Attachment_1-_GTMO_PWS_.pdf

HTC711-14-R-W001

Attachment 1

PERFORMANCE WORK STATEMENT

Sealift Transportation Services - Guantanamo Bay, Cuba (GTMO)

Military Surface Deployment and Distribution Command (SDDC)

14 August 2014

SECTION 1 BACKGROUND

1.A. BACKGROUND……………………………………………………………………………..3

SECTION 2 SCOPE

2.A. SCOPE

2.A.1 Overview 2.A.2 Cargo Types

SECTION 3 GENERAL REQUIREMENTS

3.A. SPACE COMMITMENT

3.B. SHIPMENT BOOKING

3.B.1 Booking Acceptance

3.B.2 Response to Booking Requests 3.B.3 Automated Booking 3.B.4 Schedule Maintenance

3.C. ORIGIN SERVICES

3.C.1 Equipment Pools (container only)

3.C.2 Spot Date

3.D. OCEAN TRANSPORTATION

3.D.1 Port Operations

3.D.2 Cargo Lift, Advancement and Rolls

3.E. DESTINATION SERVICES

3.E.1 Delivery to Destination 3.E.2 Early Deliveries

3.E.3 Cargo Receipt 3.E.4 Container Pickup/Return

3.F. POV REQUIREMENTS

3.F.1 POV Processing

3.F.2 POV Shipping (Government Sponsored PCS Moves ONLY) 3.F.3 POV Security

3.G. GENERAL/ADMINISTRATIVE

3.G.1 Regulatory Compliance 3.G.2 On-Site Office Space

3.G.3 Hazardous Cargo 3.G.4 Equipment

3.G.5 Quality Control, Reporting, and Records 3.G.6 Electronic Commerce / Electronic Data Interchange (EDI) 3.G.7 Additional Guidance on Specific Transactions

3.H. EXCEPTIONS TO NORMAL SERVICE

3.H.1 Futile Trip 3.H.2 Government Failure to Timely Release Containers

3.H.3 Notification of Receipt of Damaged Cargo 3.H.4 Delay of Scheduled Sailings 3.H.5 Carrier Failure to Load Containers 3.H.6 No Fault Failure to Meet Sailing 3.H.7 Diversion for the Convenience of the Government

3.H.8 Transfer of Containerized Cargo 3.H.9 Security 3.H.10 Damage to Contractor Equipment 3.H.11 Overweight Containers

3.H.12 Changes to Service

SECTION 4 MEASURING PERFORMANCE

4.A. PERFORMANCE REQUIREMENTS

4.A.1 Performance Measures and Performance Standards

4.A.2 Performance Objectives 4.A.3 Performance Objective Assessment 4.A.4 Performance Rating

4.B. ADDITIONAL PERFORMANCE INDICATORS (API)

4.B.1 Overview

SECTION 5 RATE RULES

5.A. APPLICATION OF RATES

5.A.1 Expression of Rates

5.A.2 Acceptance of Booking

5.A.3 Containerized Cargo 5.A.4 Breakbulk 5.A.5 Mileage Rates

5.A.6 Refrigerated Cargo Linehaul Rates

5.A.7 Accessorial Services

5.B. EXCEPTIONS TO GENERAL APPLICATION OF RATES

5.B.1 Movement of Empty US Government-Owned or Leased Containers

5.B.2 Over Dimensional Cargo

APPENDIX I - GUANTANAMO BAY CUBA (GTMO) TRANSPORTATION

REQUIREMENT

1. A.1. Description of GTMO Environment 1.A.2. GTMO AND JAX Port Security Requirments

APPENDIX II – CITY GROUPS

APPENDIX III – ABBREVIATIONS/ACRONYMS AND DEFINITIONS

APPENDIX IV – REPORTS AND FORMATS

APPENDIX V – HAZARDOUS CARGO LIST

SECTION 1 BACKGROUND

1.A. Background

As a component of the United States Transportation Command (USTRANSCOM), the Military

Surface Deployment and Distribution Command (SDDC) provides for liner service of containerized and breakbulk cargo between Jacksonville/Blount Island, Florida and U.S. Naval

Station Guantanamo Bay, Cuba (GTMO).

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 material to and from ports of departure and arrival.

SECTION 2 SCOPE

2.A. Scope

2.A.1 Overview

This contract provides international cargo transportation and distribution services by an ocean common or contract carrier providing regularly scheduled commercial liner service. The contractor shall provide ocean, intermodal and related transportation services as required herein.

The contractor must maintain status as a vessel owning and/or operating ocean common or contract carrier (as defined in the Shipping Act of 1984 (46 USC app. 1701(6), as amended), or a vessel operating contract carrier as determined under Federal Maritime Law. The contract is not subject to terms or conditions of Contractors' tariffs. The booking, in conjunction with the terms contained in the contract, constitutes the contract of carriage.

2.A.2 Cargo Types

Types of cargo to be carried are military cargo, Privately Owned Vehicle’s (POV), household goods, subsistence, accepted hazardous materials as stated in Appendix V, and any other cargo shipped by the Department of Defense (DOD) in the Defense Transportation System (DTS).

