Atch. 1_PWS_Okinawa_20-R-R006_Rv2.pdf

PERFORMANCE WORK STATEMENT

STEVEDORING AND RELATED TERMINAL SERVICES

PORT OF NAHA MILITARY PORT

OKINAWA, JAPAN

Stevedoring and Related Terminal Services (S&RTS)

Performance Work Statement

For

Military Operations Terminal

835TH

Transportation Battalion

1 April 2020

Stevedoring & Related Transportation Services Performance Work Statement

TABLE OF CONTENTS

Section Topic Page

1.0 Background & Scope 2

2.0 General Security Requirements 3

3.0 General Safety Requirements 5

4.0 General Contract Administration 10

5.0 Contractor General Requirements 24

6.0 Terminal Specific Requirements 38

Contract Performance Requirements Summary (PRS) Table 62 Productivity Table 54

Appendix A Regulations, Publications, & Forms 66 Appendix B Foreign Entity Vetting 70 Appendix C Glossary of Terms 71 Appendix D Payment Instructions 83 Appendix E List of Acronyms & Abbreviations 86 Appendix F Government Furnished Facility 88 Appendix G Government Furnished Materials 88

Section 1

1. BACKGROUND AND SCOPE

1.1 Background. Military Surface Deployment and Distribution Command (SDDC), headquartered at Scott AFB, IL is a major U.S. Army Command and a vital component of the U.S. Transportation Command. Since its establishment in 1965, SDDC has played a vital role in our nation’s defense by providing support to every war, major contingency, training exercise and humanitarian relief operation where our military forces have been deployed.

1.2 Scope. To provide Stevedoring and Related Terminal Services (S&RTS) in connection with the import and export of Defense Transportation System (DTS) sponsored cargo. This Performance Work Statement (PWS) will cover the full spectrum of handling surface moving cargo to include its receipt, disposition, warehousing, storage and processing cargo for simultaneous shipments via multiple surface modes of transportation as designated by the Contracting Officer (CO) or their appointed Contracting Officer’s Representative (COR) and Alternate Contracting Officer Representative (ACOR).

**Note: Subsequent references to the COR throughout the PWS will assume also the ACOR unless otherwise specified.

1.2.1 The Contractor shall provide all gear, equipment, materials, space, management and sufficient amounts of qualified labor to satisfy the full scope of stevedoring in this contract and make every effort to rectify shortfalls, for which the Government will compensate the Contractor by applicable commodity or man-hour rates as designated by the Schedule of Rates (SOR).

1.2.2 The Contractor shall obtain the required written approval from the Government for all work, services, or other terminal operations for which a task order (TO) number and ordering template will be issued. The Contractor will assume all expenses for any work performed outside of or without written authorization.

**Note: See Section 6 for additional specific geographic information and port specific requirements.

2. GENERAL SECURITY REQUIREMENTS

2.1 General security requirements of the Contractor are defined within this section.

Additional duties and requirements specific to the particular terminal(s) within the scope of this contact are further defined in Section 6.0 –Port - Terminal Specific Requirements (security).

2.2 The overall classification of work associated with this contract is UNCLASSIFIED.

Personnel assigned to this contract will not require access to Non-Secure Internet Protocol Router Network (NIPRNet) applications or UNCLASSIFIED government systems and are therefore not authorized to obtain a Common Access Card (CAC) or Alternative Smart Card Logon (ASCL) tokens.

2.3 Ground Rules and Constraints

2.3.1 Persons Excluded from the Premises. The Contractor shall not allow a person that has been banned by any authority from the premises to have access to terminal facilities, equipment, or other material related to terminal operations.

2.3.2 Persons with Restricted Duties. The Contractor shall not allow a person restricted by any authority from certain equipment or areas to operate that equipment or enter those areas.

2.3.3 Contractor personnel shall read and comply with applicable DOD security regulations, policies, and procedures for access to installations and facilities.

2.3.4 The Contractor is responsible for being aware of and complying with requirements associated with Installation Access Control. The Government is not liable for any costs associated with performance delays due solely to the Contractor’s failure to comply with the applicable Port, Facility or Installation Access Control processing requirements.

2.3.5 Upon termination or completion of this contract, the Contractor employee will surrender all Government supplies, materials, and equipment to the COR. In addition, the Contractor will turn in any security badges issued to the COR on the last day of the contract or upon any termination/reassignment of a contract employee.

2.3.6 Derogatory Information. If the Government notifies the Contractor that employment of any contractor employee is prejudicial to the interests or endangers the security of the United States of America, the Contractor shall remove and bar that person. This includes security deviations/incidents and credible derogatory information on contract members during the course of the contract period. The Contractor receiving award of this task order shall make any changes necessary in the appointment(s).

2.3.7 Operations Security (OPSEC): All information furnished to the Contractor is to be used FOR OFFICIAL USE ONLY (FOUO). The Contractor is required to be aware of OPSEC requirements from SDDC IAW SDDC Regulation 530-1 SDDC Operations Security (OPSEC) Program and other applicable regulations. Information determined as FOUO or included as part of the OPSEC Critical Information List (CIL) is not to be released to the public. The Contractors personnel shall protect privacy, sensitive information, and “FOUO” data for duration of the performance of this contract.

