DFTS_Atch_1_-_PWS_(5.28.15).pdf

Attachment 1 Department of Defense Freight Transportation Services (DFTS)

SOLICITATION: HTC711-15-R-R003

PERFORMANCE WORK STATEMENT

FOR

DEPARTMENT OF DEFENSE

FREIGHT TRANSPORTATION SERVICES

(DFTS)

28 May 2015

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. USTRANSCOM provides full-spectrum global mobility solutions and related enabling capabilities for supported customers’ requirements in peace and war. The vision of USTRANSCOM is to be the transportation and enabling capability provider of choice.

1.1.2 The Secretary of Defense appointed USTRANSCOM as the Department’s Distribution

Process Owner (DPO) to serve as the single entity to direct and supervise execution of the

Strategic Distribution system. As the DPO, USTRANSCOM is responsible for:

a. Improving the overall efficiency and interoperability of distribution related activities -deployment, sustainment, and redeployment support during peace and war;

b. Portfolio management of Department of Defense (DoD) logistics information technology systems;

c. Acquisition of information technology systems, research projects and services needed to transform the DoD supply chain; and

d. Recommending and supervising implementation of global sourcing solutions, as the DoD mobility joint force provider.

1.1.3 As America’s combat logistics support agency, Defense Logistics Agency (DLA) provides the Army, Navy, Air Force, Marine Corps, federal agencies, and combined and allied forces, with the full spectrum of logistics. DLA 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.

1.1.4 Defense Contract Management Agency (DCMA) provides Contract Administration

Services (CAS) to the Department of Defense Acquisition Enterprise and its partners to ensure delivery of quality products and services to the warfighter, on time and on cost.

1.2 Scope.

1.2.1 This Performance Work Statement (PWS) contains requirements for transportation coordination services to support the United States Government (USG), Department of Defense

(DoD), and DoD contractors supporting DoD missions, such as the Joint Strike Fighter Program.

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 successfully completed. Transportation support is required for Freight All

Kinds (FAK) shipments including, but not limited to, First Destination Transportation (vendor shipments), Second Destination, Scheduled Routes, DLA Disposition Services (formerly known as DRMS), Unit Moves, Federal Emergency Management Agency (FEMA) support, Humanitarian/Contingency support, Foreign Military Sales (FMS) and surge shipments. First

Destination Transportation shipments currently shipped under other contracts may be supported under this PWS as those contracts end.

Services will be provided between various locations within the Continental United States

(CONUS), including but not limited to Vendor Facilities, DoD warehouses or consolidation facilities, and US Armed Forces Bases/Camps/Posts. Pickup and delivery may occasionally be necessary in Alaska and Canada (OCONUS). Pickup locations may be revised, increased, or decreased dependent on DoD structural changes, alignments, operational tempo, and business process changes. Routes may include multiple stops and split pickups.

Various equipment types will be required to meet mission requirements. Only single brokering is permitted for shipments that move by truck (i.e. Less than Truckload (LTL), Truck Load (TL), or Scheduled trucks). There is no brokering restriction on shipments for rail or time-definite service level.

Foreign Military Shipment (FMS) shipments will be from a CONUS location, or Canada, to a

CONUS DoD consolidation facility, Canada, or a port of embarkation. Contractor may be required to assist/provide Customs Brokerage support for shipments moved under this contract such as assisting shippers with customs documentation and clearances and identifying customs protocols.

Cost-reimbursable contractors (e.g., prime vendor, virtual prime vendor, on-demand manufacturing, quick response, corporate contracts, and Electronic Mall (EMALL) contractors), as approved by the Contracting Officer, may also use the transportation services and rates provided under this contract for official business conducted on behalf of the US Government.

At contract start, the services identified above are required to support DLA and DCMA. Other government agencies may require these services over the course of the contract. When such support is needed, the implementation of such services will be provided to the Contractor and any associated costs will be negotiated.

