USC-6 Exhibit 1 - PWS.doc

USC-6, Performance Work Statement

TABLE OF CONTENTS

SECTION 1 – BACKGROUND

SECTION 1 – BACKGROUND

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

1.D.2 Option PeriodsOption 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 ScopeScope This contract is to provide international cargo transportation and distribution services using ocean common 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 CargoCargo and Other Than Unit MovementOther 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 CargoExcepted Cargo Excepted type cargoes are included in the scope of this contract, but prices for movement of such cargo have not been negotiated at the time of award. The parties shall attempt to reach a mutually agreeable price for the movement of “excepted type cargoes” before booking. If the U.S. Government accepts a price submitted by the Contractor in response to a rate request, the U.S. Government may issue a priced modification for the movement of “excepted type cargo” under the changes provision of FAR 52.212-4.

2.A.2 Additional ServicesAdditional 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 EstimatesVolume Commitments The estimated cargo volume (the aggregrate 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

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 HazardousHazardous CargoCargo

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 ocean, which does not conform in all respects to applicable laws and regulations.

3.A.2.1.3 The Contractor shall identify to the Contracting Officer any cargo precluded from carriage due to Contractor policy prior to contract award and further advise the Contracting Officer of any changes to such policy thereafter. The Contractor shall accept for ocean carriage all commodities listed in Attachment 1 not otherwise identified in this section when the commodity is packaged, labeled, and documented in compliance with applicable laws and regulations.

3.A.2.1.4 TremcardsTremcards The Contractor shall produce "tremcards" for hazardous cargo transiting through countries where this requirement exists.

3.A.3 Quality Control, Reporting, and Records

3.A.3.1 Quality ControlQuality Control

3.A.3.1.1 The Contractor shall establish and maintain a Quality Control Plan (QCP) to ensure quality service is provided throughout the term of the contract.

3.A.3.1.1.1 The QCP shall include, as a minimum, the Contractor’s strategy for meeting the requirements of all performance objectives in both Exigency Areas and those not designated as exigent. The Contractor shall describe the methodology used to monitor and manage DOD shipments moving within the Contractor’s system.

3.A.3.1.1.2 The QCP shall be submitted to the Contracting Officer within 30 calendar days from the date of contract award. If notified by the Contracting Officer of deficiencies requiring correction, the Contractor shall revise the QCP and resubmit it to the Contracting Officer within 10 calendar days.

3.A.3.1.2 The Contractor shall immediately notify the appropriate Contracting Officer Representative (COR) of any problems or failures that may impact performance. The Contractor shall provide the COR with a written plan of corrective action, including a proposed timeline, within 10 business days after the COR is notified of the situation. This plan shall describe proposed Contractor actions to correct the problem or deficiency and bring performance back in compliance with identified performance standards.

3.A.3.1.3 The CORs shall monitor Contractor performance and compliance with the terms and the conditions of the contract using standard techniques such as inspections, U.S. Government-generated management reports, Contractor reports and customer feedback. The Contractor shall attend periodic meetings called by the COR or the Contracting Officer to discuss operations and problem areas.

3.A.3.1.4 Reserved.

3.A.3.1.5 Reserved.

3.A.3.1.6 Quality Council Meetings The Contractor shall participate in Quality Council Meetings as requested by the Contracting Officer to review performance and discuss operational issues. Meetings shall be held as directed by the Contracting Officer, but will not exceed two per year.

3.A.3.1.7 PerformancePerformance Reporting When the Contracting Officer determines, in his/her sole discretion, that Contractor performance under any PerformancePerformance Objective cannot be accurately measured, the Contracting Officer may direct the contractor to provide additional reports that satisfactorily quantify Contractor performance under those Objectives. The Contracting Officer may establish the format and frequency of such reports.

