HTC711-12-R-W006 _Performance_Work_Statement.pdf

HTC711-12-R-W006

HTC711-12-R-W006, PERFORMANCE WORK STATEMENT

25 July 2012

(as of 12 October 2012)

TABLE OF CONTENTS

1. General

1.1. Scope

1.1.1. Place of Performance

1.1.2. Period of Performance

1.1.3. Hours of Operation

1.2. Safety and Security

1.2.1.

1.2.2.

OSHA Compliance

Additional Regulations Compliance

1.2.3. Death or Injury to Personnel

1.3. Damage and Loss Reports

1.4. Quality and Performance

1.4.1. Contractor Quality Control, Reporting And Records

1.4.1.1. Quality Control Plan

1.4.1.2. Problem/Failure

1.4.1.3. Use of Quality Control Performance Information

1.4.2. Government Quality Assurance

1.4.2.1 Performance Measurement Approaches

1.4.2.2. Visits

1.5. Insurance Requirements

1.5.1. Cargo Insurance

1.5.2. Liability, Pollution and Environmental Insurance

1.5.3. Policy Notification

1.5.4. Written Notice

2. Government Responsibilities

2.1. DLA Energy Americas East (AME) Inventory Manager Responsibilities

2.1.1. Cargo Routing

2.1.2. Order Services

2.1.3. Contact Information

2.1.4. Acknowledge Receipt

2.1.5. Measure, Verify, And Document Cargo

2.1.6. Notify Receiving Activities

2.1.7. Authorize Access

2.1.8. Supply Required Forms

2.1.9. Provide A Safe Berth

2.1.10. Inspect And Accept Equipment

3. Contractor Furnished Equipment and Crew

3.1. Barge and Tug Requirements

3.1.1. Barge

3.1.1.1. On-Call Tow

3.1.2. Barge Equipment

3.1.2.1. Cargo Pumping System

3.1.2.2. Cargo Tank Stripping System

3.1.2.3. Water Stripping System

3.1.2.4. Gauge Point Marks and Calibration

3.1.2.4.1. Calibration Charts

3.1.2.5. Stainless Steel Tanks

3.1.2.6. Steel Valves

3.1.2.7. Split Rails

3.1.2.8. Sectional Fuel Delivery Hose

3.1.3. Tug

3.2.

3.2.1.

Barge Initial Inspection and Acceptance

Performance Objective – Pre-Service Inspection

3.3. Maintain, Position, and Operate Equipment

3.4. Provide A Licensed Tankerman

4. Contractor Tasks and Duties

4.1. Equipment Maintenance

4.1.1. Temporary Patching/Repairs

4.1.2. Performance Objective – Continuous Service

4.1.2.1. Scheduled/Required Maintenance

4.1.2.2. Out-Of-Service Notification

4.1.2.3. Long-Term Out-Of-Service Notification

4.1.2.4. Substitute Equipment

4.1.3. Failure to Perform

4.2.

4.2.1.

Cargo Delivery Services

Loading or Discharging Cargo

4.3. Transit Times

4.4. Responsibility for Cargo

4.4.1. Loss Or Contamination Liability

4.4.2. Gauging

4.4.3. Carry Away Liability

4.4.4. Performance Objective - Cleaning To Prevent Contamination or

Degradation of Cargo

Cleaning To Prevent Contamination or Degradation of Cargo

4.5. Reporting and Communication

4.5.1. Performance Objective – Daily Equipment Position and Status Reports

4.5.2. Readiness Notice

4.5.3. Performance Objective - Cargo Documentation

4.6. Responsibility for Damage to Government Property

4.6.1. Damage Due To Contractor Negligence

4.6.2.

4.7.

Prevent Damage To Facilities

Service Delivery Summary

5. Reimbursable Expenses

5.1. COR Approval

5.2. Out-of-Pocket Expenses-Tolls and Charges

5.2.1. Assist Tugs

5.2.2. Icing Condition Expenses

5.2.3. Barge Cleaning Expenses

5.3. Bunker Fuel Reimbursement

5.4 On-Call Additional Tankerman Expenses

6.

Appendix A

Appendix B

Appendix C

Appendix D

Definitions

Historical Location Information

Minimum Requirements for the Preparation of Barge Cargo Tanks

Applicable Forms

Estimated Barge Movements

1. General.

1.1. Scope. This contract covers the transportation of Department of Defense-owned bulk jet fuel (JP5 and JP8), marine diesel (F76), and commercial (Jet-A) by tug and barge between all ordered United States ports and points on inland waterways in Delaware, Virginia, Maryland, Pennsylvania, New Jersey, Connecticut (for deliveries to New Haven), Massachusetts (for deliveries to Quincy), Maine (for deliveries to Portland) and Washington DC, including those specified below. Contractor’s operations shall be on the Chesapeake Bay, the Delaware Bay, coastal waterways, inland waterways and their tributaries. Movements between the Delaware River and Chesapeake Bay shall be accomplished by traversing the C&D Canal. This performance shall be provided by barge/tug systems compliant with the coastwise laws of the United States.

1.1.1. Place of Performance. A listing of loading/discharging locations is at Appendix A. This list is not all-inclusive. Loading/discharging points may change as fuel procurement award patterns change.

