Afghanistan_SOW_-_SPE300-17-R-0018.pdf

SPE300-17-R-0018 Subsistence Prime Vendor Afghanistan – 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: January 12, 2017, 3:00 P.M. PHILADELPHIA TIME

NOTE: This solicitation shall be signed by the offeror, and each Joint Venture / Partner as applicable, 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:__________________________________________________________

PRIMARY COMPANY POC/NEGOTIATOR:________________________________

PHONE #:______________________________________________________________

E-MAIL ADDRESS:______________________________________________________

FAX NUMBER__________________________________________________________

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 NOTICE

NOTICE 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 costs or any other costs the contractors may have incurred.

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).

Note To Offerors-The Internal Revenue Services issued its final regulations in Federal Register Vol 81, No. 160 on August 18, 2016 concerning section 301 of Public Law 111-347 (dated January 2, 2011), which added section 5000C to the Internal Revenue Code. The final regulations provide guidance on the applicability of Section 5000C(a) which imposes on any foreign person that receives a specified Federal procurement payment, a tax equal to 2 percent of the amount of such payment.

The Defense Logistics Agency is working on implementation, and once that is complete collection will commence.

Additional copies of Attachment 2 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 Points of Contacts:

LCDR Gwen Garcia, Katie Cosenza, and Neil-Michael Chiaradio at:

gwen.garcia@dla.mil, kathryn.cosenza@dla.mil, and neil.michael.chiaradio@dla.mil.

mailto:gwen.garcia@dla.mil mailto:kathryn.cosenza@dla.mil mailto:neil.michael.chiaradio@dla.mil

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

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

This solicitation or contract includes FAR clause 52.203-13 - CONTRACTOR CODE OF BUSINESS ETHICS AND CONDUCT; the contractor shall comply with the terms of the clause and have a written code of business ethics and conduct; exercise due diligence to prevent and detect criminal conduct;

promote ethical conduct and a commitment to compliance with the law within their organization; and timely report any violations of federal criminal law involving fraud, conflict of interest, bribery or gratuity violations found in title 18 of the United States Code or any violations of the False Claims Act.

(31 U.S.C. 3729-3733). When FAR 52.203-13 is included in the contract, contractors must provide a copy of its written code of business ethics and conduct to the contracting officer upon request by the contracting officer.

**** PRE-PROPOSAL CONFERENCE ****

SOLICITATION NUMBER SPE300-17-R-0018

A pre-proposal conference will be held by DLA Troop Support to explain and clarify the requirements of this solicitation and to respond to general questions raised by prospective offerors. Interested firms are encourages to attend.

Prospective offeror are requested to submit questions in writing at least 6 days prior to the conference to allow inclusion of the questions in the agenda. Questions will be considered at any time prior to or during the conference; however, offerors will be asked to confirm verbal questions in writing. Responses to all questions will be incorporated in an amendment to the solicitation.

The Government will not be liable for expenses incurred by an offeror prior to contract award.

Offerors are cautioned that remarks and explanations provided at the conference shall not change the terms of this solicitation unless the solicitation is amended in writing.

The conference will be held as follows:

Date: December 15, 2016 (Tentative) Location: Philadelphia, PA Time: TBD Phone #: TBD

NOTE: Date, Location, Time, and Phone # will be confirmed via amendment.

The cutoff date for receipt of questions is December 9, 2016, 3:00 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: LCDR Gwen Garcia, Katie Cosenza, and Neil- Michael Chiaradio at: gwen.garcia@dla.mil, kathryn.cosenza@dla.mil, and neil.michael.chiaradio@dla.mil.

mailto:gwen.garcia@dla.mil mailto:kathryn.cosenza@dla.mil mailto:neil.michael.chiaradio@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

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

Number Reminder Check 1 Print and distribute the past performance questionnaire (page 144) to your contract holders?

2 Fill in and sign the SF1449 as required to include your CAGE Code, see blocks 17a, 30a, 30b, and 30c?

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

4 Submit a list of all your affiliates / subsidiaries / partially or wholly-owned companies that will be utilized for this contract.

5 Print one copy of the entire solicitation to include this attachment from the DLA Troop Support website http://www.dla.mil/TroopSupport/Subsistence/Foodservices/Regions/OCONUS/PVMidEast.aspx Or DLA Internet Bid Board System (DIBBS) https://www.dibbs.bsm.dla.mil/default.aspx Return one (1) signed and completed copy of this entire solicitation with your proposal to include FAR 52.212.03 fill-ins?