3.A.3.1.8 Retention of Records The Contractor shall maintain and, upon request, provide to the Contracting Officer such documentation deemed relevant to performance of transportation services ordered under the terms of this contract. Records will be maintained and available to the Contracting Officer throughout the term of the contract and for three years after the contract (to include all options) is completed. Such documents include, but are not limited to:

Vessel papers Manifests DeliveryDelivery Receipts Lift Reports Arrival notices Payment documents Verified Shipping Instructions 3.A.4 Invoicing and Payment Contractor shall prepare and submit invoices or proper documentation for payment of shipments in accordance with the procedures in Attachment 6.

3.A.4.1 Where the Electronic Invoice Presentation and Payment (EIPP) program has been implemented by the effective date of the contract, the Contractor shall comply with the payment procedures for this program. Contractors shall be provided 30 days' advance notice of implementation of EIPP for shipments not covered by the program by the effective date of the contract. U.S. Bank’s PowerTrack is the system used for this contract. Attachment 6 contains instructions and procedures on PowerTrack.

3.A.5 Responsibility for Charges and Taxes

Space Commitment 3.A.6.1 A “container” contractor must make available 10% of vessel capacity for the booking of Government cargo on each U.S. flag vessel sailing from CONUS on the designated routes in Section 2. B.1.

3.A.7.1 For service between countries or ports for which there is more than one shipment forecast per month, the Contractor shall provide and maintain schedules in IBS at least 45 days prior to the earliest sail date. For “Short Sails” of 3 days or less, the Contractor shall provide schedules in IBS 15 days in advance of vessel sailing.

3.A.7.2 The U.S. Government will request routing proposals for service between ports for which there is less than one shipment per month.

3.A.7.3 The Contractor shall accept, reject, or counter on the same working day to a request for routing proposals received prior to 1430 local time. For a request received after 1430 local time, the Contractor shall respond by 1200 local time of the next working day.

3.A.8.1 Notification

3.A.8.1.1 The Contractor shall notify the Contracting Officer at least 45 days prior to implementation of permanent changes in the Contractor’s commercial service. All bookings accepted prior to notification of permanent service change shall be performed in accordance with the booking and all terms contained herein.

3.A.8.1.2 The Contractor shall notify the Contracting Officer of permanent changes in service and if the Contracting Officer deems the change meets the requirements for initial award of that service, initial contract rates shall apply to the changed service. If the changed service no longer meets the initial award of that service, the Contracting Officer may adjust the award minimums.

3.A.8.1.3 Dry-Dock Initiated Service Change The Contractor shall notify the Contracting Officer in writing of scheduled dry dockings at least four months prior to the scheduled dry-dock date. The Contracting Officer must be notified in writing of any emergency dry-dock requirement affecting published schedules.

3.A.9 Customer ServiceCustomer Service Assistance The Contractor shall submit points of contact who can respond to U.S. Government activities on a 24/7 basis to provide expert assistance in answering questions, exchanging information, and resolving problems. The Contractor shall provide specific points of contact no later than seven days after contract award.

3.A.10 Electronic Commerce / Electronic Data InterchangeInterchange (EDIEDI) The Contractor shall use Electronic Data InterchangeInterchange (EDIEDI) or Ocean Carrier Interface (OCI) (or successor system) as the primary means for interfacing with SDDCSDDC for all CONUSCONUS and OCONUS bookings.

The Contractor shall use the Defense Transportation Electronic Data InterchangeInterchange (DTEDI) approved Implementation Convention for the ANSI X 12 300, 301, 303, 304 and 315 transaction sets in compliance with their approved concepts of operations. Versions 3060, 4010 or later are required. The Contractor shall implement changes to business processes contained in revisions to Transaction Set Implementation Conventions and their controlling concepts of operations as may be approved by the Ocean ACI Committee. These changes shall be implemented in accordance with schedules approved by the Ocean ACI Committee.

