A2_PWS_(Rail_Car_Transportation_and_Maintenance).docx

PERFORMANCE WORK STATEMENT (PWS)

U.S Rail Transportation and U.S owned Railcar Maintenance services

PART 1

GENERAL INFORMATION

1. GENERAL: This is a sole source contract to provide US rail transportation and US owned railcar maintenance services between The Contractor and 25th Trans BN as specified by the US Government. The Contractor shall provide complete rail services as required by the United States Forces Korea (USFK) for movement of passengers and freight between points specified by 25th Trans BN pursuant to the technical specifications provide hereto. And the Contractor provide maintenance and inspection for US owned railcars.

1.1. Description of Services/Introduction: The Contractor shall provide all type of railcars, locomotive, other equipment, facilities, tools, supplies, personnel, and supervision necessary for performance of rail movements and the maintenance of rail cars between USFK compounds and the entire railway system within Korea.

1.2 Background: With the organization change from KNR (ROK Government organization) to KORAIL (Government owned corporation), it is required to divert from the current MOA to the Sole Source Contract thru a legal review. This contract is inheriting most contents of MOA and it is designed to transport US Military equipment and personnel throughout the Contractor railway system in Korea and railheads in US installations, as required. Also, Operation and maintenance of US Government owned railcars on a continuous or as required basis as specified herein (except exterior painting of freight cars, guard car and internal coating of tank cars if and when applicable ).

1.3 Objectives: The contractor shall protect the US Government property (US Military Equipment) from any damage or loss when transporting between the origin and the destination.

1.4 Period of Performance: The effective period of this contract is a one year performance period and may be renewed yearly (with up to four (4) one (1) year extensions) from the date of award.

1.5 Place of Performance: The work to be performed under this contract will be performed throughout Korea.

1.6 Type of Contract: This is a Requirement contract.

1.7. Quality Control Plan: The Contractor shall meet the minimum quality standards.

1.7.1. Service Quality: The Contractor shall conduct this inspection to ensure that all prescribed services are provided in such manner as required by PART 4 and 5 of these specifications, including conduct of the Contractor’s employees.

1.7.1.1. Equipment Qualification: This inspection shall be conducted to ensure that all US Government owned rail cars furnished under this contract are maintained in such condition that they meet operational, safety and other equipment maintenance and inspection requirements. For all railcars furnished by The Contractor for performing services under this contract, and in addition to or in consonance with general car maintenance required by the Contractor Regulations, the following conditions shall apply.

All types of cars (Passenger and freight): All railcars furnished by the Contractor must be fully serviceable and operational.

All journal boxes – Properly packed and lubricated.

Air and hand brakes – Operable.

Coupling devices – Operable.

Brake shoes – In good condition (not reaching condemning limit more than 10mm).

1.8. Quality Assurance Surveillance Plan (QASP): The U.S. Government reserves the right to perform any of the inspections set forth in these specifications where such inspections are deemed necessary to assure services and equipment furnished conform to prescribed requirements specified by this PWS.

1.8.1. See Part 4 and 5 for more detailed explanation.

1.9. Safety:

1.9.1. Contractor Responsibility: The Contractor shall make all possible efforts to ensure the safe operation of rail cars while transporting US Government property under the terms of this contract.

1.9.2. The Contractor shall observe all applicable rules and regulations of the Contractor’s governing safe railroad operations. In addition, the Contractor shall adhere to all signs posted to the right of any spur or crossings by the US Government while operating trains within US military installations.

1.9.3. Under no circumstances, shall a train be operated at a speed less than 20km (13 miles) per hour within any US military installations.

1.9.4. When the Contractor is performing a switching service within a US Military installation, there shall be sufficient switchmen (excluding engine crew) available for the operation. In no case will the number be less than two persons. When a group of cars is pushed backward by the locomotive, a flagman must be positioned at the extreme forward end of the train toward the direction of the train movement.

