Attachment_I_-_PWS_Updated_9-12-2018.pdf

PERFORMANCE WORK STATEMENT

FOR

DEFENSE FUEL SUPPORT POINT SERVICES

Location

SAN FRANCISCO BAY AREA, CALIFORNIA

As of 9/12/2018

Performance Work Statement (PWS) For

Defense Fuel Support Point Services San Francisco Bay Area, CA

1 Description and Purpose of Required Services

1.1 Requirement

1.2 Area of Consideration

1.3 Storage Capacity/Tank Requirements

1.4 Grade of Service

1.5 Physical System Requirements

1.6 Estimated Throughput Requirements

1.7 Inventory Control Records and System of Record Requirements

1.8 Additive Injection Requirements

2 General Information

2.1 Product Receiving Requirements

2.2 Product Shipping Requirements

2.3 Custody and Risk of Loss

2.4 Billing

2.5 Product Quality Surveillance

2.6 Ancillary Facilities

2.7 Quality Assurance Representative (QAR) Support

2.8 Contractor Manpower Reporting

2.9 Best Commercial Practices

3 Training Requirements

4 Deliverables

4.1 Contractor Detailed Plans

5 Contract Line Items (CLINs)

Appendix A Common Access Card (CAC) Procedures

1. DESCRIPTION AND PURPOSE OF REQUIRED SERVICES

1.1 Requirement: Defense Logistics Agency (DLA) Energy requires Defense Fuel Support Point (DFSP) services in the San Francisco Bay, California area for a four year period, with one five year option. The following terms and conditions are applicable to the requirement for contract services and ancillary facilities for receiving, storing, protecting, and shipping U.S.

Government owned aviation turbine fuel.

1.2 Area of Consideration: San Francisco Bay, California area, with the capability to receive aviation turbine fuel via commercial pipeline, and ship aviation turbine fuel via the Santa Fe Pacific Pipeline system.

1.3 Storage Capacity/Tank Requirements: 1,048,000 barrels storage (fill) capacity is required.

A minimum of two tanks per fuel grade interconnected and isolated from other facilities and products handled within the storage facility is required. All storage must be available upon award at a single facility.

1.4 Grades of Service: Two grades of aviation turbine fuel. 546,000 barrels storage (fill) capacity of commercial grade Jet A, and 502,000 barrels storage (fill) capacity of military grade JP5. Jet A additive injection capability is required for outbound tank truck, and tanker/barge shipments as grade JAA (Jet A with additives).

1.5 Physical System Requirements: Storage and distribution facility capable of receiving, storing, protecting, and shipping U.S. Government owned aviation turbine fuel. The Contractor shall provide all data on proposed storage tanks regarding tank dimensions, tank type, tanks bottoms, calibrated capacity to include safe fill level, and tank cleaning and inspection data as part of their proposal (Reference requirements contained in contract text L-0004-L116.01 DATA REQUIREMENTS (STORAGE)(DLA ENERGY JAN 2013) and DLA Energy Quality Assurance Provision (QAP) E-0003 ENERGY-QAP E18 INSPECTION AND CLEANING OF

BULK PETROLEUM STORAGE TANKS (DLA ENERGY) (FEB 2017).

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

Allowed throughput is defined and calculated by adding the total number of barrels for each product type (Jet A and JP5) received and shipped in a twelve consecutive month period, divided by two, starting when the contract is placed on revenue after receiving the initial fill, and resetting on the anniversary date each following year. Allowed throughput does not include initial fill or final shipment.

1.6.1 Initial Fill and Final Shipment: The U.S. Government will be entitled to initial fill during the first year of the performance period, and final shipment during the last 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. Final shipment is defined as all shipments required withdrawing 100% of the awarded safe fill capacity.

1.7 Inventory 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 order, requisition, receipt, transfer, issue, physical inventory and storage of fuel. The Contractor shall process inventory data of Government-owned product utilizing DLA Energy’s web based application Fuels Manager Defense (FMD). See I119.04, INVENTORY CONTROL RECORDS AND SYSTEM OF RECORDS (DLA ENERGY JAN 2012) for additional information regarding the Governments inventory data requirements. The Contractor shall:

• 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.

Refer to PWS section 3 Training Requirements for FMD and other training requirements.

To process FMD inventory data, the Contractor is required to obtain a Common Access Card (CAC) (see Appendix A CAC Procedures), or as a minimum obtain an External Certificate Authority (ECA). Authorized users who are not eligible for the CAC should refer to http://iase.disa.mil/pki/eca/index.html for current information on obtaining ECA provided certificates.

