Attachment_A._SOW.pdf

STATEMENT OF WORK (SOW)

1. GENERAL DESCRIPTION OF SERVICES: The purpose of this contract is to provide Coupon Clearinghouse Services for the Defense Commissary Agency (DeCA). The Contractor shall be required to provide Redemption Services for paper and paperless merchandise coupons as received from DeCA Activities Worldwide (CONUS and OCONUS). DeCA is a Department of Defense (DoD) Agency that manages and operates supermarkets/grocery stores for the Armed Services in the United States and in 13 countries throughout the world, with annual sales of nearly $6 billion. The commissary benefit exists for the Service members, military retirees, and their dependents. The Contractor shall be required to furnish all necessary management, supervision, labor, equipment, materials, supplies, facilities, and transportation as may be required to perform the work as set forth herein.

2. DEFINITIONS:

2.1. Contractor Service Charge: The rate per one thousand coupons charged by the contractor for providing redemption services.

2.2. DeCA Financial Services Branch – Support (FSBS), Coupons: The DeCA activity responsible for managing the coupon program. The contractor shall interact with the Contracting Officer's Representative (COR)/Supervisor, Financial Services Branch from this activity for day-to-day operations.

2.3. DeCA Transmittal Form: The DeCA Form submitted by the commissary activity with each box of coupons sent to the contractor. This form provides the commissary with a count of coupon quantity and face value amount contained in a shipment. The form is also used by the contractor to reprocess coupons returned directly from manufacturers or with the bank payment documentation for nonpayment but that are valid coupons (i.e., missorted or misdirected coupons). Only a commissary activity or the DeCA FSBS, Coupons will assign the transmittal numbers used on the form.

2.4. Defense Commissary Agency (DeCA) Activities: Individual DeCA Commissaries Worldwide, including commissaries within the continental United States (CONUS) or outside of the continental United States (OCONUS), to include Alaska, Hawaii and Puerto Rico that are located on military bases of the U.S. Army, U.S. Air Force, the U.S. Marine Corps, Coast Guard, and the U.S. Navy, regional headquarters, district headquarters, and DeCA Headquarters.

2.5. Face Value: The unit value shown on the face of the individual coupons offered for redemption.

2.6. Foreign Coupons: See Definition of "Missorted Coupons".

2.7. Issuing Manufacturer's Overdue Account: A list of all invoices for which total reimbursement has not been received by the Government within 45 calendar days from the date the contractor mailed the invoice and coupons to the issuing manufacturer.

2.8. Invalid coupons: Non-coupons received in shipments forwarded by the commissary activities for which it is determined, prior to invoicing or shipping to issuing manufacturer, that redemption cannot be secured.

(Coupons received by the contractor after date of expiration will not be considered invalid and shall be processed for redemption).

2.9. Inventory Float: Coupons counted, sorted, and valued for a completed/audited transmittal but not invoiced because it represent a small amount of coupons from a single manufacturer that are too few to invoice within a single batch. Inventory float for any one manufacturer, shall not be held for more than 30 calendar days from the date put into inventory float. Regardless of the count or face value dollar amount, the inventory float shall not exceed 100 coupons or $100.00 of face value.

2.10. Manufacturer’s Handling Fee (Allowance): The sum to be paid to the retailer (Defense Commissary Agency) by the coupon issuing manufacturer or designated agent for handling individual coupons. The handling fee amount is normally noted on the coupon and is a minimum of $.08.

2.11. Missorted Coupons/Foreign Coupon: Coupons of an issuing manufacturer that are inadvertently invoiced and sent to a competitive manufacturer.

Redemption centers refer to these as "foreign coupons".

2.12. Misdirected Coupons: Coupons invoiced to the correct manufacturer but sent to the incorrect redemption address for the manufacturer.

2.13. Postage Reimbursement: The amount of postal fees incurred and invoiced by the contractor and is actually paid by the issuing manufacturers. Amount of reimbursement to contractor is only for the amount reimbursed from the manufacturers, as documented by the manufacturer’s invoice.

2.14. Shipment: One box of coupons shipped to the contractor by the commissary. Each box shall have a single DeCA Transmittal Form inside the box identifying such things as the commissary activity, the coupon count, coupon face value, and the transmittal number.

