HTC711-08-R-0031.doc

Section SF 1449 - CONTINUATION SHEET

CONTINUATION OF SF 1449

Block 17b. If remittance is different, put such address in the Central Contractor Registration (CCR)

Block 18b.

(1) Payment to the contractor by the Government for services performed and accepted pursuant to the terms of this contract shall be in accordance with the applicable prices set forth in this contract.

(2) All invoices will be submitted using PowerTrack.

Blocks 19-24. Schedule of Supplies/Services.

Performance of this contract shall be 1 Aug 08 – 28 Feb 09, unless extended pursuant to FAR 52.217-8, Option to Extend Services.

Azores Sealift Service

FFP

Azores breakbulk and intermodal container service between points and port(s) in CONUS and the commercial terminal in Port of Praia, Azores. Period of performance, 1 Aug 08 - 28 Feb 09. Rates shall be entered into the CARES II system.

FOB: Destination

SIGNAL CODE: A

ESTIMATED

NET AMT

INSPECTION AND ACCEPTANCE TERMS

Supplies/services will be inspected/accepted at:

DELIVERY INFORMATION

28-FEB-2009

FOB: Destination

CLAUSES INCORPORATED BY REFERENCE

CLAUSES INCORPORATED BY FULL TEXT

52.211-11 LIQUIDATED DAMAGES--SUPPLIES, SERVICES, OR RESEARCH AND DEVELOPMENT (SEP 2000)

(a) If the Contractor fails to deliver the supplies or perform the services, other than specified below for POV delays, within the time specified in this contract, the Contractor shall, in place of actual damages, pay to the Government liquidated damages of $1,000 per calendar day of delay. If the contractor fails to deliver a POV on or before the RDD, the Contracting Officer shall assess $30.00 damages per diem against the contractor. Damages shall be assessed for each day that the delivery exceeds the RDD, including the day of delivery, up to a maximum period of seven calendar days (maximum contractor liability of $210.00 per POV).

(b) If the Government terminates this contract in whole or in part under the Default--Fixed-Price Supply and Service clause, the Contractor is liable for liquidated damages accruing until the Government reasonably obtains delivery or performance of similar supplies or services. These liquidated damages are in addition to excess costs of repurchase under the Termination clause.

(c) The Contractor will not be charged with liquidated damages when the delay in delivery or performance is beyond the control and without the fault or negligence of the Contractor as defined in the Default--Fixed-Price Supply and Service clause in this contract.

(End of clause)

52.212-5 CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERS--COMMERCIAL ITEMS (MAY 2008) (DEVIATION)

(a) Comptroller General Examination of Record. The Contractor agrees to comply with the provisions of this paragraph (a) if the contract was awarded using other than sealed bid, is in excess of the simplified acquisition threshold, and does not contain the clause at 52.215-2, Audit and Records-Negotiation.

(1) The Comptroller General of the United States, or an authorized representative of the Comptroller General, shall have access to the right to examine any of the Contractor's directly pertinent records involving transactions related to this contract.

(2) The Contractor shall make available at its offices at all reasonable times, the records, materials, and other evidence for examination, audit, or reproduction, until 3 years after final payment under this contract or for any shorter period specified in FAR Subpart 4.7, Contractor Records Retention, of the other clauses of this contract. If this contract is completely or partially terminated, the records relating to the work terminated shall be made available for 3 years after any resulting final termination settlement. Records relating to appeals under the disputes clause or to litigation or the settlement of claims arising under or relating to this contract shall be made available until such appeals, litigation, or claims are finally resolved.

(3) As used in this clause, records include books, documents, accounting procedures and practices, and other data, regardless of form. This does not require the Contractor to create or maintain any record that the Contractor does not maintain in the ordinary course of business or pursuant to a provision of law.

(b)(1) Notwithstanding the requirements of any other clause in this contract, the Contractor is not required to flow down any FAR clause, other than those in paragraphs (i) through (vii) of this paragraph in a subcontract for commercial items. Unless otherwise indicated below, the extent of the flow down shall be as required by the clause--

(i) 52.219-8, Utilization of Small Business Concerns (MAY 2004) (15 U.S.C. 637(d)(2) and (3)), in all subcontracts that offer further subcontracting opportunities. If the subcontract (except subcontracts to small business concerns) exceeds $500,000 ($1,000,000 for construction of any public facility), the subcontractor must include 52.219-8 in lower tier subcontracts that offer subcontracting opportunities.

(ii) 52.222-26, Equal Opportunity (MAR 2007)(E.O. 11246).

(iii) 52.222-35, Equal Opportunity for Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans (SEP 2006)(38 U.S.C. 4212).

(iv) 52.222-36, Affirmative Action for Workers with Disabilities (Jun 1998) (29 U.S.C. 793).

(v) 52.222-39, Notification of Employee Rights Concerning Payment of Union Dues or Fees (DEC 2004) (E.O. 13201)

(vi) 52.222-41, Service Contract Act of 1965 (Nov 2007)(41 U.S.C. 351, et seq.).

