Attachment_1.docx

SECTION 1: CHANGES TO SF1449 OF SOLICITATION SPE300-16-R-0003

1. On page 17 of 40 of the SF1449 of SPE300-16-R-0003.

DELETE: CO4 GOVERNMENT SURPLUS MATERIAL (SEP 2016) IN ITS ENTIRITY.

2. On page 20 of 40 of the SF1449 of SPE300-16-R-0003.

DELETE: DLAD clause 52.217-9006 Surge and Sustainment (S&S) Requirements

3. On page 20 of 40 of the SF1449 of SPE300-16-R-0003.

INSERT: Far clause 52.228-3. Workers’ Compensation Insurance (Defense Base Act) (Jul 2014)

(a) The Contractor shall--

(1) Before commencing performance under this contract, establish provisions to provide for the payment of disability compensation and medical benefits to covered employees and death benefits to their eligible survivors, by purchasing workers’ compensation insurance or qualifying as a self-insurer under the Longshore and Harbor Workers’ Compensation Act (33 U.S.C. 932) as extended by the Defense Base Act (42 U.S.C. 1651, et seq.), and continue to maintain provisions to provide such Defense Base Act benefits until contract performance is completed;

(2) Within ten days of an employee’s injury or death or from the date the Contractor has knowledge of the injury or death, submit Form LS-202 (Employee’s First Report of Injury or Occupational Illness) to the Department of Labor in accordance with the Longshore and Harbor Workers’ Compensation Act (33 U.S.C. 930(a), 20 CFR 702.201 to 702.203);

(3) Pay all compensation due for disability or death within the time frames required by the Longshore and Harbor Workers’ Compensation Act (33 U.S.C. 914, 20 CFR 702.231 and 703.232);

(4) Provide for medical care as required by the Longshore and Harbor Workers’ Compensation Act (33 U.S.C. 907, 20 CFR 702.402 and 702.419);

(5) If controverting the right to compensation, submit Form LS-207 (Notice of Controversion of Right to Compensation) to the Department of Labor in accordance with the Longshore and Harbor Workers’ Compensation Act (33 U.S.C. 914(d), 20 CFR 702.251);

(6) Immediately upon making the first payment of compensation in any case, submit Form LS-206 (Payment of Compensation Without Award) to the Department of Labor in accordance with the Longshore and Harbor Workers’ Compensation Act (33 U.S.C. 914(c), 20 CFR 702.234);

(7) When payments are suspended or when making the final payment, submit Form LS-208 (Notice of Final Payment or Suspension of Compensation Payments) to the Department of Labor in accordance with the Longshore and Harbor Workers’ Compensation Act (33 U.S.C. 914 (c) and (g), 20 CFR 702.234 and 702.235); and

(8) Adhere to all other provisions of the Longshore and Harbor Workers’ Compensation Act as extended by the Defense Base Act, and Department of Labor regulations at 20 CFR Parts 701 to 704.

(b) For additional information on the Longshore and Harbor Workers’ Compensation Act requirements see http://www.dol.gov/owcp/dlhwc/lsdba.htm.

(c) The Contractor shall insert the substance of this clause including this paragraph (c), in all subcontracts to which the Defense Base Act applies.

4. On page 20 of 40 of the SF1449 of SPE300-16-R-0003.

INSERT: 52.228-4 -- Workers Compensation and War-Hazard Insurance Overseas. (Apr 1984)

(a) This paragraph applies if the Contractor employs any person who, but for a waiver granted by the Secretary of Labor, would be subject to workers’ compensation insurance under the Defense Base Act (42 U.S.C. 1651, et seq.). On behalf of employees for whom the applicability of the Defense Base Act has been waived, the Contractor shall

(1) provide, before commencing performance under this contract, at least that workers’ compensation insurance or the equivalent as the laws of the country of which these employees are nationals may require, and

(2) continue to maintain it until performance is completed. The Contractor shall insert, in all subcontracts under this contract to which the Defense Base Act would apply but for the waiver, a clause similar to this paragraph (a) (including this sentence) imposing upon those subcontractors this requirement to provide such workers’ compensation insurance coverage.

(b) This paragraph applies if the Contractor or any subcontractor under this contract employs any person who, but for a waiver granted by the Secretary of Labor, would be subject to the War Hazards Compensation Act (42 U.S.C. 1701, et seq.). On behalf of employees for whom the applicability of the Defense Base Act (and hence that of the War Hazards Compensation Act) has been waived, the Contractor shall, subject to reimbursement as provided elsewhere in this contract, afford the same protection as that provided in the War Hazards Compensation Act, except that the level of benefits shall conform to any law or international agreement controlling the benefits to which the employees may be entitled. In all other respects, the standards of the War Hazards Compensation Act shall apply; e.g., the definition of war-hazard risks (injury, death, capture, or detention as the result of a war hazard as defined in the Act), proof of loss, and exclusion of benefits otherwise covered by workers’ compensation insurance or the equivalent. Unless the Contractor elects to assume directly the liability to subcontractor employees created by this clause, the Contractor shall insert, in all subcontracts under this contract to which the War Hazards Compensation Act would apply but for the waiver, a clause similar to this paragraph (b) (including this sentence) imposing upon those subcontractors this requirement to provide war-hazard benefits.

