ATTACHMENT_I_-_PERFORMANCE_WORK_STATEMENT.pdf

PERFORMANCE WORK STATEMENT

FOR

DEFENSE FUEL SUPPORT SERVICES

Kabul, Afghanistan

1 Description and Purpose of Required Services

1.1 Requirement

1.2 Area of Consideration

1.3 Storage Tank Requirement

1.4 Grade of Service

1.5 Physical System Requirements

1.6 Estimated Through-put Requirements

1.7 Property Control, Records and System Records

1.8 Additives

2 General Information

2.1 Custody and Risk of Loss

2.2 Product Movement

2.3 Product Quality Surveillance

2.4 Ancillary Facilities

2.5 Service Provider Manpower Reporting

2.6 Service Provider Clauses

2.7 Best Commercial Practices

2.8 Contract Provisions

3 Training Requirements

4.1 Deliverables

4.2 Service Provider Detailed Plans:

5.1 General

5.2 Joint Contingency Contracting System (JCCS)

Appendix A Common Access Card (CAC) Procedures

1 Description and Purpose of Required Service:

1.1 Requirement: This requirement is to obtain Contractor Owned, Contactor Operated (COCO) fuel facilities with the current capability to receive, store and ship Aviation Turbine Fuel Grade TS-1 and DF2/Diesel by Tank Truck. As required, the contractor shall inject additives to re-grade product to TS-1 on outbound shipments.

1.1.1 Purpose of the Requirement: Obtain commercial facilities with the capability to store Aviation Turbine Fuel Grade TS-1and DF2/Diesel. 182,000 bbls will be due immediately (performance period) upon award.

CONTRACT PERFORMANCE PERIOD: The contract performance period shall be for a period of One (1) year, with Four (4) – One (1) year options.

1.2 Area of Consideration: the purpose of this requirement is to locate and obtain the necessary facilities and services to receive, store, and ship U. S. Government-owned petroleum products via tank truck within a 50 mile radius of Kabul Afghanistan.

1.3. Storage Tank Requirements:

(1)172,000 barrels (fill capacity) of Turbine Fuel Aviation, Grade TS-1

(2)10,000 barrels (fill capacity) of Diesel Fuel, Grade DF2

A minimum of two tanks for each product, interconnected and isolated from other facilities and products handled within the tank farm is desired, however, one tank per product will be considered. Dedicated facilities are required.

1.4 Grade of Service:

(1) Aviation Turbine Fuel Grade TS-1

(2) Diesel Fuel Grade DF2/Diesel

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; however, a common system will be considered providing the offeror submits the data required by DLA Energy contract provision L116.01, DATA REQUIREMENTS (STORAGE) (DLA ENERGY JAN 2013). 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 E18, INSPECTION AND CLEANING OF BULK PETROLEUM STORAGE TANKS (DLA ENERGY NOV 2003), as part of their proposal.

1.6 Estimated Through-put: The U.S. Government will be entitled to 620,000 barrels of TS-1 and 10,000 bbls of DF2/Diesel, of total product turnover, for each 12 month contract period, hereafter referred to as allowed throughput. Any contract adjustments required for excess throughput will be resolved in accordance with the applicable changes clause (FAR 52.212-

04/52.243-1/ALT-II).

• Allowed Throughput will be calculated by adding the total number of barrels 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.

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. Final shipment is defined as all issues required withdrawing 100% of the awarded safe fill capacity.

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.

1.7.2 Fuels Management Defense (FMD-8) 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 contractor’s preventive maintenance program, etc. The contractor shall input inventory data of Government-owned product directly into FMD utilizing Government-furnished computer software with DLA Energy web based applications. DLA Energy will install the necessary software and provide training to a minimum of two Contractor personnel. See I119.04, INVENTORY CONTROL RECORDS AND SYSTEM OF RECORDS (DLA ENERGY JAN 2012) for additional information regarding the Government’s inventory data requirements.

1.8 Additives: The product currently supplied to this location does not require additive;

however, changes to the supply chain or product degradation may require additive injection with as little as 5 days’ notice. Contractor shall be equipped and capable to 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 will be provided by the government. As a contingency, the contractor must establish a source of supply for each additive. The contract officer may request the contractor provide a cost proposal for providing additive. If needed, the acquisition of additive will be handled through contract modification.

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 and maintain 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 TS1 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 and maintain an injection system for Corrosion Inhibitor/Lubricity Improver

Additive (CI/LI). 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 TS1 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).

• Static Dissipater Additive (SDA aka CA): The Contractor shall provide and maintain an injection system for Static Dissipater Additive (SDA aka CA). 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 TS1 stocks will be IAW F-0004-

F45.03 OPERATION OF STATIC DISSIPATER ADDITIVE SYSTEM

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

JAN 2014).

1.8.3 Injection of additives: Terminal/Facility will be capable of injecting downstream of the storage tank, but prior to the loading pump and issue vessel on a 7 day per week 24 hours per day basis. Terminal must be capable of injecting TS1 with CI/LI, SDA and FSII downstream of the storage tank, but prior to the loading pump and issue vessel. 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 and contract provisions F45.01, F45.03, and F45.04.

