Attachment_I_PWS_SPE600-17-R-0534.pdf

PERFORMANCE WORK STATEMENT

FOR

DEFENSE FUEL SUPPORT SERVICES

Location

BOSTON

As of August 3, 2017

Attachment I- PWS

SPE600-17-R-0534

Table of Contents C-1.0 Description and Purpose of Required Services C-1.1 Requirement C-1.2 Area of Consideration C-1.3 Storage Tank Requirement C-1.4 Grade of Service C-1.5 Physical System Requirements C-1.6 Estimated Throughput C-1.6.1 Initial Fill and Final Shipment C-1.7 Property Control, Records and System Records Inventory Data Input C-1.7.1 Inventory access C-1.7.2 Fuels Management Defense (FMD) ADP Equipment

C-2.0 General Information C-2.1 Product Receiving Requirements C-2.2 Product Shipping Requirements C-2.2.1 Local Clearances/National Notification Requirements C-2.3 Custody and Risk of Loss C-2.4 Billing C-2.5 Product Quality Surveillance C-2.5.1 Contaminated Product Reimbursement C-2.5.2 Off-Specification Product Reporting C-2.5.3 Laboratory Testing Requirements C-2.5.4 Additional Samples C-2.6 Ancillary Facilities C-2.6.1 Tanks C-2.6.2 Filtration C-2.6.3 Pipeline C-2.6.4 Berthing and Mooring Facilities C-2.6.5 Tank Truck Fill Stand Facility C-2.6.6 Lighting C-2.7 Contractor Manpower Reporting C-2.8 Best Commercial Practices

C-3.0 Training C-3.1 Training Requirements

C-4.0 Deliverables C-4.1 Contractor Detailed Plans C-4.1.1 Contract Compliance Plan (CCP) C-4.1.2 Product Quality Control Plan (QCP)

Appendix A Common Access Card (CAC) Procedures

Attachment I- PWS

C-1.0 Description and Purpose of Required Services:

C-1.1 Requirement: This requirement is to obtain Contractor Owned, Contractor Operated (COCO) fuel services within the area of Boston, Massachusetts. The contractor shall currently have the capabilities for: 1) the receipt of U.S. Government owned product (Turbine Fuel Aviation, Grade JP-5) via ocean going tanker/barges; 2) the storage and quality maintenance of the product;

and 3) the shipment of product to DoD sponsored customers via tank trucks. The contract will be for a base period of four (4) years, with a five-year (5) option to renew.

C-1.2 Area of Consideration: Within a 10-mile radius of Boston, Massachusetts.

C-1.3 Storage Tank Requirements: The storage service requirement is for a minimum of 65,611 barrels (fill capacity) of Turbine Fuel Aviation, Grade JP-5. A dedicated system, as defined in the latest version of MIL-STD-3004, with a minimum of two tanks interconnected and isolated from other fuel systems and products handled within the facility (tank farm) is required. All storage must be available upon award at a single port.

C-1.4 Grade of Service: Aviation Turbine Fuel Grade JP-5.

C-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 proposals all data on proposed storage tanks regarding tank dimensions, tanks bottoms, and calibrated capacity to include safe fill level in accordance with contract provision L116.01 DATA REQUIREMENTS (STORAGE) (DLA ENERGY JAN 2013). In addition to the above data, the potential contractor will be required to provide the tank cleaning and inspection data required by QAP E18, INSPECTION AND CLEANING OF BULK PETROLEUM STORAGE TANKS (DLA ENERGY FEB 2017), as part of the proposal.

C-1.6 Estimated Throughput: The U.S. Government will be entitled to 21,000 barrels of JP-5 throughput for each 12 month contract period, hereafter referred to as allowed throughput. Allowed throughput is defined and calculated by adding the total number of barrels of JP-5 received and shipped in a 12 consecutive month period divided by 2, starting when the contract is placed on revenue after receiving the initial fill and resetting on the anniversary date each following year, not to include the final shipment.

C-1.6.1 Initial Fill and Final Shipment: The U.S. Government will be entitled to the initial fill during the first 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 to fill the storage tanks up to 100% of the awarded safe fill capacity for JP-5. Final shipment is defined as all issues required to withdraw 100% of the awarded safe fill capacity for JP-5.

C-1.7 Property Control, Records and System Records Inventory Data Input: The Contractor shall follow the physical inventory management procedures specified in (1) contract provision

I119.04 INVENTORY CONTROL RECORDS AND SYSTEM OF RECORD (DLA ENERGY

JAN 2012), (2) DoD 4140.25M, (3) DLA ENERGY Class IIIB Supply Chain Management, Interim Policy and Procedural Guidance, and (4) all applicable directives.

