SPE1C125R0150_Attachment.pdf

SOLICITATION NO. SPE1C125R0150 Page 1 of 91 Solicitation Attachment

CAUTION - CONTRACTOR CODE OF BUSINESS ETHICS

FAR Part 3.1002(a) requires all government contractors to conduct themselves with the highest degree of integrity and honesty. Contractors should have a written code of business ethics and conduct within thirty days of award. To promote compliance with such code of business ethics and conduct, contractors should have an employee business ethics and compliance training program that facilitates timely discovery and disclosure of improper conduct in connection with government contracts and ensures corrective measures are promptly instituted and carried out. A contractor may be suspended and/or debarred for knowing failure by a principal to timely disclose to the government, in connection with the award, performance, or closeout of a government contract performed by the contractor or a subcontract awarded there under, credible evidence of a violation of federal criminal law involving fraud, conflict of interest, bribery, or gratuity violations found in title 18 of the United States Code or a violation of the False Claims Act. (31 U.S.C. 3729-3733)

If this solicitation or contract includes FAR clause 52.203-13 - CONTRACTOR CODE OF BUSINESS ETHICS AND CONDUCT; the contractor shall comply with the terms of the clause and have a written code of business ethics and conduct; exercise due diligence to prevent and detect criminal conduct; promote ethical conduct and a commitment to compliance with the law within their organization; and timely report any violations of federal criminal law involving fraud, conflict of interest, bribery or gratuity violations found in title 18 of the United States Code or any violations of the False Claims Act. (31 U.S.C. 3729-3733). When FAR 52.203-13 is included in the contract, contractors must provide a copy of its written code of business ethics and conduct to the contracting officer upon request by the contracting officer.

PART I- THE SCHEDULE

SECTION A

SOLICITATION/CONTRACT FORM

DLA Troop Support will utilize a Fixed Price Service Contract with an Economic Price Adjustment (EPA) allowed for freight only. The contract will have a Two-year base period followed by five one-year option periods. Option period four may be extended by a period of up to six months in accordance with FAR 52-217-8 – Option to Extend Services. The total contract duration is not to exceed seven (7) and one-half years.

Material Release Order (MRO) Quantities: This contract shall have the following Annual Estimated Quantity (AEQ) and Annual Guaranteed Minimum MRO quantities for the two-year base period and five one-year option periods:

Guaranteed Minimum Contract Period AEQ MRO Quantity

Two-Year Base Period* 184,500* 123,000* Option Period 1 (year 3) 123,000 82,000 Option Period 2 (year 4) 123,000 82,000 Option Period 3 (year 5) 123,000 82,000 Option Period 4 (year 6) 123,000 82,000 Option Period 5 (year 7) 123,000 82,000 Option Period 5 (6 mo. Extension) 61,500 41,000

*NOTE: The Guaranteed Minimum of 123,000 for the Two-year base period can be ordered at any time during the Two-year period. The AEQ is calculated with a six-month transition period in which the new 3PL may not receive MROs while the warehouse is being phased into operation and inventory is transferred.

Therefore, the AEQ for the two-year base period includes the estimated quantity for 18 months which is 184,500 MROs – 61,500 MROs expected during the first year/transition period and 123,000 MROs expected in the second year of the base period. Should the incumbent be selected for award, the AEQ MRO quantity and

SOLICITATION NO. SPE1C125R0150 Page 2 of 91 guaranteed minimum MRO quantity shall be 246,000 and 164,000 respectively – both of which reflect the quantities of performing without a transition period throughout the two-year base period. Items to be inventoried and ordered include but are not limited to boots, caps, physical training uniforms, trousers, shirts, and protective equipment.

The Government guarantees that it will order a minimum of 574,000 Material Release Orders (MROs) during the potential 7 1/2-year subject contract. The guaranteed minimum is comprised of the minimum quantity of MROs of 82,000 per year which is 2/3 of the AEQ for this contract of 123,000, multiplied by the unit price per MRO. The Freight minimum value is calculated using the freight cost estimate for the contract period and taking 2/3 of this value to stay consistent with how the MROs were calculated, as well. The price is fixed for Storage and Warehousing which takes the fixed monthly unit price and multiplies by 12 months; This total dollar value will represent the guaranteed minimum value of the potential 7 1/2-year contract. The Government will be considered to have fulfilled its obligation to order the guaranteed minimum when the guaranteed minimum dollar value has been met.

The Maximum dollar value that may be ordered against this contract over the potential seven-and-one-half-year period is $65,000,000.00.

SECTION B

SCHEDULE OF SERVICES AND PRICES

MRO Fees

MRO Fees include all the General and Administrative and Overhead costs to process shipments under this program. These fees should include all costs associated with MRO fulfillment – e.g. the picking, packing, and shipping of MROs. Customers to be supported include active-duty U.S. Military, U.S. National Guard and Reserves, U.S. Navy ships, clothing and sales stores, and other military customers located primarily in the Southern tier of the continental United States of America (CONUS) as well as OCONUS. Only costs directly relating to the operation of the MRO portion of this contract shall be allowed as part of the price for this CLIN.

