DDCT_Pre-Proposal_Slides_for_FBO.pptx

Chemical Management Services (CMS) DLA Distribution Corpus Christi, TX Pre- Proposal Conference

SP3300-17-R-5009

21 June 2017

DEFENSE LOGISTICS AGENCY

AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

AGENDA

Administrative Introductions Breaks Rules of Engagement Timeline for PPC/Site Visit Solicitation Review Ms. Margaret Ross, Contracting Officer Mr. Eric Jensen, Acquisition Project Officer

Deliver the right solution on time, every time

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Administrative Remarks The written information contained in the solicitation and amendments overrules and supersedes any information presented at this conference which conflicts with the written documentation.

Questions will not be accepted during or upon conclusion of the solicitation overview Attendees are asked to submit their questions to the Acquisition Specialist (Eric Berns at eric.berns@dla.mil) Questions and Answers will be posted to FedBizOpps in an amendment

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Solicitation Schedule Solicitation Released: 15 June 2017 Questions are due 29 June 2017 Submit to Eric Berns, Acquisition Specialist via email: eric.berns@dla.mil Date and hour for receipt of offers is 17 July 2017 at 1:00 PM Eastern Local Time Hard copy offers must be received at the office provided in Section L-18 of the solicitation Electronic submission (email and/or file sharing) also required by due date/time provided in Section L-18 of RFP.

Offerors shall sign and submit amendments to the solicitation with their proposals Extension of the closing date for the solicitation is not anticipated

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section A Solicitation, Offer, and Award Key Points Ensure the Documents (SF33, SF30, proposal) are signed The Offeror is reminded that the Government reserves the right to award this effort based on initial proposal, as received, without discussions.

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section B Supplies or Services and Price/Costs CLIN X001: Firm Fixed Price (FFP) Labor IAW Attachment J.1 (PWS). Further broken down into subclins for the base year: 0001AA (4 month phase-in), 0001AB (8 month full performance) CLIN X002: Cost Plus Fixed Fee (CPFF) Procurement of HM CLIN X003: Cost Reimbursement, No Fee Support Costs for CLINs X001 and X002 CLIN X003AA Material Support and Operations Supplies CLIN X003AB MHE and MHE Maintenance CLIN X003AC Travel and Training CLIN X004: NSP, Reports/CDRLs IAW PWS Section C-6.4

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section B Supplies or Services and Price/Costs CLIN Structure-Base Year

0001AA Phase In Period 4 MO $___________ $_____________

0001AB Full Performance 8 MO $___________ $_____________

Cost Plus Fixed Fee (CPFF) 0002 Procurement of Hazardous Materials

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section B Supplies or Services and Price/Costs Cost Reimbursement (No FEE)

0003 Support Costs for CLINs 0001and 0002

0003AA Material Support and Operations Supplies

0003AB MHE and MHE Maintenance

0003AC Travel and Training

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section B Supplies or Services and Price/Costs

0004 Reports/CDRLs IAW PWS Section C-6.4 1 LOT NSP

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section B Supplies or Services and Price/Costs Key Points B1 One definitive contract consisting of Firm-Fixed-Price (FFP), Cost-Plus-Fixed-Fee (CPFF), Cost Reimbursement, No Fee and Not Separately Priced (NSP) line items.

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section B Supplies or Services and Price/Costs Key Points B2 Pricing Instructions FIRM FIXED PRICE ARRANGEMENT – CLINs X001: shall be paid on firm fixed price per month basis.

COST–PLUS-FIXED-FEE (CPFF) PRICING ARANGEMENT – CLINs X002: Costs for Hazardous Material (HM) shall be reimbursed at actual cost plus applicable indirect costs and a fee.

Solicitation Instructions: Offerors shall apply ONLY their applicable indirect rate(s) and fixed fee to the Government provided estimated cost to arrive at the Total Estimated Cost, Plus Fixed Fee amount. In accordance with FAR 15.404-4(c)(4)(i)(C), the fixed fee shall not exceed 10% of the contract’s estimated cost, excluding fee. The contractor shall invoice 1/12th of the amount of the fixed fee each month.

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section B Supplies or Services and Price/Costs Key Points B2 Pricing Instructions Cont.

COST REIMBURSEMENT (NO FEE) PRICING ARRANGEMENT - CLINs X003: Offerors shall apply their applicable indirect rate to the estimated cost to arrive at the Not-To-Exceed (NTE) amount. The Contractor shall be reimbursed for actual cost and indirect rate as proposed only.

Solicitation Instructions for CLINs X003:

Offeror shall enter the Government provided Estimated Cost located in Section L. Offerors shall I nsert and apply their applicable indirect rate supported by their accounting system to this estimated cost to arrive at the NTE. Offerors shall enter the applicable indirect rate dollar amount rates and the NTE in Section B. No fee shall be applied.