SECTION 3 GENERAL REQUIREMENTS

3.A. Space Commitment

The minimum space available to the Government for each southbound sailing shall be seventy

(70) FEUs, including twenty (20) refrigerated containers, and 2000 square feet of breakbulk cargo. The minimum space available to the Government for each northbound sailing shall be thirty (30) FEUs, including two (2) refrigerated containers, and 1000 square feet of breakbulk cargo. Each of the 40-foot spaces offered must be able to accommodate two 20-foot containers, or the vessel must have additional space to accommodate the 20’ container shortfall.

3.B. Shipment Booking

The Contractor shall provide the services as identified in the booking.

3.B.1 Booking Acceptance

3.B.1.1 Issuance of a booking number by the Contractor through EDI, Integrated Booking

System (IBS), Ocean Carrier Interface (OCI), Direct Booking, email, or facsimile to the US

Government constitutes acceptance of booking. The parties may subsequently agree to amendments/changes prior to delivery.

3.B.1.2 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. Empty US Government-owned or empty leased containers or other empty special equipment shall be booked on a space-available basis. Empty containers shall be offered to the Contractor, who shall propose space for them on the first sailing for which space is available.

3.B.2 Response to Booking Requests

The Contractor shall accept, reject or counter on the same business day to a booking received prior to 1430 local time. For a booking received after 1430 local time, the Contractor shall accept, reject or counter by 1200 local time of the next business day. For hazardous cargo, Contractor shall respond to cargo offerings within 48 hours after shipper has provided relevant hazardous information to Contractor for determination of acceptance/rejection of cargo offering.

3.B.3 Automated Booking

The Contractor shall implement an automated booking capability via EDI or OCI with the IBS within 30 business days after award of contract. EDI transaction sets shall comply with standards identified in this contract. The Contractor shall respond to all cargo offerings, including changes to previous offerings within two hours of the time the cargo offering is released by IBS.

Automated booking capability shall be maintained 24 hours per day, 7 days per week, throughout the period of the contract. The Contractor shall have one business day to counteroffer any booking processed automatically. For hazardous cargo, the Contractor shall accept cargo offerings within 48 hours after shipper has provided relevant hazardous information.

3.B.4 Schedule Maintenance

3.B.4.1 Southbound

3.B.4.1.1 The contractor shall maintain a scheduled service southbound, Jacksonville/Blount

Island to GTMO. Frequency of such service must be, at a minimum, every 14 calendar days.

Sailings shall be on a fixed-day-of-the-week basis, on a fixed day selected by the Contractor.

Transit time from Jacksonville/Blount Island to GTMO is a maximum of 7 calendar days.

3.B.4.1.2 Cargo Receipt Time: The Contractor must receive non-perishable cargo until 1200 at the Jacksonville/Blount Island facility two business days prior to vessel sailing. The Contractor must receive perishable cargo until 1200 one business day prior to vessel sailing. Any material received after this period will be rolled to the next available vessel sailing.

3.B.4.1.3 Arrivals and departures at GTMO may not be on weekends or outside normal business hours. Business hours are contained in Appendix I.

3.B.4.2 Northbound

3.B.4.2.1 The Contractor shall maintain a scheduled service northbound GTMO to

Jacksonville/Blount Island. Frequency of such service must be, at a minimum, every 14 calendar days. Sailings shall be on a fixed-day-of-the-week basis, on a fixed day selected by Contractor.

Transit time from GTMO to Jacksonville/Blount Island is a maximum of 18 calendar days.

3.B.4.2.2 The Contractor shall provide and continually maintain vessel schedules in the

Integrated Booking System (IBS) at least 45 calendar days in advance of the vessel sail date.

Any change to the vessel schedule must be updated in IBS and reported to the Ordering Officer

(OO) no less than seven (7) calendar days prior to the next scheduled port call. Any slippage in scheduled sailing date/arrival date by more than one (1) calendar day shall be reported in writing to the OO and COR and updated by the contractor in IBS.

The Contractor may provide vessel schedules to additional ports in CONUS and call on additional ports OCONUS; however, Jacksonville/Blount Island must be a port-of-call on all sailings, both southbound and northbound.

3.C. Origin Services

3.C.1 Equipment Pools (container only)

The Contractor must establish and maintain equipment pools at CONUS inland locations, including but not limited to NEX Suffolk, VA to ensure timely availability for outloading operations. The expense for operating equipment pools must be borne solely by the Contractor to include establishing, managing and disestablishing pools. The Contracting Officer may add equipment pools at his/her discretion.

3.C.2 Spot Date

3.C.2.1 At least 1 day prior to the spot date annotated in the booking, the Contractor shall notify the cognizant Ordering Officer and shipper of any containers, which cannot be spotted to meet booking requirements.

3.C.2.2 Delay in Spotting

When the Contractor fails to spot an empty container by the designated date and time, and as a result the Government must incur overtime expenses to enable stuffing and release of the container by the Government prior to the scheduled sailing date of the vessel, the Contractor shall be liable for payment equal to the total overtime expense incurred by the Government.

