Attachment_1_-_SPE300-16-R-0003_Statement_of_Work_(SOW).pdf

SPE300-16-R-0003 SUBSISTENCE PRIME VENDOR JAPAN, SINGAPORE, DIEGO GARCIA, THE

PHILIPPINES AND THE ISLAND OF OKINAWA - ATTACHMENT 1

SF1449 - CONTINUATION SHEET

ADMINISTRATIVE DATA/DELIVERY SCHEDULE

CONTINUATION OF THE BLOCKS ON PAGE 1 (SF 1449)

BLOCK 8 (continued)

OFFER DUE DATE/LOCAL TIME: December 13, 2016, 5:00 P.M. PHILADELPHIA TIME

NOTE: This solicitation and any amendments shall be signed by each Joint Venture / Partner and submitted along with each offer. Only one originally signed copy of this solicitation document is required for submission.

All offers are required to be mailed to the Defense Logistics Agency (DLA) Troop Support Post Office Box 56667 or hand carried to the DLA Troop Support Business Opportunities Office as described in Block 9 below.

BLOCK 9 (continued):

All offers/modifications/withdrawals must be plainly marked on the OUTERMOST ENVELOPE with the solicitation number, closing date, and time set for the receipt of offers.

Send MAILED OFFER to:

DEFENSE LOGISTICS AGENCY

DLA TROOP SUPPORT

POST OFFICE BOX 56667

PHILADELPHIA, PA 19111-6667

Deliver HAND CARRIED OFFER, including delivery by commercial carrier, to:

DLA TROOP SUPPORT

BUSINESS OPPORTUNITIES OFFICE

BLDG. 36, SECOND FLOOR

700 ROBBINS AVENUE

PHILADELPHIA, PA 19111-5092

All hand carried offers are to be delivered to the Business Opportunities Office between 8:00 AM and 5:00 PM, Monday through Friday, except for legal federal holidays as set forth in 5 USC 6103.

Contractors intending to deliver offers in-person should be advised that the Business Opportunities Office (Bid Room) is located within a secure military installation. In order to gain access to the facility, an escort may be required. The escort will be an employee from the Bid Room. The following are telephone numbers for the Bid Room: (215)737-8511, (215)737-9044, (215)737-8556, (215)737-0317. It is the offeror’s responsibility to ensure that offers are received at the correct location at the correct time. Please allow sufficient time to complete delivery of hand carried offers. Since the length of time necessary to gain access to the facility varies based on a number of circumstances, it is recommended that you arrive at the installation at least one hour prior to the time the solicitation closes to allow for security processing and to secure an escort.

NOTE: THIS IS A SUGGESTION AND NOT A GUARANTEE THAT YOU WILL GAIN ACCESS TO THE

BASE IF YOU ARRIVE ONE HOUR BEFORE THE OFFER IS DUE.

Offerors that respond to this solicitation using a commercial carrier service must ensure that the commercial carrier service “hand carries” the package to the Business Opportunities Office prior to the scheduled closing time.

NOTE: Facsimile and E-mail Offers are not acceptable forms of transmission for submission of initial proposals or revisions to initial proposals submitted in response to this solicitation. As directed by the Contracting Officer, facsimile and e-mail may be used during discussions/negotiations, if discussions/negotiations are held, for proposal revision(s), including Final Proposal revision(s).

BLOCK 17A (Continued):

OFFERORS: SPECIFY

CAGE CODE: __________________________________________________________________

TYPE OF OFFEROR: (circle one) Individual doing business as a firm, Partnership, Corporation, Joint Venture, or Other (please explain) ________________________________

FOREIGN BUSINESS (Circle………YES – OR -- NO)

PRIMARY COMPANY POC/NEGOTIATOR: ____________________________________

PHONE #: __________________________________________________________________

E-MAIL ADDRESS: ______________________________________________________

BLOCK 17B (CONTINUED)

REMITTANCE WILL BE MADE TO THE ADDRESS THAT THE CONTRACTOR HAS LISTED IN THE

SYSTEM FOR AWARD MANAGEMENT (SAM).

OFFEROR’S assigned DUNS Number:

AUTHORIZED NEGOTIATORS:

The offeror represents that the following persons are authorized to negotiate on its behalf with the Government in connection with this request for proposal. Please list names, titles, e-mail addresses, and telephone numbers for each authorized negotiator.

BLOCKS 19-24 (CONTINUED): SEE ATTACHMENT 2

CAUTION NOTICENOTICE TO DLA SUPPLIERS

The Government reserves the right to cancel this solicitation. If this should occur, the Government will not be liable for any proposal preparation cost or any other costs that offerors may have incurred related to this solicitation.

In accordance with FAR 52.225-25, each offeror must certify that the offeror, and any person owned or controlled by the offeror, does not engage in any activity for which sanctions may be imposed under section 5 of the Iran Sanctions Act. Each offeror shall update its ORCA certifications and/or by submission of an offer, make the above certification (See FAR 52.212-3, paragraph (o)).

Additional copies of Attachments 2 and 3 will be provided by DLA Troop Support to offerors upon request (e-mail request is preferred). See below e-mail contact information.

DLA Troop Support Point of Contact:

Jacob.Slotnick@dla.mil Adreina.Fludd-Bennett@dla.mil Cynthia.Cahill@dla.mil

CONTRACTOR CODE OF BUSINESS ETHICS (FEB 2012) DLA TROOP SUPORT

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 violation 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 CONDUJCT; 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.

CAUTION NOTICE

****PRE-PROPOSAL QUESTIONS****

SOLICITATION NUMBER SPE300-16-R-0003

DLA TROOP SUPPORT WILL ENTERTAIN PRE-PROPOSAL QUESTIONS TO

FURTHER CLARIFY AND DISCUSS THE REQUIREMENTS OF THIS SOLICITATION.

