Attachment_I_-__JTS_Houston_PWS__Final.pdf

SPE603-19-R-0514 Attachment I Performance Work Statement

PERFORMANCE WORK STATEMENT

FOR

DEFENSE FUEL SUPPORT SERVICES

for

JPTS, HOUSTON, TX

As of August 20, 2019

Table of Contents

1.0 Description and Purpose of Required Services

1.1 Requirement

1.2 Area of Consideration

1.3 Storage Requirements

1.4 Grade of Product(s) Serviced

1.5 Allowed Throughput

1.6 General Requirements

1.7 Inventory Control Records and System of Record Requirement

1.8 Additive Injection Requirements

2.0 Operating Requirements

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 Physical System Requirements

2.7 Quality Assurance Representative (QAR) Support

2.8 Contractor Manpower Reporting

2.9 Best Commercial Practices

3.0 Training Requirements

4.0 Deliverables

4.1 Contractor Detailed Plans

Appendix A Common Access Card (CAC) Procedures

1.0 Description and Purpose of Required Services:

1.1 Requirement: The Defense Logistics Agency (DLA), through DLA Energy, is seeking to obtain fuel storage and handling services at Contractor-Owned, Contractor-Operated (COCO) fuel facilities with the capability to receive, store, protect and issue one grade of U.S. government-owned product in the Houston, Texas / Galveston Bay area as described in this Performance Work Statement (PWS). The contract performance period shall be for a base period of four (4) years from January 1, 2020 through December 31, 2023 with one (1) additional five (5)-year option period from January 1, 2024 through December 31, 2028, and an option to extend not to exceed (NTE) six (6) months, from January 1, 2029 through June 30, 2029.

1.2 Area of Consideration: Storage is required in the vicinity of 50 miles of Houston, Texas/ Galveston Bay. The Contractor shall comply with all federal, state, and local laws and regulations governing all services provided, including, but not limited to health, safety, customs, and environmental regulations. All associated compliance costs will be included in the firm-fixed contract price.

1.3 Storage Requirements: The tanks offered for storage must have adequate combined safe fill capacity to store 70,000 barrels of the government petroleum product described in PWS paragraph 1.4.

The storage shall consist of a minimum of two (2) tanks, segregated from other products stored in the terminal. All offered storage must be ready for initial fill at the time of award.

1.4 Grades of Product(s) Serviced: The contractor will receive, store, and ship government-owned Jet Propellant Thermally Stable (JPTS) MIL-DTL-25524 (current version) as described in this PWS and in accordance with all applicable regulatory and commercial standards. The contractor’s facilities, valves, pipelines, gaskets, and any other equipment or component that will be in contact with the JPTS product shall be built of materials compatible with JPTS so that fuel quality is not put at risk.

1.5 Allowed Throughput: The U.S. Government will be entitled to 80,000 barrels of total 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 for each product type received and shipped in a 12 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.

1.5.1 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 to fill the storage tanks to 100% of the awarded capacity for each product described in paragraph 1.4 of this PWS. Final shipment is defined as all shipments required to withdraw 100% of the U.S. Government-owned product remaining in the facility. All costs shall be included in the contract firm-fixed-prices.

1.6 General Requirements: The Contractor shall acquire and/or provide all labor, materials, facilities, equipment, parts, permits, licenses, training, and expertise required to perform every task and/or service directly or indirectly required to provide the services in this PWS. All associated costs shall be included in the firm-fixed-priced price unless otherwise specified by the government in this PWS. These include, but are not limited to: pier operations/maintenance, dredging, facility operations/maintenance, filters, quality assurance, quality surveillance, sample containers, sampling, testing, shipping samples, product rotation, tank gaging, accounting, inventory management, record keeping, reporting, water draining, hazardous waste disposal, blending, throughput, tank-to-tank transfers, truck/railcar inspection, truck/railcar loading/unloading, tanker/barge inspection, tanker/barge loading/unloading, guarding, spill response, emergency response, after-hours support, overtime, port fees, government inspections and contingency support.

1.6.1 Compliance: The Contractor shall comply with all applicable federal, state, and local laws, statutes, codes, regulations, as well as all applicable DLA Energy policy and guidance for all performance tasks described in this PWS, including but not limited to: railroad operations, receipt, quality surveillance, quality assurance, storage, facility maintenance, environmental protection, occupational health, safety, product rotation, positive inventory control, sale, inspection, security, shipment and import/export of required jet fuel product. All associated compliance costs will be included in the firm-fixed contract price.

