Statement of Work Uniform Contract as of 5-28-09.doc

Section J.4 – Statement of Work Statement of Work

Manufacturing or Acquiring Uniform Items

Objective #1: Provide all uniform items (except for metal badges) for all Transportation Security Officers (TSOs) per contract specifications/commercial item descriptions.

Objective #2: Manufacture or acquire all items for the TSA TSO Uniform Program. Assure quality control in the manufacturing process.

Objective #3: Effectively assure high level contract quality requirement (MIL I or similar) in the manufacturing process. [Note: MIL I is 52.246-11 in the FAR.] The business partner shall be capable of both manufacturing program items and acquiring program items from other manufacturers. The business partner shall demonstrate full operating capability within 180 days of the contract award or sooner. The partner shall determine which source to use based on the best value combination of a fair and reasonable price, superior quality, and timely delivery. The business partner shall demonstrate expertise as a manufacturer and experience in sourcing product from other manufacturers.

The business partner shall submit a Quality Assurance Plan. The plan shall demonstrate the business partner’s process to maintain redundant quality control procedures for both manufactured products and acquired products. These procedures should include inspections during the manufacturing process, insuring fit consistency, color controls, and laboratory testing. The business partner will show expertise in providing products that meet quality standards based upon contract specifications. The partner’s quality control and quality assurance procedures should result in over 99% of all items shipped being defect free. The business partner shall define a performance metric to measure the frequency of defective products delivered to TSOs.

The business partner’s Quality Assurance Plan shall include conformance with consumer product safety commission or other Federal Government standards or guidelines for known carcinogens, irritants, and allergens that are used in or by-products of the manufacturing process. Initial test reports from independent third party testing labs should be provided before full-scale production of any current or future item begins, and subsequent testing of random samples from warehouse stocks should be conducted annually. Additionally, testing may be required for TSO worn uniform items if excessive irritation/allergies are reported. This testing may be conducted in conjunction with the annual tests, or more frequently if required. All test reports shall be provided to TSA.

Supply Chain Management

Objective #4: Provide inventory control and management, warehousing and tracking of inventory to ensure secure storage and timely delivery. The business partner should have an established distribution process and a quality control/quality assurance program.

Objective #5: Provide shipping, handling and delivery of all goods by traceable means directly to TSOs at their duty location.

Objective #6: Effectively manage/balance inventory with customer demand.

The business partner must demonstrate experience and expertise in forecasting the sales demand for each item in the uniform program. This forecast should become the basis for an inventory plan for each product. The inventory plan addresses such issues as where the item is sourced, size and frequency of ordering inventory, and the amount of safety level inventory maintained “in stock” (provide estimated dollar value ). The business partner should incorporate time tested, state-of-the-art software technology to assist in this complex task. The business partner should have the financial capacity to maintain the appropriate levels of inventory to meet target delivery time requirements.

Distribution centers (DC) with sufficient square footage and performance capacity to perform a contract of this magnitude must be currently in operation. The distribution center must incorporate modern processes to ensure a fair and reasonable cost and designated production lead-time delivery of orders. The DC must be organized to fulfill relatively small, individual TSO orders. The DC personnel must exhibit an expertise in managing transportation services to ensure low cost and fast delivery of orders. The DC must have quality control/quality assurance processes that identify both defective products and order processing errors. Finally, the DC should have garment alteration capabilities that include emblem attachment, embroidery, pant hemming, pant striping, and nameplate engraving.

The business partner shall define performance metrics that measure the timing of delivery for orders and back orders. A performance metric will be created that measures the accuracy with which orders are fulfilled. A performance metric will measure the percentage of orders delivered without backorders.

Order Management

Objective #7: Establish and coordinate the entire ordering process beginning with the placement of each order through the distribution cycle.

Objective #8: Provide a secure, automated web-based ordering process/ e-commerce solution, including an on-line ordering process that allows TSO’s to create a unique password.

Objective #9: Establish procedures for the management of new hire orders, annual government allowance orders, returns, backorders, and other special orders with ability to see TSO names and airports tied to backordered items and replenishment or stock procurement status.

Objective #10: Provide employees with a secure web site inclusive of a web based catalog, pricing, ordering, item availability and customer comment card. E-mail comments from customers to contractor should automatically cc TSA.

Objective #11: The e-commerce solution should provide individual uniform accounts with annual government allowance initial posting, balance information, order tracking, size and ordering history, on-line ordering, and final/annual allowance accounts closeout. Employees should also be able to use personal funds for on-line website ordering via the web-based catalog. The funds must be segregated from regular government allowance funds, but an order may combine personal funds with an government allowance funded order if needed to fully pay for the order. State sales taxes will only apply to the personal funded portion of an order.

