TCAQ Response to Industry Questions_v2_12 Aug 09.pdf

Theater Express Solicitation Questions 12 Aug 09

Q1. Reference PWS, para 1.2., Airmanship-Safety Oversight - IATA Operational Safety Audit for all sub-contractors to make them compliant with CAT 1 standards. This will be impossible to implement:

a. Firstly, 2nd & 3rd tier charter operators are unlikely/unwilling to comply

b. Who will pay for this?

c. Charter operators are presently non-exclusive. They will - and do - carry freight for all forwarders. This needs to be re-thought.

A1. The CRAF carrier is responsible to pay for the oversight and audit program and should incorporate those costs into their all-inclusive cost-per-pound city-pair rates.

Q2. Payment terms - presently talking 45 days plus. TCAQ-IA stated this could improve to 14 days. Why not implement Powertrack as for other DoD contracts? Is this a CENTCOM specific problem?

A2. PowerTrack will not be used for the Theater Express program. Additionally, the prompt payment terms and conditions will remain net 30 in accordance with FAR 52.212-4. Offerors have the option to offer prompt payment discount terms (e.g., 1%10, 2%10, etc) that will be considered by DFAS.

Q3. An offeror asked if they are allowed to bid selective lanes

A3. The offeror is advised to read the solicitation requirements stated at FAR 52.212-1, Instructions to Offerors, and 52.212-2, Evaluation-Commercial Items.

Q4. What will the breakout of freight be by percentage roll-on/roll off (rolling stock) compared with 463L pallets on roller beds? Within that, what will the percentages be for General Cargo, DG & Perishables (Cold Chain)?

A4. The Government cannot determine the percentage of roll-on/roll-off (rolling stock) compared to 463L palletized cargo. On a daily basis, offerors can expect both types of cargo with the majority being 463L palletized cargo. There will not be any Dangerous Goods (DG) or Perishables (cold chain) requirements under this program.

Q5. Page 23, Description of Services. 1.1.2. The contractor is required to provide service to all locations identified in Attachment 1, appears to be in conflict with Page 43 Part IV – Pricing Proposal..an offeror must provide services and rates to the 86 mandatory city-pairs…offerors without a NTE in a city-pair will not be allowed to participate in the daily spot bid on those city-pairs. Please clarify.

A5. Reference PWS, para 1.1 and 1.1.2., pg 23 of 61 will be amended to read:

1.1.1. As a minimum, the contractor shall provide service to the 86 mandatory city-pairs identified with a “XX” green shaded cell in Attachment 1, CENTCOM Theater Express City-Pair Location matrix. Offerors shall insert a proposed Not-To-Exceed (NTE) all-inclusive cost-per-pound rate for each of the remaining city-pair combinations they intend to provide service. Note: Offerors without a NTE rate in a city-pair will not be allowed to participate in the daily spot-bid process on those city-pairs. During the period of performance, the Government reserves the right to add or delete CENTCOM AOR FOB/FOL locations as a result of changing mission requirements.

1.1.2. If the contractor submits a rate and accepts an AMD/APCT mission award/transportation order, otherwise referred to as a task order, then refuses to perform the service, this failure/refusal constitutes default and may result in action being taken by the Government.

Q6. A contractor asked, page 23, Description of Services 1.1.2. If the contractor fails to accept an AMD/APCT mission award/transportation order…constitutes default and may result in action being taken by the government. Please expand on what action the government may take.

A6. If a contractor fails to perform service, the Government has several options to consider, including, but not limited to, assigning demerits, selecting other service providers, documenting the negative performance for inclusion in the annual Contractor Performance Assessment Report (CPAR), Letter of Concerns, Show Cause Notices, and Termination for Cause procedures.

Q7. A contractor asked, page 23, Description of Services 1.1.5 The contractor shall deliver cargo to the specified airfield where it will be receipted for by the local aerial post or transportation office, completing the carrier’s delivery obligation. The Government will provide sufficient material handling equipment and personnel to load and unload the contractor’s Theater Express cargo with the following restrictions. How will the government ensure they have the appropriate Material Handling Equipment for all aircraft at port-to-port locations? If the appropriate MHE isn’t available how can the carrier be assured a demerit isn’t assessed?

