Grocery BPA SOW Draft.doc

CAUTION NOTICE

THE CONTENT AND STRUCTURE OF SOLICITATION SPE302-21-X-XXXX IS NEW. PLEASE READ CAREFULLY BEFORE SUBMITTING YOUR OFFER.

The awardee will be required to have a computer system capable of accepting delivery orders and processing Electronic Data Interchange (EDI) transactions. This contract will require the contractor to have electronic commerce/electronic data interchange EC/EDI capabilities.

All contractors who choose to conduct business with the Department of Defense must now be registered in the System of Award Management (SAM) database. In addition, we encourage all vendors who receive contract awards as a result of this solicitation to access the “Dynamic Small Business Search” feature of SAM to identify potential suppliers and teaming partners for this initiative. You may go to the System of Award Management at www.sam.gov and click on the “Dynamic Small Business Search” button. When making your procurement decisions we encourage one’s consideration of local business as a means to nurture small business and local economies.

All contractors who receive awards as a result of this initiative are encouraged to utilize the SBA SUBNet database to assist them in further identifying additional small business sources of supply. Vendors may post notices of sources sought for teaming partners and subcontractors on future contracts. Small business can review this web site to identify opportunities in their area of expertise. You may access the SBA PRONet database through the SBA Website at www.sba.gov.

Included in their proposal submission, offerors are required to substantiate Delivered Prices for all items in the Schedule of Items, with invoices / quotes for all groups offered on. See section XXXI, para. D, item 2, for more information.

CONTRACTOR CODE OF BUSINESS ETHICS (OCT 2015)

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.

RAPID GATE, DEFENSE BIOMETERIC IDENTIFICATION SYSTEM (DBIDS) REQUIREMENT and/or OTHER SECURITY PROGRAMS

Many bases may require enrollment in a particular system for base security such as RapidGate,the Defense Biometric Identification System (DBIDS), or other similar system(s). Such systems manage access to Department of Defense (DoD) installations, and will not allow entry without clearance. During the contract start-up/ implementation period, the Contractor must contact all customer locations to determine whether enrollment in RapidGate, DBIDS, or another security program is required for access to each location. If RapidGate, DBIDS, or other security enrollment is required, the Contractor must take all necessary steps to obtain this in time for the start of performance under this contract. Failure to have clearance may result in a vendor being turned away from the base and being unable to complete delivery. The Contractor is responsible for any costs associated with RapidGate, DBIDS, and/or other security program enrollment and must ensure that a a properly enrolled driver is available for all deliveries. We currently estimate that RapidGate or DDBIDS enrollment will cost about $250 per company and $200 per enrolled employee for 1 year of access to multiple locations, but the cost of RapidGate, DBIDS or other security enrollment may vary, so the Contractor should contact the specific security system contractor to determine its own costs. If more than one driver is required, enrollment must be obtained for each driver. Note that enrollment can take several weeks, so an awardee that is not already enrolled must begin enrollment at the time of award notification at the latest. If difficulty or delay in enrollment is encountered during the start-up/implementation period, the Contractor MUST contact the specific security system contractor and/or the Security Officer at the applicable customer locations to resolve any issues with processing enrollment so that the Contractor will be able to deliver as required.

For additional information on current base security systems including RapidGate and DBIDS, including enrollment instructions, please visit their websites at www.rapidgate.com and https://dbids-global.dmdc.mil/enroll#!/.

CHECKLIST - DID YOU REMEMBER TO ?????

Fill in Block 17a, of 1449?

Fill in Block 17A. Continued, on the bottom of page 4?

Indicate remittance address and DUNS Number block 17B. Continued, on the bottom of page 4, if different, in offer?

Sign Block 30a, name in Block 30b, and date in Block 30c.?

Sign and return any/all amendments?

Return one (1) COMPLETE & SIGNED copy of the solicitation?

[ ] Return one (1) copy of Pricing Spreadsheet with pricing?

Fill out all certifications and representations in solicitation or submit a copy of your firm’s Online Representations and Certifications Applications (“ORCA”) Registration from System for Award Management (“SAM”) website?

[ ] Submit a valid USDA Good Agricultural Practices (“GAP”) and Good Handling Practices (“GHP”) or independent third-party certifying company audit inspection report(s) / certificate for each place of performance?

Checked box stating you intend or do not intend to use one or more facilities as a place of performance under Federal Acquisition Regulation (“FAR”) 52.215-6 Place of Performance?

In accordance with the clause above, submit a separate list of places of performance, i.e. distribution centers / warehouse locations that will directly support the proposed customers? Warehouses that function as backups should be designated as such.

CAUTION: The above checklist is for convenience purposes only. This list is not intended to be all-inclusive. Offerors are responsible for carefully reviewing the entire Solicitation to ensure proper submission of all required information.

STATEMENT OF WORK

I.