Neither a penalty nor charges for Government expenses will be assessed if the Contractor can establish: 1) that the inability to spot the container as agreed is the result of the Government's failure to unstuff and release an empty container to the Contractor within a reasonable time to meet the required spotting date and 2) that it advised the OO of such inability at least seven calendar days prior to the required spotting date.

3.D. Ocean Transportation

3.D.1 Port Operations

The contractor is responsible for port operations, to include terminal operations and stevedoring.

The Contractor shall provide warehousing in Jacksonville/Blount Island and pre-position all necessary equipment for warehousing and stuffing in Jacksonville/Blount Island, FL. All cargo shall be stowed in accordance with commercial shipping practices to prevent loss or damage.

3.D.2 Cargo Lift, Advancement and Rolls

3.D.2.1 For door-origin cargo, the Contractor shall pick-up cargo/stuffed containers to meet the booked vessel when the US Government makes pick-up notification. The Contractor shall coordinate pick up dates/times directly with shipper.

3.D.2.2 The Contractor shall lift cargo onto the vessel identified in the booking or advance cargo to an earlier arriving vessel. Cargo advanced to an earlier arriving vessel shall not displace no-shows and rollovers from previous voyages or cargo already booked. Cargo may be advanced only if the Contractor has received all required documentation. The Contractor will notify shipper and origin OO when cargo is advanced.

3.D.3 Improper Documentation

If the Government does not provide the Contractor with the correct container documentation at the time and location of Contractor acceptance, the Contractor may refuse to accept the container. If the Contractor chooses to pick-up or accept the container, the Contractor shall provide the cognizant SDDC manifesting activity with all the missing receipt or lift data in order that the container can be completely identified for onward movement. This information must be provided within one (1) business day of receipt or lift or earlier if necessary to meet the scheduled vessel sailing. The Government shall reimburse the Contractor the direct cost of any fines or charges incurred as a result of irregularity in the papers supplied by the Government in accordance with contract invoicing instructions.

3.E. Destination Services

3.E.1 Delivery to Destination

The contractor shall deliver cargo on or before the RDD established in the booking.

3.E.2 Early Deliveries

The Contractor shall not deliver early to consignees unless approved by the US Government. The

Contractor shall schedule all deliveries with the consignee or consignee's agent at least 2 business days prior to any actual delivery of containers or pieces.

3.E.3 Cargo Receipt

Any receipt signed by or on behalf of the Master shall be without prejudice to the terms, conditions, and exceptions of this Contract, and subject to all of them. The Government fully warrants the accuracy and completeness of all papers and documents relevant to the shipment of all cargo tendered under this contract.

3.E.4 Container Pickup/Return

The Contractor shall remove empty containers from US Government facility within 3 calendar days after receiving notice. The US Government may submit to the Contractor documentation for payment of additional costs incurred as a result of the Contractor’s delay as a result of the

Contractor’s delay in picking up the empty container.

3.F. POV Requirements

3. F.1 POV Processing

The Contractor shall document the receipt of POVs from owner or owner’s agent, process vehicles for ocean transit, and process POVs for delivery to the owner when ordered by the OO.

The Contractor shall receive/issue POVs from/to service members or the Government agent at the NAVSTA GTMO terminal, and from/to service members at the Contractor's

Jacksonville/Blount Island, FL terminal.

3. F.1.1 Jacksonville/Blount Island, FL POV Processing

The Contractor shall document the receipt of Privately Owned Vehicles (POVs) from owner or owner's agent, process vehicles for ocean transit, and process POVs for delivery to the owner when ordered by the OO. The contractor shall receive/issue POVs from/to service members at the contractor's Jacksonville/Blount Island terminal. The Jacksonville/Blount Island terminal shall process POVs, to include customs clearance (NO MORE THAN 3 VEHICLES PER

CUSTOMS DECLARATION), during the period Monday through Friday from 0800 until 1700.

An inspection of the POV, similar to that which is customarily provided by a common carrier in commercial service, including usual documentation, will be accomplished with the service member or his/her representative upon receipt and issue. At the time of pickup, the POV shall be returned in the same condition of cleanliness as received and noted on the receive/discharge inspection report, to include washing as required. In Jacksonville/Blount Island, the Contractor shall provide storage of POVs in a secure (closed to the public), lighted, fenced, and paved area pending pick-up by the owner/owner's agent for up to 30 business days. Storage charges will be paid in accordance with contract invoicing instructions if storage is required, beyond thirty (30) business days in the Contractor's Jacksonville/Blount Island facility.

3. F.1.1.1 Guantanamo Bay, POV Processing

The Contractor shall receive/issue POVs from/to service members or the Government agent at the NAVSTA GTMO terminal between the hours of 0730 – 1130 & 1300-1600; Monday thru

Friday. Contractor shall conduct an inspection of the POV and perform services as described in

Defense Transportation Regulation, Part IV, Attachment K3, Shipping Your POV.

http://www.transcom.mil/dtr/part-iv/dtr_part_iv_app_k_3.pdf

The Government will provide POV storage facilities at GTMO for use by the Contractor.