2.3.8 Persons employed by Army contractors will report threat-related incidents, behavioral indicators, and other matters of Counter-Intelligence (CI) interest specified in AR 381-12, Chapter 3, to the Facility Security Officer, the nearest military CI Office, the Federal Bureau of Investigation, or the Defense Security Service.

2.3.9 Foreign Entity Vetting. The Contractors shall submit a semi-annual report to the CO for each first tier foreign transportation service provider, operating as a separate legal entity, contracting directly with contractor or its commonly owned legal affiliate which has employees who may have physical contact with Government shipments in the ordinary course of contract performance. See appendix B for further instruction for this requirement. Compensation for services defined in this paragraph are included in the commodity rates established in the SOR.

2.3.10 Base access. The Contractors employees to include sub-contractors will comply with base access and control procedures, personnel that have not been cleared for entry to secured working area/s will be denied entry, and the Government shall not be liable for wages of such denied personnel.

2.3.11 Vehicle Identification. The Contractor shall obtain installation/port access clearance for any vehicles used in performance of this contract. The Contractor will submit a comprehensive list of vehicles required during the duration of this contract immediately upon award to the COR in order to obtain access clearance. The list shall identify vehicle type, license plate, and owner/ company name. Personally Owned Vehicles shall not be authorized entry unless identified as official vehicles critical to the success of the mission. When submission of a new vehicle is necessary, only substitutions are acceptable to maintain a reasonable number of cleared vehicles authorized entry.

2.3.12 Security Regulation & Compliance. The Contractor will be required to comply with all security regulations and directives as identified herein, and other security requirements located in this contract. The contractor shall not divulge any financial, planning, programming, or budgeting information without the express consent of the Government as outlined in Operational Security (OPSEC) and Information Security regulations.

2.3.13 Security Regulation Guidance.

Department of Defense (DOD):

2000.12 (DOD Antiterrorism (AT) Program)

2000.16 (DOD Antiterrorism (AT) Standards)

5200.01 Volumes 1-4, (DODM Information Security Program)

5200.02 (DODM Procedures for the DOD Personnel Security Program) 5200.08-R (DOD Physical Security Program) 5220.22-M (National Industrial Security Program)

8500.1 (DODI Cyber Security)

2.3.14 DOD regulations found at: http://www.dtic.mil/whs/directives/corres/pub1.html

2.4 Cyber Security. In accordance with DFAR 252.204-7012, "Safeguarding Covered Defense Information and Cyber Incident Reporting”, Contractor is required to provide adequate security on all Contractor information systems used to receive, transmit, or store covered defense information. The Contractor will detail their compliance measures in a system security plan (SSP), submitted to the COR prior to start of work. If a cyber incident occurs, within 72 hours of discovery the Contractor and/or subcontractor will report the incident to the following site:

http://dibnet.dod.mil.

3. GENERAL SAFETY REQUIREMENTS

3.1 General Safety Requirements of the Contractor are defined within this section. Additional duties and requirements specific to the particular terminal(s) within the scope of this contact are further defined in Section 6.0 –Port - Terminal Specific Requirements (safety).

3.2 Contractor shall comply with, enforced and monitor applicable host nation, international, local installation and SDDC Transportation Battalion safety and fire regulations. The COR will log any discrepancies within the defined quality performance process. The Contactor shall establish and maintain an effective and comprehensive safety program. The Contractor shall support the SDDC Emergency Disaster Plan. The Contractor shall acquire, maintain, and require the use of safety equipment, personal protective equipment (PPE) (29 CFR 1918.101-106) and devices necessary to protect employees on the installation, port, and the vessel.

3.2.1 The Government reserves the right to halt Contractor operations when the Operations Officer, COR, or other Government representative observes unsafe practices; where harm to life or damages to property are possible. The Contractors operations shall not resume until such time as the Contractor corrects and revises their methods of operation to COR satisfaction. The Government shall not compensate the Contractor for any standby time or detention time incurred by the safety violation and may hold the Contractor liable for any costs incurred by the Government, if operations are halted due to the Contractors unsafe practice or violation.

http://www.dtic.mil/whs/directives/corres/pub1.html http://dibnet.dod.mil/

3.2.2 The Government may conduct additional safety briefings when necessary, directed by the local Commander’s guidance, during which time the Contractors labor is placed on standby time.

The Government safety briefing will include information as prescribed in paragraph 3.7 and any other necessary terminal or Command related safety information. Compensation shall be set forth in Schedules 2 of the SOR.

3.3 The Contractor shall adhere to local authority, and DOD standards for a safe working load for cargo handling gear and equipment and ship’s gear. The Contractor shall ensure their employees wear hard hats at all times when working in “designated hard hat areas” the Contractor shall at minimum ensure employees wear hardhats in vessel hatches, wharves, terminal warehouses, and open storage areas when in and around military cargo.

3.4 The Contractor shall provide fresh labor at the beginning of each shift who shall have at least eight (8) hours of rest between shifts before starting another work. The unit commander, through the COR will conduct risk assessments and make the decision weather contracted labor may work beyond the requirement.

