Atch_4_-_Liner_T_ _Cs_(Amd_1-_Tracked_Changes).pdf

Attachment 4 - Page 1 of 62 20 August 2015

LINER AGENCY NEEDS / TERMS & CONDITIONS and PRICING

Table of Contents

Description

I. DESCRIPTION OF AGENCY NEEDS (DOAN) / LINER TERMS & CONDITIONS

1. GENERAL REQUIREMENTS

1.1 Responsibility

1.2 Employment of the Master

1.3 Use of English

1.4 On-Time Performance

1.5 Restrictions Transfer of Containerized Cargo

1.6 Broken/Replacement of Seals

1.7 Commencement of Delivery

1.8 Port Storage

1.9 Futile Trip

1.10 Rerouting of Cargo

2. SHIPMENT ORDERING AND TRACKING

2.1 Shipment Ordering

2.2 IDE/GTN Convergence (IGC)

2.3 Changes in Data Requirements

2.4 Delivery Notice

2.5 Schedule Maintenance

3. PORT CLEARANCE (Not Separately Priced)

3.1 Contractor Responsibilities

3.2 Government Responsibilities

4. CONTRACTOR REPORTS (Not Separately Priced)

4.1 Effective Reporting Date

4.2 Report Requirements

5. ESTABLISHED LINER SERVICE (CONTAINER AND SHIPPING)

5.1 Established Container Liner Service

5.2 Established Non-Containerized Liner Service

5.3 Dedicated Liner Service

5.4 Modified Liner Service

6. SPECIFIC CONTAINER REQUIREMENTS

6.1 Drayage/Line-Haul

6.2 Drayage and Inland Transit Standards

6.3 Staging

6.4 Constructive Staging

6.5 Government Delay Refrigerated Container

6.6 Chassis Requirement

6.7 Spotting Empty Containers

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6.8 Government Stuffing

6.9 Government Release of Containers

6.10 Container Equipment

6.10.3 Overweight Containers

6.10.4 Tank Containers

6.10.5 Refrigerated Container

6.10.7 Government Furnished Containers

6.11 Accessorial Services

6.11.3 Flat Racks

6.11.4 Stop Off Service

6.11.5 Container Freight Station

6.11.6 Modified Atmosphere Service

6.11.7 Controlled Atmosphere Service

6.11.8 Supercargo Transportation Service

6.12 Equipment Pools

6.12.1 Voluntary Equipment Pools

6.12.2 Required Equipment Pools

6.13 Application of unit and vessel daily rates – container contractors only

6.13.1 General (Rate Methodologies A, B or C)

6.13.2 Unit Rates

6.13.3 Vessel Daily Rates

6.14 Application of Commitment of Intermodal Capacity for CONUS Drayage and LineHaul

6.15 Application of Accessorial Rates

7. SPECIAL NON-CONTAINERIZED SHIPPING REQUIREMENTS

7.1 Loading and Discharging

7.2 Notification of Port Calls

7.4 Cost and Performance Responsibility

7.5 Barge-Ship Systems

7.6 Application of Breakbulk and RO/RO Rates

8. SUMMARY COST AND PERFORMANCE RESPONSIBILITY

8.1 General

8.2 Container Cost and Performance Responsibilities

8.2.1 Responsibility of the Contractor

8.2.2 Responsibility of the Government

8.3 Non-Containerized Shipping Cost and Performance Responsibilities

8.3.1 Contractor Cost and Performance

8.3.2 Government Cost Responsibilities

9. CONTRACT INTERPRETATION

II. SPECIAL LINER TERMS & CONDITIONS

1. WAR RISK

2. ECONOMIC PRICE ADJUSTMENT (EPA)

3. CURRENCY ADJUSTMENT FACTOR (CAF)

4. EQUIPMENT CONTINGENCY CLAUSE (Defined Theater of Operations)

5. DAMAGE TO CONTRACTOR EQUIPMENT

6. LIQUIDATED DAMAGES – (Provisions Removed Amendment 1)

7. UNIT RATE COMPENSATION and BUY BACK PROVISIONS

8. CONTAINER DETENTION

9. DEDICATED LINER SERVICE PORT CALL and FUEL EXPENSE

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10. STANDARD CARGO SECURITY

11. ORDERING

12. RESPONSE TIME REQUIREMENTS UNDER VISA CALL-UP

13. FOREIGN FLAG VESSEL USAGE

14. PAYMENTS

III. LINER PRICING SCHEDULE

a. CLIN 1001 Stage I Requirements

b. CLIN 2001 Stage II Requirements

c. CLIN 3001 Stage III Requirements

d. CLIN 4000 Cargo Handling – RO/RO Breakbulk Requirements

(Method B Unit Rates Only)

e. CLIN 5000 Container Freight Station Requirements

f. CLIN 6000 Accessorial Services Requirements

g. CLIN 7000 Existing Intermodal Capacity Requirements

i. CLIN 8000 Inland Transit Time Requirements

IV. ZONE MAP

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I. DESCRIPTION OF AGENCY NEED (DOAN) / Liner Terms and Conditions

1. General Requirements

1.1. The contractor assumes all responsibility for the transportation of the cargo from the port or point where the cargo is receipted by the contractor to the destination port or the point where the contractor makes the cargo available to the government.

