(UPDATED_24MAY18)_Questions_and_Answers.pdf

Reference Question Answer

1.1.2& 1.1.3, According paragraphs 1.1.2 International Heavyweight Accessorial Service, 1.1.3 International Size/Weight Limitations and 1.1.3[4] International Transit Times of the PWS for HTC711-18-R-C002 there is an Attachment 2, Pricing Matrix. However, there was no Attachment 2 provided with the presolicitation notice posted.Would it be possible to obtain a copy of Attachment 2 to fully review and comment on the draft PWS.

A draft Attachment 2 Pricing Matrix was provided in an email to Industry on 19 April 2018.

Can you please let us know the pricing strategy? In other words, will the rates be NTEs, as they are now, or will they be fixed prices subject to annual adjustments, or perhaps another method

Pricing will be Not-to-Exceed rates with two rate refreshes based on pre-negotiated escalation percentages.

There are 52 approved air carrier SCACs within GFM, each SCAC should be able to be represented at this meeting even though the Domestic program may come at a later date, they should still be represented.

The GHS program will be limited to Civil Reserve Air Fleet (CRAF) carriers.

Therefore, CRAF carriers have been allotted four attendees for the Global Heavyweight Service (GHS) Industry Day. Further, a slide deck and questions and answers will be posted/emaled for those not physically able to attend.

Domestic cargo shows “reserved”, why? It appears the program is not ready for “Prime Time” since it is not complete. When does USTC anticipate incorporating the Domestic portion?

Domestic delivery service will not be included at contract start. Paragraphs have been reserved to include domestic service at a later date. The Government anticipates adding domestic service in early 2020.

Will the MFTURP1 remain the governing rules publication for domestic shipments given the GFM is set up to incorporate those regulations In addition to the PWS, the MFTURP-1 will also govern domestic shipments.

If domestic is to be included and pricing will be input into the GFM, are we to assume current zones and weight breaks will be in effect for the proposed solicitation?

Domestic zones and the pricing structure will be Conus to Conus (9C to 9C) only;

weight breaks will remain as they are today. Rates will be Not-to-Exceed (NTE) rates.

Please describe how this new approach USTC is taking supports the guidance outlined in the Federal Register notice issued in September 2014 which stated “The purpose of the new policy is to strengthen the CRAF program in support of the national defense airlift objectives to ensure military and civil airlift resources are capable of meeting the defense mobilization and deployment requirements supporting U.S. Defense & Foreign Policy.” Competition for the GHS program will be limited to CRAF carriers.

How does this solicitation promote and support small business?

The solicitation will require a Small Business Subcontracting Plan be submitted by Large Business concerns with their business proposal. All offerors (to include large and small business concerns) shall submit a Small Business Participation/Commitment Document with their business proposal.

The government spent untold dollars to implement and support the current GFM voluntary tender system. This system promotes transparency, competition, and allows for a very large network to provide services to support military readiness.

With the inclusion of the Domestic program, what is USTCs approach with integrating the domestic service into this system?

GFM currently supports the domestic tender program and will support domestic heavyweight shipments under the GHS program.

The current GFM system is flawed in execution since many shippers use CMOS for shipping. As it stands now, shippers using CMOS can see the NTE pricing within GFM and base their decisions off of NTE pricing, not actual requested pricing. What is USTCs plan for preventing shippers from using inaccurate pricing and denying many carriers from being able to bid on shipments

There are four major shipping systems in the DOD: GFM (Global Freight management), CMOS (Cargo movement Operations System), FACTS (Financial Air Clearance Transportation System), and DSS/VSM (Distribution Standard System/Vendor Shipment Module). GFM is currently the only one that has a fully functioning IHAT capability. FACTS and CMOS are finalizing their code and testing with GFM. DSS/VSM have not decided if they are going to process IHAT shipments through GFM. At this time, we do not have a go-live date for FACTS or CMOS, but anticipate both will be in 2018. When these systems release their respective IHAT functionality, this will ensure that all IHAT carriers have equal opportunity to see and place offers for every IHAT shipment they qualify for. We continuously educate the shippers on the shipment execution process and issue shipper advisories. Manual and automated ordering procedures will be addressed in the GHS shipper guide.

