2019.10.24_Draft_PWS.doc

PERFORMANCE WORK STATEMENT

FOR

DEDICATED FUEL BARGE IN GULF REGION

Prepared by

UNITED STATES TRANSPORTATION COMMAND

DIRECTORATE OF ACQUISITION

AND

DEFENSE LOGISTICS AGENCY ENERGY (DLA ENERGY)

DLA ENERGY AMERICAS EAST (DLA ENERGY AME)

Table of Contents

Table 1. Fuel Loading Discharge Ports……………………………..…6

3.3.1.

3.3.2.

Performance Objective - Pre-Service Inspection……………………….14 Suitability to Load/Discharge…………………………………………..15

Table 2. Performance Objective - Continuous Service………………..17

Table 3. Sample Calculation - Excess Re-Procurement Costs………...18

Cleaning to Prevent Contamination or Degradation of Cargo..……….20

Daily Equipment Position and Status Reports………………………...20

5.3.

5.4.

5.5

5.5.1.

5.5.2.

6.

6.1.

6.1.1.

6.1.2.

6.2.

6.3.

Bunker Fuel Expenses…………………………………………………22 Optional On-Call Additional Tankerman Expenses…………………..22 Deliverables…………………………………………………………...22 Inspection………………………………………….…………………..23 Final Acceptance……………………………………………………

CYBERSECURITY…………………………………………………..24

General Cyber Security Requirements………………………………..24 Handling and Protection of Non-Public Information…………………24 Operationally Critical Support………………………………………..24 Cyber Security Assessments and Mitigation Plans…………………...24 Cyber Incident Reporting……………………………………………..25 Table 4 Modified NIST SP 800-171 Requirements…………………..26 NIST Plan of Action Template ...……………………………………..28

APPENDIX A: DEFINITIONS……………………………………….34

APPENDIX B: SERVICE DELIVERY SUMMARY (SDS)……………………………………………………………………..36

TABLE 5. PERFORMANCE REQUIREMENTS SUMMARY…….36

APPENDIX C: MINIMUM REQUIREMENTS FOR THE PREPARATION OF BARGE CARGO TANKS……………………..38

APPENDIX D: APPLICABLE FORMS………………………………39

APPENDIX E: MINIMUM SECURITY CONTROLS………………40

APPENDIX F: HISTORICAL WORKLOAD………………………..41

APPENDIX G: PIER RESTRICTIONS………………………………42

DEDICATED BARGE TRANSPORTATION SERVICES - EAST GULF

DEFENSE LOGISTICS AGENCY ENERGY (DLA ENERGY)

DLA ENERGY AMERICAS EAST DLA ENERGYAME)

PERFORMANCE WORK STATEMENT (PWS)

1. General.

1.1. Scope. This contract covers the transportation of Department of Defense (DOD)-owned bulk jet fuel JP5 and JAA by tug and barge between all ordered United States ports and points on the Gulf of Mexico and the Lower Mississippi River and their connecting waterways and tributaries, including the locations specified below. The contractor shall provide barge transportation using contractor-supplied equipment as specified herein.

1.1.1. Historical Location Information. The Defense Logistics Agency Energy Americas East Office, Houston (DLA Energy AME) Loading/Discharging (Receiving) locations are provided as historical information. However, this list is not all-inclusive. Below list does not represent all Loading/Discharging points and may change as fuel procurement award patterns change.

Table 1. Fuel Loading/Discharge Ports JAA Loading Ports

Exxon/Mobil Company, USA, Baton Rouge, LA

Valero, Texas City, TX

Placid Refining, Port Allen, LA

Goldline, Jennings, LA

BP, Texas City, TX

Shell, Saraland, AL Shell, Deer Park, TX Magellan Midstream Partners LP, Galena Park, TX

Valero, Corpus Christi, TX

Air BP, Texas City, TX

JAA Discharge Ports

Naval Air Station, Belle Chase (New Orleans), LA

Eglin Air Force Base, Fort Walton Beach, FL

Hurlburt Field, Fort Walton Beach, FL

Tyndall Air Force Base, Panama City, FL

Naval Air Station Pensacola, Pensacola, FL

Magellan Midstream Partners LP, Galena Park, TX

JP5 Loading Ports

Placid Refining, Port Allen, LA

Shell, Deer Park, TX

Magellan Midstream Partners LP, Galena Park, TX

Valero, Corpus Christi, TX

JP5 Discharge Ports

Magellan Midstream Partners LP, Galena Park, TX

1.1.2. Government Reserved Rights. The Government reserves the right to use the contractor furnished equipment from, to, and between the points shown above without restriction.

1.1.3. Hours of Operation. Contractor supplied equipment and crews must be available exclusively to the Government at all times, 24 hours per day, 7 days per week, for transporting cargo to and between the points stipulated or as may be directed by the Government, or to stand by at an origin, destination, or intermediate point as necessary and specified by the Government.