CLINS shall be invoiced in accordance with SECTION G-4, INVOICING INSTRUCTION.

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section B Supplies or Services and Price/Costs Key Points B2 Pricing Instructions Cont.

REPORTING REQUIREMENTS - CLINs X004 (NSP): Reporting requirements. Not Separately Priced (NSP). While these CLINS are not separately priced, it is anticipated and it is acceptable that the Contractor will be reimbursed for the execution of this CLIN. Costs associated with this effort shall be captured under the FFP CLINs only.

Solicitation Instructions (Totals): Offeror shall enter Total Ceiling Price for Base and each Option year and the Total Ceiling Price for the entire contract, including the Base and all Option years.

If an offeror fails to identify as part of its proposal an indirect cost rate that would otherwise be applicable to one of the support or subcontract cost items, it shall not be allowed to invoice for the indirect rate after award since the evaluation of its offer did not include that rate.

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section B Supplies or Services and Price/Costs Key Points B3 The Contractor shall not bill for materials purchased in support of CLIN’s X002 until the material has been issued to the Government. The Contractor shall comply with solicitation section B-4 for the procurement of material in support of this contract.

B4: Tailored Logistics Support Purchasing Reviews (Procurement Note)

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE DLA Distribution Corpus Christi Texas executes responsive world class distribution support of aviation repair parts for warfighters around the globe, to enable and sustain mission readiness.

Mission

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

W ARFIGHTER FIRST!

E MPLOY PROCESS EXCELLENCE!

F INANCIAL STEWARDSHIP (Run it like you own it) L OYALTY and COMMITMENT to the team Y OU make the difference Vision A diverse and resilient team of professionals providing outstanding warfighter support through distribution excellence.

How do we reach this vision: WE FLY!!

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Values Integrity: Honest and Trustworthy team. Act according to moral and ethical principles Accountability: Pledge to protect national assets and provide world class support to the Warfighter Excellence: Be exceptional. Commit to hard work, dedicated to process perfection and outstanding quality Resiliency and Diversity: A tough team of distinct individuals ready to accomplish any mission Innovation: Provide creative ideas and new solutions to processes that support the warfighter

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section C - Performance Work Statement

Key points Please Read:

The entire PWS in Attachment J1 Technical Exhibits Technical Library Documents (If you are unable to open any document on FBO, please contact the Acquisition Specialist immediately).

Contract Data Requirements Lists (CDRLs) identified in Section J - Attachment J.1 Paragraph 6.4 Mandatory Reports/Plans

LOOK OUT FOR CHANGES

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE For those companies that have submitted proposals to us in the past, I’d like to caution you that there are many changes to this PWS from the last solicitation.

For those that have not submitted proposals to us in the past, please ensure you read the entire PWS to include Technical Exhibits and CDRLs.

I will highlight the major points.

Many requirements, specifically reporting requirements, in the PWS have been moved to the CDRLs.

Section C-1.1 Scope The Contractor shall provide CMS support at DLA Distribution Corpus Christi, TX.

CMS support includes 3PL end-to-end supply chain functions and processes and effective inventory management in support of DLA and the Corpus Christi Army Depot (CCAD) industrial maintenance mission.

Section C - Performance Work Statement

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Scope continued:

Contractor Major Function Areas Point of Sales (POS) Transactions Track HM using the Hazardous Materials Management System (HMMS) HM Procurement Material Management Receiving, Storage and Issue of HM Management of Waste Generator Collection Points

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WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Section C-1.2.2 Places of Performance Distribution Corpus Christi, Texas located on Naval Air Station Corpus Christi (NASCC) Receiving Point Bldg 27 Ten (10) Tin Outdoor Sheds for storage Seventeen (17) Hazardous Material Distribution Support Centers

Section C-1.3 Travel Contractor personnel may be required to travel in support of this contract.

The Contractor shall ensure that all travel is IAW Joint Travel Regulations (JTR). Reimbursement for travel costs will be limited to allowable expenses for Government directed travel. The Contractor shall be responsible for any costs incurred as a result of authorized travel which are in excess of that allowed under Federal Acquisition Regulation (FAR) Part 31.205-46 and the appropriate regulations therein.

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Section C-1.4.2 Key Personnel Project Manager - will have full authority to act for the Contractor on all matters relating to Contractor performance. The Program Manager shall possess experience commensurate with the requirements of the contract preferably in CMS management, end-to-end supply chain management, logistics analysis, DoD financial processes, regional and global supply policies; and managing projects, contracts, funds, and resources. The PM shall have a minimum of five years’ experience in the field of CMS and supply chain management, and extensive knowledge and expertise of environmental program management; and three years’ experience using a HM Tracking System equivalent to HMMS. A wide degree of creativity and latitude is expected.