1.1.2. Period of Performance. The period of performance is a base period with four one-year option periods.

Exercise of the option years will be at the sole discretion of the Government. The period of performance is as follows:

Base Period 1 January 2013 – 30 September 2013 First Option Period 1 October 2013 – 30 September 2014 Second Option Period 1 October 2014 – 30 September 2015 Third Option Period 1 October 2015 – 30 September 2016 Fourth Option Period 1 October 2016 -- 30 September 2017

1.1.3. Hours of Operation.

Contractor supplied equipment and crews shall be available exclusively to the Government at all times, 24 hours per calendar day, 7 calendar days per week, for transporting cargo to and between the points stipulated or as may be directed by the Government, or to stand by at an origin, destination, or intermediate point as necessary and specified by the Government. Delivery schedules will be provided by the Government each business day.

1.2. Safety and Security.

1.2.1. OSHA Compliance.

The contractor shall establish and maintain an effective and comprehensive safety program that complies with the provisions of the Occupational Safety and Health Act and the National Institute of Occupational Safety and Health.

The contractor shall acquire, maintain, and require the use of safety equipment, personal protective equipment, and devices necessary to protect employees. The contractor shall be responsible for compliance with the Occupational Safety and Health Act of 1970 and for penalties resulting from violations.

1.2.2. Additional Regulations Compliance.

The contractor shall maintain and operate all equipment in accordance with applicable U.S. Coast Guard, federal and state laws, and military regulations, including applicable regulations of the Commander, DLA Energy, and shall also be in compliance with all of our fuel supply terminal requirements for barge tows. All contractors will comply with the provisions of the Jones Act. Compliance with the following regulation is mandatory:

DOD 4500.9R, Defense Transportation Regulation (DTR). Note: DOD 4500.9-R can be accessed through the following web site, www.transcom.mil. Follow the link to Defense Transportation Regulations. If you have any questions or need assistance in obtaining access to the link, contact DLA Energy-NCID at (703)767-9289.

1.2.3. Death or Injury to Personnel.

In all instances where contractor’s employees are absent due to injury or death or for purposes of receiving medical attention due to an injury during or arising from performance under this contract, the contractor shall submit a full written report of the facts and the extent of such injury to the Contracting Officer's Representative (COR) within 24 hours following the occurrence of such injury or death. In addition, the contractor shall submit to the COR a written accident report of each and every accident occurring to the contractor’s employees within 24 hours after the occurrence. If an investigation of the accident is conducted, the contractor shall assist the investigator in securing statements from its employees and shall make pertinent records available to the investigator and to the COR.

1.3. Damage and Loss Reports.

During operation under this contract, in all instances where cargo, contractor’s equipment, or private or Government property is damaged, lost, or pilfered while in the care, custody, or possession of the contractor or through handling by the contractor’s employees, agents, or subcontractors, the contractor shall submit a full written report of the facts and the extent of such damage or loss to the COR within 24 hours following the occurrence or discovery. Details should include how the damage occurred, investigation detail, and an estimate of how and when reimbursement for damages will occur.

1.4. Quality and Performance.

The Government and the contractor will operate as a team to assure a high standard of quality is established and maintained in the performance of the contract. This will include government measurement and surveillance of the contractor’s performance to document and recognize instances of superior contractor performance, and to identify areas falling short of required performance standards early so that the contractor and the Government may work together to identify causes and eliminate problems before they become serious. The Government’s Performance Measures and the Contractor’s Quality Control (QC) program requirements are described below.

1.4.1. Contractor Quality Control, Reporting and Records.

1.4.1.1. Quality Control Plan.

The contractor shall establish and maintain a Quality Control Plan (QCP) to ensure quality service is provided throughout the terms of the contract. The contractor shall submit a proposed QCP as part of its technical proposal.

The QCP should include as a minimum a description of how the contractor intends to meet the performance objectives, provide cargo free of contamination or degradation, and should also identify those areas the contractor sees as critical to the customers for this contract, how it will monitor quality performance in those areas, and how it will maintain or exceed customer expectations, including identification and correction of problems. The contractor shall also include as part of his technical proposal a copy of the official U.S. Coast Guard Oil Spill Response Plan Letter of Certification in lieu of the original Oil Spill Response Plan. However, upon request by the government, the contractor must provide a copy of the original Oil Spill Response Plan. The Government will identify deficiencies noted during the technical evaluation to the contractor, who will be responsible for making the necessary corrections.

1.4.1.2. Problem/Failure.

The contractor shall self-identify any problem or failure that may impact contract performance. In accordance with its QCP, the contractor should notify the COR/AME immediately of the problem, but follow-up in writing within two (2) business day to the COR/AME a succinct written plan of action of contractor self-identification or awareness of a potential or real problem, failure or deficiency. The contractor shall detail the methodology for correcting the problem or deficiency in the plan of action, and provide an assurance of the specific time required to bring performance back to acceptable quality levels, as applicable.

1.4.1.3. Use of Quality Performance Information.

Information from these reports will be compiled cumulatively to provide annual reports of past performance for use in past performance evaluations for future awards.

1.4.2. Government Quality Assurance.

Final determination that the services rendered are conforming is solely the responsibility of the Government. The Government Quality Assurance Surveillance Plan (QASP) is not a substitute for contractor quality control. The Government will monitor the contractor’s performance in accordance with the QASP.

1.4.2.1. Performance Measurement Approaches.

The Contracting Officer (CO) and the COR will monitor contractor performance and compliance with the terms and the conditions of the contract in accordance with the QASP. The COR, in conjunction with the CO, will conduct periodic meetings with the contractor to discuss operations, and problem areas.

1.4.2.2. Visits.

Government personnel, including but not limited to the COR and Government’s Quality Assurance Representative (QAR), may make announced periodic visits to the contractor's facilities to observe daily operations. Announced visits will follow a 1-calendar day prior notice to the contractor. During these visits, the contractor shall provide knowledgeable personnel to tour and inspect the areas. The CO and/or his representative will make periodic inspections.