Fair and Reasonable determination: This is always something that USTC shrouds in secrecy and no one has any idea what is considered. After sitting in on a recent briefing with the highest levels of TCAQ leadership, along with some of the most senior leaders within USTC, industry explained the constraints of airlift capacity and what is it doing to the market. How will USTC take into consideration the current, and future market conditions when they try to determine Fair and Reasonable pricing?

Proposed prices received in response to the solicitation will be evaluated in accordance with FAR 15.404-1(b)(2)(i) to determine prices fair and reasonable.

The PWS references Attachment 2 frequently; however there is no attachment 2 which carriers can review prior to posting pricing information in GFM. This is a laborious process. Will USTC post an attachment 2 so everyone can see the lanes?

A draft Attachment 2 Pricing Matrix was provided in an email to Industry on 19 April 2018. Additionally, once the solicitation is released in GFM, the carriers will be able to download the pricing spreadsheet.

Section 2.4 mentions Special Handling and within this section, HAZMAT is described. Shippers need to ensure compliance with ICAO HAZMAT guidance and not DoD processes. This needs to be included in the PWS.

Shippers will continue to certify hazmat to ICAO standards. Information for the shippers will be included in the GHS Shipper's Guide.

Section 5.1 references a recovery rate of 2.3%. This rate is not part of the current programs and will increase the cost your customers must pay a. Are your customers aware they will be paying more money for the same service they have been receiving over the years?

b. Please provide details on how the 2.3% figure was derived

c. Section 5.1 goes on to state “The Recovery Rate equals 2.3% of total revenues received during the period.”: however, this fee is compounding upon itself and also being applied to another non-shipping fee of Syncada which currently stands at 1.46%. This was brought to the attention of Nicole Swoboda, Contracting Officer on another contract and the reply was “However, moving forward (Global Heavyweight Service), the SMEs have formed a team to draft revised language and a corresponding recovery rate methodology.”

d. “The Recovery Rate percentage addressed in paragraph 5.0. will be re-calculated every fiscal year and may be adjusted by the government on an annual basis.”

Please describe the parameters for the potential adjustments?

A cost recovery rate will be applied to the GHS contracts in accordance with USTRANSCOM's charter, dated 31 July 15, and the DoD Financial Management Regulation (FMR). Cost recovery rates shall be assessed on the total dollar amount obligated for all USTRANSCOM Activity Group External Customer contracts administered by TCAQ. Cost recovery rates are used to reimburse USTRANSCOM for all costs of all goods and services associated with developing, executing, and administering customer contracts. The cost recovery rates is re-assessed annually by TCJ8 in order to keep costs in line with associated revenues.

The specific GHS recovery rate methodology was addressed in the industry day slide presentation and will be included in the GHS PWS.

Knowing your customers, and taxpayers, will have to pay additional fees, please explain the rationale behind changing this program to a FAR based contract vs. the current program.

The transition from tender programs to FAR based contracts is in compliance with DoDI 4500.57, which states "The acquisition of transportation and related services shall be obtained using guidance contained in the Federal Acquisition Regulation (FAR) (Reference (k)) and the DoD FAR Supplement unless a deviation is necessary to meet mission needs. Non-FAR procurement instruments such as tenders of service and bills of lading shall only be used in limited situations when FAR procurements cannot meet customer requirements.

The current program permits ALL CRAF carrier participation. Will this contract be a multiple award and include all CRAF carriers?

Contracts will be awarded to CRAF offerors whose proposals have been determined acceptable under all evaluation factors, who have proposed fair and reasonable prices, and who have been determined responsible.

What is the expected term of the contract award?

The Government anticipates awarding contracts with a three year 6 month ordering period (1 April 2019-30 September 2022).

What will be the mechanism /process for the annual rate and price adjustment process?

Offerors will propose two different escalation percentages for the rate refreshes applicable in out years. Specific information (including an example) on how escalation and recovery rates will be applied will be included in the GHS solicitation and in the industry day slide deck. Carriers will also have the opportunity to decrement rates at rate refresh.

Please describe how the dimensional weights will be calculated

Dimensional weight will be calculated as it is today; L x W x H/dim factor. Each carrier will select the dim factor (166 or 139) when submitting rates in GFM during their proposal.