2.15. Special Shipping and Handling Fees: Special handling fees invoiced by the contractor for special coupon handling; Coupons are paid by the issuing manufacturers. Amount of reimbursement to the contractor is only for the amount reimbursed from the manufacturers.

2.16. Total Coupon Value: Face Value plus issuing manufacturer's handling fee ($.08 minimum) for each coupon.

2.17. Total Reimbursement: Reimbursement of the total amount of the invoice either by full payment or combination of payment and corresponding amount of the verified unredeemed coupons.

2.18. Unredeemable coupons: Coupons which have been invoiced and shipped by the contractor to the issuing manufacturer for redemption and the issuing manufacturer has either returned the coupons, or provided a statement of non-redemption.

3. CONTRACTOR REQUIREMENTS:

3.1. Within seven (7) calendar days from receipt of a coupon shipment from a commissary activity, the contractor shall audit, count, sort and submit coupons and invoice to the issuing manufacturers for payment. The contractor shall also provide DeCA with the DeCA transmittal data and the invoice data within seven (7) calendar days. The audit and count of each shipment must be comprehensive and include the number and face value of the total coupons in the shipment, the number and face value of the valid coupons in the shipment, the total value of handling fees applicable to the shipment, and the number and face value of invalid coupons in the shipment. The invalid coupons will be attached to the completed DeCA Transmittal Form and shall be forwarded along with all other DeCA Transmittal Forms, identified by batch, to

Defense Commissary Agency ATTN: Financial Services - Coupons 1300 E Avenue Fort Lee, VA 23801.

The contractor shall retain copies of invoices to manufacturers for a period of one year. An electronic copy of all manufacturer invoices on behalf of DeCA shall be submitted to DeCA Financial Services - Coupons, on a monthly basis.

3.2. The clearinghouse contractor should provide shipping labels to each commissary in order to avoid misdirected or lost shipments.

3.3. The contractor shall provide DeCA with the following data based on the transmittal form, as well as the actual contractor count of each commissary or DeCA FSBS, Coupons shipment:

a. Date shipment received by the contractor.

b. Number of valid coupons in shipment.

c. Number of invalid coupons in shipment (attached and returned with DeCA Transmittal form).

d. Total number of all coupons in the shipment.

e. Face value amount of valid coupons in shipment.

f. Face value amount of invalid coupons in shipment.

g. Total face value amounts of all coupons (both valid and invalid) in shipment.

h. Total manufacturer’s handling fees applicable to the shipment.

i. Unique batch number assigned by the contractor for a group of audited transmittals that are related to a specific group of invoices (the group of invoices will have a unique control number.)

j. Transmittal number.

3.4. Commissary shipments received by the contractor shall be batched for processing either as an individual shipment or as a combination of shipments.

The contractor shall provide DeCA the following information concerning a batch.

a. Unique batch number assigned by the contractor.

b. Commissary transmittal number(s) of all shipment comprising a batch.

c. The total number of coupons invoiced in the batch.

d. The total face value of the batch.

e. The total manufacturer’s handling fee of the batch.

f. The total postage/special shipping and handling fees for the batch.

g. A breakdown by invoice for each issuing manufacturer of face value, coupon count, manufacturer’s handling fees, postage/special shipping and handling fees amount, applicable invoice number and invoice date.

3.5. When the contractor completes batch processing, the total of the valid coupons' face value adjusted by the float value of all audited and completed DeCA Transmittal Forms must equal the total face value of issuing manufacturer coupon invoices. Inventory float must be identified as an adjusting item to enable reconciliation of DeCA Transmittal Forms and manufacturer's invoices. Coupon inventory float will be cleared within 30 days of receipt of coupons by the contractor regardless of value or when the coupons for a manufacturer exceeds 100 coupons or $100.00 of face value. The contractor shall provide DeCA FSBS, COUPONS an itemized report of the float amount, identifying the manufacturer's name, the number of coupons, the face value of the coupons, the date the coupons went into float status, and totals on the report of the count and face value amount. The coupon count total and the face value amount total on the itemized report will equal the inventory float count and amount associated with a batch of audited transmittal forms and respective invoices.

