Attachment 1 - STC Performance Work Statement

HTC711-09-R-0040

Attachment 1

Performance Work Statement

Military Surface Deployment and Distribution Command (SDDC)

Surface Transportation Contract (STC)

Table of Contents

June 2009

C.1 INTRODUCTION/BACKGROUND

C.1.1 Scope C.1.2 Purpose C.1.3 Concept

C.2 GENERAL REQUIREMENTS

C.2.1 Regional Concept C.2.2 Location(s) of Performance C.2.3 Shipper Operating Hours C.2.4 Receiver Operating Hours C.2.5 Federal Holidays C.2.6 Freight Carrier Registration Program (FCRP) C.2.7 DOD’s Third Party Payment System: PowerTrack® C.2.8 Defense Table of Official Distances (DTOD) C.2.9 In-Transit Visibility (ITV) C.2.10 GTN Input C.2.11 Electronic Commerce/Electronic Data Interchange (EC/EDI) C.2.12 Fuel Surcharge C.2.13 Type of Shipments C.2.14 Exclusions C.2.15 Contractor Furnished Resources C.2.16 Contractor Equipment Pool C.2.17 Contractor Equipment Inspection C.2.18 DOD Driver Identification Requirements C.2.19 Workload Estimates C.2.20 Contract Minimum Guarantees C.2.21 Rates C.2.22 Maximum Charge C.2.23 Rate Reductions C.2.24 Transition to DTCI C.2.25 Voluntary Tenders C.2.26 Surge/Contingency C.2.27 Security (Physical, Personnel, Information, Industrial, Anti-Terrorism And Force

Protection Requirements)

C.3 DESCRIPTION OF SERVICES

C.3.1 Traffic Award

C.3.2 Orders for Services (OFS) C.3.3 Hazardous Materials (HAZMAT) Shipments C.3.4 Order Acceptance and Pickup C.3.5 Pickup/Delivery During Other Than Normal Shipper Operating Hours C.3.6 Prearrange Scheduling C.3.7 Vehicle Furnished but Not Used (VFN) C.3.8 Subcontracted Equipment C.3.9 Safety and Security Inspections C.3.10 Refusal of Unsafe Shipments C.3.11 Capacity Load C.3.12 Double Brokering C.3.13 Delivery Service C.3.14 Transit Times C.3.15 Delivery Exception Codes C.3.16 Notification of Delay C.3.17 Notification Before Delivery C.3.18 Proof of Delivery (POD) C.3.19 Reporting Overages, Damages and Shortages C.3.20 Astray Freight and Emergency Notification C.3.21 Accident Notification C.3.22 Loading/Unloading C.3.23 Vehicles C.3.24 Engines C.3.25 Transloading C.3.26 Adjustment of Shipping Weights and Dimensions C.3.27 Additional Services C.3.28 Split Pickup (Applies to TL Shipments) C.3.29 Split Delivery (Applies to TL Shipments) C.3.30 Exclusive Use of Vehicle (EXC) C.3.31 Lock or Seal Removal C.3.32 Expedited Service (EXP) C.3.33 Stop-Off (SOC) C.3.34 Securing/Protecting Shipments C.3.35 Protective Tarping for Security Purposes (PTS) C.3.36 Chains with Binders and Straps with Fasteners (CHN) C.3.37 Contingency/Reconsignment/Diversion C.3.38 Redelivery (RCL) C.3.39 Storage (SRG) C.3.40 Seizure of Cargo C.3.41 Signature and Tally Record Service (675) C.3.42 Constant Surveillance Service (CIS) C.3.43 Extra Driver (EXD) C.3.44 Billing for Reconsignment/Diversion, Relocation, Detention and Storage C.3.45 Detention and Other Services C.3.46 Detention (DEP/DET) C.3.47 Detention: Vehicle with Power Unit (DEP).

C.3.48 Detention – Vehicle without Power Unit (DET) C.3.49 Documentation of Detention C.3.50 Cargo Liability (LIE) C.3.51 General Shipment Discrepancies/Claims C.3.52 Advancing Charges C.3.53 Fractions C.3.54 Quality Control Plan C.3.55 Quality Assurance C.3.56 Past Performance Information (PPI) C.3.57 Contracting Officer's Representative (COR)

C.4 APPLICABLE REFERENCES

C.5 WORK AREAS/ PERFORMANCE REQUIREMENTS

C.5.1 Performance Requirements C.5.2 Performance Objective – Order Acceptance and On-Time Pickup C.5.3 Performance Objective – On-Time Delivery C.5.4 Performance Objective – Intransit Visibility C.5.5 Performance Objective – Global Transportation Network (GTN) Reporting C.5.6 Performance Objective – Delivery/Performance Reports C.5.7 Performance Objective – Monthly Revenue Report

C.6 GLOSSARY

C.6.1 Abbreviations and Codes C.6.2 Definitions

APPENDICES

A – Performance Requirement Summary B – Origin Regions C – Destination Regions D – Transit Time Guide E – Accessorial Charges F – Shipper Unique Requirements

PERFORMANCE WORK STATEMENT (PWS)

MILITARY SURFACE DEPLOYMENT AND DISTRIBUTION COMMAND (SDDC)

SURFACE TRANSPORTATION CONTRACT (STC)

C.1 INTRODUCTION/BACKGROUND

C.1.1 Scope. The contractor shall provide all personnel, equipment, tools, materials, supervision and other items and services necessary to provide transportation services for the transportation of freight all kinds (FAK) and hazardous materials (HAZMAT) shipments within the Contiguous United States (CONUS).

C.1.2 Purpose. This Performance Work Statement (PWS) states the Department of Defense (DOD) transportation service requirements for the safe and timely movement of its FAK and HAZMAT ground shipments and provides the standardization necessary for the routing of DOD freight traffic and foreign military sales (FMS) material.

