Attachment_1 _TDS_PWS _4_Apr_14.pdf

Performance Work Statement (PWS)

Total Delivery Services (TDS)

4 April 2014

Table of Contents

Total Delivery Services

1. Description of Services

1.1. International Transportation Services

1.1.1. Scope of Services

1.1.2. Basic/Non-Basic Service

1.1.3. International Accessorial Services

1.1.4. Intransit Visibility

1.1.5. IDE/GTN Convergence (IGC) (formerly Global Transportation Network (GTN))

1.1.6. High Volume Shipping Locations

1.1.7. Contingency/Redirection/Surges

1.1.8. Size/Weight Limitations

1.1.9. Aggregate Shipments

1.1.10. Adjustment of Shipment Weights

1.1.11. Shipping Systems

1.1.12. Commercial Forms and Procedures

1.1.13. Ordering

1.1.14. Damage or Loss

1.1.15. Supply-Chain Security Procedures

1.1.16. Invoicing/Billing/Payment

1.1.17. Technical and Service Support

1.1.18. Technical and Service Enhancements

1.1.19. Customs

1.1.20. CENTCOM Safety and Audit Oversight Program

1.2. Domestic Transportation Services

1.2.1. Scope of Services

1.2.2. Basic Service

1.2.3. Domestic Accessorial Services

1.2.4. Intransit Visibility

1.2.5. IDE/GTN Convergence (IGC) (formerly Global Transportation Network (GTN))

1.2.6. High Volume Shipping Locations

1.2.7. Contingency/Redirection/Surges

1.2.8. Size/Weight Limitations

1.2.9. Aggregate Shipments

1.2.10. Adjustment of Shipment Weights

1.2.11. Shipping Systems

1.2.12. Commercial Forms and Procedures

1.2.13. Ordering

1.2.14. Damage or Loss

1.2.15. Supply-Chain Security Procedures

1.2.16. Invoicing/Billing/Payment

1.2.17. Technical and Service Support

1.2.18. Technical and Service Enhancements

2. Service Delivery Summary

3. Government Furnished Property and Services

4. General Information

4.1. Cost Recovery Rate

4.2. Contractor Reports

4.3. Regular Meetings

4.4. Installation Access

4.5. Installation Security

4.6. Contractor Logistical Support for CENTCOM ONLY

4.7. Contractor Point of Contact

4.8. Subcontractor Suitability

4.9. General Security

5. Information Assurance

5.1. Requirement for Contractor Information Assurance (IA) Report

5.2. Cyber Security Incidents

6. Appendices

Appendix 6.1 – Definitions and Acronyms Appendix 6.2 – High Volume Shipping Locations Appendix 6.3 – Detail Report Required Data Element Fields Appendix 6.4 – Email Addresses for Monthly Report Submissions Appendix 6.5 – IGC Data Feed Requirements Appendix 6.6 – TDS Theaters Appendix 6.7 – Allowable Delays/Exception Codes Appendix 6.8 – Safety and Audit Oversight Checklist Appendix 6.9 – Foreign Carrier Information Sheet Appendix 6.10 – Vendor Assessment Guidelines for Twenty Critical Security Controls for Effective Cyber Defense: Consensus Audit Guidelines (CAG) Appendix 6.11 – Semi-Annual Report of Sales and Revenue Template

1. Description of Services.

1.1. International Transportation Services. International Transportation Services are defined as those services included within Attachment 2, CLIN Matrix, under the sheets labeled as International (CLINs X001 through X004).

1.1.1. Scope of Services. The contractor shall provide international commercial express package delivery service for the United States (US) Federal Government (hereafter referred to as US Government) for the US Department of Defense (DOD). The contractor is required to provide time-definite, door-to-door pick-up and delivery, transportation, timely and accurate intransit visibility (ITV), Government Third Party Payment System (TPPS) participation, and customs clearance processing (if applicable). The contractor shall provide these services for shipments up to and including 300 lbs.

1.1.1.1. DOD customers are advised, in accordance with Defense Transportation Regulation (DTR) Part II, Chapter 202, this contract is a mandatory source for the transportation and movement of materiel initiated or sponsored by DOD activities unless otherwise exempt (DTR Part II, Chapter 201.)

1.1.1.2. Civilian Federal Agencies/organization partners may also use this contract. Any agency/organization using the TDS contract must adhere to all of its current terms and conditions. No modification to the terms and conditions is allowed without prior approval of the United States Transportation Command (USTRANSCOM) TDS Procurement Contracting Officer (PCO).

1.1.1.2.1. Federal Agencies/organization partners will need to establish accounts with each contractor they use. Each civilian Federal Agency/organization is responsible for compliance with the Federal Acquisition Regulation (FAR) 4.6, Contract Reporting, and the civilian Federal Agency supplements thereto. Questions concerning the use of the TDS contract and the methods of procurement (commercial bill of lading (CBL)/government bill of lading (GBL)/Task Order, etc.) against the contract may be addressed to the TDS PCO.

