RFP N00033-09-R-8002.doc

Section SF 1449 - CONTINUATION SHEET

MINIMUM AND MAXIMUM QUANTITY

As referred to in paragraph (b) of the “Indefinite Quantity” clause of this contract, the contract minimum and maximum quantities are as follows:

(a) MINIMUM: The Government agrees to order a minimum of $50,000.00 of supplies or services under this contract.

(b) MAXIMUM: The maximum quantity that can be ordered during any contract period shall equal the sum of the value (inclusive of any product changes and EPA adjustments) of the contract period then current and the value of all previous contract periods, if any, plus ten percent (10%), less the total value of all orders placed during all previous contract periods.

Base Period

FFP

Base Period as per Attachment (E) Rate Table

FOB: Destination

NET AMT

FFP

Option Period One as per Attachment (E) Rate Table

NET AMT

FFP

Option Period Two as per Attachment (E) Rate Table

NET AMT

FFP

Option Period Three as per Attachment (E) Rate Table

NET AMT

ADDENDUM TO BLOCK 20

PERIOD OF PERFORMANCE

INDEX

1.0 GENERAL

1.1 Glossary of Terms Used in the Performance Work Statement

1.2 Standards Used in the Performance Work Statement

2.0 LUBRICANT SUPPLY

2.1 General Requirements

2.2 Specific Requirements for Individual Lubricant Applications

3.0 HANDLING OF LUBRICANTS

3.1 Delivery Schedule

3.1.1 Ports listed by Name

3.1.2 Non-Listed Ports within Zones

3.2 Bulk Delivery

3.2.1 Tank Truck

3.2.2 Barge

3.2.3 Drum

3.3 Package Delivery

3.4 Other Delivery Charges

3.4.1 Delivery Surcharge

3.4.2 Demurrage

3.4.3 Order Cancellation

3.4.4 Minimum Order Fee

3.4.5 Environmental Taxes

3.4.6 Palletizing and Packing Requirements for Lubricants

3.4.7 Failure to Make Delivery

4.0 PERSONNEL

4.1 Key Personnel Minimum Qualifications

4.2 Substitution of Personnel

4.3 Key Personnel List and Resumes

5.0 PROGRAM MANAGEMENT

5.1 Program Management Staff

5.2 Working Hours/Business Day

5.3 Training and Technical Reference Documentation

5.4 Quarterly Business Meeting

5.5 Program Office

5.6 Order Status Reporting

5.7 Weekly Order Report

6.0 ENGINEERING SUPPORT SERVICES

6.1 Phase-In/Phase-Out Services

6.2 Service Calls

6.3 Training

6.4 Travel

7.0 MANAGEMENT, HANDLING, TRANSPORTATION OF MANUFACTURER’S PRODUCT

7.1 Empty Drums

7.2 Return of Receipted Packaged Product

8.0 PACKAGING AND MARKING

8.1 General

8.2 Package Size for Lubricants

8.3 Bulk

9.0 PRODUCT SUBSTITUTION/TECHNOLOGY IMPROVEMENT

9.1 Permanent Product Substitution

9.2 Approval of Product Substitution

9.3 Limits for Product Substitution

9.4 Technology Improvements

10.0 DELIVERY OF GOODS OR SERVICES

10.1 Delivery Verification

10.2 Required Time and Place of Delivery/Performance

10.3 Products found in leaking, broken, and/or less than 50% shelf life for packaged products at delivery

11.0 CONTRACT ADMINISTRATION DATA

11.1 Contracting Officer’s Representative (COR) – Functions and Limitations

11.2 Ordering Officers

12.0 SPECIAL CONTRACT REQUIREMENTS

12.1 Delivery Order (DO) and Technical Direction Letter (TDL) Procedures

12.2 Other Direct Costs (ODC)

12.3 License, Permits, and Precautions

12.4 Contractor Personnel

12.5 Quality Control Standard

12.6 Economic Price Adjustment

PERFORMANCE WORK STATEMENT

1.0 GENERAL

The Military Sealift Command (MSC) requires lubricants and related engineering support services for the MSC Lubrication Program. The Government is contracting not only for specific products and services, but also for the availability and delivery of these products and services on a worldwide basis within specific time constraints defined by this contract. The Contractor shall provide products and services, on a worldwide basis, for MSC ships and any other Government owned or Government chartered ships designated by MSC. Services under the scope of this contract include engineering support services (e.g. service calls and training), technical evaluation, and troubleshooting services.

The Contractor agrees to deliver the supplies and services set forth in this Contract when ordered by the Government in accordance with the Contract terms and conditions.

The following items are not separately priced under this contract:

· Paragraph 5.0 (Program Management)

· Paragraph 6.3.1 (Shipboard Training)

Unless otherwise specified, consideration for all services and other deliverables under this Contract is the Government’s minimum guarantee.

1.1 Glossary of Terms Used in the Performance Work Statement: The following definitions apply to the terms used in this Performance Work Statement:

ABS-American Bureau of Shipping

AGMA-American Gear Manufacturer’s Association

ANSI-American National Standards Institute

API-American Petroleum Institute

ASTM-American Society of Testing and Materials

Bulk Delivery - Method of delivery wherein the Contractor is required to pump oil to the requesting ship using industry approved transfer equipment.

CFR-Code of Federal Regulations

COR-Contracting Officer’s Representative

DI-Data Item. Contract deliverables are defined in data requirements list.

