1._PWS__DFTS_-_3_Sep_DRAFT.pdf

PERFORMANCE WORK STATEMENT

FOR

DEPARTMENT OF DEFENSE

FREIGHT TRANSPORTATION SERVICES

(DFTS)

3 September 2014 (DRAFT)

1.0 DESCRIPTION OF SERVICES

1.1 Background.

1.1.1 The United States Transportation Command (USTRANSCOM) is a unified, functional combatant command which provides support to the eight other US combatant commands, the military services, defense agencies, and other Government organizations. The Defense Logistics Agency (DLA) is the Department of Defense’s (DoD) largest logistics combat support agency, providing worldwide logistics support in both peacetime and wartime to the military services as well as several civilian agencies and foreign countries.

1.1.2 As America’s combat logistics support agency, DLA provides the Army, Navy, Air Force, Marine Corps, other federal agencies, and combined and allied forces with the full spectrum of logistics. The Agency sources and provides nearly 100 percent of the consumable items America’s military forces need to operate, from food, uniforms, and medical supplies to construction and barrier equipment. DLA also supplies more than 85 percent of the military’s spare parts. In addition, the Agency manages the reutilization of military equipment, provides catalogs and other logistics information products, and offers document automation and production services. DLA is headquartered at Fort Belvoir, VA. As a global enterprise, wherever the United States has a military presence, DLA is likely there as well.

1.2 Scope.

1.2.1 This Performance Work Statement (PWS) contains requirements for transportation coordination services supporting Defense Logistics Agency (DLA). Services encompass support from receipt of the shipment request through final payment for services rendered. Support will include management of shipments to ensure required transportation is completed successfully, in a satisfactory manner. Transportation support is required for all DLA Freight All Kinds (FAK) shipments including, but not limited to, First and Second Destination, Scheduled Routes, DLA Disposition Services (formerly known as DRMS), Unit Moves, FEMA support, Humanitarian/Contingency support, Foreign Military Sales (FMS) and surge shipments.

Services will be provided between DLA locations and other DoD and non-DoD locations within the Continental United States (CONUS) via various equipment types. Routes may include multiple stops and split pickups. Shipper locations may be revised, increased, or decreased dependent on DoD structural changes, alignments, operational tempo, and business process changes. First Destination shipments currently moved under other contracts may be moved in accordance with this PWS as those contracts end. Sites in Alaska and Canada may also be added as necessary. Only single brokering is permitted for Less than Truckload (LTL), Truck Load (TL), and Scheduled trucks (no brokering restriction on air or rail shipments).

1.2.2 Exclusions. The following shipment types are excluded from this contract:

a. OCONUS freight movements beyond Port of Embarkation (if applicable)

b. OCONUS Unit Moves

c. Universal Services Contract and Regional Domestic Contract ocean carrier contracts

d. Household goods to include Direct Procurement Method (DPM) shipments

e. Movements using DoD organic equipment (unless otherwise identified in this PWS) within a 60-mile radius of origin shipper.

f. Privately owned vehicles (POV)

g. Arms, Ammunition and Explosives (AA&E)

h. Classified and sensitive shipments

i. Cash/Collect on Delivery (C.O.D) Shipments

j. Radioactive materials (Yellow-II & Yellow-III). Excepted packages (IAW 49 CFR 173.424) for radioactive instruments and articles may be shipped under this contract

k. Poison Inhalation Hazard (PIH), Class 2, Division 2.3 and Class 6, Division 6.1 (inhalation hazard, Zone A or B) Hazardous waste

l. Fuels

m. Narcotics and dangerous drugs

n. Etiologic agents, Class 6.2

o. Human remains and biological specimen and samples

p. Coins

q. Precious metals

r. Currency

s. Postage stamps or stamped envelopes

t. Postal Shipments

u. Small Parcel shipments for CONUS which are less than 300 pounds and less than 119” in length and less than 165” in length and girth combined.

v. Small Parcel shipments for Alaska and Canada which are less than 300 pounds and less than 108” in length and less than 190” in length and girth combined.

1.2.3 Annual historical shipment workload data is provided in Appendix A.

1.2.4 Shipper unique requirements for each site are provided in Appendix B.

1.3 Specific Tasks. The specific tasks required under this PWS are listed below:

Task Area 1 - Contract Management Task Area 2 – Transportation Coordination Services Task Area 3 – Transportation Services Task Area 4 – FEMA Task Area 5 – Humanitarian/Contingency Task Area 6 – Operational Support Task Area 7 – Information Technology (IT)

1.3.1 Task Area 1 - Contract Management. This task consists of the functional activities relating to the management and administration, staffing and reporting requirements of this effort.

The contractor shall manage its human and physical resources, including its sub-contractors, to partner with DoD and its stakeholders to achieve objectives outlined in this PWS.

1.3.1.1 Task Area 1, Subtask 1 - Management and Administration

1.3.1.1.1 The contractor shall provide oversight and management of transportation tasks in this

PWS. The contractor shall ensure the requirements of the PWS are met in an effective and efficient manner. The contractor has the overall responsibility for ensuring performance of all requirements identified in this PWS.