3. F.1.1.2 POV Processing charges shall be paid once for each POV processed in accordance with the rates set forth in the Table of Accessorial Rates in CARE SA. This rate will be applicable to all POVs delivered to the Contractor for transport to and from GTMO. The rate covers both receiving and issuing the vehicle. Any POV processing charges in association with the shipment of a second vehicle or marine conveyance shall be billed to the owner of the second

POV.

3. F.2 POV Shipping (Government Sponsored PCS Moves Only)

The booking of POVs with the Contractor is premised on the ability of the Contractor to achieve the RDD associated with each individual POV. The ability of the Guantanamo Bay Contract

(GTMO) Contractor to achieve the POV RDD is determined by reference to the Assured Ocean

Transit, Inland Deliver and other time period provided herein concerning the overall movement of cargo from the time it is tendered to the Contractor by the Government at origin until it is delivered at the designated destination in the booking. In accepting a POV booking, the

Contractor warrants that it can achieve delivery of the POV by the designated RDD under the http://www.transcom.mil/dtr/part-iv/dtr_part_iv_app_k_3.pdf terms and conditions of this contract. If the Contractor fails to deliver a POV by the designated

RDD, the member is entitled to file an Inconvenience Claim against the Contractor. The

Contractor may be exonerated from this liability only under circumstances constituting Force

Majeure or Excusable Delay in accordance with FAR 52.212-4(f). The Contractor is at all times required to deliver the POV as soon as possible following the conclusion of any Force Majeure or Excusable Delay circumstance.

Inconvenience Claim. An inconvenience claim is a claim for compensation paid directly to the member for Contractor’s failure to meet the RDD. Contractor reimbursement for members and their dependents for rental car expenses when a POV is delivered after the required delivery date are entitled and shall be paid directly to the member. This entitlement applies to military and

DOD civilian employees traveling on official government travel orders. This entitlement does not apply to Contractors. Government reimbursement to members under this entitlement will not exceed seven days at $30 per day (maximum entitlement $210) and will expire on the date the vehicle becomes available for pick up at destination. Examples of inconvenience claims are as follows, but are not limited to: requests for reimbursement of rental car expenses; requests for reimbursement of temporary lodging expenses. In the event of an inconvenience caused through the fault or negligence of the contractor (e.g., POV does not arrive as scheduled) the contractor will review and consider each claim on a case-by-case basis and, based on the circumstances, pay, decline, or make a firm settlement offer in writing to the claimant within 45 calendar days.

An inconvenience claim may NOT be filed against the Contractor when the Contractor fails to meet the RDD due to US Customs processing. RDD will be considered met when vessel arrives at designated port.

3. F.3. POV Security

The contractor shall be fully liable for all loss, damage, destruction, and pilferage/theft of a

POV’s exterior, interior and all properties contained therein as inventoried while they are in the care and custody of the Contractor. The contractor shall, within twenty-four (24) hours of notice of occurrence, provide a report of theft, pilferage, or breach of security to the COR. This report shall contain a description of the occurrences and the resulting actions. The Contractor shall maintain accountability, control and custody of areas containing POVs

3.G. General/Administrative

3.G.1. Regulatory Compliance

The Contractor shall comply with regulations of Federal Maritime Commission (FMC), U.S.

Coast Guard (USCG) and the Surface Transportation Board (STB), Department of

Transportation and/or other US Governmental agencies, including local regulations at origin, destination and in-transit as may be applicable for service to the US Government in carriage of military cargo as set forth in this contract.

3.G.2 On-Site Office Space

The Contractor shall provide private, on-site furnished office space for the Government’s representative at the Contractor’s terminal in Jacksonville/Blount Island, FL. This office space will include utilities and telephone.

3.G.3. Hazardous Cargo

3.G.3.1 Limitations of Contractor’s Obligation

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

3.G.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.G.3.2. Hazardous Cargo known as Dangerous Goods in Limited Quantities. Merchandise classified as Dangerous Goods in Limited Quantities, as defined in Volume I, The International

Maritime Dangerous Goods Code (IMDGC) with amendments 25-89, as specified in par. 18.6-

18.9, p. 135 and containerized for shipment under this contract will not require additional special labeling, documentation or other restrictions unless specified in future amendments to the

IMDGC. Cargo moving under this commodity category shall not be entitled to a hazardous cargo surcharge. This cargo may include, but is not limited to the following items: ORM-D cargo (70DZ9), charcoal, cigarette lighters, cleaning compounds, cosmetics, disinfectants, hypochlorite solution (bleach), insecticides, and polishing compounds.

3.G.3.3 Hazardous Waste Material. When transporting hazardous waste material, the Contractor must obtain an Environmental Protection Agency Identification Number (40 C.F.R.263.11) when required. Contractor should accept only those hazardous wastes that have been manifested in accordance with 40 C.F.R. 262.20 and 262.20(b). The manifest shall stay with the shipment to its destination. 40 C.F.R 263.20 (c). The Contractor must deliver the waste to the designated

Treatment Storage and Disposal facility on the manifest or to its designated alternate facility in case of an emergency. 40 C.F.R. 263.21(a) and (b).