1.1.4. Period of Performance

The proposed contract is for a one base period of 9 months from contract award, with four (4) options years as noted below:

Base Period: 1 January 2016 - 30 September 2016 Option Yr 1: 1 October 2016 - 30 September 2017 Option Yr 2: 1 October 2017 - 30 September 2018 Option Yr 3: 1 October 2018 - 30 September 2019 Option Yr 4: 1 October 2019 - 30 September 2020

1.2. Safety and Security.

1.2.1. OSHA Compliance.

The Contractor shall establish and maintain an effective and comprehensive safety program that complies with the provisions of the Occupational Safety and Health Act and the National Institute of Occupational Safety and Health. The Contractor shall acquire, maintain, and require the use of safety equipment, personal protective equipment, and devices necessary to protect employees. The Contractor shall be responsible for compliance with the Occupational Safety and Health Act of 1970 and for penalties resulting from violations.

1.2.2. Additional Regulations Compliance.

The Contractor shall maintain and operate all equipment in accordance with applicable U.S. Coast Guard (USCG), federal and state laws, and military regulations, including applicable regulations of the Commander, Defense Logistics Agency Energy (DLA-Energy), and shall also be in compliance with all of our fuel supply terminal requirements for barge tows. All contractors shall comply with the provisions of the Jones Act. Compliance with the following regulation is mandatory:

DOD 4500.9-R, Defense Traffic Transportation Regulation (DTR) Part II, May 2014 Note: DOD 4500.9-R can be accessed through the following web site, www.transcom.mil. Follow the link to Defense Transportation Regulations. If you have any questions or need assistance in obtaining access to the link, contact DLA-Energy/FENBA at (703)767-9298.

1.2.3. Death or Injury to Personnel.

In all instances where contractor’s employees are absent due to injury or death or for purposes of receiving medical attention due to an injury during or arising from performance under this contract, the Contractor shall submit a full written report of the facts and the extent of such injury to the Contracting Officer's Representative (COR) within 24 hours following the occurrence of such injury or death. In addition, the Contractor shall submit to the COR a written accident report of each and every accident occurring to the contractor’s employees within 24 hours after the occurrence. If an investigation of the accident is conducted, the Contractor shall assist the investigator in securing statements from its employees and must make pertinent records available to the investigator and to the COR.

1.3. Damage and Loss Reports.

During operation under this contract, in all instances where cargo, Contractor’s equipment, or private or Government property is damaged, lost, or pilfered while in the care, custody, or possession of the Contractor or through handling by the Contractor’s employees, agents, or subcontractors, the Contractor shall submit a full written report of the facts and the extent of such damage or loss to the Contracting Officer's Representative within 24 hours following the occurrence or discovery.

1.4. Quality and Performance.

The Government and the Contractor will operate as a team to assure a high standard of quality is established and maintained in the performance of the contract. This will include Government measurement and surveillance of the contractor’s performance to document and recognize instances of superior contractor performance, and to identify areas falling short of required performance standards early so that the Contractor and the Government may work together to identify causes and eliminate problems before they become serious. The Government’s Performance Measures and the Contractor’s Quality Control (QC) program requirements are described below.

1.4.1. Contractor Quality Control, Reporting and Records

1.4.1.1. Quality Control Plan.

The Contractor shall establish and maintain a Quality Control Plan (QCP) to ensure quality service is provided throughout the terms of the contract. The Contractor shall submit an acceptable QCP prior to contract start date. The QCP shall be reviewed and updated when deemed necessary by the Contractor or the Government, to include changes necessary to prevent the recurrence of quality problems. The Contractor must sign and date the original QCP, as well as each subsequent revision. Revisions shall also be presented to the Quality Assurance Representative (QAR) for review and acceptance prior to implementation. When acceptable to the Government, the original QCP, and any revisions, shall be signed and dated by the QAR. The QCP should include as a minimum how the Contractor intends to meet the performance objectives, provide cargo free of contamination or degradation, and should also identify those areas the Contractor sees as critical to the customers for this contract, how it will monitor quality performance in those areas, and how it will maintain or exceed customer expectations, including identification and correction of problems. The contractor should also include a copy of the official U.S. Coast Guard (USCG) Oil Spill Response Plan Letter of Certification in lieu of the original Oil Spill Response Plan. However, upon request by the Government, the contractor must provide a copy of the original Oil Spill Response Plan.

Deliverable: QCP

1.4.1.2. Problem/Failure.

The Contractor shall self-identify any problem or failure that may impact contract performance.

In accordance with its QCP, the contractor should notify the COR/ DLA Energy AME immediately of the problem, but follow-up in writing within two (2) business days to the COR/ DLA Energy AME a succinct written plan of action of Contractor self-identification or awareness of a potential or real problem, failure or deficiency. The Contractor shall detail the methodology for correcting the problem or deficiency in the plan of action, and provide an assurance of the specific time required to bring performance back to acceptable quality levels, as applicable.