Third Party Logistics Project Manager (3PL PM) - will plan and execute specific Supply Chain Management functions, DOD logistics policies and initiatives, and perform financial management procedures. The 3PL PM shall manage and oversee overall supply chain operations including purchasing and inventory of HM, as well as selection of vendors. . The 3PL PM shall be authorized to act on behalf of the Contractor during the PM’s absence. The 3PL PM shall have a minimum of five years’ experience in the field of CMS management and end-to-end supply chain management, and extensive experience with environmental program management; and three years’ experience using a HM Tracking System equivalent to HMMS.

Section C Performance Work Statement

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Section C-1.4.2 Key Personnel Environmental, Safety, and Occupational Health (ESOH) Compliance Specialist - serves as the specialist to conduct required environmental and safety analysis and observations and supports the Site Manager, and KO or designee with ESOH surveillances conducted by local Environmental, Safety, or Occupational Health offices. The Specialist shall evaluate inspection results, develop corrective action plans as needed, and make recommendations as necessary for maintaining compliance with regulatory agencies. Requires extensive experience in the field or in a related area. The Specialist shall have a minimum of five years’ experience in the field of CMS management and environmental and safety program management, and three years’ experience using a HM Tracking System equivalent to HMMS.

Site Manager - The Contractor shall designate a Site Manager for each location where services are to be performed. The Site Manager shall have full authority to act for the Contractor on all matters relating to contract performance. The Site Manager shall perform management, organizational, business and technical leadership and services to ensure successful completion of tasks on a timely basis and within budget. The Site Manager shall have the authority to resolve problems, allocate resources, and manage personnel. The Site Manager shall possess a minimum of five years’ experience in CMS management, end-to-end supply chain management, warehousing, inventory management, and financial management and three years’ experience using a HM Tracking System equivalent to HMMS.

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Section C-1.4.3 Non Key Personnel Logistics Analyst Material Coordinator Material Expeditor Quality Control Specialist Stock Clerk Supply Technician Warehouse Specialist (HM/HW) Warehouse Supervisor (HM/HW) Buyer II

Contractor is not prohibited from proposing different labor categories, but proposal should clearly identify the duties with the labor category.

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Section C-1.5 Security Section C-1.6 Environmental, Safety, and Occupational Health Responsible for own safety and health programs and shall address Management Leadership and Employee Involvement Worksite Analysis Hazard prevention Safety and Health Training Section C-1.7 Quality Control Plan The Contractor shall provide a site specific QCP compliant with FAR 52.246-4(b), “Inspection of Services-Fixed Price”. The Contractor’s quality system shall demonstrate its prevention-based outlook by meeting the objectives throughout all areas of performance to include demand planning and forecasting, data management, HM procurement, order fulfillment, invoicing, receipt, storage, and issue, delivery, issue center operations, locker and cart management, and disposal preparation and all APL and non-APL requirements.

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Section C-1.8 Transition

– Not to exceed 120 days Transition Plan (CDRL A001) and Weekly Reports Required (CDRL A007) Conduct an Environmental Facilities Assessment (CDRL A003) Section C-1.8.1 Inventories of HAZMAT The successor Contractor shall perform a 100% wall to wall inventory of all Government-Owned HM jointly with the Government NLT 30 days prior to the beginning of full contract performance. The incumbent Contractor is responsible for performing any causative research as a result of these inventories and reconciling all database records in HMMS NLT 10 working days prior to the end of transition.

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE All inventory today is owned by the government. However, the new procurement the contractor owns the inventory until issued for use.

Section C-1.9 Surge, Sustainment and Disaster Recovery (SSDR) The Contractor shall perform and sustain HM support operations during contingencies and adverse situations that disrupt normal operational capabilities. (Ie: mobilizations, national emergencies, natural disasters, extreme surges in workload or any other scenario/event that potentially impedes the Contractor’s ability to perform HM related support services) SSDR Plan required IAW CDRL A009.

Section C-1.10 Preparedness Exercises The Contractor shall participate in preparedness exercises relating to security disaster preparedness and response, wartime response, national emergencies, environmental exercises, and similar preparedness exercises.

Section C-1.11 Records Management The Contractor shall retain source documents IAW DLAI 5015.01, Records Management.

Section C-1.12 Contract Transition-Out and Continuity of Service Plan A Contract Transition-Out Plan is required six (6) months prior to the end of the contract.

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Section C-2 Definitions and Acronyms Section C-3 Government Property, Systems, Training and Support Services Section C-3.1 Government Property (GP) Section C-3.1.1 Government Facilities (GF) Provided in Gov’t facilities for contractor to perform work.