DUE DATE FOR QUESTIONS IS October 28, 2016

5:00 PM, PHILADELPHIA TIME.

IF YOU PLAN TO SUBMIT QUESTIONS, PLEASE SEND AN E-MAIL WITH THE FOLLOWING

INFORMATION:

NAME OF FIRM

NAME AND TITLE OF REPRESENTATIVE

ADDRESS OF FIRM

E-MAIL ADDRESS

PHONE NUMBER

SIZE OF BUSINESS

QUESTIONS

THIS INFORMATION MAY BE E-MAILED TO

JACOB SLOTNICK, ADREINA FLUDD-BENNETT, and Cynthia Cahill :

Jacob.Slotnick@dla.mil Adreina.Fludd-Bennett@dla.mil Cynthia.Cahill@dla.mil

NOTE: Vendors are encouraged to carefully review the solicitation before developing questions for submission. Answers to questions will be provided via amendment.

CAUTION NOTICE

DLA PACKAGING REQUIREMENTS FOR PROCUREMENT

(1) Additional Packaging and Marking Requirements:

(a)Prohibited cushioning and wrapping materials: Use of asbestos, excelsior, newspaper, shredded paper (all types, including wax paper and computer paper), and similar hygroscopic or non-neutral materials and all types of loose-fill materials, including polystyrene, is prohibited for application such as cushioning, fill, stuffing, and dunnage. In addition, the use of yellow wrapping or packaging material is prohibited except where used for the containment of radioactive material.

(b)MIL-STD-129 establishes requirements for contractors that ship packaged materiel to the Government to provide both linear bar codes and two-dimensional (2D) symbols on shipping labels. Shipping labels with 2D symbols are referred to as Military Shipping Labels (MSL) and are required on all CONUS and OCONUS shipments with the following exceptions:

(1) Subsistence items procured through full-line food distributors (prime contractors), “market ready” type items shipped within the Continental United States (CONUS) to customers within CONUS;

(2) Any item for which ownership remains with the contractor until the item is placed in designated locations at the customer location prior to issuance to the customer. Government control begins upon placement of the item by the contractor into the designated location or issuance from the designated location by contractor personnel (i.e., the contractor is required to stock bins at the customer location and/or issue parts from a contractor controlled parts room).

(3) Bulk petroleum, oil and lubricant products delivered by pipeline; or tank car, tanker and tank trailer for which the container has a capacity greater than 450 L (119 gallons) as a receptacle for a liquid; a maximum net mass greater than 400 kg (882 pounds) and a capacity greater than 450123 L (119 gallons) as a receptacle for a solid; or a water capacity greater than 454 kg (1000124 pounds) as a receptacle for a gas.

(4)Medical items procured through Customer Direct suppliers or prime contractors that do not enter the Defense Transportation System.128

(5)Delivery orders when the basic contract has not been modified to require MIL-STD-129.

(c)MIL-STD-129 provides numerous illustrations of what should be bar-coded and the recommended placement of the bar code. Further information is available on the DLA Packaging Web Site at:

http://www.dla.mil/LandandMaritime/Offers/Services/TechnicalSupport/Logistics/Packaging.aspx .

(2) Requirements for Treatment of Wood Packaging Material (WPM) (a)Assets packed in or on wood pallets, skids, load boards, pallet collars, wood boxes, reels, dunnage, crates, frames, and cleats must comply with the Heat Treatment (HT) or Heat Treatment/Kiln Dried (HT/KD) (continuous at 56 degrees Centigrade for 30 minutes) standard in 09/19/2016 5 DoD Manual 4140.65-M "Compliance for Defense Packaging: Phytosanitary Requirements for Wood Packaging Material (WPM)". WPM must be stamped or branded with the appropriate certification markings as detailed in DOD 4140.65-M and be certified by an accredited American Lumber Standards Committee (ALSC)-recognized agency.

The WPM certification markings must be easily visible, especially in pallet loads, to inspectors.

(3) Palletization shall be in accordance with MD00100452, REVISION C, DATED 09/2016 found at http://www.dla.mil/LandandMaritime/Offers/Services/TechnicalSupport/Logistics/Packaging/Palletization.aspx

SANITARY CONDITIONS

(a) Food establishments.

(1) All establishments and distributors furnishing subsistence items under DLA Troop Support contracts are subject to sanitation approval and surveillance as deemed appropriate by the Military Medical Service or by other Federal agencies recognized by the Military Medical Service. The Government does not intend to make any award for, nor accept, any subsistence products manufactured, processed, or stored in a facility which fails to maintain acceptable levels of food safety and food defense, is operating under such unsanitary conditions as may lead to product contamination or adulteration constituting a health hazard, or which has not been listed in an appropriate Government directory as a sanitarily approved establishment when required. Accordingly, the supplier agrees that, except as indicated in paragraphs (2) and (3) below, products furnished as a result of this contract will originate only in establishments listed in the U.S. Army Public Health Command (USAPHC ) Circular 40-1, Worldwide Directory of Sanitarily Approved Food Establishments for Armed Forces Procurement, (Worldwide Directory) (available at:

http://phc.amedd.army.mil/topics/foodwater/ca/Pages/DoDApprovedFoodSources.aspx ). Compliance with the current edition of DoD Military Standard 3006A, Sanitation Requirements for Food Establishments, is mandatory for listing of establishments in the Worldwide Directory. Suppliers also agree to inform the Contracting Officer immediately upon notification that a facility is no longer sanitarily approved and/or removed from the Worldwide Directory and/or other Federal agency’s listing, as indicated in paragraph (2) below. Suppliers also agree to inform the Contracting Officer when sanitary approval is regained and listing is reinstated.

