STORE FRONT SOW-GFM.DOC

Korea Initiative

24 February 2012 Draft

PERFORMANCE WORK STATEMENT FOR DPW INDUSTRIAL STORE OPERATIONS

1. INTRODUCTION

The DLA Troop Support Pacific requires a contractor operated warehouse to own, sell, inventory, and manage a wide range of Public Works Department (PWD) materials. The PWD materials will be used for base support and service. The primary purpose of the warehouse is to meet the same-day needs of Government customers.

The warehouse, itself, is not a mandatory source of supply for government representatives. However, the Government customer may, at its discretion, mandates the warehouse as the source for products.

Under the terms of this contract, the Contractor is not an agent of the United States Government and shall not in any way represent that it is an agent of the Government. It shall not obligate the United States Government or DLA Troop Support Pacific in any way.

2. SCOPE OF WORK

The contractor shall provide MRO industrial goods in support of the Directorate of Public Works (DPW) by operating up to four (4) warehouses, located at Camp Humphreys, Camp Casey, Camp Carroll and possible Kunsan Air Base (Attachment 1), carrying an inventory of common, demand supported items. Commodities carried in the DPW Industrial Stores include materials for the maintenance, repair and construction of facilities, utilities, base infrastructure, vehicles, material handling equipment and special purpose equipment. Materials in inventory shall be issued directly to walk-in customers and usage documented against a valid maintenance work order provided by the customer. The contractor shall be operated out of existing Government owned facilities or a leased facility. Operating hours for the contractor shall be from 0730 to 1600 Monday through Friday excluding Federal and Korean holidays.

The Contractor shall furnish all labor, supplies, equipment, management, supervision and reports necessary to maintain an adequate supply of all agreed upon parts, materials, and equipment needed to accomplish the needs of DPW, Korea. Inventory purchased under this scope of work may be used for facility maintenance and repair of real property, utilities, industrial equipment, and other uses as the Government sees fit. The government may procure supplies, parts, and equipment from other sources (besides the storefront operation).

The Contractor may also be required to supply specialty items for specialty equipment such as tools, shop equipment, lawn and garden equipment, and parts. The Contractor must also insure a distribution and delivery system in place in accordance with contract requirements.

3. CONTRACTING OFFICER’S REPRESENTATIVE (COR)

The oversight of the Contractor’s daily performance will be through a primary COR. The Contractor shall be responsible for notifying the COR of any work or situation to be performed in a functional area under his/her control that would tend to disrupt the conduct of normal Government business or the normal operation of equipment or systems. The Contractor shall notify the COR at least two working days in advance of such work. Notification of such work shall include the type of work to be done and the estimated completion date. The Contractor shall reschedule any work that the COR deems necessary to avoid unnecessary disruption’s in the Government’s business.

4.0

APPLICABLE STANDARDS

4.1

Government Security Regulations

4.1.1 All representatives of the contractor and any personnel employed by the contractor entering the Government installation shall abide by all Security Regulations of the installation that exist or will come into existence, and shall be subject to such inspections as may be deemed necessary. The contractor shall operate in strict conformance with all Department of the Army safety regulations/directives, Army safety regulations/directives, the Occupational Safety and Health Act (OSHA), and applicable provisions of Title 29 Code of Federal Regulations (CFR) Part 1910, Occupational Safety and Health Standards.

4.1.2 The contractor shall obtain and maintain all access badges and vehicle registrations required to operate on USFK Military Installations serviced by US Army DPW. The Government may require the contractor employees to complete satisfactory police record checks. When in its judgment, a contractor employee or worker represents a security or safety risk, the Government may deny such employee or worker access to the work site. The exclusion of an employee for any reason shall not relieve the contractor from performance of the services required under this PWS. The Contractor shall not be entitled to any cost adjustment or claim for any amount as a result of the exclusion of any employee from the work site under this paragraph.

4.1.3 The contractor shall not allow any employee who has possession of or who is under the influence of alcohol, drugs, or any other impairing substances to perform work under this contract. By acceptance of this PWS, the contractor shall comply with all applicable Federal statutes, laws, and regulations to implement a Drug Free Workplace Program as specified in FAR 52.223-6.

4.1.4. On-site Supervisor. The Contractor shall provide a qualified on-site supervisor. A supervisory presence shall be on-site any time the contractor warehouse is open for business. Supervision is critical to the performance of this contract. The on-site supervision shall be an individual of unquestionable integrity who displays a mature attitude with good judgment and has the independent authority to take immediate actions to resolve situations requiring immediate attention. The on-site supervisor shall be designated in writing to the COR and shall maintain frequent liaison with the COR to provide information and ensure that all potential issues are quickly identified and resolved.

