HTC711-15-R-R0003-0010 _Amendment_10_to_DFTS.pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15A. NAME AND TITLE OF SIGNER (Type or print)

30-105-04EXCEPTION TO SF 30

APPROVED BY OIRM 11-84

STANDARD FORM 30 (Rev. 10-83)

Prescribed by GSA

FAR (48 CFR) 53.243

The purpose of this amendment is to make administrative changes to revise the NAICS from 448111 to 481112, Scheduled Air Freight and replace references of “air” w ith “time-definite service level” in pricing language and other applicable documents. As a result the follow ing is revised:

- FAR Clause 5552.216-9006

- DFTS Atch 1 – PWS dated 29 May 2015, para 1.3.2.10

- DFTS App F – Equipment Codes

- DFTS Atch 2 – Rate Table Instructions; Atch 2A–Pricing Sheet-LTL; Atch 2B–Pricing Sheet–TL, Tdef, Sched

- DFTS Atch 12 – Instructions for Obtaining HIS Index Values

Furthermore, PWS Appendix B, Accessorial Rate Table is revised to remove the HAZ, hazmat accessorial for Truckload and Less-Than-Truckload.

POC for this action is Dave Hoag at david.m.hoag.civ@mail.mil or 618-220-7082.

1. CONTRACT ID CODE PAGE OF PAGES

K 1 4

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

16C. DATE SIGNED

BY 01-Jun-2015

16B. UNITED STATES OF AMERICA15C. DATE SIGNED15B. CONTRACTOR/OFFEROR

(Signature of Contracting Officer)(Signature of person authorized to sign)

8. NAME AND ADDRESS OF CONTRACTOR (No., Street, County, State and Zip Code) X HTC711-15-R-R003

X 9B. DATED (SEE ITEM 11)

25-Mar-2015

10B. DATED (SEE ITEM 13)

9A. AMENDMENT OF SOLICITATION NO.

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

X The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offer is extended, X is not extended.

Offer must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended by one of the following methods:

(a) By completing Items 8 and 15, and returning 1 copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted;

or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE

RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN

REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

12. ACCOUNTING AND APPROPRIATION DATA (If required)

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS.

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE

CONTRACT ORDER NO. IN ITEM 10A.

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(B).

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority)

E. IMPORTANT: Contractor is not, is required to sign this document and return copies to the issuing office.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

10A. MOD. OF CONTRACT/ORDER NO.

2. AMENDMENT/MODIFICATION NO. 5. PROJECT NO.(If applicable)

6. ISSUED BY

3. EFFECTIVE DATE

01-Jun-2015

CODE

USTRANSCOM-AQ - HTC711

508 SCOTT DR

SCOTT AFB IL 62225-5357

HTC711 7. ADMINISTERED BY (If other than item 6)

4. REQUISITION/PURCHASE REQ. NO.

CODE

See Item 6

FACILITY CODECODE

EMAIL:TEL:

HTC711-15-R-R003

SECTION SF 30 BLOCK 14 CONTINUATION PAGE

SUMMARY OF CHANGES

SECTION SF 1449 - CONTINUATION SHEET

The following have been modified:

5552.216-9006 ECONOMIC PRICE ADJUSTMENT FOR SCHEDULED SERVICES – MULTIMODAL

(JUL 2013)

1. In order to protect the contractor and government against significant market fluctuations, the unit prices shall be adjusted for each annual period. All adjustments, except for one adjustment during the base period, shall be executed concurrent with the execution of each Option Year or Award Term period. The base period adjustment shall be executed following the first twelve months of performance and shall be effective for the final twelve months of performance of the base period. Allowable adjustments will be made upward or downward if the adjustment varies by 1%.

2. The adjustment shall be applied based on indices described in the following paragraph, as well as the contractor’s proposal as awarded identifying the respective Adjustment Factor for each period. The contractual Adjustment Factors will be multiplied by the Economic Price Adjustment (EPA) determined by the indices to establish the effective adjustment. At contract award, the following table indicating the

Adjustment Factors for each period and each type of service will be populated according to the contractor’s awarded proposal. The Adjustment Factor shall be between 0% and 100%. For example, if stated as “100%” then the unit price adjustment may be applied based on the EPA according to the index.

If stated as a percentage below 100%, e.g. 90%, then for that period, the unit price adjustment may be applied up to 90% of the EPA according to the index. The Adjustment Factor is not applied when the calculated EPA according to the index results in a downward adjustment.

ADJUSTMENT FACTORS

PERIOD

NAICS 484122 –

LTL Line Items

NAICS 484122 –

TL/Scheduled Line Items

NAICS 481112 – Time Def

Transportation Line Items

Base Year, Months 13-24 First Option Year Second Option Year Third Option Year Award Term 1 Award Term 2

3. The adjustment shall be applied to all less than truck load unit rates and minimum charges, to all full truckload unit rates and minimum charges, to the scheduled shipment unit rates, to the time definite (TDef) transportation unit rates, and to accessorials.

(a) For all unit rates and minimum charges with the exception of the time-definite service level (TDef) unit rates and minimum charges, the adjustment shall be based on a derived, 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, Long Distance, Less Than Truckload. The derived, composite index to be applied to the trucking unit rates and minimum charges is based on the Input Cost Index (exclusive of fuel) and the Demand Index for NAICS 484122. The Input Cost Index (exclusive of fuel) is weighted 69% while the Demand

Index is weighted 31%. The resultant composite index will be used for adjustments as it is representative of production costs, exclusive of fuel costs, as well as market activity. The following table is an example of how the the composite index is calculated using the IHS input cost index

(exclusive of fuel) and the demand index for NAICS 484122. (The following is an example and is not based on true values).

