Attachment 1 Revised PWS.pdf

Attachment 1 Solicitation: HTC711-22-R-C001

1 October 2022

Performance Work Statement (PWS)

Global Heavyweight Service (GHS)

TABLE OF CONTENTS

1.1. Contract Scope

1.1.1. International Heavyweight Service

1.1.2. Domestic Heavyweight Service

1.1.3. Inspection of Shipments

1.1.4. Oversized Freight

1.1.5. Foreign Military Sales (FMS)

1.1.6. On-Ramp Provision

1.2 Specific Tasks

1.2.1. Customs

1.2.2. Special Handling

1.2.3. Contract Rates

1.2.4. Pickup and Delivery

1.2.5. Incorrect Address/Address Adjustment/Address Correction

1.2.6. Attempted Delivery

1.2.7. Undeliverable Shipments/Refusal by Consignee

1.2.8. Delivery Commitment/Guarantee

1.2.9. Shipment Tracking

1.2.10. Integrated Data Environment (IDE) / Global Transportation Network (GTN)

Convergence (IGC)

1.2.11. Carrier Forms and Procedures

1.2.12. Ordering

1.2.13. Damaged or Lost Shipment Liability

1.2.14. Invoicing /Payment

1.2.15. Meetings

1.2.16. Installation Security

1.2.17. General Security

1.2.18. Contractor Reports

1.2.19. Refusal of Unsafe Freight

1.2.20. Freight Carrier Registration Program (FCRP)

1.2.21. Electronic Systems Access

1.2.22. Vendor Threat Mitigation

1.2.23. Sexual Assault and Sexual Harassment Policy (Afghanistan)

1.2.24. Operations Security (OPSEC)

1.2.25. Retention of Records

1.2.26. Quality Control, Reporting, and Records

1.3. Specialized Transportation and Support Services (STSS) Cost Recovery Fee (CRF)

1.4. Non-Use Actions

1.5. Deliverables Table

1.6. Service Delivery Summary

APPENDICES

Appendix 1.1 – Definitions and Acronyms Appendix 1.2 – Global Heavyweight Service (GHS) Carriers Invoicing Data Requirements Appendix 1.3 – Global Heavyweight Service (GHS) IGC Data Feed Requirements for the Prime

Contractor Appendix 1.4 – Monthly Reporting Instructions Appendix 1.5 – RESERVED Appendix 1.6 – Electronic Systems Access Appendix 1.7 – International Accessorials Appendix 1.8 – Domestic Accessorials Appendix 1.9 – Sexual Assault and Sexual Harassment Policy Appendix 1.10 – DLA DeCA Task Order Requirements

1.1. Contract Scope. Global Heavyweight Service (GHS) is a common-user transportation contract that provides heavyweight commercial air services for international and domestic shipments. The contractor will provide service utilizing their existing commercial transportation network only. GHS is not a substitute for charter, special air missions, channel, or movement to/from/between military airfields. Services shall be provided for the U.S. Department of Defense (DoD), other Federal Government agencies, and contractors who have a cost-reimbursable contract line-item number under another government contract, which includes transportation of freight (Cost Reimbursable Contractors (CRC)). The prime contractor is required to ensure services are provided for door-to-door, time definite, pick-up and delivery, transportation, timely and accurate shipment tracking, government Third Party Payment System (TPPS) participation, customs clearance processing (if applicable), and shipment data reporting.

All shipments MUST include an air segment. The contractor shall provide these services for international shipments over 300 lbs. In addition, the contractor will provide services within the 48 contiguous states (CONUS) for shipments over 150 lbs. and over 300 lbs. for Alaska and Hawaii. The prime contractor is responsible for all subcontracting actions on this contract.

SCAC partnership changes are only allowable at the option year. The contractor must notify the Contracting Officer (CO) of the partnership change by 1 May prior to the new option year. The contractor shall assign a Program Manager for this program that is an employee of the prime contractor. This person will serve as the primary point of contact for the government for all matters related to the contract. If an issue arises that is not addressed in this PWS, it should be forwarded to Contract Officer Representative (COR) and CO for resolution. The services provided within the scope of this contract are considered "operationally critical support" as defined in DFARS 252.204-7012, "Safeguarding Covered Defense Information and Cyber Incident Reporting".

1.1.1. International Heavyweight Service. The prime contractor shall ensure services are provided for international commercial heavyweight pickup and delivery service for international shipments over 300 lbs. The prime contractor is required to ensure services are provided for door-to-door, time-definite, pickup and delivery service, timely and accurate shipment tracking, customs clearance processing and shipment data reporting. This service shall be provided to the government to all international locations serviced commercially by the contractor. The government may ask for new locations to be serviced by the contractor as world events evolve.

International service contains limited shipment capability for select Security Risk Code (SRC) III and IV items, as outlined in the Defense Transportation Regulation (DTR), Part II, Chapter 205.

1.1.1.1. International Heavyweight Accessorial Service. International heavyweight accessorial services are specifically identified in Appendix 1.7 and priced separately in Attachment 2a, Pricing Matrix. Any additional accessorial fees determined necessary to the contract, but not expressly established in Attachment 2a, Pricing Matrix shall be negotiated and incorporated via contract modification by the Contracting Officer (CO).