1.9.5 When a switching service is provided at a US Military installation which handles explosives (ammunition) or flammable item (POL or chemical), the contractor shall use a diesel electric locomotive. In the movement of hazardous items, such as ammunition, explosives, POL products and sensitive flammable chemicals, the car loaded with such items shall not be placed on one-train mixing ammo/explosives or chemicals and POL products. In the events such a cargo mix is unavoidable; a minimum of three cars loaded with other non-flammable general cargo or empty cars shall be placed between the cars (or groups of cars) on the train to provide sufficient insulation. Under no circumstances will such hazardous freight shipments be placed on a passenger train in service.

1.9.6 Prior to entering a US installation that handles explosives, POL products (ammo supply points on POL terminals). The contractor shall ensure that train crewmen have no matches or cigarette lighters in their possession while on the installation. For the purpose of fire prevention and the protection of cargo, equipment, and facilities of both parties, all The Contractor stations that handle cars loaded with POL or explosive shipments shall be equipped with proper and sufficient fire-fighting equipment. In line with this purpose, all locomotives of the contractor operated in and out of US military installations shall have appropriate fire extinguishers installed.

1.10. Hours of Operations:

1.10.1. Hours of Operation: The Contractor shall perform the work from Sunday through Saturday whenever railcar movement requests are required.

1.11. Payment:

1.11.1. Freight Movement: (See the Attachment A)

Calculation of payment: Basic Charges X Additional Charges + Extra Charges, if necessary.

a. Basic Charges: Freight Rate X Equipment Weight (M/T) X Distance (Km)

b. Additional Charges: 1 + Surcharges – Discount

c. Extra Charges: Apply for returning empty railcar(s) and speed limit rate, if necessary.

1.11.1.1. Basic rate: The basic rates will be applied to in accordance with the Contractor fright movement regulation and the list of Charges. The rates, charges, and fees identified in the Schedule of Rates, Fares and Charges will reflect the Military tariff rates of KORAIL and are warranted to be at least as favorable to the US Government as to any other users.

1.11.1.2. Application of Charges and Fares: All charges and rates will be applied for the related Contractor regulation and policies such as freight movement articles, stipulation and Rail Movement Guidance for USFK etc.

1.11.1.3. When freight is loaded on US owned railcars, the Contractor will provide a discounted rate to the US Government that is agreed upon by the US Government and the Contractor.

1.11.2. Passenger Railcar:

Calculation of payment:.

a. Connect only for Passenger Railcar(s): Minimum Cost: KW4,073,000 (One (1) -Six (6) railcars)

b. Mixed with Flat railcars and a Passenger Railcar: Distance (KM) X Unit Price X 20% - One Pax Cost One Pax Cost X 72 (Capacity of Pax in one Passenger Railcar)

1.11.2.1. Mixed Special Train Service: The Contractor shall furnish a special train for the combined movement of passengers and freight. The request shall be submitted to the Contractor no later than 2 weeks in advance.

1.11.2.2. The minimum charges for the mixed special train shall be determined as follows.

1.11.2.3. The minimum charge for a special train with either passengers or freight will be determined by whichever is greater in terms of number of rail cars on the train.

1.11.2.4. In the event the number of passenger cars and freight cars is equal, the rate will be separately calculated for the passenger and freight.

1.11.2.5. The minimum charges for passenger railcars is KW4,073,000. The minimum cost is applied when we connect 1 – 6 passenger railcars.

1.11.3. Maintenance and inspection charges for US owned flatcars: (See the Attachment B)

There have four (4) key charges: Maintenance Charges (6month, 1year, 2years), Maintenance Operating Charges, Components/Parts charges and Non-Schedule maintenance (See the Rate Schedule for more details).

1.11.3.1. The charges will be applied for the related Contractor maintenance regulation and policies such as maintenance articles and stipulation of US owned flatcars.

1.11.3.2. When the Contractor provides the following parts, the US Government shall pay the cost of the parts. However, the Contractor can’t provide any new parts, the Contractor shall provide used and recycled parts and the cost will be 80% of the costs of new parts. To use the used and recycled parts, the Contractor must get advanced approval and permission by the 25th Trans BN.

1.11.3.3. Key Components: Wheel assembly parts, wheel, axle, coupler, draft gear, triple valve, bolster spring, side frame, brake beam, bolster and rolling bearing etc.

