Attachment_1_PWS.docx

SPE600-15-R-0502

Performance Work Statement Jebel Ali COCO Attachment 1

PERFORMANCE WORK STATEMENT

DEFENSE LOGISTICS AGENCY ENERGY

PORT OF JEBEL ALI, UNITED ARAB EMIRATES (UAE)

1. Description of Required Service

1.1 Area of Consideration

1.2 Storage Tank Requirements

1.3 Grade of Product

1.4 Physical System Requirements

1.5 Estimated Through-put Requirements

1.6 Property Control, Records and System Records

1.7 Environmental

1.8 Additives

2. Facilities

2.1 Product Receiving Requirements

2.2 Product Shipping Requirements

2.3 Truck Fill Stand

2.4 Berthing and Mooring Facilities

2.5 Storage Tanks

2.6 Filtration

2.7 Laboratory Services

2.8 Local requirements

3. Product Quality Surveillance

3.1 Responsibilities

3.6 General Information

3.7 Contractor Manpower Reporting

3.8 Standard operating procedures (SOP) for Contractor Common Access Card (CAC):

4.0 General

4.1 Commercial practices

4.2 Contract Compliance Plan (CCP)

4.3 Quality Control Plan (QCP)

5.0 Deliverables

5.1 Contractor Detailed Plans

5.1.1 Contractor Compliance Plans

1. Description of Required Services:

1.1 Area of Consideration: Port of Jebel Ali, United Arab Emirates (UAE) area.

This requirement is to obtain Contractor Owned, Contractor Operated (COCO) fuel facilities with the current capability to receive, store, ship, Aviation Turbine Fuel Grade JP5 and F76 by Ocean Tanker/Barges/Pipeline/Trucks. The contractor shall inject additives to re-grade JP5 product on in bound or outbound shipments.

CONTRACT PERFORMANCE PERIOD: The contract performance period shall be for a period of five (4) years with one five (5) year option commencing upon award.

1.2 Storage Tank Requirements: 2,000,000 barrels (shell capacity) of storage:

(1) 1,000,000 barrels of JP5

(2) 1,000,000 barrels of F76

A minimum of two tanks per product, interconnected and isolated from other facilities and products handled within the tank farm is required.

1.3 Grade of Service: Two grades of product:

(1) Aviation Turbine Fuel-Grade JP5 [NSN: 9130-00-273-2379]

(2) Navy Distillate-Grade F76 [NSN: 9140-00-273-2377]

1.4 Physical System Requirements: Storage and handling facilities capable of receiving, storing, protecting, and shipping two grades of U.S. Government-owned petroleum product. Offerors are required to provide the tank cleaning and inspection data required by Provision E18 as part of their proposal.

1.5 Estimated Throughput: The U.S. Government will be entitled to an initial fill and a final shipment during the 4-year base and 5-year option performance period. 2,000,000 barrels turnover for each product within a 12-month period is hereafter referred to as allowed throughput. Initial fill is defined as all receipts required to fill the storage tanks to 100% of the awarded safe fill capacity. Final shipment is defined as all issues required to withdraw 100% of the awarded safe fill capacity.

• Allowed Throughput will be calculated by adding the total number of barrels received and shipped in a 12 consecutive month period divided total by 2 starting on contract being placed on revenue after receiving the initial fill and resetting on the anniversary date each following year.

• Initial fill is defined as all receipts required filling the storage tanks to 100% of the awarded safe fill capacity. Final shipment is defined as all issues required to withdraw 100% of the awarded safe fill capacity.

1.5.1 Excess Throughput: For volumes in excess of the allowed throughput under the Provision for Excess Throughput. Excess throughput charges will be calculated by adding the total number of barrels received and shipped in a 12-month period above the allowed throughput quantity.