A7. The Government should have the appropriate MHE to handle the contractor’s aircraft;

however, if a contractor has any question prior to submitting a daily spot-bid or initiating service, the contractor should contact the AMD/APCT to discuss the type of aircraft they intend to use and verify the appropriate MHE is present. Any limitations in Government support should be documented with the AMD/APCT and Contracting Officer.

Q8. A contractor asked, page 24, Description of Services 1.1.11 The contractor shall ensure all aircraft and vehicles utilized are licensed, operated, and maintained in accordance with Federal Aviation Administration (FAA), Department of Transportation (DOT), and International Air Transport Association (IATA) rules and regulations as applicable. This is a wider set of operating rules than 1.2.1 and more realistic than “The Civil Reserve Air Fleet (CRAF) carrier (prime contractor) are obligated to comply with regulatory requirements that are equivalent to Federal Aviation Regulation FAR Part 121 procedures.” Could 1.2.1 be modified to be consistent with 1.1.11? IATA is not a regulatory body. The governing body for international operations is the International Civil Aviation Organization (ICAO). It is not a realistic expectation that an international contractor/subcontractor carrier would comply with the FAA 121 standards, but it is reasonable to expect them to comply with ICAO standards. Further all FAA 121 international carriers conform to the FAR and ICOA. Therefore, all verbiage in Section 1.2 should be modified to reflect conformance with ICAO standards.

A8. A response is on hold pending additional research.

Q9. A contractor asked, page 24, Description of Services 1.2 The Civil Reserve Air Fleet (CRAF) carrier prime contractor and subcontractors are obligated to comply with regulatory requirements that are equivalent to Federal Aviation Regulation FAR Part 121 procedures.

FAR Part 121 is a vast set of requirement ranging from the maximum age of the pilot to location of fuel tanks; please clarify any reference to FAR Part 121 to Subpart, chapter, etc. Safety and Oversight Program. The word “Oversight” is associated with how a regulatory body ensures the entities for which it is responsible meets its requirements. A pertinent example is how the FAA manages U.S. air carriers. Oversight implies a level of control that is not attainable by one carrier over another. We do not believe that any 121 carrier can provide “Safety Oversight” over another carrier. However, it is reasonable to expect that an air carrier could conduct a viable “Safety Audit” of another carrier, and based on that audit, make an assessment that carrier’s safety posture. However, it must be noted, that even this approach cannot guarantee a carrier has a safe operation over time as an audit is a snapshot of the carrier at the time of the audit. Will Safety and Audit subject mater experts and Legal representatives be available at the Pre-proposal conference?

1.2.1 As stated, only U.S. carriers can reasonably be expected to comply with “regulatory requirements that are equivalent to FAR Part 121 procedures” as all U.S. carriers are certified and overseen by the Federal Aviation Administration (FAA). The reason for this is that FAR Part 121 procedures are built on a foundation of numerous other FAR (Part 25, 61, 91, etc), years of oversight and continuous enforcement by thousands of FAA personnel. This level of oversight is not attainable by one carrier over another. However, it is reasonable to expect an international contractor to comply with ICAO standards. And, this should be the standard for contractors in international operations.

1.2.1.1 It is reasonable to require the prime contractor to perform a safety audit of a subcontractor using an accepted checklist as the basis for the audit. Company proposes to conduct a safety audits using applicable portions of the DOD Survey checklist to include and initial audit and periodic safety assessments during the 24 months for which a Letter of Compliance would be applicable. Will Safety and Audit subject mater experts and Legal representatives be available at the pre-proposal conference to discuss this?

The language needs to be amended to specify when the assessment/audit must be performed? Is it required prior to the time we select and id the contractor, before the contract is let or some other time period?

A9. The PWS, para 1.2.2 states the contractor must provide the contracting officer with a complete listing of all foreign flag subcontractors and a completed copy of the audit affirming the subcontractor complies with the safety requirements within 90 days of contract award.

Q10. A contractor asked, page 24, Description of Services 1.2.1.2 Safety and Audit Oversight Program, what are the consequences and liabilities the carrier assumes by signing the ‘Statement of Compliance’? What if an accident occurs?

The CRAF carrier is required to issue a statement of compliance affirming that the subcontractor complies with the "safety requirements" of this paragraph. The safety requirements are not well defined and we request some specificity so that we know for certain what we must affirm.

