DFTS_Solicitation_Q_and_As__128-155.pdf

Question Response 128 Reference: Solicitation – Addendum to FAR 52,212-1 – Instructions to

Offerors – Commercial Items; Paragraph (i) General Information, (B);

Page 31 of 36.

Paragraph (B) states that offerors are to provide the required electronic (soft) copies on CD-ROM in Microsoft Office Word 2007 – compatible format.

We use Microsoft Office Work 2010. Our information technology department told us that at one time, there was an incompatibility between 2007 and 2010 where opening a document prepared in 2010 in 2007 could result in lost spaces. There further told us that this error was corrected with the issuance of a patch in September 2011. Is it correct to assume that Government computers used to open the CD-ROM will have the patch and be able to open disks prepared in 2010 with no difficulty?

As of 5 May 2014, USTRANSCOM underwent an upgrade to Microsoft Office 2010. Our Government computers can now open Microsoft 2010 documents with no difficulty.

129 Reference: DFTS Questions and Answers, Questions 31,38

a. The agency states in response to #31 that there will be no expedited service accessorial for LTL. However, the agency states in response to #38 that if the shipper is requesting a delivery date faster than standard transit times, “the EXP accessorial will be added.” Please clarify how this can happen, since there is no EXP for LTL.

b. Since there is no EXP accessorial for LTL, must the contractor always use TL with EXP or an airplane to meet delivery dates faster than the standard transit times?

EXP can be applied to LTL. The EXP accessorial is not limited to specific modes. However, EXP can only be assigned by the government, not the contractor. See Amendment 0005 as an expedited (EXP) LTL accessorial has been added.

130 Reference: DFTS Questions and Answers, Question 82

The agency states that the EXP accessorial applies to all modes of transportation. However, in question number 31, the agency states that there is no EXP accessorial for LTL. The proposed accessorial table does not include an EXP accessorial for LTL or Air. Please clarify how the EXP accessorial will apply to all modes of transportation.

This situation has been resolved through Amendment 0005 with the addition of EXP accessorial for LTL.

131 The Solicitation does not ask the contractor to seek opportunities to optimize or consolidate freight and, indeed, such optimization and consolidation is impractical due to operational realities at large DLA sites, including—

• Government preloading of trailers without notice.

• The requirement to determine shipments within 4-8 hours.

• DLA systems are not set up to enable the Tier 2 and Tier 3 service levels for 2nd destination freight, which is the vast majority of freight in the contract at this time.

• Space constraints at large origin points do not allow aggregation of orders.

Does USTRANSCOM anticipate any changes to its customers’ practices that would allow optimization or aggregation by the contractor?

USTRANSCOM's desire is to leverage as many best practices as possible given the constraints imposed upon our network.

132 Does DLA have current plans to revise its systems to enable Tier 2 and Tier 3 service levels?

It is our understanding that DLA's leadership is reviewing it's processes and procedures to determine the best way to conduct business. As a result, IT system changes are going through a systematic change process. DLA participated in the PWS development and will make recommendations on what is required to fully utilize the capabilities of the contract.

133 Reference Evaluated Service Level Volume for LTL and Answer to Question 85 (admitting that the three-tier pricing option is new)

The historical information provided shows that USTRANSOCM moved approximately 185M pounds of LTL freight between 3/2014 and 2/2015. The RFP bid sheet for LTL rolls up 582M lbs of freight, much of it allocated to Tier 2 and Tier 3 (+314% difference). By bidding a lower price in Tier 2 and Tier 3 using the Government’s significantly overstated volumes, the overall evaluated price will be significantly understated (discounted price x high volume = artificially low overall price). Due to the lack of floor space at the Depots, the inability of DSS to “hold” shipments, and the need to “clear the dock” at many depots to meet their internal KPI’s, the volume projected in tiers 2 and 3 does not appear likely to materialize. On what data or information does USTRANSCOM base its evaluation of higher than historic volume? Will USTRANSCOM consider reducing the evaluated LTL volumes to historically supportable levels?