1.7.1 Inventory Access: The Contractor shall ensure The Government has full access to its complete inventory. DLA Energy Quality Assurance Representative/Contracting Officer’s Representative (QAR/COR), and other DLA Energy representatives will be provided access to FMD onsite as needed.

1.7.2 FMD Automated Data Processing (ADP) Equipment: The Contractor furnished ADP computer system shall meet the current commercial standards for a computer system capable of accomplishing the data reporting and records keeping required by FMD, email, maintaining the data collection and records keeping associated with product quality surveillance (product analysis and testing reports), and the document collection and records keeping associated with the contractor’s preventive maintenance program.

1.8 Additive Injection: The Contractor’s facility shall be capable of injecting additives to Jet A (to regrade to JAA) during shipping of product via tank truck and tanker/barge, on a 7 day per week 24 hours per day basis. If not required to inject additives, the Contractor will be instructed by DLA Energy QAR/COR or the Americas West (AMW) region office.

http://iase.disa.mil/pki/eca/index.html

NOTE: All required additive injection will be accomplished IAW the most current version of

MIL-STD-3004, DEPARTMENT OF DEFENSE STANDARD PRACTICE: QUALITY

ASSURANCE/SURVEILLANCE FOR FUELS, LUBRICANTS AND RELATED PRODUCTS, and the appropriate contract text(s).

1.8.1 Additives Required: The additives required for injection will be Government provided by DLA Energy AMW. The Contractor shall order, receive, store, inject, and maintain additives on specification at all times.

1.8.1.1 Fuel System Icing Inhibitor (FSII): The Contractor shall provide an injection system for Government provided FSII. FSII will be injected based on product specification requirements. The injection requirements that apply to Jet A stocks will be IAW CONTRACT

CLAUSE F45.03 OPERATION OF FUEL SYSTEM ICING INHIBITOR ADDITIVE SYSTEM

CONTRACTOR-OWNED CONTRACTOR-OPERATED (COCO) (DLA ENERGY JAN 2014).

1.8.1.2 Static Dissipater Additive (SDA): The Contractor shall provide an injection system for Government provided SDA. SDA will be injected based on product specification requirements.

The injection requirements that apply to Jet A stocks will be IAW CONTRACT CLAUSE

F45.01 OPERATION OF STATIC DISSIPATER ADDITIVE SYSTEM CONTRACTOR-

OWNED CONTRACTOR-OPERATED (COCO) (DLA ENERGY JAN 2014).

1.8.1.3 Corrosion Inhibitor/Lubricity Improver Additive (CI/LI): The Contractor shall provide an injection system for Government provided CI/LI. CI/LI will be injected based on product specification requirements. The injection requirements that apply to Jet A stocks will be

IAW CONTRACT CLAUSE F45.04 OPERATION OF CORROSION

INHIBITOR/LUBRICITY IMPROVER ADDITIVE SYSTEM, CONTRACTOR- OWNED

CONTRACTOR-OPERATED (COCO) (DLA ENERGY JAN 2014).

1.8.2 Additive Storage/Injection Plan: Following contract award, the Contractor shall provide, a detailed additive plan that clearly demonstrates how they will receive, store, maintain, and inject the required additives to support the allowed throughput.

2. GENERAL INFORMATION

2.1 Product Receiving Requirements: The Contractor’s facility shall be capable of receiving aviation turbine fuel via tanker/barge on a 24-hour per day, 7-day per week basis at pumping rates compatible with the mode of transportation tendered (minimum 8,000 barrels per hour (BPH) for tankers and 2,000 BPH for barges), and via commercial/refinery pipeline system on a 24-hour per day, 7-day per week basis at a rate compatible with the mode tendered.

NOTE: Planning Factor for Receiving Requirement is a range of approximately 1,500,000 BBLS to 2,000,000 BBLS per 12-month period regardless of receiving mode.

2.1.1 Receiving Dock Berthing and Mooring Facilities: The Contractor’s dock and berthing facilities will be capable of receiving and berthing tanker/barge not to exceed 46,000 deadweight tonnage (DWT), 700 feet length overall (LOA), with a minimum draft of 40 feet at the dock. The facilities should be equipped with a turning dolphin capable of accommodating the lateral forces induced when turning a vessel. The contractor 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, as part of its technical proposal, a detailed schematic of the berthing and mooring facilities showing the minimum and maximum capabilities to include current dredging charts for evaluation.

