16_USC-9_Exhibit_4_Ordering_ProceduresDRAFT.pdf

DRAFT

Universal Service Contract - 9 Exhibit 4

ORDERING PROCEDURES

CONTRACTOR SELECTION

“FAIR OPPORTUNITY PROCESS”

1. Fair Opportunity to Compete

1.1. Fair Opportunity to Compete for Task Order (booking) Awards: Under the USC-9 multiple award contracts, fair opportunity for booking awards is provided through a “best value” booking process detailed below. Only appointed Ordering Officers are authorized to book orders. The ordering officers are responsible for evaluating shipment requirements and for making independent best value booking decisions.

1.2. Ordering: IAW FAR 16.505, Ordering, all multiple award contractors shall be provided a fair opportunity to be considered for each order in excess of $3,000 pursuant to the procedures established in this section, unless the Contracting Officer (or Ordering Officer) determines that:

a. The agency’s need for the services or supplies is of such urgency that providing such opportunity to all such contractors would result in unacceptable delays.

b. Only one such contractor is capable of providing the services or supplies at the level of quality required because the services or supplies ordered are unique or highly specialized.

c. The task/delivery order should be issued on a sole source basis in the interest of economy or efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity pursuant to the procedures in this clause to be considered for the original order.

d. It is necessary to place an order to satisfy a minimum guarantee.

1.3. All bookings will be awarded in accordance with the Cargo Preference Act of 1904, with a priority given to contractors enrolled in Voluntary Intermodal Sealift Agreement (VISA).

2. Ordering Process for Cargo Bookings:

2.1. USC-9 allows for cargo bookings based on a “best value” concept.

2.2. The best value analysis will consider the following factors and sub-factors:

a. Technical—the Ordering Officer first evaluates potential contractors on a pass/fail basis to determine which contractors can meet the following technical requirements for the shipment or group of shipments that the Ordering Officer requires to move together:

(1) Can meet or exceed RDD based on contractor submitted vessel schedules in IBS.

(2) Has awarded rates for all required services and accessorials

(3) Has required equipment and vessel type

(4) Meets international, national, local and DoD statutory and regulatory requirements for the commodity, hazard and security classification, category or threat

b. U.S. Flag and VISA Priorities – Contractors offering a higher U.S. Flag priority and (if equal U.S. Flag priorities) are a VISA participant will be given priority. The order of service priority is U.S. Flag service (P1), combination of U.S. Flag and foreign flag service (P2), and foreign flag service (P3).

c. U.S. Domestic Shipyard Preference (applicable to Jones Act Trade only) - Contractors will be evaluated based upon the highest U.S. Domestic Shipyard Preference as determined by the evaluation of U.S. shipyard repairs below:

(1) Offerors will be evaluated as “1” (highest) or “2” (lowest) based on the formula below:

(Repair Money Spent in US/Total Repair Money Spent) + (Days of Repair in US/Total Days of Repair)/2 = Preference Category “1” or “2.”

(i) All calculations are based on total number of ships owned by the carrier – whether used on this contract or not.

(ii) Calculation will NOT include any days or money falling under the exceptions listed at

PGI 247.573(b)(2)(iii)(C)(1) and (2) – this means excluding the amount from the “total” as well as from the “in US” numbers.

(iii) The calculation will be rounded to the nearest tenth (i.e. – 38.7%)

(2) The following will be the criteria followed in determining carrier evaluation under the Jones Act:

(i) 15% or more of vessels serviced within US Shipyards would receive a preference of “1” and 14.9% and below would receive a preference of “2.”

d. Best Value Determination – if two or more contractors meet above criteria (a) (b) and (c) (as applicable), bookings shall be awarded based on the best (lowest) Best Value Number (BVN). BVN is calculated as the numerical value of the total dollar cost of the task order (to include accessorials) divided by the Composite Score.

The Composite score (except for certain low volume lanes as described in Exhibit 3, PWS, Section 3) consists of two scores: a Lane Score (LS) weighted at 90%, typically COCOM to COCOM, and a Worldwide Score (WS) weighted at 10%. The score is a number ranging from 0 to 1; for example, it would be 0.84 (=84%) if carrier’s worldwide score were 75%, and score on the lane in question were 85%. (.9*.85) + (.1*.75) = .84

e. The Ordering Officer reserves the right to book orders to other than the lowest BVN carrier.

3. Ordering Process for Cargo Bookings Incorporating Readiness Evaluation Factors:

3.1. Enclosure E5.3 of Department of Defense Instruction (DoDI) 4500.57, Transportation and Traffic Management (March 18, 2008) states: "The Department of Defense relies on the private sector for transport of a significant portion of its wartime and peacetime cargo. The relationship between the Department and the private sector is critical to mobilization, deployment, and sustainment of military forces. The goal of VISA is to provide assured access to the U.S. flag ocean transportation industry through the contractual pledges by carriers of their vessels and intermodal systems capacities, in return for priority for DoD peacetime business."

3.2. In accordance with DoD Directive 5158.4, the Commander, U.S. Transportation Command (USTRANSCOM) is responsible for sealift and airlift readiness and assigned the mission to "Provide effective and efficient air, land and sea transportation for the Department of Defense (DoD), in times of peace and war”. In support of the assigned readiness requirement, USTRANSCOM, may include an additional strategic readiness evaluation factor on individual task orders. The strategic readiness evaluation factor will evaluate the capability a carrier brings in support of the USTRANSCOM readiness mission to provide commercial sea transportation and terminal capability to support the global deployment, employment, sustainment, and redeployment of U.S. forces pursuant to the Unified Command Plan.

3.3. Cargo bookings which include a readiness evaluation factor will not be booked in accordance with Exhibit 4, Section 2. A Best Value determination will be made based on the criteria identified at the time the readiness evaluation factor is incorporated.

4. Ordering Process for One-Time-Only Task Order/Bookings:

4.1. If no one contractor has all required rates or meets the technical requirements listed in para 2.2(a) to receive a task order (booking), a one-time-only rate shall be solicited via a Request for Quote (RFQ). The RFQ shall be sent to all contractors for quote. Contractors shall return the RFQ by the closing date specified in the RFQ. Failure to provide all required information will result in a contractor’s proposal to be invalid. Contractor shall furnish a vessel sharing agreement or equivalent document, if the quote includes a vessel owned/operated by another USC-9 contractor. Failure to provide information with the quote may cause the quote to be invalid.

4.2. One-Time-Only Task Orders, at a minimum, are based on the following criteria:

a. Technical:

• RDD

• Has required equipment and vessel type

• Vessel schedule feasibility

• Other requirements listed in the RFQ

• Meets international, national, local and DoD statutory and regulatory requirements for the commodity, hazard and security classification, category or threat

b. Flag of Service (P1, P2, P3)

c. VISA priority

d. Domestic Shipyard Preference (when applicable)

e. Best Value Number (BVN)

4.3 Upon notification of award, contractor shall submit a vessel schedule in IBS, and provide VOYDOC to Government along with signed award modification.

4.4 Upon award of the One-Time-Only Task Order/Booking, notification will be sent to all Contractors stating contractor received the Task Order, flag of service, and total awarded price.