USC-6 Amendment 07 _3 Nov 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 follow ing sections of the USC-6 Solicitation have been revised as follow s:

1. Rate Rules, Section 2.6, Table 1 has been revised

2. PWS Section 3.A.21.1.1 has been revised to correct a typo

3. PWS Section 3.G.4.3.1 has been revised. The follow ing sentence has been removed “When purchase is made in accordance w ith 3.G.8 or 3.G.9, the parties w ill bilaterally negotiate the purchase price” from paragraph 3.G.4.3.1.

4. PWS Section 3.K.2.4.1 has been revised to remove reference to “seal tracing”

5. Exhibit 2, Section 1.3 has been revised

6. PWS Section 3.E.1.3 has been revised

7. PWS Section 3.H.7 has been revised to remove reference to “seal tracing”

8. Attachment 8 has been revised

1. CONTRACT ID CODE PAGE OF PAGES

J 1 13

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

16C. DATE SIGNED

BY 03-Nov-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 is extended, X 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

03-Nov-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. 07

The following sections of the USC-6 Solicitation have been revised as follows:

1. Rate Rules, Section 2.6, Table 1 has been revised

2. PWS Section 3.A.21.1.1 has been revised to correct a typo

3. PWS Section 3.G.4.3.1 has been revised. The following sentence has been removed “When purchase is made in accordance with 3.G.8 or 3.G.9, the parties will bilaterally negotiate the purchase price” from paragraph 3.G.4.3.1.

4. PWS Section 3.K.2.4.1 has been revised to remove reference to “seal tracing”

5. Exhibit 2, Section 1.3 has been revised

6. PWS Section 3.E.1.3 has been revised

7. PWS Section 3.H.7 has been revised to remove reference to “seal tracing”

8. Attachment 8 has been revised

The following have been deleted:

LIST OF CHANGES AMEND. 06

SECTION SF 1449 - CONTINUATION SHEET

The following have been modified:

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

Port Group Port Members

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):

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.

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

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. The baseline is for a bunker fuel mixture of IFO 380 (95%) and MDO (5%). This baseline will apply to the base year and all option years.

NOTE: Due to the volatility of the bunker fuel market, the Government will continue to monitor bunker prices up to contract award. If market prices indicate a downward trend, the Contracting Officer will recalculate the BAF baseline and request revised pricing prior to contract 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

Table 1. Technical Factors

Route(s) Payable Unit Factor 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, 54F 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, 54D

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 _________________________________________________ 23 3.G.8 Damage to Contractor Equipment ____________________________________________ 24 3.G.9 Theft or Disappearance ____________________________________________________ 24 3.G.10 Port Storage _____________________________________________________________ 24

3.H Accessorials 25 3.H.1 Stopoff Service __________________________________________________________ 25 3.H.2 CONUS Linehaul for Containerized Ammunition Shipments _______________________ 25 3.H.3 Tarping Service __________________________________________________________ 25 3.H.4 Supercargo ______________________________________________________________ 26 3.H.5 Flatrack tie-down equipment surcharge: _______________________________________ 26 3.H.6 Cargo Rinsing Service _____________________________________________________ 26 3.H.7 Railcar Inspection Service __________________________________________________ 26 3.H.8 Reserved _______________________________________________________________ 26 3.H.9 Cargo Handling __________________________________________________________ 26

3.I Breakbulk and RORO Requirements 27 3.I.1 Cargo Lift and Advancement of Cargo ________________________________________ 27 3.I.2 Services During Hazardous Cargo Handling ____________________________________ 27 3.I.3 Cargo Berth _____________________________________________________________ 27 3.I.4 Reimbursement for Damage ________________________________________________ 28 3.I.5 Free-in/Free-out Terms ____________________________________________________ 28 3.I.6 Terms for Loading and Discharging Services ___________________________________ 28 3.I.7 AAFES English Channel Service ____________________________________________ 30

3.J Additional Services 30 3.J.1 Cargo Handling __________________________________________________________ 30 3.J.2 Consolidation and Transfer Services __________________________________________ 30 3.J.3 Services for Special Cargo __________________________________________________ 31

3.K Linehaul for Breakbulk and Out-of-Gauge (OOG) Cargo 31 3.K.1 Flatbed and double drop service _____________________________________________ 31 3.K.2 Carload Service __________________________________________________________ 32

SECTION 4 – SHIPMENTS OF SPECIAL PROGRAM CARGO 34

4.A Shipments by Authorized Agents of the U.S. Government 34 4.A.1 Scope __________________________________________________________________ 34 4.A.2 Booking of Cargo ________________________________________________________ 34 4.A.3 Submission of Status Reports _______________________________________________ 34 4.A.4 Payment ________________________________________________________________ 34 4.A.5 Special provisions for Privately Owned Vehicles (POVs)__________________________ 34

SECTION 5 – MEASURING PERFORMANCE 35

5.A Performance Requirements 35 5.A.1 Performance Measures and Performance Standards ______________________________ 35 5.A.2 Performance Objectives ____________________________________________________ 35

SECTION 6 – OPERATIONS IN EXIGENCY AREAS 37

6. A Declaration of Exigency Area 37

6. B Scope 37

6.C Equipment Management 37 6.C.1 Free Time _______________________________________________________________ 37

TABLE OF CONTENTS

6.C.2 Exigency Area Container Detention __________________________________________ 37 6.C.3 Exigency Area Container Purchases __________________________________________ 38

6.D Security 39 6.D.1 Standard Security _________________________________________________________ 39 6.D.2 Enhanced Security Services _________________________________________________ 39

SECTION 7 – ABBREVIATIONS, DEFINITIONS, ROUTE INDICES 42

7.A Abbreviations/Acronyms 42

7.B Definitions 43

7.C Trade Areas and Zones 48 7.C.1 General Definition of Trade Areas ___________________________________________ 48 7.C.2 Descriptions of Zones _____________________________________________________ 49

7.D Designated Ports with Port Arbitraries 54

SECTION 8 – LIST OF ATTACHMENTS 56

SECTION 1 – BACKGROUND

SECTION 1 – BACKGROUND

1.A History 1.A.1 As a component command of the United States Transportation Command (USTRANSCOM), the Military Surface Deployment and Distribution Command (SDDC) provides ocean terminal, commercial ocean liner and distribution services to deploy, sustain and redeploy U.S. forces on a global basis.

