USC_6_Amendment 05_20 Oct 08.pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15A. NAME AND TITLE OF SIGNER (Type or print)

30-105-04EXCEPTION TO SF 30

APPROVED BY OIRM 11-84

STANDARD FORM 30 (Rev. 10-83) Prescribed by GSA

FAR (48 CFR) 53.243

The purpose of this amendment is to incorporate changes in response to input from industry and to extend the proposal due date to 10 Nov 2008.

1. Exhibit 2, VISA priority language has been revised to mirror the VISA VEC language

2. RFP, Addendum FAR 52.212-2 VISA priority language has been revised to mirror the VISA VEC language.

3. PWS Section 3.H.8 “All Risk Liability” has been removed.

4. Attachment 6 has been revised to include invoice submission procedures for Defense Base Act Insurance as a “Pass Through Charge”.

5. Attachment 8 has been revised (see highlighted portions).

6. BAF baseline calculation has been revised (see highlighted portions)

7. Proposal due date has been extended to 10 Nov 2008.

1. CONTRACT ID CODE PAGE OF PAGES

J 1 21

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

16C. DATE SIGNED

BY 20-Oct-2008

16B. UNITED STATES OF AMERICA15C. DATE SIGNED15B. CONTRACTOR/OFFEROR

(Signature of Contracting Officer)(Signature of person authorized to sign)

8. NAME AND ADDRESS OF CONTRACTOR (No., Street, County, State and Zip Code) X HTC711-08-R-0011

X 9B. DATED (SEE ITEM 11)

08-Aug-2008

10B. DATED (SEE ITEM 13)

9A. AMENDMENT OF SOLICITATION NO.

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

X The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offer X is extended, is not extended.

Offer must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended by one of the following methods:

(a) By completing Items 8 and 15, and returning copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted;

or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

12. ACCOUNTING AND APPROPRIATION DATA (If required)

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS.

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE

CONTRACT ORDER NO. IN ITEM 10A.

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(B).

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority)

E. IMPORTANT: Contractor is not, is required to sign this document and return copies to the issuing office.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

10A. MOD. OF CONTRACT/ORDER NO.

2. AMENDMENT/MODIFICATION NO. 5. PROJECT NO.(If applicable)

6. ISSUED BY

3. EFFECTIVE DATE

20-Oct-2008

CODE

USTRANSCOM COMMAND ACQUISITION

508 SCOTT DR

SCOTT AFB IL 62265-5357

HTC711 7. ADMINISTERED BY (If other than item 6)

4. REQUISITION/PURCHASE REQ. NO.

CODE

See Item 6

FACILITY CODECODE

EMAIL:TEL:

HTC711-08-R-0011

SECTION SF 30 BLOCK 14 CONTINUATION PAGE

SUMMARY OF CHANGES

SECTION SF 30 - BLOCK 14 CONTINUATION PAGE

The following have been added by full text:

LIST OF CHANGES AMEND. 05

The following sections of the PWS and Attachments have been revised:

1. Exhibit 2 VISA priority language has been revised to mirror the VISA VEC language

2. Addendum FAR 52.212-2 VISA priority language has been revised to mirror the VISA VEC language.

3. PWS Section 3.H.8 “All Risk Liability” has been removed.

4. Attachment 6 has been revised to include invoice submission procedures for Defense Base Act Insurance as a “Pass Through Charge”.

5. Attachment 8 has been revised (see highlighted portions).

6. BAF baseline calculation has been revised (see highlighted portions)

7. Proposal due date has been extended to 10 Nov 2008.

The following have been deleted:

LIST OF CHANGES AMEND. 04

SECTION SF 1449 - CONTINUATION SHEET

SOLICITATION/CONTRACT FORM

The required response date/time has changed from 30-Oct-2008 04:00 PM to 10-Nov-

2008 04:00 PM.

The following have been modified:

ADDENDUM TO FAR 52.212-2

Addendum to FAR 52.212-2 Evaluation – Commercial Items

I. General Evaluation

A. This acquisition is a competitive best value source selection. The Government intends to award multiple contracts to provide Government shippers flexibility of choice and service coverage. Awards will be made to offerors whose proposals are determined technically acceptable and offer fair and reasonable pricing. Past performance will be considered during the responsibility determination in accordance with FAR 9.104-1. Contract awards will be made in accordance with the terms of FAR 52.212-2, “Evaluation – Commercial Items”, FAR Part 15.101-2 (low-price, technically acceptable) source selection procedures and the provisions contained herein. In accordance with DFARS 247.573-2(c) the Government will give a preference to U.S.-flag vessels and to offerors participating in the Voluntary Intermodal Sealift Agreement (VISA).

B. Proposals submitted in response to this Request for Proposal must demonstrate the offeror’s technical capability to provide the services on all route indices for which it offers rates.

C. The Government reserves the right to reject any offer of service on those route indices or route zones (where applicable) where the Government determines that the technical capability to serve the route index or indices as stated in the contractor’s offer is less than the carrier’s service offered commercially.

D. The Government reserves the right to reject any offer in whole or in part that does not comply with the material requirements of this solicitation. Failure to comply with any of the material requirements of this solicitation, including submission of all applicable representations and certifications may be determined to be grounds for the Government to reject offers as technically unacceptable.

E. The Government may accept some or all rates or services initially offered, without discussion of those rates or services. If negotiations are conducted, they may be limited to certain rates or service specifically identified in writing by the contracting officer to the offerors. Thereafter, offers will be notified of the close of negotiations and the opportunity to submit a final proposal revision (FPR).

