0__Exhibit_3_PWS_USC9_DRAFT.pdf

DRAFT

Universal Service Contract – 9 Exhibit 3, Performance Work Statement

SECTION 1 Background 1.A. SDDC Role 1.B. Purpose SECTION 2 Scope 2.A. Overview 2.B. Rate Modifications SECTION 3 Performance and EDI 3.A. Performance Requirements 3.B. Performance Objectives 3.C. Performance Objective Assessment 3.D. Performance Rating 3.E. Quality Control, Reporting, and Records 3.F. Recurring Service Failure SECTION 4 General and Administrative 4.A. Use of English Language 4.B. Responsibility for Charges and Taxes 4.C. Customer Service Assistance 4.D. Electronic Systems Access 4.E. Electronic Commerce / Electronic Data Interchange (EDI) 4.F. Operational Reports 4.G. Indemnity SECTION 5 Scheduling and Booking 5.A. Space Commitment 5.B. Schedule Maintenance 5.C. Cutoff dates and Late Gates 5.D. Shipment Booking SECTION 6 Equipment 6.A. Container Standards 6.B. Reefer Equipment 6.C. Substitution of Equipment 6.D. Chassis Requirements (container only) 6.E. Container Pools 6.F. Government Furnished Containers (GFC) 6.G. Flatrack Containers 6.H. Bulk Liquid Containers SECTION 7 Transportation (Origin Services, Ocean, Destination Services) 7.A. Origin Services 7.B. Breakbulk and RORO Requirements 7.C. Containerization for the Convenience of the Contractor

7.D. Ocean Transportation 7.E. Cargo Clearance Service 7.F. Destination Services 7.G. Linehaul for Breakbulk and Out-of-Gauge (OOG) Cargo Booked on Flatrack SECTION 8 Accessorials 8.A. Expedited Delivery (EUCOM AOR) 8.B. Stop-off Service In Transit 8.C. Cargo Concealment (Tarping) 8.D. Super Cargo 8.E. Flatrack Tie-Down Equipment Surcharge 8.F. Chassis (From Port) 8.G. Washing and Rinsing 8.H. Cargo Handling and Transloading Services 8.I. Side-Load Chassis 8.J. Superload Accessorial 8.K. Veterinarian Inspectable Products (EUCOM only) 8.L. Dual Temperature Refrigerated Containers 8.M. Modified Atmosphere Containers 8.N. Controlled Atmosphere 8.O. Washing-Cleaning-Purging-Certification 8.P. Keep-from-Freezing (KFF) Service 8.Q. Redelivery of Keep from Freezing (KFF) Service 8.R. Guam Inspection Fee for Fruits/Vegetables 8.S. UAE Scanning 8.T. Overweight Surcharge 8.U. Extra Length 8.V. Daily ITV SECTION 9 Exceptions to Normal Service 9.A. Service Changes 9.B. Dry-Dock Initiated Service Change 9.C. Alternate Service 9.D. Canceled Shipments/No Shows 9.E. Container Detention 9.F. Reefer Maintenance 9.G. Container Leasing in Singapore 9.H. Free Time and Driver Wait Time 9.I. Rerouting of Cargo 9.J. Staging 9.K. Notice of Transfer of Cargo

9.L. Broken/Replacement of Seals 9.M. Damage to Contractor Equipment 9.N. Purchase of Containers 9.O. Port Storage 9.P. Futile Trip 9.Q. Vessel Demurrage 9.R. Reimbursement for Damage 9.S. Shipments of Privately Owned Vehicles (POVs) SECTION 10 Region Specific Requirements 10.A. Puerto Rico 10.B. Alaska 10.C. Hawaii SECTION 11 Security, Cyber Security and Force Protection 11.A. Cyber Security 11.B. Basic Security Information 11.C. Additional Security Requirements (Transportation Security) 11.D. Personnel Security Requirements 11.E. Foreign Entity Vetting 11.F. Facilities Clearance Level 11.G. Personnel and Facilities Clearance Validation 11.H. Common Access Card Eligibility and Issuing Procedures 11.I. Visits to USTRANSCOM/HQ SDDC Building 11.J. Additional Security Conditions

SECTION 1 BACKGROUND

1.A. SDDC Role

1.A.1. As the Army Service Component Command of the United States Transportation Command (USTRANSCOM), the Military Surface Deployment and Distribution Command (SDDC) provides worldwide common-use ocean terminal services and traffic management services to deploy, sustain, and redeploy the United States Armed Forces.