Your interpretation of the historical volumes included in the Pricing Rate Table failed to recognized that the rate table includes shipping data history for DCMA as well as DLA. The historical data provided in the two years of excel worksheets only includes historic DTCI volumes in which DCMA did not particpate.

USTRANSCOM will not revise the estimated volume in the pricing rate table.

134 Reference Evaluated Service Level Volume for LTL and Answer to Question 85 (admitting that the three-tier pricing option is new)

The amount of freight estimated in Tier 2 and Tier 3 appears to be significantly overstated based on historic data. The RFP bid sheet for TL rolls up to over 91k shipments, however, historical data that the government provided shows closer to 30k movements (AV3, AV6 and AF3) within a 12 month period (approximately a 290% difference). Will USTRANSCOM consider reducing the evaluated TL volumes to historically supportable levels? If not, on what data or information does USTRANSCOM base its evaluation of higher than historic volume?

Your interpretation of the historical volumes included in the Pricing Rate Table failed to recognized that the rate table includes shipping data history for DCMA as well as DLA. The historical data provided in the two years of excel worksheets only includes historic DTCI volumes in which DCMA did not particpate.

USTRANSCOM will not revise the estimated volume in the pricing rate table.

135 Reference PWS ¶12.1 p. 3

14.1. What does it mean that “[o]nly single brokering is permitted for Less than Truckload (LTL), Truck Load (TL), and Scheduled trucks?”

14.2. Why is this restriction necessary when it does not apply to air or rail shipments?

a. The prime contractor can only broker (or arrange the transportation of freight) to one entity below itself.

b. To allow non-asset based companies to participate in the requirement.

136 Reference Answer 31

17.1. The offeror asked why there was no expedited service accessorial under LTL. USTRANSCOM responded, “The government has determined that an expedited service accessorial is not necessary. If freight needed to be shipped faster than LTL, the government would request an air shipment.” Of course, in the commercial industry and in other commercial contracts, air shipments may be moved by substituted motor-for-air service under an air waybill and an air SCAC. Because USTRANSCOM has determined it will not follow commercial industry practice, it may wish to add EXP to LTL. Otherwise, contractors may build in the price of expedited LTL into regular LTL rates or, alternatively, fail to meet the MDD.

EXP can be applied to LTL. The EXP accessorial is not limited to specific modes. However, EXP can only be assigned by the government, not the contractor. See Amendment 005 as an expedited (EXP) LTL accessorial has been added.

137 Reference Answer 31

a. The Solicitation is silent regarding whether the contractor may round mileage and/or pricing. May the contractor apply commercial rounding rules for mileage? If not, what rounding rules apply to determination of mileage?

b. May the contractor apply its commercial rounding rules for determining the appropriate price paid? If not, what rounding rules apply to determination of price?

a. The Contractor may not round mileage. DTOD mileage which uses percentage will be utilized for this contract.

b. No, none.

138 Reference Atch 1 – PWS (4.30.15) at 24 ¶ 1.3.6.1 (Task Area 6, Subtask 1 – Pickup and Delivery Requirements)

How much leeway do we have to coordinate the pickup and delivery of freight at a large base (like New Cumberland or Tracy) to prevent empty runs? For example, currently at New Cumberland the Pickup window is so tight compared to the delivery window that we have to dispatch an empty driver behind the driver with the load for delivery. This is necessary to meet the requirements for pickup. We could reduce costs significantly if we could use the same driver that is delivering the freight to pick up the Outbound.

The Contractor may work with the site for process improvement opportunities. USTRANSCOM will not dictate site level practices.

139 Reference Atch 1 – PWS (4.30.15) at 25-26 ¶ 1.3.6.1.3 (Site Operations)

Is there a central receiving location at every base or is the carrier expected to deliver at multiple destinations within a base? Is the LTL carrier required to sort by destination within a base (i.e. New Cumberland)?

The Contractor is required to deliver at the addresses listed on the Bill of Lading. There can be multiple locations at each base.