1.1.1 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.

1.1.2 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.

1.2. Employment of Master. If the Government notifies the contractor that the employment or the continued employment of the Master or any member of the crew is prejudicial to the interests or endangers the security of the United States of America, the contractor shall make any changes necessary in the appointment(s). Any costs to the contractor associated with such changes shall be compensated by the Government under the Changes clause.

1.3 Use of English Language. 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.

1.4. On-Time Performance.

1.4.1. The objective of this contract is 100% on-time performance for each shipment. The contractor shall provide a minimum voyage on time performance no later than 24 hours after their published or developed schedules for 95% of all voyages provided under this contract. On-time performance is measured using the contractor’s stated ocean and inland transit times. The Government deems such performance standards as integral to the contract given the timing imperatives of a contingency operation. Liquidated damages are not applicable.

1.4.2. On-time performance shall be measured by the contractor’s tracking system. At a minimum, on time performance will be measured from the business day after pick-up to the business day of delivery.

1.4.3. The contractor shall notify the ordering office if the ordered service cannot be provided within the required time.

1.5. Restrictions Transfer of Containerized Cargo. The contractor shall not transfer cargo from one container to another without the authorization of the Contracting Officer, except when such transfer is required to safeguard the cargo during the continuation of the movement. When cargo is transferred from the original to an alternate container, the contractor shall immediately notify the US Army Military Surface Deployment and Distribution Command (SDDC) activities having cognizance over the loading and discharge ports of such action. Such notice shall contain the serial number and seal number of the original container, and of the container to which cargo was transferred, the place where the transfer occurred and the reason for the transfer. When the container to which the cargo was transferred differs in internal cubic capacity from the original container, freight shall be predicated upon the cubic capacity of the original container.

1.6. Broken/Replacement of Seals. The Contractor shall notify the SDDC electronically within 24 hours of discovery than a seal on any unit of cargo has been broken and/or replaced while the cargo is in the possession of the Contractor. A complete report of the circumstances and reasons shall be provided to SDDC.

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1.7. Commencement of Delivery. After a container or shipment has been discharged from the vessel and customs cleared, the contractor shall deliver (i.e., make available for government pick up), dry cargo containers or shipments and refrigerated or mail containers immediately to prevent port storage charges.

1.8. Port Storage. When onward movement has been delayed other than due to Contractor’s actions due to the fault of or at the specific request of the U S Government, the Contractor shall be reimbursed for actual expenses incurred in the storage of containers or cargo. US Government caused delays must be documented with applicable EDI transactions in accordance with section 2.2.1.

1.8.1. To receive reimbursement for Port Storage services while the cargo is in the possession of the Contractor, the Contractor shall submit an invoice with the following attachments:

1. Certify to SDDC that the Contractor in fact, incurred these costs

2. Copy of the Port Invoice indicating proof of incurred costs

3. Copy of the applicable port tariff citing the applicable rate

1.9. Futile Trip When futile trip costs are incurred due to the fault of the US Government, the Contractor may submit an invoice for authorized futile trip costs as a pass through charge.

1.9.1. The Contractor shall notify SDDC in writing when futile trip is incurred within 24 hours of occurrence. Futile trip charges must be authorized by SDDC prior to invoice submission.

1.9.2 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 US 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, US Government will provide cancellation notice at least 24 hours prior to origin cutoff. 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.

1.9.2.1 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.

1.9.2.1.2 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 US Government. Contractor shall notify shipper and origin Ordering Officer at time of occurrence.

1.9.2.1.3 When the US 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.

1.9.3 The Contractor shall in no event hold the US Government liable for vessel demurrage or dead freight by failing to release a container in time to meet a specified vessel sailing.

1.10 Rerouting of Cargo

1.10.1 En-Route Port Changes

1.10.1.1 Port change requested by the US Government.

1.10.1.1.1 Except as authorized under the "Liberties" clause, the Contractor shall not divert cargo to a different POD without prior approval of the Contracting Officer/cognizant COR.

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1.10.1.1.1.1 If the location of the cargo at the time of the diversion request is within a reasonably normal path for service to the new POD from the POE and the diversion request is in advance of arrival at the POD, the Contractor shall execute the diversion and shall be paid the applicable ocean rates.

1.10.1.1.1.2 If the diversion is not within a reasonably normal path for service, the cargo shall be short stopped (1.10.1.2 below) and rebooked to the new destination.

1.10.1.1.1.2 Should the Contractor incur costs to effect the diversion, such as additional lifts, rehandling, or moves within the terminal, these costs may be reimbursable and may be submitted as described in Attachment 6.

Contractor's administrative expenses are not reimbursable.