INTRODUCTION

A. The Defense Logistics Agency (DLA Troop Support) intends to support the needs of its military customers by entering into a Blanket Purchase Agreement (BPA) to supply Grocery Items to military customers located in Oahu, Hawaii. This procurement is being processed under the authority of FAR 13.303-2 – “Establishment of BPAs”. The resultant award will be a Total Small Business Set-aside using NAICS Code 311999, Size Standard 500.

A successful offeror(s) will be required to source, purchase, store, and deliver a variety of grocery items to DLA Troop Support customers on an ongoing basis, while at the same time maintaining acceptable fill rates, levels of customer service, and product quality. Therefore, an offeror must currently possess the physical, logistical, and financial resources to serve as a commercial distributor of a variety of grocery items. By offering, an offeror affirms its status as a current and functioning commercial distributor of grocery items. In order to determine whether an offeror meets the technical requirement of being a current and functioning commercial grocery distributor, the Contracting Officer will require an offeror to provide its current, valid Perishable Agricultural Commodities Act (“PACA”) license. In addition, the Contracting Officer will require an offeror to submit a valid Good Agricultural Practices (“GAP”)/Good Handling Practices (“GHP”) or independent third-party certifying company audit inspection report(s) / certificate for each place of performance identified in the offeror’s proposal. The audit report(s) must demonstrate that a passing score(s) was/were received. Please note that a request for the aforementioned information by the Contracting Officer will be used to make a determination of whether or not the offeror meets the technical requirement of being a current and functioning commercial distributor of grocery items. This information is not being sought to determine an offeror’s likelihood of success in performing the contract as would be the case in a responsibility analysis.

B. This solicitation is being issued as 100% Small Business set-aside acquisition under full and open competition procedures. NAICS is 311999 and size standard is 500. A waiver of the Non-Manufacturer rule has not been requested for this acquisition because it is an acquisition for multiple items. In accordance with 13 CFR 121.406(e), if at least 50% of the estimated contract value of an acquisition for multiple items is composed of items that are manufactured by small business concerns, then a waiver of the Non-Manufacturer rule is not required. As such, for this acquisition, it is expected that items comprising at least 50% of the contract value will be manufactured by small business concerns. The contracting officer must be immediately notified if it appears as though this requirement will not be met.

C. The length of this BPA is three (3) years. The Contractor shall furnish a full line of grocery products, perishable, non-perishable, specialty, subsistence items if and when requested by the contracting officer (or authorized representative from February 13, 2022 through February 14, 2025 (total 3 years). The Government will provide two weeks advance notice to the contractor prior to cancellation of the BPA.

II.

EFFECTIVE PERIOD OF CONTRACT

A. Any resulting contract (also referred to as BPA) from this Solicitation will not exceed 3 years commencing on the effective date of the contract.

III.

ESTIMATED DOLLAR VALUE / GUARANTEED MINIMUM / MAXIMUM

A. There is no guaranteed minimum dollar value to the BPA. The maximum of this BPA is $750,000.

IV.

CONTRACT START-UP PERIOD

A. After an award is made, the Contractor (also referred to as the Awardee) will be required to take steps to implement its new contract prior to initial ordering/delivery. Within 15 days after the award is made, the Contractor shall submit a proposed implementation schedule to the Contracting Officer that details all of the necessary steps that are required to ensure proper contract performance. This may include but is not limited to catalog/ordering/invoice testing (STORES), sourcing new items, finalize delivery schedule per customer location, etc. An additional 30 days will be granted for actual completion of the proposed schedule. No more than 60 calendar days after award, however, will be given to complete the schedule and have a fully functional distribution account in place for all customers covered under the contract(s).

V.

ELECTRONIC ORDERING CATALOGS

An offeror that receives an award after implementation of this BPA will be required to maintain electronic catalogs that list all items available to the customers covered under this solicitation. These catalogs will be STORES (for Troop contracts). Each item in the catalog shall contain the corresponding national or local stock number (as appropriate), Government item description, packaging characteristics, unit of issue, and unit price.

A. Catalog Maintenance

1. New Items

(a) Prior to commencement of the first order, DLA Troop Support, its customers, and the Contractor will collaborate to identify items not found in the solicited Schedule of Items that will be required to be added to the ordering catalog. This effort is limited in its scope but necessary to update the catalog with items that were not required previously due to seasonality and other contingent circumstances unknown to the Contracting Officer at the time of solicitation. Neither a Contractor nor customers are permitted to add new items to the catalog without initiating a new item request to the Contracting Officer, which requires a separate fair and reasonable price analysis per item.

(b) If a customer seeks to order an grocery item that is not a part of the catalog after the customers’ ordering period commences (i.e. post “start-up” period), the Contractor will be afforded a maximum of 15-calendar days to source the item, obtain a stock number from the Agency (in the event that one does not already exist), and add the item to the ordering catalog via an 832 catalog transaction. The final step prior to the item being “live” on the catalog is for the Contracting Officer to determine the item’s price “fair and reasonable.” Once this is complete, the item should remain a constant within the contractor’s inventory, subject to limited seasonal and other availability issues. When requesting all item approvals (including new additions and/or changes to an existing item, such as pack size, etc.) with the Contracting Officer, the Contractor shall use the “Request for New Item” Form. This form is mandatory and without it, no new items or changes to existing items will be processed by the Contracting Officer.

