USC-6 Draft RFP Document - 26 Jun 08.doc

Section SF 1449 - CONTINUATION SHEET

Base Year (1 Mar 09 - 28 Feb 10)

FFP

Rates are contained in the CARE II (Carrier Analysis and Rate Evaluation System)

FOB: Destination

SIGNAL CODE: A

MAX

NET AMT

FFP

Rates are contained in the CARE II (Carrier Analysis and Rate Evaluation System)

MAX

FFP

Rates are contained in the CARE II (Carrier Analysis and Rate Evaluation System)

MAX

INSPECTION AND ACCEPTANCE TERMS

Supplies/services will be inspected/accepted at:

MINIMUM GUARANTEE

CONTRACT MINIMUM/MAXIMUM QUANTITY AND CONTRACT VALUE

The minimum quantity and contract value for all orders issued against this contract shall not be less than the minimum quantity and contract value stated in the following table. The maximum quantity and contract value for all orders issued against this contract shall not exceed the maximum quantity and contract value stated in the following table.

MINIMUM MINIMUM MAXIMUM MAXIMUM

QUANTITY AMOUNT QUANTITY AMOUNT

1 FEU / 5 MsT $5,000.00

N/A

$450,000,000.00

CLIN TASK ORDER (BOOKING) MINIMUM/MAXIMUM QUANTITY AND CLIN ORDER VALUE

The minimum quantity and order value for the given Task Order (Booking) issued for this CLIN shall not be less than the minimum quantity and order value stated in the following table. The maximum quantity and order value for the given Task Order (Booking) issued for this CLIN shall not exceed the maximum quantity and order value stated in the following table.

CLIN

MINIMUM

MINIMUM

MAXIMUM

MAXIMUM

QUANTITY

AMOUNT

QUANTITY

AMOUNT

1 TEU / 1 MsT $1,000.00

N/A

$20,000,000.00

1 TEU / 1 MsT $1,000.00

N/A

$20,000,000.00

1 TEU / 1 MsT $1,000.00

N/A

$20,000,000.00

RATE RULES AND PROVISIONS

Rate Rules 1.1 Application of Ocean Freight Ratesxe "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 Equipmentxe "Equipment" Charges

1.1.1.1 Cargoxe "Cargo" shipped in flatrack containers shall be freighted at the General Cargo container rate. In addition, the Contractor’s lumpsum flatrack surchargexe "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 CARES. For outbound identified routes, the first geographic area is the origin. For inbound identified routes, the first geographic area is the destination. Ratesxe "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 of empty U.S. Government containers shall be the same as the Contractor rates contained in the Schedule of Ratesxe "Rates".

1.1.1.2.2 When the Contractor provides any of the services for Assessorial rates, in connection with service provided to U.S. Government containers, the appropriate Contractor rates contained in the Schedule of Ratesxe "Rates" shall apply.

1.1.1.3 U. S. Government Owned / Leased Containers:

The Contractor shall provide ocean and intermodal services, to include chassis, for the movement of U. S. Government owned or leased equipment. The Contractor shall return U. S. Government provided equipment in the same condition as received. The Contractor will ship up to 400 containers per vessel at no additional charge.

1.1.1.3.1 The Contractor’s charges for drayage or inland of U.S. Government owned/leased containers shall be the same as the Contractor rates contained in the Schedule of Ratesxe "Rates".

1.1.1.3.2 When the Contractor provides any of the services for Assessorial rates, in connection with service provided to U.S. Government owned/leased containers, the appropriate Contractor rates contained in the Schedule of Ratesxe "Rates" shall apply.

1.1.1.4 Hazardousxe "Hazardous" Cargoxe "Cargo" On-Deck Surcharge

The lumpsum surchargexe "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.

1.1.1.5 Small Arms Ammunitionxe "Ammunition"

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

1.1.1.6 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.

1.1.1.6.1 Twenty-Foot Linehaulxe "Linehaul"/Drayagexe "Drayage" Formula

Ratesxe "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.