1.10.1.1.1.3 If containers are stowed so as to require rework of overstowed containers, Contractor shall advise the COR of the number of containers overstowed and provide a cost estimate to discharge each container. Vessel rework to remove overstowed containers or vessel delay costs requires authorization by the Contracting Officer.

1.10.1.2 Short Stop

The Ordering Officer may elect, in writing, to take delivery at the Contractor’s port instead of at the original inland destination. The request must be made prior to contractor arrival at POD. Free time provisions shall apply at the elected port of the short stop. The shipment shall be re-priced based on the modified booking.

The Contractor shall short stop containers at port of debarkation or any relay port when the Ordering Officer elects to take delivery at that location instead of inland destination. The US Government may order delivery at any intermediate port of call but would be subject to costs and limitations as specified in Paragraphs 1.10.1.1.1.2 and

1.10.1.1.1.3 above.

1.10.1.3 Change of Destination

1.10.1.3.1 The Contractor shall move the cargo to a new inland destination moved via linehaul service from the POD at the written request of the US Government. Request must be made before the container has commenced final inland movement from the port of debarkation. The shipment shall be re-priced based on the modified booking made by the Ordering Officer.

2. Shipment Ordering and Tracking. 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. 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.

2.1. Shipment Ordering. The contractor shall interface with SDDC ordering offices via EDI. Contractor shall receive ordering data (300), shipping instructions (304) and cancellation data (303) from SDDC, and shall send ordering confirmation data (301) and shipment status reporting (315) to SDDC.

2.2. IDE/GTN Convergence (IGC). The contractor shall provide tracing and tracking information to SDDC, where the contractor is responsible for providing the underlying service. Tracing is the review of the carrier records for the purpose of locating a missing container or shipment.

2.2.1. Tracking Data. The contractor shall provide appropriate electronic data transaction set in ANSI X-12 EDI standard, to enable the government to track shipment via Transportation Control Numbers (TCNs). The EDI transaction sets provided to IGC from the contractor shall consist of transaction set 315 for ocean and intermodal shipments. Contractors shall submit specific events using the below table:

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CODE DEFINITION NOTES

EE Empty spotted Container pick up in lieu of actual spot is acceptable for shippers having container pools. Required for other than pool locations

(NOT REQUIRED FOR BREAKBULK)

W Pickup of Loaded container/Breakbulk

This transaction is required at the time customer turns over possession to Contractor

*I In-gate at Port of Embarkation (POE)

This transaction is required at the POE

*VD Vessel departure This transaction is required at POE and required at all transshipment ports

*VA Vessel arrival This transaction is required at the Port of Debarkation (POD) and required at all transshipment ports

UV Vessel discharge This transaction is required at the POD and required at all transshipment ports

*OA Out-gate from POD This transaction is required at the final POD (Port and Door bookings) AV Available for

Delivery This transaction may be submitted when cargo is at final destination but consignee is unable to accept the cargo.

EC Return of empty container to Contractor prior to delivery (X1)

This transaction is required for container shipments when the Contractor has regained possession of its asset prior to delivery (X1).

An example of the proper use of an EC Code would be when cargo is deconsolidated at a transship point, the container is returned to the Contractor prior to X1, and the cargo is moved as pallet loads to the final consignee. Each container shipment container return event should be documented with either an RD or an EC but never both.

*X1 Delivery to consignee

This transaction is required when shipment is delivered to customer, or possession is turned over to the US Government

2.2.2. The contractor shall provide status reports NLT four (4) hours of an event occurrence.

2.2.3. If the contractor is unable to provide one or more of the reporting requirements via EDI, the contractor shall provide manual documentation within the specified time period. The contractor does not have to provide both EDI and manual documentation.

2.3. Changes in Data Requirements. This contract incorporates changes as may be approved by the Automated Carrier Interface (ACI) Committee for Implementation Conventions in accordance with ACI committee procedures or current governing authority.

2.4. Delivery Notice. The Contractor shall notify the military activity in the contingency AOR, at least two (2) workdays prior to container or shipment delivery, of the expected delivery of a container or shipment. The contractor shall not deliver containers on the same day as notification unless delivery is acceptable by the consignee.

2.5. Schedule Maintenance. The contractor shall maintain accurate schedules on IBS commercial carrier vessel schedule web page.

3. Port Clearance (Not separately priced)

3.1. Contractor responsibilities. The contractor is responsible for clearing the vessel through customs, and cargo through the port. The contractor shall submit documentation to the proper authorities for port clearance the day of discharge or within one working day of receipt of appropriate documentation from the cognizant SDDC Brigade or Battalion or its designated authority. If cargo is held by customs, or if the local port authorities require direct government intervention for port clearance, the contractor shall promptly notify the cognizant SDDC Brigade or

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Battalion or its designated authority. Port clearance processing shall be included in the contractor's transit times for delivery of shipments.

3.2. Government responsibilities. The cognizant SDDC Brigade or Battalion or its designated authority, is responsible for clearing shipments through customs, and preparing all applicable custom documentation.

