SPM300-08-R-0061 Amendment 0003 17 July 08 Original Published Version.pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

15B. CONTRACTOR/OFFEROR

1. CONTRACT ID CODE PAGE OF PAGES

2. AMENDMENT/MODIFICATION NO.

3. EFFECTIVE DATE

17 July 2008

4. REQUISITION/PURCHASE REQ. NO. 5. PROJECT NO. (If applicable)

6. ISSUED BY

DEFENSE SUPPLY CENTER PHILADELPHIA

DIRECTORATE OF SUBSISTEN CE, BLDG. #6

700 ROBBINS AVENUE

PHILADELPHIA, PA 19111-5092

POC: LINDA L. FORD/DSCP-FTAE/215-737-7804

SPM300CODE 7. ADMINISTERED BY (If other than Item 6) CODE

8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code) (X)

9A. AMENDMENT OF SOLICITATION NO.

SPM300-08-R-0061

9B. DATED (SEE ITEM 11)

02 May 08

10A. MODIFICATION OF CONTRACT/ORDER NO.

10B. DATED (SEE ITEM 13)

CODE FACILITY CODE

11. THIS ITEM ONLY APPLIES TO AMENDMEN TS OF SOLICITATIONS

Offer must acknowledge receipt of this amendment prio r to the hour a nd da te specif ied in the solic itat ion or as a mende d, by one of the fol lowing met hods:

12. Accounting and Appropriation Data (If required)

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

(X)

A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify a uthority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as c hanges in pa ying off ice, a ppropr iation date, etc). SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modif icat ion and aut hority)

E. IMPORTANT: Contractor is not, is required t o sign t his document and ret urn copies to the issuing off ice.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

The details of this amendment are provided on the following pages.

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15A. NAME AND TITLE OF SIGNER (Type or print)

(Signature o f pe rson aut horized to sign)

15C. DATE SIGNED

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

16B. UNITED STATES OF AMERICA

(Signature of Cont racting Off icer)

16C. DATE SIGNED

BY

STANDARD FORM 30 (REV. 10-83)

Prescribed by GSA

FAR (48 CFR) 53.243

The above numbered sol icitat ion is amended as set fo rth in Item 14. T he hour and date specif ied for receipt of Offers is ext ended, is not exte nded.

submitted ; or (c ) By se parate letter or tele gram wh ich inc ludes a refere nce to the sol icitat ion and amendme nt numbers. FAILURE OF YOUR ACKNOW LEDGMEN T TO BE RECEIVED AT THE PLACE DESIGNATED FOR TH E RECEIPT OF OFFERS PRIOR TO THE H OUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you de sire t o change an offer already subm itted, such change may be made by te legram or le tter, provided eac h tele gram or lett er makes ref erence to the solicitat ion a nd th is am endment, a nd is rece ived prior to t he opening hour and date speci fied.

(a) By comp let ing Items 8 and 15, a nd ret urning copies o f the amendm ent; (b) By acknow ledging rece ipt of this amendm ent on each copy o f the offer

NSN 7540-01-152-9070

PREVIOUS EDITION UNUSABLE

PerFORM (DLA)

SPM300-08-R-0061 Amendment 0003

This amendment contains two sections, Section I contains actual revisions (adds/changes/deletions) to the solicitation requirements. Section II provides answers to questions which were submitted in reference to the pre-proposal conference. The answers in Section II are provided for clarification purposes only and do not change the requirements in the solicitation.

Section I

1. All references throughout the solicitation to the “Contractor Readiness Capability Plan,” “Contractor Capability Assessment,” and “Readiness Capability Plan” shall be revised to read:

“Capability Assessment Plan (CAP).”

2. On page 39, FAR 52.212-5, revise the date from APR 2008 to JUN 2008. The following clauses contained within FAR 52.212-5 shall be revised as follows:

PAGE # Item # CLAUSE # Change Date From Change Date To 40 (8)(i) FAR 52.219-9 Nov 2007 Apr 2008 41 (25)(i) FAR 52.223-9 Aug 2000 May 2008 41 (25)(ii) FAR 52.223-9

Alternate I Aug 2000 May 2008

41 31 FAR 52.225-13 Feb 2006 Jun 2008

3. On page 71, delete the Product Price definition in its entirety and replace it as follows:

2. Product Price:

a) The product price will be derived in one of two manners for this solicitation:

1) through the use of DSCP’s Manufacturers Price Agreements (MPAs); or 2) through the use of commercial pricing. When a DSCP MPA is available, the MPA price shall be used for the product price. When a DSCP MPA is not available, the Product Price shall be limited to the original manufacturer’s or grower’s price for product. The Product Price shall be based on FOB Origin/Point of Manufacture. In addition, the Product Price shall exclude all costs that are required to be covered in the normal distribution price, including but not limited to, all transportation, broker and dealer costs and fees; and it shall exclude all costs that are required to be covered in the premium distribution price.

b) Exception 1: Airfreight transportation charges may be included in the product price when the following conditions apply:

(i) The product is listed in category #146 – Prime Vendor Fresh Fruits & Vegetables (FF&V) and

(ii) It is necessary for the product to be flown into the local market of Kuwait, Jordan, or Turkey from a foreign country because the local supply is unavailable or insufficient to meet demand requirements.