Period

Input Cost Index

(excl Fuel)

Demand

Index Calculation

Composite

Index

2014 Q1 1.03727 1.03317 1.03727*(.69) +

1.03317*(.31)

1.03600

2014 Q2 1.04930 0.99014 1.04930*(.69) +

0.99014*(.31)

1.03096

2014 Q3 1.06077 0.89987 1.06077*(.69) +

0.89987*(.31)

1.01089

2014 Q4 1.06398 0.81116 1.06398*(.69) +

0.81116*(.31)

0.98561

2015 Q1 1.06639 0.73171 1.06639*(.69) +

0.73171*(.31)

0.96264

2015 Q2 1.06754 0.71073 1.06754*(.69) +

0.71073*(.31)

0.95693

(b) For the time-definite service level transportation unit rates, the adjustment shall be based on the price index (inclusive of fuel costs) from the IHS Global Insight Pricing and Purchasing Industry Forecasting for the North American Industrial Classification System (NAICS) code 481112, Scheduled Freight Air

Transportation. The IHS price index for NAICS 481112 is a function of both production costs and market activity.

4. In the event publication of any of the above indices is discontinued, the parties shall agree upon an appropriate substitute index.

(a) Index figures subsequently revised by IHS (e.g., amending formerly released indices by removing or replacing components within the index, describing revisions by footnote or appendix, significantly altering the method of calculating the index, or any other method) shall not warrant a retroactive price adjustment under the terms and conditions of this contract.

(b) Price adjustments shall be executed via a contract modification.

(c) Any price adjustments under this EPA clause shall be rounded to two decimal positions (e.g. $1.50).

(d) The formulas for determining the adjusted unit prices for the Option Year and Award Term is

[Eq 1] [( IN+1 / IN ) – 1] x AFN = Effective Unit Price Adjustment

[Eq 2] PN x (1 + Effective Unit Price Adjustment) = Adjusted Unit Price

Where:

PN = The current effective prices listed in the Schedule, where the subscript “N” represents the current contract performance period.

IN = Index for the current contract period: For the first economic price adjustment from the first annual base year period to the second annual base year period, this index will represent the 4-quarter average of the actual/historical index values for the first annual base year period. For each successive adjustment, the index value used for variable

IN+1 in the previous year’s adjustment will become the value used for IN for the current year’s adjustment.

IN+1 = Index for the adjustment period: 4-quarter average of the index for the future contract period

AFN = The Adjustment Factor according to the table in paragraph 2.

(e) To determine the NAICS 484122 input cost index, exclusive of fuel costs, the index data will be obtained from IHS with the input cost breakdown. The share of the fuel cost element will be zeroed out and the new input cost index will be calculated by the IHS DataInsight-Web tool.

5. The index for NAICS 484122, General Freight Trucking, Long Distance, Less Than Truckload, will be determined exclusive of changes in fuel costs because surface transportation requirements are permitted a

Fuel Surcharge Rate in accordance with PWS appendix B. More information regarding the Fuel Surcharge

Rate, including the effective adjustment table for this requirement, can be found at:

http://www.sddc.army.mil/GCD/default.aspx and the TR-12 Fuel Related Rate Adjustment Policy at:

http://www.sddc.army.mil/GCD/Fuel%20Surcharge/TR-12%20FRA%20Policy%20(2).docx. For this contract, the Fuel Surcharge Rate will be applied based on the adjustment table listed in Annex A of the TR-

12 Fuel Related Rate Adjustment Policy.

EXAMPLE:

BASE YEAR (1 Jul 2014 – 30 Jun 15) TO 1ST OPTION YEAR (1 Jul 15 – 30 Jun 16)

Example PN= $5.00, where subscript “N” = FY14

AF15 = 100% or 1.00

Example I14 = Avg from Q3 2014 through Q2 2015 (1.209718+1.211258+1.215064+1.219659)/4 = 1.213925

Example I15 = Avg from Q3 2015 through Q2 2016 (1.225605+1.233057+1.239073+1.245795)/4 = 1.235883

Example Adjustment:

[Eq 1]: [(1.235883/1.213925) – 1] x 1.00= 0.01809

[Eq 2]: P15 = $5.00 x (1 + 0.01809) = $5.09

1ST OPTION YEAR (1 Jul 15 – 30 Jun 16) TO 2ND OPTION YEAR (1 Jul 16 – 30 Jun 17)

Example PN = $5.09, where subscript “N” = FY15

AF16 = 90% or 0.90

Example I15 = Avg from Q3 2015 through Q2 2016 (1.225605+1.233057+1.239073+1.245795)/4 = 1.235883

Example I16 = Avg from Q3 2016 through Q2 2017 (1.251979+1.258781+1.265087+1.272448)/4 = 1.262074

Example Adjustment:

[Eq 1]: [(1.262074/1.235883) – 1] x 0.90 = 0.01907

[Eq 2]: P16 = $5.09 x (1 + 0.01907) = $5.19

6. In addition, carriers may waive an EPA increase that results in higher prices or any part thereof for the entire contract or identified CLIN(s). The adjustment percentage shall apply to all pricing within the identified

CLIN(s). Secondly, if the carrier elects to do so, they can offer the Government an additional downward price adjustment, effective at the time of the option exercise, in lieu of an increased EPA option year adjustment. A carrier may not waive a downward EPA adjustment.

7. All EPA adjustment calculations will be based on the current year’s prices in the Schedule and the index calculations described above. A carrier shall not recoup previously waived EPA increases.

(End of clause)

(End of Summary of Changes) http://www.sddc.army.mil/GCD/default.aspx http://www.sddc.army.mil/GCD/Fuel%20Surcharge/TR-12%20FRA%20Policy%20(2).docx http://www.sddc.army.mil/GCD/Fuel%20Surcharge/TR-12%20FRA%20Policy%20(2).docx