1.3.1.1.2 The contractor shall provide a centralized management capability at the contractor site.

This function shall encompass administrative, clerical, documentation, billing, payment, and audit, and related functions that provide general support for the program. The contractor shall designate a principal point of contact.

1.3.1.1.3 The contractor shall staff, manage, and provide necessary resources for customer support Monday – Friday, 0600 – 2400 Eastern Time (ET) and Saturday, 0600 – 1630 ET, with the exception of FEMA and Humanitarian/Contingency support tasks. Customer support operations may be required 24 hours per day, 7 days a week in support of FEMA and Humanitarian/Contingency tasks when activated. Contractor representatives shall be available by telephone (toll-free) for immediate customer response and have access to all shipment information and transportation management technology. The Contractor shall provide on-call support 24 hours a day, 7 days per week for notification of FEMA and/or Humanitarian requirements. In rare circumstances, immediate action may be required for a mission critical shipment after the established customer support hours. In such an instance, the shipment may be moved outside the contract at the shipper’s discretion.

1.3.1.1.4 Handling of Non-Public Information. In performance of this contract, the Contractor may have access to sensitive, non-public information. The Contractor agrees (a) to use and protect such information from unauthorized disclosure in accordance with DTM 08-027 - Security of Unclassified DOD Information on Non-DOD Information Systems, 31 July 2009; (b) to use and disclose such information only for the purpose of performing this contract and to not use or disclose such information for any personal or commercial purpose; (c) to obtain permission of the Government CO before disclosing/discussing such information with a third party; (d) to return and/or electronically purge, upon Government request, any non-public, sensitive information no longer require for Contractor performance; and (e) to advise the Government CO of any unauthorized release of such information. Upon request, the Contractor shall have its employees assigned to this contract execute a non-disclosure agreement for delivery to the Government. The Government will require Contractor personnel to sign a non-disclosure statement (Appendix C) to protect non-public information of other Contractors and/or the Government.

1.3.1.1.5 Post Award Conference. Within 14 days after contract award, the Government will host a contract post-award conference. This meeting will be held to facilitate introduction of the key members of the Government and contractor staffs; to review contract requirements; review the implementation plan/schedule; and to address any other areas deemed necessary.

1.3.1.1.6 Program Management Reviews. Program Management Reviews (PMRs) will be conducted to evaluate current performance (to include implementation) to determine necessary changes or adjustments, identify areas of improvement, and critical infrastructure protection, and develop lessons learned. The contractor shall conduct PMRs quarterly during the base period of the contract and every six months thereafter. PMRs will typically be held via teleconference, video-teleconference, or Defense Connect Online (DCO). In person PMRs will be held once a year at a location which will be determined 60 days in advance. All PMRs will include review and discussion of metrics and performance data collected by the Government and a contractor self-assessment. The self-assessment will include the contractor’s measured performance of the established Key Performance Indicators (KPIs) provided in a format agreed upon between the Contractor and the Government. Proposed solutions to any identified issues and suggestions for Government process improvements which would result in efficiencies or cost savings will also be included in the PMR. The contractor shall prepare and distribute the self-assessment to COR and CO NLT 3 days prior to each scheduled PMR.

1.3.1.1.7 Implementation Plan. The contractor shall follow the detailed implementation plan submitted with their proposal and approved by the Government during source selection.

Unanticipated changes to the implementation plan may be required and will require a revision to the plan unless determined by the Government to be minor. Minor changes resulting from the unique requirements of a shipping location do not require an update to the Implementation Plan.

A contract modification will not be required for a change to the Implementation Plan or schedule unless such changes would result in additional contract costs. The Contractor will submit a revised plan within 5 business days of a Government directed change, or as soon as possible for a Contractor requested change, to the COR. The COR will have 5 business days from the date provided to review and approve or return the Implementation Plan to the contractor for clarification or changes. The COR will coordinate any changes to the Implementation Plan or schedule with the CO prior to approval. The contractor shall accomplish implementation activities in a manner that will result in minimal disruption to existing operations at each location. Note, the most recent approved plan remains in effect until a new one is approved.

1.3.1.1.7.1 Site Changes. The Government may add, revise, or delete sites and the contractor shall be required to implement, revise, or remove sites throughout the period of performance of this contract. The Government may require the Contractor to implement up to an additional 2 DLA sites per year up to 10 DLA sites total under the contract after initial implementation.

1.3.1.1.8 Joint Test Plan for IT Systems. The contractor shall follow the detailed Joint Test Plan submitted with their proposal and approved by the Government during source selection to achieve the timeline of the offeror’s implementation plan. Unanticipated changes to the implementation plan may be required and will require a revision to the plan unless determined by the Government to be minor. Minor changes resulting from the unique requirements of a shipping location do not require an update to the Joint Test Plan. A contract modification will not be required for a change to the Joint Test Plan or schedule unless such changes would result in additional contract costs. The Contractor will submit a revised plan with 5 business days of a Government directed change, or as soon as possible for a Contractor requested change, to the COR. The COR will have 5 business days from the date provided to review and approve, or return the Joint Test Plan to the contractor for clarification or changes. The COR will coordinate any changes to the Joint Test Plan or schedule with the CO prior to approval. Upon conclusion of operational testing at a site, the contractor shall prepare and deliver a summary test report that captures the areas tested and the test results for that site no later than 14 business days from the conclusion of site operation testing.

