20230223 DoD TO PWS.pdf

UNCLASSIFIED

PERFORMANCE WORK STATEMENT

Department of Defense Third Party Payment System

Prepared by

Defense Finance and Accounting Service (DFAS) – Accounting Standards & Reporting, Transportation Mission Area

17 February 2023

1.0. DESCRIPTION OF SERVICES

The Third Party Payment System (TPPS) requirement is to provide an Electronic Transportation Bill Payment Environment (ETBPE) for the Defense Finance and Accounting Service (DFAS) Transportation Mission Area (TMA). For purposes of this requirement, TPPS is synonymous with ETBPE.

1.1. BACKGROUND

1.1.1. Management Reform Memorandum (MRM) 15 directed Reengineering of Defense Transportation Documentation and Financial processes. The directive specifically addressed reengineering billing, collection, and payment processes through transition to commercially acceptable practices. The initiative included maintaining readiness capability; reducing infrastructure costs; eliminating Department of Defense (DoD)-unique documentation and processes; reducing data requirements/improve accuracy; increasing use of Electronic Commerce (EC);

employing best commercial practices; and establishing a single documentation and billing process for all modes of transportation.

1.1.2. The Deputy Secretary of Defense directed the implementation of the TPPS contractor’s payment system to pay for transportation services. DoD voluntary tenders require the use of the TPPS, and all DoD cargo movements must be offered only to commercial carriers who utilize the TPPS as their billing and payment system. The responsible DoD lead for the TPPS is the DoD TPPS Program Manager (PM) located at DFAS. A TPPS Oversight Council is co-chaired by DFAS and the Assistant Deputy Under Secretary of Defense for Transportation Policy.

The council provides overall guidance and direction and facilitates system change requests to the TPPS contractor.

1.1.3. TPPS procedures are located in the Defense Travel Regulation (DTR) which is accessible via the following link: https://www.ustranscom.mil/dtr/index.cfm

Procedures DTR Volume Cargo Movement (Freight) Part II, Chapter 212 – Payment System Personal Property Payment Flows

Part IV, Appendix A – TPPS

1.2. SCOPE

1.2.1. This PWS includes requirements for a fully automated, commercial payment and accounting system and associated system support services for transportation related expenses of DoD shipments. In accordance with (IAW) the DTR, (www.ustranscom.mil/dtr/), the contractor shall provide a common, real time, TPPS shared by shipping companies and the accounting process for the DoD, while capturing and retaining detailed finance and accounting information at the transaction level. The system shall provide and facilitate worldwide support of transportation payments and functional data with the capability to authorize shipments, process expenses, and streamline purchase and payment systems for the DoD, Automated Payment and Accounting Process upon Government approval. The DoD generates an average of 1,000,000 (+/- 10%) transactions per month, between all DoD Shipping Offices and all DoD Approved Carriers/Transportation Service Providers (TSP). There are approximately 2,380 DoD-Approved TSPs. This listing is updated periodically. The average transaction volume could increase or decrease by 20-50% during the life of this contract as more Shipping Offices roll into the system or as world events influence transaction volume. DoD shipments consist of freight (FRT) and personal property (household goods (HHG), non-temporary storage (NTS), direct procured moves (DPM) and personally owned vehicle (POV)). Currently, the number of accounts by transportation type is 717 freight accounts, 47 household goods accounts, 21 non-temporary storage, 30 direct procured moves and 11 personally owned vehicle shipment/storage accounts.

1.2.2. The TPPS shall interface with the following Government Shipping Systems (see Appendix A for descriptions):

• Cargo Movement Operations System (CMOS)

• Global Freight Management (GFM)

• Financial and Air Clearance Transportation System (FACTS)

• Integrated Booking System (IBS)

• Defense Personal Property System (DPS)

• Distribution Standard System (DSS)

• Vendor Shipment Module (VSM)

• Logistics Tool Suite (LTS)

1.3. TASKS

The following task areas define the contractor services required by the DoD in support of electronic transportation payment, maintenance and storage of the data required for audit, management reports and analysis, and transmission of required data to the DoD appropriate central data repository.

Task Area 1: Task Order Management Task Area 2: TPPS System Requirements Task Area 3: TPPS System Support Services

1.3.1 Task Order Management

These tasks consist of the functional activities relating to the administration and management of this effort.

Throughout this PWS all references to Contracting Officer Representative (COR) are applicable to both the

Primary and Alternate COR.

Throughout this PWS all references to Government are applicable to DoD Systems and Personnel.

1.3.1.1 The contractor’s system shall capture, in an auditable format, all DoD finance and accounting shipment information at the transaction level related to transportation services produced by all DoD shippers and agents acting on their behalf and includes other transactions where there is a buyer and seller of a service. DoD Approved TSPs that have successfully completed the Surface Deployment and Distribution Command (SDDC) Freight Carrier Registration Program (FCRP) and Shipping System are listed in the SDDC GFM, Defense Property System or other Government Shipping Systems (i.e., CMOS, DSS, Central Web Application (CWA) or Logistics Tool Suite (LTS)) and DoD Approved Freight Carriers Lists (i.e., FedEx, UPS, trucking systems, etc.).