• Any excess throughput shall be processed as an equable adjustment in accordance with 252.245-7002

1.6 Property Control, Records and System Records: Inventory Data Input: The Contractor shall follow the physical inventory management procedures specified in applicable directives and contract clauses in accordance with DoD 4140.25M and DLA ENERGY Class IIIB Supply Chain Management Interim Policy and Procedural Guidance. The management of fuel inventories involves a full range of actions associated with ordering/requisitioning, receipt, transfer, issue, automated management system information system, (FMD-8), physical inventory and storage of fuel. Utilizing Contractor-furnished company computer system via Contractor-furnished internet access (with static IP address capability) or creation of a dial-in account to the DLA ENERGY BSM-E web server additional data and requirements can be found in DLA Energy Policy and Procedural Guidance.

• Ensure that all orders, receipts, transfers, issues sales/credits, losses, gains and adjustments are properly documented.

• Maintain control over the physical environment to ensure proper product storage can take place with minimal losses.

• Ensure inventory variations are within allowable limits. Document, investigate, report, and take corrective action if necessary on excessive variations.

Contractor furnished computer system shall meet the current commercial standards for a computer system capable of accomplishing the data reporting and records keeping required by FMD; maintaining the data collection and records keeping associated with product quality surveillance (i.e., product analysis and testing reports); and the document collection and records keeping associated with the Contractors preventive maintenance program, etc. The Contractor shall input inventory data of Government-owned product directly into FMD utilizing Government-furnished computer software. DLA Energy will install the necessary software and provide training to a minimum of two Contractor personnel. See I-000X- I119.04, INVENTORY CONTROL RECORDS AND SYSTEM OF RECORDS (DLA ENERGY JAN 2012) for additional information regarding the Government’s inventory data requirements.

1.6.1 The Contractor shall input inventory and sales data for Government-owned product directly into FMD using a Contractor-furnished computer system via Contractor-furnished internet access (Additional data and requirements can be found in Provision I119.04.

1.7 Environmental: The contractor is responsible for compliance with the local laws and regulations of the country. The Contractor shall ensure compliance with Clause H19.01. REPORTING AND CONTAINING OIL SPILLS (OVERSEAS STORAGE) (DLA ENERGY JAN 1982)

1.7.1 Immediately upon the discovery of a product spill, leak, or seepage involving DLA Energy owned product, the Contractor shall notify, by telephone, (1) the Quality Assurance Representative (QAR); (2) the designated Defense Fuel Region; and (3) the Contracting Officer.

1.7.2 Immediately upon discovery of a product spill, leak, or seepage, the Contractor shall take all practicable measures available to contain and prevent further spreading of such spill, leak, or seepage. Spill prevention and control measures taken by the Contractor will be in compliance with all applicable laws and regulations

1.8 Additives The Contractor shall store, inject, and maintain US Government provided additives (Unless contractor is directed to purchase additives IAW F45.01/03/04 by DLA ENERGY Middle East Bahrain regional office or the QAR/COR), on specification at all times. All costs for storage maintenance and injection shall be included in CLIN 0001 and CLIN 0002.

1.8.1 Additive Storage / Supply Chain Plan: The Contractor shall provide with their OFFER a detailed additive plan that clearly demonstrates how they will store, maintain, and inject additives.

1.8.2 Additive Injection:

• Fuel System Icing Inhibitor Injection: The Contractor shall provide an injection system for Fuel System Icing Inhibitor (FSII). FSII will be injected, by the Contractor, based on product specification requirements. Additive will be injected downstream of the storage tank, but prior to the loading pump and issue vessel. The injection requirements that apply to JP5 stocks will be IAW F45.03 OPERATION OF FUEL SYSTEM ICING INHIBITOR ADDITIVE SYSTEM CONTRACTOR-OWNED CONTRACTOR-OPERATED (COCO).

• Static Dissipater Additive (Conductivity Additive) Injection: The Contractor shall provide an injection system for Static Dissipater (Conductivity Additive) (SDA). The Contractor SDA will be injected by the Contractor based on product specification requirements. Additive will be injected downstream of the storage tank, but prior to the loading pump and issue vessel. The injection requirements that apply to JP5 stocks will be IAW -F45.01 OPERATION OF Static Dissipater (CONDUCTIVITY ADDITIVE) SYSTEM.