Under various agreements and customary international law, U.S. Government shipments are exempt from customs duties, taxes, and related charges other than those for storage, cartage, and similar services. The contractor is responsible for providing duty-free cargo clearance with host nation customs officials. Any customs fees arising during the contract performance period shall not relieve the contractor of its responsibility to meet the contracted required delivery date.a. Please cite the applicable agreements and customary international law

One sovereign nation does not have the grounds or legal standing to tax another, so if the U.S. Government is taxed, it doesn't pay. PWS Paragraph 2.2.1. will be updated.

The contractor is responsible for providing duty-free cargo clearance with host nation customs officials. Any customs fees arising during the contract performance period shall not relieve the contractor of its responsibility to meet the contracted required delivery date.” This language is different than some current USTC contracts in which USTC understands that they cannot hold another Nation hostage to US rules and regulations. Current contract language states “In the event that a shipment is not duty free, the contractor shall process in the same manner provided for its commercial customers and shall properly itemize as an accessorial charge on their Government-Approved Third Party Payment System invoice. Please explain why USTC does not have a standard for contracts that are similar in scope

Across USTRANSCOM transportation contracts, pricing structures differ for various reasons (ex. Contract type, contract line item structure, ordering procedures, etc.) For this reason there is not a standard for all transportation contracts.

Customs “The rates and the contractor’s commitment to meet the required delivery date shall be inclusive of all requirements to provide customs clearance for international shipments under this contract .”

a. Carriers do everything they can to ensure cargo is delivered as specified within the contract; however, there are events that are outside of a carriers control and as such, carriers should not be penalized for delays caused by the government of another Nation.

GHS will include excusable delay codes, which have CUS (customs) as one of the excusable delay codes if the delay is in fact due to customs, which will be reviewed by the PMO

Paragraph 2.10.1. is not the same as current USTC contracts and places an unrealistic burden on the carriers. USTC wants to leverage commercial best practices; however, they want to get something for nothing. Please explain why a business should bear the full financial burden when a service may be a day later than specified? Even in a court of law, the plaintiff would still have to pay a portion of the service provided.

The PWS does NOT state the carrier will bear the full financial burden when there is a service failure on international shipments. 2.10.1. For those international shipments that do not meet the required delivery date, a shipper may initiate a credit request within 15 calendar days after the contractually required delivery date. The contractor shall negotiate a credit with the shipper and resolve a credit request within 30 calendar days of credit request or the next billing cycle whichever is greater. If shipper-initiated credit is not requested within 15 calendar days after the contractually required delivery date, the contractor is not required to process the request or credit the agency or organization.

para 5 Can we reduce recovery rate to 1.3%? Potential for better pricing on the net freight.

No. USTRANSCOM J8 determines the recovery rate annually. For FY19 the rate is 2.3%. The cost recovery rates are assessed on the total dollar amount obligated for all USTRANSCOM Activity Group External Customer contracts administered by TCAQ. These cost recovery rates shall be used to reimburse USTRANSCOM for the costs of all goods and services associated with developing, executing, and administering customer contracts.

There is no language addressing Post Payment Audits can we use NGDS to keep consistency?

A team consisting of representatives from USTRANSCOM and GSA are working GHS specific language to include in the PWS.

Can we add additional multipliers example 301 to 600 lbs, 601 to 1000 lbs similar to CATA3? Flexibility in pricing lanes more favorable for both carrier and US Government.

No. For international shipments, the Government does not intend to include a weight break pricing structure. GHS will include Not-to-Exceed rates, allowing carriers to offer a lower rate on specific shipments.

International Heavyweight Service Limited shipment capability for select Security Risk Code (SRC) III and IV items is noted.

