HDEC02-13-D-0012.pdf

DEFENSE COMMISSARY AGENCY

RESALE CONTRACTING DIRECTORATE - MPR

1300 E AVENUE

FORT LEE VA 23801-1800

UNDER DPAS (15 CFR 700)

11. DELIVERY FOR FOB

RFQ

SEE SCHEDULE

14. METHOD OF SOLICITATION

IFB RFP

CODE

SEE ADDENDUM

BLOCK IS MARKED

DESTINATION UNLESS

12. DISCOUNT TERMS

HQ0104

(No Collect Calls)

13b. RATING

13a. THIS CONTRACT IS A RATED ORDER

X

CODE

SEE ITEM 9

HDEC02-12-R-0007 15-Nov-2012

b. TELEPHONE NUMBER

(804) 734-8000 EXT 48864

8. OFFER DUE DATE/LOCAL TIME

03:00 PM 19 Dec 2012

5. SOLICITATION NUMBER 6. SOLICITATION ISSUE DATE

AUTHORIZED FOR LOCAL REPRODUCTION

PREVIOUS EDITION IS NOT USABLE

STANDARD FORM 1449 (REV 3/2005)

Prescribed by GSA

FAR (48 CFR) 53.212

(TYPE OR PRINT)

03-May-2013

(SIGNATURE OF CONTRACTING OFFICER) 31c. DATE SIGNED

ADDENDA ARE

26. TOTAL AWARD AMOUNT (For Gov t. Use Only )

22. UNIT 23. UNIT PRICE 24. AMOUNT21. QUANTITY

COAST PRODUCE COMPANY

KATE REEB

1791 BAY ST

LOS ANGELES CA 90021-1936

CODE 10. THIS ACQUISITION IS

UNRESTRICTED

FAX: NAICS:

TEL:

CODE 18a. PAYMENT WILL BE MADE BYOFFEROR

SUCH ADDRESS IN OFFER

17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT

BELOW IS CHECKED

1FK14

TEL. 213-355-4900

HDEC02

SIZE STD:

9. ISSUED BY

FACILITY

CODE

17a.CONTRACTOR/

DEF FINANCE & ACCOUNTING SVC "EFT: T"

COLUMBUS CENTER

ATTN: DFAS-BVDV/CC

P O BOX 182047

COLUMBUS OH 43218-2047

18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a. UNLESS BLOCK

15. DELIVER TO CODE 16. ADMINISTERED BY

SEE SCHEDULE

HDEC02-13-D-0012 03-May-2013

7. FOR SOLICITATION

INFORMATION CALL:

a. NAME

CECILIA COPELAND

2. CONTRACT NO. 3. AWARD/EFFECTIVE DATE 4. ORDER NUMBER

(TYPE OR PRINT)

30b. NAME AND TITLE OF SIGNER 30c. DATE SIGNED 31b. NAME OF CONTRACTING OFFICER

30a. SIGNATURE OF OFFEROR/CONTRACTOR 31a.UNITED STATES OF AMERICA

27a. SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1. 52.212-4. FAR 52.212-3. 52.212-5 ARE ATTACHED.

25. ACCOUNTING AND APPROPRIATION DATA

1. REQUISITION NUMBER

19. ITEM NO. 20. SCHEDULE OF SUPPLIES/ SERVICES

SEE SCHEDULE

311991

TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND DELIVER ALL ITEMS

SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY ADDITIONAL SHEETS

SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED HEREIN.

SB

HUBZONE SB

SET ASIDE: 100 % FOR

OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24, AND 30

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS

ARE NOT ATTACHED

27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA ARE ARE NOT ATTACHED

SARAH E SAUNDERS / CONTRACTING OFFICER

TEL: (804) 734-8000 ext 48899 EMAIL: sarah.saunders@deca.mil

$75,098,651.10 EST

0 COPIES

(BLOCK 5), INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE

SET FORTH HEREIN, IS ACCEPTED AS TO ITEMS: SEE SCHEDULE

.OFFER DATED YOUR OFFER ON SOLICITATION

28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN 29. AWARD OF CONTRACT: REFERENCE HDEC02-12-R-0007

X

8(A)

SVC-DISABLED VET-OWNED SB

EMERGING SB

X

X

32g. E-MAIL OF AUTHORIZED GOVERNMENT REPRESENTATIVE

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS

(CONTINUED)

SEE SCHEDULE

19. ITEM NO. 20. SCHEDULE OF SUPPLIES/ SERVICES 21. QUANTITY 22. UNIT 24. AMOUNT

PAGE 2 OF

23. UNIT PRICE

ACCEPTED, AND CONFORMS TO THE CONTRACT, EXCEPT AS NOTED: ______________________________________________________

32a. QUANTITY IN COLUMN 21 HAS BEEN

RECEIVED INSPECTED

32b. SIGNATURE OF AUTHORIZED GOVERNMENT

REPRESENTATIVE

32c. DATE 32d. PRINTED NAME AND TITLE OF AUTHORIZED GOVERNMENT

REPRESENTATIVE

32e. MAILING ADDRESS OF AUTHORIZED GOVERNMENT REPRESENTATIVE 32f . TELEPHONE NUMBER OF AUTHORIZED GOVERNMENT REPRESENTATIVE

37. CHECK NUMBER

FINALPARTIALCOMPLETE

36. PAYMENT35. AMOUNT VERIFIED

CORRECT FOR

34. VOUCHER NUMBER

FINAL

33. SHIP NUMBER

PARTIAL

38. S/R ACCOUNT NUMBER 39. S/R VOUCHER NUMBER 40. PAID BY

41a. I CERTIFY THIS ACCOUNT IS CORRECT AND PROPER FOR PAYMENT

41b. SIGNATURE AND TITLE OF CERTIFYING OFFICER 41c. DATE

42a. RECEIVED BY (Print)