1.A.2. SDDC is responsible for surface transportation 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 of cargo to ports in the US and overseas and manages numerous ports throughout the world.

1.B. Purpose

The Universal Services Contract (USC) enables SDDC to fulfill its mission by providing international commercial ocean and intermodal distribution services in support of the Defense Transportation System (DTS). 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. USC is the primary contracting tool for moving DTS cargo when movement by ocean is required.

SECTION 2 SCOPE

2.A. Overview

2.A.1. This contract provides 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 use by DoD (e.g. Defense Logistics Agency’s Prime Vendor Program), Household Goods (HHG) and Privately Owned Vehicles (POVs) owned by DOD employees, and shipments by the armed forces of allied nations. In addition, this contract may be used for shipments by United States Federal 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 Exigency 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.2. This contract applies to both Unit Movement Cargo and Non-Unit Movement 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.B. Rate Modifications

2.B.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 not 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 in Exhibit 3, PWS, Attachment 10

4. Excepted Cargoes Container – see definitions Exhibit 3, PWS, Attachment 10

5. Increased Liability for Lost or Damaged Cargo, see Exhibit 2, Additional Clauses, paragraph 2.1.5.

2.B.2. These rates shall be solicited, either on a one-time-only (OTO) basis for a specific cargo movement or on an ongoing basis if projected frequency or volume is sufficient.

2.B.3. OTOs shall be competitively ordered in accordance with Exhibit 4. Ongoing rates are awarded through CARE with a process similar to that used during the annual rate refresh.

SECTION 3 PERFORMANCE AND EDI

3.A. Performance Requirements

3.A.1. The expectation of the United States Government (Government) is that all cargo booked under this contract shall successfully move in accordance with the terms of the contract. The Government strategy for assessing the Contractor’s performance under this contract focuses on two business lines: Unit Cargo and non-Unit Cargo.

Contractor performance will be measured by a Composite Score (CS), consisting of two scores: a Lane Score (LS) weighted at 90%, typically COCOM to COCOM, and a Worldwide Score (WS) weighted at 10%, with the following exception: If contractor’s volume on a particular lane is 20 or fewer measured TCNs during the 2-month measurement period, the CS will be equal to the WS. For the CENTCOM AOR, performance will be measured separately for PAKGLOC, NDN, and rest of CENTCOM.

3.A.2. The LS and WS are computed based on a 60 day rolling average. With exception to lanes with 20 or fewer measured TCNs, the LS is for all shipments across a lane (i.e. NORTHCOM to PACOM) for the 60 days being measured. For lanes with fewer than 20 TCNs during the 60 days being measured, the LS will be the same as the WS. The WS is calculated based on all cargo for a carrier for the 60 days being measured.

To evaluate the Contractor’s success in meeting minimum contract standards that support stated Performance Objectives, the Government will monitor and measure Contractor performance under this contract using the Performance Measures identified in Table 3.C

3.A.3. There may be more than one Performance Measure for a single Performance Objective.

3.B. Performance Objectives

3.B.1. Required Delivery Date (RDD)

3.B.1.1. The Contractor shall deliver all cargo by the Required Delivery Date (RDD) specified in the accepted booking. If the Contractor experiences delays during movement, the Contractor may submit documentation in D- RAP, in accordance with Attachment 1, to support invoicing. The OO will review and either approve, request further documentation, or deny. For delays not caused by the Contractor, the Contractor must still exercise due diligence to deliver cargo as soon as consignee is able to accept delivery. If the non-Contractor caused delay causes the Contractor to miss the RDD, the Contractor may request an RDD credit via the Carrier Performance Portal (CPP) after delivery but before the 8th calendar day of the month following delivery

3.B.1.2. When the Government directs staging (HG/HR), the RDD is extended by the number of days of staging or authorized delay.

3.B.1.3. The Contractor may counteroffer the RDD in the cargo offering with RDDs to allow for additional time based on Contractor capabilities or chosen mode for inland movement.

3.B.1.4. In order to provide realistic timelines and RDDs to the shippers, G3 will maintain RDD Guidance that is based on historical movement data and updated every 6 months. The guidance will be incorporated into IBS and distributed to Direct Bookers. Unit move cargo will be offered in accordance with JOPES timelines and RDDs.