6 Return one (1) signed and completed copy of any amendments (all pages) issued to this solicitation to include any required clause fill-ins?

7 Use the Attachment 2 spreadsheet for submission of your pricing information?

8 Prepare and return 5 written and 1 electronic copies of the Technical Proposal, 2 written copies of the Business Proposal / Pricing (inclusive of attachment 2), and 1 electronic copy of attachment 2? Be sure that all electronic copies match your written copies to include any attachments.

9 Submit (1) hard copy of each MANUFACTURER’S quote using the official DLA Quote sheet on page (154) of this attachment 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 2, 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.

10 Submit a list of all CONUS and OCONUS “Distribution Facility(s)” or “Places of Performance” that will directly support the proposed customers (page 95, Factor I)? Warehouses functioning as backups should be designated as such.

11 Submit your best offer?

12 If you are a Large or Foreign Business, submit your Small Business Subcontracting Plan in accordance with FAR 52.219-9? NOTE: Subcontracting plans are required from Large or Foreign Business offerors and are not required by an offerors’ subcontractors. The DoD Office of Small Business Programs lists the following information as it pertain to subcontracting goals:

FY 2016

https://www.dibbs.bsm.dla.mil/default.aspx

Number Reminder Check Small Business – 34.5% HubZone Small Business – 3.0% Service Disabled Veteran-Owned Small Business – 3.0% Small Disadvantaged Business – 5.0% Women-Owned Small Business – 5.0%

TABLE OF CONTENTS

PAGE #

STATEMENT OF WORK 12

I. Introduction 12 II. Estimated Value/Guaranteed Minimum/Maximum Quantity 14 III. Contract Implementation Phase 15 IV. Product Sourcing and Pricing 18 A. Price Definitions and Provisions 18 B. Distribution Categories 23 C. Domestic Item Preference 24 D. Local Market Ready (LMR) Items 25 E. Brand Name Items 25 F. National Contracts 26 G. DLA Troop Support Manufacturer’s Pricing Agreement (MPA)

Program 26 H. Mandatory Items (Mandatory Food Products and Non-Food Items 27 I. National Allowance Program Agreement (NAPA) 30 J. Rebates/Discounts and Price Related Provisions 34 K. Item Availability 36 L. Surge and Sustainment 36 M. Food Service Operating Supplies (FSOS) 37 N. Dispensing Supplies and Services 37 O. Disposal of Products 38 V. Transportation 39 A. Best Services 39 B. Insurance/Liability and Claims 42 C. Customs 44 D. Prime Vendor Responsibilities 44 E. Government Responsibilities 45 F. Vehicle Transportation 45 G. Global Positioning System (GPS) 46

H. Convoy Security in Afghanistan 47 I. Airlifts 48

J. Direct Vendor Deliveries Within Afghanistan 50 K. Prime Vendor Product Transfer 50

VI. International Agreement, Workers Compensation Insurance, and Interpretations/Translations 50 A. International Agreements, Defense Cooperation Agreements, Diplomatic Notes, and Status of Forces Agreement (SOFA) 50

B. Workers Compensation Insurance 51 C. Interpretations/Translations 51 VII. Inventory and Warehouse Management 52 A. Warehouse Management 52 B. Government Furnished Material (GFM) – Operational Rations 53

C. Breaking Cases 55 D. Office Space and Equipment for Government Employees 55 VIII. Security Measures / Force Protection and Theater Support 58 A. Security Measures / Force Protection 58 B. Theater Support 62 C. Mandatory Eligibility for Installation Access 69 IX. Quality Control, Quality Assurance and Inspections 70 A. Product Quality 70 B. Product Sanitarily Approved Source Requirements 73 C. Warranties 77 D. Quality Program 77 E. Quality Systems Management Visits and Audits 78 F. Warehousing and Sanitation Program/Stored Product Pest

Management 87 G. Delivery Temperatures, Shipping and Storage Requirements 87 H. Rejection Procedures 88 I. Authorized Returns 89 J. Short Shipments and Shipping Errors 89 K. Army Veterinary Inspectors and Inspections 89 L. Military Inspection at Destination 90 X. Packaging, Packing, and Labeling 91 XI. Markings 92 XII. Palletization 94 XIII. Customers 94 XIV. Delivery, Title, Orders, and Order Fill Rates 96