1.1.1.6.2 Reserved

1.1.1.7 Forty-Five Foot Containersxe "Forty-Five Foot Containers" A surchargexe "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.

1.1.1.8 High-Cube Containersxe "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.

1.1.1.9 Open-Top Containersxe "Open-Top Containers"

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

1.1.1.10 Commingling of U.S. Government Less-than-Container load and Commercial Cargoxe "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.

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

1.1.1.11.1 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 surchargexe "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.

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

1.1.1.12 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 Drayagexe "Drayage" and Inland Ratesxe "Rates"

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

1.1.2.1 Reserved

1.1.2.2 Inland Rate Application

1.1.2.2.1 Linehaulxe "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.

1.1.2.2.2 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 ratesxe "Mileage rates" apply by container size. Ratesxe "Rates" for mileage bands under 51 miles are per container.

1.1.2.2.2.1 Mileage ratesxe "Mileage rates" apply between points and ports in the country named in the rate table, except,

1.1.2.2.2.1.1 The U.S. mileage rate table shall also apply from/to points in Canada and include ports in the U.S. and Canada.

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

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

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

1.1.2.2.3.2 Breakbulkxe "Breakbulk" cargoes:

1.1.2.2.3.2.1 For pieces of cargo less than 20' in length, the under-40' container linehaul rate applies.

1.1.2.2.3.2.2 For pieces of cargo 20' or over, the 40'-and-over container linehaul rate applies.

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

1.1.2.2.3.2.3.1 For each conveyance with pieces totaling less than 20' in length, apply the under 40' container rate.

1.1.2.2.3.2.3.2 For each conveyance with pieces totaling 20' or more in length, apply the 40' and over container rate.

1.1.2.2.3.2.3.3 If a Contractor offers both container and breakbulk linehaul rates, the breakbulk linehaul rates and terms shall apply for breakbulk cargo.

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

1.1.2.2.3.4 Overheight shipmentsxe "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.

1.1.2.2.3.5 Super Load Shipmentsxe "Super Load Shipments". Ratesxe "Rates" for super load shall apply to cargo that exceeds 140 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.

1.1.2.2.4 Inland Service by Ferryxe "Ferry" or by Bargexe "Barge"-Ship Systems.

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

1.1.2.2.4.1 Between ports in the United Kingdom and ports in Eire.

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

1.1.2.2.4.3 Between ports in mainland Greece and ports in Crete.

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

1.1.2.2.5 Grouping of Certain Ports, Cities, and Places

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

1.1.2.2.5.3 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.

CONUSxe "CONUS"

Chesapeake

OCONUS

1.1.3 Over dimensional Cargoxe "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 Cargoxe "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 surchargexe "surcharge" shall not be applied to the formula. If open top containers are used, the open top surcharge shall apply.

1.1.3.4 Flatrackxe "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 Cargoxe "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 Cargoxe "Cargo" Ocean Container Rate from the Table of Ratesxe "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 Cargoxe "Cargo" Handling (Stuffing, Unstuffing, and Transloading) When this service is ordered by the U.S. Government, Contractors shall be paid for each manifest MsT for providing cargo handling services which consist of stuffing, unstuffing, transloadingxe "transloading" and consolidation of containerized cargo at Contractor-designated facilities. The rate applies without regard to size/type container and includes tallying of cargo, and necessary blocking, bracing or dunnage. Chains and binders provided by the Contractor to secure cargo remain the property of the Contractor.

1.1.5 Single Factor Ratesxe "Rates"

1.1.5.1 These rates include all considerations except for Currency Adjustment Factorxe "Currency Adjustment Factor" (CAF), Bunker Adjustment Factorxe "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 surchargexe "surcharge" for the route.

1.1.5.2 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.

1.1.5.3 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.