How will these items be identified? It cannot be assumed that all carriers will accept all SRC III and SRC IV items to all origin/destination pairs

Shippers will be required to vet their SRC III and IV cargo through J3, in turn the carriers will be notified the cargo is SRC III and IV and have the ability to excuse themselves from any shipment offer.

page 8 para

2.5 Contract Rates Will the rates be a firm fixed price or a Not to Exceed rate?

The rates will be Not-to-Exceed with two rate refreshes in out years based on pre-negotiated escalation rates.

page 9 para 2.5.2

All annual rates become effective on 1 February.Would the Government consider a renewal timeframe of 1 October to coincide with NGDS? The Government is considering a Period of Performance of 1 April 2019 - 30

September 2022, with rate refreshes on 1 Oct 2020 and 1 Oct 2021.

page 10 para 2.8

Attempted Delivery Commercially, carriers are moving to a one attempt for deliveries and request that the Government accept commercial practices. Recommended language: ‘”The contractor shall attempt to deliver a shipment three times or as offered commercially.” PWS paragraph has been updated.

page 10 para 2.9

Undeliverable Shipments/Refusal by Consignee Suggest the Government accepts the carrier’s commercial practice as an alternative. PWS para 2.9 will remain as written.

page 10 para

2.10 Delivery Commitment/Guarantee Suggest the Government use carrier’s commercial policy.

Negative. The PWS does NOT state the carrier will bear the full financial burden when there is a service failure on international shipments. 2.10.1. For those international shipments that do not meet the required delivery date, a shipper may initiate a credit request within 15 calendar days after the contractually required delivery date. The contractor shall negotiate a credit with the shipper and resolve a credit request within 30 calendar days of credit request or the next billing cycle whichever is greater. If shipper-initiated credit is not requested within 15 calendar days after the contractually required delivery date, the contractor is not required to process the request or credit the agency or organization.

2.14/2.15

Commercial Forms and Procedures (CF&P) and Ordering Suggest adding that a carrier approved electronic or hard copy AWB is required and that the CBL only is not acceptable. PWS para 2.14 will remain as written.

page 13 para

2.16.6 Suggest the Government use carrier’s commercial practice. PWS para 2.16.6 will remain as written.

App 1.5 Was the sub carrier field intentionally left out?

The CRAF carrier will ultimately be held responsible for reporting, service failures, etc. Therefore, there is no value added in providing sub carrier.

App 1.5 Several accounting fields on the main data report (shipment detail), yet are asking for an additional "Accounting Table". It seems redundant and will add another layer of expense to producing the report.

The 3 files only have a couple columns that are redundant and that is required to be able to link the data sets together.

App1.5

Under the contract scope, contractors are required to provide shipment data reporting. Most of the other procurement vehicles have moved to commercial practices where the customer uses on-line reporting. Will the Government consider adapting this commercial practice? Commercial reporting has been considered by the Government; however, at this time GHS will proceed with standardized reporting.

App1.5

Reporting Instructions requires the contract to provide three data files (shipment information, delay information, and accounting information). Much of the information is redundant and inefficient to replicate. Can all of the information be consolidated into a single file such as shipment information?

No, it can not be broken into one file: a. if you add a line item for each delay or each accessorial then you end up with one file with A LOT of redundant fields. b.

if you roll them up to an accessorial column, you loose your ability to drill into your record set and answer accessorial or delay questions about the data.

App 1.5 Reporting Instructions lists many new required fields compared to current IHAT reporting. In addition, many fields are not used.Can the number of required data fields be reduced?

If the field is not used in the contract then it is to be left blank; however, it needs to be in the file to make loading ALL contract uniform.

App 1.5 Reporting Instructions references “invoiced” activity in Item #1, yet references “shipped” in Item #15. Which one is correct? Invoiced, Appendix 1.5 has been updated

App 1.5 Reporting Instructions contains no sub carrier field. All previous government reporting required this field. Is it no longer required?

The CRAF carrier will ultimately be held responsible for reporting, service failures, etc. Therefore, there is no value added in providing sub carrier para 1.5 How will the recovery rate be calculated? Is it based on the monthly shipment information file, or what was paid?

Recovery rate methodology has been addressed in the industry day slide presentation and will be included in the GHS PWS. The Recovery Rate equals 2.3% of total revenues received during the period. The dollar value of a sale is the price billed/invoiced to each customer for products and services requested under this contract, and the revenue is the money received by the contractor for payment of those services.

Would USTRANSCOM consider providing a spreadsheet to be uploaded into GFM, as was provided for IHAT?

The carriers will be able to download a pricing spreadsheet once the solicitation is released in GFM.