A. Customer Deliveries 96 B. Title 98

C. Ordering System – Subsistence Total Order and Receipt Electronic System (STORES) 98

D. Order Placement 100 E. Order Cancellation 100 F. Holidays 101 G. Emergency Orders 101 H. Order Fill or Substitution Policy 101 I. New Items 101

J. Fill Rates/Substitutions/Exceptions 104 XV. Contract Authority, Administration, Invoices, Payments and Reports 108 A. Contracting Authority 108 B. Administration 108 C. In-Process Reviews 109 D. Notice to Contractors 109 E. Contractor Performance Assessment Reporting System (CPARS) 109 F. Invoicing 110 G. Payments 113 H. Management Reports 114 I. Prime Vendor 832 Catalogs 119 J. Other Considerations 120 XVI. Afghanistan Programs 120

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

COMMERCIAL ITEMS 122

ADDENDUM TO FAR 52.212-1 – INSTRUCTIONS TO OFFERORS –

COMMERCIAL ITEMS 132

ADDENDUM TO FAR 52.212-2 – EVALUATION COMMERCIAL ITEMS 156

SUBSISTENCE TOTAL ORDERING AND RECEIPT ELECTRONIC SYSTEM

(STORES) EDI IMPLEMENTATION GUIDELINES 163

SUBSISTENCE 864 INVENTORY REPORTING 208

I. INTRODUCTION

This solicitation seeks offers for subsistence Prime Vendor support to military and other authorized customers located throughout the country of Afghanistan. For purposes of this solicitation, U.S. operations within Afghanistan have been deemed a “contingency operation” as defined in Federal Acquisition Regulation (FAR) 2.101, see http://www.acq.osd.mil/dpap/pacc/cc/international_operations.html. This designation, though accurate as of the time of the solicitation’s issuance, is subject to change depending upon numerous factors affecting the region. As an offeror, each firm must be aware of the overall fluidity of the political, economic, security, and military climate of the region and incorporate that into its proposal accordingly. Offerors are also advised to consult with the U.S.

Department of State (www.travel.state.gov) and other appropriate resources for the latest information on the political and security conditions inside Afghanistan. The contractor bears all risk and responsibility for personal injury or death of its employees or agents, or subcontractor employees or agents, or for any damage to, loss of or demurrage of equipment during the transportation of product into and within Afghanistan.

The Defense Logistics Agency-Troop Support (DLA-Troop Support) intends to enter into a Fixed Price Indefinite Delivery Indefinite Quantity (IDIQ), with Economic Price Adjustment (EPA), contract with a full line food distributor who will act as a Prime Vendor responsible for the supply and delivery of semi-perishable and perishable item food items as well as non-food Food Service Operating Supply (FSOS) items. The Prime Vendor must be capable of supplying all chilled products, semi perishable food products, 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 & juices (non-dispenser), fresh fruits and vegetables, non-food items and Government Furnished Material (GFM) such as Unitized Group Rations (UGR’s), Meals Ready to Eat (MREs), Health and Comfort packs (HCPs) and other operational ration items (either currently in existence or to be introduced during the term of this award).

The Prime Vendor will be required to support all authorized DLA customers located in Afghanistan (i.e. mobile kitchen tents (MKTs), ration break points, trailer-transfer points, and military training exercise locations, etc.). As previously stated, these customers include military or other authorized customers. 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. Any change in the place(s) of performance cited in the contract is prohibited unless it is specificially approved in advance by the Contracting Officer at no additional charge to the Government.

STATEMENT OF WORK

http://www.acq.osd.mil/dpap/pacc/cc/international_operations.html http://www.travel.state.gov/

The Government intends to make one award. The 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 an 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 an 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 price 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 an 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.

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.

The term “convoy security” as used throughout this Statement of Work includes security provided by the Afghanistan Public Protection Force (APPF), private or commercial security firms, and any other future GIRoA mandated entity. All costs associated with convoy security performed by the APPF, future private convoy security (PCS) firms, or any other future GIRoA mandated entity, shall be included in the non-standard distribution price, and shall be fixed for the length of each contract pricing tier.