A10. The Government cannot identify the consequences or liabilities that could be assessed against a carrier.

Q11. A contractor asked, page 25, Description of Services 1.2.2 Safety and Audit Oversight Program. Would the government consider 180 days to complete the audit? Our internal audits require a team of 5 over a week to complete. Realizing THX occurs outside of the U.S. 90 days is an unrealistic time frame to complete the audits.

Section 1.2.1.4(c) should be re-written to read as follows: "Any other condition that can be reasonably considered to affect the safe operation of contractors' flight hereunder."

A11. The timeframe will remain 90 days and para 1.2.1.4(c) will not be revised.

Q12. A contractor asked, page 27, Description of Services 1.10 Loss or Damage Claims

1.10.4. Unless the AMD/APCT declares a higher value on the shipment documentation, the contractor’s liability shall be limited to $9.07 per pound.

How and where would the higher value be declared? A suggestion would be to put on the daily spot-bid notification so the carrier has the opportunity to decline during the daily spot-bid process. A CLIN should be added to allow for the accessorial to be charged.

A12. PWS, para 1.10.4 will be amended to delete the words “Unless the AMD/APCT declares a higher value on the shipment documentation” and will be amended to read: The contractor’s liability shall be limited to $9.07 per pound.

Q13. A contractor asked, page 27, Description of Services 1.12 Customs 1.12.1 The contractor shall provide duty-free customs clearance processing at both military-controlled and civilian-controlled airfields in accordance with their commercial procedures

In lieu of the recent Rus Aviation notice, accommodations for a pricing change should be allowed if the Host Nation’s Customs requires a significant change in procedures which result in a cost increase for the carrier.

A13. In accordance with FAR 52.212-4, contractors have the right to address changes with the contracting officer. Each situation will be reviewed independently and a contracting officer’s decision rendered.

Q14. A contractor asked, page 28, Description of Services 1.14 Invoice/Billing Process Did DFAS-Limestone commit to processing payments within 30 days of the carriers invoice notice to AMD? Today, -Limestone is paying the carrier 30 days after DFAS-Limestone has processed the payment, resulting in an undue financial burden to the carrier.

A14. DFAS regulations specify they disburse the payment within 30 days after DFAS receives a valid invoice not when the AMD/APCT receives the invoice.

Q15. A contractor asked, page 43, Description of Services Part IV-Pricing Proposal. Suggest that a CLIN needs to be added to allow for the accessorial to be charged. If self handling is to be done at locations in addition to the mandatory locations, how is this to be identified on the Attachment 1?

A15. A CLIN will not be added for a self-handling accessorial. The contractor’s city-pair rates should be an all-inclusive cost-per-pound rate. During the daily spot-bid process, the contractor has the ability to checkmark a box that indicates their rate includes aircraft self-handling at the origin location, destination location, or both.

Q16. A contractor asked, page 43, Description of Services Ordering Procedure/Carrier Selection The AMD/APCT daily best-value analysis factors. For what period of time in the past will the factors be considered? How often will it be updated?

A16. The AMD/APCT best-value algorithm calculations change daily based on past performance, demerits, and cargo backlog. Past performance is based on a 90-day history, demerits are based on 180-day history, and cargo backlog is based on the carrier’s daily backlog.

Q17. A contractor asked, Safety and Audit Oversight Program. Will an audit be required for November numbered aircraft?

A17. No. For US-flagged “N” registered carriers and aircraft listed on the DOD approved carrier list are exempt from the safety and audit oversight requirements as long as they remain on the DOD approved carrier list.

Q18. A contractor asked, Block 12 (Discount Terms) on the Standard Form 1449 needs to be completed. What needs to go into this block?

A18. The offeror has the option to leave this block blank or they can specify any prompt payment terms (e.g., 1%10, 2%10, etc) they wish to offer the Governement by completing the SF Form 1449, Block 12. DFAS will consider the prompt payment discount upon receipt of the contractor’s invoice. If left blank, it defaults to net30.

Q19. A contractor asked, section 1.1.4. Will the current procedure for “linked city pairs” continue post contract award in the daily bidding process?

A19. Yes, the linked city-pair option will continue in the daily spot bid process.

