Statement of Work.docx

INDEX

1.0 GENERAL

1.1 Glossary of Terms Used in the Statement of Work

1.2 Standards Applicable to the Statement of Work

2.0 LUBRICANT SUPPLY

2.1 General Requirements

2.1.1 Shelf Life

2.2 Specific Requirements for Individual Lubricant Applications

2.2.1 Diesel Engine Oils

2.2.2 Marine Steam Turbine Oil

2.2.3 Marine Gas Turbine Oil

2.2.4 Gear Oil

2.2.5 Hydraulic Fluid

2.2.6 Compressor Oil

2.2.7 Greases

3.0 HANDLING OF LUBRICANTS

3.1 Delivery Schedule

3.1.1 Named Ports

3.1.2 Non-Named Ports within Geographic Zones

3.2 Delivery Methods and Packaging

3.2.1 Bulk Delivery

3.2.2 Tank Truck

3.2.3 Barge

3.3 Package Delivery

3.4 Other Delivery Charges

3.4.1 Expedited Delivery Surcharge

3.4.2 Demurrage

3.4.3 Minimum Delivery fee

3.4.4 Drum Removal

3.4.5 Palletizing and Packing Requirements for Lubricants

4.0 PERSONNEL

4.1 Key Personnel Minimum Qualifications

4.1.1 Worldwide Oil Program Manager

4.1.2 Worldwide Oil Technical Manager

4.1.3 Worldwide Oil Logistic/Billing Manager

4.2 Substitution of Personnel

4.2.1 Key Personnel Substitutions

4.2.1.1 General Provisions

4.2.1.2 Guidance on Substitutions

4.2.1.3 Request for Substitutions

4.2.1.4 Key Personnel Definition

4.3 Key Personnel List and Resumes

4.4 Other Personnel

4.4.1 Field Service Technical Representatives

4.4.2 Customer Service Representatives

5.0 PROGRAM MANAGEMENT

5.1 Program Management Staff

5.1.1 Worldwide Oil Program Manager

5.1.2 Worldwide Logistic/Billing Manager

5.1.3 Worldwide Oil Technical Manager

5.2 Working Hours/Business Day

5.3 Training and Technical Reference Documentation

5.3.1 General

5.4 Quarterly Business Meeting

5.4.1 Quarterly Business Meeting

5.4.2 Quarterly Report

5.5 Program Office

5.6 Order Status Reporting

6.0 ENGINEERING SUPPORT SERVICES

6.1 Phase-In/Phase-Out Services

6.1.1 Phase-in Services

6.1.1.1 The Lube Oil Handbook CDRL

6.1.2 Phase-out Services

6.1.3 Lubrication Charts

6.1.4 Phase Out Report

6.2 Service Calls

6.2.1 Schedule of Initial Service Calls CDRL

6.2.2 Initial Service Call CDRL

6.2.3 Periodic Service Call

6.2.4 Emergency Service Calls

6.2.5 Engineering Services

6.2.6 Service Call Report CDRL

6.2.7 Engineering Service Report CDRL

6.3 Training

6.4 Travel

7.0 MANAGEMENT, HANDLING, TRANSPORTATION AND RETURNS

7.1 Reserved

7.2 Return of Receipted Packaged Product

7.2.1 Restocked Packaged Products

8.0 PACKAGING AND MARKING

8.1 General

8.2 Package Sizes for Lubricants

8.3 Bulk

9.0 PRODUCT SUBSTITUTION/TECHNOLOGY IMPROVEMENT

9.1 Permanent Product Substitution

9.2 Exception for Substitution

9.3 Approval of Product Substitution

9.4 Limits for Product Substitution

9.5 Technology Improvements

9.5.1 Submittal of Technology Improvement Proposals

9.5.2 Implementation of Technology Improvement Proposals

9.6 Submission of Product to Analysis Laboratory

10.0 DELIVERY OF GOODS AND SERVICES

10.1 Delivery Verification

10.2 Required Time and Place of Delivery/Performance

10.3 Products found in leaking and/or broken container

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) Procedures

12.1.1 Delivery Orders (DO)

12.1.2 DO CDRLs

12.1.3 Verbal Orders

12.1.4 Delivery Order Lead-Time

12.1.5 Receipt of Delivery Order

12.1.6 Cancellation of Orders

12.1.7 Order Modification

12.1.8 Variation in Quantity for each Delivery Order

12.1.9 Failure to Deliver an Accepted Order

12.1.10 Variation in Quantity Delivered from Quantity Ordered

12.2 Licenses, Permits, and Precautions

12.3 Contractor Personnel Access to DoD Facilities

12.4 Quality Control Standards

12.5 Economic Price Adjustment

12.5.1 Applicability

12.5.2 Definitions for EPA

12.5.3 Base Period and Prior Period

12.5.4 Notification

12.5.5 Calculation for Product Pricing

12.5.6 Effective Date

12.5.7 Substitution of Benchmark for Reference Values

12.5.8 Sample EPA for Products

12.6 Contractor Manpower Reporting and Related Background Information

13.0 INVOICES AND PAYMENTS

13.1 Submission of Invoices

13.1.1 Invoice Requirements

1.0 GENERAL

The Military Sealift Command (MSC) requires marine and industrial lubricants and related engineering support services for the MSC Worldwide 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 for MSC ships (USNS ships), U.S. Navy (USN) ships (USS ships), U.S. Coast Guard (USCG) ships, and any other Government owned or Government chartered ship designated by MSC. Services under the scope of this Contract include engineering support services (e.g. shipboard, technical, and training service calls. 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.