F. U.S. Flag Service offers will be evaluated for compliance with the Cargo Preference Act of 1904 (10 U.S.C. 2631, as amended.). Evaluation of Voluntary Intermodal Sealift Agreement priorities will be in accordance with paragraph II below.

II. Voluntary Intermodal Sealift Agreement (VISA) Priorities Preference Application

A. Submitted offers that are responsive to this solicitation and that are determined to have the required technical capability will be grouped into the Voluntary Intermodal Sealift Agreement (VISA) participant categories for each trade lane. VISA participant categories are the prioritized order for utilization of commercial sealift capacity to meet Department of Defense requirements. Specifically, the categories of priority of vessel capacity offered to perform these services in order from highest priority to lowest priority are as follows:

A. Submitted offers that are responsive to this solicitation and that are determined to have the required technical capability will be grouped into the Voluntary Intermodal Sealift Agreement (VISA) participant categories for each trade lane. VISA participant categories are the prioritized order for utilization of commercial sealift capacity to meet Department of Defense requirements. IAW DoDI 4500.57, dated March 18 2008, the categories of priority of vessel capacity offered to perform these services in order from highest priority to lowest priority are as follows:

1. U.S.-flag vessel capacity operated by a VISA participant and U.S.-flag VSA capacity of a VISA participant.

1. U.S. Flag vessel capacity operated by a VISA "Participant" that has made a current, minimum commitment of its U.S. Flag vessel capacity to Stages I, II and III of VISA or that has made a current, minimum commitment of its Jones Act capacity (capacity exclusively engaged in the domestic trades) to Stage III of VISA and a current, minimum commitment of the remainder of its U.S. Flag vessel capacity to Stages I, II and III of VISA or, with regard to an offer for a long-term charter to DoD, that has made a current, minimum commitment of its U.S. Flag vessel capacity to Stage III of VISA. The U.S. Flag Vessel Sharing Agreement (VSA) capacity of such a Participant also is grouped in this category of priority.

2. U.S.-flag vessel capacity operated by a VISA non-participant.

2. U.S. Flag vessel capacity operated by a VISA "Participant" that has made a current, minimum commitment of its U.S. Flag vessel capacity to Stage III of VISA and the U.S. Flag Vessel Sharing Agreement (VSA) capacity of such a Participant.

3. Combination U.S.-flag/foreign-flag vessel capacity operated by a VISA participant and combination U.S.-flag/foreign-flag VSA capacity of a VISA participant.

3. U. S. Flag vessel capacity operated by a non-Participant.

4. Combination U.S.-flag/foreign-flag vessel capacity operated by a VISA non-participant.

4. Combination U.S./foreign flag vessel capacity operated by the kind of "Participant" described in paragraph 1 above and the combination U.S./foreign flag VSA capacity of such a Participant.

5. U.S.-owned or -operated foreign-flag vessel capacity and VSA capacity of a VISA participant.

5. Combination U.S./foreign flag vessel capacity operated by the kind of "Participant" described in paragraph 2 above and the combination U.S./foreign flag VSA capacity of such a Participant.

6. U.S.-owned or -operated foreign-flag vessel capacity and VSA capacity of a VISA non-participant.

6. Combination U.S./foreign flag vessel capacity operated by a non-Participant.

7. Foreign-owned or -operated foreign-flag vessel capacity of a VISA non-participant.

7. U.S. owned or operated foreign flag vessel capacity and VSA capacity of the kind of "Participant" described in paragraph II.A.1 above.

8. U.S. owned or operated foreign flag vessel capacity and VSA capacity of the kind of "Participant" described in paragraph II.A.2 above.

9. U.S. owned or operated foreign flag vessel capacity or VSA capacity of a non-Participant.

10. Foreign-owned or operated foreign flag vessel capacity of a non-Participant.

B. Proposals will be ranked by VISA priority. Low price, technically acceptable awards by trade lane (SubCLINS) will first be made to contractors having the highest VISA priority and proceed to contractors with a lower VISA priority only after the higher priority has been exhausted. The process will continue in this manner until all contract awards are made to ensure the Government’s anticipated transportation requirements can be met.

III. Basis for Award

A. The basis for award will be Low Priced, Technically Acceptable Offers after giving preference to VISA participants as described . Factor 1, Technical Capability, will be evaluated on a pass/fail basis. Factor 2, Price, will be evaluated for fairness and reasonableness. Awards will be made to the proposals determined to be technically acceptable, from a responsible offeror, and with the lowest proposed prices in rank order after appling the VISA preference in paragraph II.

IV. Evaluation Criteria

1. FACTOR – Technical Capability

(a) Determination of technical capability will be based on the evaluation of data submitted by each offeror with their proposal that demonstrates the offeror's ability to successfully accomplish all contract requirements applicable to the routes for which service is offered.

SUBFACTORS

(i) Port Coverage: Proposals will be evaluated to determine if the offeror has access to all ports for the routes/lanes they are proposing rates on.

(ii) EDI Capability: Proposals will be evaluated to determine the offeror's capability to provide all the required EDI transactions/event reports as described in the solicitation, to include the optional events for EDI 315 status reports meet the requirements in the PWS.

2. FACTOR – Price

(a) Contract Price Evaluation – Price evaluation for all proposed rates will be performed in accordance with FAR 15.404-1, utilizing the rates the offeror has inserted into the Carrier Analysis Rate Evaluation System Service Module (CARES II SM).

(b) Applicable to Ocean Rates – In addition to evaluation under FAR, Part 15, U.S. Flag Service offers will be evaluated for compliance with the Cargo Preference Act of 1904 (10 U.S.C. 2631, as amended). A rate will not be considered for award should the Contracting Officer (CO) determine that the rate exceeds charges to private persons for carriage of like goods, pursuant to the Cargo Preference Act of 1904 (or other law or regulation).

