USC-8_PWS_DRAFT_Dec_14.pdf

SECTION 1 – BACKGROUND

1.A SDDC Role

1.A.1 As a component command of the United States Transportation Command (USTRANSCOM), the Military Surface Deployment and Distribution Command (SDDC) provides ocean terminal, commercial ocean liner and distribution services to deploy, sustain and redeploy US forces on a global basis.

1.A.2 SDDC is responsible for surface transportation (with the exception of ocean charters) and is the interface between Department of Defense (DoD) shippers and the commercial surface transportation industry. This includes movement of DoD member household goods and privately owned vehicles. SDDC also provides transportation for troops and materiel to ports of departure in the US and overseas and manages numerous ports throughout the world.

1.B Purpose of the Universal Service Contract (USC) and its place within the Defense Transportation System (DTS)

1.B.1 To fulfill its mission of providing global surface deployment command, control and distribution operations to meet National Security objectives in peace and war, it is necessary for SDDC to provide ocean and intermodal distribution services for delivering Defense Transportation System (DTS) cargo anywhere in the world, usually on a door-to-door basis. DTS cargo consists of military equipment and related supplies including supermarket-type commodities shipped by the Defense Commissary Agency (DECA), department store merchandise shipped by Army and Air Force Exchange Service (AAFES) and Navy Exchange Command (NEXCOM), supplies shipped by the Defense Logistics Agency (DLA) and General Services Administration (GSA), and mail shipped by the Military Postal Service (MPSA). DTS cargo is shipped in substantial, recurring and consistent volumes on many trade routes. The Universal Service Contract is the primary (but not exclusive) contract tool for moving DTS cargo when movement by ocean is required.

SECTION 2 – SCOPE

2.A Scope

2.A.1 Overview

2.A.1.1 This contract’s purpose is to provide international cargo transportation and distribution services using ocean common or contract carriers, as defined in the Shipping Act of 1984, offering regularly scheduled commercial liner service for requirements that may arise in any part of the world, including service covered by the Jones Act. Contractors shall be capable of providing ocean, intermodal, and related transportation and distribution services to support their offered services as required herein. This contract is primarily for requirements sponsored by the DoD, to include items not owned by DOD, such as Foreign Military Sales (FMS), Humanitarian Assistance Programs (HAP), shipments from commercial entities for ultimate use by DoOD (e.g. Defense Logistics Agency’s Prime Vendor Program), and occasional shipments by the armed forces of allied nations. In addition, this contract may be used , if approved by the Contracting Officer, for shipments by US federal government agencies other than DoD. This contract shall apply to services performed in peacetime as well as those provided in exigency areas, for which there is a Contingency Annex to cover any special requirements for such areas. This contract is not subject to terms or conditions of Contractors' tariffs. The accepted booking, in conjunction with the terms contained in this contract, constitutes the contract of carriage.

2.A.1.2. This contract applies to both Unit Movement Cargo and Other Than Unit Movement (OTUM) Cargo. Unit Movement Cargo is described by Unit Line Numbers (ULNs) and Plan Identifications (PIDs) in the Joint Operation Planning and Execution System (JOPES) -- whether contingency, exercise or administrative in nature – whether characterized as deployment, redeployment or retrograde cargo.

2.A.2. Rate Modifications

2.A.2.1. Included in the scope of this contract are transportation services and services ancillary to transportation that were not priced at the time of award or during annual (or other periodic) rate refreshes, including but limited to:

1. Additional routes or subroutes, whether ocean or inland

2. Accessorial rates if none established for a particular location or routing

3. Excepted Cargoes Breakbulk/RORO – see definitions section

4. Excepted Cargoes Container – see definitions section

2.A.2.2. These rates shall be solicited, either on a one-time-only (OTO) basis for a specific cargo movement normally with a single awardee, or on an ongoing basis with the potential for multiple awardees, if projected frequency or volume is sufficient for the remainder of the Rate Year.

2.A.2.3. OTOs shall be competitively ordered using the Ordering Procedure Carrier Selection Fair Opportunity Process in Exhibit 4. Ongoing rates are generally awarded through CARE with a process similar to that used during the annual rate refresh.

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SECTION 3 – GENERAL REQUIREMENTS

3.A General/Administrative

3.A.1 Use of English Language

3.A.1.1 All documentation and verbal notices shall be provided in the English language. If required by local law or regulation, additional language(s) may be used.

3.A.2 Hazardous Cargo

3.A.2.1 The US Government shall provide accurate and timely hazardous cargo documentation in accordance with applicable laws and regulations.

3.A.2.2 The Contractor may refuse to transport hazardous cargo either by land or by ocean, which does not conform in all respects to applicable laws and regulations.

3.A.2.3 Transport Emergency Cards (Tremcards) The Contractor shall produce "tremcards" for hazardous cargo transiting through countries where this requirement exists.

3.A.3 Quality Control, Reporting, and Records

3.A.3.1 Quality Control

3.A.3.1.1 The Contractor shall utilize its commercial quality control processes/plan (QCP) to ensure quality service is provided throughout the term of the contract.

3.A.3.1.2 The Contractor shall promptly notify the appropriate Contracting Officer Representative (COR) of any problems or failures that may affect performance. Upon request, the Contractor shall provide the COR with a written plan of corrective action, including a proposed timeline, within 10 business days after such request. This plan shall describe proposed Contractor actions to correct the problem or deficiency and bring performance back in compliance with identified performance standards.