In specific, these costs should include – but are not limited to – all the following:

• All Labor costs related to MRO fulfillment

• All Packaging costs including packaging supplies, labels, bar-coding supplies, package marking supplies, stretch/shrink wrap, dunnage

• All costs related to processing shipments in the Vendor Shipment Module (VSM)

• Profit related only to MRO fulfillment

Two-Year Base Period MRO Fee

Two-Year Base Period (Yr 1) $________ Two-Year Base Period (Yr 2) $________

Option Period 1(yr 3) MRO Fee

Option Period 2(yr 4)

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Option Period 3(yr 5)

Option Period 4(yr 6) MRO Fee

Option Period 5 (yr 7) MRO Fee

Option Period 5 extension** MRO Fee

**(This price will be utilized for a period up to six months in the event that the contract is extended in accordance with FAR 52-217-8 – Option to Extend Services (Nov 1999)).

Monthly Storage and Warehousing Fee

The Monthly Storage and Warehousing Fee includes all the General and Administrative and Overhead costs to store and warehouse the Government’s inventory. From a general standpoint, these costs should include – but are not limited to – receiving, storage, security, Information Technology systems, material handling equipment, utilities, Supply Discrepancy Report (SDR) processing and quality assurance. Only costs directly relating to storage and warehousing shall be allowed as part of the price for this line item.

In specific, these costs should include – but are not limited to – all the following:

• All Information Technology Systems costs including hardware, software, servers and Programming

• All Facilities costs include lease/rent, insurance, overhead, alarm/sprinkler systems, racking, shelving, utilities, pest control

• All costs associated with receiving and storing incoming inventory

• All Material Handling Equipment (MHE) costs such as forklifts, dollies, pallet jacks, ladders, and lifts

• All Costs associated with Supply Discrepancy Report (SDR) processing

• Costs of providing office space, high-speed internet access, and phone line to a DLA Troop Support

Sourcing Strategy Specialist (SSS)

• All costs associated with attending or hosting meetings or program management reviews

• Profit related only to the monthly storage and warehousing fee

Two-Year Base Period Monthly Fee

Two-Year Base Period (Yr 1) $________

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Two-Year Base Period (Yr 2) $________

Option Period 1(yr 3)

Option Period 2(yr 4)

Option Period 3(yr 5)

Option Period 4(yr 6)

Option Period 5 (yr 7) Monthly Fee

Option Period 5 extension** Monthly Fee

**(This price will be utilized for a period up to six months if the contract is extended in accordance with FAR 52- 217-8 – Option to Extend Services (Nov 1999)).

Freight Pricing

Priority Delivery Timeframe

• Priority 1 to 3 – Emergency Orders. Shall be delivered 3 business days or less after receipt of MRO.

• Priority 4 to 15 – Shall be delivered 6 business days or less after receipt of MRO.

• Overnight/Expedited Orders – Priority 1 to 3 orders requiring immediate shipment shall be delivered 1 business day after receipt of MRO.

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An MRO received by the 3PL Contractor prior to 2:00 PM EST will be considered to have been received that same business day for the purpose of calculating on-time delivery. MROs received at 2:00 PM EST or later will be considered to have been received during the next business day for the purpose of calculating on-time delivery.

A breakout of shipment estimates according to weight, priority, and region can be found in the business evaluation section of this solicitation.

Note: the freight prices below shall be valid through Base Period Year 1 only. Procurement Note C09 ECONOMIC PRICE ADJUSTMENT – DEPARTMENT OF LABOR PRICE INDEX (AUG 2017) shall be utilized to adjust standard freight charges starting in the second year of the base period (contract year 2). All freight prices shall include all applicable fuel surcharges.

Standard Freight Shipments

North East Region: PA, NY, NJ, MD, DE, RI, CT, MA, VT, NH, ME, DC

Two-Year Base Period 1 to 25 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ Priority Level 4 to 15 $ _____ Overnight $ _____

Two -Year Base Period 26 to 69 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ Priority Level 4 to 15 $ _____ Overnight $ _____

Two -Year Base Period 70 to 150 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ Priority Level 4 to 15 $ _____ Overnight $ _____

Two -Year Base Period Over 150 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ (per lb.)

Priority Level 4 to 15 $ _____ (per lb.)

Overnight $ _____ (per lb.)

South East Region: VA, WV, KY, TN, NC, SC, AR, LA, MS, AL, GA, FL.

Two -Year Base Period 1 to 25 lb.

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Priority Level 1 to 3 $ _____ Priority Level 4 to 15 $ _____ Overnight $ _____

Two -Year Base Period 26 to 69 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____

Overnight $ _____

Two -Year Base Period 70 to 150 lb.

Priority Level 1 to 3 $ _____ Priority Level 4 to 15 $ _____ Overnight $ _____

Two -Year Base Period Over 150 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ (per lb.)

Priority Level 4 to 15 $ _____ (per lb.)

Overnight $ _____ (per lb.)

Great Lakes Region: MI, OH, IN, IL, WI

Two -Year Base Period 1 to 25 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ Priority Level 4 to 15 $ _____ Overnight $ _____

Two -Year Base Period 26 to 69 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ Priority Level 4 to 15 $ _____ Overnight $ _____

Two -Year Base Period 70 to 150 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____

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Two -Year Base Period Over 150 lb.

Priority Level 1 to 3 $ _____ (per lb.)

Priority Level 4 to 15 $ _____ (per lb.)

Overnight $ _____ (per lb.)

Plains Region: MN, IA, MO, KS, NE, ND, SD.