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

ABS- American Bureau of Shipping 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

CDRL- Contract Deliverable Requirements Listing CO- Contracting Officer COR- Contracting Officer’s Representative DEMURRAGE- Courtesy time alongside the ship with truck or barge DEMURRAGE FEE- Cost when ship cancels order when contractor is alongside or excessive time spent hooking up prior to ship allowing delivery of product greater than 1.5 hours.

DI- Data Item. Contract deliverables are defined in data requirements list. DO- Delivery Order 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 or Government’s agent by the Contractor.

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 PSG- Port Service Guide TBN- Total Base Number VI- Viscosity Index-Defined as the rate of viscosity change with a change in temperature of the oil. WSL- Contractor Worldwide Services Listing

1.2 Standards Applicable to the Statement of Work:

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.

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 and 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: Class I, II, III, or IV. Products shall be either, mineral, Alkylbenzene (AB), polyolester (POE), polyalfaolefin (PAO).

2.1.1 Shelf Life: The Contractor shall deliver products with a shelf life of at least six (6) months remaining.

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 both mineral, zinc free and synthetic PAO diesel engine lubricating oil.

2.2.2 Marine Steam Turbine Oil: The Contractor shall provide a Group II high quality turbine grade oil. The Contractor shall provide confirmation that there is no antioxidant 2, 6 di-tert-butylphenol (DTBP) present in the formulation of the steam turbine oils provided.

2.2.3 Marine Gas Turbine Oil: The Contractor shall provide POE lubricant that meets the criteria below:

· Approved under U.S. Military Specification MIL-PRF-23699F Classification STD for use in GE LM2500 Marine Engine. Classification must be “STD.”

2.2.4 Gear Oil: The Contractor shall provide:

· Gear oil in both mineral, and PAO synthetic base stock.

· Readily biodegradable, ester-based gear oil that meets OECD 117 biodegradability, FZG scuffing 12 (MIN), FZG micropitting 10 (MIN)

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

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

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

2.2.6 Compressor Oil: The Contractor shall provide compressor oil for both air and refrigerant Compressors. The Contractor shall provide oil both centrifugal and reciprocating compressor 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 compatible with chlorofluorocarbon (R-114, R-11, R-12, R-502), hydrochlorofluorocarbon (HCFC) (R-22), and hydrofluorocarbon (HFC) (R-134a, R-407a, R407b, R407c) refrigerants.

2.2.7 Greases: The Contractor shall provide lithium complex, lithium, extreme pressure (EP), lithium complex synthetic, calcium EP complex, organic clay (mineral), organic clay (synthetic), and poly-urea greases. All greases shall meet the standards of NLGI grades No. 00 through 04 as outlined in Attachment (B).

3.0 HANDLING OF LUBRICANTS

The fixed priced Delivery Surcharges for Lubricants (Attachment (E)) for truck or barge shall be all inclusive for all transportation and handling of delivered products. In those cases where the product is packaged, the packed quantity shall be indicated in either liters or kilograms for purposes of determining transportation surcharge in the various ports around the world.

3.1 Delivery Schedule: The Contractor shall deliver products to all named ports listed in Table 1 of Attachment (A) and to all non-named ports and to those ports within the geographical zones in Attachment (A) which are listed in the Contractor’s (PSG) or (WSL).

3.1.1 Named Ports: The Contractor shall deliver all products and package sizes to all named ports listed in Table 1 of Attachment (A), per the delivery time frames delineated in Table 3 of Attachment (D), unless otherwise specified within the Delivery Order.

