J-1_SOW_2023_LBNF_DUNE_SDWS_final.pdf

Attachment J-1 Exhibit I

South Dakota Warehousing Services (SDWS) Services Subcontract Scope of Work

FERMI NATIONAL ACCELERATOR LABORATORY/SDSD

STATEMENT OF WORK (SOW)

Dated March 13, 2023

A. INTRODUCTION

Under contract to the U.S. Department of Energy (DOE), the Fermi Research Alliance, LLC (FRA), is leading the Long-Baseline Neutrino Facility (LBNF) Project to enable a world-class program in neutrino physics. Specifically, the LBNF Project (https://lbnf-dune.fnal.gov) provides the infrastructure for the Deep Underground Neutrino Experiment (DUNE) which will consist of two large liquid argon-based neutrino detectors located nearly a mile underground at the Sanford Underground Research Facility (SURF) in Lead, SD.

B. STATEMENT OF WORK

This Statement of Work outlines the warehousing, storage, and handling of project materials and equipment requirements. The eventual Subcontractor will be required to provide all personnel, equipment, tools, materials, and supervision for the necessary warehousing services to provide the receipt, handling, storage, and loading of the LBNF/DUNE materials and equipment. The LBNF project and DUNE collaboration will also require intermittent access for their QA/QC team at the warehousing location.

C. SCOPE

1. Storage Services:

Warehousing services are required for materials and equipment that will consist of insulation, fasteners, prefabricated components, cabling, electrical components, cryogenic system components, and electronic components to be used to construct the LBNF/DUNE cryostats and scientific experiment. The estimated maximum storage needs are equivalent to 6,918 pallets in Quarter 4 2025.

See attachment J-6, SDWS Estimated Volume & Schedule.

2. Location:

The warehousing location shall be located within approximately a 90-mile distance traveling by roadway or a maximum 2-hour trip from Lead, SD.

Offerors must propose warehouse space as per attachment J-6, SDWS Estimated Volume & Schedule with a reasonable safety factor. In addition, the warehousing and logistics services must meet the requirements for the project materials' receipt, storage, protection, and re-delivery as outlined in Section D, Service Requirements, of this document.

The ultimate contractor does not need to maintain specific open warehouse space for the LBNF/DUNE project when storage is not required at the time. However, it is anticipated that the https://lbnf-dune.fnal.gov/ warehouse location will be used continuously throughout the contract period, but not necessarily to the full extent.

a. Climate Control

The warehouse must be equipped with essential heat and/or climate control. The climate conditions should be as per OSHA recommendation of 68-78 degrees Fahrenheit, with humidity in the approximate range of 20 to 60 percent.

b. Security

i. The successful protection of -stored equipment requires effective protection strategies and the implementation of local LBNF / DUNE security procedures. The Fermilab Security Department develops the protection strategy for an asset and will include consideration of the threat to the asset as a fundamental part of this SOW. The Subcontractor representative shall advise the FRA Point of Contact of any security concerns. Receipt and delivery of FRA equipment and materials will be coordinated through the FRA Point of Contact.

ii. The FRA Point of Contact will ensure that the Subcontractor adheres to all requirements as documented below:

a. Warehouse Structure: Warehouse must be constructed of material that resist break-ins and protect from outside tampering. Periodic inspections and repairs shall be done to the warehouse to maintain its resistiveness. The warehouse must be secured and locked 24/7, with access only to authorized personnel, and all materials must be fully secured during non-working hours when no personnel are present

b. Lighting: Adequate lighting shall be provided inside and outside the warehouse, especially in the following areas: Entrances, exits, cargo handling, storage areas, fence lines, and parking areas.

c. Critical Protection systems: Warehouse protection systems like fire alarm systems, fire suppression systems, hazardous gas detection systems, and air scrubbers shall be secured and monitored for unauthorized tampering or shut down by an unauthorized individual or company. As with the warehouse structure, these critical warehouse protections shall be periodically inspected, tested, and maintained to ensure working properly.

