Questions__Answers_to_RFP_v1 12_Sep_08.doc

HTC711-08-R-0011

USC-6 Questions and Answers #2

QUESTIONS RECEIVED IN RESPONSE TO RFP

HTC711-08-R-0011, UNIVERSAL SERVICE CONTRACT (USC-6)

Question 1. Section 3.E, PWS page 16, Customs Clearance: In Table 3.1, please confirm that, for those locations not marked “(Joint),” the U.S. Government is fully and solely responsible for customs clearance activities. Additionally, on the top of page 17, the reference to “Table 1” should be to “Table 3.1.”

Answer 1: PWS Section 3.E is revised as follows:

3.E

Customs Clearancxe "Customs Clearance"e

3.E.1 Responsibilities

The responsibilities for customs clearance under this contract are shared between contractor and US Government.

3.E.1.1 For many destinations, the US Government has principal responsibility for customs clearance and performs the majority of tasks incident to clearance. These include the preparation of documents or entry into automated customs systems but by local practice, the government may require the contractor to perform tasks such as document pickup and delivery, presentation of documents to appropriate customs officials and payment of processing fees

Costs incurred by the contractor to provide these incidental services shall be included in applicable ocean or single factor rates. At Table 3.E.1 is a list of locations where the US Government has principal responsibility for customs clearance and Contractor-Arranged Customs Clearance is not payable.

Hardcopy document clearance

1. Government prepares a customs clearance request package (Complete except for any carrier provided documents):

2. Government may submit to customs or give to the carrier for the carrier to combine with carrier documents (such as bill of lading) and deliver to customs officials, pay minor processing fees, obtain approvals and notify any others needing to be notified when clearance is approved.

3.E.1.2 Contractor Arranged Customs Clearancexe "Customs Clearance": Contractor acts on behalf of U.S. Government to obtain Customs clearance.

When Contractor-Arranged Customs Clearance is ordered by the US Government, the contractor has principal responsibility for customs clearance

Contractor-Arranged Customs Clearance includes, as required by local practice additional services that include, Coordination with shipper/consignee and local customs authorities to obtain and/or prepare (except for signature) all necessary documentation for custom clearance, Provide prepared forms/documents to receiver/US Government for signature, Deliver documents to the customs office, and ensure that documentation is provided to all local entities as required to permit release and on-carriage of cargo to final destination.

When ordered, contractor shall be paid a customs clearance surcharge in accordance with the Table of Accessorial Rates. (CARE II)

3.E.1.3 Additional countries may be added to Table 3.E.1 should it be determined that the U.S. Government has increased its presence in a country, and that the U.S. Government shall provide clearance services as described by 3.E.1.1.

3.E.1.3.1 Countries shall be removed from Table 3.E.1 via bilateral modification should it be determined that the U.S. Government has decreased its presence in those countries, and that the U.S. Government can no longer provide clearance services as described by 3.E.1.1.

3.E.1.4 Exception for Shipments to Kobe, Hakata and Nagoya, Japan

Due to the of absence of Transportation Movement Offices (TMO) at Kobe, Nagoya and Hakata ports, the following ancillary service shall be provided by the Contractor for these specific ports. In addition to the Contractor’s basic service, the Contractor shall provide courier service performed by a licensed customs broker for each port. The Contractor shall present the certified and authenticated Customs Free Import or Export of Cargoxe "Cargo" or Customs Declaration of Personal Property, USFJ Form 380EJ together with the Contractor Arrival Notice (OCAN) to the customs office. The contractor shall include costs for this service in the applicable rate.

3.E.1.5 The Government will provide the contractor with appropriate shipper generated customs documents at least three business days prior to vessel departing port of origin.

Table 3.E. 1

Canada

Japan (See Para. 3.E.1.4) / Okinawa

Saudi Arabia

South Korea

Spain

The Netherlands

Turkey

United States territories and possessions

Belgium

Denmark

Germany

Italy

Kuwait

Norway

United Kingdom and its territories and possessions

Portugal including Azores

Bulgaria

Romania

Slovenia

3.E.1.5.1 Import/Export Services: The Contractor shall be responsible for the preparation and/or completion of all required documentation and the submission of the documentation to the appropriate embassy and/or local U.S. Government agencies for the approval, certification, stamping and/or signatures necessary to obtain border clearances and transit. Costs for these services must be included in line haul rates, except that for locations included in the Table of Accessorial, contractor to submit rates for Import/Export Border Clearance service as part of proposal submission.

