RDC-6_PERFORMANCE_WORK_STATEMENT_Updated_26_Jul_13.pdf

Exhibit 1

RDC-6 PWS

RDC-6 PERFORMANCE WORK STATEMENT

Revision 1 dated 26 July 2013

SECTION 1 – BACKGROUND__________________________________________________________________4

1.A History_______________________________________________________________________________4

1.B Purpose______________________________________________________________________________ 4

1.C Period of Performance__________________________________________________________________5 1.C.1 Base Period_______________________________________________________________________5 1.C.2 Option Periods____________________________________________________________________5

1.D Contract Type_________________________________________________________________________ 5

SECTION 2 – SCOPE_________________________________________________________________________ 5

2.A Scope_________________________________________________________________________________5 2.A.1 Military and Military Sponsored Cargo Commitment___________________________________5 2.A.2 Excepted Cargo and Routes_________________________________________________________5 2.A.3 Additional Services________________________________________________________________6 2.A.4 Geographic Scope________________________________________________________________ 6

2.A.5 Regulatory Compliance____________________________________________________________ 6 2.A.6 Normal Government Business Hours/Hours of Operation/Business Day____________________7

2.B Aggregate Government Volume Estimates__________________________________________________7

SECTION 3 – GENERAL REQUIREMENTS______________________________________________________ 7

3.A General/Administrative__________________________________________________________________7 3.A.1 Use of English Language___________________________________________________________ 7 3.A.2 Cargo___________________________________________________________________________ 7 3.A.3 Hazardous Cargo_________________________________________________________________ 7 3.A.4 Quality Control, Reporting, and Records_____________________________________________ 8 3.A.5 Invoicing and Payment_____________________________________________________________8 3.A.6 Responsibility for Charges and Taxes________________________________________________ 9 3.A.7 Space Commitment_______________________________________________________________ 9 3.A.8 Schedule Maintenance____________________________________________________________10 3.A.9 Service Changes_________________________________________________________________ 10 3.A.10 Customer Service Assistance_______________________________________________________10 3.A.11 Electronic Commerce / Electronic Data Interchange (EDI)______________________________10 3.A.12 Manual Operational Reports_______________________________________________________13 3.A.13 Vessel Cutoffs, Late Gates, and Expedited Origin Linehaul_____________________________ 13 3.A.14 Required Delivery Date (RDD)_____________________________________________________ 14

3. A.15 Less-Than-Container-Load (LCL) Services__________________________________________ 14

3.A.16 Equipment______________________________________________________________________15 3.A.17 Chassis Requirements____________________________________________________________ 15 3.A.18 Equipment Pools_________________________________________________________________15 3.A.19 US Government Furnished Containers (GFC)________________________________________ 15 3.A.20 Transloading Of Containerized Cargo_______________________________________________16 3.A.21 Flatrack Containers______________________________________________________________16 3.A.22 Bulk Liquids____________________________________________________________________ 16 3.A.23 Exclusive Use of Conveyance_______________________________________________________16

3.B Shipment Booking and Scheduling_______________________________________________________ 17

3.B.1 Shipment Booking_______________________________________________________________ 17

3.B.2 Booking Acceptance______________________________________________________________17 3.B.3 Response to Booking Requests_____________________________________________________ 17

3.B.4 Automated Booking______________________________________________________________ 17

3.B.5 Direct Booking Procedures________________________________________________________ 17

3.C Origin Services________________________________________________________________________18 3.C.1 Providing Empty Containers to Shippers_____________________________________________18

3.C.2 Live Load_______________________________________________________________________18

3.D Ocean Transportation__________________________________________________________________ 19 3.D.1 Cargo Lift and Advancement_______________________________________________________ 19

3.D.2 Services During Hazardous Cargo Handling__________________________________________ 19

3.E Destination Services___________________________________________________________________ 19 3.E.1 Delivery Notification and Receipt___________________________________________________19

3.E.2 Live Unload_____________________________________________________________________20

3.F Exceptions to Normal Service____________________________________________________________21 3.F.1 Alternate Service_________________________________________________________________21 3.F.2 Recurring Service Failure_________________________________________________________21 3.F.3 Canceled Shipments/No Shows_____________________________________________________ 21

3.F.4 Free Time and Container Detention_________________________________________________22

3.F.5 Free Time and Driver Wait Time___________________________________________________23

3.F.6 Container Pick Up/Return_________________________________________________________24

3.F.7 Government Use of Contractor Equipment (Leasing)__________________________________ 24 3.F.8 Rerouting of Cargo_______________________________________________________________25 3.F.9 Staging ________________________________________________________________________ 26 3.F.10 Notice of Transfer of Cargo________________________________________________________26 3.F.11 Damage to Contractor Equipment__________________________________________________ 26 3.F.12 Theft or Disappearance___________________________________________________________ 27 3.F.13 Port Storage_____________________________________________________________________28

3.F.14 Futile Trip______________________________________________________________________28

3.G Accessorials__________________________________________________________________________ 28 3.G.1 Stopoff Service In Transit________________________________________________________ 28 3.G.2 Linehaul for Containerized Ammunition Shipments___________________________________ 29

3.G.3 Tarping_________________________________________________________________________29