Note: The cost of expedited delivery necessitated by the Contractor's failure to maintain adequate local stock inventories or adequate just-in-time manufacturing/stock management/delivery arrangements, shall be solely the responsibility of the Contractor, provided the Government has provided the minimum order lead time. In those cases where the Government has not provided the minimum ordering lead time, expedited charges will apply. The expedited fee shall be a fixed price per order.

3.1.2 Non-Named Ports within Geographic Zones: The Contractor is required to deliver products to all non-named ports within geographic zones in Attachment (D) per the Contractor’s PSG meeting the geographic zones delivery time frames cited in Table 3 of Attachment (D), unless a different timeframe is otherwise specified within a Delivery Order and agreed to by the Contractor. In the event a requirement exists for delivery of a product listed in the Rate Table (Attachment E) to a non-named port not listed in the (PSG) or (WSL), the Contractor will make reasonable effort to affect delivery. Such deliveries will be at the contract price of the product and the geographical zone transportation cost. Such deliveries will be at the contract price of the product and the geographical zone transportation cost.

Note: In those cases where the Government has not provided the minimum ordering lead time, expedited charges may apply. The expedited fee shall be a fixed price per order.

3.2 Delivery Methods and Packaging: Notwithstanding any terms to the contrary herein, delivery methods and packaging for all products to be delivered hereunder are set forth in the Contractor’s PSG or WSL for non- named ports.

3.2.1 Bulk Delivery: When ordered by the Government, bulk delivery of a minimum of 4000 liters of engine oil, except zinc free and advanced diesel lubricants, shall be provided to all named ports listed in Table 1 of Attachment

(D) and to all non-named ports within the geographical zones in Attachment (D) in which bulk delivery service is listed in the PSG or WSL. Bulk delivery shall be in accordance with the applicable minimum delivery timeframes cited in Table 3 of Attachment (D).

When ordered by the Government, bulk delivery of mineral oils such as turbine, main reduction gear, and hydraulic fluids (minimum order of 4,000 liters) shall be provided to all named ports listed in Table 1 of Attachment (D) and to all non-named ports within the geographical zones in Attachment (D) when the service is listed in the PSG or WSL, and shall be in accordance with the applicable minimum delivery timeframes cited in the Contractor’s PSG or WSL. The Government’s order for both named and non-named ports shall be all-inclusive, to include all labor, booms and equipment necessary to deliver the products the ship within 150 feet of the ships receiving point.

NOTE: Due to the sensitive nature of Zinc free oil and Advanced Diesel Lubricants (ADL) bulk delivery may not be possible in all ports where delivery direct from blend plant cannot be provided. Drums shall be provided in these cases and shall be pumped to the ship by the delivery agent and drums shall be removed upon completion. Pumping of drums and removal of the drums is only applicable to “Named Ports” unless otherwise provided for by the Contractor in non-named ports.

NOTE: Nothing in this paragraph precludes the Contractor from proposing a bulk delivery by pumping from drums. The pumping of drums shall include the removal of all drums once the bulk ordered has been fulfilled. Pumping and drum removal services shall be all included in the “Bulk Oil” pricing for all named ports and for those non-named ports in the Contractor PSG or WSL where bulk oil delivery is available.

3.2.2 Tank Truck: The Contractor shall equip delivery tank trucks with adequate hose to reach a ship’s filling station located up to 50 meters from the truck. Truck delivery to “Named Ports” will not be separately price in the Port Transportation Surcharge. In those cases where a request is made for Tanker Truck Bulk delivery as indicated by the Contractor’s PSG or WSL, the Transportation surcharge fixed price for the Geographical “Bulk Delivery” shall be indicated on the delivery order.

3.2.3 Barge: Barge deliveries will be at the discretion of the Contractor for bulk oil deliveries. Barge delivery pricing shall include booming and all regulatory requirements, and taxes associated with the port and delivery to the ship. Demurrage fee shall be applied if after one (1) and a half hours after the barge is tied up to the ship and receiving of the product has not commenced. Demurrage shall be at the fixed rate stated in the contract.

3.3 Package Delivery: The Contractor shall deliver packaged lubricants (drum, pail, case) per the delivery order requirements for all named ports (Attachment D). For non-named ports, package sizes for products, shall be as outlined in the Contractor’s PSG or WSL.

3.4 Other Delivery Charges:

The following items shall be separately priced and shall be for both “Named Ports” and “Non-Named” ports applicable to the Contractor’s PSG or WSL.