42b. RECEIVED AT (Location)

42c. DATE REC'D (YY/MM/DD) 42d. TOTAL CONTAINERS

STANDARD FORM 1449 (REV 3/2005) BACK

Prescribed by GSA

FAR (48 CFR) 53.212

AUTHORIZED FOR LOCAL REPRODUCTION

PREVIOUS EDITION IS NOT USABLE

Section SF 1449 - CONTINUATION SHEET

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0001 1 Lot $12,439,471.08 $12,439,471.08 EST Area 6, Group 1 (BASE PERIOD)

FFP

BASE PERIOD OF PERFORMANCE: June 01, 2013 to May 31, 2015

Fresh Fruit and Vegetables (FF&V), Live Potted Plants, and Ornamental Produce for Area 6, GROUP 1

The Contractor is to provide Fresh Fruits and Vegetables (FF&V), Live Potted

Plants, and Ornamental Produce (fresh indian corn; fresh gourds; fresh wreaths;

garland, and fresh pine roping) to 10 commissary locations in Area 6, Group 1 for resale.

The Guaranteed Minimum Percentage of Patron Savings for all Core Items for

"Base Performance period" is: 47%

The following 10 commissary store locations are included in Area 6, Group 1:

Beale AFB, CA; Fallon NAS, NV; Ft. Hunter-Liggett, CA; Lemoore NAS, CA;

McClellan AFB, CA; Moffett Field NAS, CA; Ord Community, CA; Travis AFB, CA; Hill AFB, UT; Dugway PG, UT

FOB: Destination

NET AMT $12,439,471.08 (EST.)

0002 1 Lot $40,078,341.82 $40,078,341.82 EST Area 6, Group 2 (BASE PERIOD)

Fresh Fruits and Vegetables (FF&V), Live Potted Plants, Ornamental Produce for

Area 6, GROUP 2 garland,and fresh pine roping) for resale to 22 commissary locations in Area 6, Group 2.

"Base Performance Period" is: 47%

The following 22 store locations are included in Area 6 Group 2:

Barstow MCLB, CA: Camp Pendleton, CA; China Lake, CA; Davis Monthan AFB, CA; Edwards AFB, CA; El Centro NAF, CA; Ft. Huachuca, AZ; Ft. Irwin, CA;

Imperial Beach, CA; Los Angeles AFB, CA; Luke AFB, AZ; March AFB, CA;

Miramar MCAS, CA; Nellis AFB, NV; North Island NAS, CA; Port Hueneme

NCBC, CA; San Diego NS, CA; San Onofre, CA; Twentynine Palms, CA;

Vandenberg AFB, CA; Yuma MCAS, AZ; Yuma PG, AZ

NET AMT $40,078,341.82 (EST.)

0003 1 Lot $22,580,838.20 $22,580,838.20 EST Aarea 6, Group 3 (BASE PERIOD)

Fresh Fruit and Vegetables (FF&V), Live Potted Plants, Ornamental Produce for

Area 6, GROUP 3 garland, and fresh pine roping) to 4 commissary locations in Area 6, Group 3 for

"Base Performance period" is: 52%

The following 4 commissary store locations are included in Area 6, Group 3:

Kaneohe Bay, HI; Pearl Harbor NB, HI; Schofield Barracks, HI; Hickman, HI

NET AMT $22,580,838.20 (EST.)

1001 1 Lot $6,219,735.54 $6,219,735.54 EST OPTION Area 6, Group 1 (OPTION YEAR 1)

OPTION YEAR 1 PERIOD OF PERFORMANCE: June 01, 2015 to May 31, Area 6, GROUP 1

Plants, and Ornamental Produce (fresh indian corn; fresh gourds; fresh wreaths;garland, and fresh pine roping) to 10 commissary locations in Area 6, Group 1 for resale.

"OPTION YEAR 1"Performance period" is: 48%

NET AMT $6,219,735.54 (EST.)

1002 1 Lot $20,039,170.91 $20,039,170.91 EST OPTION Area 6, Group 2 (OPTION YEAR 1)

OPTION YEAR 1 PERIOD OF PERFORMANCE: June 01, 2015 to May 31, 2016 garland, and fresh pine roping) for resale to 22 commissary locations in Area 6, "OPTION YEAR 1" Performance period" is: 48%

Imperial Beach, CA; Los Angeles AFB, CA; Luke AFB, AZ; March AFB, CA;

Miramar MCAS, CA; Nellis AFB, NV; North Island NAS, CA; Port Hueneme

NET AMT $20,039,170.91 (EST.)

1003 1 Lot $11,290,419.10 $11,290,419.10 EST OPTION Area 6, Group 3 (OPTION YEAR 1)

OPTION YEAR 1 PERIOD OF PERFORMANCE: June 01, 2015 to May 31, 2016

"OPTION YEAR 1" Performance period" is: 53%

NET AMT $11,290,419.10 (EST.)