C.1.3 Concept. Military Surface Deployment and Distribution Command (SDDC) is responsible for providing for the transportation needs of the DOD including the movement of DOD freight traffic and U.S. Government shipments of FMS material. SDDC has the following two acquisition goals to achieve by using the Surface Transportation Contract (STC):

C.1.3.1 Acquire freight transportation services using Federal Acquisition Regulation (FAR) compliant contracts.

C.1.3.2 Use performance-based contracts for the acquisition of surface transportation services.

C.2 DESCRIPTION OF SERVICES

C.2.1 Regional Concept. SDDC developed a regional structure for procuring transportation services under this contract. There are eight origin regions to eight destination regions included in the schedule. Shipping offices and depots will order from the resultant contracts of this solicitation.

C.2.2 Location(s) of Performance. The Contractor shall provide freight transportation services within and between the regions specified in the contract. The Government reserves the right to add additional lanes as required within the scope of this contract.

C.2.3 Shipper Operating Hours. Shipping operations are normally conducted Monday through Friday, excluding Federal holidays, from 8:00 a.m. to 3:00 p.m. unless specified differently for the individual shipping location(s) identified in Appendix F. Contractors shall coordinate pickup times with shipper(s). Shipments picked up outside of normal operating hours may be subject to accessorial charges listed in Appendix E.

C.2.4 Receiver Operating Hours. DOD receiving location business hours are available in the Transportation Facilities Guide (TFG) database at https://eta.SDDC.army.mil. Registration is https://eta.sddc.army.mil/ required to obtain access to any of the SDDC transportation systems. Click on Register, choose the system(s) you would like to access and provide your information. The accuracy of your email address is extremely important for the registration process. After completing your registration information, you will be sent an email confirming your request. Within 5 – 7 business days you will receive your password for the system. If you requested access to more than one system, you will be notified when you have been approved for each system. Please direct questions to the email address associated with the system(s) to which you are requesting access. Note: Dedicated lanes will have a specified delivery date and time, reference Appendix F.

C.2.5 Federal Holidays. The following holidays are designated as Federal Holidays in this contract: New Year’s Day, Martin Luther King Day, Presidents’ Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans’ Day, Thanksgiving Day, Christmas Day and any other day designated as a holiday by Federal Statute or Executive Order. Any Federal Holiday that the contractor offers as a normal business day to their commercial customers shall also be offered to Government shippers; no holiday charges will apply.

C.2.6 Freight Carrier Registration Program (FCRP). Contractors transporting Department of Defense freight shall be registered in the SDDC Freight Carrier Registration Program (FCRP) and have valid operating certificates for the scope of operations in this contract. Contractors shall be registered in the FCRP on the date of contract award. The FCRP requirements and instructions are located on the SDDC website at:

http://www.sddc.army.mil/sddc/Content/Pub/14712//welcomingletter.pdf. Carriers requiring further assistance may contact SDDC Ft. Eustis, VA at 1-757-878-8742/8702.

C.2.7 DOD’s Third Party Payment System: PowerTrack®. The contractor shall establish an electronic trading partner relationship with the DOD’s third party payment system (currently US Bank’s PowerTrack®) to submit electronic invoices to and receive payment from the Government. The details of the relationship will be defined through a separately negotiated agreement between US Bank and the Contractor. As part of this relationship, the contractor shall comply with the interoperability and certification requirements of the FCRP (http://www.sddc.army.mil/Public/Global%20Distribution/Domestic/Carrier%20Registration%2 0Instructions?summary=fullcontent ) sponsored by SDDC. The Contractor shall electronically invoice the Government in a manner agreed upon between the Contractor and PowerTrack. The Contractor shall be PowerTrack enabled within 30 calendar days of contract award.

C.2.8 Defense Table of Official Distances (DTOD). The DTOD is the source for mileage-based transportation payments and applies to all orders placed under this contract. Mileage will be calculated based upon the DTOD version in effect on the date of shipment pickup.

Information about DTOD, including the default settings for Freight and Cargo, may be accessed at http://dtod.SDDC.army.mil; select North America for the Region and General Freight for the Route Type.

C.2.8.1 NOTE: The commercial version of DTOD for North America is PC*Miler. PC*Miler data is released six months prior to DTOD. Therefore, Contractors may use the PC*Miler version released in April to estimate mileage for DOD shipments that are to be picked up on or http://www.sddc.army.mil/sddc/Content/Pub/14712//welcomingletter.pdf http://www.sddc.army.mil/Public/Global%20Distribution/Domestic/Carrier%20Registration%20Instructions?summary=fullcontent http://www.sddc.army.mil/Public/Global%20Distribution/Domestic/Carrier%20Registration%20Instructions?summary=fullcontent http://dtod.sddc.army.mil/ after the 1 October effective date of DTOD. Information about PC*Miler can be obtained by accessing the PC*Miler website at http://www.pcmiler.com or by contacting ALK Technologies, Inc., 1000 Herrontown Rd, Princeton, NJ 08540 USA, ATTN: PC*Miler Sales at 1-800-377-6453, Fax: 1-609-683-0290.

C.2.8.2 Mileage is calculated using origins and destinations that are designated by unique Standard Point Location Codes (SPLC). In the absence of an assigned SPLC, the combination of City, State and County/Parish names may be used, with ZIP Code used only to differentiate between places with the same combination of City, State and County/Parish names (e.g., Chicago, IL, Cook County, which has multiple ZIP codes).

C.2.9 In-Transit Visibility (ITV). The contractor shall provide track and trace capability for all shipments from the date and time of pickup to the date and time of delivery, using the BOL number. The Contractor shall provide ITV via “Oral Status Reports” and/or “Web-Based Tracking.” Contractors may elect to provide ITV via both methods. Contractors shall indicate their ITV method in the proposal.