3.G.3.3.1 Tank Container Service. HAZMAT will be containerized in Government Bulk Fuel

Tank Containers. The Contractor must comply with all applicable U.S. and foreign laws and/or regulations established for transportation of such cargo including but not limited to Title 49 of the Code of Federal Regulations, Part 171 et seq. (CFR et seq.) and the International Maritime

Organization (IMO) regulations. If the Contractor fails to meet any obligations imposed by these regulations, then any liability resulting from the Contractor’s non-compliance with these regulations will be solely the Contractor’s responsibility.

3.G.3.4 Spill Reporting – In the event of an accidental discharge of the hazardous material during transporting the Contractor is required to take immediate action to protect human health and the environment as defined in 49 C.F.R. 171.15 and must be reported verbally and in writing to the

National Response Center, Office of Hazardous Material Regulations Department of

Transportation, Washington, DC 20590. See 33 CFR 153.203, 40 C.F.R. 263.31, State and local laws may require additional notifications. The Contractor is liable for spills and discharges of cargo while being transported and is responsible for the cleanup. 40 C.F.R. 263.30 and 31.

3.G.3.5 Storage – The Contractor may store material en route up to ten (10) calendar days at each transfer facility as defined by 40 C.F.R. 260.10, 263.12 and 268.50 (a) (3) without becoming a

TSD facility. If storage exceeds the ten calendar days at any transfer facility, then the Contractor must issue a new manifest and sign and return to the initial shipper its original manifest.

Contractors transporting hazardous waste material into the United States from abroad or who mix hazardous wastes of different DOT shipping descriptions into the same container must also meet the standards applicable to hazardous wastes shippers.

3.G.3.6 HAZMAT under this contract, may include, but not is limited to, the following items listed: batteries (wet filled with acid), engine starting fluid, flammable liquid (toxic, n.o.s.), gases

(liquefied), hypochlorite solution (bleach), lighters, oxygen (compressed), petroleum distillates n.o.s., petroleum, and windshield washer solvent.

3.G.3.7 Provide Hazardous Waste Containers. The Contractor shall provide empty containers with applicable placards at GTMO for hazardous waste material required to be shipped to

CONUS. The Contractor shall be responsible for placing the appropriate placards on these containers. Hazardous material may consist of, but is not limited to, antifreeze, contaminated soil, asbestos, corrosive liquid and solids, poly-chlorinated biphenyl (PCB)’s, regulated and non-regulated flammables, and oils and lubricants.

3.G.3.8 The Contractor shall accept for ocean carriage all commodities listed in Appendix V when the commodity is packaged, labeled, and documented in compliance with applicable laws and regulations.

3.G.4 Equipment

3.G.4.1 Container Standards:

Contractors shall provide containers with clearly marked container numbers that are clean, dry, empty, odor free, suitable for protecting cargo from damage and that comply with International

Standards Organization (ISO), International Maritime Organization (IMO), and Convention of

Safe Containers (CSC) standards.

3.G.4.2 Refrigerated (REEFER) Equipment

3.G.4.2.1 The Contractor shall provide refrigerated containers to the consignor in accordance with the booking to include pre-cooling when requested by the OO.

3.G.4.2.2 The Contractor shall supply reefer containers that maintain a temperature within three degrees Fahrenheit of the in-transit temperature specified for controlled atmosphere and straight chill, and five degrees Fahrenheit for frozen.

3.G.4.2.3 The Contractor shall provide refrigerated containers that are capable of operating at

277/480 electrical volts with separate wires and plugs for reefers.

3.G.4.2.4 The Contractor is solely responsible for maintenance and fuel of refrigerated containers.

3.G.4.2.5 The Contractor shall deliver refrigerated container to consignee with a full tank of fuel.

Gensets must be maintained by the Contractor while in the possession of the consignee. Fuel shall be provided at no expense to US Government.

3.G.4.2.6 The Contractor shall provide continuous measurement of internal temperature using a

Ryan-type recorder or equivalent capable of continuous recording from availability date for a minimum period of 90 calendar days to provide consistent reporting and equipment supply.

Contractor shall provide measurement data upon request from the US Government.

3.G.4.2.7 The Contractor will be liable for total amount of cargo loss, spoilage, and transportation should cargo spoil due to refrigerated container breakdown while in Contractor’s possession. For cargo deemed urgent by US Government requiring immediate replacement, Contractor is liable for air shipment of replacement cargo to consignee.

3.G.4.3 Chassis Requirements

Containers delivered to the US Government or spotted by the Contractor must be on a

Contractor-provided chassis that supports stuffing/unstuffing operations by the US Government.

The chassis must remain with the container while in the custody of the US Government; unless this requirement is waived by OO.

