NAFIB3-16-R-0040_K-2_Bowling_Ctr_Kitchen.pdf

NAFIB3-16-R-0040

SOLICITATION, OFFER AND AWARD

(Nonappropriated Funds)

4. SOLICITATION TYPE2. CONTRACT NO. 3. SOLICITATION NUMBER

7. ISSUED BY CODE 8. ADDRESS OFFER TO (If other than Item 7)

6. REQUISITION/PURCHASE NUMBER

NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder"

NEGOTIATED BID (RFP)

SEALED BID (IFB)

5. DATE ISSUED

1. No appropriated funds of the United States shall become due or paid the contractor by reason of this solicitation / award

PAGE OF PAGES

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C. E-MAIL ADDRESS

EXT.NUMBERAREA CODE

B. TELEPHONE (NO COLLECT CALLS)A. NAME

10. FOR

INFORMATION

CALL

CAUTION: LATE Submissions, Modifications and Withdrawals: See Section L. All offers are subject to all terms and conditions contained in this solicitation.

(Date)(Hour) local timeuntildepository located in copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if hand carried, in the

SOLICITATION

9. Sealed offers in original and

PART IV - REPRESENTATIONS AND INSTRUCTIONS

OTHER STATEMENTS OF OFFERORS

EVALUATION FACTORS FOR AWARD

INSTR., CONDS., AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND

LIST OF ATTACHMENTS

CONTRACT CLAUSES

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

I

J

K

L

M SPECIAL CONTRACT REQUIREMENTS

CONTRACT ADMINISTRATION DATA

DELIVERIES OR PERFORMANCE

INSPECTION AND ACCEPTANCE

PACKAGING AND MARKING

DESCRIPTION/SPECS./WORK STATEMENT

SUPPLIES OR SERVICES AND PRICE/COST

SOLICITATION/CONTRACT FORM

PART II - CONTRACT CLAUSESPART I - THE SCHEDULE

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G

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E

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A

SEC. DESCRIPTION PAGE(S) (X) DESCRIPTION SEC. (X)

11. TABLE OF CONTENTS

18. OFFER DATE17. SIGNATURE

SUCH ADDRESS IN SCHEDULE.

IS DIFFERENT FROM ABOVE - ENTER

15C. CHECK IF REMITTANCE ADDRESS

EXT.NUMBERAREA CODE

15B. TELEPHONE NUMBER

(Type or print)AND

ADDRESS

OF

OFFEROR

CODE FACILITY

16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER15A. NAME

DATEAMENDMENT NO.DATEAMENDMENT NO.

and related documents numbered and dated):

amendments to the SOLICITATION for offerors

(The offeror acknowledges receipt of

14. ACKNOWLEDGEMENT OF AMENDMENTS

CALENDAR DAYS (%)30 CALENDAR DAYS (%)20 CALENDAR DAYS (%)10 CALENDAR DAYS (%)

(See Section I, Prompt Payment Provisions)

13. DISCOUNT FOR PROMPT PAYMENT

designated point(s), within the time specified in the schedule.

by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the

12. In compliance with the above, the undersigned agrees, if this offer is accepted within ______________ calendar days (60 calendar days unless a different period is inserted

NOTE: Item 12 does not apply if the solicitation includes the provisions at Section L., Minimum Bid Acceptance Period.

OFFER (Must be fully completed by offeror)

IMPORTANT - Award will be made on this Form, or on DA Form 4071, or by other authorized official written notice.

28. AWARD DATE

(Signature of Contracting Officer)

27. Nonappropriated Fund Instrumentality

25. PAYMENT WILL BE MADE BY

26. NAME OF CONTRACTING OFFICER (Type or print)

CODE

24. ADMINISTERED BY (If other than Item 7)

ITEM

(4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

21. ACCOUNTING DATA20. AMOUNT19. ACCEPTED AS TO ITEMS NUMBERED

AWARD (To be completed by NAFI)

CODE

09/26/2016

IB3

Department of the Army Army NAF Contracting (Korea) On Behalf Of Region Single MWR Funds-Pacific Unit # 15742

APO AP 96205-5742

1300 LT 10/14/2016

Miok Yi 82-2 miok.yi.ln@mail.mil

7918-5445

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PAGE(S)

Anthony J. Gray

DA FORM 4069, NOV 04

For use of this form see AR 215-4;

the proponent agency is OACSIM

Concessionaire for Bowling Ctr Recreational Kitchen & Lounge, K-2 Daegu AB

INVITED CONTRACTOR STATUS IS NOT AVAILABLE FOR THIS REQUIREMENT

All sources may submit a proposal or quote as applicable. However, the Republic of Korea (ROK)-United States (U.S.) Status of Forces Agreement (SOFA), precludes the U.S. Government from granting Invited Contractor or Technical Representative status to any offeror, for this requirement. All sources submitting a proposal or quote, as applicable, including U.S. sources, must already have, or obtain the requisite business licenses directly from the ROK Government, and conduct business in accordance with all applicable ROK laws, including but not limited to, rules and policies regarding labor, taxation, and immigration. Any contractor not already doing business in Korea as a local source, must submit adequate verification in its initial proposal or quote, that it has the requisite authorization and capacity to compete for the requirement as a local source, and to perform the contract as a local source. If an initial proposal does not fully demonstrate this authorization and capacity, it will not be further considered for award. Whether an offeror qualifies as a local source shall be determined by the Contracting Officer.

NOTE: SUPPLIES MUST BE MANUFACTURED IN ACCORDANCE WITH THE APPLICABEL

STANDARD IN THE SPECIFICATION.