1.4.1.3. Use of Quality Performance Information. Information from these reports will be compiled cumulatively to provide annual reports of past performance for use in past performance evaluations.

1.4.2. Government Quality Assurance.

Final determination that the services rendered are conforming is solely the responsibility of the Government. The Government Quality Surveillance Plan is not a substitute for Contractor quality control.

1.4.2.1. Critical Performance Requirements.

The Government will monitor the Contractor’s performance using predetermined quality assurance procedures and through the Government Service Delivery Summary (SRS), Appendix B, which will be used in this program and which also describes the contract requirements considered most critical to performance.

1.4.2.2. Performance Measurement Approaches.

The CO and the COR will monitor Contractor performance and compliance with the terms and the conditions of the contract using the SDS and such standard techniques as inspections, Government generated management reports, Contractor reports and Customer feedback. The COR, in conjunction with the CO, will conduct periodic meetings with the Contractor to discuss operations, and problem areas.

1.4.2.3. Visits.

Government personnel, in addition to/other than the Contracting Officer Representative (COR) and Quality Assurance Representative (QAR), may make announced periodic visits to the Contractor's facilities to observe daily operations. Announced visits will follow a one (1) day prior notice to the Contractor. During these visits, the Contractor shall provide knowledgeable personnel to tour and inspect the areas. The Contracting Officer and/or his representative will make periodic inspections.

1.5. Insurance Requirements.

1.5.1. Cargo Insurance.

The Contractor shall provide cargo insurance, at its own expense, as required by law, at least equal to the value of the cargo transported.

1.5.2. Liability, Pollution and Environmental Insurance.

Contractor shall provide at its own expense, the appropriate amount of insurance as required by law.

1.5.3. Policy Notification.

The Contractor shall provide copies of cargo, public liability, and pollution liability insurance certificates to the Contracting Officer prior to contract award and each time there is a change in coverage or policy renewal. The Contractor shall furnish a written notice to the Contracting Officer 30 days in advance of the effective date of any reduction in, or cancellation of the cargo, public liability, or pollution liability insurance policies.

Deliverable: Insurance Policy Notification

2. Government Responsibilities.

2.1. COR / DLA Energy AME Supply Planner Responsibilities.

The COR and/or DLA Energy Supply Planner will perform the following:

2.1.1. Cargo Routing.

Issue cargo routing instructions to shippers.

2.1.2. Order Services.

Order all loading and unloading services and schedule all movements.

2.1.3. Contact Information.

Furnish the Contractor with the names and appropriate telephone numbers, of persons designated as the Government’s ordering, inspecting, and receiving representatives upon award of the contract.

2.1.4. Acknowledge Receipt.

Acknowledgement of receipt shall be completion of the DD-250-1, or iRAPT (WAFA) Energy Receiving Report (ERR) and barge ullage documentation consisting of location, date of arrival, barge name/number, and cargo number and shall provide for signature by both a Contractor representative and a designated Government representative. (See Appendix D)

2.1.5. Measure, Verify, and Document Cargo.

Arrange for measurement, verification, and documentation of all cargo remaining aboard barges at loading and unloading ports and, in accordance with Section 4.4.3 Carry Away Liability, deduct from the next monthly invoice, the value of cargo in excess of ten (10) barrels carried away per barge. Charges would apply only when barge equipment is changed or product carried changes.

2.1.6. Notify Receiving Activities.

The COR or DLA Energy Supply Planner will notify the receiving activities of the scheduled arrival of the barge, including estimated date and time of arrival, barge name/number, and cargo number. However, this action does not relieve the contractor of their responsibility to provide 24, 12, and 3 hour notification and to present a completed written copy of the Notice of Readiness (NOR) documentation to personnel at receiving activities.

2.1.7. Authorize Access.

Arrange for an authorized representative of the Contractor to have access to all facilities to load and discharge barges as necessary.

2.1.8. Supply Required Forms.

Supply the Contractor with all forms that the Contractor is required to file with the Defense Logistics Agency Energy Americas East, or the COR. (See Appendix D.)

2.1.9. Provide a Safe Berth.

Provide a reachable and safe berth at all loading and discharging ports for the vessel to be afloat at all times, free of dockage, wharfage, pilotage, toll, and port charges. Tows needing to remain at the pier, past loading or discharge will only be allowed with the coordinated request and agreement of the loading/discharge location and DLA Energy-AME COR/ Supply Planner.

2.1.10. Inspect and Accept Equipment.

The Government shall conduct pre-award and/or pre-service inspections for Contractor equipment.