1.3.1.2 Complete end-to-end implementation shall be in full compliance with all statutory and regulatory requirements including, but not limited to, the Chief Financial Officer (CFO) and Federal Financial Management Improvement Acts (FFMIA) and Federal Generally Accepted Accounting Principles (FedGAAP). DoD will continue to support fully automated processing of Government freight and personal property shipments and/or transactions. This initiative encompasses all required efforts to fully support the DoD’s business processes involved with the payment and reconciliation of all transportation charges and billing.

1.3.1.3 Specific information on the current FCRP is located at the Public Website:

2016_FCRP_Welcome_Pkg_SDDC_Letterhead.pdf (ustranscom.mil)

1.3.1.4 The TPPS requirement is Covered Defense Information (CDI) as defined in Defense Federal Acquisition Regulation Supplement (DFARS) 252.204-7012 Safeguarding Covered Defense Information and Cyber Incident.

CDI means unclassified controlled technical information or other information, as described in the Controlled Unclassified Information (CUI) Registry at http://www.archives.gov/cui/registry/category-list.html that requires safeguarding or dissemination controls pursuant to and consistent with law, regulations, and Government wide policies. The TPPS requirement CUI Registry identifies Electronic Funds Transfer pursuant to 48 CFR 32.1104.

1.3.1.5 The contractor shall facilitate the relationship between DoD shippers and TSPs in order to support the electronic integration of shipment and billing information to result in the auditable, accurate and timely payment of invoices.

1.3.1.6 The contractor shall provide program management for all contractor tasks, personnel resources and costs, and ensure all deliverables meet schedule constraints under this PWS. The contractor shall designate a principal point of contact for technical/engineering issues. The contractor shall provide a Contract Manager and Alternate(s) who will be responsible for the overall effort. The name of the Contract Manager and alternate(s), who will act for the contractor when the Contract Manager is absent, shall be designated in writing to the COR no later than (NLT) three (3) business days prior to the planned absence.

1.3.1.7 The contractor shall provide support in the specific areas outlined below in this PWS. The contractor shall work with the DFAS – Enterprise Accounting and Audit Support, Transportation Mission Area Program Office, process owners/stakeholders, Federal and DoD Government representatives, and other contractors to accomplish required tasks with approval from COR/Alternate Contracting Officer’s Representative (ACOR).

1.3.1.8 No contractor personnel shall perform any work on this contract that meets the definition of inherently governmental according to Federal Acquisition Regulation (FAR) Subpart 7.503(c). Contractor personnel shall be performing tasks under FAR Subpart 7.503(d); however, contract personnel shall be in a supporting role to the Government task lead and shall not be in a decision-making role. The Government will be the sole authority for decisions regarding Government requirements and actions. The Government seeks commercial best practices. The contractor may submit recommendations to the COR for further action.

1.3.1.9 Contractor System Changes: When the contractor makes changes to their system, the contractor shall provide notification to the COR NLT 120 days before the proposed implementation date and submit for Government review and comment an Implementation Plan for rollout of the customized tools and materials. The Implementation Plan shall contain at a minimum:

• A description of the proposed change

• Date of proposed implementation

• Method of communication to the users

• If applicable, type and distribution method of training materials to the users

Deliverable: Implementation Plan

1.3.1.10 System downtime shall not exceed 5% in a given month. The Contractor shall provide a system with at least 98 percent or better reliability. Reliability is defined, as the amount of time the system and or process is available for use by DoD and other designated federal agency users worldwide. The contractor shall report all system downtime to the COR. The contractor shall provide the COR notification of the situation within 15 minutes of discovery by email and TPPS HQ public mailbox (dfas.indianapolis-in.jjh.mbx.hq-tpps-transportation@mail.mil) to those individuals in the Pyramid Alert Notification Roster provided by the COR. After initial notification is made, the contractor shall report the status of the repair to the COR every 60 minutes during official Government operating hours and every two (2) hours during non-operational hours until the process is determined productive.

The contractor shall submit a Monthly Downtime report to the COR. The report shall document each instance of system downtime and include the number of hours the system was down, the reason for the outage and the action taken to resolve the issue. The report shall be submitted via email by the 10th of each month.

1.3.1.11 The contractor shall announce scheduled system maintenance affecting DoD users worldwide, at least one week in advance via the most efficient media available. Scheduled downtime shall occur between 0200 hours Eastern Time (ET) on Saturday and 2400 hours ET on Sunday. The contractor shall not schedule downtime outside the aforementioned parameters. Scheduled downtime shall not count against the system/process reliability calculation.

Deliverable: Monthly Downtime Report

1.3.1.12 System Change Management Requests (SCMRs) identify system changes the Government would find beneficial. Implementation of these changes is solely up to the discretion of the contractor and all costs shall be borne by the contractor with no guarantee of future Government work if the change(s) are implemented A SCMR, in part or in whole, does not modify the terms and conditions of the contract and cannot be used as a basis for any claim or other assertion for money or monetary damages by the contractor now or in the future.

1.3.1.13 The TPPS Council will review the Transportation TPPS SCMRs (DFAS Form 9337), Attachment F, at scheduled TPPS council meetings and submit to the contractor the approved and prioritized SCMRs. The contractor shall then provide a feasibility assessment, according to the Priorities listed below. In addition to the feasibility of the SCMR, the form shall include a description of the proposed contractor solution and an estimated length of completion.