(2) Establishments furnishing the products listed below and appearing in the publications indicated need not be listed in the worldwide directory. Additional guidance on specific listing requirements for products/plants included in or exempt from listing is provided in Appendix A of the worldwide directory.

(i) Meat and meat products and poultry and poultry products may be supplied from establishments which are currently listed in the “Meat, Poultry and Egg Inspection Directory,] published by the United States Department of Agriculture, Food Safety and Inspection Service (USDA, FSIS), at http://www/fsis/usda/gov/wps/portal/fsis/topics/inspection/mpi-directory . The item, to be acceptable, shall, on delivery, bear on the product, its wrappers or shipping container, as applicable, the USDA shield and applicable establishment number. USDA listed establishments processing products not subject to the Federal Meat and Poultry Products Inspection Acts must be listed in the Worldwide Directory for those items.

(ii) Intrastate commerce of meat and meat products and poultry and poultry products for direct delivery to military installations within the same state (intrastate) may be supplied when the items are processed in establishments under state inspection programs certified by the USDA as being “at least equal to” the Federal Meat and Poultry Products Inspection Acts. The item, to be acceptable, shall, on delivery, bear on the product, its wrappers or shipping container, as applicable, the official inspection legend or label of the inspection agency and applicable establishment number.

(iii) Shell eggs may be supplied from establishments listed in the “List of Plants Operating under USDA Poultry and Egg Grading Programs” published by the USDA, Agriculture Marketing Service (AMS) at http://www.ams.usda.gov/poultry/grading.htm.

(iv) Egg products (liquid, dehydrated, frozen) may be supplied from establishments listed in the “Meat, Poultry and Egg Product Inspection Directory” published by the USDA FSIS at http://apps.ams.usda.gov/plantbook/Query_Pages/PlantBook_Query.asp . All products, to be acceptable, shall, on delivery, bear on the product, its wrappers or shipping container, as applicable, the official inspection legend or label of the inspection agency and applicable establishment number.

(v) Fish, fishery products, seafood, and seafood products may be supplied from establishments listed under “U.S. Establishments Approved For Sanitation And For Producing USDC Inspected Fishery Products” in the “USDC Participants List for Firms, Facilities, and Products”, published electronically by the U.S. Department of Commerce, National Oceanic and Atmospheric Administration Fisheries (USDC, NOAA) (available at:

seafood.nmfs.noaa.gov). All products, to be acceptable, shall, on delivery, bear on the product, its wrappers or shipping container, as applicable, the full name and address of the producing facility.

(vi) Pasteurized milk and milk products may be supplied from plants having a pasteurization plant compliance rating of 90 percent or higher, as certified by a state milk sanitation officer and listed in “Sanitation Compliance and Enforcement Ratings of Interstate Milk Shippers” (IMS), published by the U.S. Department of Health and Human Services, Food and Drug Administration (USDHHS, FDA) at http://www.fda.gov/Food/GuidanceRegulation/FederalStateFoodPrograms/ucm2007965.htm. These plants may serve as sources of pasteurized milk and milk products as defined in Section I of the “Grade ‘A’ Pasteurized Milk Ordinance” (PMO) published by the USDHHS, FDA at http://www.fda.gov/Food/GuidanceRegulation/GuidanceDocumentsRegulatoryInformation/Milk/default.htm.

(vii) Manufactured or processed dairy products only from plants listed in Section I of the “Dairy Plants Surveyed and Approved for USDA Grading Service”, published electronically by Dairy Grading Branch, AMS, USDA (available at: http://www.ams.usda.gov/AMSv1.0/getfile?dDocName=STELPRD3651022 ) may serve as sources of manufactured or processed dairy products as listed by the specific USDA product/operation code.

Plants producing products not specifically listed by USDA product/operation code must be Worldwide Directory listed (e.g., plant is coded to produce cubed cheddar but not shredded cheddar; or, plant is coded for cubed cheddar but not cubed mozzarella). Plants listed in Section II and denoted as “P” codes (packaging and processing) must be Worldwide Directory listed.

(viii) Oysters, clams and mussels from plants listed in the “Interstate Certified Shellfish Shippers Lists” (ICSSL), published by the USDHHS, FDA at http://www.fda.gov/food/guidanceregulation/federalstatefoodprograms/ucm2006753.htm.

(3) Establishments exempt from Worldwide Directory listing. Refer to AR 40-657/NAVSUPINST 4355.4H/MCO P1010.31H, Veterinary/Medical Food Safety, Quality Assurance, and Laboratory Service, for a list of establishment types that may be exempt from Worldwide Directory listing. (AR 40-657 is available from National Technical Information Service, 5301 Shawnee Road, Alexandria, VA 22312 ; 1-888-584-8332 ; or download from web site: http://www.apd.army.mil/pdffiles/r40_657.pdf ) For the most current listing of exempt plants/products, see the Worldwide Directory (available at:

http://phc.amedd.army.mil/topics/foodwater/ca/Pages/DoDApprovedFoodSources.aspx).

(4) Subsistence items other than those exempt from listing in the Worldwide Directory, bearing labels reading “Distributed By”, “Manufactured For”, etc., are not acceptable unless the source of manufacturing/processing is indicated on the label or on accompanying shipment documentation.