3.B.1.5. If RDDs are scheduled on non-work days, such as holidays or weekends, and the RDD was missed, the Contractor shall be given an adjustment to the next business day when requested in CPP.

3.B.2. In-Transit Visibility (ITV)

3.B.2.1. The Contractor shall provide accurate and timely shipment status reports using the Electronic Data Interchange (EDI), or the Ocean Carrier Interface (OCI) as required by paragraph 4.E. There are nine required transactions for container shipments and eight for breakbulk.

3.B.2.1.1. Required transactions for containers: EE, W, I, AE, VD, VA, UV, OA, X1, RD or EC

3.B.2.1.2. Required transactions for breakbulk: W, I, AE, VD, VA, UV, OA, X1

3.B.2.2. Although required, RD or EC will not be measured with the other required EDI transactions. The Government recognizes that in some cases RD or EC submission may occur after shipment RDD and therefore, after the performance measurement window has passed.

3.B.2.3. The ITV performance objective is calculated based on a weighted score of EDI submission considered at 50% weight and submission timeliness considered at 50% weight. Each transaction will be independently measured.

For example, if the Contractor submits seven out of eight required breakbulk transactions and all seven are timely, the Contractor would receive 87.5% credit for ITV on that shipment (((7/8)*850%)+((7/8)*50%) = 87.5%).

3.B.2.4. The ITV measure is independent of the on-time delivery performance measure; although failure to submit an X1 transaction will be considered equivalent to a missed RDD, unless (for those locations where the AV transaction is permitted), a valid AV transaction is accepted by the COR to constitute RDD compliance. In all cases, including those for which a valid AV is accepted for RDD compliance purposes, the X1 transaction remains a mandatory EDI transaction to be submitted after actual physical delivery to the Government has occurred.

3.C. Performance Objective Assessment

Performance assessments will be prepared on a monthly basis by the close of business on the 15th business day of each calendar month. The cognizant CORs will coordinate with the Contractor to resolve all disputed performance assessment data prior to the posting of the Monthly Performance Assessment. The Government shall accomplish audits of Contractor submitted performance data to ensure accuracy. Data points for Performance Objectives 1 and 2 represent one container or piece of cargo as booked.

Table 3.C

Performance Objective Description Performance Measure

Average

Weight

Assessment

1 On-Time Delivery

Cargo shall be delivered no later than the Required Delivery Date as accepted in the booking.

x% 0.75 x* .75

2 In-transit Visibility

The Contractor shall provide to the Government an accurate 315 transaction set within 24 hours of the event.

y% 0.25 y * .25

Contractor Performance

Score

1.00 Total %

3.D. Performance Rating

3.D.1. The Government will use the Contractor Performance Score calculated as shown in Table 3.C as a factor in the best value booking process.

3.D.2. If a lane score falls below 0.75, Contractor may be put into Limited Use status in accordance with Paragraph 3.F for that lane. To facilitate that process, the Government will, as suggested in Table 3.D, assign a Contractor Rating to the Contractor’s Performance Score.

Table 3.D

Contractor Performance Score Rating

95% - 100% Exceptional

90% - 94% Good

80% - 89% Satisfactory

76% - 79% Marginal

75% and under Unsatisfactory

3.E. Quality Control, Reporting, and Records

3.E.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.E.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.E.3. The CORs shall monitor Contractor performance and compliance with the terms and the conditions of the contract using standard techniques such as inspections, 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.E.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.F. Recurring Service Failure

3.F.1. The Government may obtain services from alternate sources either inside or outside this contract to include activation of Government vessels. The actions by the 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.F.2. The Contractor may be put into limited use status by the Contracting Officer for service failures including, but not limited to, the following:

1. Performance scores falling below an acceptable rating for two consecutive monthly ratings.

2. Rejecting one or more bookings that are required under the mandatory space commitments or the exigency annex.

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

4. Lost/damaged/pilfered shipments exceeding 0.5% of all shipments during any three month period.

3.F.3. The Contractor will be notified via a letter issued from the Contracting Officer that the Contractor is in jeopardy of being put on limited use. The letter will outline, at a minimum, the reason the Contractor is being considered for limited use status, the proposed amount of time of the limited use status, and any other pertinent information.