3.G.4.4 US Government Furnished Containers (GFC): The US Government may book cargo for carriage in Government-owned or leased containers or may book carriage of empty Government owned or leased containers. Such containers will typically be 20 and or 40 foot closed top, dry

ISO cargo containers, although, other types and sizes of containers may be used. The Contractor will furnish any additional equipment, including chassis, necessary for the carriage of cargo in

GFCs in accordance with the provisions of this contract and the requirements of particular

Shipping/Delivery Orders. All provisions of this contract shall apply to the carriage of cargo in

GFCs in the same manner that they apply to the carriage of cargo in the Contractor’s container.

The Contractor shall not be entitled to container detention for GFC. The Contractor shall return

GFC in the same condition as received and shall be liable for loss or damage to the GFC resulting from the Contractor’s negligence.

3.G.4.5 Leasing of Contractor Equipment

Upon request of the CO, the Contract Administrator, or COR, the Contractor shall furnish containers, flat-racks, and chassis, also a generator set if necessary, for lease in connection with land and ocean transportation of Government cargo arranged under this contract or in support of sustainment operations. Equipment so leased may be transported aboard any vessel designated by the government and may be transported inland by any means available to the Government.

Unless otherwise agreed, the Government shall return Contractor equipment leased by the

Government to the place where such equipment was originally received from the Contractor. A booking shall be issued to reflect each lease of equipment. The booking shall set forth the number, size, and appropriate identification information of such Contractor equipment, the estimated duration of lease, and place of return. The Contractor shall be paid for each twenty-four hour period or part thereof, Saturdays, Sundays, and holidays included, for the period between the time the equipment is received or ordered from the Contractor, whichever is later, until the time the equipment is returned to the Contractor. The Contractor will be paid the rates as indicated in the CARE SA.

3.G.5 Quality Control, Reporting, and Records

3.G.5.1 Quality Control

3.G.5.1.1 The Contractor shall utilize its commercial quality control processes/plan (QCP) to ensure quality service is provided throughout the term of the contract. The Contractor shall provide its QCP to the Contracting Officer and Contracting Officer’s Representative upon request.

3.G.5.1.2 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.G.5.1.3 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. 3.G.5.1.4 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.G.5.1.5 Performance Reporting

In accordance with FAR 52.212-4(c), the contract may be modified to provide additional reports that satisfactorily quantify Contractor performance under Performance Objectives. The

Contracting Officer will establish the format and frequency of such reports.

3.G.5.1.6 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 in accordance with FAR 52.212-5(d).

3.G.6 Electronic Commerce / Electronic Data Interchange (EDI)

3.G.6.1 The Contractor shall use Electronic Data Interchange (EDI) or IBS Ocean Carrier

Interface (OCI) module (or successor system) as the primary means for interfacing with SDDC for all bookings.

3.G.6.2 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 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.G.6.3 The Contractor shall receive or transmit, as appropriate, the following transactions sets:

3.G.6.3.1 Contractor receiving order data, 300 (Delivery order, the booking, including increases and decreases or any modification to the original booking)

3.G.6.3.2 Contractor ordering confirmation data, 301 (Confirmation of order, Contractor to OO)

3.G.6.3.3 Cancellation data from OO, 303 (OO Cancellation)

3.G.6.3.3 Shipping Instructions, 304

3.G.6.3.4 Contractor shipment status reporting data, 315

3.G.6.4 For EDI 315 transactions, Contractors' can access the PAT EDI Generator application to identify and submit EDI 315 transactions (W, I, AE, VD, VA, UV, OA, X1, EC and RD). This capability replaces the IBS OCI Module previously used for this purpose and is not limited to the

Contractors using the OCI module for cargo bookings. In addition, the EDI Generator will provide the Contractor the ability to invalidate erroneously submitted EDI transactions.

3.G.6.5 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.G.6.5 identifies specific events that require reporting. The

Contractor shall submit all reports within 24 hours of accomplishment.

Table 3.G.6.5 Reportable Shipment Status Events

CODE DEFINITION NOTES

EE Empty spotted Container pick up in lieu of actual spot is acceptable for shippers with 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 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 upon US

Government approval of a Contractor submitted request in the Delay Request and Authorization Portal (D-RAP) for accrual of driver wait time at final destination.

RA Contractor notification container is available for pickup

This transaction will be auto-generated based on the US

Government notification to the Contractor that the

Contractor owned container is available for pickup

X1 Delivery to consignee

This transaction is required when shipment is delivered to consignee

EC EC 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.

(NOT REQUIRED FOR BREAKBULK)

RD

Return of empty container to

Contractor after delivery.

This transaction is required for container shipments when the Contractor has regained 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)

SD Authorized shipment delay

This transaction will be auto-generated upon US

Government approval of a Contractor requested delay submitted via D-RAP.

BD End of authorized shipment delay

This transaction will be auto-generated upon US

Government approval of a Contractor requested delay end submitted via the D-RAP.

3.G.7 Additional Guidance on Specific Transactions

3.G.7.1 AV Transactions

3.G.7.1.1 AV may be submitted only to document accrual of driver wait time at final destination.