3.A.3.1.3 The CORs shall monitor Contractor performance and compliance with the terms and the conditions of the contract using standard techniques such as inspections, US Government-generated management reports, Contractor reports and customer feedback, or as otherwise indicated herein. The Contractor shall attend periodic meetings called by the COR or the Contracting Officer to discuss operations and problem areas.

3.A.3.1.4 Retention of Records The Contractor shall maintain and, upon request, provide to the Contracting Officer such documentation deemed relevant to performance of transportation services ordered under the terms of this contract.

Records will be maintained and available to the Contracting Officer throughout the term of the contract and for three years after final payment in accordance with FAR 52.212-5(d).

3.A.4 Invoicing and Payment

3.A.4.1 Contractor shall prepare and submit invoices or proper documentation for payment of shipments in a timely mannerno later than one year from the occurance of a billable event. Any invoice later over a year from the occurance of a billable event shall be submitted to TCAQ as a Request for Equitable Adjustment.

Contractor shall prepare and submit invoices in accordance with the requirements and procedures in Attachment 6.

3.A.5 Responsibility for Charges and Taxes

3.A.5.1 The Contractor shall pay all dues, charges and taxes customarily levied on the vessel; however, the amount thereof may be levied. The Contractor shall pay all taxes levied on the freight charges. The US

Government shall pay all dues, charges, duties, and taxes customarily levied on the cargo; however the amount thereof may be assessed – in some of these cases, the Contractor shall be advised by the COR or Contracting Officer to pay such fees, which in turn will entitle the Contractor be reimbursed by SDDC using procedures in Attachment 6.

3.A.6 Space Commitment

3.A.6.1 Provided the booking offer is made at least 5 business days prior to local cutoff, Contractor must make available 10% of vessel capacity for the booking of Government cargo on each US flag vessel sailing from Continental United States (CONUS) on the designated routes listed below:

Outbound Routes/Zones

01 West Coast to Far East

05/11 East & Gulf Coasts to Europe & UK

6A/12A East & Gulf Coast to Western Mediterranean

07/13 East & Gulf Coasts to Middle East, South Asia, Indian Ocean

Other than as listed in the Contingency section, cargo in this category is the only cargo that must be accepted by Contractor, provided that cargo is not excluded by Contractor in an excluded HazMat category.

Counteroffers to RDD may be made by carrier no later than tenfive (105) days beyond the offered RDD.

Carriers refusing such cargo may be placed into Limited non-Use by the Contracting Officer.

3.A.7 Schedule Maintenance

3.A.7.1 For all ocean routes for which Contractor has ocean rates under this contract, Contractor must provide, maintain, and update regular vessel schedules in Integrated Booking System (IBS) at least 45 days prior to sail date. For “Short Sails” of 3 days or less, the Contractor shall provide schedules in IBS 15 days in advance of vessel sailing. If the schedule input by Contractor into IBS changes, Contractor must update the change into IBS.

3.A.7.2 Schedule maintenance by Contractor in IBS is critical, as the Government relies on schedules for the movement of all categories of cargo. Failure by Contractor to update schedules will constitute agreement by the carrier to delete the relevant rates (to include ocean and inland rates to/from the relevant ports) from CARE for the remainder of the Rate Year. Similarly, if booking offers against a schedule are rejected or counter offered in a manner which, in the judgment of the Contracting Officer, indicate that there is no service supporting the schedule, the relevant rates will be deleted from CARE.

3.A.7.3 Container rates must be supported by a fixed-day-of-the-week schedule, either weekly or bi-weekly, with the exception of routes that Contractor has identified and Government has accepted as being low-volume routes, in which case frequency may be relaxed to either every 21 days or every 28 days.

Breakbulk rates must be supported by a regular, recurring schedule of at least once every 30 days, with two exceptions:

a. the exception of routes (e.g. CONUS to/from Guam) for which by law foreign-flag service is not permitted even if US-flag is unavailable.

b. for US-flag vessels only, the regular, recurring schedule must be once every 90 days, except for Round-the-World routings which (circumnavigateing the globe, crossing both the Atlantic and Pacific oceans) which must be once every 120 days.

3.A.7.4 The Contractor shall accept, reject, or counter on the same working day to a request for routing proposals received prior to 1430 local time. For a request received after 1430 local time, the Contractor shall respond by 1200 local time of the next working day.

3.A.7.5 Contractor proposal shall include the military voyage number obtained from IBS. Request for routing proposals shall be submitted by email until this information can be requested and replied to via

EDI.

3.A.7.6 Vessel schedule changes that occur prior to vessel cutoff date may result in cancellation of booked cargo at no cost to the US Government.

3.A.8 Service Changes

3.A.8.1 Notification

3.A.8.1.1 The Contractor has the contractual right to make permanent changes in its offered service, including cessation of such service. In the latter case, the affected rates (both ocean and inland rates to/from any ports no longer serviced) will be deleted from CARE. The Contractor shall notify the Contracting Officer at least 45 days prior to implementation of permanent changes in the Contractor’s commercial offered service. All bookings accepted prior to notification of permanent service change shall be performed in accordance with the booking and all terms contained herein..

3.A.8.1.2 Dry-Dock Initiated Service Change The Contractor shall notify the cognizant SDDC by e-mail of scheduled dry dockings of US flag vessels at least 45 days prior to the scheduled dry-dock date and update IBS accordingly. The Contracting Officer must be notified in writing of any emergency dry-dock requirement affecting published schedules of US flag vessels, and update IBS accordingly.