2.1 General Information:

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

a. Tank Truck Receipts. Custody of product delivered by tank truck and risk of loss shall pass from the Carrier to the contractor when the fuel passes the tank truck’s first permanent hose connection.

b. Tank Truck Issues. Custody of product delivered by tank truck and risk of loss shall pass from the contractor to the Carrier when the fuel passes the tank truck’s first permanent hose connection.

2.3 Product Movement:

• 2.2.1 Product Receiving Requirements: The contractor's facilities shall be capable of receiving U.S. Government-owned product via tank trucks 24 hours per day, 7 days per week, at pumping rates (500-600 USG per minute) and compatible with the mode of transportation tendered. Offered facility will be capable of receiving approximately 50 plus tank trucks per day. The facility will be capable of off-loading tank trucks (6 to 10 thousand gallon capacity) simultaneously. The unloading process will include the use of an individual (Temperature Compensated Meter) per unloading point. This meter will be capable of recalibration, reset, and register in U.S. gallons (USG). There will also be receipt and issue filtration that meet API 1581. The Contractor will ensure that there are sampling points on the receiving manifolds.

• Notification: The Government shall give notice to the contractor of scheduled product receipts. Receipt notification shall include the estimated quantity, mode of delivery, projected delivery date, shipment source, grade or type of product, and any special instructions.

• Documentation: Unless otherwise directed, the Contractor shall prepare and distribute

Government bills of lading and all other necessary paperwork to include customs documentation if necessary used during product receipt. Bills of lading, routing instructions, and transportation assistance shall be furnished by the DLA ENERGY Middle East Regional office or Service activity placing orders.

2.2.2 Product Shipping Requirements: The Contractor's facilities shall be capable of shipping U.S. Government-owned product via tank trucks 24 hours per day, 7 days per week, at pumping rates (500-600 USG per minute) and compatible with the mode of transportation tendered. Offered facility will be capable of uploading approximately 50 plus tank trucks per day. The facility will be capable of uploading tank trucks (6 to 10 thousand gallon capacity) simultaneously. The uploading process will include the use of an individual (Temperature Compensated Meter) per uploading point. This meter will be capable of recalibration, reset, and register in U.S. gallons (USG). There will also be receipt and issue filtration that meet API 1581. The Contractor will ensure that there are sampling points on the receiving manifolds.

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

2.2.3 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 CLIN 0001.

2.2.4 Tank to Tank Transfer Capability: The capability to transfer product between storage tanks on a 24 hour per day, seven day per week basis is required. When needed, can be either Contractor or Government directed, the Contractor shall transfer product between tanks to consolidate types or grades in preparation for receipts or issues at no additional cost to the government. The responsibility for preventing commingling or contamination during transfers rests completely with the Contractor.

2.3 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.

2.3.1 Contaminated Product Reimbursement: The SP 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.

2.3.2 Off-Specification Product Reporting: The Contractor shall report immediately to DLA ENERGY Middle East regional office or the QAR, 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 Pacific or the QAR.

2.3.3 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 – 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.

2.3.4 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-E28 Contractor

INSPECTION RESPONSIBILITIES (STORAGE) (DLA ENERGY DEC 2011).

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

2.4.1 Truck Loading Facility: Contractor shall provide 24 hours per day, 7 days per week truck loading/off loading facility to include stand-alone filtration and additive injection system capable of issuing a minimum of 210,000 usg per 8 hour work day. Provide detailed schematic drawing of the entire truck loading facility operation for review in the technical review package

2.4.2 Filtration: Contractor-furnished fuel filtration/separation system is required. This system must be capable of filtering TS-1 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.

This system must be capable of filtering TS-1 during tank-to-tank transfers or when issuing fuel via the tank-truck fill stand.

2.5 Contractor Manpower Reporting. The Contractor shall report all Contractor labor hours (including Sub-Contractor 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 2016. Contractors may direct questions to the help desk at help desk at: http://www.ecmra.mil.

2.6 Contract Clauses: All standard contract clauses that apply to Contractor-owned Contractor-operated services are applicable to this requirement.

2.7 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.

2.8 Contract Provisions: All standard contract provisions that apply to Contractor Owned Contractor Operated services are applicable to this requirement.

NOTE: Except as indicated in this Performance Work Statement, all ancillary costs associated with the performance of services shall be included in CLIN’s 0001 and 0002. Any references to http://www.ecmra.mil/ http://www.ecmra.mil./ reimbursement within the solicitation for services herein that conflict with the Performance Work Statement shall be disregarded.

3.1 Training Requirements:

a. Energy account transaction processor/recorder- Fuels Management Defense (FMD) (3 Week Training) as required in DLA Energy P-32 and P-7.

b. Terminal Manager(s) – TM Training as required in DLA Energy P-32 and P-7. 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.

Section 4.0 Deliverables

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

4.1.1 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/PA).

The Contractor shall submit an updated CCP to the Contracting Officer for review and approval within 30 days after contract award. 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/PA for monitoring and assessing contract performance

4.1.2 Product Quality Control Plan. 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 Regional Office, prior to the first receipt Government-owned product (E-0002-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.

4.1.3 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 allowed throughput.

5.1 General.

5.2 Joint Contingency Contracting System (JCCS): 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/).

https://www.jccs.gov/

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

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:

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.

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:

ii. 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.

iii. 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.

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)