(vii) 52.222-50, Combating Trafficking in Persons (AUG 2007) (22 U.S.C. 7104(g)) flow down required for all subcontracts subject to the Service Contract Act of 1965 (41U.S.C. 351, et seq.).

(viii) 52.222-51, Exemption from Application of the Service Contract Act to Contracts for Maintenance, Calibration, or Repair of Certain Equipment--Requirements (Nov 2007) (41 U.S.C. 351, et seq.)

(ix) 52.222-53, Exemption from Application of the Service Contract Act to Contracts for Certain Services--Requirements ``(Nov 2007)'' (41 U.S.C. 351, et seq.)

(x) 52.247-64, Preference for Privately-Owned U.S. Flag Commercial Vessels (Feb 2006) (46 U.S.C. Appx 1241(b) and 10 U.S.C. 2631). Flow down required in accordance with paragraph (d) of FAR clause 52.247-64.

(2) While not required, the contractor May include in its subcontracts for commercial items a minimal number of additional clauses necessary to satisfy its contractual obligations.

(End of clause)

52.216-18 Ordering. (OCT 1995)

(a) Any supplies and services to be furnished under this contract shall be ordered by issuance of delivery orders or task orders by the individuals or activities designated in the Schedule. Such orders may be issued from 1 Aug 2008 through 28 Feb 2009.

(b) All delivery orders or task orders are subject to the terms and conditions of this contract. In the event of conflict between a delivery order or task order and this contract, the contract shall control.

(c) If mailed, a delivery order or task order is considered "issued" when the Government deposits the order in the mail. Orders may be issued orally, by facsimile, or by electronic commerce methods only if authorized in the Schedule.

(End of clause)

52.216-19 Order Limitations. (OCT 1995)

(a) Minimum order. When the Government requires supplies or services covered by this contract in an amount of less than 1 Forty Foot Equivalent Unit or 1 Measurement Ton (40 Cubic Feet), the Government is not obligated to purchase, nor is the Contractor obligated to furnish, those supplies or services under the contract.

(b) Maximum order. The Contractor is not obligated to honor:

(1) Any order for a single item in excess of the capacity of the vessel ;

(2) Any order for a combination of items in excess of the capacity of the vessel; or

(3) A series of orders from the same ordering office within 3 days that together call for quantities exceeding the limitation in subparagraph (1) or (2) above.

(c) If this is a requirements contract (i.e., includes the Requirements clause at subsection 52.216-21 of the Federal Acquisition Regulation (FAR)), the Government is not required to order a part of any one requirement from the Contractor if that requirement exceeds the maximum-order limitations in paragraph (b) above.

(d) Notwithstanding paragraphs (b) and (c) above, the Contractor shall honor any order exceeding the maximum order limitations in paragraph (b), unless that order (or orders) is returned to the ordering office within one (1) day after issuance, with written notice stating the Contractor's intent not to ship the item (or items) called for and the reasons. Upon receiving this notice, the Government may acquire the supplies or services from another source.

(End of clause)

52.216-21 REQUIREMENTS (OCT 1995)

(a) This is a requirements contract for the supplies or services specified, and effective for the period stated, in the Schedule. The quantities of supplies or services specified in the Schedule are estimates only and are not purchased by this contract. Except as this contract may otherwise provide, if the Government's requirements do not result in orders in the quantities described as "estimated'' or "maximum" in the Schedule, that fact shall not constitute the basis for an equitable price adjustment.

(b) Delivery or performance shall be made only as authorized by orders issued in accordance with the Ordering clause. Subject to any limitations in the Order Limitations clause or elsewhere in this contract, the Contractor shall furnish to the Government all supplies or services specified in the Schedule and called for by orders issued in accordance with the Ordering clause. The Government may issue orders requiring delivery to multiple destinations or performance at multiple locations.

(c) Except as this contract otherwise provides, the Government shall order from the Contractor all the supplies or services specified in the Schedule that are required to be purchased by the Government activity or activities specified in the Schedule.

(d) The Government is not required to purchase from the Contractor requirements in excess of any limit on total orders under this contract.

(e) If the Government urgently requires delivery of any quantity of an item before the earliest date that delivery may be specified under this contract, and if the Contractor will not accept an order providing for the accelerated delivery, the Government may acquire the urgently required goods or services from another source.

(f) Any order issued during the effective period of this contract and not completed within that period shall be completed by the Contractor within the time specified in the order. The contract shall govern the Contractor's and Government's rights and obligations with respect to that order to the same extent as if the order were completed during the contract's effective period; provided, that the Contractor shall not be required to make any deliveries under this contract after 28 Feb 2009.

(End of clause)

52.217-8 OPTION TO EXTEND SERVICES (NOV 1999)

The Government may require continued performance of any services within the limits and at the rates specified in the contract. These rates may be adjusted only as a result of revisions to prevailing labor rates provided by the Secretary of Labor. The option provision may be exercised more than once, but the total extension of performance hereunder shall not exceed 6 months. The Contracting Officer may exercise the option by written notice to the Contractor within 15 days.

