Tab_13_-_Attachment_1.1__SOW.pdf

Attachment 1.1 STATEMENT OF WORK

EUROPE AND AFRICA–TLS PRIME VENDOR

1.0 Scope

1.1 The Contractor shall assume logistical responsibility for providing maintenance, repair, and operations (MRO) supplies to the European Command (EUCOM) or African Command (AFRICOM)

Areas of Responsibility (AORs). MRO products include all commercial items associated with the maintenance, repair, and operation of a facility. This scope includes but is not limited to: Heating, Ventilation, and Air Conditioning (HVAC) supplies; plumbing supplies (e.g. bath and shower fixtures, and ablution units); electrical products (e.g. generators, wire, connectors, sockets, outlets, lights, etc.);

tools; chemical, lubricating, and rubber products; construction supplies (e.g. cement, lumber, plywood, bricks, blocks, steel, aluminum, and other metal products); conduits; prefabricated structures (e.g. re-locatable buildings, and prefabricated buildings complete with furnishings, appliances, etc.); utility vehicles; perimeter security items such as: barriers, barbed wire, concertina wire, and sand bags (also used for erosion prevention); communication devices (e.g. walkie-talkies and two-way radios used by the maintenance personnel); and various other commercial supplies required by the war-fighters to accomplish their mission. MRO support also includes related incidental services. Incidental services are standard commercial services performed in connection with supplying items under the scope of the contract (an example of an incidental service may be requiring installation of an HVAC system purchased under the contract).

These contracts are “tailored logistics support" (TLS) contracts. A TLS contract refers to an acquisition supporting a broad range of logistics functions. The Government shall not exercise any supervision or control over the contract service providers performing the services herein. Such contract service providers shall be accountable solely to the Contractor who, in turn, is responsible to the Government. The

Contractor shall provide all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision, and other items and non-personal services necessary to perform the requirements of this

Statement of Work. The Contractor shall perform to the standards in this contract.

1.1.1 The range of items included in the scope of the contract are those items that might not routinely be used in the MRO arena but, for reasons within the discretion of the Contracting Officer, have been determined acceptable to meet the ordering activity’s MRO requirements. The Contractor shall obtain a scope determination from the Contracting Officer when uncertain as to whether an item is within the scope of the contract.

1.1.2 The Contractor shall ensure that all items provided under the contract conform to commercial specifications.

1.1.3 The Contractor may provide a substitute, brand name or equal, or a generic version of a specified product only with prior written permission from both the ordering activity and the Contracting

Officer. If the ordering activity does not approve the deviation in writing, the order shall be cancelled at no cost to the Government.

1.2 Incidental Services. Incidental services are standard commercial services that the Contractor may be asked to provide in connection with supplying items under the scope of the contract (an example of an incidental service may be the installation of an HVAC system purchased under the contract). Whether a service is considered “incidental” or not will be determined by the Contracting Officer prior to the

Contractor providing a quote to the ordering activity. Generally, incidental services are not to exceed 25% of the value of the order unless additional supporting documentation is provided. For all incidental services, the Contractor shall submit the proposed statement of work to the Contracting Officer for a scope determination at the time the service is requested from the ordering activity.

1.3 Region and Zoning. The Contractor shall assume responsibility for providing TLS to customers in the

EUCOM or AFRICOM AORs, where “customer” refers to the ordering activities, and Government end-users. There are three (3) regions/zones supporting the MRO EUCOM and AFRICOM AORs: Europe

Zone 1 – North of the Alps Countries, Europe Zone 2 – South of the Alps/Mediterranean Region

Countries, and Africa. The chart below illustrates the countries supported under each zone:

Europe Region

North of the Alps Countries Mediterranean Countries

Zone 1 Zone 2

Andorra Latvia Albania Slovenia

Armenia Liechtenstein Bosnia and Herzegovina Spain

Austria Lithuania Croatia Turkey

Azerbaijan Luxembourg Cyprus Morocco

Belarus Moldova France Algeria

Belgium Netherlands Greece Libya

Bulgaria Norway Holy See Tunisia

Czech Republic Poland Israel Egypt

Denmark Romania Italy

Estonia Russia Kosovo

Finland San Marino Macedonia

Georgia Slovakia Malta

Germany Sweden Monaco

Hungary Switzerland Montenegro

Iceland Ukraine Portugal

Ireland United Kingdom Serbia

Africa Region

Angola The Gambia Rwanda

Benin Ghana Sao Tome and Principe

Botswana Guinea Senegal

Burkina Faso Guinea-Bissau Seychelles

Burundi Lesotho Sierra Leone

Cameroon Liberia Somalia

Cape Verde Kenya South Africa

Central African Republic Madagascar South Sudan

Chad Malawi Sudan

Comoros Mali Swaziland

Côte d’Ivoire Mauritania Tanzania

Democratic Republic of the Congo Mauritius Togo

Djibouti Mozambique Uganda

Equatorial Guinea Namibia Western Sahara

Eritrea Niger Zambia

Ethiopia Nigeria Zimbabwe

Gabon Republic of the Congo

2.0 Ordering Activities

During the term of this contract the Government reserves the right to add or delete ordering activities. The

Contractor shall support an ordering activity unless otherwise directed by the Contracting Officer.