4. Contractor Reports (Not Separately Priced)

4.1. Effective Reporting Date. The contractor shall be capable of commencing the first reporting period 30 days after contract award.

4.2. Report Requirements. The contractor shall be capable of providing reports in an EDI and non-EDI environment. The following information is required for government oversight and management and shall be provided to the Contracting Officer or its local designated authority as indicated. The contractor shall provide this information in a format mutually agreed upon between the government and contractor.

4.2.1. The contractor shall submit monthly the delta and cumulative space and dollar payment totals by voyage for assured service and take or pay.

4.2.2. Contractor will provide SDDC with daily position reports of all ships carrying cargo under provisions of the VCC. The daily report will show location of each vessel as of 1200 GMT. This report will be sent to SDDC's Global Distribution International Division no later than 1800 GMT each calendar day.

5. Established Liner Service (Container and Shipping). The contractor will provide delivery services on a definite schedule with frequent sailing’s between specific commercial ports or ranges. The Contracting Officer may unilaterally order intermodal transportation service to or from a CONUS location in support of vessel capacity activated on an Established Liner Service basis up to the carrier’s existing throughput capacity for the activated string. The carrier’s existing throughput capacity is based on average annualized intermodal capability throughput, per sailing and is specified in CLIN 7000 for major services. All other orders for intermodal transportation service shall be ordered on a bilateral basis. When ordered, the contractor shall provide priority intermodal services.

Priority means government cargo moves first if irreconcilable delivery capability conflicts occur.

5.1. Established Container Liner Service. Established service shall be performed on a liner term basis and shall consist of, but shall not be limited to, furnishing a clean, dry, empty, odor-free container on a chassis to the Government at the contractor’s terminal or other mutually agreeable locations; receiving and handling the stuffed container at the contractor's loading terminal; loading and transporting the container in the contractor's vessel;

discharging and handling the container, including obtaining port clearance, at the contractor's port of discharge terminal as provided at paragraph 5.0, above; and provide drayage from ship side at Ports of Debarkation (POD).

5.1.1. The contractor shall provide the same applicable services as described above for government owned containers or shipments when tendered for delivery.

5.1.2. Established liner services are those on-route services described in the Pricing Schedule.

5.2. Established Shipping Liner Service Port to port liner service for non-containerized shipments shall be provided on a fixed schedule based on the contractor’s commercial Ports of Embarkation and Ports of Debarkation.

5.2.2. Established liner services are those on-route services described in the Pricing Schedule.

5.3. Dedicated Liner Service. Dedicated port to port liner service shall be provided on a fixed schedule between designated Ports of Embarkation (POE) and Ports of Debarkation (POD) to meet unique government contingency requirements. Associated intermodal service shall be ordered on a bilateral basis. Dedicated Service provisions of this contingency contract are subject to bilateral negotiation requirements under the Changes Clause only to the extent that service ordered for the coastwise, domestic offshore or noncontiguous domestic trades and that such

Attachment 4 - Page 9 of 62 service must be structured to avoid reduction, loss, forfeiture or repayment consequences to the contractor under the Construction Differential Subsidy (CDS) or Maritime Security Program (MSP).

5.3.1. Government Orders for dedicated liner service will specify at a minimum: number and type of vessel(s), minimum sailing speed, type of cargo to be shipped (e.g., general, rolling stock, tracked vehicles, hazardous, ammunition, etc.), vessel capacity (by size/type of container, SQ FT, and/or MT), POEs/PODs, special handling requirements, size/ type and amount of containers/chassis to be provided, intermodal/infrastructure support services (e.g., drayage/line haul), port/terminal transit times, etc. The Contracting Officer will consult with the contractor as time permits to issue orders in the most efficient, practicable manner.

5.3.2. The contractor shall provide vessel service on a daily basis to perform dedicated service from either established commercial ports or government ports.

5.3.3. For CONUS operations, the contractor shall manage all delivery services, including intermodal services when ordered, and cargo handling from commercial ports of operation. The contractor shall provide for fuel, port charges, and cargo handling OCONUS consistent with the terms and pricing provided herein. OCONUS equipment provisions are stated at II. Special Liner Terms and Conditions, 4. Equipment Contingency Clause (ECC).

5.3.4. The contractor shall manage all port to port ocean delivery, including CONUS intermodal services when ordered, from government ports of operation.

5.3.5. The government will ship ammunition and explosives (IMO Classes 1.1, 1.2, and 1.3) either on dedicated liner service or by vessels arranged under the charter terms and conditions, unless otherwise mutually agreed. The government will pay the contractor the vessel daily rate, plus applicable expense rates for provided services. The government will also compensate the contractor, via a change order, for increased operating costs (e.g., crew bonuses, penalty payments, increased insurance cost, hazardous cargo handling services, etc.), when such costs are directly related to the hazardous nature of the cargo.