3.E.1.5.2 The requested services include, but are not limited to, the completion, preparation, and submission of exemption forms, cargo declarations, goods declaration forms, and importation/exportation forms necessary to effect border transit from origin to port.

3.E.1.6 Notification of Cargoxe "Cargo" Held by Customs

The Contractor shall promptly notify the COR, or designee within 24 hours, if cargo is held by Customs, or if the local port authorities require direct U. S. Government intervention for cargo terminal clearance.

3.E.1.7 The Contractor shall be paid at the rates set forth in Accessorial Table 6 for import and export clearance services.

Question 2: Pages 38-39 of 60, The mandatory price reduction imposed on Bravo and Charlie Contractors constitutes an impermissible penalty and should be deleted.

Answer 2: Language changed removing price reduction from Bravo and Charlie Contractors (PWS Section 5) See Amendment 02

Question 3: Page 38, Section 5.A.2.1, How does the Government intend to enforce the cargo preference laws when measuring performance of the Contractors? Also please clarify if on March 1, 2009 will all Contractors begin at an Alpha status or will performance ratings from prior contract establish the ratings for the first 90 days?

Answer 3: Cargo preference laws and measuring of performance are unrelated. USTC will abide by cargo preference laws when booking cargo and take into consideration the performance rating of the carriers. Example if an A and C carrier are providing US Flag Service then we will book cargo with the A carrier. If an A carrier is providing Foreign or Combi service and a C carrier is providing US Flag, we are compelled to book with the US Flag carrier.

All carriers start out with an Alpha rating for the first 90 days (see Amendment 02 for language in Exhibit 2, Ordering Procedures, 2.2.d (1).

Question 4: Page 38 of 60, For on time delivery performance objective and the measurement of the Contractors RDD performance, how will the Government ensure containers that are in-transit status be captured and performance measures revised?

Answer 4: Performance is not measured until cargo is delivered. No measurement of cargo "in transit status" will be calculated.

Question 5: Page 38 of 60, Please confirm that VISA priorities take precedence over performance measures when booking cargo.

Answer 5: Yes Question 6: SECRET Facility Clearance – I noticed the SECRET Facility Clearance document attached to the RFP. I don’t recall seeing this in past RFP’s. Is this a new requirement? Does the clearance that VISA carriers are already required to have satisfy this requirement?

Previous Answer 71 from Amendment 02: A secret facility clearance and a DD254 are required prior to transporting sensitive cargo and are a Government requirement under USC-06.

Answer 6: (Additional clarification to Question 6) : VISA clearance does not satisfy the Facility Clearance requirement. It has always been a requirement prior to transporting sensitive cargo to have a Facility Clearance although the clause and DD 254 were never included in USC-05.

Question 7: There seems to be a conflict in language between 1.1.2 and 1.1.2.1.2, whereas the former says that if no rate exists, one will be negotiated. The latter says that if no rate exists, mileage rates will apply.

Answer 7: Rate Rules, Section 1.1.2 has been revised.

1.1.2 Application of Drayagexe "Drayage" and Inland Ratesxe "Rates"

All drayage or inland services rates are stated in whole dollars per manifested container size/type and are applicable for drayage or inland services furnished by the Contractor in conjunction with basic ocean services. All drayage and inland rates are for between service. No directional rates shall apply under this contract. When there is no drayage, inland or mileage rate that would apply for a shipment, charges shall be negotiated with the Contracting Officer prior to booking. Drayagexe "Drayage" and inland rates apply for tank opentop and flatrack containers unless specifically provided herein. Mileage ratesxe "Mileage rates" shall be calculated to dollars and cents.

Question 8: Written Proposals (page 58 of 62)

The government requires the writing proposal to include “evidence of vessel ownership and/or vessel control for routes/lanes rates are proposed for.” It is common practice that carriers enter into vessel sharing agreements with other carriers in trades where the primary carrier does not have regular service with its own vessels.

Please define evidence of ownership or control in such cases.

Answer 8: Language in Addendum FAR 52.212-1, III.C.1 has been changed as follows: 1. Vessels: Provide listing of vessel ownership and/or vessels under contractor's control. (See Amendment 02). Addendum FAR 52.212-2, IV.1.a.(i) will be removed as a Subfactor.