3.F.4. The Contractor shall respond with a remedy to the issue. If the Contracting Officer determines the remedy is insufficient the Contractor will be notified in writing they are officially in limited use status.

3.F.5. Contractors in limited use status may only be offered bookings if no other contractor is available or if no other contractor has equal or higher flag service available.

SECTION 4 GENERAL AND ADMINISTRATIVE

4.A. 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. When supporting documents are required and such documents are not in English, the Contractor must provide an accompanying English translation.

4.B. Responsibility for Charges and Taxes

The Contractor shall pay all dues, charges, and taxes customarily levied on the vessel. The Contractor shall pay all taxes levied on the freight charges. The Government shall pay all dues, charges, duties, and taxes customarily levied on the cargo however the amount is assessed. In some cases, the Contractor shall be advised by the Contracting Officer to pay such fees, which will entitle the Contractor to be reimbursed by SDDC using procedures in Exhibit 3 PWS Attachment 6.

4.C. Customer Service Assistance

The Contractor shall submit a list of points of contact who can respond to 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 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.

4.D. Electronic Systems Access

4.D.1. The majority of business conducted under this contract requires the Contractor to access multiple applications within SDDC/TRANSCOM’s Electronic Transportation Acquisition (ETA) System, such as the Integrated Booking System, and Business Support & Container Management Module. DODI 8520.02 and DODI

8520.03 shall govern contractor’s access to these systems; unless or until these DOD Instructions are amended to allow otherwise, the contractor “shall use certificates issued by the DoD External Certification Authority (ECA) program or a DoD-approved PKI (Yubikey), when interacting with the DoD in unclassified domains.” Contractors shall use ECA when possible and may use a DoD-approved external PKI (Yubikey) when ECA is not an option.

Furthermore, contractors shall use multi-factor authentication as required by DODI 8520.03 which requires each user to have both a Government-provided user name and password as well as a non-PKI or PKI certificate/authenticator. Contractors must ensure compliance with system access standards as a requirement for doing business with the Government and shall implement an identity proofing/vetting process for ETA users in accordance with paragraphs 4.D.2 through 4.D.5 below. Any costs associated with meeting these access standards shall be borne by the contractor.

4.D.2. The contractor shall assign a US-citizen company official (acting as their Trusted Agent) to identify and authenticate all employees prior to receiving Yubikey credentials for ETA access. For the Yubikey options, the company official will assert the identity proofing has taken place and provide on company letterhead, a complete list of employees authenticated and authorized to receive PKI credentials. This assertion will be made to the Contracting Officer in accordance with format cited in Attachment 10 and updated letters provided if any information requires an update, employees leave the company, access is no longer required, or credentials are lost.

Additionally, if requested by the Contracting Officer, the contractor must provide a copy of all supporting the identity vetting/authentication documentation pertaining to an employee.

4.D.3. The company official must be able to recognize legitimate versions of identity documentation provided by the applicant in order to ensure only authorized personnel are granted ETA access.

4.D.4. The applicant must present two forms of Government-issued identification, at least one of which must be a proof of citizenship, in person, to the company official acting as the Trusted Agent. The following documents are examples of acceptable documents: Official Passport, Certified Birth Certificate issued by the city, county, state, or country in accordance with local laws, Naturalization Certificate, Certificate of Citizenship, FS-240 Consular Report, or DS-1350 Certification of Report of Birth. The authorized company official must exchange sufficient information to ensure the identity of the applicant is unambiguous and accurate.

4.D.5. All employees accessing ETA will successfully pass a commercial employment background check performed by the USC contractor or a 3rd party or successfully pass a local government performed check for employment purposes. If requested by the Contracting Officer, the contractor must provide a copy of the identification proofing documents used to perform the background checks of the employee.

4.E. Electronic Commerce / Electronic Data Interchange (EDI)

4.E.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.

4.E.2. The Contractor shall use the Defense Transportation Electronic Data Interchange (DTEDI) approved Implementation Convention (IC) 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 IC 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.