1.1.1.2. Excluded Parties Listing. The Civil Reserve Air Fleet (CRAF) contractor shall not use subcontractors listed on the European Union (EU) Banned Carrier Listing at https://transport.ec.europa.eu/transport-themes/eu-air-safety-list_en; the Excluded Parties Listing, at https://sam.gov/data-services/Exclusions?privacy=Public and the Department of Treasury: Office of Foreign Assets Control, Special Designated Listing at https://home.treasury.gov/policy-issues/office-of-foreign-assets-control-sanctions-programs-and-information. Carriers should consider not using subcontractors subject to EU sanctions at https://ec.europa.eu/info/business-economy-euro/banking-and-finance/international-relations/restrictive-measures-sanctions_en.

1.1.1.3. International Heavyweight Size/Weight Limitations. For international heavyweight service, no single shipment shall be less than 301 lbs. in either actual scale weight or dimensional weight, whichever is greater. Dimensional weight for international shipments shall be calculated using the following formula for shipments tendered in pounds (lbs.) and inches: length (inches) x width (inches) x height (inches) = total cubic inches / (divided) by the dimensional factor listed in Attachment 2a, Pricing Matrix. The prime contractor shall charge the actual weight or the dimensional weight, whichever is greater. Dimensions of one-half inch or greater are rounded up to the next whole number; dimensions less than one-half inch are rounded down to the next whole number. The final calculation is rounded up to the next whole pound.

1.1.2. Domestic Heavyweight Air Service. The prime contractor shall ensure services are provided for domestic heavyweight pickup and delivery service for shipments greater than 150 lbs. within the CONUS, plus the District of Columbia (D.C.), and for shipments greater than 300 lbs. from/to CONUS to/from Alaska and Hawaii (including shipments within/between Alaska and Hawaii). Domestic heavyweight pickup and delivery service includes: (1) Priority Service next available flight; shipment may be required anytime during a 24-hour period. This is indicated by SG in Automation Transportation Request (ATR) and on the bill of lading (BOL).

(2) Overnight service to be delivered to the consignee during the consignee' s normal operating hours on the next business day, following the consignor' s requested pickup date of shipment.

This is indicated by D1 in ATR and on the BOL. (3) Second day service, shipment to be delivered to consignee during consignee' s normal operating hours on or before the second business day after consignor requested pickup date of shipment. This is indicated by D2 in ATR and on the BL. (4) Deferred service, to be delivered to the consignee during the consignee ' s normal operating hours on or before the fifth business day after consignor requested pickup date of shipment. This is indicated by D3 in ATR and on the BOL. These services include door-to-door (DD), time-definite, pickup and delivery service, timely and accurate shipment tracking.

Domestic heavyweight pickup and delivery services are priced within Attachment 2c.

1.1.2.1. Domestic Heavyweight Accessorial Services. Domestic heavyweight accessorial services are specifically identified in Appendix 1.8 and priced separately in Attachment 2c. Any additional accessorial fees determined necessary to the contract, but not expressly established in Attachment 2a, Pricing Matrix shall be negotiated and incorporated via contract modification by the CO.

1.1.2.2. Domestic Heavyweight Shipment Weights. Dimensional weight for a shipment shall be calculated on the basis of one pound per each 166 cubic inches as follows: length (inches) x width (inches) x height (inches) = total cubic inches; total cubic inches / (divided) by 166 = dimensional weight. The 166 dimensional factor is used by all contractors performing domestic service. The actual weight is the freight weight rounded up to the next whole pound. The prime contractor shall charge the actual weight or the dimensional weight, whichever is greater. The final calculation is rounded up to the next whole pound.

https://ec.europa.eu/info/business-economy-euro/banking-and-finance/international-relations/restrictive-measures-sanctions_en https://ec.europa.eu/info/business-economy-euro/banking-and-finance/international-relations/restrictive-measures-sanctions_en

1.1.3. Inspection of Shipments. The contractor shall have the right to inspect shipments to determine applicable rates. When shipments are found to be incorrectly described on the BOL at the time of pick-up, the consignor shall issue a new BOL only after putting the shipment out for bid again to get corrected rates. Corrective actions taken by the consignor may lead to additional freight or accessorial charges that shall be assessed according to the updated information and/or the carrier waiting beyond the one-hour free time at pickup. Discrepancies found after the carrier has taken possession can lead to additional freight charges, which must occur via an eBill linked to the BOL. Correction notices cannot be issued for GHS shipments.

1.1.4. Oversized Freight. Oversize freight falls within the parameters below:

1.1.4.1. Piece(s) that exceed 125 inches (10 feet, 5 inches) in length and/or prevent other freight from being loaded on the same pallet(s) because of special tie-down requirements; or.

1.1.4.2. Piece(s) that exceed 88 inches (7 feet, 4 inches) in width but are less than 125 inches (10 feet, 5 inches) in width and/or prevent other freight from being loaded on the same pallet(s) because of special tie-down requirements; or.

1.1.4.3. Piece(s) that exceed 59 inches (4 feet, 11 inches) in height; or.

1.1.4.4. Pieces to exceed 300 inches (25 feet) in length and girth combined.

1.1.4.5. If transportation for oversized shipments will be provided on pallets (width 88 inches, length 125 inches), the contractor will not assess a rental charge for the use of the pallets.