Buyer Information Yi, Mi Ok , Tel: 02-7918-5445, Fax: 02-7918-5446 Email: miok.yi.ln@mail.mil

Note:

1. Estimated gross business sales over $12,000.00 monthly. There is no guarantee that the actual sales will continue or that the estimated future sales will be realized.

2. Contractor highly recommended attending Pre-Solicitation Site visit. Site orientation will be conducted on 5 Oct 2016, 1000 hour at Daegu K-2 Air Base, Point of Contact (POC) for an appointment is Mr. Samuel M. Sansone, DSN: 766-4107, Comm: 0503-366-4107, Cell Phone:

010-5680-5875, Email: Samuel.sansone.2@us.af.mil . Requiring Activity shall maintain and provide Contracting Officer with a list of all contractors attending site survey by name, company, telephone number by fax (738-5446) or email to miok.yi.ln@mail.mil.

3. The contractor shall provide Name, KID number, Vehicle number, Address and Telephone number prior to site visit to POC. This is required due to security restrictions at K-2 Air Base. Contractors shall be required to contact the POC to gain entrance to Daegu K-2 Air Base.

mailto:Samuel.sansone.2@us.af.mil

SECTION B – SUPPLIES OR SERVICES AND PRICES/COSTS:

B-1. Basic Period: From date of issuance – 30 Nov 2017

Item No. Supplies/Services Qty Unit Firm Fixed Fee to the NAFI

0001. Operation of Bowling Center 12 Mo Recreational Kitchen & Lounge at Daegu K-2 Air Base

B-2. 1st Option Period: 1 Dec 2017 – 30 Nov 2018

0002. Operation of Bowling Center 12 Mo Recreational Kitchen & Lounge at Daegu K-2 Air Base

B-3. 2nd Option Period: 1 Dec 2018 – 30 Nov 2019

Item No. Supplies/Services Qty Unit Firm Fixed Fee to the NAFI

0003. Operation of Bowling Center 12 Mo Recreational Kitchen & Lounge at Daegu K-2 Air Base

B-4. 3rd Option Period: 1 Dec 2019 – 30 Nov 2020

Item No. Supplies/Services Qty Unit Firm Fixed Fee to the NAFI

0004. Operation of Bowling Center 12 Mo

B-5. 4th Option Period: 1 Dec 2020 – 30 Nov 2021

0005. Operation of Bowling Center 12 Mo

SECTION C – DESCRIPTION/SPECIFICATIONS/WORK STATEMENT:

C–1. Description:

a. The Concessionaire service to be performed under this contract consists of the operation of the Bowling Center Recreational Kitchen and Lounge Bldg. #900 at the Daegu K-2 Air Base, Korea.

b. The Concessionaire shall be responsible for hiring, training and paying its employees. The Concessionaire is additionally responsible for ensuring the food and beverage is maintained in accordance with all safety and cleanliness standards as coordinated through the Contracting Officer’s Representative (COR).

c. The Concessionaire shall provide a draft copy of an a la carte menu subject to the terms of this contract. Concessionaire shall not have any original or revised menus printed until the COR approves it.

C-2. DEFINITIONS:

a. Contracting Officer: Refers to the duly appointed Nonappropriated Fund Contracting Officer of the Fund.

b. Contracting Officer’s Representative (COR): Serves as the liaison between the contractor and the contracting officer and is appointed by the contracting officer, in writing. The COR is responsible for the technical and administrative monitoring of the contract as described in the COR appointment letter. The COR has no authority to change the terms and conditions of the contract, only the contracting officer may do this. The COR’s appointment will remain in effect until reassignment, termination of employment or expiration/termination of the contract.

Contractors shall be provided a copy of the COR’s appointment letter.

c. Days: Defined as calendar days unless otherwise stated in the solicitation.

d. Nonappropriated Fund Instrumentality (NAFI): An integral Department of Defense (DOD) organizational entity that performs an essential Government function. It acts in its own name to provide or assist other DOD organizations providing morale, welfare and recreational programs for military personnel and civilians. It is established and maintained individually or jointly by the heads of the DOD components. As a fiscal entity, it maintains custody of and control over its nonappropriated funds. It is not incorporated under the laws of any state or the District of Columbia and enjoys the legal status of an instrumentality of the United States.

C-3. Requisitioning NAFI-Furnished Subsistence and Supplies:

The Concessionaire shall complete requisitions for NAFI-furnished items required from the NAF Central Storeroom. Requisitions for NAFI-furnished items from the NAF Central Storeroom will be requisitioned using AF Form 1735, NAF Interfund Purchase Order. The COR should approve all AF Form 1735 prior to submitting the requisitions for delivery of items. A one percent (1%) storage and handling fee will be accessed to each requisition. The NAFI shall pay the NAFI Central Storeroom for all items requisitioned and delivered to the Concessionaire for the operation of the Bowling Center Recreational Kitchen and Lounge on Daegu AB.

C-4. Food Management:

a. The Concessionaire shall institute and maintain adequate controls and security measures to ensure:

(1) Storage location(s) for NAFI-furnished food and beverage items is/are secure and accessible only to authorized personnel.

(2) Frequent inventories are documented; inventories will be conducted as necessary to preclude theft or shortages.

(3) Issues from the storage facility are promptly and accurately documented.

(4) Food and beverage inventory is issued on a first-in, first-out basis.