5.4. Modified Liner Service. In the event the contractor’s existing liner service does not meet DOD's requirements, the Contracting officer and contractor may bilaterally negotiate a contract modification to modify existing liner service. Examples of modified service include, but are not limited to: increase or decrease in vessel sailing time, increase or decrease in vessel port time, addition or deletion of port calls, port rotation changes, new intermodal/infrastructure service, etc. The contracting officer may order modified liner service on a bilateral basis.

5.4.1. Small Arms (IMO Class 1.4 Ammunition). If a shipment(s) of IMO Class 1.4 ammunition on established liner service requires changing port calls or service, the government and carrier shall bilaterally negotiate terms, conditions and rates pursuant to the modified liner service clause identified above..

6. Specific Container Requirements

6.1. Drayage/Line-Haul. The contractor shall provide drayage or inland delivery services consisting of providing a container on a chassis at a place designated by the order and spotted at a specific available point (such as a warehouse door or loading platform), designated locally at the time of arrival by the receiving activity, for stuffing or unstuffing, transportation of the stuffed container between such place of loading and the contractor’s terminal and removal of the empty container after unstuffing. Drayage/inland service includes the spotting of the container at one location at the stuffing or unstuffing activity. It does not include split pickup or split delivery type service within the continuous property of the vendor or activity involved. When linehaul service is provided, the Contractor will attempt to load the entire conveyance with VISA booked cargo. If space remains on the conveyance, the Contractor may load other cargo on the conveyance. Non-VISA cargo will not be loaded on or in the US Government cargo. The term conveyance is limited to trucks and does not include rail, barge, vessel or other transportation methods.

6.1.1. Additional intermodal services above the contractor’s existing throughput capacity or new intermodal service may be ordered by mutual agreement. The contracting officer shall order additional intermodal services above existing throughput capacity or new service on a bilateral basis.

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6.1.2. OCONUS inland and drayage, if required, may be ordered by mutual agreement between the Contracting Officer and contractor. The contracting officer shall order such services on a bilateral basis.

6.1.3. Contractor will ensure that any containers they provide the Government to transport munitions comply with 49 CFR restrictions. Contractor will be responsible for drayage to replace containers that fail to meet these standards.

6.1.4. Upon request by the Government, the Contractor will dray/line-haul munition laden containers within CONUS. Contractor will ensure these containers are moved by carriers approved by SDDC, G3. Movement of these containers in OCONUS areas will be approved by the cognizant Theater Commander.

6.2. Drayage and inland transit standards

6.2.1. CONUS drayage and inland transit standards. The contractor shall provide drayage service not later than one working day and inland movement within the standards as proposed in Pricing Schedule. The contractor shall complete CLIN 8000 by entering the contractor’s transit time between the named ports and states including rail/ocean terminal dwell time.

6.2.2. OCONUS drayage/inland standards will be mutually agreed upon between the contractor and contracting officer.

6.3. Staging (Applies only to non-contingency areas). Theatres of operation containers are subject to the Equipment Contingency Clause – see II. Special Liner Terms and Conditions, paragraph 4.

6.3.1. When a delay in commencement of drayage or inland transportation or delay in on-carriage transit requested by the Government occurs the contractor may stage containers or trailers at the contractor’s terminal or port facility, or at any other location chosen by the contractor, such as a railhead or barge terminal. Constructive staging is a delay in the final receipt of the cargo by the Government at the inland destination after release and commencement of on-carriage from the discharge port caused by the Government's refusal or inability to accept the containers or trailers at the inland destination. Staging shall be provided to the government on a priority basis up to the contractors existing throughput capacity.

6.3.1.1. The contractor shall stage containers upon written request of the Contracting Officer or its designated local authority.

6.3.1.2. After written request by the Contracting Officer or its designated local authority for release from staging, the contractor will commence on-carriage within one working day.

6.3.1.3. Containers released from staging will be subject to inland transit standards.

6.3.1.4. Free time and detention will apply during port staging.

6.4. Constructive Staging (Applies only to non-contingency areas). Theatres of operation containers are subject to the Equipment Contingency Clause – II. Special Liner Terms and Conditions, paragraph 4.0.

6.4.1. Acceptance Refusal. If, upon notification by the contractor of the expected delivery, a container is refused or cannot be accepted by the consignee, resulting in constructive staging of the container, the contractor shall promptly notify the theater traffic manager and the Contracting Officer of such refusal or non-acceptance. Upon written notice to the Contracting Officer, or the delegated official, the container may be constructively staged until such time as release is requested by the Contracting Officer, or theater traffic manager.

6.4.1.1. After written request by the Contracting Officer or its designated local authority for release from staging, the contractor will commence on-carriage within one working day.

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6.4.1.2. Containers released from constructive staging will be subject to transit standards.

6.4.1.3. Free time and detention will apply during constructive staging. The Contractor may submit a constructive staging request to the cognizant COR via the D-RAP if cargo is not in-gated within 72 hours of arrival at base gate.

The Contractor must submit supporting documentation with the constructive staging request submitted via the D- RAP. The COR may void the constructive staging authorization if supporting documentation showing adequate justification is not provided.

