6__USC-9_PWS_Att_6_Inv_and_Pay_DRAFT.pdf

DRAFT

Universal Service Contract - 9 Exhibit 3, Performance Work Statement, Attachment 6

Invoicing and Payment

A. General Information

A.1 Invoices shall be submitted promptly within the timeframes described in this Attachment. Invoices shall be submitted only after services included on the invoice have been satisfactorily performed per FAR 32.905.

Descriptions of services rendered must match the terms used in the USC-9 contract. When carrier terminology differs from USC-9, the latter shall be used.

A.2 Charges for services performed for containers booked under the Direct-Booking process are to be billed directly to the Shipper and are not covered under this Attachment, with the exception of services not ordered within IBS which will continue to be submitted to SDDC for validation using the procedures in Section C of this attachment and forwarded by SDDC to the direct shipper for payment upon validation. These invoices will be prominently marked as “Direct Booked”. Direct Bookers require carriers to be Third Party Pay System (TPPS) capable. TPPS is an electronic freight transaction tracking and payment system. Current TPPS contact information will be provided to carriers following the award of the contract. Booking data will be made available within Syncada for carrier billing once the Lift on Board notification has been provided for the associated cargo.

A.3 Failure to provide required information and appropriate documentation for a specific container/piece of cargo shall result in a rejection of an invoice and may delay the payment process. Discrepancies in Contractor provided shipment information on submitted invoices will lead to certification delays as additional supporting documentation may be required from the Contractor.

A.4 There are five distinct invoicing categories for this contract as follows:

1) Invoices for Services Ordered within the SDDC Integrated Booking System (IBS)

2) Invoices for Services Not Ordered within the SDDC IBS system

3) Invoices for exception charges which require preapproval

4) Invoices associated with Requests for Equitable Adjustments (REA)

5) Invoices associated with Pass-through charges

A.5 The Government has the right to request additional information in support of the charges in the invoice. In addition, all charges for services not ordered in the Integrated Booking System (IBS) booking (and for the Enhanced ITV accessorial in the IBS Booking) will require COR review and certification via the SDDC Pipeline Asset Tool (PAT) tool and REA invoices will require review and approval by the Contracting Officer.

A.6 The provisions of cash management will not apply to this contract. A pay immediate payment term will be applied to all invoices processed in conjunction with this contract. Once a payable invoice is received by the government, entitlement action will be completed and funds will be disbursed to the contractor. The standard entitlement processing cycle for these invoices will include disbursement of funds to the carrier financial institution within two business days of payable transaction certification within the Transportation Financial Management System (TFMS). The provisions of prompt payment will apply to this contract and any invoice not paid within 30 days will incur interest penalty.

A.7 Contractors are authorized to bill for linehaul to POE, Ocean Transport, Liner In/Liner Out and BAF/CAF/FAF charges on vessel departure. Contractors are further authorized to bill all other charges including linehaul from POD and all accessorial charges on delivery of the goods. Delivery is defined as actual delivery -- for bookings to-port, discharge of goods to port; and for bookings to-door, actual delivery to consignee. Contractors are authorized to submit the delivery related billing in absence of an EDI X1 transaction if there is a Government-caused hold/delay which results in cargo not able to be delivered by carrier for more than 3 months beyond the Required Delivery Date.

A.8 Contractors are authorized to bill for all charges on vessel departure in declared Exigency Areas.

A.9 Invoices for IBS Booked Services will be created/submitted via the Treasury Invoice Processing Portal (T- IPP) using either the online purchase order flip capability. TFMS will pass purchase order data to Treasury IPP for use in the invoice creation process. . Invoices relating to linehaul to POE, Ocean Transport, Liner In/Liner Out and BAF/CAF/FAF charges should be based on receipt of an EDI Vessel Departure Notice (VD), whereas invoices relating to linehaul from POD and all accessorial charges (except Liner terms) should be based upon receipt of an EDI Delivery Notice (X1). Once invoice data is successfully uploaded to Treasury IPP, it will pass from Treasury IPP to TFMS for entitlement processing. TFMS will match obligation data from the booking, manifest data provided by GATES and invoice data provided from Treasury IPP and create a payable record. TFMS will also return invoice status data to Treasury IPP to include invoice payment notification.

A.10 G8 will monitor carrier billing of linehaul to POE, Ocean Transport, Liner In/Liner Out and BAF/CAF/FAF charges upon Vessel Departure, and linehaul from POD and all accessorial charges (except Liner terms) upon Goods Delivery. If carriers opt to bill the charges associated with Vessel Departure and Goods Delivery separately, the invoice associated with Vessel Departure charges must bear the words “FIRST” as the first part of the invoice number entry and the invoice associated with Goods Delivery charges must bear the word “FINAL” as the first part of the invoice number entry. If carriers choose to bill all charges upon Goods Delivery, no special invoice number convention will be required.

B. Invoicing Procedures for using Treasury IPP

B.1 The following procedures applicable to invoicing and payment for services ordered or modified thereafter within the SDDC Integrated Booking System (IBS).