1.1.4.6. Charges: (stated in whole percent only). On shipments of oversized freight, as described in paragraph 1.1.4.1. through 1.1.4.5., the contractor will be entitled to a surcharge identified in Attachment 2c for each oversized piece. Assignment of the oversize accessorial must be done prior to award.

1.1.5. Foreign Military Sales (FMS). This contract may be used to ship U.S. Government-sponsored FMS cargo.

1.1.6. On-Ramp Provision. The Government reserves the right to accept proposals from new CRAF carriers who were not in the CRAF program at the time the solicitation was released, if it is in the Government’s best interest to add new contractors to the original pool of contract holders. Proposals received after the original submission deadline will be evaluated using the evaluation methodology and documentation pursuant to FAR 52.212-2 as stated in solicitation HTC711-22-R-C001. The ordering period for new awardees being added to the initial awardee pool will coincide with the initial awardees’ ordering period and shall not extend the overall term of the contract.

1.2. Specific Tasks

1.2.1. Customs. The rates and the contractor' s commitment to meet the required delivery date

(RDD) shall be inclusive of all requirements to provide customs clearance for international shipments under this contract.

1.2.1.1. As a matter of customary international law and pursuant to a variety of international agreements, U.S. Government shipments are exempt from customs duties, taxes, and similar charges for which no services are received. Accordingly, the U.S. Government will not pay for or reimburse the contractor for customs duties, taxes, and similar charges for which no services are received. The contractor is responsible for providing duty-free cargo clearance with host nation customs officials. Any customs fees arising during the contract performance period shall not relieve the contractor of its responsibility to meet the contracted RDD. If the prime contractor has any questions on permissible customs fees, they should contact the CO for guidance and/or resolution.

1.2.1.1.2. The contractor shall serve as the customs broker and appoint sub-agents, as necessary, to act directly or through such re-delegation, appointment, or designation to other customs brokers, persons or business concerns, as it deems necessary for performance of customs clearance and shall provide all customs forms necessary for customs clearance.

1.2.1.2. If an issue arises for customs that is not addressed in this PWS, the carrier will address the issue with the shipper, and if no resolution can be met, the issue will be brought to the COR and CO.

1.2.2. Special Handling. In accordance with all applicable hazardous regulations, the contractor shall provide special handling and delivery of materials that require a shipper's certification or shipper' s declaration for dangerous goods. The contractor shall provide pickup, special handling, and timely delivery of exempted and approved hazardous material within the provisions of the stated exemption or approval. The shipper is responsible and shall provide to the contractor all necessary and required data/documentation (including all exemptions and/or approvals) with each shipment of hazardous materials. The contractor shall review all documentation before or at the time of pickup to ensure contractor has all the required documentation and it is filled out properly. A contractor representative must also inspect the shipment prior to departure to ensure the cargo is prepared properly. In the rare cases where documentation is found to be incorrect after the shipment departs or a shipment preparation issue arises, the contractor shall not be liable or responsible for delays.

1.2.3. Contract Rates. Contract rates established shall be inclusive of all associated transportation charges with the exception of accessorial charges, listed in Attachment 2a or 2c, Pricing Matrix.

1.2.3.1. Rate and Price Adjustment. This is a 10-year contract with an annual rate refresh.

Contractors will be afforded the opportunity to submit new pricing along with new escalation rates for years 6-10 effective 1 October 2027. Contract rate adjustments during the first five years will be accomplished on 1 October 2023, 1 October 2024, 1 October 2025, and 1 October 2026 and for the second five years on 1 October 2028, 1 October 2029, 1 October 2030, and 1 October 2031 via contract modification. During these rate adjustments each year, the contractor will be afforded the opportunity to apply the contracted escalation rate and submit pricing for previously unawarded lanes.

1.2.3.1.2. Cost Recovery Fee (CRF). The CRF percentage addressed in paragraph 1.3. will be recalculated every fiscal year and may be adjusted by the government on an annual basis, utilizing guidance published by USTRANSCOM Program Analysis and Financial Management Directorate (TCJ8). If an adjustment is made, the prime contractor may adjust all transportation and accessorial rates in an amount equal to the percentage increase or decrease of the new CRF.

1.2.3.1.3. Escalation. Contract rates will be adjusted based on application of the awarded escalation percentage identified in Attachment 2, Pricing Matrix. Escalation adjustments will be applied to all transportation and accessorial rates. Upon notification to the government, the contractor may choose to forgo the application of the escalation percentage. To determine the new rate, the current CRR will be removed, then escalation applied, and then the new CRR applied. Each calculation will be rounded to the ten thousandths. The result will be rounded to hundredths.

Sample Calculation: (Current rate = $12.17, Current CRR = 2.2%, Escalation = 4%, New

CRR=2.4%)

• 12.17/1.022=$11.9080

• 11.9080*1.04=$12.3843

• 12.3843*1.024=$12.6815

• New rate =$12.68

1.2.3.1.4. Service Contract Labor Standards Price Adjustment. Rate adjustments required via application of the Service Contract Labor Standards Act will be processed in accordance with (IAW) FAR 52.222-43, Fair Labor Standards Act and Service Contract Labor Standards - Price Adjustment (Multiple Year and Option Contracts).

1.2.3.1.5. Voluntary Rate Reduction. The prime contractor may choose to lower individual transportation or accessorial rates annually, at the time of rate adjustment.