• Priority 1 SCMR within 30 days of receipt.

• Priority 2 SCMR within 60 days of receipt.

• Priority 3 SCMR within 90 days of receipt

• Priority 4 SCMR within 90 days of receipt

• Priority 5 SCMR within 90 days of receipt

Deliverable: Feasibility Assessment

1.3.1.14 The contractor shall provide TPPS information required to process the recommended upgrades through the DoD Services Intranet Environments review, packaging, and certification process. The contractor shall notify the COR prior to making any changes or upgrades to the processes that would affect the customer and require training or updating user documentation. Additionally, notification is required when making changes that affect the technology required to operate the product, such as operating systems or web browser functionality. This notification shall be made through the contractor’s system homepage, by email to Program Management Office (PMO) offices, and other media as necessary.

1.3.1.15 For the purposes of testing and familiarization, the contractor shall allow DoD access to all applicable test environments for 30 days prior to deployment of Government-specific TPPS upgrades. The test region shall have the capability of sending and receiving test data from the Global Exchange (GEX) test region and the test regions of DoD. The contractor shall submit an implementation plan for rollout of any future TPPS upgrades with its technical proposal.

1.3.1.16 If there are any changes to the system or interface(s) that will result in a necessity for additional training or testing, notification and coordination with the COR and Stakeholders is required at least nine months prior to intended deployment. This advanced notice is required to reduce impact to fiscal year cycle planning and to support application integration into DoD Services Intranet Environment.

1.3.1.17 The Contractor shall provide to the COR a commercial/standard Continuity of Operations Plan within six

(6) months from the performance start date. The Contractor shall provide to the COR a revised Continuity of Operations Plan within six (6) months of the start of each option period.

Deliverable: Commercial/Standard Continuity of Operations Plan

1.3.1.18 The processing fee for the TPPS contract shall cover all expenses associated with processing a transportation provider’s invoice and shall not exceed the fee established on the Indefinite Delivery/Indefinite Quantity (ID/IQ) contract.

1.3.2 Task Area 2 – TPPS System Requirement

1.3.2.1. The contractor shall provide an auditable common, real-time, TPPS shared by DoD personnel and carriers or seller of transportation services, from here forward referred to as TSPs that streamlines the payment and accounting process for the DoD. This process shall capture and provide to the DoD detailed information required to continuously improve the cost-effectiveness of TSP payments and transportation movement and billing. Such information shall include, but not be limited to, packing, line haul, storage, and each applicable accessorial charge at the individual transaction level. The primary source of shipment or order information within the system shall be electronically received batch data from the DoD order, shipment, contract, and accounting management systems based upon commercial/industry standard electronic format and the TSP or carrier management systems. The system shall be designed to allow all TSPs, their agents, and transportation managers submitting delivery or terminated status to trigger payment and designed to support carrier performance monitoring. It shall encompass, but not be limited to, settlement for any type of trucking, rail, air, pipeline, barge, sealift, express package, household goods, inter-modal, inter-governmental or internal DoD transportation transactions.

1.3.2.2 The contractor’s system shall interface with any future developed Government Shipping System.

1.3.2.3 All involved processes and computer systems shall be integrated primarily using EDI. The main source of shipment information within the TPPS shall be based on EDI, extensible markup language (XML), or user defined format (UDF) data feeds from DoD various shipping activities’ systems (DPS, GFM, CMOS, DSS, etc.) and commercial carrier and move manager systems. The design of the TPPS shall make it easy to submit delivery status, to trigger a payment, and to support carrier performance monitoring. For the purpose of this PWS, TPPS shall encompass, but not be limited to, auditable settlement for any type of trucking, rail, air, pipeline, barge, sealift, express package, household goods, inter-modal, packing or internal DoD transactions where the buyer and seller of a service have a fee for service relationship. Such transactions may or may not include the actual transfer of funds.

1.3.2.4. The contractor shall provide an automated transportation TPPS with the following abilities:

• to electronically receive and utilize batch data from Government order, shipment, contract, and accounting management systems based upon standard/commercial electronic format.

• to electronically accept and utilize invoices with event status to include final invoice status from DoD

Approved Freight Carriers/TSPs based upon a commercial industry standard data set and transmission method and IAW DFARS.

• to electronically accept and utilize verification and data changes from DoD order, shipment, contract, and accounting management systems directly and systematically.

• to reconcile and pay TSPs the amount verified by DoD shippers or buyers directly or systematically.

• for DoD personnel to access the TPPS via direct system-to-system interface and the Internet for purposes of establishing valid Carrier or TSP relationships and originating, processing and approving electronic payment related transactions.

• BOL - for authorized users to enter, edit, and save all bill of lading (BOL) information including, but not limited to, carrier/TSP to be paid, amount to be paid, delivery information, origin, destination, line-item detail, appropriation sub-head code, LOA, appropriation code(s), Transportation Account Codes (TAC), and Transportation Control Number (TCN).