3.0 Program Marketing

Subject to MRO Program Manager approval, the Contractor may market the program to eligible installations in the awarded Zone. The Contractor may also be requested to travel as part of the

Government’s marketing efforts. Travel shall be at the Contractor’s expense.

The Contractor may develop, publish, and distribute publications and/or marketing materials for the MRO program, subject to the approval of the Contracting Officer. The Contractor shall not use or otherwise display the Defense Logistics Agency logo (or that of any of its Major Subordinate Commands) on any of its company paraphernalia (i.e. – business cards, clothing, coffee mugs, etc.) without prior authorization from the Contracting Officer.

4.0 Customer Support:

4.1 Contractor Personnel.

4.1.1 Contractor personnel assigned to the day-to-day management of the contract shall have education, experience, and qualifications commensurate with responsibilities (e.g., Purchasing Agents/Buyers shall have relevant acquisition experience and qualifications; Expediters shall have relevant logistics, construction, and/or project management experience and qualifications). The Contractor shall provide a managerial point of contact (POC) for the Government. The managerial POC must be part of the

Contractor’s management chain with the authority to make decisions on behalf of the Contractor.

4.1.2 The Contractor shall have available personnel with experience and technical expertise with construction-type materials in order to provide technical assistance when requested by the ordering activity. The Contractor shall provide project planning and/or ordering assistance to requiring activities upon request.

4.2 Customer Support Services

4.2.1 Availability. At a minimum, the Contractor shall provide a toll-free phone number and a dedicated e-mail address for customer support. The Contractor shall be available to provide customer support (via telephone and e-mail) Monday through Friday between the hours of 9:00 AM and 5:00 PM, Central

European Time (GMT+1). Customer support includes, but is not limited to: order tracking, problem resolution (corrective actions taken in response to customer complaints), and technical support (providing advice and information on products). The Contractor shall respond to customer support inquiries within

24 hours of receipt.

4.2.2 Ordering. The Contractor shall have the ability to receive orders directly from the ordering activity.

At a minimum, the Contractor shall provide phone, e-mail, and an eCommerce approach for receiving orders. The Contractor shall have the ability to modify and cancel orders via each of these methods. The

Contractor shall provide training on how to place orders and use its purchasing system upon request.

The Contractor shall ensure that ordering activities have a valid DoDAAC.

Prices quoted to the customer shall be a fully burdened unit price. The fully burdened unit price shall consist of the unburdened unit price (the unit price paid by the Contractor to its supplier), an allocation of the Contractor’s Management Fee, and the DLA Troop Support Europe & Africa

Cost Recovery Rate (CRR). DLA Troop Support Europe & Africa will provide the Contractor with the CRR. The CRR is subject to change annually at the beginning of the Government’s fiscal year (October 1st). The Contractor will be informed at least one business day prior to any changes in CRR over the term of the contract.

Transportation costs shall be quoted as a separate line item.

The Contractor shall be responsible for ensuring funds and funding expiration dates are not exceeded.

The Contractor shall assign a unique delivery order number for each order placed. Each delivery order shall contain 26 characters consisting of a 13-character basic contract number, (e.g., SPE5B120D0001), followed by a 13-character delivery order number, (e.g. SPE8E320F0001).

The contract number shall remain fixed for the term of the contract and will be assigned by DLA

Troop Support Europe & Africa. A range of delivery order numbers for the Contractor to use will be assigned by DLA Troop Support.

4.2.3 Order Status. At a minimum, the Contractor shall have the ability to provide order status to the customer via phone, email, and eCommerce approaches. The Contractor’s system shall allow for order and material tracking within 24 hours of request to support problem resolution. At a minimum, the

Contractor shall have the ability to provide the customer information concerning the delivery order number, MILSTRIP number or MIPR Number, MIPR Code, ship date, item description(s), required date, expected ship date, carrier name, bill of lading number, order originator, and the overall status of the order.

4.3 Escalation. The Contractor shall provide a point of contact (e-mail address and phone number) for customers to use in order to escalate customer support issues. The contractor representative assigned must be part of the management chain with the authority to make decisions on behalf of the Contractor.

4.4 Meetings. The Contractor may be requested to participate in customer service visits or meetings at the ordering activity’s request. The Contractor may be required to have customer service visits or meetings at an ordering activity at the discretion of the Contracting Officer, or during In-Process Reviews (IPRs).

Travel shall be at the Contractor’s expense.

5.0 Order Processing and Information Technology (IT) Requirements

5.1 Competition Requirements and Quotes. For material quotes, the Contractor shall obtain a minimum of two (2) competitive quotes for all material line items valued less than $25,000.00. The Contractor shall obtain a minimum of three (3) competitive quotes for all line items greater than or equal to $25,000.00.

The Contracting Officer reserves the right to request additional documentation in order to make a fair and reasonable price determination. To the maximum extent possible, the Contractor shall obtain quotes directly from the product manufacturer, thereby minimizing the use of third-party vendors and unnecessary pass-through charges. In the event that the Contractor is unable to source an item directly from the manufacturer then the Contractor shall provide a detailed explanation of its efforts to minimize use of third-party vendors and may be subject to a lower management fee (one tier below the management fee ceiling for the applicable order) at the discretion of the Contracting Officer.