2001 1 Lot $6,219,735.54 $6,219,735.54 EST OPTION Area 6, Group 1 (OPTION YEAR 2)

OPTION YEAR 2 PERIOD OF PERFORMANCE: June 01, 2016 to May 31, 2017

OPTION YEAR 2" Performance period" is: 48%

2002 1 Lot $20,039,170.91 $20,039,170.91 EST OPTION Area 6, Group 2 (OPTION YEAR 2)

OPTION YEAR 2 PERIOD OF PERFORMANCE: June 01, 2016 to May 31, "OPTION YEAR 2 "Performance period" is: 48%

Imperial Beach, CA; Los Angeles AFB, CA; Luke AFB, AZ; March AFB, CA;

Miramar MCAS, CA; Nellis AFB, NV; North Island NAS, CA; Port Hueneme

2003 1 Lot $11,290,419.10 $11,290,419.10 EST OPTION Area 6, Group 3 (OPTION YEAR 2)

OPTION YEAR 2 PERIOD OF PERFORMANCE: June 01, 2016 to May 31, "OPTION YEAR 2" Performance period" is: 53%

3001 1 Lot $6,219,735.54 $6,219,735.54 EST OPTION Area 6, Group 1 (OPTION YEAR 3)

OPTION YEAR 3 PERIOD OF PERFORMANCE: June 01, 2017 to May 31, 2018

"OPTION YEAR 3" Performance period" is: 48%

3002 1 Lot $20,039,170.91 $20,039,170.91 EST OPTION Area 6, Group 2 (OPTION YEAR 3)

OPTION YEAR 3 PERIOD OF PERFORMANCE: June 01, 2017 to May 31, "OPTION YEAR 3" Performance period" is: 48%

Imperial Beach, CA; Los Angeles AFB, CA; Luke AFB, AZ; March AFB, CA;

Miramar MCAS, CA; Nellis AFB, NV; North Island NAS, CA; Port Hueneme

3003 1 Lot $11,290,419.10 $11,290,419.10 EST OPTION Area 6, Group 3 (OPTION YEAR 3)

OPTION YEAR 3 PERIOD OF PERFORMANCE: June 01, 2017 to May 31, "OPTION YEAR 3" Performance period" is: 53%

CLAUSES INCORPORATED BY FULL TEXT

ADDENDUM TO FAR 52.212-4

CONTRACT TERMS AND CONDITIONS – COMMERCIAL ITEMS

1. SCOPE: The Defense Commissary Agency (DeCA) will contract with a Coast Produce Company to provide

Fresh Fruits & Vegetables (FF&V), Live Potted Plants, and Ornamental Produce (fresh Indian Corn, fresh gourds; fresh wreaths and garland, or fresh pine roping) to various store facilities assigned to Area 6 of DeCA’s

West Area located in the Southwest and Northwest sector of the United States and Hawaii (CONUS).

Additional FF&V core and non-core products not listed, additional potted plant products not listed, and additional ornamental produce items not listed may be added to the contract without re-competition during contract performance with Area/Headquarters management and contracting officer approval. The contractor shall supply DeCA commissaries quality products that meet or exceed the U.S. Grade No. 1 standards, or the standards specified in the Core Item List at Attachment E.

The contractor shall provide DeCA with all necessary support, order processing, electronic price updates, reporting, purchasing, distribution, and merchandising materials/personnel necessary for the successful performance under contract. In addition, the contractor shall be responsible for providing all necessary licenses, permits, supervision, facilities, equipment, order processing, distribution, inventory management, and personnel at the contractor’s own facilities/distribution center to receive, store, handle, sort, and deliver all required Fresh

Fruits and Vegetable (FF&V), Live Potted Plants, and Ornamental Produce items to the various commissary locations that are serviced under this contract.

The contractor is responsible for ensuring that a current and valid Perishable Agricultural Commodities Act

(PACA) license is maintained by their growers, producers, suppliers, and shippers, for the duration of any performance under this contract.

The contractor is responsible for establishing and maintaining a Quality Assurance (QA) program that includes, at a minimum, a Quality Assurance Manager and annual third-party audits in accordance with industry standards for the duration of any performance under this contract.

2. PERIOD OF PERFORMANCE: The base period of performance will commence 30-45 calendar days after notification of contract award (June 01, 2013 through May 31, 2015) for 24 consecutive months (actual dates will be specified at time of award). In addition, there will be three 12-month option periods available that may be exercised at the sole discretion of the Government, subject to the terms and conditions of this contract.

3. PRODUCT LINE: The contractor shall deliver a full assortment of fresh fruit and vegetables live potted plants, and ornamental produce to each commissary store location listed at Attachment B. The contractor shall work closely with the DeCA MPS and Headquarters personnel in the area of purchasing, distribution, or transportation (i.e. DeCA

Corporate Buy Program). Thirty days before the first order is placed by the stores, the contractors shall provide

DeCA’s MPS and Headquarters personnel an electronic version of the completed order guide that includes all core items, a complete list of non-core items, and a complete list of potted plants available for ordering. The contractor may be expected to review its order guide with MPS and Headquarters personnel on a routine basis for the purpose of adjusting the assortment of non-core items, potted plants, and/or ornamental produce items. For information on the core and non-core items, see Addendum to FAR 52.212-4, paragraph 6 (Ordering Information) and at attachment

E.

4. CONTRACTOR-OWNED WEB BASED RETAIL ORDERING SYSTEM: The contractor will provide and maintain an order-processing center and provide a web-based retail ordering system. The contractor-owned web ordering system shall have the ability to receive and process electronic orders from all the commissary locations supported under the resulting Area 6 contract. The contractor-owned web ordering system shall have the capability to email the produce manager an order confirmation in an invoice-type format prior to the next day’s delivery. The delivery ticket invoice that is required to accompany each produce delivery shall mirror the email order confirmation. The following items should be included on the delivery ticket invoice:

item code; description; quantity order; quantity ship; price, and cost. The contractor-owned web ordering system shall also have the capability to transmit electronic price updates, manage an automated inventory, and create detailed sales, and order history reports. The contractor-owned pricing and ordering system shall interface with the existing DeCA electronic systems, without any additional cost or effort to DeCA (i.e.

interface is limited to DeCA personnel). The contractor-owned web ordering system shall also have the capability to download .txt files to the commissary stores for successful uploading in our system. An example of a line of .txt data that will successfully upload in our system is:

55555,ApplesRed,,,137.50,05/31/2013,[enter key]

The catalog must be downloaded in .txt format and meet the following requirements:

1. Item number – 5 digits in length

2. Item description: up to 30 characters in length

3. Case cost = xxx.xx.

4. Date = 05/31/2013.

5. First line of text must begin with data and cannot be blank.

6. The name must be named catalog.txt.

6. Put a coma at the end of each line of text, then hit the enter key.

The contractor shall ensure the Store Produce Manager or authorized designee has the ability to submit a single order to the contractor’s order processing center through the web–based ordering system. The contractor’s order processing center will provide the Store Produce Manager with features that aid in planning and increasing productivity in addition to providing produce commodity updates designed to keep the Store Produce Manager up-to-date on special buys and industry news.