• FAR - for authorized users to enter, edit, and save all contract task order (FAR based contracts) information including, but not limited to, Quantity (QTY) - ordered and funded, Unit of Issue/Measure (UI/UM) - standard contract measurements, Unit Price (UP) - based on order items Contract Line Item Numbers (CLINs) unit price authorized, Extended Price (QTY X UP) - Ordered (Funded) X UP and Period of Performance (Funded). Verify all invoices submitted for payment under FAR based contracts are in compliance with DoD Financial Management Regulation (FMR) Volume 3 Chapter 8, FAR 1.602.2 and

FAR 32.905.

• to provide an on-line mechanism to facilitate control and monitor post-payment adjustments that automatically links the adjustment to the original shipment and provides for a detailed record of the reason(s) for adjustment. The TPPS shall automatically link payment information with the underlying shipment or order information to present the user with a single combined view of the transaction and eliminate the requirement for an additional reconciliation process.

• to capture all appropriation code information relevant to a shipment or order provided by DoD order, shipment, contract, and accounting management systems, to be visible and linked to said activity and retained in the TPPS for posting, reporting and analysis purposes.

• to create and submit supplemental payment requests or billing disputes that can be used for any purpose, including, but not limited to, the recovery or adjustment of money associated with transportation over/under payments, interest penalties associated with delayed transaction approvals, and administrative offsets services and supplemental billing and or adjustment to all the afore mentioned categories. These Supplemental Transactions shall be linked in an auditable manner to the original transaction. Unlinked Supplemental Transactions shall be allowed in limited, but specified, situations that shall be identified in writing by the COR. The party requesting funds has the obligation of creating and submitting the supplemental payment requests or billing disputes to the receiving party. As an example of acceptable action or activity, upon approval by the receiving party, the contractor shall process the supplemental payment requests or billing disputes by crediting or paying the requesting party and debiting the receiving party. All supplemental transactions, debit or credit, require bilateral approval (approval by the requesting and receiving party) prior to processing by the contractor. In the event that the contractor cannot collect the amount of the approved supplemental payment requests or billing disputes from the receiving party within 60 days, the contractor has the option of reversing the supplemental payment requests or billing disputes transaction.

• for the Government to unilaterally adjust and/or stop payments to the TSP to offset debts. The contractor shall develop with the Government a standard commercial process for redirecting credits resulting from adjusted and/or stopped payments NLT 12 months of contract award. The Government will adjust and/or stop payments to the contractor to satisfy any TSP offsets, if the contractor fails to provide the Government with the ability to offset TSP debts within 12 months of contract award.

• to pay carriers/TSP in any foreign currency as requested by the Government and under the terms provided by the Government. Currently, the Government accepts only three foreign currencies, Yen, Euros and British Pounds and has no immediate plans to accept additional foreign currencies. The ability to electronically submit EDI 810s to the Government in accepted Foreign Currencies. However, should the requirement arise, the contractor shall establish the settlement conversion rate for each transaction, and bill DoD in U.S. Dollars (USD).

• YEN disbursements by DFAS include a disbursing fee of ¥3000 that is deducted from payments.

Contractor shall agree to absorb this fee up to five times per month with the full principle payment posted to the account. DFAS must aggregate payments to limit disbursements of YEN payments to once a week to ensure not to exceed the five times per month limit.

• interface with carrier or TSP invoice management systems to receive data with regards to performance and sending payment for successful performance of service. The system shall have the capability to tie cargo movements and costs to a contract number. Carrier or TSP invoice shall include a contract number. The data shall be accurate, timely, reside in a searchable field for reporting purposes, and reflect all transactions history (i.e., price adjustments, offsets) to final cost.

• system shall provide DoD with the capability to grant data access rights

• automatically links payment information with the underlying shipment and or service or order information to present the user with a single combined view of the transaction and eliminate the requirement for an additional reconciliation process. The contractor shall retain all appropriation code and TAC information relevant to a shipment or order provided by DoD order, shipment, contract, and accounting management systems in the TPPS for audit, posting, reporting and analysis purposes.

• capable of supporting the DoD processes for audit, transportation payment, reconciliation, working capital/appropriated/non-appropriated funds management interface and that, at a minimum, provides all capabilities and abilities listed in this PWS.

1.3.2.5 The capability shall exist to interface with DoD to electronically transmit and receive data with Government TAC, order, shipment, contract, In Transit Visibility (ITV), audit, billing, data analysis, and accounting management systems based upon commercial/industry standard electronic format. The contractor shall maintain specific information delineated in Interface Requirements Specification (IRS) document(s). Each Government PMO will maintain detailed file layouts specifying type of data, length of data element, periodicity of transmission, and other appropriate information related to the creation of an efficient interface.

1.3.2.6 Interfaces shall utilize the GEX maintained by the Defense Automatic Addressing System (DAAS) (or other interfacing exchange system(s) as designated by DoD). GEX is a Value-Added Network (VAN), which is a staging area for sharing files between trading partners. GEX has the capability to transfer data via Secure File Transfer Protocol (sFTP) and HyperText Transfer Protocol-Secure (HTTPS). The transport mechanism used to send and receive information (EDI/XML/UDF data) between the contractor system and the designated Government system is sFTP. The EDI/XML/UDF data, whether it is in the form of EDI/XML 110, 810, 814, 820, 821, 850, 859, 858, 824 or 997 transactions, is encoded in the Request Body as a standard octet-stream. Other designated Federal Agencies will retain their current interface specifications. Contractor shall provide EDI/XML data to FACTS/Tracker Lite that shows the BOLs received from GFM/CMOS were accepted and processed/posted to the TPPS system as a valid BOL/Order transaction.