Two -Year Base Period 1 to 25 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ Priority Level 4 to 15 $ _____ Overnight $ _____

Two -Year Base Period 26 to 69 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ Priority Level 4 to 15 $ _____ Overnight $ _____

Two -Year Base Period 70 to 150 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ Priority Level 4 to 15 $ _____ Overnight $ _____

Two -Year Base Period Over 150 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ (per lb.)

Priority Level 4 to 15 $ _____ (per lb.)

Overnight $ _____ (per lb.)

South West Region: OK, TX, AZ, NM.

Two -Year Base Period 1 to 25 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ Priority Level 4 to 15 $ _____

Two -Year Base Period 26 to 69 lb.

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Priority Level 1 to 3 $ _____ Priority Level 4 to 15 $ _____ Overnight $ _____

Two -Year Base Period Over 150 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ (per lb.)

Priority Level 4 to 15 $ _____ (per lb.)

Overnight $ _____ (per lb.)

Mountain Region: MT, ID, WY, UT, CO.

Two -Year Base Period 1 to 25 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ Priority Level 4 to 15 $ _____ Overnight $ _____

Two -Year Base Period 26 to 69 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ Priority Level 4 to 15 $ _____ Overnight $ _____

Two -Year Base Period 70 to 150 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ Priority Level 4 to 15 $ _____ Overnight $ _____

Two -Year Base Period Over 150 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ (per lb.)

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Pacific Region: CA, NV, WA, OR

Two -Year Base Period 1 to 25 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ Priority Level 4 to 15 $ _____ Overnight $ _____

Two -Year Base Period 26 to 69 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ Priority Level 4 to 15 $ _____ Overnight $ _____

Two -Year Base Period 70 to 150 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ Priority Level 4 to 15 $ _____ Overnight $ _____

Two -Year Base Period Over 150 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ (per lb.)

Priority Level 4 to 15 $ _____ (per lb.)

Overnight $ _____ (per lb.)

Alaska Region

Two -Year Base Period 1 to 25 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ Priority Level 4 to 15 $ _____ Overnight $ _____

Two -Year Base Period 26 to 69 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ Priority Level 4 to 15 $ _____

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Priority Level 4 to 15 $ _____ Overnight $ _____

Two -Year Base Period Over 150 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ (per lb.)

Priority Level 4 to 15 $ _____ (per lb.)

Overnight $ _____ (per lb.)

Hawaii Region:

Two -Year Base Period 1 to 25 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ Priority Level 4 to 15 $ _____ Overnight $ _____

Two -Year Base Period 26 to 69 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ Priority Level 4 to 15 $ _____ Overnight $ _____

Two -Year Base Period 70 to 150 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ Priority Level 4 to 15 $ _____ Overnight $ _____

Two -Year Base Period Over 150 lb.

Priority Level Freight Price

Priority Level 1 to 3 $ _____ (per lb.)

Vendor Shipment Module (VSM)

The contractor shall use the VSM system to make shipments going to international destinations. VSM is the vehicle by which the contractor notifies the DLA transportation experts that a shipment is ready for processing.

No matter the size or weight, VSM will assess information provided and process shipments according to the

SOLICITATION NO. SPE1C125R0150 Page 11 of 91 contract terms. Once shipment is processed, VSM will allow you to access your contract information to print the applicable documentation for your type of shipment. For VSM registration and instruction, a Help Desk is available and can be reached by email at delivery@dla.mil or by phone Mon-Fri 0600-1700 Eastern Time at 800-456-5507.

VSM is a web based, front-end application interfaced to the DSS mainframe. It is also capable of full Electronic Data Interface (EDI) integration at the vendor location. The EDI version is more complex and requires more programming on the vendor’s part to integrate into their production systems. However, the payoff includes higher volume shipping capacity and eliminates human intervention in the process.

When processing Free on board (FOB) destination shipments in VSM, vendor selects the desired Purchase Order to ship, enters shipment weight, dimensions and carrier and submits transaction. The system determines “Ship To” and “Final Destination” addresses using the Global Address file and transportation logic in DSS.

Once shipping addresses have been derived, the system generates a MIL-STD-129P compliant Military Shipping Label (MSL) in Adobe Acrobat Portable Data File (PDF) format, which is printed at the vendor location.

When vendor processes a shipment requiring Aerial Port Clearance, shipment is offered for clearance to the Financial Air Clearance Transportation System (FACTS). When clearance is complete (could be up to 3 days) VSM notifies the vendor via their web page the shipment has been cleared, and shipping labels are available to print.

Similar processes are executed for FOB Origin Shipments. When vendor processes a shipment in VSM, freight is offered through system to procure transportation by the Government. This includes securing a carrier and arranging the pick-up schedule, creating the CBL (Commercial Bill of Lading) for freight shipments and alerting the vendor the shipment is scheduled, and all documents are ready to print. Small parcel shipments will include a small parcel carrier label, and the vendor will be required to request a pick up from that carrier. Vendor must ensure paperwork and freight are ready to ship when carrier arrives for pick-up.

Orders from Naval ship customers will also frequently require the use of VSM to obtain the most up-to-date shipping addresses.