1.2.4. Pickup and Delivery. The contractor' s equipment is subject to inspection by the shipper at the time of pickup or loading. Equipment found unsuitable for loading of material to be shipped will be rejected by the shipper. The rejected equipment will not relieve the contractor from meeting pickup and delivery requirements. Failure to meet pickup and/or delivery requirement due to rejected equipment constitutes unsatisfactory service under the terms of this contract.

1.2.4.1. Service is required during international business days, except federal holidays, and/or those national holidays specific to international countries, as applicable. Any federal holiday the contractor offers as a normal business day to its commercial customers shall also be offered to government shippers, and holiday charges shall not apply. Any other day designated as a holiday by Federal Statute or Executive Order shall also apply.

1.2.4.2. The contractor shall deliver the shipment in accordance with the shipper's RDD for international shipments and the service level ordered for domestic shipments. Any deliveries attempted after the close of business at a given location shall not be left in an unattended area unless other arrangements have been made for that specific shipment. Therefore, local arrangements for timing of daily pickup/delivery at locations are highly encouraged.

1.2.5. Incorrect Address/Address Adjustment/Address Correction. When the contractor determines a delivery address is incorrect, the contractor shall attempt to find the correct address, through various means that include contacting the shipper, and complete delivery. Unless otherwise agreed upon by the shipper and the contractor, the contractor shall attempt to correct any obvious destination address errors, which would not cause late delivery of the shipment and deliver the shipment within the time requirements specified herein at no additional cost, unless address correction services are provided.

1.2.5.1. When the contractor provides address correction services and charges an accessorial fee for those services, the contractor will provide address correction information to the shipper upon shipper request.

1.2.6. Attempted Delivery. The contractor shall attempt to deliver the shipment to meet the RDD set by the shipper for international shipments and the level or service ordered for domestic.

For purposes of contract performance, delivery shall be considered accomplished on the date of the first delivery attempt, if the contractor has documentation to show the consignee was notified of the delivery attempt and the consignee acknowledges a delay in delivery.

1.2.7. Undeliverable Shipments/Refusal by Consignee. If a shipment is undeliverable, the contractor shall then contact the shipper for disposition or return instructions. If the contractor is unable to obtain disposition or return instructions from the shipper, the contractor shall return the cargo to the sender/shipper. The cost of any return or redirected deliveries requested by the shipper will be the responsibility of the shipper and billed IAW the contract rates identified in Attachments 2a or 2c, Pricing Matrix. The prime contractor shall use a linked eBill and identify the shipment as a returned shipment in the TPPS notes block. If a consignee refuses to accept a delivery, the contractor shall annotate refusal on the order (bill of lading) with date, time, and name of person who refused and contact the shipper for disposition instructions. For purposes of contract performance, delivery shall be considered accomplished on the date of the first refusal, if the contractor has documentation to show the consignee refused the shipment. Shipments being returned to the shipper will be at the shipper' s expense. The prime contractor shall use a linked eBill and identify the shipment as a returned shipment in the TPPS notes block.

1.2.8. Delivery Commitment/Guarantee. The standard on-time percentage is 98% for Domestic service(s) and 95% for International service. However, due to the COVID-19 pandemic, the government has set the non-standard on-time percentage for Domestic service(s) at 92% and International service at 90%. The government reserves the unilateral right to revert to the standard on-time percentage at the exercise of each option year.

1.2.8.1. For those shipments that do not meet the RDD or service level ordered, a shipper may initiate a request for the credit within 30 calendar days after the contractual RDD and report a service failure in the Carrier Performance Module. The prime contractor shall negotiate a credit with the shipper and resolve a credit request within 30 calendar days of credit request or the next billing cycle whichever is greater. If shipper-initiated credit is not requested within 30 calendar days after the RDD, the contractor is not required to process the request or credit the U.S.

Government. There are at least three methods to initiate a shipper-initiated credit:

1.2.8.1.1. Use of the U.S. Government approved TPPS notes or eBill functions to request credit for late delivery.

1.2.8.1.2. Use of the contractor' s webpage (if carrier has webpage) to request a credit for late delivery.

1.2.8.1.3. Use of e-mail/phone or other means of contact to request a credit.

1.2.8.2. International. The contractor shall meet the delivery guarantee for the RDD indicated by the shipper on the BOL. Information on the BOL takes precedence over information on carrier air waybills. If the contractor fails to fulfill the services requested by the shipper on the BOL (including accessorial services), IAW para. 1.2.8.1. the shipper shall pursue credit for the difference between service ordered and the actual service rendered.

1.2.8.3. Domestic. The contractor shall meet the delivery guarantee for the service level ordered by the shipper on the BOL. Information on the BOL takes precedence over information on carrier air waybills. If the contractor fails to fulfill the service level (includes accessorial services) requested by the shipper on the BOL, IAW para. 1.2.8.1. the shipper shall pursue credit for the difference between service ordered and the actual service rendered.

1.2.8.4. Movement time for the contractor provided services starts on the requested pickup date and time IAW the operating hours contained in the Transportation Facilities Guide (TFG). There are no standard/allowable transit times per lane in this contract. The contractor shall not be penalized due to the consignor' s inability to provide the package and necessary/required documentation to initiate the shipment. When the consignor requests pickup and/or delivery on Saturday, Sunday, holidays, and/or before or after an installation's normal operating hours as indicated in the TFG, the contractor will be entitled to charge an accessorial per the authorized GHS accessorials identified in Attachment 2c. or Attachment 2a., as applicable, if the contractor submitted rates for the accessorial.