(5) When the Military Medical Service or other Federal agency acceptable to the Military Medical Service determines the levels of food safety and food defense of the establishment or its products have or may lead to product contamination or adulteration, the Contracting Officer will suspend the work until such conditions are remedied to the satisfaction of the appropriate inspection agency. Suspension of the work shall not extend the life of the contract, nor shall it be considered sufficient cause for the Contractor to request an extension of any delivery date. In the event the Contractor fails to correct such objectionable conditions within the time specified by the Contracting Officer, the Government shall have the right to terminate the contract in accordance with the “Default” clause of the contract.

(b) Delivery conveyances.

The supplies delivered under this contract shall be transported in delivery conveyances maintained to prevent tampering with and /or adulteration or contamination of the supplies, and if applicable, equipped to maintain a prescribed temperature. The delivery conveyances shall be subject to inspection by the government at all reasonable times and places. When the sanitary conditions of the delivery conveyance have led, or may lead to product contamination, adulteration, constitute a health hazard, or the delivery conveyance is not equipped to maintain prescribed temperatures, or the transport results in product ‘unfit for intended purpose’, supplies tendered for acceptance may be rejected without further inspection.

FEDERAL FOOD, DRUG AND COSMETIC ACT-WHOLESALE MEAT ACT

(a) The Contractor warrants that the supplies delivered under this contract comply with the Federal Food, Drug and Cosmetic Act and the Wholesome Meat Act and regulations promulgated there under. This warranty will apply regardless of whether or not the supplies have been:

(1) Shipped in interstate commerce,

(2) Seized under either Act or inspected by the Food and Drug Administration or Department of Agriculture.

(3) Inspected, accepted, paid for or consumed, or any or all of these, provided however, that the supplies are not required to comply with requirements of said Acts and regulations promulgated there under when a specific paragraph of the applicable specification directs otherwise and the supplies are being contracted for military rations, not for resale.

(b) The Government shall have six months from the date of delivery of the supplies to the government within which to discover a breach of this warranty. Notwithstanding the time at which such breach is discovered, the Government reserves the right to give notice of breach of this warranty at any time within this six-month period or within 30 days after expiration of such period, and any such notice shall preserve the rights and remedies provided herein.

(c) Within a reasonable time after notice to the Contractor of breach of this warranty, the Government may, at its election:

(1) Retain all or part of the supplies and recover from the Contractor, or deduct from the contract price, a sum the Government determines to be equitable under the circumstances;

(2) Return or offer to return all or part of the supplies to the Contractor in place and recover the contract price and transportation, handling, inspection and storage costs expended therefore; provided, that if the supplies are seized under either Act or regulations promulgated there under, such seizure, at Government option, shall be deemed a return of supplies within the meaning of this clause and thereby allow the government to pursue the remedy provided herein. Failure to agree to any deduction or recovery provided herein shall be a dispute within the meaning of the clause of this contract entitled “Disputes”.

(d) The rights and remedies provided by this clause shall not be exclusive and are in addition to other rights and remedies provided by law or under this contract, nor shall pursuit of a remedy herein or by law either jointly, severally or alternatively, whether simultaneously or at different times, constitute an election of remedies.

NON-ACCEPTABILITY OF GOVERNMENT SURPLUS MATERIAL

(a) Definition.

“Surplus material,” as used in this clause, means new, unused material that was purchased and accepted by the U.S. Government and subsequently sold by the DLA Disposition Services, by Contractors authorized by DLA Disposition Services, or through another Federal Government surplus program. The terms “surplus” and “Government surplus” are used interchangeably in this clause.

(b) The Government has determined that offers of surplus material will not be considered for this acquisition.

REMOVAL OF GOVERNMENT IDENTIFICATION FROM NON-ACCEPTED

SUPPLIES

The Contractor shall remove or obliterate from a rejected end item and its packing and packaging, any marking, symbol, or other representation that the end item or any part of it has been produced or manufactured for the United States Government. Removal or obliteration shall be accomplished prior to any donation, sale, or disposal in commercial channels.

???? DID YOU REMEMBER TO: ????

Number Reminder Check 1 Print and distribute the past performance questionnaire (Attachment 7) to your contract holders?

2 Identify your authorized negotiators above as required? (page 3) Did you identify which negotiator will serve as the primary point of contact? (page 2)

3 Submit a list of all your affiliates / subsidiaries / partially or wholly-owned companies that will be utilized for this contract, see below addendum to FAR 52.212-1 Instructions to Offerors.

4 Use the Attachment 2 and Attachment 3 spreadsheet for submission of your pricing information?

5 Prepare and return 1 written and 1 electronic copy of a signed and completed solicitation document (Volume I), to include all attachments and amendments of this solicitation. ; 6 written and 1 electronic copies of the Technical Proposal (Volume II); 2 written copies of the Business Proposal / Pricing (Volume III), inclusive of Attachments 2 and Attachments 3 (Market Basket) , and 1 electronic copy of Attachment 2 and Attachment 3? Be sure that all electronic copies match your written copies and include all attachments.

6 Submit (1) hard copy of each MANUFACTURER’S quote using the official DLA Quote sheet Attachments 5 and 6 for every item listed on Attachment 2; tab “Market Basket” (ONE COPY OF THE QUOTE FOR EACH INDIVIDUAL ITEM IN THE MARKET BASKET)? Identify the item number from the market basket that it supports on the quote sheet?

Submit the quotes in item number sequence? Submit quotes that are dated no earlier than December 13, 2016. Was each line on the Official DLA Quote sheet completed by the manufacturer? Are FOB Origin Terms clearly identified on the quote? Is the NAPA discount clearly identified on the quote and removed from the product price? Refer to solicitation for actual requirements.

7 Submit a list of CONUS and OCONUS ‘Distribution Facility(s)” or “Places of Performance(s)” that will directly support the proposed customers (pages 137 - 138 of Factor I)? Warehouses functioning as backups should be designated as such.