Section C-3.1.2 Government Equipment (GE) GE incidental to the place of performance being made available for use in the performance of the contract requirements is set forth in TE 3.12, GE. GE is offered in place, its current condition, and is for the exclusive use by the Contractor to perform requirements of this contract. The Government will furnish preventative and corrective or remedial maintenance on GE.

Section C-3.1.3 IT Assets The Government will furnish network equipment, desktop hardware, software, and printers required to perform the requirements in the PWS

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Section C-3.2 Government Data Systems Section C-3.3 Government Training The Government will furnish and the Contractor shall complete as a minimum the training found in TE 3.3 Government Training. The contractor shall provide a quarterly status report IAW CDRL A005 Training Report.

Section C-3.4 Government-Furnished Support Services At no cost to the Contractor, the Government will furnish grounds maintenance; forms, laboratory analysis for both Government-Owned and Contractor-Owned HM; mail service, medical care when life, limb, or eyesight is jeopardized and for emergency medical.

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Section C-4 Contractor – Provided Equipment, Material, Support Services and Training Section C-4.1 General Requirements Section C-4.1.1 Contractor-Provided Equipment (CPE) Equipment to perform requirements include but are not limited to:

6K Forklift Pallet Jacks Scooter with pintle hook 1700lbs load capacity 5000lbs towing capacity Trailers for use with scooter

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Section C-4.2 Liability for GP Section C-4.3 Contractor Furnished Operational Materials Materials to perform requirements include but are not limited to:

Spill kits Stretch wrap Metal banding Absorbent pads Wooden skids and pallets Labels, ribbons, and paper for use with IT equipment Office Supplies Section C-4.4 DoD Activity Address Code (DODAAC) and Routing Identifier Code (RIC)

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Section C-4.5 Liability for GP The Contractor shall segregate any contractor owned 3PL material determined to be waste and alert the KO or designee who will alert CCAD Environmental. CCAD environmental will make arrangements for pickup and disposal. The Contractor shall be responsible for paying any costs associated with the disposal, such as a Navy Air Station Corpus Christi (NASCC) surcharge.

Section C-4.6 Contractor Training The Contractor shall provide the training required in TE 4.1 Contractor-Furnished Training, and any other training that is not identified as Government-Furnished, but which may be required for Contractor personnel to comply with the contract requirements and Federal, State, and local environmental and safety regulations.

The Contractor shall provide a quarterly status report IAW CDRL A005 Training Report.

Section C-4.7 Medical Surveillance Program

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Section C-5 Specific Tasks Section C-5.1 General Requirements The Contractor shall use CMS methodology and business practices to perform HM Services support. The Contractor shall implement processes and procedures that ultimately reduce HM in the HW streams by minimizing quantities of HM purchased to support the production lines; diverting excess HM to Reuse; and identifying shelf-life items for redistribution prior to expiration.

The Contractor shall develop and submit to the KO or designee for acceptance written site specific Standard Operating Procedures (SOP) NLT 30 calendar days after full performance. (CDRL A011) The Contractor shall develop and submit a Monthly Status Report (MSR). (CDRL A012) Section C-5.1.1 Indemnification and Limitation of Liability

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Section C-5.1.2 Customer Service Plan

IAW CDRL A013

Section C-5.1.2.1 Customer Assistance

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Section C-5.2 Contractor Point of Sale System Provide an existing proven commercial Point of Sales (POS) System. Must be fully functional the 1st day after contract award. POS shall include online functionality for:

Customized menu of authorized products for visibility of 3PL HM.

Visibility of real-time status for requisitions.

Processing transactions (receipts and issues).

Generating transaction reports.

Preparing and providing receipts to customers.

Preparing invoices (DD Form 250 or equivalent). The POS must be capable of preparing invoices by customer order rolled up to a separate line item of supply by NSN or LSN. Each item of supply is identified by a different NSN/LSN and customer order. Each order/line may consist of one of more pieces (serial numbers).

Recording sales, decrementing inventory levels, and recording stock on hand to facilitate demand planning.

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Section C-5.3 Hazardous Material Management System (HMMS) The Contractor shall use the Government provided HMMS (i.e., Government’s Program of Record (POR) for the control and tracking of Contractor and Government-Owned HM and HW disposal preparation actions. HMMS provides cradle-to-grave tracking, life-cycle management, and reporting capabilities for use and disposal of HM and HW down to the individual work center, point of use, and/or artisan levels at military installations throughout DoD. The system supports HM management center concepts directed at regulating and minimizing the use of HM and controlling HW at DoD installations and support the following functions:

Dispensing HM according to units of use.

Providing a central issue point for Just-In-Time control and issue.

