GPCIII_PWS_3_Dec_12_ DRAFT .pdf

Source Selection Sensitive Information - See FAR 2.101 and 3.104

Unclassified / For Official Use Only

PERFORMANCE WORK STATEMENT

FOR

GLOBAL POV CONTRACT (GPC) III

3 Dec 12

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PERFORMANCE WORK STATEMENT

1.0 DESCRIPTION OF SERVICES

1.1. Background / General. As a component of the United States Transportation Command (USTRANSCOM), the

Military Surface Deployment and Distribution Command (SDDC) manages Department of Defense (DoD) sponsored shipments of privately owned vehicles (POVs) belonging to military service members and DoD Civilian employees. This requirement is for complete transportation and storage services as detailed in this Performance

Work Statement (PWS).

1.2. Scope of Work. The contractor shall provide all personnel, supervision, training, and equipment necessary to perform all tasks as identified in the PWS for shipments and storage of POVs globally. The contractor shall assume all responsibility, liability, and costs for receipt/delivery, processing, and transportation of the POV from point of receipt to final delivery. The contractor's responsibilities include, but are not limited to: (1) operating multiple vehicle processing centers (VPCs), preparing POVs for shipment, and ensuring all necessary agriculture and customs clearances are accomplished; (2) arranging for and/or providing inland and ocean transportation of the

POVs; (3) providing Intransit Visibility (ITV) of POV shipments; (4) storage of POVs; and (5) resolving POV loss and/or damage claims.

1.3. Contractor Duties

1.3.1. Contractor Transition

1.3.1.1. The contractor shall accept and transfer all paper and electronic data files and POVs (VPCs and storage) in possession of the outgoing contractor as directed by the Contracting Officer no later than 90 days after contract commencement.

1.3.2. Contractor Liability

1.3.2.1. Contractor shall be liable for all loss and/or damage to POVs or Government cargo from the point of POV turn-in until POV delivery to the customer unless caused by acts of God, acts of the public enemy, acts of public authority, or inherent nature or vice of the cargo. In addition, for the contractor to claim any of the aforementioned exemptions, the contractor must prove it was free from negligence.

1.3.2.2. The contractor shall deliver the POV or Government cargo in the same condition as tendered by the customer. If the POV or cargo is damaged or lost, the contractor is liable for loss and/or damage of the POV or cargo up to the fair market value. Fair market value is the value of the POV according to the NADA Official Used

Car Guide. For POVs shipped to the United States, the NADA Official Used Car Guide for the region in which the claim is filed shall be used. For POVs shipped to OCONUS destinations, the NADA Official Used Car Guide at the

United States port from which the POV was shipped shall be used. If the POV is not in the NADA Official Used

Car Guide, the fair market value will be the retail price for the most comparable POV appearing in the guide.

1.3.2.2.1. The contractor shall establish and operate a claims and payment process in accordance with the PWS requirements in paragraph 1.3.11 below.

1.3.2.3. In the context of litigation from third-parties, the contractor agrees to hold the government harmless.

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1.3.2.4. The contractor may not unilaterally take any action to restrict service by the use of any forms, waivers, notices, conditions, VPC display signs, tags, stickers, or similar documents or devices in its dealings with service members, unless the Contracting Officer has given advance written approval. The contractor shall not introduce any forms, waivers etc. that attempt to limit the contractor's liability for loss, damage, or otherwise attempt to change any terms of the contract.

1.3.2.5. Notice. Pursuant to the Contract Disputes Act, the Government has six (6) years from the discovery of the loss or damaged cargo, to file a claim with the contractor. However, the Government will take all reasonable steps to provide notice of loss as soon as it is discovered.

1.3.3. Facilities

1.3.3.1. The contractor shall operate Vehicle Processing Centers (VPCs) and Quality of Life Sites (QoLs) in accordance with Appendix A & B. CONUS facilities will be contractor-owned/contractor-operated (CO/CO).

OCONUS facilities may be CO/CO, Government-owned/contractor-operated (GO/CO), or Government-owned/Government-operated (GO/GO). The construction, upkeep, purchase, lease or rental of any commercial structure, land, or equipment for CO/CO facilities will be the responsibility of the contractor. Occasionally, exceptions to normal working hours will be required and arranged by the COR.