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

4.E.3.1. Contractor receiving order data, 300 (Delivery order, the booking, including increases and decreases)

4.E.3.2. Contractor ordering confirmation data, 301 (Confirmation of order, Contractor to Ordering Officer/COR)

4.E.3.3. Cancellation data from Ordering Officer, 303 (Ordering Officer Cancellation)

4.E.3.4. Shipping Instructions, 304

4.E.3.5. Contractor shipment status reporting data, 315

4.E.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. Attachment 1, Table 1 identifies specific events that require reporting. The Contractor shall submit all reports within 24 hours of accomplishment. Details regarding each type of EDI transaction can be found in Attachment 1.

4.F. Operational Reports

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

4.G. Indemnity

In accordance with the Anti-Deficiency Act the Government will not indemnify the contractor for services ordered under this contract, including but not limited to signing indemnity letters for the Super Cargo service as specified in 8.F.

SECTION 5 SCHEDULING AND BOOKING

5.A. Space Commitment

5.A.1. Provided the booking offer is made at least 5 business days prior to local cutoff, the Contractor must make available 10% of vessel capacity for the booking of Government cargo on each US flag vessel sailing from Contiguous United States (CONUS) on the designated routes listed below:

Outbound Routes Zones

1 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

5.A.2. This space commitment also applies to all routes (Inbound, Outbound, and Interport) covered by the Jones Act, and from the West Coast to Guam.

5.A.3. Other than as listed in the Exigency Annex, cargo in this category is the only cargo that must be accepted by the Contractor. This Space Commitment requirement does not require the Contractor to accept Hazardous Material bookings that the Contractor does not normally accept. Counteroffers to RDD are permitted, provided that the counteroffered date is no longer than fourteen (14) calendar days beyond the offered RDD. Carriers refusing such cargo may be placed into Limited Use status by the Contracting Officer in accordance with Paragraph 3.F.2.

5.B. Schedule Maintenance

5.B.1. The Contractor must provide, maintain, and update regular vessel schedules in 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 vessel schedule changes, the Contractor must update the changes in IBS.

5.B.2. Vessel schedule changes that occur prior to vessel cutoff date may result in cancellation of booked cargo at no cost to the Government.

5.C. Cutoff dates and Late Gates

5.C.1. Port Cutoffs

The Contractor shall provide port cutoffs in the IBS Vessel Schedule application and update IBS if changes occur.

5.C.2. Origin Cutoffs

The default local cutoff is the close of business 1 working day before the port cutoff 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.

5.C.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.

5.D. Shipment Booking

5.D.1. All cargo shall be booked to the Contractor at the discretion of Ordering Officers based on a best value analysis in accordance with Exhibit 4.

5.D.2. Booking Acceptance, Rejection and Counteroffers

5.D.2.1. Issuance of a booking number by the Contractor through EDI, OCI, Direct Booking, email, or facsimile communication to the Government constitutes acceptance of booking. The Contractor shall provide the services as identified in the accepted booking.

5.D.2.2. The parties may subsequently agree to amendments/changes prior to delivery, including rerouting of cargo as specified in paragraph 9.I. 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.

5.D.2.3. The Contractor shall accept bookings, up to a vessel’s space commitment in accordance with paragraph 5.A, if the booking is received no less than 5 business days prior to a local cutoff. Empty Government-owned, empty 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.

5.D.2.4. 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.

5.D.2.5. 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.

5.D.2.6. Contractor counteroffer shall include the Voyage Document Number (VOYDOC) obtained from IBS.

5.D.3. Automated Booking (This paragraph does not apply to Breakbulk Carriers)

Contractors shall implement an automated booking capability via EDI or OCI within 30 business days after award of contract. EDI transaction sets shall comply with standards identified in this contract. The 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.

5.D.4. Direct Booking Procedures

5.D.4.1. 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.

5.D.4.2. 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 paragraph 3.B.1.

SECTION 6 EQUIPMENT

6.A. 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.

6.B. Reefer Equipment

6.B.1. 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. If there is a difference in the temperature requested in the IBS booking and the temperature requested by the consignor, the Contractor shall seek clarification from the booking requester.

6.B.2. 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.

6.B.3. If the Contractor is notified that the container is not maintaining the proper temperature, as set forth above, the Contractor shall immediately notify the cognizant COR.

6.B.4. 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 160 days to provide consistent reporting and equipment supply. Contractor shall provide measurement data upon request from the Government or (if applicable) from Prime Vendor.