• Corrosion Inhibitor/Lubricity Improver additive Injection: The Contractor shall provide an injection system for Corrosion Inhibitor/Lubricity Improver Additive (CI/LI). The Contractor CI/LI will be injected, by the Contractor, based on product specification requirements. Additive will be injected downstream of the storage tank, but prior to the loading pump and issue vessel. The injection requirements that apply to JP5 stocks will be IAW F45.04 OPERATION OF CORROSION INHIBITOR/LUBRICITY IMPROVER ADDITIVE SYSTEM, CONTRACTOR-OWNED CONTRACTOR-OPERATED (COCO).

1.8.3 Injection of additives : Contractor-furnished injection system(s) to inject additives as follows: The additives (Fuel System Icing Inhibitor (FSII), Corrosion Inhibitor/Lubricity Improver (CI/LI) will be injected by the Contractor based on product specification requirements. Injection requirements apply to JP5 stocks. (See Provision F45.03)

• Static Dissipater Additive (SDA): The Contractor will purchase and provide the Static Dissipater Additive.

• Anti-icing Additive (FSII): The Contractor will purchase and provide FSII.

• Corrosion Inhibitor/Lubricity Improver Additive (CI/LI): The Contractor will purchase and provide corrosion inhibitor/lubricity improver additive.

NOTE: All required additive injection will be accomplished IAW MIL-STD-3004D.

NOTE: Any additive purchase costs shall be processed as an equable adjustment in accordance with 252.245-7002

2. Facilities:

2.1 Product Receiving Requirement: The Contractor's facilities shall be capable of receiving U.S. Government-owned product via ocean going tankers/barges or U.S. Navy Fleet Oilers on a 24-hour per day, seven day per week basis at pumping rates compatible with the mode of transportation tendered (minimum 2,000 barrels per hour for barges and 8,000 barrels per hour for tankers and Fleet Oilers).

2.2 Product Shipping Requirement: The Contractor's facilities shall be capable of shipping U.S. Government-owned product via ocean going tankers/barges or U.S. Navy Fleet Oilers on a 24 hour per day, seven day per week basis at pumping rates compatible with the mode of transportation tendered (minimum 2,000 barrels per hour for barges and 8,000 barrels per hour for tankers and Fleet Oilers.

2.3 Tank Truck Fill Stand Facility: The Contractor's truck fill stand facility shall be capable of simultaneously loading and shipping four tank trucks at a combined rate of 1,000 gallons per minute. The tank truck loading and shipping capability is required for JP5. The Contractor is responsible for loading and shipping tank trucks on a 5-day workweek schedule; 8:00 a. m. to 5:00 p. m. weekends and local holidays excepted. (NOTE: The normal United Arab Emirates work week is Sunday through Thursday).

2.4 Berthing and Mooring Facilities: The Contractor's berthing and mooring facilities shall be capable of handling a minimum 50,000 dead weight ton (DWT) vessels with an overall length of 800 feet with a minimum draft of 39 feet at mean low water from the Contractor's berthing and mooring facility to the open ocean. The offeror shall provide any port restriction requirements and harbor fees with their proposal, along with height restrictions from ship's manifold to the waterline during loading/unloading.

2.5 Storage Tanks: All storage tanks must meet the minimum requirements of the current American Petroleum Institute (API) standards, and all local laws and regulations, etc. applicable to the tanks and facilities.

2.5.1 Cone roof tanks with internal floating pans are preferred; however, floating roof tanks will be considered if they are equipped with roof drains which prevent water from coming into contact with the product to be stored. The bottom floor of the floating roof that contacts the product should be epoxy coated. Additionally, the floor and at least 3 meters up the side of any tank offered must be epoxy coated.