8 If you are a Large or Foreign Business, submit your Small Business Subcontracting Plan in accordance with FAR 52.219-9?

NOTE: The DoD Office of Small Business Programs lists the following information as it pertains to subcontracting goals for FY 2016:

Small Business – 36% HubZone Small Business – 3% Service Disabled Veteran-Owned Small Business – 3% Small Disadvantaged Business – 5% Women-Owned Small Business – 5%

9 Submit your best offer?

STATEMENT OF WORK

TABLE OF CONTENTS

I. INTRODUCTION 15

II. ESTIMATED VALUE/GUARANTEED MINIMUM/MAXIMUM QUALITY 16

III. CONTRACT IMPLEMENTATION PHASE 17

IV. PRODUCT SOURCING AND PRICING 21

A. PRICE DEFINITIONS AND PROVISIONS 21

B. DISTRIBUTION CATEGORIES 23

C. DOMESTIC ITEM PREFERENCE 27

D. LOCAL MARKET READY ITEMS 28

E. BRAND NAME ITEMS 28

F. NATIONAL CONTRACTS 29

G. DLA TROOP SUPPORT MANUFACTURER’S PRICING AGREEMENT

(MPA) PROGRAM 29

H. MANDATORY ITEMS (MANDATORY FOOD PRODUCTS AND

NON-FOOD ITEMS) 30

I. NATIONAL ALLOWANCE PROGRAM AGREEMENT (NAPA) 32

J. REBATES/DISCOUNTS AND PRICE-RELATED PROVISIONS 35

K. ITEM AVAILABILITY 37

L. SURGE AND SUSTAINMENT 37

M. FOOD SERVICE OPERATING SUPPLIES (FSOS) 38

N. DISPENSING SUPPLIES AND SERVICES 38

O. NAVY STANDARD MENU ITEMS (ZONE ONE ONLY) 41

P. SHIP STORE CARGO ITEMS, (QCOG OR IQ ITEMS) (ZONE 1 ONLY) 41

Q. DISPOSAL OF PRODUCTS 41

R. TITLE 42

V. TRANSPORTATION 42

A. BEST SERVICES 42

B. INSURANCE/LIABILITY AND CLAIMS 45

C. CUSTOMS 47

D. PRIME VENDOR RESPONSIBILITIES REGARDING TRANSPORTATION 47

E. GOVERNMENT RESPONSIBILITIES REGARDING TRANSPORTATION 48

F. VEHICLE TRANSPORTATION 48

G. AIRLIFTS 48

H. DELIVERY REQUIREMENTS FOR SUBSISTENCE CARGO TO AIR MOBILITY

COMMAND (AMC) FLIGHTS TO DIEGO GARCIA 49

I. PRIME VENDOR PRODUCT TRANSFER 54

VI. INTERNATIONAL AGREEMENTS, WORKERS COMPENSATION INSURANCE, AND

INTERPRETATIONS/TRANSLATIONS 55

A. INTERNATIONAL AGREEMENTS (I.E., DEFENSE COOPERATION

AGREEMENT, DIPLOMATIC NOTES, STATUS OF FORCES

AGREEMENT (“SOFA”), ETC.) 55

B. WORKERS COMPENSATION INSURANCE 56

C. INTERPRETATIONS/TRANSLATIONS 56

VII. ZONE I – REMOTE REQUIREMENTS 57

A. DIEGO GARCIA (DGAR) 57

B. ZAMBOANGA 58

VIII. INVENTORY AND WAREHOUSE MANAGEMENT 58

A. WAREHOUSE MANAGEMENT – ZONE 1 AND ZONE 2 58

B. WAREHOUSE MANAGEMENT – ZONE 2 OKINAWA – CONTRACTOR

OWNED CONTRACTOR OPERATED (COCO) / GOVERNMENT OWNED

CONTRACTOR OPERATED (GOCO) WAREHOUSE SPACE 59

C. GOVERNMENT FURNISHED MATERIAL (GFM) – OPERATION

RATIONS – ZONE 2 – OKINAWA 62

D. BREAKING CASES 64

IX. SECURITY MEASURES / FORCE PROTECTION 64

A. SECURITY MEASURES / FORCE PROTECTION 64

B. THEATER SUPPORT 67

X. QUALITY CONTROL, QUALITY ASSURANCE AND INSPECTIONS 72

A. PRODUCT QUALITY 72

B. PRODUCT SANITARILY APPROVED SOURCE REQUIREMENTS 76

C. WARRANTIES 76

D. QUALITY PROGRAM 76

E. QUALITY SYSTEM MANAGEMENT VISITS AND AUDITS 78

F. WAREHOUSING AND SANITATION PROGRAM/STORED PRODUCT

PEST MANAGEMENT 86

G. DELIVERY TEMPERATURES, SHIPPING AND STORAGE REQUIREMENTS 86

H. REJECTION PROCEDURES 87

I. AUTHORIZED RETURNS 88

J. SHORT SHIPMENTS AND SHIPPING ERRORS 88

K. ARMY VETERINARY INSPECTORS AND INSPECTIONS 88

L. MILITARY INSPECTION AT DESTINATION 88

XI. PACKAGING, PACKING, AND LABELING 90

XII. MARKINGS 91

XIII. PALLETIZATION 92

XIV. CUSTOMERS 93

A. ZONE I – JAPAN, SINGAPORE, DIEGO GARCIA AND THE PHILIPPINES 93

B. ZONE 2 – THE ISLAND OF OKINAWA 102

C. NON-COMPETITION 103

XV. DELIVERY, TITLE, ORDERS, AND ORDER FILL RATES 103

A. CUSTOMER DELIVERIES 103

B. TITLE 105

C. ORDERING SYSTEM – SUBSISTENCE TOTAL ORDER AND RECEIPT

ELECTRONIC SYSTEM (STORES) 105

D. ORDER PLACEMENT 106

E. ORDER CANCELLATION 107

F. EMERGENCY ORDERS 108

G. ORDER FILL OR SUBSTITUTION POLICY 109

H. NEW ITEMS 109

I. FILL RATE/SUBSTITUTIONS/EXCEPTIONS 112

XVI. CONTRACT AUTHORITY, ADMINISTRATION, INVOICES, PAYMENTS, AND

REPORTS AND PRIME VENDOR 832 CATALOGS 119

A. CONTRACTING AUTHORITY 119

B. ADMINISTRATION 119

C. MARKETING 119

D. NOTICE TO CONTRACTORS 119

E. CONTRACTOR PERFORMANCE ASSESSMENT REPORTING SYSTEM

(CPARS) 119

F. INVOICING 120

G. PAYMENTS 122

H. MANAGEMENT REPORTS 123

I. CATALOG ORDER GUIDE 127

J. PRIME VENDOR 832 CATALOGS 127

K. IN-PROCESS REVIEWS (IPR) 129

L. OTHER CONSIDERATIONS 129

IN PERSONAM JURISDICTION FOR CIVIL OR CRIMINAL ACTIONS BROUGHT BY

THE UNITED STATES GOVERNMENT (DEC 2009) 130

ADDENDUM TO FAR 52.212-4 – CONTRACT TERMS AND CONDITIONS –

COMMERCIAL ITEMS 130

ADDENDUM TO FAR 52.212-1 INSTRUCTIONS TO OFFERORS – COMMERCIAL ITEMS 133