c) Exception 2: A CONUS-based manufacturer’s pricing which is a national commercial price inclusive of transportation costs to a Distribution Point shall be supported by documentation and may be considered by the Government to be the product price on a case by case basis, upon concurrence of the contracting officer.

d) Upon request, for existing catalog items, for any new items being added to the catalog and for price redeterminations to existing catalog items, the Product Price shall be supported with invoice or quote documentation directly from the manufacturer or grower on their letterhead. Where the address of the Brand Name Owner differs from the location where the product is actually manufactured, this documentation from the Brand Name Owner must identify both addresses and the product price, as identified above. If exception 1 applies, the Product Price shall be supported with invoice or quote documentation directly from the point of purchase in the foreign country. The documentation must be fully traceable to the country of origin and the airfreight charge must be separately stated on the invoice. When the airfreight charge covers items other than those provided for by this contract, a separate subtotal reflecting the pro rata share of the total airfreight that is attributed to the product price of the items that are covered by this contract shall be stated as well. Early payment discount terms shall be specified on all invoices and/or quotes.

Documents not in English will be accompanied by a copy translated into English and documents not denominated in American dollars will include a copy converted to American dollars at the exchange rate specified using the FXConverter on the OANDA Currency Site (http://www.oanda.com) as of the close of business on the effective date of the document.

4. On page 72, revise the third sentence of the Normal Distribution Price Definition to read as follows: It also includes the Contracting Officer Representative (COR) & Customer Liaison Officer (LNO) office space and equipment, all transportation costs (unless the item is a Contracting Officer-approved National Commercial Price inclusive of transportation costs to a Distribution Point or it is an FF&V item priced inclusive of airfreight transportation costs from a foreign country into the local market of Kuwait, Jordan, or Turkey) from the original CONUS and OCONUS Points of Manufacturer to the point where the over ocean container is loaded, all transportation costs from the Prime Vendor’s OCONUS distribution facility(s) to customer locations in Kuwait and Jordan and to the border of Iraq, overland trucking (diversions between Kuwait and Jordan, APOD/SPOD and port to port) and Iraq backhauling and any other elements of pricing not defined in this solicitation.

5. On page 73, number XIII, Pricing, add paragraph C as follows:

C. Catalog product prices must be reflective of the prime vendor’s last receipt price (the price of the stock most recently received into inventory). However, for FF&V items only, when multiple sources are being utilized and more than one manufacturer’s product is receipted prior to a catalog update, the contractor shall establish the product price based on the mix of invoices received post the previous redetermination period. The product price would be derived as follows:

Supplier A – 40% X $5.70 = $2.28 Supplier B – 30% X $5.90 = $1.77 Supplier B – 30% X $6.30 = $1.89

Product Price = $5.94 http://www.oanda.com/

6. On page 75, (b) Method II pricing, paragraph ii, delete the last sentence and replace it with the following language: Manual invoices will be authorized for payment biweekly or monthly as indicated below. Monthly invoices and supporting documentation shall be cumulative for a one(1) month period and must be submitted to the Contracting Officer no later than the 15th day of the following month; e.g. for the period of January 1 thru January 31, referenced invoices must be received by February 15. Payment will be authorized at the end of each month. Bi-weekly invoices and supporting documentation shall be cumulative for a two-week period (from the 1st to the 15th of each month and from the 16th thru the 31st). Invoices for the 1st thru the 15th must be submitted by the 30th of each month and payment will be authorized by the 15th of the following month. Invoices for the 16th thru the 31st must be submitted by the 15th of the following month and payment will be authorized by the 31st of the month.

7. On page 77, revise number 5 to read as follows:

5. Iraq Premium Transportation (Vehicles) & Iraq Squad Leader Program – Bi-Weekly (Categories 212 thru 214 and Category 216, respectively).

The prime vendor shall submit bi-weekly invoices for all vehicles that entered into the Iraq convoy system and all Squad Leaders that entered into those convoys to accompany the deliveries. Payment will be based on the vehicles & squad leaders entrance into the Iraq convoy system.

The prime vendor must maintain and submit along with the vehicle and squad leader invoices a detailed spreadsheet of all Iraq purchase orders, the associated trucks and squad leaders that entered into the convoy system, and the associated convoy report. Sorted by purchase order number, the spreadsheet must contain the purchase order number, transportation invoice number, squad leader invoice number (if applicable), required delivery date, and an itemized listing of the associated trucks and squad leaders. The spreadsheet must include all pertinent information regarding the transportation vehicle including the vehicle number, vehicle type, vehicle contents, driver name, destination, departure date, invoice number, distribution price (dry or refrigerated), and total vehicle charge per order and per invoice. The spreadsheet must also include all pertinent information regarding the squad leader including the person’s name and identification number, transportation vehicles assigned to the squad leader’s mission, per person distribution price, and total distribution amount.

No additional fees shall be charged for Iraq premium transportation or Squad Leaders.

8. On page 78, delete number 7. – Iraq Squad Leader (SL) Program in its entirety.

9. On page 84, revise the last sentence to read as follows: “As the program is implemented, it is anticipated that 75 to 80 percent of the contract product price dollar value will be under agreement.”