3.A.9 Customer Service Assistance

3.A.9.1 The Contractor shall submit a list of points of contact who can respond to US Government activities to provide expert assistance in answering questions, exchanging information, and resolving problems – including at least one primary and alternate point of contact available for urgent matters on a 24 hour basis 7 days a week. The list shall designate which points of contact are available on a 24/7 basis, and which are available only on a more limited basis, and advise the hours during which the latter are available.

The Contractor shall provide this list within one calendar week of contract award, and at the time of award of any option years. Should there be any intervening changes to the list, the Contractor will advise of any changes within one calendar week of any such change.

3.A.10 Electronic Commerce / Electronic Data Interchange (EDI)

3.A.10.1 The Contractor shall use Electronic Data Interchange (EDI) or IBS Ocean Carrier Interface (OCI) module (or successor system) as the primary means for interfacing with SDDC for all bookings.

3.A.10.2 The Contractor shall use the Defense Transportation Electronic Data Interchange (DTEDI) approved Implementation Convention for the ANSI X 12 300, 301, 303, 304 and 315 transaction sets in compliance with their approved concepts of operations. Versions 3060, 4010 or later are required. The Contractor shall implement changes to business processes contained in revisions to Transaction Set Implementation Conventions and their controlling concepts of operations as may be approved by the Defense Transportation Electronic Board (DTEB). These changes shall be implemented in accordance with schedules approved by the DTEB.

3.A.10.3 The Contractor shall receive or transmit, as appropriate, the following transactions sets:

3.A.10.3.1 Contractor receiving order data, 300 (Delivery order, the booking, including increases and decreases)

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3.A.10.3.2 Contractor ordering confirmation data, 301 (Confirmation of order, Contractor to Ordering Officer/COR)

3.A.10.3.3 Cancellation data from Ordering Officer, 303 (Ordering Officer Cancellation)

3.A.10.3.4 Shipping Instructions, 304

3.A.10.3.5 Contractor shipment status reporting data, 315

3.A.10.4 Shipment Status Reporting: The Contractor shall provide accurate shipment status reports using the 315 transaction sets. Transactions shall be submitted in ANSI X-12 EDI standard or OCI to SDDC.

Table 3.A.10.3.1 identifies specific events that require reporting. The Contractor shall submit all reports within 24 hours of accomplishment.

3.A.10.4.1 Details regarding each type of EDI transaction can be found in Attachment 1.

3.A.11 Operational Reports

3.A.11.1 The Contractor shall submit operational reports as specified in Attachment 2.

3.A.12 Vessel Cutoffs, Late Gates, and Expedited Origin Linehaul

3.A.12.1 Vessel Cutoffs The Contractor shall provide local cutoffs in IBS Web Vessel Schedule Module and keep SDDC apprised of changes.

3.A.12.2 Origin Cutoffs If the Contractor does not provide a local cutoff in IBS, the default local cutoff is close of business 1 working day before the vessel cutoff at the port with an additional day for each 300 miles from the inland origin point to the port, rounded to the nearest whole day. If the local cutoff falls on a weekend, the cutoff shall be the final workday of that week.

3.A.12.3 Late Gates The Contractor shall lift cargo to the booked vessel when cargo is received after the Contractor's vessel cutoff at no additional charge, if mutually agreeable arrangements have been made with the Contractor for a late gate.

3.A.12.4 Expedited Origin Linehaul to POE For container cargo, Contractors shall provide expedited origin linehaul from origin to the booked port of embarkation (POE) when ordered at time of booking by the Ordering Officer. Contractor shall be paid at the rates in the Table of Accessorials for the specific origin/port combination ordered in the booking. No payment shall be made if the requested level of service is not provided as booked.

3.A.13 Required Delivery Date (RDD) 3.A.13.1 The Contractor shall deliver all cargo by the Required Delivery Date (RDD) specified in the accepted booking, unless consignee is unable to accept delivery prior to RDD, in which case Contractor shall receive consideration for on-time delivery, provided Contractor (upon request of COR) provides supporting documentation as to consignee’s inability to accept delivery prior to RDD. However, Contractor must exercise due diligence to deliver cargo as soon as consignee is able to accept delivery.

3.A.13.2 In those cases when, prior to RDD, the Government directs staging (HG/HR), or authorizes a delay (SD/BD/A1/A2), the RDD is automatically delayed by the number of days of staging or authorized delay.

3.A.13.3 Contractor is free to counteroffer the RDD in the cargo offering with RDDs to allow for additional time based on Contractor capabilities or chosen mode for inland movement. In the interest of facilitating the booking process, IBS will be programmed to not offer RDDs that are unrealistic, based on carrier’s vessel schedules. ). In general, RDDs will not be offered that (for port deliveries) are earlier than two days after vessel arrival, and (for door deliveries) that are earlier than one additional day for each 300 miles (or part thereof) beyond the port.

3.A.14 Equipment

3.A.14.1 Container Standards Contractors shall provide containers with clearly marked container numbers that are clean, dry, empty, odor free, suitable for protecting cargo from damage and comply with ISO, International Maritime Organization (IMO), and Convention of Safe Containers (CSC) standards.

3.A.14.2 Reefer Equipment The Contractor shall provide refrigerated containers to the stuffing activity in accordance with the booking to include pre-cooling, when requested by the Ordering Officer.