5. CUSTOMER SERVICE OFFICE: The contractor will provide a dedicated customer service office committed to resolving all questions or concerns as well as maintaining quality assurance programs at the following levels: ordering, purchasing, origin loading, transportation, distribution center receiving, and distribution center loading. The operating hours and response times as accepted by the Government will be incorporated in the resulting contract at time of contract award. The contractor will provide each commissary location and the contracting office with the customer service point of contact information (i.e. point of contacts, phone numbers, and operating hours) prior to commencement of performance. The contractor shall also notify the commissary and contracting office of any changes to this point of contact information during contract performance.

6. ORDERING INFORMATION:

(a) The lead-time from order placement of all product (to include organics and specialty items) to the store product receipt at the store level will not exceed 24 hours for every delivery. Any exceptions to this 24-hour rule shall require the approval of the Headquarters Produce Specialist, on a location-by location basis. Orders will be placed against this contract during the contract performance period by authorized ordering officials who will place delivery orders via the contractor’s website (available 24 hours a day; 7 days a week, unless otherwise specified), orally by telephone, or by facsimile. The preferred method of ordering is via the contractor’s web ordering system. Ten (10) calendar days prior to contract start-up, the contractor shall provide a minimum of three (3) unique log-ins and passwords to authorized ordering officer (by position) who are located at each commissary location listed under the resultant contract.

The contractor is expected to comply with requests to provide additional log-ins and passwords for

DeCA personnel at all commissary store locations. The contractor shall also provide the contracting officer with a unique log-in and password that may be used to monitor pricing during performance. The authorized ordering officers (by position) to place calls/delivery orders for each designated commissary under this contract are as follows: Store Director, Deputy Store Director, Store Manager, Produce

Manager, Produce Lead Worker, or as otherwise designated by the contracting officer.

(b) The contractor shall not substitute product, shall not ship products that are centrally managed and subject to category review, or back-order a product.

(c) The Government’s list of core items include the FF&V products that the contractor shall ensure are always available for delivery, if ordered. This “never-out” list of core items must be available 100% of the time they are in season. The FF&V contractor shall ensure that core items marked as “seasonal” are available for delivery 100% of the time they are in season, as designated in the schedule of supplies, Attachment E. All seasonal non-core items must be available for delivery 100% of the time.

7. SHORTAGES: The contractor shall deliver all quantities ordered in accordance with paragraphs (b) and (c) above. The contractor shall not short-ship items or quantities that have been ordered by the stores. The contractor is responsible for ensuring the delivery of all quantities ordered. If the contractor is unable to completely fill an order from their existing inventory, the contractor shall use an alternate source of supply to completely fill the order. The contractor is responsible for maintaining a sufficient number of alternate sources to serve as back-up suppliers by filling the order, and/or providing same day deliveries to each commissary location listed under the resultant contract. Payment of the invoice from the alternate source of supply shall be the sole responsibility of the contractor. Any additional costs (i.e., difference in price between the current week’s pricing and the alternate source of supply) shall be borne by the contractor.

Failure to fulfill order requirements will be documented and filed, and evaluated as part of the contractor’s past performance record.

8. EMERGENCY/OUT-OF-CYCLE ORDERS: No more than once a month, commissary ordering personnel may need to place an emergency order or an out-of-cycle order for products that are urgently needed at which time the contractor may not be given the benefit of the full order lead time, i.e. 24 hours. The contractor is expected to accept emergency or out-of-cycle orders and absorb transportation costs not more than once a month. If commissary ordering personnel place emergency orders and/or out-of-cycle more than once a month the government will pay the contractor’s transportation costs. Emergency and out of cycle orders may require an additional delivery that may require commissary personnel to issue the contractor a new call order number.

9. TIMEFRAMES FOR CHANGES TO ORDERS ALREADY PLACED: The contractor is expected to accept changes to orders already placed provided the change is made within a designated timeframe prior to shipment. The contractor will determine the window of time that equates to “prior to shipment”, and will provide it to the contracting officer where it will be incorporated in this paragraph at the time of contract award. The contractor may accept or deny changes to orders already placed outside of the designated timeframes, regardless if the changes are submitted prior to shipment.

10. ADDITIONS TO ORDERS ALREADY PLACED: In those instances where commissary personnel determine additional items or quantities are needed to an order already placed, the contractor is expected to provide the additional quantities at the same price the items were originally ordered if the additional quantities are on-hand and it is within the designated cutoff time frame. If the contractor does not have the additional items or quantities on-hand and must procure it from an alternate source, and the contractor bares any additional costs that will be passed to the commissary, the contractor must notify the commissary ordering personnel of the additional price, and the commissary ordering personnel must relay to the contractor their need for those additional items/quantities.

11. DELETIONS TO ORDERS ALREADY PLACED: In those instances where commissary personnel determine an entire order, items, or quantities should be deleted from an order already placed, the contractor is expected to delete the entire order, or the item, or quantities without question providing commissary personnel notify the contractor within the timeframe established in accordance with paragraph (9) above.