DO-Delivery Order

Empty Drum-A container of approximately 200 liters in which there is no more than four (4) liters of residual product.

EPA-Economic Price Adjustment

FAR-Federal Acquisition Regulation

FOB-Free On Board. This term is used to identify products that are delivered directly to the ship by the Contractor.

ISO-International Standards Organization

JTR-Joint Travel Regulations

MSDS-Material Safety Data Sheets

ODC-Other Direct Cost

OECD-Organization Economic Corporation and Development

OEM-Original Equipment Manufacturer

PRIMARY- First in importance

PAO-Polyalphaolefin

POE-Polyol Ester

SAE-Society of Automotive Engineers

TBN-Total Base Number

TDL-Technical Direction Letter

VI-Viscosity Index-Defined as the rate of viscosity change with a change in temperature of the oil.

1.2 Standards Used in the Performance Work Statement: The following standards apply to the Performance Work Statement:

ASTM (American Society of Testing and Materials)-ASTM D277 is used for standard definitions of terms relating to Petroleum and standards for testing lubricants both new and used.

SAE (Society of Automotive Engineers)-SAE standards are used for engine oil viscosity classification.

AGMA (American Gear Manufacturers’ Association)-Standard 250.03 defines specifications for enclosed gear oils.

ISO (International Standards Organization)-Standard 3447 is used to define oil viscosity grades. ISO 9000 standards can be used for quality assurance for Product manufacturing and Product delivery. ISO 4406 is used to quantify both the size and quantity of wear particles in lubricating oil.

NLGI (National Lubricating Grease Institute)-This institute sets the specifications for greases.

JTR (Joint Travel Regulations)-These regulations define the allowable per diem rates and types of travel expenses that are reimbursable.

API (American Petroleum Institute)-This institute sets standards for measuring oil characteristics, including API gravity.

ANSI (American National Standards Institute)-This Institute is one of the technical standards groups that form the ISO, which sets quality assurance standards and manufacturing standards worldwide.

2.0 LUBRICANT SUPPLY

The lubricants to be delivered under this contract will be used in high, medium, and low speed diesel engines, steam turbines, gas turbines, reduction gears, air compressors, and other shipboard auxiliary equipment. The Contractor shall provide lubricants that meet the standards defined in Attachments (B) and (C). In those cases where the OEM does not certify lubricants by specific brand name, the Contractor shall provide a product that meets the OEM lube oil specifications.

2.1 General Requirements: The lubricants shall be from one of the following base stock families: paraffinic; alkyl benzene (AB); polyol ester (POE); polyalphaolefins (PAO); organic esters; or phosphate esters. Naphthenic base stock oil is only acceptable for compressors in refrigeration or Heating, Ventilating, and Air Conditioning (HVAC) systems using R-12 or R-22 refrigerant. Grease made of polyurea base stock is NOT acceptable.

2.1.1 Shelf Life: All packaged products delivered to the Government shall have, at a minimum, 50% of their shelf life at the time of delivery.

2.2 Specific Requirements for Individual Lubricant Applications: The Contractor shall provide the following products, which shall meet the requirements described below as well as those in Attachment (B):

2.2.1 Diesel Engine Oils: The Contractor shall provide diesel engine lubricating oil.

2.2.2 Marine Steam Turbine Oil: The Contractor shall provide paraffinic base, double-inhibited, high quality turbine grade oil. The lubricant shall contain no antioxidant 2, 6 di-tert-butylphenol (DTBP).

2.2.3 Marine Gas Turbine Oil: The Contractor shall provide a fourth generation synthetic polyolester base lubricant and a highly refined ashless mineral oil that meets the following criteria as noted below:

· Approved under U.S. Military Specification MIL-PFR-23699 for use in aircraft derivative gas turbines (applies to base lubricant only). Classification must be “High Thermal Stability.”

· Turbine grade ashless additive oil meeting MIL-L-6081 Grade 1010 requirements (applies to mineral oil only).

2.2.4 Reduction Gear Oil: The Contractor shall provide reduction gear oil in both paraffinic mineral and polyalphaolefin synthetic base stock. Both oils must meet the minimum AGMA extreme pressure ratings, as well as ISO viscosity index and viscosity grade requirements. Zinc dithiodiphosphate (ZDDP) or any other additives in the additive package of any synthetic oil provided that are chemically reactive with bronze or brass components are unacceptable.

2.2.5 Hydraulic Fluid: The Contractor shall provide two types of hydraulic fluid meeting the following requirements:

· Paraffinic mineral base- this fluid shall be formulated from high quality, mineral base hydraulic oil with antioxidant, anti-foaming and anti-wear additives.

· Readily biodegradable, synthetic base anti-wear hydraulic oil that meets OECD 301B biodegradability criteria.

2.2.6 Compressor Oil: The Contractor shall provide compressor oil for both air compressors and refrigerant compressors as described below.

· Air Compressor Oil: Air compressor oils shall be both mineral and synthetic base stocks.

· Refrigerant Compressor Oil: Refrigerant compressor lubricants shall be naphthenic mineral, alkyl benzene (AB), and polyol ester (POE) synthetic base stock. These oils shall be compatible with chlorofluorocarbon (R-11, R-12, R-502), hydrochloroflourocarbon (R-22), and hydroflourocarbon (R-134a, R-407a, R407b, R407c) refrigerants.