1.1.1.3. Cost-reimbursable contractors (e.g., prime vendor, virtual prime vendor, on-demand manufacturing, quick response, corporate contracts, and Electronic Mall (EMALL) contractors), as approved by the Contracting Officer, may also use the transportation services and rates provided under this contract for official business conducted on behalf of the US Government. Cost-reimbursable contractors are required to complete an Account Approval Form for International Express contracts and have it signed by the responsible Contracting Officer prior to submitting the form to the TDS contractors for an account. For those with access to the private, TDS website, the forms are located at:

https://private.amc.af.mil/A4/WWX/index.htm. For those without access to the private, TDS website, these forms are located at: http://www.amc.af.mil/amccommercialservices/index.asp.

1.1.1.4. This contract may also be used to ship Government-sponsored cargo on a case-by-case basis in support of Foreign Military Sales (FMS) initiatives. Ordering/payment arrangements will be coordinated by US Government personnel when this capability is used.

1.1.2. Basic/Non-Basic Service.

1.1.2.1. Basic Service under this contract is defined as providing all transportation services associated with providing international commercial express package door-to-door service to and from all locations listed in Attachment 2, CLIN Matrix. Non-Basic Service is defined as transportation services associated with providing international commercial express package door-to-door service for locations or service not listed in Attachment 2, CLIN Matrix. The Non-Basic Service rates are the carrier’s commercial service guide rate, minus the carrier’s applicable Non-Basic Service discount. The carrier will code all Non- Basic Service requirements requiring a different rate and transit time than Attachment 2, CLIN Matrix as NBS per Appendix 6.7.

1.1.2.2. Carrier rates, transit times and performance percentages will be posted on a Government only website.

1.1.2.2.1. Contractors may adjust their transit time(s) once a year which will be permitted at the time the Government exercises the option (e.g. 01 Oct 15). The contractor shall provide a detailed statement as to why they need to change their transit times a minimum of 60 days prior to the option being exercised. The Government will review and approve all adjustments.

1.1.2.2.2. Contract prices for basic service shall be inclusive of all associated transportation charges to provide service.

1.1.2.2.2.1. Prepayment or the collection of charges from the consignee shall not be allowed.

1.1.2.2.2.2. The contractor shall assign account numbers to all shippers and/or shipping locations, if one does not already exist.

1.1.2.3. Contractors shall comply with all local laws not in conflict with generally accepted international laws.

1.1.2.4. Transit times shall be inclusive of customs processing and the 24-hour loss or gain from the International Date Line.

1.1.2.4.1. The day of pick-up does not count toward the number of days in transit. Additionally weekends, Federal Holidays and/or those national holidays specific to countries of pickup and/or delivery as applicable do not count as days in transit. The date of delivery counts as a day in transit.

1.1.2.4.2. Basic service is required Monday through Friday, except holidays, and/or those national holidays specific to international countries, as applicable. The contractor shall provide pick-up at contractor lock/drop boxes during the same hours as provided to their commercial customers.

1.1.2.5. Attempted Delivery. Attempt to deliver a shipment three (3) times before contacting the shipper for disposition instructions. The contractor shall leave a notice of attempted delivery on each delivery attempt. For purposes of contract performance, delivery shall be considered accomplished on the date of the first delivery attempt as long as the contractor has documentation to show the consignee was notified of the delivery attempt. The cost of any further disposition, or additional deliveries requested by the shipper, will be the responsibility of the shipper.

1.1.2.6. Refusal by Consignee. If a consignee refuses to accept a delivery, the contractor shall annotate refusal on the order with date, time, and name of person who refused and contact the shipper for disposition instructions. For purposes of contract performance, delivery shall be considered accomplished on the date of the first delivery attempt as long as the contractor has documentation to show the consignee was notified of the delivery attempt. Changes in address for delivery will be the responsibility of the shipper and billed in accordance with the contract rates or contractor’s commercial rates, whichever is lower. Shipments being returned to the consignor will be at the consignor’s expense.

1.1.2.7. Delivery Guarantee.

1.1.2.7.1. The contractor shall meet the delivery guarantee, as identified in Attachment 2, CLIN Matrix, on each shipment or the shipper will be entitled to a 100% shipper-initiated credit.

1.1.2.7.2. If shipper-initiated credit is requested by the shipper within 30 days after the contractually required delivery date, the contractor shall either not invoice or shall credit the agency or organization finance offices for those shipments that do not meet the delivery guarantee. There are at least three methods to initiate a shipper-initiated credit

1.1.2.7.2.1. Use of the Government approved Third Party Payment System (TPPS) notes or e-bill functions1 to request credit for late delivery.

1.1.2.7.2.2. Use of the contractors webpage to request a credit for late delivery.

1.1.2.7.2.3. Use of e-mail/phone or other means of contact to request a credit to the shippers credit card or account.

1.1.2.8. Standardized Delivery Exception Codes. In order to standardize delivery exception codes in the monthly detail report, contractors shall utilize the Delivery Exception Codes identified in Appendix 6.7.

1.1.3. International Accessorial Services.

1.1.3.1. All international accessorial services not specifically identified and priced separately in Attachment 2, CLIN Matrix are included in the basic service contract price. Any additional accessorial fees determined necessary to the contract shall be incorporated via contract modification by the Contracting Officer.

1.1.3.2 The Subcontract Line Item Number (SLIN) titled “Non-Basic Services, Accessorial Discount (Percentage)” within Attachment 2, CLIN Matrix is applicable when the shipper is using non-basic service and there are associated assessorial charges with the shipper’s requirement. This SLIN shall apply a discount to the accessorial charges required for the shipper’s non-basic service requirement.