3.4.1 Expedited Delivery Surcharge: The Contractor is obligated to provide expedited services in all named ports. The Contractor shall be entitled to collect a firm fixed price for each order:

· 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.

· When the Government does not provide sufficient lead time as defined in 3.2.1.

Note: The Contractor may only collect for expedited surcharge in those instances when the Government requested this type of delivery and the delivery was successfully completed on the date requested.

The Contractor shall not be obligated to provide expedited deliveries or deliveries on weekends/holidays, to non-named ports, but to only to make a best effort to provide service, while in accordance with the awarded delivery date

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

3.4.2 Demurrage: The Government shall not incur any demurrage costs for the first 1.5 hours once the barge or truck is alongside the ship. Demurrage greater than 1.5 hours shall be paid to the contractor at the rate of $150 for the first hour or any portion thereof and a rate of $75 per half hour or any portion thereof.

3.4.3 Minimum Delivery fee: This fee will apply to all government delivery orders of less than 200 liters or 70 kg of product in all named ports and geographical zones in the Contractor’s PSG or WSL and shall be separate from the product costs and port transportation costs.

3.4.4 Drum Removal: It is recognized that several hydraulic, compressor, circulating fluids, and select engine oils are delivered to the ship to maintain quality control of the product. In some cases, the number of drums delivered to the ship exceeds the capacity of the ship to store or adequately dispose of the drums. The intent of this line item is to allow for the disposal cost of the drums by the Contractor so that the burden is not placed on the ship. Drum removal shall only apply to products at the time of delivery. It is not the intent of this line item to be used as a line item for ships to dispose of drums stored onboard for mission or contingency purposes.

3.4.5 Palletizing and Packing Requirements for Lubricants: The Government may order lubricants packaged on a pallet for delivery. The maximum pallet size is addressed in Paragraph 8.0.

4.0 PERSONNEL

4.1 Key Personnel Minimum Qualifications: The Worldwide Oil Program Manager, Worldwide Oil Logistics/Billing Manager, and Worldwide Oil Technical Manager are key personnel for supporting the Worldwide Oil Supply.

4.1.1 Worldwide Oil Program Manager: The Program Manager shall be fluent in English and have a minimum of a Bachelor's Degree in Engineering, Business, or Science; and either of the following At least four (4) years shipboard experience deep water sailing in the engine department on commercial or Government ship, or At least (4) years program management experience managing industrial or marine lubricants.

The Program Manager is a full time requirement and shall be available to the COR and MSC support Team during normal working hours (Monday-Friday, 0700-1600 EST with the exception of Government Holidays), and reachable by cellular phone 24/7 in the event of an emergency.

4.1.2 Worldwide Oil Technical Manager: The Technical Manager shall be fluent in English and have a minimum of a Bachelor's of Science degree in Marine, Mechanical, Chemical, or Electrical Engineering; and either one of the following:

· At least ten (10) years shipboard experience deep water sailing in the engine department on commercial or Government ships, or

· At least ten (10) years program management experience managing industrial or marine lubricants.

The Technical Manager is a full time requirement and shall be available to the COR and MSC support Team during normal working hours (Monday-Friday, 0700-1600 EST with the exception of Government Holidays), and reachable by cellular phone 24/7 in the event of an emergency.

4.1.3 Worldwide Oil Logistic/Billing Manager: This individual shall be responsible for coordinating daily delivery order requirements with the MSC Logistics Office (N4) and providing weekly or monthly financial reports to the COR, submitting invoices into the DOD Wide Area Work Flow (WAWF) System along with supporting delivery acceptance documentation. This individual shall have at least two (2) years of experience in customer service and shall be familiar with Microsoft Excel and Access Database programs. Due to the volume of billing and reports we provide to our customers in the US NAVY , this Key Person is a full time requirement and should be available to the COR and MSC support Team during normal working hours..

4.2 Substitution of Personnel:

4.2.1 Key Personnel Substitution: Key personnel shall not be substituted without express approval of the Contracting Officer. Resumes shall be provided when substitution of personnel is required.

4.2.1.1 General Provision: The Contractor agrees to assign to this contract those persons identified as key personnel whose resumes were submitted with his/her proposal and are necessary to fulfill the requirements of this contract.

4.2.1.2 Guidance on Substitutions: During the first one hundred and eighty (180) days of the contract performance period no personnel substitutions by the Contractor will be made unless substitutions are approved in advance by the Government. In any of these events, the Contractor shall promptly notify the Contracting Officer and provide the information required by Paragraph 4.2.1.3 below. All proposed substitutions must be submitted, in writing, at least 14 working days in advance of the proposed substitutions to the Contracting Officer and provide information required by Paragraph 4.2.1.3 below.

