate TIPR inventory records are maintained in support of customer requirements and readiness by performing balance reconciliations.

The Contractor will send and receive electronic transactions, using various transaction Document Identifier codes (DICs) in via EDI transactions.

Standard transactions include but are not limited to the following:

A0A – The transaction that generates replenishment of stock in the contractor’s warehouse by transshipping from another storage location (depot or vendor).

A5_ – A Material Release Order (MRO), this is the transaction received from the Government which directs the shipment of stock to customers to satisfy the requisitions they have submitted to DLA Troop Support.

A5E – An Exception Transaction used for Material Release Orders which require special handling.

AR0 – The transaction the contractor transmits to the Government in order to confirm that stock has been shipped in response to an A5_document.

AS8 – Shipment notification

AF6 – The transaction by which the Government reports that a previously generated MRO remains open, and so the contractor needs to determine if the order has been previously processed, and then to either ship the order, or to transmit an AR0 to the Government confirming the shipment of the order.

A6A – A Material Release Denial. This is the transaction which the contractor submits to the Government if the contractor is unable to ship the stock as directed in a Material Release Order. This causes the Government to either direct the order to another location or to backorder the order, and except where an exception code is used, drops the balance shown on the Government’s National Inventory Record (NIR) to zero so that no further MRO’s will be generated to the contractor for that item until stock is received.

A6J ‐ Disposal Release Denial

AC6 – A Material Release Order Cancellation. Customers will sometimes cancel their requisitions, in which case the Government will cancel any MROs generated to satisfy those requisitions by sending AC6 transactions. Upon receipt of the AC6 the Contractor will, if possible, stop the shipment of the order and return the stock to inventory.

AE6 ‐ Supply Status, To ICP/IMM from storage or reporting activity in response to a DI AF6, DI AC6, DI A4_ with Distribution Code 2, or A5_, when a DI AR_ or AS6, does not apply

AG6 – The transaction which the contractor transmits to the Government to confirm cancellation of a Material Release Order. Unless this is received the requisition will not close in EBS.

ARJ ‐ Disposal Release Confirmation

C0A ‐ Post‐Post Sales Order / DLA Directed Material Release Obligation (MRO) to EBS

DAC ‐ Inventory Adjustment–Dual–Condition Transfer.

The Contractor must be able to receive stock from the Government and to report receipt of that stock to the Government. The transactions used to do so are as follows:

DU and DW – Prepositions Material Receipt Cards by which the Government informs the Contractor of material due from the Government.

D4_ A transaction used to report receipt of material from a contract delivery.

D6_ A transaction used to report receipt of material from non‐procurement actions. These can include D6B transactions used to report receipt of material returns from customers; D6K transactions used to report receipt of stock from redistributions from other depots; and D6L transactions used to report receipt of material requisitioned by the Contractor with an A0A. Transmission of the F4_ or D6_ document when material is received causes the due‐in line to close and the stock to appear on the NIR, which allows EBS to direct MROs against the stock. If these receipt documents are not successfully processed, even though stock may be in the Contractor’s warehouse, it will not be on the Government’s NIR. The Contractor may not receive MROs which would have been directed to the Contractor had the Contractor records and the Government’s NIR been in agreement.

D8_ An Inventory Gain transaction will be used when the Contractor has more material in its warehouse than is reflected on the NIR. When this discrepancy cannot be accounted for and corrected by any as yet unshipped MROs or by failure to report material receipts, then the Contractor will transmit to the Government a D8_ transaction to increase the NIR balance to match the Contractor’s balance.

D9_ An Inventory Loss transaction will be used when the Contractor has less material in its warehouse than is reflected on the NIR. When this discrepancy cannot be accounted for and corrected by reversal of duplicate receipts which may have been erroneously transmitted, then the Contractor will transmit to the government a D9_ transaction to decrease the NIR balance to match the Contractor’s records.

To further ensure the accuracy of the Government’s inventory records, the Contractor must be able to send and receive the following Inventory Records Management (IRM) Transactions on a continuous basis:

DZH – On hand balance for location reconciliation

DZN – Count of DZH transactions

DZG – Transaction reject based on invalid NSN or condition code on DZH

DZB – Storage item data correction/change based on invalid or mismatched Controlled Inventory Item Code (CIIC), unit of issue or Shelf Life Code (SLC)

DZJ – Request to receive history of all transactions for a material from a specified period of time

DZK – Transaction history transmittal; one sent per historical transaction

DZP – Count of DZK or DZJ transactions

The following are example EDI transactions that may be used to transmit or receive information. Please note that this is not an all‐inclusive list of transactions. The 3PL Contractor may be required to utilize additional transactions to communicate with the Government as needed:

EDI 511 – This transaction set can be used to requisition needed material and equipment from a supply distribution system for immediate consumption or stockage against projected requirements. The originator can also use this transaction set to inquire about the status of, amend, or terminate the original requisition. This transaction set may be used to convey a description and quantity of the required material, delivery and billing information, and other logistics information necessary to evaluate and meet the material needs of the originator.