1.2 Application of Ocean Freight Ratesxe "Rates"—Breakbulkxe "Breakbulk"/ROROxe "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:

Heavy Vehicles

1.2.1 Ratesxe "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 Cargoxe "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 Accessorialsxe "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 Reserved.

1.2.5 Hazardousxe "Hazardous" Cargoxe "Cargo" Surcharge: This surchargexe "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.

1.2.6 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.

1.2.7 When ocean service is ordered to a port subject to the Port Arbitraryxe "Port Arbitrary", the Port Arbitrary rate in the Table of Accessorialsxe "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 surchargexe "surcharge" includes costs to load or discharge feeder vessels at intermediate ports. Service at the arbitrary port is FIO unless liner service is ordered.

1.2.8 Vessel Demurragexe "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 Ratesxe "Rates" Table 6C. Charges are prorated for the actual period of delay.

1.2.9 Linehaulxe "Linehaul" for Breakbulkxe "Breakbulk" and ROROxe "RORO" cargo

1.2.9.1 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.

1.2.9.2 In the absence of specific linehaul rates between points within CONUSxe "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.

1.2.9.3 Mileage ratesxe "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 Ratesxe "Rates"—Container and Breakbulkxe "Breakbulk"

1.3.1 Port Arbitrariesxe "Port Arbitraries": A surchargexe "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 Arbitrariesxe "Port Arbitraries" apply to all directions of movement.

1.3.1.2 Port Arbitrariesxe "Port Arbitraries" are not to be used in conjunction with 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 surchargexe "surcharge" shall be listed in the Schedule of Ratesxe "Rates" Table 6, Accessorial Ratexe "Accessorial Rates"s.

1.3.1.4 Each Port Arbitraryxe "Port Arbitrary", as specified in the Schedule of Ratesxe "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.

1.3.2 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 Factorxe "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 Factorxe "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] / 6.52 (Conversation factor, metric tons to barrels) 2.2 Baselinexe "Base Period" Fuel Price

The baseline fuel price for this contract is the average price calculated from the 13-week base period immediately preceding the issue date of the USC-05 solicitation (Feb 05-May 05). Should an option to extend the contract be exercised, the base period baseline shall be extended to apply to the option year(s).

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 A one-month average fuel price shall be computed by SDDCxe "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 following month. 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 6.52. 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 SDDCxe "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 SDDCxe "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

40-foot container

MsT 4.35

7.25

0.12

40-foot container

MsT 2.88

4.80

0.07

40-foot container

MsT 5.55

9.25

0.16

40-foot container

MsT 9.90

16.49

0.27

40-foot container

MsT 2.1

3.5

0.07

61 Guam Japan, 39 and 43

79 Hawaii - Kwajalein, 61 Guam-Singapore 20-foot container

40-foot container

MsT 4.2

7.0

0.13

40-foot container

MsT 6.3

10.5

0.19

12A, 16 (Hawaii – Far East), and 55

7, 12B, 12 C, 13, 54 20-foot container

40-foot container

MsT 8.4

14.0

0.25

*NOTE: For the Base Year, BAF will be applicable to only those routes listed in the table above. For option years BAF will be applicable to all routes. Technical factors for the added routes will be developed by a TRANSCOM commissioned independent study, which also may result in changes to the current technical factors on the routes listed above.

Currency Adjustment Factorxe "Currency Adjustment Factor" (CAF)

3.1 Allowance

An allowance for fluctuations in foreign currency exchange rates shall be paid to Contractors or to SDDCxe "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 Calculationxe "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 0.30 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 Factorxe "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 SDDCxe "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.

3.3 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 SDDCxe "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

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)

CLAUSES INCORPORATED BY REFERENCE

CLAUSES INCORPORATED BY FULL TEXT

52.212-3 OFFEROR REPRESENTATIONS AND CERTIFICATIONS--COMMERCIAL ITEMS (JUN 2008)

An offeror shall complete only paragraph (b) of this provision if the offeror has completed the annual representations and certifications electronically at http://orca.bpn.gov. If an offeror has not completed the annual representations and certifications electronically at the ORCA website, the offeror shall complete only paragraphs (c) through (m) of this provision.