The Contractor shall receive or transmit, as appropriate, the following transactions sets:

- Contractor receiving order data, 300 (DeliveryDelivery order, the booking, including increases and decreases) Contractor ordering confirmation data, 301 (Confirmation of order, Contractor to Ordering Officer/COR)

- Cancellation data from Ordering OfficerOrdering Officer/COR, 303 (Ordering Officer/COR cancellation)

- Shipping Instructions, 304 Contractor shipment status reporting data, 315.

3.A.10.1 Shipment Status ReportingShipment Status Reporting: The Contractor shall provide accurate shipment status reports using the 315 transaction sets. Transactions shall be submitted in ANSI X-12 EDIEDI standard or OCI to SDDCSDDC.. Table A.10.1.1 identifies specific events that require reporting. The Contractor shall submit all reports within 24 hours of accomplishment or when the carrier has received the booking details and/or lift information from the U.S. Government.

3.A.10.1.1 Table of Reportable Shipment Status Events

CODE

DEFINITION

NOTES

EE

Empty spottedEmpty spotted Empty container out gate in lieu of actual spot is acceptable for shippers having container pools. Required for other than pool locations (Not required for breakbulk) W Pickup of Loaded container/ BreakbulkBreakbulk This transaction is required at the time customer turns over possession to Contractor I

In-gate at Port of Embarkation (POEPOE) This transaction is required at the POEPOE

AE

Loaded on VesselLoaded on Vessel This transaction is required at the POEPOE and required at all transshipment ports

VD

Vessel departureVessel departure This transaction is required at POEPOE and required at all transshipment ports

VA

Vessel arrivalVessel arrival This transaction is required at the PODPOD and required at all transshipment ports

UV

Vessel dischargeVessel discharge This transaction is required at the PODPOD and required at all transshipment ports

OA

Out gate from PODPOD This transaction is required at the final PODPOD (Port and Door bookings)

AV

Available for DeliveryAvailable for Delivery This transaction is situational at POD or inland locations. This transaction may be submitted when situations arise from delays in local delivery caused by the U. S. Government, when local delivery can be made within the next business day X1 Deliver to consigneeDeliver to consignee This transaction is required when shipment is delivered to customer, or possession is turned over to the U.S. Government

EC

Empty container pick-upEmpty container pick-up This transaction is required (Not required for breakbulk)

RD

Return of empty containersReturn of empty containers to terminal

This transaction is required when the empty container is returned to the commercial terminal (Not required for breakbulk)

TBD

Release of empty not to Contractor’s terminal When an empty container is released to the Contractor but not returned empty to the Contractor's terminal, the Contractor shall report an alternate event that shows that the detention/Free Time clock has stopped. Contractor shall report this using codes approved by the Ocean ACI Committee.

TBD

In-transit position report

Pre-Arrival notice Required only for shipments to Central Asia that transit the Northern GLOC. Reporting shall be by email until reporting requirements are established and included in Transaction Set Implementation Conventions and their controlling concepts of operations approved by Ocean ACI Committee.

3.A.11 Vessel Cutoffs, Late GatesLate Gates, and Expedited LinehaulExpedited Linehaul

3.A.11.1 Vessel Cutoffs The Contractor shall provide local cutoffs for origins within CONUSCONUS and keep SDDCSDDC apprised of changes. The default local cutoff is close of business one working day before the vessel cutoff at the port with an additional day for each 300 miles from the port to the inland origin point, rounded to the nearest whole day. If the local cutoff falls on a weekend, the cutoff shall be the final workday of that week.

3.A.11.2 Late GatesLate Gates Late GatesThe Contractor shall lift cargo to the booked vessel when cargo is received after the Contractor's vessel cutoff at no additional charge, if mutually agreeable arrangements have been made with the Contractor for a late gate.

3.A.11.3 Expedited LinehaulExpedited Linehaul to POEPOE Contractors shall provide expedited linehaul in CONUSCONUS from selected origins to the booked port of embarkation when this service is requested at time of booking by the Ordering OfficerOrdering Officer. Contractor shall be paid at the rates in the Table of AccessorialsAccessorials for the specific origin/port combination requested in the booking. No payment shall be made if the requested level of service is not provided as booked.