TSA TSOs should be able to submit orders to the business partner either directly through a web site or by fax to be entered by a customer service representative. The business partner shall have a proven, automated order management computer system that has the following capabilities. The system must be large enough to handle a minimum of 60,000 individual TSA TSO accounts and an estimation of 450 ship-to addresses. The system should be able to accommodate either employee allowances (specified dollar amount) or employee allotments (specified number of garments). Master files should be maintained for each employee that include job classifications, uniform items approved for that employee, shipping information, allowance balances, and order and size histories. The ordering system should serve as a database for the TSA web site and should serve as a database for TSA reporting requirements. Finally, the business partner must demonstrate an understanding of year-end procurement/budget processes that ensure segregation of funds, allowances, and ordering activities between government fiscal years. Providing separation of activity between fiscal years is critical as the new government year begins each October 1.

A dedicated on-line web site designed exclusively for use by TSA TSOs will be launched and maintained. The web site will have the following capabilities:

1. On-line ordering

2. Real time tracking of government allowance balances

3. Product information including photos, descriptions, size scales, care instructions, and warranty information

4. Order tracking through links with FedEx, UPS, or other shipper web sites.

5. A reference section for order and size histories

6. Automated email confirmations of order receipt and order shipments

7. Use of personal funds in combination with allowance dollars (which may vary) to pay for orders, while effectively segregating these funds for auditing purposes.

8. Communication abilities including on-line customer comment cards and surveys, email capabilities, and a news bulletin board.

9. Security provided through unique account numbers and passwords. Security for sensitive information such as credit card numbers which are transmitted across the internet.

The business partner shall maintain a process for securing and processing uniform orders for newly hired TSOs. Orders shall be obtained at the employee’s job orientation. The orders should be entered into the business partner’s order management system within 24 hours of receipt. The order shall be shipped within five (5) business days of receipt of the order and notification provided if backorder exists. Due to the critical nature of providing uniforms to new employees, these orders should be given priority for shipment.

The business partner will supply fitting kits with sizing instructions, cloth measuring tapes, and other materials needed to assist each new hire in ordering the correct size. It is anticipated that approximately 3,000 fit kits will be required initially, and a similar quantity annually for the duration of the contract. Fit kits will initially be distributed to airports designated by TSA, with subsequent replenishments ordered by the airport administrative officers or designees. (Distribution and collection of fit kits at the orientation will be the responsibility of the government.)

Customer Service

Objective #12: The business partner should maintain a customer service / help desk during normal business hours of 8:00am to 5:00pm EST on normal business days. All shipments should contain a Customer Service Report Card for each TSO to complete and return.

Objective #13: Effectively assure customer satisfaction in the product lines.

Objective #14: Implement a made-to-measure/special measurements program for employees that cannot wear standard dimension uniform garments.

Objective #15: Provide efficient and courteous customer service, including receiving and resolving complaints. Customer assistance should include fitting instructions, comfort, proper accessories, back order issues, late deliveries, problems regarding allowance account balance information and resolution of other problems that arise.

The business partner shall maintain a customer service call center that can input faxed orders, process returns, assist with fittings, provide TSA program information, and is empowered to resolve customer problems. The customer service representatives (CSRs) should be trained and experienced in working with government contracts. A lead CSR should be designated as the TSA program customer service expert. Customers should be able to contact CSRs via toll free phone numbers, toll free fax lines, email, and the web site.

The customer service call center shall operate during normal business hours, 8:00am to 5:00pm EST on normal business days, but it should have the capability to expand hours to meet peak demand periods. The business partner should demonstrate training programs for the CSR’s. In order to provide superior customer service, the business partner should demonstrate the use of technology in the call center.

The business partner shall ensure customer satisfaction with products and services through the following efforts. CSRs will be provided tools and training to resolve customer problems. They will elevate problems to the appropriate person within the business partner’s organization to achieve resolution of more complex issues. Customer satisfaction will be monitored with both comment cards inserted in shipments and on-line comment cards. Regular meetings should be scheduled between TSA program management and business partner management. The business partner will define a performance metric to measure customer satisfaction. A report on returned items, complaints and comments (to include resolution) will be required monthly.

Fitting assistance should be provided by the business partner to TSOs through these efforts. CSRs should be trained to answer TSOs’ questions. Individual TSOs size histories shall be maintained on the web site. Also, size scales and garment dimension charts for each product shall be available on the web site. Fitting kits are to be provided at orientations for new hires which include fitting instructions. A prepaid return address label and return instructions shall be provided in every shipment to facilitate returns when garments do not fit.