2.2.7 Greases: The Contractor shall provide lithium complex extreme pressure (EP), lithium complex synthetic, calcium EP complex, organic clay and organic clay synthetic greases. All greases shall meet the standards of NLGI grades NO. 000 through 2 as outlined in Attachment (B). Polyurea greases are unacceptable.

2.2.8 Specialty Products: The Contractor shall provide the following specialty products:

Solest 120, Solest 180, Mobilarma 798, and Castrol SW 220.

3.0 HANDLING OF LUBRICANTS

The fixed priced Delivery Surcharges for Lubricants Attachment (E) for truck and/or barge shall be all-inclusive for all transportation and handling of delivered products (i.e. including, but not limited to, ALL fees, taxes, surcharges, dues, or other charges necessary to deliver the product to the ship). Transportation surcharges only apply to goods that have units of issue in kilograms or liters. Any product listed as each or case will not have a transportation surcharge applied. Environmental taxes shall be noted in accordance with Paragraph 3.4.5.

3.1 Delivery Schedule: The Contractor shall deliver products to all ports and zones listed in Attachment (A).

3.1.1 Named Ports: The Contractor shall deliver products to all named ports listed in Table 1 of Attachment (A) by the delivery timeframes cited in Table 3 of Attachment (A), unless otherwise specified within the orders.

3.1.2 Non-Named Ports within Zones: The Contractor shall deliver products to all ports within Geographic Zones listed in Attachment (A) per the delivery timeframes cited in Table 3 of Attachment (A), unless otherwise specified within an order.

3.1.3 Specialty Products: The Contractor shall deliver specialty products to named ports per the delivery timeframes cited in Table 3 of Attachment (A) identified as Specialty Products, unless otherwise specified within an order. If the product is that of the Contractor, the delivery terms shall remain as stated in Paragraph 3.1.1 or 3.1.2.

3.2. Bulk Delivery: When ordered by the Government, bulk delivery of products shall be provided to all named ports and zones in accordance with the minimum delivery timeframes in Attachment (A). The following minimum order requirements shall apply to orders for bulk delivery:

a. Engine oils-minimum delivery requirement of 2,000 liters per order.

b. Turbine, main reduction gear and hydraulic oils-minimum delivery requirement of 4,000 liters per order.

The Government’s order shall specify the delivery method (tank truck, barge, or drum). The bulk delivery rate in Attachment (E) shall be all-inclusive, to include all labor and equipment necessary to deliver product (e.g. operators, mooring, pumps).

3.2.1 Tank Truck: The Contractor shall equip delivery tank trucks with adequate hose to reach a ship’s filling station located 50 meters from the truck. When truck delivery is specified, a Transportation Surcharge shall be payable as set forth in Attachment (E). When ordered by the Government, the Contractor shall provide an additional 20 meters of hose, the firm, fixed-price price of which shall be negotiated by the parties prior to delivery. The price shall be negotiated based on actual cost. Actual cost does not include handling charges, general and administrative cost, overhead, profit or any other indirect costs.

3.2.2 Barge: Barge deliveries will be required only within the barge ports specified in Table 2 of Attachment (A). When barge delivery is specified, a Transportation Surcharge shall be payable as set forth in Attachment (E) in addition to the barge rate.

3.2.3 Drum: For all drum deliveries Contractor shall be responsible for supplying any required pump(s) and for pumping lubricant from drums to the ship. The Contractor shall also provide adequate hose to reach a ship’s filling station located 50 meters from the truck. When ordered by the Government, the Contractor shall provide an additional 20 meters of hose, the firm, fixed-price price of which shall be negotiated by the parties prior to delivery. The price shall be negotiated based on actual cost. Actual cost does not include handling charges, general and administrative cost, overhead, profit or any other indirect costs. The Contractor shall remove the empty drums at no additional cost to the Government.

3.3 Package Delivery: The Contractor deliver packaged lubricants (drum, pail, case) by truck.

3.4 Other Delivery Charges:

3.4.1 Delivery Surcharge for Expedited and Holiday/Weekend Delivery: The Contractor shall be entitled to collect a surcharge representing actual costs for:

· Expedited delivery surcharge for each instance in which the order lead-time provided by the Government is less than the minimum delivery time period specified in the contract for the applicable named port or geographic zone.

· Special delivery surcharge for each instance in which the delivery date requested by the Government falls on a Saturday, Sunday, or local holiday. Local holidays shall be limited to those holidays officially recognized by the national Government for the specific country involved.

The Contractor may only collect for expedited and holiday/weekend surcharge in those instances when:

· Expedited delivery OR delivery on a holiday/weekend was requested by the Government for the convenience or benefit of the Government and

· Expedited delivery OR delivery on a holiday/weekend was successfully completed on the date requested by the Government.

In the event the Government requests expedited delivery OR delivery on a holiday/weekend, the parties shall negotiate a firm, fixed-price for that delivery. The price shall be negotiated based on actual cost. Actual cost does not include handling charges, general and administrative cost, overhead, profit or any other indirect cost.

The Contractor shall not be obligated to provide expedited deliveries OR deliveries on weekends/holidays, but to only make best efforts.

The Contractor shall not incur any penalties for declining requests for expedited delivery or for failure to accommodate requests for weekend/holiday deliveries (i.e., the consequences of failure to order products and services in a more timely manner is the Government’s risk); however, the Contractor will remain liable to make delivery as outlined in Attachment (A).

