Attachment_1_--__PWS_.pdf

PORT OF FUJAIRAH, UNITED ARAB EMIRATES

PERFORMANCE WORK STATEMENT

FOR

DEFENSE FUEL SUPPORT SERVICES

Location

Solicitation, Attachment 1

PWS

SPE600-15-R-0519

1.1 Description and Purpose of Required Services

1.2 Requirement

1.3 Area of Consideration

1.4 Storage Tank Requirement

1.5 Grade of Service

1.6 Physical System Requirements

1.7 Estimated Through-put Requirements

1.8 Property Control, Records and System Records

1.9 Additives Storage/Inspection

2.1 General Information

2.2 Product Receiving Requirements

2.3 Product Shipping Requirements

2.4 Custody and Risk of Loss

2.5 Billing

2.6 Product Quality Surveillance

2.7 Ancillary Facilities

2.8 Contractor Manpower Reporting

2.9 Best Commercial Practices

3.0 Training Requirements

4.1 Deliverables

4.2 Contractor Detailed Plans

Appendix A Common Access Card (CAC) Procedures

Solicitation, Attachment 1

1. Description and Purpose of Required Services Requirement:

1.1 Requirement: This requirement is to obtain Contractor Owned, Contractor Operated (COCO) fuel services with the current capability to receive, store, protect and ship two grades of U.S. government owned product Turbine Fuel Aviation, Grade JP5 and Fuel Naval distillate, Grade F76 in the Port of

Fujairah, UAE.

Joint Contingency Contracting System (JCCS): All non-U.S. offerors and all proposed non-

U.S. subcontractors must be registered online in the JCCS website (https://www.jccs.gov/).

CONTRACT PERFORMANCE PERIOD: The contract performance period shall be for a period of

(4) four years commencing February 1, 2016.

1.2 Area of Consideration: Port of Fujairah, United Arab Emirates (UAE) area.

1.3 Storage Tank Requirements: 440,000 barrels Fuel Naval distillate, Grade F76 and 400,000 barrels Turbine Fuel Aviation, Grade JP5 (fill capacity) of storage is required. A minimum of two tanks per product interconnected and isolated from other facilities and product handled within the tank farm is required. All storage must be available upon award at a single facility.

1.4 Grade of Service: Two grades of product:

(1) Aviation Turbine Fuel Grade JP5

(2) Fuel Naval Distillate Grade F76

1.5 Physical System Requirements: Storage and handling facilities capable of receiving, storing, protecting, and shipping U. S. Government-owned petroleum product. A dedicated system is required.

Service providers will provide in their proposal all data on proposed storage tanks regarding tank dimensions, tanks bottoms, and calibrated capacity to include safe fill level. In addition to the above data, the potential contractor will be required to provide the tank cleaning and inspection data required by DLA Energy contract provision E-0003- ENERGY QAP E18, INSPECTION AND CLEANING OF

BULK PETROLEUM STORAGE TANKS (DLA ENERGY NOV 2003), as part of their proposal.

1.6 Allowed Throughput: The U.S. Government will be entitled to 2,000,000 barrels of of total throughput, for each 12 month contract period, hereafter referred to as allowed throughput.

Throughput is defined/calculated by adding the total number of barrels for each product type (JP-5 and

F76) received and shipped in a 12 consecutive month period divided by 2 starting on contract being placed on revenue after receiving the initial fill and resetting on the anniversary date each following year, not to include the final shipment.

NOTE: Throughput does not include initial fill or final shipment.

Solicitation, Attachment 1

1.6.1 Initial Fill and Final Shipment: The U.S. Government will be entitled to initial fill during year 1 of the performance period and final shipment during the final year of the performance period, at no additional cost.

Initial fill is defined as all receipts required filling the storage tanks to 100% of the awarded safe fill capacity for each product (JP-5/F76). Final shipment is defined as all issues required withdrawing

100% of the awarded safe fill capacity (JP-5/F76).