4.2.1.3 Request for Substitutions: All requests for substitutions must provide a detailed explanation of the circumstances necessitating the proposed substitution, a resume for the proposed substitute, and any other information-requested by the Contracting officer. All proposed substitutes must have qualifications equal to or higher than the qualifications of the person to be replaced. The Contracting Officer or his/her authorized representative will evaluate such requests and promptly notify the Contractor of his/her approval or disapproval thereof.

4.2.1.4 Key Personnel Definition: The following positions are considered key personnel:

Worldwide Oil Program Manager Worldwide Oil Technical Manager Worldwide Oil Logistic/Billing Manager

4.3 Key Personnel List and Resumes (CDRL 0001): The Contractor shall provide a list of the Key Personnel. Resumes for personnel in these positions shall be delivered in accordance with CDRL 0001.

4.4 Other Personnel: The Contractor shall provide Field Service Technical Representatives and Customer Service Representative(s) to support the Worldwide Oil Supply.

4.4.1 Field Service Technical Representative(s): The Contractor shall provide Field Service Technical Representative(s) fluent in English to conduct service calls. The Field Service Technical Representative(s) must be familiar with lube oil requirements and onboard ship equipment.

4.4.2 Customer Service Representative(s): The Contractor shall provide Customer Service Representative(s) that are fluent in English.

5.0 PROGRAM MANAGEMENT

All items in Paragraph 5.0 are not separately priced. They shall be included in the cost of the other products and services of this contract.

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

5.1.1 Worldwide Oil Program Manager: The Worldwide Oil Program Manager (“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 shall be available during working hours as listed in Paragraph 5.2. 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. The Program Manager shall have the authority to direct all foreign field offices to fulfill contract requirements.

5.1.2 Worldwide Oil Logistic/Billing Manager: The Worldwide Oil Logistic/Billing Manager (“Logistic/Billing Manager”) is the point of contact to process and provide status on all orders. The Logistic/Billing Manager shall maintain a 24 hours a day/seven (7) days a week tracking system on delivery requirement status. The Logistic/Billing Manager shall be able to provide status of all requirements placed against the contract in real time. Also, the Logistic/Billing Manager shall be available for emergency supply as needed during nonworking day hours. The Logistic/Billing Manager functions shall include, at a minimum, receiving, processing, and tracking the status of orders placed and the scheduling of worldwide deliveries.

5.1.3 Worldwide Oil Technical Manager: The Worldwide Oil Technical Manager (“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 cellular phone 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. MSC expects that this contract will be the Technical Manager’s primary, but not necessarily sole duty.

5.2 Working Hours/Business Days:

Working hours and business days where referred to in this contract, unless specifically defined otherwise, are defined as Monday-Friday, 0700-1600 EST with the exception of Government 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.

5.4 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 CDRL 0004.

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.

b. Product and services

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

(2) Product name and quantity by ports

(3) Identify low product usage

(4) Supply Issues encountered

Note: Quarterly Reports will begin three (3) months after the issuance of the first order under this contract. The report shall be distributed quarterly per CDRL 0005. 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 the defined working hours. The Program Office shall include personal computers for the Program Manager, Technical Manager, and Customer Service Representative(s), which shall have the ability to access the Internet and email. This office shall have the ability to send and receive emails and faxes.

5.6 Order Status Reporting: The Contractor shall provide email confirmation of the receipt of each order submitted by the Government. This notification shall be provided to the Ordering Officer or Contracting Officer who issued the order no later than the close of business on the day after the Delivery Order was sent from MSC. If there are any issues or concerns with the order they shall be addressed in this communication.

6.0 ENGINEERING SUPPORT SERVICES:

6.1 Phase-In/Phase-Out Services:

6.1.1 Phase-in Services: Following contract award, there shall be a sixty (60) day Phase-in Period, during which the Contractor shall, with Government input, develop a phase-in plan (CDRL 0007) to facilitate the transition of products and services from the predecessor contract to the current contract. The Government may request limited scale product/services deliveries sixty (60) days after contract award. The Contractor can expect to begin receiving full-production scale orders for delivery of all products and services within one hundred and twenty (120) days after the effective date of the contract. The Contractor shall send one gallon containers of each oil provided under this contract to the MSC contracted Fluids Analysis Laboratory.