The cost of expedited delivery necessitated by the Contractor’s failure to maintain adequate local stock inventories or inadequate just-in-time manufacturing/stock management/delivery arrangements shall be solely the responsibility of the Contractor, provided the Government has given adequate order lead time for the named port or geographic zone involved.

3.4.2 Demurrage: The Contractor shall be entitled to Demurrage when pumping has not commenced after the expiration of 1.5 hours following the planning conference (for barge deliveries), or when the Contractor’s delivery truck is prevented from gaining access to the vessel after the expiration of 1.5 hours following entry through the facility gate (truck deliveries). Delays will be determined through comparisons of driver/vessel logs and Government records. Demurrage shall be payable at the rate identified in Attachment (E) for each hour, and pro rata for each part thereof. Except in the case of Specialty Products, after 48 continuous hours of delay charges, the Contractor shall consider the order cancelled. Demurrage is not payable for delays caused through the fault of negligence of the Contractor and, notwithstanding FAR Clause 52.212-4(f), for those delays attributable to interventions by local authorities or operation of local law or regulations. If the Contractor uses multiple trucks to fulfill an order, demurrage shall be calculated for each truck individually to account for staggered arrival times.

3.4.3 Order Cancellation: In the event that a delivery of lubricants is cancelled less than 48 hours prior to the required delivery date for named ports and less than 5 business days prior to the required delivery date for all other ports the Contractor shall be paid the firm fixed price for restocking of products and the transportation surcharge applicable to the location at which a product is returned as provided in Attachment (E). Specialty products will not be subject to an order cancellation.

3.4.4 Minimum Order Fee: The Contractor is entitled to a minimum order fee, set forth in Attachment (E), in the event the Government requires less than 400 liters on an order.

3.4.5 Environmental Taxes: To the extent that payment is unavoidable, the Contractor shall be reimbursed for Environmental Taxes in accordance with the ODC clause. The Contractor shall notify the COR in writing of any taxes paid. These costs shall reference the line item “Environmental Taxes” on Attachment (E) in invoices for orders placed under this contract.

3.4.6 Palletizing and Packing Requirements for Lubricants: The Government may order lubricants packaged on a pallet for delivery or transport via crane or barge, even if less-than-pallet size deliveries are made. The maximum pallet size is addressed in Paragraph 8.0. This requirement will apply to Guam and Singapore. The Contractor shall be paid the rate in Attachment (E).

3.4.7 Failure to Make Delivery: In addition to any discount or remedies the Government may be entitled to, if the Contractor fails to deliver an order by the date specified on the order, the Contractor shall be responsible for all additional costs to effect delivery as soon as possible.

4.0 PERSONNEL

4.1 Key Personnel Minimum Qualifications: The Program Manager, Technical Manager, and Customer Service Representative are key personnel.

4.1.1 Program Manager and Technical Manager: The Program Manager and Technical Manager shall have a minimum of a Bachelor's of Science degree in Marine, Mechanical, Chemical, or Electrical Engineering; and EITHER

· At least four (4) years shipboard experience deepwater sailing in the engine department on commercial, US Naval, or Navy ships, OR

· At least (4) years program management experience managing industrial or marine lubricants.

4.1.2 Customer Service Representative: The Customer Service Representative shall have a minimum of five (5) years experience involving management of customer service functions in the lube oil field.

4.2 Substitution of Personnel:

4.2.1 Key Personnel: Key personnel may not be removed from the contract without express approval of the Contracting Officer, in accordance with MSC 5252.237-9801 SUBSTITUTION OF KEY PERSONNEL (AUG 1990). Resumes shall be provided for all key personnel substitutions.

4.3 Key Personnel List and Resumes (Attachment (F), DI-001): The Contractor shall provide a list of the Key Personnel. Resumes for personnel in these positions shall be delivered in accordance with Attachment (F), DI-001.

4.4 Other Personnel: The Contractor shall provide Field Service Technical Representatives to conduct service calls. Field Service Technical Representatives must be familiar with lube oil requirements and onboard ship equipment.

5.0 PROGRAM MANAGEMENT

The Contractor shall provide program management in accordance with the requirements below.

5.1 Program Management Staff: The Contractor shall provide a Program Manager, a Technical Manager, and a Customer Service Representative whose primary duties shall be the management of MSC’s Fleet Lubricant Oil Program.

5.1.1 Program Manager: The Program Manager is responsible for the overall management of the contract. The Program Manager shall be the single point of contact for all matters pertaining to the performance of the contract. The Program Manager is expected to be available during working hours. MSC expects that this contract will be the Program Manager’s primary, but not necessarily sole, duty. The Program Manager shall keep MSC informed of all changes to any foreign or domestic environmental requirements that affect the supplies and services provided under this contract. All recommendations for substitution of personnel as defined by the contract shall originate from the Program Manager.

5.1.2 Technical Manager: The Technical Manager is responsible for all matters pertaining to lube oil issues and technical training provided under this contract. The Technical Manager shall have a cell phone or pager and shall be available 24 hours a day / seven (7) days a week. The Technical Manager is responsible for reviewing the technical reports and providing guidance and comments to correct any deficiencies noted. The Technical Manager is also responsible for the review of all service call reports and shall provide guidance and comments to the COR on deficiencies noted. The Technical Manager shall be a full-time asset of this contract.