Providing online Material Safety Data Sheet (MSDS) or Safety Data Sheet (SDS).

Controlling HM by authorized user, zone, and task.

Waste sampling to include requests for analysis.

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Section C-5.3 HMMS continued All HM used in the performance of this contract shall be managed using HMMS. The Contractor shall properly record and maintain all HM and HW transactions in the performance of this contract using HMMS. The Contractor shall build and maintain all data and inventory records in HMMS and update the system within two (2) hours.

The Contractor shall ensure all items managed in HMMS have a valid National Stock Number (NSN), Local Stock Number (LSN) or Part Number. Open purchase items will be researched via WEBFLIS or FEDLOG to determine if an NSN has previously been assigned. If an NSN is unavailable, a unique temporary LSN will be assigned by the LMP Material Master Branch. The Contractor shall submit a request, Form 5407, to the LMP Material Master Branch” to acquire an LSN or if sufficient demand history exists to establish a permanent NSN in FLIS using DLIS procedures.

The Contractor shall obtain a copy of the manufacturer’s MSDS/SDS for all products and provide a copy of the MSDS/SDS for all new products on the approved AUL to the customer or when there is an update to an MSDS/SDS.

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Section C-5.3 HMMS continued The Contractor shall ensure physical on-hand inventory levels shall be commensurate with stock record balances ensuring a sustained 95 % database accuracy.

The Contractor shall ensure HMMS database integrity in addition to all Government MIS used in the performance of this contract. Any fraudulent manipulation of databases will be cause for termination at the discretion of the Government.

All documentation and transactional data are the property of the Government. All retained documentation shall be conveyed to the Government upon contract expiration or termination, or upon request by the KO or designee.

The Contractor shall add new line items to HMMS database within one (1) working day from the time the Contractor receives the approved AUL and product information including a copy of the MSDS/SDS. The Contractor shall record transactions NLT than COB the same day the last unit of issue was pulled for a customer or processed for disposition determination.

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Section C-5.3 HMMS continued In the event HMMS is not available (i.e., network or connectivity problems), the Contractor shall manually capture necessary data to record transactions once HMMS becomes operational. The Contractor shall continue to provide service to the customer during any power, network, or systems outages. Recovery Transactions shall be recorded in HMMS IAW timelines determined by the KO or designee. The Contractor shall develop and submit a contingency plan for continuity of performance in the event of a power, network, or systems outage. (See CDRL A014 Procedures for Continuity of Performance during Outages).

Section C-5.4 HM Procurement The Contractor shall procure all HM, see TE 5.4 HM Product List, through the Federal Supply Systems (FSS) or commercial sources, whichever is most cost effective (providing the most savings across the entire life cycle, where applicable).

The Contractor will be granted authorization by the KO to order material directly through Government supply systems. This does not relieve the Contractor of the responsibility of continuously seeking the best possible price on all HM used by DLA customers.

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Section C-5.4 HM Procurement continued The Contractor shall procure ACL/AUL/QPL approved 3PL HM in the unit of issue requested to meet operational requirements for approved customers. In situations where HM products are not available on the open market at better prices than the FSS, the Contractor has the option to order material via Military Standard Requisitioning and Issue Priority System (MILSTRIP) requisitions through the FSS.

On occasion, customer required sole source procurement may be required and shall include justification IAW FAR, Defense Federal Acquisition Regulations (DFARS), and Defense Logistics Agency Acquisition Directive (DLAD).

HM products with insufficient demand history shall be procured by the Contractor as Direct Turn Over (DTO) requisitions. The Contractor shall place DTO requisitions on purchase order within 72 hours of receipt from the customer IAW CCAD-R 200-16. The Contractor shall prepare and submit a monthly Not-Carried Report for those items requested by the customers but not carried in stock due to lack of demands. (CDRL A016)

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Section C-5.4 HM Procurement continued The Contractor shall obtain competition for which reimbursement will be sought under this contract and shall maintain documentation to demonstrate prices are fair and reasonable. The Government reserves the right to audit all purchase records during the period of performance of the contract to determine if adequate competition is being sought. The Government will review the Contractor’s records to ensure adequate documentation is maintained to demonstrate price reasonableness.

The Contractor shall follow affirmative purchasing procedures to obtain environmentally preferred or “Green” products to the maximum extent possible. The Contractor shall promote non-hazardous material substitutions whenever practical and provide customers with the latest information related to product substitutions. Substitutions shall not occur if mandatory maintenance documentation or Military Specification (MILSPEC) information dictates otherwise.

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Section C-5.4.1 Reimbursement for Material Costs Section C-5.4.2 Estimated Dollar Amount of Material Section C-5.5 Material Management The amount of contractor HM stocked shall be commensurate with established safety and environmental mandates while also meeting stockage effectiveness rates to support customer demands. Levels of material maintained on hand shall be established by historical demand data found in TE 5.1 Historical Workload, seasonal variations, and manufacturer’s production schedules.