3.5 Emergency Response Plan. The Contractor shall provide a comprehensive safety and security “Emergency Response Plan (ERP)”. The plan will clearly outline procedures for emergency HAZMAT cleanup, or POL spills from military cargo shipments, or leaking Material Handling Equipment (MHE) (for example forklifts, tugs, and container top handlers) owned or leased by the Contractor, to include mitigating damage to property or the environment. When the Contractor does not have sufficient resources of his own, the Contractor shall immediately arrange for outside emergency response personnel who specialize in spill containment and clean

up. The Contractor shall pay for any such clean up resulting from the Contractor’s equipment or leaks caused by the Contractor by damage to military cargo shipments and must comply with hazardous spill procedures in the Emergency Response Plan. Services defined in this paragraph are included in the commodity rates established in schedule in the SOR.

3.5.1 The Contractor shall provide a qualified Contractor Environmental Compliance Officer (ECO) for HAZMAT handling who will assume command and control of the situation by securing the scene, providing incident command and control, evacuating personnel, stopping the release, containing spills, and decontaminating personnel. Request mutual aid from surrounding installations as required. Services defined in this paragraph are included in the commodity rates established in schedule in the SOR.

3.5.2 Military Cargo Shipments. Military cargo leaking POL or hazardous substances not caused by contractor’s damage, the Contractor shall not be responsible for the cost of cleanup.

However the Contractor shall attempt to contain the leak and clean up the spill. The Contractor shall report immediately to the COR and Port Emergency Response Officer for any leakage or spillage of hazardous substances on the ground or any leakage or spillage. The Contractor shall not move any cargo leaking or spilling POL or any hazardous substances, to which the Contractor shall be responsible for cleanup at their expense. The Government shall compensate the contractor for cleanup of spills at established extra labor, equipment rates and materials used in the process of the cleanup.

3.5.3 The Contractor shall follow the directives provided by the Port Emergency Response Officer who will be responsible for assuming command and control of the situation by securing the scene, providing incident command and control, evacuating personnel, stopping the release, containing spills and decontaminating personnel. Any clean-up efforts will be tracked by the Contractor and reported to the COR.

3.5.4 The Contractor shall comply with all applicable environmental laws and regulations pertaining to marine and port facilities to include but not limited to: A written Spill Contingency and Response Plan shall be submitted to the COR within ten (10) calendar days of contract award. At a minimum, this plan shall comply with all applicable directives of the environmental guidance and instructions per the United States Coast Guard (USCG). The Contractor’s Spill Contingency and Response Plan (SCRP) shall specifically describe how the Contractor will prevent and respond to spill incidents. In addition, an acceptable secondary containment plan must be submitted in writing as part of the Spill Contingency and Response Plan.

3.5.5 In the event of accidental or deliberate discharge and the Contractor fails to mitigate and report the environmental hazard or spill, the Contractor shall be held liable for all costs associated with the incident.

3.5.6 Secondary Containment for Hazardous Materials, Wastes and Petroleum, Oils and Lubricants (POL). At the contractor’s expense, the Contractor shall provide containment devices of various sizes if required for temporary and permanent storage facilities that retain POL substances, hazardous materials and hazardous wastes (i.e. - new and used – oils, fuels, lubricants, solvents, batteries, acids, paints, antifreeze, etc.).

3.5.6.1 The Contractor shall coordinate secondary containment units for all bulk POL storage tanks, fuel cans, barrels, bladders, etc. In addition, secondary containment units’ requirements apply to all tanks and/or containers from 5 to 55 gallons to include mobile tanker trucks used for refueling operations. All secondary containment structures shall be free from soil and sand accumulations.

3.5.6.2 In the event hazardous materials are required to be stored at the port where S&RTS contract services are being provided, the Contractor coordinate the use of storage cabinets with current inventory sheet and Material Safety Data Sheet (MSDS) provided to the Port Safety Officer.

3.6 Training for specialized operation of Government equipment. The Government will make available and the Contractor shall attend training (AR 600-55 section 6-5 a1, a, b, c, d, e, and f) for specialized Government vehicles and related processes and procedures to Contractor personnel. The Contractor shall coordinate with its personnel to attend the Government provided training so that sufficient pools of vehicle operators are available to operate Government vehicles within confines of the port (29 CFR 1917) as required. Specialized Government vehicles may include, but are not limited to, all classes of Trucks, Stryker vehicles, Heavy Equipment Transporters (HETS), Mine Resistant Ambush Protective (MRAP) vehicles and Armored Tracked vehicles. The Contractors Labor shall participate at the Contractors expense.

3.6.1 At times, the Government may have field service representatives or vendor training onsite for new vehicle modeled equipment. The Government shall identify and provide vehicle specific training requirements for the Contractor’s employees to attend. The COR will coordinate the training events with the Contractor to ensure maximum participation. The Contractors Labor shall participate at the Contractors expense.

3.6.2 The Contractor shall ensure that personnel operating Government Vehicles possess valid civilian driver’s licenses or permits as required for operating military vehicles on and off the port. Drivers of Commercial Motor Vehicles shall have a valid Commercial Driver’s License appropriate to the type of equipment being operated. If commercial motor vehicles are laden with Hazardous Materials (HAZMAT), to include Ammunitions, Arms and Explosives (AA&E), Driver’s licenses shall include a HAZMAT endorsement.