5.1.3 Customer Service Representative: The Customer Service Representative is the single point of contact to process and provide status on all orders. The Customer Service Representative will maintain a 24 hours a day / seven (7) days a week tracking system on delivery requirement status. The Customer Service Representative shall have a cell phone or pager and shall be able to provide the status of all requirements placed against the contract. Also, the Customer Service Representative shall be available by cell phone for emergency supply as needed during non-working day hours. The Customer Service Representative functions include, at a minimum, the process of receiving, processing, and tracking the status of orders placed and scheuduling worldwide deliveries. The Customer Service Representative is considered a full-time asset of this contract.

5.2 Working Hours/Business Day: Working hours and business day where referred to in this contract, unless specifically defined otherwise, are defined as 0900-1700 local time on weekdays in the location serviced any day the U.S. Federal Government is open for business excluding U.S. Federal holidays.

5.3 Training and Technical Reference Documentation:

5.3.1 General: The Contractor shall update and revise all training materials, manuals, and handbooks developed during the Phase-In Services as defined in Paragraph 6.1.1, as necessary to keep them current.

5.3.2 Training Materials: The Contractor shall develop a training syllabus and training manual.

5.3.2.1 Syllabus for Training (Attachment (F), DI-002): The Contractor shall prepare a syllabus to accommodate shore side training. The training syllabus shall address all topics identified in Paragraph 5.3.2.2.

5.3.2.2 Training Manual (Attachment (F), DI-003): The training manual shall follow the Contractor’s syllabus in format and provide additional background information for the material presented. The training manual shall also provide a section for notes and include worksheets for any activities conducted during the training.

The training manual shall address the following topics:

(a) Contract overview, including Contractor and MSC organizational charts

(b) Basic lubrication fundamentals

(c) Grease fundamentals

(d) Critical elements in choosing lubricants

(e) Products by application

(f) Lube oil purification operation

(j) Lube oil compatibility, storage, handling and transfer procedures, emphasizing handling and transfer techniques that minimize introduction of contaminants into equipment lubrication systems.

5.3.3 Additional Materials:

5.3.3.1 Lube Oil Handbook (Attachment (F), DI-004): The Contractor shall develop hard copy handbooks and compact discs (CDs) for distribution to all of the ships and selected shore side staff. The handbook shall include the following:

a. Program Overview

(1) Scope

(2) Procedures

(3) Service Report Form

b. Points of Contact

(1) MSC Staff

(2) Contractor

c. Product List

d. Ship-specific Lube Oil Chart

e. Product Technical Data Sheets

f. MSDS

g. Technical Bulletins

h. Charts, Tables & Miscellaneous

(1) Grease Compatibility Chart

(2) Temperature Conversion Table

The handbook CD shall contain, at a minimum, an electronic version of all items in the handbook.

The Government will provide the Contractor with the existing handbook as a guide during Phase-In Services.

5.3.3.2 Lubrication Charts Attachment (F), DI-005: The Contractor shall provide Lubrication Charts for each vessel serviced by the contract. The Lubrication Charts shall list all lubricated equipment onboard the ship and provide associated OEM required lubricants. Additionally, the Contractor shall include notes for special requirements, such as the use of special oil during the break in period for overhauled equipment. Wherever possible, the Contractor shall minimize the number of different products listed by the Lubrication Chart through consolidation. The Contractor may recommend lubricants provided under this contract exceeding OEM requirements for the purpose of lubricant consolidation. The Lubrication Charts shall include greases and grease points. The Contractor shall ensure that Lubrication Charts are provided to the field service representative for use during routine service calls and these charts shall be reviewed and updated with the Chief Engineer or his designated representative during each routine ship visit. The Government will provide a copy of existing ship lubrication charts during the Phase-In Service.

5.4 Quarterly Business Meeting:

5.4.1 Quarterly Business Meeting: Quarterly Business Meetings will be scheduled approximately every three (3) months during the period of performance of the contract at a location and time agreed to by MSC and the Contractor. The Quarterly Business Meeting shall incorporate a review of all data and reports generated over the past quarter. The Contractor shall record and distribute Meeting Minutes per Attachment (F), DI-006.

5.4.2 Quarterly Report: The Contractor shall provide quarterly reports of all activities, including a summary of each:

a. Service call

(1) Ship, port, and date of call

(2) List of all lubrication chart(s) or machine lubrication deficiencies noted by the field service representative

(3) Names and titles of ship's crewmembers trained

b. Training activities

(1) List of personnel trained

c. Product and services

(1) Product name and quantity delivered during the past 90 days to each ship

(2) Product name and quantity by ports

Quarterly Reports will begin three (3) months after issuance of the first order under this contract. The report shall be distributed quarterly per Attachment (F), DI-007. The Quarterly Report will be discussed at the Quarterly Business Meeting.

5.5 Program Office: The Contractor shall provide a Program Office capable of conducting business during working hours. The Program Office includes personal computers for the Program Manager, Technical Manager, and Customer Service Representative, which shall have the ability to access the Internet and email. This office shall have the ability to send and receive faxes. The Contractor shall set up an order tracking system on a secure website to receive ORDER orders from MSC.

5.5.1 Point of Contacts and Field Office List Attachment (F), DI-008: The Contractor shall provide contact information for the Program Manager, Technical Manager, and Customer Service Representative. This contact list shall include their phone number, fax number, business mailing address, and email address. The Contractor shall also provide and update, on a quarterly basis, a worldwide directory of field offices, which shall include phone number, cell phone number, fax number, and email address for all points of contact.