1.3.3.1.1. The contractor shall provide office space, including office furniture and equipment, for each on-site

COR(s) assigned to a VPC as designated in Appendix A. In addition, storage space sufficient for active/inactive files maintained by the COR shall be provided. Office furniture includes a desk with locking drawers (or a separate locking file cabinet), an office chair, and two (2) additional reception chairs. The contractor shall also provide all office equipment, services, and supplies to include but not limited to: a computer with internet access, printer, scanner, fax and telephone, postage, a commercial shredder and/or shredding services, office storage boxes, file folders, and overnight parcel service. Maintenance of equipment is the responsibility of the contractor.

1.3.3.1.2. All VPCs shall have a toll-free telephone number or foreign equivalent with an informational recording when customer representatives are not available stating operating hours, office location, and documents required for turn-in and/or pick-up of a POV.

1.3.3.1.3. All VPCs and QoLs shall have a furnished reception area to include clean and operational public restrooms. The contractor shall provide a lock box in the reception area for customers to place comment cards.

Only the COR shall have access to the lock box to remove the cards. For locations where a COR is not on-site, the locked box shall be delivered to the COR on a weekly basis (unless otherwise agreed), and shall include pre-paid postage for return of the empty box to the VPC. The contractor shall allow customers access to a computer (during normal business hours) with internet capabilities when necessary to process additional documentation.

1.3.3.1.4. An exterior sign shall be visibly posted at the entrance of each VPC and QoL stating the responsible military command and the contractor company name. Placement of exterior signs shall be consistent with local

Government policy. Additionally, a sign shall be located in the customer waiting area stating procedures for processing claims with an emphasis on the customer’s right to file a claim directly with the contractor. The sign design(s) must be approved by the Contracting Officer prior to installation. Signs must be installed by the VPC/QoL implementation date.

1.3.3.1.5. The Government may add, delete, or direct relocation of CO/CO and/or GO/CO VPCs/QoLs as necessary.

1.3.3.2. The contractor shall be responsible for the purchase, lease, or rental of all enclosed facilities required for the storage of POVs at locations determined by the contractor.

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1.3.4. POV Turn-In Procedures

1.3.4.1. The contractor shall accept POVs as authorized on the customer’s orders, contingent upon the POV being safe and operable, having required fuel levels, and complying with the Personal Property Consignment Instruction

Guides - Volumes I and II.

1.3.4.2. The contractor shall require the customer to present a government/state-issued picture identification, a copy of the orders (including amendments), proof of vehicle ownership (copy of title or current registration), written approval from leasing or lien-holder company authorizing export, and a Power of Attorney and/or Letter of

Authorization (for designated agents not identified on the orders). For customers assigned to an embassy, consulate, or mission, the contractor shall contact the appropriate U.S. Department of State Despatch Agent for movement instructions. Questions concerning eligibility to turn-in a POV should be directed to the COR. Copies of all documentation presented by the customer shall be maintained in a file along with all pertinent contact information, to include unit and home addresses, telephone numbers, email addresses, and any information to contact the customer at destination. Orders showing entitlement shall be scanned and maintained electronically. The

Government shall have access to all files on demand.

1.3.4.3. The contractor shall accomplish a thorough joint inspection using DD Form 788 or a commercial equivalent (subject to approval by the Contracting Officer) which will be used to determine loss and/or damage between POV turn-in and pick-up. Failure to note exceptions due to the cleanliness of the POV does not provide relief from liability. If necessary, the contractor may wash the POV or require the customer to clean the POV prior to processing.

1.3.4.4. The contractor shall inventory all authorized loose accessories to be shipped with the POV on the inspection form and ensure all items are present at pick-up.

1.3.4.5. If a dispute occurs during the joint inspection, the contractor shall immediately notify the COR for an independent assessment. Upon completion of the inspection, the contractor shall give the customer one legible copy of the inspection form and the contractor’s claims instructions. The contractor shall provide the customer with the date the POV will be available for pick-up and instruct the customer how to obtain information regarding the POV status. If the contractor detects any mechanical problems after the joint inspection but before the POV leaves the

VPC, the COR and the customer shall be notified immediately. If the contractor fails to conduct a joint inspection and/or provide the customer a copy of the inspection form, the contractor will be liable for all loss and/or damage noted at pick-up.