(c) The Contracting Officer will not consider an offer to be fair and reasonable, if it contains rates higher than the highest commercial service contract rate; or that are clearly and substantially in excess of the rates stated in comparable commercial service contracts to which the offeror is party, for the same trades and similar services.

3. SUBCONTRACTING PLAN

(a) Subcontracting Plans will be submitted IAW FAR 19.407 and will evaluated “go/no go”.

The following Table is USTRANSCOM/TCAQ small business goals for FY09 and is included for informational purposes only. It is not intended to be used as a listing of mandatory goals.

PRIME CONTRACTS

Small Business 8.53% HUBZone SB 1.43%

SDB 2.31%

WOSB 2.75%

Svc Disabled VOSB 1.76%

HBCU/MI 0.06%

SUBCONTRACTS

Small Business 28.00% HUBZone SB 1.60%

SDB 2.50%

WOSB 2.50%

Svc-Disabled VOSB 1.40%

(End of Addendum)

RATE RULES AND PROVISIONS

1 Rate Rules

1.1 Application of Ocean Freight Rates--Containers

All rates included herein are based on Liner Terms and include all costs for normal services from gate to gate.

Except as otherwise provided, all basic ocean freight rates are stated in U.S. dollars and cents per manifested type/size container and apply between Contractor’s terminal at the loading port and the Contractor’s terminal at the discharge port. Basic ocean freight rates shall be applicable to all categories of cargo except as specified below.

1.1.1 Equipment Charges

1.1.1.1 Cargo shipped in flatrack containers shall be freighted at the General Cargo container rate. In addition, the Contractor’s lumpsum flatrack surcharge shall be added to the total for this cargo. The flatrack surcharge applies by route, size of container, and direction of movement. Direction is outbound, inbound, or interport as described in Carrier Analysis and Rate Evaluation System (CARES II). For outbound identified routes, the first geographic area is the origin. For inbound identified routes, the first geographic area is the destination. Rates for Interport identified routes are the same in all directions. For cargo moving under single factor rates, the flatrack surcharge applicable to the specific route, size and direction is applicable and is in addition to the single factor rate. For shipments that include a port arbitrary, the route used to pay ocean freight shall be used to determine the flatrack surcharge.

This provision is not applicable to excepted commodities.

1.1.1.2 Movement of Empty, U.S. Government-Owned or Leased Containers The basic rate for empty, U.S. Government furnished containers accepted on a space available basis shall be fifty percent (50%) of the general cargo container rate that would apply for the size container. The general cargo container rate shall apply for shipments of two or more collapsed flatrack containers shipped together.

1.1.1.2.1 The Contractor’s charges for drayage or inland linehaul of empty U.S. Government containers shall be the same as the Contractor rates contained in the Schedule of Rates (CARES II).

1.1.1.2.2 Accessorial services provided by the contractor, in connection with service provided to U.S. Government containers, shall be at the rates contained in the Schedule of Rates (CARES II)

1.1.1.3 Hazardous Cargo On-Deck Surcharge

The lumpsum surcharge shall only apply, per container, to hazardous cargo requiring on-deck stowage per Coast Guard Regulations. The surcharge shall be in addition to the general cargo container rate. This charge does not apply to excepted commodities.

1.1.1.4 Small Arms Ammunition

Small Arms Ammunition (International Marine Organization (IMO) Class 1.4) is moved at the same rate as general cargo plus a surcharge of $1,000 per container or, for breakbulk shipments, $50 per measurement ton.

1.1.1.5 Twenty-Foot Container Formula

For routes where 20-foot rates are not specifically solicited, 20-foot container ocean rates shall be calculated at 75% of the applicable 40-foot-and-over dry or reefer rates and rounded to the nearest dollar. This formula is not applicable to single factor rates or linehaul rates.

1.1.1.5.1 Twenty-Foot Linehaul/Drayage Formula

Rates for drayage or inland service for 20 foot containers may be applied at 85% of the 40 foot drayage, inland, or mileage rate unless a rate for the linehaul is specifically provided.

1.1.1.6 Forty-Five Foot Containers

A surcharge of 12.5% of the basic rate for a 40-foot container shall be applied for use of any 45-foot (or greater) container.

1.1.1.7 High-Cube Containers

A container (dry or reefer) in excess of 8’6” in height shall be paid at the same rate as an 8’6” container.

1.1.1.8 Open-Top Containers

Contractor shall be paid a surcharge of $300.00 for the use of Contractor-provided, open-top containers.

1.1.1.9 Commingling of U.S. Government Less-than-Container load and Commercial Cargo Government cargo commingled with commercial cargo shall be freighted in accordance with the following formula:

Contractor’s basic ocean rate for a 40’ container divided by 59 multiplied by manifested cargo measurement tons; a 20’ container is divided by 29 multiplied by manifested cargo measurement tons.

1.1.1.10 Bulk liquid commodities containerized in U.S. Government owned or leased 20-ft. Tank Containers.

1.1.1.10.1 The U.S. Government shall pay for bulk liquid containerized service at the rates for each overland linehaul segment; the ocean segment shall be paid at the Contractor’s 20-foot general cargo dry container rate, plus a surcharge of $500.00 for each loaded tank container or empty tank container that is not cleaned, sealed and certified.

Clean and empty tank containers shall be paid at the Contractor’s 20-foot general cargo dry container rate, without the surcharge for the ocean segment.

1.1.1.10.2 Contractor-provided tank container service is described in Section 3.A.19.2 of the PWS .

1.1.1.11 Ocean and single factor rates shall be in whole dollars. Any calculated rate shall be rounded to the nearest whole dollar.

