Question_ _Answer_Matrix_(12_-_14_Mar_Questions)(1).pdf

# Comment Justification US Gov't Response 272 APPF (Afghan Public Protection Force) We have received no guidance on compliance, and we need the government's support. There is still a lack of clarity on expense, operations and liability impact - our view is that there should be a government- to-government negotiated common rate. We believe this should be a pass-through cost.

Ability to negotiate is not reasonable / logical Command and Control of operations are not clear Additional Costs are not clear and billing process not defined RDDs will be an issue due to lack of command and control USC Contract will need logical updates

At the present time, only the NDN linehauls may be impacted since Pak GLOC linehauls will be priced later. The most current information we have indicates there will be a phase in period after 20 Mar.

US Govt. prime contractors conducting distribution and who desire mobile convoy security must contract directly with the APPF via the APPF business office. If that prime contractor wishes to use a Risk Management Company (RMC) to provide oversight, mentoring and training to the APPF guard force (peace of mind and confidence until APPF is proven), then the prime contractor will need to contract directly with the RMC. Either way, the prime must have a contract with the APPF and the RMC must be registered with the MOI/APPF in order to operate. The Minister of the Interior approved an MOI interim transition plan on 14 Mar 2012 which allows for interim licenses and allows current operations to continue. This gives the current operating PSCs (~34), who are currently registered with the APPF/MOI and undergoing the negotiation process for their RMC licensing, the opportunity to complete the transition over designated time period. Each PSC will receive a letter outlining terms and conditions which will be different for each PSC based on when they register and where they are in the negotiation and requirements process.

Convoys operators and contract negotiations were given around ~90 days to transition via the interim licensing while development implementing partners and contracts were given closer to a month. The documentation will be prepared and issued to the PSCs (~34) approximately 17/18 Mar 2012. The prime contractors will need to engage their PSCs to determine the details of their transition. Should the situation change or the cost basis to use APPF cause the price of convoy security to increase significantly, we will allow re-pricing of the NDN linehauls.

273 Cyber Security. Cyber security needs further work. We have strong commercial cyber security measures in place, but to the extent we need to make any improvements to our systems to meet government requirements, kindly request that you confirm that such improvements will be reimbursable

The Government is not asking for you to make improvements to your existing cyber security.

We are asking you to submit a report with your proposal comparing your present cyber security to an existing commercial standard. Therefore there is no need for any Government reimbursement. Within the PWS there is a requirement to report suspected cyber intrusions.

274 NDN. We believe it is not prudent to move away from the 6-month refresh practice, as rates and tariffs change frequently on the NDN and are not under carriers' control. Uzbek rail tariff is still not established, and any NDN cargo moving outbound/westbound via Uzbekistan route has to move via rail- we cannot price this at present.

The Government will initially keep the language stating rates for NDN routes are "refreshed" at 12 months (the same as all other rates will be refreshed). However, if our initial rate evaluation and market research indicates the NDN route pricing is volatile, we will consider changing the refresh to 6 months prior to awarding contracts.

COMMENTS MATRIX

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COMMENTS MATRIX

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275 Pak GLOC. Still closed, so cannot be priced. If/when the GLOC does reopen, we request that any additional fees imposed by the Pakistan government be reimbursable as pass-through.

We will not ask for pricing on the Pak GLOC until it opens. Until we know what, if any, additional charges and terms are imposed by the Pakistan government we cannot establish the pricing structure.

276 Piracy security reimbursement [Armed Vessel Security]. General Fraser recently reiterated his personal commitment and TRANSCOM's commitment (dating back to General McNabb) to reimburse for anti-piracy security team costs. It should be noted that carriers have differing standards as to what constitutes a voyage -- some carriers are round-the-world (RTW) service, others in pendulum (back and forth between US and Middle East) service, and all call a variety of different ports -- in short there is tremednous variability on what constitutes a voyage and how long it lasts. We remained concerned about the potential commoditization of security that is implied by having security become a CLIN subject to bidding and potential rejection

Carriers will have an opportunity to explain their routings/type of service and how that impacts their Armed Vessel Security pricing during negotiations. The Government must determine a price is fair and reasonable in order to accept it.

277 Service Contract Act. Disagree with designated labor categories. We still have concerns on implementing this requirement, to include how to insure compliance with wage rate for "owner-operators."

The Government has provided all the information you need to comply with the Service Contract Act. In addition, DOL will be providing a "Compliance Guide" tailored for this contract. TCAQ has engaged with DOL to discuss carriers challenges to certain identified labor categories and their applicability to service under USC. We recommend carriers with questions and concerns also contact DOL. Any changes to the applicable labor categories will be made prior to final proposal revisions.

278 Pass-Through of Motor Carrier Fuel Surcharge Adjustment To The Cost Bearer -- Request that the contracting officer grant an exception as authorized under that clause.

Justification provided via separate communications with TCAQ and

TCJA.

The Government is reviewing the requirement of this clause against information provided by carriers.

COMMENTS MATRIX

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279 Please confirm that the clock for free time/detention in Afghanistan begins to run in accordance with 6.C.1.1, and will continue to run DURING ALL PERIODS until the clock is stopped by one of the 4 enumerated events identified in PWS 3.G.4.1.4. Recommend adding the following language to eliminate the potential conflict/ambiguity between Exigency and Non-Exigency area detention provisions: “Daily detention charges will continue to accrue during all periods from the expiration of free time until 2359 hours on the day that the earliest one of the following occurs:

1. The date the Contractor regains physical possession of the container.

2. The date the Contract is notified in writing or via the US Government designated system that the container is available for pick up at the Contractor’s point of delivery or other mutually agreed location and the container is available when the Contractor arrives for pick up;

3. The date the Contracting Officer issues a not-to-exceed delivery order under 6.C.3.1 to purchase the container;

4. The date the daily detention charges have accrued for 350 days on a dry container or 700 days for a reefer in accordance with 6.C.3.2; or

Unlike in non-exigency areas, the intent of exigency area detention is that it will run from vessel discharge on a “no fault” basis – meaning that free-time/detention will run during all periods, including inland transit, customs delays, force majeure delays, etc. – since the free time period was extended significantly. Additional language in Section 6.C.1.1 is necessary to clarify this point because Section 6.B provides that “All other terms and conditions of this contract not in conflict with this section shall apply to Exigency Areas.

Yes. The free time/detention in Afghanistan begins to run in accordance with 6.C.1.1, and will continue to run during all periods until the clock is stopped by one of the four enumerated events identified in PWS 3.G.4.1.4.