The Contactor shall determine stock levels that best serves the customer based on demand and anticipated customer production projections. The demand based item criterion shall be at the Contractor’s discretion; however, the Contractor shall take into consideration available HM reuse, long lead times, seasonal variations, production schedules, and shelf-life considerations.

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Section C-5.5 Material Management continued The Contractor shall assume responsibility and accountability for all Government owned stock on-hand at time of Full Performance.

Government owned stock shall be used prior to the Contractor purchasing.

If demand supported HM is Not in Stock (NIS) (zero balance) and the Contractor is not able to fill the customer’s requirement upon the request, the Site Manager shall immediately notify the COR and Customer of the estimated delivery date and determine if expedite actions are required. (See CDRL A018).

The 3PL HM product range and depth may be adjusted at any time during the performance of this contract based on customer requirements, changes to the ACL/AUL(s), or technological changes. The COR/TPOC will notify the Contractor of these requirements in writing. The Contractor shall only add new HM once the customer AUL/ACL is approved.

Contractor shall establish reasonable reorder points and safety levels based on order and shipping times to avoid any zero balances.

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Section C-5.5.1 Authorized Chemical List (ACL)/Authorized User List (AUL) The Contractor shall use ACL/AULs to control HM acquisition, identify types of HM usage, to establish HW profiles and waste stream identification, and support environmental reporting as prescribed by Government Agencies and as a pollution prevention tool.

The Contractor shall provide support as needed to facilitate approval of products, but the Government is ultimately responsible for providing justification and approval signatures. Once the approving signature has been obtained, the Contractor shall procure and issue the material.

The Contractor shall only manage HM listed on approved ACL/AUL. The Contractor shall validate each requisition, receipt, and issue transaction against the AUL prior to completion. The Government will be responsible for certifying that customer AULs have been reviewed and approved for use.

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Section C-5.6 Receiving, Storage and Issue of HM Contractor owned 3PL HM is to be received in Building 27 on NASCC.

Limited space available in building 27 for staging HM for the Contractor to perform the receiving operations and input into HMMS.

HM central storage areas are located in close proximity to CCAD production areas and are listed in TE 3.1.

The Contractor maintains ownership of all 3PL HM positioned in Building 27 and the centralized storage areas.

Once the Contractor determines to replenish the HDSCs and systemically transfer (in HMMS) and physically transport HM from the centralized storage areas to the HDSCs for subsequent receipt into HMMS with storage locations in the HDSC is the point when the HM is owned by the Government.

The customer may also receipt DTO HM in Building 27 for processing IAW existing contract requirements.

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Section C-5.6.1 Centralized HM Receiving The Contractor shall receive, visually inspect, and process receipts of all incoming HM IAW DLAI 4145.11, Storage and Handling of Hazardous Materials and DoD 4140.27M, Shelf Life Management Manual and record receipt transactions in HMMS. All HM received shall be processed through HMMS in order to capture data for environmental compliance reporting.

The Contractor shall:

Confirm the material is approved for use on the installation.

Perform a Kind, Count and Condition (KCC) inspection at the receiving point to verify National Stock Number, Part Number, Contract Number, quantity and Condition Code.

Validate container condition/integrity Verify that open purchase material is accompanied by a valid MSDS/SDS; that material is in its original container with a legible original manufacturer’s label.

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Section C-5.6.1 Centralized HM Receiving continued:

The Contractor shall offload commercial conveyances within 2 hours of arrival. The Contractor shall sign shipping documents acknowledging receipt of HM and record the HM receipt in HMMS IAW the APLs depicted in TE 5.9.

The Contractor shall generate barcoded tracking label(s) from HMMS and properly attach the label(s) to each container of HM received. An HMMS generated bar-coded label shall be applied to each individual container prior to storage in warehouse location(s). For DTO HM, the Contractor shall apply a HMMS barcode label to each individual container prior to delivering to the customer within 24 hours of receipt.

The Contractor shall validate product specific MSDS/SDS are available and/or accompanies each line item received prior to acceptance of that material. The Contractor shall distribute new or updated/revised MSDS/SDS’s to authorized customers at the time of first issue or upon demand thereafter.

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Section C-5.6.1 Centralized HM Receiving continued:

The Contractor shall have an area for frustrated HM that complies with segregation requirements. The Contractor shall provide the KO or designee a report of frustrated material IAW CDRL A019. Frustrated HM includes but is not limited to:

Material found within the HM storage facility without documentation or accountability.

Unidentified material.

Customer rejected material.