The business partner shall have a made-to-measure/special measurements program to provide uniforms for individuals that cannot wear stock pattern garments. A form should be provided that instructs the employee to provide a series of measurements. From the measurements a unique pattern will be created by the business partner to produce the required uniform. The business partner should state a timeframe within which the uniform can be delivered.

Returns may be made subject to the product warranty. Every shipment will contain return instructions and a pre-paid address label to facilitate returns. A dedicated staff at the distribution center will process returns in a timely manner and will quality inspect all garments before returning them to inventory. Credits resulting from returned items will quickly be issued to TSA program or employee accounts to reflect the revised allowance balances. The business partner shall have a process to assign reasons for the returns. A report will be provided showing the returns by reason monthly.

Change Management

Objective #16: Provide professional services for designing new uniform items and redesigning existing uniforms.

Objective #17: Provide processes to effectively manage introduction of new uniform items and termination (or changes) to existing uniform garments. Due to TSA’s needs for rapid response to changes, the business partner must be able to state and meet response times which meet TSA’s needs. New items not currently on the uniform contract, but desired in the new contract include navy blue rain coats with TSA lettering and emblems silk-screened (so as not to compromise waterproofing) on the back, arm and chest (in the $40-80 price range), navy blue ball caps with “TSA” embroidered in silver lettering on the front (in the $7-20 price range), multiple varieties of shoes and boots, all black with no adornments that cover the entire foot and have heel heights no greater than two inches (in the $30-$80 price range), and black leather gloves with lining (in the $10-40 price range). It is anticipated that these items will be purchased by TSOs with allowance or personal funds, or bought by airports with government p-cards for special missions (that is, they will probably not be issued to 100% of the workforce). Additionally, there may be a requirement for specialty items that may be worn by color or honor guards. These may include specialty headgear, white gloves, aiguillettes, ascots, corfam or patent leather-like shoes or belts, and other ceremonial-type clothing and equipment. Flexibility is required to add new line items after award. A statement of work will be provided when the requirement is needed. Additionally, TSA intends to migrate to this contract additional uniforms required for other employees who are not TSOs. These include but are not limited to Transportation Security Inspectors, Federal Air Marshals, canine, etc.

Objective #18: Provide procedures to implement new products, respond to defective products and discontinue products. Configuration control functions will be performed to ensure form, fit and function are maintained and that specifications are followed consistently and not modified without customer approval.

The business partner will identify the ability to serve as the expert on TSA uniform components. The partner should maintain the staff capable (for example, Inventory Management, Technical/Quality, Contracting Officer, Contract Specialist) of product design and development. The business partner should demonstrate an understanding of the need for continuous change. A plan shall be defined to proactively present opportunities for process and product improvements to the TSA TSO uniform program.

The business partner should demonstrate an understanding of the issues created by the introduction of new products into the program or the discontinuation of products from the program. These issues should include assessing the timing for product introduction and the resolution of existing inventory when a product is discontinued.

The business partner shall provide first article (pre-production) samples on every new item for TSA’s formal approval by TSA before stocking and selling any new item.

Transition

Objective #19: Effect an orderly transition from the current incumbent contractor to the follow-on business partner without delay or disruption to daily operations. This transition period shall last between 60 and 120 calendar days.

Objective #20: Effect an orderly transition from the business partner to the subsequent follow-on business partner without delay or disruption to daily operations.

The transition period will begin when the new contract is awarded. The following must be accomplished during the transition period.

1. Product must be received into the distribution center in sufficient quantities to operate the program.

2. First article samples should be submitted to TSA for approval with the proposals.

3. The web site should be made operational.

4. The ordering system should be operational with individual accounts for each employee with their allowance balance established.

5. A post award meeting should take place within 10 days of award. This meeting should include a final product review and approval of first article samples before production begins.

At the end of this new contract, another transition period will take place to the next follow-on business partner. The current business partner should propose a calendar of events that should take place to facilitate the transition. The key personnel of the business partner should be available to the follow-on partner for 30 days to answer questions. Remaining inventory may be offered for sale and a transfer of information from the database may take place.

Program Management

Objective #21: Provide standard procedures for invoicing, refunds, credits, exchanges, deliveries, lost deliveries, billing processes, compliance with quality assurance reviews, maintaining employee privacy and customer service. Invoicing should be by uniform sets for new hires unless orders are incomplete, then the items shipped can be invoiced by item.