3.6. The contractor’s invoice accompanying each shipment shall indicate a unique invoice number, invoice date, payment due date (30 days from invoice date), the batch number, date of shipment to issuing manufacturer, the manufacturer ID number, the manufacturer's name and address, the number of coupons, face value, handling fees, postage, special shipping and handling fees and total amount of the invoice (face value + handling fees + postage/special shipping and handling fees). Invoicing must include the following statements to manufacturers on the invoice:

a. Payment for coupons shall be made to the Defense Commissary Agency, electronically or with check c/o the depository contract established by Treasury to be identified at time of award.

b. Each payment shall identify, or be accompanied by documentation indicating, the applicable invoice number(s).

c. Any deduction from the manufacturer's invoiced amount shall be supported/justified (i.e., unredeemable coupons; provide statement of rational for non-redemption.)

d. Unredeemable coupons shall be returned to the "NAME AND ADDRESS OF

COUPON CLEARINGHOUSE CONTRACTOR."

e. Invoices prepared for the Defense Commissary Agency by "NAME AND

TELEPHONE NUMBER OF COUPON CLEARINGHOUSE CONTRACTOR."

3.7. Once a coupon shipment is delivered to the contractor, the contractor shall be responsible to the Government for the total value of a coupon shipment until it is received by the issuing manufacturer and shall also be responsible for any disputed amounts between the manufacturers and contractor concerning receipt and/or value of shipments. For any dispute concerning shipments between the contractor and the manufacturer, the contractor shall be liable to DeCA for the amount of handling fees and face value of the coupons in dispute. The contractor shall file an insurance claim for the disputed amount upon receiving DeCA's request to do so. (See paragraph 4.2.)

3.8. The contractor shall be responsible for payment to DeCA for face value and handling fees of any lost coupons. This includes any differences between an insurance settlement and the full face value and handling fees of any lost coupons. Evidence of Liability insurance (DeCA coupon specific) in the amount of $2,000,000 shall be provided to DeCA prior to commencement of performance under the contract. The contractor shall file an insurance claim with the insurer within 15 days of written notification by DeCA FSBS, COUPONS. The contractor shall provide DeCA a copy of each insurance claim for lost or missing shipments within one week of receiving the request from DeCA to file an insurance claim. Insurance claims shall designate the settlement of the claim and should be made payable to DeCA. (See paragraphs 4.2.and 4.4.)

3.9. Contractor will use reasonable commercial efforts to collect payments for invoices submitted to coupon issuers. Contractor will be required to perform two follow-up actions concerning overdue accounts.

a. The first follow-up shall be performed for unpaid invoices that are 45-days past the payment due date. The contractor shall provide written notification to the manufacturer within one week from the 45-day follow-up, and inform the manufacturer of each past due invoice.

The contractor shall provide DeCA FSBS, COUPONS with a copy of the written or electronic notification (that was sent to the manufacturer) within one week from the 45-day follow-up.

b. The second follow-up shall be performed for invoices that have met the 75-day threshold. The contractor shall provide written notification to the manufacturer within one week from the 75-day follow-up, that shall clearly state "2ND NOTICE OF PAST DUE ACCOUNTS".

The contractor shall provide the DeCA FSBS, COUPONS with a copy of the written or electronic notification. The following statement shall be included in the written or electronic notification: "IF THE INVOICE IS

NOT SETTLED WITHIN 30 DAYS FROM THE DATE OF THIS NOTICE, THE DEFENSE

COMMISSARY AGENCY MAY DEDUCT THE FULL INVOICE AMOUNT FROM ANY DEBT THAT

THE DEFENSE COMMISSARY AGENCY OWES TO YOUR COMPANY.”

3.10. The contractor is specifically authorized to submit all coupons received from DeCA's commissary activities to the issuing manufacturers on behalf of the Government for reimbursement to DeCA. Any agreements with coupon issuing manufacturers, which may be necessary for the contractor to secure redemption of coupons, shall be the responsibility of the contractor.

The contractor shall provide proof of "Authorized Clearinghouse" status with contract proposal submission by submitting copies of signed agreements with the major grocery manufacturers.

3.11. At least weekly, the Contractor shall electronically submit reconciled audited and invoiced coupon data to DeCA. Transmitted coupon data will be batched, and will consist of manufacturer data, invoice data, payment data, and DeCA transmittal information. The contractor shall provide (via facsimile) to the DeCA FSBS, Coupons, the itemized float report for each transmitted file of audited transmittals and respective invoices. The contractor shall be responsible for all required interfaces and the cost of the weekly transmissions.