(5) Prevention of pilferage and spoilage. The back entry to Bulldog Restaurant’s kitchen must be secured by the contractor.

b. The rights of the NAFI arising from this article are in addition to other rights set forth in the contract or other rights to which the NAFI is otherwise entitled. Nothing in this article shall be construed to limit these rights of the NAFI under this provision.

c. Marketing: The Concessionaire will work with the COR to establish and maintain a marketing plan for the Bowling Center Recreational Kitchen and Lounge. The concessionaire has the overall responsibility for developing the local marketing plan. The NAFI will incur marketing and advertising costs.

SECTION D – PACKAGING AND MARKING:

Not used.

SECTION E – INSPECTION AND ACCEPTANCE:

E-1. The 607 MMS, K-2 Air Base, Korea shall retain physical control over the facilities and furnished equipment. An authorized sanitation inspection team, with the coordination of the COR, will inspect premise for sanitation and food inventories for quality. Inspection will also be conducted on food preparation. Time limits placed on the Concessionaire for repair of major/minor sanitation infractions is the decision of the inspecting official as noted on AF Form 977 (Food Facility Evaluation). The Concessionaire shall comply with all recommendations of the written sanitation report in a timely manner.

E-2. Acceptance of the Concessionaire’s quality of service shall be performed by the COR or designated representative. The COR distributes daily comment cards, surveys clientele, dines frequently in the facility and observes the efficiency and courtesy of all personnel. If there are no derogatory written or verbal comments and personal experience is acceptable, then quality of service is deemed acceptable.

E-3. INSPECTION OF SERVICES (NOV 2004) (BE-002)

(a) The Contractor shall provide and maintain an inspection system acceptable to the NAFI covering the services under this contract. Complete records of all inspection work performed by the Contractor shall be maintained and made available to the NAFI during contract performance and for as long afterwards as the contract requires.

(b) The NAFI has the right to inspect and test all services called for by the contract, to the extent practicable at all times and places during the term of the contract. The NAFI shall perform inspections and tests in a manner that will not unduly delay the work.

(c) If the NAFI performs inspections or tests on the premises of the Contractor or a subcontractor, the Contractor shall furnish, and shall require subcontractors to furnish, at no increase in contract price, all reasonable facilities and assistance for the safe and convenient performance of these duties.

(d) If any of the services do not conform to contract requirements, the NAFI may require the Contractor to perform the services again in conformity with contract requirements, at no increase in contract amount. When the defects in services cannot be corrected by reperformance, the NAFI may-

(1) Require the Contractor to take necessary action to ensure that future performance conforms to contract requirements; and

(2) Reduce the contract price to reflect the reduced value of the services performed.

(e) If the Contractor fails to promptly perform the services again or to take the necessary action to ensure future performance in conformity with contract requirements, the NAFI may-

(1) By contract or otherwise, perform the services and charge to the Contractor any cost incurred by the NAFI that is directly related to the performance of such service; or

(2) Terminate the contract for default.

(End of clause)

SECTION F – DELIVERIES OR PERFORMANCE:

F-1. Contract Period:

Basic period: From date of issuance thru 30 Nov 2017 1st Option Period: 1 Dec 2017 thru 30 Nov 2018 2nd Option Period: 1 Dec 2018 thru 30 Nov 2019 3rd Option Period: 1 Dec 2019 thru 30 Nov 2020 4th Option Period: 1 Dec 2020 thru 30 Nov 2021

F-2. Hours of Operation: Hours of operation will be determined.

F-3. Operating Location: The NAFI will provide the Concessionaire a portion of Bldg. 900 to perform the requirements of this contract. The facility will include all equipment, furniture and decorations as required. The Concessionaire will be responsible for the designated portion of the building and its contents as noted in the contract.

F-3. STOP-WORK ORDER (NOV 2004) (BF-006)

(a) The Contracting Officer may, at any time, by written order to the Contractor, require the Contractor to stop all, or any part, of the work called for by this contract for a period of 90 days after the order is delivered to the Contractor, and for any further period to which the parties may agree. The order shall be specifically identified as a stop-work order issued under this clause.

Upon receipt of the order, the Contractor shall immediately comply with its terms and take all reasonable steps to minimize the incurrence of costs allocable to the work covered by the order during the period of work stoppage. Within a period of 90 days after a stop-work is delivered to the Contractor, or within any extension of that period to which the parties shall have agreed, the Contracting Officer shall either-

(1) Cancel the stop-work order; or

(2) Terminate the work covered by the order as provided in the Default, or the Termination for Convenience, clause of this contract.

(b) If a stop-work order issued under this clause is canceled or the period of the order or any extension thereof expires, the Contractor shall resume work. The Contracting Officer shall make an equitable adjustment in the delivery schedule or contract price, or both, and the contract shall be modified, in writing, accordingly, if-

(1) The stop-work order results in an increase in the time required for, or in the Contractor's cost properly allocable to, the performance of any part of this contract; and

(2) The Contractor asserts its right to the adjustment within 30 days after the end of the period of work stoppage; provided that, if the Contracting Officer decides the facts justify the action, the Contracting Officer may receive and act upon the claim submitted at any time before final payment under this contract.

(c) If a stop-work order is not canceled and the work covered by the order is terminated for the convenience of the NAFI, the Contracting Officer shall allow reasonable costs resulting from the stop-work order in arriving at the termination settlement.

(d) If a stop-work order is not canceled and the work covered by the order is terminated for default, the Contracting Officer shall allow, by equitable adjustment or otherwise, reasonable costs resulting from the stop-work order.