3. Contractor Furnished Equipment and Crew.

The Contractor shall furnish all supplies, materials, equipment, and personnel necessary to perform the services incidental to the operation of the equipment listed below:

3.1. Barge and Tug Requirements.

Pricing of services does not include fuel in accordance with Paragraph 5.3, Bunker Fuel Reimbursement. The contractor shall provide the following:

3.1.1. Barge.

Two barge tows, each with a total calibrated capacity of 50,000 barrels. Each tow shall consist of either two individual 25,000 barrel barges, or not more than three barges total, one of which must have a capacity of at least 25,000 barrels. Barges shall not exceed a 25,000 barrel calibrated capacity (30,000 shell capacity) for either of the two or three barge tow configurations and shall not exceed a 50,000 barrel calibrated capacity in either configuration. Barges must be double hulled and be no older than twelve (12) years old at any time during the life of the contract. Contractor is required to comply with the maximum safe navigable draft, width and length overall for all loading and discharge locations.

Maximum loaded draft for all tows is not to exceed 9.6 feet. Upon contract award, the Government will specify the loading location(s) where the contractor is required to position the tows. The contractor is responsible for all costs associated with positioning the equipment at the initial loading point.

3.1.1.1. On-Call Tow.

These services will be ordered separately as priced within the Schedule of Supplies and Services. The Government will have the option to add additional tows or terminate existing on-call tows as traffic patterns change or as loading/discharging ports are added. The contractor shall provide for up to two (2) additional optional on-call tows when requested by the Government with a minimum of 15 days’ notice. On-call tows must be of the same capacity as those listed in paragraph 3.1.1. The equipment ordered will be in service on a month-by-month basis thereafter. The Government may terminate any on-call tow with a minimum of 15 days’ notice if that tow is no longer required. Barge and tug requirements shall be consistent within the parameters as provided in paragraph 3.1.1. The equipment shall meet all Government inspection requirements addressed in paragraph 3.3 and related sub-paragraphs and shall remain in dedicated/exclusive service until released back to the contractor. Dedicated service is defined as the start and end date of the requested service. Exclusive service is defined as all supplies, materials, equipment, and personnel necessary to perform the services addressed in this PWS as authorized by CO or COR. Payment will not commence until the tow is made available at the initial loading point, as specified in the contract modification, and will end on the last day of requested service upon cargo discharge at the destination point. Any subsequent changes to schedule details (e.g., date, loading port) required for expedience of the Government shall occur only upon modification of the contract by the Contracting Officer. Otherwise, the contractor is responsible for all costs associated with positioning the equipment at the initial loading point. Payment for the on-call services will be in accordance with the prices listed in the Schedule of Rates.

3.1.2. Barge Equipment.

The Contractor and its equipment must currently possess or be eligible for USCG certificate for approval to operate in US coastal and inland waterways. All barges shall be equipped with the following.

3.1.2.1. Cargo Pumping System.

A cargo pumping system with necessary hoses and connections capable of completely discharging and stripping the cargo tanks without outside power or assistance from the shore. The average load/discharge rate for all destinations shall be a minimum of 2,000 barrels per hour (BPH) at a pressure of 100 pounds per square inch (PSI) from the barge manifold including quantities stripped from cargo tanks. This effectively means that the total cargo shall be loaded/discharged as a minimum, in time represented by the total cargo stated in barrels divided by 2,000 barrels per hour.

3.1.2.2. Cargo Tank Stripping System.

An independent cargo tank stripping system capable of stripping all but a maximum of two barrels of product per cargo tank, not to exceed 10 barrels for the entire barge. The discharge rate during tank stripping operations may be less than the minimum rates stipulated above.

3.1.2.3. Water Stripping System.

An independent water stripping system, separate from the Cargo tank stripping system shall be available for removal of large amounts and/or residual water discovered on Vessel(s), prior to load/discharge of Cargo. All water and Cargo tank stripping and discharge lines shall be fully visible from the Deck.

In the event that a large amount of water is discovered on the barge, the contractor and Government QAR will investigate to determine the source and cause of the water. If the water source is determined to be from the shore tank, the Government will be responsible for the cost of removal. If the source is determined not to be the cause of the Government, such as intake of seawater, then the contractor shall assume removal costs.

3.1.2.4. Gauge Point Marks and Calibration.

Permanent gauge point marks with reference height stenciled to the deck or compartment hatch, certified calibration charts not exceeding eight years in age (provided that no structural alterations have been performed subsequent to the calibration date), trim correction tables and legible draft markings. Barges shall be recalibrated as needed at the Contractor’s expense during the contract period.

3.1.2.4.1. Calibration Charts.

The Contractor shall provide copies of the calibration charts and trim correction tables to the Government representative at loading and discharge points and to the COR. A packet containing all calibration charts and trim correction tables pertaining to all equipment used in the performance of this contract shall be available on each tug or barge. The Contractor shall provide the COR a list showing the maximum load capacity of each barge at safe draft, updated whenever equipment or regulation or traffic area depths change. The Contractor shall develop, maintain, for Government use or inspection upon request and make available on board hired equipment, a Vessel Experience Factor (VEF) comparing the history of shore quantity measurement figures against loading and discharging vessel quantity measurement figures. This VEF shall be used to correct the barge ullage form identified in paragraph 4.4.2. Anytime the physical structure of a barge is changed, due to damage or equipment modification, the barge shall be strapped again, and a new set of gauging charts provided at no cost to the Government.