1.2.8.5. Transportation Facilities Guide (TFG). The contractor shall review the TFG for installation policies regarding applicable requirements for normal operating hours, installation closures, or any other important information. The contractor can access the TFG in the ETA/TEAMS website located at https://eta-teams.transport.mil/teams/login. Failure to review the TFG for installation policies for pickup and delivery requirements may result in non-payment of detention, demurrage and/or storage charges. Additionally, failure to review the TFG for installation operating hours may result in late shipments, which the contractor will be held responsible.

1.2.9. Shipment Tracking. The prime contractor shall ensure access to shipment tracking is provided for all shipments from the date and time of pickup to the date and time of delivery.

Tracking shall be available 24-hours a day, seven days a week via an online tracking tool. In the event the online tool is unavailable, the prime contractor must ensure there is a means to provide manual tracking via email or a toll-free telephone service. The contractor shall provide real-time status updates via an email or text capability or via the carrier’s commercial website.

1.2.10. Integrated Data Environment (IDE)/Global Transportation Network (GTN) Convergence (IGC). The prime contractor shall ensure an interface is established and maintained with the U.S. Government's IGC as required in attached Appendix 1.3, IGC Data Feed Requirements without restriction.

1.2.10.1. The Contractor shall be capable of providing an accurate data feed to IGC in accordance with Appendix 1.3, IGC Data Feed Requirements, in order to begin contract performance.

1.2.11. Carrier Forms and Procedures. Unless otherwise stated in this PWS, the contractor shall provide all commercial forms, as hard copies, necessary to be used with the shipper BOL, or U.S. Government Bill of Lading (GBL) for the successful pickup, transportation, and delivery of all items under this contract.

1.2.11.1. Hard copy commercial forms shall have at least 20 alphanumeric spaces for reference numbers for the DoD agencies or organizations to use.

1.2.11.2. Terms and conditions of the BOL/GBL are applicable to each shipment and take precedence and must match the service identified on commercial forms.

1.2.12. Ordering. For the purposes of this contract, a BOL, or GBL shall constitute an order on this contract. Per 41 CFR Part 102-118.195, Transportation Payment and Audit, does not allow for a waybill as a substitute for BOL/GBL. In limited circumstances, written task orders may be issued against the contract, but only with approval from the GHS CO. Orders will be placed in accordance with FAR 16.505(b) and fair opportunity will be provided unless one of the exceptions at FAR 16.505(b)(2) applies. Shipments under these task orders are part of the Defense Transportation System; therefore, shippers must execute bills of lading and ensure these shipments comply with federal law and DTR requirements, specifically those listed in the below subparagraphs. This includes the movement of government material from contractor and vendor plants to overseas locations. Shippers will use a best value approach to award the shipment.

Under the best value approach, cost is not the only factor in contractor selection. Quality of service and performance factors include, but are not limited to, on-time pickup and delivery percentage, lost or damaged cargo percentage, number of claims, requirement for air waybills, request for inputting shipment into carrier’s system, and provider availability.

1.2.12.1. Shippers must issue BOLs and GBLs when supporting DD Form 13481A, DD Form 1149, DD Form 1384, and DD Form 250. Supporting documents will be retained with the shipment. These supporting documents alone do not constitute an order under GHS and cannot be used to acquire services under GHS. In addition to the BOL, the prime contractor shall ensure the shipper is advised of specific required documentation to execute a shipment so it can be part of the best value determination. Shippers are advised that U.S. Government required paperwork (e.g., BOL/GBL, U.S. export documentation, and hazardous material documentation) are required to accompany each shipment, as required. Shippers furnishing supporting documents, contract data, or other information to contractors are responsible for their accuracy.

1.2.12.2. GHS shipments will be placed through a freight management system (e.g., Cargo Movement Operating System, Distribution Standard System, Financial and Air Clearance Transportation System, Global Freight Management (GFM)) where the BOL/GBL will be created and ultimately creates a matching model in Syncada. In the event of a system outage, manual coordination to ensure fair opportunity with all the carriers must be done and the shippers will then complete the BOL/GBL manually. Shippers who do not have connectivity to Automation Transportation Requests (ATR) through a DoD freight management system may utilize manual coordination with the carriers. However, shippers must provide fair opportunity and generate a BOL/GBL. Carriers that bid on cargo and are awarded a shipment must execute the shipment at the price quoted (transportation rate and itemized accessorials) and documented on the BOL/GBL. The issuance of a bill of lading after performance of freight service is prohibited. The issuance of a duplicate bill of lading is also prohibited. The contractor shall not invoice charges outside of the negotiate price on the bill of lading (BoL). Upon shipment award, if the contractor determines the cargo cannot be moved at the price on the BoL, the carrier shall contact the shipper prior to shipping the cargo to request additional funds. If additional funds are not approved by the shipper, the carrier shall move the cargo provided on the BoL or the shipper shall submit a service failure for the original awarded carrier and the shipper can submit cancel awarded carrier and resubmit requirement. In very limited circumstances additional charges, billed IAW the DTR may be approved by the transportation officer and appealed to the CO. In addition, the carrier may be entitled to additional charges for services ordered and not used.