(End of clause)

52.232-34 PAYMENT BY ELECTRONIC FUNDS TRANSFER—OTHER THAN CENTRAL CONTRACTOR REGISTRATION (MAY 1999)

(a) Method of payment. (1) All payments by the Government under this contract shall be made by electronic funds transfer (EFT) except as provided in paragraph (a)(2) of this clause. As used in this clause, the term “EFT” refers to the funds transfer and may also include the payment information transfer.

(2) In the event the Government is unable to release one or more payments by EFT, the Contractor agrees to either--

(i) Accept payment by check or some other mutually agreeable method of payment; or

(ii) Request the Government to extend payment due dates until such time as the Government makes payment by EFT (but see paragraph (d) of this clause).

(b) Mandatory submission of Contractor's EFT information. (1) The Contractor is required to provide the Government with the information required to make payment by EFT (see paragraph (j) of this clause). The Contractor shall provide this information directly to the office designated in this contract to receive that information (hereafter: “designated office”') no later than 15 days prior to submission of the first request for payment. If not otherwise specified in this contract, the payment office is the designated office for receipt of the Contractor's EFT information. If more than one designated office is named for the contract, the Contractor shall provide a separate notice to each office. In the event that the EFT information changes, the Contractor shall be responsible for providing the updated information to the designated office(s).

(2) If the Contractor provides EFT information applicable to multiple contracts, the Contractor shall specifically state the applicability of this EFT information in terms acceptable to the designated office. However, EFT information supplied to a designated office shall be applicable only to contracts that identify that designated office as the office to receive EFT information for that contract.

(c) Mechanisms for EFT payment. The Government may make payment by EFT through either the Automated Clearing House (ACH) network, subject to the rules of the National Automated Clearing House Association, or the Fedwire Transfer System. The rules governing Federal payments through the ACH are contained in 31 CFR part 210.

(d) Suspension of payment. (1) The Government is not required to make any payment under this contract until after receipt, by the designated office, of the correct EFT payment information from the Contractor. Until receipt of the correct EFT information, any invoice or contract financing request shall be deemed not to be a proper invoice for the purpose of prompt payment under this contract. The prompt payment terms of the contract regarding notice of an improper invoice and delays in accrual of interest penalties apply.

(2) If the EFT information changes after submission of correct EFT information, the Government shall begin using the changed EFT information no later than 30 days after its receipt by the designated office to the extent payment is made by EFT. However, the Contractor may request that no further payments be made until the updated EFT information is implemented by the payment office. If such suspension would result in a late payment under the prompt payment terms of this contract, the Contractor's request for suspension shall extend the due date for payment by the number of days of the suspension.

(e) Liability for uncompleted or erroneous transfers. (1) If an uncompleted or erroneous transfer occurs because the Government used the Contractor's EFT information incorrectly, the Government remains responsible for--

(i) Making a correct payment;

(ii) Paying any prompt payment penalty due; and

(iii) Recovering any erroneously directed funds.

(2) If an uncompleted or erroneous transfer occurs because the Contractor's EFT information was incorrect, or was revised within 30 days of Government release of the EFT payment transaction instruction to the Federal Reserve System, and--

(i) If the funds are no longer under the control of the payment office, the Government is deemed to have made payment and the Contractor is responsible for recovery of any erroneously directed funds; or

(ii) If the funds remain under the control of the payment office, the Government shall not make payment and the provisions of paragraph (d) shall apply.

(f) EFT and prompt payment. A payment shall be deemed to have been made in a timely manner in accordance with the prompt payment terms of this contract if, in the EFT payment transaction instruction released to the Federal Reserve System, the date specified for settlement of the payment is on or before the prompt payment due date, provided the specified payment date is a valid date under the rules of the Federal Reserve System.

(g) EFT and assignment of claims. If the Contractor assigns the proceeds of this contract as provided for in the assignment of claims terms of this contract, the Contractor shall require as a condition of any such assignment, that the assignee shall provide the EFT information required by paragraph (j) of this clause to the designated office, and shall be paid by EFT in accordance with the terms of this clause. In all respects, the requirements of this clause shall apply to the assignee as if it were the Contractor. EFT information that shows the ultimate recipient of the transfer to be other than the Contractor, in the absence of a proper assignment of claims acceptable to the Government, is incorrect EFT information within the meaning of paragraph (d) of this clause.

(h) Liability for change of EFT information by financial agent. The Government is not liable for errors resulting from changes to EFT information provided by the Contractor's financial agent.

(i) Payment information. The payment or disbursing office shall forward to the Contractor available payment information that is suitable for transmission as of the date of release of the EFT instruction to the Federal Reserve System. The Government may request the Contractor to designate a desired format and method(s) for delivery of payment information from a list of formats and methods the payment office is capable of executing. However, the Government does not guarantee that any particular format or method of delivery is available at any particular payment office and retains the latitude to use the format and delivery method most convenient to the Government. If the Government makes payment by check in accordance with paragraph (a) of this clause, the Government shall mail the payment information to the remittance address in the contract.