5.6 Order Status Reporting:

5.6.1 Notifications:

5.6.1.1 Order Confirmation: The Contractor shall provide email confirmation of the receipt of each order (either verbal or email) submitted by the Government. This notification shall be provided to the Ordering Officer(s) no later than close of business on the business day, which the Contractor is deemed to have received the order.

5.6.1.2 Product Availability: The Contractor shall notify the Ordering Officer(s) via e-mail regarding the specific products, and associated quantities, ordered by the Government that are available (either in local inventory or via just-in-time freight from outside the local delivery area) for delivery as requested by the Government for each order. This notification shall be based upon the Contractor’s inventory records. This notification shall be provided no later that the first business day following the date on which the Contractor is deemed to have received an order for delivery in the continental United States (CONUS) or the second business day following the date on which the Contractor is deemed to have received an order delivery outside the continental United States (OCONUS).

5.6.1.3 Planned Delivery Date: The Contractor shall provide email to the Ordering Officer(s) regarding each delivery (or partial delivery) planned by the Contractor for each order submitted by the Government. The notification shall identify the specific products, quantities, and planned delivery date for each delivery (or partial delivery). This notification shall be provided no later than the first business day following the date on which the Contractor is deemed to have received an order for delivery in CONUS or the second business day following the date on which the Contractor is deemed to have received an order for delivery OCONUS.

5.6.1.4 Actual Delivered: The Contractor shall provide email to the Ordering Officer(s) confirming the specific products and associated quantities ordered by the Government that were actually delivered for each planned delivery (or partial delivery). This notification shall be based upon proof of delivery documentations signed by the individual accepting delivery of the products on behalf of the Government. This notification shall be provided no later than the second business day for deliveries in CONUS, or the third business day for deliveries OCONUS immediately following the date on which the delivery (or partial delivery) occurred.

5.6.1.5 Failure to Make Delivery: The Contractor shall provide email notification to the Ordering Officer(s) regarding any instances in which the Contractor failed to make a scheduled delivery (or partial delivery). The notification shall include an explanation of the prevailing circumstances that precluded making the scheduled delivery. This notification shall be provided no later that the first business day immediately following the scheduled delivery date.

5.6.1.6 Backorders: The Contractor shall identify the specific products, quantities, and planned delivery date for each backordered and/or outstanding item for each order submitted by the Government. This information shall be available no later than the first business day following the date on which the Contractor is deemed to have received an order, or failed to make a scheduled delivery, for delivery in CONUS or the second business day following the date on which the Contractor is deemed to have received an order, or failed to make a scheduled delivery, for delivery OCONUS.

5.7 Weekly Order Report - Attachment (F), DI-013

5.7.1: The Contractor shall provide a Weekly Order Report with actual final delivery date for each line item on an order. If there are multiple shipments for one line item, they shall be recorded as quantity delivered and the date (e.g. 10 liters/[7/4/07]; 15 liters [7/7/07] to account for total 25 liters). The report will also identify all the outstanding line items on a given order that have not been delivered and current updated status for final order delivery completion. Upon final order delivery completion, the current status will reflect, “FINAL DELIVERY COMPLETE” on the next Weekly Order Report. On the following Weekly Outstanding Order Report, these orders will be removed in their entirety. Any line item on a given order that has appeared on subsequent Weekly Outstanding Order Reports for a period of 90 days will be canceled and re-ordered on a new order based on vessel’s current requirements.

6.0 OTHER ENGINEERING SERVICES

6.1 Phase-In/Phase-Out Services:

6.1.1 Phase-in Services: Following contract award, there shall be a ninety (90) day phase-in period, during which the Contractor shall, with Government input, develop a plan of action (Attachment (F), DI-009) to ensure a smooth transition of products and services from the predecessor contract to the current contract. The Government may request limited scale product/services deliveries during the final thirty (30) days of the phase-in period.

The Contractor can expect to begin receiving full-production scale orders for delivery of all products and services immediately following the completion of the phase-in period. There is no gradual production/delivery ramp-up period associated with this contract.

Within three (3) days after contract award, the Contractor shall commence a review of lube oil requirements by MSC ship/class with the COR to identify the specific lube oil applicable to each specific MSC ship/class machinery. This review shall be completed within 60 days of contract award. The review of lube oil applicability shall also address compatability of current lubricants and new lubricants available under this contract. The Contractor shall provide guidance on the methods for transitioning to new products. The Contractor may be required to run compatability tests on up to ten (10) samples.

Within fourteen (14) days after contract award, the Contractor and MSC shall schedule and attend a meeting with the COR, Program Manager, the Technical Manager, and the cognizant MSC personnel in Washington, DC. The Contractor shall participate in a minimum of four, two-day meetings at MSC Headquarters in Washington, DC and one, two-day visit to Norfolk, VA to discuss all aspects of the contract. The cost for phase-in services shall include all expenses (e.g., travel, labor, per diem) associated with the phase-in services, including travel to Washington, D.C. and Norfolk, VA for meetings. Meetings will be documented by the Contractor per Attachment (F), DI-006.