12. SAME DAY REPLACEMENTS: The contractor is responsible for maintaining a sufficient number of alternate sources of supply to ensure same-day replacements are available to replace non-conforming products. The contractor is responsible to ensure same-day replacements are delivered to the store during a timeframe that is conducive with the daily sales goals of the produce department.

13. WEEKLY PRICE UPDATES and ORDERING GUIDES:

(a) WEEKLY PRICE UPDATES: Unless the contracting officer has approved an alternate pricing method, single pricing for all commissary stores will apply to each line item, (i.e., oranges delivered to Beale

AFB, CA @ $.89 per pound must also be delivered to Ft Ord, CA @ $.89 per pound). Pricing for each line item in this contract shall be priced utilizing the contractor’s web-based system. Prices shall be firm-fixed and inclusive of all costs, overhead, and profit. All items available for ordering must be priced. Items shall not contain zeros or blank prices. If items are not available for ordering that week, the item will not be listed. Pricing in the contractor’s web-based ordering system must match the prices submitted on the delivery ticket invoice. The contractor shall ensure the unit price (case price divided by number per case) is always rounded up two decimal places i.e., applying the zero mil rule. The contractor shall also ensure the “suggested retail price” is rounded up, using the zero mil rule, after applying the 7% markup. The contractor is responsible for entering price changes into their online ordering system no later than Midnight PST, or MDT/MST or HADT on each Wednesday to be effective the following Monday through Sunday. The contractor shall correct pricing errors made prior to the deadline noted above. If the contractor is able to offer the stores special prices, spot buys, discounted prices after Midnight PST, or MDT/MST or HADT on each Wednesday, the contractor shall notify the stores in writing by transmitting the special prices either by email, or by telefax. The

Government will monitor online pricing. Errors in online pricing will be documented, and filed and evaluated as part of the Contractor's past performance record. Errors, determined by the contracting officer to have been entered fraudulently shall be cause for termination of the contract. Frequent pricing errors may lead to further measures as prescribed by the contract terms and conditions that may result in termination of the contract and affect future contract awards.

(b) ORDERING GUIDES: The contractor shall prepare a weekly ordering guide and electronically transmit it to, the contracting office (MPRC), the MPS and the Headquarters Produce Specialist(s) no later than

Midnight PST, or MDT/MST or HADT on each Wednesday to be effective the following Monday through Sunday. All items available listed in the ordering guides must be priced. Items shall not contain zero or blank prices. If items are not available for ordering that week, the item will not be listed in the ordering guide. Prices listed in the contractor’s ordering guides must match the prices submitted to the stores and the delivery ticket invoice. If the contractor is able to offer the stores with special prices, spot buys, discounted prices after Midnight PST, or MDT/MST or HADT on each Wednesday, the contractor shall provide the same notification that was provided to the stores by transmitting the special prices either by email to the contracting office, the MBU and the Area Produce Specialist. The contractor shall provide each Store Produce Manager, MPS, Headquarters Produce Specialist(s), and contracting personnel (MPRC) with an automated electronic weekly order guide. This order guide shall be organized into categories and have a logical layout. The order guide will contain information such as

Case Price, Unit of Measure, Unit Price and Suggested Selling Price (base on a DeCA-assigned markup). The order guide will also contain a list of weekly specials. DeCA anticipates standardizing its

PLUs, Item Descriptions, and Commodity Codes in all produce departments at which time DeCA HQ will provide the PLUs, Item Descriptions, and Commodity codes to the contractor. The contractor will be required to publish the PLUs, Item Descriptions, and Commodity Codes in the weekly catalog immediately following receipt of the PLUs, Items Descriptions, and Commodity Codes and include the

PLUs, Item Descriptions, and Commodity Codes in any .txt files that are downloaded and/or published on the contractor’s website.

14. DISTRIBUTION AND TRANSPORTATION: All deliveries are FOB Destination to the commissary store – the contractor is responsible for all freight charges. The contractor will provide timely deliveries (in accordance with Addendum for FAR 52.212-4, paragraph 17, Delivery Schedule) in temperature-controlled trucks to each commissary. Distribution is a key factor in a successful Fresh Fruits and Vegetables (FF&V), Live Potted Plants, and Ornamental Produce guaranteed sale potted plant and ornamental produce program.

A successful distribution system relies on two main factors, a large volume of product movement and a sufficient number of well-place distribution centers. When these two factors are present, customers will receive the freshest product available. Each consolidation and/or distribution center utilized by the contractor in performance of the resulting contract shall have multiple temperature-controlled areas in order to meet in different recommended temperature requirements for the various products in order to maintain shelf life and ensure the products received at each location is of the freshest and highest quality.

15. DISTRIBUTION METHOD: The distribution method for shipments under the resultant contract will be

Direct Store Delivery – Single Order (DSDS). Each commissary location shall determine the order quantities and place the order directly with the contractor. The product is delivered directly to the commissary store except for the Hunter Liggett, CA (support by Ft. Ord, CA) store location. Orders for CONUS locations will be placed 24 hours prior to its delivery. Billing for this method of delivery is on a per call and delivery basis

(one delivery ticket/invoice per day).

16. DELIVERY REQUIREMENTS:

(a) The contractor is required to provide direct deliveries to 35 of the 36 store locations. Deliveries for the

Hunter Liggett, CA location will be made to Ft. Ord, CA store location. Remote store locations, as defined by the Headquarters Produce Specialist, shall have priority for delivery of all products – due to their less frequent schedule of deliveries.