1.5. Insurance Requirements.

1.5.1. Cargo Insurance.

The Contractor shall provide cargo insurance, at its own expense, as required by law, at least equal to the value of the cargo transported.

1.5.2. Liability, Pollution and Environmental Insurance.

Contractor shall provide at its own expense, the appropriate amount of insurance as required by law.

1.5.3. Policy Notification.

The contractor shall provide copies of cargo, public liability, and pollution liability insurance certificates to the CO prior to contract award and each time there is a change in coverage or policy renewal.

1.5.4. Written Notice.

The Contractor shall furnish a written notice to the CO 30 calendar days in advance of the effective date of any reduction in, or cancellation of the cargo, public liability, or pollution liability insurance policies.

2. Government Responsibilities.

2.1. DLA Energy - Americas East (AME) Inventory Manager Responsibilities.

The AME Inventory Manager will perform the following duties. The contractor will be provided the name and contact information for the AME Inventory Manager at time of award.

2.1.1. Cargo Routing.

Issue cargo routing instructions to shippers.

2.1.2. Order Services.

Order all loading and unloading services and schedule all movements.

2.1.3. Contact Information.

Furnish the contractor with the names and appropriate telephone numbers, of persons designated as the Government’s ordering, inspecting, and receiving representatives upon award of the contract.

2.1.4. Acknowledge Receipt.

Acknowledgement of receipt shall be completion of the DD-250-1 and barge ullage sheet consisting of location, date of arrival, barge name/number, and cargo number and shall provide for signature by both a contractor representative and a designated Government representative (See Appendix C.)

2.1.5. Measure, Verify, and Document Cargo.

Arrange for measurement, verification, and documentation of all cargo remaining aboard barges at loading and unloading ports and, in accordance with Section 4.4.3 Carry Away Liability, deduct from the next monthly invoice, the value of cargo in excess of ten barrels carried away per barge. Charges would apply only when barge equipment is changed or product carried changes.

2.1.6. Notify Receiving Activities.

The Americas East (AME) Inventory Manager will notify the receiving activities of the scheduled arrival of the barge, including estimated date and time of arrival, barge name/number, and cargo number. However, this action does not relieve the contractor of their responsibility to provide Notice of Readiness (NOR) at a minimum of 24, 12, and 3 hours as required by paragraph 4.5.2.

2.1.7. Authorize Access.

Arrange for an authorized representative of the contractor to have access to all facilities to load and discharge barges as necessary.

2.1.8. Supply Required Forms.

Supply the contractor with all forms that the contractor is required to file with DLA Energy-AME (See Appendix C).

2.1.9. Provide a Safe Berth.

Provide a reachable and safe berth at all loading and discharging ports for the vessel to be afloat at all times, free of dockage, wharfage, pilotage, toll, and port charges. Tows needing to remain at the pier, past loading or discharge will only be allowed with the coordinated request and agreement of the loading/discharge location and DLA Energy- AME Inventory & Traffic Manager.

2.1.10. Inspect and Accept Equipment.

DLA Energy-AME Quality Assurance Representative will conduct pre-award and/or pre-service inspections for contractor equipment (See paragraph 3.2).

3. Contractor Furnished Equipment and Crew.

The contractor shall furnish all supplies, materials, equipment, and personnel necessary to perform the services incidental to the operation of the equipment listed below:

3.1. Barge and Tug Requirements.

The contractor shall own the equipment performing the transportation service or the contractor shall have the equipment under long-term lease for the duration of the contract period to include the base year and all option years.

If equipment is under lease, the contractor shall provide lease agreement or signed letter of intent to lease with their proposal. The contractor shall also provide the following:

3.1.1. Barge.

Three tank barges, each having a total calibrated capacity of not less than 20,000 barrels (and not more than 30,000 barrels) with inland water way capability, and one tank barge having a total calibrated capacity of 35,000 barrels (and not more than 50,000 barrels) with ocean going capability. Barges must be double hulled and be no older than 15 years old at anytime during the life of the contract. Contractor is required to comply with the maximum safe navigable draft and length overall for all loading and discharge locations. The locations with restrictions include DFSP North landing, Virginia Beach, VA; DFSP Jacksonville, Burlington, NJ; DFSP Anacostia, Washington, DC;

Langley AFB, VA; Port Mahon, DE; and DFSP Quincy, MA.

The following restrictions apply:

DFSP North landing, Virginia Beach, VA: Maximum draft 9ft.; Barge length 270 ft., width 40 ft. Barge must be able to turn around on the waterway.

DFSP Jacksonville, Burlington, NJ: Barge must arrive on high tide.

DFSP Anacostia, Washington, DC: Maximum draft 12ft. 6in.

Langley AFB, VA: High tide deliveries only. Maximum draft 8ft. Barge length 300 ft., width 40 ft. Some areas have less than 6ft. of water at the bow when berthing next to the pier.

Port Mahon, DE: Maximum draft 7ft. 6in. Barges may only enter on high tide.

DFSP Quincy, MA: Deliveries will be made during daylight hours only.

Contractor should note that the State of Massachusetts requires an escort tug when transiting Massachusetts waters, specifically through Buzzards Bay and Cape Cod Canal. This service should be taken into consideration when developing rates.

The contractor is responsible for all costs associated with positioning the equipment at the initial loading point.