3.12. Contractor shall be responsible for maintaining full technical coordination and interchange of information with DeCA FSBS, Coupons, in the following areas:

a. DeCA branded coupon portal

b. Paper coupon Fraud Detection (automatically detects runaway coupons and fakes)

c. Analytics/Business Intelligence/Statistical Data/Reporting

d. Clearinghouse integration (be able to integrate with DeCA’s existing coupon system)

e. Status of past due collections

**** DeCA reserves the right to change system specifications to integrate coupon (paper and paperless) into its enterprise business solution (EBS). EBS is the modernization of DeCA’s entire resale supply chain software applications. It will be a fully integrate, grocery-specific, retail business suite based on commercial best practices and deployed over four separate and distinct phases of increments. ****

4. COUPON SHIPMENT TO CONTRACTOR:

4.1. Coupon Submission Activities: Coupons may be submitted directly to the contractor from any of the commissary activities. Commissary activities will make shipments as often as deemed practicable by the individual activity but not less than once per week. Each shipment will consist of a single box;

however, special circumstances may require multiple boxes for a single transmittal, i.e. Case Lot Sales, Guard/Reserve Sales, Off Site Sales, Truckload Sales and Sidewalk Sales. DeCA transmittal forms will be included in each shipment and shall indicate the following information concerning the entire shipment: (1) commissary transmittal number, (2) total number of coupons, (3) date of shipment, (4) face value, (5) listing of each business days' coupon count and face value in the shipments(6) name of commissary.

The contractor shall notify DeCA FSBS, Coupons, of commissary shipments that do not comply with this paragraph.

4.2. The contractor shall have an automated system to monitor electronic transfer of DeCA Interim Business System (DIBS) transmittals received from DeCA and match them to the coupon shipments received in order to identify any lost or missing shipments. The contractor shall provide a weekly report to the DeCA FSBS, COUPONS of the shipments received during the previous week, which shall include the transmittal number, transmittal date, received date of the transmittal, and the total coupon count and face value amount on the transmittal. The contractor shall notify the DeCA FSBS, COUPONS of shipments not received within 30 days from receipt of the DIBS transmittal letters.

4.3. Coupon Packaging and Shipment Procedures: Shipments will be forwarded via FedEx, U.S. Postal Services or other carriers at the discretion of the Government. Shipments shall be made via a trackable means that provides for proof of delivery. If coupons cannot be forwarded as set forth above, the commissary activity will ship the coupons via the most economical method.

All shipments will be forwarded prepaid. A shipment prepared for transit to the contractor shall not have total contents value in excess of $20,000, except when commissaries have a truck load, side walk, case lot sales, or other special event.

4.4 The responsibility for loss of the coupons plus handling fees shall pass to the contractor at the time the coupons are delivered to the contractor. A copy of the proof of shipment will be maintained by the commissary activity to substantiate any loss. The notification of loss of coupons shall be in writing to DeCA FSBS, Coupons, within two workdays of discovering the discrepancy.

4.5. DeCA FSBS, Coupons, will obtain the proof of delivery for each shipment that the contractor provides written notification of non-receipt.

4.6. All commissary shipments are subject to a 100 percent audit of coupon quantity and face value, by Government personnel, prior to being forwarded to the contractor. Any deviation in the Government audit and the contractor count of coupon quantity and/or face value, which exceeds plus or minus (+ or -) one percent will be considered a non-conformance by the contractor to contract requirements. In the event of a loss to DeCA (i.e., the Government audited face value dollar amount is greater than the contractor face value dollar amount), a deduction of face value plus handling fee for the loss amount will be made from the next contractor service charge invoice payment to the contractor.

5. PROCESSING PAYMENT INFORMATION: The contractor will receive payment information for processing per instruction from DeCA and Department of Treasury. Payment information should be forwarded to DeCA daily. Hard copies of checks will be batched in lots of 75 or less. The contractor shall, within seven (7) calendar days of receipt of the payment provide payment details to DeCA via contractor’s automated coupon clearinghouse system as follows:

a. Bank Control Number

b. Date processed

c. Total number of checks for the batch

d. Total dollar amount of the batch

e. Check number/s

f. Check date/s

g. Check amount/s

h. Invoice number/s

I. Face value/s

j. Manufacturer’s Handling Fee/s

k. Postage/Special Shipping and Handling Fees

l. Code(s) for "reason full payment not made" and associated deduction amount. (See paragraph 5.3 for the list of reason codes.)