3.G.4 Supercargo______________________________________________________________________29 3.G.5 Flatrack Tie Down Equipment Surcharge____________________________________________29 3.G.6 Cargo Handling and Transloading Service ___________________________________________30

3.G.7 Re-Spot Service__________________________________________________________________30

3.G.8 Side-Load Chassis________________________________________________________________30 3.G.9 Superload ______________________________________________________________________ 30 3.G.10 Forty-Five Foot Containers________________________________________________________30 3.G.11 Flatrack Container Surcharge_____________________________________________________ 30

3.G.12 Hazardous Cargo Surcharge ______________________________________________________ 30

3.G.13 Dual Temperature Refrigerated Containers__________________________________________ 30

3.G.14 Controlled Atmosphere ___________________________________________________________31 3.G.15 Modified Atmosphere Containers___________________________________________________31 3.G.16 Percentage Differential Accessorial for Refrigerated Cargo____________________________ 31

3.G.17 Nuclear Liability Insurance________________________________________________________32

3.H Breakbulk and RORO Requirements_____________________________________________________32 3.H.1 Cargo Berth_____________________________________________________________________32 3.H.2 Shifting of Berths, Not Meeting Minimum Tonnage____________________________________32 3.H.3 Reimbursement for Damage_______________________________________________________ 32 3.H.4 Terms for Loading and Discharging Services_________________________________________ 32

3.I Information Assurance_________________________________________________________________35

3.I.1 Requirement for Contractor Information Assurance (IA) Report________________________ 35

3.I.2 Cyber Security Incidents__________________________________________________________35

3.J Linehaul for Breakbulk and Out-of-Gauge (OOG) Cargo____________________________________36

3.J.1 Flatbed and double drop service____________________________________________________ 36

SECTION 4 – SHIPMENTS OF PRIVATELY OWNDED VEHICLES (POVs)__________________________37

4.A Shipments by Authorized Agents of the US Government_____________________________________37 4.A.1 Scope__________________________________________________________________________ 37 4.A.2 Booking of Cargo________________________________________________________________ 37 4.A.3 Submission of Status Reports______________________________________________________ 38 4.A.4 Payment________________________________________________________________________38 4.A.5 Special provisions for Privately Owned Vehicles (POVs)_______________________________ 38

SECTION 5 – MEASURING PERFORMANCE___________________________________________________ 38

5.A Performance Requirements_____________________________________________________________38 5.A.1 Performance Measures and Performance Standards___________________________________39 5.A.2 Performance Objectives___________________________________________________________39

5.B Additional Performance Indicators_______________________________________________________40

5.B.1 Overview________________________________________________________________________41

5.B.2 Good Order and Condition (API No.1)_______________________________________________41

5.B.3 Invoice Submission Timeliness (API No. 3)___________________________________________ 41

5.B.4 Compliance with Contract Terms and Conditions (CCTC) (API No.4)____________________ 41

SECTION 6 – REGION-SPECIFIC REQUIREMENTS_____________________________________________41 6.A Puerto Rico___________________________________________________________________________41

6.A.1 Cargo Clearance Service__________________________________________________________ 41

6.A.2 Diversion_______________________________________________________________________ 41

6.A.3 Tie-Down and Lashing Materials___________________________________________________ 42

6.A.4 Special Cargo Handling___________________________________________________________ 42

6.A.5 Transport of Hazardous Cargo/Small Arms Ammunition_______________________________42

6.A.6 Normal US Government Business Hours/Hours of Operation/Business Day________________43

6.A.7 Crane Services___________________________________________________________________43

6.A.8 Expedited or After-Hours Delivery__________________________________________________43

6.B Alaska_______________________________________________________________________________43

6.B.1 Keep From Freezing (KFF) Service__________________________________________________43

6.B.2 Redelivery of Keep from Freezing (KFF) Service_____________________________________ 44

6.B.3 Carriage of Overweight Containers_________________________________________________ 44

6.B.4 Less Than Containerload/Trailerload Service ________________________________________ 44

6.B.5 Transportation Protective Services _________________________________________________ 45

6.B.6 Mileage in Alaska________________________________________________________________ 45

6.B.7 Privately Owned Vehicles (POVs)___________________________________________________45

6.C Hawaii_______________________________________________________________________________46

6.C.1 Hawaii Inter-island Service________________________________________________________ 46

SECTION 7 – RATE RULES, PROVISIONS______________________________________________________47

7.A Single Factor Rates____________________________________________________________________ 47

7.B Application of Ocean Freight Rates—Containers___________________________________________ 47 7.B.1 Equipment Charges______________________________________________________________ 47 7.B.2 Application of Drayage and Inland Rates____________________________________________ 48 7.B.3 Over-Dimensional Cargo_________________________________________________________ 49

7.C Application of Ocean Freight Rates—Breakbulk/RORO_____________________________________49

7.D Application of Ocean Rates—Container and Breakbulk_____________________________________ 50

7.D.1 Mileage Source__________________________________________________________________ 50

7.E Bunker Adjustment Factor (BAF)________________________________________________________51

7.E.1 Allowance______________________________________________________________________ 51

7.E.2 Baseline Fuel Price_______________________________________________________________51

7.E.3 Calculations_____________________________________________________________________51

7.E.4 Payment Procedures______________________________________________________________52

7.E.7 Application______________________________________________________________________52

