VISA_Industry_Day_Agenda_ _Discussion_Slides.pdf

VISA CONTINGENCY CONTRACT RENEWAL

INDUSTRY DAY

December 10, 2014

Together, we deliver.

Agenda

• 1230 Industry Day Starts

– Opening Comments and Introductionsp g

– VISA Contingency Contract Renewal Purpose

– New Requirements

• Facility Clearances; Cyber SecurityFacility Clearances; Cyber Security

– Posted Draft VISA Contingency Contract Documents

• Solicitation, Charter Terms & Conditions, Business Rules

– Liner Terms & Conditions (Proposed Way Forward)– Liner Terms & Conditions (Proposed Way Forward)

• Link VISA to USC & RDC Terms & Conditions; supplement VISA contingency contract

– Pricing Strategy

• Use approved Rate Methodologies (Post Activation DCAA audits (Revenue Based))• Use approved Rate Methodologies (Post Activation DCAA audits (Revenue Based))

• Revenue Based ‐ Activate using peacetime rates; apply revenue formula post

• Compensate difference via Changes modification

– Milestones

Together, we deliver.

Milestones

• 1600 Task Review/Wrap‐Up

VISA Contingency Contract

UNCLASSIFIED

HISTORY:

VISA Liner contracts (VCC’s) – 2005 (SDDC) VISA Liner contracts (VCC s) – 2005 (SDDC) VISA Charter contracts (DCC’s) – 2007 (MSC) VISA Enrollment Contract (VEC) – Updated Annually Contracts Transferred to USTRANSCOM in 2007 and 2011, respectivelyo ac s a s e ed o US S O 00 a d 0 , espec e y Consolidated into a single USTRANSCOM VISA Contract (1 Oct 2013)

Maintained all existing clauses, terms, conditions and rates Contracts extended to 30 Sep 2015 Contracts extended to 30 Sep 2015

RENEWAL PURPOSE:

Last year of statutory authority to extend Needs updating to keep current and valid Add Efficiency and Eliminate redundancy

NEW REQUIREMENTS

Facility Clearance

DD254

Cyber Security 20 Critical Controls

POSTED DRAFT DOCUMENTS

1. SF Form 1449 Solicitation St d d Cl (FAR DFARS USTRANSCOM) Standard Clauses (FAR, DFARS, USTRANSCOM) Common VISA Terms & Conditions (Liner & Charter)

2 Charter Terms & Conditions2. Charter Terms & Conditions

3. VISA Business Rules

4. Cyber Security Guidelines and Lessons Learned

5 DD Form 2545. DD Form 254

6. VISA Carrier Vessel Information Sheet

Together, we deliver.7. VISA Capacity Commitment (Attachment I)

LINER TERMS & CONDITIONS (T&C’s)

1. Link VISA to USC & RDC liner T&C’s?

Reference peacetime contracts T&C’s, as applicable Supplement with existing VISA T&C’s

2. Baseline USC/RDC T&C’s for VISA Contingency Contract?

Supplement with existing VISA T&C’s

3. Utilize existing VISA liner T&C’s?

Supplement with current USC/RDC T&C’s, as applicable?

4. Utilize existing VISA liner T&C’s; revise as appropriate?

Existing Liner Pricing Schedule

Stage I, II and III Sealift & Intermodal Services (CLINS 1000, 2000, 3000) By String (Name # of Vessels Port Rotation Transit Time) By String (Name, # of Vessels, Port Rotation, Transit Time)

Unit and Vessel Daily Rates Inbound & Outbound

• Dry & Reefer Over & Under 40 foot• Dry & Reefer, Over & Under 40 foot Breakbulk and/or RO/RO Cargo

Inbound & Outbound G l C di i ( h d d C)• General Commodities (Rate Methods A, B and C)

• Light & Heavy Vehicles (Method B only)

• Hazardous (Rate Methods A, B and C)

Middle East Foreign Flag Combination Rate (Voluntary) Transfer Port: POD/Zone F2

• Dry & Reefer, Over & Under 40 foot, Inbound & Outbound

Existing Liner Pricing Schedule

Cargo Handling (RO/RO Breakbulk – Method B Unit Rate Only) (CLINS 4000) General, Light & Heavy Vehicles

CONUS East & West Coast Ports Zone Rates CONUS, East & West Coast Ports, Zone Rates Drayage within CONUS – Containers All Types & Sizes

Container Freight Station (CLINS 5000) Stuffing (CONUS & OCONUS Terminals) Stuffing (CONUS & OCONUS Terminals)

East, Gulf & West Coasts, Country General Cargo, Vehicles, Reefers

Stripping/Sorting/Consolidating & Trans‐Loading CONUS Terminals General Cargo, Vehicles, Reefers

Accessorial Services (CLINS 6000) Flat Rack, Controlled/Modified Atmosphere, Stop‐Offs, Super Cargo

Existing Intermodal Capacity – By String Per Sailing (CLINS 7000) Inland Transportation, CFS, Equipment, Port Service

Terminal, Load & Discharge, Inbound & Outbound Rates

Pricing Vision

Charter and Liner:

Select preferred methodology (Revenue, Peacetime, Negotiated)

Price Vessel Daily Rates Upfront Revenue Based Rates ‐‐ Re‐validate post activation (DCAA Audit)

Rectify difference (+/‐) via Changes modification

Liner Unit Rates (Revenue Based) Utilize current peacetime rates upon activation (i.e. seamless transition) di ki S ( 0%) S ( %) l Edit Booking system: Stage I (140%), Stage II (115%) rate values

During activation Industry apply Revenue Based Formula to re‐calculate rates DCAA audit to revalidate proper formula application and rate

Post activation Industry/DCAA provide difference between rate of record and audited rate

Together, we deliver.

Government issue Changes modification to rectify difference

Milestones

Continue Industry Dialogue (Dec‐Feb 2015) Continue Industry Dialogue (Dec Feb 2015)

Issue Final Solicitation for Request for Proposals (Feb‐Mar 2015)

Award New VISA Contingency Contracts; effective 1 Oct 2015

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