1.3.1.1.9 Training on Contractor Systems. The contractor shall provide in-depth training to new and current contractor-system users for system operations, upgrades, and modifications. The contractor shall work with the DoD to establish an on-going training curriculum for users which will be kept up to date to reflect current operating procedures of the contractor. The contractor shall incorporate various training methods, including in person and distance learning, as part of their overall training approach. The contractor may conduct the training on a per-site or regional basis. The training shall be conducted no earlier than 30 calendar days before and no later than 4 calendar days before site implementation. Multiple training classes will need to be provided to allow for employees from all shifts to be trained without negatively impacting daily operations.

1.3.1.2 Task Area 1, Subtask 2 - Staffing.

1.3.1.2.1 The contractor shall provide the names and contact information of the primary and alternate employees responsible for performance of the task areas identified in this PWS. This information shall be provided in writing to the Contracting Officer (CO). The contractor shall ensure all personnel are knowledgeable and experienced in providing third party logistics services. The contractor shall notify the CO in writing of any changes to personnel within five

(5) business days after information is known. Contractor's proposed management staff shall have sufficient authority to make decisions on behalf of the contractor while performing under this contract.

1.3.1.2.2 The Government will provide the roles and responsibilities of the Government points of contact and information on day-to-day operations at shipper locations.

1.3.1.3 Task Area 1, Subtask 3 - Contract Metrics and Reports. The contractor shall collect, monitor, and prepare documents for performance metrics and reports related to this contract.

Deliverable format shall be coordinated with the Government and approved by the COR prior to submission. The deliverables shall be accessible via the Contractor’s TMS and/or web-based tools.

1.3.1.3.1 Metrics. The Contractor shall collect and monitor all required data for performance metrics. Data shall be collected at the overall contract level as well as by site and mode, as indicated, to measure performance, conduct trend analyses, and identify/project potential process improvements to ensure the requirements of the PWS are met in an effective and efficient manner. The contractor shall supply a scorecard of all required performance data to the CO and the COR as indicated in the Deliverable Table, PWS paragraph 1.4. When required, FEMA and Humanitarian/Contingency support metrics shall be reported separately from the metrics for routine shipments. Metrics are required to monitor the following:

1.3.1.3.1.1 On-time Pickup Metrics. The Contractor shall provide site level data by mode (TL, LTL, Scheduled, Specialized, Air, Rail, etc) identifying the total pickups for each shipper site, the number of on-time pickups (as defined in this PWS) and the percentage of on-time pickups.

The Contractor shall also provide the total number of pickups, the number of on-time pickups (as defined in this PWS), the percentage of on-time pickups, and the associated contract performance threshold for all shipments performed under the contract. Scheduled truck performance shall be provided by lane (origin and destination). The metrics shall provide the on-time pickup data for the reporting month and the 11 months prior to the reporting month and are due no later than the 15th calendar day of the month following the reporting month.

1.3.1.3.1.2 On-time Delivery Metrics. The Contractor shall provide site level data by mode (TL, LTL, Scheduled, Specialized, Air, Rail, etc) identifying the total deliveries for each shipper site, the number of on-time deliveries (as defined in this PWS) and the percentage of on-time deliveries. The Contractor shall also provide the number of total deliveries, the number of on-time deliveries (as defined in this PWS), the percentage of on-time deliveries, and the associated contract performance threshold for all shipments performed under the contract. Scheduled truck performance shall be provided by lane (origin and destination). The metrics shall provide this information for the reporting month and the 11 months prior to the reporting month and are due no later than the 15th calendar day of the month following the reporting month.

1.3.1.3.1.3 Loss and Damage Shipments. The Contractor shall provide site level data by mode (TL, LTL, Scheduled, Specialized, Air, Rail, etc) identifying the total shipments, the number of loss shipments, the number of damaged shipments, and the percentage of loss and damage shipments compared to the total shipments of a particular site. The Contractor shall provide the same metrics for the total shipments moved under the contract, as well as the associated contract performance threshold. The metrics shall provide this information for the reporting month and the 11 months prior to the reporting month and are due no later than the 15th calendar day of the month following the reporting month.

1.3.1.3.1.4 Loss and Damage Claims Status. The Contractor shall provide the status of loss and damage claims for each site. This metric shall provide the number of open and closed loss and damage claims for each site during the reporting period, the number of claims exceeding the contract performance threshold as well as the percentage of claims compared to total shipments of a particular site. The Contractor shall also provide the average number of days taken to resolve a claim at each site. The metrics shall provide this information for the reporting month and the 11 months prior to the reporting month and are due no later than the 15th calendar day of the month following the reporting month.

1.3.1.3.1.5 Information Technology (IT) System Availability (up-time). The Contractor shall provide the number of hours the IT system is availability, the number of hours it was unavailable (minus approved scheduled downtime), the percentage of IT System Availability, and the associated contract performance threshold. The metrics shall provide this information for the reporting month and the 11 months prior to the reporting month and are due no later than the 15th calendar day of the month following the reporting month.