ADDENDUM TO FAR 52.212-2 – EVALUATION – COMMERICAL ITEMS 159

RP 001: DLA PACKAGING REQUIREMENT FOR PROCUREMENT 171

SUBSISTENCE 864 INVENTORY REPORTING (Attachment 8)

STATEMENT OF WORK

I. INTRODUCTION

This solicitation seeks offers for the Subsistence Prime Vendor support to military and other federally funded customers located in the following two zones;

Zone 1 - Japan, Singapore, Diego Garcia and the Philippines Zone 2 - Okinawa

The Defense Logistics Agency-Troop Support (DLA-Troop Support) intends to enter into a Fixed Price Indefinite Delivery Indefinite Quantity (“IDIQ”) Contract, one contract per zone, with Economic Price Adjustment (“EPA”) with a full line food distributor who will act as a Prime Vendor responsible for the supply and delivery of semi-perishable and perishable food items as well as Food Service Operating Supply (“FSOS”) items. An IDIQ contract provides for an indefinite quantity, within stated limits, of specific supplies or services to be furnished during a fixed period, with individual deliveries to be scheduled by customers placing orders with the contract (FAR 16.504(a)). The Prime Vendor must be capable of supplying all chilled products, semi perishable food products including but not limited to frozen fish, meat and poultry, other frozen foods (fruits, vegetables, prepared foods, etc.), dairy and ice cream products, fresh and frozen bakery products, beverage base & juices (for dispensers), beverages and juices (non- dispenser), fresh fruits and vegetables. non-food items (non-food items including but not limited to food service operating supplies (FSOS) and 1Q-COG. FSOS items may consist of:

kitchen and dining supplies, pots and pans and kitchen utensils. 1Q-COG items may consist of:

toiletries/health and comfort items, and Government Furnished Material (“GFM”), including but not limited to Unitized Group Rations (“UGRs”), Meals Ready to Eat (“MREs”), Health and Comfort packs (“HCPs”), and other operational rations items (either currently in existence or to be introduced during the term of this contract).

The Government intends to make two awards; one award for Zone 1 and one award for Zone 2. An offeror may offer on one or both zones. Each contract shall be for a term of 60 months, with three separate pricing tiers. The first tier shall be for a 24-month period (inclusive of and up to 6-month ramp-up period followed by, at least, an 18-month performance period depending on the length of ramp-up).

The second tier shall be 18-month performance period immediately following the first tier. The third and final tier will be an additional 18-month performance period directly following the second tier. 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). As detailed below, Product Price(s) are distinct from the aforementioned Distribution Price(s) and therefore should not be included in any way in the latter.

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 (“MKTs”).

The Zone 2 Prime Vendor will be required to support all authorized DLA customers located in Okinawa (i.e., military shore and/or ship facilities, ration break points, trailer-transfer points, and military training exercise locations, etc.).

Though the solicitation describes existing customers known to the Contracting Officer at the time of the solicitation’s issuance, other customers, including military, Department of Defense (“DoD”), or non- DOD, may be added as necessary during the life of any resultant contract. The addition of said customers located within the solicitation’s specified region will be at no additional cost to the Government.

Notes:

The term “Ordering Facilities” or “Ordering Activities,” as used throughout this solicitation, will refer to all of the delivery points under this solicitation.

The terms “contractor” and “Prime Vendor”. As well as the terms “purchase order” and

“delivery order” are used interchangeably throughout this Statement of Work.

Prices are to be submitted in an offeror’s proposal, and payment will be made for performance under any resultant contract, in U.S. dollars.

II. ESTIMATED VALUE/GUARANTEED MINIMUM/MAXIMUM QUANTITY:

ACQUISITION VALUE ZONE 1 Japan, Singapore, Diego Garcia and the Philippines:

The total estimated dollar value for Zone 1 is $307,763,652. The maximum dollar value will be $615,527,303 inclusive of all tiered pricing periods and surge requirements. The guaranteed minimum for the entire contract will be ten percent (10%) of the estimated dollar value, which equates to $30,776,365.