International Shipments not going through VSM

While most MROs will be shipped to locations within the continental United States, Alaska, and Hawaii it will be necessary from time to time to ship internationally in support of DLA Troop Support customers. The Government will reimburse the Contractor for actual shipping charges for these shipments, but the Contractor is responsible for obtaining a minimum of three (3) bids from shipping companies/carriers to ensure that reasonable freight charges are applied. Proof of international shipping charges and bid records shall be available for government inspection immediately upon request (no later than two business days after such a request is made.)

Foreign Military Sales (FMS) Shipments

At times the Contractor will be required to deliver items to foreign military customers. All FMS MROs shall be coordinated with the Defense Distribution Center (DDC) transportation office, which will provide approved shipping instructions and carrier designation. To obtain Ship-To addresses for FMS customers, the vendor will need access to the VSM Web-based system operated by DLA Distribution.

To prevent frustrated shipments, the contractor must contact the VSM office for ALL FMS orders to request that the transportation method be changed in VSM from Destination to Origin, regardless of the fifth position of the document number.

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Delivery codes for FMS shipments:

Delivery Term Codes for Shipments from the U.S. (Outbound) DTC - instructions 2 -Movement from origin to destination within CONUS or within the same overseas geographical area.

(normally shipment via DTS on CBL/GBL).

3 -Delivery alongside vessel/aircraft at port of exit (normally GBL/DTS). (No longer used).

4- Delivery at origin (normally shipment to freight forwarder by commercial carrier on a CCBL).

5- Delivery to port of exit (normally U.S. government sponsored transportation to the freight forwarder on a CBL/GBL via DTS).

6 -Delivery to overseas port of discharge (normally GBL/DTS). (No longer used).

7- Delivery to final destination in recipient country (normally CBL/GBL via DTS).

8 -Delivery to vessel/aircraft (on board) at port of exit (normally GBL/DTS).

9 -Delivery to overseas port of discharge (landed) (normally CBL/GBL via DTS).

0 -DTC for service that do not involve transportation of materiel. Also used if transportation is funded by "above-the-line" case funds and not charged as an accessorial.

Accessorial Charges

When making shipments, the contractor may incur accessorial charges stemming from nominal and minor changes for second attempts at delivery, residential address surcharges and/or wrong addresses. The Contractor can seek reimbursement by the Government for commercially typical freight charges to cover costs in circumstances such as the following:

Carrier charges to the Contractor for shipments denied by the ship-to customer; Charges for address changes and/or multiple delivery attempts due to packages found to be undeliverable because of incorrect address information provided by the Government. The Contractor will be reimbursed for its actual shipping charges for these shipments only after the Contracting Officer approves of those charges. Note: however, the Government is not liable for making any payment for these charges unless the Contracting Officer approves the charges.

The Contractor is not authorized to charge the Government for freight charges in circumstances in which the charge is a result of the Contractor’s error. This includes instances where the Contractor mistakenly ships to an incorrect address that differs from the address supplied by the Government. The Contractor shall invoice the Government for these charges on its monthly invoice. To support all monthly accessorial charges, the Contractor shall provide a spreadsheet containing a rolled-up summary of all amounts being charged. The Contractor will provide the records of all invoices for charges incurred to the Contracting Officer when the monthly invoice is submitted.

Shipment Staging

There will be instances when orders to be shipped will need to be staged in the Contractor’s warehouse in order to provide the precise pieces, weight, cube, and other relevant shipment data for shipments going to DLA Distribution Depots, shipments going to DLA Disposition Services, and other entities requiring such information prior to shipment. When such staging is required it is possible that a shipment may remain staged and not shipped for a number of days or more before shipment authorization is provided or the shipment is picked up by the carrier. The Contractor must ensure that it has sufficient space in its warehouse to stage shipments in this manner without interrupting normal shipment or receipt timeframes. The contractor shall not be entitled to recoup any additional costs from the Government associated with such staging.

Freight Lost or Damaged in Transit

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In the event of a lost or damaged shipment, the Contractor shall request reimbursement from the carrier who lost or damaged the freight. The Contractor shall reimburse the Government with all claims received back from the carrier for the lost or damaged freight. The insurance value for lost freight will be added to the 0.5% inventory loss variance specified in Section 3.7.2.

Special Projects

There may be times when the Government needs assistance with completing special projects and/or stock screening requests on an as-needed basis. Such projects may include but are not limited to sorting and separating apparel items by production date, shading variance, sizes, etc. Should these needs arise, the Government shall request a proposal for the action from the Contractor with equitable, fair and reasonable pricing to be determined. The Government reserves the right to procure these services from another source if the proposal cannot be determined fair and reasonable. This line item is not priced at time of award.

SECTION C

DESCRIPTION / SPECIFICATIONS / REQUIREMENTS

Performance Work Statement

Section 1.0. – Background Section 2.0. – Scope Section 3.0. – Performance Requirements Section 4.0 – Inventory Accountability and Audit Readiness

1.0. Background

The DLA Troop Support Clothing & Textile (C&T) Supply Chain provides integrated logistics solutions for military apparel items and equipment utilized by the military services. The following Statement of Work (SOW) focuses on military clothing items and equipment and will utilize the enhanced logistical support of a 3PL provider to furnish warehousing, storage, inventory management and distribution functions for DLA Troop Support, and its’ military customers.