1.3.1.3.1.6 Small Business Subcontracting. The Contractor shall provide the dollar value and percentage of all subcontracted dollars that were given to Small Businesses based on the applicable contract performance threshold by category (ex. HUBZONE, Small-Disadvantaged Business). The metric shall be provided during PMRs.

1.3.1.3.1.7 Freight Payments. The Contractor shall provide a scorecard indicating its success in making timely freight payments to carriers. The metric shall identify the average number of days taken to pay carriers; the number of payments made; and the number of unpaid invoices over 30 days. This metric shall be provided during PMRs, or upon request, and report the period since the last PMR.

1.3.1.3.1.8 Freight Price. The contractor shall provide a monthly metric identifying the total freight price and average freight cost for TL, LTL, Specialized, Scheduled, Rail, and Level of Service shipments by shipping location and at the overall contract level. The data shall be presented as cost per mile, cost per hundredweight, cost per pound, or cost per railcar, as appropriate. The metric shall provide this information for the most current 12 months and compare to the previous 12 months. This metric is due no later than the 15th calendar day of the month following the reporting month.

1.3.1.3.1.9 System Availability Metric. The Contractor shall provide a metric which identifies the percentage of time the Contractor’s TMS and web-based systems were available based upon the calculations identified in PWS 1.3.7.3.2. The Contractor shall provide this metric for all PMRs, and upon request from the Government.

1.3.1.3.1.10 Astray Freight Metric. The Contractor shall provide the number of astray freight reports submitted for the reporting period. The metrics shall provide this information for the reporting month and the 11 months prior to the reporting month and are due no later than the 15th calendar day of the month following the reporting month.

1.3.1.3.1.11 Accessorial Metric. The contractor shall report each accessorial code, the number of instances used, and amount charged by shipper location. A list of accessorial codes applicable to this requirement can be found in Appendix D – Accessorial Codes. The metrics shall provide this information for the reporting month and the 11 months prior to the reporting month.

1.3.1.3.2 Reporting. The contractor shall collect and monitor all required data for reporting.

Data shall be collected at the overall contract level as well as by site and mode, as indicated, to measure performance, conduct trend analyses, and identify/project potential process improvements to ensure the requirements of the PWS are met in an effective and efficient manner. The contractor shall supply all required performance data to the CO and the COR as indicated in the Deliverable Table, paragraph 1.4. The following reports are required:

1.3.1.3.2. Shipment Report. The Contractor shall provide an itemized monthly shipment report detailing the following information for each shipment paid under this contract, including eBills:

Shipper Department of Defense Activity Address Code (DoDAAC); Government Bill of Lading (BoL); shipment (offer) number; origin; identification as a FDT, DLA Disposition Service;

scheduled and actual pickup date (and time as applicable); destination; destination DODAAC actual delivery date (and time as applicable); Mandatory Delivery Date (MDD); shipment price broken down by linehaul price per rate qualifier (ex. $1.00 per mile); each accessorial code charged and amount; fuel surcharge; total linehaul and total shipment. This report is due no later than the 15th calendar day of the month following the reporting month.

1.3.1.3.2.1.1 The origin locations provided for FDT and DLA Disposition Service shipments will determine how the shipment is identified. All vendor shipments will be reported as FDT and the origin will be identified for the locations shipping 85% of the total FDT shipments.

1.3.1.3.2.2 Small Business Sub-Contract Reporting. In accordance with FAR Clause 52.219-9 Alt II, Small Business Subcontracting Plan, the contractor shall submit subcontracting reports.

The Contractor shall use the Electronic Subcontracting Reporting System (eSRS), which is an internet system launched by the Small Business Administration. The eSRS reports are to be submitted as indicated by the eSRS guidelines.When the contractor has been unable to meet the small business subcontracting goals in the contractor’s approved subcontracting plan, the contractor shall submit a written explanation to the CO describing the specific efforts made to meet such goals. Such explanation is to be submitted to the CO on the same day reports are submitted in the eSRS.

1.3.1.3.2.3 Astray Freight Report. The Contractor shall report all instances of Astray Freight (GOCARE) where full or partial shipments failed to be delivered following pickup The Contractor shall also report instances when astray freight is located/found. The report shall include the following, as applicable: BOL number; origin and destination; number of items missing; number of items found; number of items delivered; a description of the freight; the date located/found; location where found; the date a claim action was initiated; and the date the claim action was closed/resolved. The report shall provide a summary of the total astray freight shipments and the total number of unresolved astray freight shipments for the reporting period.

The report shall be provided on a monthly basis and include all new unreported instances, open/unresolved instances, and instances closed since the last reporting period. The report shall be a quarterly report and is due no later than the 15th calendar day of the month following the three-month report period.

1.3.1.3.2.4 Loss and Damage Report. The contractor shall provide a report of the instances of freight that was lost or was damaged during transit. The report shall identify the BoL number, origin, destination, description of the freight, the date the freight was lost or damaged and the location where it was lost or damaged. When applicable, the report shall identify the date a Transportation Discrepancy Report was submitted by the Government, current status, and the date it was resolved. The report shall be provided on a monthly basis and include all new unreported instances, open/unresolved instances, and instances closed since the last reporting period. This report is due no later than the 15th calendar day of the month following the reporting month.