Deliverable: Calibration Charts and Trim Correction Tables

3.1.2.5. Stainless Steel Tanks.

Barges offered for consideration that are constructed of either stainless steel, carbon steel that has been epoxy coated with a non-coal tar based grade of epoxy, or uncoated mild steel tanks are acceptable for performance consideration under the provisions of this contract.

3.1.2.6. Steel Valves.

Steel valves shall be an integral part of all barges used in the performance of this contract.

3.1.2.7 Spill Rails.

Spill rails are required on all barges.

3.1.2.8 Sectional Fuel Delivery Hose.

When required, the Contractor shall provide 200 feet of sectional fuel delivery hose and various coupling attachments necessary for over-the-water fuel loading to ships. The Contractor is liable for any damage or loss resulting from faulty equipment or caused by Contractor negligence.

3.1.3. Tug.

The tugs offered under this contract shall be suitable in design and power to properly navigate in the traffic areas designated herein. Tugs used shall be reliable, efficient to meet the delivery schedules, and shall have the necessary power to safely navigate the lower and upper Mississippi River, the Tombigbee and Arkansas Rivers, and the Gulf Intra-coastal Waterway.

3.2. Contractor Owned or Leased Equipment.

The Contractor shall own the equipment performing the transportation service or the Contractor shall have the equipment under long-term lease for the duration of the contract period to include the base year and all option years. The Government requires verification of this requirement at the time of contract award.

3.3. Barge Inspection and Acceptance.

At the start of this contract, the Contractor shall provide tug and barge equipment that conforms to the specifications of this contract (see paragraph 3.1 Barge and Tug Requirements and related subparagraphs), and that passes the Government’s loading inspection. Government inspection and acceptance of the Contractor’s equipment is a condition precedent to the Government’s obligation to pay the monthly rates set forth in the Schedule of Rates. The monthly rates do not go into effect, and the Government incurs no obligation to make monthly payments, until the Government’s Quality Assurance Representative (QAR) has approved the Contractor’s equipment for loading in accordance with paragraphs 3.3.1 Pre-Service Inspection, 3.3.2 Suitability to Load/Discharge, and 4.1.1 Temporary Patching/Repairs and the COR has placed an initial written acceptance and order of equipment with the Contractor.

3.3.1. Performance Objective - Pre-Service Inspection.

Not later than 15 days prior to the initiation of transportation services, the Contractor shall make its tugs and barges available for inspection and acceptance by the Government at the loading point , or other coordinated location, as specified by the COR. If the Contractor fails to provide conforming equipment by this deadline, the Contractor shall be subject to termination by the Contracting Officer under the Termination for Cause clause. Tows must be presented cleaned, gas free, and free of temporary patches. The Contractor shall provide a valid marine chemist certificate to the Government QAR prior to inspection. Contractor shall ensure that all cargo and vent lines have been drained of previous cargo, and prepared in accordance with Appendix C requirements to include being air dried. Furthermore, all cargo tanks and bulkheads shall be free of water, loose rust, sludge, mud, silt, and foreign objects. The Contractor shall take a sample of scale from inside of the cargo tanks and have it tested to determine the potential effects of the corrosion and gum characteristics on the cargo to be loaded. Contractor shall provide copies of the test results to both the COR and QAR prior to Government inspection. NOTE: Scale sample is Not required if the entire Cargo Tank(s) are epoxy coated and coating is free of blistering, bubbling, peeling, cracking, etc. The Contractor shall prepare the barge for inspection at its own expense. Acceptance of the equipment by the Government shall in no way be construed to attest to the seaworthiness of the barge or to other requirements of the U.S. Coast Guard. The Government's QAR shall issue written confirmation of acceptance of equipment through the COR. Once inspected, the tug and barge equipment will be considered to have entered into dedicated/exclusive service on this contract. This paragraph does not apply to barges carrying JP8 immediately before performance on this contract. However, use of such barges pursuant to this contract is subject to acceptance by the QAR.

Deliverable: Valid Marine Chemist Certificate

3.3.2. Suitability to load/discharge. Vessel owners/operators are responsible for providing vessels suitable to load and deliver the intended cargo and for determining the need-to-clean vessel cargo tanks. Vessels shall arrive at the required Port ready to load/discharge the intended cargo. At each load or discharge Port, Contractor shall certify that Vessel cargo tanks are suitable for loading or discharging the intended cargo by including the following statement in the Notice of Readiness (NOR): “All compartments, lines and pumps to be used are suitable for loading and delivering the intended cargo.” Contractor shall also provide the Quality Representative (QAR) with Cargo Tank(s) soundings of product / water onboard and validated onboard quantities (OBQ) prior to loading. Furthermore, on each Voyage, Contractor shall provide NOR documentation to Government Representative(s) at each loading and/or discharge Port.