SECTION 2: CHANGES TO ATTACHMENT 0001 STATEMENT OF WORK (SOW) OF SOLICITATION SPE300-16-R-0003

1. On page 19 of Attachment 1 of SPE300-16-R-0003 III: Contract Implementation Phase: iv:

Delete:

iv. In accordance with the average demand history for each item, quantities sold to the new Prime Vendor shall be a minimum of 2 months of stock (where available per platform) and shall not exceed 8 months of stock, which would account for a total pipeline (stock on-hand and receipted replenishment quantities to include stock levels for surge and sustainment requirements). Products shall be sold to the new Prime Vendor at the “Product Price” as defined by Defense Logistics Acquisition Directive (“DLAD”) 52.216-9065 Economic Price Adjustment – Actual Material Costs for Subsistence Product Price Business Model. For Zone 1, the estimated value for the maximum 8 months of stock (product price only) is $80 million. For Zone 2, the estimated value for the maximum 8 months of stock (product price only) is $9 million. The new Prime Vendor shall request and obtain supporting invoice documentation from the incumbent Prime Vendor of all items purchased for traceability and price verification purposes. Any other charges by the incumbent Prime Vendor will be billed to the new Prime Vendor separately from the Product Price and shall not be included in the new Prime Vendor’s catalog pricing or otherwise reimbursed by the Government.

Insert:

iv. In accordance with the average demand history for each item, quantities sold to the new Prime Vendor shall be a minimum of 2 months of stock (where available per platform) and shall not exceed 8 months of stock, which would account for a total pipeline (stock on-hand and receipted replenishment quantities to include stock levels for surge and sustainment requirements). Products shall be sold to the new Prime Vendor at the “Product Price” as defined by Defense Logistics Acquisition Directive (“DLAD”) 52.216-9065 Economic Price Adjustment – Actual Material Costs for Subsistence Product Price Business Model. For Zone 1, the estimated value for the maximum 8 months of stock (product price only) is $80 million. For Zone 2, the estimated value for the maximum 8 months of stock (product price only) is $16 million. The new Prime Vendor shall request and obtain supporting invoice documentation from the incumbent Prime Vendor of all items purchased for traceability and price verification purposes. Any other charges by the incumbent Prime Vendor will be billed to the new Prime Vendor separately from the Product Price and shall not be included in the new Prime Vendor’s catalog pricing or otherwise reimbursed by the Government.

2. On page 59 of Attachment 1 of SPE300-16-R-0003 VIII: INVENTORY AND WAREHOUSE MANAGEMENT: A:

DELETE:

Any information provided to the Prime Vendor by the Government (i.e. estimates, head counts,etc.) during contract performance is merely guidance to assist the Prime Vendor in fulfilling its role of supply chain management in the context of specific contract requirements. Though the Government will utilize its best efforts and reasonableness in furnishing said information, it provides no warranties or representations that the information provided is wholly accurate. Ultimately, the Prime Vendor is responsible for ensuring that its supply chain management is sufficiently executed and managed to meet the specific requirements contained in this solicitation. The Prime Vendor will be responsible for stocking any item that has a fifteen (15) case average monthly requirement.

INSERT: Any information provided to the Prime Vendor by the Government (i.e. estimates, headcounts, etc.) during contract performance is merely guidance to assist the Prime Vendor in fulfilling its role of supply chain management in the context of specific contract requirements. Though the Government will utilize its best efforts and reasonableness in furnishing said information, it provides no warranties or representations that the information provided is wholly accurate. Ultimately, the Prime Vendor is responsible for ensuring that its supply chain management is sufficiently executed and managed to meet the specific requirements contained in this solicitation. The Prime Vendor will be responsible for stocking any item that has a ten (10) case average monthly requirement as well as those exceptions outline in the statement of work.

3. On page 109 of Attachment 1 of SPE300-16-R-0003: XV: H: NEW ITEMS:

DELETE:

The Government does not intend to add a new item to the Prime Vendor’s permanent catalog unless there is anticipated demand of at least fifteen (15) cases per month. For existing catalog items, the Prime Vendor will be responsible for notifying the Contracting Officer on a monthly basis if any cataloged item has not been ordered in sufficient quantities to meet a fifteen (15) case monthly order quantity. Those slow moving items will be considered for catalog deletion. Special Order, Seasonal, Spices, Holiday Items will be required at less than fifteen (15) case demand levels and are excluded from the fifteen (15) case monthly demand review.

INSERT:

The Government does not intend to add a new item to the Prime Vendor’s permanent catalog unless there is anticipated demand of at least ten (10) cases per month. For existing catalog items, the Prime Vendor will be responsible for notifying the Contracting Officer on a monthly basis if any cataloged item has not been ordered in sufficient quantities to meet a ten (10) case monthly order quantity. Those slow moving items will be considered for catalog deletion. Special Order, Seasonal, Spices, Holiday Items, as well as Hospital and CDC unique items included but not limited to baby Food/Cereal, baby formula, prune juice, whole wheat flour, etc. will be required at less than ten (10) case demand levels and are excluded from the ten (10) case monthly demand review.

4. On page 124 of Attachment 1 of SPE300-16-R-0003 H: MANAGEMENT REPORTS: 3: SLOW MOVERS;

DELETE:

This report shall list all products that are being ordered in less than the required contract minimum monthly quantity of 15 cases. The purpose is to track slow moving items for possible deletion from the catalog.

INSERT: This report shall list all products that are being ordered in less than the required contract minimum monthly quantity of 10 cases. The purpose is to track slow moving items for possible deletion from the catalog.

5. On page 59 of Attachment 1 of SPE300-16-R-0003 VIII: INVENTORY AND WAREHOUSE MANAGEMENT: A:

DELETE:

The Prime Vendor will be required to maintain 60 days of supply (DoS) on hand at all times for each line item at their OCONUS warehouse location(s) in Japan, and Okinawa; however, for the Singapore and the Philippines platforms the Prime Vendor will be required to maintain 90 DoS (excluding Fresh Fruits and Vegetables and Local Market Ready items).