1.11.3.4. Maintenance Operating Charges: Apply for the charges when actually conducting railcar operations and KORAIL check the condition of railcar(s) before/after operating the railcar mission(s). Calculate in monthly basis and calculate the number of railcar per month X Unit Price (Current rate: W9,749).

1.11.3.5. Non-Scheduled Maintenance: Apply for US railcars are required urgent maintenance or discovered any problems while operating railcars. The same way of calculating will be applied for the charges but the calculation will reflect actual input man-power.

1.11.3.6. Rail Distance Table: (See the Attachment C)

1.11.4. Payment Process:

1.11.4.1. The Contractor will submit invoices at the unit prices stipulated in the schedule of rates, charges and fares to the 25th Trans BN every two weeks or at more frequent intervals as deemed necessary by the 25th Trans BN for verification and certification for satisfactory services rendered and accepted. The 25th Trans BN will forward invoices to the 175th Finance and Accounting Offices-Korea for payment through 19th ESC.

1.11.4.2. Invoices will be submitted in six (6) copies by The Contractor and will be identified by GBL, BAS, TR number, date of GBL, BAS or TR and Amount and shall be supported by properly executed GBL, BAS, or TR(Copy No 1) for services rendered.

1.11.4.3. Except for cases in which there are unusual circumstance, payment will be made by the 175th Finance & Accounting Offices-Korea within 15 working days from the date of receiving the invoice at that office, providing that the invoice and supporting documentation for payment.

1.11.4.4. Regardless of above articles, the Contractor shall submit to the 25th Trans individually the GBL which guarantees the attached expense invoice fund document to read “LCS FUND” for verification and certification for service satisfactory rendered and accepted. The verified invoice by 25 Trans will forward to ROK MND through 19th ESC for payment.

1.11.5. Invoice: An invoice is a written request for payment under the contract for services rendered. An invoice must include as applicable the following:

Invoice Number Invoice Date.

Name of Carrier.

Contract Number.

GBL, BAS or TR Number, with Amount.

Total Amount of Invoice.

Name and address to which payment is to be sent.

Name, title, phone number and mailing address of person to be notified in event of a defective invoice.

Original of GBL, BAS or TR supporting the invoice amount.

1.12. Special Provisions for Emergency situations: Upon request, the Contractor provides trains and enough passenger cars to evacuate all US Department of Defense and US Government affiliated civilians from Area I (DONGDUCHEON and UIJONGBU areas to final destination within 12 hours of notification.

PART 2

DEFINITIONS & ACRONYMS

2. DEFINITIONS AND ACRONYMS:

2.1. DEFINITIONS: As used throughout this contract, the following terms have the meaning as set forth below:

2.1.1 Bad Order Car – A rail car that has been determined by a qualified rail car inspector of the Contractor (or US) to be unsafe for operation and in need of repair due to deficiencies on any component, body, or equipment of the car.

2.1.2 Bill for Accessorial Service (BAS) – USFK Form 79-EK, is a serially numbered, Bilingual and accountable document. This document shall be issued by the installation transportation officer (ITO). It shall be used as a basis for certifying a demurrage bill or bill for cancellation submitted by the Contractor forms. This document shall also be issued to document the payment for rail car maintenance service/component parts ordered from the Contractor.

2.1.3 Box Car – A freight car with enclosed sides and a roof. Doors are built in the sides and are lockable. This type of car is used for general service, and especially for freight which must be protected from the weather and pilferage.

2.1.4 Bolster (Truck) – A cross member in the center of rail car truck on which the car’s body rests.

2.1.5 Bearing (Journal) – A combination of rollers and braces or a block of metal, usually brass or bronze, in contact with a journal, on which the load of metal, usually brass or bronze, in contact with a journal, on which the load of freight and the car body rests.

2.1.6. Brake Beam – An immediate supporting structure for the two brake heads and break shoes acting upon any given pair of wheels of a rail car.

2.1.7. Brake shoes – A piece of metal with curved inner surface, held against a wheel to produce braking action on a rail car.