3.A.12 Required DeliveryDelivery DateRequired Delivery Date (RDDRDD) The Contractor shall deliver all cargo by the Required Delivery Date (RDD) specified in the accepted booking.

3.A.13 Less-Than-Container-Load (LCL) Container Services The Contractor is authorized to commingle LCL cargo with commercial cargo. The Contractor shall provide the cognizant Ordering OfficerOrdering Officer with the same receipt/lift information as required by Paragraph 3.A.21.1 below for preparation of shipping instructions. (See Rate Rules & Provisions Clause; paragraph 1.1.1.9, for rating formula). The Contractor shall provide stuffing, consolidating, strippingstripping, sorting, and transloadingtransloading services as specified in the booking or as ordered by the Ordering Officer and shall be paid at the CargoCargo Handling rates listed in the Schedule of RatesRates Table 6.

3.A.14 EquipmentEquipment

3.A.14.1 Container Standards Contractors shall provide containers with clearly marked container numbers that are clean, dry, empty, odor free,suitable for protecting cargo from damage and comply with ISO, IMO, and CSC standards.

3.A.14.2 ReeferReefer EquipmentEquipment The Contractor shall provide refrigerated containers to the stuffing activity in accordance with the booking to include pre-cooling, when requested by the Ordering OfficerOrdering Officer.

3.A.14.2.1 The Contractor shall supply reefer containers that maintain a temperature within three degrees Fahrenheit of the in-transit temperature specified for controlled atmosphere and straight chill, and five degrees Fahrenheit for frozen.

3.A.14.2.2 The Contractor shall provide continuous measurement of internal temperature using a Ryan-type recorder or equivalent capable of continuous recording from availability date for a minimum period of 90 days to provide consistent reporting and equipment supply. Contractor shall provide measurement data upon request from the Government.

3.A.14.3 Substitution of EquipmentEquipment:

When the Contractor has accepted a booking and does not provide the conveyance listed in the booking, the Contractor shall provide a suitable alternative agreed upon by the shipper and the Ordering OfficerOrdering Officer at no additional cost to the U.S. Government.

3.A.15 Chassis RequirementsChassis Requirements Containers delivered to the Government or spotted by the contractor must be on a contractor-provided chassis that supports stuffing/unstuffing operations by the Government. The chassis must remain with the container while in the custody of the Government; unless this requirement is waived by the local receiving facility, or customs of the trade do not normally call for the use of chassis.

3.A.16 EquipmentEquipment Pools (container only) The Contractor shall establish and maintain equipment pools identified in Attachment 2 and as requested by the Contracting Officer at CONUSCONUS and OCONUS locations. All expense for operating equipment pools shall be borne by the Contractor to include establishing, managing and disestablishing pools.

3.A.17 U.S. Government-Owned/Leased Containers Government-Owned/Leased Containers 3.A.17.1 The Contractor shall provide ocean and intermodal services, including chassis, for U.S. Government provided containers/equipment. Contract linehaul rates will apply unless the container pick up location is different than the Government's shipping or receiving facility. If the pick-up location is different than the Government’s shipping or receiving facility additional costs for services provided will be agreed upon prior to cargo movement with the contractor and the CO, otherwise services shall be provided as no additional cost or surcharge. The Contractor shall return U.S. Government-owned/leased containers in the same condition as received.

3.A.17.2 The Contractor shall not be entitled to detention for U.S. Government containers or U.S. Government chassis. The Contractor shall be liable for loss of or damage to U.S. Government containers and chassis while in the Contractor’s custody. 3.A.17.3 The Contractor shall not procure war risk insurance coverage on U.S. Government containers and shall not be liable for any loss thereof under circumstances covered by the Contractor’s war risk insurance on its containers.