Afghanistan Distribution Network: At a minimum, the Prime Vendor is required to have one Outside Continental United States (OCONUS) physical warehouse location and distribution network located within Afghanistan. This facility and distribution network shall be used to provide subsistence support of those items included on the resulting contract catalog (at award or added during contract performance) to any and all customers located within Afghanistan, including the supply of fresh items (i.e., fruits and vegetables, bakery, dairy, etc.). It is expected that the Prime Vendor will support all customers inside of Afghanistan via delivery routes originating from this warehouse location and distribution network within Afghanistan, unless otherwise authorized by the Contracting Officer. For instance, the Contracting Officer may authorize the Prime Vendor to source fresh and/or Local Market Ready (LMR) products from approved sources located within Afghanistan for direct delivery to its customers. However, these circumstances are expected to be the exception to the general rule that all subsistence support will originate from the Prime Vendor’s physical warehouse and distribution network within Afghanistan.

Deliveries within Afghanistan: While performing this contract, the Prime Vendor may be required to transport both full and empty containers and/or trucks to and from Afghanistan delivery locations during the delivery process. When convoy security is required for Afghanistan deliveries, the Prime Vendor shall arrange for its own convoy security, unless otherwise directed by the Contracting Officer. The use of convoy security and the mode of delivery used must be approved by the Contracting Officer in coordination with the customer. The Prime Vendor must fully comply with all applicable laws and regulations related to convoy security, including Defense Federal Acquisition Regulation Supplement (DFARS) clause 252.225-7043 Antiterrorism/Force Protection for Defense Contractors Outside the United States (currently a June 2015 revision), and all appropriate clauses which may supplement it or supersede it. Currently, the only security authorized in Afghanistan is provided by the Afghanistan Public Protection Force (APPF). DLA Troop Support will not be responsible for the payment of Afghanistan Public Protection Force services. The U.S. Government and/or U.S Military will not offer any support or protection to the contractor. As previously described, U.S. military operations within Afghanistan are designated “contingency operations.” Travel within Afghanistan remains very dangerous as various forms of terrorist and other criminal elements remain active. Attacks against military and civilian targets, including private security convoys, continue throughout Afghanistan. All potential offerors are strongly advised to take these concerns into consideration when preparing a proposal in response to this solicitation. For additional information, as provided previously, all offerors should consult the U.S. Department of State and other appropriate resources for the latest information on the political and security conditions present in Afghanistan.

II. ESTIMATED VALUE/GUARANTEED MINIMUM/MAXIMUM QUANITY:

ACQUISITION VALUE: The estimated dollar value of this solicitation is $1,500,000,000. The maximum dollar value will be $3,000,000,000. inclusive of all tiered pricing periods and surge.

The guaranteed minimum for the entire contract will be ten percent (10%) of the estimated dollar value, which equates to $150,000,000. The Government’s legal obligation under this contract shall only be that of the guaranteed minimum.

The Area of Responsibility (AOR) covered under this solicitation includes multiple ordering facilities (i.e. customers), as listed in the Deliveries and Performance section of this solicitation.

Ordering facilities within this region 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.

III. CONTRACT IMPLEMENTATION PHASE

The contract implementation phase is defined as a 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 follow-on contract is awarded 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 Prime Vendor shall use the existing product before new product is ordered.

iii. New product that is ordered during the ramp-up and ramp down period shall only be ordered to bring in new items requested and approved by the Government for the awarded new catalog. 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 catalogs in accordance with the terms and conditions of the new contract.

2. In the event that a follow-on contract is awarded 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 6 months after award. The following terms shall apply:

i. Within (15) days after the incumbent Prime Vendor is notified that it has not received the contract award 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 will begin 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 at its own risk and cost.

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 period.

iii. The incumbent Prime Vendor may have stocked product available for sale to the new Prime Vendor. 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 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.

• In accordance with the average demand history for each item as determined by the Contracting Officer, quantities sold to the new Prime Vendor shall be a minimum of 4 months of stock (where available) and may be up to 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. The estimated value for the minimum 2 months of stock (product price only) is $13.7M. The estimated value for the maximum 8 months of stock (product price only) is $55.4M. 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 accepting the product into its warehouse. Product that fails to meet minimum contractual requirements (i.e. proper storage, shelf life remaining, etc.); product that does not have sufficient anticipated demand; and/or product that is sourced from Outside the Contiguous United States (OCONUS) Prime Vendors (i.e.

fresh fruits and vegetables, etc.), may be excluded from the transaction.

The new Prime Vendor will be responsible for determining whether the product meets minimum contractual requirements.