2.1.8 Commitment – Action by the duly designated agent of the 25th Trans BN requiring the Contractor to arrange and prepare transportation or maintenance or rail cars (US owned) for the US Government. Upon this action by the 25th Trans BN, the Contractor shall arrange and provide transportation or maintenance service as specified. Each commitment shall be identified by a TMR or MRN number as appropriate.

2.1.9 Coupler – A device installed on each end of a rail car which connects one car with another, maintains the connection, and then disconnects the cars.

2.1.10 Carload freight – Freight of all commodities in any quantity loaded in any type of freight car provided by the Contractor or US Government. Carload freight is subject to the charge as specified in Schedule of Rates.

2.1.11 Rate Distances – Computation for movement of carload freight shall be made based on the shortest distance (kilometer) officially published at the time of service regardless of route actually traveled, unless the specific route is specified by the 25th Trans BN(MC).

2.1.12 Cancellation Charge – A charge assessed by the US Government when a rail car is ordered, spotted, and cancelled by the US Government.

2.1.13 Concealed Damage – Damage to the freight which appears to be in good order externally.

2.1.14 Temporary relocation – Placement of a freight car at a point other than the designated loading or unloading track or warehouse due to convenience of the US Government.

2.1.15 Deadhead Movement – Movement of an empty rail car (passenger and freight) by the Contractor between points specified by the 25th Trans BN at the expense of the US Government.

2.1.16 Dome Cover – A cap over the vertical cylinder attached to the top of a tank car which permits the tank proper to be filled to full cubical capacity. This cap shall be equipped with a device which shall allow application of car seal.

2.1.17 Draft Gear – A unit that forms the connection between the coupler rigging and center sill of a rail car. This connects the couplers to the car under frame and cushions the shock generated when cars are coupled or train speed is suddenly changed.

2.1.18 Flat Car – A freight car having a floor laid over the sills, without any housing or body above.

2.1.19 Freight – US Government property requiring transportation services pursuant to this contract.

2.1.20 General Cargo – Freight of all types and description other than bulk POL, explosive, and perishable items.

2.1.21 Gondola – A freight car with sides and ends, but without a top covering.

2.1.22 Home station – Location specified herein for the purpose of storing US Government owned railcars when not in use.

2.1.23 Handbrake – A braking apparatus with which all cars are equipped and with the application of brakes by hand.

2.1.24 Individual Travel – Passenger travel by a person or a group of passengers performed on the Contractor regular train in effect at the time of travel.

2.1.25 Installation Transportation Officer (ITO) – An individual who is authorized to request services to the 25th Trans BN and execute transportation documents obligating US Government funds for service rendered by the Contractor. The ITO has no authority to commit or order for the service to the Contractor directly.

2.1.26 Journal Box – The metal housing which encloses the journal of an axle and journal bearing and wedge and holds the oil and packing for lubricating the journal.

2.1.27 Loading – The physical movement of freight from a general location into or onto a rail car. This includes blocking, bracing, and sealing to secure the freight within the rail car for protection during transportation.

2.1.28 Minimum Charge – The cost assessed by the US Government for a carload of freight or special train service, when a total cost computed with the basic rate multiplied by the kilometer distance involved for a loaded car or combination of the costs for a group of cars moving on a special train does not reach the minimum charges specified in the Schedule of Rates. The computation of costs for a loaded car or combination of a group of cars surcharges, such as switching, express, oversize cargo, shall not be included.

2.1.29 Oversize Freight – An individual item under the Contractor freight business regulation article 56 or cargo loaded on freight car protrudes beyond the ends and sides of rail car floor.

2.1.30 Passenger Coach – A rail car designed to transport passengers, equipped with seats, toilet facilities, and air-condition & cooling devices.

2.1.31 Special Train – A passenger or freight train operated by the Contractor upon commitment by the 25th Trans BN to move passenger equipment or freight cars for the exclusive use of the US Government. The schedule of such a train shall be established on an individual case basis to meet departure times and routes specified by the 25th Trans BN.

2.1.32 Switching – The movement of rail cars by the Contractor from one location to another in order to spot or locally transport to, between or within US military installations and the Contractor station serving for the installations.