7.E.8 Technical Factors and Freight Payable Units__________________________________________52

7.F Fuel Adjustment Factors (FAF)__________________________________________________________54

7.F.1 Fuel Adjustment Surcharge________________________________________________________ 54

7.F.2 Baseline_________________________________________________________________________54

7.F.3 Fuel Adjustment Application_______________________________________________________54

7.F.4 Payment Procedures______________________________________________________________ 55

SECTION 8– ABBREVIATIONS, DEFINITIONS, ROUTE INDICES________________________________ 58

8.A Abbreviations/Acronyms_______________________________________________________________ 58

8.B Definitions___________________________________________________________________________ 59

8.C Trade Areas and Zones_________________________________________________________________65 8.C.1 General Definition of Trade Areas__________________________________________________ 65 8.C.2 Descriptions of Zones_____________________________________________________________65

SECTION 9 – SECURITY AND FORCE PROTECTION____________________________________________65

SECTION 10 – LIST OF ATTACHMENTS_______________________________________________________70

SECTION 1 – BACKGROUND

1.A History

1.A.1 As a component command of the United States Transportation Command (USTRANSCOM), the Military

Surface Deployment and Distribution Command (SDDC) provides ocean terminal, commercial ocean liner and distribution services to deploy, sustain and redeploy US forces on a global basis.

1.A.2 SDDC is responsible for surface transportation (with the exception of ocean charters) and is the interface between Department of Defense (DoD) shippers and the commercial surface transportation industry. This includes movement of DoD member household goods and privately owned vehicles. SDDC also provides transportation for troops and materiel to and from ports of departure and arrival.

1.B Purpose

1.B.1 To fulfill its mission of providing global surface deployment command, control and distribution operations to meet National Security objectives in peace and war, it is necessary for SDDC to provide ocean and intermodal distribution services for delivering Defense Transportation System (DTS) cargo. DTS cargo consists of military equipment and related supplies including supermarket-type commodities shipped by the Defense Commissary

Agency, department store merchandise shipped by Army and Air Force Exchange Service, mail shipped by the

Military Postal Service, Defense Logistics Agency (DLA) Prime Vendor Cargo, General Services Administration

(GSA) and personal property including Privately Owned Vehicles (POV) of DoD personnel. DTS cargo is shipped in substantial, recurring and consistent volumes on many trade routes.

1.C Period of Performance

1.C.1 Base Period

The one-year base period of performance for this contract is 1 December 2013 through 30 November 2014. This contract will apply to all bookings with vessel sail dates occurring during the Base Period.

1.C.2 Option Periods

The periods of performance for the options years are 1 December 2014 through 30 November 2015 and 1 December

2015 through 30 November 2016 (Ref: FAR 52.217-9). Any options will apply to all bookings with vessel sail dates occurring during the applicable Option Period.

1.D Contract Type

This contract is a Fixed Price, Indefinite Delivery/Indefinite Quantity, multiple award equitable price adjustment contracts as described in Federal Acquisition Regulation (FAR) Part 16.5. It contains an economic price adjustment clause and adjustments for both vessel fuel under the Bunker Adjustment Fuel (BAF) and an adjustment for line haul fuel under the Fuel Adjustment Factor (FAF).

SECTION 2 – SCOPE

2.A Scope

This contract is to provide domestic ocean cargo transportation and distribution services using ocean common or contract carriers, as defined in the Shipping Act of 1984, offering regularly scheduled commercial liner service for requirements that may arise. Scope of services for this contract is provided in accordance with the Jones Act. In accordance with the Cargo Preference Act and Jones Act, all goods transported by water between US ports are carried by US flag ships, constructed in the US, owned by US citizens, and crewed by US citizens, and US permanent residents. Contractors shall be capable of providing ocean, intermodal, and related transportation and distribution services to support their offered services as required herein. Door to door overland transport is authorized under this contract. All shipments are required to include a sea leg as part of the transport. This contract is primarily for requirements sponsored by the DoD. Other organizations may fill their requirements through this contract only as designated by the Contracting Officer (CO). This contract shall apply to services performed in peacetime as defined herein. This contract is not subject to terms or conditions of Contractors' tariffs except as otherwise specified in this contract. The accepted booking, in conjunction with the terms contained in this contract, constitutes the contract of carriage. This contract applies to Unit Movement Cargo and Other Than Unit Movement

(OTUM) Cargo. Unit Movement Cargo is described by Unit Line Numbers (ULNs) and Plan Identification

Numbers (PIDs) in the Joint Operation Planning and Execution System (JOPES) -- whether contingency, exercise or administrative in nature – whether characterized as deployment or redeployment cargo.

2.A.1 Military and Military Sponsored Cargo Commitment

During the period of this Contract and subject to provisions set forth below, the Government will ship all military and military sponsored cargo offered for commercial ocean transportation in the Defense Transportation System

(DTS) to/from Continental US (CONUS) points and ports to the port and point of San Juan, Puerto Rico; and points and ports in, Alaska, Hawaii; and inter-island service within the Hawaiian Islands and Alaska, under contracts awarded pursuant to this solicitation. In cases of emergency/natural disaster, non RDC-6 carriers may be used.

2.A.2 Excepted Cargo and Routes

Excepted cargoes (Breakbulk/RORO and Container) and excepted routes are included in the scope of this contract.