1.7 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, physical inventory and storage of fuel. Except at this time the actual Inventory processing is to be done by the DLA Energy-Middle

East, Bahrain regional office. Procedures for how the daily inventory will be provided to Middle

East office will be issued at time of award. At any time during the contract period the processing can revert to contractor processing inventory data of Government-owned product(s) directly into FMD utilizing DLA Energy web based applications. DLA Energy will provide training to a minimum of two

Contractor personnel. See I-0004-I119.04, INVENTORY CONTROL RECORDS AND SYSTEM OF

RECORDS (DLA ENERGY JAN 2012) for additional information regarding the Government’s inventory data requirements.

• 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.

1.7.1 Inventory access: The Contractor shall ensure the government has full access to its complete inventory. DLA Energy Representatives will be provided access to the facility as needed to inspect product quality, inventory, or contract compliance visits.

1.7.2 Fuels Management Defense (FMD) ADP Equipment: 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 may be required to input inventory data of Government-owned product directly into FMD utilizing DLA

Energy web based applications. DLA Energy may provide training to a minimum of two Contractor personnel. See I-0004-I119.04, INVENTORY CONTROL RECORDS AND SYSTEM OF RECORDS

(DLA ENERGY JAN 2012) for additional information regarding the Government’s inventory data requirements.

Solicitation, Attachment 1

1.8 Additives: The Contractor shall store, inject, and maintain additives on specification at all times.

All costs for storage, maintenance and injection shall be included in CLIN 0001.

o All Additives shall be provided by the US Government unless directed by DLA

ENERGY Middle East, Bahrain regional office or the QAR/COR to directly purchase.

1.8.1 Additive Storage/Injection 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 F-0004-F45.03 OPERATION OF FUEL SYSTEM ICING INHIBITOR ADDITIVE

SYSTEM CONTRACTOR-OWNED CONTRACTOR-OPERATED (COCO) (DLA ENERGY

JAN 2014).

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

F-0005-F45.04 OPERATION OF CORROSION INHIBITOR/LUBRICITY IMPROVER

ADDITIVE SYSTEM, CONTRACTOR-OWNED CONTRACTOR-OPERATED (COCO)

(DLA ENERGY JAN 2014).

1.8.3 Injection of additives: Terminal/Facility will be capable of injecting additives both during receipt and shipping of product on a 7 day per week 24 hours per day basis. Terminal must be capable of injecting

JP5 with CI/LI and FSII for inbound receipt or outbound shipments as required. If required to inject additives, the contractor will be directed by DLA Energy-Middle East, Bahrain regional office.

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

Solicitation, Attachment 1

2. General Information:

2.1. Product Receiving Requirements: The Contractor’s facilities shall be capable of receiving U. S.

Government-owned petroleum product via tanker/barge on 24 hours per day, seven day per week basis.

Marine Tanker/Barge: The Contractor's facilities shall be capable of receiving U.S.

Government Owned product via ocean going tanker/barges or U.S. Navy Vessels on a 24 hours per day, seven day per week basis at pumping rates compatible with the mode of transportation tendered 2,000 barrels per hour (for barges) and 8,000 barrels (for tankers and

U.S. Navy Vessels).

o Planning Factor for Receiving Requirement is a range of 15 to 30 tanker/barges per 12 month period.

2.2. Product Shipping Requirements:

Marine Tanker/Barge: The Contractor’s facilities shall be capable of shipping U. S.

Government-owned petroleum product via tanker/barge on a 24 hours per day, seven day per week basis at pumping rates compatible with the mode of transportation tendered 2,000 barrels per hour (for barges) and 8,000 barrels (for tankers).

o Planning Factor for the Shipping Requirement Marine Tanker/Barges is a range of

6 to 12 vessels per 12 month period.

Tank Truck: The Contractor is responsible for loading JP5 and F-76 tank trucks 24 hours per day, seven day per week.

o Planning Factor for the Shipping Requirement is a range of 0 to 25 tank trucks per

12 month period.