(a) Definitions. As used in this provision --

"Emerging small business" means a small business concern whose size is no greater than 50 percent of the numerical size standard for the NAICS code designated.

"Forced or indentured child labor" means all work or service-

(1) Exacted from any person under the age of 18 under the menace of any penalty for its nonperformance and for which the worker does not offer himself voluntarily; or

(2) Performed by any person under the age of 18 pursuant to a contract the enforcement of which can be accomplished by process or penalties.

Manufactured end product means any end product in Federal Supply Classes (FSC) 1000-9999, except--

(1) FSC 5510, Lumber and Related Basic Wood Materials;

(2) Federal Supply Group (FSG) 87, Agricultural Supplies;

(3) FSG 88, Live Animals;

(4) FSG 89, Food and Related Consumables;

(5) FSC 9410, Crude Grades of Plant Materials;

(6) FSC 9430, Miscellaneous Crude Animal Products, Inedible;

(7) FSC 9440, Miscellaneous Crude Agricultural and Forestry Products;

(8) FSC 9610, Ores;

(9) FSC 9620, Minerals, Natural and Synthetic; and

(10) FSC 9630, Additive Metal Materials.

Place of manufacture means the place where an end product is assembled out of components, or otherwise made or processed from raw materials into the finished product that is to be provided to the Government. If a product is disassembled and reassembled, the place of reassembly is not the place of manufacture.

Restricted business operations means business operations in Sudan that include power production activities, mineral extraction activities, oil-related activities, or the production of military equipment, as those terms are defined in the Sudan Accountability and Divestment Act of 2007 (Pub. L. 110-174). Restricted business operations do not include business operations that the person conducting the business can demonstrate--

(1) Are conducted under contract directly and exclusively with the regional government of southern Sudan;

(2) Are conducted pursuant to specific authorization from the Office of Foreign Assets Control in the Department of the Treasury, or are expressly exempted under Federal law from the requirement to be conducted under such authorization;

(3) Consist of providing goods or services to marginalized populations of Sudan;

(4) Consist of providing goods or services to an internationally recognized peacekeeping force or humanitarian organization;

(5) Consist of providing goods or services that are used only to promote health or education; or

(6) Have been voluntarily suspended.

Service-disabled veteran-owned small business concern--

(1) Means a small business concern--

(i) Not less than 51 percent of which is owned by one or more service-disabled veterans or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more service-disabled veterans; and

(ii) The management and daily business operations of which are controlled by one or more service-disabled veterans or, in the case of a service-disabled veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran.

(2) Service-disabled veteran means a veteran, as defined in 38 U.S.C. 101(2), with a disability that is service-connected, as defined in 38 U.S.C. 101(16).

"Small business concern" means a concern, including its affiliates, that is independently owned and operated, not dominant in the field of operation in which it is bidding on Government contracts, and qualified as a small business under the criteria in 13 CFR Part 121 and size standards in this solicitation.

Veteran-owned small business concern means a small business concern--

(1) Not less than 51 percent of which is owned by one or more veterans (as defined at 38 U.S.C. 101(2)) or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more veterans; and

(2) The management and daily business operations of which are controlled by one or more veterans.

"Women-owned small business concern" means a small business concern--

(1) That is at least 51 percent owned by one or more women or, in the case of any publicly owned business, at least 51 percent of its stock is owned by one or more women; or

(2) Whose management and daily business operations are controlled by one or more women.

"Women-owned business concern" means a concern which is at least 51 percent owned by one or more women; or in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more women; and whose management and daily business operations are controlled by one or more women.

(b) (1) Annual Representations and Certifications. Any changes provided by the offeror in paragraph (b)(2) of this provision do not automatically change the representations and certifications posted on the Online Representations and Certifications Application (ORCA) website.