6.C. Substitution of Equipment

The Contractor may provide a suitable alternative to the equipment ordered in the booking, at no additional cost to the Government, with prior approval from the Ordering Officer and the shipper.

6.D. Chassis Requirements (container only)

Containers delivered to the Government, or to its designated representative, or spotted by the Contractor must be provided at no additional cost (except as provided in 8.F) on a Contractor-provided chassis that supports stuffing/unstuffing operations. The chassis must remain with the container while in the custody of the Government;

unless this requirement is waived by the cognizant OO. Blanket waivers for specific areas or destinations may be issued by the cognizant OO upon request.

6.E. Container Pools

6.E.1. When the shipper notifies SDDC of a need, the cognizant COR will submit written requests to the Contractors to establish and maintain container pools. At a minimum, requests will include: container pool location, container type, number of containers, and route on which the containers will be used.

6.E.2. The Contractor will maintain container pools at the agreed upon levels at no cost to the Government.

Expenses for operating container pools shall be borne by the Contractor to include establishing, managing and disestablishing pools, and providing a chassis for each container in the pool. A Contractor's inability to establish and/or maintain container pools may result in fewer bookings at that location.

6.E.3. 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.

6.E.4. Before the beginning of each Option Year, the cognizant COR will validate each existing container pool and submit written requests to the Contractors for container pools the Government chooses to maintain.

6.E.5. When a shipment is delivered to a consignee co-located with a container pool location, the Contractor must submit a RD transaction for the TCN representing the delivered container in accordance with Attachment 1.

6.F. Government Furnished Containers (GFC)

6.F.1. GFCs include 20’ and 40’ ISO dry cargo containers, reefer containers and flatracks that are 8.0’- 9.5’ high and 8’ wide. GFCs may be government-owned or leased containers.

6.F.2. Booking Offers will designate whether containers will be GFCs 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 at no additional cost.

6.F.3. 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.

6.F.4. 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.

6.F.5. 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.

6.F.6. When the Contractor provides any Accessorial services in connection with services provided to Government owned/leased containers, the appropriate Contractor rates contained in the Rate Guide shall apply.

6.F.7. Contractor has the right to refuse a GFC for shipment (unless booked as breakbulk) if it is not properly numbered (neutralized), or that does not comply with ISO, IMO and CSC Standards.

6.G. Flatrack Containers

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.

6.H. Bulk Liquid Containers

6.H.1. The Government may furnish 20’ tank containers for shipment of bulk liquids by the Contractor.

6.H.2. When a 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 by the Tank Container rate in accordance with the Rate Guide. The Contractor shall be compensated for ocean transportation, and for linehaul or drayage if ordered, at the applicable dry container rate.

SECTION 7 TRANSPORTATION (ORIGIN SERVICES, OCEAN, DESTINATION SERVICES)

7.A. Origin Services

7.A.1. Maximum Use of Conveyance

All linehaul movements by truck must maximize use of the truck with USC-9 cargo. Only when all USC-9 cargo has been accommodated, may a truck be loaded with other cargo adjacent to (but not on top of or inside) USC-9 cargo.

7.A.2. Providing Empty Containers to Shippers

7.A.2.1. Spot Date

7.A.2.1.1. At least 2 business days 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.

Failure to provide such notification and/or failure to spot containers or pick up cargo in a timely manner to meet booked vessel may result in a booking cancellation at no cost to the Government.

7.A.2.1.2. Container detention at origin does not apply, except in the case of a Government-approved compensable delay.

7.A.2.2. Drop and Pick Service

7.A.2.2.1. The Contractor shall spot the requested equipment at the location on or before the date and time specified in the booking.

7.A.2.2.2. When requested by the Ordering Officer, the Contractor shall provide drop and pick service and shall be compensated $300 per container.

7.A.2.2.3. Drop and pick service rates will not apply:

1. At OCONUS locations

2. In CONUS, where Contractors have established container pools

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

7.A.2.2.4. 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 Government.

7.A.2.3. Live load

7.A.2.3.1. The Contractor shall provide live load service at origin as follows:

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

2. All other locations when requested by the Government

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

7.A.2.3.2. The Contractor and the shipper shall set a live load appointment (date and time and specific location).

7.A.2.3.3. In the event the Contractor arrives 30 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.

7.A.2.3.4. The shipper may cancel the appointment and reschedule for a different day. If the shipper provides notification at least two business days in advance of the appointment, the Contractor will reschedule at no additional cost to the Government.