1.3.1.3.2.5 Exception Report. The contractor shall report the number of on-time pickup or delivery exceptions sorted by shipper location DoDAAC (ex. DDSP), BoL number, origin (pickup) location, delivery location, and exception code. A list of exception codes can be found in Appendix E – Exception Codes. This report is due no later than the 15th calendar day of the month following the reporting month.

1.3.2 Task Area 2 – Transportation Coordination Services. The Contractor shall provide a variety of services to ensure transportation requirements are performed in accordance with the PWS. Transportation coordination services include, but are not limited to:

• Arranging, coordinating, monitoring, and controlling freight shipments from receipt of shipment request through final delivery

• Arrange transportation services to meet Mandatory Delivery Date (MDD)

• Performing shipment routing services as applicable according to Defense Table of

Distances (DTOD)

• Performing pre-payment audits, processing and making payments to sub-contractors and transportation providers for services provided

• Accepting, processing, and facilitating the resolution of claims resulting from loss or damage

• Selecting and managing carriers, carrier quality and performance

• Assisting in identification and delivery of astray freight

• Interfacing with appropriate Government systems for information exchange

• Providing in-transit visibility (ITV) and real-time access to shipment information

• Providing management information reports and access with download capability of customer data for all shipment information

• Providing continuous process improvement recommendations and implementation of approved process changes as directed by Government

• Protecting the operational capability of critical transportation infrastructure for essential

DoD requirements

• International Customs Brokerage Services

1.3.2.1 Task Area 2, Subtask 1 – Carrier Management. The contractor is responsible for all facets of carrier management, from carrier selection through final payment. The Contractor shall select competent transportation providers (motor carriers, rail carriers, air carriers) to transport DoD cargo and ensure such carriers meet all requirements of Title 49 of the CFR.

1.3.2.1.1 Brokering/Trip Leasing. Double brokering of DoD freight is not permitted except for rail and air shipments. The Contractor will ensure surface motor shipments are not brokered more than one level down. If the Contractor is an asset-based company, the contractor may broker down one level of carrier. If the Contractor is not an asset-based company, the contractor may broker down two levels of carriers. For movements by brokered carriers/subcontractors, the driver will provide the trip lease documentation prior to arrival for pick-up. A copy of the appropriate lease/contract or detailed pick-up sheets (for the specific load and truck) will be included in all leased/contracted vehicles and available for inspection. Shipper may reject vehicles without stated documentation. See Appendix F for sample trip lease format.

1.3.2.1.2 Carrier Contracts. The contractor shall establish, maintain, and manage all necessary subcontracts with carriers to move freight under this contract. The contractor shall ensure transportation requirements will be met in accordance with the applicable regulations during normal operating conditions, surge conditions, and peak seasonal periods as described in this PWS. The Contracting Officer may temporarily or permanently prohibit the use of specific subcontractors for poor or unacceptable performance.

1.3.2.1.2.1 Terms of Contractor Arrangement with Subcontracted Transportation Providers (Carriers). The Contractor shall ensure the following terms are known and agreed upon when entering into contracts or other enforceable arrangements with transportation providers (including affiliates, team members, etc.).

1.3.2.1.2.1.1 The transportation provider agrees with and accepts the terms of PWS Task 2, Subtask 5 Seizure of Cargo, that it will not assert any lien on Government property or seek to detain any shipment of Government property and that the Government can retrieve Government property in specified situations.

1.3.2.1.2.1.2 The transportation provider shall provide notice to authorized Government personnel and to the Contractor within 5 days of initial identification of loss or damage or astray freight.

1.3.2.1.2.1.3 When a shipment cannot be delivered due to damage, loss or refusal at destination, the transportation provider shall contact the Contractor. The Contractor will work with authorized Government personnel for disposition instructions.

1.3.2.1.2.1.4 The transportation provider, subcontractor, or carrier acknowledges poor or unacceptable performance or failure to comply with the applicable regulations may cause it from being temporarily or permanently prohibited from moving shipments under this contract.

1.3.2.1.2.1.5 The carrier shall comply with the requirements identified in Task Area 6 - Operational Support, of this PWS.

1.3.2.1.3 Small Business Participation. In accordance with FAR 19.201, it is the policy of the Government to provide maximum practicable opportunities to small business, veteran-owned small business, service-disabled veteran-owned small business, HUB-Zone small business, small disadvantaged business, and women-owned small business concerns. Such concerns must also have the maximum practicable opportunity to participate as subcontractors in the contracts awarded by the Government. Small Business goals are identified in the Service Delivery Summary.

1.3.2.2 Task Area 2, Subtask 2 - Contractor Liability. Freight will be delivered in the same condition as it was received at origin. If freight is lost or damaged, the Contractor will be liable for the cost of additional transportation, storage, and/or re-delivery through the claims process.

The Contractor shall have no rights to salvage.

1.3.2.2.1 Liability Standard. Whether the Contractor functions as a transportation provider itself or enters into a contractual or other arrangement with a transportation provider, the Contractor shall be liable to the Government for the property transported under this contract while the property is in the possession of the transportation provider.