C.2.9.1 Oral Status Reports. Contractors providing oral status reports shall provide a Contractor toll-free telephone number with their proposal. Contractors shall provide shipment status information within one hour of a request from the Government. Shipment status information shall include at a minimum, current status of the shipment, actual or anticipated date and time of delivery and information about shipment delays, as applicable.

C.2.9.1.1 Shipment information shall remain available for at least 15 business days after delivery of the shipment.

C.2.9.2 Web-Based Tracking. Contractors providing web-based tracking shall provide a Contractor-identified Uniform Resource Locator (URL). Contractors shall provide web-based services as follows:

C.2.9.2.1 The Contractor shall provide the ability to track/trace shipments/packages by the Transportation Control Number(s) (TCN) or the BOL (BOL) number.

C.2.9.2.2 The Contractor shall allow the Government to link to their shipment tracking system through the URL.

C.2.9.2.3 The tracking information shall remain available for at least 15 business days after delivery of the shipment.

C.2.9.2.4 In the event of a website malfunction, the Contractor shall repair the website within one working day of shipper notification, or allow for manual tracking via a Contractor toll-free telephone number.

C.2.9.2.5 The Contractor shall be capable of providing web-based ITV within 30 calendar days of contract award.

http://www.pcmiler.com/

C.2.10 GTN Input. The United States Transportation Command (USTRANSCOM), on behalf of DOD, is responsible for collecting logistical data to support the in-transit visibility of all DOD shipments from origin to destination. This visibility is for peacetime, contingencies and exercises and includes tracking movements of freight. The Contractor shall electronically interface with DOD’s Global Transportation Network (GTN)/ Integrated Data Environment GTN Convergence (IGC) to provide ITV tracking and tracing information. The Contractor shall provide GTN/IGC with an electronic data transaction set meeting American National Standards Institute (ANSI) X.12 EDI standards. The Contractor shall provide an ANSI ASC X.12 transaction set (TS) 214, Motor Carrier Shipment Status Message, version 4010 (using the DOD Implementation Convention). If the carrier is not currently sending this EDI data, they shall contact the GTN/IGC program office at email:

USTC-TCJ6-GTN-CarrierFeed-Lst@ustranscom.mil

C.2.10.1 The minimum data set (events) to be included are:

1. AF - Contractor Departed Pick-up Location with Shipment (Date and exact time)

2. X4 - Arrived at Terminal/Intermediate Location (if it happens)

3. P1 - Departed Terminal/Intermediate Location (if it happens)

4. D1 - Completed Unloading at Delivery Location (Date and exact time)

C.2.10.2 Contractors shall have no more than 2% error in syntax and semantics each month and shall transmit shipment status to GTN within the following times:

1. Expedited Service – within 4 hours of the event.

2. Routine Service – within 12 hours of the event.

C.2.10.1 The Contractor shall be GTN compliant within 30 calendar days of contract award.

C.2.11 Electronic Commerce/Electronic Data Interchange (EC/EDI). The contractor shall be compliant with the DOD EC/EDI Program. Electronic Commerce (EC) is the electronic exchange of routine business documents between trading partners. Electronic Data Interchange (EDI) is a type of EC. EDI is the computer-to-computer exchange of routine business documents in machine-readable form. EDI utilizes publicly defined standards of the American National Standards Institute (ANSI).

C.2.11.1 To participate in the DOD EC/EDI program, all commercial trading partners (e.g.

contractors, vendors) shall execute an EC/EDI Trading Partner Agreement (TPA) and comply with applicable DOD instructions, standards, and conventions. The EC/EDI Trading Partner Guide for Defense Transportation is available under “Freight/Cargo, Air/Land, and TPA” on SDDC’s web site at www.SDDC.army.mil. DOD EDI implementation conventions are available at the URL: http://dteb.lmi.org.

C.2.11.2 Participation in the EDI program requires compliance with published ANSI Accredited Standards Committee X12 standards and DOD EDI implementation conventions when mailto:USTC-TCJ6-GTN-CarrierFeed-Lst@ustranscom.mil http://www.sddc.army.mil/ electronically exchanging transportation or transportation-related data with DOD transportation components or their agents. The commercial EDI trading partner shall be capable of:

1. Electronically exchanging shipment, rate, and award information

2. Securing freight payment services for the DOD using the value-added US Bank

PowerTrack service

3. Receiving Electronic Funds Transfer (EFT); and

4. Providing delivery and/or shipment status reports to PowerTrack and/or USTRANSCOM

(or its component commands) through DOD EC Infrastructure.

C.2.11.3 Commercial vendors/contractors who exchange EDI transactions with DOD transportation components or their agents may exchange business data through third-party value-added-networks (VANs), or directly, which shall be compatible with the DOD system or DOD

EDI.

C.2.11.4 The Contractor shall be EC/EDI compliant within 30 calendar days of contract award.

C.2.12 Fuel Surcharge. Fuel Related Adjustment Surcharge.

C.2.12.1 Application: Application of a Fuel Related Rate Adjustment Surcharge will be determined every Monday of each week and is based on the National Average diesel fuel price as determined by the Department of Energy (DOE), Energy Information Administration (EIA). If a Monday is a holiday the fuel price will be determined based on the price on the next business day. It applies only to the domestic line haul portion of the contractor’s rate.

C.2.12.2 Determination of Adjustment: The National Average diesel fuel price as published by the DOE, EIA on each Monday of the week (or the first working day after a Monday if the Monday falls on a federal holiday) will be used as a basis for determining the applicability of a Fuel Related Rate Adjustment Surcharge. The fuel adjustment will automatically apply to shipments picked up on or after the Tuesday following the Monday or Wednesday if Monday is a federal holiday.