3.A.14.2.1 The Contractor shall supply reefer containers that maintain a temperature within three degrees Fahrenheit of the in-transit temperature specified for controlled atmosphere and straight chill, and five degrees Fahrenheit for frozen.

3.A.14.2.2 The Contractor shall provide continuous measurement of internal temperature using a Ryan-type recorder or equivalent capable of continuous recording from availability date for a minimum period of 90 days (160 days for “long routings” for which RDD is more than 60 days after cargo availability) to provide consistent reporting and equipment supply. Contractor shall provide measurement data upon request from the Government.

3.A.14.3 Substitution of Equipment:

When the Contractor has accepted a booking and does not provide the conveyance listed in the booking, the Contractor shall provide a suitable alternative agreed upon by the shipper and the Ordering Officer 10 business days prior to vessel load at no additional cost to the US Government.

3.A.15 Chassis Requirements

3.A.15.1 Containers delivered to the Government or spotted by the Contractor must be on a Contractor-provided chassis that supports stuffing/unstuffing operations by the Government. The chassis must remain with the container while in the custody of the US Government; unless this requirement is waived by the cognizant COR. Blanket waivers for specific areas or destinations may be issued by the cognizant COR upon request.

3.A.16. Equipment Pools (container only) 3.A.16.1. The Contractor may, upon Government request, establish and maintain equipment pools at no cost to the Government. Expenses for operating equipment pools shall be borne by the Contractor to include establishing, managing and disestablishing pools. A Contractor’s inability to establish and/or maintain equipment pools may result in fewer bookings at that location.

3.A.16.2 The Contractor shall provide documentation to the shipper to identify the equipment by Contractor SCAC, equipment owner code, and container number when empty containers are delivered to a shipper for inclusion in a pool. Once the shipper notifies the Contractor that a container is available for pickup, the container is considered loaded and no longer part of the established pool and the Contractor shall replace the empty container within two business days. The Contractor shall respond by the next business day if delivering the empty on the second business day would cause a work stoppage. Customer will notify Contractor if required by the next business day.

3.A.16.3 Locations for which pools are normally requested include, but are not limited to:

AAFES Forest Park, GA AAFES Dan Daniels, VA AAFES San Joaquin, CA AAFES Giessen, Germany DeCA Norfolk, VA (MDV) DeCA Stockton, CA DeCA Hayward, CA DLA Depot Germersheim, Germany (DDDE) DLA Depot Red River, TX (DDRT) DLA Depot New Cumberland, PA (DDSP) DLA Depot Mechanicsburg, PA (DDSP) DLA Depot San Joaquin, CA (DDJC) DLA Depot Norfolk, VA (DDNV) DLA Prime Vendor Valdosta, GA DLA Prime Vendor Pocomoke City, MD DLA Prime Vendor La Mirada, CA DLA Prime Vendor Stockton, CA DLA Prime Vendor Richmond, CA DLA Prime Vendor Swedesboro, NJ DLA Prime Vendor Front Royal, VA NEXCOM Norfolk, VA NEXCOM Chino, CA NEXCOM Montebello, CA MPSA Oakland, CA MPSA Jersey City, NJ Ameriqual Evansville, IN

3.A.17 U.S. Government Furnished Containers (GFC)

3.A.17.1 Booking Offers will designate whether containers will be U.S. Government-furnished containers (GFC) or Contractor-provided. The Contractor shall provide the same level of service to the carriage of cargo in GFC that is provided to the carriage of cargo in the Contractor’s container.

3.A.17.2 The Contractor shall provide a chassis for GFC shipments whenever the Contractor is responsible for the associated inland transportation, unless this requirement is waived by the local shipping/receiving facility or custom of the trade does not normally call for the use of chassis. Detention shall apply to carrier owned chassis when associated to GFC.

3.A.17.3 Contract linehaul rates shall apply for transporting loaded GFC. Inland transportation of empty GFC requested by the Government shall constitute a separate inland move subject to contract linehaul rates unless otherwise mutually agreed to by the Contractor and the Government.

3.A.17.4 The Contractor shall not be entitled to detention for GFC. The Contractor shall return GFC in the same condition as received and shall be liable for loss or damage to the GFC resulting from the Contractor’s negligence.

3.A.17.5 When the Contractor provides any Accessorial services in connection with services provided to US Government owned/leased containers, the appropriate Contractor rates contained in the Schedule of Rates shall apply.

3.A.17.6 GFC includes 8.0’- 9.5’ high x 8’ wide x 20/40’ long ISO dry cargo containers, reefer containers and flatracks. GFC may be government-owned or leased containers.

3.A.17.7 Contractor has the right to refuse a GFC for shipment if it is not properly numbered (neutralized), or that does not comply with ISO, IMO and CSC Standards.

3.A.18 Flatrack Containers

3.A.18.1 The Contractor shall furnish flatrack containers as specified in the booking. Contractor shall be paid an additional flatrack surcharge in accordance with the Rate Guide.

3.A.19 Bulk Liquids

3.A.19.1 The US Government may furnish 20’ tank containers for shipment of bulk liquids by the Contractor.

3.A.19.2 When a US Government furnished tank container is not provided, the Contractor shall provide an acceptable, clean and empty tank container to the shipper and transport to destination. The consignee shall empty the container of liquid but not necessarily of residue, and return it to the Contractor. The Contractor shall be compensated for providing the tank container and for cleaning the empty container at the "Contractor Provided Tank Container” in accordance with the Rate Guide. The Contractor shall be compensated for ocean transportation of these tanks at rates for dry containers, and for linehaul or drayage, if ordered.