1 E-Bills may be used as a supplement to charges made on original invoices. For example, an e-bill may be used as either a Charge Buyer (which results in a credit to the carrier) or Charge Seller (which results as a credit to the Government). Typically, it is used for supplemental charges, refunds, and/or changes to an original invoice within the system. The notes feature is used to communicate actions between Buyer and Seller and can be used for information which helps in solving the final payment settled action. Notes is a communication tool used electronically vs telecon to resolve pricing. All notes are maintained electronically as a part of the record.

1.1.4. Intransit Visibility.

1.1.4.1. Intransit Visibility (ITV) shall be provided by the contractor for all shipments from the date and time of pick-up to the date and time of delivery.

1.1.4.2. ITV information shall include as a minimum: Government-Furnished Transportation Control Number (TCN), shipper's reference number, contractor's unique identifying CBL number (Airway Bill), dates and times for shipment origin departure (city, state, country, zip code), trans-shipment points-arrival and departure (city, state, country, zip), destination arrival (city, state, country, zip code), Proof of Delivery (POD) with consignee's name, and delay codes (if applicable). POD is a paper or electronic record maintained by the carrier that establishes when a specific shipment was offered for delivery at the destination and when it was accepted for delivery as authenticated by the signature of the consignee Transportation Officer (TO) or representative. Update ITV shipment status information each day at least the same number of times as required for carrier tracking systems.

1.1.4.3. The prime contractor shall provide ITV 24-hours a day, 7-days a week via the prime contractor’s website and toll free telephone service in order to provide the transportation status of shipments. If the prime contractor subcontracts service to a subcontracted contractor, the prime contractor shall continue to provide ITV details while the shipments are in the possession of the subcontracted contractor.

1.1.5. IDE/GTN Convergence (IGC) (formerly Global Transportation Network (GTN)).

1.1.5.1. The contractor shall provide an interface with the DOD's Integrated Data Environment/Global Transportation Network Convergence as required in attached Appendix 6.5 without restriction.

1.1.5.2. Development and execution of Electronic Data Interchange (EDI) transaction sets within the scope of the contract will be agreed upon by the IGC Program Office, detailed and documented in the standard Military Surface Deployment and Distribution Command (SDDC) Trading Partner Agreement (TPA) prior to contract performance.

1.1.5.3. Development and execution of EDI transaction sets will be detailed and documented in the standard SDDC TPA prior to TDS performance. The trading partner agreement information can be accessed via SDDC webpage at http://www.sddc.army.mil/GCD/SiteAssets/TPA_Template%20Nov11.pdf.

1.1.5.4. The contractor shall be capable of providing an accurate data feed to IGC in accordance with Appendix 6.5 in order to begin contract performance.

1.1.6. High Volume Shipping Locations. For the High Volume Shipping Locations (HVSL) identified in Appendix 6.2, Saturday pick-up (for dock clearing purposes only), multiple pick-up points, multiple delivery points, and multiple pick-up times are required at no additional cost to the government. HVSLs are those locations with greater than an estimated 7,000 shipments per year, per account. The contractor shall work with local transportation offices to make arrangements to provide services at these locations.

As volume dictates, revisions to this list may be accomplished by modification to the contract.

1.1.7. Contingency/Redirection/Surges. In the event of a contingency/state of war (declared or not), where the shipments are undeliverable to a location/country, the contractor shall contact the shipper for possible redirection of shipments. The shipper will coordinate with the appropriate government offices, agencies, and contractor to ensure proper receipt and ultimate delivery of redirected shipment to the consignees. If any such redirection causes an increase or decrease in the cost of performance, the contractor shall notify the USTRANSCOM Contracting Officer in writing as soon as practicable. During a contingency/surge, the contractor may be required to support two to three times the normal government traffic flow, at the same level of service prior to the contingency/surge.

1.1.8. Size/Weight Limitations.

1.1.8.1. The contractor shall adhere to the size and weight limitations of this contract.

1.1.8.1.1. For shipments between 1 and 300 lbs., 119 inches in length and 165 inches in length and girth, combined shall be the maximum size limit.

1.1.8.2. Multiple piece shipments may be shipped via TDS as long as no individual package exceeds 300 lbs. in either scale or dimensional weight. These shipments will be billed using the applicable Aggregate Weight rate per pound. Multiple piece shipments with one or more pieces exceeding 300 lbs. in either scale or dimensional weight will not be shipped via this contract. The total weight of a multiple package shipment shall be unlimited.

1.1.8.3. Shipment weights are inclusive of pallet/skid weights.

1.1.9. Aggregate Shipments.

1.1.9.1. All shipments on the same air bill/manifest shipped from one shipping system (same location and account number), at the same time, destined to the same consignee, shall be aggregated for the lowest cost.

1.1.9.2. Multiple package shipments shall be consolidated on the same order up to the contractor’s commercial practice for number and type of shipment.

1.1.10. Adjustment of Shipment Weights.

1.1.10.1. The contractor shall follow their commercial express package procedures for adjustments on shipment weight as they pertain to reweighs.

1.1.10.2. When applicable, dimensional weight shall be calculated by the contractor using the following formula: Length x Width x Height divided by 139 (all measurements are in inches with a maximum length of 119 inches and a combined girth of 165 inches). The contractor shall charge the greater amount of the actual weight or the dimensional weight. Any pieces over 300 lbs. scale or dimensional weight shall not be tendered or accepted as a TDS shipment. These shipments will be shipped either by Air Mobility Command Channel missions or other allowable Defense Transportation System (DTS) means.