140 Reference Atch 1 – PWS (4.30.15) at 25 ¶ 1.3.6.1.2 (Appointments)

Does every shipment BOL (vendor to base and outbound DOD moves) have the proper shipment ID numbers so an appointment can be made? Will the NSN be provided for each TCN on the BOL? If the NSN is not provided, what is the process for making an appointment?

The Transportation Facilities Guide (TFG) identifies those sites that require appointments. DLA prints a "Shipment ID" on bills of lading for both the Vendor equipment Module (VSM) and Distribution Standard System (DSS). These IDs relate to the Offer Number sent in the EDI 219. DLA lists the all Transportation Control Numbers (TCNs), which represent shipment units, on the Bills of Lading. A TCN can contain many line items (NSNs). DLA does not list each NSN on the bill unless the shipment contains hazardous materiel.

141 How much freight within the network has a dimension greater the 96”? How much over 144”?

Unknown as requirements change.

142 Reference Atch 1 – PWS (4.30.15) at 25 ¶ 1.3.6.1.2 (Appointments)

Will each base allocate more appointment times during peak shipping times?

The Contractor must work with each site to coordinate appointment issues.

143 Reference PWS (4.30.15) at 30 ¶ 1.3.6.14 (Accessorials)

What is the process to approve valid accessorial charges? One example would be the Relocation Fee.

The Transportation Officer would validate accessorials for the shipment.

144 Reference App’x B at 2 ¶ 1.2.4.2

Accessorial Definitions DFTS PWS Appendix B 1.2.4.2 states “All relevant charges directly related to overdimensional freight shipments, including special permits or toll charges will be included as part of the negotiated rate or Spot Bid.” The truckload bid in tab “2B1 – TL (Various); Various” requires bid rates for equipment codes such as AE6, AB0, AJ0 and other equipment codes that could be used to transport oversize and/or overweight freight. In practice would an offer requiring the use of an AE6, for example, be only spot bid or would the AE6 accepted bid rates always apply?

If there was not a rate for that equipment type and a spot bid rate is approved by the Contracting Officer, that spot bid becomes a contracted rate.

145 Reference App’x B Accessorial Rate Table

Accessorial Rate Table DFTS PWS Appendix B overdimensional freight service 520 charges. If a piece is exactly a specific dimension such as exactly 108” in width, which of the following charges is applicable: overwidth for shipments over 102” but less than 108” at $.25 per mile or overwidth shipments over 108” but less than 120” at $.30 per mile? Based on the charge descriptions (and, possibly from an audit standpoint), neither charge seems to apply. (Suggestion: change the 2nd description to state “overwidth shipments 108” or greater but less than 120”).

See Amendment 0005 that incorporates the recommended change.

146 Reference Amendment 3 at 20 ¶ (4)(i)

Factor 5-Price: “The index categories used to adjust transportation pricing of ground trucking requirements will be for North American Industrial Classification System (NAICS) code 484122 – General Freight Trucking, Long Distance, Less Than Truckload….”

This NAICS code does not correlate with the majority of cost in performance of this contract as the Truckload NAICS have not been considered. Due to known economic factors facing the trucking industry, the rate of inflation for Truckload (local and long distance) is predicted to be much higher than for Less Than Truckload (LTL). This variance would not be captured in the GII algorithm, and therefore the index would not be compensatory. Please add the TL NAICS codes (484121 and 484110) to a Truckload EPA.

USTRANSCOM has determined that the methodology should be revised; therefore, clause 5552.216-9006, Economic Price Adjustment for Scheduled Services – Multimodal (Jul 2013) has been revised to state that the annual adjustments will be made to trucking unit rates and minimum charges uitilising on a composite index based on input cost and demand indices from the IHS Global Insight Pricing and Purchasing Industry Forecasting for the North American Industrial Classification System (NAICS) code 484122, General Freight Trucking. The Input Cost Index (exclusive of fuel) is weighted 69% while the Demand Index is weighted 31%.

147 Reference PWS ¶ 1.3.6.6 Task Area 6, Subtask 6 – Equipment Substitution

PWS ¶ 1.3.6.6 states “Any substitutions for the convenience of the contractor, will be at no cost to the Government.” Does this mean that the entire transportation service will be considered free to the Government in the event of an equipment substitution, or that substitutions for the convenience of the contractor will not result in additional cost to the Government?