3.6.2.1 The Contractor shall not use AA&E laden MHE or vehicles during operator training at any time.

3.6.3 The Contractor will establish a remedial training program for drivers or operators who have had driver at-fault accidents or traffic violations, misused equipment, or otherwise demonstrated a need for additional training on military vehicles or equipment. The COR may identify individuals that need remedial training. The Contractor shall direct this training towards identifying and correcting individual weaknesses. The Contractor shall conduct remedial training at no cost to the Government.

3.6.4 The Contractor shall provide two (2) POCs with HAZMAT certification for oversight in handling hazardous cargo IAW CFR49 Part 172.704(d) for each operation and port location when handling HAZMAT cargo. The POC will ensure that their employees comply with

“DFARS 252.223-7002; SAFETY PRECAUTIONS FOR AMMUNITION AND EXPLOSIVES,

DOD 4145.26-M; DOD CONTRACTORS SAFETY MANUAL FOR AMMUNITION AND

EXPLOSIVES and DOD 6055.9-STD; DOD AMMUNITION AND EXPLOSIVES SAFETY STANDARDS in handling AA&E. The Contractors personnel shall meet the qualification for personnel who pack dangerous goods; load/unload Cargo Transport Units; handle dangerous goods in transport; load/unload dangerous goods into/from ships as specified in IMDGC Chapter 1.3; Training and 49CFR Part 172 Subpart H; Training.

3.6.4.1 The Contractor shall provide the COR with a list of names each day of those drivers assigned to handle specialized vehicles, HAZMAT, or ammunition laden cargo per operation. The list shall include a statement from the Contractor verifying that individuals performing these driving functions comply with AR 600-55. The Government reserves the right to stop Contractor personnel at any time to verify their qualifications against the approved list of personnel scheduled to perform these functions. Any personnel found non-compliant, the Contractor shall remove that operator from handling this cargo and the incident reported to the COR, who shall report the incident in the monthly performance report.

3.7 Safety Briefings. The Contractor shall, as part of the commodity operation, conduct and document safety briefings for all workers prior to all operations and at each shift change thereafter, and must brief new workers as any new labor is added. The Contractor will conduct safety briefings with the presence of a SDDC Government representative. The COR or SDDC Safety Officer may provide the Contractor with a checklist of safety and security topics to brief the Contractors labor prior to the start of vessel or terminal operations and may also participate in these briefings. Safety briefings conducted by the Contractor will relate to the type of operation (e.g. truck, vessel, rail, yard, crane, etc.), and, at minimum must meet, local authority and/or DOD regulatory guidance, or host nation requirements whichever is more stringent. Safety briefings shall be conducted in both English and, as applicable, in the Host Nation local language. Safety briefing should include the following basic information:

3.7.1 Overall General Safety Requirements

• Work tasks being performed

• Responsibilities – (who reports unsafe conditions and to whom)

• Injury and property damage reporting procedures

• Required PPE for personnel on the terminal

• Designated smoking areas

• Emergency procedures - phone numbers, evacuation routes/procedures, rally locations, accountability

• Location of emergency equipment - fire extinguishers, PFDs

• Weather/temperature conditions

• Communication - signals, flagman duties, radios, no cell phones etc.

• Walking/Tripping Hazards

• Pedestrian and traffic movement

• Gangway & Ramp Safety

• Person in water/man overboard - prevention, recovery and survival

3.7.2 Traffic Safety

• Driver distractions (no cell phones)

• Seat belts must be use

• Pier specific vehicle procedures - lights, keys, mirrors etc.

• Speed limits – pier side, staging yards, and on the vessel

• Parking locations

• Traffic Flow

• Use of ground guides when moving (ramp/backing/stow)

• Rail crossings (if applicable)

3.7.3 Task or Terminal-Specific (as applicable)

• Terminal and yard configurations, distinctive characteristics

• Safe equipment operation - MHE, vehicles (verify trained/certified/licensed)

• Safe explosives handling procedures - (verify trained/certified/licensed)

• Vessel safety (ramps guards, ramp traffic)

• Ladder Safety

• Use of fall protection

• Safe Lifting and lashing procedures

• Unusual loads

• Net Explosives Weight (NEW) Limits

• Evacuation distances and rally points

• Fire-Fighting Guidance

• First Aid (process/locations)

• Report any dropped containers/munitions

3.8 Operation of Contractor equipment. The Contractor must maintain and operate all Contractor equipment used during operations IAW applicable Host Nation, local authority, laws and regulations, DOD, Army, port, and terminal regulations, directives, instructions and pamphlets, whichever is more stringent. Damage to cargo or injury related to use of non-compliant equipment or improper use of equipment will result in immediate non-use of that Contractor equipment until the Contractor replaces the equipment or takes corrective action to repair equipment. The Contractor will replace any non-compliant equipment so that there will be no delay or hindrance to operations. The Contractor must notify the COR when the equipment is made compliant, and before it is used again.

3.9 Damage, Accident, and Loss Reporting

3.9.1 The Contractor shall immediately notify the COR of any incident and/or accident that results in damage to cargo or property, release of HAZMAT, injury, and/or death to any personnel during or arising from performance under this contract.