1.3.4.6. The contractor shall coordinate with the local Installation Transportation Officer (ITO)/Traffic

Management Office (TMO) to arrange appointments for turn-in/pick-up as required. When the ITO/TMO notifies the contractor a POV is ready for turn-in, the contractor shall contact the customer within 24 hour to make arrangements for turn-in. When a POV is ready for delivery to a QoL site, the contractor shall contact the

ITO/TMO within 24 hours to make arrangements for pick-up. On occasion, the COR may direct the contractor to accept/release the POV directly from/to the ITO/TMO.

1.3.5. Transportation

1.3.5.1. Required Delivery Dates (RDDs) will be established using the transit times in Attachment X. The RDD will be the date the POV is turned-in plus the applicable transit time. RDDs for door-to-door shipments and large-scale moves will be determined on a per move basis.

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1.3.5.2. The contractor shall perform all required agriculture inspections, certifications, and customs clearances in accordance with applicable laws and regulations. The contractor shall deliver hardcopy customs documentation to

US Customs to obtain validation stamps when required. The contractor shall be liable for all fines and penalties resulting from improper processing of customs clearance forms.

1.3.5.3. No drive-away or tow-away service shall be used except for roll-on/roll-off port operations or in instances involving inoperable vehicles.

1.3.5.4. The contractor shall accept any changes in final destination as directed by the Government.

1.3.5.5. The contractor shall execute door-to-door shipments when directed by the Government. These shipments will be initiated via an e-mail from the SDDC GPC Program Management Office. POV processing, other than notification, shall be in accordance with 1.3.4. All necessary contact and logistical information for door-to-door transportation services will be provided by the SDDC GPC Program Management Office.

1.3.5.6. Prices for large volume point-to-point shipments will be negotiated and executed via modification.

1.3.6. POV Storage

1.3.6.1. The contractor shall store POVs when the customer provides written authorization from the respective military service. POVs will be turned-in, picked-up, and processed at VPCs and transported to the storage facilities.

The contractor shall prepare vehicles for storage in accordance with the vehicle manufacturer’s recommendations in effect at the time of storage. POVs shall be washed at the storage site prior to being placed into storage and shall be fitted with car covers during storage. Movement of POVs from one storage facility to another is permissible at no cost to the Government and shall be documented in the POV file.

1.3.6.2. The contractor shall maintain the operability of the POV while in storage. Stored POVs shall be driven no more than 0.5 miles per month unless approved by the COR. The contractor shall repair minor mechanical subsystems, such as batteries, belts, hoses, etc., at no cost to the customer up to a $1,000.00 aggregate per authorized storage period. Any additional repairs in excess of the $1,000.00 limit must be approved by the COR and customer.

The customer is responsible for all repair costs in excess of the $1,000.00 limit. The contractor is not liable for any degradation due to the customer’s unwillingness to maintain the POV in storage. The contractor shall notify the

COR and customer of all repairs within one week of the repair(s) performed.

1.3.6.3. The contractor shall provide repair estimates and obtain written authorization from the COR and customer prior to conducting any major mechanical repairs necessary to maintain operability. A second estimate shall be provided upon request from the customer or COR. Major mechanical repairs shall be at the customer’s expense.

The contractor is not liable for any degradation due to the customer’s unwillingness to maintain the POV in storage.

1.3.7. Notification

1.3.7.1. Pick-up Notification for Shipped POVs.

1.3.7.1.1. The contractor shall notify the customer of the date the POV will be available for pick-up. Notification shall be sent via mail and email with read receipt at least two (2) days prior to the date the POV will be available for pick-up. In addition, the contractor shall notify the customer by telephone if there is a problem with the POV, e.g., inoperable or damaged, and shall describe the situation in the notifications. In areas dependent upon the military postal system, the contractor may provide the notification cards or letters to the COR for mailing through the military postal system.

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1.3.7.1.2. On the twenty-first (21st) day after a POV is available for pick-up, the contractor shall mail a certified letter with confirmation receipt stating abandonment procedures will begin if their POV is not picked up within forty-five (45) days of the date the POV was available. The certified letter shall include a Release Document for

Unclaimed Property.

1.3.7.1.3. On the forty-fifth (45th) day after a POV is available for pick-up, the contractor shall mail a certified letter with confirmation receipt stating abandonment procedures have been initiated. The certified letter shall include the

Release Document for Unclaimed Property. The contractor shall also provide the COR with the POV file.

1.3.7.2. Pick-up Notification for Stored POVs.

1.3.7.2.1. The contractor shall notify the customer of storage expiration via email, certified mail with confirmation receipt, and telephone forty-five (45) days prior to the expiration of the customer’s storage entitlement. If the customer does not respond, the contractor shall send a second notice via email thirty-five (35) days prior to the expiration of the customer’s storage entitlement. These notifications shall instruct the customer to arrange pick-up or provide proof of storage entitlement extension.

1.3.7.2.2. If the customer does not respond to the second notice, the contractor shall send a third notice via certified mail with confirmation receipt fifteen (15) days prior to the expiration of the customer’s storage entitlement. If the customer does not respond, the contractor shall send a fourth notice forty-five (45) days after expiration of the customer’s storage entitlement. These notifications shall include a copy of the Release Document for Unclaimed

Property and shall advise the customer the Government will begin abandonment procedures if the POV is not picked-up from storage within ninety (90) days after expiration of the customer’s storage entitlement.

1.3.7.2.3. The contractor shall send the customer written notice of storage expiration via email and certified mail with confirmation receipt, ninety (90) days after the expiration of the customer’s storage entitlement date if no response has been received. The certified letter shall include the Release Document for Unclaimed Property and shall state abandonment procedures have been initiated. The contractor shall also provide the COR with the POV file.

1.3.7.3. The contractor shall retain copies of all documentation of written correspondence, receipt confirmations, and a record of telephonic communications.

1.3.7.4. At any time the contractor receives a returned mailing or no receipt, the contractor shall provide this information to the COR in an effort to obtain updated mailing information. The contractor shall exhaust all phone, email and letter delivery addresses in an effort to contact the customer with written storage expiration notifications.

1.3.7.5. If either the contractor or the COR receive new orders/entitlement information allowing for continued storage, the contractor must retain a copy of the documentation and update the files (both electronic and paper) to reflect the new status.

1.3.7.6. If the contractor receives a signed Release Document for Unclaimed Property, the contractor shall provide the file to the COR.

1.3.8. POV Pick-Up Procedures

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1.3.8.1. The contractor shall request the customer to present a copy of the inspection form, government/state-issued picture identification, and a Power of Attorney and/or Letter of Authorization (for designated agents not identified on the orders). The contractor will retain on file a copy of the Power of Attorney and/or Letter of Authorization.

Questions concerning eligibility to pick-up a POV should be directed to the COR. The contractor shall wash and dry the POV, reinstall accessories, and remove all shipping labels from the POV prior to customer pick-up.

1.3.8.1.1. The contractor shall ensure a thorough joint inspection of the POV and inventory accessory contents using the original inspection form and the customer's copy of the inspection form. If a dispute occurs during the joint inspection, the contractor shall immediately notify the COR for an independent assessment of any alleged loss and/or damage. The contractor shall ensure the customer acknowledges receipt of the POV by signature and date.

The contractor shall return the customer’s copy upon completion of the joint inspection. Original copies shall be maintained as part of the official file.

1.3.8.1.2. At pick-up, the odometer reading recorded on the inspection form shall not exceed the initial reading by more than 20 miles plus the total aggregate of 0.5 miles per month while in storage. Discrepancies shall be reported to the COR. The contractor shall ensure the POV is adequately fueled at pick-up so it may be driven to the nearest fueling facility.

1.3.9. Abandoned POVs

1.3.9.1. The contractor is not responsible to maintain the condition of an abandoned POV and may remove the POV from the enclosed storage facility to a secured outdoor holding area after confirmation from the COR the POV is determined abandoned.