D. SERVICE REQUIREMENTS

The following description of services represents the FRA requirements for warehousing and related services:

1. Standard services - minimum acceptable service levels are listed below:

a. Receiving

i. Dock scheduling

Subcontractor manages all incoming carriers and collaborates with scheduling inbound delivery appointments and resources with the FRA Team.

ii. In-Gate operation Offloading of conveyance including delivering of materials to point of rest in the warehouse .

iii. Carrier Appointment scheduling Maintains delivery schedule and provides adequate labor and equipment, and other resources to unload scheduled carrier at arrival within the carrier's free time. Any cost arising due to delays or lack of resources is the responsibility of the Subcontractor.

iv. Returns management

Assists the FRA Team with reverse logistics to facilitate the approval of returns and the inspection, repair, and reshipment of items, i.e., receiving facility inability to receive materials due to emergencies or return of materials due to damage or other unforeseen circumstance.

v. WMS Updates/Maintenance

The Subcontractor is responsible for updating their Warehouse Management System (WMS) promptly to provide up-to-date status to the FRA Team. The Subcontractor shall be responsible for following FRA’s procedure for receiving items into their WMS and/or into FRA’s system.

b. Inventory Management – Subcontractor shall provide an inventory tracking system that allows for the following:

i. Lot tracking

Create and maintain identification numbers/scannable codes for items before grouping them into shipments to keep inventory up to date as it moves through the warehouse.

ii. Serial Tracking

Create and maintain unique tracking numbers across all inventory items disallowing duplication and checking.

iii. Project Tracking

Track unique project tracking numbers across all inventory items disallowing duplication.

iv. Cycle counting Maintains a schedule of inventory counting cycles throughout the year, keeping track of inventory deviations. If deviations are discovered, report them to the FRA Team and work with them on reconciliation.

v. Missing BAR Codes/Labels

Checks for missing bar codes and labels. If missing bar codes/labels are discovered, report them to the FRA Team and work with them providing new bar codes and/or labels.

c. Storage of materials

i. Management of a Warehouse Management System with the capability to export data to external systems electronically.

ii. Process material orders and locate materials.

iii. Out-gate Picking materials from point of rest in warehouse and loading to transport conveyance, including updating the WMS

iv. Produce standard reports electronically and hard copies as agreed upon and required by the FRA Team See section D.1.f below.

v. Provide WMS accessibility and WMS exported data to the FRA Team.

vi. FRA personnel, or designated representatives (including international consortia representatives), shall have access to the warehouse location during normal business hours or during non-business hours if scheduled in advance.

d. Shipping

i. Packing lists

Generate a list of items in a particular carton, pallet, crate, box, bundle, or similar for the FRA Team to receive and reconcile items shipped with items ordered.

ii. Advanced shipment notifications

Send an itemized shipping list ahead of the shipment itself, allowing FRA Team to prepare an operations plan, equipment, and space to receive shipped materials.

iii. Inventory availability

Help FRA Team keep track of locations and quantities of the project inventory.

iv. Delivery Plan Cooperate with FRA Team in materials delivery plan management.

v. Delivery orders

Allow for phone, hard copy, or electronic submission of delivery orders and provides order confirmations.

vi. Electronic order entry

Allow FRA Team to create and edit shipment requests over a secure electronic connection directly in the WMS system.

vii. Conveyance Loading

The Subcontractor loads the respective conveyance within the carrier's free time. Therefore, any cost arising due to delays or lack of resources is to the Subcontractor's account.

e. Transportation Management

i. Carrier Management

Work with FRA Team selected carriers by determining each delivery's best transport mode option.

ii. Shipment consolidation

Help FRA Team to determine the most efficient way to maximize load consolidation for all deliveries.

f. Reporting

i. Provide regular and ad hoc reporting to the FRA Team in electronic and hard copy formats, frequency, and scope of reporting to be determined upon project implementation. The below listing is provided as an example of potentially required reports. Reporting requirements may not match this list.

ii. Anticipated reporting

1. Daily

a. Dispatch/Delivery Reports

b. Conveyance Load Lists

2. Weekly

a. Inventory Status Reports

b. Weekly Inventory Reconciliation Reports

c. Weekly Delivery Summary Reports

3. Monthly

a. Inventory Status Reports

b. Monthly Inventory reconciliation Reports

c. Monthly Delivery Summary Reports

4. Ad Hoc – TBD depending on operational requirements

a. Specific Commodity Inventory Summary

b. Specific commodity Inventory Reconciliation

c. Other reports as required or requested by FRA team

g. Environment, Safety, & Health

A corporate environment, safety, and health (ES&H) program must comply with and encompass all applicable aspects of 29 CFR 1910, OSHA Safety and Health Standards for General Industry.

h. Quality Control

The Subcontractor facilitates the quality assurance process for incoming and outgoing supplies in cooperation with the LBNF/DUNE Team. The Subcontractor will verify that the equipment received matches the equipment listed on the Bill of Lading and perform a visual inspection of the packaging and equipment to ensure there is no visible damage from shipping. The Subcontractor shall document results of this review and inspection for record purposes. If there is a discrepancy or an unsatisfactory condition identified, the Subcontractor shall notify the responsible LBNF/DUNE Team member within the same day as the discovery.