3.9.2 In all instances where a reportable accident (that meets the minimum criteria IAW AR 385-10 & DA PAM 385-40 for ground Class A–D accidents) or incident occurs, the Contractor shall submit a preliminary accident investigation report to the COR and SDDC Safety Officer within 24 Hours. A full accident investigation report identifying all root causes and corrective actions shall be provided to the COR and HQ SDDC Safety within 30 Days. The Contractor will also report all accidents or cargo damages that do not meet minimum criteria to the COR.

3.9.2.1 The Contractor shall submit documentation to the COR verifying the qualifications and task training for each employee involved in the incident/accident.

3.9.2.2 The Contractor shall submit all maintenance records for Contractor-supplied equipment involved in the incident/accident.

3.9.3 The Contractor shall assist the Government during any investigation of an accident or serious incident.

3.9.4 After an accident or serious incident occurs, the Contractor shall secure the accident location and preserve critical evidence. The Contractor shall also allow Government personnel access to the location, any evidence, and any contractor-employed witnesses to include operators involved in the accident. Operations will not resume until cleared by the COR, SDDC Safety Officer, and local authorities.

4. GENERAL CONTRACT ADMINISTRATION

4.1 General contract administration is defined within this section. Additional duties and requirements specific to the particular terminal(s) within the scope of this contract are further defined in Section 6.0 –Port - Terminal Specific Requirements (administration).

4.1.1 Port Licensing and Permits. The Prime Contractor or its named Subcontractor shall possess a valid and current Business License (BL) or work permit issued by the applicable Port Authorities for the Host Nation as evidence to work at all named ports within this PWS (see geographic info section 6.1) and must provide copies (prime and subcontractors) to the CO for record.

4.1.1.1 Subcontractor’s license or permits may substitute for prime Contractor's license that allows the Contractor or their subcontractors to operate at all ports listed in section 6.0 geographic information.

4.1.2 Union Agreements and Port Tariffs. The Contractor shall submit copies to the Government (when applicable) the current union rules, Collective Bargaining Agreements (CBA), and port tariffs. The Contractor shall also furnish up dated information about specific changes to union contracts or local work rules, CBA’s and port Tariffs that affect cargo operations IAW the performance of this PWS.

4.1.3 The Contractor shall provide a contract manager and at least two (2) alternates who shall be responsible for the performance of the work. The Contractor shall provide telephone numbers for the contract manager and alternates where these persons may be contacted during and after duty hours. The contract manager shall have, as a minimum, five years demonstrated experience in directing and managing port handling operations. His alternates shall have, as a minimum, three years demonstrated managerial experience in the port handling business. The contract manager and alternates must be able to read, write, speak, and understand English fluently.

4.1.4 The contract manager and alternates shall have full authority to act for the contractor on all matters pertaining to the performance of services under this contract.

4.1.5 During the performance of this contract, the Contractor may work simultaneous cargo handling operations, at multiple work sites, the Contractor shall have their contract manager/s or alternates present at each work site and accessible to the COR at all times. At any other time (i.e.

outside cargo operations) the contract manager or designated alternate shall be available to the COR by telephone.

4.1.6 The contract manager and their alternates shall meet as necessary with the COR appointed by the CO to discuss contract performance or other problem areas or issues. The

4.1.7 The Contractor shall not replace the contract manager and their alternates without notifying the Government.

4.2 Ordering Services. All stevedoring services performed will be ordered under Task Order (TO). The TO template will be issued to the Contractor and IAW the clause of this contract.

4.2.1 All services shall be identified by the COR and conveyed to an appointed Ordering Officer (OO). The OO will develop an initial commodity, man-hours, or miscellaneous cost estimate identifying all services agreed upon between the COR and the Contractor as soon as practicable and prior to the start date & time for each day S&RTS services ordered. The TO will incorporate terminal services and vessel work separately. Terminal services will be calculated by the documented week (“Doc-Week”, Sunday – Saturday). Vessel work will be per vessel and may include both upload and discharge. Any work performed without an issued TO will be at the expense of the Contractor.

4.2.1.1 Terminal Services are defined as all service performed not associated to a vessel, Example: (not exclusive list) loading trucks, stuffing containers, unloading trailers, warehouse work, HHG, POV stuffing, receiving cargo, and cargo prep.

4.2.2 During an operation, the COR may also verbally identify additional labor, services, or equipment needed to the Contractor when necessitated by the operation and issue a signed written request. The Contractor shall confirm with the OO all verbal orders in writing within 24 hours of completing the operation.

4.2.2.1 The Contractor shall after each operation reconcile all services ordered with the COR and review all supporting documentation (SDDC forms MT 288, 290, log book, tally sheets, and time sheets) are completed and signed (Digital or wet signature) by both the COR and Contractor.

The OO will finalize each TO with the COR, accounting for actual Contractor performance within 7 days. The OO will submit a final Amended TO too the Contractor for invoicing. The Contractor shall submit an invoice for payment to the COR for certification and submit the invoice for processing.

4.3 Out-of-Pocket (OOP) Expenses. OOP expenses involve the reimbursement of actual payments made by the Contractor to a third party vender or for supplier on behalf of the Government.

4.3.1 Expenses must be substantiated by the Contractor by submitting the paid vendor invoice or receipt to COR. OOP expenses will be ordered and reimbursed only for mission related services and materials identified on TO template.