5.1. The contractor shall ensure that the total of all checks for the batch reconciles with the bank's batch total amount. The contractor shall research partial payments of invoices to determine the reason the manufacturer made a partial payment. This may include contacting the manufacturer to obtain the statement of rationale for the non-redemption. If contact with the manufacturer is necessary, contact shall be either initiated in writing, or initiated orally and confirmed in writing. All such correspondence shall be maintained on file for review by DeCA.

5.2. The contractor shall provide to DeCA FSBS, COUPONS a report of research where the contractor was unsuccessful in obtaining the reason for a partial payment from a manufacturer. The contractor shall provide the report to the DeCA FSBS, COUPONS within seven (7) calendar days from the receipt of the bank payment data.

5.3. All checks shall be reconciled to the invoices. The codes for "reason full payment not made" are as follows:

REASON CODE

Questionnaire Requested 01 Mail Undeliverable 02 Store sold or closed 03 Postage Adjustment 04 Coupon Appearance 05 Expired Coupons 07 Abnormal coupon mix 08 Purchase Proof Required 09

Excessive Coupon Volume 10 Does Not Stock Product 11 Out of Coupon Distribution Area 12 Non-coupons 13 Billed to incorrect address or Mfg 14 Invoice Calculation Error 15 Claimed Coupon Value Exceeds Manufacturer's

Printed value as stated on coupon 16 Coupon count or value adjusted 17 Illegible Tag (Coupons returned) 19 Excessive postage/insurance 20 Manufacturer has not paid invoice 22 Retailer payment suspended; contact manufacturer/or agent 23 Held for review 24

In-ad offer code discrepancy 25 Non-compliance of in-ad promotion Terms 26

Competitive Retailers In-ad Coupon 27 Non-compliance of In-ad Promotion Period 28 In-ad contract not on file 29

5.4. Missorted and misdirected Coupons: The contractor may receive missorted and misdirected coupons from various sources. The contractor will not be paid for reprocessing these coupons to the correct manufacturer and/or correct address. Additionally, missorted and misdirected coupons create partial payments, which create outstanding invoices. It is the contractor’s responsibility to ensure that DeCA FSBS, Coupons is properly notified of missorted or misdirected coupons that were re-processed. It is imperative that the contractor identifies re-processed coupons by the original invoice.

The identification of missorted and misdirected coupons is essential for DeCA FSBS, COUPONS to close outstanding invoice and partial payment files.

5.4.1. Missorted coupons received from DeCA FSBS, COUPONS: The DeCA FSBS, Coupons will prepare a DeCA Transmittal Form for valid coupons that have been invoiced but shipped to the incorrect manufacturer. The DeCA FSBS, Coupons will mail the coupons and the transmittal form to the contractor for reprocessing and billing to the correct manufacturer. The contractor will not be paid for reprocessing those coupons.

5.4.2. Invoices for missorted and misdirected coupons: When missorted and misdirected coupons are returned to be re-processed, the original invoice should be adjusted to reflect the correct amount (after deduction of the missorted and misdirected coupons). After the correction is made, the invoice may then be closed out. DeCA FSBS, COUPONS shall be provided a copy of the new manufacturer’s invoice, with an annotation that references the original invoice that listed the missorted and misdirected coupons. .

5.4.3. Missorted Coupons received from the bank: The contractor may receive missorted coupons from the manufacturer in the bank payment documentation.

The contractor will remove the coupons from the bank payment documentation and complete DeCA Form 70-71 (Missorted Coupon Log), and annotate the following information: the control number (assigned by the contractor) of the bank payment data, the number of coupons and the face value of the coupons.

The contractor will obtain on a weekly basis a transmittal number from the DeCA FSBS, Coupons. The contractor shall reprocess the coupons on a weekly basis using the transmittal number obtained from the DeCA FSBS, COUPONS. The contractor will not be paid for reprocessing these coupons.

5.4.4. Missorted Coupons received directly from the manufacturer: The contractor will receive missorted coupons directly from the manufacturers.