• All products purchased by the new Prime Vendor at the “Product Price” as defined by DLAD 52.216-9065 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 titled “Prime Vendor 832 Catalogs.”

• The new Prime Vendor will only be entitled to 50% of its standard distribution price (non-standard distribution price, if applicable, will be paid in full) for product purchased from the incumbent Prime Vendor in accordance with this section and ultimately delivered to customers under the resulting contract.

iv. All GFM that meets minimum contractual requirements will be delivered to the new Prime Vendor’s warehouse facility.

• 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 standard distribution price (non-standard distribution price, if applicable, will be paid in full) for GFM delivered by the incumbent Prime Vendor in accordance with this section and ultimately delivered to customers under the resulting contract.

v. It is the Government’s intent to have all orders placed and delivered under the new contract 5 months after award, however, the Government reserves the right to phase in customer ordering points when it is in the best interest of the Government.

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: June 16, 2017 Stop Work Order Issued: August 05, 2017 Stop Work Order Rescinded: September 05, 2017 Implementation Timeline: June 16, 2017 – August 05, 2017 and September 05, 2017 – January 13, 2018

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 Prime Vendor, 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}; 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.

(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 displays/decorations only: For products listed in category [1A or 2A] Prime Vendor table displays/decorations only, the product price shall be based on f.o.b. origin/point of the manufacturer’s distributor because the manufacturer will not sell directly to the Prime Vendor. This exception must be approved by the Contracting Officer on a case by case basis. Support documentation is required.

(E) A CONUS-based redistributor’s price for a specific manufacturer’s product (also known as a stock keeping unit (SKU)) may be considered by the Government as long as the redistributor’s price for the quantity ordered is equal to or lower than the manufacturer’s published price inclusive of discounts/allowances. This exception must be approved by the Contracting officer on a case by case basis.

Support documentation may be required.

** 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 price. 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.

3. In reference to DLAD 52.216-9065, paragraph (b)(5):

““Distribution price(s)” means the firm fixed price portion of the Contract unit price, offered as a dollar amount per unit of measure, rounded up or down to the nearest cent.

The distribution price is the only method for the Contractor to bill the Government for all aspects of contract performance other than product price, including but not limited to, the performance requirements of this Statement of Work (SOW). Product price is distinct from and not to be included in the distribution price. The distribution price may be further segregated into pricing segments covering discrete, solicitation-specific performance requirements.”

4. In accordance with the above, the Distribution Price for this solicitation is broken down into Standard and Non-Standard Distribution Price elements as follows. Each distribution price shall remain fixed for the duration of each tiered pricing period. Each distribution price shall exclude ocean shipping costs referenced in DLAD 52.216-9065, paragraph (b)(8). NOTE: As detailed in DLAD 52.216-9065, paragraph (b)(3), product price is distinct from and not to be included in the standard or non-standard distribution price. (Note that for FF&V items purchased from an importer in the local markets, importer charges may be included as specified in accordance with DLAD 52.216- 9065, paragraph (b)(3)(i)(a).)

i. Standard Distribution Price: The standard distribution price is a firm fixed price and offered as a dollar amount, which represents all elements of the unit price, other than the product price and non-standard distribution prices. All performance under this SOW will be included in the standard distribution price except aspects of performance that are specifically identified as being included in the non-standard distribution price. The Prime Vendor shall not include the same performance or cost element in both the standard and non-standard distribution prices.

ii. Non-Standard Distribution Price for Ground Movement within Afghanistan inclusive of Convoy Security:

This non-standard distribution price category only applies when the Prime Vendor utilizes convoy security for customer deliveries within Afghanistan. This category will supplement the Prime Vendor’s standard distribution price for the aforementioned support. Because of this, said non-standard distribution price, offered as a firm fixed price dollar amount, shall represent only the unique costs associated with performing contractual obligations utilizing convoy security as well as all other non-standard elements of pricing related to performance under this SOW as specifically stated in the solicitation. The non-standard distribution price established at award for each Tiered Pricing Period of the contract shall remain fixed throughout the period to which it is applicable. The non-standard distribution price shall exclude ocean shipping costs referenced in (8) below and performance included in the standard distribution price separately priced in the Schedule of Items.