Additionally, the Contractor shall obtain two (2) competitive transportation quotes for all delivery orders with a total material cost less than $25,000.00. The Contractor shall obtain three (3) competitive transportation quotes for delivery orders with a total material cost greater than or equal to $25,000.00.

Total material cost is the total acquisition cost of the material, inclusive of the Contractor’s Management

Fee and the DLA Troop Support Cost Recovery Rate (CRR). The Contracting Officer reserves the right to request additional documentation in order to make a fair and reasonable price determination.

In the event that the Contractor is unable to obtain competition, the Contractor shall submit copies of the request for quotes (RFQ), the list of vendors solicited, and all “no bid” responses as supporting documentation.

5.1.1 Material Quotes. For material quotes, each line item shall be quoted in the same units of measure and should have the same item description. The Contractor shall annotate when an alternate item has been accepted (ref. Section 1.1.3 of the Statement of Work). All prices shall be converted to US Dollars (USD).

The Contractor shall provide the exchange rate used for currency conversions.

5.1.2 Transportation Quotes. Each transportation quote shall have the same shipping origin (city and country/state) and the same shipping destination (city and country/state). All prices shall be converted to

US Dollars (USD). The Contractor shall provide the exchange rate used for currency conversions.

5.1.3 Sole Source. The Contractor shall provide written justification for sole source requirements. “Sole source” means that either the Contractor will solicit and negotiate with only one source, or the requirement is for an item produced by a single manufacturer. For “single manufacturer” and/or brand-name requirements, the Contractor shall to the maximum extent practicable, obtain price competition by soliciting quotes from the manufacturer and at least one (1) or two (2) non-manufacturers/distributors, based on the dollar value of the line item as set forth in Section 5.1.

5.1.4 Pricing. The acquisition price is defined as the actual invoice price of the product paid by the

Contractor to its supplier for materials delivered. Acquisition prices for PEL items are ceiling prices.

Acquisition unit prices for items on the Price Evaluation List (PEL) shall not exceed the ceiling prices for those items. In the event that the Contractor receives pricing for a PEL item that is lower than the ceiling price, then the Contractor shall submit the lower, quoted price as the acquisition price. Unit prices for material shall not include any freight or incidental service charges. Transportation and incidental services shall be quoted as separate line items. Transportation services shall be awarded using lowest price technically acceptable procedures. All prices are subject to verification.

All orders shall be evaluated for price reasonableness at the line item level. Items where pricing cannot be determined fair and reasonable will not be approved by the Contracting Officer, and thus will not be ordered.

Management Fee is defined as the allowable maximum fee per order based on the Management Fee Tiers.

Fee tiers are defined as the total dollar value of the acquisition, inclusive of transportation and incidental services. Management fee shall include projected general and administrative expenses, overhead, and profit but may not include the projected transportation or packing costs.

5.2 Delivery Order Documentation. All delivery orders shall be submitted to the contracting officer for a fair and reasonable (F&R) price determination, prior to award. Packages shall be submitted to an e-mail address provided by the Government. At a minimum, delivery order packages shall contain the following documentation:

All Competitive Quotes Obtained for the Requirement. At a minimum, quotes submitted for F&R review shall include the following information:

o The Contractor’s Solicitation/RFQ Number o The Contractor’s solicitation/RFQ date o Date of the supplier’s quote o Name, address, telephone number and e-mail address of the supplier o Each line item shall contain the following information:

Description

Manufacturer Name

Manufacturer Part Number

Country of Origin

Unit of Measure (UoM)

Quantity

Unit Price

Extended Price, and

Delivery Lead-Time o Printed name, title, and signature of the supplier’s authorized representative o Delivery timeline, showing minimum 30 day processing time for DLA.

“No Bid” Responses (ref. Section 5.1.3)

Currency Exchange Rate. The Contractor shall include documentation of the exchange rates used for currency conversions. An example of acceptable documentation would be a print screen of a currency conversion website (e.g., https://www.xe.com, or https://www.oanda.com) showing the date, the full URL address, and the currency exchange rate.

Funding Document. The Contractor shall include a copy of the MIPR (DD-448) and MIPR

Acceptance (DD 448-2) or a copy of the MILSTRIP Number. For orders funded via MILSTRIP, the Contractor shall provide documentation showing funds available against the MILSTRIP

Number used to fund the order.

5.3 Information Technology (IT) Requirements

5.3.1 General IT Requirements. At a minimum, the Contractor shall maintain: e-mail capability for submission of delivery order packages submitted for review and award; e-mail addresses for Contractor procurement personnel responsible for addressing questions and/or clarifications regarding package submissions; a local or toll-free telephone number for procurement personnel responsible for addressing questions and/or clarifications regarding package submissions; EDI capabilities to transmit order information to the Government (DLA Troop Support) and for invoicing DFAS; Value Added Network

(VAN) for facilitating EDI transaction exchange. The Contractor is responsible for obtaining and maintaining these IT capabilities for the term of the contract; related costs shall be borne entirely by the

Contractor.

5.3.2 Contracting Officer (KO) Portal.

5.3.2.1 KOP Quote Processing. The Contractor shall adhere to the following requirements for quote processing in KOP:

Transportation Line

Shall be quoted as a separate line item.

Incidental Services https://www.xe.com/ https://www.oanda.com/

Shall be quoted as a separate line item.