C.2.12.3 The diesel fuel prices published by the EIA may be found via the following sources:

1. EIA Website: http://www.eia.doe.gov/

2. EIA Weekly Petroleum Status Report

3. EIA Hotline: (202) 586-6966

C.2.12.4 It is the Contractor’s responsibility to monitor diesel fuel prices via one of the sources identified above. The National Average diesel fuel price determined by the DOE, EIA on Monday of each week will serve as the basis for determining the entitlement to a Fuel Related Rate Adjustment, until Monday of the following week when the National Average diesel fuel price is published. The National Average fuel price and the actual pickup date for the shipment will determine if there is an entitlement to an adjustment and the amount of the adjustment. An adjustment is not applicable to any portion of transportation in which a surcharge or any other http://www.eia.doe.gov/ additional payment for fuel is already in existence. For example, portions of transportation to which the Bunker Fuel Surcharge is applicable.

C.2.12.5 Amount of Adjustment: The table below shall be used to determine the fuel related rate adjustment factor. No fuel adjustment will be granted when prices are within the neutral range (“0”). When the DOE, EIA fuel price exceeds the neutral range amount, the carrier will be entitled to the specific fuel rate adjustment percentage based on the applicable fuel cost per gallon range as indicated in the table. The increase applies to line haul transportation charges only unless otherwise identified in this solicitation.

Cost Per Gallon (in cents)

Rate Adjustment

250.0 and below 0

250.1 – 260.0 1

260.1 – 270.0 2

270.1 – 280.0 3

280.1 – 290.0 4

290.1 – 300.0 5

300.1 – 310.0 6

310.1 – 320.0 7

320.1 – 330.0 8

330.1 – 340.0 9

340.1 – 350.0 10

350.1 – 360.0 11

360.1 – 370.0 12

370.1 – 380.0 13

380.1 – 390.0 14

390.1 – 400.0 15

For Example, if the reported DOE, EIA National Average diesel fuel price is $2.73 the contractor would be entitled to a fuel related surcharge of 3%. For each 10 cents per gallon above 400.0 add 1%.

C.2.12.6 Readjustments: The surcharge is automatically recalculated and adjusted upward or downward depending on the DOE, EIA National Average price every Monday. In no case will the adjustment lower the original price offered in the contractor’s initial filing or response to a solicitation.

C.2.12.7 Billing Procedures: Contractor will clearly show fuel price adjustments on all paper and electronic commercial freight bills and Bills of Lading and invoices. The amount of any diesel fuel rate surcharge shall be shown as a separate item on the carriers’ invoice.

C.2.13 Type of Shipments. Shipments will consist of freight all kinds (FAK) (DOD unique number 999916), aircraft parts (NMFC011790), aircraft engines, I/C, radial cyl/jet prop type mtd on trailers/wheeled ship containers, (999901), engines, I/C, radial cyl/jet prop type o/t mtd on trailers/wheeled ship containers (999902), engines, steam/IC, NOIBN, mtd on trailers/wheeled ship containers (999903), engines, steam/IC, NOIBN, o/t mtd on trailer/wheeled ship containers (999904) motor vehicles (NMFC 190190, 190210), Army Tracked Vehicles (vehicles weight less than 40,000 lbs), (NMFC 145720), and hazardous material (NMFC various).

Note: Commodity codes 999901 and 999902 specifically identify jet engines.

C.2.14 Exclusions. The following movements and commodities are excluded from the scope of this contract:

1. Ammunition, explosives, or fireworks classified as Class 1, Div. 1.1, 1.2, 1.3, 1.5 or 1.6 as defined in 49 CFR Part 173.5.

2. Ammunition, explosives, or fireworks classified as Class 1, Div. 1.4, requiring a DOD Transportation Protective Service (TPS)

3. Ammunition weighing in excess of 200 pounds classified as non-sensitive Class 1, Divisions 1.4S

4. Missiles, bombs, projectiles or rockets to include inerts

5. Radioactive materials (Yellow-II & Yellow-III). Excepted packages (IAW 49 CFR

173.424) for radioactive instruments and articles may be shipped under this contract

6. Poison Inhalation Hazard (PIH), Class 2, Division 2.3 and Class 6, Division 6.1

(inhalation hazard, Zone A or B)

7. Hazardous waste

8. Narcotics and dangerous drugs

9. Etiologic agents, Class 6.2

10. Firearms and weapons to include fully automatic

11. Live animals

12. Bulk commodities

13. Human remains and biological specimen and samples

14. Coins

15. Precious metals

16. Currency

17. Refrigerated cargo

18. Food, fresh, frozen, or requiring refrigeration

19. Postage stamps or stamped envelopes

20. Postal Shipments

21. Surface Small Parcel

22. Air Small Parcel including World Wide Express (WWX) contract

23. Overweight Shipments – over 48,000 lbs (45,000 lbs for lowboy equipment)

24. Over-dimensional Shipments – exceeds 576 inches in length, 102 inches in width and/or exceeds 162 inches in height

25. Air Freight Shipments

26. Export/import shipments where contract for Ocean Transportation includes door to door service

27. Rail (not included TOFC and COFC)

28. Privately-owned vehicles (POV)

29. Direct Procurement Method (DPM) crated household goods and unaccompanied baggage

30. Vehicles in drive away and/or tow away service

31. Army tractor tanks and tracked vehicles (vehicle weight 40,000 pounds or more)

32. Shipments to and from Canada and Mexico

33. Shipments within the scope of other DOD transportation contracts as follows:

a. Defense Transportation Coordination Initiative (DTCI) contract shipments

b. Express small package shipments normally moved under the DOD Blanket Purchase

Agreements (BPA) under the GSA Multiple Award Schedule (MAS) Express Small Package contract

c. Advanced Traceability and Control (ATAC) Shipments

d. Shipments moving under the NAVXPRESS (local delivery) agreement are defined as:

Hampton Roads, i.e.: cities of Norfolk, Virginia Beach, Chesapeake, Portsmouth, Hampton, Newport News, Yorktown, Williamsburg, and Suffolk. These cities are all within an approximate 50-mile radius of the Norfolk Naval Base

e. Shipments moving under local delivery within a 60-mile radius of DDJF. This includes shipments going to Blount Island, FL, Mayport, FL, Cecil Field, FL, and Kings Bay, GA

f. Expedited LTL from NSY Portsmouth, VA

34. Shipments under military reserve training exercise IAW DTR, Part II, Chapter 201, Paragraph O

C.2.15 Contractor Furnished Resources. The Contractor shall provide all personnel, equipment, tools, materials, supervision and other items and services necessary to provide transportation services under this contract.

C.2.15.1 Equipment Requirements: The contractor shall provide the equipment necessary to satisfy the requirements of the PWS. The contractor shall ensure a mix of general and specialized equipment is available to meet the shipper’s requirements. The contractor may offer equipment substitutions. Equipment substitutions shall be approved by the shipper. There shall be no additional charge for tarping of 463L pallets when flatbed equipment is utilized in lieu of rollerbed equipment. Substitutions for the convenience of the contractor shall be done at no cost to the Government.

C.2.15.2 The Contractor shall provide at a minimum, one of the following types of equipment for the type of service requested by the shipper:

1. Less-than-Truckload (LTL) Van

2. Less-than-Truckload (LTL) Flatbed

3. Truckload (TL) Van

4. Truckload (TL) Van w/ Air Ride

5. Flatbed

6. Flatbed w/ Air Ride

7. Dropframe

8. Dropframe w/ Air Ride

9. Rollerbeds

10. Straight Truck

11. Removable Gooseneck

C.2.16 Contractor Equipment Pool. When requested, the Contractor shall establish an Equipment Pool at designated shipping activities (see Appendix F, Shipper Unique Requirements). The size of the pool is specified and shall depend on the shipper’s actual requirements. For shippers with no pool requirements, the Contractor may consider creation of one upon mutual agreement between the COR and the Contractor. Rates for detention at origin will not apply to pool equipment.

C.2.16.1 The size of the equipment pool may be adjusted by the shipper, based on traffic fluctuations, upon approval by the CO and/or the COR. Changes, as determined by the CO and/or the COR will be accomplished in accordance with the changes clause.

C.2.16.2 Contractors shall respond to minor pool allocation adjustment within 48 hours after notification.

C.2.16.3 The shipper will provide an area for the Contractor’s pool equipment.

C.2.16.4 Trailers that have been loaded and are awaiting pickup by the Contractor will not be considered part of the equipment pool inventory.

C.2.16.5 Contractors are required to establish equipment pools no more than two weeks after notification from the shipper.

C.2.17 Contractor Equipment Inspection. The Contractor shall furnish operable, clean, safe, odor-free equipment and shall permit all equipment provided to be inspected by the shipper at origin. The shipper will reject any equipment determined to be unsuitable or unsafe for the required transportation. The rejection of Contractor equipment shall not relieve the Contractor from meeting pickup, delivery or equipment pool requirements and the Contractor shall not be paid for any rejected vehicles.

C.2.18 DOD Driver Identification Requirements. Contractors shall ensure that drivers handling DOD shipments carry a valid driver’s license and medical qualification card, employee record card or similar documents, one of which shall contain the driver’s photograph.

C.2.19 Workload Estimates. The estimated volume in Attachment 2 of the solicitation was derived from the historical number of shipments within the past year and the estimated number of future shipments. The estimated volumes provided for the truckload non-dedicated traffic lanes are yearly volumes and when divided by 12 result in an estimated monthly volume. The monthly volume may vary by + or – 20% depending on individual shipping trends. Daily total orders for service exceeding 20% of the monthly volume will not be counted as shipment refusals should the Contractor be unable to accept the excess volume.

C.2.20 Contract Minimum Guarantees. The minimum order value for this Indefinite Delivery/Indefinite Quantity contract is established at $25,000 for the Base Year. The guaranteed minimum applies to the Base Year only. The guaranteed minimum does not apply to the Option Years. The guaranteed minimum is for the entire contract, not per region or lane.

The guaranteed minimum is satisfied when the contractor has been offered sufficient shipments to total $25,000 during the contract base year. The Government will issue orders for service to all contractors and track each contractor’s minimum guarantee until the minimum is met.

C.2.21 Rates. During the evaluation of all proposals received in response to the Government’s solicitation, individual lane rates will be considered proprietary information and not releasable.

After award, lane rates will not be considered proprietary information and will be available on-line, i.e. GFM, CAVS, etc. By submitting a proposal, the offeror agrees that any awarded rate is releasable. Rates that are not awarded will not be released and will remain proprietary.

C.2.22 Maximum Charge. In no case shall the charge for any shipment of lesser quantity from or to the same location requiring the same level of service and in the same shipping form be greater than the charge for a shipment of greater quantity of the same freight. Rates/charges shall regress or decrease from left to right as quantities increase.

C.2.23 Rate Reductions. The allowance of rate reductions will be the decision of the Contracting Officer (CO). Contractors who desire to reduce their rate(s) shall do so during the date and time specified by the CO. Contractors may reduce the rate for some or all lanes.

Contractors shall post/provide the reduced rate to the location/individual identified by the CO.

Contractors shall not forward their reduced rate to Government shipping activities or shipper personnel. The reduced rates will not be authorized for use until they have been accepted by the CO and a contract modification has been accomplished. Once a reduced rate is accepted, the Contractor may not revert back to the previous rate. Any rate increase is prohibited.