3.A.20 Maximum Use of Conveyance

3.A.20.1 All linehaul movements by truck must maximize use of the truck with USC-8 cargo. Only when all USC-8 cargo has been accommodated, may a truck be loaded with other cargo adjacent to (but not on top of or inside) USC-8 cargo.

3.B Shipment Booking and Scheduling

The Contractor shall provide the services as identified in the accepted booking.

3.B.1 Shipment Booking

All cargo shall be booked to the Contractor at the discretion of Ordering Officers based on a contemporaneous best value analysis of technical capability, scheduled service, past performance and price, subject to Voluntary Intermodal Sealift Agreement (VISA) and U.S.-flag priorities, IAW Exhibit 4

3.B.1.1 See Attachment 8, Section 1.3 for additional factors in best value analysis when booking Prime Vendor owned cargo for shipment.

3.B.2 Booking Acceptance

3.B.2.1 Issuance of a booking number by the Contractor through EDI, OCI, Direct Booking, email, or facsimile communication to the US Government constitutes acceptance of booking. The parties may subsequently agree to amendments/changes prior to delivery, including rerouting of containers as specified at paragraph 3.G.5 below. Should the Contractor use auto-accept or other processes that provide a booking number in advance of full evaluation of the offer, Contractors shall have one business day to review and, if desired by Contractor, to counteroffer.

3.B.2.2 The Contractor shall accept bookings, up to a vessel’s space commitment IAW 3.A.6, if the booking is received no less than 5 business days prior to a local cutoff. Empty US Government-owned, empty US Government-leased containers or other empty special equipment shall be booked on a space-available basis. Empty containers shall be offered to the Contractor, who shall propose space for them on the first sailing for which space is available.

3.B.3 Response to Booking Requests

3.B.3.1 The Contractor shall accept, reject, counter, or request additional time for planning purposes on the same business day to a booking received prior to 1430 local time. For a booking received after 1430 local time, the Contractor shall accept, reject, counter, or request additional time for planning purposes by 1200 local time of the next working day. For hazardous cargo, Contractor shall respond to cargo offerings within 48 hours after shipper has provided relevant hazardous information to Contractor for determination of acceptance/rejection of cargo offering.

3.B.4 Automated Booking (This paragraph does not apply to Breakbulk Carriers)

3.B.4.1 Contractors shall implement an automated booking capability via EDI or OCI with the IBS within 30 business days after award of contract. EDI transaction sets shall comply with standards identified in this contract. Contractor shall respond to all cargo offerings, including changes to previous offerings within two hours of the time the cargo offering is released by IBS. Automated booking capability shall be maintained 24 hours per day, 7 days per week, throughout the period of the contract. Contractors shall have 1 business day to counteroffer any booking processed automatically. For hazardous cargo, Contractor shall respond to cargo offerings within 48 hours after shipper has provided relevant hazardous information to Contractor for determination of acceptance/rejection of cargo offering.

3.B.5 Direct Booking Procedures

3.B.5.1 Contractors with established direct booking capabilities shall accept bookings from shippers who are authorized to use Direct Booking procedures. Contractors shall ensure that Direct Booking systems comply with the terms and provisions of this contract. RDDs accepted in the Contractor’s Direct Booking systems will be used to measure RDD compliance.

3.B.5.2. Contractors with Direct Booking capabilities will ensure that the booking acceptance process evaluates "Required Delivery Dates" consistent with its capabilities, especially as Direct Booking offers may not filter out unrealistic bookings per 3.A.14.

3.C Origin Services

3.C.1 Providing Empty Containers to Shippers

3.C.1.1 Spot Date At least 1 day prior to the spot date annotated in the booking, the Contractor shall notify the cognizant Ordering Officer and shipper of any containers, which cannot be spotted to meet booking requirements.

3.C.1.1.1 Container detention at origin does not apply, except in the case of a Government-approved compensable delay.

3.C.1.2 Drop and Pick Service

3.C.1.2.1 The Contractor shall spot the requested equipment at the location on or before the date and time specified in the booking.

3.C.1.2.2 When requested by the Ordering Officer, the Contractor shall provide drop and pick service and shall be compensated $300 per container.

3.C.1.2.2.1 Drop and pick service rates will not apply:

1. At all OCONUS locations

2. In CONUS, where Contractors have established container pools at locations in Attachment 2.

3. In CONUS, where Contractor and shipper mutually agree to drop and pick service at no cost.

3.C.1.2.3 When requested by the Ordering Officer, the Contractor shall provide (for bookings of more than one container) round robin drop and pick service at no cost to the US Government.

3.C.2 Live load

3.C.2.1 The Contractor shall provide live load service at origin as follows:

1. At locations where drop and pick service is not requested by the US Government

2. All other locations when requested by the US Government

3. When agreed to by the shipper when the Contractor schedules pickup

3.C.2.1.1 The Contractor and the shipper shall set a live load appointment (date and time and specific location). Driver wait times will be paid IAW Table 3.G.4.2.5.1. Waiting time shall only run during the shipper's normal business hours of operation. In the event the Contractor arrives 15 minutes or later after the agreed upon time, the shipper may load the cargo immediately or reschedule the loading for a later time. In either case, free time starts upon actual start of loading operations. Shipper may also cancel the appointment and reschedule for a different day at no additional cost to the U.S. Government.