1.1.2 Application of Drayage and Inland 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. Drayage and inland rates apply for tank opentop and flatrack containers unless specifically provided herein. Mileage rates shall be calculated to dollars and cents.

1.1.2.1 Inland Rate Application

1.1.2.1.1 Linehaul and drayage rates apply to points specifically named and to other points, places, ports, and cities as described in Attachment 4. Additional points can be added to Attachment 4 that are within the Commercial Zone of the named point as described by the 49 CFR Ch. III Part 372. for points in the U.S. or points within 10 miles radius of the city limits of foreign cities. Other points may be added upon mutual agreement by U.S. Government and Contractor.

1.1.2.1.1.1 As an exception to the application of the linhaul rates, service to points identifies as "Via Inland Customs" include delivery to a specified customs clearance facility, and after customs clearance is completed, delivery to destination.

1.1.2.1.2 In the absence of specific container linehaul rates between points , inland charges are computed using mileage band rates, multiplied by the one-way mileage. Mileage rates apply by container size. Rates for mileage bands under 51 miles are per container.

1.1.2.1.2.1 Mileage rates apply between points and ports in the country named in the rate table, except,

1.1.2.1.2.1.1 The U.S. mileage rate table shall also apply from/to points in Canada and include ports in the U.S. and Canada. U.S mileage rates apply to CONUS and Canada, not Alaska.

1.1.2.1.2.1.2 European Mileage rates apply between ports and points in Germany, Belgium, Luxembourg, Italy, and the Netherlands.

1.1.2.1.3 Application of Breakbulk and out-of-gauge container linehaul for shipments to and from Afghanistan via ports in Pakistan.

1.1.2.1.3.1 Container linehaul rates shall apply to out-of-gauge flatracks as an exception to 1.1.3.7.

1.1.2.1.3.2 Breakbulk cargoes:

1.1.2.1.3.2.1 The under-40' container linehaul rate applies to pieces of cargo less than 20' in length.

1.1.2.1.3.2.2 The 40'-and-over container linehaul rate applies to pieces of cargo 20' or over..

1.1.2.1.3.2.3 The Contractor shall be paid for service actually provided for multiple pieces where more than one breakbulk piece can be loaded to a conveyance as follows:

1.1.2.1.3.2.3.1 Apply the under 40' container rate to each conveyance with pieces totaling less than 20' in length.

1.1.2.1.3.2.3.2 Apply the 40' and over container rate to each conveyance with pieces totaling 20' or more in length.

1.1.2.1.3.2.3.3 The breakbulk linehaul rates and terms shall apply for breakbulk cargo if a Contractor offers both container and breakbulk linehaul rates.

1.1.2.1.3.3 Port transload. The Contractor shall be paid the transload surcharge for Karachi to transfer cargo from flatrack to truck and to flatrack from truck at rates in Schedule of Rates Table 6 located in CARE II.

1.1.2.1.3.4 Overheight shipments: The Contractor shall be paid an additional charge per conveyance for out-of-gauge cargos that exceed 10 feet in height, but that do not exceed 12 feet in height. Applies to container and breakbulk shipments in both directions (to and from port).

1.1.2.1.3.5 Super Load Shipments. Rates for super load shall apply to cargo that exceeds 144 inches high but not 156 inches high or exceeds 132 inches wide but does not exceed 144 inches wide, or both. The charge shall apply per conveyance at rates in Schedule of Rates Table 3 located in CARE II. Applies to container and breakbulk shipments.

1.1.2.1.4 Inland Service by Ferry or by Barge-Ship Systems.

Inland rates shall apply to inland service provided by commercial ferry or by commercial barge ship systems in the following instances:

1.1.2.1.4.1 Between ports in the United Kingdom and ports in Ireland.

1.1.2.1.4.2 Between ports on the mainland of Italy and ports of Sicily and Sardinia.

1.1.2.1.4.3 Between ports in mainland Greece and ports in Crete.

1.1.2.1.4.4 Between ports in Japan and Misawa, Iwakuni, Sasebo Japan

1.1.2.1.5 Grouping of Certain Ports, Cities, and Places

1.1.2.1.5.1 In order to avoid proliferation of rates, certain ports and inland points have been grouped together as described in Attachment 4, City Groupings.

1.1.2.1.5.2 The ports listed below have been grouped. For routings via below listed ports, CARE II SM shall only accept routings that use the port group for drayage, linehaul, and single factor rates.

Port Group Port Members

CONUS

Galveston Bay Galveston, Houston Los Angeles Los Angeles, Long Beach, San Pedro, Wilmington, Terminal Island

Miami Miami, Port Everglades, Fort Lauderdale

New York New York, Bayonne, Newark, Elizabeth, Howlan Hook- Kearney

Norfolk Norfolk, Newport News, Portsmouth ,Virginia Beach Chesapeake

Philadelphia Philadelphia, Pennsauken Puget Sound Bremerton, Seattle, Tacoma San Francisco Bay Area San Francisco, Oakland, Richmond, Mare Island, Alameda

OCONUS

Calcutta/Kolkata Calcutta,/Kolkata Haldia Dammam Dharan, Dammam Karachi Karachi, Port Qasim Maputo Maputo, Lourenco Marques Muscat Muscat, Mina Qaboos Naha Naha, Aja Naples Naples, Salerno Thamesport Thamesport, Isle of Grain Jebel Ali Dubai, Jebel Ali

1.1.3 Over dimensional Cargo

1.1.3.1 Selection of the equipment used for ocean transportation shall not result in overlength dimensions when the cargo is loaded on the container unless the Contractor and the U.S. Government mutually agree to this at the time of cargo booking. For example, cargo 24 feet in length shall be loaded on a 40-foot flatrack, not a 20-foot flatrack.