1.3.10. Customer Service

1.3.10.1. Contractor employees who interact with customers must be able to communicate (read, write, speak & understand) in fluent English. English shall be the only language used with regard to this contract for written correspondence, discussions and other business transactions.

1.3.10.2. The contractor shall complete POV turn-in/pick-up processing within one hour or less of the customer signing in at the VPC, excluding any required agriculture clearances. The contractor shall maintain a log, ensuring customers sign in at the time of arrival and sign out when finished, which shall remain accessible to the COR.

1.3.10.3. The contractor shall provide customer service comment cards to all customers and encourage the customer to complete the card before departing the VPC. The comment card shall use the categories Excellent, Good, Satisfactory, and Unsatisfactory and must be approved by the Contracting Officer prior to contract performance.

1.3.10.4. The contractor shall inform the COR of actions taken to address customer problems/concerns identified via comment cards or Interactive Customer Evaluation (ICE) complaints within 48 hours of being notified by the

COR of the issue.

1.3.10.5. The contractor shall notify the COR if it appears that a customer was counseled incorrectly on entitlements.

1.3.11. Claims

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1.3.11.1. The contractor shall directly resolve with customers 95% of all claims submitted annually. The contractor shall attempt to make payment to the customer on-site (at the VPC) for any loss and/or damage to POVs, allowing the customer to obtain repair estimates for consideration, if necessary. The customer retains the right to file subsequent claims for additional loss and/or damage to the POV discovered after departing the VPC. In the event agreement cannot be reached, the contractor shall instruct the customer to follow the Military Claims Office (MCO) process.

1.3.11.2. If the negotiated settlement is equal to the fair market value of the POV, the contractor shall also negotiate an ownership agreement with the customer for disposition of the POV. When ownership will transfer to the contractor, it shall be the responsibility of the contractor to take possession of the POV from the customer not later than thirty (30) days after agreement has been reached unless both parties agree to an extension. Failure of the contractor to successfully take possession of a salvaged POV shall not reduce its liability to the customer and/or

Government.

1.3.11.3. The contractor shall compensate customers in accordance with the Joint Federal Travel Regulation

(http://www.defensetravel.dod.mil/site/perdiem.cfm) for lodging and rental car expenses incurred due to missed

RDDs.

1.3.12. Information Technology Systems.

1.3.12.1. The contractor shall utilize an IT system to maintain an electronic file for all POV shipments and storage.

The electronic file shall contain, at a minimum, the customer’s name, SSAN or unique assigned number, entitlement order number and dates, accounting data, contractor assigned file number, truck BOL, ocean BOL, and all pertinent

POV data (Title Number, State of Registration, Lien holder, state where lien is held, and Lien Holder’s release

Letter if applicable). The system shall have the ability to generate reports as requested. Government personnel as designated by the Program Manager shall have unlimited access to system data. Contractor shall provide system training as required to all designated personnel. The contractor's system shall have the capability to detect POV shipments exceeding a customer’s entitlement. If a shipment exceeding entitlement is detected, the contractor shall advise the COR. Active data files (POV shipments and storage), in addition to the previous 2 years, must be incorporated into the successor contractor database no later than contract commencement.

1.3.12.2. The Contractor shall provide a secure website providing in-transit visibility of POVs (end to end), status of POVs (maintenance, mechanical, damage, etc.), and a list of VPC and Storage locations. The website shall provide customer advisories, pertinent Government publications, required shipment and storage document information, and allow customers to update contact/transit information, upload necessary documents, FAQs to guide shipment and storage processes, and schedule appointments for turn in/pick up of POVs.