2.0 Scope

The purpose of this initiative is to satisfy customer requisitions for military service C&T items including boots, coats, parkas, helmets, foot lockers, and body armor. The Contractor will not be responsible for requisitioning clothing from the manufacturing community. Rather, DLA Troop Support will procure the replenishment quantities and advise manufacturers to ship directly to the Contractor. The apparel to be stored will be Government owned materiel.

DLA Troop Support’s goal is 100% supply availability of military clothing items. In order to achieve this goal, it is necessary to employ third party logistics support in order to best optimize inventory levels, provide total asset visibility to the customers for all shipments, readiness and support for military customers located primarily in the southeastern tier of the U.S.

The estimated cubic and square footage required for inventory storage in order to effectively support this program is 2.5 Million cubic feet including approximately 17,000 to 20,000 pallets of material. Please note that it is possible for this amount to be expanded/decreased in the future should warehousing requirements change over time.

2.1. Contract Duration and Type

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2.1.1. Contract Duration – The contract will have a Two-year base period followed by five one-year option periods. Option period four may be extended by a period of up to six months in accordance with FAR 52-217-8

– Option to Extend Services.

The total contract duration is not to exceed seven (7) and one-half years.

2.1.2. Contract Type – DLA Troop Support will utilize a Fixed Price Service Contract with an Economic Price Adjustment (EPA) allowed for freight only with the following Annual Estimated Quantity (AEQ) of MROs:

Contract Period MRO Two-year Base Period 184,500 Option Period One (yr 3) 123,000 Option Period Two (yr 4) 123,000 Option Period Three (yr 5) 123,000 Option period Four (yr 6) 123,000 Option period Five (yr 7) 123,000 Option Period Five (6 mo. Extension) 61,500 ** (If needed in accordance with FAR 52-217-8 – Option to Extend Services.)

NOTE: The Guaranteed Minimum of 123,000 for the Two-year base period can be ordered at any time during the Two-year period. The AEQ is calculated with a six-month transition period in which the new 3PL may not receive MROs while the warehouse is being phased into operation and inventory is transferred. Therefore, the AEQ for the two-year base period includes the estimated quantity for 18 months which is 184,500 MROs – 61,500 MROs expected during the first year/transition period and 123,000 MROs expected in the second year of the base period. Should the incumbent be selected for award, the AEQ MRO quantity and guaranteed minimum MRO quantity shall be 246,000 and 164,000 respectively – both of which reflect the quantities of performing without a transition period throughout the two-year base period.

2.2. Current Procedure

The current program procedures are as follows: The 3PL contractor receives apparel and equipment item shipments daily, primarily from commercial manufacturers (the majority of incoming shipments), U.S Government supply depots, and/or other C&T 3PLs; warehouses the items; and ships directly to C&T customers as instructed. The material pulled from stock for shipment shall be, unless otherwise specified, the oldest stock in storage. This is accomplished with the First In First Out (FIFO) method.

2.3. Information Systems

The Contractor shall employ Information Technology Systems (ITS) that are compatible with, and provide seamless interface with, existing and emerging Department of Defense (DOD) systems employed by DOD/Defense Logistics Agency (DLA)/DLA Troop Support, DLA Transaction Services and Defense Logistics Information Service (DLIS), specifically the Enterprise Business System (EBS), Wide Area Work Flow (WAWF) and Virtual Item Manager (VIM) systems. By virtue of daily or more frequent updates of its ITS, the Contractor’s ITS must provide the continual flow of complete, accurate, up-to-date information to DLA Troop Support and its customer(s.) The Contractor agrees to provide appropriate and knowledgeable IT personnel to coordinate with DLA Troop Support for the purposes of testing/integrating it’s ITS systems with those of the government. The Contractor also agrees to provide appropriate and knowledgeable IT personnel for managing the ongoing support of this program from inception onward. At a minimum, the Contractor’s ITS will be required to:

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1. Send and receive a variety of transactions via the usage of Electronic Data Interchange (EDI).

2. Provide total asset visibility to DLA Troop Support and other authorized personnel of on-hand inventory within the contractor’s ITS up to the point of delivery.

3. Track item consumption.

4. Provide reports as needed or requested by DLA Troop Support and/or customers to administer their logistics programs.

5. Process requisitions under Military Standard and Issue Procedures (MILSTRIP).

6. Utilize best commercial practices technology to track inbound and outbound shipments, integrating contractor’s software with other systems utilized by the Government.

7. The Contractor will need to coordinate with DLA customers and DLA Troop Support to ensure all IT requirements (e.g. firewalls and compatibility issues) are compliant with Government requirements.

8. Use best commercial practices to ensure that all Government data (both physical and electronic) provided to, transmitted to, or sent from the Contractor is protected and kept secure from unauthorized release or disclosure. The Contractor shall ensure that all Government data (both physical and electronic) is defended from unauthorized access, use, disclosure, modification, perusal, inspection, recording, or destruction. Examples of such data to be protected include but are not limited to MROs, requisitions, receipt information, inventory quantities, customer addresses, and shipment details.