1.1.3.2 Charges for over dimensional or super load cargo stowed on a vessel in containers shall equal the additional ocean rate for equivalent displaced standard dry container(s) by size in accordance with the following formula (which includes use of a flatrack container):

In gauge: BOF (Basic ocean freight) +FRS (Flat rack surcharge) TP (Total price)

Over height: BOF+(BOF x 65%)

+FRS

TP

Over width: B OF+((BOFx2) x 65%)

+FRS

TP

Over height and Overwidth BOF+((BOFx5) x 65%)

+FRS

TP

NOTE: The blocks in the above examples depict the displaced cells based on shipments being overheight, overwidth, or both overheight and overwidth. The black block is the loaded flatrack and the gray blocks are the displaced cells.

1.1.3.2.1 In-gauge cargo is defined as less than or equal to 456 inches long, 96 inches wide, and 77 inches high for a 40-foot flatrack.

1.1.3.2.2 For a 20-foot flatrack, in-gauge cargo is defined as less than or equal to 216 inches long, 96 inches wide, and 87 inches in height.

1.1.3.2.3 Cargo exceeding 90 inches in height shall be considered overheight for open tops.

1.1.3.2.4 A 35% discount off the basic ocean freight rate shall be applied for displaced slots in any configuration.

1.1.3.3 If other than flatracks are used to ship over dimensional cargo, the flatrack surcharge shall not be applied to the formula. If open top containers are used, the open top surcharge shall apply.

1.1.3.4 Flatrack surcharges shall not apply to U.S. Government-owned flatracks in the rate computation for over dimensional cargo.

1.1.3.5 Displaced slots for which charges are assessed shall be counted toward the minimum cargo guarantee.

1.1.3.6 Cargo that cannot be loaded on or in an intermodal container (closed, open top, flatrack) prior to stevedoring is not covered by this formula.

1.1.3.7 The over dimensional formula is limited to port-to-port terms only. Basic ocean freight (BOF) is the General Cargo Ocean Container Rate from the Table of Rates.

1.1.3.8 This formula can be applied to cargo exceeding either the weight and/or the dimensions defining over dimensional cargo when the U.S. Government and the Contractor mutually agree to do so at the time of cargo booking.

1.1.4 Single Factor Rates

1.1.4.1 These rates include all considerations except for Currency Adjustment Factor (CAF), Bunker Adjustment Factor (BAF), War Risk Insurance, and other accessorials ordered in the booking. Single factor rates can apply to point-to-point, point-to-port, or port-to-point movements. Ingauge cargoes on flatracks can move at the single factor rate subject to the flatrack surcharge for the route.

1.1.4.2 Single factor rates apply from specified origin to specified destination via the ports specified in the single factor rate. Contractors shall designate the port of loading and port of discharge for each single factor rate. Bookings shall be made using the combination of ports designated by Contractors.

1.1.4.3 Contractors may change the ports to be used for a Single Factor Rate or add new port combinations to an existing Single Factor requirement by notifying the Contracting Officer. Any change in price shall require approval by the Contracting Officer.

1.1.5 Cargo Handling (Stuffing, Unstuffing, and Transloading)

Cargo Handling. When this service is ordered by the U.S. Government, Contractors shall be paid for each manifest MsT for providing cargo handling services at Contractor-designated facilities. The rates apply for the commodities and locations specified in the rate without regard to size container. Cargo handling and transloading rates are for the place named in the rate and apply for both import and export services.

1.2 Application of Ocean Freight Rates—Breakbulk/RORO

All rates included herein are based on Free-In, Free-Out (FIO) terms and include all costs for normal service from port to port. Basic ocean freight rates shall be applicable, to the commodity categories as specified below:

General Cargo U.S. Government Owned/Leased Dry Containers

Light Vehicles Helicopters Heavy Vehicles

1.2.1 Rates shall be priced based on measurement ton. Rates shall be applied based on MsT, defined as either 40 cubic feet per ton or 2,240 lbs. (long ton), whichever shall generate the highest revenue. U.S. Government owned/leased dry containers should be rated per container size. Only General Cargo shall be rated on a weight or cube basis.

1.2.2 When liner service is required for breakbulk shipments at the load port, discharge port or at both ports, the applicable liner term rate(s) in the Table of Accessorials shall be added to the FIO ocean rate for the ports where liner service is ordered.

1.2.3 Extra length charge: For each additional 10 feet or fraction thereof in excess of 45 feet, the extra length charge shall be added to the ocean rate to calculate the total ocean freight.

1.2.4 Hazardous Cargo Surcharge: This surcharge applies to hazardous cargo requiring on-deck stowage by Coast Guard regulations and is expressed as a rate per MsT to be added to the commodity rate for the ocean transportation.

1.2.5 In accordance with booking terms, when the U.S. Government requests the Contractor to provide loading and/or discharging service for self-propelled wheeled or tracked vehicles, and the vehicle(s) are delivered in an undriveable condition or become inoperable prior to loading or discharge, the U.S. Government shall be liable for the extra handling, such as towing, or pushing cargo incurred by the Contractor at a rate of $75.00 per vehicle at origin, if applicable, and/or $75.00 at destination, if applicable, maximum not to exceed $150.00 per vehicle. The Contractor shall certify that the vehicle is inoperable, stating the TCN and/or vehicle serial number, vessel name and voyage number, sailing date and port of loading/destination. These charges are exclusive of cargo handling for loading/unloading to/from trailer/lowboy or other equipment for movement of normal breakbulk cargo or unit moves.