Timeline of Submission

Delivery orders shall be uploaded into KOP within 2 business days of receipt of funding approval for

MIPRS and MORDs, and shall be loaded within 1 business day of the customer providing MILSTRIP funding.

The Contractor shall submit the delivery order package for review the same day that the order is loaded into KOP. Orders uploaded into KOP without a corresponding delivery order package shall be returned after 1 business day, and canceled after 2 business days. The Contractor will have to resubmit the canceled delivery order under a new, unique delivery order number.

5.3.2.2 KOP Data Elements. Line item information submitted for review in KO Portal shall adhere to the following requirements for the below data fields:

Manufacturer Name [Required]

The name of the manufacturer for the listed item. Note: This is not a supplier/subcontractor name, nor is it a wholesale supplier name (Home Depot, Lowe’s, etc.).

The Contractor shall be consistent when reporting items under the same manufacturer (e.g., “ABC

Inc.” shall consistently be reported as “ABC Inc.” and not “ABC, Inc.”, “ABC INC”, “ABC”, or any other variation.

Manufacturer Part Number [Required]

A series of characters that uniquely identifies each line item.

These values are assigned and maintained by the manufacturer of the listed item.

THE DATA SUBMITTED SHALL CONTAIN THE ACTUAL MANUFACTURER’S NAME AND

THE ACTUAL MANUFACTURER’S PART NUMBER. ANY OTHER METHOD OF IDENTIFYING

THE MANUFACTURER AND MANUFACTURER’S PART NUMBER, SUCH AS A SYSTEM

UNIQUE TO THE VENDOR, IS UNACCEPTABLE.

Short Item Description [Required]

A series of characters that specifies identifiable characteristics (e.g., item name, size, color, etc.)

of the listed item.

Variable widths (up to 50 characters) and characters (e.g., hyphens [-], slashes [/], etc.) are acceptable.

Framing values with Double Quotes [" "] or the use of pipes [ | ] within the description text are not acceptable, unless for use of ["] as the abbreviation for inches, and ['] as the abbreviation for feet. For example, a two by four by eight piece of lumber may be described as: LUMBER, 2" X 4" X 8'.

THE CONTRACTOR SHALL, TO THE MAXIMUM EXTENT PRACTICABLE, UTILIIZE A

STANDARD NAMING CONVENTION WHEN ENTERING SHORT ITEM DESCRIPTIONS, SUCH

AS: ITEM, SIZE, COLOR (IF APPLICABLE). FOR EXAMPLE, LUMBER SHALL CONSISTENTLY

BE ENTERED AS LUMBER, 2” X 4” X 8’ AND NOT: LUMBER 2X4X8, LUMBER 2, 4, 8, LUMBER

2 X 4 X 8, 2X4X8 LUMBER, OR ANY OTHER VARIATION. FAILURE TO STANDARDIZE

SHORT ITEM DESCRIPTIONS SHALL RESULT IN THE CONTRACTOR ASSUMING

RESPONSIBILITY FOR PROVIDING HISTORICAL PRICING DATA FOR PREVIOUSLY

PURCHASED ITEMS.

Unit and Extended Pricing

Unit pricing shall be in US Dollars and cents, where the cents value shall not exceed two (2) decimal places to the right (e.g., $123.45, and not $123.456)

Other KO Portal data fields shall adhere to the guidance in Section 5.3.4.2, Data Element Details (Uage

Data Grid). Where there are discrepancies, the Contractor shall request guidance from the Contracting

Officer.

5.3.3 Electronic Data Interchange (EDI) Requirements

The following American National Standards Institute (ANSI) X12 EDI transactions will be required to be forwarded to DLA TROOP SUPPORT via the Defense Automatic Addressing System (DAAS):

855 Transaction. The Contractor shall create orders using an 855 – Purchase Order

Acknowledgement transaction. The Contractor shall initiate the 855 within 2 business days of funding approval/acceptance. This transaction shall include a separate line and line item number for each item/service being ordered under the delivery order. The Transaction will be loaded to the Contracting Officer’s Portal (KO Portal) for continued processing, validation, and approval by the Contracting Officer. The Contractor will be notified of success or problems via the EDI 864 transaction.

At a minimum, the Purchase Order Acknowledgement shall include line item number, item identification and part number, quantity ordered, quantity to be delivered, unit of measure (UoM), unit price, MILSTRIP document number or MIPR number and MIPR code, and delivery order number.

864 Transaction. The 864 transaction is a multi-purpose transaction used for approval, disapproval, rejection and clarification. The Contracting Officer will approve/disapprove orders in KO Portal. The Contractor is not authorized to perform until the order is approved. The

Contractor will be notified of approval via the EDI 864 transaction.

856 Transaction. Upon shipment to the customer, contractors shall create and forward an 856 –

Advanced Shipping Notice. The Contractor shall include the line item number of the item being shipped. Multiple 856 transactions per order are acceptable. The Contractor’s 856 transaction shall contain the Carrier Name and Carrier Assigned Package Identification Number (Tracking

Number). These elements shall be present in the HL.REF Loop as follows:

1. HL.REF.REF01 = “08”

2. HL.REF.REF02 = Carrier Tracking Number

3. HL.REF.REF03 = Carrier Name (Standard Carrier Alpha Code)

For shipments that do not utilize an independent transporter or where the independent transporter data is not available in the format stated above, the Contractor shall provide an electronic Proof of

Delivery to the Next Generation Enterprise Linked Logistics Information Source (NGE) web based application. Examples of electronic Proof of Delivery format include PDF or image files with Delivery Signature Confirmation.