(j) EFT information. The Contractor shall provide the following information to the designated office. The Contractor may supply this data for this or multiple contracts (see paragraph (b) of this clause). The Contractor shall designate a single financial agent per contract capable of receiving and processing the EFT information using the EFT methods described in paragraph (c) of this clause.

(1) The contract number (or other procurement identification number).

(2) The Contractor's name and remittance address, as stated in the contract(s).

(3) The signature (manual or electronic, as appropriate), title, and telephone number of the Contractor official authorized to provide this information.

(4) The name, address, and 9-digit Routing Transit Number of the Contractor's financial agent.

(5) The Contractor's account number and the type of account (checking, saving, or lockbox).

(6) If applicable, the Fedwire Transfer System telegraphic abbreviation of the Contractor's financial agent.

(7) If applicable, the Contractor shall also provide the name, address, telegraphic abbreviation, and 9-digit Routing Transit Number of the correspondent financial institution receiving the wire transfer payment if the Contractor's financial agent is not directly on-line to the Fedwire Transfer System; and, therefore, not the receiver of the wire transfer payment.

(End of clause)

52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text available. Also, the full text of a clause may be accessed electronically at this/these address(es):

http://farsite.hill.af.mil (End of clause)

52.252-6 AUTHORIZED DEVIATIONS IN CLAUSES (APR 1984)

(a) The use in this solicitation or contract of any Federal Acquisition Regulation (48 CFR Chapter 1) clause with an authorized deviation is indicated by the addition of "(DEVIATION)" after the date of the clause.

(b) The use in this solicitation or contract of any Department of Defense Supplement to the Federal Acquisition Regulation (48 CFR Chapter 1) clause with an authorized deviation is indicated by the addition of "(DEVIATION)" after the name of the regulation.

(End of clause)

PWS

PERFORMANCE WORK STATEMENT

TABLE OF CONTENTS

Section No. Section Topic 1.0

INTRODUCTION/BACKGROUND

2.0

SCOPE

2.1

Transportation Services

2.1.1

Basic Service

2.1.2

MileageRates

2.2

General Scope

2.3

Cargo

2.4

Cargo Volume

2.5

Limitations of Carrier’s Obligation

2.5.1

Cargo Rejection

2.5.2

Unsafe Operation

2.6

Period of Performance

2.7

Hazardous Cargo

2.7.1

Hazardous Waste Material

3.0

PWS and DESCRIPTION OF SERVICES

3.1

Performance Requirement Summary Table

3.2

Service Frequency

3.3

Transit Time

3.4

Vessel Schedule

3.5

Vessel Daily Position Reports

3.6

Electronic Commerce/EDI

3.7

Electronic Data Interchange (EDI)

3.8

Operational Shortfalls

3.9

Seal Breakage

3.10

Required Delivery Date (RDD)

3.11

Cargo Lifted as Booked

3.12

Submission of Operational

3.13

Equipment

3.13.1

Reefer Equipment

3.13.1.1

Controlled Atmosphere

3.13.1.2

Chilled

3.13.2

Carrier Inspection of Contents

3.14

Hazardous Material Containers

3.15

Detention Invoices

3.16

Payment (PowerTrack)

3.17

Quality Council Meetings

4.0

CONTRACT ADMINISTRATION

4.1

Contracting Officer

4.2

Shipping Orders/Delivery Orders

4.3

Container Size Ordered/Provided

4.4

Application of Rates

4.5

Exceptions to General Application of Rates

4.6

Refunds, Rebates And Credits

4.7

Agreed Cost Responsibility

4.7.1

General

4.7.2

Responsibility of the Carrier

4.7.3

Responsibility of the Government

5.0

SPECIAL CONTRACT REQUIREMENTS

5.1

References to “Master” or “Crew”