The Lube Oil Handbook (Attachment (F), DI-004), Training Syllabus (Attachment (F), DI-002), Training Manual (Attachment (F), DI-003), and Lubrication Chart (Attachment (F), DI-005) shall also be developed during the phase-in period. Prior to or concurrent with commencing initial service calls, the Contractor shall deliver all shipboard training materials (Attachment (F), DI-003 and DI-004) to MSC.

The Contractor and the COR shall develop a mutually agreeable schedule for initial service calls to each MSC ship (Attachment (F), DI-010).

The Contractor shall develop final report formats for the following DIs within Attachment F:

1. Quarterly Report of Service Calls, Training Activities, Products and Services (DI-007)

2. Service Call Report (DI-011)

3. Engineering Services Report (DI-012)

6.1.2 Phase-out Services: Before performance on this Contract ends completely, the Contractor shall provide any services necessary to ensure a successful transition of services from it to the awardee under a subsequent contract for the same or similar requirement. The Contractor shall develop, with Government input, a plan of action to ensure the smooth transition of services to the incoming Contractor with no degradation of services.

6.2 Service Calls: The Contractor shall perform initial, periodic, and emergency service calls, which will be requested by an order. Travel expenses for service calls shall be payable in accordance with Paragraph 6.4. Service calls shall be payable at the fixed prices listed in Attachment E. When multiple ships are subject to service calls in the same vicinity and timeframe, service calls shall be payable per ship, but travel shall be considered to be a single occurrence and reimbursed in accordance with Paragraph 6.4.6 based on the number of days required.

6.2.1 Schedule of Initial Service Calls (Attachment (F) DI- A010): The Contractor shall develop a draft schedule of initial service calls during the phase-in period specified in Paragraph 6.1.1.

6.2.2 Initial Service Call: The initial service call shall be made to each MSC ship within 270 days of contract award. The Contractor shall perform the service calls at the fixed price set forth in Attachment (E). Travel to the ports listed in Attachment (D) shall be paid at the fixed price set forth in Attachment (E). Travel for service calls to ports not listed in Attachment (D) shall be reimbursed in accordance with paragraph 6.4.2. The Contractor's Field Service Representative shall:

1. Provide an overview of the contract and services provided

2. Provide and review preliminary lubrication chart with Chief Engineer or designated representative. Corrections and lubricants not identified shall be reported in the Service Call Report

3. Provide Lube Oil Handbook and CD if available

4. Provide shipboard training

5. Review inventory of onboard lubrication oils

6. Discuss any concerns from the ship’s crew

7. Provide Service Call Report (Attachment (F), DI-011)

6.2.3 Periodic Service Call: The Contractor shall perform Periodic Service Calls as requested by the Government. The Contractor shall perform the service calls at the fixed price set forth in Attachment (E). Travel to the ports listed in Attachment (D) shall be paid at the fixed price set forth in Attachment (E). Travel for service calls to ports not listed in Attachment (D) shall be reimbursed in accordance with paragraph 6.4.2. The following shall be the minimum tasks performed:

1. Review the most current lubrication chart with the Chief Engineer or designated representative. Any recommendations or corrections noted shall be reported in the Service Call Report.

2. Provide the ship with any corrections to the onboard ship lubricant data sheets or MSDS sheets (CD-ROM is the preferred method). However, individual data sheets in hard copy are acceptable.

3. Review contract products and services with the Chief Engineer or the designated representative.

4. Ensure ship is operating lube oil purifiers at the correct temperature for purifying the Contractor’s lubricant.

5. Ensure all grease containers and grease guns are compatible.

6. Review Lube Oil Handbook and CD

7. Provide a Service Call Report (Attachment (F), DI-011)

6.2.4 Emergency Service Calls: Emergency service calls differ in that they will normally require the use of a technical expert. The Contractor shall respond to emergency service calls requests within 24 hours when notified during normal working hours/business day and within 36 hours when notified during non-normal working hours/business day. The Contractor shall provide an Engineering Service Report (Attachment (F), DI-012).

All engineering services ordered for an emergency service call shall be by a written order, describing the services to be performed, deliverables required, and the maximum number of labor hours under the order. Commuting time to the required destination shall not be included. Travel costs are not fixed and shall be reimbursed in accordance with Paragraph 6.4.2.

The Contractor shall make oral situation reports to the COR daily during the course of the emergency service call. When more extensive investigation is required, the Contractor shall recommend additional measures to be taken. The Government shall issue orders for additional analysis as necessary based on the fixed prices in Attachment (E).

6.2.5 Engineering Services: As required by the Government, the Contractor shall provide technical evaluation and troubleshooting services concerning lubrication-related problems. The Contractor shall be notified in writing of the services to be performed, deliverables required, and the expected time involved. Travel shall be reimbursed in accordance with Paragraph 6.4.2.

6.2.6 Service Call Report (Attachment (F), DI-011): For each Service Call, the Contractor shall prepare a Service Call Report. At a minimum, the service call report will identify any problems with the lubricant charts or machinery lubrication and any comments on the program identified during discussions with the ship’s engineers. The report shall document any weaknesses in the shipboard lubrication oil program and any concerns identified during discussion with the ship’s engineers. In addition, it shall include a summary of training performed and any updates made to handbooks. Any conditions which adversely affect the short-term operability of machinery or which will affect the long-term condition of the equipment shall be brought to the attention of the Chief Engineer or his designated representative and noted in the report. Any situation in which the wrong lubricant is being used in equipment, possibly resulting in a failure of that equipment, shall be reported to the Chief Engineer or the designated representative prior to leaving the ship.

