Minutes_20Jun13.pdf

DEPARTMENT OF THE AIR FORCE

PACIFIC AIR FORCES

20 Jun 2013

MEMORANDUM FOR DISTRIBUTION

SUBJECT: Minutes of Preproposal Conference for Solicitation No. FA5209-13-T-0071, Freight Forwarding

Services for JFRC 5-ton containers in Japan

1. In accordance with the Notice of Offerors for the subject solicitation, the subject conference was conducted on 20 Jun 2013 at Bldg 620, 374th Contracting Squadron, Yokota AB from 10:00 hours.

Participants are as listed below:

Government

374 Contracting Squadron Specialized Flight/LGCZ

Ms Maki Kodama Contracting Officer (KO)

Ms Masayo Inoue Contract Specialist

Movements Management Branch Trans Division, LRC Honshu, 403 rd

AFSB

Mr Hisaki Nagai Contract Officer’s Representative (COR) / Supervisory Traffic Analyst

Mr Shinzo Sato Traffic Analyst

Prospective Offerors

2. Introduction. Ms Kodama made an opening statement and Ms Inoue introduced the Government representatives at the conference.

3. Additional remarks such as facility information were provided to the offerors.

4. Ms Inoue ensured that the offerors brought the following solicitation package:

a. Policies and Procedure for Doing Business with the U.S. Government

b. Notice to Offerors

c. Standard Form (SF) 1449

d. Exhibits

e. Performance-based Work Statement (PWS) (Attachment 1 to SF1449)

f. Quality Assurance Surveillance Plan (QASP) (Attachment 2 to SF1449)

g. Past/Present Performance Reference List (Attachment 3 to SF1449)

h. Past/Present Performance Survey (Attachment 4 to SF1449)

i. Optional Form-17

5. The following supplementary explanations were provided for offerors:

a. PWS. The Government representatives provided supplementary explanations in a manner by responding questions that were raised prior to and during the conference. The following are questions and answers that CONS received prior to and during the conference. They are not listed in the sequence actually asked in order to categorize them by the area:

(1) Question: PWS 1.1./Exhibits: Pricing Schedule. Is any ordering history available for services and routes ordered in past? Can the Government provide rates charged per container or services? (Specifically item No A001, A002, A003AF, A003AG, A003AT, A003AU, A003AV, and corresponding items under Options.)

Answer: A total of 54 containers were ordered during the past three years, 36 containers for the pre-determined routes and 18 were from Table Rates for the Japan-U.S. joint exercises. The exercise locations were Camp Fuji (Shizuoka-ken), Aibano (Shiga-ken), and Kami-Furano (Hokkaido).

(2) Question: PWS 1.6.8. (i). Please define and explain the difference between Non-Appropriated funds and Appropriated funds.

Answer: The tax exemption is not applicable to Non-Appropriated Funds while it is applicable to Appropriated Funds.

(3) Question: PWS 1.6.8. (i). Upon the Contractor’s submission of an invoice, the payment office will verify and notify the Contractor of the amount to be invoiced for Non-

Appropriated Funds, and the Contractor shall submit the invoice to the Non-

Appropriated Funds invoicing office. Will the payment office process the invoice for

Appropriated Funds freight or does the contractor need to submit new invoices for each (Appropriate Funds and non- Appropriated Funds)?

Answer: The contractor must resubmit invoices for each of Appropriated Funds and non-

Appropriated Funds when the payment office notifies that the initial invoice has charges for Non-Appropriated funds.

(4) Question: Other than PWS 1.3.3. (b) DD Form 1907, will a cargo receipt be provided to the contractor for the container(s) and the contents of the container(s)?

Answer: No, it won’t for the Signature and Tally Record Service purposes. DD Form 1907 is the one to be issued by the origin Transportation Officer (TO) and given to the driver as a custody record when the DDP is applied.

(5) Question: PWS 1.6.2 (b) references a DD Form 1384. At what point will it be issued to the contractor and will this be used as a cargo pickup and delivery receipt?

Answer: DD Form 1384 is issued by the origin TO and given to the driver at the shipping point. The Contractor will turn in provided Shipping Document (DD1384) when a cargo is delivered and DD1384 will be signed by a Government representative at the receiving point.