The contractor shall accumulate all missorted coupons until they reach an amount of $500.00. The contractor will inform and provide DeCA FSBS, Coupons in writing, the number of coupons, face value amount, handling fees, postage /special shipping and handling fees amount, store transmittal number, and invoiced number of missorted coupons forwarded to manufacturers for redemption. Furthermore, the contractor will provide to DeCA FSBS, Coupons by invoice number, face value amount, handling fees, and postage/special shipping and handling amount of payment received from manufacturers for missorted coupons. The contractor shall not be paid for the reprocessing of these coupons.

5.4.5. Misdirected Coupons: The contractor may receive a complete invoice and related shipment as being sent to the wrong address. The contractor shall resubmit the invoices and coupons to the correct address and notify DeCA FSBS, Coupons of the changed address. The contractor shall reprocess the coupons to the manufacturer's correct address within five (5) calendar days from the date of receipt of the returned coupons. The contractor shall not be paid for the reprocessing of these coupons.

6. CONTRACTOR SERVICE CHARGE AND PAYMENT:

6.1. DeCA shall pay the contractor for its services at the unit price per one thousand coupons processed for redemption as specified in the Schedule of Supplies/Services of this contract. The estimated annual quantity of coupons to be processed is the best estimate available to the Government. This quantity, specified in line items 0001, 1001, 2001, 3001 and 4001, is ONLY an estimate and is not to be construed as guaranteed. The contractor shall invoice DeCA monthly for the service charge owed for processing.

6.2. DeCA shall only reimburse the contractor for payments received from manufacturers for postage/special shipping and handling fees invoiced. If manufacturers do not pay the postage/special shipping and handling fees invoiced, then DeCA does not reimburse the contractor. Based on the information the contractor receives from the bank (See paragraph 5), the contractor shall invoice DeCA monthly for the postage/special shipping and handling fee payments received from the manufacturers. A “Not to Exceed” unit price and amount, annotated in line items 0002, 1002, 2002, 3002 and 4002, includes the estimated funds available to the Government for the reimbursement of payments received from manufacturers for postage/special shipping and handling fees. This amount represents the Government’s maximum allocation; and may not be exceeded without prior written approval from the Contracting Officer. Reimbursement will not exceed the amount obligated unless increased by a modification to the contract. The Contractor shall notify the Contracting Officer when 80 percent of the funds have been expended or whenever there is reason to believe that costs will exceed the specified postage/special shipping and handling fees covered by the line item for that contract period. The Government is not obligated to reimburse the Contractor for costs incurred in excess of the estimated cost specified. The Contractor is not obligated to continue to incur costs in excess of the estimated cost specified until the Contracting Officer notifies the Contractor in writing that the estimated costs have increased and provides a revised estimated total cost. No notice, communication, or representation in any form other than that specified above, or from any person other than the Contracting Officer, shall affect the estimated cost to the Government. In the absence of the specified notice, the Government is not obligated to reimburse the Contractor for any costs in excess of the estimated cost.

6.3. If the required overdue invoice follow-ups have not been accomplished as described in paragraph 3.9., the coupon processing fee for the unpaid coupons will be deducted from the next contractor service charge invoice payment.

These fees shall be reinstated upon collection of payments on these outstanding invoices less a deduction of 10 percent of the reinstated contractor service charge.

7. MISCELLANEOUS:

7.1. The contractor shall forward to the Defense Commissary Agency, ATTN:

Financial Services Branch-Support (FSBS), all payments erroneously submitted to them from the issuing manufacturers for DeCA coupons. Checks will be forwarded to DeCA on the same date the payment is received by the contractor.

If the contractor should receive payments in their name for DeCA coupons, they shall endorse and forward such checks to DeCA FSBS, COUPONS on the same date such payments were received. The contractor shall not process check payment information received directly from manufacturers or banks. This information shall be forwarded to DeCA for deposit.

7.2. The contractor shall also forward to DeCA any statement of non-redemption, invalid coupons or any other extraneous material returned by coupon issuing manufacturers or the bank.

7.3. DeCA estimates that approximately 6500 checks will be received in payment for 16000 invoices per month.

7.4. The contractor shall forward the check copies and related documentation to DeCA upon completion of transferring the seven (7) electronic files, listed in paragraph 8.3. The seven files contain bank payment data, transmittal letter and invoice data. Contractor shall transfer the seven files on at least a daily basis.

8. TECHNOLOGY.

8.1. Contractor shall ensure that their system is compatible with the following specifications and upgrades that occur during the life of the contract: System must comply with Windows 7 hardware compatibility list. Windows 7 may be upgraded during the performance of the contract.