Question 9: Section 5 - Measuring Performances.

As discussed, USC-06 contains the Excusable Delay Provisions - FAR 52.212-4. In consideration of these provisions, how will the RDD dates be adjusted to account for instances of excusable delay in Carrier performance and container delivery?

Answer 9: Amendment 02 contained the following language concerning RDD forgiveness for excusable delays.

3.A.12 Required Delivery Date (RDD)

The Contractor shall deliver all cargo by the Required Delivery Date (RDD) specified in the accepted booking. When a delay is caused by the U.S. Government, or an excusable delay as defined in the terms and conditions contained within this contract, the contractor shall be relieved of responsibility to meet RDD as booked, however, due diligence shall be exercised to meet RDD and/or achieve delivery at the earliest possible time after RDD. The contractor shall convey impact on delivery to cognizant COR at the earliest practical time to ensure adequate coordination with receiving activity.

Question 10: BAF - price of bunker fuel has fluctuated radically over the past 60 days; in some cases, there has been up to a 25% swing, and the peak was reached in July before coming down to today’s level. In the current RFP language, taking into account the fact that EPA clauses are intended to compensate for fluctuations in costs, subsequent to the start of the contract, and that it would be very difficult to price this contract for March 2009 when this much volatility exists, XXX requests that the base period for establishing the EPA be adjusted to reflect current market conditions as well as a baseline that does not require a payment when the contract starts, and adjusts after a 20% fluctuation as intended.

Answer 10: BAF language was changed see Amendment 02, Rate Rules, Section 2.

Question 12: First, please confirm that CPARS will not be used for the USC-06 RFP proposal evaluations since it is not in place.

Answer 12: CPARS is a Contractor Performance Assessment Rating System utilized for assessing performance after award. CPARS will not be used in proposal evaluations.

Question 13: Generally the government uses CPARS at the conclusion of a specific contract award or task order under a multi year contract. How and when will the CPARS be issued under the USC-06 contract? Please confirm that TRANSCOM will prepare the CPARS.

Answer 13: At the end of a performance period under subject contract, CPARS will send an e-mail notification to your representative advising that the company’s performance ratings are available for review and comment by accessing the CPAR web site. The Defense Contractor Representative is allotted 30 days to review and comment on each assessment forwarded to his or her company. The 30-day review/comment period starts from the date the Assessing Official forwarded the assessment. If the Defense Contractor Representative does not provide comments within the 30-day period, the Government may complete the assessment without Defense Contractor Representative comments. Defense Contractor Representatives are encouraged to contact the Assessing Official to request an extension to the 30-day comment period whenever extenuating circumstances arise. The Defense Contractor Representative, within the first seven days of the comment period, may request a meeting with the Assessing Official to discuss the assessment. Contractors may also assign a Senior Contractor Management official to review performance assessment reports for the company as explained in the attachment. This person can review all CPARS for the company but does not participate directly in the CPAR process Additionally, a Sample CPARS Contractor Letter is attached with additional guidance.

Question 14: Will the CPARS be utilized for the Section 5 - Measuring Performance grading? Will the contractor be able to respond to the CPARS prior to the government's Measuring of Performance?

Answer 14: The performance grading identified in Section 5 is a separate rating than the CPARS evaluation. CPARS is an overall assessment based on annual performance and not a monthly report. While Performance assessed in accordance with Section 5 will have an overall effect in final performance ratings, it is not the only thing assessed in the CPARS system.

Contractors will be able to respond to CPARS ratings prior to final rating being assessed.

Question 15: How often will performance assessments be conducted? Will there be face to face meetings between the contractor and TRANSCOM?

Answer 15: An initial CPAR is required for new contracts meeting the thresholds identified in Table 1 (see below) that have a period of performance greater than 365 days. The initial CPAR must reflect evaluation of at least the first 180 days of performance under the contract, and may include up to the first 365 days of performance.

Intermediate Reports Intermediate CPARs are required every 12 months throughout the entire period of performance of the contract after the initial report and up to the final report. An intermediate CPAR is limited to contractor performance occurring after the preceding normal cycle CPAR. To improve efficiency in preparing the CPAR, it is recommended that the CPAR be completed together with other reviews (e.g., award fee determinations, major program events, program milestones and quality assurance surveillance records).