3.1.1.1. On-Call Tow.

These services will be ordered separately as priced within the Schedule of Supplies/Services. The Government will have the option to add additional tows or terminate existing on-call tows as traffic patterns change. The tows shall have a total calibrated capacity of not less than 20,000 barrels (and not more than 30,000 barrels). The contractor must provide for additional tows when requested by the Government with a minimum of 15 calendar days notification. The equipment ordered will be in service on a month-by-month basis thereafter. The Government may terminate any on-call tow with a minimum of 15 calendar days notification if that tow is no longer required. Should the Government terminate a tow within the 15 calendar days notification the contractor will be eligible to claim for cleaning and positioning costs associated with bringing the tow into service. Barge and tug requirements will be consistent within the parameters as provided in paragraph 3.1. The equipment must meet all Government inspection requirements addressed in paragraph 3.3 and must remain in dedicated service until released back to the contractor.

Dedicated service is defined as the start and end date of the requested service. Payment will not commence until the tow is made available at the initial loading point, as specified in the executed contract modification, and will end on the last business day of requested service upon cargo discharge at the destination point. Any subsequent changes to schedule details (e.g., date, loading port) required for expedience of the Government shall occur only upon execution of contract modification by the CO. Otherwise, the contractor is responsible for all costs associated with positioning the equipment at the initial loading point. Payment for the on-call services will be in accordance with the prices listed in the Schedule of Supplies/Services.

3.1.2. Barge Equipment.

The contractor and its equipment must currently possess a USCG certificate for approval to operate in US coastal and inland waterways. The contractor shall provide a copy of the USCG certificate with their proposal.

3.1.2.1. Cargo Pumping System.

A cargo pumping system with necessary hoses and connections capable of completely discharging and stripping the cargo tanks without outside power or assistance from the shore. The average load/discharge rate for all destinations shall be a minimum of 2,000 barrels per hour (BPH) at a pressure of 100 pounds per square inch (PSI) from the barge manifold including quantities stripped from cargo tanks. The one exception to the average discharge rate is DFSP Anacostia who can only receive at a pumping rate of 1200-1500 BPH. This effectively means that the total cargo shall be loaded/discharged as a minimum, in time represented by the total cargo stated in barrels divided by 2,000 barrels per hour.

3.1.2.2. Cargo Tank Stripping System.

An independent cargo tank stripping system (free from use of barge pumps, lines, or hoses) capable of stripping all but a maximum of 2 barrels of product per cargo tank, not to exceed 10 barrels for the entire barge. The discharge rate during tank stripping operations may be less than the minimum rates stipulated above.

3.1.2.3. Water Stripping System.

An independent water stripping system (free from use of barge pumps, lines, or hoses) capable of removing all water from each cargo compartment. In the event that a large amount of water is discovered on the barge, the contractor and government QAR will investigate to determine the source and cause of the water. If the water source is determined to be from the shore tank, the Government will be responsible for the cost of removal. If the source is determined not to be the cause of the Government, such as intake of seawater, then the contractor shall assume removal costs.

3.1.2.4. Gauge Point Marks, Strapping Tables, Trim Charts and Calibration.

Permanent gauge point marks with reference height stenciled to the deck or compartment hatch, certified strapping tables not exceeding eight years in age (provided that no structural alterations have been performed subsequent to the calibration date), trim correction charts and legible draft markings. Barges shall be restrapped/recalibrated as needed at the contractor’s expense during the contract period.

3.1.2.4.1. Cargo Strapping Tables and Trim Correction Charts.

The contractor shall provide copies of the cargo strapping tables and trim correction charts to the Government QAR upon request at loading and discharge points. A packet containing all strapping tables and trim correction charts pertaining to all equipment used in the performance of this contract shall be available on each tug or barge. The contractor shall provide a list showing the maximum load capacity of each barge at safe draft, updated whenever equipment or regulation or traffic area depths change. The contractor shall develop and maintain a barge gauge history for Government use or inspection in comparing barge loaded figures to shore loading figures. Anytime the physical structure of a barge is changed, due to damage or equipment modification, the barge must be strapped again, and a new set of strapping tables and trim correction charts provided to the Government, at no cost to the Government.

3.1.2.5. Stainless Steel Tanks.

Barges offered for consideration that are constructed of either stainless steel, carbon steel that has been epoxy coated with a non-coal tar based grade of epoxy, or uncoated mild steel tanks are acceptable for performance consideration under the provisions of this contract.

3.1.2.6. Steel Valves.

Steel valves shall be an integral part of all barges used in the performance of this contract.

3.1.2.7. Spill Rails.

Spill rails are required on all barges.

3.1.2.8. Sectional Fuel Delivery Hose.

When required, the contractor shall provide 200 feet of sectional fuel delivery hose (ship or dock hose) and various coupling attachments necessary for over-the-water fuel loading to ships or other marine vessels. The contractor is liable for any damage or loss resulting from faulty equipment or caused by contractor negligence.

3.1.3. Tug.

The tugs offered under this contract shall be suitable in design and power to properly navigate in the traffic areas designated herein. Tugs used for inland or inner-coastal waterway movements shall have between 800-1200 hp, and tugs used for ocean going movements shall have between 1800-2400 hp. The tug used must be able to meet nominal summer and winter requirements as per USCG regulations for the designated traffic areas.

3.2. Barge Initial Inspection and Acceptance.

The contractor shall provide tug and barge equipment that conforms to the specifications of this contract (see Section 3.1 Barge and Tug Requirements), and that passes the Government’s loading inspection. Equipment will be inspected at a common port that is both agreeable to the contractor and the Americas East (AME) QAR.