App 1.7 Will the SDDC IT team be willing to have open conversations to gain a clearer understanding of expectations on certain line items in the IT/technical assessment (Appendix 1.7) and to have open conversations regarding the complete Scope of Work? Yes

1.1.3 Please confirm applicable dimensional factor to be utilized. PWS references the pricing matrix which does not exist The carrier must select their international dimensional factor in GFM, either 139 or 166. Domestic will use 166 IAW MFTURP-1.

Is there an anticipated date when domestic service will be added to the contract? The Government anticipates adding domestic services in early 2020.

Will the rates be provided in a Not To Exceed (NTE) format as the previous IHAT had been? Yes, the rates will be Not to Exceed rates.

Will the IHAT, in its current form, simply be extended to January 31, 2019 to cover the gap until GHS begins?

The Government intends to extend the FY18 IHAT program through 31 March 2019. The current IHAT included the following in para 2 of the FY 18 IHAT Solicitation Cover Letter "The period of performance will be 01 October 2017 through 30 September 2018, unless extended or cancelled. The Government may require continued performance of any services within the limits and at the rates specified in the tender. The tender may be extended more than once, but the total extension of performance hereunder shall not exceed six months. The Contracting Officer may extend the tender by written notice to the Contractor within 15 calendar days prior to the expiration of the existing tender."

If the restricted lanes are not listed in the Attachment 2 Pricing Matrix how will that affect a GFM/ATR entry of a dynamic price offer

The restricted routes listed in Appendix 1.2 will not be priced under this contract.

If a Transportation Officer determines the channel route cannot meet their requirements IAW DTR Chapter 202, a spot bid can be used outside the GHS program.

The matrix does not show the old Theater Express lanes that includes movements within Theater (e.g. Bagram - Kandahar, Kuwait - Bagram etc.) Will these fall under GHS?

Yes, these shipments will be included in GHS. In cases where the Forward Operation Base (FOB) to FOB locations may not be listed, the shipment would receive the applicable country-country rate.

1.1 Are non DoD agencies (civilian agencies) authorized to ship under the GHS Contract? If they are, what are the plans to communicate the authorization to use to the civilian agencies?

The GHS PWS has been updated to reflect that Federal agencies are authorized to ship under GHS.

1.1 What is the timeframe for the incorporation of domestic heavy services into the GHS Contract The Government plans to include domestic services in early 2020.

1.1

Some countries don’t allow the commodities associated with SRC III and IV to be shipped to or from their country and some countries require that a special permit be obtained. Would USTRANSCOM consider not allowing SRC III and IV shipments under DHS or at a bare minimum, require the shipper to inform the carrier that SRCIII or IV items are in the shipment

Shippers will be required to vet their SRC III and IV cargo through J3, in turn the carriers will be notified the cargo is SRC III and IV and have the ability to excuse themselves from any shipment offer.

1.1 Please confirm that TSPs will be permitted to offer various service levels for INTLshipments

Only one service level will be priced under this contract for international shipments. The service we are requesting is deferred (D3) service, the same as what is provided today under IHAT.

1.1 Will TSP be held accountable for shipper requested RDDs that are outside of the transit times, for specific service levels, noted on the pricing matrix?

The carrier will enter their maximum transit time when proposing rates. When a shipper has a request with a specific RDD, if the carrier cannot meet that RDD they should not offer on that move. If an offer is made, it is assumed you can meet the shipper's RDD.

2.3

Does USTRANSCOM anticipate updating the language of this section based on industry feedback provided by NGDS contractors on April 10th and 11th? The responses from XYZ Company contained language indicating what we can and cannot acceptfor Foreign Entity Vetting (FEV). While the industry feedback was focused on the NGDS contract, our position with respect to application of FEV language to the GHSis consistent. We are a commercial contractor providing commercial services and should not have to implement new information or data systems to comply with reporting requirements. Contractors should be required to produce only that data which is collected in existing centralized corporate systems and consolidated during the ordinary course of business. The FEV language provided in the draft GHS PWS is expected to be updated before solicitation issuance. The FEV working group is working revised language.