Within thirty (30) days after contract award, the Contractor shall commence a review of lube oil requirement 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 compatibility of current lubricants and new lubricants available under this contract. The Contractor shall provide guidance on the methods for transitioning to new products. Upon award of contract, Contractor shall provide a sample from each product for FTIR baseline. The Contractor may be required to run compatibility tests of engine and other storage tank oils to minimize any chances of incompatibility with existing shipboard inventory. Within thirty (30) days after contract award, the Contractor and MSC shall schedule and attend a contract kick-off meeting with the Contracting Officer, COR, Program Manager, the Technical Manager, and the cognizant MSC personnel. The Contractor shall participate in a minimum of four, one-day meetings to be held at MSC Headquarters in Norfolk, VA. The cost for phase-in services shall include all expenses (e.g., travel, labor, per diem, and compatibility tests) associated with the phase-in services, including travel to Norfolk, VA. Meetings will be documented by the Contractor per CDRL 0004.

6.1.1.1 The Lube Oil Handbook (CDRL 0002 and Lubrication Chart CDRL 0003) shall also be developed during the Phase-in Period. Prior to, or concurrent with, the commencement of initial service calls, the Contractor shall deliver all shipboard training materials to MSC.

The Contractor and the COR shall develop a mutually agreeable schedule for initial service calls to ships within each class so that the Contractor is familiar with the individual lubricant requirements of each class.

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

1. Quarterly Report of Service Calls, Training Activities, Products and Services (CDRL 0005)

2. Service Call Report (CDRL 0009)

3. Engineering Services Report (CDRL 0010)

6.1.2 Phase-out Services: Before performance on this Contract ends completely, the Contractor shall use reasonable efforts to facilitate 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 facilitate the transition of services to the incoming Contractor with no degradation of services.

6.1.3 Lubrication Charts: (CDRL 0003) The Contractor shall provide lubrication charts for each vessel serviced by the contract. The Lubrication Charts will list all 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 by consolidating.

6.1.4 Phase-out Reports: The Contractor shall provide the following reports during Phase-out Services:

a. A report compiling all data presented on products and ports from contract award to date.

b. A DO Status Report identifying all expenses recorded against each DO. The report should indicate Whether or not all invoicing has been completed for a specific DO.

6.2 Service Calls: The Contractor shall perform initial, periodic, and emergency service calls, which will be requested by a Delivery Order (DO). Service calls shall be payable at the fixed prices listed in Attachment (E).

6.2.1 Schedule of Initial Service Calls (CDRL 0008): The Contractor shall, with the assistance of the COR, develop a draft schedule of initial service calls to identified MSC ships during the Phase-in Period specified in Paragraph 6.1.1.

6.2.2 Initial Service Call: (CDRL 0008): The initial service call shall be made to MSC ships as directed by the DO. The Contractor shall perform the service calls at the fixed price set forth in the contract in accordance with Attachment (E). The Contractor's Field Service Representative shall:

a. Provide an overview of the contract and services provided

b. Provide a preliminary lubrication chart or review existing Lube Chart with the Chief Engineer or a designated ship’s representative. Corrections and updates to the Lube Chart shall be included in the Service Call Report

c. Provide Lube Oil Handbook (if available)

e. Review inventory of onboard lubrication oils

f. Discuss any concerns from the ship’s crew

g. Provide Service Call Report to the Chief Engineer or his/her designated representative (CDRL 0009)

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 the contract and in accordance with Attachment (E).

The following shall be the minimum tasks performed:

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

b. Provide the ship with any corrections to the onboard ship lubricant data sheets or MSDS sheets via CD.

c. Review contract products and services with the Chief Engineer or the designated ship’s representative.

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

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

f. Review the Lube Oil Handbook.

g. Provide Chief Engineer or his/her representative with a copy of the Service Call Report (CDRL 0009).

h. Ensure ship is effectively filtering new and in-service lubricants.

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 days and within 36 hours when notified during non-normal working hours/business days. The Contractor shall provide an Engineering Service Report (CDRL 0010). All engineering services ordered for an emergency service call shall be by written orders 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. The Contractor shall make oral and email (when possible) situation reports to the COR daily during the course of an 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 timeframe involved.

6.2.6 Service Call Report (CDRL 0009): For each Service Call, the Contractor shall prepare a Service Call Report (SCR). At a minimum, the SCR 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 SCR shall document any weaknesses in the shipboard lubrication oil program and any concerns identified during discussion with the ship’s engineers. In addition, an SCR shall include a summary of any updates required to the lubrication chart. Any conditions which adversely affects 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 ship’s representative, and shall be noted in the SCR. Any situation in which the wrong lubricant is used in equipment, possibly resulting in a failure of that equipment, shall be reported to the Chief Engineer or the designated ship’s representative prior to the Contractor leaving the ship.