Q20. A contractor asked, section 1.1.1 & 1.4 What will be the procedure to award a mission if no company bids on the mission throughout the daily bid process? Will there be a “forced award” policy?

A20. No, the Government does intend to force a contractor to perform service on city-pair locations that are “no bid” during the daily spot-bid process.

Revision 2 Answer, 12 Aug 09:

A20. No, the Government doesn’t intend to force a contractor to perform service on city-pair locations that are “no bid” during the daily spot-bid process.

Q21. A contractor asked will the Government treat DBA insurance costs under this contract as cost reimbursable and add a CLIN?

A21. No, the contractor should include DBA and other indirect costs in their all-inclusive city-pair cost-per-pound rate.

Q22. A contractor asked (20) 252.243-7002 What is the Governments liability for payment of revenue if, after issuance of FRAG, the cargo is not available for loading at Port?

A22. In accordance with FAR 52.212-4, contractors have the right to address changes with the contracting officer. Each situation will be reviewed independently and a contracting officer’s decision rendered.

Q23. A contractor asked, section 1.14 What is the total invoice processing time with timelines (e.g. from receipt of scanned invoice and supporting documentation in CENTCOM to payment by DFAS Limestone)?

A23. DFAS is required to disburse the payment within 30 days after DFAS receives a valid invoice. The processing time from when the contractor submits the invoice to the AMD/APCT and when the AMD/APCT forwards the invoice to DFAS can vary depending on such factors as

1) has the contractor delivered the all the cargo assigned to the AMD mission number, 2) has the contractor completed the EDI214 requirements allowing the AMD/APCT to complete the tracking/tracking, and 3) invoice accuracy.

Q24. Reference Exhibit 1, will the Government provide details on how the Best Value Algorithm (BVA) is produced, constructed, up-dated and applied?

A24. The Government will not release how the Best Value Algorithm is produced, constructed, updated, or applied; however, offerors should review Exhibit 1, Carrier Selection, Fair Opportunity Process for an explanation on the factors that are considered in the best-value transportation decision.

Q25. Reference PWS, para 1.1.5.3 & Part III d: How will the Government audit infrastructure required to be put in place to conform to this RFQ? Do the personnel have to be dedicated to Theater Express operations only?

A25. Since the Government is buying a commercial service and paying on a cost-per-pound basis, the Government will not audit the contractor’s infrastructure. Additionally, the contractor’s personnel do not have to be dedicated solely to the Theater Express operation only.

Q26. Reference, PWS, para 1.1.5.3: Will the Base Commander’s authorize the required land for MHE on each designated field as well as life support and land allocation for accommodations at the mandatory self handling locations? Will CATO in OAKN change its current position that no one is allowed to off load any cargo there except CATO?

A26. The PWS, para 3.5.2 specifies the contractor logistical support authorized for this program.

The scope of logistical support will be determined by the local FOB/FOL Commander and any limitations to support should be reported to the Contracting Officer. Additionally, Kandahar will be removed from the required self-handling locations since this location is serviced by a separate contractor.

Q27. A contractor asked, section 1.7 Will DDKS shipments still be allowed the additional 24 hours for pick up and road shipment?

A27. No – DDKS shipments are not allowed an additional 24-hrs for pick-up.

Q28. A contractor asked, section 2 Will award notification be variable for each carrier or a fixed time each day as is currently the practice.

A28. Yes, the award notifications will remain on a fixed time for all carriers.

Q29. A contractor asked, section 1.10.4 the carrier is expected to provide limited liability insurance coverage for Theater Express (TE) shipments. To enable this the carrier will have to declare, in advance, to it’s insures its maximum exposure per annum. The Government, under the present TE solicitation does not provide values; how will this be addressed in the FAR contract?

A29. The contractor will only be liable for $9.07 per pound.

Q30. A contractor asked, Reference Proposal Preparation Instructions, Part II b. (Page 42):

The offeror is asked to submit not more than five contracts and/or customers for which they have performed air cargo services within the last three years. If the prime offeror intends to subcontract to a logistics service provider to manage the program, should the five contracts and/or customers be for the subcontractor?