4.1.5 Health and Safety. The Contractor shall be fully responsible for and assumes all liability for compliance with all applicable regulations pertaining to the health and safety of personnel during execution of work, and shall hold the Government harmless for any action on its part or that of its employees or subcontractors, which results in illness, injury, or death. All rules of safety which are or may be imposed upon the Contractor by federal, state or municipal code, and the applicable installation regulations shall be effectively carried out in the performance of this contract. All areas shall be maintained by good housekeeping and safety practices.

4.1.6 DPW will be responsible for disposal of all goods and materials containing hazardous substances. The contractor and its subcontractors assume no responsibility or liability whatsoever as a generator, arranger, transporter, or disposer of hazardous and/or nonhazardous waste, and the contractor and its subcontractors are not responsible for making the waste classification decision, and will not sign the manifest for hazardous and/or nonhazardous waste.

4.2 Insurance

4.2.1 The contractor shall obtain and maintain Comprehensive General Liability and Automobile Public Liability Insurance covering owned, non-owned, and hired automobiles, trucks, and other equipment used in the operation of the DPW Industrial Stores.

4.2.2 The contractor shall obtain and maintain Property Insurance covering damage and/or loss of Contractor property located in Government furnished facilities.

4.3 Compliance Requirements 4.3.1 Unless promptly corrected upon written notice from appropriate Government officials, noncompliance with or violation of the above policies, rules and regulations will be grounds for termination of the work requirement identified by this PWS to allow the work to be performed by another provider.

5.0

GOVERNMENT FURNISHED SERVICES AND PROPERTY

5.1

Government Furnished Services

5.1.1 The Government will provide telephone service for official use only through the Government installed and maintained system. Use of the telephone system shall be limited to the shortest time needed to conduct necessary business. The contractor will install, maintain, and remove contractor-furnished telephones. The Government will not provide telephone, data and fax services used in support of project overhead or corporate business. The contractor shall obtain prior Government approval in writing before connecting or disconnecting any Contractor-Furnished Equipment to Government-Furnished communications systems, lines, or equipment.

5.1.2 The Government will furnish electricity, water, and sewage as currently configured in the GFF. Utilities shall only be utilized for performance of work under this PWS. The contractor shall not change or modify any utility system or component without prior written approval. The contractor personnel shall take all actions necessary to ensure proper conservation of utilities.

5.1.3 The Government will provide DoD, ARMY and DPW unique forms, publications, and policy documents as required (e.g. emergency evacuation, key control, environmental response, health and safety).

5.1.4 The Government will provide structural repair of facilities (e.g. leaking roof, all water/electrical connections going into and out of the building) less those damages are caused by the Contractor.

5.2. INVENTORY.

5.2.1 An initial walk through and agreed upon initial inventory will be conducted during contract start up. The Government will provide business information (Common Use Lists and Insurance Item Lists) for use by the Contractor in determining the initial contractor warehouse inventory. It will also prescribe a list of commonly used products and a list of insurance items that should always be in-stock. For example, commonly used items list may include tiles, light bulbs, nails, ply-wood, etc. For example, insurance items are less commonly used, but have to be in-stock in case of emergencies, etc and may include water/sewer valves, electrical transformers, runway lights, etc.

6.0

SUPPLY AND OPERATION REQUIREMENTS

6.1

Contractor Furnished Property and Services

6.1.1 Except as otherwise provided herein as Government-furnished (Attachment 2), the contractor shall provide all supplies, labor, supervisory personnel, equipment, vehicles and transportation necessary to accomplish performance of this PWS. Communications equipment and services required by the contractor for performance, such as copiers, facsimile machines, telephones, commercial teletype, radio, radiophone, etc., shall be at contractor's own expense. Except for loss or damage duly determined to be the result of negligence or misconduct on the part of a Government employee(s), the Government will not be liable for any such loss of or damage to, the Contractor's property.

6.1.2 The contractor shall provide all employee personal safety equipment (i.e. safety shore, safety glasses, etc.) required in performance of this contract. The Contractor shall provide all common office and DPW Industrial Store janitorial supplies utilized by their employees in performance of the requirements of this PWS.

6.1.3 Postage. The Contractor shall be responsible for the cost of its own postage usage.

6.1.4 Janitorial/Custodial Services. The Contractor shall be allowed to use the services provided by the Government for warehouse cleaning and trash removal (including dumpster service).

6.1.5 All computer / software / phone / fax items must be contractor provided.

6.1.6 The Contractor shall NOT provide services to any other Federal agency(s), and/or Contractor(s) from the storefront.