6.2.7 Engineering Services Reports (CDRL 0010): 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.

6.3 Training: Shore side Training: The Contractor shall provide shore side training for up to twenty (20) personnel during each training session. Each attendee of shore side training sessions shall be provided a CD of the elements discussed. At a minimum, the training shall address the topics outlined in the Lube Oil Handbook. Instructions for such training will be sent out at the DO level. Upon issuance of a DO, training shall be conducted in the following location(s):

Norfolk, VA. Guam, USA. Sasebo, Japan.

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

6.4 Travel: Travel shall be at the DO level on a fixed price basis. Travel shall only apply when the Contractor Service Representative or Technical Engineer is traveling greater than 50 miles from Contractor’s established area for service representative of Technical Engineering requirements.

7.0 MANAGEMENT, HANDLING, TRANSPORTATION AND RETURNS

7.1 Reserved

7.2 Return of Receipted Packaged Product(s): When ordered by the Government and not prohibited by law, the Contractor shall remove and accept for return any packaged products it supplies under the contract that are in factory sealed original, clean containers, within the current shelf life of the product within 30 days at the same port in which the product was received.

7.2.1 Restocked Packaged Products:

In the case of packaged products that can be restocked (which shall include unexpired products), the Government will be responsible for the restocking fee and shall be credited at the same price as was stated on the delivery order which purchased the products. The Contractor shall submit a DO Credit Invoice in accordance with the WAWF clause (252.232-7006) of this contract.

8.0 PACKAGING AND MARKING

8.1 General: The Contractor shall prepare all shipments under this contract in accordance with ASTM-D- 3951-10 “Standard Practice for Commercial Packaging, Preservation, Packaging, Packing and Marking” of all deliverable contract line items and must ensure the material is received in a serviceable, ready for issue condition when received at the ultimate destination. All shipments using coniferous and non-coniferous wood pallets, skids, load boards, pallet collars, boxes, reels, dunnage, crates, frames, and cleats constructed of non-manufactured wood shall be constructed from Heat Treated (HT to 56 degrees Centigrade for 30 minutes) or fumigated (using methyl bromide) material and certified by an accredited agency recognized by the American Lumber Standards Committee (ALSC) in accordance with Wood Packaging Material Regulations both dated 13 Nov 2009.

8.2 Package Sizes for Lubricants: Unless stated otherwise, all lubricants shall be packaged in drums, pails and cases. Greases shall be packaged in pails and cases. Grease cartridges are acceptable only if provided in case-size lots. Pallets shall be restricted to a maximum of 4ft x 4ft x 4ft.

The following standard units shall be used when placing orders for packaged products:

a. Drum: 209 liters, 200 liters or 208 liters (depending on the product line and country)

b. Pail: 20 liters or 19 liters (depending upon the product line or country)

c. Grease by cartridges (priced by the case): kilograms

d. One gallon cans or 3 or 6 gallons case

8.3 Bulk: Subject to Paragraph 3.2 and 3.2.1, the following products shall be considered bulk products, and the Contractor is required to pump oil to the requesting ship using Contractor furnished transfer equipment.

a. Engine oils with minimum delivery requirement of 4,000 liters per order. Exceptions are Zinc Free and Advanced Diesel Engine oils. These products can be ordered in “bulk” quantities but will most likely be pumped by the Contractor from drums to the ship or in some cases, pump from a tanker truck who has received the oil from a refinery and is delivering the bulk order directly to the ship.

b. Turbine, gear, and hydraulic fluids with a minimum delivery of 4,000 liters per order.

9.0 PRODUCT SUBSTITUTION / TECHNOLOGY IMPROVEMENT

The Government will allow the Contractor to substitute products and incorporate technology improvements subject to the requirements and limitations set forth below.

9.1 Permanent Product Substitution: The Contractor shall provide the Government at least 45 days advance notice of intent to discontinue the supply of products included in this Contract. The notice shall advise the Government of the specific product(s) to be discontinued, justification for discontinuation, and identify the salient characteristics of the proposed product(s) to be substituted. Substitute products shall be provided at no additional cost to the Government. For each product offered as a substitute, the Contractor shall certify and provide documentation to support that:

a. The functionality of the substitute product is equal to or greater than the product for which the substitute is offered.

b. The unit price of the substitute product is no greater than the unit price of the product for which the substitute is offered.

c. The maintenance effort of the substitute product is no greater than the maintenance effort of the product for which the substitute is offered.

d. Submission of the chemical information shall be in the preferred format of a product datasheet or equivalent documents.

e. All support costs which are borne by the Government will be no greater as a result of the substitute product.