(c) Upon receiving the award, it is expected that the Contractor assume the responsibility of introducing new produce items to the customers, as well as showing cost-effective alternatives to their current choices. However, the requirements will ultimately be determined by the customer(s) and added to the ordering catalog by the Contracting Officer per the process outlined below.

2. Catalog Pricing

(a) Schedule of Items Pricing: Items priced in the Schedule of Items will be included in the ordering catalog following award. Schedule of Items will be determined fair and reasonable prior to award. The final proposed price for each item in the Schedule of Items will be fixed as the catalog price during the BPA Call period for customer ordering.

(b) Catalog Prices: Prices are fixed for the BPA Call period of performance. Upon award, all items included in the Solicitation’s Schedule of Items that ultimately are included in the ordering catalogs have been deemed “fair and reasonable” from a pricing standpoint by the Contracting Officer.

(c) Contractor-Requested Catalog Additions: Before an item is added to the catalog, the Contractor is required to submit to the Contracting Officer the “Request for New Item” Form as previously addressed. Said request shall include the stock number, Government item description including the quality grade of the item, proposed unit price with a corresponding supplier invoice or quote (quotes permitted in very limited circumstances as approved by the Contracting Officer; e.g. Contractor never purchased item before or stale prices due to seasonality), and previously agreed upon distribution price. The request is due by 9:00 A.M. HST on the Monday prior to Wednesday’s catalog updates. Please note that meeting this deadline does not guarantee that the item’s price will be approved as “fair and reasonable” nor does it mean that the Contracting Officer will have been able to complete his/her review of the request prior to the time necessary to incorporate it into the following ordering period’s ordering catalog. The Contracting Officer will review the catalog addition request and upon determining the price fair and reasonable will contact the Contractor to indicate acceptance. The Contractor shall then include the item on the next scheduled Wednesday catalog update after the request is approved. Should the proposed price fail to be determined “fair and reasonable,” the Contracting Officer will conduct negotiations with the Contractor. If, after negotiations, the proposed price still cannot be determined “fair and reasonable,” the item will not be added to the catalog.

(d) BPA Call Pricing Requirements: The Contractor’s catalog prices, as awarded, constitute the catalog prices for an agreed upon BPA Call period of performance. These prices remain unchanged during awarded BPA terms.

VI. PRICING DOCUMENTATION

1. The Government may require the contractor to submit invoices and other documentation from all subcontractors (as defined in FAR Part 44.101) and/or any entity in the delivered price supply chain to substantiate or identify any Rebates/Discounts. If the Contracting Officer determines, after reviewing an invoice or other documentation, that a Rebate/Discount should have been, but was not, passed on to the Government, the Government shall be entitled to a refund in the amount of the overcharges, inclusive of interest. If the Contractor believes it erroneously credited a rebate/discount to the Government, Contractor may submit a request for an equitable adjustment for the amount of the undercharge. The request may be entertained if the Contractor can demonstrate to the satisfaction of the Contracting Officer that the error did not result from the fault or negligence of the Contractor. The Contractor will not be entitled to reimbursement if the undercharge was the fault or negligence of the Contractor.

2. The Contracting Officer, and/or authorized representative(s), shall have the right to examine and audit the Contractor's records relevant to pricing under the contract, including records related to the existence and proper accounting of rebates, discounts, etc. The Government may also review/audit the Contractor’s electronic purchasing system to confirm that the Delivered Price of a product sold to the Government is accurate.

3. Failure on the part of the Contracting Officer to identify non-compliance with this provision or to challenge the Contractor’s erroneous interpretation of this provision shall not constitute waiver or a defense against the Government’s entitlement to any of Rebates/Discounts or any other remedies afforded by this section, the contract, or other applicable laws and regulations.

VII.

ADDITION OF NEW CUSTOMERS

A. Adding Customers within the Contract’s Geographic Distribution Region/Zone:

1. After contract award, there may be instances when new customers request support of their grocery requirements. Additional DoD and/or Non-DoD federal government customers that request DLA Troop Support grocery item support may be added to the contract without any new acquisition or competition process, if the customer(s) is/are within the geographic distribution region/zone covered by this contract.

2. The decision as to whether a potentially new customer is within the contract region or zone and, thus, will be added to the contract without further competition and at the existing contract prices, shall be the sole decision of the DLA Troop Support Contracting Officer.

3. Pursuant to the above, the Contracting Officer will instruct the contractor to include the customer(s) at the effective contract prices applicable to that distribution zone/region.