2.5

As section 2.5 currently reads, it does not appear that carriers will be allowed to offer reduced rates at the time of live shipments like we currently are permitted to do under IHAT. Please advise if carriers will be allowed to submit Not-to-Exceed rates in our proposal (Attachment 2) and offer SPOT or On-Demand quotes at the time of a shipment request that are lower than the rates in the pricing matrix.

Yes, rates proposed will be Not-to-Exceed rates; however, carriers can offer a lower rate at time of shipment request.

2.6 Please further define who will be performing the inspections, what will be inspected, what the inspection will look like, how the results will be communicated and the parties that the inspection results will be communicated to.

If the shipper sees the carrier's vehicle or equipment is unsuitable to safely transport the cargo, the shipper can choose to turn away the contractor. Shippers may use DDForm 626 to complete the inspection. In addition, installation security may inspect all vehicles before they are allowed on the installation.

2.6 Will the carrier’s performance be based strictly on the RDD No, carriers performance will primarily be based upon items listed in PWS paragraph 4.0, Service Delivery Summary.

2.1

If the government is expecting refunds, does USTRANSCOM expect the service levels referenced in 1.1.3 and noted in Attachment 2 to be guaranteed service levels Guaranteed service will greatly escalate the government’s costs for guaranteed service vs. the current non-guaranteed service level currently offered in IHATWould the government considering allowing TSPs to offer both guaranteed and non-guaranteed service levels

Only one service level will be priced under this contract for international shipments. The service we are requesting is deferred (D3) service, the same as what is provided today under IHAT.

2.6 and 2.10 Both 2.6 and 2.10 reference the shipper’s RDD. Will the shippers be required to provide an RDD that is under or at the estimated transit times noted on the carriers pricing matrix, Attachment 2?

When the shipper places their requirement out for bid with their RDD and the carrier cannot meet the RDD, the carrier should not bid on that shipment.

Therefore, if the carrier is signing up to be held accountable to meet the RDD

2.16 Damaged / Lost shipment liability as per the Montreal Convention of 1999 (Sec. 2.16) Would USTC consider having the TSP’s T’s and C’s apply to damaged/lost shipments?

No, liability shall be limited to the lesser of the actual value of the cargo or the amount determined in accordance with the Montreal Convention of 1999, except when the shipper declares a higher value for carriage liability on the shipment documentation and pays a commensurate surcharge in accordance with the Attachment 2, Pricing Matrix, in which case the contractor's maximum liability shall be equal to the higher declared value.

2.21 The current IHAT Monthly Reporting is based on the delivery date. The GHS Monthly Reporting requirement calls for the reports to be based on the invoice date. Please change the GHS reporting requirement to mirror that of IHAT. GHS reporting will be based on invoice date.

2.21

Certain data elements are not available the centralized reporting portal that is readily available for reporting done in a Commercial environment. Adding additional elements would require contractors to implement new information systems which could prove to be costly. Please change the current reporting requirements in the GHS Contract Solicitation to mirror those of the IHAT contract.

The reporting elements across GHS, IHAT, and CAT A will mirror each other. If the field is not used in the contract then it is to be left blank; however, it needs to be in the file to make loading ALL contract data uniform.

5.1.1 Why is the recovery rate higher for the GHS Contract than it is for the NGDS Contract Shouldn’t the Recovery Rate be consistent across all contracts?

No. USTC/J8 determines the recovery rate annually. For FY 19 the rate is 2.3% .

The cost recovery rates are assessed on the total dollar amount obligated for all USTRANSCOM Activity Group External Customer contracts administered by TCAQ. These cost recovery rates shall be used to reimburse USTRANSCOM for the costs of all goods and services associated with developing, executing and administering customer contracts.

Atch 2 Can a carrier submit a rate for a lane after award that they didn't originally propose on?

The answer provided at industry days was "No". *However, the Government has decided it will consider allowing carriers to propose on lanes they weren't originally awarded at time of rate refresh.

Will CSS service be offered under GHS?

Do you mean Constant Surveillance Service (CIS)? If so, yes, carriers will be allowed to offer this as an accessorial. Constant Surveillance and Custody Service (CIS) and Escort/Couriers Service (ECR) will both be a Not-To-Exceed flat per shipment rate.