1.2.6 When ocean service is ordered to a port subject to the Port Arbitrary, the Port Arbitrary rate in the Table of Accessorials applicable to the specific port is added to the FIO ocean rate for the trade route used to deliver cargo to the intermediate port for transshipment to the arbitrary port. The Port Arbitrary surcharge includes costs to load or discharge feeder vessels at intermediate ports. Service at the arbitrary port is FIO unless liner service is ordered.

1.2.7 Vessel Demurrage: Contractor shall be compensated for berthing delays caused by the U.S. Government (See PWS paragraph 3.I.3.3) based on demurrage rates (per vessel day) in the Schedule of Rates Table 6C. Charges are prorated for the actual period of delay.

1.2.8 Linehaul for Breakbulk and RORO cargo

1.2.8.1 For breakbulk shipments requiring inland movement, linehaul rates apply to points specifically named and to other points, places, ports, and cities as described in Attachment 4.

1.2.8.2 In the absence of specific linehaul rates between points within CONUS, inland charges are computed using mileage band rates, multiplied by the one-way mileage. For mileage less that 51, the rates are per conveyance.

1.2.8.3 Mileage rates apply between ports and points in the named country, except that the U.S. mileage rate table shall also apply from/to points in Canada and include ports in the U.S. and Canada and the Northern European Mileage rates apply between ports and points in Germany, Belgium, Luxembourg, Italy, and the Netherlands.

1.3 Application of Ocean Rates—Container and Breakbulk

1.3.1 Port Arbitraries: A surcharge is applicable for selected ports designated by the U.S. Government. The port arbitrary shall be in addition to the applicable ocean rate.

1.3.1.1 Port Arbitraries apply to all directions of movement.

1.3.1.2 Port Arbitraries do not apply to single factor rates.

1.3.1.3 PWS Section 7, paragraph E, identifies the ports for which port arbitraries may be established for this contract. The surcharge shall be listed in the Schedule of Rates Table 6, Accessorial Rates.

1.3.1.4 Each Port Arbitrary, as specified in the Schedule of Rates Table 6, names a port or zone over which the port arbitrary applies,. The applicable ocean rate is the rate to /from this port or zone.

1.3.1.5 Port Arbitraties do not apply to:

Scandinavia, Baltic - Continental Europe, United Kingdon, Ireland, Kuwait - Iraq, Kuwait - Djibouti or other routes where the ports subject to port arbitraties are named in the ocean route (Section 7.E)

1.3.2 Mileage Source.

1.3.2.1 The Defense Table of Official Distances (DTOD) is the official source of distances for payment of rates based on mileage and for calculation of standards based on overland distance. Contractor shall be paid in accordance with the version of DTOD used by IBS at the time of the booking. The U.S. Government shall provide notification of changes in the version of DTOD used.

1.3.2.1.1 A commercial product that is DTOD-compliant is “PC*Miler” that shall produce distance calculations identical to DTOD. Contractors who have PC*Miler shall be provided a file of the official mileages to be used by IBS for all point to port and port to point combinations using mileage based rates. Contractors should ensure that they have the same version of PC*Miler as used in IBS. Contractors who elect to use another source for computing mileages cannot be provided this file. Should there be any differences in the mileages computed by DTOD and the mileage invoiced by the Contractor, the Contractor shall be paid based on the DTOD mileages.

2. Bunker Adjustment Factor (BAF)

2.1 Allowance

An allowance for fluctuations in marine fuel prices shall be paid to the Contractors or to the U.S. Government in accordance with the following:

The allowance shall be paid per freight payable unit of cargo. For containerized goods these units are 20-foot and 40-foot containers. For breakbulk cargo, they are measurement tons.

The Bunker Adjustment Factor is zero unless the one-month average fuel price is at least 20% higher or 20% lower (inclusive) than the baseline average fuel price. No bunker adjustment is payable on the routes not included in Table 1 below.

The compensation per freight payable unit shall be calculated as follows:

[(Monthly Avg fuel price of MDO x 5% + Monthly Avg fuel price IFO 380 x 95% - Baseline fuel price) x BAF Technical Factor] / 6.50 (Conversation factor, metric tons to barrels)

2.2 Baseline Fuel Price

The baseline is $ 500.00 for Norfolk and $ 500.00 for Los Angeles. This baseline will apply to the base year and any option years the Government exercises.

NOTE: Due to the volatility of bunker fuel prices, the Government will continue to monitor them prior to contract award. If the bunker fuel mixture price falls 15% below the baselines stated above (based on a monthly average of the three (3) months immediately prior to the month of the anticipated award date), the Government will recalculate the baseline using the average montly price for the immediate three (3) months prior to the month of the anticipated award date. The Government will request revised pricing from the Contractor prior to award if the baselines are recalulated prior to award.

2.3 Calculations

2.3.1 BAF shall be calculated using Norfolk (ex-wharf) prices except for routes below that shall use Los Angeles (ex-wharf) prices:

USWC to Far East Hawaii - Far East Hawaii - Kwajalein USWC - Oceania USWC - Middle East

2.3.2 An average fuel price shall be computed by SDDC for Los Angeles and Norfolk. This average price shall be calculated on or after the first of the month for the prior month and shall apply to shipments booked for sailings in the next month. The monthly computation of adjusted average fuel prices will be posted to the SDDC website no later than the 10th of the month prior to the month in which it will be applied. Example: The average fuel prices for calculation of BAF charges for March shall be based on bunker prices for the month of January.

2.3.2.1 The scheduled month the vessel departs the load port at the time of booking shall determine the month for calculation of BAF charges.