5.2

Limitation Of Government Liability

5.2.1

Dead Freight

5.2.2

Required Delivery Dates

5.3

Excepted Category Cargo

5.4

Government Obligation

5.4.1

Commitment of Cargo

5.5

Limitations Of Carrier's Obligation

5.5.1

Explosives

5.6

Improper Documentation

5.7

Failure To Spot

5.7.1

Remedies

5.7.2

Liquidated Damages

5.7.3

Alternate Transportation

5.7.4

Government Responsibility for Failure

5.8

Delay In Spotting

5.9

Overweight Containers

5.9.1

Notification

5.9.2

Cost Liabilities

5.9.3

Carriage of Overweight Containers

5.10

Government Failure To Timely Release Containers

5.10.1

Occurrence

5.10.2

Load on the Next Vessel

5.10.3

Un-stuff the Container

5.11

Carrier Failure To Load Containers

5.11.1

5.11.2

5.11.3

Move to Another Shipping Place

5.11.4

Return the Cargo

5.12

No Fault Failure To Meet Sailing

5.12.1

5.12.2

5.12.3

5.12.4

5.13

Delay Of Scheduled Sailing

5.13.1

5.13.2

Container Release

5.13.3

5.13.4

5.14

Storage Charges

5.15

Commencement And Time Standard Of Delivery Transportation

5.16

Transshipment Or Relay

5.16.1

Policy

5.16.2

Foreign Flag Vessels

5.16.3

Notification of Arrival

5.17

Diversion For The Convenience Of The Government

5.18

Transfer Of Containerized Cargo

5.19

Government Drayage/Line-Haul

5.20

Time

5.20.1

Free Time Allowed

5.20.2

Commencement of Free Time

5.20.3

Running of Time

5.20.4

No Running of Time

5.20.5

Cessation of Time

5.21

Detention

5.21.1

Incurrence

5.21.2

Computation of Detention

5.21.3

Refrigerated Containers

5.21.4

5.22

Use Of Government Terminals

5.22.1

Services

5.22.2

Stevedoring

5.23

Shifting Docks

5.24

Custom Of The Trade

5.25

Security

5.26

Safety In Loading And Discharging Of Cargo

5.27

Substitution

6.0

Special Contract Provisions 6.1

Regulatory Compliance

6.2

Bunker Adjustment Factor (BAF)

7.0

Maritime Clause 7.1

Application of COGSA

7.2

Scope of Voyage (Liberties)

7.3

Force Majeure

7.4

Strikes

7.4.1

Loading Port

7.4.2

Discharge Port

7.5

Amended Jason Clause

7.6

General Average

7.7

Liens

7.7.1

Seizure of Cargo

7.7.2

Freight

8.0

War Risk 8.1

Compensation

8.2

Limitation of Government Liability

9.0

Damage to Equipment 9.1

Damage to Carrier Vessel or Vessel Equipment

9.2

Damage to Government Equipment

9.3

Lost Carrier equipment

10.0

Shipments by Authorized Agents of the Government 10.1

Parties to the contract

10.2

Booking of cargo

10.2.1

Shipping/Delivery Order

10.2.2

Carrier Load Port

10.2.3

Carrier Discharge Port

10.2.4

Payment

10.2.5

11.0

Definitions/Abbreviations

11.1

Definitions

11.2

Abbreviations

1.0 INTRODUCTION/BACKGROUND

1.1 Streamlined, Performance-Based Processes

The processes involved in soliciting, evaluating, awarding and administering contracts for Intermodal Sealift has been streamlined. The process maintains a competitive environment, while considering the needs of both customers and suppliers, focuses on reducing costs and implementing performance-based contracts.

2.0 SCOPE

2.1 Transportation Services

2.1.1 Basic Service

The Contractor, a vessel operating ocean Carrier, shall provide transportation of lawful cargo by U.S. flag ships between points in the Continental United States of America (CONUS) as specified in CARE-SM II System and the commercial terminal in Port of Praia, Azores. The Carrier shall maintain regularly scheduled liner term service on this route throughout the period of the Contract. A self-sustaining vessel(s) is required due to the unreliability of the crane at the commercial port, and the lack of dock space to maintain a floating crane at the Port of Praia.

The services being procured by this contract provide the primary logistical support for the American Forces stationed in the Azores and the sole means of surface transportation between the U.S. and the Azores. The Carrier will transport over 90% of all supplies used at the base, including food, other necessities, and amenities providing quality of life. Reliability of service in all weather conditions is paramount. Sea State 4 or higher is frequent on the annual schedule. Maintenance of the schedule has allowed the Air Base to move to a just-in-time delivery system, resulting in significant savings, including being able to eliminate the requirement to maintain redundant/spare equipment.

The Government seeks a teamwork relationship with the Carrier that will minimize the government’s overall exposure to costs and risk associated with this transport, including both Carrier and non-carrier related costs and time element problems. Reliability of the schedule is paramount in shortening the supply chain and in minimizing exposure to re-acquisition costs.

The Carrier shall provide both break-bulk and intermodal container service, including terminal handling, all stevedoring, loading and discharging in CONUS. At Port of Praia the designated U.S. Government contractor shall provide all port handling and stevedoring unless the Government directs the Carrier to implement such services. The frequency of service shall be a vessel call at Azores at intervals not to exceed twenty-five (25) days between deliveries. Actual cargo transit time shall not exceed eleven (11) days from the last loading port in CONUS to Port of Praia and eleven (11) days from Port of Praia to the first discharge port in CONUS. For inbound cargo, inland cargo delivery transit after port clearance (commencement of delivery) shall not exceed one day for every 300 miles of the shortest road distance from the port of discharge. For outbound cargo, if inland cargo delivery is required by the Government, transit after commencement of delivery shall not exceed three (3) days by the shortest road distance from the port of discharge. The Carrier shall carry any and all cargoes offered by the Government up to the capacity of the vessels offered for use in this trade, with the exception of those limitations of the Carrier’s obligations specified in Section 2.5. The minimum space available to the Government for each outbound (CONUS to Azores) or inbound (Azores to CONUS) sailing shall be no less than 75 – 40’ containers, of which 20 spaces must be capable of accepting 40’ refrigerated containers; and 2000 square feet of protected break-bulk/vehicle stowage. Each of the 40’ spaces offered must be able to accommodate 2 – 20’ containers or the vessel(s) must have additional space to accommodate the 20’ container shortfall.