Government inspection and acceptance of the contractor’s equipment is a condition precedent to the Government’s obligation to pay the monthly rates set forth in the Schedule of Supplies/Services. The monthly rates do not go into effect, and the Government incurs no obligation to make monthly payments, until the Government’s Quality Assurance Representative (QAR) has approved the contractor’s equipment for loading in accordance with Section 3.2.1.

3.2.1 Performance Objective - Pre-Service Inspection.

Not later than 15 calendar days prior to the initiation of transportation services, the contractor shall make its tugs and barges available for inspection and acceptance by the Government at the loading point specified by the COR. If the contractor fails to provide conforming equipment by this deadline, the COR will notify the CO for further resolution.

Tows must be presented cleaned, gas free, and free of temporary patches. The contractor shall provide a valid marine chemist certificate to the Government QAR prior to inspection. Contractor shall ensure that all cargo and vent lines have been drained of previous cargo, and flushed with hot water. Cargo and vent lines shall be blown dry prior to inspection. Cargo tanks and bulkheads must be free of water, loose rust, sludge, mud, silt, and foreign objects. The contractor is responsible to take a sample of scale from inside cargo tank(s) and have it tested to determine the potential effects of the corrosion and gum characteristics on the cargo to be loaded. Contractor shall present scale sample certificate of analysis to the Government QAR for review. The contractor shall prepare the barge for inspection at its own expense. Acceptance of the equipment by the Government shall in no way be construed to attest to the seaworthiness of the barge or to other requirements of the U.S. Coast Guard. The Government's QAR will issue written confirmation of acceptance of equipment through the COR. Once inspected, the tug and barge equipment will be considered to have entered into dedicated service on this contract.

3.3. Maintain, Position, and Operate Equipment.

The contractor shall maintain, clean (including slop tanks), repair, position and operate its equipment to ensure its performance under the contract, including providing fuel to operate the tug and barge pump engines and shall provide all crew living provisions. The contractor shall pay all associated costs and expenses except those outlined under Section 5, Reimbursable Expenses.

3.4. Provide a Licensed Tankerman.

The contractor is responsible for following all governing regulations and statutes in providing a licensed tankerman at all loading and discharge points identified in the PWS or hereafter required by the government. The licensed tankerman must gauge barge tanks jointly with the Government QAR or Government Representative and make a record of quantities on required forms including Barge Ullage (DD Form 2479), or suitable commercial equivalent.

As directed by the COR, the contractor must furnish any additional shore tankerman as required. The optional on-call additional licensed tankerman expense will be paid as a reimbursable expense in accordance with Paragraph 5.4.

4. Contractor Tasks and Duties.

4.1. Equipment Maintenance.

4.1.1. Temporary Patching/Repairs.

The Contractor may use temporary repairs only until the barge can return to a point where permanent repairs can be made. Barges shall not be accepted for loading if there is evidence of concrete patches or other temporary repairs.

Contractor is responsible to notify the Government QAR and/or COR if any such repairs have been attempted/made.

4.1.2. Performance Objective – Continuous Service.

The contractor shall provide 24-hour, seven calendar days a week availability of equipment and crew to the Government for use under this contract. Contractor may be out of service no more than 10 cumulative calendar days per year.

4.1.2.1. Scheduled/Required Maintenance.

Maintenance or repair periods shall not exceed 24 hours in duration, except when required for U.S. Coast Guard inspections or when mutually agreed between the Government and the contractor (e.g. periodic maintenance). The contractor shall provide notice of scheduled maintenance to the COR with expected duration of maintenance not less than 24 hours before the date it is scheduled.

4.1.2.2. Out-Of-Service Notification.

The contractor shall notify the COR immediately in the event that the contractor is unable to provide service due to unscheduled non-availability of equipment or crew, and must include the location of the equipment, cargo status (loaded or empty), reason for being out-of-service, and the expected duration of disability (Temporary Out-of- Service or Long-Term Out-of-Service) in the notification.

4.1.2.3. Long-Term Out-Of-Service Notification.

In the event that the notification is for Long-Term Out-Of-Service, the contractor shall provide a substitute for any or all of the equipment or crew designated for use under this contract within 24 hours (unless the Contracting Officer elects to waive the continuous service requirement for a longer period) and shall specify details of the substitution in writing. The specification shall include reason for the request for the substitute equipment and if repair/maintenance action is required, provide in-depth description of repairs to be made, facility and location of repair action, and estimated date equipment shall be returned to use. If carry-away cargo is present in the barge, the CO will be notified by the COR and will negotiate a settlement.

4.1.2.4. Substitute Equipment.

When contractor owned or long-term leased equipment is Out-of-Service Long-Term, the contractor shall substitute owned or leased equipment. The COR, upon inspection by an DLA Energy QAR must approve, in advance, substitution of equipment, provided the substitute equipment is equivalent to the contractor's original (permanent) equipment (i.e., meets the specifications and requirements in Section 3, Contractor Furnished Equipment and Crew).

The Government reserves the right to inspect the substitute equipment prior to placement into service. The contractor shall prepare the substitute equipment for inspection as stipulated in Section 3, Contractor Furnished Equipment and Crew, when so required. The substitute equipment provided by the contractor shall be at no additional cost to the Government. The equipment shall be substituted at a point where the original equipment went off tow, or at another mutual agreed upon point, approved by the COR. The original equipment must be returned to service as soon as practical unless otherwise requested by the contractor and approved by the COR. Barge equipment substituted for the convenience of the contractor is not entitled to cleaning expenses as a result of the substitution. The contractor shall include in the request for substitute approval the estimated fuel burn and transit times of the substitute equipment.