9. Utilize the Vendor Shipment Module (VSM) to obtain shipping information, as needed.

10. Utilize the WebSDR interface to process supply discrepancy reports.

2.4 System transactions

The Contractor will be responsible for interfacing with the Government’s systems in order to:

• Receive shipments in from manufacturers

• Make shipments to DLA Troop Support customers

• Report inventory status and transactions

• Report other changes in contractor managed inventory to keep Government inventory records accurate

• Comply with DLA Inventory Records Management (IRM) requirements and transactions

The purpose of the IRM Process is to:

1. Support a reconciliation process between Enterprise Business System (EBS) and any Storage Activity (SA) where the property management record for DLA-owned inventory resides with the SA Warehouse Management System (WMS). This includes systems operated by DLA Distribution, the Military Services, and Commercial Contractors/Vendors.

2. Ensure asset balances in the Total Item Property Record (TIPR) in EBS and the SA WMS property management record are in agreement.

3. Identify repetitive processing errors and maintain accurate records for supply system transactions generated within the supply system by researching and reconciling property record imbalances and potential discrepancies.

4. Ensure accurate TIPR inventory records are maintained in support of customer requirements and readiness by performing balance reconciliations.

The Contractor is required to work with DLA Resolution specialist Staff to immediately research and resolve reconciliation lines.

The Contractor will send and receive electronic transactions, using various transaction Document Identifier codes (DICs) in specific 80 card column formats and/or EDI transactions.

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Standard transactions include but are not limited to the following:

A0A – The transaction that generates replenishment of stock in the contractor’s warehouse by transshipping from another storage location (depot or vendor).

A5_ – A Material Release Order (MRO), this is the transaction received from the Government which directs the shipment of stock to customers to satisfy the requisitions they have submitted to DLA Troop Support.

A5E – An Exception Transaction used for Material Release Orders which require special handling.

AR0 – The transaction the contractor transmits to the Government in order to confirm that stock has been shipped in response to an A5_document.

AS8 – Shipment notification

AF6 – The transaction by which the Government reports that a previously generated MRO remains open, and so the contractor needs to determine if the order had been previously processed, and then to either ship the order, or to transmit an AR0 to the Government confirming the shipment of the order.

A6A – A Material Release Denial. This is the transaction which the contractor submits to the Government if the contractor is unable to ship the stock as directed in a Material Release Order. This causes the Government to either direct the order to another location or to backorder the order, and except where an exception code is used, drops the balance shown on the Government’s National Inventory Record (NIR) to zero so that no further MRO’s will be generated to the contractor for that item until stock is received.

A6J - Disposal Release Denial

AC6 – A Material Release Order Cancellation. Customers will sometimes cancel their requisitions, in which case the Government will cancel any MROs generated to satisfy those requisitions by sending AC6 transactions. Upon receipt of the AC6 the Contractor will, if possible, stop the shipment of the order and return the stock to inventory.

AE6 - Supply Status, To ICP/IMM from storage or reporting activity in response to a DI AF6, DI AC6, DI A4_ with Distribution Code 2, or A5_, when a DI AR_ or AS6, does not apply

AG6 – The transaction which the contractor transmits to the Government to confirm cancellation of a Material Release Order. Unless this is received the requisition will not close in EBS.

ARJ - Disposal Release Confirmation

DAC - Inventory Adjustment–Dual–Condition Transfer.

The Contractor must be able to receive stock from the Government and to report receipt of that stock to the Government. The transactions used to do so are as follows:

DU and DW – Prepositions Material Receipt Cards by which the Government informs the contractor of material due from the Government.

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D4_ A transaction used to report receipt of material from a contract delivery.

D6_ A transaction used to report receipt of material from non-procurement actions. These can include D6B transactions used to report receipt of material returns from customers; D6K transactions used to report receipt of stock from redistributions from other depots; and D6L transactions used to report receipt of material requisitioned by the contractor with an A0A. Transmission of the F4_ or D6_ document when material is received causes the due-in line to close and the stock to appear on the NIR, which allows EBS to direct MROs against the stock. If these receipt documents are not successfully processed, even though stock may be in the contractor’s warehouse, it will not be on the Government’s NIR. The contractor may not receive MROs which would have been directed to the contractor had the contractor records and the Government’s NIR been in agreement.

D8_ An Inventory Gain transaction will be used when the contractor has more material in its warehouse than is reflected on the NIR. When this discrepancy cannot be accounted for and corrected by any as yet unshipped MROs or by failure to report material receipts, then the contractor will transmit to the Government a D8_ transaction to increase the NIR balance to match the contractor’s balance.

D9_ An Inventory Loss transaction will be used when the contractor has less material in its warehouse than is reflected on the NIR. When this discrepancy cannot be accounted for and corrected by reversal of duplicate receipts which may have been erroneously transmitted, then the contractor will transmit to the government a D9_ transaction to decrease the NIR balance to match the contractor’s records.

To further ensure the accuracy of the Government’s inventory records, the Contractor must be able to send and receive the following Inventory Records Management (IRM) Transactions on a continuous basis:

DZH – On hand balance for location reconciliation

DZN – Count of DZH transactions

DZG – Transaction reject based on invalid NSN or condition code on DZH

DZB – Storage item data correction/change based on invalid or mismatched Controlled Inventory Item Code (CIIC), unit of issue or Shelf Life Code (SLC)

DZJ – Request to receive history of all transactions for a material from a specified period of time

DZK – Transaction history transmittal; one sent per historical transaction

DZP – Count of DZK or DZJ transactions

The following are example EDI transactions that may be used to transmit or receive information.