10. On page 86, XVII, Rebates/Discounts and Price-Related Provisions, revise paragraph (b) (1) to read as follows:

(i) the Early Payment discount is an incentive to encourage payment earlier than the normal payment due date; such as 14, 30, or 60 days;

11. On page 121, add the following paragraph V:

V. Army Veterinary Inspectors and Inspections

As described and detailed in this solicitation, all inspections by Army Veterinary Inspectors (VETCOM) shall be conducted in accordance with 48 CFR Part 246, Army Regulation (AR) 40-657, AR 40-656, and any other rule, regulation, or standard food inspection policy applicable to the Subsistence Prime Vendor operating within this geographic area as may be established from time to time by CENTCOM, Third US Army, or any other Department of Defense entity.

12. On page 126, revise paragraph (N) to read as follows: Kuwait and Jordan customers may cancel orders up to 18 hours prior to delivery. Iraq customers may cancel orders prior to truck sealing. No restocking charges apply.

13. On page 168, revise the second sentence to read as follows: In addition, the contractor must identify those types of discounts, rebates, allowances or other similar economic incentives or benefits given to any other customer that it shall pass on to the Government and those types of discounts, rebates, allowances or other similar economic incentives or benefits given to any other customer that will be retained by the contractor.

14. On page 176, revise the sixth paragraph to read as follows: “Offerors that do not have records of past performance, socioeconomic past performance, and/or JWOD past performance will receive a “Neutral” rating. This evaluation will also be performed for any partner involved in the proposed contract. Government (in house) records will also be used for this evaluation, if applicable, and will be considered more reliable than information derived from other sources.”

15. On page 180, FAR 52.212-3, revise the date from NOV 2007 to JUN 2008. Also make the following changes within the clause:

a. On page 180, delete and replace the first paragraph with the following: An offeror shall complete only paragraphs (b) of this provision if the offeror has completed the annual representations and certificates electronically at http://orca.bpn.gov. If an offeror has not completed the annual representations and certifications electronically at the ORCA website, the offeror shall complete only paragraphs (c) through (m) of this provision.

b. On page 180, paragraph (a) Definitions, add the following definition (included alphabetically):

“Restricted business operations” means business operations in Sudan that include power production activities, mineral extraction activities, oil-related activities, or the production of military equipment, as those terms are defined in the Sudan Accountability and Divestment Act of 2007 (Pub. L. 110- 174). Restricted business operations do not include business operations that the person conducting the business can demonstrate—

(1) Are conducted under contract directly and exclusively with the regional government of southern Sudan;

(2) Are conducted pursuant to specific authorization from the Office of Foreign Assets Control in the Department of the Treasury, or are expressly exempted under Federal law from the requirement to be conducted under such authorization;

http://orca.bpn.gov/

(3) Consist of providing goods or services to marginalized populations of Sudan;

(4) Consist of providing goods or services to an internationally recognized peacekeeping force or humanitarian organization;

(5) Consist of providing goods or services that are used only to promote health or education; or

(6) Have been voluntarily suspended.

c. On page 181, delete and replace paragraph (b) with the following:

(b) (1) Annual Representations and Certifications. Any changes provided by the offeror in paragraph (b)(2) of this provision do not automatically change the representations and certifications posted on the Online Representations and Certifications Application (ORCA) website.

(2) The offeror has completed the annual representations and certifications electronically via the ORCA website at http://orca.bpn.gov .After reviewing the ORCA database information, the offeror verifies by submission of this offer that the representation and certifications currently posted electronically at FAR 52.212-3, Offeror Representations and Certifications—Commercial Items, have been entered or updated in the last 12 months, are current, accurate, complete, and applicable to this solicitation (including the business size standard applicable to the NAICS code referenced for this solicitation), as of the date of this offer and are incorporated in this offer by reference (see FAR 4.1201), except for paragraphs ____________. [Offeror to identify the applicable paragraphs at (c) through (m) of this provision that the offeror has completed for the purposes of this solicitation only, if any. These amended representation(s) and/or certification(s) are also incorporated in this offer and are current, accurate, and complete as of the date of this offer. Any changes provided by the offeror are applicable to this solicitation only, and do not result in an update to the representations and certifications posted on ORCA.]

d. On page 188, delete and replace paragraph (h) as follows:

(h) Certification Regarding Responsibility Matters (Executive Order 12689). (Applies only if the contract value is expected to exceed the simplified acquisition threshold.) The offeror certifies, to the best of its knowledge and belief, that the offeror and/or any of its principals--

(1) * Are, * are not presently debarred, suspended, proposed for debarment, or declared ineligible for the award of contracts by any Federal agency;

http://orca.bpn.gov/

(2) * Have, * have not, within a three-year period preceding this offer, been convicted of or had a civil judgment rendered against them for: commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a Federal, state or local government contract or subcontract; violation of Federal or state antitrust statutes relating to the submission of offers; or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, violating Federal criminal tax laws, or receiving stolen property; and

(3) * Are, * are not presently indicted for, or otherwise criminally or civilly charged by a Government entity with, commission of any of these offenses enumerated in paragraph (h)(2) of this clause; and

(4) * Have, *have not, within a three-year period preceding this offer, been notified of any delinquent Federal taxes in an amount that exceeds $3,000 for which the liability remains unsatisfied.

(i) Taxes are considered delinquent if both of the following criteria apply:

(A) The tax liability is finally determined. The liability is finally determined if it has been assessed. A liability is not finally determined if there is a pending administrative or judicial challenge. In the case of a judicial challenge to the liability, the liability is not finally determined until all judicial appeal rights have been exhausted.