INSERT:

The Prime Vendor will be required to maintain 60 days of supply (DoS) on hand at all times for each line item at their OCONUS warehouse location(s) in Japan, and Okinawa; however, for the Singapore and the Philippines platforms the Prime Vendor will be required to maintain 75 DoS (excluding Fresh Fruits and Vegetables and Local Market Ready items).

6. On page 59 of Attachment 1 of SPE300-16-R-0003 VIII: INVENTORY AND WAREHOUSE MANAGEMENT: A:

INSERT:

The Prime Vendor has responsibility for all inventory management. Any decision made by the Prime Vendor to transport products that are over/under stocked from one Prime Vendor facility to another Prime Vendor facility is intra-transportation, and is considered a business expense incurred by the Prime Vendor. Any cost/expense incurred due to intra-transportation is the sole responsibility of the Prime Vendor, unless specifically authorized by the contracting officer.

7. On page 112-113 of Attachment 1 of SPE300-16-R-0003 XI: I: FILL RATE/SUBSTITUTIONS/EXCEPTIONS: 4.

DELETE:

4.Line Item Fill Rate Reporting / Pricing for Navy Ships Only Zone 1.

All offerors will be required to submit three sets of pricing for Zone 1. One submission for the COR (non USS Ship customers) market basket which will be a non line item fill rate pricing structure, one for the Navy Ship Market Basket (USS Ship customers) which would be a line item fill rate pricing structure, and one for the All Market Basket (USS Ship and non USS Ship), which would be for a nonline item fill rate pricing structure.

DLA Troop Support will make a determination as to which pricing structure will be utilized during negotiations.

The line item fill rate methodology is described below.

Prime Vendor quantity performance will be measured by the number of filled line items accepted by the customer as compared to line items ordered by the customer. The Contractor will provide the customer’s signed invoice or receipt document to their local NAVSUP Fleet Logistics Center STORES operator the same day the order was delivered and accepted by the customer. For catch weight items, the Contractor will meet or exceed the requisition required weight.

**A line item and stock numbered item are the same for the purposes of calculating fill rates.

(Lines Delivered at 98% / Total Number of Lines Ordered) X 100 = Fill Rate %

The Contractor will provide a line item fill rate of 98% without substitutions. This is measured by the quantity of each line or stock numbered item accepted divided by the quantity of each line or stock numbered item ordered, all within one order opportunity. It is not necessary to propose a higher fill rate, nor will we evaluate a proposed higher fill rate. During contract performance, higher fill rates may result in a higher Past Performance and Experience rating for option determinations and future acquisitions. Fill rates will be documented in the Contractor Performance Review System (CPARS) and low fill rates may impact past performance evaluations on subsequent acquisitions. If a Contractor delivers less than 98% of the customer ordered quantity, the affected line item will be considered not filled for performance reporting purposes only (i. e. Contractor still receives payment for quantity accepted based on submitted invoice, even if line item fill is below 98%).

A fill rate below 98% is considered unacceptable and will be counted against the vendor’s performance rating. No single line item will be credited for more than 100% fill-rate. The Contractor’s performance will be verified against the Subsistence Total Order Requisitioning Electronic System (STORES) for accuracy.

The Contractor shall promptly inform the Acquisition Specialist or Contracting Officer of any specific instances that would absolve or excuse its failure to deliver an order, or individual line item(s), in full; e.g. customer cancelled line or quantity without adjusting STORES, customer ordered incorrect quantity, item being discontinued, etc. If the Government agrees with the justification, the Government will post the exception into its in-house system which will result in the order or line(s) either being excluded from the Government fill-rate calculation or the correct order and receipt quantities being included in the calculation. These excusable instances represent Fill-Rate Exceptions, and are shown below. Non-conforming cases, e.g. incorrect items (mispicks) and damaged cases will not be accepted and receipted.

The Contractor shall submit its fill-rate report (to include a line by line fill rate) to the DLA Troop Support Contracting Officer. The reports shall be based on order required delivery dates (RDD), not order placement dates. The Government will compare and attempt to reconcile the Government and Contractor’s report. The Government’s fill-rate report will be the official government record for contract performance evaluation.

The Contractor shall submit its hard-copy fill-rate report grouped and sorted by customer DODAAC (first 6 positions of the PO), and then sorted by PO within each DODAAC grouping.

Only POs whose Required Delivery Date (RDD) falls within the report period, should be included on the report. In addition to the hard-copy fill rate report, and the aforementioned Vendor Fill Rate Exception Spreadsheet, the Contractor is required to submit an additional spreadsheet which is an electronic version of their hard-copy fill rate data. The Contractor shall use the provided, pre-formatted DLA Troop Support Vendor Fill Rate Line by Line Spreadsheet. Contractors are not permitted to reformat the spreadsheet. Column totals are not desired on this spreadsheet. The Government fill rate will be the official fill rate.

If a Contractor delivers less than 98% of the customer ordered quantity, the affected line item will be considered not filled for performance reporting purposes only. A fill rate of less than 98% is considered unacceptable and will be counted against the Prime Vendor’s performance.

(Lines Delivered at 98% / Total Number of Lines Ordered) X 100 = Fill Rate %

INSERT:

4. Line Item Fill Rate Reporting / Pricing for Navy Ships Only Zone 1.

All offerors will be required to submit three sets of pricing for Zone 1. One submission for the COR (non USS Ship customers) market basket which will be a non line item fill rate pricing structure, one for the Navy Ship Market Basket (USS Ship customers) which would be a line item fill rate pricing structure, and one for the All Market Basket (USS Ship and non USS Ship), which would be for a non line item fill rate pricing structure.