Please note that this is not an all-inclusive list of transactions. The 3PL contractor may be required to utilize additional transactions to communicate with the Government as needed:

EDI 527 – Material Due-In and Receipt Transaction Set. The transaction set can be used to provide advanced notification of scheduled material receipts, to report receipts, and to inquire about the status of receipt reporting. This transaction set may be used to convey a description of the material, receiving conditions and quantities, necessary contract information, and other logistics information. This transaction set is bi-directional between trading partners.

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EDI 940 – Warehouse Shipping Order Transaction Set. This transaction set can be used to enable the depositor to advise a warehouse to make a shipment, confirm a shipment, or modify or cancel a previously transmitted shipping order.

EDI 945 – Warehouse Shipping Advice Transaction Set. The transaction set can be used by the warehouse to advise the depositor that shipment was made. It is used to reconcile order quantities with shipment quantities.

EDI 846 – Inventory Inquiry/Advice Transaction Set. The transaction set can be used in the following ways: (1) for a seller of goods and services to provide inventory information to a prospective purchaser, with no obligation to the purchaser to acquire these goods or services; (2) for a representative of a seller of goods and services to supply inventory information to that seller; (3) for one location to supply another location with inventory information; and (4) for an inquiry as to the availability of inventory with no obligation on the seller of goods and services to reserve that inventory.

EDI 856 – Advance Shipment Notification. It is utilized to electronically communicate the contents of a shipment to another trading partner. It is sent in advance of a shipment arriving at the other trading partner’s facility.

EDI 947 – Warehouse Inventory Adjustment Advice Transaction Set. The transaction set can be used to inform a warehouse/depositor of a quantity or status change to inventory records. This transaction set provides detail information concerning the internal adjustments which occur between a warehouse and a depositor.

EDI 867 – Product Transfer and Resale Report Transaction Set. The transaction set can be used to: (1) report information about product that has been transferred from one location to another; (2) report sales of product from one or more locations to an end customer; or (3) report sales of a product from one or more locations to an end customer, and demand beyond actual sales (lost orders). Report may be issued by either buyer or seller.

EDI 824 – Application Advice Transaction. The transaction set can be used to provide the ability to report the results of an application system's data content edits of transaction sets. The results of editing transaction sets can be reported at the functional group and transaction set level, in either coded or free-form format. It is designed to accommodate the business need of reporting the acceptance, rejection or acceptance with change of any transaction set. The Application Advice should not be used in place of a transaction set designed as a specific response to another transaction set (e.g., purchase order acknowledgment sent in response to a purchase order).

EDI 888 – Maintenance Transaction Set. This transaction set is used to enable a manufacturer, supplier, broker, or agent to provide detailed finished goods product information to a partner in a consumer goods market. This transaction set can be used to provide information about new products or changes in existing product specifications. Price changes will not be sent with this transaction set, but can be sent with the Price Change Transaction Set (879).

For further information regarding the transactions above, Offerors may access the following two manuals at the internet addresses that follow:

DOD 4000.25-1-M MILITARY STANDARD REQUISITIONING AND ISSUE

PROCEDURES (MILSTRIP) MANUAL which can be found on the internet at the following address: http://www.dla.mil/HQ/InformationOperations/DLMS/eLibrary/Manuals/publications/dlm/dlm_pubs/ http://www.dla.mil/HQ/InformationOperations/DLMS/eLibrary/Manuals/publications/dlm/dlm_pubs/

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DOD 4000.25-2-M MILITARY STANDARD TRANSACTION REPORTING AND

ACCOUNTABILITY PROCEDURES (MILSTRAP) MANUAL

which can be found on the internet at the following address:

2.5 EDI Transaction Processing - Overview

EDI is a method, using industry standards, to transfer structured data electronically from one system to another with little or no human intervention. DLA requires vendors to send various data based on the ANSI X12 standard format through DLA Transaction Services.

A DLA Vendor may be a commercial contractor, vendor or plant. DLA requires that all vendors use various types of EDI transaction sets that comply with the American National Standards Institute (ANSI) X12 format to successfully manage inventory owned by DLA. A vendor is required to provide daily, weekly and annual (total) reconciliation reports of inventory electronically using EDI.

DLA Expectations (Non-Technical) (References to “plant/vendor” below also mean 3PL Contractor.)

DLA has several general EDI and Order Fulfillment requirements and expectations in order for a vendor to remain in good standing and meet contractual agreements.

2.5.1 Timeliness of EDI Transactions

EDI transactions should be transmitted no later than the end of each day.

2.5.2 DLA’s Unit of Issue (UOI)

Vendor must use DLA’s correct UOI for all movements.

2.5.3 EDI Transactions ANSI X12 format

EDI transactions must be sent in ANSI X12 format.

2.5.4 Product Validation

Vendor must verify product type (kind), count, and condition when material arrives.

2.5.5 DLA National Stock Number (NSN)

Vendor must maintain DLA NSN transaction histories and balances; sending transactions using the appropriate condition codes for every physical movement of the NSN.

2.5.6 IRM Transactions

IRM transactions may exceed 10,000 lines per transaction. Vendors must be able to process/handle a significant volume of EDI large transactions.

2.5.7 Reporting

Reporting transactions are required and all transactions are subject to transaction history submissions.