Final Report A final CPAR will be completed upon contract completion, transfer of program management responsibility outside the original buying activity or delivery of the final major end item on contract. Final Reports are to be prepared on all contracts meeting the thresholds established in Table 1 with a period of performance of less than 365 days. The final CPAR does not include cumulative information but is limited to the period of contractor performance occurring after the preceding CPAR. The CPAR Focal Point has the authority to approve extensions when special circumstances arise.

Table 1 – Business Sector, Dollar Threshold and Reviewing Official

1The contract thresholds for CPAR collection (see FAR 42.1502) apply to the “aggregate” value of contracts; that is, if a contract’s original award value were less than the applicable threshold but subsequently the contract was modified and the new value is greater than the threshold, then assessments are required to be made, starting with the first anniversary that the contract’s face value exceeded the threshold. If the total contract value including unexercised options and orders (for IDIQ contracts, total estimated value of unexercised options and orders) is expected to exceed the collection threshold, initiate the collection process at the start of the contract. Buying activities may choose to collect performance assessments for awards below these thresholds.

2Only required when the contractor indicates non-concurrence with the CPAR, when the contractor is non-responsive, or if otherwise requested by the contractor during the 30-day comment period.

3(Or equivalent individual) responsible for program, project or task/job order execution.

4For contracts under the $5M threshold, buying activities should continue to accumulate contractor performance data from existing management information systems, which already capture data on timeliness of delivery and quality of product or service (examples of such performance information collection systems include the Automated Best Value Method, Red Yellow Green, and Past Performance Information Retrieval System - Statistical Reporting Module.

Face to Face meetings are not required, although the Contractor may request such a meeting and TCAQ will honor that request.

Question 16: Compliance with CPARS, including meetings, contractor responses, etc. will result in increased costs to the contractor. There is no line item for the contractor to price the CPAR effort, meetings, etc. How will the contractor be compensated? Please insert a line item for contractor pricing or provide for contractor reimbursement of CPAR related expenses.

Answer 16: Not sure what these additional costs are with the exception of the initial PKI certificate cost and time and effort expended annually to respond to the on-line assessment. All costs associated with this process should be included in overhead and included in rates.

Question 17: The answer to question 108 states that USTRANSCOM has “revised Section 5.A.2.2 to include removal of the discounts based on performance levels.” However, in the answer to question 120, USTRANSCOM includes language in Table 5.A.2.2 that suggests discounts would still apply (“Eligible for all cargo bookings at a reduced rate.”) Please delete the language “at a reduced rate” in Table 5.A.2.2 to be consistent with the answer to question 108.

Answer 17: Section 5 language was changed in Amendment 02 to delete "reduced rate" language.

Question 18: The question was whether the contract would be awarded on a best value basis or a low-cost technically acceptable basis. The question concluded by asking for a detailed description of the evaluation factors. The answer that "low-cost technically acceptable (LCTA) is a type of best value source selection" is non-responsive. Referenced FAR section 15.101 states at subsection (b)(2) with respect to LCTA that "Tradeoffs are not permitted." That limitation is inconsistent with the apparent intention of the government to consider service as more important than price, at least in some circumstances. Award criteria are perhaps the single most central subject matter in the contract. Please state explicitly. with reference to the controlling language in the solicitation, how the government intends to make awards and thereafter book cargo under this contract.

Answer 18: There are no "trade-offs" being utilized in the RFP evaluation process, Ref Addendum FAR 52.212-2. The booking process identified in Exhibit 2, Ordering Procedures, is separate and unrelated to the evaluation prior to award of contracts.

Question 19: Questions 108 and 120. The answer to Question 108 states that the discount associated with performance levels has been dropped from section 5.A.2.2. However, the revised section 5.A.2.2 chart set forth in response to Question 120 still makes reference to "bookings at a reduced rate." Please clarify whether the price reductions have in fact been deleted from the contract.

Answer 19: Section 5 of the PWS was revised in Amendment 02, posted on 10 Sep 2008.

Question 20: Delete the first sentence following the table in section 3.G.4.3.1. The sentence is redundant of the language in 3.G.4.1.1, and its presence therefore makes the meaning less clear.