1.3.2.7. The communications connectivity for the interface between the contractor system and designated Government system is based on Internet Protocol (IP) Sockets using the public Internet for the packet delivery.

sFTP application layer protocols are used for the transport of the EDI/XML data and the encryption of data payload(s).

1.3.2.8 Modifications to this interface shall be required if any of the following components supporting the interface are changed: (a) Software, (b) Hardware, (c) Communications Infrastructure, (d) Interface Procedures, and (e) Changes to the Format/Content of the Data Transferred. Because modifications to this interface may require extensive changes to the hardware and/or software of the Contractor or Government systems, any modifications shall be thoroughly analyzed and coordinated with the Government. Testing of the aforementioned modifications shall follow the same testing procedures outlined in 1.3.1.13. Approved changes shall be scheduled at a minimum of 120 days in advance. The COR will coordinate with the TPPS Oversight Council for approval and prioritization.

1.3.2.9 The contractor’s system shall provide to the COR a summary monthly statement of invoices and payments for each freight, household goods and non-temporary storage account. The end date of the monthly cycle shall be:

• 5th of month – Defense Agency freight accounts and personally owned vehicle shipment/storage

• 9th of month – Military Services direct procured moves

• 15th of month – Military Services freight and household goods accounts

• 25th of month – Non-temporary storage accounts

1.3.2.10. Delinquent invoice amounts and the date shall be an integral part of the contractor billing and reimbursement process with the Government. The contractor’s reimbursement invoice to the Government shall contain delinquent amount and date incurred until that specific amount is paid.

1.3.2.11 In accordance with FAR 52.212-4(i)(2) and 31 U.S.C 3903 (e), Prompt Payment, payments are due 30 calendar days from the TPPS monthly invoice availability date. The contractor shall be responsible for any interest penalties accrued because system downtime, unmatched bills and/or posting invoices to an incorrect billing statement.

1.3.2.12 If the cycle date falls on a weekend or federal holiday, the statement shall cycle on the next Government business day. Should the Government require a summary monthly statement of invoices and payment out-of-cycle, the Government will coordinate with the contractor. The contractor shall provide to the COR the out-of-cycle report. The deliverable date shall be coordinated and mutually agreed, in writing, between the Contractor and the Government. The out-of-cycle report may be in addition to or in replace of the normal scheduled monthly cycle as coordinated and mutually agreed between the Contractor and the Government.

1.3.2.13 Invoices shall be made available for certification and payment reimbursement NLT 0700 hours Eastern Time on the first Government business day following the end of each cycle.

Deliverable: Monthly Invoice

1.3.2.14 The contractor shall make payment to TSPs within three (3) Government business days upon receipt of a Government approved invoice. Any failure by the contractor to make payment of approved transactions under the terms specified in the TSP agreement shall be resolved between the contractor and the TSP.

1.3.2.15 All payment information shall be automatically linked with the underlying TAC, shipment or order information to present the user with a single combined view of the transaction and eliminate the requirement for additional reconciliation processing. All appropriation code information relevant to a shipment or order provided by the Government’s shipment or order management systems shall be retained in the TPPS for audit, posting, reporting, billing, and analysis purposes.

1.3.2.16 The contractor shall deliver in accordance with paragraph 1.3.2.11 all monthly invoices and reports electronically to each authorized user's desktop via the TPPS. To further streamline the payment accounting process, monthly invoices shall summarize charges by LOA and TAC, when provided, and appropriation code. The accounting information displayed in the monthly statement record relies upon Customer input. If the LOA or TAC is not present, then the default LOA shall be summarized in the monthly invoice.

1.3.2.17 The contractor shall provide DoD with the capability to grant data access rights, including an automated interface with DoD accounting systems, to DoD– and their authorized users so that oversight, audit, accounting, and compliance groups can perform their functions within the TPPS – including an automated interface with DoD systems.

1.3.2.18 The contractor shall provide users with the capability to conduct a variety of Web-based analysis and reporting tasks. This includes ad-hoc query and reporting with which users can construct and execute custom, line-item detail and summary database queries and reports; and Online Analytical Processing (OLAP), e.g., “information cubes”), which allows users to perform summary-level, multi-dimensional analysis. Users must be able to save and share reports they have developed on the contractor’s website. Users also shall provide a scheduling capability to run a report at recurring dates and times, and the ability save reports down to their client system as a Microsoft Excel 2016 workbook (.xlsx), Adobe Acrobat Portable Document File (.pdf), delimited text files, XML files, and HTML (e.g., Web report).

1.3.2.19 The contractor shall be the Government's agent for document repository as it relates to all transactions under the payment system at no cost to the government. A transaction is defined as any record documenting the movement of goods and persons and related payments for the Government. Final payment is defined, as the last payment made on a transaction. Linked eBills must be used for the purpose of determining final payment for related transactions and correction capability. The contractor shall maintain electronic records of all transactions after final payment in accordance with the disposition schedules in DFAS 5015.2-M, approved by the U.S. National Archives and Records Administration and DoD. Foreign Military Sales (FMS) transactions are subject to alternative retention requirements in accordance with the aforementioned disposition schedules. FMS transactions are identified by Lines of Accounting with a Basic Symbol of 8242. Basic Symbol is the data element, A4 (or A3 in SFIS). The disposition schedules dictate the storage of non-FMS and FMS transactions for 6 years and 10 years, respectively.