(2) The offeror has completed the annual representations and certifications electronically via the ORCA website at http://orca.bpn.gov. After reviewing the ORCA database information, the offeror verifies by submission of this offer that the representations and certifications currently posted electronically at FAR 52.212-3, Offeror Representations and Certifications--Commercial Items, have been entered or updated in the last 12 months, are current, accurate, complete, and applicable to this solicitation (including the business size standard applicable to the NAICS code referenced for this solicitation), as of the date of this offer and are incorporated in this offer by reference (see FAR 4.1201), except for paragraphs ----------.

(Offeror to identify the applicable paragraphs at (c) through (m) of this provision that the offeror has completed for the purposes of this solicitation only, if any.)

These amended representation(s) and/or certification(s) are also incorporated in this offer and are current, accurate, and complete as of the date of this offer.

Any changes provided by the offeror are applicable to this solicitation only, and do not result in an update to the representations and certifications posted on ORCA.]

(c) Offerors must complete the following representations when the resulting contract will be performed in the United States or its outlying areas. Check all that apply.

(1) Small business concern. The offeror represents as part of its offer that it ( ) is, ( ) is not a small business concern.

(2) Veteran-owned small business concern. (Complete only if the offeror represented itself as a small business concern in paragraph (c)(1) of this provision.) The offeror represents as part of its offer that it ( ) is, ( ) is not a veteran-owned small business concern.

(3) Service-disabled veteran-owned small business concern. (Complete only if the offeror represented itself as a veteran-owned small business concern in paragraph (c)(2) of this provision.) The offeror represents as part of its offer that it ( ) is, ( ) is not a service-disabled veteran-owned small business concern.

(4) Small disadvantaged business concern. (Complete only if the offeror represented itself as a small business concern in paragraph (c)(1) of this provision.) The offeror represents, for general statistical purposes, that it ( ) is, ( ) is not a small disadvantaged business concern as defined in 13 CFR 124.1002.

(5) Women-owned small business concern. (Complete only if the offeror represented itself as a small business concern in paragraph (c)(1) of this provision.) The offeror represents that it ( ) is, ( ) is not a women-owned small business concern.

Note: Complete paragraphs (c)(6) and (c)(7) only if this solicitation is expected to exceed the simplified acquisition threshold.

(6) Women-owned business concern (other than small business concern). (Complete only if the offeror is a women-owned business concern and did not represent itself as a small business concern in paragraph (c)(1) of this provision.) The offeror represents that it ( ) is, a women-owned business concern.

(7) Tie bid priority for labor surplus area concerns. If this is an invitation for bid, small business offerors may identify the labor surplus areas in which costs to be incurred on account of manufacturing or production (by offeror or first-tier subcontractors) amount to more than 50 percent of the contract price:

(8) Small Business Size for the Small Business Competitiveness Demonstration Program and for the Targeted Industry Categories under the Small Business Competitiveness Demonstration Program. (Complete only if the offeror has represented itself to be a small business concern under the size standards for this solicitation.)

(i) (Complete only for solicitations indicated in an addendum as being set-aside for emerging small businesses in one of the designated industry groups (DIGs).) The offeror represents as part of its offer that it ( ) is, ( ) is not an emerging small business.

(ii) (Complete only for solicitations indicated in an addendum as being for one of the targeted industry categories (TICs) or designated industry groups (DIGs).) Offeror represents as follows:

(A) Offeror's number of employees for the past 12 months (check the Employees column if size standard stated in the solicitation is expressed in terms of number of employees); or

(B) Offeror's average annual gross revenue for the last 3 fiscal years (check the Average Annual Gross Number of Revenues column if size standard stated in the solicitation is expressed in terms of annual receipts).