Description Mini or Medium Tower with 250-watt power supply, 3 Exposed

5.25 Full Height Bays, 1 Exposed 3.50 Half Height Bay w/2-3

DDR Memory Slots, 2-3 PCI 2.2 compliant slots

Power Supply Power Supply must be 110/240 voltage autosensing switchable capability

Processor Intel® CoreTM i5 (3470, 3570) w/disk encryption Hard Drive 500gb SATA Hard Drive (minimum) must be compatible with FIPS

140-2 and TPM command support Network Card One 10/100/1000 MB PCI Ethernet Network Card Keyboard 104 Enhanced Keyboard with CAC Card Reader Mouse Microsoft PS2 or USB Optical Mouse Memory 4.0g Memory

CDRW/DVD CDRW/DVD-R/DVD-RW

Sound HD audio compatible sound card with Speakers Ports 1 Serial Ports/4-6 USB Ports Floppy Drive None – get from ACED if needed Video Card PCI VGA/DVI Video Card with 128MB/SDRAM or greater Monitor At least 22” LCD Display (minimum 1024x768), as needed, with

4-year warranty, and EPEAT at least at silver level (see monitor specifications in attachment 1)

Smart Card Reader

Must be compatible with the DoD Common Access Card (CAC) and on the DMDC PKI PMO Smart Card Reader List, IS0 7816 Compatible, Physical connection must be USB

Operating System

Windows 7 64bit (DeCA Gold Master Image)

Warranty 4-year on-site warranty – base year plus 3 EPEAT At least at the silver level Wireless card A/B/G/N wireless card (Must be able to support 802.11g/n)

8.2. CONTINGENCY PLAN: Contractor shall develop a contingency plan in case of computer failure. The contingency plan shall describe contractor’s plan of action if their computer system fails. In the case of a computer failure, the contractor will still be required to perform in accordance with the requirements of the contract.

8.3. BATCH IMPORT FILE LAYOUT:

The following database file (*.dbf) structures are to be used to transmit the Batch files from the CCH contractor to DeCA.

These file structures will be developed by the clearinghouse contractor and used to transmit the 7 batch files required to DeCA’s coupon system, Coupons 2000 (C2K), as listed below:

1. Structure for database: CW030207.BB

PURPOSE: SUMMARY RECORD OF INVOICED DATA

Number of data records : 0 Date of last update : 02/13/03 Code Page : 0

Field Field Name Type Width Dec 1 BATCH Character 7 2 DATE Date 8 3 JCN Character 20 4 CCH Character 1 5 NAME Character 30 6 INVOICED Numeric 12 2 7 AUDITED Numeric 12 2 8 AUDITCNT Numeric 10 9 INPUT_DATE Date 8

** Total ** 109

2. Structure for database: CW030207.BA

PURPOSE: TRANSMITTAL INFO – VALIDS AND INVALIDS

Number of data records : 0 Date of last update : 02/13/03 Code Page : 0 Field Field Name Type Width Dec 1 BATCH Character 7 2 TRAN Character 9 3 JCN Character 20 4 CPNS_RECD Numeric 8 5 CPNS_INVLD Numeric 8 6 CPNS_VAL Numeric 8 7 FV_TOTAL Numeric 10 2 8 FV_INVLD Numeric 10 2 9 FV_VALID Numeric 10 2 10 EFLAG Logical 1 11 GLFLAG Logical 1 12 DATE Date 8

** Total ** 101

3. Structure for database: CW030207.BI

PURPOSE: INVOICED BY MANUFACTURER

Number of data records : 0 Date of last update : 02/13/03

Code Page : 0

Field Field Name Type Width Dec 1 BATCH Character 7 2 INVOICE Character 15 3 DATE Date 8 4 MFG Character 5 5 JCN Character 20 6 CPNS_INVCD Numeric 8 7 FACE_INVCD Numeric 12 2 8 FEE_INVCD Numeric 12 2 9 CCHFEE_INV Numeric 12 2 10 POST_INVCD Numeric 12 2 11 INV_TOTAL Numeric 12 2