SECTION G – CONTRACT ADMINISTRATION DATA:

G-1. Contracting Officer’s Representative (COR): The Contracting Officer may designate and authorize an individual to act as COR for this contract. Such COR as appointed will be specifically designated by letter from the Contracting Officer. The COR will represent the Contracting Officer in the technical phases of the work. The COR will not be authorized to issue Change Orders, Supplemental Agreements, or direct contract performance contrary to the provisions of the contract. Only the Contracting Officer will make changes in the scope of work, and that will be done by a properly executed modification.

G-2. Record and Reporting Procedures:

a. The Concessionaire shall keep and maintain for the duration of the contract all financial records to include monthly profit/loss statements, monthly commissary and NAF Central Storeroom purchases, daily cash register receipts, health certificates for employees, sanitation inspections and any other documents necessary for good business practices. The Concessionaire shall provide a system, acceptable to the NAFI, that ensures financial records and reports are complete, true and accurate.

b. The NAFI has the authority to audit or inspect (or to have audited or inspected) the records, premises, and operations of the Concessionaire for the purpose of ensuring contract compliance.

c. The Concessionaire shall provide the NAFI on a monthly basis, but NLT the 10th of the succeeding month, a copy of the profit/loss statement. Activity reports with supporting documents (bank deposit slips, food & beverage purchases, etc.) will be turned in daily. The Concessionaire shall coordinate with the COR on all corrections as a result of food facility evaluation inspections.

G-3. Sales Accounting Procedures:

a. Personal checks shall be accepted. Valid Master Cards and VISA cards will be honored for charge sale transitions. Korean Won or US dollars will be accepted as cash payment. The contractor shall use the Military Banking Facility exchange rate for Won to Dollars provided on all business days.

b. The Concessionaire shall ensure that deposits are made if cash funds reach more than $2,500 in US dollars or Won per day to prevent any large loss of money.

G-4. Cashier Operations:

a. The Concessionaire shall keep complete and accurate records of all transactions.

b. The Concessionaire shall be responsible for the training of all cashiers, cooks and other food service employees. This training along with funds protection and Anti-Robbery procedures will be given by the COR to new employees when requested: This training should be recorded in the employee personnel records.

c. Daily change funds and banking shall be the responsibility of the Concessionaire.

d. Pre-numbered sales forms/slips will be approved by the COR.

G-5. Payment Procedures:

a. Payment to the Concessionaire will be made by the 15th of the succeeding month.

G-6. Liabilities for Taxes and Limitations:

The Concessionaire bears sole liability for taxes applicable to the property, income and transactions of the Concessionaire.

SECTION H – SPECIAL CONTRACT REQUIREMENTS:

H-1. Authorized Patrons:

The Concessionaire shall render service to authorized Status of Forces Agreement (SOFA) status patrons and guests, host-country military/civilian personnel authorized base access, and Korean employees of Daegu Air Base.

H-2. Restrictions: The Concessionaire shall not:

a. Sell or remove property, supplies, or consumables owned by the NAFI

b. Sublet the premises, assign to another the concession or the conducting thereof

c. Subcontract with another to perform portions or this entire contract

d. Loan money to or borrow money from customers, Concessionaire employees or personnel of

Daegu AB.

e. Take orders for, deal in, permit to be dealt in, or otherwise have on the premises, food products or beverages which do not satisfy the sanitation and fitness standards of the US Armed Forces.

f. Obtain food, beverages, furnishings, equipment or supply items from sources other than authorized unless specifically allowed in this contract.

g. Sell merchandise for other than US or Korean currency.

H-3. Risk of Loss:

The Concessionaire assumes the risk of loss or damages from any cause whatsoever to its stock, equipment, fixtures and property. The Liability and Security Clause does not apply to said items.

H-4. Utilities:

a. The Concessionaire shall be furnished required utilities without charge.

b. The NAFI will provide one (1) reimbursable Class A telephone in building #400, for use by the Concessionaire. In the event class A telephones are not available, the contract shall be modified removing such a telephone from the contract. The Concessionaire shall replace such phones at its own cost. Removal of the NAFI-furnished telephone shall not relieve/excuse the Concessionaire from satisfactorily performing under this contract.

H-5. Signs:

The Concessionaire shall provide sign boards and post them in conspicuous places. Signs shall be approved by the COR prior to posting and include the following information:

a. No Smoking.

b. Emergency Contact Information.

c. Hours of Operation.

d. Menu Items and Prices.

H-6. Indebtedness:

The Concessionaire shall pay promptly in accordance with the terms in G-4 any indebtedness incurred in connection with the performance of this contract.

H-7. Personnel:

a. Qualification of Employees. The Concessionaire shall provide a sufficient number of qualified employees who possess valid health certificates issued by the Ministry of Health and Welfare, Republic of Korea. For the efficient performance of this contract, employees shall be subject to a physical examination and immunizations at the base clinic prior to and during the performance of the contract at no charge to the employees or Concessionaire.

b. The Concessionaire shall procure and maintain, at its own cost, a distinctive uniform, and shall require customer-contact employees to wear the uniform throughout the hours of operation. All uniforms must be maintained in good condition. A name tag is to be worn by all customer-contact employees, including the Concessionaire on-site manager.

c. The Concessionaire and employees are subject to security clearance procedures and shall obtain installation access and permits as provided for in installation regulations. The Requiring Activity (RA) will provide a copy of the security regulations to the Concessionaire. The Contracting Officer Representative (COR) will accomplish initial processing forms required to obtain installation access.