3.C.2.2 In the event the shipper is not able to complete loading by the end of the shipper's business day, the Contractor shall be paid a $150 overnight charge. When loading operations resume, free time, if there is any not used, or waiting time shall start at the time the shipper's workday starts unless the shipper and Contractor agree to a different time.

3.C.2.3 At the request of the Ordering Officer, the Contractor may pick up empty US Government owned or leased containers from locations separate from the designated loading location and deliver them to the shipper for loading. Compensation for this is covered in paragraph 3.H.1. The container shall be spotted at the shipper’s location using rules for live load, drop and pick or pool as would apply for a Contractor provided container.

3.C.3 For locations in CONUS using the Carrier Appointment System (CAS), Contractor shall use CAS to make appointments for cargo pickup and container spotting. In addition, Contractor shall adhere to the Transportation Facilities Guide (TFG).

3.D Ocean Transportation

3.D.1 Cargo Lift and Advancement

3.D.1.1 For door-origin cargo, the Contractor shall pick-up cargo/stuffed containers to meet the booked vessel when the US Government makes pick-up notification in accordance with Section 3.A.13.2.

Contractor shall coordinate pick up dates/times directly with shipper.

3.D.1.2 The Contractor shall lift cargo onto the vessel identified in the booking or to an earlier arriving vessel. Cargo advanced to an earlier arriving vessel shall not displace no-shows and rollovers from previous voyages or cargo already booked. Cargo may be advanced only if the Contractor has received all required documentation. Contractor will notify shipper and origin Ordering Officer when cargo is advanced. Advancement of cargo shall not create a liability to the Government, if no liability would exist if cargo had not been advanced.

3.D.1.3 Shipments that were advanced without proper coordination for early delivery in accordance with Section 3.F.1, charges and free time shall be calculated based on the RDD agreed to in the booking.

3.D.1.4 Contractor shall not advance cargo to an earlier vessel(s) that has a lower VISA or flag priority than the booking unless prior written approval is granted by SDDC HQ.

3.E Cargo Clearance Service

3.E.1 Responsibilities

The responsibilities for cargo clearance under this contract are shared between Contractor and U.S.

Government.

3.E.1.1 For many locations, the U.S. Government has principal responsibility for cargo clearance and performs the majority of tasks incident to clearance. These include the preparation of documents or entry into automated customs systems but, by local practice the U.S. Government may require the Contractor to perform tasks such as document pickup and delivery, presentation of documents to appropriate customs officials and payment of processing fees.

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Costs incurred by the Contractor to provide these incidental services shall be included in applicable ocean or single factor rates. Table 3.E.1 identifies a list of locations where the U.S. Government typically has principal responsibility for cargo clearance. Unless ordered in the booking, Contractor-Arranged Cargo Clearance is not payable at these locations.

Table 3.E 1 United States, including territories and possessions Canada Japan (See Para. 3.E.1.4), including Okinawa South Korea Kuwait

EUCOM AOR:

Belgium Bulgaria Denmark Germany Italy Netherlands Norway Portugal including Azores Romania Slovenia Spain Turkey United Kingdom and its territories and possessions

Hardcopy document clearance

1. U.S. Government prepares a cargo clearance request package (Complete except for any carrier provided documents).

2. U.S. Government may submit to customs or give to the carrier for the carrier to combine with carrier documents (such as bill of lading) and deliver to customs officials, pay minor processing fees, obtain approvals and notify additional personnel requiring notification upon clearance approval.

3.E.1.2 Contractor-Arranged Cargo Clearance: Contractor acts on behalf of U.S. Government to obtain Cargo clearance.

When Contractor-Arranged Cargo Clearance is ordered by the U.S. Government, the Contractor has principal responsibility for cargo clearance.

Contractor-Arranged Cargo Clearance includes, as required by local practice additional services that include,

1. Coordination with shipper/consignee and local customs authorities to obtain and/or prepare (except for signature) all necessary documentation for cargo clearance;

2. Prepare and Provide forms/documents to receiver/US Government for signature;

3. Deliver documents to the customs office, and ensure that documentation is provided to all local entities as required to permit release and on-carriage of cargo to final destination.

When this accessorial service is ordered and provided, the Contractor shall be paid the cargo clearance accessorial in accordance with the Rate Guide. Cargo clearance shall be paid per container or piece in Iraq, Kuwait and Pakistan. For all other locations where contract arranged cargo clearance is required, it shall be paid per PCFN. When a PCFN is split over 2 or more voydocs, due to no fault of the Contractor, cargo clearance will be applicable for each voydoc.

3.E.1.3 Additional countries may be added to Table 3.E.1 should it be determined that the US Government has increased its presence in a country, and that the US Government shall provide clearance services as described by 3.E.1.1.

3.E.1.3.1 Countries shall be removed from Table 3.E.1 via bilateral modification should it be determined that the US Government has decreased its presence in those countries, and that the US Government can no longer provide clearance services as described by 3.E.1.1.

3.E.1.4 Exception for Shipments to Kobe, Hakata and Nagoya, Japan 3.E.1.4.1 Due to the of absence of Transportation Movement Offices (TMO) at Kobe, Nagoya and Hakata ports, the following ancillary service shall be provided by the Contractor for these specific ports. In addition to the Contractor’s basic service, the Contractor shall provide courier service performed by a licensed customs broker for each port. The Contractor shall present the certified and authenticated Customs Free Import or Export of Cargo or Customs Declaration of Personal Property, USFJ Form 380EJ together with the Contractor Arrival Notice (OCAN) to the customs office. The Contractor shall include costs for this service in the applicable rate.