C.2.24 Transition to DTCI. During the course of this contract various shipping activities will transition to the Defense Transportation Coordination Initiative (DTCI) program. When this occurs, transportation services for that shipping activity will be provided under the DTCI contract. The STC Contracting Officer will provide advance notification of the transition when it becomes definitive and will accomplish a contract modification removing the applicable lane(s) from the contract. Transition of the lane(s) to DTCI will be at no cost to either party.

C.2.25 Voluntary Tenders. All STC eligible shipments originating at installations subject to the STC shall first be offered to STC contractors before moving via an alternate method.

Voluntary tenders are to be used only during contingency conditions or when shipment volume exceeds the STC contractor’s capacity. When it is necessary to use voluntary tenders, shippers must use the voluntary tender of an STC contractor unless a tender is not on file.

C.2.26 Surge/Contingency. When directed by the Contracting Officer, the Contractor shall support the requirements of mobilization, surge, contingency, natural disaster, humanitarian assistance support and similar CONUS unit movements and respond with required resources to meet the timeframes of surge/contingency requirements. The Contractor shall provide service 24-hours-a-day, seven days a week, including holidays.

C.2.26.1 This support shall be fulfilled through partnering with DOD facilities in the integration of contingency, surge and deployment requirements into the Contractors’ business commitment to make available Contractor assets to provide the necessary transportation services.

C.2.26.2 To meet the surge/contingency requirement at a DOD facility, the shipper will utilize all awarded Contractors; if the requirement exceeds the capability of the awarded Contractors, the Government reserves the right to use voluntary tenders on file with SDDC.

C.2.26.3 Contingency requirements may not be distributed evenly throughout the performance period. Rather, they are focused, sporadic events that can last a few weeks (in the case of providing disaster relief) to months (in the case of supporting a global conflict).

C.2.27 Security (Physical, Personnel, Information, Industrial, Anti-Terrorism and Force Protection Requirements).

C.2.27.1 General Security Information: The work associated with this PWS will be at the UNCLASSIFIED/FOR OFFICIAL USE ONLY level. No DD 254 will be issued on this contract. Classified access/information is not authorized in support of these deliverables by contract personnel. The Contractor shall not divulge any government information on shipments and details of shipments to outside agencies or companies not in direct support of the deliverables outlined in this contract without the express written consent of the US Government, specifically the USTRANSCOM or HQ SDDC Security Offices, OPSEC Managers, INFOSEC Manager or Public Affairs Office. The decisions of release will be approved/disapproved and the decision transmitted to the Contractor via the Contracting Officer’s Representative (COR) or the Contracting Officer (CO).

C.2.27.2 If the Government notifies the contractor that the employment or the continued employment of any contract employee is prejudicial to the interests or endangers the security of the United States of America, that person shall be removed and or barred from DOD installations and or worksites. This includes security deviations/incidents and credible derogatory information on contract members during the course of the contract period. The Contractor shall make any changes necessary in the appointment(s).

C.2.27.3 Non-Public Information/For Official Use Only Information. In performance of this contract, the contractor may have access to unclassified sensitive, non-public information or material goods. The contractor agrees (a) to use and protect such information from unauthorized disclosure in accordance with the FAR; (b) to use and disclose such information only for the purpose of performing this contract and to not use or disclose such information for any personal or commercial purpose; (c) to obtain permission of the Government PM (through the Operation Security, Information Security, Force Protection Personnel) before disclosing/discussing such information with a third party; (d) to return, upon Government request, any non-public, sensitive information no longer required for contractor performance; and (e) to advise the Government PM of any unauthorized release of such information. The Government does not currently require a non-disclosure agreement for this contract; however, in the event a non-disclosure agreement is required at a later date, the Contractor shall have applicable employees assigned to this contract execute a non-disclosure agreement for delivery to the Government. The Government will require contractor personnel to sign a non-disclosure statement to protect non-public information of other contractors and/or the Government. This material is also covered in Joint Operations Security Regulations and disclosure could result in non-punitive/punitive damages if the contractor is found negligent in release of information.

C.2.27.4 Security Regulation Compliance. The contractor shall comply with all security regulations and directives as identified herein and other security requirements in this contract specific to site locations of work. This includes all applicable bases covered and transited by the contract personnel associated with this contract.

C.2.27.5 Security Regulation Guidance:

Department of Defense (DoD):

Joint Publication (JP) 3-10 (Operation Security)

2000.16 (DoD Antiterrorism (AT) Standards) 5200.1-R (DoD Information Security Program) 5200.2-R (DoD Personnel Security Program) 5200.08-R (DoD Physical Security Program) 5220.22-M (National Industrial Security Program)

8500.1 (Information Assurance (IA))

2000.12 (DoD Antiterrorism (AT) Program)

8500.2 (Information Assurance (IA) Implementation)

DOD regulations found at:

http://www.dtic.mil/whs/directives/corres/pub1.html

Scott Air Force Base:

SAFB Instruction 31-101 (Installation Security Instruction) (Restricted publication. Sent only to .mil domains when forwarding. Not for public distribution.)

Executive Orders:

Homeland Security Presidential Directive (HSPD) number 12 (HAPD-12) signed 27 August 2004.

C.2.27.6 USTRANSCOM Force Protection (Industrial Security) Points of Contact:

Patrick Collins or Steven Strait 508 Scott Drive

TCJ3-FP

Scott AFB, IL. 62225 Commercial: 618-229-7349/8287 (respectively) Email at Patrick.Collins@ustranscom.mil or Steven.Strait@ustranscom.mil USTC FP Approval: Patrick Collins, 19 May 2009 No DD 254 is attached. Contract is UNCLASSIFIED USTC FP Tracking #: USTRANSCOM-FP-00010-09 http://www.dtic.mil/whs/directives/corres/pub1.html mailto:Patrick.Collins@ustranscom.mil mailto:Steven.Strait@ustranscom.mil

C.3 DESCRIPTION OF SERVICES

C.3.1 Traffic Award. In addition to applicable DOD transportation publications, Transportation Officers (TO)/Ordering Officers (OO), also known as shippers, will order service in accordance with the instructions and procedures established by the Contracting Officer as stated in the terms and conditions and Performance Work Statement of this contract.