2.5.7.1 Daily Transactions

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At the close of business, the plant/vendor is required to send an on-hand balance of any material that had movement on that day. The plants/vendors provide their balances daily from Monday through Sunday to be used in the IRM process on a Weekly basis. This process will be described in more detail in the transaction set section of this document.

2.5.7.2 Weekly Reconciliation Transactions

At the end of a specified week, a plant/vendor must send a reconciliation of DLA owned material that experienced movement within the week to determine the physical inventory remaining at the vendor.

This process will be described in more detail in the transaction set section of this document.

2.5.7.3 Annual or Total Reconciliation Transactions

Annual or Total Reconciliation of DLA owned material via EDI is mandated by the Department of Defense (DoD) and is used as a final inventory audit for the Enterprise Business System (EBS). This reporting is to be completed on a predetermined date on, or before September 30 of each year. This process will be described in more detail in the transaction set section of this document.

2.5.7.4 Monthly Reporting

Monthly reporting may be required. All monthly reports may not be transaction-driven and will require output from vendor systems. Please coordinate with your contracting officer for confirmation and clarification.

2.5.8 Preparing Inventory Records

A vendor is responsible for providing an electronic inventory record that is needed to generate DLA-required ANSI X12 transaction sets. Inventory records may be generated using various methods within a vendor’s inventory management system. The records will be exported from the vendor’s system of record into an electronic format. A few examples include, application software, human data entry, databases or spreadsheets and, or system generated output files. A vendor’s electronic inventory record is required whether the vendor uses internal or outsourced inventory management.

2.5.9 Translation of Data to EDI ANSI X12 Format

Translation requires mapping tools, application software and, or communication services in order to translate the required inventory management data to and from the required ANSI X12 format to be sent to, or received from, DLA TS. The process of translation may be performed through application software the vendor maintains internally or has outsourced through a Third Party Service Provider or a Value Added Network (VAN) provider contracted by the vendor, at the vendor’s expense. A list of VANs can be found at the following DLA Transaction Services link: https://www.transactionservices.dla.mil/daashome/edi-vanlist-dla.asp.

2.5.10 Vendor System of Record

Responsible for generating, receiving, and maintaining data records sent to and received from DLA through EDI. The data must be archived in accordance with DLA data retention and disaster recovery policies.

Examples of systems of record include: Commercial off the Shelf (COTS) software, i.e. Quick Books; office tools, i.e. spreadsheets, custom applications – home grown software solutions, and enterprise solutions, i.e.

SAP. The vendor is responsible for the system of record.

2.5.11 EDI Test Transactions

All new vendors must complete EDI testing in coordination with DLA after award. Examples of transactions to be tested include, but are not limited to, all of the following:

ANSI X12 Description https://www.transactionservices.dla.mil/daashome/edi-vanlist-dla.asp

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527D Send DUZ to notify Vendor of due-in materials - PO Type NB SLoc AA 527D Send DWB to notify Vendor of due-in materials - 527D Send DWK to notify Vendor of due-in materials - PO Type UB SLoc AA 527R Send D4Z Goods Receipt (GR) to EBS confirming materials received by PO (NB) 527R Send D6K GR to EBS confirming materials received by STO (PO Type UB) 527R Send D6B (Customer Return Receipt) 940R Send A5A Material Release Obligation (MRO) to Vendor in response to DLA Direct customer requisitions 940R Send A2A (Redistribution Order to the vendor) to the Vendor 940R Send A5J (Disposal Redistribution Order) to the Vendor 945A Send AR0 Shipment Confirmation to EBS - Quantity TBD for RDOs 945A Send AR0 Shipment Confirmation to EBS - partial qty on hand 945A Send AR0 Shipment Confirmation to EBS - Total Quantity 945A Send A6A warehouse denial to EBS in response to partial stock 945A Send ARJ (Disposal Release Confirmation) 945A Send A6J (Disposal Release Denial) 940R Send AF6 Status Request to Vendor, in response to customer follow-up request for supply status 940R Send AF6 Status Request to Vendor, in response to customer follow-up request, where no doc # exist 945R Send AE6 Status BA to EBS, indicating item being processed for release/shipment 945R Send AE6 Status BF to EBS, indicating no record of requisition exist 940R Send AC6 to Vendor for customer cancellation - total qty of requisition 940R Send AC6 to Vendor for customer cancellation - partial qty of requisition 940R Send AC6 to Vendor for customer cancellation - AR0 is released to EBS at time of cancellation.** 945A Send AG6 Supply Status BQ to EBS - shipment has been fully cancelled 945A Send AG6 Supply Status BQ to EBS - partial qty cancelled 945A Send AG6 Supply Status B8 to EBS "unable to cancel" AR0 previously released ** 846P Send DJA request from ICP for physical count of stock at vendor location 947I Send D8A Inventory Gain to EBS to adjust stock level - Condition Code A 947I Send D9A Inventory Loss to EBS to adjust stock level - Condition Code A 947I Send DAC Inventory Adjustment to EBS for change in Condition Code from A to H (Unserviceable) 947I Send DAC Inventory Adjustment to EBS for change in Condition Code from A to F (Unserviceable, reparable) 947I Send DAC Inventory Adjustment to EBS for change in Condition Code F to A (A Serviceable)

2.6. Facilities

In the event that there is excess space available at the Contractor’s 3PL warehousing location, the Contractor may request to utilize the space in another manner – to include commercial purposes.