No, it means that the Government will only pay for the initially requested equipment rate, unless the contractor provides a less expensive alternative that meets the needs of the Government as determined by the Transportation Officer.

148 Reference PWS ¶ 1.3.6.10.2

Where a shipment contains hazardous materials, in determining whether the mode for which the shipper has prepared the shipment represents the “lowest cost option available to satisfy the requirement”/ “least expensive mode to meet the MDD,” may the contractor consider the costs of repacking and recertifying the shipment IAW Part 49 CFR 171–175 and 176–178?

No, if the Contractor repacks during a mode shift from ground to air, then the Contractor is responsible for absorbing this cost.

150 Reference Solicitation, Amendment 0003, Instructions to Offerors, (i)(D) Page Limits.

This section states that “The font shall be Times New Roman and no smaller than 12 point (including any charts, diagrams, and/or other graphics), unless otherwise indicated.”.

Question: There are several computer screen shots regarding the IT approach we are including in our proposal to demonstrate functionally. These screen shots are generated by various software packages and are not in the specified format. Please clarify what fonts are acceptable for screen shots.

In response to this question USTRANSCOM has determined that it is beneficial to revise the Addendum to FAR 52.212-1 – Instructions to Offerors – Commercial Items to read "The font shall be Times New Roman and no smaller than 12 point (excluding any charts, diagrams, and/or other graphics), unless otherwise indicated."

151 Reference Solicitation

As an interested party submitting a response to the Department of Defense Freight Transportation Service (DFTS) solicitation, we kindly request clarification to the following:

We have completed RFP Attachment 11 as instructed and are providing the 9 and 10 data points required for Corporate Experience and Past Performance respectively. As our monthly profile of over 20,000 shipments involves over 200 individual clients, the spreadsheets containing the data points number is in excess of 20 pages. If these are to be included "in the volume" as stated in the Instructions to Offerors, the 10-page limit per volume will be exceeded. Do these data points, all of which are captured in the RFP Attachment 7 Past Performance Questionnaire format, in fact count against the volume page limits?

USTRANSCOM has revised the page limitations to exclude the data point lists from the 10-page limit per volume for both Corporate Experience and Past Performance. The lists should be included at the end of the volume.

149 Reference PWS ¶ 1.3.6.10.2

Reference Global Insight Index (GII). Based on the Q&A period at the Solicitation Conference (April I st, 2015), where the government requested suggestions to substitute the GIl with other relevant indexes. A submimssion has been recommended that the CASS Truckload Linehaul Index be used instead of the GII. Cass manages more than $26 billion annually in freight spend, enabling Cass to compile meaningful logistics data that serves as an indicator of transportation industry trends. The Cass Truckload Linehaul Index TM is an accurate, timely indicator of market fluctuations in per-mile truckload pricing. The index isolates the linehaul component of full truckload costs from other components (e.g. fuel and accessorials ), providing an accurate reflection of trends in baseline truckload prices.

GII index is based on operating costs of the respective industry being analyzed.

For example, in the trucking industry it would analyze the costs of labor, truck purchases, maintenance, tires, recruiting, other overhead, etc. However, from what we can tell, it does not take into account fluctuations in the market pricing of the services being provided. Therefore, while a truck company's operating costs may increase 3% in a given year, the price of their services (i.e. the cost of getting a truck) could be much higher or lower due to market conditions like available drivers, regulatory strain, seasonal surges, weather, etc. (I.e. supply and demand factors).

Because DFTS is stated as a 3PL contract, pricing will be subject to those market fluctuations not considered by the GII. Using the GII as an index will drive up rates as it will force offerors to price higher to account for the risk of market fluctuations over a seven-year period.