2.5.2 The tanks shall be interconnected to provide the capability of recirculation and filtration of product between tanks.

2.5.3 Each storage tank shall be equipped with a fuel/water separation system for collection of all product or water dispensed from its bottom water drain(s).

2.5.4 Lighting: The facility must be equipped with illumination to allow receipt/issue operations during hours of darkness.

2.6 Filtration: Contractor-furnished filtration system that meets the specifications outlined in the current API Publication 1581, 5TH edition, Specifications and Qualification Procedures Aviation Jet Fuel Filter Water Separator. The capability must exist to filter product during tank-to-tank transfers under maximum flow conditions, at a minimum. Contractor will be required to keep product on specification for sediment while stored in tanks.

2.6.1 Filter replacement Price: Normal filter replacement is at contractor’s expense. The contractor is required to include all cost associated with filter program in CLIN 0001and CLIN 0002.

2.7 Laboratory Services: The Contractor shall provide laboratory services to test U.S. Government-owned petroleum products. If the Contractor cannot provide full testing capabilities acceptable to the Government, the Contractor shall be responsible for shipping the required samples to a laboratory specified by the Government representative within the Middle East. As a minimum, the Type C testing capability, including FSII, in MIL-STD-3004D, Types of Tests Required on Aviation Turbine Fuel, shall be available within the Contractor’s facility. All costs for lab samples shall be included in CLIN 0001 and CLIN 0002.

2.7.1 Contaminated Product Reimburse: The contractor shall reimburse the U. S. Government the cost of the product and the cost of disposal or remediation for all products that becomes contaminated while at the contractor’s facility, due to contractor negligence.

2.7.2 Off-Specification Product Reporting: The contractor shall report immediately to DLA ENERGY Middle East- Sub-regional office Bahrain or the QAR/COR, all receipts or on hand stocks that fail to meet product quality for receipt, storage or shipment in accordance with latest revisions of MIL-STD-3004. Suspected off-specification product will be isolated and shall not be released for shipment until authorized by DLA Energy Bahrain or the QAR.

2.7.3 Additional Samples: The Contractor shall provide to the government representative samples of any product being stored, shipped, or received under the contract, at the request of, and in the manner designated by the QAR. These samples shall be provided in addition to samples required elsewhere in the contract. The total number of these samples to be provided during any 12 month period shall not exceed eight times the number of tanks specified in the contract. The packing, marking, shipping, and the associated costs, shall be the responsibility of the Contractor.

2.8 Local Requirements: Clearances/National Notification Requirements: The contractor shall be responsible for obtaining all required Country, National, local notifications, clearances and filing, required for the purposes of receiving and issuing US Government owned products at their facilities. Any costs/fees required need to be included in the offer (reference I-000X-I291C ONTRACTOR PUBLIC KEY INFRASTRUCTURE (PKI) IMPLEMENTATION (SEP 2009) and I-000X- I119.04, INVENTORY CONTROL RECORDS AND SYSTEM OF RECORDS (DLA ENERGY JAN 2012).

2.8.1 Local Operating Cost non-product: The contractor shall include all regular and recurring cost associated with the movement of Government Owned Product into and out of the storage facility and the storage terminal manifold System in CLIN 0001and CLIN 0002.

2.8.2 Local Operating Cost product: The contractor shall include all cost associated with the movement of Government Owned Product i.e per barrel tariff, per barrel handling charge etc. movements into and out of the terminal/facility in their offer in CLIN 0001 and CLIN 0002

· Any local operating cost product shall be processed as an equable adjustment in accordance with 252.245-7002

2.8.3 Custody and Risk of Loss: Custody and risk of loss is as stated unless otherwise agreed upon.

a. Marine Receipts. Custody of product delivered by tanker or barge risk of loss shall pass from the carrier to the Contractor when the fuel passes the vessel’s permanent hose connection.

b. Marine Issue. Custody of product Issued to tanker or barge risk of loss shall pass from the Contractor to the Carrier when the fuel passes the vessel’s permanent hose connection.

c. Truck Receipt. Custody of product delivered by tank-truck risk of loss shall pass from Carrier to the Contractor when the fuel passes the terminals first permanent hose connect.

d. Truck Issue. Custody of product issued to tank-truck risk of loss shall pass from Contractor to Carrier when the fuel passes the terminals last permanent hose connect.