Attachment I- PWS

The management of fuel inventories involve 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. The contractor shall: 1) ensure that all orders, receipts, transfers, issues sales/credits, losses, gains and adjustments are properly documented; 2) maintain control over the physical environment to ensure proper product storage can take place with minimal losses; 3) ensure inventory variations are within the allowable limits specified in MIL-STD-3004; and 4) document, investigate, report, and take corrective action if necessary on excessive variations.

C-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.

C-1.7.2 Fuels Management Defense (FMD) ADP Equipment: The contractor’s 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 9; 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 process inventory data of Government-owned product directly into FMD 9 utilizing DLA Energy web base applications.

DLA Energy will install the necessary software and will provide training to a minimum of two contractor personnel. Refer to I119.04, INVENTORY CONTROL RECORDS AND SYSTEM OF RECORDS (DLA ENERGY JAN 2012) for additional information regarding the Government’s inventory data requirements.

C-2.0 General Information:

C-2.1 Product Receiving Requirements:

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 through a dedicated pipeline 24 hours per day, seven days per week, at pumping rates compatible with the mode of transportation tendered.

Note: The planning factor for the product receiving requirement is within a range of 3 to 6 tanker/barges per every 12 month period.

C-2.2 Product Shipping Requirements:

Tank Truck: The contractor is responsible for shipping (loading) two tank trucks with U.S.

Government owned product at a rate of 250 gallons per minute (per truck) 24 hours per day, seven days per week. The truck facility must be equipped (connected) to a dedicated pipeline and illumination to allow receipt/issue operations during hours of darkness.

Note: The planning factor for the shipping requirement is within a range of 110 to 120 tank trucks per every 12 month period.

Attachment I- PWS

C-2.2.1 Local Clearances/National Notification Requirements: The contractor shall be responsible for obtaining all Federal, State, and local notifications, clearances and filing required for the purposes of receiving and issuing U.S. Government owned products at its facilities.

C-2.3 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 and risk of loss shall pass from the carrier to the contractor when the fuel passes the vessel’s permanent hose connection.

b. Tank Trucks Issues: Custody of product issued to tank trucks and risk of loss shall pass from the contractor to the carrier when the fuel passes the truck’s permanent hose connection.

C-2.4 Billing: Unless otherwise directed, the contractor shall prepare and distribute Government bills of lading and all necessary paperwork utilized when issuing product. Bills of lading, routing instructions, and transportation assistance shall be furnished by the DLA Energy Americas East regional office or service activity placing orders.

C-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 latest 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 qualified contractor personnel 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.

C-2.5.1 Contaminated Product Reimbursement: The contractor shall reimburse the U. S.

Government the cost of the product and the cost of disposal or remediation for all products that become contaminated while at the contractor’s facility due to contractor’s negligence.

C-2.5.2 Off-Specification Product Reporting: The contractor shall report immediately to DLA Energy Americas East 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 the 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 Americas East regional office or the QAR.

C-2.5.3 Laboratory Testing Requirements: The contractor is required to perform laboratory testing in accordance with the latest revisions of MIL-STD-3004, Table IX Minimum Sampling and Testing Requirements for Petroleum Products and sampling in accordance with STANDARD

PRACTICE FOR MANUAL SAMPLING OF PETROLEUM AND PETROLEUM PRODUCTS

(API MANUAL OF PETROLEUM MEASUREMENT STANDARDS (MPMS), Chapter 8.1) and/or ASTM D4057. At a minimum, the contractor shall either have Type C-level testing

Attachment I- PWS capability at its facility or subcontract to perform tests. The contractor must provide very detailed information in its offeror submission package (OSP) and allow DLA Energy to evaluate for final approval. Information to include at a minimum: laboratory name, location, testing capabilities, employee proficiency, testing turn-around time and POCs.

The Contractor shall be capable of petroleum product sampling IAW API MPMS and/or ASTM D4057 of vessels, barges, tank trucks, storage tanks, pipelines as it applies to location. Contractor shall maintain a supply of 5 unused epoxy lined fuel sample shipping containers for DLA Energy use or emergency need. Sample containers shall be stored to ensure they are clean and free from all substances that might contaminate the product being sampled. Containers must meet the following specifics: Complies with ASTM D-4306, height not to exceed 9 inches, diameter not to exceed 7 inches, capacity 1 USG, Bung Plug ¾” with lock-wire hole, carrying handle able to be shipped as hazardous material.

The Contractor shall be responsible for transporting all petroleum samples from job site to its laboratory or its subcontracted laboratory in accordance with local, state or federal laws.

Note: If the contractor plans to acquire the services of a subcontractor to perform certain tests and/or functions, the contractor is required to provide that information in the Technical Proposal and include a comprehensive plan that at a minimum includes the following information: sub-contracted laboratory name, POC, location and address, mode of transportation to sub-contracted laboratory, how to protect chain of custody and avoid sample contamination and turn-around time when the sample results will be received.