(b) Delivery of Fresh Fruits and Vegetables, Live Potted Potted, and Ornamental produce products will be made in the manner prescribed within DeCA’s Technical Data Sheet, dated March 2012 (Attachment

A). The contractor is responsible for proper product storage, segregation, and delivery of product in excellent condition. All deliveries must be palletized and shrink-wrapped, and must comply with all standards and certifications applicable to the products being provided. Chill sensitive items will be covered in accordance with standard commercial practices to ensure their protection at all times during shipment. Top corners of each palletized load should be reinforced to prevent damage to the cases or product packaging. Load damage should be minimized to the greatest extent possible. Heavier pallets should not be stacked on lighter pallets to prevent case or product packaging damage.

(c) For the purposes of this acquisition, DeCA’s store sizes are based on the total store sales achieved during the timeframe of FY 11 (1 Oct 10 – 30 Sept 11), otherwise known as sales bands. Currently, HQ

DeCA has designated its stores into fourteen (14) different sales bands based on FY 11 store sales.

DeCA’s smaller size stores are currently included in sales bands 1 – 9, and DeCA’s larger size stores are in sales bands 10-14. Attachment F provides the sales band for each store location included in this acquisition. Sales band designations are subject to change.

(d) DeCA’s smaller size store do not move the same volume of produce as larger size stores, but still must provide DeCA’s customers with similar varieties of products and provide a “large store” shopping experience. Smaller store locations may not have the ability to sell an entire case pack of saleable products and subsequently sustain monetary losses. To preclude such adverse actions the contractor should have the technical capability to pack or re-pack different items into smaller case pack sizes to accommodate the ordering needs of the smaller store locations without adversely affecting the price points. In the absence of having the packaging capability to offer smaller case pack sizes, the contractor may provide a percentage of credit to offset the salvage loss that would otherwise incur.

(e) The contractor will not be permitted to double-stack, stack wet product on top of dry product, or deliver product stacked higher than 78”, except bins are allowed to be double stacked provided the commissary location has the proper MHE equipment. If a load is higher than 78”, it will be responsibility of the contractor to breakdown the stack to manageable stacks of not taller than 60” before DeCA takes possession of the product.

17. DELIVERY SCHEDULE:

(a) The contractor shall provide on-time delivery of Fresh Fruits and Vegetables (FF&V), Live Potted

Plants, and Ornamental Produce in accordance with the Delivery Schedule at Attachment B for Area 6, Group 1, Group 2 and Group 3. Any changes to the delivery schedule must be coordinated with all parties concerned and is not considered official until a contract modification is executed by the contracting officer. The contractor shall deliver on the required delivery days as specified in the schedule and within the required timeframe for receiving products at each commissary. The commissary store shall coordinate any unscheduled closing (i.e. inclement weather) with the contractor for alternate delivery arrangements. For the most up-to-date store information (i.e. phone numbers, directions), see

Locations on DeCA’s website: http://www.commissaries.com. The contractor will ensure consistent delivery service is provided to each location during holidays and weekends, as required by the delivery schedule.

(b) The contractor is responsible for delivering products and/or communicating information related to the deliveries directly to the stores. Deliveries other than as specified in the delivery schedule, without a valid change, are considered late. The contractor shall be responsible for notifying the designated point-of-contact at the store location of any late deliveries, in advance. Late deliveries or failure to deliver the proper quantities will be documented with the contractor’s past performance history, and could impact the decision to exercise the options or future awards. Changes to the delivery schedule must be coordinated with commissary management, and forwarded to the contracting officer for coordination with the contractor utilizing the formal contract modification process. The designated Headquarters

Produce Specialist(s) will be the principle party for resolution of all delivery-related issues. The contracting officer will be notified if the contractor, commissary management, and Headquarters

Produce Specialist(s) cannot resolve any issues.

(c) All orders shall be delivered in accordance with the established delivery schedule, except on the Federal

Holidays where all stores are closed as outlined below. When a scheduled delivery day falls on one of the three holidays that the commissary is closed, delivery will occur on the next business day. Saturday holidays are celebrated on the preceding Friday and Sunday holidays are celebrated on the following

Monday. Some store locations may require delivery of Fresh Fruits and Vegetables (FF&V), Live

Potted Plants, and Ornamental Produce products on the regularly scheduled day that falls on one of the other federal holidays or the Store Director or designee may reschedule Fresh Fruits and Vegetables

(FF&V), Live Potted Plants, and Ornamental Produce product delivery for a different day other than the regularly scheduled delivery day due to reduced store personnel. The contractor shall coordinate http://www.commissaries.com/ delivery with the Store Produce Manager in advance of the holidays listed where the store may or may not be closed.

Observed Holidays:

New Year’s Day -- CLOSED

Martin Luther King Day

President’s Day

Memorial Day

4th of July

Labor Day

Columbus Day

Veterans Day

Thanksgiving Day -- CLOSED

Christmas Day -- CLOSED

(d) Under unusual circumstances for operational or mission requirements, the delivery schedule and/or order quantities may fluctuate due to conditions such as personnel shortages, renovation of stores, closing of existing stores, military downsizing, base realignment, or increases/decreases in personnel during crisis situations or deployment.

18. INSPECTION/ACCEPTANCE:

(a) Nonconforming supplies are supplies that are defective in appearance (i.e. sales appeal) or workmanship or are otherwise not in conformity with quality standards or contract requirements

(i.e. ordered quantities). The Government must document and report all non conformances (to include late deliveries, product not shipped/NIS, wrong item, etc) utilizing a Produce Inspection Worksheet

(PIW).

(b) The Contracting Officer or Ordering Officer, in addition to the rights and remedies outlined in FAR

Clause 52.212-4(a) may upon mutual agreement of an equitable price adjustment in the form of a partial credit, accept the nonconforming supplies. The produce manager will complete and email a Produce

Inspection Worksheet (PIW) to the produce contractor no later than noon the day after delivery. The contractor shall complete Block 18 on the PIW by checking the appropriate box titled “approved” or

“denied”, and return the completed PIW to the commissary store within 24 hours of receipt. Failure to return the complete and return the PIW to the commissary will result in automatic credit at the full case price shown the catalog for that pricing week. Failure to agree upon an equitable price adjustment shall be a dispute.