d. The Concessionaire is responsible for supervision over its employees to ensure their actions are in accordance with the terms of this contract and for handling problems that may arise in this operation. If a customer problem cannot be resolved between the Concessionaire and the customer, the Concessionaire shall contact the COR immediately.

e. The Concessionaire’s customer-contact employees shall have a working knowledge of the English language, be well groomed, be courteous and provide efficient customer service.

f. The Concessionaire employees shall be permitted to consume or purchase alcoholic beverages of wine and beer in the Bowling Center Recreational Lounge and Suwon Recreation Center when off-duty (upon written approval an additional payment if the COR allows alcoholic beverages to be sold).

g. The Concessionaire shall provide proof to the COR that the facility manager has a minimum of 4 years’ experience in a full service coffee shop operation, consisting of a working knowledge of all aspects of a full service coffee shop operation to the NAFI for verification prior to the proposed manager assuming his/her duties.

h. Personnel must have knowledge and skill to order, receive, handle, prepare and serve food in accordance with 607 MMS/Services COR and Medical Staff.

H-8. Internal Controls:

a. The Concessionaire shall keep a complete and accurate account of concession transactions and maintain methods of internal controls.

b. The Concessionaire shall comply with proper cash handling procedures and Anti-Robbery Directives of the base.

H-9. Maintenance:

a. The Concessionaire shall keep the premises clean, orderly and perform regular housekeeping to the satisfaction of the COR. The Concessionaire shall commercially clean the carpet on a semiannual basis. The Concessionaire shall comply with installation fire, sanitation and safety regulations and shall take prompt corrective action on reports of violations thereof.

b. The Concessionaire shall make no alterations to the building without the consent of the COR.

c. The Concessionaire is responsible for Government-furnished property (GFP). This equipment shall be clean and in working condition. The Concessionaire shall repair and do routine maintenance as needed.

d. GFP that is not repairable will be replaced by the NAFI.

H-10. Supplies and Inventory:

a. The Concessionaire shall furnish, at its expense, tools of the trade and/or supplies for the efficient operation of the activity, except for those stated herein to be supplied by the NAFI, as stated in the attached property list (NAFI Furnished Property List, Attachment #J-1).

b. The NAFI will furnish sufficient quantities of utensils, pots and pans, tablecloths and other accessories as an initial issue. Cost of replacement of initial issue items shall be borne by the Concessionaire and replacement items shall be of equal quality of initial issued items and shall meet the NAFI’s approval.

c. A separate physical inventory will be taken of all NAFI and Government-owned supplies at the time that the Concessionaire occupies the premises and those physical inventories will be taken annually thereafter and on the final day of contract performance.

H-11. Equipment, Furniture and Fixtures:

a. The Concessionaire shall perform routine preventive maintenance to include procurement of spare parts and labor and keep the equipment, furniture and fixtures in a clean and sanitary condition; exercise reasonable care to secure and protect such GFP, furniture and fixtures; and shall be liable for damage to or loss of GFP, furniture and fixtures.

b. The Concessionaire may, with concurrence by the NAFI, furnish Concessionaire-furnished equipment (CFE), furniture and fixtures. The CFE, furniture and fixtures shall comply with applicable base fire, sanitation and safety regulations.

c. Separate physical inventories will be taken of GFP, furniture and fixtures at the time that the Concessionaire occupies the premises. Physical inventories will be taken every six (6) months thereafter and on the final day of contract performance.

H-12. Menu Prices:

a. The Concessionaire is required to maintain menu cost cards on each menu item indicating the food cost and menu price. Cost cards shall be reviewed and approved periodically by the NAFI, but not less than once every twelve (12) months.

b. The Concessionaire is required to requisition all resalable food products from sources approved by the Base Public Health Office.

c. Prices may be re-adjusted during the term of the contract if there is an increase or decrease of 10% in the cost of goods lasting in excess of 15 calendar days. The Concessionaire shall provide the COR with cost of goods documentation for approval of menu price increase(s). The basis for such an increase would be as an example, the increase cost of commissary food items.

d. The Concessionaire shall be responsible for printing a takeout menu and an a la carte menu.

The Concessionaire shall use the menu and prices provided in this contract; however, the Concessionaire may add or delete items from the menu with approval by the COR.

e. All menu prices will be set. All menus and price changes will be approved by the COR before going into use.

H-13. Insurance:

a. The Concessionaire shall provide and maintain at its own cost and expense an insurance policy acceptable to the NAFI covering the minimum requirements as stated below. The Concessionaire shall furnish the NAFI and Contracting Officer with certificates of insurance evidencing that such insurance is in effect, prior to beginning performance. Not less than ten (10) days prior to notice shall be given to the NAFI and the Contracting Officer by the Concessionaire’s insurer in the event of modification, cancellation or non-renewability of the insurance coverage. Insurance contracts shall name the Concessionaire, the NAFI and the United States of America as co-insured parties and shall contain a severability of interest clause with respect to claims, suits, judgments, costs, charges and expenses arising out of or in connection with loss, damage or injury resulting from the negligence or other fault of the Concessionaire, its agents, representatives and employees.

b. Workmen’s Compensation Insurance and Employer’s Liability Insurance: Aside from State or Host Country requirements as to the minimum number of employees, the Concessionaire’s insurance coverage hereunder shall comply with the requirements and benefits established by the Ministry of Finance of the Republic of Korea.

c. Comprehensive General Liability Insurance in minimum limits of fifty thousand (50,000) dollars for injury or death of each person, one hundred thousand (100,000) dollars for each accident or occurrence for property damage liability, and one hundred thousand (100,000) dollars for each accident or occurrence for injury or death.