DLA Troop Support will make a determination as to which pricing structure will be utilized during negotiations.

The line item fill rate methodology is described below.

Prime Vendor quantity performance will be measured by the number of filled line items accepted by the customer as compared to line items ordered by the customer. The Contractor will provide the customer’s signed invoice or receipt document to their local NAVSUP Fleet Logistics Center STORES operator the same day the order was delivered and accepted by the customer.

For catch weight items, the Contractor will meet or exceed the requisition required weight.

**A line item and stock numbered item are the same for the purposes of calculating fill rates.

(Lines Items Accepted / Total Number of Lines Ordered) X 100 = Fill Rate %

The fill rate shall be calculated using items accepted at 98% fill or higher and shall not include substitutions, mis-picks, damaged cases.

Example:

1 purchase order placed with 5 lines. Each line must be 98% or higher. If any one line is below 98%, it is considered not filled or NIS.

MLL items or approved replacement only.

Beans - 100 ordered, 97 accepted. Calculates to 97% but below 98 so no fill.

Corn - 100 ordered, 98 accepted, 98% and fill, met contract requirement.

Mayo - 50 ordered, 40 accepted. 80% is below 98 = no fill.

Okra - 100 and 100, 100% - met contract requirement Soup - 20 and 19 accepted = 95% and no fill as below 98%.

Total = (Lines accepted at or above 98% or 198 / 370 items ordered) X 100 = 54%

The Contractor will provide a line item fill rate of 98% without substitutions. This is measured by the quantity of each line or stock numbered item accepted divided by the quantity of each line or stock numbered item ordered, all within one order opportunity. It is not necessary to propose a higher fill rate, nor will we evaluate a proposed higher fill rate. During contract performance, higher fill rates may result in a higher Past Performance and Experience rating for option determinations and future acquisitions. Fill rates will be documented in the Contractor Performance Review System (CPARS) and low fill rates may impact past performance evaluations on subsequent acquisitions.

If a Contractor delivers less than 98% of the customer ordered quantity, the affected line item will be considered not filled for performance reporting purposes only (i. e. Contractor still receives payment for quantity accepted based on submitted invoice, even if line item fill is below 98%).

A fill rate below 98% is considered unacceptable and will be counted against the vendor’s performance rating. No single line item will be credited for more than 100% fill-rate.

The Contractor’s performance will be verified against the Subsistence Total Order Requisitioning Electronic System (STORES) for accuracy.

The Contractor shall promptly inform the Acquisition Specialist or Contracting Officer of any specific instances that would absolve or excuse its failure to deliver an order, or individual line item(s), in full; e.g. customer cancelled line or quantity without adjusting STORES, customer ordered incorrect quantity, item being discontinued, etc. If the Government agrees with the justification, the Government will post the exception into its in-house system which will result in the order or line(s) either being excluded from the Government fill-rate calculation or the correct order and receipt quantities being included in the calculation. These excusable instances represent. Fill-Rate Exceptions, and are shown below. Non-conforming cases, e.g. incorrect items (mispicks) and damaged cases will not be accepted and receipted.

The Contractor shall submit its fill-rate report (to include a line by line fill rate) to the DLA Troop Support Contracting Officer weekly and monthly as stated in the Management Report section of the SOW. The reports shall be based on order required delivery dates (RDD), not order placement dates. The Government will compare and attempt to reconcile the Government and Contractor’s report. The Government’s fill-rate report will be the official government record for contract performance evaluation.

The Contractor shall submit its hard-copy fill-rate report grouped and sorted by customer DODAAC (first 6 positions of the PO), and then sorted by PO within each DODAAC grouping.

Only POs whose Required Delivery Date (RDD) falls within the report period, should be included on the report. In addition to the hard-copy fill rate report, and the aforementioned Vendor Fill Rate Exception Spreadsheet, the Contractor is required to submit an additional spreadsheet which is an electronic version of their hard-copy fill rate data. The Contractor shall use the provided, pre-formatted DLA Troop Support Vendor Fill Rate Line by Line Spreadsheet.

Contractors are not permitted to reformat the spreadsheet. Column totals are not desired on this spreadsheet. The Government fill rate will be the official fill rate.

If a Contractor delivers less than 98% of the customer ordered quantity, the affected line item will be considered not filled for performance reporting purposes only. A fill rate of less than 98% is considered unacceptable and will be counted against the Prime Vendor’s performance.

(Lines Delivered at 98% / Total Number of Lines Ordered) X 100 = Fill Rate %

8. On page 20 of Attachment 1 of SPE300-16-R-0003 III: Contract Implementation Phase/Transition Plan: paragraph vii:

INSERT:

· The new Prime Vendor will only be entitled to 50% of its distribution price for product purchased from the incumbent Prime Vendor in accordance with this section and ultimately delivered to customers under the resulting contract.

· The Prime Vendor will be responsible for reporting the remaining inventory purchased from the incumbent Prime Vendor on a weekly basis, or as directed by the contracting officer.

· The Prime Vendor shall submit a request to the contracting officer for each item once the stock purchased from the incumbent Prime Vendor is depleted. Thereafter, the contracting officer will update the distribution price applicable to the new inventory.