Objective #22: Effectively manage warranties and product returns in accordance with policies for most favored commercial accounts.

Objective #23: Simplify reporting processes for scheduled and on-demand reports to support program management.

Objective #24: Serve as a consultant to TSA regarding standard industry practices including fabrics, alternative products, manufacturing advances, and process improvements.

The business partner will provide the following elements as their program management plan:

1. Key personnel shall be named along with their qualifications to manage the TSA TSO uniform program.

2. The product warranty policy shall be defined.

3. Objectively measured performance metrics shall be defined.

4. A security plan will be established which both ensures the security of the uniform components and defines plans to mitigate risks inherent to the operation of the program. The risk mitigation plan should address such issues as loss of facilities, loss of key personnel, and non-performance by subcontractors.

5. Qualifications to serve as a program consultant to TSA will be defined.

6. Standard reporting will be defined and a schedule listed. The ability to provide “on-demand” specialized reporting will also be defined. The invoicing process will be explained.

7. A financial plan will be established to ensure financial capability to carry adequate inventory to meet the required performance metrics and accounts receivables.

Reports and Performance Metrics

We are seeking to hire a business partner who is a SERVICE PROVIDER rather than simply a MANUFACTURER. This business partner should be an expert program manager and integrator focused on customer satisfaction as measured by the following performance metrics:

1. Individual Order Shipping Times: This standard measures the time that the contractor takes to ship an individual order to a specific TSO (customer). Acceptable performance is considered to be within 2 - 4.5 days.

2. Report Delivery: This standard measures the time that the contractor takes to deliver an individual report to the TSA Program Management personnel. Acceptable performance is considered to be within 4 – 8 business days after the end of the report period.

3. Orders Shipped Complete: This standard measures the number of orders free from backorder. Backorder is defined as an order for a specific product that, at the time it is originally received is unavailable for immediate shipping. Acceptable performance is considered to be greater than 80%.

4. Backorder Shipping: This standard measures the time that the contractor takes to ship an individual order to a specific TSO (customer) if the original order is placed on backorder. Acceptable performance is considered to be within 15 – 25 days.

5. Order Accuracy: This standard measures whether the product shipped in an individual order is the product ordered by the TSO (customer). A correct item is defined as the exact match of the ordered items to the shipped items by name, and/or part number, size and description. Acceptable performance is considered to be between 99% - 99.5%.

6. Defect Rate: This standard measures whether the product shipped in an individual order is free from defect. A defect is defined as an obvious or non-obvious deficiency, imperfection, fault or flaw in the material, workmanship or character of the product in such a way that the product as delivered could not be used for the particular purpose for which it is designed. Acceptable performance is considered to be within 99% - 99.5%.

The above performance metrics shall be reported electronically to TSA on a monthly basis within 4 to 8 business days after the end of the month. Additionally, the contractor shall provide monthly reports on the following data within 4 to 8 business days after the end of the month: sales reports by item, inventory status report, funds remaining/remaining allowances report, reason return report, and performance metrics report. The format of these reports is subject to approval and modification by the Government. These reports should be given with enough meaningful detail to permit the Government to validate invoices. Daily shipping reports by airport, which list names of TSOs, items shipped, and shipper tracking numbers shall be provided electronically to recipient airports with copies to TSA program management office on the same day of shipment. These reports must be compatible with TSA Asset Tracking Module. This list of reports is not all inclusive, as individual ad hoc and both recurring and non-recurring reports are expected to be required over the course of the contract to facilitate management of the program.

The potential/bidding contractors should submit evidence of past performance meeting the above metrics with their proposals.

Order Submission

TSA may submit orders to the contractor in multiple ways. Typically, Delivery Orders (DOs) are placed with the contractor which contain funding for orders for specified quantities of uniform items, uniform sets for new hires, or specified dollar values to be added TSOs’ accounts for their individual selections of items they desire to buy.

Allowance dollars, as specified by the TSA uniform program office, may be placed on each TSO’s account in the contractor’s information system. This amount will be visible and tracked on the TSA web site provided by the contractor. Under this scenario, each TSO may choose to purchase any combination of uniform items for which they are approved to wear. Orders may be submitted either through the web site or via a faxed order form.

Separate special allowances can be created to direct funds to specific purchases. These allowances will not appear on the web site.

In addition, the government purchase card (P-Card) is authorized for use for purchasing uniforms through this contract.