7.A.2.3.5. Driver wait times will be paid in accordance with paragraph 9.H.7.

7.A.2.3.6. At the request of the Ordering Officer, the Contractor may pick up empty 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 8.B. 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.

7.A.2.4. Carrier Appointment System (CAS)

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

7.A.2.5. Hazardous Cargo

7.A.2.5.1. The Government shall provide accurate and timely hazardous cargo documentation in accordance with applicable laws and regulations.

7.A.2.5.2. 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 or contractor’s policy.

7.A.2.5.3. For bookings from door involving Hazardous Cargo, Contractor may, at its discretion, not schedule a pickup of Hazardous cargo from origin if it has not received Hazardous Declarations (HAZDECs) or if HAZDECs do not conform to Contractor’s policies or procedures. However, once pickup from Door has occurred, Contractor is permitted to halt further transport only in accordance with 7.A.2.5.2 or at Government direction, but not due to Contractor’s internal policies or procedures.

7.A.3. Scheduling Pick-up

7.A.3.1. For door origin cargo, the Contractor shall pick up cargo/stuffed containers to meet the booked vessel when the shipper notifies the Contractor it is ready for pick-up. The Contractor shall coordinate pick-up dates/times directly with shipper.

7.B. Breakbulk and RORO Requirements

7.B.1. Cargo Berth

The Contractor shall load and discharge cargo at a dock, wharf, place or open roadstead designated by the Contractor, except as provided hereinafter.

7.B.2. Shifting Berths

7.B.2.1. Shifting of Berths, Meeting Minimum Tonnage

7.B.2.1.1. At the request of the Ordering Officer, the Contractor shall call at, or shift the vessel to any particular dock, wharf, place, or open roadstead at which the vessel can lie always safely afloat at any time of tide or at which the judgment of the vessel master may lie safely aground, and to and from which the vessel may safely proceed.

7.B.2.1.2. The vessel shift request applies for cargo loaded or discharged within a vessel’s port of call or other port located in the same port group as listed at Attachment 3, paragraph 1.1.2.1.5.2, if booked under Free-In or Free out terms.

7.B.2.1.3. Aggregate of Free-In and/or Free-Out cargo shall meet minimum tonnage of 1,000 MTONs for shifting.

7.B.2.1.4. Contractor shall assess no additional costs to the Government.

7.B.2.2. Shifting of Berths, Not Meeting Minimum Tonnage

7.B.2.2.1. At the request of the Ordering Officer, the Contractor shall shift the vessel to a particular dock, wharf, place, or open roadstead.

7.B.2.2.2. The vessel shift request applies for cargo loaded or discharged within a vessel’s port of call if booked under Free-In or Free-Out terms yet does not meet minimum tonnage.

7.B.2.2.3. The Government will reimburse the Contractor for costs incurred in accordance with PWS Attachment 6.

7.B.2.3. Demurrage If Shift is Requested

If the Government directs the Contractor to an encumbered berth, or Government-provided stevedores are not available upon the vessel's scheduled arrival, resulting in a vessel delay, demurrage is payable on a pro rata basis at the demurrage rate established in CARE until the berth or stevedores are available.

7.B.3. Free Terms (Free-In or Free-Out)

7.B.3.1. Stowage Preplans/Plans: The Contractor shall communicate the stow locations they will provide for Free-In Cargo to the Government a minimum of 7 calendar days prior to vessel load. The Government will develop a pre-stow plan and provide it to the Contractor for coordination 72 hours before vessel load begins. The Contractor shall communicate any changes they require to the pre-stow plan within 24 hours of receiving the pre-stow plan from the Government. During this process, the Government and the Contractor will also discuss dunnage and lashing requirements as well as other operational concerns of loading.

7.B.3.2. Stowing of Free-Term Cargo

When cargo is booked as Free-In or Free-Out, the Government shall bring the cargo into the holds, stow it and trim it, tally it, lash it and secure it (Free-In), and take it from the holds and discharge it (Free-Out) with customary dispatch, free of any risk, liability, and expense whatsoever to the Contractor. However, nothing herein shall be construed as an expressed or implied indemnification of the Contractor for any claims arising out of injuries to stevedoring personnel or other personnel involved in cargo operations resulting from negligence of the vessel operator or due to unseaworthiness of the vessel.