3.A.18 FlatrackFlatrack ContainersFlatrack Containers The Contractor shall furnish flatrack containers as specified in the booking. Contractor shall be paid an additional flatrack surchargesurcharge in accordance with the Table of Accessorial RatesAccessorial Rates.

3.A.19 Bulk LiquidsBulk Liquids

3.A.19.1 The U.S. Government may furnish 20’ tank containers for shipment of bulk liquids by the Contractor.

3.A.19.2 The Contractor shall provide an acceptable, clean and empty tank container to the shipper and transport to destination. The consignee shall empty the container and return it to the Contractor, empty, but with residue. The Contractor shall be compensated for providing the tank container and for cleaning the empty container at the "Contractor Provided Tank Container” rate in Table 6B, Accessorial RatesAccessorial Rates. The Contractor shall be compensated for ocean transportation of these tanks at rates for dry containers, and for linehaul or drayage, if ordered. The tank container surchargesurcharge for Contractor-provided containers does not apply.

Until EDIEDI transaction submissions can fully provide this data, the Contractor shall provide the cognizant SDDCSDDC activity and the military activity responsible for cargo documentation at each port where U.S. Government cargo is lifted and/or discharged certain information in connection with cargo at that port. Manual Operational Reports for cargo lift are not required for cargo loaded on a “Free-in” basis. Report format, distribution, submission schedule and medium are described at Attachment 7.

CargoCargo Receipt CargoCargo Lift Information – Containers CargoCargo Lift Information – BreakbulkBreakbulk Pre-Arrival NoticePre-Arrival Notice CargoCargo Discharge CargoCargo Disposition Contractor Containerization CargoCargo not lifted as booked / booked and not lifted Direct BookingBooking Report

3.A.23.1 Inland ITV services identified in this section shall apply to Afghanistan, Pakistan, Uzbekistan, Tajikistan, Kazakhstan, Turkmenistan, Kyrgyzstan, Jordan or Iraq, or other areas as directed by the Contracting Officer. When ordered, the Contractor shall be paid an additional daily ITV Surcharge in accordance with the Table of Accessorial Rates.

3.A.23.1.1 When ordered by the U. S. Government, the Contractor shall provide daily reporting of the status/location of cargo while in transit to locations listed in 3.A.23.1. Contractor shall report on each shipment every day, providing event reports or a location report as identified by the Ordering OfficerOrdering Officer. Reportable events shall include vessel arrival, cargo discharge, cleared by customs, out-gate, arrive consignee (inbound cargo); pickup requested; depart origin, in-gate, lift to vessel, vessel sail (outbound cargo) and transit of Contractor waypoints (inbound and outbound). A location report is required for any day that no event reports are reported for the shipment. The location reports for shipments in transit between port and origin/destination that are reported at the same location as the prior day’s location report shall also provide a brief explanation of the reasons for the delay and if the reason for the delay is within the control of the Contractor, date transit is estimated to resume.

3.A.23.1.2 Report format. The Contractor shall provide reports in separate Excel spreadsheets for inbound and outbound shipments. Include columns describing the cargo (TCN, container number (with prefix), booking number, type/description of cargo, origin or destination, POEPOE or PODPOD, shipper DODAAC, receiver DODAAC ) and each applicable event, plus additional columns for exception information (location, remarks and dates) of all events that occurred during the prior 24 hours or had not been included in the prior report. Exception information is required only when there is no event report for the prior day. Remarks can be used to advise of cargo exception information but would not replace notifications otherwise required by the contract. Completed shipments may be deleted 30 days after delivery.

3.A.23.1.3 Reports shall be provided by email attachments to distribution as provided by SDDCSDDC-G3.

The Contractor shall provide the services as identified in the booking.