(Check one of the following):

Average Annual

Number of Employees Gross Revenues

___ 50 or fewer ___ $1 million or less

___ 51 - 100 ___ $1,000,001 - $2 million

___ 101 - 250 ___ $2,000,001 - $3.5 million

___ 251 - 500 ___ $3,500,001 - $5 million

___ 501 - 750 ___ $5,000,001 - $10 million

___ 751 - 1,000 ___ $10,000,001 - $17 million

___ Over 1,000 ___ Over $17 million

(9) (Complete only if the solicitation contains the clause at FAR 52.219-23, Notice of Price Evaluation Adjustment for Small Disadvantaged Business Concerns or FAR 52.219-25, Small Disadvantaged Business Participation Program-Disadvantaged Status and Reporting, and the offeror desires a benefit based on its disadvantaged status.)

(i) General. The offeror represents that either--

(A) It ( ) is, ( ) is not certified by the Small Business Administration as a small disadvantaged business concern and identified, on the date of this representation, as a certified small disadvantaged business concern in the database maintained by the Small Business Administration (PRO-Net), and that no material change in disadvantaged ownership and control has occurred since its certification, and, where the concern is owned by one or more individuals claiming disadvantaged status, the net worth of each individual upon whom the certification is based does not exceed $750,000 after taking into account the applicable exclusions set forth at 13 CFR 124.104(c)(2); or

(B) It ( ) has, ( )( has not submitted a completed application to the Small Business Administration or a Private Certifier to be certified as a small disadvantaged business concern in accordance with 13 CFR 124, Subpart B, and a decision on that application is pending, and that no material change in disadvantaged ownership and control has occurred since its application was submitted.

(ii) Joint Ventures under the Price Evaluation Adjustment for Small Disadvantaged Business Concerns. The offeror represents, as part of its offer, that it is a joint venture that complies with the requirements in 13 CFR 124.1002(f) and that the representation in paragraph (c)(9)(i) of this provision is accurate for the small disadvantaged business concern that is participating in the joint venture. (The offeror shall enter the name of the small disadvantaged business concern that is participating in the joint venture: ____________.)

(10) HUBZone small business concern. (Complete only if the offeror represented itself as a small business concern in paragraph (c)(1) of this provision.) The offeror represents, as part of its offer, that--

(i) It ( ) is, ( ) is not a HUBZone small business concern listed, on the date of this representation, on the List of Qualified HUBZone Small Business Concerns maintained by the Small Business Administration, and no material change in ownership and control, principal office, or HUBZone employee percentage has occurred since it was certified by the Small Business Administration in accordance with 13 CFR part 126; and

(ii) It ( ) is, ( ) is not s joint venture that complies with the requirements of 13 CFR part 126, and the representation in paragraph (c)(10)(i) of this provision is accurate for the HUBZone small business concern or concerns that are participating in the joint venture. (The offeror shall enter the name or names of the HUBZone small business concern or concerns that are participating in the joint venture:____________.) Each HUBZone small business concern participating in the joint venture shall submit a separate signed copy of the HUBZone representation.

(d) Certifications and representations required to implement provisions of Executive Order 11246--

(1) Previous Contracts and Compliance. The offeror represents that--

(i) It ( ) has, ( ) has not, participated in a previous contract or subcontract subject either to the Equal Opportunity clause of this solicitation, the and

(ii) It ( ) has, ( ) has not, filed all required compliance reports.

(2) Affirmative Action Compliance. The offeror represents that--

(i) It ( ) has developed and has on file, ( ) has not developed and does not have on file, at each establishment, affirmative action programs required by rules and regulations of the Secretary of Labor (41 CFR Subparts 60-1 and 60-2), or

(ii) It ( ) has not previously had contracts subject to the written affirmative action programs requirement of the rules and regulations of the Secretary of Labor.

(e) Certification Regarding Payments to Influence Federal Transactions (31 U.S.C. 1352). (Applies only if the contract is expected to exceed $100,000.) By submission of its offer, the offeror certifies to the best of its knowledge and belief that no Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress or an employee of a Member of Congress on his or her behalf in connection with the award of any resultant contract.