6.5. Government Delay Refrigerated Container. When the contractor provides inland linehaul or drayage of a refrigerated container under this Contract and Government delays result in payment of detention the contractor shall be compensated for refueling, or furnishing electrical power and maintenance of the refrigeration unit during the time detention rates are payable, at the Reefer Maintenance Rates.

6.6. Chassis Requirement. Containers delivered by the Contractor for transportation by the Government or spotted by the Contractor for stuffing or unstuffing by the Government shall be on chassis which shall remain with the containers while the containers are in the custody of the Government in CONUS unless this requirement is waived by the local receiving facility or by a special provision in this Contract. The ratio of chassis to containers required to be positioned or made available at a Government terminal used by the contractor is a matter to be determined between the receiving terminal and the Contractor. The Contractor shall be paid a surcharge for each chassis provided at the Government’s request. The Cchassis surcharges will be equal to the rate within the active Universal Service Contract at the time services are ordered .

6.7. Spotting Empty Containers. The government shall provide contractor at least two days notice as to where to spot a contractor-furnished empty container for stuffing by the Government. The notice shall include the type and size of container ordered by the Government, the categories of cargo to be stuffed in the container, the name and address of the shipper, the date and approximate time (AM or PM) for spotting the container which will be not later than five working days prior to established cut off time to meet vessel sailing. However, the contractor and shipping activity may mutually agree to another spotting date. The contractor shall advise the ordering office of the new mutually agreed spotting dates.

6.7.1. At a minimum of five (5) working days prior to the vessel's sailing, the contractor shall ascertain whether all requested empty containers will be available for stuffing. The contractor, with the concurrence of the ordering office, may substitute a larger size container than originally ordered.

6.8. Government Stuffing.

6.8.1. When a container has been spotted by the contractor or by the government, for stuffing by the government, the contractor shall allow a minimum period of 48 hours for stuffing.

6.8.2. The contractor shall pickup and remove a stuffed container from the government facility within one working day and remove an empty container from the government facility within three working days.

6.8.3. Calculation of time for pickup will commence at 0001 hours on the first working day following receipt of notification that the container is ready to be transported.

6.9. Government Release of Containers. The contractor shall be required to pick-up loaded containers within one working day after notification by the government.

6.9.1. In no event will the government be liable for vessel demurrage as a result of failure to release a container within the 48 hour allotted time or any other circumstance.

6.9.2. Upon direction of the contracting officer, or its local designated authority the contractor shall transport the container to a place designated in a new order which, under exigent circumstances, may include another contractor’s terminal or return of the cargo to the shipper. The contractor shall be reimbursed for any additional services required.

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6.10. Container Equipment.

6.10.1. When ordered in conjunction with ocean service the contractor will provide required equipment to meet the government’s movement requirements.

6.10.1.1. Return of Contractor Containers. The Government shall return an empty container to the place where the government took delivery, or to any mutually agreed place provided that return to an alternate place does not result in additional cost to the Government.

6.10.2. The contractor shall ensure containers are clearly marked with container numbers and the name of the contractor and 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.

6.10.2.1. The contractor shall ensure leased containers utilized under this Contract shall have the name of the contractor, affixed with stencils or stickers, in letters of not less than three (3) inches in height. As a minimum, such identification will be affixed to each end of a leased container.

6.10.3. Overweight Containers.

6.10.3.1. At the time of order, the contractor shall notify the Contracting Officer if the maximum cargo weight which can be loaded into a particular container (to be stuffed by the Government) is less than the standard maximum cargo weight capacity for the container, and the reason therefore.

6.10.3.2. If the Government stuffs a container with cargo weighing in excess of the container's standard maximum weight carrying capacity or in excess of any lesser weight of which the government has been given notice under paragraph 6.10.3.1., the government shall remove, or pay the expenses exacted because of the excess weight of cargo, and reimburse any other expenses of the contractor in moving or handling the excess weight of cargo.

6.10.3.3. The contractor shall not refuse to carry a container between a United States port and foreign port that weighs in excess of the maximum weight allowed by either the foreign or U.S. Federal, state or local government; provided that the container can be discharged from the vessel and the excess weight of cargo can be removed without violation of the applicable law, regulation or ruling that established the maximum weight.

6.10.3.4. The contractor shall be responsible for all consequences or liabilities that may result from excessive weight of containers stuffed by the contractor.

6.10.3.5. The contractor shall be responsible for all fees or other costs incident to weighing containers.

6.10.3.6. The Government will provide the carrier any required Intermodal Container Weight Certificates.

6.10.4. Tank Containers. When ordered in conjunction with ocean service, the contractor shall provide Tank Containers that comply with International Organization for Standardization (ISO) and International Maritime Organization (IMO) standards for the transportation of bulk liquids, both hazardous and non-hazardous.

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

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.

