PWS_App_I_-_Rate_Process_for_Specialized _Rail _Revisions _Additions.pdf

DFTS PWS App I

PWS Appendix I

Transportation Linehaul Rate Information & Processes for Specialized, Rail, Revisions, and Additions

I.1 General Rate Information: The authorized ordering officer will submit requests for transportation to the contractor electronically via the shipper system (EDI 219A). The contractor will respond to the request for shipment electronically (EDI 220). The response will include the total shipment price, comprised of the appropriate transportation linehaul rate, and any required accessorial charges. The government shipper will then use this information to generate the BoL.

The BoL obligates funding and is considered the task order authorizing performance under the contract.

I.2 Rate applicability: When 5-zip, 3-zip, State-to-State, Regional, and National rates are on contract, the contractor shall apply the lowest priced linehaul rate on contract for each shipment.

When the linehaul rate per mile or per hundredweight (CWT) results in a total linehaul price less than the minimum charge, then the contractor may apply the minimum price.

I.3 While the contract contains extensive linehaul rate coverage in Attachment X, it is impractical to have a fixed price linehaul rate on contract for every potential shipment scenario, especially for certain specialized equipment and rail shipments. In addition, linehaul rates may be added or revised when necessary to meet government shipping requirements under the contract.

I.4 Process for Shipments When No Rate is On Contract – Specialized Equipment and Rail

I.4.1 Upon receipt of a 219A shipment request where there is no applicable rate on contract for the required equipment type, the contractor will advise the shipper immediately that there is not an applicable rate on contract to generate a 220 shipment response. The contractor will then submit a request to the Contracting Officer (CO) for approval of specialized/rail rate and include justification for this rate based upon current market based transportation rate conditions. This justification shall include documentation (e.g., copies of carrier transportation quotes in response to the contractor's electronic spot bid process) sufficient for the CO to evaluate the rate for reasonableness based upon comparison of current market based competitive transportation pricing and comparison to other available Government transportation pricing as necessary (e.g., historically approved/contract rates). The supporting documentation shall clearly indicate that the contractor sought adequate competition within the timelines and parameters of the shipment.

When requesting CO review and approval of a specialized/rail rate, the contractor shall complete the Rate Request Form in Appendix I. The contractor shall send the request form, plus a minimum of three (3) competitive carrier spot quotes and any additional explanation, via email to CO POCs provided upon contract award. The CO will negotiate and/or approve the specialized/rail rate and notify the contractor in writing as soon as possible. A CO will be available for specialized/rail rate requests 24/7/365, POC information will be provided upon contract award. The CO may disapprove any request that is not complete, timely, or reasonable.

The contractor shall train all applicable employees on this process. The contractor is responsible

DFTS PWS App I for maintaining all rate documentation to support audits. If approved, the contractor will utilize the specialized/rail rate in the 220 shipment response.

I.4.2 If the contractor and the government fail to reach a mutual agreement, the government reserves the right to unilaterally establish the rate by notifying the contractor in writing and subsequently issuing a modification pursuant to FAR 52.243-2, Alternate I. The Contractor will be required to comply with the unilaterally established rate until such time that a rate revision is agreed upon. If a subsequent rate differs from the unilateral rate the government shall make appropriate adjustments to the contract and any affected task order(s). If an agreement cannot be reached, the provisions of FAR 52.233-1, Dispute, Alternate I will apply.

I.4.3 During the period of rate negotiation, the contractor may be relieved of the 220 response and/or pick-up times outlined in this contract in the event the rate approval process exceeds the established timelines. Additionally, the contractor may seek relief from meeting the MDD in the event that unforeseen rate negotiations prevent the contractor from meeting its delivery requirements. Upon contractor request, the CO shall evaluate the circumstances surrounding any such delay and determine whether or not performance relief is warranted.

I.5 Process for Rate Revisions and Additions

I.5.1 As government shipper profiles change or as market conditions change, transportation rate revisions or additional rate coverage may be requested by the contractor or government. For example, additional scheduled truck routes may be added to the contract to support a shipper site.

I.5.2 When rate revisions or additional rate coverage is requested by the contractor or government, the contractor will provide a rate proposal to the CO at least 15 days prior to the requested effective date of the change.

I.5.3 Exact procedures for rate revisions or additions may vary according to the complexity of the change. When requesting CO review and approval of a rate revision/addition, the contractor shall complete the Rate Request Form in Appendix I. The contractor shall send the request form, plus a minimum of six (6) competitive carrier spot quotes and any additional explanation, via email to CO POCs provided upon contract award. The C O will negotiate and/or approve the revision/addition and notify the contractor in writing as soon as possible. A bilateral modification may be required depending on the complexity of the rate change.