2.1.33 Spotting – Placement of rail cars by the Contractor at the location designated by 25th Trans BN / Consignor / Consignee for loading or unloading when notice thereof is given to the Government.

2.1.34 Shipment – A lot of freight offered for transportation from consignor to a consignee under a single order pursuant to this contract. A shipment is identified by a TMR number issued by the 25th Trans BN

2.1.35 Side Frame – The longitudinal part of rail car’s structure which is on the outside of the wheels and extends from one axle to the other, and to which the journal boxes and bolsters are attached or form a part thereof.

2.1.36 Transportation Movement Release Number (TMR) – The authorization issued by the 25th Transportation BN for movement of freight by transportation committed by that organization, which consists of numbers and symbols. This number is issued on each shipment and is entered on all transportation documents (GBL, TCMD and DD Form 250) to prove that the shipment is properly authorized, thus obligating US Government funds.

2.1.37 Movement Control Team(MCT) – A field representative of the 25th Trans BN who receives and screens all transportation requirements from units (ITOs) located in its assigned area, processes these requirements through channels to obtain approval of CDR, 25th Trans BN, (monitors the shipment to ensure the transportation service rendered by The Contractor is carried on in the manner prescribed by the 25th Trans BN , and advise/assists consignees in completing shipments including all necessary coordination between the consignor/consignee and the local Contractor representative. The same abbreviated designation used by the US Air Force means Traffic Management Office. These offices are located at each Air Base and perform a similar function for the Air Force. .

2.1.38 Transportation Control and Movement Document (TCMD) – DD Form 1384 is used as documentation for shipments of other than bulk POL products for which DD Form 250 is used in Lieu of TCMD and is the basis for issuance of a GBL when contractual transportation is used. Issuance of this document is required by DTR 4500.9-R

2.1.39 Tank Car – A freight car with a tank body for transporting liquids and POL products.

2.1.40 Unloading – The physical movement of freight from the rail car to a general location.

2.1.41 U.S. Government Bill of Lading – USFK Form 79-3EK is a serially numbered, bilingual, and accountable document. This document is required for procurement of transportation from the Contractor pursuant to this contract. This document when properly issued by the consignor provides routing, consignor, consignee, commodity, weight, cube, appropriation chargeable, and TMR number. When signed by the consignee, it becomes a legal document for the Contractor to claim rates and charges for services rendered from the US Government.

2.1.42 Type and interior of passenger cars: It will follow the Contractor passenger movement rules that decide the type and interior of passenger cars.

2.2. ACRONYMS:

PART 3

GOVERNMENT FURNISHED PROPERTY, EQUIPMENT, AND SERVICES

3. GOVERNMENT FURNISHED ITEMS AND SERVICES:

3.1 POL Tank Cars: None.

3.2 Guard Car: None.

3.3 US Heavy Flatcars: 121ea (70ton capacity).

3.4 US Low Flatcars: 14ea (70ton capacity).

3.5 US Deep Well Flatcars: 3ea (60ton capacity).

3.6. Location of railhead at USFK compounds:

- Camp Casey.

- Camp Humphreys.

- DRMO Gimcheon.

- Camp Carroll.

- BSC.

- Pier #8, BUSAN

- OSAN AB

- GUNSAN AB.

PART 4

Commitment (Railcar Movement)

4.1 Commitment of Services:

4.1.1. Commitment for services under this contract shall be coordinated by the local Movement Control Team (MCT) of the 25th Trans BN. The commitment will be confirmed by the 25th Trans BN. The US Government will not be responsible for payment of services not rendered/committed by 25th Trans BN.

4.1.2. Time: Commitment of the Contractor service will be made on a daily basis, normally 1 week prior to the required spot time. When oversize equipment is being shipped (Special Train), the request shall be submitted to the Contractor no less than 2 weeks prior to the required spot time.

4.1.3. Place: The commitment will be presented in writing to the Contractor at the point of origin train station where the movements requested by the origin MCT. The form provides information as to the consignor, consignee, destination, weight, cube, type of commodity to be transported, type and number of rail cars required, and spotting time and location.