B. Adding Customers outside the Contract’s Geographic Distribution Region/Zone:

1. This provision applies to the following customers:

(a) A new DoD or Non-DoD federal customer that is deemed by the Contracting Officer to be outside the contract’s geographic distribution region/zone.

(b) An existing DoD or non-DoD federal customer that is deemed by the Contracting Officer to be outside the contract’s geographic distribution region/zone but has been previously supported on a separate contract covering a geographic distribution region/zone.

2. The customers described in paragraph B.1., above, and their produce requirements, may be added to any contract resulting from this solicitation as follows:

(a) In the judgment of the Contracting Officer, the customer(s) at issue is/are located in an area that is considered adjacent or proximal to the geographic distribution region/zone of the resulting contract. In a circumstance where the customer is located in an area that is adjacent or proximal to multiple existing produce contracts, the decision of which contract is most satisfactory to the Government for purposes of adding the customer(s) will be the sole decision of the Contracting Officer, taking into consideration numerous factors, including but not limited to those contained in this provision. Further, to that end, it is the Contracting Officer’s sole decision as to which existing contractors available in the aforementioned region/zone(s) will be solicited for the support of the customer(s).

(i) The Contracting Officer will request complete price proposals to support the subject new customer(s), to include distribution and delivered prices. Prior to any customer being added to the resulting contract, the Contracting Officer shall determine all proposed prices to be fair and reasonable. To this end, negotiations may be required, in which the same processes and procedures contained within the instant solicitation may be employed.

(b) In the judgment of the Contracting Officer, the customer(s) at issue is/are not located in an area adjacent or proximal to the geographic distribution region/zone of the resulting contract, and/or the anticipated customer requirement is insubstantial, the customer(s) will not be added.

C. Under no circumstance may the resulting contract’s maximum dollar value be exceeded with the addition of any customer(s) and its respective produce requirements.

VIII.

CUSTOMER SERVICE

A. The Contractor shall provide at least one full-time Customer Service Representative’s name and contact information to maintain continuous contact with all of the ordering customers, as well as at least one back-up representative’s name and contact information, when the Customer Service Representative is not available.

IX.

ORDERING SYSTEMS

A. Subsistence Total Order & Receipt Electronic System (“STORES”): DOD customers will order using the STORES catalog as applicable. The Contractor is responsible for establishing and maintaining the STORES catalog.

1. Accessed via the Internet, STORES is the Government’s translator/ordering system that is capable of accepting orders from any of the Services’, i.e. Army, Air Force, Navy, or Marines, individual ordering systems and translating them into an Electronic Data Interchange (“EDI”) format. In addition, this information is passed to DLA Troop Support for the purposes of contractor payment and customer billing.

2. Customers will be able to order all of their requirements through STORES. The System will transmit orders to the Contractor and DLA Troop Support.

3. The Contractor is required to interface with STORES and must be able to support the following EDI transactions:

Electronic Invoice

Payment Voucher Information

Catalog (Outbound - Vendor to DLA Troop Support)

Purchase Order

Receipt

Functional Acknowledgement

Note: A complete description of these transaction sets is included in the “EDI Implementation Guidelines” and can be found at http://www.dla.mil/TroopSupport/Subsistence/Doing-Business-with-Sub/STORES/, click STORES and EDI Requirements.

4. The Contractor shall have access to the Internet and be able to send and receive electronic mail (email).

5. Unit prices must be formatted not more than two (2) places to the right of the decimal point in all ordering catalogs. Standard rounding methods must be applied. For example, a price of $2.215 or higher must be rounded up to $2.22 and a price of $2.214 or lower must be rounded down to $2.21.

6. Contractors are required to utilize the Government’s item descriptions on all electronic ordering catalogs (832 transmissions) as well as on its invoices, delivery ticket to customer and 810 invoice transaction set.

7. The Contractor will utilize the DLA Troop Support invoice reconciliation process, or other such systems as may become available, to the maximum extent, towards the goal of correcting invoices early and facilitating the payment process.

8. In the event the STORES system or the Contractor’s interface is not operational, the Contractor must provide alternate ways for the customer to order (e.g., by fax by phone, pick up orders, etc.)

9. Public Key Infrastructure (“PKI”)/ External Certificate Authorities (“ECA”) Certificates: The Department of Defense (“DoD”) PKI Certificate will be required for all DoD users. A DoD PKI certificate will be required for all contractors. The requirement for PKI certificates is implemented in accordance with DoD security policy promoting secure electronic transactions.

(a) Obtaining a PKI certificate:

(i) Contractors who do not work on-site at a Department of Defense facility may purchase a DoD PKI certificate from one of three External Certificate Authorities (“ECAs”). The ECAs are vendors who provide digital certificates to DoD’s industry partners who are using their own equipment or working in non – Governmental facilities. Certificate prices range from $99 - $179 per certificate per year, with volume discounts at some ECAs. A list of ECAs is available at the following web address: https://www.transactionservices.dla.mil/daashome/pki_contacts.asp .

(ii) Each contractor must fully comply with the DoD requirement to implement PKI in order for our information systems to remain secure and viable.

X.

ORDER PLACEMENT, LEAD TIME, and ADJUSTMENTS/CANCELLATION OF ORDERS A. The minimum order requirement for any resultant contract is $50.00. This requirement shall be based on the aggregate total of orders for a specific delivery date to all customers located within a particular military base or delivery location.

Troop customers shall place their orders to accommodate at a minimum a 2-day lead time, i.e “skip day” delivery. For example, an order placed on Monday, September 1st would have a required delivery date of Wednesday, September 3rd. Orders may be placed with a longer lead time not to exceed 21 days in advance of the requested delivery date.

B.

Individual orders or purchases (or call) for the requirement are subject to dollar limitations of $150,000 per call. The Government will award orders to BPA holders resulting from identified need through Request for Quotes (RFQ) to the responsible offeror whose offer, conforming to the BPA, is the lowest evaluated aggregate price.

C. Orders placed in excess of $5,000 the vendor must request approval to fulfill the order from the contracting officer prior to fulfilling the order. The vendor is required to send an email (TroopSupportPacificProcurement-Hawaii@dla.mil) when they receive any order over $5,000 USD.

D. Individuals Authorized to Place Calls under the Blanket Purchase Agreement (BPA)

Contracting Officers, Contract Specialists, Procurement Technicians (or as designated by Contracting Officers) assigned within the DLA Troop Support Pacific and/or customers authorized to order from the STORES Web catalog are authorized to place calls under this BPA.

E. Extent of Obligation. The government is obligated only to the extent of authorized purchases actually made under this agreement. Delivery of unauthorized products shall be at the risk of and the sole responsibility of the contractor and may result in non-payment as well as cancellation of this agreement.

F. All invoice pricing will be based upon the Contract Unit Price at time of order by the customer(s). Therefore, for any item ordered on a Friday to be delivered the following ordering period, pricing will be based upon the catalog price in effect the day of order (Friday in this example), regardless of whether the unit price for that item subsequently changes as part of the next ordering period’s ordering catalog updates.

G. Once submitted through the applicable electronic ordering system (i.e. STORES), an order may be cancelled by a customer up to 24 hours before scheduled delivery via written notification to the Contractor and the Contracting Officer. Within less than 24 hours from delivery, an order may be cancelled by mutual agreement between the customer and the Contractor. In the event of an act of God, such as extreme weather, the specific situation regarding a cancelled delivery will be dealt with in an equitable manner by the Contracting Officer, who has the ultimate authority and discretion to resolve said issues.

H. Adjustments – For procedures discussing adjustments to order, refer to STORES manuals.

XI.

ITEM AVAILABILITY

A. Contractors must have the ability to provide to the customers a wide range of grocery items in sufficient quantities to fill all customer requirements and maintain the overall 98% contract fill rate. All supplies shall be delivered on a “fill or kill” per line item basis (i.e. If a Contractor cannot fill a line item, the line item dies). Therefore, item substitutions are not authorized.

B. Contractors shall notify the customer within 24 hours (for Troop customers)) of required delivery date/time of the non-availability of any particular ordered item, whether in whole or in part. The customer may choose to replace the non-available item with another item from the contract catalog by placing a new, separate order for the item in STORES, as applicable. Assuming the proper procedure is followed, this circumstance (i.e. replacement of a NIS item with a separate order for another catalog item) will not negatively impact a Contractor’s fill rate.

XII. REPACKAGING & SPLITTING OF CASES

A. Some items, DLA customers may require smaller pack sizes than are commonly available in the commercial marketplace. Such items are included in the instant Schedule of Items and may be added at a later date during contract performance. It is incumbent on the Contractor to determine how it will supply these items in accordance with the required pack sizes. In so doing, the Contractor may decide to split cases and repackage product at its own facility.

B. Splitting cases and repackaging product, as described in the preceding paragraph, do not constitute processing, and, therefore, do not meet the conditions of a private label holder, as defined in Section VII. Accordingly, the Contractor is prohibited from including any costs associated with its own in-house splitting of cases and repackaging product in the Contractor’s Delivered Price. Instead, the costs associated with in-house splitting cases and repackaging product must be included in the Contractor’s Distribution Price.

XIII.

PACKAGING, PACKING, LABELING, AND MARKINGS

A. All labeling, packaging and packing shall be in accordance with good commercial practice. Shipping containers shall comply with the National Motor Freight Classification and Uniform Freight Classification Code.

B. To ensure that the carrier and the receiving activity properly handle and store items, standard commercial precautionary markings such as “KEEP REFRIGERATED” shall be used on all cases when appropriate.

C. Protection during inclement weather is required. All products that are susceptible and sensitive to temperature must be protected by any means to prevent damage.

XIV.

DELIVERY INSTRUCTIONS

A. Contractors shall ensure all products are delivered in sanitary trucks that are of a commercially acceptable standard. All delivery trucks must be equipped with a lift gate to expedite the offloading of products. Trucks shall maintain proper temperatures in accordance with standard commercial practices. Deliveries shall be FOB Destination to all delivery points. Delivery will be completed when the Contractor has unloaded the order(s) from the vehicle and placed them on the dock, and customer receiving personnel has accepted the delivery ticket, in accordance with Section XV below. All items will be delivered to customer locations free of damage and with all packaging and packing intact. The Contractor shall remove all excess pallets used for delivery from the delivery point.

B. Customers’ delivery schedules (days and times), routes, and stop-off sequences will be coordinated and verified with the customers on a post-award basis by the Contractor immediately following award and on an annual basis as required. At a minimum, each Troop customer receives three deliveries per week. However, these schedules may be revised as necessary on a case-by-case basis at the approval of the Contracting Officer.

C. Products for individual customers/dining facilities must be segregated. Many of the military bases have more than one delivery point. All products shall be palletized and segregated by drop-off point and loaded into the delivery vehicle in reverse drop sequence. The intent is to provide expeditious off-loading capability and delivery to the customers.

D. The Contractor shall ensure that the personnel loading and delivering the product provide professional, prompt, and efficient service to the customer. Failure to adhere to these standards will be reported to the Customer Representative and the Contracting Officer by the affected customer(s) whereby appropriate corrective action will be coordinated with the Contractor.

XV.

INSPECTION AND ACCEPTANCE

A. Inspection and acceptance of products will be performed at destination. The inspection is normally limited to identity, count and condition; however, this may be expanded if deemed necessary by either the military Veterinary Inspector, Dining Facility Manager, Food Service Advisor/Officer, or the Contracting Officer. Delivery vehicles may be required to stop at a central location for inspection before proceeding to the assigned delivery point(s). In addition, the delivery vehicles will be inspected for cleanliness and condition. Supplies transported in vehicles that are unsanitary, or which are not equipped to maintain prescribed temperatures, may be rejected without further inspection. Failure to identify latent defects or similar issues at time of acceptance will not absolve the Contractor of its liability or preclude the customer from obtaining appropriate remedy upon the timely discover of said defects or issues after-the-fact. In this circumstance, the customer shall notify the Customer Representative who will coordinate with the Contracting Officer in seeking an appropriate resolution.

B. The authorized Government receiving official at each delivery point is responsible for inspecting and accepting products as they are delivered. The delivery ticket shall not be signed prior to the inspection of each product. All overages/shortages/returns are to be noted on the delivery ticket by the receiving official and truck driver. The authorized Government receiving official’s signature and printed name on the delivery ticket is required for acceptance of the product. All signatures MUST be legible along with a printed name and title block. Failure to adhere to this requirement may result in disputes going against that party as its failure can severely limit the Contracting Officer’s judgment.

C. Delivery Ticket and related information. No electronic invoice may be submitted for payment until acceptance is verified.

1. Troops: The Contractor shall provide three copies of the delivery ticket with the shipment. The first copy is provided to the receiving official (i.e. the customer) who will use the delivery ticket as the new receipt document. The second copy will be retained by the Contractor (or its agent) for invoicing and the final copy will be forwarded (Either as the driver leaves the base or faxed/emailed with 24 hours of delivery) to the Fleet Logistics Center “FLC” or Fleet Industrial Supply Center “FISC” located at the prospective Base.

XVI.

AUTHORIZED RETURNS

A. The Contractor shall accept returns under the following conditions:

1. Products shipped in error.

2. Products damaged in shipment.

3. Products with concealed or latent damage.

4. Products that are recalled.

5. Products that do not meet shelf life requirements.

6. Products that do not meet the minimum quality requirements as defined for the items listed in the schedule.

7. Products delivered in unsanitary delivery vehicles.

8. Products delivered that fail to meet the minimum/maximum specified temperature.

9. Quantity excess as a result of catalog error by the Contractor.

10. Products that are not from a sanitarily approved source.

11. Products that do not comply with DFARS 252.225-7012 Preference for Certain Domestic Commodities (Berry Amendment), if no exception to this clause is applicable (see DNAD explanation above).

12. Any other condition not specified above that is deemed by the customer to be valid reasons for return, confirmed by the Contracting Officer within his/her discretion.

XVII.

REJECTION/RETURN PROCEDURES

A. In the event an item is returned for any of the reasons cited in Section XVI., the delivery ticket/invoice shall be annotated as to the item(s) rejected/returned. These items shall then be deducted from the delivery ticket/invoice. The invoice total must be adjusted to reflect the correct dollar value of the shipment. Replacements will be authorized based on the customer’s needs. On an as-needed basis determined by customer need, same day re-delivery of items that were previously rejected shall be made, so that the customer's food service requirements do not go unfulfilled for that day. The re-delivered items will be delivered under a separate invoice utilizing the same call number, contract line item number, and purchase order number for the discrepant line. These re-deliveries will not constitute an emergency order requirement.

B. In the event a product is rejected after initial delivery is made, the Contractor will pick up the rejected product or make other disposition arrangements deemed acceptable by the customer. Credit due to the ordering activity as a result of the rejected product being returned, will be handled through a receipts adjustment process in STORES, as applicable. If the Contractor has already been paid for the product, a claim will be issued through DLA TROOP SUPPORT’s financial system and the Contractor shall promptly pay the claimed amount. In all cases, one (1) copy of the credit memo is to be given to the customer and one (1) copy of the credit memo is to be sent to the DLA TROOP SUPPORT Contracting Officer.

C. It is a requirement of this solicitation that product shall be inspected upon receipt as promptly as practicable. However, failure to promptly inspect or accept supplies shall not relieve the contractor from responsibility, nor impose liability on any of the customers, for nonconforming supplies. See clause 52.212-4, paragraph (o).

XVIII.

INVOICING

A. Each delivery will be accompanied by the Contractor’s delivery ticket/invoice. The customer shall sign all copies of the invoice/delivery ticket. Any changes must be made on the face of the delivery ticket/invoice; attachments are not acceptable. See Section XV, para. B.

B. No paper invoices shall be submitted to DFAS for payment. For all orders placed via STORES and sent via EDI transaction set 850, invoicing for payment is to be filed electronically using EDI transaction set 810 (see https://www.stores.dla.mil/stores_web/ Select supply chains: Select Subsistence, Select Information: Select Stores & EDI Requests for EDI guidelines).

C. All invoices submitted by the Contractor must be “clean”, i.e. all debits and/or credits must be reflected on the invoice prior to its submission. The Contractor is required to ensure the accuracy of its invoices. The Reconciliation Tool in STORES Web provides the Contractor the ability to ensure said accuracy.

D. All internal debit/credit transactions must be completed prior to the submission of the invoice. Invoice lines that do not contain the correct invoice data and/or contain incorrect quantities delivered or prices charged will be rejected. The Contractor will be responsible for correction and re-submission.

E. The same invoice cannot be submitted with different dollar amounts.

F. The 810 invoices do not go through a testing phase. The Contractor immediately begins sending its invoices in once it has successfully sent its first 850 purchase order.

G. Any manually keyed, or emergency, orders must contain the word “Emergency” in the Purchase Order field when the invoice is submitted for payment. In addition, the CALL number and contract line item number (CLIN) will be entered as “9999” on the invoice. Failure to follow this procedure may result in the rejection of the Contractor’s invoice.

H. For catch weight items, standard rounding methods must be observed, i.e. less than .5 is rounded down; greater than or equal to .5 is rounded up. All weights must be rounded to whole pounds using standard rounding methods. Any line submitted for other than whole numbers will be rejected and require correction and re-submission by the Contractor. Note: Currently, no catch weight items apply to this Solicitation. This does not preclude the possibility that catch weight items may be added in the future for certain items.

I. Unit prices and extended prices must be formatted not more than two (2) places to the right of the decimal point. Standard rounding methods must be applied. For example, a price of $2.215 or higher must be rounded up to $2.22 and a price of $2.214 or lower must be rounded down to $2.21.

J. Although invoices must be submitted electronically via an 810 Electronic Invoice; the following address must appear in the “Bill To” or “Payment Will Be Made By” block of the Contractor’s invoice.

DFAS – Columbus Center (SL4701)

Attn: DFAS-BVDP

P. O. Box 369031

Columbus, OH 43236-9031

K. Each invoice shall contain sufficient data for billing purposes. This includes, but is not limited to:

1. BPA Number

2. Date of Purchase

3. Purchase Order Number

4. DoD Activity Address Code (DODAAC)

5. Itemized list of supplies furnished

6. Quantity, unit price, and extension of each item less applicable discounts (unit prices and extension need not be shown when incompatible with the use of automated systems; provided that the invoice is itemized to show this information).

7. Date of Delivery

8. Total dollar value on each invoice (reflecting changes to the shipment, if applicable)

L. Invoice transactions may be submitted to DLA Troop Support daily. All internal debit/credit transactions must be completed prior to the submission of the invoice. Invoice lines that do not contain the correct invoice data and/or contain incorrect quantities delivered or prices charged will be rejected. The Contractor will be responsible for correction and re-submission.

M. Invoice Reconciliation. The following tools have been developed to provide an additional method for the Contractor to ensure the accuracy of its own internal accounting process.

1. For STORES: Vendor Reconciliation Tool - In an effort to improve the payment process, Contractors are required to view what the customer has or has not receipted via the DLA Troop Support STORES website: https://www.stores.dla.mil/stores_web/Admin_Logon.aspx. The Contractor will have access to “un-reconciled” information, i.e., the invoice does not match the receipt because of the quantity and/or price discrepancy or because the customer has not posted a receipt. Both invoice information and receipt information will be available for review on the website by the Contractor. While the Contractor will not have the capability to update customer receipt information, update capability will be available for un-reconciled invoice information for 120 days. It is the Contractor’s responsibility to ensure accurate invoices.

XIX.

PRICE AUDITS

A. Price Audits. Contractors are advised that the Government may conduct price verification analysis of the Contractor’s performance on the resulting contract in the following manner:

1. At the Contracting Officer’s discretion, an internal Price Verification Team in conjunction with the Contracting Officer may require the Contractor to provide copies of specific invoices from suppliers, of this Solicitation.

2. The Price Verification Team will request the above documentation in writing and the Contractor will have thirty (30) days after the request to furnish the documentation.

3. A report of overcharges and undercharges (if applicable) will be forwarded to the Contractor, and the Contractor may be required to pay the Government for the net amount owed for overcharges. The Government reserves all rights and remedies provided by law or under the contract in addition to recovering any overcharges. Undercharges will be evaluated by the Contracting Officer on a case-by-case basis consistent with other terms and conditions of the instant Solicitation.

4. The Government may elect to expand / reduce the scope of the price verification analysis, and frequency of future analyses, as deemed appropriate by the Contracting Officer.

B. The Government reserves the right to conduct additional price audits as necessary in the opinion of the Contracting Officer to verify price accuracy and potentially recoup any overcharges. In such instances, the Contractor will be required to submit invoices and any other supporting price documentation that the contracting officer deems appropriate.

XX.

FILL RATE

A. Order fill rates shall be calculated by the Contractor on an on-time, per order basis and tracked for monthly submission to the Contracting Officer/Account Manager. To ensure accuracy in the Contractor’s reported fill rates, the Government will utilize its own internal data for comparison purposes. The fill rate shall be calculated as follows and shall not include mis-picks, damaged cases or rejected items (No other method of calculating fill rate will be accepted):

Cases accepted * 100 = fill rate %

Cases ordered

B. Definitions:

1. Cases Accepted: Product that the customer has received and receipted not including damaged cases, rejected items, or mis-picks.

2. Cases Ordered: Product ordered by a customer through STORES.

C. Contractor is required to maintain at a minimum a 98.0% fill-rate.

D. The Contractor will submit a monthly report, by customer, to the DLA Troop Support Contracting Officer with the following information:

1. Fill Rate

2. List of all items that were Not in Stock, Returned, Damaged, and/or Mis-picked.

XXI.

HOLIDAYS

A. All orders are to be delivered on the specified delivery date, except for Federal holidays, as outlined below. When a scheduled delivery day falls on one of these days, or one designated by your firm, delivery should occur on the next business day, unless otherwise agreed to by the customer.

New Year’s Day

Labor Day

Martin Luther King Jr’s Birthday Columbus Day

Presidents’ Day

Veterans Day

Memorial Day

Thanksgiving Day

Independence Day

Christmas Day

B. Note: Holidays falling on a Saturday are normally observed on the preceding day (Friday); holidays falling on a Sunday are normally observed on the following day (Monday).

XXII.

EMERGENCY ORDERS

A. Troop requirements can accelerate and surge during wartime, civil emergencies, natural disasters, adverse weather or other conditions. Therefore, last minute ordering may take place as necessary to fulfill customers’ requirements.

B. For Troop customers only, the contractor will provide up to one emergency order per month per customer at no additional cost to the Government. As specified by the customer, all emergency order(s) for supplies must be same day or next day. The contactor is responsible for providing the ordering facilities with the name of the contractor representative responsible for notification of receipt and handling of such emergency service and his/her phone number. Expeditious fulfillment of the emergency requirement is imperative.

XXIII.

FOOD DEFENSE

A. DLA Troop Support Subsistence Directorate provides world-wide subsistence logistics support during peace time as well as during regional conflicts, contingency operations, national emergencies, and natural disasters. At any time, the United States Government, its personnel, resources and interests may be the target of enemy aggression to include espionage, sabotage, or terrorism. This increased risk requires DLA Troop Support to take steps to ensure measures are taken to prevent the deliberate tampering and contamination of subsistence items. The Contractor must ensure that products and/or packaging have not been tampered with or contaminated throughout the growing, storage, and delivery process. The Contractor must immediately inform DLA Troop Support Subsistence of any attempt or suspected attempt by any party or parties, known or unknown, to tamper with or contaminate subsistence supplies.

B. As the holder of a contract with the Department of Defense, the Contractor should be aware of the vital role it plays in supporting the Agency’s customers. It is incumbent upon the Contractor to take all necessary actions to secure product delivered to all military customers, as well as any applicable commercial destinations.

C. Accordingly, the Contractor shall submit a Food Defense Plan prior to the start of performance under any resultant contract to describe what steps it has taken and will take to prevent product tampering and contamination. The Contractor will also describe what steps have been or will be taken that relate to overall plant security and food safety. The Contractor must describe in detail the types of measures in place or scheduled to be put in place for the performance period of this contract.