3.E.1.5 The shipper will provide the Contractor with appropriate shipper generated customs documents in a timely manner IAW the DTR and relevant Business Rules. If shipper fails to do so, Contractor will – either one or two business days after actual sail from POE -- notify shipper and SDDC HQ Documentation Team or cognizant SDDC (or other Govt) Terminal by e-mail if customs documentation is missing or inaccurate.

3.E.1.5.1 Import/Export Services: The Contractor shall be responsible for the preparation and/or completion of all required documentation and the submission of the documentation to the appropriate embassy and/or local US Government agencies for the approval, certification, stamping and/or signatures necessary to obtain border clearances and transit. Costs for these services must be included in line haul rates, except that for locations included in the Table of Accessorials, Contractor to submit rates for Import/Export Border Clearance service as part of proposal submission.

3.E.1.5.2 The requested services include, but are not limited to, the completion, preparation, and submission of exemption forms, cargo declarations, goods declaration forms, and importation/exportation forms necessary to effect border transit from origin to port.

3.E.1.6 Notification of Cargo Held by Customs The Contractor shall promptly notify the cognizant COR and SDDC Battalion within 24 hours if cargo is held up by Customs, or if the local port authorities require direct US Government intervention for cargo customs clearance.

3.F Destination Services

3.F.1 Delivery Notification and Receipt

3.F.1.1 For destination door cargo, Contractor shall schedule all deliveries in writing with the consignee or consignee's agent prior to any actual or attempted delivery. Such written notification (which may be supplemented but not replaced by telephone calls) shall take place prior to departure of cargo from POD or intermediate intermodal point (e.g. barge or rail terminal), and at least 2 business days prior to planned delivery, unless otherwise agreeable to consignee. Under no circumstances shall Contractor deliver containers or pieces on the same day as notification unless specifically requested by the consignee.

3.F.1.2 For port cargo, Contractor shall notify consignee/consignee’s agent and cognizant SDDC two times

– once at least 3 calendar days prior to scheduled vessel arrival at port of debarkation and once after cargo has been discharged from vessel is ready for pickup and gate pass is available for outgate. This second notification shall be made only after carrier has completed its obligations at POD (including but not limited to (a) stripping flatracks/containers of cargo, and/or (b) performing customs/other obligations so that gate pass is available). If gate pass is not available solely due to Government failure, carrier shall advise accordingly.

3.F.1.3 Contractor shall deliver all containers or pieces to each consignee during the consignee's normal business hours. If delivery is requested and performed outside the installation’s normal business hours, Contractor may submit invoices for additional costs as provided by Attachment 6.

3.F.1.4 Contractor shall deliver on a specific day if requested by the consignee provided the Contractor can accommodate the request using the Contractor’s normal service, i.e. at no additional charge.

3.F.1.5 If the date the delivery is requested is later than the RDD, the shipment will be considered staged in accordance with 3.A.10.4.2.

3.F.1.6 The Contractor shall provide a delivery receipt for the consignee or consignee’s agent to sign to acknowledge receipt of the containers or pieces and to annotate any exceptions. Refusal to sign a delivery receipt shall be promptly reported by Contractor to the COR. A copy of the proof of delivery shall be be made available uploaded by contractor upon request. within 2 business days of the X1 notification.

Refusal of consignee/agent to sign a delivery receipt is rare; any such occurrence must be promptly reported by Contractor to the COR.

3.F.1.7 A signed delivery receipt with no damage noted does not preclude the US Government from pursuing a claim for damages discovered after delivery. If damage is later discovered, Contractor will be notified and requested to survey cargo.

3.F.1.8 Delivery receipt shall contain the following information: carrier, PCFN, IBS TCN, container number (if applicable), consignee DoDAAC, final destination location, truck number, driver name, date cargo arrived at final destination, date/time cargo in-gated at final destination, date/time cargo off-loaded at final destination, printed consignee name, consignee’s signature, remarks section. Additional information may be included as necessary.

3.F.2 Expedited Delivery (EUCOM AOR)

3.F.2.1. Expedited delivery service in the EUCOM AOR: The Contractor shall provide expedited delivery when ordered by the Ordering Officer. The Contractor shall deliver the container to consignees in Germany within 2 business days and 1 business day at all other locations commencing at 0001 hours on the first working day following vessel discharge or customs clearance of such containers, whichever is later, for distances of up to 400 miles. For distances greater than 400 miles, Contractors shall be provided an additional day for each 400 miles of distance. When the Contractor schedules delivery by appointment for a mutually-agreed time and date the consignee shall be required to "live unload" containers transported under expedited delivery service ordered by the US Government. EXCEPTION: Expedited delivery of shipments enroute, but prior to commencement of on-carriage at port of debarkation shall be by mutual consent of the US Government and the Contractor. Contractors shall be compensated according to the following schedule for expedited delivery services:

EXPEDITED DELIVERY SERVICE SCHEDULE

Minimum Charge (up to 199 miles) $350.00 200 miles to 400 miles $450.00 401 miles to 599 miles $750.00 Over 599 miles $750.00 plus $0.25 per mile for each mile over 599

3.F.2.2 When booked from Mechanicsburg Group to final destinations in Germany using single factor rates, Contractors shall provide the most expeditious mode for delivery from the POD to destination. This expedited service is a basic service to be included in single factor rates when Mechanicsburg Group is the origin point and Germany is the destination country, and is not to be considered as an accessorial service as described in Section 3.F.2.1.