** Total ** 124

4. Structure for database: CW030207.VV

PURPOSE: PAYMENT DATA – SUMMARY RECORD

Number of data records : 0 Date of last update : 02/13/03 Code Page : 0

Field Field Name Type Width Dec 1 CTRLN Character 12 2 DATE Date 8 3 BANK Character 1 4 NAME Character 40 5 CHECKS Numeric 5 6 TOTAL Numeric 12 2 7 ACTUALCNT Numeric 5 8 ACTUALTOT Numeric 12 2 9 INPUT_DATE Date 8

** Total ** 104

5. Structure for database: CW030207.VC

PURPOSE: PAYMENT DATA – LIST OF CHECKS

Number of data records : 0 Date of last update : 02/13/03 Code Page : 0

Field Field Name Type Width Dec 1 CTRLNO Character 12 2 CHECK Character 10 3 DATE Date 8 4 TOTAL Numeric 12 2

** Total ** 43

6. Structure for database: CW030207.VP

PURPOSE: PAYMENT DATA – MANUFACTURE PAYMENTS BY INVOICE

Number of data records : 0 Date of last update : 02/13/03 Code Page : 0

Field Field Name Type Width Dec 1 CTRLNO Character 12 2 CHECK Character 10 3 INVOICE Character 15

4 MFG Character 5 5 MFGNAME Character 40 6 FACE_INVCD Numeric 12 2 7 FEE_INVCD Numeric 12 2 8 CCHFEE_INV Numeric 12 2 9 POST_INVCD Numeric 12 2 10 INV_TOTAL Numeric 12 2 11 PARTIAL Logical 1 12 REMARK1 Character 30 13 REMARK2 Character 30 14 REMARK3 Character 30 15 REMARK4 Character 30 16 REMARK5 Character 30 ** Total ** 294

7. Structure for database: M030207.DBF

Number of data records : 4 Date of last update : 02/10/03 Code Page : 0

Field Field Name Type Width Dec 1 MFG Character 5 2 MFGNAME Character 40 3 TELE Character 14

** Total ** 60

9. ELECTRONIC (Paperless)COUPONS. DeCA offers electronic/digital coupons through another party. Contractor must be able to accept and send XML files such as Offer Registration, Offer Registration Acknowledgement, Offer Notification and Redemption.

9.1 Offer Registration Files will be sent on a fixed basis but no more than once per business day. The contractor will validate the Offer Registration File to ensure readability, proper XML format and that each offer record contains the required information necessary for invoicing a manufacturer.

9.2 Contractor will send an Offer Registration Acknowledgement File to client or designated third party of acceptance or non-acceptance of the file and if any records were rejected for not having the required information necessary for invoicing the manufacturer.

9.3 Upon acceptance of an Offer Registration File, contractor will send an “Offer Notification File” to the manufacturer agent managing the settlement services for the manufacturer (s) responsible for payment of the paperless coupons accepted in the Offer Registration File.

9.4 Any discrepancies or correspondence received from a manufacturer regarding a paperless offer that was sent in an Offer Notification File will be communicated to DeCA or designated third party.

9.5 On a weekly basis, DeCA or designated third party will provide contractor an XML file with the paperless coupon redemption information require to invoice manufacturers, referred to as the “Redemption File”. The file will be delivered to a designated FTP site. Contractor will validate the Redemption File to ensure proper format and completeness and against the Paperless Offer Database and DeCA’s weekly file.

9.6 The contractor will compare offers on the Redemption File to the Paperless Offer Database.

a) If a record cannot be validated against the Paperless Offer Database, the entire Redemption File will be suspended and contractor will notify DeCA or the designated third party.

b) If the issue can be resolved by providing an updated Offer Registration

File and the Redemption File is confirmed accurate, contractor will re-validate the Paperless Redemption File against the updated Paperless Offer Database and continue processing.

c) If the issue cannot be resolved by updating the Paperless Offer Database, the contractor will reject the Redemption File and DeCA will resubmit a corrected file. The corrected file must use the same file name as the original file.

10. The contractor will send DeCA or designated third party a Redemption

Acknowledgment File as notification of acceptance or non-acceptance of the file.

11. A Job Control Number (JCN) will be assigned to each Redemption File accepted. Each JCN will be unique to a Redemption File submission to ensure that all coupons and information from the submission remain associated with DeCA’s files throughout processing.

12. The contractor will process the Redemption File and invoice manufacturer’s on DeCA’s behalf. DeCA will be notified in the event a manufacturer denies payment for any portion of an invoice or does not pay in full.