(B) The taxpayer is delinquent in making payment. A taxpayer is delinquent if the taxpayer has failed to pay the tax liability when full payment was due and required. A taxpayer is not delinquent in cases where enforced collection action is precluded.

(ii) Examples.

(A) The taxpayer has received a statutory notice of deficiency, under I.R.C. §6212, which entitles the taxpayer to seek Tax Court review of a proposed tax deficiency. This is not a delinquent tax because it is not a final tax liability. Should the taxpayer seek Tax Court review, this will not be a final tax liability until the taxpayer has exercised all judicial appear rights.

(B) The IRS has filed a notice of Federal tax lien with respect to an assessed tax liability, and the taxpayer has been issued a notice under I.R.C. §6320 entitling the taxpayer to request a hearing with the IRS Office of Appeals Contesting the lien filing, and to further appeal to the Tax Court if the IRS determines to sustain the lien filing. In the course of the hearing, the taxpayer is entitled to contest the underlying tax liability because the taxpayer has had no prior opportunity to contest the liability. This is not a delinquent tax because it is not a final tax liability. Should the taxpayer seek tax court review, this will not be a final tax liability until the taxpayer has exercised all judicial appeal rights.

(C) The taxpayer has entered into an installment agreement pursuant to I.R.C. §6159. The taxpayer is making timely payments and is in full compliance with the agreement terms.

The taxpayer is not delinquent because the taxpayer is not currently required to make full payment.

(D) The taxpayer has filed for bankruptcy protection. The taxpayer is not delinquent because enforced collection action is stayed under 11 U.S.C. §362 (the Bankruptcy Code).

e. On page 191, delete and replace paragraph (l) as follows:

(l) Taxpayer identification number (TIN) (26 U.S.C. 6109, 31 U.S.C. 7701). (Not applicable if the offeror is required to provide this information to a central contractor registration database to be eligible for award.)

(1) All offerors must submit the information required in paragraphs (l)(3) through (l)(5) of this provision to comply with debt collection requirements of 31 U.S.C.

7701(c) and 3325(d), reporting requirements of 26 U.S.C. 6041, 6041A, and 6050M, and implementing regulations issued by the Internal Revenue Service

(IRS).

(2) The TIN may be used by the government to collect and report on any delinquent amounts arising out of the offeror’s relationship with the Government (31 U.S.C. 7701(c)(3)). If the resulting contract is subject to the payment reporting requirements described in FAR 4.904, the TIN provided hereunder may be matched with IRS records to verify the accuracy of the offeror’s TIN.]

(3) Taxpayer Identification Number (TIN).

* TIN:_____________________.

* TIN has been applied for.

* TIN is not required because:

* Offeror is a nonresident alien, foreign corporation, or foreign partnership that does not have income effectively connected with the conduct of a trade or business in the United States and does not have an office or place of business or a fiscal paying agent in the United States;

* Offeror is an agency or instrumentality of a foreign government;

* Offeror is an agency or instrumentality of the Federal Government;

(4) Type of organization.

* Sole proprietorship;

* Partnership;

* Corporate entity (not tax-exempt);

* Corporate entity (tax-exempt);

* Government entity (Federal, State, or local);

* Foreign government;

* International organization per 26 CFR 1.6049-4;

* Other ____________________.

(5) Common parent.

* Offeror is not owned or controlled by a common parent:

* Name and TIN of common parent:

Name ____________________________________

TIN ______________________________________

f. On page 191, add paragraph (m) as follows:

(m) Restricted business operations in Sudan. By submission of its offer, the offeror certifies that it does not conduct any restricted business operations in Sudan.

The following amendments apply to solicitation attachments 1 thru 5. Any firm that made a request for or automatically received attachments 1 thru 5 should automatically receive the amended attachments within 48 hours of the effective date of this solicitation amendment. If you do not receive the amended attachments within 48 hours, please submit a request for the amended attachments via e-mail to the following: Ginny.Barnwell@dla.mil, Timothy.Dlugokecki@dla.mil, and Linda.Ford@dla.mil. The amended items are identified as follows:

16. The “Description” for NSN 8905-01-E95-0019, which was item number 50 on attachment 3, item 49 on attachment 4, and 48 on attachment 5 has been revised to read as follows: SAUGAGE, BRKFST LINKS, PRECKD, FZN, PORT, SKINLESS 15-17/LB (10 LB CS)/ROSE

17. The “NSN” and “Description” for item number 8 on attachments 3 and 4, and item number 7 on attachment 5 has been revised from 8905-01-E29-5342, BEEF FAJITA STRIPS, FZN, MARINATED, 2/5 LB PG (10 LB CS) to 8905-01-E95-0223, BEEF FAJITA STRIPS, FZN, MARINATED, 4/5 LB PG NAMP 130/CHISHOLM TRAIL and it is highlighted in “yellow” to identify it as a brand name item.