2.1.2 Mileage Rates

In the absence of specific linehaul rates between points within CONUS, inland charges are computed using mileage band rates, multiplied by the mileage found in the Defense Table of Official Distances (DTOD). Mileage rates are stated as one-way mile rates and are only used where no specific point/port rate exists. Mileage rates are designated as a stopgap measure to enable continued uninterrupted cargo flow. Mileage rates are valid for any continental US city location not specifically designated and is conditioned on its application. See Attachment 1 for a definition of city groups and zones that are part of this contract.

2.2 General Scope

The general scope of services under this RFP includes:

Ocean Transportation

Related Intermodal movements and services

Management Expertise

2.3 Cargo

Types

Types of cargo to be carried are military cargo, mail, and any other cargo shipped by the Department of Defense (DoD) in the Defense Transportation System (DTS). All cargo shall be stowed in accordance with commercial shipping practices to prevent damage due to exposure to the elements.

Carriage

Cargo shall be loaded and discharged at commercial ports in CONUS and at the commercial terminal in the Azores. The Carrier shall furnish all containers/chassis in CONUS and Azores when required. Containers with mail and personal property stowed on deck shall, to the maximum extent possible, be loaded on the bottom tier if consistent with vessel safety.

2.4 Cargo Volume

2.4.1 For the period of performance 1 Aug 08 through 28 Feb 09, the Government intends to ship a minimum of 514 FEUs for 9 sailings. Cargo FEU is calculated as follows:

Container 40’ or larger

1.0 FEU

Container under 40’

0.5 FEU

Vehicles paid by Mton

1.0 FEU per 21 Mtons

Other cargo paid by Mton

1.0 FEU per 41 Mtons

2.5 Limitations of Carrier's Obligation

2.5.1 Cargo Rejection

Notwithstanding any other provisions of this contract, the carrier shall have the right to reject any species of live animals and other cargo deemed by the Carrier to be dangerous or obnoxious in character. Any such cargo accepted for carriage shall be freighted at the General Cargo rate.

2.5.2 Unsafe Operation

The Carrier shall not be required to receive or deliver containers at points or places where it is impracticable or unsafe to operate tractors and chassis due to conditions of roads, streets, or alleys or when prevented from doing so because of fire, acts of God, acts of war, riots, civil commotion, strikes, lockouts, stoppages or restraints of labor or other labor disturbances.

2.6 Period Of Performance

This contract shall be in effect for all cargo received by the carrier or its agent for voyages on or after 01 Aug 08, and shall remain in force for all cargo received by the Carrier or its agent for all voyages scheduled on or before 28 Feb 09

2.7 Hazardous Cargo

Upon request, the carrier shall transport hazardous cargo subject to Title 49 of the Code of Federal Regulations, Part 171, et seq. (49 CFR) in force at the time of shipment. The Carrier shall refuse to transport hazardous cargo, either by land or by ocean, which does not conform in all aspects to these regulations and any other applicable U.S. governmental regulations. When the Carrier refuses to pick up a container based on non-compliance with appropriate regulations as stated herein, the Government shall reimburse the Carrier the actual line-haul/drayage charge for such container if the Carrier has made a futile trip in connection with such circumstances as a result of Government failure to comply with applicable hazardous cargo regulations.

2.7.1 Hazardous Waste Material

When transporting hazardous waste material, the carrier shall obtain an Environmental Protection Agency identification number (40 C.F.R.263.11). Carrier should accept only those hazardous wastes that have been manifested in accordance with 40 C.F.R. 262.20 and 262.20(b). The manifest shall stay with the shipment to its destination. 40 C.F.R 263.20 (c). Carrier shall deliver the waste to the designated TSD facility on the manifest or to its designated alternate facility in case of an emergency. 40 C.F.R. 263.21(a) and (b).

a. Spill Reporting - In the event of an accidental discharge of the hazardous material during transporting the carrier is required to take immediate action to protect human health and the environment as defined in 49 C.F.R. 171.15 and shall be reported orally and in writing to the National Response Center, Office of Hazardous Material Regulations Department of Transportation, Washington, DC 20590. See 33 CFR 153.203, 40 C.F.R. 263.31, State and local laws may require additional notifications. Carrier is liable for spills and discharges of cargo while being transported and is responsible for the cleanup. 40 C.F.R. 263.30 and 31.

b. Storage - Carrier may store material enroute up to ten (10) days at each transfer facility as defined by 40 C.F.R. 260.10, 263.12 and 268.50 (a) (3) without becoming a TSD facility. If storage exceeds the ten days at any transfer facility, then the carrier shall issue a new manifest and sign and return to the initial shipper its original manifest. Carriers transporting hazardous waste material into the United States from abroad or who mix hazardous wastes of different DOT shipping descriptions into the same container shall also meet the standards applicable to hazardous wastes shippers.