9.2. Exception for Substitution: Whenever the Original Equipment Manufacturer (OEM) specifically requires a named lubricant and no others.

9.3 Approval for Product Substitution: The Government shall determine the technical acceptability of any product offered as a product substitute. In the event that a product fails to meet all of the above criteria, the substitute will be considered as a proposed change under FAR 52.212-4(c). If accepted by the Government, the contract price will be adjusted only to reflect the value lost and/or decrease in price to the Government. If a proposed product substitution is rejected by the Government and the Government is forced to purchase a substitute product from another source, the Contractor shall be responsible for any reasonable increase in cost to the Government.

9.4 Limits for Product Substitution: Substituted product is allowed for products requested on the delivery order as long as the product is equal to or superior in performance and is completely compatible with the product presently in service onboard the ship. In these cases the substituted product shall be invoiced at the price of the original product requested on the Delivery Order.

9.5 Technology Improvements: After contract award, the Government may solicit, and the Contractor is encouraged to propose independently, technology improvements to the products or services required to be performed under this Contract. These improvements may be proposed to save money, improve performance, save energy or for any other purpose which presents a potential benefit or advantage to the Government.

9.5.1 Submittal of Technology Improvement Proposals: The Contractor will submit a proposal that includes pricing to the Contracting Officer for evaluation. The price proposal shall reflect the same pricing strategy for the new item as was implemented under this Contract for the item being replaced. The proposals will at a minimum contain the following information:

a. A description of the difference between the existing contract requirement and the proposed change with the comparative advantages and disadvantages of each.

b. Itemized requirements of the contract which must be changed if the proposal is adopted with the proposed revisions to the contract language.

c. Evaluation of the effects the proposed change would have on collateral costs to the Government, such as Government furnished property costs, costs of ship equipment maintenance, operation, and conversion costs.

d. Statement of the time by which a contract modification must be issued so as to obtain the maximum benefits of the changes for the remainder of this contract, including supporting rationale.

e. Any effect on contract time and delivery schedules shall be identified.

9.5.2 Implementation of Technology Improvement Proposals: Those proposed technology improvements that are acceptable to the Government will be processed as contract modifications.

9.6 Submission of Product to Analysis laboratory: Approved product substitution/reformulation shall have one gallon of the substituted/reformulated oil sent to the current Oil Analysis Laboratory as designated by the COR.

10.0 DELIVERY OF GOODS AND SERVICES

10.1 Delivery Verification: Final inspection and acceptance of the supplies or services to be furnished hereunder shall be made at the destination by the receiving activity. At the time of each delivery under this contract, the Contractor shall prepare and furnish to the Government/Commercial Receiving Activity either a Contractor’s own shipping/inspection/receiving document or a Material Inspection and Receiving Report (DD 250). The delivery receipt shall contain at a minimum: the ship’s name, the delivery order number, the intended delivery date(s), the delivery location, the product names, and the quantities delivered. The receiving activity shall execute acceptance certification on the submitted documentation.

Note: The delivery receipt shall also include a clearly marked section in which the persons accepting delivery of the products on behalf of the Government are acknowledging acceptance of the products. Persons signing acceptance certification documentation shall include their full printed name, title, employer and, if a shore side receiving facility, phone number.

The information on the delivery receipt regarding the ship name, order number, actual delivery date(s), delivery location, product names, and quantities delivered shall be pre-printed.

Note: Handwritten changes and annotations on the delivery receipt are unacceptable and of no effect unless said changes and annotations are clearly initialed and dated by the person(s) accepting delivery of the products on behalf of the Government.

The Contractor shall maintain original signed and certified documents. Documents may be audited as per FAR Clause 52.212-4 (Addendum).

10.2 Required Time and Place of Delivery/Performance: The specific date and place of delivery for supplies and/or performance of services for each order placed under this contract will be specified in the individual Delivery Order. The Contractor shall deliver all products and services ordered by the Government, subject to any minimum and maximum order size limitations specified in the FAR Clause 52.216-19, on the date specified in each delivery order in all instances in which the Government has provided adequate order lead-time for the applicable named port or geographic zone.

The Contractor’s obligation to deliver all products and services within the specific time constraints defined for each named port or geographic zone shall not be contingent upon:

1. Whether or not the…