(6) Question: PWS 1.5.2 (d) states “A serviceable portable fire extinguisher of the appropriate class is carried on the motor vehicle IAW the referenced manual and the local standards.”

What manual is being referenced?

Answer: The “manual” referenced here is DOD 4145.26-M, DoD Contractor’s Safety Manual

For Ammunition and Explosives. The Code of Federal Regulations (CFR) Title 49

“Transportation” states that the grade 10BC or above. Under the Japanese law, spray-type loaded stream fire extinguishers with 8 liters and above are required by the safety standards for road transportation vehicles.

(7) Question: PWS 1.6.1. Are services required to be performed 24/7/365 and shall this be included into the prices to offer?

Answer: It is the offeror’s decision, some may consider it as an additional cost factor, but others may not. No separate line item is provided for additional charges for weekends or holiday work. Please also note that “working days” used covers

Monday through Friday excluding U.S. legal holidays specified at paragraph 1.7.10 and NOT excluding Japanese legal holidays. According to the historical data, except bilateral military exercises, normally shipment was required on weekdays.

(8) Question: PWS 1.3.3. Are rates for dual driver protective services (DDP) to be included into the price to offer?

Answer: It is the offeror’s decision.

(9) Question: PWS 1.1. Are the only two (2) pre-fixed routes for this solicitation/contract referenced in A001 and A002? Why are A003AF and A003AG for ferry services listed as accessorial services?

Answer: Yes, only two pre-fixed routes. A003AF and A003AG (and corresponding items under Options) are used when the Table Rates are used for shipping/receiving point in Hokkaido because explosives will not be allowed for Seikan Tunnel.

(10) Question: PWS 1.3.1. In addition, the Contractor shall stop at other Government installations located in the vicinity of the origin/destination Government installations for partial stuffing / unstuffing when required.

① When will these stops be identified (i.e.at the time of order placement)?

② How are rates determined for this service?

③ Will the stops be included in the calculation of distance travelled between origin and destination?

Answer: ① The TO will notify these stops at the time of order placement.

②＆③ The rates will be determined by the Table Rates. The travel distance will be calculated based on the Military Traffic Management Bulletin (MTMB) No. 2.

(11) Question: PWS 1.2.3. Based on shipping information provided by the TO, the Contractor shall obtain a GOJ transport certificate from the Prefectural Public Safety Commission responsible for the area from where the explosives are shipped, and it must be carried when the explosives are being transported.

① Based on the above statement, is a license to transport hazardous freight to be applied for and obtained on a per shipment basis?

② Will the Government award a contract to a contractor who does not currently possess a license to transport hazardous freight, but will do so during the solicitation process?

Answer: ①&② It is our understanding that no special license is required for commercial transportation contractors to move explosives other than the GOJ transport certificate which is to be obtained for each requirement.

(12) Question: What should the Contractor do if in the event that the Prefectural Public Safety

Commission directs the Contractor to change the ordered route?

Answer: We expect that such a case would occur vary rarely because this service involves transport by rails. It may be possible if there is any accident in JR railways or public roads. During the last 20 years or so, the Committee extended the date for transportation because of the World Cup held in Japan and it was the only time the ordered requirement had to be changed. There was no change in the route.

(13) Question: Would explosives such as Raikan or Orindan be included?

Answer: No. The U.S. Government has their own classifications of explosives and those such as Orindan requires to be escorted by U.S. Government personnel, therefore, they cannot be moved under the resulting contract for this requirement. In addition, those that cannot be transported through Seikan Tunnel will not be transported under the resulting contract.

(14) Question: PWS 1.6.6. Stuffing and Unstuffing, states that “Stuffing and unstuffing of JFRC 5-ton containers shall be performed by the Government. However, the Contractor shall not be relieved from the responsibility for the proper stowage and securing of freight against loss or damage while in transit.” Normally, shipping clauses state that the carrier (in this case, the contractor) is relived of liability/responsibility of loss or damaged caused by handing, loading, stowage or unloading of the goods by a merchant (Government) or any person acting behalf of the merchant.

① Please clarify if “proper stowage and securing of freight” refers to the container to be transported and not the contents of the container.