Prices for such excepted cargo and excepted routes have not been negotiated at the time of award. Excepted cargoes and routes shall be competitively ordered using the Ordering Procedure Carrier Selection Fair Opportunity Process in Exhibit 2 (Ordering Procedures), except Past Performance Evaluation SubFactor for “History of Meeting RDD for the required route” shall not be used if no relevant past performance exists for the specified excepted route. The

US Government shall issue a modification to add rates for the movement of excepted type cargo and routes under the changes provision of FAR 52.212-4.

For purposes of this contract, Excepted Cargoes Breakbulk/RORO shall mean Aircraft (unboxed), Helicopters, Boats over 40 ft., Oversized cargo, bulk cargo, heavy lift cargo, and explosives (excluding IMO Class 1.4), except where a specific CLIN has been included for the commodity.

For purposes of this contract, Excepted Cargoes Container shall mean Heavy lift cargo, oversized cargo (with the exception of cargo that meets the definition of over dimensional cargo or super load), explosives (excluding IMO

Class 1.4), ISO Liquid Tanks (e.g. Deicing Fluid/Anti Freeze), and all containers except dry, reefer, open tops and flatracks, except where a specific CLIN has been included for the commodity.

For purposes of this contract, Excepted Route shall mean a one-time order for a nonrecurring cargo movement for a route not previously priced or negotiated at time of award.

2.A.3 Additional Services

The US Government reserves the right to contract for additional services within the scope of the contract by modification or separate contract, as requirements become known.

2.A.4 Geographic Scope

The Contractor, a vessel-operating ocean Carrier, shall provide all resources necessary to perform the Performance

Work Statement (PWS). This performance shall be provided through ocean and intermodal transportation by Jones

Act ships and/or barge/tug systems. The Contractor shall maintain regularly scheduled liner term service to/from

Continental US (CONUS) points and ports in Puerto Rico; and points and ports in, Alaska, Hawaii; and inter-island service within the Hawaiian Islands and Alaska throughout the period of the contract. The Contractor agrees to offer space in each of its vessels engaged in Contractor’s service on the routes under this contract, consistent with its obligations as a common or contract Carrier. The Contractor shall provide break bulk and/or container service, including receiving, terminal handling, loading /discharging and container pools if required.

2.A.4.1 Custom of the Trade

Wherever the standard of performance by either party is not provided under the provisions of this contract, the

“Custom of the Trade” shall be used as a standard of performance. This phrase shall mean the established practice generally accepted by the trucking, rail and marine shipping industries for cargo transportation service in the geographic area where such services are performed.

2.A.5 Regulatory Compliance

The Contractor shall comply with regulations of the Federal Maritime Commission and the Surface Transportation

Board, Department of Transportation and/or other US Governmental organizations, including local regulations at origin, destination and in-transit as may be applicable for service to the US Government in carriage of cargo as set forth in this contract. The Contractor shall comply with regulations of Governmental agencies as may be applicable for service to the Government in the carriage of military cargo as set forth in this Agreement. The Contractor ensures that its rates have taken into account the provisions of Old Section 10721 of the Interstate Commerce Act

(49 USC. 10721) which are preserved under Sections 10721 (Rail) and 13712 of the Interstate Commerce

Commission Termination Act of 1995, P.L. 104-88, 109 Stat. 803, Dec. 29, 1995 (Motor/Water) and that such rates do not exceed the lowest available rates to the general public for comparable service on the date of acceptance of its offer by the US Government, and that such rates do not exceed the Contractor's charges for transporting like goods for the private sector. The Contractor is authorized to certify that the service performed under this contract is entirely for the benefit of the US Government so as to permit the offer of service at free or reduced rates under the former 49

USC. 10721 now preserved under Sections 10721 and 13712 as above. All Contractors will comply with provisions of the Jones Act (46 USC 883). For inter-island Hawaii service, any carrier operating as a water carrier of property between and among the ports of the Hawaii islands must hold a Certificate of Public Convenience and Necessity approved by the Hawaii Public Utilities Commission.

2.A.6 Normal US Government Business Hours/Hours of Operation/Business Day

Normal US Government Business Hours are considered to be Monday through Friday, 0800 hours through 1700 hours, with US Federal Holidays excepted. Such days are defined as Business Days. Where US Government offices also observe local holidays, these holidays are also excluded from Normal US Government Business Hours. All references in this contract to compliance or observance of Normal Business Hours will use this definition.

In addition, Contractors shall be aware of local office hours of operation for each US Government facility with which they will transact business, and will schedule transactions accordingly. Hours of Operation for all

Transportation Facilities may be found in the Transportation Facility Guide (TFG). Contractors shall monitor the most current copy of the TFG for possible changes, updates or short term notices.

2.B Aggregate Government Volume Estimates

The estimated cargo volume (the aggregate volume across all awarded contracts) is identified in the Carrier Analysis and Rate Evaluation (CARE II) system.

SECTION 3 – GENERAL REQUIREMENTS

3.A General/Administrative

3.A.1 Use of English Language

All documentation and verbal notices shall be provided in the English language. If required by local law or regulation, additional language(s) may be used.

3.A.2 Cargo

All cargo shall be stowed such that it is protected from damage due to exposure to the elements.