Misdirected material Material without SDS The Contractor shall process and resolve frustrated material within five (5) calendar days of arrival which may include, but is not limited to, redirecting the shipment, forwarding the material to Disposition for forward delivery, or receipting the material to stock and stowing the material in a permanent storage location. When all avenues of research have been exhausted and the frustrated material is unresolved, the Contractor shall receipt the material to Reuse.

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Section C-5.6.2 Centralized HM Storage The Contractor shall store all HM IAW DLAI 4145.11, Storage and Handling of Hazardous Materials, DLAI 4145.4, Stock Readiness, DoD 4140.27M, Shelf Life Management Manual, DoD 4145.37, Shelf-Life Management for Material Quality Control Storage Standards. The Contractor shall segregate and store HM by Hazardous Condition Code (HCC) IAW DLAI 4145.11, Storage and Handling of Hazardous Materials, Appendix C, Storage Segregation Matrix: HCCs to Storage Segregation.

The Contractor shall only store Contractor owned 3PL HM inventory in a Government facility if there is a recorded demand for that item and a current ACL/AUL record is on file. The Contractor shall not store HM with HW.

The Contractor shall prevent damage or deterioration to all HM inventory in storage. The Contractor shall provide the appropriate storage for HM having unique physical or hazardous properties (e.g., temperature sensitivity, water reactivity, explosive nature, or other). The Contractor shall not store HM in a manner that obstructs any means of egress from a work area.

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Section C-5.6.2 Centralized HM Storage continued:

Combined storage quantities of Contractor owned and Government owned inventory shall not exceed Threshold Planning Quantities (TPQ) for the installation as determined by the Environmental Office. (See C-6.3) The Government will provide updated TPQ values to the Contractor as required.

The Contractor shall segregate HM stored by HCC and then by 3PL HM, Courtesy Stow, DMI, and Reuse using HMMS labels and serial numbers. The Contractor shall label each type of HM to identify its specific category (e.g., 3PL, Reuse, Courtesy Stow).

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Section C-5.6.2.1 Centralized HM Inventory Performance of location surveys and inventories of 3PL HM shall be at the Contractor’s discretion in order to maintain positive control and accountability and ensure HM in storage matches information in HMMS. The HM material transfers from the Centralized Storage to the HDSCs shall not be impacted due to inventories being conducted.

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Section C-5.6.2.2 Government Owned HM in Centralized HAZMAT Storage The Contractor shall provide storage for Government-Owned HM wherever warehouse space or locker space can be made available. Government-Owned HM includes Directed Material Inventory (DMI), Courtesy Stow, and Reuse. The Contractor shall ensure that all Government-Owned stored HM is recorded in HMMS. (See C-5.6.2.3 Courtesy Storage and C-5.6.2.4 DMI Storage).

The TPOC and/or COR must approve all requests from customers to stow Government-Owned HM prior to the acceptance of the HM into the storage facility The Contractor shall perform shelf-life management and a monthly physical inventory of any Government-Owned HM stored in the facility IAW CDRL A020.

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Section C-5.6.2.3 Courtesy Storage Courtesy Stow material is inventory owned by a customer in excess to their immediate needs, turned into the HM Center for temporary storage.

Courtesy Stow shall be provided to customers based on availability of storage space and for a period normally not to exceed 30 calendar days. If the additional time is required, the Contractor shall instruct the customer to obtain approval from CCAD Environmental.

Courtesy Stow material shall be accounted for in HMMS to ensure proper inventory control and compliance reporting.

The customer will be responsible for disposal costs if the material is not used and disposal becomes necessary.

Section C-5.6.2.4 Directed Material Inventory Storage DMI is material designated for a specific project reserved for a specific customer unless they release the material for Reuse. The customer is responsible for disposal costs if the HM is not used and disposal becomes necessary.

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Section C-5.6.2.5 Shelf Life Management The Contractor shall perform Shelf Life Management IAW DoD 4140.27M, DoD Shelf-Life Management Program for Contractor-Owned 3PL HM and Government-Owned HM, to include Reuse. Items purchased locally with commercial labeling shall be managed IAW DoD 4140.27M, DoD Shelf-Life Management Program and will meet OSHA Hazardous Communication Standard 2012..

The Contractor shall manage and maintain HM in storage to ensure proper shelf-life management at all times.

All Type II Shelf-Life material, regardless of shelf-life code or material type (Courtesy Stow, DMI, or Reuse), shall be extended in full shelf-life intervals (no partial period extension). Criteria for shelf-life extensions include: original manufacturer shelf-life period, plus two additional Federal Logistics Information System (FLIS shelf-life periods. Material shall be extended or retained for no more than three shelf-life periods (original manufacturer’s date plus two). The Contractor shall request disposition instructions for Government-Owned HM from the COR for any HM meeting this criterion.