1.6.2 Delays: The Contractor shall provide all services as required without delay or demurrage.

1.7 Inventory Control Records and System of Record Requirement: The Contractor shall follow the physical inventory management procedures specified in applicable directives and contract clauses in accordance with DoDM 4140.25 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, shipment, physical inventory and storage of fuel. The Contractor shall process 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 I119.04, INVENTORY CONTROL RECORDS AND SYSTEM OF RECORDS (DLA ENERGY AUG 2017) for additional information regarding the Government’s 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.

• Upon contract termination, all records will be provided to the Contracting Officer for inclusion into the archived contract file.

1.7.1 Inventory access: The Contractor shall ensure the U.S. 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 whenever required.

1.7.2 Fuels Manager Defense (FMD) ADP Equipment: The 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. The

Contractor is required to input inventory data of Government-owned product directly into FMD utilizing DLA Energy web-based applications. DLA Energy may provide training to a minimum of two Contractor personnel. See contract clause I119.04, INVENTORY CONTROL RECORDS AND SYSTEM OF RECORDS (DLA ENERGY AUG 2017) for additional information regarding the Government’s inventory data requirements.

2.0 Operating Requirements:

2.1 Product Receiving Requirements: The Contractor’s facility shall be capable of safely receiving petroleum product JPTS via ocean tanker/barge, rail car, tank trucks, and inter-modal containers 24 hours per day, 7 days per week without causing overtime, delay, interruption, or demurrage. The facilities shall be capable of receipt by ocean going tanker/barge with pumping rates compatible with the mode of transportation tendered (minimum 2,000 barrels per hour for barges and 8,000 barrels per hour for tankers).

NOTE: Planning Factor for Receiving Requirement is a range of 70,000 barrels per 12-month period after initial fill.

2.2 Product Shipping Requirements: The Contractor’s facilities shall be capable of safely shipping petroleum product JPTS via ocean tanker/barge, rail car, tank trucks, and inter-modal (ISO) containers 24 hours per day, 7 days per week without causing overtime, delay, interruption, or demurrage. The Contractor’s facilities shall be capable of issue to ocean going tanker/barge with pumping rates compatible with the mode of transportation tendered (minimum 2,000 barrels per hour for barges and 8,000 barrels per hour for tankers).

NOTE: Planning Factor for the Shipping Requirement is a range of 70,000 barrels per 12-month period excluding final shipment.

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

2.3.1 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.

2.3.2 Marine Issue. Custody of product issued to tanker or barge and risk of loss shall pass from the Contractor to the carrier when the fuel passes the vessel’s permanent hose connection.

2.3.3 Tank Truck Issue. Custody of product issued to tank truck risk of loss shall pass from the Contractor to the carrier when the fuel passes the tank truck’s first permanent hose connection.

2.3.2. Railcar Receipt. Custody of product issued to railcar risk of loss shall pass from the carrier to the Contractor when the fuel passes the railcar’s first permanent hose connection.

2.4 Billing: Unless otherwise directed, the Contractor shall prepare and distribute Government bills of lading and all necessary paperwork to include customs documentation, if necessary, used in issuing product. Bills of lading, routing instructions, and transportation assistance shall be furnished by the DLA Energy-Americas East regional office.

2.5 Product Quality Surveillance: The Contractor will be responsible for maintaining the quality of the Government-owned product stored at the Contractor’s facility in accordance with the most current version of MIL-STD-3004-1, DEPARTMENT OF DEFENSE STANDARD PRACTICE: QUALITY ASSURANCE FOR FUELS, LUBRICANTS AND RELATED PRODUCTS. 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.

2.5.1 Contaminated Product Reimburse: The Contractor shall reimburse the U. S. Government the cost of the product and the cost of disposal or remediation for all products that become contaminated while at the Contractor’s facility due to Contractor’s fault.

2.5.2 Off-Specification Product Reporting: The Contractor shall report immediately to DLA Energy QAR/COR or the region office 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-3004-1. Suspected off-specification product will be isolated and shall not be released for shipment until authorized by DLA Energy QAR/COR or region office.

2.5.3 Laboratory Testing Requirements: The Contractor is required to perform testing in accordance with the latest revision of MIL-STD-3004, Table IX, Minimum Sampling and Testing Requirements for Petroleum Products (API MANUAL OF PETROLEUM MEASUREMENTS 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 shall be capable of petroleum product sampling in accordance with API MPMS and/or ASTM D4057 of vessels, barges, tank trucks, storage tanks, pipelines as it applies to location. The 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 specifications: 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, and 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 applicable federal, state, and local laws, regulations, and statutes.

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

IAW ENERGY QUALITY ASSURANCE PROVISION (QAP) E28 INSPECTION

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

2.6 Physical System Requirements: The Contractor shall provide dedicated JPTS storage and handling facilities capable of receiving, storing, protecting, and shipping U. S. Government-owned petroleum product. All tanks and facilities must meet the minimum requirements of the current API standards, NFPA codes, and/or all comparable, equivalent, laws, regulations, codes, etc., applicable to tanks and facilities offered. The facility and other work areas must be equipped with illumination to allow all required operations during hours of darkness.