4.1.4. Receipt: The MCT will obtain the signature of the Contractor’s agent on all copies. The original will be left with the Contractor, one copy will be returned to the shipping agency, and one copy will be kept on file with the MCT. The signature of the Contractor representative on the form will constitute evidence for receipt of the commitment by the Contractor. In the event of any special circumstances/requests, the 25th Trans BN will contact the Contractor’s Military Cooperation Office if necessary.

4.2. Performance Procedures:

4.2.1. Equipment: In performing freight movement services, the Contractor shall provide the required types of railcars that are available in its system at the time of commitment for the services; i.e., US Government owned, US Government leased or the Contractor railcars as specified by the 25th Trans BN. Primarily, the types of cars to be provided from the Contractor resources shall be, but are not limited to, box cars, gondolas, and flat cars. The Contractor shall ensure that only suitable cars are furnished for shipment and safe for movement. Each car shall be inspected by the Contractor prior to spotting to ensure conformance to the Contractor’s regulation and policies.

4.2.2. Time and Location: The Contractor shall spot the required rail cars at the time and location as specified by the Movement Request.

4.2.3. Spur Clearance: When the Contractor spots empty cars for loading, The Contractor shall coordinate with the MCT for arrangements with the shipping agency for opening gates and clearing personnel or obstructions in the right of way along the spur tracks.

4.2.4. Shipper Inspection: Upon spotting rail cars, the shipping agency or 25th Trans BN will conduct an inspection of the cars to determine the suitability for loading of intended freight. Any of the cars spotted which fail to meet the inspection criteria will be immediately replaced by the Contractor with a suitable rail car(s). No demurrage or cancellation charge is incurred in connection with such rejection.

4.2.5. Condition of Loading and Unloading.

4.2.5.1. Loading and unloading of rail cars will be performed by the US Government. All freight other than vehicles shall be shipped per the consignor’s report of weight, load and count.

4.2.5.2. The Contractor has the right to inspect the cars loaded by the US Government to ensure the protection of freight for safe movement. Visual inspection of the load shall be made only on cars where the load is accessible for such inspection. For closed and sealed cars, visual inspection of the seals and car exterior only shall be made. It is US Government’s responsibility to ensure all vehicles with a hatch be secured both internally and externally (use wire) during loading, unloading and transit. US Government will provide documentation verifying the hatch tie down has been completed to standard (PAM 55-2, Tie-Down Guidance issued by 25th Trans BN). In the event any loaded car is rejected or when freight shifts because of improper blocking or bracing, which requires correction or reloading, the Contractor shall inform the MCT of the reasons for such rejection or load condition. If the notice is made prior to the Contractor’s receipt for such load, the US Government will correct the loading and bear the expenses for such load correction as necessary. In the event freight shift or deficiencies in tie-down or dunnage are found after receipt of shipment is acknowledged by the Contractor, The Contractor shall correct the condition, reload and will bear the expenses thereof.

4.2.5.3. The US Government will load rail cars with safety and security of the freight in transit. Loading of rail cars with vehicular equipment and containers on railcars in conformation with the procedures stipulated in US Army TM 55-601 and 25th Trans Pamphlet 55-2 shall be accepted by the Contractor. The Contractor shall also accept the railcar loaded with the following commodities, when they are loaded as described below:

4.2.5.4. Bundled Lumber:

a. Staking and Tie-Down – there will be a minimum of two stakes on each side of the rail car per length of bundle.

Tie-Down – A wire tie will be looped between the stakes positioned on opposite sides and shall be placed across the top of each bundle loaded on the car. Eight strands of No. 8 gage wire will be used for this purpose. In addition, a minimum of two tie-downs with eight strands of No. 8 gage wire will be looped from one stake pocket to the other on the opposite side of the car to tie down each bundle of lumber to the car floor.

b. Poles (long tapering piece of wood):

Poles shall be placed lengthwise on the car and positioned by alternating tops and bottoms to ensure even distribution of weight on the car.

Stakes – there will be a minimum of four stakes on each side of the car.