6.2.7 Engineering Services Reports (Attachment (F), DI-012): The Contractor shall prepare Engineering Services Reports for each emergency service call or request for engineering services. The report shall contain, at a minimum, the information detailed in Paragraph 6.2.4 above, tailored to the nature of the call or services and shall address specific subject matter as directed by the COR. This report is required to be delivered no later than ten (10) calendar days after completion of the service call.

6.3 Training:

6.3.1 Shipboard Training: The Contractor shall provide shipboard training regarding the proper use of lubricant oil used onboard the ship. Shipboard training is an abbreviated version of shoreside training. At a minimum, training shall address the topics outlined in Paragraph 5.3.2.1. Training shall be conducted as per the approved syllabus (Attachment (F), DI-002) and be tailored to discuss issues relevant to the ship being visited. Attendees of shipboard training shall be provided a copy of the Training Manual.

The shipboard training shall be accomplished as part of the initial and periodic service calls.

6.3.2 Shoreside Training: The Contractor shall provide shoreside training for up to twenty (20) personnel during each training session. Attendees of shore side training sessions shall be provided a copy of the training manual.

At a minimum, the syllabus shall address the topics outlined in Paragraph 5.3.2.1. Training shall be conducted as per the approved syllabus (Attachment (F), DI-002).

For locations in the Norfolk Area, VA and San Diego, CA, the fixed price in Attachment (E) shall include:

1. Labor, per diem, and travel costs for the instructor

2. All training materials required to accomplish the training

3. All equipment necessary to present training

For other locations, the fixed price in Attachment (E) shall include:

1. Labor for the instructor,

2. All training materials required to accomplish the training, and

3. All equipment necessary to present the training.

Travel costs shall be reimbursed in accordance with Paragraph 6.4.2.

Upon issuance of an order, training shall be conducted in the following location(s):

The Government shall provide a 30-day notification prior to the start of the shore side training session to allow the Contractor to prepare and arrange for training.

The shoreside training shall be completed in one (1) business day.

If the Government does not provide facilities, the cost of the facilities shall be reimbursed in accordance with Paragraph 12.2.

6.4 Travel:

6.4.1 Firm Fixed Price Travel: For ports listed in Attachment (D), travel costs (including airfare, per diem, etc.) for initial and periodic service calls shall be paid at the fixed price quoted. Travel within a 50-mile radius shall be included in the fixed price.

6.4.2 Reimbursable Travel: All other travel, to include travel to zones or ports not listed in Attachment (D) shall be reimbursed as set forth below.

6.4.2.1 Contractor Request and Approval of Travel: Any travel under this contract must be specifically requested in writing by the contractor and approved by the Contracting Officer’s Representative (COR), prior to incurring any travel expense. The contractor shall submit the written request to the COR three weeks in advance, when possible. The travel request shall include as a minimum, the following:

1.

Contract number

2.

Date, time, and place of proposed travel

3.

Purpose of travel and how it relates to the contract

4.

Contractor’s estimated cost of travel with a breakdown of the estimated costs of transportation, lodging, meals, and incidentals; and

5.

Name(s) of individual(s) traveling.

The COR shall review and approve/disapprove (as appropriate) all travel requests submitted giving written notice of such approval or disapproval to the contractor.

6.4.2.2 Travel Reimbursement: The Contractor shall be reimbursed for the reasonable actual cost of transportation, lodging, meals and incidental expenses. However, actual costs shall be considered reasonable, allowable, and reimbursable only to the extent that they do not exceed on a daily basis the maximum per diem rate in effect at the time of travel as set forth in the DOD Joint Travel Regulations located at https://secureapp2.hqda.pentagon.mil/perdiem/.

Actual cost does not include handling charges, general and administrative cost, overhead, profit or any other indirect cost.

The contractor shall use the allowable Government personnel rates for transportation and lodging. Reimbursement for airfare shall not exceed the lowest customary standard, coach or equivalent airfare offered during normal business hours. The Contractor will not be reimbursed for travel expenses unless audited records for transportation contain evidence, such as original receipts, substantiating actual expenses incurred for travel. In no event will reimbursement exceed the published rates of common carriers. Expenses for lodging, meals and incidental expenses shall be reimbursed to the Contractor, provided that the overnight stay was documented as necessary.

Each order that requires travel will include a not-to-exceed funding limitation for travel costs. When the Contractor expects total funding expended for reimbursable travel to reach 85 percent of the total funds available on the reimbursable travel CLIN, the Contractor shall notify the Contracting Officer and the COR and any other Government official identified by the Contracting Officer. The notice shall state the estimated amount of additional funds required to continue performance for the period specified in the order. The Contractor shall not exceed or incur costs that exceed the amount of funding stated on an order’s reimbursable travel CLIN.

The Government is not obligated to reimburse the Contractor for otherwise reimbursable travel in excess of the funded amount stated on an order’s reimbursable travel CLIN.

The Contractor is not obligated to continue performance of any reimbursable work under this Contract or otherwise incur costs for reimbursable travel in excess of the funded amount stated on an order’s reimbursable travel CLIN unless the Contracting Officer notifies the Contractor in writing that the funded amount stated under that reimbursable travel CLIN has been increased. In the event notification is made orally, such notification shall be followed up in writing within two working days.

No notice, communication, or representation from any person other than the Contracting Officer shall affect…