1.3.13. Cyber Security

1.3.13.1. Information Assurance. The Contractor shall provide an Information Assurance Report to describe their environment that safeguards DOD non-public information resident on or transiting the contractor's unclassified information systems from unauthorized access and disclosure. Protection measures applied should consider the risks

(i.e. consequences and their probability) of loss, misuse, unauthorized access, or modification of information. The report shall address the SANS (SysAdmin, Audit, Network, Security) Institute's Twenty Critical Security Controls for Effective Cyber Defense: Consensus Audit Guidelines (http://www.sans.org/critical-security-controls) and be provided in accordance with the attached template at Attachment X to the PWS. The contractor is encouraged to provide additional information above and beyond what is outlined in the SANS guidelines to enhance the government’s understanding of their information security posture. The report will be updated 30 days prior to exercise of an option period, if applicable.

http://www.defensetravel.dod.mil/site/perdiem.cfm

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1.3.13.2. Cyber Security Incidents. The contractor shall report to the following two Government organizations as soon as possible upon discovery of any suspected cyber intrusion events that affect DOD information resident on or transiting the contractor's unclassified information systems:

USTRANSCOM Global Command, Control, Communications and Computers (C4)

Coordination Center (GCCC)

E-mail: ustcJ6-gccc@ustranscom.mil

Commercial Phone: 618-229-4222

USTRANSCOM Deployment and Distribution Operation Center (DDOC)

E-mail: ustc-ddocchief@ustranscom.mil

Commercial Phone: 618-220-7700

1.3.13.2.1. Initial report shall be provided even if some details are not yet available, with follow-on detailed reporting within 72 hours. Reportable cyber intrusion events include the following:

a) A cyber intrusion event appearing to be an advanced persistent threat;

b) A cyber intrusion event involving data exfiltration or manipulation or other loss of any DOD information resident on or transiting the contractor's, or its subcontractors', unclassified information systems; and

c) Intrusion activities that allow unauthorized access to an unclassified information system on which DOD information is resident or transiting.

1.3.14. Incident Report Content. The incident report shall include, at a minimum, the following information:

a) Applicable dates (date of suspected compromise and date of discovery);

b) Threat methodology (all known resources used such as Internet Protocol (IP) addresses, domain names, copies malware, etc.);

c) An account of what actions the threat(s) may have taken on the victim system/network and what information may have been accessed;

d) A description of the roles and functions of the threat-accessed system;

e) An initial list of potentially impacted government programs and each program’s classification;

f) What information may have been exfiltrated that may impact government programs ;

g) A list of all employees and subcontracted employees who work or have worked with the victim system/network; and

h) A point of contact to coordinate damage assessment activities.

1.3.14.1. Incident Report Submission. The contractor shall submit unclassified network cyber incident reports to the USTRANSCOM Technical Information Analysis Center (TIAC) and USTRANSCOM designated government personnel via encrypted email or another mutually agreed upon secure communications method. Copies of malware require special handling and pre-coordination must be accomplished prior to submission.

1.3.15. Reports

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1.3.15.1. The contractor shall provide all reports electronically as Microsoft Excel spreadsheets on a monthly basis unless otherwise directed by the Contracting Officer. Reports shall be sent via e-mail to the Contracting and

Program Management offices. The format of each report will be agreed to prior to contract start.

1.3.15.1.1. VOLUME REPORT: The Volume Report shall include the total number of POVs turned-in and picked-up each month including a summary total for each shipment type by location.

1.3.15.1.2. STORAGE REPORT: The Storage Report shall include: number of POVs turned-in for storage at each

VPC; number of POVs picked-up from storage at each VPC; number of POVs in storage; remaining capacity at each storage site; number of POVs in storage at least ninety (90) days beyond expiration of storage entitlement;

designation of sponsoring military and/or civilian service.

1.3.15.1.3. FUNDS REPORT: The Funds Report shall include the invoiced, pending invoice, and estimated invoice dollar amounts by month and in aggregate against the current contract year task order of all services for the month the report is issued.

1.3.15.1.4. CLAIMS REPORT: The contractor shall provide a claims report on a monthly basis to the Contracting

Officer. The report shall include at a minimum the following: the total number of claims (including inconvenience claims) from customers and the military claims offices; number of claims paid and settled at the VPCs; the amount of each settlement with the total amount paid for each; and the total number of claims denied or denied in part, the reason for the denial, and the amount of each.

1.3.15.1.5. OCEAN BOOKING REPORT: The Ocean Booking Report shall include the carrier, vessel, voyage number, booking number, departure and arrival dates, port of embarkation, port of debarkation, whether U.S. flag vessel is utilized, and the total number of POVs for each voyage.