6.1.6 Indemnification of the Government. The Contractor shall indemnify the Government and hold it harmless against claims for injury to persons or damage to property to the Contractor or others arising from the Contractor’s negligence or willful misconduct while in possession or use of the facilities. Notwithstanding any provisions contained in this Agreement to the contrary, in no event will Contractor be liable for special or consequential damages.

6.2

Store Supplies

6.2.1 The contractor shall procure, store, and vend materials for the maintenance, repair and operation of facilities, utilities, base infrastructure, vehicles, material handling equipment and special purpose equipment.

6.2.2 Warranties and Returns: At the time of delivery, all supplies furnished under this PWS will be free from defects in materials and workmanship and shall be subject to the manufacturer’s or supplier’s standard commercial warranty. If DPW receives an item that is non-conforming it will have up to three (3) days after receipt to return and exchange the item for one that is conforming. No returns of conforming items will be accepted. Products containing hazardous materials cannot be returned if their containers have been opened.

6.2.3 The contractor shall establish store stock levels with a goal of meeting continuous on-the-shelf supply of regularly demanded items and shall establish such store stock levels within ninety (90) days from the effective date of the contract implementing this PWS.

6.2.4 Leftover Contractor-furnished Inventory: Upon, or at any time prior to termination or expiration of this work statement or the contract, DPW may elect to purchase any or all of the contractor's store stock by giving the Contractor written notice of its intent no later than 30 days prior to the end of the contract period. To record this sale, the Contractor will prepare one or more sales slips in accordance with normal DPW Industrial Store sales procedures covering the items purchased or in accordance with other procedures agreed to between DSCP and the contractor.

6.3

DPW Industrial Store Operations

6.3.1 Hours of Operation: Except for Federal and Korean holidays, the normal hours of operation for the contractor-operated DPW Industrial Store shall be 0730 through 1600 Hours Monday through Friday. The contractor shall be ready to conduct business at all times during normal business hours. The DSCP-MRO contracting officer or the DPW Contracting Officer’s Representative (COR) must approve any core operation hours and any work hour changes. The Contractor shall also open and operate the DPW Industrial Store during other than normal business hours during extraordinary times, such as during a period of alert, unusual weather conditions or aftermath, and other emergency conditions as may be determined by the DPW. In such instances, the Contractor will be entitled to an equitable adjustment under the contract.

6.3.2 Contractor Personnel:

6.3.2.1 The Contractor shall assign sufficient personnel to the DPW Industrial Store to ensure that authorized artisans are accommodated when they require supplies. The Contractor shall employ only persons able to fluently speak, read, and understand English.

6.3.2.2 The Contractor shall provide one lead employee who can represent the Contractor for performance and cost issues. The lead employee shall be available either in person or via electronic communication during all duty hours.

6.3.2.3 Contractor employees shall be trained, qualified, or licensed as required. The Contractor shall maintain its work force in such a manner as to ensure the employees remain fully qualified. No Government personnel, either military or civilian, may be employed by contractor to perform any of the work under this Contract.

6.3.2.4 The Contractor shall require employees to present a neat and clean appearance that will equate with the generally accepted standard for the commercial wholesale trade in the Korea area.

6.3.3 Material Order Fulfillment:

6.3.3.1 Each order for supplies by DPW authorized customers will constitute a delivery order and will be processed in accordance with the contract and the procedures detailed below. Both the contractor and DPW will maintain appropriate documents to record the supply transactions. A list of personnel authorized as ordering agents in the MRO Program is provided as an attachment to this agreement. No cash sales will be allowed.

6.3.3.2 The contractor will use its order and materials management system for all material orders. DPW will provide a list of approved users and the level of authority they need to access the system. The contractor will provide a walk-up counter for end users. The contractor on-site DPW Industrial Store personnel are designated as “Releasers”, i.e., they can create an order and release it for delivery order processing under the contract. DPW will provide the contractor a list of authorized users, if required by DPW. Only those personnel will be able to place a request for material order fulfillment.

6.3.3.3 Walk up orders will be picked (if applicable) by DPW customers assisted by the contractor, and double checked at check-out counter for accuracy. Once an order is released, a receipt is generated. The contractor will issue the customer a copy of the receipt and a signed copy will be filed by the contractor for record retention purposes. The contractor will offer DPW a Quick Pick process.

6.3.3.4 For faxed-in orders, DPW customers will submit a bill of materials containing the contractor part number, description, quantity, date of pickup (minimum 24 hour turn-around time), and Hazmat Authorized Personnel (for orders containing hazardous materials). The contractor will pull the material and have the order ready for pick up by DPW’s customer.