18. The color code on the following items was revised and/or the NAPA, Mandatory or Brand Name was added to or deleted from the item description:

Attach -ment

Item # NSN Original Color

Revised Color

Add to the Item Description

Delete from the Item Description

3 50 8905-01-E95-0019 Rose Packing Sara Lee/JDean 3 55 8905-01-E59-5482 White Pink Fontanini 641 3 153 8910-01-E60-8832 Pink Lavender

3 163 8920-01-E09-4518 White Pink Conagra Foods/La Choy 4430012620

4 49 8905-01-E95-0019 Rose Packing Sara Lee/Jim Dean 4 111 8915-01-E09-5718 White Pink Simplot 67666 4 157 8910-01-E60-8832 Pink Lavender

4 166 8920-01-E09-4518 White Pink Conagra Foods/La Choy 4430012620

4 522 8960-01-E59-1801 White Pink Quaker/Gatorade 03944

5 48 8905-01-E95-0019 Rose Packing 5 109 8915-01-E09-5718 White Pink Simplot 67666

5 158 8910-01-E60-8832 Arc Diversified 802966000540

5 260 8920-01-E95-0132 Yellow White Super Bakery

5 356 8940-01-E09-4888 White Pink McCain Foods 30007975

5 415 8950-01-E59-7716 White Pink Best Foods 26863

5 662 8940-01-E60-5434 White Pink American Bounty 4283-48-02

19. On attachment 4, change the column “D” heading from “Annual Quantity Demand” to “Annual Quantity Demand X2”

20. On attachments 3, 4, and 5, items 107, 110, and 108, respectively, the pack size in the item description was revised from 5/5 LB CO to 6/5 LB CO.

mailto:Ginny.Barnwell@dla.mil mailto:Timothy.Dlugokecki@dla.mil mailto:Linda.Ford@dla.mil

Section II

The charts presented at the pre-proposal conference are currently posted to the subsistence website:

www.dscp.dla.mil/subs/pv/regions/mideast/pvmideast.asp

Q&A Kuwait/Iraq/Jordan SPV Pre-Proposal Conference 5/14/08

First we would like to thank you for your insightful questions regarding this solicitation. They are very much appreciated.

Please be advised that all of the below questions were received from potential offerors before, during and after the pre-proposal conference (both in writing and orally). They are being published in Amendment 0003 so that all offerors will be provided the same information with regards to this solicitation.

1. Is their a page count limitation for proposals?

Ans.: No, but overly elaborate proposals that contain information not pertinent to the solicitation are not desired. See page 148 of the solicitation, item 7 (v).

2. Identify the sections equivalent to L & M that were used in previous solicitations.

Ans.: Section L is now contained in FAR 52.212-1 and section M is contained in FAR 52.212-2.

3. This question involves the specific source selection factors & criteria to be used. While the factors are described, the criteria are not. Moreover, in response to a question submitted subsequent to the February Bidder's Conference (#268), your office said that the criteria would not be released. In my experience, both the Source Selection criteria and the scoring methods (colors, adjectives, numerical) are fully disclosed in the Request For Proposal (RFP) per the appropriate Department of Defense Instruction (DODI). Does Defense Logistics Agency (DLA) intend to release the usual source selection information via an amendment to the RFP?

Ans.: The specific rating method is not fully disclosed in the RFP. In accordance with Federal Acquisition Regulation (FAR) 15.304, “all factors and significant subfactors that will affect contract award and their relative importance shall be stated clearly in the solicitation.” “The rating method need not be disclosed in the solicitation. The general approach for evaluating past performance information shall be described.”

Required information has been included in the solicitation.

4. (Page 175 of 257 factor II-experience/past performance paragraph A, element 1) If a company does not have battlefield experience can they receive a neutral rating?

Ans.: No. Neutral ratings do not apply to experience. Neutral ratings apply to past performance, socioeconomic past performance, and JWOD past performance http://www.dscp.dla.mil/subs/pv/regions/mideast/pvmideast.asp

5. (Page 177 of 257 price evaluation paragraph 2) If a qualifying country is lower than the domestic offer will the qualifying country price be considered low offer?

Ans.: Evaluation of the items will be on a group basis in accordance with FAR 25.503.

See evaluation procedures at Defense Federal Acquisition Regulation Supplement (DFARS) 225.502. If there are domestic offers (supplying greater than 50% domestic products), a 50% factor will be added to any non-qualifying country offer (supplying greater than 50% non-qualifying country products). If there are no domestic offers, or when a qualifying country offer (see 225.872-1 for a list of qualifying countries) is lower than the domestic offer, any non-qualifying country offers will be evaluated without the 50%.

6. In the answers listed in Amendment IV to the previous draft solicitation, DSCP indicated it would revise the applicable language or clarify contractual ambiguities in the following numbered questions: 13, 17, 18, 20, 21, 22, 25, 26, 28, 35, 36, 37, 40, 41, 57, 60, 61, 62, 63, 64, 67, 68, 166, 168, 170, 171, 172, 173, 181, 184, 191, 194, 209, 215, 218, 219, 220, 222, 226, 264, 272, 274, 278, 279, 280, 281. However, the language in the new solicitation remains substantially the same. Does DSCP plan to make further revisions to the language referenced in these questions?

Ans.: Solicitation revisions are identified in Section I of this amendment. The questions that were not completely answered in SPM300-08-R-0009, amendment 0004 are answered as follows. Note: The page numbers referenced in the following questions pertain to the draft solicitation SPM300-08-R-0009, which was cancelled. The page numbers referenced in the following answers pertain to this solicitation SPM300-08-R- 0061.

13-Pg 72,2. “For supplies shipped from CONUS, the Product Price is limited to delivery FOB destination to the first CONUS destination point stated on the manufacturer, grower or processor invoice.” Does this mean that labeling costs, palleting costs, etc which occurs at a CONUS consolidation point be included in Product Price? If not, why would the contractor be expected to pay for palleting and re-labeling costs for a manufacturer that does not offer this service?