2.3.3 The source for bunker prices is Bunkerworld; http://www.bunkerworld.com/, which calculates bunker average monthly prices by port and fuel type These prices are quoted in metric tons and shall be converted to barrels by dividing by 6.50. The IFO 380 and MDO average quotes shall then be averaged to calculate the monthly average fuel prices for Norfolk and Los Angeles.

Conversion Factors for fuel types identified above are per DESC FY 07 standard fuel conversions

Fuel Type BBLS per MT

IFO 380 6.467

MDO 7.162

2.3.4 SDDC shall monitor,calculate and post BAF to the SDDC website.

2.4 Payment procedures.

2.4.1 For shipments paid using PowerTrack/U.S. Bank, the BAF shall be fixed at the time of booking and shall be based on the date the booked vessel is scheduled to sail. When BAF is payable, shippers shall include the applicable BAF amount (plus or minus) to all shipments paid to the Contractor via their own documentation and payment system at the time that the original transactions are sent to PowerTrack. Contractors using the PowerTrack invoice procedure shall include the applicable BAF amount (plus or minus) in their invoice.

2.4.2 For all shipments other than those paid using PowerTrack/U.S. Bank, Contractors are responsible for indicating on their shipment invoice whether a fuel payment is due them, whether no fuel payment is to be made or whether a fuel payment is due SDDC. If a fuel payment is due the Contractor or SDDC, the Contractor shall compute the value of the payment (or credit) and indicate this on the shipment invoice. If there is no fuel payment, the Contractor shall indicate on the invoice “No Fuel Adjustment”. BAF for authorized agent shipments shall be paid using this process.

2.5 Application

The bunker fuel adjustment applies to fuel purchased by the Contractor from normal commercial suppliers and does not apply when bunker fuel has been provided or subsidized by the U.S. Government or foreign Governments.

2.6 Technical Factors and Freight Payable Units

The technical factors and their freight payable units are shown in Table 1.

Table 1. Technical Factors

Route(s) Payable Unit Factor 01 20-foot container

40-foot container MsT

4.35 7.25 0.17

05 20-foot container 40-foot container MsT

2.88 4.80 0.11

02 Continental Europe/UK—Middle East and 06A USEC—West Med

20-foot container 40-foot container MsT

5.55 9.25 0.21

47 – USWC to Middle East

20-foot container 40-foot container MsT

9.90 16.49 0.38

61 Guam-Korea, 61 Guam-Okinawa, 61 Guam-Manila, 20-foot container 40-foot container MsT

2.1 3.5 0.08

61 Guam Japan, 39 and 43 79 Hawaii - Kwajalein, 61 Guam-Singapore

20-foot container 40-foot container MsT

4.2 7.0 0.16

61 Guam-Thailand and 32, West Coast to Kwajalein, 06B, 06C, 10, 11, 20-foot container 40-foot container MsT

6.3 10.5 0.24

12A, 16 (Hawaii – Far East), and 55 7, 12B, 12 C, 13, 54

20-foot container 40-foot container MsT

8.4 14.0 0.32

2.7 For the base year, BAF will be applicable only on those routes listed in the table above. USTRANSCOM will commission an effort to develop a BAF methodology encompassing all routes. Upon receiving a BAF methodology from the commissioned entity that is acceptable to the U.S. Government, the Contracting Officer shall incorporate it into the Contract via unilateral modification. The modification incorporating the new BAF methodology shall be completed prior to the date CARE II is opened for Contractors to submit rates for the option year.

3 Currency Adjustment Factor (CAF)

3.1 Allowance

CAF only applies to the ocean portion of the transportation and is intended to offset the local currency exchange rate fluctuations for terminal services. An allowance for fluctuations in foreign currency exchange rates shall be paid to Contractors or to SDDC for the routes shown in Table 2 below. The allowance shall be paid per freight payable unit of cargo. For containerized goods, these units are 20-foot and 40-foot containers. For breakbulk cargo, they are measurement tons.

3.2 Calculation

3.2.1 The compensation per freight payable unit shall be derived by calculating the difference between the one--month average exchange rate and the baseline exchange rate (subtract the baseline exchange rate from the one--month average exchange rate) , dividing this difference by the baseline exchange rate, the multiplying by the basic ocean freight times the technical factor. The technical factor is 0.15 all routes, Note that the General Section basic ocean freight is used to calculate CAF for all shipments eligible for CAF. The basic ocean freight does not include BAF in the calculation of CAF. Exchange rates are expressed as foreign currency per dollar.

3.2.2 The Currency Adjustment Factor is zero unless the one-month average exchange rate is at least 10% higher or 10% lower (inclusive) than the baseline average currency exchange rate. No CAF is payable on routes/countries not included in Table 2 below.

3.2.3 Base rates and differentials in currency exchange rates shall be computed for the currencies shown in Table

2. The applicable currency for payment shall be determined by the foreign port of discharge or load.

3.2.4 The source for exchange rates is XE.com. The base rate is the exchange rate published on the Monday which immediately precedes the date proposals are due for base or option periods.

3.2.5 A one-month average exchange rate shall be computed by SDDC for the Euro, Yen, Pound, and Won.

This average price shall be calculated on or after the first day of the month for the prior calendar month and shall apply to shipments booked for sailings in the following month. Example: The average exchange rates for calculation of CAF charges for March shall be calculated on or after February 01 and shall be based on exchange rates for January.

3.2.6 USTRANSCOM will commission an effort to develop a CAF methodology. Upon receiving a CAF methodology from the commissioned entity that is acceptable to the U.S. Government, the Contracting Officer shall incorporate it into the Contract via unilateral modification. The modification incorporating the new CAF methodology shall be completed prior to the date CARE II is opened for Contractors to submit rates for the option year.