810 Transaction. After customer receipt, the Contractor shall forward an 810 – Invoice transaction. Invoicing shall be at the line item level. There shall be a corresponding invoice line for each line on the 855 once the line item has been shipped. The Contractor shall maintain the same line item number used from the 855 on the 810. For example, if the item was listed as line item number 1 on the 855 - Purchase Order Transaction, then it shall be listed as line item number

1 on the 810 Invoice transaction. Failure to maintain consistency in line item numbering will result in payment issues.

865 Transaction. An 865 – Purchase Order Change shall not be initiated by the Contractor, without prior written approval from the contracting officer. Changes after award are addressed in

Sections 5.3.3, Changes After Award, and 18.0, Contracting Officer Authority, of the Statement of Work. Once an order is invoiced, no changes are permissible.

Information regarding EDI, ANSI X12 transactions, and DLA transaction services approved VANs can be obtained from the DAAS web site by going to https://www.transactionservices.dla.mil/daashome/ edi-vanlist-dla.asp. Questions concerning electronic ordering should be directed to the appropriate procuring organization point of contact: DLA Troop Support, dlaedigroup@dla.mil.

5.3.3 Changes after Award. All changes after award (such as quantity, price, delivery extensions, etc.)

require contracting officer approval. The Contractor shall submit change requests via e-mail using the

Vendor Change Request Form (Attachment 1.4). Requests for price increases (for items not listed on

PEL) are subject to fair and reasonable price determination and must be approved by the contracting officer prior to the Contractor incurring costs, otherwise those costs are at the Contractor’s expense. Once an order is invoiced changes are not permissible.

5.3.4 Usage Data

Monthly Usage Data. Usage data reflects the Contractor’s line item sales data and is used to generate the

Contractor’s performance metrics (ref. Section 8.0, Performance Standards). At a minimum, monthly usage data shall be made available to the Government (DLA Troop Support) within 15 days of the end of each calendar month, covering each ordering activity under the contract. Data shall be arrayed to provide

Government access on a line-by-line or delivery order basis. The required format for submission of this information is cited in Attachment 1.3, Usage Data Specification Requirements.

The Contractor shall have an Information Technology (IT) Point of Contact (POC) capable and authorized to resolve systems, software, and transmission issues with the Government’s (DLA Troop

Support) IT personnel.

The Contractor may be required to modify its systems and/or IT capabilities in order to accommodate and maintain compatibility with the Government’s IT systems. Such modifications are the sole responsibility of the Contractor and shall not be reimbursed by the Government.

5.3.4 Payment

5.3.4.1 Fast Pay shall be utilized for all delivery orders under $150K.

5.3.4.2 Prompt Pay shall be utilized for all delivery orders valued at $150K or more.

6.0 Quality Control

The Contractor shall establish and maintain oversight procedures for organizing, processing and handling orders, managing deliveries, tracking performance metrics, and ensuring the timely processing of electronic invoices. At a minimum, the Contractor shall implement the following procedures:

1. Standard Operating Procedures (SOPs), available upon request from the Contracting Officer, that ensure the accuracy of documentation submitted to the Government and overall compliance with contractual requirements.

2. A documented source selection process, available upon request from the Contracting Officer, demonstrating promotion of competitive awards to responsible sources.

3. SOPs for identifying sourcing restriction issues (e.g., Berry Amendment, Trade Agreements

Act (TAA) compliance) or other potential violations BEFORE orders are submitted to DLA

Troop Support Europe & Africa for review.

4. Procedures that ensure the post-award oversight and surveillance of orders, including subcontracted efforts, to ensure that all contractual requirements have been met.

7.0 Preservation, Packaging, and Marking

Unless otherwise specified, preservation, packaging, and packing shall be to a degree of protection to preclude damage to containers and/or the contents thereof under normal shipping conditions and handling which conform to normal commercial practices, and applicable carrier regulations involving shipment from the contractor to the receiving location. Commercial markings not interfering with the clarity or positioning of required markings on containers need not be obliterated.

Material requiring specialized packaging and marking shall be appropriately packaged and marked in accordance with industry standards.

8.0 Packing Lists

8.1 A packing list/slip shall be enclosed with each shipped order, containing the following information at a minimum: Contractor’s name, delivery order number, job order number, document number, MIPR number, date of order, itemized list of supplies included in the shipment, quantity ordered, quantity shipped, delivered unit price and the individual that placed the order. The product number used in the order and confirmation will be duplicated on the packing slip. The prices shown on the packing list/slip shall be identical to the order price.

To ensure that all receiving activities can properly identify items requiring special handling and/or storage, the contractor shall annotate its packing list with the following notation: “REQUIRES SPECIAL

HANDLING AND/OR STORAGE”.