The COR is responsible for notifying the contractor of any modifications to the disposition schedules. The contractor shall provide online access to data for a minimum of 36 months after the final payment. Archived data shall be available upon request from the COR and shall be provided electronically within five (5) business days of a request unless requested as a result of an audit engagement. Archived data is defined as transactions stored offline based on the final payment after 36 months. The contractor shall store all transaction data for open, closed, or inactive accounts at no cost to the Government. See the Audit Readiness section in this document for the audit related request timeframe.

1.3.3 Task Area 3 – TPPS System Support Services

1.3.3.1 The contractor shall provide a Weekly Status Report (WSR) to the COR and conduct a weekly presentation to the Government of the information contained within the WSR. The due date of the WSR and weekly presentation shall be mutually agreed, in writing, between the contractor and the Government.

1.3.3.2 The WSR format shall be mutually agreed upon, in writing, by the Contractor and COR. The WSR shall contain, but not be limited to, the following information (as applicable):

• Current issues

• System availability and outages

• US and International Delinquency

• Account Activity (status of open/closure requests)

Deliverable: Weekly Status Report

Weekly Status Report Presentation

1.3.3.3 The contractor shall conduct two (2) In-Process Reviews (IPR) during the base year (starting 1 January 2025) and each option year, to the Government, summarizing status, progress, recommendations, and concerns in the development of tasks or documentation described within this PWS. The Government will schedule all IPRs and provide notification to the contractor 60 calendar days in advance. Presentation slides (materials) shall be prepared and provided to the COR five (5) business days prior to the IPR. The Contractor shall deliver IPR meeting minutes within five (5) business days as requested by the COR. At a minimum, the meeting minutes shall reflect a record of discussion activity, decisions made, date, locations, and attendees. During any year, the Government may elect not to schedule any IPRs.

Deliverable: IPR Slides

IPR Meeting Minutes

1.3.3.4 The contractor shall conduct monthly (as needed) Executive Updates during the base year (starting 1 January 2025) and each option year, to the Government, to include outstanding balances, trends and analysis. The Government will schedule all Executive Updates and provide notification to the contractor 60 calendar days in advance. Presentation slides (materials) shall be prepared and provided to the COR five (5) business days prior to the Executive Update. The Contractor shall deliver Executive Update meeting minutes within five (5) business days as requested by the COR. At a minimum, the meeting minutes shall reflect a record of discussion activity, decisions made, date, locations, and attendees. During any quarter, the Government may elect not to schedule any Executive Updates.

Deliverable: Executive Update Slides Executive Update Meeting Minutes

1.3.3.5 In order to comply with regulatory guidance or requirements for DoD, the contractor shall, at the request of the Government, provide applicable reports or data. Reports or data that are less than 36 months, the contractor shall submit to the Government within two (2) days of the request and reports or data older than 36 months the contractor shall submit to the Government with 30 days of the request.

Deliverable: Reports/Data

1.3.3.6 The contractor shall provide a summary account balance report for all accounts on a weekly basis. The report shall be prepared in MS Excel and delivered to the COR via email. At a minimum, the report shall display the following fields:

• Account Number

• Account Name

• Statement Closing Date

• Total Debits

• Total Credits

• Total Payments

• Current Balance

• Past Due Balance

Deliverable: Summary Account Balance

1.3.3.7 The contractor shall provide a daily report each business day on the status of account certifications for the HHG, NTS, FRT, DPM and POV transportation account types. The report shall identify the uncertified accounts by name and number, the cycle date and the uncertified days. The report shall annotate if any charges are in the manual charges section of the monthly invoice. The report shall be delivered daily via email to the COR in text file format.

Deliverable: Daily Certification Report

1.3.3.8 The contractor shall provide a help desk and functioning toll-free help desk phone number, and web address for same, all to be available from the effective date of the contract, seven (7) days per week, 24 hours a day.

1.3.3.9 The contractor shall provide a quarterly Help Desk Report to provide data on the number and types of help desk calls. The report, in MS Excel, shall be submitted to the COR via email per the schedule below.

Q1 – 1 Jan through 31 March – Report due 15 April Q2 – 1 April through 30 June – Report due 15 July Q3 – 1 July through 30 September – Report due 15 October Q4 – 1 October through 31 December – Report due 15 January

Deliverable: Help Desk Report

1.3.3.10 The contractor shall analyze customer (e.g., the Government, carriers/TSP, etc.) problems and systemic problems within its system and develop solutions to these problems. The contractor shall present the proposed Help Desk Course of Action (COA) and the anticipated effects to the COR, ticket initiator, and TPPS HQ public mailbox (dfas.indianapolis-in.jjh.mbx.hq-tpps-transportation@mail.mil) within seven (7) business days of receiving notice of the problem and shall continue to report until resolved.