USTRANSCOM reviewed the Cass Index and compared it to the GII index. As a result, it was determined that USTRANSCOM would revise its methodology and therefore clause 5552.216-9006, Economic Price Adjustment for Scheduled Services – Multimodal (Jul 2013) has been revised to state that the annual adjustments will be made to trucking unit rates and minimum charges uitilising on a composite index based on input cost and demand indices from the IHS Global Insight Pricing and Purchasing Industry Forecasting for the North American Industrial Classification System (NAICS) code 484122, General Freight Trucking. The Input Cost Index (exclusive of fuel) is weighted 69% while the Demand Index is weighted 31%. The composite index is preferred and will be used to make annual adjustments based on the following reasons:

• It is not biased or distorted based on trends or changes in the price of fuel. Fuel is a significant cost driver for this industry and makes up a significant portion of the input costs, but since it is compsensated for through a weekly fuel adjustment, any index used for the annual EPA adjustment should be not inclusive of fuel.

• It includes a measure of input cost changes as well as a measure of market conditions.

• It can be used to forecast trends/changes into the future rather than relying solely on historical information.

152 Reference Solicitation, Amendment 0003, Instructions to Offerors, (iii) Volume II – Business Proposal, (F) Small Business Proposal, (1) Subcontracting Plan for Large Business, page 5 of 21.

This section requires that a Small Business Subcontracting Plan be submitted and provides RFP Attachment 9 as the template. Attachment 9 includes a section for identifying the dollars and percentage of the contract to be given to various small business categories.

Question: The RFP provides the recommended percentage goals for various categories of small businesses. However, our price proposal (Volume V) provides rates for our services and does not include a total dollar value for the contract. Please clarify how total dollars given to various small business categories should be determined or represented with respect to the Small Business Plan.

The total dollar value for the Small Business Subcontracting Plan should be based on your organization's total projections for the requirement.

153 Reference PWS App I – Scheduled Truck Routes, Lane column, last entry

Question: the last entry in the Lane column is ‘DP-1’. What is the location of

DP-1?

Per Feb 13 Draft RFP, Appendix I, DP-1 is picked up from Sierra Army Depot, CA (DoDAAC: W91EKJ) and delivered to Tracy, CA (DoDAAC: SZ3279). This Scheduled Truck lane is administered by DLA Distribution's VSM located at M Avenue, Building 54, New Cumberland, PA 17070. But the pickup location is Sierra Army Depot, CA.

154 Reference SF1449 Section: (iv) Volume III: Technical Capability Proposal Page: 35, (A) Sub-Factor 1-Information Technology/Management, (1) Technical Approach, sub-bullet 4 “System Partitioning”.

a. What is the Government’s definition of “System Partitioning”?

b. What types of user accessibility will be required?

a. System partitioning deals with how you allocate system functions to subordinate functions (functional partitioning) and how you allocate physical components to subordinate components (physical partitioning).

b. The IT system must comply with Section 508 Of The Rehabilitation Act (http://www.section508.gov/Section-508-Of- The-Rehabilitation-Act).

155 Reference Amendment 0004, Section (ii) Volume I - Corporate Experience, pages 4 and 5 of 24 and Section (v) Volume IV – Past Performance, page 10 of 24.

a. Volume I is limited to 10 pages and contains three items – section (ii) (A) – corporate experience in three task areas, section (ii) (B) – list of contracts with 9 information items, and RFP Attachment 11. Section (ii) (B) – list of contracts and RFP Attachment 11 are not counted against the 10 page limit. Presumably, the 10 pages are devoted to the discussion in section (ii) (A) – experience in three task areas.

b. Volume IV is also limited to 10 pages and contains three items – section (v)(A) – provide past performance information for contracts listed in RFP Attachment 11 and include list of contracts with 10 information items, (v)(B)

– Past Performance Questionnaire, (v)(C) – Subcontractor Consent. The Past Performance Questionnaire and the list of contracts are excluded from the page limit. It’s unclear what is to be included in the 10 pages as there is not a comparable request for corporate experience as there is in Volume I. Please clarify.

a. The presumption regarding Corporate Experience is correct.

b. The 10 pages for Past Performance can be used for the Offeror to explain how their past performance efforts are recent and relevant to DFTS. This however is not required and the use of the 10 pages is at the discretion of the Offeror to support their Past Performance proposal.

Questions128-155 To be Answered