Direct submission of AV EDI transaction by Contractor will result in invalidation of AV EDI transaction.

3.G.7.1.2 The Contractor shall submit a request for an AV to the US Government via the D-RAP within 2 business days of the event causing the delay. The US Government has 3 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. 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 AV transaction will be auto-generated and distributed. The Contractor must submit supporting documentation with the

AV request submitted via D-RAP. The US Government may deny the AV request if justification is not provided.

3.G.7.1.3 SD and BD transactions:

3.G.7.1.3.1 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 US Government.

3.G.7.1.3.2 SD: The Contractor shall submit a request for an authorized delay to the US

Government via the D-RAP within 2 business days of the event causing the delay. The US

Government 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 US Government in the D-RAP within 3 business days, the Contractor request will be auto-approved and the SD transaction will be auto-generated and distributed. The Contractor must submit written justification with the delay request submitted via the D-RAP. The US

Government may deny the delay request if adequate justification is not provided.

3.G.7.1.3.3 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 US Government determines that the Contractor’s reporting of the delay duration is inflated, the previously approved delay authorization may be voided. In this case, the US Government will approve the delay end date to match the delay start date, resulting in the RDD not being extended.

3.G.7.1.3.4 The SD/BD transaction pair generated via the D-RAP may recommit the Contractor to a new delivery date defined as: RDD + (# days elapsed from SD to BD). For a shipment RDD to be potentially amended, both an SD and BD transaction must be authorized and generated via the D-RAP. Documentation supporting the SD/BD transaction pair will be submitted via the D-

RAP. If delay start and delay end dates are known at time of submission of delay start, a round trip delay can be submitted via D-RAP

3.G.7.1.3.5 If an onward movement EDI is submitted prior to the request to end the delay, the D-

RAP will queue the delayed shipment record for auto-closing. If an end delay request is not submitted within 96 hours of the queuing of the shipment record for auto-closing, a BD transaction ending the delay will be auto-triggered by the D-RAP. The BD event date will equal the event date of the begin delay SD transaction, resulting in no adjustment to the shipment

RDD.

3.G.7.2 Manual Operational Reports

The Contractor shall submit specific cargo movement information in connection with cargo at that port. Report format, distribution, submission schedule and medium are described at

Appendix IV.

– Cargo

– Contractor Containerization Lift Information –

– Pre-Arrival Notice

– Cargo not lifted as booked / booked and not lifted

3.G.7.3 Daily Position Reports: The Contractor shall furnish the Government with the daily position of the vessel(s) serving this Contract.

3.H Exceptions to Normal Service

3.H.1 Futile Trip

When futile trip costs are incurred due to the fault of the US Government, the Contractor may submit an invoice for authorized futile trip costs as established in the Invoicing and Payment

Instructions. The Contractor shall notify the OO, the Contractor’s COR and the applicable SDDC

Battalion, in writing within 24 hours when futile trip is incurred . Futile trip charges must be authorized by the cognizant COR prior to invoice submission to SDDC G8.

3.H.2 Government Failure to Timely Release Containers

3.H.2.1 Occurrence. When a container which has been positioned at a Government stuffing facility is not released by the Government within a reasonable time to meet the scheduled sailing time and date of the Contractor’s vessel to which it is booked, thereby, precluding the container from being loaded on the vessel, the Government shall have the alternatives set forth below. In no event will the Government be liable for vessel demurrage or dead freight as a result of failure to release a container in time to meet a specified vessel sailing.

3.H.2.2 Load on the Next Vessel. The Government may allow the Contractor to load the container on the next vessel scheduled to the booked port of debarkation. If storage charges are incurred, invoices should be submitted in accordance with contract invoicing procedures.

3.H.2.3 Un-stuff the Container. The Government may order the Contractor to move the container to another place for un-stuffing. The Government shall bear all costs of repositioning the container.

3.H.2.4 Move to another Place for Shipping. The Government may order the Contractor to move the container to another place. The Government shall bear all costs of repositioning the container.

3.H.3 Notification of Receipt of Damaged Cargo

Contractor shall immediately notify the OO of Less-than-Container-Load (LCL) shipments arriving Contractor’s terminal for stuffing that are found damaged or not suitable for containerization.

3.H.4 Delay of Scheduled Sailings

3.H.4.1 Occurrence. If the scheduled sailing to which container cargo is booked is delayed more than forty-eight (48) hours, the Government shall have the alternatives set forth below.

3.H.4.2 Container Release. The Government may allow the container to move on the delayed sailings.

3.H.4.3 Move to Another Shipping Place. The Government may order the Contractor to move the containers to another place. The Contractor shall bear all costs for such movement, including the removal of the containers from the vessel and placement on a chassis.

3.H.5 Contractor Failure to Load Containers

3.H.5.1 Occurrence. When a stuffed container is released by the Government within reasonable time to meet the scheduled sailing time and date of the Contractor’s vessel to which it is booked and the container is delayed, through fault of the Contractor, thereby precluding the container from being loaded on the vessel, the Government shall have the remedies set forth below.