6.10.5. Refrigerated (REEFER) Container – When ordered in conjunction with an ocean movement, the contractor shall provide on a priority basis up to the existing throughput capacity a weatherproof container for carriage of controlled temperature cargo. The container shall be properly insulated against the effects of temperature outside the container and equipped with mechanical, thermostatically temperature controlled air circulation or air exchange cooling equipment with venting capability capable of providing temperature protection

Attachment 4 - Page 13 of 62 to cargo. (Between 75 degrees and minus 10 degrees Fahrenheit). The electrical hookups will be standard Europe, 5 poles, 380 volts unless specifically ordered by the Contracting Officer.

6.10.5.1. Condition of equipment. The contractor shall provide refrigerated containers in good working order to the stuffing activity pre-set to the in transit temperature specified by the Shipper. Pre-cooled refrigerated containers shall be furnished as requested by the Shipper. The contractor must acknowledge such a request in writing and request a specific ordering number.

6.10.5.1.1. Pre-cooled Equipment. Refrigerated containers shall be pre-cooled and maintained at an internal temperature within three (3) degrees Fahrenheit of the in transit temperature specified for controlled atmosphere, five

(5) degrees Fahrenheit for frozen, and three (3) degrees Fahrenheit for straight chill, from the time of initial stuffing until unstuffing at final destination. Internal temperature shall be measured by using the exhaust temperature. For Chilled Cargo only, the contractor shall maintain containers at an internal temperature from the time of initial stuffing until unstuffing at final destination to prevent cargo from freezing. The contractor shall be responsible for refueling the refrigeration unit, furnishing electrical power and maintaining the refrigeration unit during the period specified above at its expense.

6.10.5.2. Contractor Inspection of Refrigerated Container. Where the Government offers a fully loaded refrigerated container of perishable subsistence to the contractor for movement, the contractor may, at its election, open the container for inspection of condition, stuffing or temperature of the cargo. When the contractor is of the opinion that the cargo is in such condition as to be unsuitable for shipment to the specified destination, the contractor shall immediately advise the Contracting Officer or its local designated authority of such condition, and request a decision regarding shipment of the container.

6.10.5.3. Temperature Recording. The contractor shall furnish a continuous temperature-recording instrument, in operable condition, with each refrigerated container ordered. The instrument shall be capable of measuring and recording in a legible manner any variation in temperature of one degree Fahrenheit or more inside the container during the time the container is stuffed with cargo carried under this Contract. The original printed record or records of the temperature maintained during the transit from origin to destination shall be made available for inspection by the receiving activity when the container is delivered. After inspection, the original record(s) will be returned to the contractor. A copy of the original record or records shall be provided to the receiving activity within 5 working days upon request of the consignee when such record or records are required to support discrepancy reports.

6.10.5.4. Non Self-sustaining Reefer. When providing this type of equipment in CONUS the contractor shall coordinate with the consignee to ensure this equipment is acceptable and shall deliver the containers at a rate consistent with the consignee's capability to provide power or unstuff them during normal duty hours. Free time and detention provisions and Reefer Maintenance Rates will not apply to delays occasioned by the fact that the delayed container is non-self-sustaining.

6.10.5.5. Inland service provided by government. When ordering terms require delivery of refrigerated containers at the contractor’s terminal at the port of discharge the contractor may make arrangements with the Government agency responsible for inland transportation for compensation for refueling, furnishing electrical power and maintenance expenses of the refrigeration unit after the Government's obligation under this Contract terminates.

6.10.5.6. Return of Contractor Refrigerated Equipment.

6.10.5.6.1. When the return of refrigerated containers to the contractor is delayed by the Government in CONUS beyond the allowable free time, the contractor shall be entitled to a container detention charge.

6.10.5.7. Reefer Maintenance. When the return of refrigerated containers to the Contractor is delayed by the Government in CONUS beyond the allowable free time, the Contractor may assess a reefer maintenance charge in addition to those charges for container detention. This reefer maintenance charge shall be added to the per diem detention charge when, due to Government delay, the contractor incurs additional expenses in maintaining operation of those refrigerated containers delayed. The contractor will certify such charges to the Contracting Officer or its

Attachment 4 - Page 14 of 62 designated local authority. The application of such additional charges contained in Columns A and B below is as follows:. The parties recognize that while refrigerated containers are in the possession of the Contractor, the Contractor incurs costs in maintaining their operation. Accordingly, when onward movement has been suspended due to an authorized compensable delay or staging period approved via the D-RAP and free time has expired, the U.S. Government will reimburse the Contractor for additional expenses incurred while maintaining the operation of the refrigerated containers. The Contractor shall provide 10 total calendar days of free time for reefer maintenance during compensable delay/staging periods. Reimbursed costs will be pursuant to the per diem rates in Columns A and B below. The Contractor must certify that incurred costs did occur and submit an invoice in accordance with Section 11 Invoicing and Payment.

6.10.5.7.1. Column A - per diem or part thereof charge when refrigerated containers are delayed at those facilities where electrical power is available for direct connection to the Contractor's container.