Ans: Price definitions in this solicitation are not the same as stated in the question, please see pages 71-73 and Section I, paragraphs 3 and 4. The product price is based on FOB Origin/Point of manufacture, which may include the manufacturer’s label and pallet. The unique labeling and palleting costs associated with this solicitation are considered distribution costs and therefore should be included in the Normal Distribution Price.

17. The definition of cost has been totally re-written to exclude all suppliers other than manufacturers. Does ARC and UNSTEL manufacturer all of their products? What about all of the other Small Business, NAPA Holders, etc? Do they manufacturer all products that they sell? What about the mega distributor who pack in their own boxes. Who produced it? What did they pay? When? For which lot that is being shipped? What about the earned income they receive from the manufacturer?

There is no way any distributor would offer itself up for government scrutiny of how the prime vendor pays their bills for what monies they receive, etc. The bureaucracy of audits alone would disrupt their normal business practice to a point of negative return.

We believe unfortunately that unintentionally the government is re-writing commercial business practice.

Ans.: The EPA clause that was included in the draft solicitation SPM300- 08-R-0009 is not a part of this solicitation. The price definitions contained in this solicitation specify that product price is based on FOB Origin/Point of Manufacture.

See page 71 for the full definition. If the actual point of manufacture differs from the brand or private label company address, both addresses must be identified on the quote or offer. The product price set by the brand name or private label company must be FOB Origin/Point of manufacture.

18. Pg 84, XV, B. How will the Non Profit Agency Manufacturers obtain grower invoices? Will this provision effectively exclude Non Profit Agency Manufacturers from the program?

Ans.: Non-Profit Agency Manufacturer invoices are acceptable for supporting the product price.

20-FFV prices change like many other commodity items and product is bought daily rather than bi-weekly. Should product prices be fixed for periods of time?

If yes, what is that time period?

Ans.: Yes, fixed in accordance with the price redetermination period, which shall be a minimum of 30 days.

21. If a Kuwait or Iraq company subcontract with a US distributor i.e., (US Foods, SYSCO, PFG) how do we get them to share their private label funds with the government? Private label income is money paid to a distributor from a supplier/manufacture using their products.

Ans.: The Rebate/Discounts and price related provisions of this solicitation state: “The contractor shall employ prevailing commercial methods in the pursuit of discounts, rebates, allowances or other similar economic incentives or benefits, for the customers supported under this contract….All NAPA discounts, food show discounts, early payment discounts (except as identified in paragraph (b) herein), and other discounts, rebates, allowances or other similar economic incentives or benefits given to any other customers shall be passed to the Government via a reduced catalog price.” In accordance with the submission requirement on page 168, offerors are required to identify those discounts, rebates, allowances or other similar economic incentives or benefits that it shall pass on to the Government and those types of discounts, rebates, allowances or other similar economic incentives or benefits that will be retained by the contractor.

22. Is all shelter income from supplier/manufacture to be passed onto the government including: marketing allowance, promotion allowance, backside rebate on quantity sales, and damage incentive program? Please define allowable supplier/manufacture incentive programs.

Ans. See paragraph 6, sub-paragraph 21.

25. How do we get the tanners invoice for potatoes? The Dairy Farmers invoice for milk especially in the Middle East which is not the source of many of the FF&V Local market products?

Ans.: Manufacturer invoices or quotes are required. Milk is purchased from a manufacturer, not directly from the dairy farm. The product price for milk is the manufacturer’s price. Invoices or quotes from Simplot and Lamb Wesson, two of the brand name potato sources identified on the schedule of items are acceptable.

26. Page 73-74, DSCP has introduced a new clause. Does DSCP have the statutory authority to insert a clause giving the KO the right: (i) to audit the Contractor’s books and records, and (ii) to audit the subcontractors at any tier books and records?

Ans. See paragraph 88.

28. Been with PV program since the beginning. Regarding commercial practice – this solicitation moves completely away from commercial practice. I have worked with the largest PV’s in the world, and you cannot do it. This could kill the Prime Vendor program. Currently, CONUS can refuse bad product. Oversea it is 4-12 weeks until product is received. Your product can be damaged, short count, you can get product outside shelf-life. OCONUS products are handled by a carrier we didn’t pay for. Anything can happen. This is impractical; it will do away with small business.

F&R should maybe be done at purchasing of product, not in pipeline, before being found fair and reasonable. Possible request a timeline to respond 3-5 days, and to find another source due to original product/item not being found F&R. What if the KO is unavailable? It puts you in a bind. If there are 10,000 cases in the pipeline, PV is then really taking a hit.

Ans.: Prime vendors are encouraged to seek pricing approvals for new items and non-MPA items prior to the items sailing from CONUS. Any non-MPA products shipped without prior approval are shipped at the vendor’s risk. See page 97.

The average timeline for pricing approval is 3 to 5 days. When KO’s are unavailable, other KO’s within the OCONUS region provide support. There are two KO’s assigned to this acquisition.

35. P17 of 246 (V) Price Warranty and Verification (4). What is the caveat in relation to brand specified items where the price and/or terms are negotiated with the concerned agency or for mandatory items and NAPA items?