9. On page 69 of Attachment 1 of SPE300-16-R-0003 IX Security Measures/Force Protection: paragraph B. number 11.

DELETE:

11. Container Management:

The contractor shall be responsible for managing the flow of containers from the port through the warehouse and into the theater. Planned and unplanned delays such as supply route blackouts and local holidays must be considered in the schedule for container movement. Best efforts must be made to eliminate detention charges and reduce port storage fees on reefers while ensuring containers carrying “Not- in-Stock (NIS)” items are pulled first, followed by special meal containers. The contractor must consider all aspects impacting the supply chain when making their supply chain management decisions

10. On page 158 of Attachment 1 of SPE300-16-R-0003 52.212-2, Instructions to Offerors

DELETE:

Technical Factors I thru IV and Past Performance are of equal importance. When combined, technical factors I thru IV and Past Performance are significantly more important than price. However, as proposals become more equal in their technical merit, the evaluated price becomes more important. The Government will make a technical merit assessment based on information contained in the proposal and other information, which has or may be derived from sources other than the proposal. Any offeror that receives an Unacceptable rating on any individual factor will not be eligible for award.

INSERT:

Technical Factors I thru V and Past Performance are of equal importance. When combined, technical factors I thru V and Past Performance are significantly more important than price. However, as proposals become more equal in their technical merit, the evaluated price becomes more important. The Government will make a technical merit assessment based on information contained in the proposal and other information, which has or may be derived from sources other than the proposal. Any offeror that receives an Unacceptable rating on any individual factor will not be eligible for award.

11. On page 28 of Attachment 1: SOW of SPE300-16-R-0003: IV: D. Local Market Ready Items paragraph 4.

DELETE:

FF&V items that are unavailable in the Japanese, Singapore, the Philippines or the Okinawan Local Market, or are hardy enough to meet shelf-life requirements when delivered to the customer; i.e., red apples, golden/yellow apples, pears, russet potatoes and various specialty FF&V items that are required for holidays, must be purchased by the Prime Vendor from sources within the Continental United States (CONUS) and shipped surface carrier via the Defense Transportation System (DTS).

12. On page 92 of Attachment 1 SOW for solicitation SPE300-16-R-0003 XIII. Palletization:

DELETE:

A. All Prime Vendor shipments must be palletized in accordance with good commercial practices. The Prime Vendor is responsible for the purchase of all pallets, which must be American sized pallets (48 x40 inches). Pallets may not always be returned on a 1 to 1 basis. This does not relieve the Prime Vendor from delivering products on the proper type pallet. Pallet retrieval and all associated costs shall be the responsibility of the Prime Vendor.

1. Customers Other Than Navy Ships Palletization shall be in accordance with good commercial practices. Pallet height should notexceed 60”, including the pallet.

2. For Navy Ship Customers Only

All cases of product must be palletized. The type of pallet must only be a two-way entry wingtype pallet. Pallet height shall not exceed 45”, including the pallet. All pallets must be shrinkwrapped. Pallet retrieval, if requested by the ship customer, and all associated costs, shall be the responsibility of the contractor.

Cases may be mixed on a pallet as long as ANY one-line item is not embedded in the pallet and not visible or if all cannot be sight counted without breaking down the pallet.

Palletized/containerized unit loads shall be stenciled, printed, or labeled on two adjacent sides as follows:

NSN

Item Nomenclature Quantity, size and unit (quantity is the number of shipping cases in the unit load such as 40 Cs., 24 No. 2 ½ Cans) Contract Number, Including Delivery Order Number and Lot Number Name and Address of Prime Vendor Date of Pack Gross Weight and Cube Prime Vendor’s Name and Address Date of Pack Expiration Date

INSERT:

A. All Prime Vendor shipments must be palletized in accordance with good commercial practices. The Prime Vendor is responsible for the purchase of all pallets, which must be American sized pallets (48 x40 inches). Pallets may not always be returned on a 1 to 1 basis. This does not relieve the Prime Vendor from delivering products on the proper type pallet. Pallet retrieval and all associated costs shall be the responsibility of the Prime Vendor.

The palletized/containerized unit loads require placards. The placards contain identification and contract data markings, which are to be stenciled, printed or labeled on two adjacent sides of the unitized load. The placards contain the stock number, Food Items Code (FIC), item description, quantity, size and unit, the quantity is the number of shipping cases in the unit load, the gross weight and cube, the contract and delivery order number, expiration date and the contractors name and address.

1. Customers Other Than Navy Ships Palletization shall be in accordance with good commercial practices. Pallet height should not exceed 60”, including the pallet.

2. For Navy Ship Customers Only

A. All product must be palletized and placed on the pier alongside the ship.

B. Deliveries will be uniquely palletized for ultimate consignees. Under no circumstances will material for different consignees be co-mingled on the same pallet.

C. The contractor shall use standard commercial palletization and shrink-wrapping. Pallet retrieval, and all associated costs, shall be the responsibility of the Contractor.

D. The contractor shall provide a standardized pre-delivery customer fill rate report in hard copy in Excel format.

E. For deliveries to Aircraft Carriers (CVN/LHA/LHD Ship Classes) or Resupply Ships for their CARGO Load, the following applies.

1. When an Aircraft Carrier or Resupply ship (CARGO Load) is the ultimate consignee:

a. Palletized material shall not exceed 48” in height, including the pallet.

b. Product shall be palletized one-line item per pallet when practicable.

c. Palletizing shall be done using a two-way wing type pallet. The commercial wood wing pallet dimensions must be 40"X48"X48” or 48"X40"X48". The Industrial Standard Specification for Wood pallets is the "American Society of Mechanical Engineers (ASME) MH1-Part 9, Part Number MH1-9-05-SW4048." All pads must be commercial fiberboard, 40"X48", positioned on the pallets before loading. The unit load bonding material must consist of strappings: two-girth wise and three lengthwise. Bonding material shall be threaded through the strapping slots on the pallet to form a consolidated, stable cargo, which can be handled as a unit or commercially shrink-wrapped.

d. All shipments of bagged products susceptible to breakage/leakage such as flour, sugar, salt and rice must be further packaged in a tri-wall container.