These charges may be approved by the transportation officer and appealed to the CO.

1.2.13. Damaged or Lost Shipment Liability. The prime contractor shall be liable in the amounts set out below in paragraphs 1.2.13.2 and 1.2.13.3. for damage to or loss of cargo occurring from and after the time it takes possession until delivered to the consignee.

1.2.13.1. The prime contractor shall provide notification to the shipper of any incident (e.g., hard landing or crash) within 24 hours; also, they shall provide a copy of the manifest to shippers within 48 hours if available.

1.2.13.1.2. The prime contractor shall provide an online or manual claims process for U.S.

Government for lost or damaged packages. Claims submitted shall be acknowledged, communicated, or acted upon within 24 hours. The prime contractor will not involve the shipper in loss or damage actions or coordination with subcontractors.

1.2.13.1.3. The prime contractor shall use the web based GFM Discrepancy Identification System (DIS), where Transportation Discrepancy Reports (TDR) are generated, to report, track, and resolve shipment discrepancies involving DoD shipments valued at $500 or more.

1.2.13.1.4. Claims may be filed by the shipper within 30 calendar days after delivery or anticipated delivery unless the prime contractor's commercial practice allows for a longer period for shippers to file claims, in which case, the contractor's commercial claim filing deadline will apply.

1.2.13.2. International. If loss or damage to cargo occurs during a shipment involving an international air transportation segment, Chapter III of the Convention for the Unification of Certain Rules for International Carriage by Air (referred to as the Montreal Convention of 1999) relating to liability for the damage to, or loss of, cargo applies. The prime contractor's liability shall be limited to the lesser of the actual value of the cargo or the amount determined IAW the Montreal Convention of 1999, except when the shipper declares a higher value for carriage liability on the shipment documentation and pays a commensurate surcharge IAW the Attachment 2c, Pricing Matrix, in which case the prime contractor's maximum liability shall be equal to the higher declared value.

1.2.13.3. Domestic. If the shipment does not involve an international air transportation segment, the Montreal Convention of 1999 does not apply, and the prime contractor shall be liable for damage to or loss of cargo in an amount equal to $1.00 per pound per piece or $100 per piece, whichever is greater, but not to exceed the actual value of the cargo, except when the shipper declares a higher value for carriage liability on the shipment documentation and pays a commensurate surcharge, in which case the prime contractor's maximum liability shall be equal to the higher declared cargo value.

1.2.14. Invoicing/Payment. TPPS. All prime contractors shall be TPPS capable. The DTR, Part II, Chapter 212, mandates DoD to utilize TPPS to pay for transportation services. Invoices shall be received from, and payments made to the prime contractor. All invoicing and payments shall be done in U.S. dollars.

1.2.14.1. TPPS is an automated on-line payment processing and transaction tracking system that supports logistical transactions and is utilized by U.S. Government shippers utilizing GHS. A designated financial institution receives a transaction processing fee for every paid transaction.

It consists of five primary functions: (1) electronic data transmission, (2) payment approval process, (3) electronic payment and billing, (4) communication for dispute resolution, and (5) customized data analysis.

1.2.14.2. In accordance with 41 CFR 102-118.195, prime contractors are required to submit the data elements outlined in Appendix 1.2 when sending invoice transactions to the TPPS contractor, currently U.S. Bank. Prime contractors must contact the TPPS customer service help desk to ensure the prime contractor’s configuration is properly set to transmit these data elements to allow for auditability and effective use of the matching model.

1.2.14.3. The prime contractor shall indicate on the billing documents submitted to the paying activity those shipments that have been adjusted if the shipment weight listed is different from the actual weight (e.g., because of reweigh or dimensional weight). Billing documents shall include the revised weight and/or revised dimensions for dimensional weight adjustments. If the shipper does not indicate the shipping weight, the contractor shall weigh the package and annotate the weight. All dimensions must be in inches, weights must be in pounds and sales must be in U.S. dollars. The contractor shall itemize all charges; transportation costs and accessorials using the codes provided in Appendix 1.7 and 1.8.

1.2.14.4. Contractor shall issue any credits due to the shipper via the TPPS using a linked eBill transaction. Credits will be at the transaction level. In case of a special circumstance requiring a large bulk refund covering many transactions, the contractor may contact the shipper ' s financial office to discuss a possible alternate bulk refund process. If there is a discrepancy in weight between the shipper and carrier, the carrier shall submit an eBill and attach the weight ticket or equivalent, linked to the BOL.

1.2.14.5. In accordance with the Fly America Act, each bill submitted by the prime contractor for payment of international air freight transportation charges involving, in whole or in part, the use of a foreign flag transportation service provider (TSP) shall be supported by the prime contractor uploading to Syncada a copy of the air waybill showing the underlying TSPs utilized, and a certification, adequately explaining the non-availability of U.S. flag service, signed by the responsible official of the authorizing agency or the TSP having knowledge of the facts concerning such usage.

1.2.14.6. Any additional charges the prime contractor intends to invoice above the pricing on the bill of lading, must be validated by the shipper and CO prior to prime contractor invoicing in Syncada.