B.2 All invoices for IBS booked charges shall be submitted electronically via upload to the Treasury Invoice Processing Portal (T-IPP). Invoices along with any required supporting documentation will be uploaded into this portal. Once invoices are successfully uploaded to the portal, they will be interfaced into the Transportation Financial Management System (TFMS) for entitlement process.

B.3 A Treasury IPP invoice will contain the following information:

Header:

– Contractor Name and Address(*)

– Invoice Date and Invoice Number

– Invoice Total Amount(*)

– Contract Number(*)

– TFMS PO Number (*) (Combination of contract number + Port Call File Number (PCFN) + PCFN fiscal year + sequence number) – no more than one (1) per invoice.

– Sail Date

– Miscellaneous Cost (used to convey any net negative value associated with BAF/CAF/FAF charge lines)

Line Item Detail:

– Line Item Description(*)

– Quantity

– Unit of Measure(*)

– Unit Price(*)

– Extended price of services performed(*)

– TFMS PO Line Number(*)

– TFMS PO Schedule Number(*)

– Transportation Control Number (TCN) (*)

– Care Rate ID(*) Note 1: Proof of delivery is required for any container or breakbulk shipment upon request Note 2: Items marked with (*) are provided within Treasury IPP and do not require carrier input

C. Invoicing Procedures for Breakbulk Shipments using Treasury-IPP

C1. The following procedures are applicable to invoicing and payment for breakbulk services ordered or modified thereafter within the SDDC Integrated Booking System (IBS). Carriers are required to use Treasury-IPP for breakbulk invoices. Breakbulk purchase orders consisting of more than 10 TCNs will be loaded into IPP with summarized quantities loaded for each charge type included in the booking. For these bookings only, hardcopy invoices will need to be attached to the invoice transaction within Treasury IPP to provide the required breakout of charges by TCN and charge type.

C2. A proper Breakbulk invoice contains the following information:

– Contractor Name and Address

– Invoice Date and Invoice Number

– Contract Number

– Military Voyage Document Number

– Defense Transportation Regulation (DTR) POE/P OD codes -- no more than one (1) per invoice

– Port Call File Number (PCFN) -- no more than one (1) per invoice

– Contractor Booking Number

– Contractor Bill of Lading Number

– Description, quantity, unit of measure, unit price, care rate ID and extended price of services performed. The invoice must provide sufficient detail so as to enable verification and certification by the US Government.

– Type of cargo

– Quantity (MTON, pieces, etc.)

– Delivery Date/Proof of Delivery

– IBS TCNs (listed in alphanumeric order)

– Services should be broken down by Contract Line Item (CLIN), i.e., drayage, line haul, ocean transportation, etc., and the specific service. Example: Drayage, Norfolk, Zone 2: Drayage, Norfolk to Newport News

– Name and address of Contractor official to whom payment is to be sent (must be the same as that in the contract or in a proper notice of assignment)

**Certification Statement signed by authorized contractor representative: “I hereby certify that the above bill is correct and just, and services were performed”.

D. Invoicing Procedures for Services Not Ordered within IBS

D.1 Procedures applicable to invoicing and payment for priced charges or Contracting Officer pre-approved charges that cannot be booked within IBS are provided below. All applicable EDI 315 transactions as outlined in Exhibit 3, PWS, and Attachment 1 are required for submission of these invoices. Failure to submit required EDI 315 transactions will result in an invoice rejection until EDI 315 requirements are performed accordingly.

D.2 All invoices for non-booked charges shall be submitted electronically via upload to PAT Invoice Processing Portal (IPP). Invoices containing such charges will be assigned to appropriate personnel within SDDC for validation/certification. Once these invoices are certified, they will be passed to the G8 accounts payable section for entitlement processing.

D.3 Invoices for the following charges are included in this category:

a. Carrier Holding Yard Storage (exigency areas only)

b. Container Detention

c. Container Purchase

d. Extra CVED/Vet Inspections

e. Driver Wait Time

f. Exigent Driver Wait Time

g. Futile Trip

h. Port Storage

i. Reefer Maintenance

j. Enhanced ITV*

k. Defense Base Act

l. Singapore container lease

m. Kuwait Landing Fees

n. High Risk Waters Armed Security

* Invoices for Enhanced ITV, although booked in IBS, must be submitted to IPP for validation by the applicable COR.

D.4 A proper invoice contains the following information

a. Contractor Name and Address

b. Invoice Date and Invoice Number

c. Contract Number

d. Invoice Type (e.g. container detention, port storage, etc.)

e. Taxpayer Identification Number

f. Port Call File Number

g. Contractor Booking Number

h. Dollar Amount of Invoice

i. Contract Iteration (e.g. USC-9)

j. Name and address of contractor official to whom payment is to be sent (must match the contract or a proper notice of assignment)

k. Any additional information as requested under the billing procedures

l. Exchange rate at the time cost was incurred/payment was made

m. **Certification Statement signed by authorized contractor representative: “I hereby certify that the above bill is correct and just, and services were performed”.