2.2.1 Local 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 in CLIN 0001.

2.2.2 Berthing and Mooring Facilities: The Contractor’s berthing and mooring facility shall be capable of handling a minimum 46,000 dead weight ton (DWT) vessels with an overall length of 800 feet, with a minimum draft of 45 foot draft at mean low water from the Contractor’s berthing and mooring facility to the open ocean. The offeror shall provide a detailed description of any port restriction/requirements and harbor or other fees associated with their proposal, along with height restrictions from ships manifold to the waterline during loading. (Note: The Contractor is required to provide, with his proposal as part of their Technical Proposal a detailed schematic of their berthing and mooring facilities showing the minimum and maximum capabilities to include current dredging charts for evaluation, by the Government.).

2.2.3 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.

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

Solicitation, Attachment 1

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

c. Tank Truck Issue. Custody of product Issued to tank truck risk of loss shall pass from the Contractor to the Carrier when the fuel passes the tank trucks first permanent hose connection.

2.4 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-Middle East, Bahrain regional office.

2.5 Product Quality Surveillance: The contractor will be responsible for maintaining the quality of the

Government-owned product stored at the Contractor’s facility in accordance with (the current version

of) MIL-STD-3004. 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/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.

2.5.1 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.

2.5.2 Off-Specification Product Reporting: The contractor shall report immediately to DLA

ENERGY Middle East Bahrain regional office 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 Middle East or the QAR.

2.5.3 Laboratory testing Requirements: The contractor is required to perform testing in accordance with MIL-STD-3004 current version, Table for Minimum sampling and testing requirements for petroleum products, in accordance with the appropriate ASTM procedures. 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 IAW C–0003 ENERGY

QAP–C19.07 SAMPLING AND TESTING OF PETROLEUM PRODUCTS (STORAGE) (DLA

ENERGY JAN 2012). At a minimum, the contractor must have Type C Testing capability, to include

FSII, identified in in the Table of Tests Required on Aviation Turbine Fuel as listed in the current version of the MIL-STD-3004, which shall be available within the Contractor’s facility.

Solicitation, Attachment 1

2.5.4 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. The contractor shall provide the government representative samples of any product being stored, shipped, or received under the contract

IAW Contract Provision E-0005 ENERGY QAP E28 CONTRACTOR INSPECTION

RESPONSIBILITIES (STORAGE) (DLA ENERGY DEC 2011).

2.6 Ancillary Facilities: the facilities to be furnished under this requirement shall include, as a minimum, the following:

2.6.1 Tanks: All tanks and facilities offered must meet the minimum requirements of the current API standards, the NFPA codes, and/or all comparable national laws, regulations, etc., applicable to tanks and facilities of the type to be provided. The tanks shall be interconnected so as to provide the capability of re-circulating/filtering of products between tanks. 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). The facility must be equipped with illumination to allow receipt/issue operations during hours of darkness.

2.6.2 Filtration: Contractor-furnished fuel filtration/separation system is required. This system must be capable of filtering JP-5 during tank-to-tank transfers, replacing dormant fuel in pipelines, or when repacking pipelines. The fuel filtration/separation system must be of the kind that meets the specifications outlined in the current American Petroleum Institute (API) Publication 1581, “Specifications and Qualification Procedures – Aviation Jet Fuel Filter/Separator.” Normal filter replacement is at contractors’ expense and should be included under CLIN 0001.

2.6.3 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.

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

2.7 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 after contract award (FY 2016). Contractors may direct questions to the help desk at help desk at: http://www.ecmra.mil.

Solicitation, Attachment 1

PWS

SPE600-15-R-0519

http://www.ecmra.mil/ http://www.ecmra.mil./

2.8 Best Commercial Practices: In the absence of any contract provisions or references to a method, specifications or other instruction, the contractor shall perform all services hereunder in accordance with best commercial practices.

3.1 Training Requirements:

a. Energy account transaction processor/recorder- Fuels Management Defense (FMD) (3 Week

Training) as required in DLA Energy P-32.

b. Terminal Manager(s) – TM Training (1 Week Training) as required in DLA Energy P-32

Upon appointment, ROs, TMs, and PAs shall first complete the RO/TM/PA CBT course and then, within 90 days of appointment, attend the training course and then, within 90 days of appointment, attend the Joint Terminal Managers & Responsible Officers Course. They must also complete the RO

CBT every two years for refresher training. Additionally, the RO, TM and PA may attend the formal training course after three years in order to remain current on DLA Energy and DoD policy and application changes.

c. Funding- DLA Energy will fund training and travel expenses (Travel, Per diem) when required by contract after coordination with the appropriate Contracting Officer or Contracting Officer

Representative.