3. A.2.1 When booked on a liner basis, cargo will be loaded and discharged by the Contractor at commercial terminals at the Contractor's ports of call. Unless booked under free-in and/or free out terms, liner term rates apply for all cargo (to include POVs). Liner rates are a required rate component, along with the applicable ocean rate. The

Government will require the Contractor to furnish, stuff, and strip containers. Consistent with vessel safety, when on deck stowage is necessary, containers with mail and personal property will, to the maximum extent possible, be loaded below the third tier.

3.A.3 Hazardous Cargo

3.A.3.1 Limitations of Contractor’s Obligation

3.A.3.1.1 The US Government shall provide accurate and timely hazardous cargo documentation in accordance with applicable laws and regulations.

3.A.3.1.2 The Contractor may refuse to transport hazardous cargo either by land or by ocean, which does not conform in all respects to applicable laws and regulations.

3.A.3.1.3 The Contractor shall identify to the Contracting Officer any cargo precluded from carriage due to

Contractor policy prior to contract award and further advise the Contracting Officer of any changes to such policy thereafter. The Contractor shall accept for ocean carriage all commodities listed in Attachment 1 (Hazardous Cargo

List) not otherwise identified in this section when the commodity is packaged, labeled, and documented in compliance with applicable laws and regulations.

3.A.4 Quality Control, Reporting, and Records

3.A.4.1 Quality Control

3.A.4.1.1 The Contractor shall utilize its commercial quality control processes/plan (QCP) to ensure quality service is provided throughout the term of the contract.

3.A.4.1.2 The Contractor shall promptly notify the appropriate Contracting Officer Representative (COR) of any problems or failures that may affect performance. Upon request, the Contractor shall provide the COR with a written plan of corrective action, including a proposed timeline, within 10 business days after such request. This plan shall describe proposed Contractor actions to correct the problem or deficiency and bring performance back in compliance with identified performance standards.

3. A.4.1.3 The CORs shall monitor Contractor performance and compliance with the terms and the conditions of the contract using standard techniques such as inspections, US Government-generated management reports, Contractor reports and customer feedback. The Contractor shall attend periodic meetings called by the COR or the Contracting

Officer to discuss operations and problem areas.

3.A.4.2 Quality Council Meetings

The Contractor shall participate in Quality Council Meetings as requested by the Contracting Officer to review performance and discuss operational issues. Meetings shall be held as directed by the Contracting Officer, but will not exceed two per year.

3.A.4.3 Performance Reporting

In accordance with FAR 52.212-4c, the contract may be modified to provide additional reports that satisfactorily quantify Contractor performance under “Performance Objectives”. The Contracting Officer may establish the format and frequency of such reports.

3.A.4.4 Retention of Records

The Contractor shall maintain and, upon request, provide to the Contracting Officer such documentation deemed relevant to performance of transportation services ordered under the terms of this contract. Records will be maintained and available to the Contracting Officer throughout the term of the contract and for three years after final payment IAW FAR 52.212-5(d).

3.A.5 Invoicing and Payment

Contractor shall prepare and submit invoices or proper documentation for payment of shipments in accordance with the procedures in Attachment 4 (Invoicing and Payment).

3. A.5.1 Where the Electronic Invoice Presentment and Payment (EIPP) program has been implemented by the effective date of the contract, the Contractor shall comply with the payment procedures for this program.

Contractors shall be provided 30 days’ advance notice of implementation of EIPP for shipments not covered by the program by the effective date of the contract. Syncada is the system used for this contract. Attachment 4 (Invoicing and Payment) contains instructions and procedures on Syncada. EXCEPTION: Contractors will be paid for shipments of Privately Owned Vehicles (POVs) in accordance with payment procedures of the Global POV

Contract.

3. A.5.2 Management Reform Memorandum (MRM) 15 directed Reengineering of Defense Transportation

Documentation and Financial processes. The directive specifically addressed reengineering billing, collection, and payment processes through transition to commercially acceptable practices. Implementation was coordinated between affected DoD installations and the commercial carrier industry. The Deputy Secretary of Defense directed the implementation of US Bank’s Transportation Solutions System to pay for transportation services. DoD contracts and voluntary tenders require the use of US Bank’s Third Party Payment System (TPPS) and all DoD cargo movements must be offered only to commercial carriers who utilize US Bank as their billing and payment system.

3.A.5.3 Third Party Pay System (TPPS)

3.A.5.3.1 A requirement to conduct business with DoD as a Transportation Service Provider (TSP) will be TPPS capable. Even if otherwise qualified, a TSP that is not TPPS certified will not be eligible to transport DoD freight.

TPPS is an electronic freight transaction tracking and payment system.

3.A.5.3.2 The current authorized TPPS is US Bank Transportation Solutions. TSP’s should contact US Bank at 1-

800-417-1844 or by email customer.support@usbank.com. All services deemed payable by SDDC or

USTRANSCOM via the TPPS will be paid by US Bank Transportation Solutions. A fee is required to participate in the program.

3.A.5.3.3 TSP’s are required to submit the shipments contract number via EDI. In the event TSP’s need assistance configuring their EDI file to include the contract number, you can call the US Bank customer service help desk or email the customer service email box and a representative will open a Service Request to assign a US Bank EDI analyst to assist you. TSPs that don't transmit EDI must provide the contract number when entering invoices in the

US Bank’s Third Party Payment System (TPPS) web-based user interface.