(c) The Contracting Officer may also charge the Contractor for any additional cost of inspection or test when prior rejection makes re-inspection or re-test necessary.

(d) The contractor is expected to issue credit for nonconforming products. The contractor shall pick up the nonconforming products from the commissary for return to the contractor’s warehouse facility to inspect the product pending credit. The Government shall ensure all nonconforming items are properly prepared and ready for pick-up. Pick up of non-conforming products must be made at the time the next regularly scheduled delivery is made or disposition of the product will be at the discretion of the Store

Director or designee, and the contractor will waive the right to inspect the product prior to issuing credit. Government personnel will complete a Produce Inspection Worksheet (PIW) listing the nonconforming products that are to be picked-up, and will present the PIW to the driver at the time the products are picked up. Once the products are loaded on the truck, both the driver and the Government will sign the PIW. The produce manager will email the signed PIW to the produce contractor no later than noon the day after delivery. The contractor shall inspect the returned product immediately upon receipt at its warehouse, and either approve or deny the credit. The contractor shall complete Block 18 on the PIW by checking the appropriate box titled “approved” or “denied”, and return the completed

PIW to the commissary store within 24 hours of receiving the non-conforming products at the warehouse facility. If the contractor elects not to pick up and return the non conforming products to its warehouse facility for inspection prior to issuing credit, the driver will check Block 19 on the PIW and both the driver and the Government will sign the PIW. The produce manager will email the signed PIW to the produce contractor no later than noon the day after delivery. Failure to return the completed PIW to the commissary will result in automatic credit at the full case price shown the catalog for that pricing week.

If a credit is denied, the contractor shall annotate the PIW to explain the reason the credit was denied. If a credit is denied and the commissary requests the non-conforming produce be returned to the store, the products will be returned to the store as part of the next regularly scheduled produce delivery, at no additional cost to the Government. Failure to agree upon a credit denial shall become a dispute and it must be resolved as outlined in the Disputes Clause of the contract.

When the contractor approves the credit for non-conforming products, the agreed upon amount will be applied to the next Delivery Ticket Invoice (DTI), and will be shown on the DTI for the next regularly scheduled produce delivery in accordance with timeframes listed in separate guidance Region personnel may publish. If a credit amount is in dispute, it must be resolved as outlined in the Disputes Clause of the contract before the credit can be taken.

19. QUALITY ASSURANCE PROGRAM: The contractor shall establish and maintain a Quality Assurance

(QA) Program that will be applied to all products and performance under this contract. At a minimum, the contractor’s QA program shall include a Quality Assurance Manager and third-party audits in accordance with industry standards.

(a) Training. The contractor shall ensure its current and future QA Manager(s) complete specialized training courses that demonstrate commodity training in a lab; grading standards; defect tolerances; an understanding of the Perishable Agricultural Commodities Act (PACA); sampling procedures, and hands-on inspection procedures. Acceptable training is offered by United Fresh and the USDA

(Fundamentals of Produce Inspections and Commodity Labs) or equivalent. The training must be completed on or before contract performance begins but no later than 180 days after contract performance begins. All new QA Manager(s) are required to meet the same training requirement. The contractor shall notify DeCA upon hiring new Quality Assurance Managers. Additionally, the contractor shall ensure that newly hired Quality Assurance Managers complete the aforementioned specialized training courses, and that the certificates of training completion are submitted to the contracting officer 60 days after the hiring process is completed. The contractor shall provide the training at no cost to the Government.

(b) Third-Party Audits. The contractor shall ensure industry standard, third-party audits are accomplished at the contractor’s distribution facility warehouse (includes teaming partner’s facilities) on an annual basis.

The results of the annual third-party audits shall be provided to the contracting officer on an annual basis. If major deficiencies are reported in the audit, the contractor shall provide the contracting officer with written notification of the deficiencies 3-5 days following the annual third-party audit. The written notification shall also include a corrective action plan for each major deficiency finding. The government reserves the right to require additional third-party audits at no cost to the government based on the annual third-party audit findings.

(c) Recurring non-conformances are unacceptable. In the event a store or group of stores report repeated issues with the quality of the produce delivered, the government reserves the right to request USDA inspection(s) and/or conduct origin inspections at no cost to the government.

20. PAYMENT INFORMATION: The Defense Finance Accounting Service (DFAS) Center located in

Columbus, Ohio is the agency responsible for making payments to the contractor under the resultant contract.

Payment is made based on the price in effect at the time of receipt at the commissary store. Billing is on a per order and shipment basis (by each store location). Payment will be made on a per order/shipment basis

(one consolidated invoice per day, per store location). Individual call orders placed for products under this contract may include a combination of Fresh Fruits and Vegetables (FF&V), Live Potted Plants, and

Ornamental Produce. However, the products ordered will predominantly be Fresh Fruits and Vegetables

(FF&V) and qualify for the prompt payment terms of Net 10 days. Additionally, contractors are encouraged to participate in Delivery Ticket Invoicing (DTI) to expedite payment. See FAR clause 52.232-4500, Delivery Ticket Invoice (DTI) Procedures (Apr 2000). DTI is a method of billing where the contractor’s itemized delivery ticket accompanies each delivery, and serves as the contractor’s invoice. The contractor is not required to submit a hard copy invoice to DFAS for payment using DTI procedures.