H-14 TAX EXEMPTION, CUSTOMS, REPUBLIC OF KOREA

(a) EXEMPTION: This clause is in implementation of Article IX of the Status of Forces Agreement between the Republic of Korea and the United States of America granting contractors exemption from Republic of Korea customs duties and other such charges. At the time this contract is awarded, the Contractor shall certify to the Contracting Officer that all materials, supplies, and equipment to be imported for the contract have been proposed to the Government exclusive of customs duties and other such charges and; further, that the contract price includes no customs duty whatsoever. It shall indicate to the Contracting Officer the total amount of customs duties excluded from the contract price. The USFK Contracting Officer will verify the amount of customs duty that would otherwise be applicable to the contract and will issue USFK Form(s) 75 to the Contractor. The contractor will submit the original USFK Form 75 to the governing ROK Customs Office at the time of import declaration. The Chief of the Customs Office will review the USFK Form 75 and will exempt the Contractor from customs duties and other such charges. During the review process the customs office will post on the Contractor's Import Permit the anticipated submission date for a completed USFK Form 76, which will be prepared by the Contracting Officer and given to the contractor immediately after contract performance. The Contractor will submit the original USFK Form 76 to the governing ROK Customs Office no later than the date posted on the Import Permit. If the USFK Form 76 is not submitted by the anticipated date, the ROK Customs Office will immediately collect the customs duties and other such charges previously exempted.

(b) If for any reason the Contractor has paid customs duties on materials, supplies, or equipment prior to award of this contract and desires to use such materials, supplies, or equipment for performance of this contract, the Contractor must exclude such duties from the contract price and may obtain refund of such previously paid duties by submitting a completed USFK Form 76 to the governing ROK Customs Office.

(c) Refund: Any Contractor that requires refund of customs duties and other such charges on items used for USFK contracts, can claim refund of such charges by submitting a copy of a completed USFK Form 76 to the governing ROK Customs Office

(d) This entire clause is inapplicable to contracts, or any portions of contracts, funded by the Republic of Korea.

H-15 TAX EXEMPTION, SPECIAL EXCISE TAX, REPUBLIC OF KOREA

This clause is in implementation of Article XVI of the Status of Forces Agreement between the Republic of Korea and the United States, granting Contractors exemption from Republic of Korea Special Excise Taxes. At the time this contract is awarded the Contractor shall indicate to the Contracting Officer which items will be purchased for the contract that are subject to Special Excise Tax. It shall indicate the name of the item, the number of units to be purchased, the cost per unit without tax, the percentage of tax, the tax amount per unit, the total tax, and the manufacturer of the item. The Contracting Officer will verify the reasonableness of the quantities claimed and ensure that the Contractor has certified that the contract price excludes Special Excise Tax on those items subject to the tax. The contractor shall purchase the special-excise-taxed items from the manufacturer, tax-inclusive. For construction and single-delivery type supply and service contracts, the contractor shall employ the following procedure: At the time it purchases the items it shall present the manufacturer with a notification letter requesting refund of the Special Excise Tax. (Copies of this letter can be obtained from the USACCK Contracting Officer.) The manufacturer will endorse the letter to the manufacturer's District Tax Office which will make refund to the manufacturer. The manufacturer will make subsequent refund to the Contractor. Requests for refund under requirements-type contracts will be submitted monthly and will be accompanied by copies of the USFK delivery orders issue

H-16 TAX EXEMPTION, VALUE ADDED TAX, REPUBLIC OF KOREA

This clause implements Article XVI of the Status of Forces Agreement between the Republic of Korea and the United States of America, which exempts contractors from paying the Republic of Korea Value-Added Taxes. When the contractor submits an offer, it shall certify to the Contracting Officer that all the costs in the offer will be exclusive of any Value-Added Tax; and further, that the proposed contract price includes no Value-Added Tax. The contractor shall also indicate the amount and type of Value-Added Taxes excluded from the contract price. If supplies and/or services which the contractor purchases for this contract include Value-Added Taxes, it can obtain a full refund for the amount of the Value-Added Tax by submitting to the ROK District Tax Office tax invoices which the contractor receives when it purchases materials and/or services for this contract. The contractor must submit a copy of the USFK contract with its first tax invoice submission. Subsequent tax invoice submissions must be accompanied by a letter which references the USFK contract submitted with the first tax invoice submission.

H-17 TAX EXEMPTION, POL PRODUCTS, REPUBLIC OF KOREA

(a) This clause is in implementation of Article XVI of the Status of Forces Agreement between the Republic of Korea and the United States of America, granting Contractors exemption from Republic of Korea taxes for petroleum products (POL) utilized on USFK acquisitions in the Republic of Korea.

At the time this contract is awarded, the Contractor shall make a final nomination in writing of its point of purchase for POL products to be used on this contract. If the Contractor intends to purchase directly from an oil company refinery, it may nominate any of the three ROK oil companies below which have agreed to sell to Contractor FOB refinery at the SET-exempt price.