Deliverable: Help Desk COA

1.3.3.11 The contractor shall provide customized training tools and materials for TSPs and all DoD users, which incorporate any DoD-tailored requirements. The contractor shall submit an annual training plan to the Contracting Officer and COR NLT 28 February of each performance period. The Government’s acceptance of the Training Plan does not constitute the Government’s approval or commitment to hosting a conference/site visit in support of the PWS. The intent of this Training Plan is to identify new opportunities for relaying system training and new system functionality to all users. If the Government has comments on the Training Plan, the Contractor shall resubmit the Training Plan to the COR within 15 calendar days of receipt of the Government’s comments. The contractor shall conduct training either in-person (via conference or three (3) regional site visits) or virtually and the method of training shall be addressed in the Training Plan. In addition, the contractor shall provide web-based training to Certifying Officers, Service Representatives and Pay Technicians. The training shall include reference guides, system setup, on-site consulting, and project management meetings.

Deliverable: Annual Training Plan

1.3.3.12 Contractor shall coordinate with and receive prior written approval from the COR and/or Contracting Officer (CO) prior to engaging with or participating in discussions with DoD stakeholders to include drafting / conducting briefings, participating in system capability discussions, etc. The contractor shall coordinate with and receive prior written approval by the COR before conducting customer site visits.

1.3.3.13 Within 30 calendar days of receiving a written request from the COR, the contractor shall provide to the initial requestor all requested information, which includes any transactions housed in its systems that support the contract during the period of performance in an electronic format, at no additional cost to the Government. The contractor shall propose a commercial/standard file format for electronic data delivery. Data shall be delivered in the approved standard format to multiple locations as required by DoD. The Government may request three (3) nonstandard file formats on an annual basis that shall be provided by the contractor at no cost.

1.3.3.14 The contractor shall provide the Integrated Data Environment (IDE)/Global Transportation Network (GTN) Convergence (IGC) enterprise data warehouse a daily feed containing a copy of all records that make up each transaction, to include linked eBills. A copy of each record shall be transmitted within 24 hours after being generated or updated. Records shall be packaged into UDF files and then sent to the DAAS GEX (1.3.3.2.), which shall in turn forward a copy to IGC and other authorized systems.

1.3.3.15 The contractor shall provide an Advana data platform with a weekly feed containing a copy of all records that make up each transaction, to include linked eBills. Records shall be packaged into UDF files and then sent to the DAAS GEX (1.3.3.2.), which shall in turn forward a copy to Advana and other authorized systems.

1.3.3.16 Each quarter the contractor shall calculate an early payment incentive (EPI) based on the File Turn Rebate Rate on all eligible Net Quarterly Charges Volume to each organization. The calculation shall be based on each Organization’s Individual Account Number payment performance.

1.3.3.17 The following definitions are only applicable to the Early Payment Incentive addressed within this paragraph.

Term Definition

File Turn Equal to the Sum of Daily Balances divided by Sum of Daily Sales

Individual Account Number The specific account to which the Transportation Service Provider payment will be charged and billed to the government

Net Quarterly Charge Volume Sum of all sales less returns

Organization DoD

Sum of Daily Balances Sum of the outstanding balance for each day of the quarter

Sum of Daily Sales Sum of the Net Quarterly Charge Volume for each day of the quarter

1.3.3.18 Determination of File Turn and File Turn Rebate Rate. Each period the contractor shall calculate the EPI.

First, the contractor shall calculate the File Turn for each period, which will then be used to determine the File Turn Rebate Rate for the same period consistent with the grid below.

File Turn File Turn Rebate Rate File Turn File Turn Rebate Rate

30 or greater 0.00000 14 0.00064

29 0.00004 13 0.00068

28 0.00008 12 0.00072

27 0.00012 11 0.00076

26 0.00016 10 0.00080

25 0.00020 9 0.00084

24 0.00024 8 0.00088

23 0.00028 7 0.00092

22 0.00032 6 0.00096

21 0.00036 5 0.00100

20 0.00040 4 0.00104

19 0.00044 3 0.00108

18 0.00048 2 0.00112

17 0.00052 1 0.00116

16 0.00056 0 0.00120

15 0.00060

1.3.3.19 If the File Turn for an Individual Account Number is less than thirty (30) for the period, the Contractor shall calculate the EPI Amount. The EPI Amount will equal the File Turn Rebate Rate multiplied by the Individual Account Number Net Quarterly Charge Volume. If the File Turn for the Individual Account Number is equal to thirty (30) or greater, the Individual Account Number will not be eligible for an EPI.

EPI Amount = File Turn Basis Points X Individual Account Number Net Quarterly Charge Volume

1.3.3.20 The Contractor shall create and submit to the COR a File Turn Summary report 30 days after the end of each calendar year quarter. The report shall detail each Organization’s qualifying Individual EPI Amount by Account Number. The report shall also include the quarterly File Turn calculation as well as the EPI calculation at the individual account level. The Government will distribute to each Organization a copy of all reports. The Government will review the submitted report and either reject the report or ask for corrections. The Contractor shall submit a Final Report within five business days of receipt of the Government comments.