3.B.1.1 Shipment BookingBooking All cargo shall be booked to the Contractor at the discretion of Ordering OfficersOrdering Officers (Shipper Select) based on a contemporaneous best value analysis of technical capability, scheduled service, past performance and price, subject to VISAVISA priorities. Awarded contract minimums for the base period shall be satisfied by the expiration date of the base period.

3.B.1.1.1 See paragraph 4.B.3.4 for additional factors in best value analysis when booking Prime Vendor owned cargo for shipment.

3.B.1.2 BookingBooking Acceptance Issuance of a booking number by the Contractor through EDIEDI, OCI, Direct BookingBooking, email, or facsimile communication to the U.S. Government constitutes acceptance booking. The parties may subsequently agree to amendments/changes prior to delivery, including rerouting of containers as specified at paragraph G.5 below. Should the Contractor use auto-accept or other processes that provide a booking number in advance of full evaluation of the offer, Contractors shall have one business day to counteroffer.

The Contractor shall accept bookings, up to a vessel’s space commitment, if the booking is received no less than five business days prior to a local cutoff. Empty U.S. Government-owned or empty leased containers or other empty special equipment shall be booked on a space-available basis. Empty containers shall be offered to the Contractor, who shall propose space for them on the first sailing for which space is available.

3.B.1.3 Response to BookingBooking Requests The Contractor shall accept, reject, or counter on the same business day to a booking received prior to 1430 local time. For a booking received after 1430 local time, the Contractor shall respond by 1200 local time of the next working day.

3.B.1.4 Automated Booking (This paragraph does not apply to Breakbulk Carriers)Booking Contractors shall implement an automated booking capability via EDIEDI or OCI with the Integrated BookingBooking System (IBS) within 30 business days after award of contract. EDI transaction sets shall comply with standards identified in this contract. Contractor shall respond to all cargo offerings, including changes to previous offerings, within two hours of the time the cargo offering is released by IBS. Automated booking capability shall be maintained 24 hours per day, 7 days per week, throughout the period of the contract. Contractors shall have one business day to counteroffer any booking processed automatically. Contractor shall accept bookings via a Contractor-provided website for shippers that SDDCSDDC authorizes to use Direct Booking procedures. During the term of the contract, the U.S. Government may implement a successor system that shall replace IBS. Contractor shall be required to interface with this new system and shall be provided at least 120 calendar days' notice prior to implementation of the new system.

3.B.1.5 Direct BookingBooking Procedures: Contractors with established direct booking capabilities shall accept bookings from shippers who elect to use Direct Booking procedures. Contractors shall ensure that Direct Booking systems comply with the terms and provisions of this contract. RDDs accepted in the Contractor’s Direct BookingDirect Booking RDDs systems shall be used to measure RDDRDD compliance.

3.B.1.5.1 Contractors with Direct Booking capabilities will ensure that the booking acceptance process evaluates "Required Delivery Dates" consistent with booking acceptance logic resident in IBS. When deemed necessary, the U.S. Government in cooperation with the contractor will review and update the acceptance logic and associated tables, and publish results through SDDC generated customer advisories.

3.C.1.1 Pool Locations. The Contractor shall maintain empty container pools at locations and levels specified in Attachment 2. The Contractor shall provide documentation to the shipper to identify the equipment by Contractor SCACSCAC, equipment owner code and container number when empty containers are delivered to a shipper for inclusion in a pool. Once the shipper notifies the Contractor that a container is available for pickup, the container is considered loaded and no longer a part of the established pool and the Contractor shall replace the empty container, by the next business day. Detention at origin does not apply to locations with equipment pools.

3.C.1.2 Drop and PickDrop and Pick Service

3.C.1.2.1 The Contractor shall spot the requested equipment at the location on or before the date and time specified in the booking.

3.C.1.2.2 The Contractor shall provide drop and pick service without surchargesurcharge for:

3.C.1.2.2.1 OCONUS locations not requiring container pools, 3.C.1.2.2.2 CONUSCONUS/OCONUS locations listed at Attachment 2 where the Contractor has no pool assignment, and

3.C.1.2.2.3 CONUSCONUS locations where the Contractor and shipper mutually agree to drop and pick service.