1.A.2 SDDC is responsible for surface transportation (with the exception of ocean charters) and is the interface between Department of Defense (DoD) shippers and the commercial surface transportation industry. This includes movement of DoD member household goods and privately owned vehicles. SDDC also provides transportation for troops and materiel to ports of departure in the U.S. and overseas and manages numerous ports throughout the world.

1.B Purpose

1.B.1 To fulfill its mission of providing global surface deployment command, control and distribution operations to meet National Security objectives in peace and war, it is necessary for SDDC to provide ocean and intermodal distribution services for delivering Defense Transportation System (DTS) cargo anywhere in the world. DTS cargo consists of military equipment and related supplies including supermarket-type commodities shipped by the Defense Commissary Agency, department store merchandise shipped by Army and Air Force Exchange Service, mail shipped by the Military Postal Service, Prime Vendor cargo, General Services Administration (GSA) and personal property including Privately Owned Vehicles (POV) of DoD personnel. DoD is the largest single shipper of cargo by ocean transportation on a worldwide basis. DTS cargo is shipped in substantial, recurring and consistent volumes on many trade routes.

1.C Period of Performance

1.C.1 Base Period The one-year base period of performance for this contract is 1 March 2009 to 28 February 2010.

1.C.2 Option Periods The periods of performance for the option years are 1 March 2010 through 28 February 2011 and 1 March 2011 through 29 February 2012 (Ref: FAR 52.217-9).

SECTION 2 – SCOPE

SECTION 2 – SCOPE

2.A Scope This contract is to provide international cargo transportation and distribution services using ocean common or contract carriers, as defined in the Shipping Act of 1984, offering regularly scheduled commercial liner service for requirements that may arise in any part of the world. Service exempted from the Jones Act is included in the scope of this contract. Contractors shall be capable of providing ocean, intermodal, and related transportation and distribution services to support their offered services as required herein. This contract is primarily for requirements sponsored by the DoD. Other organizations may fill their requirements through this contract only as designated by the Contracting Officer (CO). This contract shall apply to services performed in peacetime and exigency areas as defined herein. This contract is not subject to terms or conditions of Contractors' tariffs except for war risk or as otherwise specified in this contract.

The accepted booking, in conjunction with the terms contained in this contract, constitutes the contract of carriage.

This contract applies to Unit Movement Cargo and Other Than Unit Movement (OTUM) Cargo. Unit Movement Cargo is described by Unit Line Numbers (ULNs) and Plan Identification Numbers (PIDs) in the Joint Operation Planning and Execution System (JOPES) -- whether contingency, exercise or administrative in nature – whether characterized as deployment, redeployment or retrograde cargo.

2.A.1 Excepted Cargo and Routes Excepted cargoes (Breakbulk/RORO and Container) and excepted routes are included in the scope of this contract. Prices for such excepted cargo and excepted routes have not been negotiated at the time of award.

Excepted cargoes and routes shall be competitively ordered using the Ordering Procedure Carrier Selection Fair Opportunity Process in Attachment 2, except Past Performance Evaluation SubFactor for “History of Meeting RDD for the required route” shall not be used if no relevant past performance exists for the specified excepted route. The U.S. Government shall issue a modification to add rates for the movement of excepted type cargo and routes under the changes provision of FAR 52.212-4.

Excepted Cargoes Breakbulk/RORO – Aircraft (unboxed), Helicopters, Boats over 40 ft., Oversized cargo, bulk cargo, heavy lift cargo, and explosives (excluding IMO Class 1.4), except where a specific CLIN has been included for the commodity.

Excepted Cargoes Container – Heavy lift cargo, oversized cargo (with the exception of cargo that meets the definition of over dimensional cargo or super load), explosives (excluding IMO Class 1.4), and all containers other than dry, reefer, ISO tank, open tops and flatrack containers.

Excepted Route – A one-time order for a nonrecurring cargo movement for a route not previously priced or negotiated at time of award.

2.A.2 Additional Services The U.S. Government reserves the right to contract for additional services within the scope of the contract by modification or separate contract, as requirements become known.

2.B Aggregate Government Volume Estimates The estimated cargo volume (the aggregate volume across all awarded contracts) is identified in the Carrier Analysis and Rate Evaluation (CARE II) system.

SECTION 3 – GENERAL REQUIREMENTS

SECTION 3 – GENERAL REQUIREMENTS

3.A General/Administrative

3.A.1 Use of English Language All documentation and verbal notices shall be provided in the English language. If required by local law or regulation, additional language(s) may be used.

3.A.2 Hazardous Cargo

3.A.2.1 Limitations of Contractor’s Obligation

3.A.2.1.1 The U.S. Government shall provide accurate and timely hazardous cargo documentation in accordance with applicable laws and regulations.

3.A.2.1.2 The Contractor may refuse to transport hazardous cargo either by land or by…