4.3.2 OOP expenses do not include expenses inherent to performing stevedoring and related terminal services. OOP expenses are for the purpose of purchasing new supplies or non-durable goods. The Contractor shall obtain written approval from the CO or COR for each item requested. All such materials or supplies shall become Government property and the Contractor shall recover all serviceable materials and supplies from each operation for re-use in subsequent ordered operations when possible. The Contractor shall gain prior written approval before the purchase of additional materials from the CO for OOP expenses exceeding the threshold of $3,500 per individual item, additionally administrative fees (e.g.; delivery charges or taxes) are allowable OOP expenses and compensation shall be set forth in Schedules 8 of the SOR.

4.3.3 The Government may source materials or third party vendors to support mission readiness at its discretion, and may direct the Contractor to procure those materials or services.

4.3.4 Government owned is defined as either materials purchased by the Government for the Contractors use in support of this contract or materials purchased by the Contractor and approved as an OOP expense by the COR for Government use and for which Contractor has valid vendor receipts for reimbursement.

4.4 Training and Contingency Operations. The Government reserves the right to conduct training and contingency operations for Department of Defense (DOD) personnel during scheduled or contingency load or discharge of any vessel or related terminal operations. During these scheduled training or contingency events, the Government may utilize military personnel for loading and discharging the entire vessel, or to conduct routine terminal or port operations or any part of the operation thereof. Unless otherwise ordered (Section 4.2) the Contractor shall not receive compensation for cargo handling operations conducted by the DOD during these training or contingency operation events.

4.4.1 The COR will inform the Contractor when such training or contingency operations are scheduled or as soon as known, but No-Later-Than (NLT) 48 hours prior to the event. During these training or contingency special operations events, the Contractor shall provide, when ordered by the OO, sufficient qualified labor or equipment in support of the DOD operation to include but limited to shadow gangs, either in part or full. The Government shall compensate the Contractor for labor and equipment when requested by the COR and ordered by the OO, at man-hour and equipment rental rates established in the Schedule 2 and 4 of the SOR.

4.4.2 In addition the Government reserves the right to use skilled military drivers to operate, load, and discharge specialized, unique military vehicles and equipment at any time when determined by the COR. When military drivers are utilized the Contractor shall provide other designated support labor and equipment for all other stevedore related work (ie; lashing, unlashing, or towing cargo) associated to that military operated cargo. The Government shall compensate the Contractor at lashing or un-lashing rates as established in the SOR for only those pieces of cargo operated by military drivers. Commodity rates shall apply for all other cargo handled by the Contractor as established in the SOR.

4.5 Commodity Operations. Government cargo is defined into four general commodity categories: containers, vehicles, aircraft, and breakbulk. Each category can be further classified and priced as follows. Please refer to appendix C of the Glossary.

• Commodity 20 – Explosives and Hazardous commodities packed in pallets, creates, boxes (includes gases, or radioactive), shall be priced in MTON’s

• Commodity 25/45 - Containers 20’and 40’in length or multiple knuckled containers configured into Twenty Foot Units (TEU’s), shall be priced in each.

• Commodity 35 - Aircraft shall price in eaches

• Commodity 40 - Breakbulk items shall be priced in MTON’s

• Commodity 44 - Containers less than twenty foot in length shall be priced in eaches (i.e.

ISUs, Bicons, Tricons, Quadcons)

• Commodity 47 - Household Goods shall be priced in MTON’s (creates, boxes, pallets)

• Commodity 50 – Refrigerated, chill/freeze priced in MTON’s (creates, boxes, pallets)

• Commodity 60, 61, and 67 – Vehicles and trailers classified by weight, shall be priced in each (EA) or (by the piece)

4.5.1 Commodity Rates. Commodity rates are inclusive of all planning activities, labor, gear, equipment, documentation, and materials associated to handling the movement of US Government cargo. Labor for commodity rates are based on work performed during normal work day scheduled hours Monday through Friday.

4.5.2 Pricing. The Governments preferred method of pricing by the piece as Each (EA) or (by for containers, vehicles (based on weight class), and aircraft, and Measurement Ton (MTON) for breakbulk cargo.

4.5.3 Measurement Ton Calculations. The Government shall calculate MTON using cargo dimensional data, Length, Width, and Height divided by forty (40) cubic feet. Example;

Dimensional measurements of (L) 240in (W) 96in (H) 96in divided by 1728 then divided by 40 will equals 32 MTON’s. This would look like 240”times 96” times 96” equals 2,211,840 square inches divided by 1728” (square inches in cubic foot) divided by 40 Cubic foot, this would equal 32 MTON’s.

4.5.4 Exceptions to Commodity Rates. Whenever a particular type of cargo is handled for which no commodity rate has been established, it shall be handled using the Extra Labor (XL) and Equipment Rental Rates (EQR) rates established by the applicable SOR schedule. If the COR determines it’s necessary to establish additional commodity rates, the COR will advise the CO for a SOR modification for the remaining period of the contract.

4.6 TABLE 1— Cargo Handling (Commodity) Operations

**NOTE: The Government defines the following cargo handling operations into services, the table does not define each service as separate billable item(s). Example: Schedule 1A1 - Loading Vessel, loading cargo on a vessel will inherently include moving cargo from its place of rest (regardless of method) and stowing it aboard the vessel, this includes but not limited to driving, towing, or draying the cargo aboard the vessel, lashing, inspections, documentation, checking, tally, debris removal, housekeeping, and reconciling the operation with the COR.