4.1.3. Failure to Perform.

Should the contractor be unable to perform or choose not to provide substitute equipment or crews for all calendar days beyond the first 24-hour period the contractor’s equipment is out-of-service, the Government may take a pro rata deduction from the contractor’s monthly invoice for each hour beyond the first 24-hour period. If the Government procures substitute equipment or crews from an alternate source to meet movement requirements the contractor is unable to meet, the Government may take an additional deduction from the contractor’s monthly invoice for the Government’s excess re-procurement costs, if any. Excess re-procurement costs will be assessed only for those calendar days that the contractor’s equipment remains out-of-service

The sample Excess Re-procurement calculation, shown below uses the following information:

Contract rate: $10,000/ calendar day; $416.66/hour

Sample Calculation – Excess Re-Procurement Costs

Date and Time Event Formula Calculation Cost

05 January

10:00 a.m.

Contractor equipment goes Out-Of-Service (OOS)

None. Within 24-hour period.

None.

06 January Contractor equipment remains OOS, unable to

Calculation begins; 24-hour

10:00 provide substitute equipment. window has expired.

06 January

11:00

Decision made to procure substitute equipment for period 08 to 13 January.

$20,000/ calendar day x 6 calendar days ($833.33/hour)

$120,000 Cost

08 January

08:00

Substitute equipment begins loading.

08 January

15:00

Contractor equipment submitted for inspection prior to return to service.

08 January

20:00

Contractor equipment returned to service.

Deduction from invoice. 58 hours x $416.66/hr

(10:00 on 06 January through 20:00 on 08 January)

$24,166.28

Re-procurement costs. 12 hours x $416.67/hr*

(*rate is calculated by subtracting the contract equipment rate from the substitute equipment rate, e.g.

$833.33-$416.66)

$5,000.04

TOTAL PRO-RATA DEDUCTION FOR FAILURE TO PERFORM $29,166.32

4.2. Cargo Delivery Services.

4.2.1. Loading or Discharging Cargo.

Upon arrival at a loading or discharge port, the contractor shall load or discharge any quantity of cargo, entire or partial, as specified by the COR / Americas East (AME) Inventory Manager.

4.4. Responsibility for Cargo.

(The forms are located in Appendix C. All forms shall be submitted to the QAR.)

4.4.1. Loss or Contamination Liability.

The contractor shall sign the DD Form 250-1, Tanker/Barge Material Inspection and Receiving Report, as its receipt for the Government property it received for transportation. The contractor assumes full liability for, and agrees to reimburse the Government for, the actual loss or contamination to the cargo it receives for transportation, except when the contractor would not be liable under the provisions of the Harter Act, 46 USC 30701 – 30707. 4.4.2.

4.4.2. Gauging.

Gauging of the vessel(s) is performed jointly. A Government representative must witness gauging of the vessel(s).

Tankerman, and/or third party inspection personnel are responsible to perform gauging of the vessel. Gauging equipment used for quantity determination must be in proper serviceable condition. The contractor shall ensure that responsible vessel personnel are readily available for gauging operations so as to not unduly delay release and departure of the equipment. The contractor shall ensure that a barge ullage form (DD Form 2479) is annotated at both the loading and discharge locations. The form may be annotated by the QAR, but in this case the contractor will verify and agree with gauge figures and readings annotated.

4.4.3. Carry Away Liability.

The contractor shall be liable for all measurable product carried away due to failure of the contractor’s equipment to discharge the cargo completely, excluding product remaining in equipment lines, manifolds, and sumps (10 barrels before line drop). Liability is based on the procurement and transportation cost of the cargo carried away and is to be deducted from the contractor’s monthly invoice. However, the contractor is not liable for carry-away cargo if the Tanker/Barge Material Inspection and Receiving Report (DD Form 250-1) and the Barge Ullage Report (DD Form 2479) establish that the cargo carried away remains on board when the same equipment is utilized for subsequent loading. Measurable cargo carried away at the end of the contract period shall be deducted from the contractor’s final monthly invoice.

4.4.4. Performance Objective – Cleaning To Prevent Contamination or Degradation of Cargo.

The Contractor shall ensure that all equipment is clean and free, as contained in the rules of MIL-STD 3004 (C), from any condition that would contaminate or degrade cargo. The Government will reimburse the contractor for cleaning expenses only when the contractor can demonstrate that the equipment was contaminated due to the fault of the Government, the cleaning is directed by the Government to change grades of cargo transported, or when directed by the Government to complete cleaning for routine maintenance. Cleaning reimbursement shall be paid as an out-of-pocket expense. Failure to provide equipment clean and free of any contaminates more than four times annually will result in a performance failure.

4.4.4.1. Minimum Requirements for the Preparation of Barge Tank Cargo Tanks.

The minimum requirements for the preparation of barge cargo tanks can be found at Appendix B.

4.4.4.2. Contamination or Degradation Liability.

If contamination or degradation of Government cargo occurs due to the contractor’s failure to properly maintain its equipment, the contractor shall be liable to the Government for replacement costs and/or associated costs with returning the cargo to specification.

4.5. Reporting and Communication.

The contractor shall maintain contact with the COR, the various consignors, consignees, and the Government QAR to ensure prompt and efficient cargo movement, and shall provide position and status reports and communication regularly to the COR and others, as required. The COR can be contacted at the following:

DLA Energy

DLA Energy-AME (Houston, TX) 713-718-3883

Emergency - If unable to reach the regional office, contact

DLA Energy Command Control Center

703-767-8420

4.5.1. Performance Objective – Daily Equipment Position and Status Reports.

The contractor shall transmit daily facsimile or electronic mail Equipment Position and Status Reports to the COR and applicable Inventory Managers reflecting the position and status of the barge by 0900, Central Time, plus or minus one hour. Failure by the contractor to provide daily status reports within the required timeframe more than once per month will result in a performance failure.