List of Oil Companies and their Respective Tax Offices

(1) Hyundai Oil Refinery Co., Ltd.: Dong-Inchon District Tax Office ATTN: POL Tax Administrator Inchon City, Korea

(2) SK Corporation: Ulsan District Tax Office ATTN: POL Tax Administrator Ulsan City, Kyongsan Nam Do, Korea

(3) LG Caltex Company: Yosu District Tax Office ATTN: POL Tax Administrator Yosu City, Chonla Nam Do, Korea

(b) If the contractor instead intends to purchase its POL products from an individual gasoline station, the Contracting Officer will advise the contractor as to which individual gasoline stations will sell to it at the SET-exempt price. The contractor shall specify from which of those stations it will purchase. In addition to specifying the oil company/gas station, the Contractor shall state the estimated quantity and the amount of POL to be purchased from each refinery/gas station. The USFK Contracting Officer will verify the reasonableness of the amounts of POL products claimed for use on the contract and, based on this verification, the USFK Responsible Officer will issue USFK POL Tax Exemption Coupons. If the Contractor wishes to purchase from an individual gas station, it will be required to make advance payment for the amount of POL covered by the coupons. Advance payment will be at the SET-exempt price and will be made to the gas station(s) previously nominated. Representatives from the nominated gas station(s) shall be present at the issuing session. They will collect the advance payments, mark “paid” on the back of the original copy of the coupons issued, and provide the purchasing Contractor with tax invoices to be used by the Contractor to obtain SET refund from its governing ROK District Tax Office. All coupons for construction contracts will be issued at the time of award. Coupons for requirements-type contracts will be issued on a delivery order increment basis or on a monthly basis. Pre-selected oil company refineries will sell their POL products at the SET-exempted prices upon presentation of the coupons. Individual gas stations, which have previously collected

POL payment in advance will accept the pre-paid USFK POL Tax Exemption Coupons from contractors and will provide the POL amounts reflected on tendered coupons without any further charge.

SECTION I - CONTRACT CLAUSES

I-1. DEFINITIONS (NOV 2004) (BI-001)

(a) "Head of the agency" (also called "agency head"), including any deputy or assistant chief official of the agency; and the term "authorized representative" means any person, persons, or board (other than the Contracting Officer) authorized to act for the head of the agency or Secretary.

(b) "Contracting Officer" means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the Contracting Officer acting within the limits of their authority as delegated by the Contracting Officer.

(c) "Commercial Item" means a product or a service (e.g., items, supplies, materials, components) sold or traded to the general public in the course of conducting normal business operations at established catalog or market prices.

(d) Except as otherwise provided in this contract, the term "subcontracts" includes, but is not limited to, purchase orders and changes and modifications to purchase orders under this contract.

(End of clause)

I-2. NONAPPROPRIATED FUND INSTRUMENTALITY (NOV 2004) (BI-002)

The Nonappropriated Fund Instrumentality (NAFI), which is party to this contract, is a nonappropriated fund instrumentality of the Department of the Army. NO APPROPRIATED

FUNDS OF THE UNITED STATES SHALL BECOME DUE OR BE PAID THE CONTRACTOR

BY REASON OF THIS CONTRACT. This contract is NOT subject to The Contract Disputes Act of 1978.

I-3. INVOICES (APR 2011) (BI-010)

I-4. EXAMINATION OF RECORDS (NOV 2005) (BI-011)

(a) The Contractor agrees that the Contracting Officer or the Contracting Officer's duly authorized representative shall have the right to examine and audit the books and records of the Contractor directly pertaining to the contract during the period of the contract and until the expiration of three years after the final payment under the contract.

(b) The Contractor agrees to include the clause in (a) above, in all subcontracts.

(End of clause)

I-5. INSURANCE-WORK ON A GOVERNMENT INSTALLATION (NOV 2005) (BI-012)

(a) The Contractor shall, at its own expense, provide and maintain during the entire performance period of this contract at least the kinds and minimum amounts of insurance required in the

Schedule or elsewhere in the contract, in no event shall the amount be lesser than the minimum requirements established by applicable state and local regulations and laws.

(b) Before commencing work under this contract, the Contractor shall certify to the Contracting Officer in writing that the required insurance has been obtained. The policies evidencing required insurance shall contain an endorsement to the effect that any cancellation or any material change adversely affecting the NAFI's interest shall not be effective (1) for such period as the laws of the States in which the contract is to be performed prescribed at (2) until 30 days after the insurer of the Contractor gives written notice to the Contracting Officer, whichever period is longer.

(c) The Contractor shall insert the substance of the clause, including this paragraph (c), in subcontracts under the contract that requires a work on a Government installation and/or other NAFI location and shall require subcontractors to provide and maintain the insurance required in the Schedule or elsewhere in the contract. At least five days before entry of each such subcontractor's personnel on the Government installation, the Contractor shall furnish (or ensure that there has been furnished) to the Contracting Officer a current certificate of insurance meeting the requirements of paragraph (b) above, for each subcontractor.

(End of clause)

I-6. ORDER OF PRECEDENCE (NOV 2004) (BI-013)

Any inconsistency in this solicitation or contract shall be resolved by giving precedence in the following order:

(a) The Schedule (excluding the specifications);

(b) Representations and other instructions;

(c) Contract clauses;

(d) Other documents, exhibits, and attachments; and

(e) The specifications.

(End of clause)

I-7. OPTION TO EXTEND SERVICES (NOV 2004) (BI-021)

The NAFI may require continued performance of any services within the limits and at the rates specified in the contract. These rates may be adjusted only as a result of revisions to prevailing labor rates provided by the Secretary of Labor. The option provision may be exercised more than once, but the total extension of performance hereunder shall not exceed 6 months. The Contracting Officer may exercise the option by written notice to the Contractor within the period specified in the Schedule.