3.4. Maintain, Position, and Operate Equipment

The Contractor shall maintain, clean (including slop tanks), repair, position and operate its equipment to ensure its performance under the contract, including providing fuel to operate the tug and barge pump engines and shall provide all crew living provisions. The Contractor shall pay all associated costs and expenses.

3.5. Provide a Licensed Tankerman.

The Contractor is responsible for following all governing regulations and statutes in providing a licensed tankerman at all loading and discharge points identified in the PWS or hereafter required by the Government. The licensed tankerman shall gauge barge tanks jointly with the Government QAR and make a record of quantities on required forms including Barge Ullage (DD Form 2479), or suitable commercial equivalent. As directed by the COR, the Contractor shall furnish an additional shore tankerman when needed. The optional on-call additional licensed tankerman expense will be paid in accordance with Paragraph 5.4.

4. Contractor Tasks and Duties.

4.1. Equipment Maintenance.

4.1.1. Temporary Patching/Repairs.

The Contractor may use temporary repairs only until the barge can return to a point where permanent repairs can be made. Barges shall not be accepted for loading if there is evidence of concrete patches or other temporary repairs. Furthermore, contractor shall notify the COR and QAR, by electronic mail of such repairs when load/discharge schedule, or transit times are affected.

4.1.2. Performance Objective – Continuous Service.

The Contractor shall provide 24-hour, seven-day a week availability of equipment and crew to the Government for exclusive use under this contract.

4.1.2.1. Scheduled/Required Maintenance.

Maintenance or repair periods shall not exceed 24 hours in duration, except when required for U.S. Coast Guard inspections or when mutually agreed between the Government and the Contractor (e.g. periodic maintenance). The Contractor shall provide notice of scheduled maintenance with expected duration of maintenance not less than 24 hours before the date it is scheduled.

Deliverable: Scheduled Maintenance Notification

4.1.2.2. Out-of-Service Notification.

The Contractor shall notify the COR immediately in the event that the Contractor is unable to provide service due to unscheduled non-availability of equipment or crew, and must include the location of the equipment, cargo status (loaded or empty), reason for being out-of-service, and the expected duration of disability (Temporary Out-of-Service or Long-Term Out-of-Service) in the notification.

Deliverable: Out of Service Notification

4.1.2.3. Long-Term Out-of-Service Notification.

In the event that the notification is for Long-Term Out-Of-Service, the Contractor shall provide a substitute for any or all of the equipment or crew designated for use under this contract within 24 hours (unless the Government elects to waive the continuous service requirement for a longer period) and shall specify details of the substitution in writing. The specification shall include reason for the request for the substitute equipment and if repair/maintenance action is required, provide in-depth description of repairs to be made, facility and location of repair action, and estimated date equipment shall be returned to use. If carry-away cargo is present in the barge, the Contractor must make cash settlement or other means of disposition satisfactory to the Government for this cargo before the barge is permitted departure from being used in the performance of this contract.

Deliverables: Long Term Out-of-Service Notification, Request for Substitute Approval, and Substitute Specification

Table 2. Performance Objective - Continuous Service.

Cumulative Days Out-Of Service

(Temporary) Not more than 10 annually

Response For Out-Of-Service

(Long Term)

Provision of Substitute within 24 hours.

No more than two Failures to Perform annually.

In no case no more than an additional 24 hours late with substitute, without COR approval.

4.1.2.4. Substitute Equipment.

When Contractor owned equipment is Out-of-Service Long-Term, the Contractor shall substitute owned or leased equipment. The COR and/or QAR must approve, in advance, the substitution of equipment, provided the substitute equipment is equivalent to the Contractor's original (permanent) equipment (i.e., meets the specifications and requirements in paragraph 3, Contractor Furnished Equipment And Crew). The Government reserves the right to inspect the substitute equipment prior to placement into service. The Contractor must prepare the substitute equipment for inspection as stipulated in paragraph 3.4, Maintain, Position, and Operate Equipment, when so required. The substitute equipment provided by the Contractor shall be at no additional cost to the Government. The original equipment must be returned to service as soon as practical unless otherwise requested by the Contractor and approved by the COR. Barge equipment substituted for the convenience of the Contractor is not entitled to cleaning expenses as a result of the substitution. The contractor shall include in the request for substitute approval the estimated fuel burn and transit times of the substitute equipment.