4.5.2. Performance Objective - Readiness Notice.

Prior to arrival, the contractor must provide a Notice of Readiness (NOR) at a minimum of 24, 12, and 3 hours.

Furthermore, the contractor shall provide a NOR to load/discharge to designated loading and discharging officials immediately upon the tow’s arrival at the loading/discharging terminal of the port complex. In the event the tow is not allowed to immediately proceed to the loading/discharging berth, the contractor shall communicate the NOR to the terminal by fax, email, or telephone to document its arrival. Vessel Captain is responsible to also annotate NOR in the Captain’s or vessel log. The NOR is the official method of determining when laytime for the tow begins.

4.5.3. Performance Objective - Cargo Documentation.

The Contractor shall maintain a copy of all loading documents, including Barge Ullage (DD Form 2479) or acceptable commercial equivalent form, and DD Form 250-1, for Government use at each discharge port. Failure of the contractor to present the listed forms to the discharge port on more than two occasions annually will result in a performance failure.

4.6. Responsibility for Damage to Government Property.

4.6.1. Damage Due To Contractor Negligence.

The contractor shall be responsible for unresolved damage claims and must assume liability for damage to Government property resulting from negligence on the part of the contractor. The contractor must also reimburse the Government for actual expenses incurred by the Government due to breakdown of contractor’s equipment or delay due to negligence of the contractor, which prevents prompt acceptance or delivery of intended cargo. The contractor shall also be responsible for lost cargo in route, caused by equipment failure, such as a spill. Lost cargo shall be measured and documented on DD Form 250-1 and barge ullage sheets.

4.6.2. Prevent Damage to Facilities.

The contractor shall be responsible for removing equipment when directed by the loading/discharging terminal or paying for damages caused as a direct result of contractor’s decision to remain at pier side during extreme weather conditions or national disasters.

4.7. Service Delivery Summary (SDS)

The SDS represents important contract objectives that, when met, will ensure contract performance is satisfactory.

Although not all PWS requirements are listed in the SDS, the contractor is fully expected to comply with all requirements in the PWS. The SDS serves as a point of reference for the contractor and Government to measure the services provided. The CO will issue a Contractor Discrepancy Report when the contractor’s performance is unsatisfactory. The contractor shall reply in writing within 24 hours, giving reasons for unsatisfactory performance and identifying the corrective action(s) to be taken to prevent recurrence.

Performance Objective

PWS

Paragraph

Performance Thresholds

Pre-Service Inspection 3.2.1. 100% of equipment available for inspection NLT 15 calendar days prior to initiation of transportation services.

Continuous Service 4.1.2 NMT 10 cumulative calendar days out of service per year

Cleaning to prevent Cargo Contamination

4.4.4 NMT 4 failures per year to provide equipment clean and

free of contaminates

Daily Position Reports

Receipt of Daily Position Reports

4.5.1 NMT 1 failure per month to provide daily status reports within the required timeframe

Cargo Documentation DD Form 2479 & DD Form 250-1

4.5.3 NMT 2 failures per year to present the listed forms to the discharge port

5. Reimbursable Expenses.

5.1. COR Approval.

All reimbursable expenses must be approved in advance by the COR. The government will not be liable for any taxes, fees, tariffs, licenses or other costs or expenses associated with performance on this contract other than those specifically referenced herein.

5.2. Out-of-Pocket Expenses - Tolls and Charges.

Out-of-Pocket expenses are expenses that are additional cost to the contractor, but still required to accomplish the work. They are in addition to the normal cost of the contract, and not included in the root contract payment. Out-of- Pocket expenses are defined as tolls, assist tugs, barge cleaning expenses, and additional tankerman. Bunker Fuel is a reimbursable expense, but tracked as a separate expense, other than Out-of-Pocket. The Government will provide a reachable safe berth for the contractor’s equipment at all loading and discharging ports free of dockage, wharfage, pilotage, and fleeting tolls, and other port charges. If such charges accrue through no fault of the contractor or its employees, the contractor shall initially pay the charges and submit the paid bill to the Government for reimbursement in conjunction with its next regular monthly invoice. The contractor shall make diligent effort to safely avoid the need for fleeting wherever possible to limit costs to the Government.

5.2.1. Assist Tugs.

The contractor shall be responsible for the expense of assist tugs used in transporting, berthing or maneuvering the vessel to/from docks or through locks except when such assist tugs are required by local harbor regulation or other lawful authority. The Government will reimburse the contractor for use of assist tugs only under those conditions and on the same basis as described in Section 5.2, Tolls and Charges.

5.2.2. Icing Condition Expenses.

The contractor shall obtain approval in advance from the COR before operating in icing conditions, which is defined as 3 inches or more on the body of water. If a contractor operates in icing conditions, the Government will pay the contractor an additional 50% of the pro-rated daily rate per barge for every calendar day the contractor operates in icing conditions. Payment of the additional amount shall only be paid upon the contractor providing documentation by the United States Coast Guard of the icing conditions.

5.2.3. Barge Cleaning Expenses.

Barge cleaning expenses claimed in accordance with Paragraph 4.4.4.1 shall be approved in advance by the COR.

The COR may direct which cleaning facility is to be used. Authorized cleaning expenses shall be billed for reimbursement as described in Section 5.2, Tolls and Charges.

5.3. Bunker Fuel Reimbursement.

Reimbursement for Bunker Fuel consumed in performance under the contract shall be paid on an actual cost basis.