3.F.3 Live Unload 3.F.3.1 The Contractor shall provide live unload service at destination as follows:

1. All locations when requested by the U.S. Government

2. When agreed to by the receiver when the Contractor schedules delivery

The Contractor and the receiver shall set a live unload appointment (date and time and specific location).

Drive wait will be paid IAW Table 3.G.4.2.5.1. Waiting time shall only run during the receiver's normal business hours of operation. In the event the Contractor arrives 15 minutes or later after the agreed upon time, the receiver may unload the cargo immediately or reschedule the unload for a later time. In either case, free time starts upon actual start of unloading operations when delivered on Contractor conveyance.

Receiver may also cancel the appointment and reschedule for a different day at no additional cost to the U.S. Government.

3.F.3.2 Shipments delivered with evidence of tampering or loss shall be investigated by base security and drivers may be detained for questioning by base security. If investigation determines no tampering occurred, applicable wait time rates will be paid. If the investigation determines that tampering/pilferage has occurred, wait time will not be payable.

3.F.4 Container Pick Up/Return

3.F.4.1 Empty containers must be removed within 7 calendar days after receiving notice from the US Government that the container is available. The U.S. Government may submit to the Contractor documentation for payment of additional costs incurred as a result of Contractor’s delay. For Exigency Areas, see 6.C.6 Container Pick Up/Return.

3.F.5 Carrier Appointment System 3.F.5.1 For locations in CONUS using the Carrier Appointment System (CAS), Contractor shall use CAS to make appointments for cargo delivery. In addition, Contractor shall adhere to the Transportation Facilities Guide (TFG).

3.G Exceptions to Normal Service

3.G.1 Alternate Service

3.G.1.1 The Contractor is responsible for the delivery of services required by the booking. This responsibility extends to the performance of any other provider the Contractor may subcontract to in order to perform the services ordered. The Contractor shall notify the Ordering Officer of any alternate service arrangements prior to implementation. The Contractor shall use the flag and VISA priorities when making alternative service arrangements and may not use a lower flag or VISA priority without approval of SDDC

HQ.

3.G.2 Recurring Service Failure

3.G.2.1 When approved by SDDC HQ, tThe U. S. Government may obtain services from alternate sources either inside or outside this contract to include MSC Charters or activation of U.S. Government Vessels.

The U.S. Government shall provide the Contractor with prompt written notice of the Contracting Officer’s determination of the Contractor’s inability to provide the required service before obtaining service from another source. The actions by the U.S. Government to obtain services from another source is a remedy independent of other remedies provided in this contract and shall not necessarily constitute “default” or require remedies in this contract for default.

3.G.2.2 Tthe Contractor may be put into limited nonuse status by the Contracting Officer for one week, one month, or the remainder of the Rate Year for the first, second, and third such failures, respectively forfor a specificed amount of time for any the following service failures:

1. Carrier Performance scores falling below 0.7 for two consecutive monthly ratings (worldwide rating), or (for a single lane) if the score falls below 0.75 for two consecutive monthly ratings.

2. In any 12-month period, submission of five or more invoices more than one year beyond the date of the latest billed event (e.g. more than one year beyond the end of container detention).

23. Rejection of one or more bookings that are required IAW 3.A.6 or contingency annex

34. Lost, damaged, or pilfered shipments exceeding 0.5% of all shipments during any three month period.

45. Failure to report one or more cargo losses, breaches, hijackings as required by the

Contingency Annex.

Contractor will be notified via a letter issued from the Contracting Officer. The letter will outline , at a minimum, the reason the Contractor is being put into limited use status, the amount of time of the limited use status, and any other pertinant information. Prior to the Contracting Officer putting a Contractor in limited use status, a meeting will be held with the Contractor and any interested Government parties to discuss the recurring service failure. Contractors in limited nonuse status may only be offered bookings if no other contractor is available or if no other contractor has equal or higher flag service available.

3.G.3 Canceled Shipments/No Shows

The Contractor shall accept cancellation of shipments for booked cargo without penalty to the US Government for origin port bookings. The U.S. Government will provide cancellation notice at least 24 hours prior to vessel cutoff for origin port bookings. Special situations shall be addressed by the Contracting Officer. For origin door bookings, U.S. Government will provide cancellation notice at least 24 hours prior to origin cutoff in accordance with Section 3.A.13.2.

3.G.3.1 The Contractor shall notify the COR of cargo not tendered to the Contractor in time to meet the booked sailing that has not been cancelled or rebooked.

3.G.3.1.1 For cargo that misses the booked sailing through no fault of the Contractor, the Contractor shall load cargo on the next scheduled sailing after receipt of cargo from the U.S. Government. Contractor shall notify shipper and origin Ordering Officer at time of occurrence.

3.G.3.2 When the U.S. Government notifies the Contractor of cargo not available for a booked sailing, the Contractor shall then designate a new vessel based on the revised availability of cargo. Should the “roll over” cargo not show for the follow on designated vessel, the booking shall be cancelled and the cargo rebooked.

3.G.3.3 The Contractor shall in no event hold the U.S. Government liable for vessel demurrage or dead freight by failing to release a container in time to meet a specified vessel sailing.

3.G.4 Container Detention and Reefer Maintenance

3.G.4.1 Container Detention

3.G.4.1.1 The Contractor shall provide 105 calendar days free time commencing at 0001…