8.2 Material Safety Data Sheets and Hazardous Material. The contractor will obtain Material Safety Data

Sheets (MSDS) and Hazard Warning Labels (HWL) upon receipt of applicable items. The contractor will also be responsible for maintaining all MSDS and HWL received from suppliers on file. Hazardous

Material includes any material defined as hazardous under Federal Standard 313. MSDS shall meet the requirements of 29 CFR 1910-1200 (g) and Fed-Std-313. The contractor will furnish the copies of all applicable MSDS to the ordering activities upon initial delivery of covered items. The Contractor shall also assure that all hazardous material is correctly labeled. The contractor will furnish copies of all

MSDS obtained to the Contracting Officer upon request.

9.0 Delivery Requirements

9.1 Required Delivery Date. The Contractor is responsible for the transport and delivery of items to customers in the awarded zone (see Figure 1) within the timeframe requested by the customer to meet mission requirements. The Required Delivery Date (RDD) shall be coordinated directly with the customer. RDD’s timelines must include a 30-day review window for DLA TS EA processing, and must be clearly shown on the submitted Prime Vendor customer quote along with the Fair and Reasonable package submitted to DLA. RDD extensions after award require Contracting Officer approval.

9.2 Consolidated Bill of Material (BOM). For specific projects/bills of material orders, the Contractor shall consolidate and deliver all supplies at the time required by the ordering activity to the delivery point designated by the ordering activity. Failure to deliver the BOM in its entirety may result in refusal of the shipment at no additional cost to the Government.

9.3 The Contractor assumes responsibility for all export and import customs documentation required to transport material to the countries supported in the applicable Zone/Region.

9.4 For each delivery order, transportation shall be F.O.B. Destination, unless otherwise specified in writing and in advance by the Contracting Officer.

10.0 Warranties, Returns, Recalls, Restocking and Cancellations

10.1 Warranties. In addition to the warranties contained in FAR 52.212-4(o), Warranty, the Contractor shall provide at least the same warranty terms, including offers of extended warranties, offered to the general public in customary commercial practice for the items acquired under the contract.

10.2 Returns. The contractor shall accept returns and, if the ordering activity still requires the material, replace the items ordered under any of the following conditions:

a. Products were shipped in error;

b. Products were damaged in shipment;

c. Products arrived with concealed shipping damages; or

d. Products which are recalled, regardless of level of recall, except when the manufacturer’s policy states otherwise, in which case the manufacturer’s disposition instructions will be followed.

Repair or replacement of returned items shall be in accordance with FAR 52.212-4(a), Inspection/

Acceptance. If the ordering activity/customer does not need replacement of the returned products the

Contractor shall notify the Contracting Officer. The Contracting Officer shall process a reimbursement action against the Contractor for the prompt return of any expended dollars back to the Government.

10.3 Recalls. In the event that an item is recalled by the Contractor, supplier, or manufacturer, the

Contractor shall follow the procedures set forth below:

1. Immediately notify the following personnel:

a. Customers that have received the recalled product/item; and

b. the Contracting Officer.

2. Provide the following information to the Contracting Officer:

a. Reason for recall;

b. Description of product/item;

c. Quantity of product/item distributed;

d. List of customers that have received product/item; and

e. Name, phone number, and e-mail address of a Contractor POC responsible for resolving the recall (Recall Coordinator).

3. Upon notification that an item has been recalled, the Contractor shall either:

a. accept Certificates of Destruction from the Government after the supplies have been properly disposed of;

b. request return of the supplies, or

c. if supplies may be repaired on site without transporting them from their location, furnish all materials necessary to effect repairs. Replacement or reimbursement will be accomplished by the TLS Vendor immediately on receipt of Certificates of Destruction or returned supplies.

At the Contracting Officer’s discretion, the Contractor shall either reimburse the Government or repair/replace the recalled item. Replacement and/or repair costs for recalled items are at no cost to the

Government and shall be borne by the Contractor. The rights and remedies of the Government provided in this clause are in addition to, and do not limit, any rights afforded to the Government by any warranty or other clause in the contract. The Contractor shall provide a Final Status Report of Recall to the

Contracting Officer when completed.

10.4 Restocking Fees. The contractor may assess a restocking fee to the customer under the following conditions:

a. Orders are canceled while deliveries are en route;

b. Orders are refused at time of delivery without providing 48 hours’ notice to the contractor prior to refusal; or

c. Ordered quantities returned to the contractor are not expected to be resold within

180 days.

In the event that one of the events above occurs, the contractor may charge a restocking fee as the lesser of the cost charged to the Contractor by its supplier, or 10% of the total price of the line item(s) returned.

The Contractor shall provide documentation substantiating that the restocking fee is a reasonable charge consistent with commercial practices. The Contractor shall notify the Contracting Officer if any of the events in Section 10.3 occur prior to assessing a restocking fee. The Contractor shall not charge a restocking fee for:

a. Returns covered under Section 10.2, Returns

b. Delinquent orders that the customer chooses to cancel prior to delivery

10.5 Cancellations. The Contractor shall accept cancellations to delivery orders at no additional cost to the Government, provided that the customer requested cancellation at least 10 business days prior to the required delivery date (RDD). Orders canceled less than 10 business days from the RDD shall be addressed in accordance with FAR 52.212-4(l), Termination for the Government’s convenience.