The contractor shall submit the completed Barge Information Transit Spreadsheet (Attachment 1) with their proposal that identifies tug speed (in knots), estimated fuel burn (in gallons), for round trip between the loading and discharge points shown in Appendix A of the PWS. The basic reimbursement will be based on barge movements (loaded or empty) as provided for in the PWS (Reference Attachment 1). The contractor may decide refueling location based on location convenience. The refueling port selected shall have competitive fuel prices for the local area. Fuel invoices provided by the contractor will be validated by DLA Energy using current Platts Oilgram pricing. Any repositioning or additional movement of contractor's equipment to a cleaning facility occasioned by its having been contaminated through no fault of the contractor will be calculated and reported separately.

Repositioning costs for cleaning not associated with contamination by others will not be reimbursed.

5.4. On-Call Additional Tankerman Expenses.

When the contractor determines a need for an Additional Tankerman, a request to add a tankerman shall be made to the COR and approved prior to use. Once approved, the contractor must furnish documentation to show actual expenses for the additional tankerman services before reimbursement will be made.

6. Definitions.

Carryaway Product -- Cargo exceeding 10 barrels per barge remaining in cargo tanks after discharge operations and before line drop.

Contracting Officer's Representative (COR) -- An individual designated and authorized in writing by the Contracting Officer to perform specific technical or administrative functions.

Innage -- The portion of a cargo tank that is full of fuel.

Ullage or Outage -- The portion of a cargo tank that is not filled with fuel.

Licensed Tankerman -- Contractor personnel licensed by the U. S. Coast Guard to be responsible for all loading and discharging operations.

Out-Of-Pocket -- Local port fees or similar charges incurred. Such fees or expenses may include those for dockage, wharfage, pilotage, fleeting, tolls, port charges, assist tugs when required by local harbor regulation, bunker fuel reimbursement, or other lawful authority, or cleaning charges.

Out-Of-Service -- Any non-availability of tug or barge equipment or crew, such as to preclude meeting a Government requirement. It may be either Temporary (normally less than 24 hours), or Long-Term (24 hour or greater) non-availability of equipment or crew.

Quality Assurance Representative (QAR) --Government Representative with duties to perform, inspect, administer, and/or advise on work concerned with assuring the quality of products, equipment, and services acquired and used by the Government

Appendix A: Historical Location Information. The DLA Energy Americas East Office, Houston, TX (hereafter referred to as AME) Loading/Discharging (Receiving) locations shown below are provided as historical information.

However, this list is not all-inclusive. Loading/Discharging points may change as fuel procurement award patterns change.

Listing of Loading and Discharge Ports - (subject to product grade changes)

Jet-A Loading Ports

Baltimore, Maryland

Jet-A Discharge Ports

Delaware Storage and Pipeline Company

Port Mahon, Delaware

ST Services Incorporated

Anacostia, District of Columbia

Interstate Storage and Pipeline Corporation

Burlington, New Jersey

JP8 Loading Ports

Fleet and Industrial Support Center

Yorktown, Virginia

Defense Fuels Supply Point

Portland, Maine

JP8 Discharge Ports

Interstate Storage and Pipeline Corporation

Burlington, New Jersey

ST Services Incorporated

Anacostia, District of Columbia

Defense Fuels Supply Point

New Haven, Connecticut

Portland, Maine

JP5 Loading Ports

Craney Island, (Portsmouth, Virginia)

JP5 Discharge Ports

Naval Air Station

Patuxent River, Maryland

Defense Fuels Supply Point

Quincy, Massachusetts

Naval Operating Base

Norfolk, Virginia

ST Services

Virginia Beach, Virginia

Norfolk Naval Shipyard

Portsmouth, Virginia

Newport News Shipyard

Newport News, Virginia

F76 Loading Ports

Craney Island, (Portsmouth, Virginia)

F76 Discharge Ports

Naval Operating Base

Norfolk, Virginia

Norfolk Naval Shipyard

Portsmouth, Virginia

Newport News Shipyard

Newport News, Virginia

Appendix B: Minimum Requirements for the Preparation of Barge Cargo Tanks

Excerpt from MIL-STD-3004C

TABLE XXVIII. Minimum requirements for the preparation of barge cargo tanks 1, 2

LAST

PRODUCT

CARRIED

PRODUCT TO BE LOADED

Leaded gasoline, aviation

Gasoline, automotive

Turbine fuel, aviation, kerosene type F-34, F-35, F-44

Diesel fuel oil - distillate

Diesel fuel oil -residual

Lube oil

Leaded Gasoline, Aviation

A A B B B B

Gasoline, Automotive

A A B B B B

Turbine fuel, aviation, kerosene TYPE, F-34, F-35, F-44

A A A A A E

Diesel fuel oil -distillate

C C A A A E

Diesel fuel oil -residual

NO LOAD NO LOAD NO LOAD D A E

FAME (Fatty Acid

Methyl Esters or

Diesel blended

5 vol % FAME (B5 or less)

C

A,C,F

C,F

FAME (Fatty Acid

Methyl Esters or

Diesel blended

15 vol % FAME (B15 or less)

F

FAME (Fatty Acid

Methyl Esters or

Diesel blended

15 vol %FAME (B15 or higher)

Lube oils NO LOAD NO LOAD NO LOAD D A E

NOTES:

1 Legend for vessel cleaning requirements broken out into different Types are as follows:

2 In all cases, cargo tanks must be free of water, loose rust, sludge, mud, silt, ballast residue, etc.

Type Cleaning Requirement

A Drop…