Allotments

TSA may assign an allotment of uniforms for each TSO. The contractor will create an order in their information system for each TSO who is to receive the allotment. The contractor will provide TSA with an estimated schedule of delivery to complete shipment of the allotment orders based on the contractor’s anticipated production schedule. Under this scenario, an allowance balance will not appear on the web site, but the allotment order will be visible for tracking.

Rollout

Rollouts of new TSA uniform items under this contract may be conducted on an allotment basis. If conducted, the contractor will provide an estimated delivery schedule based on production schedules, and the numbers of TSOs at the various airports. The TSA uniform program office will designate the order of shipment priority.

Screening Partnership Program

Uniforms for the Screening Partnership Program may be added to this contract for the provision of uniforms. Uniform items will be the same as the TSO uniform without emblems or patches. The current number of persons under this program is approximately 2,000. SPP unique patches may be added at a later date.

New Hires

New Hires

TSO new hires typically range from 8,000 to 15,000 per year, and average approximately 12,000 per year. Although this quantity is not guaranteed, it is provided to assist in proposal and pricing development. Typically, a DO will be issued that funds/specifies quantities of uniforms and an ordering period, and individual TSOs will place their orders at orientation based on their size requirements and shirt preferences (combination of long and short sleeve shirts that total six). New hire TSOs will receive the following items for base issue. Optional items will be provided when required.

3 Long Sleeve Shirts (default quantity, however TSOs may order any combination of short and long sleeve shirts that total six) 3 Short Sleeve Shirts (see above comment on long sleeve shirts) 3 Trousers

2 Ties

2 Sets of Shoulder Boards

1 Belt

1 Sweater Vest 1 Team Jacket

1 Nameplate

3 Pairs of socks

The above items are subject to change during the course of the contract.

Specialized Allotments

TSA provides certain specialized allotments of uniforms to TSOs who meet certain criteria. These include maternity uniforms for pregnant TSOs, cotton uniforms for those TSOs experiencing allergic reactions to issued shirts and trousers, and skirts to TSOs who have approved religious exemptions to wearing trousers. These allotments are described more fully below.

Maternity Uniforms The standard (default) maternity package for each pregnant TSO includes three long sleeve maternity shirts, three short sleeve maternity shirts, and three maternity trousers. The shirts may be ordered in any combination that totals six. The contractor will provide a maternity order form on the website that will be certified by the FSD or designee and forwarded to the contractor for fulfillment. These items are typically funded by a DO for specified quantities that may be ordered within a designated ordering period.

Cotton Uniforms

The standard (default) package for TSOs who may have allergies to materials in the standard issue uniforms includes three long sleeve shirts, three short sleeve shirts, and three trousers. The shirts may be ordered in any combination that totals six. The contractor will provide a cotton uniform order form on the website that will be certified by the FSD or designee and forwarded to the contractor for fulfillment. These items are typically funded by a DO for specified quantities that may be ordered within a designated ordering period.

Uniform Skirts

The standard (default) package for TSOs who may have a religious conviction against the wearing of pants in the standard issue uniforms includes three skirts. The contractor will provide a skirt order form on the website that will be certified by the FSD or designee and forwarded to the contractor for fulfillment. These items are typically funded by a DO for specified quantities that may be ordered within a designated ordering period.

The default packages for maternity uniforms, cotton uniforms, and uniform skirts are subject to change during the course of the contract.

Optional Items

TSA has approved a variety of optional items that may be worn by TSOs. These include parkas, three-season jackets, coveralls (both insulated and unlined), shorts, polo shirts, commando sweaters, male and female shoes, and knit stocking caps. Other possible items to be added to the program include rain coats, ball caps, leather gloves, cardigan sweaters, cargo pants, additional varieties/selections of shoes and boots, honor guard items (specialty headgear, white gloves, aiguillettes, ascots, corfam shoes and belts), and other uniform related items for non-TSOs. Additionally, we may require embellished/non-embellished OLE-FAMS/TSA items inclusive of trousers, polos, jackets, caps, mission bags, specialized under garments, belts, boots, and the flexibility to add requirements as needed.

Non TSO uniform items may require management of separate accounting, ordering, invoicing, etc. processes.

The contractor will provide the following items for Transportation Security Inspectors:

Polo shirt, long and short sleeve, black 100% cotton with patches

Lightweight windbreaker jacket, black, waterproof with patches

Jacket (3 in 1 Parka) black, waterproof, removable inner fleece jacket, zip-off or roll-in hood and side zippers. Unisex, with emblems, badge holder & identification flap/panel.

Federal Air Marshal uniforms may be added to this contract at a later date.

FY09 Uniform Re-compete

J.4 SOW