4.1 Deliverables

4.2 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.

4.2.1 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.

General performance criteria shall include the Contractor’s ability to provide continuous support capabilities as specified in this PWS

Record keeping and reporting procedures pertaining to administrative requirements

Bulk storage operations

Facility/equipment maintenance

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).

Solicitation, Attachment 1

Within 30 days after award the Contractor shall submit the CCP to the COR/QAR, located in the DLA

Energy - Middle East, Bahrain 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.

4.2.2 Product Quality Control Plan (QCP). The Contractor shall provide a comprehensive and detailed plan that will ensure that products handled by the Contractor remain on-specification. The plan shall include sampling, testing methods, equipment, documentation of tests, records keeping, and actions to be taken in the event of unacceptable test results. The plan shall describe how product quality surveillance data will be documented and reported. The plan shall identify responsible parties for the functions. This plan shall be submitted to the COR/QAR, located in the DLA Energy Middle

East, Bahrain Regional Office, prior to the first receipt of Government-owned product (E-0002

ENERGY QAP E1.11 QUALTIY CONTROL PLAN (DLA ENERGY MAR 2000), or within 30 days, whichever occurs first, for review and forwarding to the QAR for final approval and shall be effective at the start of the contract performance period.

4.2.3 Additive Storage/Injection Plan. The Contractor shall provide a comprehensive and detailed additive plan that clearly demonstrates how they will store, inject, and maintain the required additives to support both allowed throughput and excess throughput for an indefinite period of time.

Solicitation, Attachment 1

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.

o 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):

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

o 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.

Solicitation, Attachment 1

PWS

http://www.cac.mil/docs/1172-2-Instructions.pdf

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

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

o 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.

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

o Ensure contractor employees do not display their CACs in public.

8. If a contractor CAC is lost or stolen:

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

o 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:

• In person, followed within one (1) business day by a written notice via email, or

• In writing, via email, or

• By telephone, followed within one (1) business day by a written notice via email.

o 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.

o 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:

o Notifies the COR as follows:

• In person, followed within one (1) business day by a written notice via email, or

• In writing, via email, or

• By telephone, followed within one (1) business day by a written notice via email.

o 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.

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

o 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.

Solicitation, Attachment 1

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

o Contract completion or termination o 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:

o 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:

i. If the COR/CO is co-located or near enough that in-person transfer of CACs can be arranged, the contractor:

Arranges to meet the COR (or the CO, if no COR was designated) to turn-in the collected contractor CAC(s).

Hand-carries all collected contractor CACs for turn-in to meet the COR

(or the CO, if no COR was designated).

Completes and signs the Government-Issued Contractor CAC Turn-In

Receipt with the COR (or the CO, if no COR was designated). The contractor is provided a copy of the receipt.

ii. If in-person transfer of CAC cannot be arranged, the contractor:

Sends, via certified mail, the CACs to the COR/CO. The contractor includes in the package the Government-Issued Contractor CAC Turn-In

Receipt, with signed acknowledgement of contractor turn-in.

Notifies COR/CO that CACs have been sent via certified mail.

Receives a completed copy of the receipt from the COR/CO once the

COR/CO has received the CACs.

o 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:

In person, followed within one (1) business day by a written notice via email, or

In writing, via email, or

By telephone, followed within one (1) business day by a written notice via email.

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

Solicitation, Attachment 1

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:

Immediate work stoppage (issuance of a stop work order), not to be lifted until resolution of

CAC issue

Disapproval of invoices and delay of payment

Withholding of final payment (in accordance with FAR 52.204-9)

Documentation of CAC Non-Compliance in the Contractor Performance Assessment

Reporting System (CPARS)

Solicitation, Attachment 1