6.3.3.5 Spot Buys: Spot buys will be necessary to supply items DPW requires that are not regularly kept in stock at the DPW Industrial Stores. The contractor will staff a purchasing agent onsite to process spot buy requests. The contract requires purchases to be made between competing sub-vendors on a best value basis. Although price is typically the most important determinant of best value, DPW may provide a written justification to make delivery time or other factors more important than price. In accordance with the terms of the contract, DLA Troop Support Pacific may be required to review and approve spot buys prior to vendor purchase order placement.

6.3.4 Demand Planning and Inventory Management:

6.3.4.1 The contractor will track DPW Industrial Store demand during the period of performance of this PWS and use demand planning/forecasting software or similar forecasting tool to identify appropriate stocking levels, reorder quantities and frequencies.

6.3.4.2 The contractor will inspect received/ inventoried store supplies for correct marking, count, condition, and documentation and enter receipt data into its materials management and order processing system, including part numbers, quantities, nomenclature, specific program designators, unit of issue data, supplier contact information, and special material handling requirements.

6.3.5 Reporting and Metrics:

6.3.5.1 The contractor will provide training and access for DPW customers as requested to obtain information on orders placed and order status, contract funding balances, payment status, and inventory levels. The contractor will provide training to managers on how to generate these reports as requested. On a monthly basis, the contractor will provide DPW a key metrics report via email. This report will list following:

· Number of contractor-owned DPW Industrial Store Line Items

· Number of DPW Industrial Store Transactions Issued

· Dollar Value of DPW Industrial Store Transactions Issued

· Number and % of stock outs on stock items (requests made that were unfulfilled)

6.4

Store Use

6.4.1 Access to the DPW Industrial Store: The, Material Support Specialists, Procurement Analyst, Program Analysts, and DSCP MRO Program personnel will have access to the DPW Industrial Stores during scheduled operating hours to conduct inspections, make periodic stock checks, and for any other business purpose. Other Government personnel shall have access when authorized in writing by DPW, DSCP, and the Contractor.

6.4.2 Liability for Damage or Alteration: Upon delivery of the Government furnished facilities to the Contractor, the contractor assumes responsibility for loss and/or damage to such facilities and property, reasonable wear and tear excluded, arising out of the negligence or willful misconduct of contractor’s representatives or employees. The contractor shall not make any structural changes or permanent modifications to any Government furnished building, or part thereof, without the prior written approval of the DPW Staff Engineer. If the contractor makes structural changes, or other alterations to the Government furnished building, or part thereof, without the prior written approval of the DPW Staff Engineer, at its option, the Government may require the Contractor to restore the premises to its original condition at the Contractor's own expense, the Government may restore the premises at the expense of the Contractor, or the Government may elect to retain all alterations or changes as Government property at no charge to the Government.

6.4.3 Housekeeping: The contractor shall maintain the Government-furnished areas in a clean, orderly and safe condition. Maintenance shall include, but not be limited to, sweeping, mopping, dusting, disposing of waste materials and trash, and any other procedure or process necessary for the maintenance of a neat appearance at the DPW Industrial Stores and safe conditions in the warehouse areas. All waste materials and other trash shall be removed at least once daily and placed in contractor provided containers. Office, lunchroom and rest room areas will be maintained by the DPW janitorial service.

6.4.4 Vacating Government-Furnished Facilities:

6.4.4.1 Upon termination or expiration of the period of performance of this Contract, the Contractor shall remove all remaining inventory and completely vacate the facility no later than the close of business on the seventh (7t') working day following the last day for performance, unless a longer period is permitted in writing by DPW. The total cost of such removal shall be borne by the Contractor; the Government assumes no liability for cost of removal of such inventory.

6.4.4.2 Prior to expiration or termination of services under this Contract, the Contractor shall offer the successor contractor any on-hand demand based inventory for direct purchase by the successor. If the successor contractor elects not to purchase this inventory by no later than 30 days prior to the expiration date or effective date of termination of the services, the Government will have the option to purchase this inventory from the contractor at the contractor’s purchase cost, with applicable freight, and issue the inventory to the successor as Government-Furnished Property.

6.4.4.4 The premises shall be returned to the Government in "broom clean" condition with all trash having been removed.

6.5 Use of Government Facilities - The Contractor shall comply with the requirements of the Government Furnished Property clauses of the contract.

PERFORMANCE REQUIREMENTS SUMMARY

Item

PWS Para #

Standard Enforcement

1. Material free from defects

6.2.2

100%

Customer Complaints

2. Maintain stock levels

6.2.3

90%

Monthly Report

3. Key Metrics Report

6.3.5.1

Monthly E-mail

4. Fax Orders

6.3.3.4

Customer Complaints For Official Use Only (FOUO) Page 1 of 6 Business Sensitive