NOTE: Ground Movement is the required method of transportation for support within Afghanistan at this time and will remain, absent specific direction and authorization from the Contracting Officer. Authorization of non-standard distribution pricing with or without Convoy Security/APPF shall be made by the Contracting Officer based on customer requirements.

iii. Non-Standard Distribution Price for Ground Movement within Afghanistan without Convoy Security:

This non-standard distribution price category only applies when the Prime Vendor provides customer support within Afghanistan WITHOUT convoy security and/or commercial air for customer deliveries within Afghanistan. This category will supplement the Prime Vendor’s standard distribution price for the aforementioned support. Because of this, said non-standard distribution price, offered as a firm-fixed price dollar amount, shall represent only the unique costs associated with performing contractual obligations within Afghanistan absent convoy security and commercial air as well as all other non-standard elements of pricing related to performance under this SOW as specifically stated in the solicitation. The non-standard distribution price established at award for each Tiered Pricing Period of the contract shall remain fixed throughout the period to which applicable. The non-standard distribution price shall exclude ocean shipping costs and performance included in the standard distribution price separately priced in the Schedule of Items.

NOTE: Ground Movement is the required method of transportation for support within Afghanistan at this time and will remain, absent specific direction and authorization from the Contracting Officer. Authorization of non-standard distribution pricing with or without Convoy Security/APPF shall be made by the Contracting Officer based on customer requirements.

iv. Non-Standard Distribution Price for Commercial Air Movement within Afghanistan:

This non-standard distribution price category only applies when the Prime Vendor utilizes commercial air movement for customer deliveries within Afghanistan. This scenario will arise when ground movement within Afghanistan is not possible based on conditions within the country. The Contracting Officer must authorize this type of delivery. This category will supplement the Prime Vendor’s standard distribution price for the aforementioned support. Because of this, said non-standard distribution price, offered as a firm-fixed price dollar amount, shall only represent the unique costs associated with performing contractual obligations within Afghanistan utilizing commercial air as well as all other non-standard elements of pricing related to performance under this SOW as specifically stated in the solicitation. The non-standard distribution price established at award for each Tiered Pricing Period of the contract shall remain fixed throughout the period to which applicable. The non-standard distribution price shall exclude ocean shipping costs and performance included in the standard distribution price separately priced in the Schedule of Items.

NOTE: Ground Movement is the required method of transportation for support within Afghanistan at this time and will remain, absent specific direction and authorization from the Contracting Officer.

5. Pricing will be based on the following:

For Afghanistan deliveries without private security or without Prime Vendor provided airlift assets (for example under Emergency Airlifts and/or USTRANSCOM tenders are utilized):

Contract Unit Price = Product Price + Standard Distribution Price + Non- Standard Distribution Price for Ground Movement without Convoy Security

For direct vendor deliveries (DVD) within Afghanistan (i.e. the Prime Vendor purchases product from within Afghanistan and uses that manufacturer to perform the delivery service to the DLA customer(s)).

Contract Unit Price = Product Price + 50% of the Standard Distribution Price + Non-Standard Distribution Price for Ground Movement without Convoy Security

Note: Convoy security will not be authorized for DVDs.

For Afghanistan ground deliveries utilizing convoy security:

Standard Distribution Price for Ground Movement with Convoy Security

For Afghanistan deliveries utilizing Prime Vendor provided airlift assets:

Standard Distribution Price for Commercial Air Movement within Afghanistan

B. DISTRIBUTION CATEGORIES

1. The supplies and services to be procured and/or performed under this contract have been broken down into the following 25 distribution categories (categories 1 through 20 and sub-categories 1 through 5). See attachment 2, tab “Distribution Category Worksheet” and the addendum to FAR 52.212-1 “Instruction to offerors commercial items” herein for detailed price submission requirements.

2. No substitutions, deletions, or additions to the categories or units of measure indicated above are authorized. However, if any offeror feels that a substantial category has been eliminated, the offeror must bring it to the attention of the Contracting Officer at least 15 days BEFORE the solicitation closing date. A determination will be made at that time whether or not to add the category via an amendment to the solicitation.

3. IAW DLAD 52.216-9065, paragraph (b)(5) “Distribution price” (s) means the firm fixed price portion of the contract unit price, offered as a dollar amount per unit of measure, rounded up or down to the nearest cent. The distribution price is the only method for the Prime Vendor to bill the Government for all aspects of Contract performance other than product price, including but not limited to, the performance requirements of this statement of work (SOW).