7.B.3.3. Dunnage

The Government will provide and lay all dunnage material as required for the proper stowage and protection of Free In cargo on the vessel. The Government will be responsible for and pay the cost of removing their dunnage after discharge of cargo.

7.B.3.4. Loading, Stowing, Trimming, Securing Supervision

Cargo loaded, stowed, trimmed and secured by the Government shall be under the supervision and to the satisfaction of the Contractor or its representative, typically the vessel master.

7.B.3.5. Acceptable Cargo Space

7.B.3.5.1. The Contractor shall provide acceptable space for the cargo, other than cases where the Government is at fault. The Contractor shall bear all expense of providing acceptable space. The Government may reject space provided by the Contractor if the Government determines that the space provided is not acceptable. The Government may offer to properly prepare, clean, ready, and provide normal access to the space. If the Contractor accepts the Government’s offer to make the space acceptable, the Contractor shall bear the expense of such work performed by the Government. If Government cargo is not readily accessible and other cargo must first be handled in order to access Government cargo, the Contractor shall make Government cargo accessible at no cost to the Government.

7.B.3.5.2. When the Government performs work per paragraph 7.B.3.1.4.1, the Contractor (or its designated representative) shall acknowledge the work was done at the contractor’s expense by signing the SDDC Form 290.

The SDDC Form 290 is a record for the Contractor to reimburse the Government for any expenses that result from the Government performing work to access acceptable cargo space, including any Overtime Differential and Guaranteed Time accrued.

7.B.3.5.3. If otherwise acceptable cargo space is not sufficient because the Government failed to accurately communicate, describe, or specify the cargo to be loaded, then the Contractor shall not bear the burden of making additional space acceptable. The Government shall bear the expense to properly prepare, clean, ready, and provide normal access to the space.

7.B.3.6. Contractor Caused Longshoreman Labor Delay

The Contractor is responsible for costs associated with the following: longshoremen standby due to delay in vessel arrival; longshoremen standby due to vessel inactivity (e.g. door not open, shipboard crane breaks down, ramp not down, or other vessel caused delay); and longshoremen standby to shift Other Ports Cargo (OPC). The Contractor (or his designated representative) shall acknowledge the labor delay caused by signing the SDDC Form 290. The SDDC Form 290 is a record for the Contractor to reimburse the Government for any expenses that result from labor delay due to fault of the Contractor or its vessel, including any Overtime Differential and Guaranteed Time accrued.

7.B.3.7. Work Performed Outside Normal Business Hours

7.B.3.7.1. Government-managed terminals operate Monday thru Friday, 0800 to 1700 hours local time (normal business hours). If the Contractor calls a Government-managed terminal outside normal business hours and insists on working the vessel during such non-normal business hours, the Contractor shall be responsible for any longshoremen overtime differentials, and longshoremen minimum time associated with working that vessel. The Contractor shall be responsible for compensating the Government overtime paid for weekend work and late night starts, to work non-normal business hours operations. Weekend work is any work performed on Saturday, Sunday, or Holidays. Late night start is work started Monday through Friday after 1900 local time. The Contractor (or his designated representative) shall acknowledge the work was done outside normal business hours by signing the SDDC Form 290 and SDDC Form 294, as applicable. The SDDC Form 290 is a record for the Contractor to reimburse the Government for any expenses that result from longshoring work performed outside normal business hours, including any Overtime Differential and Guaranteed Time accrued. The SDDC Form 294 is a record for the Contractor to reimburse the Government for any expenses that result from overtime work performed on weekends or late night starts. The Contractor shall be exempt for the costs listed in this subparagraph for no more than 4 port calls per performance period.

7.B.3.7.2. If the Government requests a port call outside normal business hours (i.e. not part of the Contractor’s normal liner schedule), the Contractor is not responsible for compensation described in paragraph 7.B.3.1.6.1

7.B.3.7.3. The contractor shall limit regular liner schedules that call Government-managed terminals to normal business hours as listed in the Transportation Facilities Guide.

7.B.3.8. Use of Cargo Handling Gear

The Contractor shall, throughout the duration of loading and discharging operations, give the Government free use of the vessel’s cargo handling gear and free use of sufficient motive power to operate all such cargo handling gear.

7.B.3.9.