2.8.4 Billing: Unless otherwise directed, the Contractor shall prepare and distribute Government bills of lading and all necessary paperwork to include customs documentation if necessary used in issuing product. Bills of lading, routing instructions, and transportation assistance shall be furnished by the DLA Energy Alaska or Service activity placing orders.

3.0 Product Quality Surveillance:

3.1 Responsibilities: The Contractor will be responsible for maintaining the quality of the Government-owned product stored at the Contractor’s facility, to include but not limited to monitoring product deterioration and contamination, in accordance with the contractor developed Quality Control Plan (QCP). The contractor shall conduct quality surveillance in accordance with the policies and procedures in MIL-STD 3004, most current version.

3.1.1 Quality Determination: No petroleum products shall be received or shipped without first determining and confirming conformance with product quality requirements. No conveyance/container shall be loaded until it is inspected by a qualified contractor person and deemed suitable to carry the intended product. Products shall be shipped on a first-in, first-out basis unless otherwise approved or directed by the QAR/Contracting Officer Representative (COR). Non-conforming product shall be reported to the QAR/COR immediately. Anytime product is received into a tank, the tank’s contents shall be suspended from issue pending quality conformance sampling and testing. The Contractor shall ensure that certificates of quality conformance (test reports) are maintained on file for all on-hand fuel stocks.

3.1.2 Suspected off-specification product: The Contractor shall report immediately to DLA Energy Middle East Region, QAR, and COR all receipts or on-hand stocks that fail to meet product quality for receipt, storage, or shipment in accordance with the QCP. Suspected off-specification product will be isolated and shall not be released for shipment until authorized by the Contracting Officer, QAR or COR.

4.0 General:

4.1 Commercial practices: In the absence of any contract provision or referenced method, specification, or other instruction, the Contractor shall perform all services in accordance with best commercial practices.

4.2 Contractor Manpower Reporting: The contractor shall report all contractor labor hours (including subcontractor labor hours) required for performance of services provided under this contract for the Defense Logistics Agency via a secure data collection site. The contractor is required to completely fill in all required data fields using the following web address: http://www.ecmra.mil/.

Reporting inputs will be for the labor executed during the period of performance during each Government fiscal year (FY), which runs October 1 through September 30. While inputs may be reported any time during the FY, all data shall be reported no later than October 31 of each calendar year, beginning with 2015. Contractors may direct questions to the help desk at help desk at: http://www.ecmra.mil.

4.3 Standard Operating Procedures (SOP) for Contractor Common Access Card (CAC):

Accountability in Defense Logistics Agency (DLA) Contracts and Revision to Defense Logistics Agency Directive (DLAD) 4.1303 and 52.204-9000. See appendix:_A

5.0 Deliverables:

5.1 Contractor Detailed Plans: Following contract award, the Contractor shall have 60 days, unless otherwise indicated, to submit the COR reviewed plans to the Contracting Officer for review and acceptance. The detailed plans listed below shall be reviewed by the COR prior to submitting to the Contracting Officer. The plans are considered dynamic documents and shall be updated, as required, throughout the contract period.

5.2 Contract Compliance Plan (CCP). The Contractor is responsible for ensuring compliance with all contract performance requirements. As such, the Contractor shall develop an inspection system acceptable to the Government for monitoring overall contract performance. The inspection system is to include a written (CCP) developed and used by the Contractor to measure performance on a continuous basis. The CCP shall include performance based plans.