3.C.1.2.3 The Contractor shall provide drop and pick service and be entitled to a surchargesurcharge for CONUSCONUS locations not described above, when drop and pick service is ordered.

3.C.1.2.3.1 When drop and pick service is ordered, the Contractor shall be compensated $300 per container.

3.C.1.2.3.2 For bookings of three or more containers, the shipper may order round robin drop and pick service. The Contractor shall be paid $300 for this service if the U.S. Government orders it.

3.C.1.2.4 A container which has been spotted by the Contractor for stuffing by the U.S. Government shall be permitted a period of two working days, commencing on the first workday after delivery, for stuffing before detention applies. Detention at origin does not apply to any containers that are lifted to the booked sailing or any earlier sailing nor to any containers sailing on a later vessel when the Government is not responsible for the delay.

3.C.1.3 Live loadLive load. For other locations in CONUSCONUS the Contractor shall provide live load service at origin unless drop and pick service is ordered. The Contractor and the shipper shall set a live load appointment (date and time and specific location) for each container booked. The shipper shall have three hours' free tifree timeme, starting from the time of the appointment to load the container or upon actual start. The Contractor shall be paid waiting time at the rate of $60 per hour rounded to the next higher quarter hour Waiting time shall only run during the shipper’s normal hours of operation. In the event the Contractor does not meet the agreed appointment time by 15 minutes or more, the shipper may load the container immediately or reschedule the load for a later time. Shipper may also cancel the appointment and reschedule for a different day.

3.C.1.3.1 In the event the shipper is not able to complete loading by the end of the shipper's business day, the Contractor shall be paid a $150 overnight charge. When loading operations resume, free tifree timeme, if there is any not used, or waiting time shall start at the time the shipper's workday starts unless the shipper and Contractor agree to a different time.

3.C.1.3.2 The contractor shall provide live load service, at no added cost, for locations otherwise entitled to pool or drop and pick service, when requested by the shipper in the booking, free timefree time and waiting time rates apply in accordance with 3.G.4.5.3.

3.C.1.3.3 The Contractor may, at the request of the Ordering Officer, pick up empty U.S. Government owned or leased containers from locations separate from the designated loading location and deliver them to the shipper for loading. Rates for this will be mutually agreed to through a bilateral modification to this contract. The container shall be spotted at the shipper’s location using rules for live load, drop and pick or pool as would apply for a Contractor provided container.

3.D.1.1 For door-origin cargo, the Contractor shall pick-up cargo/stuffed containers to meet the booked vessel when pick-up notification is made by the U.S. Government at least one business day prior to cutoff at origin.

3.D.1.2 The Contractor shall lift cargo onto the vessel identified in the booking or to an earlier arriving vessel. CargoCargo advanced to an earlier arriving vessel shall not displace no-shows and rollovers from previous voyages or cargo already booked. Cargo may be advanced only if the Contractor has received all required documentation.

3.D.1.3 Contractor shall not deliver early to consignees unless approved by the U.S. Government.

3.D.1.3.1 For shipments that were advanced and the U.S. Government does not approve early delivery, storage charges and free timefree time shall be calculated based on the date the booked vessel was scheduled to arrive at the PODPOD.

3.D.1.4 Contractor shall not advance cargo to an earlier vessel(s) that has a lower VISAVISA priority than the booking unless prior approval is granted by SDDCSDDC.

There are two categories of customs services: (1) Full U.S. Government Service/Joint U.S. Government – Contractor, and (2) Contractor-Arranged Customs ClearanceCustoms Clearance:

3.E.1.1 Full U.S. Government / Joint U.S. Government – Contractor customs service: These services apply to the locations provided in Table 3.1.