Distribution Category #

Distribution Category Description Unit of

Measure

1 CONUS DRY CS CS

1A CONUS DRY CS (For Product Price Exceptions B, C, D, or E) CS 2 CONUS DRY CO (UOM for EA = 1 CO) EA

2A CONUS DRY CO (For Product Price Exceptions B, C, D, or E) (UOM for EA = 1 CO) EA

3 CONUS FZN CS CS

3A CONUS FZN CS (For Product Price Exceptions B, C, D, or E) CS

4 CONUS FZN LB LB

4A CONUS FZN LB (For Product Price Exceptions B, C, D, or E) LB

5 CONUS CHILLED CS CS

5A CONUS CHILLED CS (For Product Price Exceptions B, C, D, or E) CS

6 OCONUS DRY CS CS

7 OCONUS FZN CS CS

8 OCONUS CHILLED CS CS

9 OCONUS CHILLED LB LB

10 OCONUS FF&V LB (For Product Price Exception A) LB 11 OCONUS Water CS (Potable - Bottled) CS 12 Disposal (Incl. Trans; Approved at the Contracting Officer's Discretion) CS 13 Restocking Price for Orders Over $10K (Approved at the Contracting Officer's Discretion) CS 14 GFM Inspection, Storage, Rework, Relabel, Distribution, Dry (Single Case/Box) CS CS

GFM Inspection, Storage, Rework, Relabel, Distribution, Dry (2 Cases per Module) EA = 2 cases EA

GFM Inspection, Storage, Rework, Relabel, Distribution, Dry (3 Cases per Module) EA = 3 cases EA

17 GFM Inspection, Storage, Rework, Relabel, Distribution, FZN CS CS 18 Pick Up of Customer Owned Product from Customer Location Pallet 19 Re-Delivery of Customer Owned Product to Customer Location Pallet 20 Wet Ice (Potable) LB LB

C. DOMESTIC ITEM PREFERENCE

1. In accordance with United States Government’s policy to acquire domestic end products for use outside the United States (see DFARS 225.7501) the Government’s preference under this solicitation remains for domestic product. All offerors, as well as the resulting Prime Vendor, must certify at the time of proposal or contract performance the offering of all non-domestic end products. The certification must be made in the Buy American Act – Balance of Payments Program Certificate (DFARS 252.225-7000 NOV 2014) which is located herein.

2. The source restrictions of the Berry Amendment, 10 U.S.C. 2533a as implemented in DFARS 225.70 and 252.225-7012 and included in this solicitation, are applicable to the procurement of food items. In general, the Berry Amendment requires that food items procured and delivered under this contract be grown, manufactured, reprocessed, or produced in the United States. Several exceptions to that requirement may apply to performance under this contract. One such exception, the “perishable foods” exception, can be found at DFARS 225.7002-2(e). That exception permits the delivery of perishable foods (i.e. fresh fruits and vegetables (FF&V), fresh milk, fresh bread, etc.) that are not sourced from the United States. This exception applies to deliveries to customers throughout the region. As such, this solicitation includes requirements for local market ready items, i.e. locally sourced FF&V, fresh milk, fresh bread, etc. The Prime Vendor must be able to locally source, purchase and/or perform deliveries for highly perishable products. A second applicable exception, referred to as the “contingency operation” exception, applies to customer deliveries within Afghanistan, as operations within Afghanistan have been designated a contingency operation. With that designation, deliveries of all non-domestic food items, not just perishable items, are permitted in Afghanistan. This exception is subject to change based on changes to contingency operation designations in the region. Please note that even with these exceptions, it is still the Government’s preference to provide domestic items to the maximum extent practicable.

3. The Prime Vendor shall request approval, in writing, from the Contracting Officer prior to adding any non-domestic items to the ordering catalogs. The Prime Vendor must submit pricing information for the foreign product and its domestic equivalent so that the government can perform an analysis in keeping with the Balance of Payments Program.

Non-domestic items will not be added to the catalog without the prior approval of the Contracting Officer. Note: As discussed above, local market ready items that are required to be purchased from local OCONUS approved sources are excluded from this domestic item preference.

4. In some instances, the Contracting Officer may direct the Prime Vendor to source a domestic equivalent item locally. The Prime Vendor shall do so at no additional cost to the Government. In this case, the associated Local Market Ready Distribution Price Category 6, 7, 8, 9, 10, or 11 shall be utilized.

D. LOCAL MARKET READY (LMR) ITEMS:

1. The prime vendor must have the ability to procure and perform delivery of the local market ready(LMR) items (e.g.