2.When other than an Aircraft Carrier or Resupply ship is the ultimate consignee:

a. Palletized material shall not exceed 40” in height, including the pallet.

b. Pallets shall be double shrink-wrapped

13. On page 144 of Attachment 1 SOW for solicitation SPE300-16-R-0003 Component I.

DELETE:

The Aggregate Distribution Price is calculated by multiplying each distribution price by its respective estimated quantity for each tiered pricing period and totaling the results. This calculation is performed for all items in the selected Market Basket and for Distribution Categories 12-22 and N12-N22, which do not have associated item product prices.

The Aggregate Distribution Price is calculated by multiplying each distribution price by its respective estimated quantity for each tiered pricing period and totaling the results. This calculation is performed for all items in the selected Market Basket and for Distribution Categories 12-18 and N12-N18, which do not have associated item product prices

14. On Page 38 of Attachment 1 SOW for solicitation SPE300-16-R-0003: IV:M: Food Service Operating Supplies: paragraph 2

DELETE:

The Prime Vendor shall furnish mechanically refrigerated dispensing machines and heads suitable for use with the contractor’s bag-in-the-box juices and drinks. A sufficient number of machines and dispensing heads shall be installed in the contractor’s facility to accommodate the specific needs of each ordering activity.

INSERT:

The Prime Vendor shall furnish mechanically refrigerated dispensing machines and heads suitable for use with the contractor’s bag-in-the-box juices and drinks. A sufficient number of machines and dispensing heads shall be installed in the ordering activities facility to accommodate the specific needs of each ordering activity.

15. On Page 4 of Attachment 1 SOW for solicitation SPE300-16-R-0003

DELETE:

FAR clause 52.203-13 – CONTRACTOR CODE OF BUSINESS ETHICS AND CONDUJCT

INSERT:

FAR CLAUSE 52.203-13 CONTRACTOR CODE OF BUSINESS ETHICS AND CONDUCT

16. Attachment 12-Frozen Medical Materials Shipment DD Form 1502 of Solicitation SPE300-16-R-0003 is hereby- Deleted.

17. On page 106 of Attachment 1: SOW of SPE300-16-R-0003: XV: Delivery, Title, Orders, and Order Fill Rates: paragraph D: 2a:

Large Deck Home Port Ships that are leaving port for extended period shall place the order with maximum lead time possible, and coordinate with the Contracting Officer Representative (COR), if necessary.

18. Attachment 3- Zone 2- The Island of Okinawa Market Basket is replaced with Attachment 4 of Amendment 0003. This market basket has been updated to reflect the UOM for those items found on Tab 4 Currently cataloged items. The reflected UOM has updated the quantities found on Tab 3 (Market basket).

ATTACHEMENTS:

2: ESTIMATED EXERCISE AND DELIVERY SCHEDULE FOR ZONE 1

3: ESTIMATED DELIVERY SCHEDULE FOR ZONE 2

4. ATTACHMENT 4-ZONE 2-THE ISLAND OF OKINAWA MARKET BASKET

SECTION 3: PRE-PROPOSAL Q&A

Section 3 of this amendment provides answers to pre- proposal questions which were submitted by the due date of October 28, 2016 no later than 5 PM regarding Solicitation SPE300-16-R-0003. The answers are provided for clarification purposes only and do not change the requirements in the solicitation.

REFERENCE: Section I., Introduction, DLA-TS states The Zone 1 Prime Vendor will be required to support all authorized DLA customers located in Japan, Singapore, Diego Garcia, and the Philippines (i.e. military shore and/or ship facilities, military training exercise locations, and if required mobile kitchen tents (“MKT’s”).

1. VENDOR QUESTION: Does DLA have additional information regarding the “exercise sites noted in Japan that can be published so bidders can get an idea on the frequency and amount of weight, cases and cube per delivery?

DLA TROOP SUPPORTS ANSWER: See Attachment 2 (Estimated Exercise and Delivery schedule for Zone 1) of Amendment 0003. It is important to be aware that the exercise schedule and delivery schedule is subjected to change at time of award. This information is provided to give the offerors a reasonable expectation/estimation of exercises and delivery schedules.

In accordance to page 37 of the Attachment 1 SOW of the solicitation SPE300-16-R-0003 IV Product Sourcing and Pricing: K Lead times: 1. Items must be stocked in sufficient quantities to fill all ordering activity requirements. Fluctuations, increases, decreases, and surges in demand must be taken into consideration when the Prime Vendor determines its supply chain management, including stocking procedures. In addition, lead times from CONUS to OCONUS must be considered.

In accordance page 37 of the Attachment 1 SOW of the solicitation SPE300-16-R-0003 IV Product Sourcing and Pricing: I. Surge and sustainment paragraph 2: Mobilization: Normal mobilization strategies provide lead times of at least 30 days to build to the necessary support level. The contractor must have the ability to support this increased level of supply for an extended period of time.

In accordance page 106 of the Attachment 1 SOW of the solicitation SPE300-16-R-0003: XV Delivery, Time Orders and Order Fill Rates: D: Order placement regarding specific lead times for each zone.