1.3.2.2.1.1 The Contractor is liable for the lower dollar amount of $100,000 or the actual amount of the property loss and/or damage for each BoL. For shipments that are transported via multiple conveyances, such as multiple railcars, the Contractor is liable per conveyance (as each conveyance has its own BoL).

1.3.2.2.1.2 The shipper may elect to declare and establish cargo liability in amounts higher than stated above. In such instances when the shipper requests LIE, the Contractor shall be liable for the increased declared value based upon the provisions of Cargo Liability of Carrier (LIE) in

Appendix D – Accessorial Codes. Nothing in this contract or any contract or other arrangement between the contractor and a transportation provider shall relieve the contractor from liability to the Government for its direct obligations to the Government under this contract.

1.3.2.2.1.3 The Contractor shall not be liable to the extent such loss or damage is caused by an act of God (force majeure), of a public enemy, of a public authority, of the shipper, or due to the inherent vice or nature of the goods.

1.3.2.2.1.4 Special, Incidental or Consequential Damages. The contractor or the transportation provider shall not be liable to the Government for special, incidental, or consequential damages that relate to the loss or damage or delay to Government cargo transported under this contract.

However, the Contractor shall reimburse the Government on a dollar-for-dollar basis in the event that an unexcused late pickup or delivery causes the Government to incur additional costs per the examples below:

1.3.2.2.1.4.1 Equipment, such as a crane, is rented by the Government for loading or unloading of a specific shipment and a late pickup or delivery directly results in additional rental fees to the Government.

1.3.2.2.1.4.2 Late pickup or delivery of a shipment directly results in the Government incurring overtime or compensatory time costs for Government personnel.

1.3.2.2.1.4.3 In the events identified above, the Government will utilize the linked eBill process in the TPPS.

1.3.2.2.2 Carrier Insurance.

1.3.2.2.2.1 Public Liability and Cargo Liability Insurance. Contractor shall ensure interstate carriers maintain the minimum level of public liability and cargo liability insurance as required by Title 49 of the Code of Federal Regulations (CFR).

1.3.2.2.2.2 State Requirements. Contractor shall ensure carriers that operate solely as intrastate carriers, maintain public liability and cargo insurance at the level required by the state or equal to the interstate levels, whichever is greater.

1.3.2.2.2.3 In Force. Contractor shall ensure the insurance carried will be in force at all times during this contract or until such time as the transportation provider ceases providing service(s) under this contract. Insurance policy(s) must cover all equipment used to transport freight provided under this contract. The Contractor shall provide proof of insurance when requested by the CO or COR.

1.3.2.3 Task Area 2, Subtask 3 - Incident Response / Emergency Notifications.

1.3.2.3.1 In cases of accidents, incidents, or emergencies involving Government freight that may result in serious injury, death, or national media attention, Contractor shall ensure the carriers comply with the following:

1.3.2.3.1.1 For accidents and incidents involving response by local and/or state first responders, the Contractor shall ensure the carrier complies with the directions and/or requests of the on-scene commander or local law enforcement agent responding to the incident. Carrier shall ensure first responders are aware of risks associated with any hazardous materials.

1.3.2.3.1.2 Carrier, in accordance with all applicable federal, state and local regulations, is responsible for coordinating use of towing equipment, Material Handling Equipment (MHE), and other required services for handling hazardous materials. Carrier must ensure any commercial towing or MHE company employed, is aware of associated risks, is appropriately licensed to handle Government materials, and is in compliance with all applicable federal, state and local laws. The carrier is responsible for all charges incurred when using such commercial services. If both the carrier and the on-scene commander or local law enforcement agency are unable to obtain appropriate commercial support, the Contractor or carrier shall request DoD support through the shipper. The number for non-explosive hazardous cargo emergency response guidance is 1-800-851-8061.

1.3.2.3.1.3 See paragraph 2.12 for procedures on sealing of vehicles and seal breakage.

1.3.2.3.1.4 Contractor shall ensure drivers at an incident or accident scene follow corporate policy with regard to media requests.

1.3.2.3.2 The Contractor shall report all accidents, incidents, or emergencies to the shipper site and the COR.

1.3.3.3.3 Assistance with any of the above problems can also be obtained from the nearest Department of Defense Transportation Office.

1.3.2.4 Task Area 2, Subtask 4 - Transportation Discrepancy Reports and Claims. The Government will process Transportation Discrepancy Reports (TDR) and claims against the Contractor as outlined in the Defense Transportation Regulation, Part II Cargo Movement, Chapters 210 and 211. The Government has no privity of contract with any subcontracted carriers and therefore will not be a party in any reconciliation between the Contractor and its subcontracted carriers. As such, all claims will be submitted by the Government to the Contractor for payment. The Contractor shall resolve all claims with the Government within 120 days from the time the Contractor receives written notification of lost or damaged freight from the Government.