(End of clause)

I-8. OPTION TO EXTEND THE TERM OF THE CONTRACT (NOV 2004) (BI-022)

(a) The NAFI may extend the term of this contract by written notice to the Contractor within the period of the Contract; provided, that the NAFI shall give the Contractor a preliminary written notice of its intent to extend at least 60 days before the contract expires. The preliminary notice does not commit the NAFI to an extension.

(b) If the NAFI exercises this option, the extended contract shall be considered to include this option clause.

(c) The total duration of this contract, including the exercise of any options under this clause, shall not exceed five (5) years.

(End of clause)

I-9. WASTE REDUCTION (NOV 2004) (BI-047)

(a) Definitions. As used in this clause-

"Recycling" means the series of activities, including collection, separation, and processing, by which products or other materials are recovered from the solid waste stream for use in the form of raw materials in the manufacture of products other than fuel for producing heat or power by combustion.

"Waste prevention means any change in the design, manufacturing, purchase, or use of materials or products (including packaging) to reduce their amount or toxicity before they are discarded. Waste prevention also refers to the reuse of products or materials.

"Waste reduction" means preventing or decreasing the amount of waste being generated through waste prevention, recycling, or purchasing recycled and environmentally preferable products.

(b) Consistent with the requirements of Section 701 of Executive Order 13101, the Contractor shall establish a program to promote cost-effective waste reduction in all operations and facilities covered by this contract. The Contractor's programs shall comply with applicable Federal, State, and local requirements, specifically including Section 6002 of the Resource Conservation and Recovery Act (42 U.S.C. 6962, et seq.) and implementing regulations (40 CFR part 247).

I-10. PRIVACY ACT NOTIFICATION (NOV 2004) (BI-049)

I-11. PRIVACY ACT (NOV 2004) (BI-050)

I-12. RESTRICTION ON CERTAIN FOREIGN PURCHASES (DEC 2010) (BI-055)

(a) Except as authorized by the Office of Foreign Assets Control (OFAC) in the Department of the Treasury, the Contractor shall not acquire, for use in the performance of this contract, any supplies or services if any proclamation, Executive order, or statute administered by OFAC, or if OFAC's implementing regulations at 31 CFR Chapter V, would prohibit such a transaction by a person subject to the jurisdiction of the United States.

(b) Except as authorized by OFAC, most transactions involving Cuba, Iran, and Sudan are prohibited, as are most imports from Burma or North Korea, into the United States or its outlying areas. Lists of entities and individuals subject to economic sanctions are included in OFAC's List of Specially Designated Nationals and Blocked Persons at http://www.treas.gov/offices/enforcement/ofac/sdn/. More information about these restrictions, as well as updates, is available in the OFAC's regulations at 31 CFR Chapter V and/or on OFAC's website at http://www.treas.gov/offices/enforcement/ofac. (c) The Contractor shall insert this clause, including this paragraph (c), in all subcontracts.

(End of clause)

I-13. INCONSISTENCY BETWEEN ENGLISH VERSION AND TRANSLATION OF CONTRACT

(NOV 2004) (BI-056)

In the event of inconsistency between any terms of this contract and any translation thereof into another language, the English language meaning shall control.

I-14. TAXES (NOV 2004) (BI-067)

(a) Except as may be otherwise provided in this contract, the contract price includes all taxes, duties, or other public charges in effect and applicable to this contract on the contract date, except any tax, duty or other public charge which by law, regulation or governmental agreement is not applicable to expenditures made by the NAFI or on its behalf: or any tax, duty, or other public charge from which the Contractor, or any subcontractor hereunder, is exempt by law, regulation or otherwise. If any such tax, duty, or other public charge has been included in the contract price, through error or otherwise, the contract price shall be correspondingly reduced.

(b) If for any reason, after the contract date of execution, the Contractor or subcontractor is relieved in whole or in part from the payment or the burden of any tax, duty or other public charge included in the contract price, the contract price shall be correspondingly reduced; or if the Contractor or a subcontractor is required to pay in whole or in part any tax, duty, or other public charge which was not included in the contract price and which was not applicable at the contract date of execution the contract price shall be correspondingly increased.

(c) No adjustment of less than $250 shall be made in the contract price pursuant to this clause.

(d) With respect to foreign taxes, NAFI's located in foreign countries will not pay to nor collect for any foreign country or political subdivision any tax unless the United States has consented to levy collection by treaty, convention, or executive agreement.

(End of clause)

I-15. EXTRAS (NOV 2004) (BI-073)

Except as otherwise provided in this contract, no payment for extras shall be made unless the Contracting Officer has authorized such extras and the price in writing.

(End of clause)

I-16. DISPUTES (NOV 2004) (BI-079)

(a) This contract is subject to the rules and regulations promulgated by the Secretary of Defense and Secretary of the Army for NAF contracting.

(b) The contract is not subject to the Contract Disputes Act of 1978 (41 U.S.C. 60I-613).

(c) All disputes arising under or relating to this contract shall be resolved under this clause.

(d) "Claims," as used in this clause, means a written demand or written assertion by one of the contracting parties seeking, as a matter of right, the payment of money in a sum certain, the adjustment or interpretation of contract forms, or other relief arising under or relating to this contract. A claim arising under a contract, unlike a claim relating to that contract, is a claim that can be resolved under a contract clause that provides for the relief sought by the claimant. A voucher, invoice, or other routine request for payment that is not in dispute when submitted is not a claim under this clause. The submission may be converted to a claim under this clause, by complying with the submission requirements of this clause. if it is disputed either as to liability or amount or is not acted upon in a reasonable time.

(e)(1) A claim by the Contractor shall be made in writing and submitted to the Contracting Officer for a written decision.