3.0 PERFORMANCE WORK STATEMENT AND DESCRIPTION OF SERVICES

Performance Requirements in this document are expressed in the following manner:

Each performance requirement may contain the following three elements. In each case, when taken together, these elements constitute a performance requirement.

· Performance Objective – The desired outcome or result expected of the contractor (not output!)

· Performance Measures – The critical characteristics or aspects of achieving the objective that will be monitored by the Government, those things that the Government will analyze. Each objective may have one or more measures.

· Performance Standards – The targeted level or range of levels of performance measured.

3.1 Performance Requirement Summary (PRS) Table: Critical Performance Objectives

Not every performance objective in this contract has a related performance measure or performance standard. However, every performance objective is a contractual requirement. For those performance objectives that do not specify a measure or standard the measures and standards are IAW standard commercial practices, i.e., substantial compliance with local customary trade practice. Performance measures/standards, where specified, may be used to achieve a variety of goals, including collection of data to test the practicality of a performance standard; identification of a performance standard of less than 100% compliance; emphasis on most critical performance objectives; collection of data to support quality assurance and contractual remedies (including evaluation of past performance, discussion at Quality Council meetings etc.) and similar goals.

Transportation and Basic Services Performance Objectives

The Carrier’s shall maintain a regularly scheduled and consistent commercial liner term service on this route throughout the period of the contract via a self-sustaining vessel(s) per schedule as specified in Integrated Booking System.

3.2 Service Frequency

Performance Objective No.1 - The Carrier shall maintain a regularly scheduled and consistent commercial liner service conforming to the services required in the contract and offered in the Integrated Booking System (IBS) upon award. The carrier shall reserve vessel capacity as specified for the booking of Government Cargo on each vessel sailing from CONUS to Port of Praia, Azores. The Carrier’s vessel (s) must call at discharge and loading ports at intervals not to exceed twenty-five (25) days or COR approved variations. COR may approve variations due to holidays and weekends to minimize exposure to Azores transportation costs.

Performance Measures: Performance Standards:

Regular scheduled liner service 100%

3.3 Transit Time

Performance Objective No.2- The Carrier transit time shall not exceed 11 days from last CONUS port of loading to Port of Praia, Azores and 11 days from Port of Praia, Azores to the first discharge port in CONUS.

Performance Measures: Performance Standards:

COR review data for late departures/arrivals 100%

3.4 Vessel Schedule

The contractor shall provide an updated sailing and arriving schedule, including pier cut-off, of not less than five (5) sailings to SDDC via e-mail at least every 45 day through the life contract. The contractor must maintain and continually update vessel schedules within IBS or successor system. Any change to the projected schedule must be reported within seven (7) days of the next schedule port call. Schedule performance shall be based on schedule in effect (7) days prior to POE sail date. Any slippage in scheduled sailing date/arrival date by more than (1) day shall be reported in writing to the COR and entered into IBS.

3. 5 Vessel Daily Position Reports

When specifically requested by the COR or the Contracting Officer, the Carrier shall furnish the Government with the daily position of the vessel(s) serving this Contract

3.6 Electronic Commerce/Electronic Data Interchange (EDI)

Performance Objective No.3

3.6.1 Electronic Data Interchange: The contractor must use Electronic Data Interchange (EDI) or

Ocean Carrier Interface (OCI) (or successor system) as the primary means for interfacing with

SDDC for all CONUS and OCONUS bookings.

3.6.1a - Booking Transaction Sets

Where EDI is used, the contractor must receive or transmit, as appropriate, the following transactions sets:

Contractor receiving order data, 300 (Delivery order, the booking, including increases and decreases)

Cancellation data from OO/COR, 303 (OO/COR cancellation)

Contractor ordering confirmation data, 301 (Confirmation of order, contractor to OO/COR)

3.6.2. For those transportation and intermodal services provided by contractors to meet booking requirements, contractors must provide container or break-bulk shipment status reports using the 315 transaction sets in ANSI X-12 EDI standard or OCI to SDDC to enable the Government to track shipments and to support the MRM15 initiatives. Listed below are the reports which the Government requires all contractors to provide for all shipments. Contractor is not required to report events that are outside the scope of the booking.

returned empty to the contractor's terminal, the carrier will report an alternate event that shows that the detention/free time clock has stopped. Contractor will report this using codes approved by the Ocean ACI Committee.

Russian rail system. Reporting will 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.

*NOTES:

(1) Submitting 315 report within 12 hours of accomplishing the event is mandatory. The Government will work with the contractors to achieve reporting within four hours.

(2) For cargo that is booked free-in and is loaded by the Government, the contractor must report AE events within 12 hours of receiving load reports from the Government.

3.6.3 Changeover Supported by IBS.

The contractor must commence the use of EDI or OCI (or successor system) with booking offices not supported by IBS at the effective date of this contract, subject to the Government providing at least 90

Days’ notice of requirement to begin exchanging electronic information at such sites.