D.5 Kuwait Landing Fees

Contractor will submit Kuwait Landing Fee invoices via PAT/IPP as a “Pass-Through Charge”. Kuwait Landing Fee invoices must be submitted per vessel and will not be consolidated per month. Invoices with proper documentation should be submitted no later than 30 days from the date the charges occur or within 5 days of payment to the 3rd party. However, the US Government will consider and process invoices submitted after 30 days so long as they are properly supported and the claimed services can be verified.

Invoices for Kuwait Landing Fees shall include the following supporting documentation:

- Copy of the port invoice issued by the Kuwait Port Authority (KPA) indicating proof and date of incurred costs;

- Copy of applicable port tariff citing the applicable rate(s) for landing charges (aside from the invoice issued by the Kuwait Port);

- An excel spreadsheet for each vessel detailing Vessel Name, VOYDOC/VDN, POE, POD, Arrival Date, Lift Date, Weight and Metric Tonnage for all breakbulk cargo and the number of pieces for containerized cargo. This must include a breakdown of the different types of cargo i.e.

general cargo, light vehicles, heavy vehicles, etc. to cross check the information stated in the invoice issued by the KPA.

- Proof of payment by contractor to 3rd party

D.6 Defense Base Act

Invoices submitted for Defense Base Act Insurance will be submitted via PAT/IPP as a "Pass through Charge" and accompanied by a copy of the current insurance policy and proof of payment to the insurance underwriter. Invoices with proper documentation should be submitted no later than 30 days from the date charges occur or within 5 days of payment to the 3rd party. However, the US Government will consider and process invoices submitted after 30 days so long as they are properly supported and the claimed services can be verified. For contractors with subcontractors who purchase DBA insurance under this requirement, a copy of the subcontractor's payment to the insurance underwriter, copy of the subcontractor's invoice to the prime contractor seeking reimbursement and payment documentation of the prime contractor's reimbursement to the subcontractor shall be provided.

D.7 High Risk Waters Armed Security

Invoices for High Risk Waters Armed Security will be submitted via PAT/IPP. In addition to the invoice requirements listed in paragraph D.4, documentation must also include the vessel name and voyage number(s).

E. Exceptions

Unexpected charges are those anomalies that are not foreseen. Carriers must seek approval from the Contracting Officer before an invoice containing one of these charges can be submitted.

The following are examples of the types of charges that fall into this category:

a. Re-stenciling of containers

b. Rework (unstuffing & restuffing of improperly-stuffed containers)

c. Chassis Detention

d. Vessel Demurrage

F. Requests for Equitable Adjustment (REA)

Equitable adjustments are necessitated by unforeseen situations in which Contractor feels an equitable adjustment is payable to contractor. Invoices for equitable adjustments shall be submitted in PAT IPP with the literal value “REA” in the first three positions of the invoice number and approved by the Contracting Officer in TCAQ.

Approved/certified REA invoices will then be submitted by TCAQ to the G8 accounts payable branch for entitlement processing.

G. Pass Through Charges

G.1 The Contractor shall pay valid pass through charges incurred on behalf of the U.S. Government. Pass through charges shall not include any cost or charge that is included in priced services or is paid directly by the U.S.

Government or the consignee. The Government shall pay the Contractor on a cost reimbursement basis for valid direct pass-through charges, incurred by the Contractor on behalf of the U.S. Government, not included in priced services or covered by the Compensable Delays clause at Additional Clauses, section 6. The pass through charges shall be allowable, reasonable, and allocable, supported by an invoice, and subject to audit. The Government reserves the right to reject any pass through charge that is not allowable, reasonable, and allocable, or is not supported by a proper invoice. Pass through charges shall include only direct reimbursable pass through costs and shall exclude overhead, general and administrative expenses, and profit.

G.2 A proper invoice for pass through charges will follow the guidelines in Attachment 6, para D.4 above.

Contractor shall submit pass through charges with supporting documentation. Supporting documentation must include: notification email to the applicable COR when the additional cost/service was incurred, copy of third party invoice and basis for rate being charged (e.g. applicable port tariff) and proof of payment to third party. For re-working of containers due to rejection by port or rail authority, a copy of the inspection report identifying reasons for rejection must be provided. Invoices with proper documentation should be submitted no later than 30 days from the date charges occur or within five days of payment to the third party. However, the US Government will consider and process invoices submitted after 30 days so long as they are properly supported and the claimed services can be verified. Invoices for pass through charges shall be submitted in the PAT for COR approval. Approved/certified invoices will then be forwarded to the G8 Accounts Payable Branch for entitlement processing.

G.3 Examples of the type of additional charges that shall be paid include, but are not limited to those listed in D.3 above.

G.4 In accordance with Exhibit 3, PWS, Attachment 3, all rates shall include all costs for normal services from gate to gate. Costs or charges included in priced service shall not be invoiced as a pass-through charge.

H. Invoice Status Reporting

H.1 The Contractor shall utilize the SDDC Invoice Portal to obtain invoice status information including the following status categories:

• Invoice Received

• Invoice Returned

• Invoice Processed for Payment

• Invoice Paid

For returned invoices the portal will include both a date and an explanation of why the invoice was returned and for paid invoices the portal will include the date paid, disbursement voucher number and information explaining any applicable short payment of any charges appearing on the invoice.