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

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

b. OCONUS (except Canada) Unit Moves

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

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

e. Shipments under on-site local drayage contracts and/or agreements

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. Universal Services Contract and Regional Domestic Contract contracts

v. Items eligible under Small parcel contracts.

1.2.2.1 Shipping activities may seek other arrangements for freight movements where the contractor cannot provide the EDI 220 Shipment Confirmation within the necessary timeframe or meet the necessary pickup time as required by the EDI 219 Shipment Request.

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. 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.

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 [and provide the name and contact information of the designated individual to the

Government] a principal point of contact within 5 business days of award.

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. Contractor representatives shall be available by telephone (toll-free) for immediate customer response and have access to all shipment information and transportation management technology. Within 8 hour notification, 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 DoD information. The Contractor agrees to:

(a) use and protect such information from unauthorized disclosure in accordance with

(IAW) DoD Instruction 8582.01: Security of Unclassified DoD Information on Non-DoD

Information Systems;

(b) 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) comply with other current Federal and DoD information protection and reporting requirements for specified categories of information (e.g. , medical, proprietary, critical program information (CPI), personally identifiable information, export controlled);

(d) to obtain permission of the Government Program Manager or Contracting Officer

(CO) before disclosing/discussing such information with a third party;

(e) return and/or electronically purge, upon Government request, any DoD information no longer required for Contractor performance; and

(f) advise the Government Program Manager, the CO, and/or the Contracting Officer

Representative (COR) of any unauthorized release of such information.

(g) the Government will require Contractor personnel to sign a non-disclosure statement

(Appendix A) 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 Contractor shall attend a contract post-award conference, hosted by the Government held at Scott AFB, IL. 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 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. The contractor shall provide to the Government verification of price discounts realized. Proposed solutions to any identified issues and suggestions for Government process improvements which would result in efficiencies or price savings will also be included in the

PMR. The Contractor shall prepare and distribute the self-assessment to Contracting Officer

Representative (COR) and CO no later than (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 its 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 Contracting Officer 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 the Implementation Plan was provided to review and approve or return the Implementation Plan to the Contractor for clarification or changes. The

Government Program Manager (PM) 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 Implementation Plan remains in effect until a new one is approved.

1.3.1.1.7.1 Site Changes. The Contracting Officer may add, revise, or delete ordering sites, pickup and delivery locations. The Contractor shall implement, revise, or remove ordering sites throughout the period of performance of this contract in accordance with the established price structure and contract modification. Pickup and delivery locations additions, revisions, or deletions do not require contract modification. The Government may require the Contractor to implement up to 90 additional sites 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 its proposal and approved by the Government during source selection to achieve the timeline of the offeror’s test plan. Unanticipated changes to the test 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 within 5 business days of a Government directed change, or as soon as possible for a Contractor requested change, to the PM. The PM 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 PM 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 level Operational 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.

1.3.1.1.8.1 The Contractor will submit an addendum to the Joint Test Plan for IT systems when new sites not included in the solicitation require implementation. The addendum shall be submitted to the CO within 20 business days of receiving notice that new sites will be utilizing the contract. The addendum will be approved by the Government within 10 business days. The terms of paragraph 1.3.1.1.8 apply for revisions.

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 its overall training approach. The Contractor shall provide the Government with its proposed training curriculum no later than 30 calendar days prior to implementation at the first site. 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. The Contractor will conduct multiple training classes 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 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.

1.3.1.3 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 and approved by the PM, CO, and COR prior to submission. The deliverables shall be accessible via the Contractor’s Transportation

Management System (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 below, 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

PM, 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 Response Metrics. The Contractor shall provide site level data by mode

(TL, LTL, Scheduled, Specialized, Time-Definite Service, and Rail) as approved by the PM, CO, and the COR identifying the total responses for each shipper site, the number of on-time responses (as defined in this PWS) and the percentage of on-time responses. The Contractor shall also provide the total number of responses, the number of on-time responses (as defined in this PWS), the percentage of on-time responses, the number of shipment refusals by late response or failure to respond, the number of shipments cancelled due to late responses or failure to respond. Shipment refusal is defined by failure to return an EDI 220 within the prescribed times (4, 12, 24 hours) from EDI 219 submission. Failures may result (at shippers discretion) in canceling shipment request with contractor and executing shipment outside the contract. The metrics shall provide the on-time response 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 Pickup Metrics. The Contractor shall provide site level data by mode (TL, LTL, Scheduled, Specialized, Time-Definite Service, and Rail) as approved by the PM, CO, and the COR 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, the number of shipment refusals, the number of shipments cancelled due to failure to comply with contract requirements, 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.