The CCP shall include time specific checklists for evaluation of all operational and preventive maintenance requirements. The CCP shall address procedures for corrective actions including the resolution of Corrective Action Report (CAR) and Quality Deficiency Reports (QDR) generated by the Contracting Officer’s Representative (COR).

Within 30 days after award the Contractor shall submit the CCP to the COR/QAR, located in the DLA Energy Middle East, Bahrain Sub- Regional Office for review prior to forwarding to the Contracting Officer for final approval. The CCP shall be made available for Government review, upon request, at any time during the contract performance period. The CCP may be used by the COR/QAR for monitoring and assessing contract performance.

5.3 Quality Control Plan (QCP): The QCP shall provide comprehensive and detailed step-by-step procedures covering all requirements in Provision E1.11, QUALITY CONTROL PLAN. Following contract award, the Contractor shall have 30 days to submit the detailed plan to the QAR, QM, COR and Contracting Officer for review and acceptance. The QCP must describe at a minimum, those functions pertinent to contract performance and compliance. The QCP must be reviewed and approved upon initial award to assure the technical and procedural requirements are adequately described. The QCP must be dynamic (i.e., modified or extended as changes in technical or procedural requirements occur). Contractor responsibility to inspect product and services shall be in accordance with Provision E28, CONTRACTOR INSPECTION RESPONSIBILITIES

The QCP written procedures must be clear and concise as to:

a. What is done?

b. Where it's done

c. When it's done

d. How it's done

e. Who (which contractor employee position) does it.

The QCP must describe, in proper sequence, how contract compliance will be achieved and how the contractor intends to perform the required services in order to ensure that all products meet specification requirements during the performance of the contract.

The QCP shall include procedures for the following operations, as they affect quality control, and an organizational chart that identifies responsible parties for these operations:

a. Receiving - See Provision F1.04

b. Blending – See Provision F45.03

c. Sampling – See Provision C19.07

d. Testing – See Provision C19.07

e. Calibration- and Provision E28

f. Storage and Handling – See Provision E28 and I116

g. Loading and Shipping – See Provision F1.05

h. Quantity Determination – See Provision F1.14

i. Records and Reports – See Provision I119.04

j. Corrective Action

Appendix A

Contractor Instructions

Common Access Card (CAC) Procedures

Performance under this contract may require the contractor to obtain a Common Access Card (CAC). If CACs are issued under this contract, the contractor shall complete and comply with the following steps to obtain, control, and turn-in Government-issued CACs, as well as establish procedures to control and account for contractor CACs at all times. This process is only for the issuance and accountability of CACs. Contractors may be required to provide additional forms and follow additional procedures for other forms of access and/or background/security checks depending on local site/installation requirements.

1. The contractor has each contractor employee requiring a CAC complete and sign Sections I and II of the DD Form 1172-2. The instructions for completing the DD Form 1172-2 are located at http://www.cac.mil/docs/1172-2-Instructions.pdf.

For Section II, Block 22 - If the contractor employee signs and the DD Form 1172-2 it is then forwarded by the contractor. This provides verification for the employee information. If the contractor is submitting a DD Form 1172-2 for him/herself (e.g., the owner), with no higher authority above them for verification, then the signature in Block 22 must be notarized to verify identity.

2. The contractor forwards the DD Form(s) 1172-2 via hand-carry, secure mail, or encrypted email to (NOTE: The contractor may forward these forms individually or as a group):

The Contracting Officer’s Representative (COR) for the contract, if a COR was designated.

The Contracting Officer (CO) for the contract, if no COR was designated.

3. Each contractor employee must verify his/her account information upon receipt of an email from the Government containing a username and password for the Trusted Associate Sponsorship System (TASS). The web link for TASS is included in the email.

4. Each contractor employee will receive an email via TASS when his/her account has been approved. The email will notify the employee to obtain a Government-issued CAC from the nearest Real-Time Automated Personnel Identification System (RAPIDS) office. The email will also provide a link that identifies the locations of RAPIDS offices.

