HDEC02-11-R-0009 Amendment 0001.doc

SECTION SF 30 BLOCK 14 CONTINUATION PAGE

SUMMARY OF CHANGES

SECTION SF 1449 - CONTINUATION SHEET

The purpose for this amendment is to:

1. Correct FAR 52.222.42, Fair Labor Standards Act and Service Contract Act-Price Adjustment to FAR 5222.43, Fair Labor Standards Act and Service Contract Act-Price Adjustment, which is contained in paragraph I of FAR 52.212-4 Addendum – Contract Terms and Conditions – Commercial Items.

2. Revise the language of paragraph I. Requests for Equitable Adjustments Due to Changes in Department of Labor Wage Determinations, which is contained in FAR 52.212-4 Addendum – Contract Terms and Conditions – Commercial Items.

All other information remains as stated in the solicitation.

The following have been modified:

52.212-4 ADDENDUM

FAR 52.212-4 ADDENDUM – CONTRACT TERMS AND CONDITIONS – COMMERCIAL ITEMS

A. TYPE OF CONTRACT: Firm Fixed-Price

B. PERIOD OF PERFORMANCE: To begin 30 days after contract award (or a date specified by the Contracting Officer), and extend for a period of a twenty-four month base period, with an additional two one-year option periods. Four one-year award terms are also available, contingent upon contractor performance at the excellent level, as set forth in the Award Term Clause, below.

C. TEAMING/PARTNERING: If a proposal is submitted and subsequently awarded to a company based on a teaming or partnering concept, the team shall not be changed without written approval from the Contracting Officer.

D. DELIVERY TICKET INVOICE (DTI) PROCEDURES: Receiving and payment processes on this contract will be accomplished through DTI procedures. Under these procedures, the daily reconciliation document will serve as a receipt and an invoice for bill paying purposes. The daily reconciliation documents will be accumulated by the Government, and consolidated or rolled up weekly into a single DTI amount. The Rollup Period may follow a Monday through Sunday or Days of a Month Schedule (Days 1 to 7, 8 to 15, 16 to 23, and 24 to end of month), but the contractor and the commissary must agree to the rollup method used. This consolidated amount will be the amount used for the designated payment period.

The Contractor shall furnish the following information:

Remittance Address:

Point of Contact:

Telephone Number:

E. ORDERING: For purposes of this contract, delivery orders or task orders, as referred to in DFAR 252.216-7006, Ordering (contained herein), is defined as the daily reconciliation document which serves as a receipt and an invoice for bill paying purposes. Paragraph (c) of the reference clause is not applicable to this contract.

F. ITEM TRANSFER: The Government will authorize the Contractor, upon request, the transfer of specific commissary owned food items for incorporation into Contractor prepared sushi products, sandwiches, and other food products in support of this contract, as deemed appropriate by the Contracting Officer. These food items may also be used to enhance deli and bakery display cases in the commissary. The Contractor has the option to use this privilege. All items transferred from the commissary to the Contractor shall be incorporated into a product that is offered for sale within the commissary (e.g., tomatoes, lettuce or onions into a finished sandwich; avocado and carrots into a sushi item), be transformed into another product (e.g., fresh raw or frozen chicken into roasted full cooked ready-to-eat chicken), added to a product offered for sale (e.g., pickles, olives) added as a side to a sandwich, or be used to decorate deli and bakery cases.

All items transferred to the Contractor from the commissary under the procedure set forth below shall be used exclusively in support of this contract. Violation of the transfer procedures, or use of the product for other than incorporation into a finished food product for resale, or to enhance deli and bakery display cases shall be grounds for termination of the transfer privilege.

Should items normally requested by the Contractor become unavailable, or the Contractor’s request for new products be denied, the Contractor shall continue performance and hold the Government harmless.

Items designated as pre-approved for transfer are:

Avocados, carrots, cucumbers, lemons, cabbage, lettuce (all kinds), onions, greens (mustard, kale), tomatoes (all kinds), peppers (various colors), grapes and other fresh produce items to be used as garnish in the display cases or on prepared food products.

Items in limited quantity (usually less than one pound) can be used for case decoration.

Additional items may be approved by the Contracting Officer, at the written request of the Contractor, on a case-by-case basis. Justification for the transfer of such items shall be included in the written request.

The Contractor shall request designated items from the appropriate DeCA Commissary department on a DeCA Form 70-20, Subsistence Request for Issue, Turn-In or Transfer, to be provided by the commissary. The Contractor shall submit the Form 70-20 to the appropriate DeCA department (Produce, Meat, or Grocery (primarily Produce)). The Contractor prepared Form 70-20 shall show the description of the product, weight/count of the item, the price per pound/unit and the extended price of the item.

Each issue against a Form 70-20 transfer request must be acknowledged on the form by a designated commissary employee for the appropriate commissary department, and the Contractor employee who received the item(s). The Contractor department Manager or designee shall validate all issues of merchandise against a Form 70-20 transfer by initialing and annotating the receipt date of the merchandise requested on the form. The issuing department will be responsible for the control of, and overall monitoring of, the Forms 70-20 received from the contractor. The issuing department will also maintain the original forms. The determination as to whether one Form 70-20 will be used per month, or multiple Forms 70-20, is to be made by each individual commissary.

The commissary issuing department(s) will roll up the Forms 70-20 submitted by the contractor during the month at the end of the applicable month (and possibly before an inventory at the direction of commissary management), and prepare a VCM reflecting the total amount of product cost transferred during that month. The Contractor department manager or designee shall review VCMs for accuracy and sign the VCM on behalf of the Contractor. A copy of each VCM and the supporting Forms 70-20 will be provided to the Contractor upon completion.

(NOTE: When the VCM deducts from invoice, it will collect from the next receipt transaction in SAVES. This collection may not be from the Commissary where the VCM was written. The Contractor can check MY INVOICE to verify the payment amount, VCM amount, and which store the VCM was given against.)

G. RANDOM INSPECTIONS FOR COMPLIANCE WITH PATRON SAVINGS: IAW the Quality Assurance Surveillance Plan (QASP), the Government will perform random price surveys at the request of the Contracting Officer and/or Store Director to verify that the Contractor is meeting the patron savings on core items specified IAW the contract. Additionally, the Government may randomly validate Contractor initiated surveys on core items. If the percentage of savings is in non-conformance, the Government will immediately inform the Contractor of these findings and request the Contractor adjust the pricing to come into conformance.

Core item price comparisons will utilize the same brand name, when available within the area of survey, as set forth in the applicable CLIN. In the absense of the same brand name, price comparisons will be accomplished using brand name products of the same quality. Premium elite brands (Boar’s Head and Dietz & Watson) shall not be used for purposes of determining savings on core items.

H. AWARD TERM (CLAUSE) (pass/fail)

(a) Award Term. The award term is an acquisition technique for recurring requirements that rewards the Contractor for its overall excellent performance with a long-term relationship. It affords the Contractor opportunities to earn additional performance periods in one-year increments of 12 months for up to an additional four years. Potential benefits of maintaining a long-term contractual relationship with a quality Contractor are continuous improvement in the processes affecting the goals of the contract and stability within the contractor’s workforce.

The Contractor earns an award term based on a pass/fail rating method in which the Government evaluates the Contractor’s overall performance at the end of the award term evaluation period as provided in Technical Exhibit B, Award Term Plan. The Government will perform an interim assessment after six months of performance on each 12-month performance period to provide feedback to the Contractor. A final assessment will be performed after the 12 month performance period has been completed. The Government will determine at the end of the final assessment period whether the Contractor’s overall performance for the previous 12 months merits an award term, based on its effectiveness in achieving the contract goals of customer service, continued savings, increased sales and product satisfaction. Effectiveness in achieving the contract goals will be rated as excellent, acceptable, or unacceptable, without assigning points.

(b) Monitoring of Performance. The performance monitors, whose findings are reported to the Award Term Board (ATB), continually monitor the contractor’s performance. The ATB recommends an award term to the Term Determining Official (TDO), who makes the final decision on whether the contractor has earned an award term.

(c) Award-Term Plan. The evaluation criteria and the associated award-term extensions or reductions are specified in the award-term plan.

(d) Self-Evaluation. At the option of the Contractor, the Contractor may (1) submit to the Contracting Officer, within 7 to 10 calendar days (considering holidays), after receipt of the notice of award term evaluation review for each evaluation period, a brief written self-evaluation of its performance for that period or (2) request an opportunity to address the ATB in person, via telephone, or video teleconference, with a self-evaluation of the company’s performance. (Written self-evaluation must be submitted to the Contracting Officer in advance.) If the Contractor requests an opportunity to address the ATB in person, the person addressing the ATB must be employed in a management position within the Contractor’s organization. The determination to honor a request to address the ATB in person is at the discretion of the Contracting Officer. The Contractor’s self-evaluation, in the format presented, will be used in the ATB evaluation of the contractor’s performance during this period. Costs associated with the Contractor’s efforts in this regard will not be reimbursed under this contract.

(e) Award-Term Extension. The contract shall be unilaterally modified to reflect any award term extension. The total contract performance period, including extensions under this clause, shall not exceed eight years.

If the Contractor has not earned an award term by the end of the second year of performance under this contract, the Government may declare the award-term incentive void.

Once the Contractor has earned an award term, they must earn an award term in each succeeding year. If the Contractor fails to earn an award term in a succeeding year, the Government may declare the award-term incentive void and cancel any award terms that the contractor has earned, but have not commenced.

If, in any year, the Contracting Officer determines that the Contractor’s performance fails to meet award term standards, then the term determining official may declare the award-term incentive void and cancel any award terms that the Contractor has earned, but have not commenced.

Any changes to the award term determination criteria which shall apply during each award term period will be provided to the Contractor in writing by the Contracting Officer at least 30 days prior to the start of each award term period. Notification at a later date, or alteration of criteria, including added criteria, after an award term period has begun, must be agreed to by both parties.

The Contractor may cancel any award term before it begins by giving the Contracting Officer written notice at least one year in advance. The Contractor may not cancel any award term with less than one year advance notice, or terminate any award term that has already begun. Should the Contractor elect to cancel any award term, the operation of the award-term incentive will end immediately and all remaining award terms that the Contractor has earned are canceled.

The cancellation of any award terms or the voiding of the award-term incentive for any of the reasons set forth in this clause shall not be considered a termination for convenience or a termination for default and shall not entitle the contractor to any equitable adjustment or any other compensation.

All award-term extensions are conditioned upon (1) a continuing Agency need for the contract services, and (2) the continuing responsibility of the Contractor, as defined by FAR 9.104-1.

Notwithstanding the provisions of this clause, the Government retains the right to terminate this contract for convenience or cause in accordance with FAR 52.212-4 Contract Terms and Conditions – Commercial Items.

I. REQUESTS FOR EQUITABLE ADJUSTMENTS DUE TO CHANGES IN DEPARTMENT OF LABOR WAGE DETERMINATIONS

In accordance with FAR 52.222-43, Fair Labor Standards Act and Service Contract Act-Price Adjustment, adjustments to pricing (patron savings) are permissible, resulting from the Service Contract Act (SCA) mandatory increases in wages and Health and Welfare benefits on applicable Department of Labor (DoL) wage determinations. Such requests for equitable adjustments are to be submitted to the Contracting Officer in writing and shall include documentation supporting an increase above the annual inflation rate for the period upon which the adjustment is being calculated. The most recent annual inflation rate can be found on the U. S. Department of Labor Statistics, Consumer Price Index (CPI for All Urban Consumers (Current Series)) Table For Food and Beverages, (CUUR0000SAF). This Table can be accessed at www.bls.gov/data/.

J. CONTRACTOR PERFORMANCE ASSESSMENT REPORTING SYSTEMS (CPARS)

In accordance with the President’s e-Government Integrated Acquisition Environment initiative and FAR 42.15 an annual Contractor Performance Assessment Report (CPAR) is required to record a contractor’s performance. The CPAR process that the Defense Commissary Agency (DeCA) will utilize is totally paperless and accessed through the NAVY CPARS system. The system may be accessed via https://www.cpars.gov. The move to this new website will occur between June 26, 2011 and June 28, 2011. If the new website is not available during this time, you will continue to be able to use the existing website at https://www.cpars.csd.disa.mil/. DeCA Form 10-17 will no longer be used for capturing contractor performance. For contractors to access CPARS, they must first obtain a PKI Certificate. This is an added security measure to ensure unauthorized individuals cannot access a contractor’s past performance information. You may purchase a DOD PKI certificate from one of the following 3 approved External Certificate Authority (ECA) vendors: Operational Research Consultants, Inc. (ORC) at http://www.eca.orc.com; VeriSign, Inc at http://www.verisign.com/verisign-business-solutions/public-sector-solutions/ieca-eca-certificates/index.html; or IdenTrust, Inc. at http:///www.indentrust.com/certificates/eca/index.html.

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