1.3.2.5 Task Area 2, Subtask 5 - Seizure of Cargo. Neither the contractor, nor any of its sub-contractors, shall assert any type of lien on any property shipped under this contract. The contractor further agrees that it shall not take any action to seize, arrest, hold, or otherwise detain any shipment through any judicial process in the United States or through any other means whatsoever. Additionally, the Government (or designated agents) reserves the right to retrieve/seize DoD freight from the contractor and its contractors’ facilities and conveyances when such freight has been frustrated, or otherwise delayed due to labor unrest, work stoppages, bankruptcy, disasters, and other abnormal events beyond the contractor’s operational control.

1.3.2.6 Task Area 2, Subtask 6 – Astray Freight. The Contractor shall ensure astray freight is located, identified, and reported to the Government. The Contractor shall ensure each shipment picked-up is matched with a delivery confirmation. If a delivery is not confirmed, the Contractor shall report the discrepancy to the Government. The Contractor shall perform inspections of carrier terminals to locate and identify astray freight on at least a quarterly basis.

The Contractor and its subcontracted carriers shall participate in the Military Surface Deployment and Distribution Command Government Cargo Recovery Effort (SDDC GOCARE) Program to help resolve astray Government shipments. The Contractor shall provide a GOCARE report in accordance with Task Area 1, Subtask 3 and the Deliverables Table, paragraph 1.4.

1.3.2.6.1. Information on identifying GOCARE Program (astray) freight is available at http://www.sddc.army.mil/GCD/default.aspx (Click on GOCARE Guidelines). DOD-registered carriers should be provided with GOCARE posters and booklets, which are available from the following address: Military Surface Deployment & Distribution Command, Attn: AMSSD-SBI- Q, 1 Solider Way, Bldg. 1900W, Scott AFB, IL 62225. Additional SDDC contact information is available via telephone at Commercial (618) 220-6886 or 6791; DSN 770-6886 or 6791, or email at sddc.ops.gocare@us.army.mil.

1.3.2.6.2 All astray freight will be reported to the COR by the contractor within 5 business days.

Carriers are to notify the contractor of any astray freight in their possession. The Contractor will report astray freight as follows:

1.3.2.6.2.1 Seek assistance from local GOCARE representatives as indicated in the SDDC GOCARE Guidelines.

1.3.2.6.2.2 If the local representative is unavailable, or not known, call the HOTLINE number: 1- 800-526-1465.

1.3.2.6.2.3 Pending final disposition a carrier may turn the astray shipment over to the nearest military transportation office.

1.3.2.6.3 With prior coordination, Government GOCARE POCs shall be allowed access to freight terminals/yards to inspect for potential astray Government freight. All visits to carrier facilities should be coordinated with the Contractor in advance and scheduled for a mutually convenient time. The Contractor and carrier shall accommodate a visit within no more than 24 hours of the request, unless otherwise agreed upon by the Government.

1.3.2.7 Task Area 2, Subtask 7 – Freight Payment. The Deputy Secretary of Defense directed the use of a Third Party Payment System (TPPS) for payment of transportation services;

therefore the Contractor is required to utilize the authorized TPPS. The current authorized TPPS is U.S. Bank Freight Payment (Syncada). Carriers should contact U.S. Bank at 1-800-417-1844 or by email customer.support@usbank.com. A fee is required to participate in the program.

http://www.sddc.army.mil/GCD/default.aspx

1.3.2.8 Task Area 2, Subtask 8 – Unforeseen/Uncontrollable Event Charges. The Contractor and sub-contractors shall not charge any detention, demurrage or storage charges against any DoD sponsored shipment when the delay is caused by acts or omissions beyond DoD’s, its contractor’s, or its agent’s control. Shortages in outturn, undue delays, or mis-deliveries of cargo arising or resulting from a force majeure situation will not be held against the contractor. Any resulting damage or loss will be covered by the carrier’s liability coverage.

1.3.2.9 Task Area 2, Subtask 9 – Cost Savings. The Contractor may provide discounts to transportation and accessorial rates published on contract for each shipment. In the event the contractor invoices on a BoL (task order) at an amount lower than the fixed price on contract for linehaul or accessorials, this shall be interpreted as a discount.

1.3.2.10 Task Area 2, Subtask 10 – Process Improvement. The contractor shall identify potential opportunities for process changes and recommend improvements that could result in efficiencies for DLA as well as the DoD enterprise. The Contractor shall work collaboratively with the COR and shipper organizations to identify these opportunities. The contractor shall submit recommendations for improvements to the COR and CO. Process improvements should be presented in a reasonable timeframe, but at each PMR as a minimum. Any recommendation shall include a description of the process improvement, the affected locations, the expected outcome, and resulting benefits. Depending on the magnitude of the improvement proposed, the contractor may be required to conduct a more in-depth analysis to include required investment (contractor and Government), expected return, payback period, and any other required changes to implement this recommendation. Process improvement recommendations shall be reviewed and approved by the CO and COR before implementation.

1.3.2.11Task Area 2, Subtask 11 - International Customs Brokerage. When directed, the Contractor shall provide International Customs Brokerage services for shipments moved under this contract. The Contractor shall perform customs documentation and clearances services on behalf of the shippers, recommend efficient means for clearing shipments through customs protocols, and estimate the landed costs for shipments entering the country. Services shall include import and export shipments. It is anticipated that current DTS FMS customers will be initially supported; however, it is expected the number of countries will grow over time.