In accordance page 58 of the Attachment 1 SOW of the solicitation SPE300-16-R-0003: VIII Inventory and Warehouse Management: Paragraph 6: “The Prime Vendor will be responsible for developing its own demand estimates to ensure proper stocking levels. The Prime Vendor will be responsible for developing its own average weekly/monthly demands (AWD/AMD) and managing the supply chain to meet all contractual requirements based on the most recent 52-week period. The Government; however, will use the most recent 52-week period to determine the average weekly demands when reviewing the vendor’s supply chain health, determining days of supply or reviewing requests for fill rate exceptions etc.”

REFERENCE: In Section IV.,D..,4.,Local Market Ready Items, DLA-TS requires that the FF&V items that are unavailable in the Japanese, Singapore, the Philippines or the Okinawan Local Market, or are hardy enough to meet shelf-life requirements when delivered to the customer; i.e., red apples, golden/yellow apples, pears, russet potatoes and various specialty FF&V items that are required for holidays, must be purchased by the Prime Vendor from sources within the Continental United States (CONUS) and shipped surface carrier via the Defense Transportation System (DTS).

2. VENDOR QUESTION:

a. Would DLA-TS allow a Prime Vendor to buy locally? This would save the USG the high transportation costs of shipping temperature controlled containers to Asia.

b. The Philippines and Singapore have few land customers’. The lengthy sail time incurred shipping these items from CONUS to these AOR’s would increase the spoilage for these areas.

c. Would DLA-TS allow the PV to decide the best methodology instead of being directed on how to purchase and manage the FF&V supply chain?

d. Apples and potatoes are embargo items for Japan. Ships may not give enough lead time to support a CONUS FF&V supply and no activity from the ships and cancellations will cause great damage to a CONUS mandated FF&V supply chain resulting in shortages and spoils.

e. Would DLA-TS allow the PV to decide the best methodology instead of being directed on how to purchase and manage the FF&V supply chain?

DLA TROOP SUPPORT ANSWER: See above Section 2: change number 11.

Additional DLA TROOP SUPPORT ANSWERS to vendor question 2. a. through e. See Attachment 1 SOW of the solicitation SPE300-16-R-0003: IV: C: Domestic Item Preference: (page 27, Paragraph 2).

See Attachment 1 SOW of the solicitation SPE300-16-R-0003: IV: D. Local market Ready Items. (page 28)

DLAD 52.216-9065, ECONOMIC PRICE ADJUSTMENT – ACTUAL MATERIAL COSTS FOR DLA TROOP SUPPORT – SUBSISTENCE PRODUCT PRICE BUSINESS MODEL f paragraph (b)(3)(i) Exceptions

REFERENCE: In Section IV., F., National Brands, DLA-TS states it may award National Contracts for specific food items such as the current DLA-TS contract for chicken.

3. VENDOR QUESTION: If the National Contract holder cannot meet demand, will the DLA-TS waive the Prime Vendor’s fill rate obligation?

DLA TROOP SUPPORT ANSWER: In accordance to Attachment 1 SOW of the Solicitation SPE300-16-R-0003: XV Delivery, Title, Orders, and Order Fill Rates: I.: Fill Rate/Substitutions/ Exceptions. (Please take note of the fill rate language as well as the exception codes listed on page 117.: More specifically:

“The Contractor shall promptly inform the Acquisition Specialist or Contracting Officer of any specific instances that would absolve or excuse its failure to deliver an order, or individual line item(s), in full; e.g. customer cancelled line or quantity without adjusting STORES, customer ordered incorrect quantity, item being discontinued, etc. If the Government agrees with the justification, the Government will post the exception into its in-house system which will result in the order or line(s) either being excluded from the Government fill-rate calculation or the correct order and receipt quantities being included in the calculation. These excusable instances represent Fill-Rate Exceptions, and are shown below. Non-conforming cases, e.g. incorrect items (mispicks) and damaged cases will not be accepted and receipted.”

REFERENCE: In Section IV., F., National Brands, DLA-TS states it may award National Contracts for specific food items such as the current DLA-TS contract for chicken.

4. VENDOR QUESTION: We can only bid transportation on the current MPA structure. If DLA-TS awards National Contracts that significantly increase Prime Vendor transportation costs, will DLA-TS issue a contract modification to increase the distribution fee to cover these additional, unforeseeable costs?

DLA TROOP SUPPORT ANSWER: Source loading is the preferred method for transportation to OCONUS warehouses Facilities for National Contracts.

See Attachment 1 SOW of the solicitation SPE300-16-R-0003: XV Delivery, Title, Orders, and Order Fill Rates: H.: New Items (page 109-111) See Attachment 1 SOW of the solicitation SPE300-16-R-0003: I. Introduction: “The prices for all aspects of performance detailed in the Statement of Work (“SOW”) below must be included in the offeror’s fixed Distribution Price(s). Offeror’s are reminded that fixed price type contracts place the maximum risk and responsibility for all costs, and resulting profit or loss, on the Prime Vendor. Distribution Price(s) will remain fixed for the life of the contract and offeror’s failure to consider the full cost of performance and/or the risks of performing in this region will not serve as a basis to adjust Distribution Price(s).”

REFERENCE: In Section IV., J., Rebates/Discounts and Price-Related Provisions, DLA-TS requires that the Prime Vendor warrant that product prices under the contract are equal to or lower than product prices to commercial accounts.

5. VENDOR QUESTION: What is the “look back” window for the price comparison? Prices can change quickly; a DLA-TS price for an item in January may be higher than a commercial price for that same item in May. If the reason for the price change is manufacturer price changes, is the Prime Vendor in compliance with the warranty?