2.0 SERVICE DELIVERY SUMMARY

PERFORMANCE OBJECTIVE PWS PARA PERFORMANCE THRESHOLD

Transport POVs to the correct destination within RDDs

1.3.5.1. & Attachment X 98% of all RDDs per month

Resolve claims submitted by customers 1.3.11.

95% of all claims submitted by customers annually

Provide satisfactory or better customer service 1.3.10.

95% of comment cards turned-in per month

Adhere to VISA preferences and US

Cargo Preference Act

4.0 100% of all shipments

3.0 GOVERNMENT FURNISHED PROPERTIES & SERVICES

3.1. Government-Owned VPC Facilities

3.1.1. The Government will provide VPC facilities at the GO/CO locations identified in Appendix A. Facilities will include an enclosed inspection area; office facility with reception area and restrooms; outdoor secured storage area;

utilities, except commercial telephone service and/or installation; custodial services; refuse pick-up and disposal service; and Defense Switch Network (DSN) phone lines.

4.0 SUBCONTRACTING

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4.1. Subcontractor Responsibility.

4.1.1. The contractor shall determine the responsibility of its prospective subcontractors. The contractor is responsible for the delivery of services required. This responsibility extends to the performance of any other provider the contractor may subcontract to in order to perform the services.

4.1.2. When subcontracting for sea transportation, the contractor shall use U.S. Flag VISA carriers when available to meet the requirement. The contractor shall use the following VISA priorities (listed in preferential order) when making service arrangements:

a) U.S. flag vessel capacity operated by a VISA "Participant" that has made a current, minimum commitment of its U.S. flag vessel capacity to Stages I, II and III of VISA or that has made a current, minimum commitment of its Jones Act capacity (capacity exclusively engaged in the domestic trades) to

Stage III of VISA and a current, minimum commitment of the remainder of its U.S. flag vessel capacity to

Stages I, II and III or, VISA or with regard to an offer for a long-term charter to DoD that has made a current, minimum commitment of its U.S. flag vessel capacity to Stage III of VISA. The U.S. Flag Vessel

Sharing Agreement (VSA) capacity of such a participant also is grouped in this category of priority.

b) U.S. flag vessel capacity operated by a VISA "Participant" that has made a current, minimum commitment of its U.S. Flag vessel capacity to Stage III of VISA and the U.S. flag Vessel Sharing

Agreement (VSA) capacity of such a Participant.

c) U.S. flag vessel capacity operated by a non-Participant.

d) Combination U.S./foreign flag vessel capacity operated by the kind of "Participant" described in paragraph 1 above and/or the combination U.S./foreign flag VSA capacity of such a Participant.

e) Combination U.S./foreign flag vessel capacity operated by the kind of "Participant" described in paragraph 2 above and/or the combination U.S./foreign flag VSA capacity of such a Participant.

f) Combination U.S./foreign flag vessel capacity operated by a non-participant.

g) U.S. owned or operated foreign flag vessel capacity and/or VSA capacity of the kind of "Participant" described in paragraph 1 above.

h) U.S. owned or operated foreign flag vessel capacity and/or VSA capacity of the kind of "Participant" described in paragraph 2 above.

i) U.S. owned or operated foreign flag vessel capacity and/or VSA capacity of a non-Participant.

j) Foreign-owned or operated foreign flag vessel capacity of a non-participant.

4.1.3. Operations of the Norfolk, VA VPC site shall be subcontracted to Didlake, Inc to provide vehicle processing services. Regulatory program oversight is provided by the Presidential Committee for Purchase from People Who are Blind or Other Severely Disabled under the authority of 41 CFR 51 and FAR 8.4. Day-to-day technical assistance and contract administrative support will be provided by the National Industries for the Severely

Handicapped (NISH). The office cognizant over this subcontract is the NISH East Region Richmond Office, telephone 804-717-8237. Any price increases by Didlake, Inc., other than those under FAR 52.222-43, are the sole responsibility of the contractor.

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5.0 INVOICING AND PAYMENT [RESERVED]