Zone 1 Japan, Singapore, Diego Garcia and the Philippines Total Estimated Dollar Value $307,763,652 Maximum Dollar Value (inclusive of all tiered Pricing period and surge)

$615,527,303

Guaranteed Minimum (10%) $30,776,365

ACQUISITION VALUE ZONE 2: Okinawa

The total estimated dollar value for Zone 2 is $111,123,696. The maximum dollar value will be $222,247,392 inclusive of all tiered pricing periods and surge requirements. The guaranteed minimum for the entire contract will be ten percent (10%) of the estimated dollar value, which equates to $11,112,370.

Zone 2 Okinawa Total Estimated Dollar Value $111,123,696 Maximum Dollar Value (inclusive of all tiered Pricing period and surge)

$222,247,392

Guaranteed Minimum (10%) $11,112,370

The Government’s legal obligation under each contract shall only be for that guaranteed minimum and shall be satisfied once purchases for that amount have been made.

Each region covered by this solicitation includes multiple ordering facilities (i.e. customers), as listed in the Deliveries and Performance section of this solicitation. Ordering facilities within the regions covered by this solicitation can be added and/or subtracted as conditions warrant. As previously described, said additions/subtractions will occur at no additional cost to the Government. In order to provide an estimate of the size of each contract, an approximate dollar value has been attributed to each zone/region as follows:

Zone 1:

Total estimated annual sales for Japan: $44,640,919 Total estimated annual sales for Singapore: $10,414,766 Total estimated annual sales for Diego Garcia: $1,291,804 Total estimated annual sales for Philippines $5,205,241

Zone 2:

Total estimated annual sales for Okinawa: $22,224,739

Note: Unless otherwise specified, the remainder of this document applies to each Prime Vendor awarded a contract pursuant to this solicitation.

III. CONTRACT IMPLEMENTATION PHASE / TRANSITION PLAN

The contract implementation phase is defined as the ramp-up and/or ramp down period which begins immediately after award and ends when each individual customer supported under the contract has placed its first order under the new contract.

1. In the event that a contract is awarded pursuant to this solicitation to the incumbent Prime Vendor, the contract implementation phase will be utilized to establish fully functional catalogs in accordance with the terms and conditions of the new contract. The following terms shall apply:

i. Within six (6) months after award, the incumbent Prime Vendor shall be fully prepared to support all customers under the terms and conditions of the new contract. New and fully functional catalogs must be established during this time.

ii. The incumbent Prime Vendor shall first use existing inventory that is stored at its facility or in the pipeline prior to using inventory purchased under the terms of the new contract, if those items are included on the new contract. Any such items shall be placed on the new catalog(s) at the product price as defined by the prior contract and the distribution price as defined by the new contract. The incumbent Prime Vendor shall use the existing product before new product is ordered.

iii. New product that is ordered during the implementation phase shall only be ordered to replenish old product or to bring in new items requested and approved by the Contracting Officer. This product must be ordered and cataloged at the product price defined by the new contract.

iv. Product prices shall be updated on the new catalog(s) in accordance with the terms and conditions of the new contract.

2. In the event that a contract is awarded pursuant to this solicitation to a firm other than the incumbent Prime Vendor, the contract implementation phase will be utilized to ramp-up the new Prime Vendor and ramp-down the incumbent. Ramp-up/down planning shall begin immediately after award. The ramp up/down process is expected to be completed within six (6) months after award. The following terms shall apply:

i. Within fifteen (15) days after the incumbent Prime Vendor is notified that it has not received the contract awarded pursuant to this solicitation, the incumbent Prime Vendor is expected to submit a proposed ramp-down schedule to the Contracting Officer. Upon receipt and after review and discussion, the Contracting Officer intends to provide the new Prime Vendor with the incumbent Prime Vendor’s weekly Supply Chain Fitness Reports to aid forecasting levels and begin the ramp-up phase. This information will be provided to the new Prime Vendor for informational purposes only, and with no guarantees of demand, accuracy, or otherwise. The new Prime Vendor will remain responsible for making its own demand planning and procurement decisions during contract implementation.

ii. It is estimated that the incumbent Prime Vendor will remain the principal source of food and non-food supplies for the first five months of the implementation phase.

iii. The incumbent Prime Vendor may have stocked product available for sale to the new Prime Vendor. If available, the new Prime Vendor is required to procure the available product offered for sale from the incumbent Prime Vendor. Any such sale shall be in accordance with the following terms and conditions. Any additional terms beyond those specified below must be agreed upon between the two parties and will be considered a commercial agreement separate from the requirements of the resulting contract from this solicitation and resulting contract.

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.

The new Prime Vendor shall inspect all products prior to acceptance. The following products may be excluded from any required purchase transaction.

1. Product that fails to meet minimum contractual requirements (i.e. proper storage, shelf life remaining, etc.);

2. Product that does not have sufficient anticipated demand;

3. Product that is sourced from Outside Contiguous United States (OCONUS) contractors (i.e. fresh fruits and vegetables, etc.); and or

4. Product, the purchase of which would not make economic sense for the new contractor and the Government, alike.

v. The new contractor will be responsible for determining whether any of the above considerations apply, with the exception of the fourth category, which must have the concurrence of the Contracting Officer

vi. Once the new Prime Vendor and the incumbent Prime Vendor have agreed upon the products that will be purchased per the considerations provided herein, the incumbent Prime Vendor shall deliver those products to the new Prime Vendor’s warehouse facility for inspection and acceptance. A detailed list of all items included in this sale shall be provided to the Contracting Officer to include the product name, stock number, quantity sold, etc.