2.2 Product Shipping Requirements: The Contractor’s facility shall be capable of shipping aviation turbine fuel via tanker/barge, and the Santa Fe Pacific Pipeline (SFPP) system on a 24-hour per day, 7-day per week basis at pumping rates compatible with the facility and mode of transportation tendered. Aviation turbine fuel shipped the SFPP does not require additives.

2.2.1 Tank Truck: The Contractor’s facilities shall be capable of shipping aviation turbine fuel grade Jet A with additives (grade JAA, refer to 1.8 Additive Injection) via third party furnished tank trucks 12 hours per day, 12:00 AM midnight to 12:00 PM noon, five (5) days per week (Monday through Friday). The Contractor’s tank truck loading and shipping facility must be equipped with a Scully overfill protection system (or compatible), and capable of loading and shipping a maximum of four 8,000 gallon tank trucks per hour.

NOTE: Planning Factor for the Shipping Requirement is a range of approximately 1,500,000 BBLS to 2,000,000 BBLS per 12-month period regardless of shipping mode.

2.2.2 Tank Truck Loading and Shipping Facility: The Contractor’s tank truck loading and shipping facility shall provide unrestricted access to third party furnished tank trucks, be capable of bottom loading product, be equipped with a Scully overfill protection system (or compatible), be equipped with temperature compensating meters to accurately measure the product being loaded, and be able to load a maximum of four 8,000-gallon tank trucks per hour. The Contractor’s tank truck loading facilities shall be in compliance with federal, state, and local environmental laws and regulations based upon the type of product being loaded.

2.2.3 Drum Loading: The Contractor’s facilities shall be capable to fill contractor provided 55 US gallon drums with JAA upon order and direction from DLA Energy, and properly store JAA drums prior to third party furnished delivery truck shipping.

2.3 Custody and Risk of Loss: Custody and risk of loss is as stated below.

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

2.3.2 Pipeline Receipts: Custody and risk of loss of product delivered by commercial pipeline will pass from the carrier to the Contractor when the fuel passes the first flanged pipe connection owned by the Contractor.

2.3.3 Tank Truck Issue: Custody and risk of loss of product issued to tank truck will pass from the Contractor to the carrier when the fuel passes the tank truck’s loading manifold.

2.3.4 Pipeline Issue: Custody and risk of loss of product issued by the Contractor will pass from the Contractor to SFPP at the first flanged connection owned by SFPP.

2.3.5 Marine Issues: Custody and risk of loss of product issued to tanker or barge will pass from the Contractor to the vessel when the fuel passes the vessel’s permanent hose connection.

2.4 Billing: Unless otherwise directed, the Contractor shall prepare and distribute Government bills of lading and all necessary documentation required in receipt and/or issuing of product.

Bills of lading, routing instructions, and transportation assistance will be furnished by the DLA Energy AMW region office.

2.5 Product Quality Surveillance: The Contractor shall be responsible for maintaining the quality of the Government owned aviation turbine fuel stored at the Contractor’s facility in accordance with the most current version of MIL-STD-3004, DEPARTMENT OF DEFENSE

STANDARD PRACTICE: QUALITY ASSURANCE/SURVEILLANCE FOR FUELS,

LUBRICANTS AND RELATED PRODUCTS. No petroleum products will be received or shipped without first determining, and confirming conformance with product quality requirements. No conveyance/container will be loaded until the Contractor inspects, and deems suitable to carry the intended product. Products will be shipped on a first-in, first-out basis unless otherwise approved or directed by the QAR/COR or AMW region office. Non-conforming product will be reported to the QAR/COR or AMW region office immediately. Anytime product is received into a tank, the tank’s contents will be suspended from issue pending quality conformance sampling and testing. The Contractor will ensure that certificates of quality conformance (test reports) are maintained on file for all on-hand fuel stocks.

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 negligence.

2.5.2 Off Specification Product Reporting: The contractor shall report immediately to DLA Energy QAR/COR or the AMW region office, and the contracting officer 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 will not be released for shipment until authorized by the DLA Energy QAR/COR or AMW region office.

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 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 10 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.

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 will 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 will not exceed eight times the number of tanks specified in the contract. The packing, marking, shipping, and the associated costs, will be the responsibility of the Contractor. The Contractor will provide the Government representative samples of any product being stored, shipped, or received under the contract IAW Contract Provision E-000X

ENERGY QAP E28 CONTRACTOR INSPECTION RESPONSIBILITIES (STORAGE) (DLA

ENERGY DEC 2011).