The LBNF/DUNE Team may provide the QA requirements for different materials for Subcontractor personnel to provide simple visual inspections and/or fill out checklists. The Subcontractor shall complete these inspections and checklists and provide the documentation to the applicable LBNF/DUNE Team member. If an unsatisfactory condition is identified, the Subcontractor shall notify the responsible LBNF/DUNE Team member within the same day as the inspection.

Some equipment will require a more thorough QA inspection upon receipt, the LBNF/DUNE Team will coordinate with the Subcontractor a visit from the LBNF/DUNE Team’s representative for them to perform the inspection at the warehouse.

For equipment/supplies that are required to be returned to its origination point, the Subcontractor will coordinate with the LBNF/DUNE logistics representative for inspection of packaging prior to shipment.

i. Security

i. Subcontractor is responsible for ensuring that the warehouse is secure and only accessible by authorized personnel. See section C.2.b.

2. Special Services:

The Subcontractor must provide specialized services for non-standard packaged materials, i.e., oversized, also called out of gauge (OOG) shipments. In addition, the Subcontractor is required to define in and out of gauge packaging.

When requested by FRA Team, the Subcontractor must also provide additional services (special services, like overtime work, weekend work, pick and pack, or as required under the circumstance) in response to emergencies, adverse weather conditions, special events, and in any other case deemed necessary by LBNF/DUNE management team, including rendering such services essential until the delivery or storage situation is controlled, and regular operation ensues. The nature of this work is for services that are not based on reasonably precise functional or detailed specifications and cannot be predicted in advance, including the following:

a. Oversized Shipments

i. Receiving

ii. Storage

iii. Shipping

iv. Transportation Management

b. Overtime Work

ii. Storage

c. Weekend and Holiday work*

ii. Storage

*The SURF site is closed for major holidays and no delivery activities shall occur, unless specifically approved by the FRA logistics representative, on these days:

New Year’s Day – January 1st Dr. Martin Luther King Jr. Day – 1st Monday after January 15th President’s Day – 3rd Monday in February Memorial Day – Last Monday in May Independence Day – July 4th Labor Day – 1st Monday in September Native American Day – 2nd Monday in October

Veterans Day – November 11th Thanksgiving Day – 4th Thursday in November Day After Thanksgiving – Friday after Thanksgiving Christmas Eve (1/2 Day) – December 24th Christmas Day – December 25th New Year’s Eve (1/2 Day) – December 31st

Plus, any administrative holidays proclaimed by the Governor of South Dakota (typically, days before or after official holidays leading into or out of weekends)

If any of the above holidays occur on a weekend day, a weekday will be used for the holiday.

3. Warehouse Management System

The Subcontractor shall utilize a Warehouse Management System (WMS). The Subcontractor’s responsibility is to provide a system that will handle all operational needs. The FRA team shall always have access and visibility to all project inventory and its status.

The system shall be compatible and have the capability to interact with the FRA Team’s Oracle eBusiness Suite (eBS) ERP system for inbound and outbound data interchange (using semi-automated or fully automated options). The WMS should be able to export data in one of the following file formats: xlsx, csv, or txt, and can import Fermilab’s expected material receipts data. Data exports will be at various intervals (daily, weekly, monthly, etc.) as requested by FRA.

The system should manage all warehouse operations listed below and as specified in Section D, Service Requirements, of this document. This list is understood as the absolute minimum requirements and is not considered an exhaustive list of requirements.

a. Receiving

i. Dock scheduling

ii. Appointment scheduling

iii. Returns management

b. Inventory Management

i. Bar Codes Tracking

ii. Lot Number Tracking

iii. Serial Number Tracking

iv. Project Number Tracking

v. Cycle counting

d. Quality control

e. Storage of Materials

f. Shipping

i. Packing lists

ii. Advanced shipment notifications

iii. Delivery orders

iv. Inventory availability

v. Electronic order entry

g. Transportation Management

i. Carrier coordination

ii. Carrier scheduling

h. Reporting

i. Regular Reports (content and frequency to be determined)

ii. Ad hoc reports