1.1.10.3. If the shipper does not indicate the shipping weight, the contractor shall weigh the package and annotate the shipment weight. If the shipment weight listed on the order is different than the actual weight, e.g., as a result of reweigh or dimensional weight, or no weight was initially identified, the contractor shall indicate on the billing documents those shipments which were adjusted.

1.1.11. Shipping Systems.

1.1.11.1. The contractor shall provide a shipping system (hardware and software) to accounts averaging 25 or more weekly shipments with the contractor at no additional cost to the Government after a qualified shipper makes a request. If the contractor provides a shipping system to commercial customer using a lesser number of shipments, the lesser number shall be used. The contractor shall have 30 days to provide shipping systems after a qualified shipper makes a request. This requirement includes delivery, maintenance, installation/set-up, and initial training required on use of the system. Further, the contractor is required to remove the system within 30 days of shipper request or at the end of the contract. The shipper must provide a secure communication channel in which the shipping device can communicate to the carrier. The communication channel must be a high-speed connection using DSL, cable, or fiber optic (FiOS) providers. Shippers may also connect the shipping hardware to their existing network in order to manage communications to and from the shipping device. In the event that the shipping device is connected through an existing military network, the shipper is obligated to secure the hardware using his or her own network security rules and guidelines. Shipper may install any necessary security or anti-virus software on the hardware to preserve the integrity of the military network. Shipper will be responsible to perform security scans, implementing required windows updates, and security patches.

1.1.11.2. The shipping system shall be capable of printing shipping labels with a TCN bar code format and in clear text for DOD shippers.

1.1.11.3. Shipments from Federal Agencies or Medical Prime Vendor do not require a TCN to be shipped. They will use local procedures to establish tracking numbers.

1.1.11. 4. Contractors shall participate as required in the development and testing of automated systems by providing user feedback to the government and by inputting manifest and other shipping data to the system(s) as necessary.

1.1.12. Commercial Forms and Procedures.

1.1.12.1. The contractor shall provide all commercial forms (CFs) (electronically and hard copy) necessary for the successful pick-up, transportation, and delivery of all items under this contract.

1.1.12.1.1. Both the hardcopy CBL and electronic commercial form shall have 20 alphanumeric spaces for the agency or organization to use.

1.1.12.2. Terms and conditions of the CBL are applicable to shipments moving under CBLs, commercial form, or other approved document.

1.1.13. Ordering.

1.1.13.1. For the purposes of this contract, a CBL, electronic CF, GBL, Government Charge Card or other government document as approved by the USTRANSCOM Contracting Officer shall constitute the task order. No further purchase order documents, delivery order, task order or blanket purchase agreements, etc. are required during the ordering process.

1.1.13.2. Selection of contractors/carriers to support Defense Transportation System requirements will utilize a best value approach based on determining factors such as quality of service, past performance, cost/price, claims experience, ability to perform service within stated requirements, and carrier commitment of transportation assets to readiness support. Under the best value approach, cost is not the only factor in carrier selection. Past performance factors include, but are not limited to, on-time pickup and delivery percentage, lost or damaged cargo percentage, number of claims, and provider availability.

Service factors include, but are not limited to, carrier ability to respond, routing, and ability to provide in transit visibility and commitment of transportation assets to readiness support.

1.1.13.3. TOs are authorized to issue CBLs when supporting DD Form 1348-1A, DD Form 1149, DD Form 1384, DD Form 250, or other supporting documents are available. Supporting documents will be retained with the shipment. Customers should be advised that additional carrier or Government required paperwork (e.g. U.S. export documentation) might be required to accompany the international/domestic shipment. Customers furnishing supporting documents, contract data, or other information to TOs are responsible for their accuracy.

1.1.14. Damage or Loss.

1.1.14.1. The contractor shall be liable for loss, damaged, or misrouted shipments. Unless the shipper declares a higher value on the shipment documentation, the contractor’s liability shall be limited to the lower dollar amount of $50,000 or $9.07 per pound or the actual value of the cargo (pursuant to the DTR Part II, Chapter 210, paragraph J.2.b). All damaged shipments remain the property of the US Government.

1.1.14.2. Contractors shall provide notification to the shipper of any incident (e.g. hard landing or crash) within 24 hours; also, they shall provide a copy of the manifest to shippers within 48 hours if available.

1.1.14.3. Claims may be filed by the shipper within 30 days of receipt of the manifest (or ship date if no manifest is provided) unless the contractor’s commercial practice allows for a longer period for shippers to file claims, in which case the contractor’s commercial claim filing deadline will apply.

1.1.15. Supply-Chain Security Procedures. The contractor shall follow their commercial security and customs procedures to safeguard packages against theft, loss, tampering, or damage.

1.1.16. Invoicing/Billing/Payment. 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 U.S. Bank’s freight payment system and all DOD cargo movements must be offered only to commercial carriers who utilize U.S. Bank as their billing and payment system.

1.1.16.1. All contractors that conduct business with the DOD must be TPPS capable. Even if otherwise qualified, a contractor that is not TPPS certified will not be eligible to transport DOD freight.