4.1.3. Failure to Perform.

Should the Contractor be unable to perform or choose not to provide substitute equipment or crews for all days beyond the first 24-hour period the Contractor’s equipment is out-of-service, the Government may take a pro rata deduction from the Contractor’s monthly invoice for each hour beyond the first 24-hour period. If the Government procures substitute equipment or crews from an alternate source to meet movement requirements the Contractor is unable to meet, the Government may take an additional deduction from the Contractor’s monthly invoice for the Government’s excess re-procurement costs, if any. Excess re-procurement costs will be assessed only for those days that the Contractor’s equipment remains out-of-service.

The sample Excess Re-procurement calculation, shown below in Table 3 uses the following information:

Contract rate: $10,000/day; $416.66/hour Table 3. Sample Calculation - Excess Re-Procurement Costs.

05 January

10:00 a.m.

06 January

10:00

06 January

11:00

08 January

08:00 Substitute equipment begins loading.

08 January

15:00 Contractor equipment submitted for inspection prior to return to service.

08 January

20:00 Contractor equipment returned to service.

(10:00 on 06 January through 20:00 on 08 January) $24,166.28

(*rate is calculated by subtracting the contract equipment rate from the substitute equipment rate, e.g. $833.33-$416.66) $2,916.69

4.2. Cargo Delivery Services.

4.3. Performance Objective - Loading or Discharging Cargo.

Upon arrival at a loading or discharge port, the Contractor shall load or discharge any quantity of cargo, entire or partial, as specified by the COR/Supply Planner.

4.4. Responsibility for Cargo.

4.4.1. Loss or Contamination Liability.

The Contractor shall sign the DD Form 250-1, Tanker/Barge Material Inspection and Receiving Report, or iRAPT Energy Receiving Report (ERR), as its receipt for the Government property it received for transportation. The Contractor assumes full liability for, and agrees to reimburse the Government for, the actual loss or contamination to the cargo it receives for transportation, except when loss and/or damage arises out of causes beyond the control of and without the fault or negligence of the Contractor.

The Contractor may also be held liable for loss of Government product in its’ possession during transportation and prior to discharge into Government facilities in excess of one-half (1/2) of one (1) per cent in volume when a comparison of shore tank gauges and vessel permanent gauge point marks and calibration charts after loading and before unloading establishes that a volume loss exceeding the one-half of one per cent has occurred in transit if investigation by the Government determines that the cause is due to negligence on the Contractor or their representatives. If so, these loss amounts will be used for claim purposes by the Government.

4.4.2. Gauging.

Gauging of the vessel is performed jointly. A Government Representative must witness gauging of the vessel. Contractor Representative (s) personnel are responsible to perform gauging of the vessel. Gauging equipment used for quantity determination must be in proper serviceable condition. The contractor shall ensure that responsible Contractor Representative(s) personnel are readily available for gauging operations so as to not unduly delay release and departure of the equipment. The contractor shall ensure that a Vessel ullage report is annotated/completed at both the loading and discharge locations. In cases where the Government Representative annotates/completes the report, the Contractor will verify and agree with gauge figures and readings annotated by signing the report.

4.4.3. Carry Away Liability.

The Contractor shall be liable for all measurable product carried away due to failure of the Contractor’s equipment to discharge the cargo completely, excluding product remaining in equipment lines, manifolds, and sumps (10 barrels before line drop). Liability is based on the procurement and transportation cost of the cargo carried away and is to be deducted from the Contractor’s monthly invoice. However, the Contractor is not liable for carry-away cargo if the Tanker/Barge Material Inspection and Receiving Report (DD Form 250-1)/iRAPT ERR and the Vessel Ullage Report establish that the cargo carried away remains on board when the same equipment is utilized for subsequent loading. Measurable cargo carried away at the end of the contract period shall be deducted from the Contractor’s final monthly invoice.

4.4.4. Contamination or Degradation Liability.

If contamination or degradation of Government cargo occurs due to the Contractor's failure to properly maintain its equipment, the Contractor shall be liable to the Government for replacement costs and/or associated costs with returning the cargo to specification.

4.4.4.1. Performance Objective – Cleaning To Prevent Contamination or Degradation of Cargo.

The Contractor shall ensure that all equipment is clean and free from any condition that would contaminate or degrade cargo. The Government will reimburse the Contractor for cleaning expenses only when the Contractor can demonstrate that the equipment was contaminated due to the fault of the Government, the cleaning is directed by the Government to change grades of cargo transported, or when directed by the Government to complete cleaning for routine maintenance. Cleaning reimbursement shall be paid as an out-of-pocket expense.

4.4.4.2. Minimum Requirements for the Preparation of Barge Tank Cargo Tanks.

In all cases, cargo tanks must be free of water, loose rust, sludge, mud, silt, ballast residue, etc. See Appendix C.

4.5. Reporting and Communication.

The Contractor shall maintain contact with the COR, the various consignors, consignees, and the Government Quality Surveillance Representative to ensure prompt and efficient cargo movement, and shall provide position and status reports and communication regularly to the COR and others, as required. The COR contact information will be provided prior to contract start date.