Deliverable: File Turn Summary Report

1.3.3.21 A quarter is defined as:

Q1 – 1 Jan through 31 March Q2 – 1 April through 30 June Q3 – 1 July through 30 September Q4 – 1 October through 31 December

1.3.3.22 The sum of all EPI Amounts for an Organization’s Individual Account Numbers will be disbursed as one single payment to the Organization via Automated Clearing House (ACH) or Electronic Funds Transfer (EFT).

DoD earned EPI will be sent via Wire Transfer to the DFAS Indianapolis Disbursing Office for distribution by DFAS to the Services/Agencies.

1.3.3.23 The sum of all EPI Amounts shall be disbursed to a mutually agreed upon single account. If at any time during the corresponding calendar year DoD earns an EPI Amount, the COR must fill out an EPI disbursement form (DFAS Form 9391) for distribution of earnings. The COR will indicate to the contractor on the EPI disbursement form the amount to be disbursed to DFAS and provide information for the Wire Transfer Addenda to include the Service/Agency LOA which earnings are being distributed to and the amount be distributed. The COR must submit the signed disbursement form to the contractor within 90 days of receipt of the EPI Report for transfer from the contractor General Ledger (GL) account to the DoD EPI holding account. EPI Earnings are held in the EPI Account one quarter in arrears to cover the Offsets/Payment of unliquidated, aged invoices.

1.3.3.24 The contractor shall open a ticket within 48 hours of receipt of request to perform transfers from the contractor GL account to the DoD EPI holding account or disbursements from the DoD EPI holding account to DFAS Indianapolis Disbursing. The contractor shall then have seven (7) calendar days to perform the internal transfer of funds. For requests for disbursements from the DoD EPI holding account, the contractor shall have 14 calendar days to perform the disbursement to DFAS Indianapolis Disbursing.

1.3.3.25 Rounding for purposes of EPI shall use the following methodology: for any calculation, the midpoint of .50 shall determine the direction of rounding. If the derived decimal amount is .50 or less, the number of days shall round down to the nearest whole number. If the decimal is .51 or greater, the amount shall round up to the nearest whole number.

1.3.3.26 The contractor shall cooperate in any data mining, Lean Six Sigma or other audit techniques initiated by DFAS or DoD.

1.3.3.27 Upon Government request, the contractor shall provide all data, documentation, or evidentiary matter in support of any audits involving the Government within Auditor established timeframes for the request. As stated in Section 1.3.9 of this document, the contractor shall comply with data/document feeds to Government repositories when requested by the COR.

1.3.3.28 The contractor shall support Standard Financial Information Structure (SFIS) as issued in the DoD FMR 7000.14-R Volume 1, Chapter 4 by enforcing data integrity validation for appropriated funds in the contractor’s system. The contractor shall support the Government by incorporating the Standard Line of Accounting (SLOA) data set format as part of the SFIS in its systems. Requirements for SFIS and SLOA compliance can be found at:

https://comptroller.defense.gov/Portals/45/documents/fmr/current/01/01_10.pdf

1.3.3.29 The contractor and its system shall comply with the FFMIA as set forth in the Office of Management and Budget (OMB) Circular A-123.

1.3.3.30 The contractor shall conduct a Statement on Standards for Attestation Engagements No. 18 (SSAE) or the current American Institute of CPAs (AICPA) equivalent on its system with the reporting period and report issuance dates aligned with DoD audits. The System and Organization Controls 1 (SOC1) report shall be issued and provided to the COR NLT 15 days prior to DoD's fiscal year (FY)-end, which is September 30. The contractor shall conduct quarterly meetings via teleconference with its SSAE No. 18 auditor and the DoD to provide pertinent information regarding the ongoing annual SSAE No. 18 to include, but not limited to, all additions/modifications/deletions to the Complementary User Entity Controls and Complementary Subservice Organization Controls.

1.3.3.31 The contractor shall implement SCMRs and/or Corrective Action Plans (CAPs) identified by the DoD as a result of any deficiencies with the contractor and its system that could negatively affect a DoD audit.

1.3.3.32 The contractor and its system shall follow Financial Improvement and Audit Readiness (FIAR) methodologies and be capable of document retrieval within three days of audit request.

1.4. DELIVERABLES

1.4.1. All deliverables shall be made electronically via email to the Contracting Officer and COR. If a deliverable is submitted via email and the size or the firewall prevents its delivery, the contractor shall provide a Secure File Transfer Protocol site that allows the Government to download the deliverable. If a site is not available or not feasible, the Government will make one available to the contractor.

1.4.2. Inspection

1.4.2.1. A deliverable is a specific measurable, tangible, and verifiable activity, outcome, result, item, or product that the contractor shall provide and that shall require formal Government acceptance and approval. The Government will review, assess, and provide comment, as required.

1.4.3. Final Acceptance

1.4.3.1. The Government will notify the contractor of deliverable acceptance or provide comments in writing and the Contractor, if necessary, shall revise and resubmit the final deliverable to the Government within 10 business days (unless otherwise specified) after receipt of Government comments, unless otherwise stated within this PWS.

In the event a deliverable date falls on weekend or federal holiday, the contractor shall submit on the first business day after the deliverable due date.

Task Deliverable Title Delivery Schedule

1.3.1.9 Implementation Plan

NLT 120 days before the proposed Implementation date

1.3.1.11 Monthly Downtime Report 30 minutes of discovery Revisions to Government comments NLT 15…