1.2.15. Meetings. The prime contractor shall be required to attend meetings at a U.S.

Government identified location at no additional charge to the U.S. Government when requested by the CO. Meetings are estimated to be requested no more than twice per year. Visit requests shall be submitted in the Defense Information Security System (DISS) for contractor personnel visiting USTRANSCOM on Scott AFB, IL.

1.2.16. Installation Security. The contractor shall comply with all local security regulations.

Security regulations are directive in nature and shall be adhered to by all contractor personnel.

In addition, the contractor shall (consistent with their commercial procedures), provide a method to protect the integrity and proper functioning of all equipment and systems involved in the operation of this contract. Any equipment and information processing systems containing government information shall have security measures to protect against unauthorized disclosure.

1.2.17. General Security. DoD common access cards (CACs) will not be issued for contractor personnel unless the CO determines the CAC is required in the performance of this contract.

CACs will not be authorized specifically for the purpose of utilizing a government system and/or base access. Contractor personnel deemed not CAC eligible will not be considered for CAC issuance. CAC eligibility will be determined by the CO in conjunction with USTRANSCOM TCCS Personnel Security Office.

1.2.17.1. Personnel Clearance Validation. Upon contract award, the prime contractor shall submit the names of contractor personnel to the USTRANSCOM contracting team, who will provide to USTRANSCOM Protection and Response (TCCS-PR) for vetting through the Defense Information Security System (DISS) to ensure investigative and clearance requirements have been satisfied. This shall be completed before the Trusted Agent (TA) accesses the DoD Trusted Associate Sponsorship System (TASS) and creates CAC applications for contractor personnel. If a contractor’s employee does not have the required investigative or security clearance level based on the Government’s determination, the contractor’s employee will be denied the ability to work in support of this contract.

1.2.17.1.2. CAC Issuance Procedures. For those personnel that do not have the required background investigation (the FSO will make the determination by searching for a valid account for that person in DISS). If a valid account does not exist in DISS, the contracting company must submit to the USTRANSCOM Personnel Security Manager (through the TA), an OF Form 306 (Declaration for Federal Employment) which is only sent after the FSO or equivalent reviews it for accuracy.

1.2.17.1.2.1. At the same time, the contractor company will coordinate and obtain electronic fingerprinting for their employee. The third-party company will “electronically” capture the applicant’s fingerprints, using the USTRANSCOM (SON, SOI, and ALC). Hardcopy fingerprint cards are not acceptable.

1.2.17.1.2.2. These steps shall be completed before the TA accesses the DOD TASS, to create a CAC application. Basic U. S. Citizen Contractor CAC Requirements:

1.2.17.1.2.2.1. Requires access on a continual basis of 6 months or more.

1.2.17.1.2.2.2. Contract personnel require access to a DoD facility or networks, either on-site or from a remote location.

1.2.17.1.2.2.3. Users need access to systems for platforms that requires CAC login or user authentication.

1.2.17.1.2.3. CAC Applications:

1.2.17.1.2.3.1. The CAC applications must have an adjudicated Tier 1, Tier 3, or Tier 5 background investigation posted in DISS, or

1.2.17.1.2.3.2. An interim CAC may be approved when the contractor employee has a favorable fingerprint, name and criminal records check completed and has either a Tier 1, Tier 3, or Tier 5 background check “open” with DCSA.

1.2.17.1.2.3.3. The TASS TA will not approve the CAC application in TASS until that TA has verified with a member of TCCS-PR, one of the above requirements.

1.2.17.1.3. Synchronized Pre-deployment and Operational Tracker (SPOT). The prime contractor will be responsible to work with the USTRANSCOM CO to determine applicability and to comply with the SPOT requirements prior to seeking badging.

1.2.17.2. Disclosure of Information. The prime contractor shall not release to anyone outside the contractor's organization, to include subcontractors, any unclassified information, regardless of medium (e.g., film, tape, document), pertaining to any part of this contract or any program related to this contract, unless:

1.2.17.2.1. The CO has given prior written approval:

1.2.17.2.1.2. The information is otherwise in the public domain before the date of release; or

1.2.17.2.1.3. The information results from or arises during the performance of a project that involves no covered defense information (as defined in the clause at DFARS 252.204-7012) and has been scoped and negotiated by the contracting activity with the contractor and research performer and determined in writing by the CO to be fundamental research (which by definition cannot involve any covered defense information), IAW National Security Decision Directive 189, National Policy on the Transfer of Scientific, Technical and Engineering Information, in effect on the date of contract award and the Under Secretary of Defense (Acquisition, Technology, and Logistics) memoranda on Fundamental Research, dated May 24, 2010, and on Contracted Fundamental Research, dated June 26, 2008 (available at DFARS PGI 204.4).

1.2.17.2.2. Requests for approval under paragraph 1.2.17.2.1. shall identify the specific information to be released, the medium to be used, and the purpose for the release. The contractor shall submit its request to the CO at least 10 business days before the proposed date for release.

1.2.17.2.3. The prime contractor agrees to include a similar requirement, including this paragraph 1.2.17.2.1., in each subcontract under this contract. Subcontractors shall submit requests for authorization to release through the prime contractor to the CO.