3.A.6 Responsibility for Charges and Taxes

3.A.6.1 The Contractor shall pay all dues, charges and taxes customarily levied on the vessel, however, the amount thereof may be levied. The Contractor shall pay all taxes levied on the freight charges. The US Government shall pay all dues, charges, duties, and taxes customarily levied on the cargo; however the amount thereof may be assessed.

3.A.7 Space Commitment

3.A.7.1 A “container” contractor must make available 10% of vessel capacity for the booking of Government cargo on each US flag vessel sailing within the geographic scope of this contract as defined by paragraph 2.A.4.

3.A.7.2 A “breakbulk/RORO” contractor must make available 10% of vessel capacity for the booking of

Government cargo on each US flag vessel sailing within the geographic scope of this contract as defined by paragraph 2.A.4.

3.A.7.3 The maximum cargo to be shipped under this contract for trade routes identified herein and in contribution with all other contracts for these services, must not exceed total dead weight capacity required by SDDC.

3.A.7.4 Space Available Cargo

The US Government may book cargo over and above the guaranteed space requirements provided under this contract. The Contractor shall accept such bookings on a space available basis, guarantee space and an assured ocean transit of service for such cargo on the specified vessel sailing to which the cargo is booked.

mailto:customer.support@usbank.com

3.A.7.5 The Contractor shall accept bookings, up to a vessel’s space commitment, if the booking is received no less than 5 business days prior to a local cutoff.

3.A.8 Schedule Maintenance

3.A.8.1 For service between ports for which there is more than one shipment forecast per month, the Contractor shall provide and maintain schedules in the Integrated Booking System (IBS) Web Vessel Schedule (WVS) at least

45 days prior to the earliest sail date. For “Short Sails” of 3 days or less, the Contractor shall provide schedules in

IBS 15 days in advance of vessel sailing. Vessel schedule changes that occur prior to vessel cutoff date may result in cancellation of booked cargo at no cost to the US Government.

3A.8.2 The US Government will request routing proposals for service between ports for which there is less than one shipment per month.

3.A.8.3 The Contractor shall accept, reject, or counter on the same working day to a request for routing proposals received prior to 1430 local time. For a request received after 1430 local time, the Contractor shall respond by 1200 local time of the next working day.

3.A.8.4 Contractor proposals shall include the military voyage document number obtained from IBS-SUS.

3.A.9 Service Changes

3.A.9.1 Notification

3.A.9.1.1 The Contractor has the contractual right to make permanent changes in its offered service, including cessation of such service. The Contractor shall notify the Contracting Officer and Ordering Officers at least 45 calendar days prior to implementation of permanent changes in the Contractor’s commercial offered service. All bookings accepted prior to notification of permanent service change shall be performed in accordance with the booking and all terms contained herein.

3.A.9.1.2 Dry-Dock Initiated Service Change

The Contractor shall notify the cognizant Contracting Officer Representative (COR) and Ordering Officer in writing of scheduled dry dockings of US flag vessels at least 45 days prior to the scheduled dry-dock date. The Contracting

Officer and Ordering Officer must be notified in writing of any emergency dry-dock requirement affecting published schedules of US flag vessels.

3.A.10 Customer Service Assistance

The Contractor shall submit points of contact (POCs) who can respond to US Government activities on a 24/7 basis to provide expert assistance in answering questions, exchanging information, and resolving problems. The

Contractor shall provide specific POCs no later than 7 days after contract award.

3.A.11 Electronic Commerce / Electronic Data Interchange (EDI)

The Contractor shall use Electronic Data Interchange (EDI) or IBS Ocean Carrier Interface (OCI) application (or successor system) as the primary means for interfacing with SDDC for all bookings.

3.A.11.1 The Contractor shall use the Defense Transportation Electronic Data Interchange (DTEDI) approved

Implementation Convention for the ANSI X 12 300, 301, 303, 304 and 315 transaction sets to transmit and receive data in compliance with their approved concepts of operations. Versions 3060, 4010 or later are required. The

Contractor shall implement changes to business processes contained in revisions to Transaction Set Implementation

Conventions and their controlling concepts of operations as may be approved by the Defense Transportation

Electronic Board (DTEB). These changes shall be implemented in accordance with schedules approved by the

DTEB.

3.A.11.2 The Contractor shall receive or transmit, as appropriate, the following transactions sets:

3.A.11.2.1 Contractor receiving order data, 300 (Delivery order, the booking, including increases and decreases)

3.A.11.2.2 Contractor transmitting ordering confirmation data, 301 (Confirmation of order, Contractor to Ordering

Officer/COR)

3.A.11.2.3 Contractor receiving cancellation data from Ordering Officer, 303 (Ordering Officer Cancellation)

3.A.11.2.4 Verified Shipping Instructions, 304

3.A.11.2.5 Contractor shipment status reporting data, 315

3.A.11.3 Shipment Status Reporting: The Contractor shall provide accurate shipment status reports using the 315 transaction sets. Transactions shall be submitted in ANSI X-12 EDI standard or OCI to SDDC. Table 3.A.11.3.1.

identifies specific events that require reporting. The Contractor shall submit all reports within 24 hours of accomplishment or when the Contractor has received the booking details and/or lift information from the US

Government.