C.3.1.1 By submitting an offer, the Contractor agrees to accept orders for service (OFS) on a routine basis within the estimated volume of traffic on each lane. The contractor agrees to dedicate adequate resources to satisfactorily perform those orders and to provide service on a nondiscriminatory basis between high volume and lower volume shipping activities. A Contractor who refuses an order is not eligible to satisfy the same order outside this contract, e.g., by voluntary tenders in SDDC’s Global Freight Management (GFM) system. A contractor shall provide written justification (email sufficient) to the shipper for any shipment refused.

During the Base Year, shipment refusals by the Contractor will be considered a completed shipment and will be applied to the Contractor’s minimum guarantee.

C.3.2 Orders for Services (OFS). An order for service (OFS) is a request from a shipper to the Contractor for service under the contract. The OFS may be verbal or in writing, subsequently followed by a Bill of Lading (BOL) prepared and tendered in hard copy and/or via EDI to the Contractor or Contractor's representative.

C.3.2.1 The Government will issue orders for service to the low cost contractor on individual lanes.

C.3.2.2 The Government reserves the right to issue orders for service to other than the low cost contractor on individual lanes in the following circumstances:

1. To satisfy minimum guarantees under the contract;

2. When the low cost contractor is not providing services in accordance with the

Performance Work Statement (PWS); and

3. When the Government places the low cost contractor in partial or total non-use.

(i) Partial Non-Use – The Contractor is placed in non-use on one or more lanes.

(ii) Total Non-Use – The Contractor is placed in non-use on all lanes.

C.3.2.3 When a Contractor is not providing services in accordance with the PWS.

1. If two (2) or more Service Exception Reports (SERs) are submitted in any given week or if five (5) or more SERs are submitted in any month by an installation, the shipper may place a contractor in partial non-use for a maximum of 30 calendar days and issue orders for service to the next low cost contractor.

2. When a trend develops or performance falls below the PWS standard, the Contracting

Officer (CO) will issue a Contract Discrepancy Report (CDR) to the Contractor. The Contractor shall respond to the CO within five (5) business days. The response shall be in writing and state the reason performance fell below the PWS standard, how performance will be returned to acceptable levels, when performance will be returned to acceptable levels and how recurrence of the problem will be prevented in the future. Failure to respond within the established time limit or failure to provide a response that adequately corrects the issues addressed in the CDR shall constitute sufficient justification for the CO to place the contractor in total non-use for a maximum of 30 calendar days. The CO may place a contractor in partial or total non-use while a CDR is being processed. Non-use will not exceed 30 calendar days. The CO’s action for resolution of a CDR is final.

Multiple CDRs may result in termination of the contractor from this contract and an unfavorable past performance rating in the Contractor Performance Assessment Reporting System (CPARS).

C.3.2.4 The Government may place a carrier in partial or total non-use for a maximum of 30 calendar days per occurrence under the following circumstances:

1. Shippers may place a Contractor in partial non-use if two or more SERs are submitted in any week or if five or more SERs are submitted in any month.

2. The CO may place a Contractor in partial or total non-use for failure to meet contract requirements.

3. The CO may place a Contractor in partial or total non-use while a CDR is being processed. If the CO’s action for resolution of a CDR is to place a Contractor in non-use, the Contractor will be placed in total non-use.

C.3.2.5 The Government reserves the right to utilize a Contractor in partial or total non-use in the event of a contingency, surge or other circumstances that may require the Contractor’s service. Contractors in partial or total non-use shall provide service if requested by the Government.

C.3.2.6 The Government reserves the right to cancel an order for service and order service from another Contractor when the Contractor initially offered the service does not accept the order within the time limits stated in this PWS.

C.3.3 Hazardous Materials (HAZMAT) Shipments. Commodities transported under this contract may include HAZMAT. The Contractor will be given advance notification for all HAZMAT shipments. Contractors shall comply with the following requirements:

C.3.3.1 All Contractors are expected to have the ability to transport HAZMAT. Drivers picking up HAZMAT shipments shall, upon request, be able to present HAZMAT certification and/or license at time of pickup to shipper personnel. The Contractor shall comply with the following:

1. Contractors transporting DOD HAZMAT shipments shall be DOT registered and an approved SAFER carrier.

2. Contractor shall be DOT HAZMAT qualified.

3. Driver must be able to read and speak the English language sufficiently to converse with the general public.

4. Driver shall have the proper vehicle and HAZMAT endorsements annotated on the

Commercial Drivers License.

5. Driver shall have a current DOT medical card.

6. Driver shall posses a picture identification (affiliated with carrier).

7. Driver shall provide an appropriate vehicle pre-inspection checklist.

8. Driver shall meet Transportation Security Administration (TSA) criteria and mandated requirements.

C.3.3.2 When placarding is required by CFR Title 49, supplements thereto, or revisions thereof, the shipper will provide the Contractor with the appropriate placard for the shipment and the Contractor shall post the placard.

C.3.4 Order Acceptance and Pickup. The Contractor shall acknowledge the shipper’s order for services (OFS) within two (2) hours and provide the availability or non-availability of equipment to meet the shipper’s requirements. When the shipper identifies a shipment as “urgent,” the Contractor shall acknowledge the shipper’s request within one (1) hour and provide the availability or non-availability of equipment to meet the shipper’s requirements. Failure to respond in the timeframes stated above will result in the issuance of a shipment refusal.