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Section C-5.6.2.5 Shelf Life Management continued:

The Contractor shall identify material requiring laboratory testing before it reaches its expiration date The Contractor shall update HMMS for any HM where expiration dates have been extended, generate new labels and apply to each container/item in the storage facility within one (1) working day of the change. The Contractor shall generate new labels for HM stored in customer lockers, work centers, and carts, or generate labels and provide to the customers with on hand inventory with the new expiration dates. The Contractor shall assist the customer(s) to ensure HM containers with new shelf-life dates are relabeled.

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Section C-5.6.2.5 Shelf Life Management continued:

The Contractor shall perform COSIS and shelf-life management for HM stored in customer lockers, HDSC, and carts. COSIS includes the following:

Visually inspecting containers to ensure material integrity is not compromised and to detect deterioration, leaks or any other condition that could result in product degradation. The Contractor shall perform spill clean-up from leaking containers, repackage (overpack) any containers found to be leaking, and immediately notify the customer (i.e., locker manager, work center supervisor).

Check to ensure HMMS barcode labels and HAZCOM labels are properly affixed to each container.

Perform stock rotation and Shelf –Life Management. (See paragraph C-5.6.2.5 Shelf-Life Management).

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Section C-5.6.3 Container Tracking and Close-out in HMMS (Cradle to Grave) Container tracking is necessary to ensure HM is managed, controlled, and accounted for throughout the material life cycle.

Section C-5.6.3.1 Hazardous Communication (HAZCOM) Labels Commercial or manufacturer’s hazardous labels are the preferred method for marking HM, including laboratory chemicals, within the DoD and shall not be removed from the product or defaced.

Section C-5.6.4 Transfer/Issue of Contractor Owned HM to HDSCS The contractor shall not transfer/issue HMMS managed material from centralized HM storage locations to the HDSCS without first evaluating if government owned material could be transferred within the different HDSCS for use within shelf life requirements.

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Section C-5.6.4 Transfer/Issue of Contractor Owned HM to HDSCS continued:

The Contractor shall ensure that vehicles transporting HM comply at all times with Federal (i.e., DOT), State of Texas, NASCC and other local regulations for transportation of HM. The Contractor shall ensure that Containers are secured by straps, and/or bracing to prevent movement or displacement of containers during transit.

Vehicles transporting HM have a spill contingency kit appropriate for the HM being transported.

The vehicle properly placarded for the HM being transported.

Transfers/Issues shall be made using FIFO procedures to minimize the risk of shelf-life expiration and subsequent negative impact to the HW stream. The Contractor shall submit requests to deviate from FIFO procedures to the COR/TPOC for approval.

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Section C-5.6.4 Transfer/Issue of Contractor Owned HM to HDSCS continued:

High priority requests are received via telephone, fax, email, or walk-in High priority requirements shall be processed ahead of other transfers/issues, and the delivery to the HDSC of the material shall be expedited according to the priority of the requisition. This may require that the Contractor physically deliver the HM to the customer outside of normal delivery schedules.

HM requisitions shall be validated against HMMS to assure NSN, material type, and desired quantity(s) are in stock. If the material is on-hand at the HM Center and is validated as authorized, the HM shall be issued. HM not on a customer’s AUL can be issued with the approval of the KO or designee.

The Contractor shall be available to respond to emergency requests, as well as, surges in issues in support of production surges and contingency situations. Processing emergency requests may require same day issue to the customer and delivery to the customer or over-night shipment to off-base customers.

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Section C-5.6.5 Hazardous Distribution Support Centers (HDSC) HDSCs are specific locations within the CCAD maintenance facilities for the Contractor’s use to issue HM material directly to the CCAD artisans. The HDSCs are also the locations where once the HM is systemically transferred (in HMMS) and physically transported to the HDSCs that the HM becomes Government owned.

Section C-5.6.5.1 HDSC Receiving The Contractor shall receipt the transfer of HM from the centralized storage locations to HDSC locations in HMMS and physically stow the material in the appropriate HDSC locations/lockers.

The Contractor shall convert material from unit of issue to unit of use and relabel IAW HMMS Cradle to Grave serial numbers.

The Contractor shall perform dispensing or decanting of HM from larger drums or bulk storage containers into smaller daily use containers for unit of use issues. The Contractor shall recommend to the customer opportunities to implement dispensing and decanting processes to minimize HM in stock and HW disposal.

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Section C-5.6.5.2 HDSC Storage The Contractor shall conduct Shelf Life (Cyclic) inspections as defined by the material expiration date, shelf-life code and condition codes The Contractor shall store shelf-life material (Type I or II) according to the expiration date or inspection and test date of the material.