1.3.1.3.1.3 On-time Delivery Metrics. The Contractor shall provide site level data by mode (TL, LTL, Scheduled, Specialized, Time-Definite Service, and Rail) as approved by the PM, CO, and the COR 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.

1.3.1.3.1.4 Loss and Damage Shipments. The Contractor shall provide site level data by mode

(TL, LTL, Scheduled, Specialized, Time-Definite Service, and Rail) as approved by the PM, CO, and the COR identifying the Transportation Control Number (TCN), sub-haulers, 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.

1.3.1.3.1.5 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.

1.3.1.3.1.6 Information Technology (IT) System Availability (up-time). 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.

1.3.1.3.1.7 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 (HUBZONE, Small-Disadvantaged

Business, etc.). The metric shall be provided during PMRs.

1.3.1.3.1.8 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 old. The scorecard shall include those transactions where the contractor has not invoiced for payment. This metric shall be provided during PMRs, or upon request, and report the period since the last PMR.

1.3.1.3.1.9 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 Time-

Definite 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

1.3.1.3.1.10 Astray Freight Metric. The Contractor shall provide the number of astray freight pieces submitted for the reporting period, including TCN, dates, sub-hauler, and other pertinent information. 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 broken down by shipper location. A list of accessorial codes applicable to this requirement can be found in Appendix B, Accessorials. The metrics shall provide this information for the reporting month and the 11 months prior to the reporting month and are due to the PM no later than the 15th calendar day of the month following 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:

1.3.1.3.2.1 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 First Destination Transportation

(FDT), or DLA Disposition Service shipment; 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.

1.3.1.3.2.2 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 in accordance with paragraph 1.3.2.5, Task Area 2, Subtask 5 – Astray Freight, 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; TCN; transportation contract 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 due no later than the 15th calendar day of the month following the reporting 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 Loss and Damage 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. SW3124), BoL number, origin

(pickup) location, delivery location, and exception code. A list of exception codes can be found in Appendix C, Exception Codes. This report is due no later than the 15th calendar day of the

1.3.1.4 Task Area 1, Subtask 4 – Greenhouse Gas Emissions. The Contractor shall use commercial practices to monitor and reduce greenhouse gas emissions in support of Executive

Order 13514 Federal Leadership in Environmental, Energy, and Economic Performance. At each Program Management Review, the Contractor shall identify its current monitoring processes, results of such monitoring, and efforts made toward the reduction of greenhouse gas emissions.

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 access to current 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

Arrange/Coordinate/Facilitate 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 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 and all applicable DoD regulations referenced in Appendix N.

1.3.2.1.1 Brokering/Trip Leasing. Only single brokering is permitted for shipments that move by truck (i.e. Less than Truckload (LTL), Truck Load (TL), or Scheduled trucks). There is no brokering restriction on shipments for rail or time-definite service level. 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/sub-contractors, 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 D 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.

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 4 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 any situations.

1.3.2.1.2.1.2 The transportation provider shall provide notice 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 the PM, CO, and COR 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 its temporary or permanent prohibition 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 businesses, i.e., 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. Required Small Business Goals are:

28% Total Small Business

7.7% Small Disadvantaged Business

4% Veteran Owned Small Business

3.1% Service Disabled Veteran Owned Small Busines

1% Certified Hubzone Small Business

3% Women Owned Small Business

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 the freight, all transportation costs, 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 actual value of loss or damaged item(s) up to a maximum of $100K per 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 the Cargo Liability of Carrier (LIE) accessorial, the Contractor shall be liable for the increased declared value based upon the provisions of LIE as identified in Appendix B, Accessorials. 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.