3.E.1.1.1 U.S. Government Customs ClearanceCustoms Clearance: U.S. Government prepares and presents documents to local customs office, inputs data electronically or the U.S Government provides the majority of the services as a joint effort with the contractor to effect the clearance process. Costs incurred for services in areas identified as Joint shall be included in the Contractor’s ocean or single factor rates.

Table 3. 1 Canada Japan (See Para. E.1.4) / Okinawa Saudi Arabia South Korea Spain The Netherlands Turkey United States Belgium (Joint) Denmark (Joint) Germany (Joint) Italy (Joint) Kuwait (Joint) Norway (Joint) United Kingdom (Joint)

3.E.1.1.2 Additional countries may be added to Table 3.1 should it be determined that the U.S. Government has increased its presence in a country, and that the U.S. Government shall provide clearance services as described by 3.E.1.1.1.

3.E.1.1.3 Countries shall be removed from Table 3.1 should it be determined that the U.S. Government has decreased its presence in those countries, and that the U.S. Government can no longer provide clearance services as described by 3.E.1.1.1.

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

3.E.1.3 Customs ClearanceCustoms Clearance. Services are as follows:

3.E.1.3.1 Contractor Arranged Customs ClearanceCustoms Clearance Service

For shipments to/from ports in countries not listed in Table 1, Contractor shall provide Contractor Arranged Customs ClearanceCustoms Clearance Service. This service consists of coordination with consignee and local customs authorities to obtain and/or prepare (except for signature) all necessary documentation for custom clearance, delivering documents to the customs office, and ensuring documentation is provided to all local entities as required to permit release and on-carriage of cargo to final destination. Contractor shall be paid a customs clearance surchargesurcharge in accordance with the Table of Accessorial RatesAccessorial Rates.

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

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

3.E.1.5 Reserved

3.E.1.6 Import/Export Border Clearance ServicesImport/Export Border Clearance Services

3.E.1.6.1 Import/Export Services: The Contractor shall be responsible for the preparation and/or completion of all required documentation and the submission of the documentation to the appropriate embassy and/or local U.S. Government agencies for the approval, certification, stamping and/or signatures necessary to obtain border clearances and transit. Costs for these services must be included in line haul rates, except that for locations included in the Table of Acessorials, contractor to submit rates for Import/Export Border Clearance service as part of proposal submission.

3.E.1.6.2 The requested services include, but are not limited to, the completion, preparation, and submission of exemption forms, cargo declarations, goods declaration forms, and importation/exportation forms necessary to effect border transit from origin to port.

3.E.1.7 Notification of CargoCargo Held by Customs The Contractor shall promptly notify the COR, or designee within 24 hours, if cargo is held up by Customs, or if the local port authorities require direct U. S. Government intervention for cargo terminal clearance.

3.E.1.8 The Contractor shall be paid at the rates set forth in Accessorial Table 6 for import and export clearance services.

3.F.1.1 Schedule all deliveries of containers with the consignee or consignee's agent at least two working days prior to any actual delivery of containers.

3.F.1.2 Not deliver containers on the same day as notification unless approved by the consignee.

3.F.1.3 Deliver all containers to each consignee during the consignee's normal business hours.

3.F.1.4 The Contractor shall provide a delivery receipt for the consignee or agent to sign to acknowledge receipt of the container and to annotate any exceptions.

3.F.1.5 The contractor shall display on the truck or container a placard with identifying marks where required by local practice.

3.F.1.6 A signed delivery receipt with no damage noted does not preclude the U.S. Government from pursuing a claim for damages discovered after delivery. If damage is later discerned, Contractor will be notified, and allowed to survey cargo.

3.F.2 Expedited DeliveryExpedited Delivery

3.F.2.1 Expedited delivery service: The Contractor shall provide expedited delivery when ordered by the Ordering Officer or COR. The Contractor shall deliver the container to consignees in Germany within two business days and one business day at all other locations commencing at 0001 hours on the first…