5. Each contractor employee shall obtain his/her issued CAC from the RAPIDS office.

6. The contractor, within one (1) business day of issuance, provides written notice via email to the COR (or the CO, if no COR was designated) for each contractor CAC issued identifying the contractor employee’s name, the date of issuance, and the date of expiration of the CAC. This notification may be made individually for each contractor employee or together for a group of contractor employees.

7. The contractor establishes procedures to control and account for Government-issued contractor CACs at all times, to include the following:

Ensure contractor CACs issued for this contract are only used for the purpose of performing under this contract.

Ensure contractor CACs are secured in a manner that precludes unauthorized use and that recognizes the CAC is the property of the U.S. Government.

Ensure contractor employees do not abuse or place holes in their CACs.

Ensure contractor employees do not display their CACs in public.

8. If a contractor CAC is lost or stolen:

The contractor employee shall immediately notify the contractor that the contractor CAC has been lost or stolen.

The contractor shall immediately notify the COR (or the CO, if no COR was designated), detailing the circumstances regarding the lost or stolen contractor CAC, as follows:

The contractor shall report the lost or stolen CAC card to the local DLA Police/host installation police, who will provide the contractor a police report. If there is no local DLA Police/host installation police, or no police report is provided, the contractor shall provide information to the COR/CO, as applicable, detailing the circumstances of how the CAC was lost or stolen. The COR/CO will provide a memorandum for the contractor employee to support issuance of new CAC.

The contractor has the contractor employee bring the report/memorandum to the nearest RAPIDS office. If the CAC can be reissued within 24 hours, bring the report/memorandum to the nearest CAC office for reissue. If the CAC cannot be reissued in 24 hours, follow the steps for a new CAC, beginning at Step 1.

9. If the expiration date for a contractor CAC is prior to completion of the contract and the contractor employee is to continue working under the contract and still requires a CAC, the contractor:

Notifies the COR as follows:

No less than two (2) weeks prior to the current CAC’s expiration date, completes and complies with the steps above beginning with Step 2 for issuance of a new contractor CAC for the employee.

Brings the expiring CAC to the RAPIDS office for turn-in and receives new CAC.

Notifies the COR once a new CAC has been issued.

10. The contractor/contractor employee turns in any found CACs immediately, via hand- carry, to the nearest Federal law enforcement office.

11. The contractor immediately collects all contractor CAC(s) from the contractor employee(s) at:

Contract completion or termination Termination/Reassignment of an employee (this includes any reason the employee is no longer working for the contractor under the contract or otherwise no longer requires a CAC)

12. The contractor:

For contract completion or termination – within one (1) business day after collecting the contractor CAC(s) arranges for turn-in via one of the below methods:

For termination/reassignment of an employee:

i. Immediately notifies the COR (or the CO, if no COR was designated) that the employee is no longer working for the contractor under the contract or otherwise no longer requires a CAC, as follows:

ii. Follows the turn-in procedures above for contract completion or termination, as applicable.

Contractor Reporting Requirements: The contractor is required to submit, on a monthly basis, to the COR (or the CO, if no COR was designated) a report of all employees working on the contract who have been issued CAC cards and a verification of whether each listed employee still requires a CAC. The report must note where changes have occurred (additions or deletions) since the previous month. Contractor employees who already have a CAC related to another DLA or DoD contract must be included in the monthly report. Contractor shall note the issuing organization and the CAC expiration date. Contractor is still responsible for notifying the COR/CO when the individual is no longer working under the subject contract.

The above procedures have been established as a DLA security measure. Contractors are advised that failure to comply with any of the above requirements will be considered a violation of the terms and conditions of the contract and the Contracting Officer may take action to remedy such violations. Specifically, failure to safeguard, follow these procedures, including reporting requirements, or turn-in CACs within the established timeframes may result in the following actions, which are in addition to other actions the Contracting Officer may take under governing law and regulation and the terms and conditions of the contract: