HDEC02-09-R-0005_AMD_0002.doc

SECTION SF 30 BLOCK 14 CONTINUATION PAGE

SECTION SF 1449 - CONTINUATION SHEET

SUPPLIES OR SERVICES AND PRICES

SUMMARY OF CHANGES

The purpose for this amendment is to make corrections to the Informational Clins, 0001, through 0007, Attachment 4, Recommended Bakery Product Shelf Life, Performance Assessment Plan, Appendix A, Award Term Plan for In-Store Deli-Bakery Operations, Appendix B, and the Performance Work Statement,Technical Exhibit A.

The following Informational Clins have been modified for the High Volume Core Items as follows:

CLINs 0001, through 0007

The CLIN extended description has changed to read: HIGH VOLUME CORE ITEMS:(Applicable to all Sub-Clins in this solicitation).Honey Ham, Virginia Ham, Roast Beef, Smoked Turkey Breast, Mesquite Turkey Breast, Roasted Turkey Breast, Salami (Cotto), Provolone Cheese, Swiss Cheese, American Cheese (Premium quality tier products required. Premium quality tier is defined as: Turkey Breast - 3 or less pieces of whole muscles; Ham - inside and outside muscles, no shank or knuckle meat; Beef - Choice, cap off. Quality tier products have a low percent of pump and brand name recognition. Type and amount of additives are also considerations).

The following Attachment 4 has been modified (See the Notes):

ATTACHMENT 4

RECOMMENDED BAKERY PRODUCT SHELF LIFE

The appropriate manufacturer’s suggested shelf life shall be used whenever available, and does not exceed the U. S. Food Code requirements. If the manufacturer’s suggested shelf life does exceed the Food Code guidance, then the Food Code guidance shall apply. In the absence of the manufacturer’s suggested shelf life, the appropriate shelf life set forth in the table below shall be applicable. Documentation pertaining to a manufacturer’s shelf life recommendations shall be maintained at each serviced location (commissary) under this contract by the deli/bakery contractor. Copies of the documentation shall be provided to the local Medical Food Inspector (MFI) upon request.

ITEM DESCRIPTION:

DISPLAY CASE PRE-PACKAGED*

Breakfast Danish – Apple Pockets (Glazed), Cherry Pockets Day of Preparation Day of Preparation

(Glazed), Almond (Glazed), Pecan Cheese (Glazed), Cherry

PLUS ONE

PLUS ONE

Cheese (Glazed), Pecan Honey (Glazed), Blueberry Pockets

(Glazed)

Donuts – Glazed, Jelly, Sugar, Iced, Long John, Cream

Filled, Apple Fritters, Crullers

PLUS ONE

Bread – White (Loaf), Raisin (Loaf), Sour Dough (Round) Day of Preparation Day of Preparation

French (Long), Italian, Rye, (Dark and Light, Sliced)

PLUS ONE

PLUS TWO

Rolls – Hamburger, Hot Dog, Kaiser, Parker House, Dinner, Hard, Rye, Croissant (Assorted)

PLUS TWO

Breakfast Rolls – Cinnamon (Glazed), Carmel Nut, Raisin

(Glazed, Bear Claws, Pecan

Specialties – Cream Puffs, Eclairs, Apple Strudel, Cherry Day of Preparation Day of Preparation

Strudel, Apple Turnovers, Cherry Turnovers, Blueberry

PLUS ONE

PLUS TWO

Muffins, Corn Muffins, Bran Muffins

Pies – Apple, Dutch, Lemon, Cherry, Peach, Pumpkin, Pecan, Day of Preparation Day of Preparation

Blackberry, Blueberry, Boysenberry, Cream (Refrigerated)

PLUS ONE

PLUS TWO

Cake** - Chocolate, Plain, Apple Spice, Devil’s Food, Day of Preparation Day of Preparation

Pound, Carrot, White, Spice, Angel Food, German

PLUS ONE

PLUS TWO

Chocolate (All may be iced/decorated)

Bagels – Plain, Raisin, Onion, Blueberry, Egg

Cookies – Chocolate Chip, Brownies, Sugar, Macaroons, Oatmeal, Spice, Peanut Butter

PLUS FOUR

NOTE: Bakery product shelf life is applicable to all bakery items, whether items are received fresh, frozen, proofed and baked, thawed and baked, or thawed. Flavors listed above are examples only and do not include all flavors/varieties available.

* ”Pre-Packaged” means products baked and packaged in containers in the commissary (or bags, as long as product is fully enclosed). Items pre-packaged by a manufacturer shall have a declared shelf life set by the manufacturer.

**Applies to packaged and non-packaged cakes not under refrigeration. Packaged or non-packaged cakes under refrigeration shall have an additional day of shelf life. For those items that are received frozen and thawed, the shelf life listed above starts from the time the product is fully thawed. Cakes that are maintained in a frozen state shall have a 90-day shelf life.

The following Appendix A has been modified (See Customer Service, Continue Savings, and Increase Sales –Level of Excellent Performance; Customer Service and Product Satisfaction – Plan for verifying Performance):

PERFORMANCE ASSESSMENT PLAN

APPENDIX A

1. CUSTOMER SERVICE

Surveys; e-mail comments

on DeCA web site, pictures, satisfaction.

P$$ and Quality Assurance

Evaluators.

2. CONTINUE SAVINGS

commuting area of the specialty stores, and convenience

Evaluators.

contractor's performance stores).

(excludes membership clubs, super centers, specialty stores and convenience stores).

3. INCREASE SALES

applicable period.

4. PRODUCT SATISFACTION

Surveys; e-mail comments

on DeCA web site, pictures, schedule.

and Quality Assurance

Evaluators.

*See #1. Level of Excellence Cont’d

>$200K-$300K: 4 verifiable complaints;

>$300K:5 verifiable complaints

The following Appendix B has been modified (See Excellent Standard – 1st and 3rd bullet; Acceptable Standard – 1st bullet and Unacceptable Standard – 2nd paragraph.)

AWARD TERM PLAN FOR IN-STORE DELI-BAKERY OPERATIONS

APPENDIX B

INCENTIVE PERFORMANCE EVALUATION CRITERIA, RATINGS, AND STANDARDS

EXCELLENT –

The contractor’s performance merits an award term extension when it reaches the level of excellent performance. The level of excellent performance is identified in the Performance Assessment Plan. Performance in this area consistently exceeds contractual requirements, objectives or expectations to the patron’s and the Government’s benefit. The Contractor consistently provides quality and responsive services, high levels of customer satisfaction, proactive prevention of complaints, problems, and issues, and quick and effective problem resolutions. Complaints, issues, and problems are minor and infrequent. The contractual performance of the element or sub-element being assessed was accomplished with few minor problems for which corrective actions taken by the Contractor were highly effective. Examples include:

• Timely response and completion of all patron requested services with number of verifiable customer complaints at any location, depending on average monthly deli/bakery sales during the evaluation period as follows: <$100K: 2 verifiable complaints; $100K-$200K: 3 verifiable complaints; >$200K-$300K: 4 verifiable complaints: >$300K: 5 verifiable complaints.

• More than the prescribed percentage of patron savings is provided on all high volume identified core items.

• Sales increase amount as prescribed in the Merchandising Plan is exceeded.

• The variety, quality, special orders, promotional items, and product mix provided are providing high levels of patron satisfaction.

ACCEPTABLE -

Performance, for the most part, meets contractual requirements. The contractual performance of the element or sub-element being assessed contains some minor problems for which corrective actions taken by the Contractor appear or were satisfactory. Examples include:

• Timely response and completion of all patron requested services with number of verifiable customer complaints at any location, depending on average monthly deli/bakery sales during the evaluation period as follows: <$100K: no more than 3 verifiable complaints; $100K-$200K: no more than 4 verifiable complaints; >$200K-$300K: no more than 5 verifiable complaints: >$300K: no more than 6 verifiable complaints.

• Nothing above the prescribed percentage of patron savings on all high volume core items was provided. There were no more than five verifiable instances of lower prices same or similar items sold in the local commuting area for any one location covered by the contract for the each six-month period evaluated.

• Sales increase amount as prescribed in the Merchandising Plan is met.

• The variety, quality, special orders, promotional items, and product mix provided are considered adequate but fail to result in high levels of patron satisfaction.

UNACCEPTABLE -

Performance did not meet most contractual requirements and recovery is not likely in a timely manner. The contractual performance of the element or sub-element being assessed contains serious problem(s) for which the Contractor’s corrective actions appear, or are, ineffective. Examples include:

Response and completion of patron requested services resulted in greater than the number of verifiable complaints that are defined at the Acceptable Level at any location covered by the contract for each six-month period evaluated.

The prescribed percentage of patron savings on all high volume core items was not met.

No increase in sales, as prescribed in the Merchandising Plan, for the period evaluated.

Customer satisfaction levels with the variety, quality, special orders, promotional items, and product mix are low.

The following Performance Work Statement has been modified (See numbers 1.2.5, 1.2.6, 1.2.7 and 16.)

TECHNICAL EXHIBIT A

PERFORMANCE WORK STATEMENT

FOR

COMMISSARY DELICATESSEN AND BAKERY OPERATIONS

1. SCOPE OF WORK

1.1. Introduction. A military commissary is a Government facility providing resale food items and other merchandise to authorized individuals, termed “patrons.” It is a facility designed and operated similar to commercial supermarkets. The commissary’s goals are to provide a cost savings for patrons when compared to commercial markets, to provide courteous and informative assistance to patrons, to offer a variety of items in quantities to satisfy patron demands, and to make the items available to patrons in a clean, safe, and wholesome environment. Overall management and operation of a commissary is the responsibility of the Store Director of each commissary store, operating within Agency policy and standards. The Store Director responds to the support requirements of patrons, meets with consumer groups, and acts as liaison for the Defense Commissary Agency (DeCA) at the installation level.

1.2. General. This contract is written and will be administered as a Performance Based Services Acquisition (PBSA). This method of contracting requires that the Government describe the requirements the Contractor must meet in terms of outcome or results. The “how” is left to the Contractor, within certain regulatory guidelines as referenced herein. This allows the Contractor more flexibility in achieving the desired results. The Contractor shall execute its responsibilities under this contract in a manner that is consistent with the performance standards contained herein.

1.2.1. The Contractor shall furnish all personnel, supervision, food products, and other items (unless otherwise specified) necessary to operate a well-stocked deli and bakery resale operation offering a variety of items in quantities to satisfy customer demands and maximize customer satisfaction at the locations specified in the schedule.

1.2.2. Services and Sales. The contractor shall provide fast, friendly, courteous services that result in high levels of customer satisfaction and increased sales.

1.2.3. Savings. The Contractor shall provide a cost savings to the patron over the costs of same or similar items from comparable commercial supermarket operations within the local commuting area (as set forth in the schedule) of Contractor performance (excludes membership clubs, i.e. Sam’s, Costco, etc., “Super Centers”, i.e. Wal-mart, Target, etc., specialty stores, i.e. Whole Foods, etc., and convenience type stores).

1.2.4. Ownership of Products. Ownership of deli and bakery resale products will remain with the contractor until scanned (or keyed, if not scan able) at a DeCA authorized register.

1.2.5. Product Variety. The Contractor will ensure the deli provides customers with a variety of luncheon meats, cheeses, salads, gelatins, puddings, and ready-to-eat cold meats, etc., as needed. The selection of these products will be determined by customer demand and reviewed by store management.

1.2.6. New Initiatives. All new initiatives must be submitted to the Program Manager, Marketing Business Unit (MBU), for approval before implementation.

1.2.7. Contractor Reimbursement. The Contractor and commissary personnel shall reconcile the amounts of the deli and bakery sales recorded on the scanning system daily. Payment will be based on a weekly rollup of the reconciliation records by the commissary.

2. PERSONNEL

2.1 General. The Contractor shall provide an adequate number of personnel possessing the “people skills” and the food handling skills, knowledge, training, licensing and certifications, and language skills needed to satisfactorily perform all work required by this contract. The Contractor shall not employ current commissary employees without written approval from the Agency General Counsel’s Office.

2.2. Removal of Personnel. The Contractor shall promptly remove, or deny access to any contractor personnel whose conduct is determined by the Contractor or commissary management to be inconsistent with the best interests of the government. The Contractor shall continue to perform contract services following the removal of, or denial of, access to said personnel.

2.3. Dress Requirements. Contractor personnel shall present a clean, well-groomed appearance at all times while performing on this contract. Contractor personnel shall also wear, at all times while performing on this contract, some form of professional identification, customary in industry practices, that clearly displays the employee’s name and the company name.

2.3.1. Jewelry. Jewelry shalll be kept to minimum use. Ear rings should be limited to single studs, and hands should be limited to wedding rings only. Facial jewelry, such as eyebrow and nose rings, shall not be worn.

2.4. Training. The Contractor shall ensure that contract personnel are trained to support the requirements of this contract and ensure that contract personnel are qualified to perform their assigned tasks at the beginning of the contract. The Contractor shall develop and conduct a training program for all employees that comply with the Food and Drug Administration (FDA) Food Code. The Contractor shall maintain records of all scheduled and completed training. A listing of trained employees shall be provided to the installation medical authorities and the DeCA region Food Safety Officer no later than 10 days after commencement of performance, and updated annually thereafter.

2.5. Project Management. The Contractor shall provide, at all times when services are required, a designated on-site manager at each location covered by the contract who bears responsibility for the performance of all work and who has full authority to act for the Contractor on all contractual performance matters related to the daily operations at that location.

2.6. Contractor Employee Commissary Purchases. A Contractor employee who is an authorized commissary patron shall make no purchases during the hours the employee is working for the contractor, except for items purchased for immediate consumption during the employee’s lunch or break. The employee shall be able to provide the receipt for those items until the items are consumed.

2.7. Contractor Assistance. The Contractor shall cooperate with Governmental authorities in any administrative, civil, or criminal proceedings, including providing documentation related to employees or performance under this contract.

2.8. Operating Motor Vehicles on a Military Installation. Contractor employees operating motor vehicles shall comply with any and all applicable federal, state, and local laws and regulations.

3. CONTRACTOR-OPERATED CASH REGISTERS (for locations with cash registers assigned to the Contractor)

3.1. The Contractor shall work with the front-end manager to schedule the initial training and refresher training required for the Contractor employees designated to operate the cash register.

3.2. The Contractor shall make personnel assigned to cash registers available for training by Government personnel prior to operation of the cash registers.

3.3. The Contractor shall pick-up one change fund till daily from the commissary cash office, before the scheduled store opening, which shall be utilized for the entire day (unless otherwise coordinated with the Store Director).

3.4. The Contractor shall sign the Commissary Accounting Module (CAM) Daily Accounting/Loans loan report as a record of the loan issued to the Contractor.

3.5. The Contractor shall operate the cash register during scheduled operating hours. If the register is closed during times when the store is open for business, the Contractor shall place a “closed” sign at the register.

3.6. Contractor personnel shall accept all forms of currency (cash, checks, and debit/credit cards) if operating a hard-wired cash register.

3.7. Contractor personnel shall not manually process credit cards. If the credit card system is down, Contractor personnel shall place a Government-furnished sign by the cash register informing patrons that credit card payments will not be accepted at this time.

3.8. Contractor personnel shall not accept debit cards if operating a wavelan cash register. All other forms of currency may be accepted.

3.9. Contractor personnel operating a cash register shall accept coupons applicable to the items being purchased by the patron.

3.10. Contractor personnel operating a cash register shall not accept Food Stamps and WIC vouchers/Checks/EBT for payment.

3.11. Contractor personnel shall verify patron shopping privileges in accordance with local store procedures.

3.12. Contractor personnel shall process Government owned products that supplement the deli/bakery purchase through the cash register. Weighted items, however, shall not be processed through the cash register. Fruit, priced by the item and not requiring weighing, shall be processed through the cash register.

3.13. The contractor shall apply a Government-furnished “Paid” sticker on the purchased items and place them in a plastic bag. The Contractor shall be responsible for security of these stickers.

3.14. The Contractor shall turn in the sales receipts to the cash office no later than 15 minutes after the cash register is closed for the day. The Contractor shall sign a receipt acknowledging that the Contractor turned the monies over to the cash office.

3.15. The Contractor shall reimburse the Government, through deduction from the Sales Certification invoice (SCI), for any shortages over six dollars. Overages become the property of the store in accordance with local store procedures.

3.16. Contractor personnel shall contact the front-end manager for transactions requiring supervisory overrides.

3.17. The Contractor shall direct patrons desiring a refund to the cash office.

3.18. The Contractor shall immediately inform the front-end manager of problems with the cash register.

3.19. The Contractor shall comply with food safety and handling procedures regarding the handling of money and food products, in order to prevent cross contamination when changing tasks, as required.

4. QUALITY ASSURANCE. The Contractor shall adhere to the requirements of the latest version of the FDA Food Code and local regulations regarding sanitation and food safety.

5. ENVIRONMENTAL CONTROLS. The Contractor shall not adjust heating, ventilation and air-conditioning systems controls, unless specifically authorized to do so by commissary management personnel.

6. EMERGENCY PROCEDURES.

6.1. The Contractor shall follow local commissary guidance and posted plans for emergencies, such as, but not limited to, accidents, bomb threats, fire and disaster evacuations, weather emergencies, and power outages.

6.2. The Contractor shall provide a list of emergency points of contact (POC’s) and telephone and/or pager numbers to the Store Director at each commissary upon commencement of contract. The Contractor shall keep the list current at all times during the term of the contract and any changes shall be provided to the Store Director prior to the effective date.

7. CONTRACT TRANSITION. Upon notification of a change in the contractors, the incumbent Contractor shall:

· Provide the Government and/or new Contractor access to the deli/bakery department;

· Provide the new Contractor access to the incumbent Contractor’s employees;

· Allow for the public posting of a suitable recruitment notice within each facility;

· Coordinate the removal of Contractor-owned equipment with the Store Director;

· Coordinate a joint inventory of all Government furnished property and supplies with the Store Director.

8. GOVERNMENT FURNISHED EQUIPMENT MAINTENANCE AND REPAIR. (See Attachment 2 for a list of Government-furnished commissary equipment). The Contractor shall notify the Contracting Officer when additional equipment is needed to support iniatives.

8.1. The Contractor shall notify the Government in writing when Government-furnished deli/bakery/sushi equipment requires nonscheduled maintenance, repair or replacement. The Contractor shall reimburse the Government for any maintenance, repairs or replacements resulting from negligence or misuse of Government-furnished equipment by contractor employees.

8.2. The Government will maintain, repair or replace as required all Government-furnished equipment.

The Government is responsible for scheduling and performing routine, preventive maintenance on all Government owned equipment. The Contractor shall notify the Contracting Officer when necessary repairs are accomplished.

8.3. The Government will notify the Contractor immediately upon discovery of Contractor product exposure to unsafe temperatures.

9. CONTRACTOR FURNISHED ITEMS.

9.1. Equipment furnished by the Contractor is the Contractor’s property and shall be provided at no additional cost to the Government. The Contractor is responsible for all maintenance, repairs, parts, and training for Contractor furnished equipment. The Government will not be responsible in any way for loss or damage occasioned by fire, theft, “acts of God”, accident, or otherwise to the Contractor’s materials, supplies, or equipment stored on Government property, unless the Contracting Officer determines that the loss or damage is due to negligence on the part of the Government. Any proposed Contractor owned equipment shall be evaluated and approved by the Store Director prior to installation and use. The Store Director will be responsible for initiating any changes to the Government facility that may be required to accommodate installation of approved Contractor furnished equipment.

9.2. OSHA Requirements – Contractor furnished equipment shall comply with all applicable OSHA standards. The Government reserves the right to require the Contractor to remove from commissary premises any Contractor owned property that does not meet such standards, that is not being used for its intended purpose, or which the Government determines may cause damage or destruction to commissary customers, personnel, facilities, or property.

9.3. The Contractor shall request Military Food Inspector (MFI) inspection of Contractor product exposed to unsafe temperatures. The Contractor shall notify commissary management in writing when MFI inspection is requested. The Contractor shall be responsible for the proper handling and care of its product.

9.4. The Government will notify the Contractor immediately upon discovery of Contractor product exposure to unsafe temperatures.

10. DELI/BAKERY KEYS. The Contractor shall manage all keys assigned to the deli/bakery operations.

11. EMERGENCY MEDICAL TREATMENT. Government medical facilities, emergency vehicles, and medical personnel may be used in case of emergency care treatment. The Contractor shall reimburse the Government for any charges incurred as a result of Government provided medical treatment upon notification that payment is due.

12. PRODUCT DESCRIPTIONS, CODES AND PRICES.

12.1. Prior to offering products for sale through the deli and bakery, the Contractor shall provide to commissary management written information pertaining to the key codes necessary to decipher code dates for all products requiring codes.

12.2. The Contractor shall maintain and provide to the Store Director, as necessary, accurate and current information on UPC’s and DeCA PLU’s for all items sold through the deli and bakery.

12.3. The Contractor shall offer for sale products that have been inspected and approved in accordance with Federal and/or State commercial procedures acceptable to the Contracting Officer. In the absence of a commercial inspection procedure, military inspection procedures will apply.

12.4. The Contractor’s suppliers shall comply with the Country of Origin Labelling (COOL) Requirements of the FDA, and be registered with the FDA for Bio Terrorism.

12.5. The Contractor shall not offer products for sale that have expired “use by” or “sell by” dates set by the manufacturer. In the event a bakery item does not have a manufacturer’s “use by” or “sell by” date, Attachment 4, Recommended Bakery Shelf Life, shall be applicable.

13. ACCURACY OF SCALES. The Contractor shall maintain current and accurate scale system product data, verify and document weekly the accuracy of scales using test weights. Contractor shall not use scales that fail the accuracy test.

14. FOOD RECALLS. In the event of a product recall by the U.S. Department of Agriculture (USDA), DeCA, or the manufacturer, the Contractor shall immediately remove all recalled items from the deli or bakery.

15. MODIFICATION OF DÉCOR. Contractor shall acquire written approval from the Store Director prior to making any changes to the décor (e.g., seasonal decorations, merchandising enhancements). The Government will not reimburse the Contractor for such items.

16. APPLICABLE PUBLICATIONS AND DIRECTIVES. The Contractor shall comply with the following mandatory references and implement the updates or changes specified by these publications when issued. DeCA Directives (DeCADs) can be found at www.commissaries.com. Once there, click on “Inside DeCA”, “About US”, next screen click on “Official Publications”, next screen click on “Directives”, next screen click on “40”, and on the last screen select the publication number. Other publications can be found at the websites cited below.

USFDA

US Public Health Service, Food Code www.fda.gov

CFR 29

Occupational Safety and Health Administration Standards (OSHA)

US Department of Labor www.osha.gov

VETCOM

Directory of Sanitarily Approved Food Establishments for the

Circular 40-1 Armed Forces Procurement http://vets.amedd.army.mil/food.html

DOD 5500-7-R

Joint Ethics Regulation www.defenselink.mil

NSF

National Sanitation Foundation International www.nsf.org/usda The following publications are incorporated for advisory purposes only:

DeCAD 40-28 Specialty Departments Deli, Bakery, Seafood, Plants, Etc., (Chapters 1– 8)

DeCAD 40-5 Grocery Department Operations

DeCAD 40-6 Front-End Department (End of Summary of Changes)