Services Description

Loading The act of moving cargo from its final place of rest to a conveyance (vessel, truck, or rail)

Discharge The act of unloading cargo from a conveyance (vessel, truck, or railcar) to a designated final place of rest

Receipt The act of documenting cargo arriving into the port, by (truck, rail, vessel or convoy).

Disposition The act of documenting the onward movement of cargo from the port or terminal to its final destination.

Lashing and Un-lashing (only) The act of providing only lashing or unlashing (tie-down) of cargo aboard a vessel.

Stuffing The act of loading cargo inside a container, or onto flat-racks from its final place of rest

Unstuffing The act of unloading cargo from a container or flat-rack to its final place of rest

Stripping The act of discharging cargo from vessel owned assets (MAFI’s) to its final place of rest.

Cross Docking The act of transferring cargo directly from one incoming conveyance to another outgoing conveyance, with little stoppage of cargo moving onward to its final destination.

Transfer The act of moving cargo from its place of rest to another place of rest within the port or between local ports

Inland Transportation Land based conveyances, used for movement of cargo into or out of the port.

4.7 Minimum Time, Standby Time, and Detention.

4.7.1 Minimum time (also called guaranteed time) is defined as minimum work guaranteed by applicable union agreement. The Contractor shall notify the Government (if applicable) within 2 days of award on this contract any union agreed upon minimum work guarantee. The Government shall pay minimum time (hourly base rates per class of labor) to the Contractor when work fails to materialize. During a commodity operation the Contractor will receive in addition to the commodity rates for time actually worked after all commodity work is completed for which the contractor is required to pay their employees to comply with minimum work guarantees required if applicable. The Contractor shall be compensated for minimum time at established extra labor base rates in schedule 2 of the SOR.

4.7.1.1 The Government will not pay minimum time to the Contractor where local union agreements do not exist. In no case will the Government pay minimum time when labor is ordered; cargo or freight is available to work at the work site or vessel; but not worked due to Contractor’s inability to provide personnel or equipment.

4.7.1.2 The Government shall not pay minimum time separately to any class of labor working commodity in conjunction with other classes of labor until completion of commodity activity; or any part of a gang not required on a commodity activity. For example, unloading operation is inclusive of unlashing and unloading cargo to its designated place of rest or stow under one commodity rate. Lashers who finish unlashing are still on commodity time (i.e., not minimum or detention) until drivers complete unloading and staging to final point of rest or stow. During a load operation, after drivers complete the load, they remain on commodity rates until lashers have completed all lashing. While any portion of labor to include checkers working commodity, all are listed as commodity.

4.7.2 Stand-by (S/B) Time (also may be called “waiting time”) is defined as work stoppage, at the Government’s discretion, for causes beyond the control of the Government or the Contractor.

This includes but is not limited to breakdown of ships gear, inclement weather (see Glossary), unanticipated or non-arrival of the vessel, non-readiness of the vessel, non-arrival of cargo, non-arrival of other conveyances (truck or rail). In all such cases, the Contractor’s time will be captured by the COR on the SDDC form MT 288 as stand-by time (S/B). The COR will negate the cause and/or direct the Contractor to stand-by. The Contractor shall be compensated for stand-by time at established extra labor base rates in schedule 2 of the SOR.

4.7.3 Labor Detention is defined as time lost due to work stoppage, or interruption of work during commodity operation.

4.7.3.1 When detention occurs during a commodity operation, the Contractor shall absorb each detention period of fifteen minutes or less. The Government shall pay the Contractor at detention rates for labor, including checkers and equipment operators (drivers), for each detention in excess of fifteen minutes including the first fifteen minutes thereof. Unless approved by the COR, the Government shall not pay detention time for equipment.

4.7.3.2 Detention time is used to compensate the Contractor for work stoppage during commodity operations, causes includes but not limited to changes in vessel, truck or rail (if applicable to the AOR) operational plan (i.e. change to staging or stow plans). Should the Government change planned work, or have to halt commodity work or alter other plans during an operation, the COR will notify the Contractor, however the Contractor must first notify the Government representative monitoring the Contractors work site that work has stopped immediately and make an effort to continue working where work is available to include shifting labor. The Contractor may be directed by COR to shift their labor to another location to reduce detention time. Any lost time due to the Contractor fault is for the Contractor’s account, labor remains on Commodity.

4.7.3.3 All stand-by time, detention time, and extra labor, will be computed to the nearest 5 minute multiple, and payable to the Contractor during commodity work being performed. Stand-by time and Extra Labor (XL) base rates specified schedule 2 and detention rates in schedule 3A of the SOR apply.

4.7.3.4 The Government shall not compensate the Contractor for detention for any class of labor not required for commodity operations or when certain classes of labor on commodity operations are dependent on other classes of labor is performing a commodity operation. For example, commodity vessel load is inclusive of loading and lashing cargo. Drivers and lashers conducting loading and lashing are inclusive of each other under one commodity rate; therefore, drivers or lashers during the process of load and lash may wait for the other to perform or complete their work. Neither party is authorized detention while the other is performing commodity work.