11.0 Purchasing System

11.1 The Contractor shall establish and maintain oversight procedures, to include an acceptable purchasing system for organizing quotes, processing and handling orders, managing deliveries, tracking performance metrics, and ensuring the timely processing of electronic invoices.

a. A “purchasing system” is defined as the Contractor’s system for purchasing and subcontracting, including the selection of contractors, analysis of quoted prices, negotiation of prices with contractors, placing and administering orders, and expediting delivery of materials.

b. An “acceptable purchasing system” means a purchasing system that includes the following elements:

1. Personnel assigned for providing quotes to customers and receipting orders.

2. Internal and management audits that ensure the integrity of the purchasing system.

3. Business alliances and contractual relationships that ensure the integrity of the contractor’s ability to provide the scope of products listed in the statement of work.

4. A comprehensive training program that addresses both initial and recurring training needs, as well as a corrective action plan for employees that violate the policies and procedures of the purchasing system.

5. Policies and procedures to ensure purchase orders and subcontracts contain the necessary flow down clauses, including terms and conditions required by the prime contract.

6. An organizational and administrative structure that ensures effective and efficient procurement of required quality materials/parts at the most economical cost from responsible/reliable sources.

7. Documented selection processes to ensure the supply chain consists of responsive and responsible sources.

8. Internal systemic checks that identify price increases, domestic sourcing issues, or other potential violations BEFORE the order is transmitted to DLA Troop

Support.

9. Procedures that ensure the post-award oversight and surveillance of subcontracted effort to assure that all requirements are followed.

10. Price and cost analysis performed with every purchasing action.

11. Customer Order Tracking capability

12. Order Problem Resolution

13. Pre-priced catalogue (PEL) access

14. Automated order notifications

12.0 Performance Standards

12.1 Performance Metric - Quantity Fill Rate. The contractor shall maintain at least a 95% Quantity Fill

Rate. Quantity Fill Rate shall be calculated as follows:

Line Quantity Delivered

Line Quantity Ordered

To calculate the Quantity Fill Rate Performance Metric, the Government may use the following data sources: Usage Data provided monthly, data from KO Portal, invoice data and the Next Generation Enterprise Linked Logistics Information Source (NGE).

Performance will be measured through NGE by the data provided in the EDI transactions.

NGE shall provide the Contracting Officer and Contractor with the monthly metric report within 10 business days from the end of the preceding month. The Contractor will then have 10 business days to dispute the monthly metric report via email to the Contracting

Officer. Such dispute shall state the basis for the dispute and shall include all documents in support of the Contractor’s position. Any dispute beyond the 10 business days shall be deemed untimely and shall be denied.

12.2 Performance Metric – On-Time Delivery Rate. The contractor shall maintain at least a 95% on-time delivery. On-time delivery shall be calculated as follows:

Number of Lines Delivered On Time

Total Number of Lines Due

To calculate the Quantity Fill Rate Performance Metric, the Government may use the following data sources: Usage Data provided monthly, data from KO Portal, invoice data and the Next Generation Enterprise Linked Logistics Information Source (NGE).

Performance will be measured through NGE by the data provided in the EDI transactions.

NGE shall provide the Contracting Officer and Contractor with the monthly metric report within 10 business days from the end of the preceding month. The Contractor will then have 10 business days to dispute the monthly metric report via email to the Contracting

Officer. Such dispute shall state the basis for the dispute and shall include all documents in support of the Contractor’s position. Any dispute beyond the 10 business days shall be deemed untimely and shall be denied.

12.3 Contractor Performance Assessment Reporting System (CPARS)

In addition to the performance metrics in Sections 11.1 and 11.2, the Contractor’s performance shall be evaluated annually, based on the categories provided in CPARS (https://cpars.cpars.gov/cpars/app/home

_input.action). These areas include but are not limited to: Quality, Schedule, Cost Control, Management, Small Business, Regulatory, and any other areas of the Contractor’s performance relevant to the contract.

Data entered into CPARS is transmitted to the Past Performance Information Retrieval System (PPIRS) database and is made available for Government use in source selections.

12.4 In-Process Review (IPR). The Contractor shall meet with the contracting officer, at a minimum, on an annual basis to discuss issues relating to the Contractor’s performance and customer satisfaction.

13.0 Security Measures/Force Protection

The Contractor may provide support under this contract during peacetime as well as during regional conflicts, contingency operations, national emergencies and natural disasters. At any time, the

Government, its personnel, resources, and interests may be the target of enemy aggression to include espionage, sabotage, or terrorism. This increased risk requires the Contractor to take measures to ensure that steps are taken to prevent deliberate tampering with, damage to, and/or sabotage of MRO items provided to the customer. The Contractor shall ensure that all items and their packaging have not been tampered with throughout the manufacturing, storage, and delivery process. The Contractor shall immediately inform the Contracting Officer of any attempt or suspected attempt by any party or parties, known or unknown, to tamper with items to be provided under this contract. The following security guidance is also provided for selecting and overseeing transportation subcontractors in the performance of this contract:

1. The Contractor and its relevant subcontractors/suppliers shall ensure that boxes, bags, packaging, etc. are intact and demonstrate no evidence of tampering. All incoming truck drivers shall provide adequate identification upon request. Contractor visitors to Government installations, facilities, etc. shall be properly identified and shall have limited access to those areas appropriate for their visit. Procedures for storing product shall enforce controlled access in order to prevent product alteration. The Contractor shall convey to all warehouse, office and fleet personnel that security shall not be taken lightly and that any suspected adulteration or evidence of product tampering shall be reported immediately.