EDI 527 – Material Due‐In and Receipt Transaction Set. The transaction set can be used to provide advanced notification of scheduled material receipts, to report receipts, and to inquire about the status of receipt reporting. This transaction set may be used to convey a description of the material, receiving conditions and quantities, necessary contract information, and other logistics information. This transaction set is bi‐directional between trading partners.

EDI 940 – Warehouse Shipping Order Transaction Set. This transaction set can be used to enable the depositor to advise a warehouse to make a shipment, confirm a shipment, or modify or cancel a previously transmitted shipping order.

EDI 945 – Warehouse Shipping Advice Transaction Set. The transaction set can be used by the warehouse to advise the depositor that shipment was made. It is used to reconcile order quantities with shipment quantities.

EDI 846 – Inventory Inquiry/Advice Transaction Set. The transaction set can be used in the following ways: (1) for a seller of goods and services to provide inventory information to a prospective purchaser, with no obligation to the purchaser to acquire these goods or services; (2) for a representative of a seller of goods and services to supply inventory information to that seller; (3) for one location to supply another location with inventory information; and (4) for an inquiry as to the availability of inventory with no obligation on the seller of goods and services to reserve that inventory.

EDI 856 – Advance Shipment Notification. It is utilized to electronically communicate the contents of a shipment to another trading partner. It is sent in advance of a shipment arriving at the other trading partner’s facility.

EDI 947 – Warehouse Inventory Adjustment Advice Transaction Set. The transaction set can be used to inform a warehouse/depositor of a quantity or status change to inventory records. This transaction set provides detail information concerning the internal adjustments which occur between a warehouse and a depositor.

EDI 867 – Product Transfer and Resale Report Transaction Set. The transaction set can be used to: (1) report information about product that has been transferred from one location to another; (2) report sales of product from one or more locations to an end customer; or (3) report sales of a product from one or more locations to an end customer, and demand beyond actual sales (lost orders). Report may be issued by either buyer or seller.

EDI 824 – Application Advice Transaction. The transaction set can be used to provide the ability to report the results of an application system's data content edits of transaction sets. The results of editing transaction sets can be reported at the functional group and transaction set level, in either coded or free‐form format. It is designed to accommodate the business need of reporting the acceptance, rejection or acceptance with change of any transaction set. The Application Advice should not be used in place of a transaction set designed as a specific response to another transaction set (e.g., purchase order acknowledgment sent in response to a purchase order).

EDI 888 – Maintenance Transaction Set. This transaction set is used to enable a manufacturer, supplier, broker, or agent to provide detailed finished goods product information to a partner in a consumer goods market. This transaction set can be used to provide information about new products or changes in existing product specifications. Price changes will not be sent with this transaction set, but can be sent with the Price Change Transaction Set (879).

For further information regarding the transactions above, Offerors may access the following two manuals at the internet addresses that follow:

DOD 4000.25‐1‐M MILITARY STANDARD REQUISITIONING AND ISSUE

PROCEDURES (MILSTRIP) MANUAL which can be found on the internet at the following address: http://www.dla.mil/HQ/InformationOperations/DLMS/eLibrary/Manuals/publications/dlm/dlm_pubs/

DOD 4000.25‐2‐M MILITARY STANDARD TRANSACTION REPORTING AND

ACCOUNTABILITY PROCEDURES (MILSTRAP) MANUAL

which can be found on the internet at the following address:

http://www.dla.mil/HQ/InformationOperations/DLMS/eLibrary/Manuals/publications/dlm/dlm_pubs/

2.5 EDI Transaction Processing ‐ Overview

EDI is a method, using industry standards, to transfer structured data electronically from one system to another with little or no human intervention. DLA requires vendors to send various data based on the ANSI X12 standard format through DLA Transaction Services.

A DLA Vendor may be a commercial contractor, vendor or plant. DLA requires that all vendors use various types of EDI transaction sets that comply with the American National Standards Institute (ANSI) X12 format to successfully manage inventory owned by DLA. A vendor is required to provide daily, weekly and annual (total) reconciliation reports of inventory electronically using EDI.

DLA Expectations (Non‐Technical) (References to “plant/vendor” below also mean 3PL Contractor.)

DLA has several general EDI and Order Fulfillment requirements and expectations in order for a…