Under GHS, how many Subs is a CRAF carrier allowed to have per service? International /Domestic?

The number of subs a CRAF carrier can utilize to transport shipments is unlimited.

The Government is still considering if it will allow a CRAF carrier to name agent(s) under GHS whom would be able to negotiate with USTRANSCOM Acquisition.

XYZ Company is requesting we have the ability to use 2 SCAC's under GHS. We have a domestic SCAC for domestic Air Freight and a separate SCAC for IHAT. Please allow separate SCAC's under GHS if possible. Thanks for the follow up, we will definitely consider.

I believe in the GHS meeting it was stated the civilian government could use the GHS contract. How does USTC plan on communicating that approval of use to the civilian agencies?

In order to meet various agency shipping needs, the GHS contract will be made available to DOD and Federal agencies. However, GHS will not be pursued as a best in class preferred or mandatory Government-wide solution. DOD will not embark on a marketing or communication campaign to solicit federal-wide use of the GHS contract. GHS will be included on the acquisition hallway as an option for use for Federal agencies and mandatory use for DOD.

Will a carrier be able to add new services (lanes and/or accessorial services) not previously offered in the contract as is currently the case under the tender? In the GFM release supporting the IHAT project it states “a carrier cannot adjust their rates or services except to expand service to lanes or accessorial services not previously offered.”

The answer provided at industry days was "No". *However, the Government has decided they will consider allowing carriers to propose on lanes they weren't originally awarded at time of rate refresh.

Is the escalation percentage for year 2 and 3 each applied to the year 1? Or is the year 2 escalation applied to year 1 and the year 3 is applied to the year 2 escalated rates?

The escalation rate for "year 2" will be applied to rates for the Period of Performance (PoP) from 1 April 2019-30 Sept 2020. The escalation for "year 3" will be applied to rates from the PoP from 1 Oct 2020-30 Sept 2021.

The proposed Cyber Security language indicates that the requirements are not applicable to subcontractors. As such, will USTRANSCOM allow for the Cyber Security obligation contained in paragraphs 6.1 and 6.2 to apply only to the XYZ entity named on USTRANSCOM contracts--XYZ Co (XYZCo) in Timbuktu, IL. XYZCo is our airline and the XYZ entity and prime contractor providing services to USTRANSCOM under the CRAF contract. Because of the limited number of IT systems managed by XYZCo, they have been able to complete the NIST SP 800-171 assessments and provide USTRANSCOM with the results of their assessment as required under the CRAF contract. However, as a commercial contractor providing commercial services to the federal government we are not willing to extend the burdensome obligations contained in paragraphs 6.1 and 6.2 to other XYZ entities/subcontractors involved in providing services under the proposed contract. XYZ goes to great lengths and has made significant investments in securing and protecting our customer’s data and information and believes a commercially reasonable standard should be relied upon under the proposed GHS contract

The cyber security requirements contained in the GHS PWS pertain to the prime contractor only and does not pertain to other XYZ entities or subcontractors.

I was wondering when the updated (draft) pricing matrix will be released for the GHS solicitation? As you know, there are thousands of lines items for international shipments and we'd like to get somewhat of a head start on getting these reviewed and entered since we'll have a fairly short turn time to get our proposal submitted. Any info regarding this is greatly appreciated.

We anticipate releasing the solicitaion in June/July. Once the solicitation is posted, you will have two options for filing rates. You will be able to either 1) download a spreadsheet from GFM and upload to GFM once complete or 2) you can enter rates using the user interface in GFM. The pricing matrix will not be posted on FBO or sent from TCAQ. The pricing matrix will be very similar to the draft matrix that was privided via email and the current IHAT Pricing matrix.

Can you let me know if the attached pricing matrix is definitely the one we should prepare to use once we receive your update to be released in the near future?

We anticipate releasing the solicitaion in June/July. Once the solicitation is posted, you will have two options for filing rates. You will be able to either 1) download a spreadsheet from GFM and upload to GFM once complete or 2) you can enter rates using the user interface in GFM. The pricing matrix will not be posted on FBO or sent from TCAQ. The pricing matrix will be very similar to the draft matrix that was privided via email and the current IHAT Pricing matrix.

Sheet1