2. The Contractor and its relevant subcontractors/suppliers shall ensure that open trucks are never left unattended. Bolt-seals shall be used, when possible, to designate loaded trailers. Security seals shall be properly placed on all delivery vehicles and registered/logged in per delivery. The

Contractor shall ensure that employee background checks are up to date. The Contractor shall ensure that drivers have communication devices available in the event of an emergency and shall establish emergency phone numbers for them to use. The Contractor and its relevant subcontractors/suppliers should keep a low profile and shall only share customer routes, etc. on a need-to-know basis. The Contractor shall immediately notify the Contracting Officer of any third-party requests for customer information that is not from one of its subcontractors/suppliers, and is not information directly related to the delivery of ordered MRO items.

The Contractor shall prevent the unauthorized release of any sensitive and/or classified information coming into its possession by all employees. The Contractor shall provide sensitive information only to those of its employees and subcontractors who have a need to know the information in furtherance of the performance of their duties. Information made available to the Contractor by the Government for the performance and/or administration of this contract shall be used only for those purposes and shall not be used or disclosed for any other purpose without the written agreement of the Contracting Officer. The

Contractor shall establish, maintain, and execute communications, operations, and information systems security programs adequate to prevent unauthorized disclosures of sensitive and/or classified information.

14.0 Theater Support

14.1 Management. The Contractor shall ensure that all of its employees, subcontractors, subcontractor’s employees, invitees and agents comply with all guidance, instructions, and general orders applicable to contact with the U.S. Armed Forces issued by the Theater Commander or his/her representative, as well as all pertinent Armed Services and/or Department of Defense directives, policies and procedures, as well as all federal statutes and regulations, judicial interpretations and international agreements (i.e. Status of

Forces Agreements, Host Nation Support Agreements, etc.) applicable to the U.S. Armed Forces. This will include any and all guidance and instructions issued based upon the need to ensure mission accomplishment, product protection and safety..

14.2 Oversight of Personnel. The Contractor and its subcontractor(s) at all tiers shall take reasonable steps to ensure the good conduct of their employees and shall at all times be responsible for the conduct of their employees and those of their subcontractors and invitees while such individuals are engaged in the performance of this Contract. The Contractor shall promptly resolve, to the satisfaction of the Contracting

Officer, all employee performance and conduct problems identified by the Contracting Officer or his/her designated representative(s). The Contracting Officer may direct the Contractor, at its own expense, to remove or replace any employee failing to adhere to instructions and general orders issued by the Theater

Commander or his/her designated representative. The Contracting Officer may also direct the Contractor, at its own expense, to remove or replace any employee that has been determined to be a force protection risk. The Contractor will replace any such employee within seventy-two (72) hours, or as instructed by the Contracting Officer.

14.3 Personnel.

1. The Contractor shall provide a work force possessing the skills, knowledge, training, equipment and certifications required to satisfactorily perform the services required under this

Contract. Documentation establishing that all employees possess the requisite certifications, qualifications, and background checks required under the Contract must be presented to the

Contracting Officer and/or his/her designated representative upon request. Contractor and subcontractor personnel (at all tiers) shall not have been convicted of any felony, shall not have been declared incompetent by reason of mental defect by any court of competent jurisdiction, and shall not suffer from habitual drunkenness or narcotics addiction or dependency, as evidenced by a recognized drug/alcohol testing procedure or possession of unauthorized substances or paraphernalia. All Contractor and subcontractor personnel (at all tiers) under this contract must abide by General Order Number 1B and any other policies which apply to Contractor personnel.

2. The Contractor shall configure its resources such that no delay in delivery occurs due to leaves of absence and/or non-availability of physical resources such as vehicles or communication equipment.

3. All Contractor personnel and subcontractor personnel (at all tiers) performing under this

Contract shall be a minimum age of eighteen years and shall have neither a criminal record, nor existing warrants for any crimes. No such personnel shall be affiliated with associations, elements, groups, organizations, and/or programs that seek to undermine the legitimacy or initiatives of the U.S. Government and/or coalition forces.

4. The Contractor shall employ only persons able to speak, read, write, and understand

English for those positions requiring them to interact with clients and other government personnel, and/or where English is used or essential to provide product, or record data, information or service.

5. The Contractor’s employees and subcontractors shall obtain all passports, visas, badges, or other documents necessary to enter and/or exit any areas identified by the Contracting Officer as necessary to performance under the Contract. Contractor and subcontractor personnel must be authorized to receive Base Access Badges, which shall be issued by the relevant U.S.

Government Authorities. The Contractor and/or its designated subcontractor(s) shall communicate directly with the customer to obtain all access requirements, and all base access requirements must be adhered to. All Contractor employees and/or contractors shall be subject to the customs processing procedures, laws, agreements and duties of the country to which they are deploying for purposes of making deliveries under this Contract.

14.4 Risk Assessment and Mitigation. The Contractor will brief its employees and subcontractors regarding the potential danger, stress, physical hardships and field living conditions of performing under this contract. The

Contractor will designate a point of contact for all planned deliveries, and will prepare plans for support as required by the Contract or as directed by the Contracting Officer. Upon request, the Contractor will provide a list of suitable or qualified subcontractors, including local vendors in an area of operations, for the purpose of issuance of identification badges and/or for…