② If the Government does not properly stuff containers or lash/shore/secure cargo, what level of responsibility is the contractor liable? If loss or damage does occur, how is a determination made that the containers were stuffed in a manner as to prevent such loss or damage?

③ What measure(s), if any, should the contactor take if they not be comfortable with the way the Government stuffs the container or secures the cargo and/or its contents?

Answer: ①～③ Stuffing of JFRC 5-ton containers are performed by the Government who are familiar with stuffing containers and the Government and JR seal the stuffed container. If the seal did not damage, the container is safe.

(15) Question: Is the contractor required to insure the cargo and/or its contents?

Answer: The solicitation/contract does not specifically require the contractor to have insurance coverage, but it is the offeror’s decision.

(16) Question: What is the potential maximum value of all cargoes that may be stuffed into one (1) container? What is the average dollar value of all cargoes to be moved per container?

Answer: In the last three years, the maximum value was about ¥2,000,000 for ammunitions and the average was ¥1,700, 000 per container.

(17) Question: Liabilities for freight. The contractors who hold a permit under the GOJ, Kamotsu

Riyo Unso Jigyo Hou, Ni-shu (Freight Carrier-Using Transport Business Law, Type II) follow the industry standard contracts which state that contractors are not liable for damages to freight if the damage was not caused by their responsibility.

Would it be different for this requirement?

Answer: Basically the same. However, please note that the Contractor is bound to follow the contract terms and conditions for this requirement, and not the terms of the industry standard contract.

b. Exhibit

(1) Question: Exhibit A, Pricing Schedule. We understand that the estimated quantities in Items

No A001 and A0020 refer to the number of containers during the contract period.

Does this also for a one-way service?

Answer: Yes, it is for one-way service (i.e., A001 = 12 containers for one-way per year, A002

= 2 containers for one-way per year and the same for corresponding items for options)

(2) Question: Exhibit A Pricing Schedule: What do the percentages in the estimated quantity column for Items A003AA, A003AB, A003AT, A003AU, A003AV represent? Is this the projected workload?

Answer: They indicate the estimated percentages per year to be used based on the historical records obtained from actual expenditures.

(3) Question: Does Camp Zama have ammunition chambers?

Answer: Yes.

(4) Question: What does “(without GOJ transport certificate)” mean?

Answer: The pre-fixed two routes at A001 and A002 (and corresponding items under Options) are to transport explosives that are NOT required to obtain a GOJ transport certificate. If in the event the Contractor must obtain a GOJ transport certificate, then the Contractor will charge additional amount at Item A003AC. There was one order that required a GOJ transport certificate during the last three years.

(5) Question: If in the event that the economic condition changes drastically during the option periods, would the Government consider increasing option prices?

Answer: If such a drastic change occurs in the future, the Contractor’s request may be considered. However, it is not something that is promised at this point.

c. SF1449

Question: The solicitation states that consumption tax is exempted for services procured for US

Forces' official purposes. However, we know from our experiences that it does not apply when using subcontractors. In other words, consumption tax that the prime contractor would incur for services rendered to US Forces using their own assets or manpower is exempted, however, if in the event the prime uses subcontractors, consumption tax that a subcontractor charges the prime is NOT exempted. Therefore, offerors may include consumption tax to be paid to subcontractors in their offer. Is it correct understanding?

Answer: <<AS OF 27 Jun 2013: We are currently inquiring our legal office and response will be provided when it is provided.>>

3. The following supplementary explanations were provided:

a. Policies and Procedures for Doing Business with the U.S. Government

Offerors were advised to read this document carefully and follow the policies and procedures therein.

b. Notice to Offerors for Solicitation

Offerors were advised to read this document carefully and follow the policies and procedures therein.

The requirement at paragraph 1.c, Authorization to Perform, was emphasized.

c. SF1449

(1) Pages 1 thru 5 of 35.

(a) Emphasized Note 2: Indefinite-Delivery Indefinite-Quantity (IDIQ) Contract Minimum and

Maximum Value.

(b) Addenda to SF 1449: Page 1 of 35, block 17b of SF 1449, Remittance Address: If the offerors check in block of 17b, offerors shall insert the remittance address in Page 6 of 35.

(2) Clauses/provisions: It was emphasized that it was the offerors’ responsibility to read and understand the full text of these clauses and provisions.