1.3.2.11.1 The Contractor shall be properly licensed IAW international brokerage standards. The Contractor shall be knowledgeable of the applicable regulations and requirements imposed by the United States and various origin/destination countries to ensure freight is not frustrated enroute. The Contractor shall:

1.3.2.11.1.1 Be registered with U.S. Department of State (DOS) Defense Trade Control and be in good standing with DOS;

1.3.2.11.1.2 Be registered and able to electronically apply for US State Department licenses, customs clearances;

1.3.2.11.1.3 Be a member of the International Air Transport Association (IATA), and the National Customs Brokers and Forwarder Association;

http://www.iata.org/pages/travel-agents.aspx

1.3.2.11.1.4 Be licensed as a non-vessel-operating common carrier (NVOCC) and Ocean Transportation Intermediary (OTI);

1.3.2.11.1.5 Possess the required HAZMAT credentials and applicable training; and

1.3.2.11.1.6 Arrange for, or have, local agents (as required) to facilitate clearances through foreign countries.

1.3.2.11.2 Contractor shall receive the U.S. Government shipping documents via an agreed upon method (Fax, Email, other electronic forms) prior to DoD release of the shipment to the carrier.

The contractor shall ensure all import/export forms/documents/licenses are properly completed for the country of export and/or import. The Contractor shall make any and all pre- or advance notifications required by the origin/destination country. Contractor shall prepare appropriate document packages containing the necessary documents/forms for the shipper to attach to the shipment and provide to the carrier prior to shipment release. The Contractor will address and correct any issues identified by the carrier, shipper or country representatives (e.g. Customs representative) associated with the shipment along the route.

1.3.2.11.3 Contractor shall be responsible for any costs (fines/fees/detention) incurred by the United States Government (USG) or the receiving country (e.g. Canada, FMS country, etc.) for frustrated freight as a direct result of improper/incomplete import/export documentation validated by the contractor prior to shipment. Sensitive/classified material may be moved under this task; only AA&E freight shipments would be excluded.

1.3.2.11.4 Any payments made on behalf of the country/USG for taxes/tariffs/licenses not normally included in the rates charged shall be properly documented, validated, and invoiced to the government for repayment.

1.3.2.11.5 The contractor may be required to formally enter into an “agent” relationship with the materiel owning country (e.g. Romania) as required to enable smooth clearing of materiel through other countries along the route.

1.3.2.11.6 and the Contractor may be required to be cleared to handle DoD sensitive and classified materiel through the Defense Security Service

1.3.2.11.7 The Contractor will address and correct any issues identified by the Transportation Service Provider, Shipper or Country Representative (e.g. Customs) associated with the shipment along the route.

1.3.2.11.8 The Contractor will be required to support non-USG owned exports to the U.S. in support of FMS repair and return equipment or for exercises or other instances where the Defense Transportation System (DTS) is requested or required. In this case, the contractor will be required to work directly with the subject country to ensure requirements are processed to ensure delivery into the U.S. using a DTS capability (e.g., AMC Channel, USC conveyance, etc.).

1.3.3 Task Area 3 - Transportation Services. The services provided by this contract are considered as an essential enabler supporting DoD’s critical infrastructure. Incapacity of this transportation asset could have an adverse effect on national defense. The Contractor shall select the mode of transportation (motor, rail, air) to provide the most efficient and effective transportation services to meet the MDD. The services described in this PWS are required during normal and surge operations. Surge operations are sporadic events or fluctuations in shipment volumes that can range from a few days up to 60 calendar days. The Contractor shall furnish vehicles that are clean, odor free, and in good working/mechanical condition in compliance with Department of Transportation standards. The contractor shall also furnish all equipment necessary to safely transport the freight and shall be responsible ensuring cargo is secure and protected from the elements. Equipment furnished for loading may be rejected by the shipper if, upon inspection, such equipment is considered unfit for the required transportation.

1.3.3.1 Task Area 3, Subtask 1 – Truck Load (TL) and Less than Truck Load (LTL).

1.3.3.1.1 This task requires on-time pickup and delivery of shipments other than those provided under Task 4, Specialized Transportation, and Task 5, Scheduled Route Transportation. The Contractor may utilize intermodal transportation (i.e., combination of surface, rail, or air) to meet pickup and delivery constraints. The intermodal combination used must be the lowest cost option available to satisfy the requirement. The Contractor may mode shift unless site conditions prevent the use of certain equipment. Pickup locations are identified in Appendix G.

1.3.3.1.2 The contractor shall provide all types of equipment required to satisfy the requirements of this task. See Appendix H, Equipment Code List. The contractor shall ensure a mix of general and van equipment is available to meet shipper’s requirements. Some locations require equipment pools as identified in Appendix J. See Task Area 6 for information on equipment substitution.

1.3.3.2 Task Area 3, Subtask 2 – Specialized Transportation.

1.3.3.2.1 This task requires on-time pickup and delivery of Specialized Transportation shipments. Services under this task will be accomplished via Truck Load (TL) and Less than Truck Load (LTL) shipments. The Contractor may utilize intermodal transportation (i.e., combination of surface or rail) to meet pickup and delivery constraints.