2.6.1 Seals and Gaskets: All seals and gaskets used in the JPTS storage system components shall be made of vitron, Teflon or nitro. Seals and gaskets made of brass, neoprene or bronze materials shall not be used.

2.6.2 Unsatisfactory Material: the following materials are unsatisfactory for use in JPTS systems:

• Copper

• Zinc

• Silver

• Mild steel, uncoated

• Magnesium

• Bronze

• Brass

• Cast Iron

• Tin

2.6.3 Tanks: The Contractor must provide a minimum of two tanks. The tanks and associated pipelines must be isolated from other facilities and products handled within the storage facility. The tanks for each product must be interconnected with the capability of transferring, re-circulating, and filtering product 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). Provisions shall be available for displacing common loading/unloading lines to a tank other than JPTS storage tanks. All tanks and facilities must meet the minimum requirement of the current American Petroleum Institute (API), National Fire NFPA, CFR codes and standards. All federal, state, and local laws/regulations, etc., applicable to tanks and facilities of the type to be provided must be met. It will be the Contractor’s responsibility to meet and maintain compliance with the above requirements.

2.6.4 Dock Berthing and Mooring Facilities: The Contractor’s berthing and mooring facility shall be capable of handling a minimum 38,000 dead weight ton (DWT); at a minimum, berth vessels with length of 280 feet LOA, 60 feet WOA and 15 feet maximum loaded at mean low water from the Contractor’s berthing and mooring facility to the open ocean. The fuel loading lines from the dock through the manifold to the tanks shall be capable of receiving at a rate of at least 2,000 barrels per hour

2.6.5 Tank Truck Fill Stand Facility: The Contractor’s tank truck on/off-loading facility (TTOF) must be equipped with a safety overfill protection system capable of bottom loading all JPTS shipped by truck. The facility must be equipped with temperature compensating meters to accurately measure the product being loaded.

2.6.6 Filtration: This terminal must be capable of filtering all stored products during tank-to-tank transfers, when replacing dormant fuel in pipelines, or when repacking pipelines. The filtration system must meet specifications outlined in the current American Petroleum Institute (API) Publication 1581, “Specifications and Qualification Procedures – Aviation Jet Fuel Filter/Separator.” Routine filter replacement is at the Contractor’s expense and shall be included under the contract’s firm-fixed-price.

2.7. Quality Assurance Representative (QAR) Support: The Contractor will coordinate as needed with the DLA Energy QAR regarding quality concerns and compliance. The Contractor will support the QAR as needed. Prior to receiving, the initial fill of U.S. Government-owned product, the offered storage tanks and facility must be inspected and approved by the DLA Energy Quality Assurance Representative (QAR).

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

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

2.7.3 Photocopier Machine: The Contractor shall provide access to a photocopy type reproduction machine 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 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 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.

3.0 Training Requirements: The contractor shall ensure personnel are trained by job classification.

The Contractor is responsible to meet the following training requirements and certifications:

a. The Energy Account Transaction Processor/Recorder shall complete the FMD-9 course and shall obtain a Common Access Card (CAC) in accordance with Appendix A of the PWS or, at 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 https://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 Policies P-7, P-26 and P-32. Upon appointment, Responsible Officers (RO), Terminal Managers (TM), and Property Administrators (PA) shall first complete the RO/TM/PA Computer Base Training (CBT) course and then, within 90 days of appointment, attend the Joint http://www.ecmra.mil/ http://www.ecmra.mil/ https://iase.disa.mil/pki/eca/Pages/index.aspx

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.

Note: DLA Energy Region office will provide on-site contractor training/familiarization, when required, after COR coordination and contracting officer approval.

4.0 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.

• General performance criteria will 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 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 QUALITY CONTROL PLAN (DLA ENERGY MAR 2000), or within 30 days, whichever occurs first, for review and final approval and will be effective at the start of the contract performance period.

Appendix A

Contractor Instructions

Common Access Card (CAC) Procedures

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

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

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

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

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

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

• 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.

3. 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.

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

5. 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.

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

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

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

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

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

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

7. If a contractor CAC is lost or stolen:

• The contractor employee shall immediately notify the contractor that the contractor

CAC has been lost or stolen.

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

• 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.

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

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

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

• Notifies the COR as follows:

• 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.

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

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

• Notifies the COR once a new CAC has been issued.

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

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

• Contract completion or termination

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

11. The contractor:

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

• 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.

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.

For termination/reassignment of an employee:

• 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.

Follow 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)