C-2.5.4 Additional Samples: The contractor shall provide to the government representative (QAR/COR) samples of any product being stored, shipped, or received under the contract, at the request of, and in the manner designated by the QAR in accordance with the latest revisions of MIL-STD-3004, Table IX Minimum Sampling and Testing Requirements for Petroleum Products, and ASTM D4057, STANDARD PRACTICE FOR MANUAL SAMPLING OF PETROLEUM

AND PETROLEUM PRODUCTS (API MANUAL OF PETROLEUM MEASUREMENT

STANDARDS (MPMS), Chapter 8.1). These samples shall be provided in addition to samples required elsewhere in the contract. The total number of the samples to be provided during any 12-month period shall not exceed eight times the number of tanks specified in the contract.

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

C-2.6.1 Tanks: All tanks and facilities offered must meet the minimum requirements of the current EI Specification 1581, the NFPA codes, and/or all comparable national laws and regulations applicable to tanks and facilities of the type to be provided. The tanks shall be interconnected 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.

C-2.6.2 Filtration: Contractor-furnished fuel filtration/separation system is required. This system must be capable of filtering JP-5 during: receipt, shipment, tank-to-tank transfers, replacement of

Attachment I- PWS 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 EI Specification 1581, “Specifications and Laboratory Qualification Procedures for Aviation Fuel Filter/Water Separators.” Filtration must be sized to meet loading, receipt, pipeline and tank trucks in accordance with the latest version of the MIL-STD- 3004.

C-2.6.3 Pipeline: The contractor is required to provide a pier dedicated pipeline system to the U.S.

Government sponsor customers 24 hours per day, 7 days per week.

C-2.6.4 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 39 feet 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 its proposal, along with height restrictions from ships manifold to the waterline during loading.

Note: The contractor is required to provide in the Technical Proposal a detailed schematic of the berthing and mooring facilities showing the minimum and maximum capabilities to include current dredging charts for evaluation by the Government and shall be prepared to permit the Government to utilize the maximum berthing and mooring facility capability. Refer to DLA Energy Contract Provision L116.01 DATA REQUIREMENTS (STORAGE) (DLA ENERGY JAN 2013).

C-2.6.5 Tank Truck Fill Stand Facility: The Contractor shall provide a truck fill stand facility connected to a dedicated pipeline and capable of simultaneously receiving (offloading) and shipping (loading) two tank trucks at a combined rate of 500 gallons per minute.

C-2.6.6 Lighting: The truck facility must be equipped with illumination to allow receipt/issue operations during hours of darkness.

C-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. Contractors may direct questions to the help desk at help desk at: http://www.ecmra.mil.

C-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.

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

C-3.0 Training:

C-3.1 Training Requirements: The contractor shall ensure personnel are trained by job classification. The contractor is responsible to meet the following training requirements and certification:

a. The Energy Account Transaction Processor/Recorder shall complete the Fuels Management

Defense (FMD-9) course and shall obtain a Common Access Card (CAC) in accordance with Appendix A of the PWS or as a minimum obtain an External Certificate Authority (ECA) as required in DLA Energy P-7, P-26 and P-32. Authorized users who are not eligible for the CAC should refer to http://iase.disa.mil/pki/eca/index.html and http://iase.disa.mil/pki/eca/Pages/index.aspx.

b. Terminal Manager(s) – TM and Inventory Manager (s) shall complete the training as required in DLA Energy P-7, P-26 and P-32. Upon appointment, ROs, TMs, and PAs shall first complete the RO/TM/PA Computer Base Training (CBT) 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. Prospective eligible applicants shall apply through the Online Registration Tool located at:

http://www2.dla.mil/Registration/Registration.aspx. CBT training requirements for DFSP personnel are located at https://east.esps.disa.mil/dod/dla/dlaenergy/SitePages/Home.aspx

Note: DLA provides a course of instruction at a Training Facility in Alexandria, VA at no cost to the contractor. The duration of the training is as follows: three weeks for FMD-9 for accountants and one week for RO/TM/PA.

C-4.0 Deliverables:

C-4.1 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 comprehensive plans listed below shall be reviewed by the COR prior to submission to the Contracting Officer. The plans shall be updated, as required, throughout the contract period.

C-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

Attachment I- PWS

SPE600-17-R-0534

http://iase.disa.mil/pki/eca/index.html http://iase.disa.mil/pki/eca/Pages/index.aspx https://east.esps.disa.mil/dod/dla/dlaenergy/SitePages/Home.aspx

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 Americas East 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.

C-4.1.2 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 Americas East regional office, prior to the first receipt of Government-owned product (ENERGY QAP E1.11 QUALITY 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.

Attachment I- PWS

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.

Attachment I- PWS

SPE600-17-R-0534

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 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:

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

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)

Attachment I- PWS