3.H.5.2 Load on the Next Vessel. The Government may order the Contractor to load the container on the next vessel scheduled to the same port of debarkation.

3.H.5.3 Move to Another Shipping Place. The Government may order the Contractor to move the cargo to another place and the Contractor shall bear all cost of such movement. The Contractor shall also be liable for linehaul, and any other expenses, paid by the Government for movement of the cargo over that rate which would have been paid to the Contractor if it had been loaded as originally booked.

3.H.5.4 Return the Cargo. The Government may elect to return the cargo, in which case the

Contractorshall move the container to a place designated by the OO for un-stuffing and shall bear all costs for such movement and unstuffing. The Government shall not be obligated to pay for use of the container.

3.H.6 No Fault Failure to Meet Sailing

3.H.6.1 Occurrence. If a container stuffed with cargo misses the sailing for which it is due to no fault of the Government or the Contractor, the Government shall have the remedies set forth below.

3.H.6.2 Load on the Next Vessel. The Government may order the Contractor to load the container on the next vessel scheduled to the same port of debarkation. The Government shall not pay for additional costs due to moving to the next vessel.

3.H.6.3 Move to Another Shipping Place. The Government may order the Contractor to move the container to another place. The Government shall bear all costs for such movement.

3.H.6.4 Return the Cargo. If the Government elects to order the return of the cargo, the

Contractor shall move the container to a place designated by the OO for unstuffing. The

Government shall bear all costs of such movement.

3.H.7 Diversion for the Convenience of the Government

Upon written direction by the Contracting Officer, the Contractor may route or divert its vessel, for the convenience of the Government, to a port of loading or discharging not on the route for which rates are quoted in CARE SA. The written direction shall reflect the special routing or diversion and state the agreed additional cost, if any, to be paid by the Government for such special routing or diversion.

3.H.8 Transfer of Containerized Cargo

3.H.8.1 The Contractor shall not transfer or transload cargo from one container to another without the authorization of the OO, except when such transfer is required to safeguard the cargo during the continuation of the movement. When cargo is transferred from the original container, the Contractor shall immediately notify the SDDC BN responsible for the loading and discharge ports. Such notice shall contain the serial number and seal number of the original container and of the container to which cargo was transferred, the place where the transfer occurred and the reason for the transfer. When the container to which the cargo was transferred differs in internal cubic capacity from the original container, the rate shall be based upon the cubic capacity of the original container.

3.H.8.2 Container Identification. Within thirty (30) calendar days of the contract effective date , containers shall be clearly marked to indicate the name of the Contractor. Containers leased from the Contractor utilized under this Contract shall have the name of the Contractor, affixed with stencils or stickers, in letters of not less than three (3) inches in height. As a minimum, such identification will be affixed to each end of a leased container.

3.H.9 Security. If the Government notifies the Contractor that the employment or the continued employment of the Master or any Contractor personnel is prejudicial to the interest or endangers the security of the United States of America, the Contractor shall make any employment changes requested by the Government. Any costs to the Contractor incurred by such changes shall be the responsibility of the Contractor.

3.H.10 Damage to Contractor Equipment

3.H.10.1 The Contractor may be entitled to reimbursement for damages to Contractor owned equipment when such damage or loss is by act, neglect or failure to maintain equipment by the

US Government, its agents, employees or Contractors (other than the prime Contractor) while such Contractor equipment is in the custody and care of the US Government, its agents, employees or Contractors (other than the prime Contractor). The US Government shall repair or reimburse the Contractor for reasonable costs of repairs.

3.H.10.2 The US Government shall notify the Contractor of damage to Contractor's equipment while in the US Government's care and custody immediately upon identification of the occurrence of said damage. The Contractor shall assign to the US Government any rights, causes of action, or other claims, which the Contractor may have against third parties with respect to such damage.

3.H.10.3 The US Government shall not be liable for the repair of any damage under this Section unless written notice specifying such damage shall have been given to and acknowledged by the

US Government or its authorized representative:

3.H.10.3.1 At the time custody of the equipment is returned by the US Government to the

Contractor; or

3.H.10.3.2 Within 5 calendar days after the damage was discovered or should have been discovered after custody of the equipment is returned by the US Government to the Contractor

(for damage that is not readily apparent).

3.H.10.3.3 The Contractor will submit costs directly to the Contracting Officer as a request for an equitable adjustment to the contract for reasonable, allocable, incurred costs with supporting documentation.

3.H.11 Overweight Containers

If the Government stuffs a container with cargo weighing in excess of the container's standard maximum weight carrying capacity or in excess of any lesser weight of which it has been given notice under this Section, it shall remove, or pay the expenses of the Contractor in removing or handling the excess weight of cargo. All consequences or liabilities that may result from excessive weight of containers stuffed by the Contractor shall be the responsibility of the

Contractor. All fees or other costs incident to weighing containers shall be the responsibility of the Contractor.

3.H.12 Changes to Service

If the Contractor wishes to materially change its service, the Contractor must submit to the

Contr…