6.10.5.7.2. Column B - per diem or part thereof charge when refrigerated containers are delayed at those facilities where the Contractor is required to maintain operation of refrigerated containers without the use of electrical power.

Reefer Maintenance Rates Container Column A Column B

(PER 24 HOUR PERIOD OR PART THEREOF AFTER FREE TIME WHILE

CONTAINER IS IN POSSESSION OF CARRIER)

20 Feet and Over $17.23 $42.02 40 Feet and Over $26.50 $64.64 Note: When a Contractor bills in accordance with Column B above, it must certify that electrical power was unavailable at the facility.

6.10.6. Reserved

6.10.7. Government Furnished Containers. The Government may order cargo for carriage in Government-owned or leased containers. Government chassis may or may not be available for contractor use in the transportation of Government containers.

6.10.7.1. When inland transportation is ordered, the contractor shall furnish the necessary additional equipment for the carriage of cargo in Government containers.

6.10.7.2. The contractor shall provide the same level of intermodal and ocean service to the carriage of cargo in Government containers that applies to the carriage of cargo in the contractor’s container.

6.11. Accessorial Services.

6.11.1. In addition to the basic services, the contractor shall provide the following services when requested in conjunction with an ocean movement. The Contractor will be paid in accordance with the Liner Pricing Schedule or rates will be negotiated by the Contracting Officer at time of request based upon current commercial market prices.

6.11.2. Reserved.

6.11.3. Flat racks. The contractor shall provide on a priority basis up to existing throughput capacity flat racks when ordered by the by the Government.

6.11.4. Stop Off Service.

Attachment 4 - Page 15 of 62

6.11.4.1. The contractor shall provide one or more stop-offs (when ordered) in connection with any intermodal service.

6.11.4.2. Stop-off service shall consist of spotting the container on a chassis at a place designated in the order for additional stuffing/ unstuffing.

6.11.4.3. Specific spotting instructions such as a warehouse door or loading platform may be designated by the local activity at the time of arrival.

6.11.4.4. Stop-off service does not include split pick-up or delivery type service within the continuous property of the vendor or activity involved except as provided below.

6.11.4.5. Free time and detention rules are not affected by split delivery or pickup service.

6.11.5. Container Freight Station.

6.11.5.1. Stripping, Sorting and Consolidation Service. When ordered by the Government, the contractor shall provide on a priority basis up to existing throughput capacity stripping, sorting and consolidation services consisting of unstuffing, separating cargo by consignee, and grouping cargo lots by consignee at contractor's terminal or inland warehouse for pick-up by the consignee or by an inland contractor for further transportation.

6.11.5.2. Stuffing Service. The contractor shall provide services consisting of receiving at its terminals, cargo suitable for containerization, and then consolidating, segregating, tallying and stuffing the cargo into containers and sealing the containers. The integrity of cargo units delivered to the contractor for stuffing shall be maintained throughout the shipment consistent with the stowage capability of the contractor’s containers. Government cargo shall not be commingled with commercial cargo.

6.11.5.3. Transloading service for General Cargo and Reefer Services. The Government may deliver or cause to be delivered to the contractor at the contractor’s terminal at the port of loading, cargo in Government owned or other contractor owned equipment for transloading. The contractor will assume responsibility of transloading such cargo into its own containers.

6.11.6. Modified Atmosphere Service. When ordered, the contractor shall provide on a priority basis up to existing throughput capacity modified atmosphere consisting of furnishing a system that is designed to reduce spoilage to perishable refrigerated container contents by introducing preservative gases in the container for the period from the time the container is closed, sealed and charged with gas after stuffing until the seal is broken at time of delivery of the container to the first consignee or at such time as is mutually agreed upon at the time of order.

6.11.7. Controlled Atmosphere Service. When ordered, the contractor shall provide on a priority basis up to existing throughput capacity controlled atmosphere service consisting of furnishing a self-contained computerized system capable of monitoring and adjusting the atmosphere in a refrigerated container after the contractor has introduced preservative gases in the container.

6.11.8. Supercargo Transportation Service. The contractor's supercargo transportation service shall consist of transporting, victualing and suitably accommodating in the contractor's vessel one or more persons designated by the Government to accompany cargo carried in the vessel. The contractor shall provide Supercargo transportation service when ordered at time of booking.

6.12. Equipment Pools

6.12.1. Voluntary Equipment Pools. The contractor may, as agreed with the shipper, establish equipment container and chassis pools at CONUS or OCONUS inland locations to meet shipper requirements. The expense of operating these pools shall be for the account of the contractor. Any voluntary contractor established pool shall be exclusive of any required pool described below.

Attachment 4 - Page 16 of 62

6.12.2. Required Equipment Pools.

6.12.2.1. When required by the shipper, the contractor agrees the Contracting Officer may order by modification the contractor to establish a container and chassis pool at designated inland CONUS locations. The contractor agrees that the Contracting Officer may also change an existing requirement through contract modification. When applicable, the Contracting Officer may divide the requirement between two or more contractors.