Answer 20: Section 3.G.4 has been rewritten as follows:

3.G.4.

Free Time and Detention

3.G.4.1. The contractor must provide 10 calendar days free time commencing at 0001 hours on the first calendar day after delivery, except as provided below:

Fifteen (15) calendar days free time for all equipment delivered to Saudi Arabia:

Free Time and detention provisions for cargo delivered within exigency areas as described in Section 6.C.1 3.G.4.1.1 Free time/detention will run during any delays caused by the U.S Government.

However, when call-forward or staging is requested by the receiving activity, free-time will run commencing at RDD for the remainder of the requested hold time.

3.G.4.1.2 When free time is exceeded, contractor will be paid at detention rates at 3.G.4.3.1 and for reefer maintenance as stated at 3.G.4.3.1 below.

3.G.4.1.3 Detention shall cease to run at 2359 hours on the day

1)the contractor is notified the container is available for pickup at the carrier’s point of delivery or other mutually agreed location and the container is available when the carrier arrives for pickup, or

2)the container is returned to the contractor, or

3) specified when the contracting officer notifies the carrier in writing that it is purchasing the container under Section 3.G.8 or 3.G.9.

Whichever occurs earlier.

The notification or redelivery must take place before the end of that business day or time shall run until the next day. For delays prior to delivery that start the running of freetime, or detention if freetime has expired, time will cease running at 2359 hours on the day the government provides documents or otherwise cures the situation causing the delay or notifies the contractor to release the shipment from staging. However, in no case will any day that a shipment is intransit inland count as a freeday or detention day when the contractor is responsible for the inland delivery.

3.G.4.1.4 At locations where the Government has automated system capability to report that containers are empty and request their pickup, the dates documented by the system will be the official date/time of notification unless the contractor has been provided earlier written notice from the Government. Contractor personnel will obtain passwords as needed to access these systems.

3.G.4.2 Reserved

3.G.4.3 Calculation of Detention-Related Charges 3.G.4.3.1 Standard Container Detention The following charges and provisions will apply to all equipment accruing detention except for containers booked to locations designated as exigency areas under section 6.C.2.

Daily

Equipment Type

Detention

20 ft Dry

$22

20 ft Flat

$22

20 ft Reefer

$70

40 ft Dry

$35

40 ft Flat

40 ft Open Top

40 ft Reefer

$92

20 ft Chassis

$9

40 ft Chassis

$16

For Government caused delays in the movement or return of containers beyond applicable free time, the Government will pay the carrier the above daily standard container detention charges. Detention charges will continue to accrue until one of the following occurs:

(1) The Government notifies the carrier in writing that the container is available for pickup at the carrier’s point of delivery or other mutually agreed location and the container is available when the carrier arrives for pickup;

(2) The Government returns the container to the carrier at the carrier point of delivery or other mutually agreed location; or

(3) The contracting officer notifies the carrier in writing that it is purchasing the container under Section 3.G.8 or 3.G.9. When purchase is made in accordance with 3.G.8 or 3.G.9, the parties will bilaterally negotiate the purchase price. Purchase under 3.G.8 or 3.G.9 is not intended to permit the Government to make wholesale purchases of containers. The Government will make a determination on a case-by-case basis that the container has been lost, destroyed, or impracticable to return.

When the contracting officer notifies the carrier that the container is available for pickup, returns the container to the carrier, or pursuant to (3) above, notifies the carrier that it is purchasing the container, detention will accrue for that day and stop at 2359 hours of that day. Detention already accrued will not be credited against the purchase price.

Detention is payable for chassis only when the chassis is not used with a carrier container.

Question 21: Page 20 of 60, Section 3.G.4.1.1, Please clarify this provision by revising it to read “Detention shall cease to run at 2400 hours on the day the Contractor is notified the container is available (provided that the container is actually available when the Contractor arrives for pick up), or when the container is returned to the Contractor (whichever is earlier).” This clarification is consistent with 3.G.4.3.1(1).

Answer 21: See revised language Section 3.G.4 identified in Answer 20 above.

Question 22: 3.G.4.1.1 – Free Time

“Exception” paragraph does not make sense. Why would the running of free time be suspended for Government delays? Please change to read: Free Time runs when the Government delays delivery, including call forward and staging.

Answer 22: See revised language Section 3.G.4 identified in Answer 20 above.

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