A30. Offerors should direct their attention to Part II para a, page 41 that states: The offeror shall provide information that the Government will use to evaluate the offeror’s past performance. In your Part III, Technical Proposal, the offeror must state their technical approach to performing this service. For example, if the offeror (prime) intends to perform this service by subcontracting to a single freight forwarder or other logistics service provider to manage the program, then the offeror should submit past performance information for both the offeror (prime) and the freight forwarder or logistics service provider (subcontractor).

Q31.A contractor asked, Reference Sections 1.1.1. and 1.1.2. (Page 23) and Part IV, Pricing Proposal (Page 43): Section 1.1.1. states: “ The contractor shall provide transportation service to/from all locations identified in Attachment 1, …” Section 1.1.2. states: “The contractor is required to provide service to all locations identified in Attachment 1, …” Subparagraph a. of the Pricing Proposal Instructions states: “To be eligible for a contract award, an offeror must provide service and rates to the 86 mandatory city-pairs identified with a “XX” green shaded cell in the Attachment 1, City-Pair Matrix . Offerors shall insert a proposed Not-To-Exceed (NTE) all-inclusive cost-per-pound rate for each of the remaining city-pair combinations they intend to provide service. Note: Offerors without a NTE rate in a city-pair will not be allowed to participate in the daily spot-bid process on those city-pairs.

Section 1.1.1. and 1.1.2. seem to conflict with the pricing instructions. Must the offeror service all locations identified in Attachment 1 as stated in Sections 1.1.1. and 1.1.2. or as stated in the Pricing instructions just the 86 mandatory city-pairs identified with a “XX” green shaded cell in Attachment 1 and for any other remaining city-pair combinations they intend to provide service?

A31. PWS, para 1.1.1 and 1.1.2. will be amended.

Q32. A contractor asked, Reference Proposal Preparation Instructions (pages 40 and 41). Can all four sections be included in the same binder or must each section be in a separate binder?

A32. Yes, the four sections can be included in one binder.

Q33. A contractor asked, Reference Part I, Business Proposal, Subsection (9), which states “Documentation establishing any proposed Teaming Agreement (if applicable).” Could the Government clarify what it is asking for?

A33. Offerors interested in establishing a Teaming Arrangement should review the Federal Acquisition Regulation (FAR), 9.6. If the offeror intends to form a teaming arrangement, then the offeror is required to submit the appropriate documentation with their proposal response.

Q34. A contractor asked, can bidders include an executive summary with their proposal?

A34. Yes, the exective summary is limited to one, 8 ½ x 11, single-side page, 12-font.

Q35. A contractor asked, are bidders permitted to include attachments to their proposals (i.e.

quality plans, safety plans, etc.)?

A35. Per Part III – Technical Proposal. Offerors can include information not to exceed 20 single-sided pages. Attachments such as quality plans, safety, plans, etc will counted in the 20 pages.

Q36. A contractor asked, Reference Offerors Representations and Certifications 52.213-3 beginning on Page 46 and 252.212-7000, which begins on Page 60. Are both of these to be completed by Offeror?

A36. Only the prime contractor (CRAF carrier) is required to complete this information.

Secondly, your attention is directed to the first paragraph which states the offeror (e.g., CRAF carrier) does not have to complete FAR 52.212-3 if they completed the annual representation and certifications at http://orca.bpn.gov. Offerors should submit a copy of the online ORCA representations and certifications with their proposal.

Q37. A contractor asked, Page 46 it reads: “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 (b) through (i) of this provision.”

If an offeror has completed the annual reps. and certs. electronically on ORCA, it is not clear what needs to be completed in paragraph (b). Please clarify.

Do you require ORCA/CCR for both CRAF and the freight forwarder?

A37. Only the prime contractor (CRAF carrier) is required to complete this information.

Secondly, your attention is directed to the first paragraph which states the offeror (e.g., CRAF carrier) does not have to complete FAR 52.212-3 if they completed the annual representation and certifications at http://orca.bpn.gov. Offerors should submit a copy of the online reps an certs with their proposal.

Q38. A contractor asked what does country and facility code mean on Part I – Business Proposal, para (4), page 41?

http://orca.bpn.gov/� http://orca.bpn.gov/�

A38. Reference solicitation, Part I – Business Proposal, para 4, page 41 of 61 is revised to delete the requirement for a county and facility code.