(a) Addendum to FAR 52.212-4 Contract Terms and Conditions (Pages 7 and 8 of 35):

This clause stipulates the procedure for obtaining tax exemption. Offered prices shall be excluding consumption and fuel taxes.

(b) 52.212-5 CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT

STATUTES OR EXECUTIVE ORDERS--COMMERCIAL ITEMS (Page 9 of 35):

(48) 52.232-34, Payment by Electronic Funds Transfer—Other than Central Contractor

Registration (May 1999) 31 U.S.C. 3332). “For the purpose of this clause, the block is completed to read below.

(b)(1) by date when the Contractor submits the first invoice using EFT Forms established by DFAS.”

(c) Addendum to FAR 52.212-1, INSTRUCTIONS TO OFFERORS – COMMERCIAL

ITEMS (Pages 19 and 20 of 35):

The offerors are required to obtain "Commercial and Government Entity (CAGE) code" and “Data Universal Numbering System (DUNS) number", and register in the SAM database.

(d) Addenda to FAR 52.212-1 INSTRUCTIONS TO OFFERORS—COMMERCIAL ITEMS

(Page 24 of 35):

C. 3. (a) INFORMATION REGARDING SUBMISSION OF PROPOSAL: Hand carried proposals must be deposited in the bid depository located at 374th Contracting

(Bldg. 620) , by the offer due date and time, therefore, offerors should allow sufficient time to submit an offer.

(e) FAR 52.212-2 Evaluation – Commercial Items (Pages 24 thru 27 of 35): The following were emphasized:

1. (a) The government will award a contract resulting from this solicitation to the responsible offeror whose offer conforming to the solicitation will be most advantageous to the Government, price and other factors considered. The following factors shall be used to evaluate offers: (1) PRESENT/PAST PERFORMANCE, and (2) PRICE.

2. Price: Initially offers shall be ranked according to price, including option prices. An offeror’s proposed prices will be determined by multiplying the quantities identified in the

Pricing Schedule by the unit price for each item to confirm the extended amount for each.

The price evaluation will document the reasonableness and affordability of the proposed total evaluated price based upon individual unit price.

3. Present/past performance: The evaluation will be performed based on the three (3) criteria (Recency, Relevancy, and Quality).

4. Relevancy definitions are listed in Description of Services/General Information under

PWS, paragraph 1 (Solicitation Attachment 1).

(f) FAR 52.212-3 Offeror Representations and Certifications – Commercial Items (Pages 27 thru 33 of 35): Offerors must complete required fill-ins.

(g) DFARS 252.212-7000 Offeror representations and certifications- Commercial items

(Pages 34 of 35) : Offerors must complete required fill-ins.

d. Exhibits: Explained how to fill them out. Emphasized that offerors must read the formulas of Items x003AA, x003AB, x003AS, x003AT, x003AU and x003AV carefully.

e. PWS (Attachment 1 to SF1449): Offerors were advised to read this document carefully.

f. Quality Assurance Surveillance Plan (QASP) (Attachment 2 to SF1449)

g. Past/Present Performance Reference List (Attachment 3 to SF1449): The Contractor should send this form by email or fax directly to 374 CONS, not later than 25 Jun 13, which is one week earlier than the due date for price offers, SF1449.

h. Past/Present Performance Survey (Attachment 4 to SF1449): Three referenced companies selected by the offeror must send it directly to 374 CONS, not later than 2 Jul 13which is the same due date for price offer, SF1449.

8. Additional questions and answers will be provided to all offerors and posted on Federal Business

Opportunities (FBO) website. The offeror needs to submit proposals to the 374th Contracting Squadron building by the closing date and time (and/or earlier) specified in the solicitation.

9. The pre-proposal conference was concluded at 12:30 hrs on 20 Jun 13.

10. The foregoing is a brief summary of the discussions held during subject conference. Those present should advise the undersigned of any additional information, clarifications, or corrections that they feel should be made to the minutes within five (5) calendar days from distribution date. Failing notification to the contrary, these minutes will stand for the record.

MASAYO INOUE MAKI KODAMA

Contract Specialist Contracting Officer cc:

LRC Honshu, 403 rd

AFSB

Distribution:

All prospective offerors