1.1.16.1.1. TPPS is an automated on-line payment processing and transaction tracking system that supports logistical transactions. A designated financial institution receives a transaction processing fee for every paid transaction. It consists of five primary functions: (1) electronic data transmission, (2) payment approval process, (3) electronic payment and billing, (4) communication for dispute resolution, and (5) customized data analysis.

1.1.16.1.2. Payment currency shall be determined between the shipper and the contractor.

1.1.16.1.3. The prime contractor shall have a signed Trading Partner Agreement (TPA) in place to ensure payments under this contract are made to the prime contractor (e.g. CRAF carrier). The contractor shall provide the Contracting Officer with a copy of this agreement prior to award of contract.

1.1.16.1.4. The current authorized Approved TPPS is U.S. Bank Transportation Solutions.

contractors should contact U.S. Bank at 1-800-417-1844 or by email at customer.support@usbank.com. All services deemed payable by US Government or Department of Defense via the TPPS will be paid by U.S. Bank Transportation Solutions. A fee is required to participate in the program.

1.1.16.1.4.1. Contractors are required to submit the shipment’s contract number via EDI.

In the event contractors need assistance configuring their EDI file to include the contract number, carriers can call the U.S Bank customer service help desk or email the customer service email box and a representative will open a Service Request to assign a U.S. Bank EDI analyst to assist you.

1.1.16.2. Non-TPPS Accounts. Federal Agencies not required to use the Third Party Payment System will use their existing Payment Systems and Procedures to pay prime contractors for services rendered.

1.1.16.2.1. The contractor shall adhere to invoicing requirements for Non-TPPS accounts as identified by the government shipping activities not utilizing the TPPS.

1.1.17. Technical and Service Support. The contractor shall provide toll free telephone service and an e-mail address for TDS specific issues in order to provide technical and service support at the same level provided to its commercial customers.

1.1.18. Technical and Service Enhancements. During the contract, the contractor shall provide updated/new technology, basic service features, and accessorial services as provided to its commercial customers.

1.1.19. Customs.

1.1.19.1. The contractor TDS rates and transit times shall be inclusive of all requirements to provide customs clearance for shipments under this contract.

1.1.19.1.1. The contractor is responsible for providing duty-free cargo clearance with host nation customs officials. Additional country-specific customs guidance for DOD shippers, prescribed by combatant commanders, can be reviewed in the Defense Transportation Regulation (DTR) Part V, DOD Customs/Border Clearance Policies and Procedures, which is available on the public web page at http://www.transcom.mil/dtr/part-v/.

1.1.19.1.2. Any additional customs fees or reductions arising during the contract performance period will be substantiated with the Department of State (Embassy) and/or the foreign government involved. Upon receipt of documentation, the USTRANSCOM Contracting Officer will review and make a determination on a case by case basis whether there is Contractor entitlement to a rate adjustment and payment is permitted in accordance with United States laws, treaties, or any applicable Status of Forces Agreement. A tax, customs fee, or other fee charged by a foreign government that does not result in a direct, tangible service or convenience in exchange for payment will not be reimbursed by the United States Government.

1.1.19.1.3. The US Government shall provide the contractor with all accompanying forms and documents required for the contractor to effect customs clearance. It is the shipper’s responsibility to provide the carrier all required customs documentation in a complete and accurate manner. Inaccurate paperwork may result in additional taxes/duties, which will be disputed IAW carrier procedures.

1.1.19.2. Contractors shall serve as agents or customs brokers and appoint sub-agents, as may be necessary, to act directly or through such re-delegation, appointment, or designation to other customs brokers, persons or business concerns as it deems necessary for performance of customs clearance and shall provide all customs forms necessary for customs clearance.

1.1.19.3. The contractor shall notify the shipper and consignee within 24 hours if shipments are detained in customs.

1.1.20. CENTCOM Safety and Audit Oversight Program.

1.1.20.1. In order to provide service to a Central Command (CENTCOM) Area of Responsibility (AOR) location, the Civil Reserve Air Fleet (CRAF) contractor (prime contractor) is required to complete a safety and audit oversight program on all subcontracted contractor air carriers that operate into or out of a military-controlled Forward Operating Base (FOB) / Forward Operating Location (FOL) airfield. This section does not apply to operations into or out of civilian-controlled airfields without a joint-use military presence where air carrier operations are governed by the applicable country Civil Aviation Authority (CAA) requirements. As a minimum, the contractor shall comply with the technical requirements identified in the attached Worldwide Express Safety and Audit Oversight Checklist (Appendix 6.8). In addition, the prime contractor shall not use air contractors listed on the European Banned Carrier Listing at http://ec.europa.eu/transport/air-ban/list_en.htm, the Excluded Parties Listing at https://www.sam.gov/portal/public/SAM/ , and the Department of Treasury: Office of Foreign Assets Control, Special Designated Listing at http://www.ustreas.gov/offices/enforcement/ofac/sdn/.

1.1.20.1.1. CRAF contractors (prime contractors) that will utilize a subcontracted contractor to perform any portion of the airlift requirement within the CENTCOM AOR must assess the level of safety of the subcontracted contractor. This assessment will be based upon a safety audit performed by the CRAF contractor or an independent International Air Transport Association (IATA) accredited 3rd party audit organization. Air Mobility Command (AMC/A3B) approved US-flag or foreign flag subcontracted contractors are exempt from the audit as long as they remain on the AMC/A3B DOD-approved carrier listing.

1.1.20.1.2. Following completion of each safety audit, the CRAF contractor shall issue a “Statement of Compliance” to the contracting officer affirming each subcontracted contractor complies with the technical requirements of paragraph 1.1.20. This certificate is valid for 24 months. The CRAF contractor shall develop a subcontracted contractor audit program that provides for an onsite audit of subcontracted contractors at least every 24 months in order to issue subsequent “Statements of Compliance.”

1.1.20.1.3. Should the government determine that any of the following conditions exist; it may report the situation to the proper Government officials or take further corrective action:

a. Contractor’s failure to meet any of the obligations imposed by paragraph 1.1.20.

b. Involvement of one of the CRAF contractor’s and/or subcontracted contractor’s aircraft in a serious or fatal accident, incident, or operational occurrence (regardless of whether or not such aircraft is being used in the performance of this contract)

c. Any other condition that affects the safe operation of contractor’s flight hereunder.

1.1.20.2. Within 90 days of contract award, the CRAF carrier (prime contractor) shall complete all required safety and audit oversight requirements and provide the Contracting Officer a complete MS- Excel spreadsheet listing of all foreign flag subcontractors used in performance of this contract. The information shall include the carrier’s name, aircraft type, aircraft registration number, aircraft country of operating certificate, and the date of the prime contractor’s last audit on the subcontractor. Any subcontractor changes after the initial 90 days will require the prime contractor to complete the safety and audit oversight requirements prior to using a new subcontractor and shall require the contractor to provide an updated list to the contracting officer within five business days. Note: The Government retains the right to request copies of all completed audit reports.

1.1.20.3. Incident Reporting. In the event of an air, surface, or ground safety incident, within the CENTCOM AOR, the contractor shall immediately notify the CENTCOM Deployment and Distribution Operations Center (CDDOC) (Tel: 011-965-2389-5217), the Contracting Officer at keri.lindsco@ustranscom.mil, telephone number is (618) 220-6732 and the Program Manager at org.amca4-74@us.af.mil, telephone number (618) 229-4684. The contractor shall state their name, which contractor they represent, incident type, incident location, aircraft or vehicle type, aircraft tail number, and incident time (Zulu). Additionally, the contractor shall provide the Contracting Officer at keri.lindsco@ustranscom.mil, and the Program Manager at ORG.AMCA4-74@us.af.mil the circumstances surrounding the incident to include copies of cargo manifests within 12 hours.

1.1.20.4. Aircraft Recovery Process.

1.1.20.4.1. Within 12 hours, the contractor shall provide an aircraft recovery plan identifying their process to repair and remove the aircraft. The contractor shall provide daily status information to the Senior Airfield Authority, Contracting Officer and Program Manager on the progress to repair/remove the aircraft.

1.1.20.4.2. If the contractor cannot remove the aircraft within 24 hours, the Government reserves the right to move the aircraft to another parking spot after consulting with the contractor and may charge the contractor for associated costs. In cases where the aircraft is blocking an active runway or impairing performance of the military mission (i.e. crash), the Government reserves the right to take immediate action with regards to aircraft removal. The Government may charge the contractor for associated costs.

1.2. Domestic Transportation Services. Domestic Transportation Services are defined as those services included within Attachment 2, CLIN Matrix, under the sheets labeled as Domestic (CLINs X005 through X015).

1.2.1. Scope of Services. The contractor shall provide domestic commercial express package delivery service for the United States DOD and DOD contractors. Domestic express delivery service includes next-day, second-day, and third-day delivery service to include door-to-door pickup and delivery, transportation, and ITV of extremely urgent letters and packages. Pursuant to Attachment 2, CLIN Matrix, service is required for delivery of packages up to 150 lbs within the Continental United States (CONUS) and for delivery of packages 1 to 300 lbs between CONUS and Alaska, Hawaii, and Puerto Rico, and within Alaska, Hawaii, and Puerto Rico. The Government reserves the right to incorporate additional customers, service levels (including ground services), and service locations as requirements dictate. If additional service levels are added, a workload estimate will be provided to the carriers and associated rates negotiated.

1.2.1.1. DOD customers are advised, in accordance with Defense Transportation Regulation (DTR) Part II, Chapter 202, this contract is a mandatory source for the transportation and movement of materiel initiated or sponsored by DOD activities unless otherwise exempt (DTR Part II, Chapter 201.)

1.2.1.2. Government-Owned Contractor-Operated (GOCO)/ Contractor-Owned Contractor-Operated (COCO) facilities and third party logistics contractors under cost-reimbursable contracts may also use this contract, at the discretion of the Government, for official business conducted on behalf of the US Federal Government. These Government contractors will provide the TDS contractors an approved memo with their request to establish an account. This memo must be signed by the contracting officer responsible for their contract. If a request is received without this memo the Government contractor shall contact the Program Management Office at ORG.AMCA4-74@us.af.mil for instructions.

1.2.2. Basic Service.

1.2.2.1. The contractor shall provide domestic express delivery service inclusive of next-day, second-day, and third-day delivery service to include door-to-door pickup and delivery, transportation, and ITV of extremely urgent letters and packages. For next-day service, delivery is by 0800 (CLINs X005 and X010), 1030 (CLINs X006 and X011), and 1500 (CLINs X007 and X012) to most areas. Delivery to rural areas within each service level will be in accordance with each carrier’s commercial service guide.

Pursuant to Attachment 2, CLIN Matrix, service is required for delivery of up to 150 lbs within CONUS and for delivery of packages up to 300 lbs between CONUS and Alaska, Hawaii, and Puerto Rico, and within Alaska, Hawaii, and Puerto Rico.

1.2.2.1.1. The contractor shall deliver to 95% of all US ZIP Codes located in the CONUS, Alaska, Hawaii, and Puerto Rico (excluding Post Office boxes, Army Post Office (APO) or Fleet Post Office (FPO) addresses), or to all the ZIP Codes provided commercially, whichever is greater.

1.2.2.2. Pick-up and Delivery. The Government may require multiple pickup and delivery points within an activity using the same account number or separate account numbers.

1.2.2.3. Attempted Delivery. Attempt to deliver a shipment three (3) times before contacting the shipper for disposition instructions. The contractor shall leave a notice of attempted delivery on each delivery attempt. For purposes of contract performance, delivery shall be considered accomplished on the date of the first delivery attempt as long as the contractor has documentation to show the consignee was notified of the delivery attempt. The cost of any further disposition, or additional deliveries requested by the shipper, will be the responsibility of the shipper.

1.2.2.4. Delivery Commitment Guarantee. If requested by the shipper within 30 days of the contractually required delivery date, the contractor shall either not bill or shall credit agency or organization finance offices for those shipments that do not meet the delivery commitment. (Note: government users should ensure fiscal accounting rules are followed with respect to any credits received under this clause).

1.2.2.5. DOMEX prices included at Attachment 2, CLIN Matrix for basic service shall be inclusive of all charges (e.g., inclusive of pickup and/or delivery charges and fuel surcharges).

1.2.3. Domestic Accessorial Services. All domestic accessorial services not specifically identified and priced separately in Attachment 2, CLIN Matrix are included in the basic service contract price. Any additional accessorial fees determined necessary to the contract shall be incorporated via contract modification by the Contracting Officer.

1.2.4. Intransit Visibility.

1.2.4.1. The prime contractor shall provide ITV 24-hours a day, 7-days a week via the prime contractor’s website and toll free telephone service in order to provide the transportation status of shipments. If the prime contractor subcontracts service to a subcontracted contractor, the prime contractor shall continue to provide ITV details while the shipments are in the possession of the subcontracted contractor.

1.2.4.2. Tracking/tracing information shall include as a minimum: dates and times of departure from shipment origin, arrival to and departure from transshipment points, and destination arrival; proof of delivery with consignee’s name (if applicable); and delay codes (if applicable). When shipments are delivered without obtaining a signature, the tracking/tracing system shall record the location where the shipment was delivered.

1.2.4.3. The contractor shall update their tracking/tracing system with shipment status information daily, no less than the number of times they update their system for commercial customers.

1.2.5. IDE/GTN Convergence (IGC) (formerly Global Transportation Network (GTN)).

1.2.5.1. The contractor shall provide interface with the DOD's Integrated Data Environment/Global Transportation Network Convergence (IGC) as required in Appendix 6.5 without restriction.

1.2.5.2. Development and execution of EDI transaction sets within the scope of the contract will be agreed upon by the IGC Program Office, detailed and documented in the standard SDDC TPA prior to contract performance.

1.2.5.3. The contractor shall be capable of providing an accurate data feed to IGC in accordance with Appendix 6.5, in order to begin contract performance.

1.2.5.4. Development and execution of EDI transaction sets will be detailed and documented in the standard SDDC TPA prior to performance. The trading partner agreement information can be accessed at www.sddc.army.mil/GCD/SiteAssets/TPA_Template%20Nov11.pdf.

1.2.6. High Volume Shipping Locations. For the High Volume Shipping Locations (HVSL) identified in Appendix 8.2, Saturday pick-up (for dock clearing purposes only), multiple pick-up points, multiple delivery points, and multiple pick-up times are required at no additional cost to the government. HVSLs are those locations with greater than an estimated 7,000 shipments per year, per account. The contractor shall work with local transportation offices to make arrangements to provide services at these locations.

As volume dictates, revisions to this list may be accomplished by modification to the contract.

1.2.7. Contingency/Redirection/Surges. In the event of a contingency/state of war (declared or not), where the shipments are undeliverable to a location, the contractor shall contact the shipper for possible redirection of shipments. The shipper will coordinate with the appropriate government offices, agencies, and contractor to ensure proper receipt and ultimate delivery of redirected shipment to the consignees. If any such redirection causes an increase or decrease in the cost of performance, the contractor shall notify the USTRANSCOM Contracting Officer in writing as soon as practicable. During a contingency/surge, the contractor may be required to support two to three times the normal government traffic flow, at the same level of service prior to the contingency/surge.

1.2.8. Size/Weight Limitations.

1.2.8.1. The contractor shall adhere to the size and weight limitations of this contract.

1.2.8.1.1. For domestic small package service, no single package shall exceed 150 lbs, or 108” in length and 130” in length and girth combined or the package size provided to their commercial customers, whichever is greater.

1.2.8.1.2. For domestic heavyweight shipments to Alaska, Hawaii, or the Commonwealth of Puerto Rico, no single package shall exceed 300 lbs, or 108” in length and 190” in length and girth combined or the package size provided to their commercial customers, whichever is greater.

1.2.9. Aggregate Shipments.

1.2.9.1. All shipments on the same order/bill/manifest, shipped from one shipping system (same location and account number) at the same time, destined to the same consignee, shall be aggregated for the lowest cost.

1.2.9.2. Multiple package shipments shall be consolidated on the same order up to the contractor’s commercial practice for number and type of shipment.

1.2.10. Adjustment of Shipment Weights.

1.2.10.1. The contractor shall charge the greater amount of the actual weight or the dimensional weight.

Dimensional weight shall be calculated by the contractor using the following formula for shipments tendered in pounds and inches: Length x Width x Height divided by 166.

1.2.10.2. If the shipment weight listed is different from the actual weight, e.g., as a result of reweigh or dimensional weight, the contractor shall indicate on the billing documents submitted to the paying activity those shipments that have been adjusted. If the shipper does not indicate the shipping weight, the contractor shall weigh the package and annotate the weight.

1.2.11. Shipping Systems. The contractor shall provide a shipping system (hardware and software) to accounts averaging 25 or more weekly shipments with the contractor at no additional cost to the Government after a qualified shipper makes a request. If the contractor provides a shipping system to commercial customer using a lesser number of shipments, the lesser number shall be used. The contractor shall have 30 days to provide shipping systems after a qualified shipper makes a request. This requirement includes delivery, maintenance, installation/set-up, and initial training required on use of the system. Further, the contractor is required to remove the system within 30 days of shipper request or at the end of the contract. The shipper must provide a secure communication channel in which the shipping device can communicate to the carrier. The communication channel must be a high-speed connection using DSL, cable, or fiber optic (FiOS) providers. Shippers may also connect the shipping hardware to their existing network in order to manage communications to and from the shipping device. In the event that the shipping device is connected through an existing military network, the shipper is obligated to secure the hardware using his or her own network security rules and guidelines. Shipper may install any necessary security or anti-virus software on the hardware to preserve the integrity of the military network.

Shipper will be responsible to perform security scans, implementing required windows updates, and security patches.

1.2.12. Commercial Forms and Procedures.

1.2.12.1. The contractor shall use Commercial Forms and Procedures (CF&P) for shipping and invoicing, unless individual shippers specifically require the use of other approved documents. The contractor shall provide all commercial forms (electronically and hard copy) necessary for the successful pick-up, transportation, and delivery of all items under this contract.

1.2.12.2. The contractor shall not demand prepayment from the consignee.

1.2.12.3. The consignee shall inspect shipment and annotate any loss, damage, or shrinkage on the delivery documentation. If loss, damage or shrinkage is discovered after receipt of the shipment, the consignee must promptly notify the contractor and allow the contractor to examine the shipment.

1.2.13. Ordering.

1.2.13.1. For the purposes of this contract, a CBL, electronic CF, GBL, Government Charge Card or other government document as approved by the USTRANSCOM Contracting Officer shall constitute the task order. No further purchase order documents, delivery order, task order or blanket purchase agreements, etc. are required during the ordering process.

1.2.13.2. Selection of contractors/carriers to support Defense Transportation System requirements will utilize a best value approach based on determining factors such as quality of service, past performance, cost/price, claims experience, ability to perform service within stated requirements, and carrier commitment of transportation assets to readiness support. Under the best value approach, cost is not the only factor in carrier selection. Past performance factors include, but are not limited to, on-time pickup and delivery percentage, lost or damaged cargo percentage, number of claims, and provider availability.

Service factors include, but are not limited to, carrier ability to respond, routing, and ability to provide in transit visibility and commitment of transportation assets to readiness support.

1.2.13.3. TOs are authorized to issue CBLs when supporting DD Form 1348-1A, DD Form 1149, DD Form 1384, DD Form 250, or other supporting documents are available. Supporting documents will be retained with the shipment. Customers should be advised that additional carrier or Government required paperwork (e.g. U.S. export documentation) might be required to accompany the international/domestic shipment. Customers furnishing supporting documents, contract data, or other information to TOs are responsible for their accuracy.

1.2.14. Damage or Loss. The contractor is liable for damage and loss in accordance with their Commercial Shipping Guide. All damaged shipments remain the property of the US Government.

1.2.14.1. Contractors shall provide notification to the shipper of any incident (e.g. hard landing or crash) within 24 hours; also, they shall provide a copy of the manifest to shippers within 48 hours if available.

1.2.14.2. Claims may be filed by the shipper within 30 days of receipt of the manifest (or ship date if no manifest is provided) unless the contractor’s commercial practice allows for a longer period for shippers to file claims, in which case the contractor’s commercial claim filing deadline will apply.

1.2.15. Supply-Chain Security Procedures. The contractor shall follow their commercial procedures to safeguard packages against theft, loss, tampering, or damage.

1.2.16. Invoicing/Billing/Payment. 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 U.S. Bank’s freight payment system and all DOD cargo movements must be offered only to commercial carriers who utilize U.S. Bank as their billing and payment system.

1.2.16.1. All contractors that conduct business with the DOD must be TPPS capable. Even if otherwise qualified, a contractor that is not TPPS certified will not be eligible to transport DOD freight.

1.2.16.1.1. TPPS is an automated on-line payment processing and transaction tracking system that…