DLA TROOP SUPPORT ANSWER: In accordance to Attachment 1 SOW of the solicitation SPE300-16-R-0003: IV: Product Sourcing and Pricing: J: Rebates/Discounts and Price related Provisions. (page 36 paragraph 3)

“Upon request the Prime Vendor shall provide the Government any invoices, quotes, or agreements relevant to the product price component for existing catalog items, for any new items being added to the catalog, and for requested price changes to existing catalog items. The Prime Vendor must include detailed payment terms on each invoice or quote used to substantiate product price(s), including any applicable discounts or rebates. If there are no payment terms associated with the document, the Prime Vendor must annotate it with “No payment terms.”

In addition, Attachment 1 SOW of the solicitation SPE300-16-R-0003: XVI Contact Authority, Administration, Invoices, Payments and Reports and Prime Vendor 832 Catalogs: H. Management Reports: (page 124 paragraph 2. 832 Reports monthly and Page 124 paragraph 5. Rebates:

“Each line to contain at a minimum: DLA Troop Support stock number, item description, current product price, new product price, distribution price, current total price (current product + distribution), new total price (new product + distribution), distribution category, purchase ratio factor, unit of issue, unit of measure, and NAPA discount.”

“All rebates passed along to the customer via off-price reductions, or that is due to the customer, shall be summarized by listing each customer and the rebate amount. Also, include the manufacturer offering the rebate and the product usage. The total shall be per customer and per contract. A negative report is required.”

Further clarification; Please refer to DLAD 52.216-9065 ECONOMIC PRICE ADJUSTMENT – ACTUAL MATERIAL COSTS FOR DLA TROOP SUPPORT - SUBSISTENCE PRODUCT PRICE BUSINESS MODEL (OCT 2015) Full text found on pages 166-171.

REFERENCE: In Section IV., J., Rebates/Discounts and Price-Related Provisions, DLA-TS requires that the Prime Vendor warrant that product prices under the contract are equal to or lower than product prices to commercial accounts.

6. VENDOR QUESTION: Is there an exception for commercial sales that are materially different than the DLA-TS sale? For example, if a commercial customer placed an order which was 500% larger than the DLA-TS order and the Prime Vendor could offer the commercial customer a spot discount for the large order, would the Prime Vendor be in violation of this term?

DLA TROOP SUPPORT ANSWER: In accordance to Attachment 1 SOW of the solicitation SPE300-16-R-0003: IV: J: Rebates/Discounts and Price Related Provisions: (page 35)

“The contractor shall employ prevailing commercial methods in the pursuit of discounts, rebates, allowances or other similar economic incentives or benefits, for the customers supported under this contract, throughout the period of performance.”

Paragraph 4 (page 36):

“The Government may require (as needed) the Prime Vendor submit invoices and other documentation from all subcontractor tiers or any manufacturer/grower or person in the product price supply chain, to substantiate that all discounts, rebates, allowances or other similar economic incentives or benefits have been applied to the product price charged to the Government and/or to substantiate that product prices under this contract are equal to or lower than product prices that are given to its commercial customers. If the Contracting Officer determines, after reviewing an invoice or other documentation, that a discount, rebate, allowance or other similar economic incentive or benefit should have been passed on to the Government, or if price verifications reveal any instance of overpricing or underpricing, the Government shall be entitled to a prospective product price reduction and a retroactive refund for the amount of the overcharges or discounts, rebates, allowances or other similar economic incentives or benefits, including interest and the contractor shall be entitled to a credit for any undercharges. Likewise, if the Contracting Officer determines that a product price was not equal to or lower than that given the contractor’s commercial customer accounts, the Government shall be entitled to a prospective product price reduction and a retroactive fund for the difference between the product price charged to the Government and the product price charged to the contractor’s commercial customers, including interest. The Contracting Officer, or authorized representative, shall have the right to examine and audit all the Contractor's records (as defined at FAR 52.215-2(a)) relevant to the existence of discounts, rebates, allowances or other similar economic incentives or benefits, and commercial customer product prices. Failure to exercise this right shall not constitute a defense or alter the Government’s entitlement to any other remedies by contract or by law.”

REFERENCE: In section IV., K., 2, DLA-TS states If an item with an established demand (12 weeks of historical demand data) is not properly managed by the Prime Vendor, and a not in stock (“NIS”) situation occurs that is projected to last for more than 21 days, the Prime Vendor will be required to airlift the product from CONUS at its own expense.

7. a. VENDOR QUESTION: 12 weeks of historical demand data is too little demand to support a mature supply chain of inventory. Does DLA-TS mandate an airlift every time for these NIS items without considering the substantial costs to the contractor?

DLA TROOP SUPPORT ANSWER: In accordance to Attachment 1 SOW of the solicitation SPE300-16-R-0003: IV: K. Item Availability: paragraph 2: (page 37) “If an item with an established demand (12 weeks of historical demand data) is not properly managed by the Prime Vendor, and a not in stock (“NIS”) situation occurs that is projected to last for more than 21 days, the Prime Vendor will be required to airlift the product from CONUS at its own expense.”

b. VENDOR QUESTION: Will these be evaluated on a case by case basis as some NIS items may be non-critical to the mission?

DLA TROOP SUPPORT ANSWER: See above Section 2: Changes numbered 2, 3, 4 and 5.

REFERENCE: In Section V: C: Customs, DLA-TS states USTRANSCOM will be responsible for all customs clearance from the point of debarkation through to the Prime Vendor’s OCONUS facility(s) for material shipped through DTS. The Prime Vendor is responsible for customs clearance from the OCONUS facility(s) to the final delivery point

8. VENDOR QUESTION: Currently, the Prime Vendor is heavily involved in the customs clearance to…