Ans.: This question can not be answered because this solicitation does not contain the price warranty and verification language that was included in the draft solicitation SPM300-08-R-0009.

36. P17 of 246 (V) Price Warranty and Verification (5(i)). Please define the term “suppliers.”

Ans. See paragraph 6, sub-paragraph 35.

37. P72 of 246 Item 2 Product Price. Language and definitions used in this provision are both confusing and will be difficult to interpret/implement without dispute. This is further compounded when read in conjunction with the Normal Distribution Price. As example: if a full van load of 6 X No 10 can white beans was purchased, which price would prevail – manufacturer, packer or grower and would the product cost need to exclude packaging labeling and palletization? For meat, poultry and seafood: what definition applies, manufacturer, packer or grower? If national brand cereals are purchased the brand owner may be neither manufacturer, packer or grower as manufacturing could be outsourced. What applies?

Ans.: If the product originates from a manufacturer, then that manufacturer’s invoice is acceptable support documentation for the product price. If the product originates from a grower and that raw product is not used in a manufacturing process, then the grower’s invoice is acceptable support documentation for the product price. The scheduled cereal products are products of General Mills, Kelloggs, Quaker Oats, etc. Invoices from these manufacturers qualify to support the product price for cereal. Invoices from packagers, distributors and consolidators do not qualify to support the product price.

40. P89 of 246. Item XVII National Allowance Program Agreement (NAPA). Please confirm that all NAPA suppliers are mandated to supply PV Contractors directly and not impose on them, at cost to the PV Contractor, third party agents and/consolidators? If the answer is negative then please confirm if the product cost will be the invoice price for the third party agent?

Ans.: There are no restrictions on using third party agents and/or consolidators. Third party fees shall be included in the normal distribution price.

41. Reference is made to the definition of Product Price (page 72 of the draft RFP). The product price is defined as (and limited to) the original manufacturer, grower or processor invoice price for product to be delivered FOB Destination to its first destination. However, many manufacturers have their product co-packed by a separate company. One example of this is Kraft’s Crystal Light. While Kraft is the manufacturer, their authorized co-packer for this item is Power Packaging (located in St. Charles, IL). Using this example, in order to meet the current RFP requirements, can you please indicate whether an invoice from Kraft will continue to be acceptable to the Government or will an invoice from Power Packaging be required?

Ans.: Yes, the Kraft invoice is required. Note: Product Price definitions in this solicitation do not match the language identified in the question.

57. We note there is already a DFARS interim rule (72 FR 20758) on excessive pass-through charges which is not applicable to commercial contracts. Did DSCP obtain a DFAR deviation to include the clause in this solicitation? When can we get a copy o this document?

Ans. The question can not be answered because there are no references to excessive pass-through charges in this solicitation.

60. Pg 38, (b). How were the Early Payment criteria determined?

Ans.: Early payment criteria are based on the Government’s knowledge of best commercial practices.

61. Is it now a requirement that Early Payment criteria be added to all government contracts? Is this a standard industry practice? Why are they being limited?

Ans.: The rebates/discounts and price-related provisions contained in this solicitation serve to clarify up-front price reduction requirements. They may or may not be used in other government contracts.

62. How did DSCP arrive at the determination of 2 percent as the maximum Early Payment Discount and why wasn’t this language part of previous solicitations? Is this a new requirement or standard and if so how many vendors have this language in their contracts today?

Ans.: See paragraph 6, sub-paragraph 60. Questions pertaining to other Government solicitations and contracts are beyond the scope of this amendment.

63. Pg 38, (a) & Pg 96, E. How can rebates and discounts be accurately passed on through the customer catalog when updates are only conducted every two weeks?

Ans.: In accordance with the present solicitation language, price redeterminations or catalog updates are limited to every 30 days. The reduced catalog prices shall be applied when the product is received into inventory and the next catalog update is scheduled.

64. 2-10 Net 30 payments may or may not work in CONUS but OCONUS is totally different. CONUS prime vendor can order today and receive the product within a week, perform inspection upon receipt and refuse visible product problems. They can later find hidden damage or have the product returned. In some instance, the product is sold before the 30 day period occurs and the payment is made. OCONUS is totally different: Product is ordered and picked-up or implemented through DDC the next week. The transportation company does not inspect, check the product for count, shelf life, condition, or quality, Berry Amendment or other required variables. The shipper is not hired or responsible to the manufacturer or the prime vendor. The product can be abused in the van, the temperature can be jeopardized the product can be and sometime is stolen – who pays? The product may not arrive at the prime vendor’s location 4 to 12 weeks later. The prime vendor receives the van whereby there can be 1,000 cases ordered 980 delivered, the whole van temperature damaged or in the case of a van load stolen; i.e., $1,000,000 of lobster was gone. The prime vendor cannot refuse unacceptable or short shelf life product, can’t short pay the carrier for negligence, etc.

and is supposed to pay for the product within 10 days of shipment and we don’t receive it for 4 to 12 weeks. It is then warehoused and held in stock, waiting for an order and then upon delivery receipted so we can wait for payment. This means hundreds and millions of dollars expended without a guarantee of sales. How do we negotiate with our manufacturers for samples, damages, shorts, allowances, etc. even if it does not raise the published prices?