4.7.3.5 The Contractor shall provide to the COR documentation (time sheets or log book) justifying detention or standby time at the end of each shift wherein the detention occurred for approval of compensation. Failure to do so at that time may preclude compensation except with CO approval.

4.8 Extra Labor. The Contractor shall, when requested by the COR, and ordered by the OO, supply extra labor for miscellaneous services within the scope and intent of this contract. Unless services are occasioned by the fault or negligence of the contractor, the contractor shall be compensated at the extra labor rates established in Schedule 2 of the SOR

4.8.1 Miscellaneous services include, but are not limited to the following:

• Carpentry work in excess of normal lashing, blocking & bracing

• Welding & burning

• Re-handling, removing and shifting of cargo (military or commercial)

• Building or dismantling of sheathing and nailed floors

• Handling of ships' stores & materials

• Providing shadow or ghost labor for military operation

• Providing assistance to US Government personnel for terminal services, exercise and contingency operation.

• Providing labor for handling, deploying, redeploying Yokohama fenders.

4.8.2 When performing extra labor services, the Contractor shall furnish all gear and necessary equipment (operator included) required to perform the requested service. Labor (schedule 2) and Equipment rental (schedule 4) of the SOR rates shall apply.

4.8.3 When performing extra labor services, the Contractor shall furnish all gear and necessary equipment (operator included) required to perform the requested service. Labor (schedule 2) and Equipment rental (schedule 4) of the SOR rates shall apply.

4.9 Overtime is defined as the hours worked past regular work day hours, regardless of shift.

“example”, if the work day shifts are 0800 -1200 to 1300-1700 hours, Monday through Friday, when operational requirements dictates that labor work past the regular work day, hours worked after the work day may include overtime wages, this may also include meal hours, weekends and holidays. Overtime compensation shall be the calculated time past the regular working shift/s and shall be determined IAW the local host nation laws (if applicable) for the Contractor and their employees.

4.9.1 Ordered overtime. The contractor shall, when directed by the COR, and ordered by the OO, supply labor for requested overtime work (include weekends and holidays). Compensation for overtime work shall include the regular hourly rate (schedule 2) plus the overtime differential rate in Schedule 3B of the SOR, overtime pay shall be rounded to the nearest 5 minute increment and compensated in addition to commodity rates or extra labor rates when worked.

4.10 Shift Differentials. When work is performed in 2nd or 3rd shift/s, the Contractor shall be compensated in accordance with the applicable shift differential rates set forth in Schedule 3B and 3C in the SOR for each working member in each labor class. When work is performed on an extra labor basis, applicable differentials rates in Schedule 3B or 3C shall be added to base hourly labor rates schedule 2 per class. Differential pay shall be time over normal working shifts and shall be determined IAW the prevailing CBA if applicable to the Contractor and their employees.

4.11 Start Time. The Contractor shall be flexible to the Government for work start times, the Government shall discuss vessel or terminal work at each planning meeting, whereas an established work day start time shall be established. Start times that start at later than normal working hours shall include established differential rates, and shall not include overtime until a full normal work day hours are met.

4.12 Equipment Rental Rates. All Equipment Rental (EQR) rates listed in schedule 4 of the SOR shall be billable by the hour or day. Equipment Rental rate applies to equipment used during man-hour operation. For commodity operations, equipment used is inclusive of the commodity activity rate e.g. truck, vessel, rail load or unload. For crane equipment rental rate listed under the SOR, the cost is inclusive of the crane operator, fuel, lubricants, slings, rigging, and accessories, and any mobilization and demobilization costs. Daily equipment rates shall imply 24 hours of use with appropriate operators changed as needed. Rental of equipment not listed in the SOR will be subject to the same conditions as above and paid on a cost reimbursement OOP, all rates are subject to written approval by the COR.

Equipment used in an Extra Labor situation. The Government shall reimburse the Contractor for its use based on equipment schedule of rates. Equipment used for both Commodity work and Extra Labor on the same day/time, the Government will only compensate the Contractor for the time equipment was actually used in an Extra labor situation and verified by the both the COR and the Contractor.

4.13 Inland Transportation Rates. Reserved

4.14 Contract Labor Reporting. The Contractor shall provide as requested by the COR, a daily time keeping log book for verification of labor and services provided for each shift per day’s operations, for the purpose of reconciliation. Breakout will include the description of service, total quantities of labor by class, hours worked to the nearest 5 minute interval, and significant events of the day.

4.15 Timekeeping. The Contractor shall maintain timesheets, with 100% accuracy, for all contractual services furnished by their own or subcontracted operations. The timesheet shall include the following information:

• Date & time of operation

• Work was performed on daily shift or continuous shift

• Number of laborers, by class type of labor used, and hours worked

• Type, number, and hours equipment is utilized

• Times and reasons for any work stoppages (detention, standby time)

4.15.1 Timesheets will be verified by the COR. Compensation for services defined in this paragraph are included in all commodity rates established in the SOR. In addition to all other requirements stated elsewhere, the Contractor shall provide the Government with:

4.15.1.1 Daily port work accomplishment plan; based upon vessel discharge, load, and port clearance guidance, to include number of gangs, vessels, piers, etc., and equipment requirements, by shift, for the next twenty four (24) hour period. The Contractor shall provide this information at daily operations meetings.

4.15.1.2 Verbal reports of contractual…