1.2.17.3. Contractors supporting this contract are expected to comply with the security requirements outlined in Title 49, Subtitle B, Chapter XII, Subchapter C, Part 1544, which is available at https://www.ecfr.gov/current/title-49/part-1544. The following two areas are listed as a point of emphasis:

1.2.17.3.1. Per 49 CFR § 1544.202, Persons and property onboard an all-cargo aircraft. Each aircraft operator operating under a full all-cargo program, or a twelve-five program in an all-cargo operation, must apply the security measures in its security program for persons who board the aircraft for transportation, and for their property, to prevent or deter the carriage of any unauthorized persons, and any unauthorized weapons, explosives, incendiaries, and other destructive devices, items, or substances.

1.2.17.3.2. Per 49 CFR § 1544.225, Security of aircraft and facilities. Each aircraft operator must use the procedures included, and the facilities and equipment described, in its security program to perform the following control functions with respect to each aircraft operation:

1.2.17.3.2.1. Prevent unauthorized access to areas controlled by the aircraft operator under an exclusive area agreement IAW 49 CFR § 1542.111 of this chapter.

1.2.17.3.2.2. Prevent unauthorized access to each aircraft.

1.2.17.3.2.3. Conduct a security inspection of each aircraft before placing it into passenger operations if access has not been controlled IAW the aircraft operator security program and as otherwise required in the security program.

1.2.17.3.2.4. When operating under a full program or a full all-cargo program, prevent unauthorized access to the operational area of the aircraft while loading or unloading cargo.

1.2.18. Contractor Reports. All prime contractors shall ensure reports reflect measurements in inches, weight in pounds, and sales in U.S. dollars. Performance data calculated from the monthly reports is not considered contractor proprietary data or source selection material.

1.2.18.1. Monthly Contractor Report Submission. The prime contractor shall ensure shipment details are submitted to the government no later than the 18th (11:59 pm CST/CDT) of each month for the previous month's activity (shipments delivered during the previous month). Each report will contain two separate data files. For reporting requirements, refer to Appendix 1.4, Monthly Reporting Instructions. There can be no more than two late submissions per year.

1.2.18.2. Reporting Format. The prime contractor shall ensure monthly reports are submitted in the correct format for both the shipment information (SI) and accounting information (AI) report.

Refer to Appendix 1.4 for the correct formatting of the SI and AI report. There can be no more than two inaccurate report files per year.

1.2.18.3. Shipment Detail Accuracy. The prime contractor shall submit accurate shipment data in both the SI and AI report. In the event errors are found in the shipment details submitted by the contractor, the government shall provide written notice and a description of the error via email to the contractor. The contractor shall work with the government to resolve all errors within two business days. There can be no more than two inaccurate report file submissions per year.

1.2.18.4. New Record Submission. Per Appendix 1.4., when a shipment has not been previously reported, records should be submitted no later than the 2nd reporting month after the original reporting time frame. These shipments can be sent within the current report being submitted.

Refer to Appendix 1.4 for instructions for handling corrections, additions, and/or deletions for previously reported months.

1.2.18.5. Excusable delays. The Contractor shall be liable for default unless nonperformance is caused by an occurrence beyond the reasonable control of the Contractor and without its fault or negligence in accordance with the excusable delay codes listed in Appendix 1.4. The Contracting Officer reserves the right to request additional supporting documentation to the use of any excusable delay code

1.2.19. Refusal of Unsafe Freight. The contractor shall refuse cargo they deem to be unsafe or may otherwise damage either the contractor's property or another shipper's cargo.

1.2.20. Freight Carrier Registration Program (FCRP). The prime contractor must be approved through the Military Surface Deployment and Distribution Command’s (MSDDC) FCRP and placed on the approved DoD freight carrier list prior to receiving shipments for delivery. FCRP requirements and instructions are located on MSDDC’s web site at:

https://www.sddc.army.mil/dms/Pages/default.aspx. Further assistance, please contact USTRANSCOM J4-LC via email at transcom.scott.tcj5j4.mbx.lc@mail.mil or via office line at 618-220-5773.

1.2.20.1. The prime contractor shall ensure their SCAC and information within FCRP is current.

The SCAC must also match and be active in National Motor Freight Transportation Association’s (NMFTA) SCAC Online. The prime contractor shall review their information on a semi-annual basis to ensure accuracy.

1.2.20.1.1. The prime contractor shall update the following blocks: Location, Contact Information, Claims Office POC, Subcontractor/Freight Forwarder Information (if applicable), National Defense Authorization Act Compliance, and certification.

1.2.20.1.2. The prime contractor cannot update the following blocks and shall contact the GHS PMO for assistance: Identification, Levels of Service, Small Business, and Certification.

1.2.21. Electronic Systems Access. Most of the business conducted under this contract requires the contractor to access SDDC/USTRANSCOM's Electronic Transportation Acquisition (ETA) System, Global Freight Management (GFM). Department of Defense Instruction (DODI) 8520.02, Public Key Infrastructure (PKI) and Public Key (PK) Enabling and DODI 8520.03, Identity Authentication for Information Systems shall govern contractor's access to this system;

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 (e.g. Yubikey), when interacting with the DoD in unclassified domains.”

Contractors shall use ECA when possible and may use a DoD-approved external PKI (e.g.

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 U.S.

Government-provided username 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 U.S. Government and shall implement an identifying proofing/vetting process for ETA users IAW paragraphs 1.2.21.1. through 1.2.21.4., below.