3.6.4 EDI Transaction Sets and Concepts of Operation

The contractor must use the Defense Transportation Electronic Data Interchange (DTEDI) approved. Implementation Convention for the ANSI X 12 300, 301, 303 and 315 transaction sets in compliance with their approved concepts of operations. Versions 3060, 4010 or later are required. The contractor will 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 must be implemented in accordance with schedules approved by the Ocean ACI Committee.

3.7 EDI

Performance Measures Performance Standards:

1. Provide accurate transaction set 315 97%

2. Submit 315 report within 12 hours of accomplishing the event 97%

3.8 Operational Shortfalls - The Carrier shall provide notice within 24 hours to both the Contracting Officer and the COR/QAE of any operational shortfalls that occur relative to the service, such as sailing delays, container unavailability, strikes, receiving delays, port backlogs and equipment failures, such as ship cranes, etc.

3.9 Seal Breakage - Carrier shall notify COR/AQE with complete report if a seal on any container has been broken and/or replaced while in the carrier’s custody.

3.10 Required Delivery Date (RDD) Performance Objective No 4 - Delivery is required by the required delivery date (RDD) specified in the accepted booking. The Government will ensure that realistic RDDs (confirmed with the carrier’s IBS vessel schedules) will be reflected in the booking, Performance Measure Performance Standards

RDD Met 97%

3.11 Cargo Lifted as Booked Performance Objective No 5 - Unless directed otherwise by the Government; the contractor must lift cargo onto the vessel identified in the booking.

Performance Measure Performance Standards

Lift as booked excludes cargo not released 97% by the Government in time to meet booked sailings excludes cargo delayed by the Government

3.12 Submission of Operational

Until EDI transaction submissions can fully provide this data, the contractor must provide the cognizant SDDC activity and the military activity responsible for cargo documentation at each port where Government cargo is lifted and/or discharged certain information in connection with cargo at the port. The contractor must submit as much of the data that is available within the timeframe of submission.

3.12.1 Receipt

Contractor Name

Port of loading

Date cargo received at port

Transportation Control Number (TCN)

Container number with alpha prefix

Seal and / or keyless lock number

3.12.2 Lift (Container)

Cargo Lift Information (CONUS/OCONUS ports of loading):

PCFN/Carrier Booking number

Name of vessel and voyage document number

Port of Embarkation

Port of discharge

Final destination

Note: If a seal on any container has been broken and/or replaced while in the Contractor’s custody, the contractor shall notify the COR and designated Government representative (e.g. QAE) at the port with a complete report as to the circumstances and the reasons there of.

3.12.3 Lift (Break-bulk)

Contractor Name and SCAC code

Cargo Lift Information (CONUS/OCONUS ports of loading):

PCFN/Carrier Booking number

Name of vessel and voyage document number

Piece, Weight and cube

Commodity code

Port of Embarkation

Port of discharge

Final destination

General description of cargo contents; i.e., General cargo, mail/mail equipment, privately-owned vehicles (POVs), other unboxed wheeled or tracked vehicles, refrigerated cargo

Seal and /or keyless lock number.

3.12.4. Pre-Arrival Notice: The carrier shall provide a cargo list (via email) including:

TCN

Consignee DODAAC

Container number with alpha prefix estimated date and time of vessel arrival and any Variation from information previously furnished

Vessel name and voyage

POD

PCFN/Carrier booking number

Voydoc

Seal number

Date cargo is to arrive

Name and voyage number of Mother Vessel if transshipped

3.12.5 Discharge: Cargo discharge information must indicate the following for each shipment/TCN

Container number with prefix

Name and voyage number of vessel making delivery

Name and voyage number of original vessel(s) if transshipped

Date and time the cargo was discharged from the vessel Date and time, cargo is scheduled to be available for commencement of drayage or line-haul from port.

Seal and /or keyless lock number

3.12.6 Disposition

Contractor name

Port

Date, time and mode of commencement of drayage or line-haul from discharge port

TCN

Container number and prefix

3.12.7 Contractor Containerization: When carrier provides container cargo handling service or LCL service, the contractor shall report cargo detail by container as follows:

Booked Container TCN

POE

Cargo TCN, pieces, weight, cube

Container number and prefix

Date stuffed

Consignee if for inland delivery by the contractor

Booking reference

Booked/scheduled vessel

Location stuffed

3.12.8 Cargo not lifted as booked and booked and not lifted

Contractor Name

POE

Vessel Name

Sail date

TCN

Container number with prefix

Reason cargo/container was not lifted as booked

3.12.9 Direct Booking Report

Contractor name

Vessel name

DTR Commodity code

SCAC code

Booked voydoc#

Estimated sail date

POE

Shipper DODAAC

Shipper POC

Consignee DODAACC

Equipment size and type

Estimated arrival date at POD

Date Booked

VISA priority

RDD

Report type (new booking or cancellation/decrease)

Performance Measures

Performance…