3.3 Payment

3.3.1 For shipments paid using PowerTrack/U.S. Bank: The CAF shall be fixed at the time of booking and shall be based on the date the booked vessel is scheduled to depart. When CAF is payable, shippers shall include the applicable CAF amount (plus or minus) to all shipments paid to the Contractor via their own documentation and payment system at the time that the original transactions are sent to PowerTrack. Contractors using the PowerTrack invoice procedure shall include the applicable CAF amount (plus or minus) in their invoice.

3.3.2 For all shipments other than those paid using PowerTrack/U.S. Bank, Contractors are responsible for indicating on their shipment invoice whether a currency adjustment payment is due them, whether no currency adjustment payment is to be made or whether a currency adjustment payment is due SDDC. If a currency adjustment payment is due the Contractor or SDDC, the Contractor shall compute the value of the payment (or credit) and indicate this on the shipment invoice. If there is no currency adjustment payment, the Contractor shall indicate on the invoice “No Currency Adjustment Payment”. CAF for authorized agent shipments shall be paid using this process.

Table 2. Routes and Currencies

Route Country Currency

01 Japan (includes Okinawa) Yen

01 S. Korea Won

05 and 11 United Kingdom Pound

05 and 11 Germany, Belgium, Netherlands Euro

06 and 12 Spain, Italy Euro

4. Fuel Adjustment Factor (FAF) No FAF will be payable for inland transportation during the Base Year of the contract. Prior to the 1st option period, USTRANSCOM will commission an independent study to develop a FAF methodology encompassing all CONUS and OCONUS inland routes. Upon receiving a FAF methodology from the commissioned entity that is acceptable to the U.S. Government, the Contracting Officer shall incorporate it into the Contract via unilateral modification.

The modification incorporating the new FAF methodology shall be completed prior to the date CARE II is opened for Contractors to submit rates for the option year.

5. Regulatory Compliance The Contractor shall comply with regulations of the Federal Maritime Commission and the Surface Transportation Board, Department of Transportation and/or other U.S. Governmental organizations, including local regulations at origin, destination and in-transit as may be applicable for service to the U.S. Government in carriage of cargo as set forth in this contract.

(End - Rate Rules and Provisions)

(End of Summary of Changes)

USC-6, Performance Work Statement

TABLE OF CONTENTS

SECTION 1 – BACKGROUND 4

1.A History 4

1.B Purpose 4

1.C Period of Performance 4 1.C.1 Base Period ______________________________________________________________ 4 1.C.2 Option Periods ____________________________________________________________ 4

SECTION 2 – SCOPE 5

2.A Scope 5 2.A.1 Excepted Cargo and Routes __________________________________________________ 5 2.A.2 Additional Services ________________________________________________________ 5

2.B Aggregate Government Volume Estimates 5

SECTION 3 – GENERAL REQUIREMENTS 6

3.A General/Administrative 6 3.A.1 Use of English Language ____________________________________________________ 6 3.A.2 Hazardous Cargo __________________________________________________________ 6 3.A.3 Quality Control, Reporting, and Records _______________________________________ 6 3.A.4 Invoicing and Payment _____________________________________________________ 7 3.A.5 Responsibility for Charges and Taxes __________________________________________ 7 3.A.6 Space Commitment ________________________________________________________ 7 3.A.7 Schedule Maintenance ______________________________________________________ 8 3.A.8 Permanent Service Changes _________________________________________________ 8 3.A.9 Customer Service Assistance _________________________________________________ 8 3.A.10 Electronic Commerce / Electronic Data Interchange (EDI) _________________________ 8 3.A.11 Vessel Cutoffs, Late Gates, and Expedited Linehaul ______________________________ 10 3.A.12 Required Delivery Date (RDD) ______________________________________________ 10 3.A.13 Less-Than-Container-Load (LCL) Container Services ____________________________ 10 3.A.14 Equipment ______________________________________________________________ 10 3.A.15 Chassis Requirements _____________________________________________________ 11 3.A.16 Equipment Pools (container only) ____________________________________________ 11 3.A.17 U.S. Government Furnished Containers (GFC) __________________________________ 11 3.A.18 Flatrack Containers _______________________________________________________ 11 3.A.19 Bulk Liquids ____________________________________________________________ 12 3.A.20 Manual Operational Reports ________________________________________________ 12 3.A.21 Daily Intransit Visibility (ITV) Reports _______________________________________ 12

3.B Shipment Planning and Booking 13 3.B.1 Shipment Booking and Scheduling ___________________________________________ 13

3.C Origin Services (container only) 14 3.C.1 Providing Empty Containers to Shippers _______________________________________ 14

3.D Ocean Transportation 15 3.D.1 Cargo Lift and Advancement ________________________________________________ 15

3.E Customs Clearance 15 3.E.1 Responsibilities __________________________________________________________ 15

3.F Destination Services 17 3.F.1 Delivery Notification and Receipt ____________________________________________ 17 3.F.2 Expedited Delivery _______________________________________________________ 17 3.F.3 Specified Day Delivery ____________________________________________________ 18

3.G Exceptions to Normal Service 18 3.G.1 Alternate Service _________________________________________________________ 18

TABLE OF CONTENTS

3.G.2 Recurring Service Failure __________________________________________________ 18 3.G.3 Canceled Shipments/No Shows ______________________________________________ 19 3.G.4. Free Time and Detention ___________________________________________________ 19 3.G.5 Rerouting of Containers ____________________________________________________ 22 3.G.6 Staging (container only) ___________________________________________________ 23 3.G.7 Notice of Transfer of Cargo…