2.6 Ancillary Facilities: The Contractor’s facilities to be furnished under this requirement will include, as a minimum, the following:

2.6.1 Tanks: All tanks and facilities offered must meet the minimum requirements of the current American Petroleum Institute (API) standards, National Fire Protection Association (NFPA) codes, and/or all federal, state, and local laws and/or regulations applicable to tanks and facilities of the type to be provided. The tanks will be interconnected to provide the capability of recirculating and filtering of product between tanks. Each storage tank will be equipped with a fuel/water separation system for collection of all product or water dispensed from its bottom water drain(s).

2.6.2 Filtration: Contractor furnished fuel filtration/separation system is required. The fuel filtration/separation system must be of the kind that meets the specifications outlined in the current API Publication 1581, “Specifications and Qualification Procedures – Aviation Jet Fuel Filter/Separator.” Normal filter replacement is at contractor’s expense. All costs for filters, disposal, labor, and supplies will be included in the contract price.

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

2.7 Quality Assurance Representative Support

2.7.1 Office Facility Support: The Contractor shall furnish, as a minimum, office space of approximately 110 square feet and furniture for use by the DLA Energy QAR/COR. Furniture items include a 3-drawer desk, one swivel chair with arms, one straight chair, 2-shelf bookcase, 3-drawer letter size locking file cabinet, and a ten digit desktop calculator or equivalent. The Contractor shall provide janitorial services for the QAR/COR office space of the same quality and type that is provided for the Contractor’s office area at the terminal.

2.7.2 Telephone Support: The Contractor shall provide access to a telephone as needed.

2.7.3 Facsimile Machine: The Contractor shall provide access to a facsimile machine as needed.

2.7.4 Photocopier Machine: The Contractor shall provide access to a photocopy type reproduction machine as needed, that is capable of handling letter and legal size copies. The Contractor shall provide sufficient quantities of both sizes of paper to meet the terminal's and QAR/COR’s copy requirements.

2.8 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 will be reported no later than October 31 of each calendar year, beginning after contract award.

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

2.9 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. TRAINING REQUIREMENTS: The contractor shall ensure personnel are trained by job classification. The contractor is responsible to meet the following training requirements and certification:

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

a. The DLA Energy Account Transaction Processor/Recorder (inventory accountant) 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 (TM) – TM shall complete the training as required in DLA Energy P-

7, P-26 and P-32, and shall obtain a CAC in accordance with Appendix A of the PWS, or as a minimum, obtain an ECA. The TM shall first complete the TM 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 TM CBT every two years for refresher training. Additionally, the TM 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 or at www.fuelstraining.com. The duration of the training is as follow: three weeks for FMD-9 for accountants and one week for TM. The contractor shall factor in all travel and any other expenses for their personnel to attend the course in the CONUS COCO Monthly Service Price.

4. DELIVERABLES

4.1 Contractor Detailed Plans: Following contract award, the Contractor will 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 will be reviewed by the COR prior to submitting to the Contracting Officer. The plans are considered dynamic documents and will 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 will include performance based plans.

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

o Record keeping and reporting procedures pertaining to administrative requirements.

o Bulk storage operations.

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 http://www.fuelstraining.com/ o Facility/equipment maintenance.

The CCP will include time specific checklists for evaluation of all operational and preventive maintenance requirements. The CCP will 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 will submit the CCP to the COR for review prior to forwarding to the Contracting Officer for final approval. The CCP will be made available for Government review, upon request, at any time during the contract performance period. The CCP may be used by the COR for monitoring and assessing contract performance.

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 will include sampling, testing methods, equipment, documentation of tests, records keeping, and actions to be taken in the event of unacceptable test results. The plan will describe how product quality surveillance data will be documented and reported. The plan will identify responsible parties for the functions. This plan will be submitted to the QAR prior to the first receipt of Government-owned product (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 will 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 both allowed throughput and excess throughput for an indefinite period.

5. Contract Line Items (CLINs): Prices for all storage and ancillary services included in this PWS should be included in the monthly price for CLIN 0001 and Option CLIN 0002.

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.

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

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

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

7. The contractor establishes procedures to control and account for

Government-issued contractor CACs at all times, to include the following:

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:

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.

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)

Appendix A