21. PERIODIC SURVEILLANCE REQUIREMENTS:

(a) The guaranteed minimum percentage of patron savings is the average amount the contractor will save the commissary patron on all core items over the selling price of the same or similar items from comparable commercial supermarkets within the local commuting area and/or geographical area within a 20-mile radius of the commissary location (excluding membership clubs and convenience type stores). The contractor is required to maintain the minimum percentage of patron savings on all core items for the base period of contract performance, and for each option year of contract performance, if each option year is exercised. The guaranteed minimum percentage of patron savings of 47% and 52% shall be maintained on all core items when comparing the commissary’s suggested retail selling price (selling price includes a 7% markup) to the retail selling price in comparable local civilian supermarkets during each weekly price period for the entire group. The guaranteed minimum percentage of patron savings will be monitored using Market Basket Pricing Surveys.

The contractor shall make arrangements to conduct the Market Basket Pricing Surveys jointly with the

Commissary Produce Manager or designated representative. The surveys shall be conducted at least once per month at one commissary location which shall be rotated throughout the group. The survey must contain all the core items by group that are in season. The survey must include columns for the contractor’s catalog price, the commissary’s actual selling price, the commissary’s suggested selling price and the retail price from at least two commercial supermarkets. The surveys shall be conducted at no cost to the Government. Multiple surveys may be required in the various geographical areas within the group in order to determine the average percentage of savings within the group. The contractor may be required to participate in DeCA’s annual or semi-annual joint formal market basket survey. In this instance, the results of the price survey will not be utilized to evaluate the produce contractor’s performance, as DeCA may specify parameters for statistical purposes that may not otherwise match the survey parameters specified elsewhere in this contract.

(b) The contractor will provide the results of the Market Basket Surveys, identifying the date when the surveys were conducted, the items surveyed, the comparable store locations checked, and all comparative prices found to the Area Produce Specialist and the contracting officer not later than two days from the date of survey. The Government reserves the right to perform an independent survey at any time in order to monitor contractor performance or validate contractor surveys. The contractor may be required to participate jointly in these surveys. The government will analyze the results of each monthly Market Basket Survey and validate the contractor’s minimum guaranteed percentage of patron savings. The analysis includes reviewing the contractor’s pricing catalog for the same week that the survey was conducted and validating the commissary selling prices. The commissary selling prices and the commercial market basket prices are totaled and averaged. The overall average prices are compared and computed to reflect the percentage of patron saving achieved.

(c) If it is determined that the minimum percentage of patron savings is not maintained on average for all core items for the entire group during a weekly pricing period, or demonstrates a trend of inconsistent failure to achieve the minimum percentage of patron savings, the contracting officer may increase the frequency of the contractor-conducted pricing surveys until further notice. USDA index pricing or some other index may be used to verify the contractor’s ability to provide the percentage of savings offered against the market basket pricing stated in any resulting contract issued from this solicitation. Failure to achieve or maintain the minimum percentage of patron savings may result in negative input into the contractor past performance history that may affect future contract awards, may be a part of the determination to exercise an option year, and/or may lead to termination of the contract. In addition, the contractor may be required by the contracting officer to take other immediate actions to ensure compliance with the savings requirements of the contract.

(d) Pricing on all non-core items, potted plants, and ornamental produce shall be equal to or lower than the prices that are available in the commercial supermarket located within 20 miles of the commissary location. The overnment reserves the right to monitor the pricing structure on all non-core items, potted plants, and ornamental produce as needed. If the government determines the contractor’s pricing structure is out of line, the contractor shall adjust the prices accordingly during the next pricing period.

22. CORPORATE BUY PROGRAM:

(a) DeCA reserves the right to contract separately for corporate-level programs for an assortment of Fresh

Fruits and Vegetables (FF&V) (e.g. pre-packaged bag salads), Live Potted Plants, and Ornamental

Produce products . During the term of this contract, DeCA may coordinate with the primary FF&V contractor on a case-by-case basis to either add or delete items from the contract, in order to facilitate the best possible support to commissary patrons. Any such action that requires a formal change to the contract, as determined by the contracting officer, will be incorporated by means of a formal modification at the time of the change.

(b) The contractor shall be responsible for participating in some DeCA mandated produce programs. The contractor will be responsible for negotiating with DeCA’s preferred vendor/broker to deliver products to the commissaries supported under this contract. These programs are developed by DeCA with participation from current produce vendors and industry. The contractor supplying the stores with produce executes the program “as is.” The contractor shall be absolved from the percentage of patron savings requirement on these items. The products provided to the commissaries under such a produce program shall be excluded from the market basket survey and percentage of patron savings requirement.

These programs may or may not be expanded in the future to include other items.

23. PRODUCT EXCLUSIONS: Any item that is available on a grocery contract/agreement shall not be provided by the produce contractor, unless prior written approval is received by the Headquarters Produce Program

Manager. These items include, but are not limited to: hummus, jarred products (olives, garlic, grape leaves, fruit, salsa, etc.), candy (bulk, prepackaged), product “wash” items, apple chips, apple cider, (shelf stable), croutons, kimchee, wrappers (wonton and egg roll), tofu, soy products (cheese, meat, etc.) and salad dressings (chilled).

24. VALUE ADDED: These items are commonly known as Fresh Fruits and Vegetables (FF&V) that are washed, precut, and packaged for convenience. Value added items are expected to be supplied by the produce contractor unless otherwise excluded as determined by the DeCA HQ Sales Directorate (MPS).

25. MERCHANDISING SUPPORT, PROMOTIONAL PLANS, and OUTREACH EVENTS: The contractor shall provide merchandising support and offer promotions at each commissary store under contract as follows:

(a) The contractor shall provide each commissary store in Area 6, Group 1, Group 2 and Group 3 with merchandising support. The merchandising support under this contract is designed to enhance the overall produce program and increase customer satisfaction…