3.A.11.3.1 Table of Reportable Shipment Status Events

CODE DEFINITION NOTES

EE Empty spotted Container pick up in lieu of actual spot is acceptable for shippers having container pools. Required for other than pool locations

(NOT REQUIRED FOR BREAKBULK)

W Pickup of Loaded container/

Breakbulk

This transaction is required at the time customer turns over possession to Contractor

I

In-gate at Port of

Embarkation (POE)

This transaction is required at the POE

AE Loaded on Vessel This transaction is required at the POE and required at all transshipment ports

VD Vessel departure This transaction is required at the POE and required at all transshipment ports

VA Vessel arrival This transaction is required at the Port of Debarkation (POD) and required at all transshipment ports

UV Vessel discharge This transaction is required at the POD and required at all transshipment ports

OA Out gate from POD This transaction is required at the final POD (Port and Door bookings)

AV Available for Delivery This transaction will be auto-generated based on US Government approval of a Contractor submitted request in the Delay Request and Authorization Portal (DRAP) for AV when cargo is at final destination, but consignee is unable to accept the cargo. AV is valid only if submitted prior to RDD for metric purposes.

X1 Delivery to consignee This transaction is required when shipment is delivered to consignee or consignee’s agent.

RA Contractor notification container is available for

This transaction will be auto-generated based on US government notification via the D-RAP to the contractor that a contractor-

CODE DEFINITION NOTES

pick-up. owned container is available for pick-up

EC Return of empty container to Contractor prior to delivery (X1)

This transaction is required for container shipments when the

Contractor has regained possession of its asset prior to delivery

(X1). An example of the proper use of an EC Code would be when cargo is deconsolidated at a transship point, the container is returned to the Contractor prior to X1 and the cargo is moved as pallet loads to the final consignee. Each container shipment container return event should be documented with either an RD or an EC, but never both.

RD

Return of empty containers to Contractor after delivery

(X1)

This transaction is required for every container shipment when the contractor regains possession of its asset after delivery (X1).

Each container shipment container return event should be documented with either an RD or an EC, but never both.

(NOT REQUIRED FOR BREAKBULK)

HG Entry into US Government-directed staging Delay

Request and Authorization

Portal (D-RAP)

This transaction will be auto-generated based on Contractor date input to the DRAP after receiving and executing US Government direction to stage a shipment, to include staging at ports or holding yards. The transaction will be auto-generated based on the date the shipment entered into staging.

HR Release from US

Government-directed staging

This transaction will be auto-generated based on Contractor date input to the D-RAP after receiving US Government direction to end staging of a shipment to include staging at ports or holding yards. The transaction will be auto-generated based on the date the shipment exited staging.

SD Authorized shipment delay This transaction will be auto-generated upon US Government approval of a Contractor requested delay submitted via the D-

RAP.

BD

End of authorized shipment delay

This transaction will be auto-generated upon US Government approval of a Contractor request to end a shipment delay submitted via the D-RAP.

3.A.11.4 Additional Guidance on Specific Transactions

3.A.11.4.1 AV: The AV transaction will be auto-generated by the D-RAP based on US Government approval of a

Contractor submitted request for AV when cargo is at final destination, but consignee is unable to accept the cargo.

3.A.11.4.2 The contractor shall submit a request for an AV to the cognizant SDDC COR via the D-RAP within 2 business days of the event causing the delay. The SDDC COR has 2 business days to respond to the request from the

Contractor via D-RAP. Following US Government authorization of a contractor’s request for an AV, the AV transaction will be auto-generated and distributed via the EDI Global Exchange to other consuming systems. If the

US Government does not respond (approve or deny) to a request in D-RAP within 2 business days, D-RAP will auto-approve the contractor’s request and the AV transaction will be auto-generated and distributed by D-RAP.

3.A.11.4.3 HG and HR: The HG and HR transactions will be auto-generated by the D-RAP based on Contractor date input in the D-RAP to indicate start and stop of US Government-directed staging, to include staging at ports or holding yards. Authority for staging is the cognizant SDDC COR.

3.A.11.4.4 HG: Following receipt of a written US Government staging request via the D-RAP, the Contractor will execute movement of the shipment to the staging location. Within 24 hours of arrival at the staging location, the

Contractor will input the date of arrival into the D-RAP. As a result of the date input into the D-RAP, the HG transaction will be auto-generated and distributed.

3.A.11.4.5 HR: Following receipt of a written US Government staging release (e.g. call forward) via the D-RAP, the Contractor will execute movement of the shipment from the staging location. Within 24 hours of departure from the staging location, the Contractor will input the date of departure into the D-RAP. Cargo must commence dispatch from staging within required timelines outlined in Section 3.F.9. For large volumes of cargo, contractor will be responsible for managing dispatch in the most expeditious manner. Contractor will provide dispatch timelines to cognizant SDDC Transportation BN and COR until cargo has dispatched from staging area.

3.A.11.4.6 The HG/HR transaction pair, generated via the D-RAP, recommits the Contractor to a new delivery date defined as: RDD + (# days elapsed between HG and HR). For a shipment RDD to be amended, both an HG and HR transaction must be generated via the D-RAP.