The new Prime Vendor shall distribute the products purchased from the incumbent prime vendor in accordance with the Product Quality and Quality Program requirements contained within the QUALITY CONTROL, QUALITY ASSURANCE AND INSPECTIONS section of this Statement of Work.

vii. All products purchased by the new Prime Vendor at the “Product Price” as defined by DLAD 52.216-9065 Economic Price Adjustment – Actual Material Costs for Subsistence Product Price Business Model shall be used to establish fully functional catalogs under the new contract and provide initial support to the customers under the terms and conditions of the new contract. See below section

- Prime Vendor 832 Catalogs.

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.

ix. All GFM that meets minimum contractual requirements shall be delivered by the incumbent Prime Vendor to the new Prime Vendor’s warehouse facility. In the event the GFM is being stored at a GOCO, this does not apply.

In the event that a commercial warehouse is used for Zone 2, GFM product shall be cataloged by the new Prime Vendor at a $0 product price and the new Prime Vendor will only be entitled to 50% of its distribution price for GFM delivered by the incumbent Prime Vendor in accordance with this section and ultimately delivered to customers under the resulting contract.

x. The Government intends to have the new Prime Vendor's catalog(s) live and available for use by customers within 5 months after the new contract is awarded. The last remaining month of the contract implementation period (i.e. month 6) shall be used by the incumbent for the submission and payment of its final invoices under the instant contract. If the GOCO is contracted to be utilized by the new Prime Vendor, the Government anticipates that it will be necessary for both contractors to co-exist at the GOCO for the final 30 days of the implementation period to ensure a smooth transition of support to the customer.

xi. The new Prime Vendor’s access to the GOCO facility during the implementation phase shall be coordinated with the Contracting Officer, Contracting Officer Representative, and the Defense Logistics Agency Pacific office.

xii. For Zone 2, the new PV may be required to store inbound product in containers outside the GOCO prior to end of the implementation period due to special limitations of the GOCO. All costs associated with using temporary storage containers during an implementation/transition period shall be included in the offerors’ standard distribution prices.

xiii. It is the Government’s intent to have all orders placed under the new contract 5 months after award. The new Prime Vendor shall be prepared to make first order deliveries no later than the last month of the implementation period (i.e. month 6). It is the Government’s intent to have all orders placed under the new Prime Vendor contract when the incumbent contract expires.

However, the Government reserves the right to phase in customer ordering points when it is in the best interest of the Government.

Sample Implementation Timeline

NOTE: The implementation timeline begins on the contract award date and ends 180 days thereafter. If a stop work order is issued during the implementation, the Prime Vendor will be required to stop work and will not be able to perform unless the stop work order is rescinded. If the stop work order is rescinded, the Prime Vendor will resume the implementation schedule from the date that the stop work order was issued. The 180-day period will not re-start from the beginning. For example:

Contract Award Date: March 30, 2017 Stop Work Order Issued: April 30, 2017 Stop Work Order Rescinded: June 30, 2017 Implementation Timeline: March 30, 2017 – April 30, 2017 and June 30, 2017 – Nov 30, 2017

IV. PRODUCT SOURCING AND PRICING

A. PRICE DEFINITIONS AND PROVISIONS

1. Reference DLAD 52.216-9065 ECONOMIC PRICE ADJUSTMENT – ACTUAL

MATERIAL COSTS FOR DLA TROOP SUPPORT – SUBSISTENCE PRODUCT PRICE

BUSINESS MODEL for pricing details.

2. In reference to DLAD 52.216-9065, paragraph (b)(3):

““Product price” is the most recent DLA Troop Support MPA price or the most recent manufacturer, grower or private label holder commercial price per unit to the Contractor, exclusive of standard freight.

(i) Exceptions:

(A) Fresh fruits and vegetables (FF&V):

(1) The product is listed in the distribution category for Prime Vendor fresh fruits and vegetables (FF&V)){ 10 & N10}; and

(2) It is necessary for the product to be transported into the local market of the importer, as otherwise approved under the contract, from a foreign country because local supply does not exist or it is insufficient to meet demand requirements; and

(3) The importer that establishes the product price is the firm that actually performs the FF&V import service, including, but not limited to: procurement, storage, consolidation, pallets, and palletizing as it applies to the importer’s normal commercial sales, and the importer has comparable commercial sales in the market that is the point of import.

(B) A contiguous United States (CONUS) based manufacturer, grower or private label holder’s product pricing which is a national price** inclusive of transportation costs to a Distribution Point shall be supported by documentation and may be considered by the Government on a case by case basis, upon concurrence of the Contracting Officer.

** The contracting officer may, on a case by case basis, accept a CONUS based manufacturer/grower/private label holder’s product pricing which is a national priced. National Pricing is further clarified as a CONUS based manufacturer, grower or private label holder’s product price, inclusive of transportation costs to a SPV CONUS distribution point.

In general, the Contracting Officer will consider national pricing only for items that are sold nationally, have comparable commercial sales, and when the manufacturer/grower/private label holder’s commercial practice is to offer pricing only on a nationally priced basis (i.e. a fixed price that is f.o.b. destination to any CONUS location). The contracting officer has the sole discretion to determine whether to accept national pricing, and the contracting officer’s decision whether to accept national pricing will be final.

(C) Mandatory source items: The product price shall be limited to the nonprofit agency’s price for product as set in accordance with applicable law. The product price shall be based on f.o.b. origin/nonprofit agency. (Prices set in accordance with applicable law (f.o.b. origin/nonprofit agency.)

(D) Prime Vendor table…