C.3.4.1 Information to be provided to the Contractor on the BOL: Shipments by type, BOL/TCN number (or other unique identifier), commodity, desired delivery date, special services required, ultimate destination, labeling requirements and the consignee’s telephone and fax number if available.

C.3.4.2 The Contractor will be given advance notification of Hazardous Material (HAZMAT) shipments. In the event the contractor is not given advance notification prior to pickup, the contractor will not be charged with a shipment refusal and the appropriate accessorial charges may apply.

C.3.4.3 In accepting an OFS, the Contractor agrees to provide equipment and personnel within twenty-hours (24) hours of receipt of a routine order, except as may be required in Appendix F.

C.3.4.4 When a shipper requires the Contractor to provide equipment and personnel within four

(4) hours of receipt of an urgent order, an accessorial charge of [PUC] per shipment will be added.

C.3.4.5 Contractors shall provide justification for shipments refused. Contractor may be placed in partial or total non-use for excessive shipment refusals. During the Base Year, shipment refusals by the Contractor will be considered a completed shipment and will be applied to the Contractor’s minimum guarantee.

C.3.5 Pickup/Delivery During Other Than Normal Shipper Operating Hours (HOL/SAT/PUD). When the shipper/receiver requests pickup/delivery service during other than the normal operating hours published in the TFG or Appendix F and the Contractor agrees, the Contractor shall provide such service subject to the following charges:

C.3.5.1 The rate for pickup or delivery service on non-business days will be assessed an accessorial charge of [HOL/SAT (1)] per hour or fraction thereof for each driver furnished subject to a minimum rate of [HOL/SAT (2)] per driver furnished. The rate for pickup or delivery services outside of normal operating hours will be [PUD] per hour or fraction thereof for each driver furnished.

C.3.5.2 Hourly rates shall be computed from the time the driver(s) arrives at the point of pickup/delivery until completion of loading/unloading and the shipper/receiver releases the driver(s). Shipper/receiver will note the time required for the pickup or delivery on the BOL.

Charges for this service will be billed directly to the party requesting the services.

C.3.6 Prearrange Scheduling. Upon request of shipper, receiver or others they designate, the Contractor shall, with 24 hours or more advance notification, without additional charge, prearrange schedules with the designated shipper/receiver for arrival of vehicles for loading/unloading (this requirement is not to be construed as Day/Time definite service). The Contractor shall accept oral or written requests for prearranged scheduling.

C.3.7 Vehicle Furnished but Not Used (VFN). When a Contractor, upon the shipper’s request, furnish a vehicle to load a shipment and through no fault of the Contractor the shipper cancels loading of the vehicle, the Contractor will be paid [VFN] for truckload (TL) and Less-than-truckload (LTL) for each vehicle furnished and not used or the minimum line-haul rate, whichever is less.

C.3.7.1 VFN charges shall not apply if the shipper provides the Contractor a notice of cancellation 24 hours before the scheduled time of pickup or when the Contractor is given a notice of cancellation prior to actual dispatch of the vehicle from the Contractor’s terminal. VFN shall not apply when, after inspection, the shipper determines the vehicle is unsafe.

C.3.7.2 VFN shall not apply when a Contractor’s vehicle is inbound with a loaded trailer that is scheduled for outbound loading from the same installation and the shipper cancels loading of the vehicle at least 24 hours before the scheduled pickup.

C.3.7.3 Claims for VFN shall be supported by shipper’s certification of cancellation. Claims and documentation shall be submitted within 5 business days after receipt of shipper’s certification of cancellation.

C.3.8 Subcontracted Equipment. The prime Contractor shall ensure that its subcontractor(s) can provide adequate verification of their affiliation with the prime Contractor named on the

BOL.

C.3.8.1 A copy of the appropriate subcontract or detailed pick-up sheets tailored to the specific load and truck in question shall be included in all subcontracted vehicle(s) and shall be available for inspection. Subcontractors without a copy of the appropriate subcontract or pick-up sheets in the cab may be rejected by the shipper. In such instances, VFN shall not apply.

C.3.8.2 In lieu of having the required documentation physically in the vehicle, the Contractor may email and/or fax the required information to the shipping activity during normal business hours and prior to pickup.

C.3.9 Safety and Security Inspections. By the submission of its offer, the Contractor agrees to permit unannounced safety and security inspections of its facilities, terminals, employees and operating procedures by DOD civilian, military personnel or DOD contract employees. The Contractor further agrees to have visitor control procedures in place to verify individuals requesting access to DOD shipments and shipment information in-transit or in terminals.

Verification will be made by contacting the Operations Center, Carrier Assistance Hotline 800- 524-0331 or 757-878-8141. Further, the Contractor agrees not to disclose any information to unauthorized persons concerning the nature, kind, quantity, destination, consignee or routing of any protected commodities shipment tendered to it.

C.3.10 Refusal of Unsafe Shipments. The contractor shall refuse shipments that they deem to be unsafe or that may otherwise damage either the Contractor’s property or another consignor’s shipment(s). Refusal of unsafe shipments will not have a negative impact on the Contractor.

C.3.11 Capacity Load. A shipment is considered a capacity load (also known as “loaded to full visible capacity” or “loaded to capacity”) when it occupies the full capacity of a vehicle. In order for a shipment to be classified as a capacity load, the BOL shall be annotated as "Vehicle Fully Loaded" by an authorized Government representative. The Contractor having full knowledge of the shipment will initial the BOL at the time of pick-up. Shipments are to be considered capacity loads if:

1. The shipment occupies 90% of the cargo carrying capacity of the vehicle; or

2. Because of unusual shape or dimensions, or because of the necessity for segregation or separation from other freight, requires the entire…