Ans.: The prime vendor contractor must enter into an agreement with the USC carriers that handle routes with the prime vendor’s geographical responsibility to develop a claims process involving the prime vendor contractor and the USC contractor(s). Such agreement shall address issues such as claims resolution for losses and damage to prime vendor cargo. The government is not responsible or liable for any loss or damage to the prime vendor’s products shipped through the DTS. Any such losses or problems can be mitigated by establishing a good working relationship with the carriers, being familiar with the terms and conditions of the USTRANSCOM contract, and obtaining maritime insurance for the products shipped. There are no restrictions placed on negotiated payment terms between the prime vendor and the manufacturer. The solicitation language identifies Early Payment discounts that may be retained by the contractor and those that are required to be passed to the Government. Each offeror must negotiate its own agreement.

67. Reference is made to DSCP clause 52.231-9P03 – Rebates/Discounts and Price Related Provisions (page 37 of the draft RFP). Are the provision outlined in this clause that deal with rebates/discounts/service programs with manufacturers applicable to subcontractors/distributors (like Rastelli Global) the same way they are to Prime Vendors? If not, how do they differ?

Ans.: This question can not be definitively answered because the rebate/discount language contained in this solicitation significantly differs from the clause language identified in the draft.

68. P38/P39. DSCP 52.23 1-9P03 Rebates/Discounts and Price Related Provisions Items (a) thru (d). Many practical difficulties will occur from the provisions contained within this clause. For example: (b)(i). What definition of cost of money is to be applied? What if the cost of money exceeds 2% as detailed in (v)? (b)(ii). What if commercial practice is inconsistent with the terms of this provision? (b)(iii). What if the early payment discount offered to other commercial customers (other than the PV) is greater than that offered to the PV? There may be instances with brand specified items where no terms are offered due to lack of competition whereas terms would be offered to other commercial customers. (c). The requirement to provide information requested should be based on the PV Contractors ability to provide the data, i.e., when available. (d). Please define “contractor or sub-contractor” in relation to the supplier base? (d) How will the PV Contractor control potential “pass through charges” when a CONUS brand owner appoints a sole distributor? (d) Will a caveat be inserted that indemnifies the PV Contractor from liability for potential pass thru pricing on mandatory items and/or brand specified items and/or pricing agreements made direct with the agencies?

Ans.: The term "cost of money" has been eliminated from the rebates and discounts provisions. The conditions under which the contractor may retain early payment discounts are set forth in Section I of this amendment, and specifically, in the Rebates/Discounts and Price-Related Provisions paragraph (b) on page 86, as modified in Section I, paragraph 10.

166. Pg 65. 8. Why does the government not have any liability for loss or damages in transit as the government is specifying the transit method?

Ans.: DFARS 252.225.7040 (b) (2) and DFARS Deviation 2007-0-0010 (b)

(2) state that the contractor assumes the risk for the mission, including losses in transit.

168. Pg 67.3 Will ocean carriers be required to provide temperature reading reports from TMDs and from the actual reefer units? What will compel them to do so?

Ans.: See paragraph 93.

170. Page 58 Para H. ii - Please clarify if under this solicitation AVI inspections will be recognized by USTRANSCOM/SDDC and their contracted carriers for use in a potential claims process by the prime vendor for damaged PV product transported by the Government-contracted carriers?

Ans.: See paragraph 94.

171. Page 63 VI. Transportation - Please provide the performance history of DTS carriers shipping product into both Kuwait and Jordan. How many containers have arrived in conformance and how many have arrived compromised? What is the claims history regarding the compromised container arrivals? What is the dollar amount of product loss and the dollar amount reclaimed from the DTS carriers?

Ans.: DTS performance is estimated as follows (83% Zone 1/17% Zone 2):

Containers sent uncompromised - Avg 15,300 - 18,000 per year Containers sent compromised - less than 10 per year Dollar amount of product loss - less than $500,000 per year The amount re-claimed from the DTS carrier is proprietary to the prime vendor.

172. Page 64 Para 7 - Please clarify the detention charges for which the Prime Vendor is responsible? Is this referring to CONUS or OCONUS?

Ans.: See paragraph 95.

173. Page 65 Para 8. and Page 66 Para B. - Please clarify the liability situation when the government carrier does not delivery holiday or special order items in accordance with given transportation planning guidelines. Will the government be liable for airlift costs if air is necessary to meet the RDD?

Ans.: Airlift and liability decisions are made on a case by case basis. The prime vendor is required to order holiday or special order items well in advance to ensure timely delivery. The potential for delays to occur in transport must be reasonably considered.

181. Pg 69.D. The solicitation requires communication devices for all drivers, but these are not allowed within Iraq. Please clarify.

Ans.: Presently in Iraq, driver communication devices are prohibited.

184. What anti-tampering measures are the vendors expected to take?

What happens if there is only one or two approved vendors for a particular item – how can competition be assured and what anti-tampering measures should be taken?

Ans. If there are only one or two approved vendors for a particular item, then competition is limited to those vendors. It is incumbent upon each offeror to describe the actions that will be taken to secure product that will be delivered to customers under this contract. General security guidance is provided on page 67 of the solicitation.

191. The frequency of the manual billing appears to result in the Contractor being unable to invoice when a service has been provided. How quickly will DSCP authorize payment of manual invoices?

Ans. Bi-weekly or monthly. See Section I above, paragraph 6.

194. Pg. 78.7 What constitutes a successful mission for SLs? By when can we have a copy of these criteria?

Ans. See…