3.A.11.4.7 SD and BD transactions: The SD and BD transactions will be auto-generated by the D-RAP based on US

Government approval of a Contractor request to indicate start or stop of an authorized delay. These transactions will be generated only upon authorization from the cognizant SDDC COR.

3.A.11.4.8 SD: The Contractor shall submit a request for an authorized delay to the cognizant SDDC COR via the

D-RAP within 2 business days of the event causing the delay. The SDDC COR has 3 business days to respond to the request from the Contractor via the D-RAP. Following US Government authorization of a Contractor’s request for delay via the D-RAP, the SD transaction will be auto-generated and distributed. If an authorization is not approved or denied by the SDDC COR in D-RAP within 3 business days, the contractor’s request will be auto-approved and the SD transaction will be auto generated and distributed by D-RAP.

3.A.11.4.9 BD: The Contractor shall submit a request to end the authorized delay via the D-RAP. Following US

Government authorization of a Contractor’s delay end request via the D-RAP, the BD transaction will be auto-generated and distributed. If the SDDC COR determines that the Contractor’s reporting of the delay duration is inflated, the previously approved delay authorization may be voided. In this case, the COR will approve the delay end date to match the delay start date, resulting in the RDD not being extended.

3.A.11.4.10 The SD/BD transaction pair generated via the D-RAP recommits the Contractor to a new delivery date defined as: RDD + (# days elapsed from SD to BD). For a shipment RDD to be amended, both an SD and BD transaction must be authorized and generated via the D-RAP.

3.A.11.4.11 RA: This transaction will be auto-generated based on US government notification via the D-RAP to the contractor that a contractor-owned container is available for pick-up.

3.A.12 Manual Operational Reports

The Contractor shall provide the cognizant SDDC activity and the military activity responsible for cargo documentation at each port where US Government cargo is lifted and/or discharged certain information in connection with cargo at that port for cargo ordered with liner terms. For cargo loaded/discharged on free basis, US

Government will provide the contractor with necessary lift/discharge reports for manifesting/ITV purposes. Report format, distribution, submission schedule and medium are described in Attachment 5 (Reports and Formats).

- Cargo Lift Information – Containers

- Cargo Lift Information – Breakbulk

- Pre-Arrival Notice

- Contractor Containerization

- Cargo not lifted as booked / booked and not lifted

3.A.12.1 Vessel Position Reports: When specifically requested by the COR, the Contractor shall furnish SDDC with the daily noon position of any and all of the Contractor's ships operating in the routes covered by this contract.

3.A.13 Vessel Cutoffs, Late Gates, and Expedited Origin Linehaul

3.A.13.1 Vessel Cutoffs

3.A.13.1.1 The Contractor shall provide local cutoffs in IBS Web Vessel Schedule (IBS-WVS) Module keep the

Ordering Officers and shippers apprised of changes and update the local cutoffs in IBS-WVS Module as soon as the change is known.

3.A.13.2 Origin Cutoffs

3.A.13.2.1 If the Contractor does not provide a local cutoff in IBS-WVS, the default local cutoff is close of business

1 working day before the vessel cutoff at the port with an additional day for each 300 miles from the inland origin point to the port, rounded to the nearest whole day. If the local cutoff falls on a weekend, the cutoff shall be the final business day of that week.

3.A.13.3 Late Gates

3.A.13.3.1 The Contractor shall lift cargo to the booked vessel when cargo is received after the Contractor's vessel cutoff at no additional charge, if mutually agreeable arrangements have been made with the Contractor for a late gate.

3.A.13.4 Expedited Origin Linehaul to POE

3.A.13.4.1 Contractors shall provide expedited origin linehaul from origin to the booked port of embarkation (POE) when ordered at time of booking by the Ordering Officer. Contractor shall be paid at the rate in Table of

Accessorials for the specific origin/port combination ordered in the booking. No payment shall be made if the requested level of service is not provided as booked.

EXPEDITED LINEHAUL SERVICE SCHEDULE

Minimum Charge (up to 199 miles) $350.00

200 miles to 400 miles $450.00

401 miles to 599 miles $750.00

Over 599 miles $750.00 plus $0.25 per mile for each mile over 599

3.A.14 Required Delivery Date (RDD)

3.A.14.1 The Contractor shall deliver all cargo by the Required Delivery Date (RDD) specified in the accepted booking.

Changes to the RDD will be granted only as described below:

3.A.14.1. 1 When staging is directed by the US Government prior to RDD, as defined by Section 3.A.11.4.3.

(HG/HR guidance), Contractor is recommitted to a new RDD in accordance with Section 3.A.11.4.6.

3.A.14.1.2 When a delay is authorized in writing by the US Government prior to RDD as defined by Section

3.A.11.4.7 (SD/BD guidance), Contractor is recommitted to a new RDD in accordance with 3.A.11.4.10.

Documentation supporting the SD/BD transaction pair will be submitted via the D-RAP by the contractor.

3.A.14.1.3 When consignee is unable to accept local delivery of cargo prior to RDD, as defined by Section

3.A.11.4.1. (AV guidance), the Contractor shall receive consideration for on-time delivery. However, due diligence shall be exercised to meet RDD or achieve delivery at the earliest possible time after RDD.

3.A.15 Less-Than-Container-Load…