4.5.1. Performance Objective – Daily Equipment Position and Status Reports.

The Contractor shall transmit daily facsimile or electronic mail Equipment Position and Status Reports to the COR and applicable Inventory Managers reflecting the position and status of the barge by 0900, Central Time, plus or minus one hour. Additionally, the Contractor shall provide pre-arrival reports (to include NOR documentation) to the next port of call (Government representatives) immediately upon departure of the present port, and at a minimum of 24, 12, and 3 hours prior to arrival and NOR notice to load or discharge prior to arrival at any port complex..

4.5.2. Performance Objective - Readiness Notice.

The contractor shall provide a written Notice of Readiness (NOR) documentation to load/discharge to designated loading and discharging officials immediately upon the tow’s arrival at the loading/discharging terminal of the port complex. The following statement shall be included on all NOR documents as a minimum: “All compartments, lines and pumps to be used are suitable for loading and delivering the intended cargo.” In the event the tow is not allowed to immediately proceed to the loading/discharging berth, the Contractor shall communicate the NOR to the terminal by fax, email, or telephone to document its arrival. The NOR is the official method of determining when laytime for the tow begins. Faxing, emailing or telephone communications does NOT alleviate contractor’s responsibility/compliance to provide written NOR to officials upon arrival at any port complex.

4.5.3. Performance Objective - Cargo Documentation.

The contractor shall maintain a copy of all loading documents, DD Form 250-1/iRAPT ERR, including Vessel Ullage Report, or Acceptable commercial equivalent form, and Notice of Readiness Documentation for Government use at each discharge port. Failure of the contractor to present the listed forms to discharge port(s) personnel on more than two occasions annually will result in a performance failure.

4.6. Responsibility for Damage to Government Property.

4.6.1. Performance Objective - Damage Due to Contractor Negligence.

The Contractor shall be responsible and must assume liability for damage to Government property resulting from negligence on the part of the Contractor. The Contractor must also reimburse the Government for actual expenses incurred by the Government due to breakdown of Contractor’s equipment or delay due to negligence of the Contractor, which prevents prompt acceptance or delivery of intended cargo.

4.6.2. Performance Objective - Prevent Damage to Facilities.

The Contractor shall be responsible for removing equipment, including unattended barges, during weather conditions that may result in damage to Government or Contractor-owned facilities.

5. Reimbursable Expenses.

5.1. COR Approval.

All reimbursable expenses must be approved in advance by the COR. The Government will not be liable for any taxes, fees, tariffs, licenses or other costs or expenses associated with performance on this contract other than those specifically referenced herein.

5.2. Out-of-Pocket Expenses - Tolls and Charges.

The COR will provide a reachable safe berth for the contractor’s equipment that is currently in an on-hire status at all loading and discharging ports free of dockage, wharfage, pilotage, and fleeting tolls. Allowable charges include the Ship Inspection Report Program (SIRE). Other port charges not identified below shall require prior approval by the COR. If such charges accrue through no fault of the Contractor or its employees, the Contractor shall initially pay the charges and submit the paid bill to the Government for reimbursement in conjunction with its next regular monthly invoice. When fleeting or shift boats are required and there is more than one establishment in the area that can provide the service, the Contractor shall use the one which offers the best value to the Government. Best value includes not only price consideration but also: whether the fleeting is in closer proximity to the load port; availability of berthing space at the respective locations, accessibility to communally used routes to the load port, etc. The Contractor shall make diligent effort to safely avoid the need for fleeting wherever possible to limit costs to the Government.

Deliverable: Out of Pocket Expenses Documentation

5.2.1. Assist Tugs.

The Contractor shall be responsible for the expense of assist tugs used in transporting, berthing or maneuvering the vessel to/from docks or through locks except when such assist tugs are required by local harbor regulation or other lawful authority. The Government will reimburse the Contractor for use of assist tugs only under those conditions and on the same basis as described in Section 5.2. Tolls and Charges.

5.2.2. Icing Condition Expenses.

The contractor shall obtain approval in advance from the COR or CO before operating in icing conditions, which is defined as 3 inches or more. If a contractor operates in icing conditions, the Government shall pay the contractor an additional 50% of the pro-rated daily rate per barge for every day the contractor operates in icing conditions. Payment of the additional amount shall only be paid upon the contractor providing documentation by the United States Coast Guard of the icing conditions. Authorized expenses shall be billed for reimbursement as described in paragraph 5.2, Tolls and Charges.

5.2.3. Barge Cleaning Expenses.

Barge cleaning expenses claimed in accordance with Paragraph 4.4.4.1 shall be approved in advance by the COR. Authorized cleaning expenses shall be billed for reimbursement as described in paragraph 5.2, Tolls and Charges.

5.3. Bunker Fuel Reimbursement

Reimbursement for Bunker Fuel consumed in performance under the contract shall be paid on an actual cost basis.