1.3.2.2.2 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.

1.3.2.3.1.3 Contractor shall ensure drivers at an incident or accident scene follow the

Contractor’s 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 within 8 hours of the accident, incident, or emergency.

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 - 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.

1.3.2.5 Task Area 2, Subtask 5 – 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 by MDD, 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 an Astray

Freight Report in accordance with Task Area 1, Subtask 3 and the Deliverables Table, paragraph

1.4.

1.3.2.5.1 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.

1.3.2.5.2 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 its possession. The Contractor will report astray freight as follows:

1.3.2.5.2.1 Seek assistance from local GOCARE representatives as indicated in the SDDC

GOCARE Guidelines.

1.3.2.5.2.2 If the local representative is unavailable, or not known, call the HOTLINE number:

1-800-526-1465.

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

1.3.2.5.3 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.

1.3.2.6 Task Area 2, Subtask 6 – 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). The contractor 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. Any fee associated with the payment of subcontractors shall not be at the

Government’s expense. The Contractor is required to upload a proof of delivery document in Syncada in order to receive payment.

1.3.2.7 Task Area 2, Subtask 7 – 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 contractor’s liability coverage.

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

1.3.2.8 Task Area 2, Subtask 8 – Price Discounts. The Contractor shall ensure shipments are billed in accordance with the notification and pickup timeframes requested. 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 (contract) at an amount lower than the fixed price on contract for linehaul or accessorials, this shall be interpreted as a discount to the Government.

1.3.2.9 Task Area 2, Subtask 9 – Process Improvement. The Contractor shall identify potential opportunities for process changes and recommend improvements that could result in efficiencies for DLA and/or DCMA 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 shall 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.

1.3.2.10 Task Area 2, Subtask 10 - International Customs Brokerage. When requested, the

Contractor shall arrange and/or coordinate for International Customs Brokerage services for shipments moved under DFTS contracted cargo movements, including vendor direct and/or from a DLA/DCMA consolidation point, e.g., A/SPOE, DDSP. (Note: the contractor is not required to move DFTS contracted cargo to international locations.) Brokerage services include all customs requirements at both country of origin (US/Canada only) and the destination country based upon local requirements and cargo routing, e.g., air, ocean and truck. Customs rules and export/import documentation requirements vary based upon country; however, it remains the responsibility of the Contractor to have knowledge of required documentation in order to ensure cargo moves as booked, and to coordinate with the shipper/consignee to ensure proper documentation is provided per the requirements of the countries involved. It is anticipated these services will be required to support Foreign Military Sales (FMS) and Joint Strike Fighter (JSF) requirements.

1.3.2.10.1 Customs brokerage services will be ordered by task order as required by the

Contracting Officer. Prior to issuance of the task order, the contractor will be provided with a request for proposal with a detailed requirement of the customs brokerage services needed. The contractor shall provide their proposal within two business days. Each request for brokerage services will be negotiated at the time of the requirement. The contractor shall submit their anticipated direct costs (labor and customs taxes, duties and excises) for the effort. Upon completion of services, the contractor shall submit substantiating evidence of all actual costs paid along with the invoice for the effort.

1.3.3 Task Area 3 - Transportation Services. The services provided by this contract are an essential enabler supporting DoD’s critical infrastructure. Incapacity of this transportation asset http://en.wikipedia.org/wiki/Duty_%28economics%29 http://en.wikipedia.org/wiki/Excises could have an adverse effect on national defense. The Contractor shall select the mode of transportation (TL, LTL, Scheduled, Specialized, Time-Definite Service, or Rail) to provide the most efficient and effective transportation services to meet the MDD. The MDD is calculated by the shipper system using the transit guide as documented in the Defense Transportation

Regulation (DTR) or the hours/transit times specified in Appendix I, Scheduled Truck. The services described in this PWS are required during normal, seasonal, 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.