Tie Down: A tie will be looped between the stakes positioned on opposite sides of each other and shall be placed over the top of the load. Eight strands of No.8 gage wire shall be used for this purpose. Additional strands should be used for exceptionally heavy loads.

If the height of the load exceeds 1.5 meters, another tie-down (as described in the preceding sub Paragraph) will be applied at 1/3 of the height of the total load. A minimum of two tie-downs is required per load.

A minimum of three tie-downs using 18 millimeter or more diameter steel cable with clamps or turnbuckles (or equivalent strength wire tie) will be looped from one stake pocket to the other on the opposite side of the car to tie the load to the car floor.

Tie-down of Tanks: The tie-down of tanks includes completely locking the position of turret rotation and the gun barrel with wire lopes.

4.2.6. When freight to be shipped has apparent damage, the extent of such damage will be noted on the Bill of Landing. Unless noted on the Bill of Lading, items loaded on a freight car will be presumed to be in apparent good order (concealed damage excepted).

4.2.7. GBL: Upon completion of loading the ITO, the shipping agency will prepare a GBL based upon information and authority provided in the TCMD covering the shipment. The GBL with the TCMD will be presented through the MCT to the Contractor stationmaster. This will be considered as official release of the shipment for movement.

4.2.7.1. A GBL is issued by US Government per train movement.

4.2.8. Receipt of Freight Shipments: The signature and official stamp (dojang) of the employee or agent of the Contractor affixed on all copies of US Government Bill of Lading shall constitute evidence of receipt for the freight that was taken over by the Contractor.

4.2.9. Custody: Responsibility for custody of the freight by the Contractor shall be effective when the freight is picked up at origin and will terminate when the car is spotted or constructively placed at the destination and notice is given to the consignee. The Contractor shall exercise maximum efforts to ensure that sufficient protection is provided to safeguard all freight moving under the terms of this contract.

4.2.10. Bad Order Car

4.2.10.1 If a railcar that loaded US Military equipment is found to be mechanically inoperable after the receipt of shipment has been accomplished by the Contractor, reloading onto an operable railcar shall be accomplished by or at the expense of the Contractor, except when such reloading requires a special facility, installation, equipment and handling of cargo beyond the Contractor’s capacity. Determination as to the above mentioned exception will be decided upon a mutual agreement and on an individual case basis. When it is determined by both parties and the Contractor is not capable of reloading, the US Government will perform the reloading.

4.2.10.2. In the event it is determined by the Contractor that deficiencies can be fixed without trans loading, movement of the loaded car between points for repairs shall be done by the Contractor.

4.2.10.3. In any case where a loaded or empty US owned or leased railcar has to be dropped off from the train for repairs while enroute on account of a bad order, the Contractor shall immediately notify to the nearest MCT of the 25th Trans BN (MC). The notification shall include the following information; car number, commodity loaded, origin, destination, GBL number, location of the car, and reasons thereof, to include the expected repair time.

4.2.10.3. If an enroute US owned or leased railcar requires rerouting by the Contractor to its maintenance facility for repairs, such rerouting shall be coordinated by the Contractor with the nearest MCT providing the location where such change is to be made. In this case, the US Government will be responsible for movement costs covering only the distance from the point of origin specified on the GBL to the location where the rerouting is affected. Upon completion of the repair, the Contractor shall coordinate with the MCT that will determine the point to which the repaired car is to be moved.

4.2.11. Destination Spotting: Upon arrival of the shipment at its destination, the Contractor shall immediately notify the destination MCT serving as the consignee. In coordination with the MCT, the Contractor shall make all possible efforts to ensure the immediate spotting of the arrived rail cars at the location designated by the MCT. In case a car cannot be spotted or placed at a location designated by the consignee, due to inability of the consignee (i.e., congestion of, un-serviceability of the spur of the consignee, etc.), it shall be placed at a location within the destination station yard limits, and shall be handled in accordance with instruction from the MCT.

4.2.12. Joint Inspection: When the cars are spotted at the designated unloading point, the Contractor shall conduct a joint inspection with the representative of the consignee to ascertain the condition of shipment and to verify whether or not the shipment sustained damage or loss while in transit. If no deficiencies are noted the consignee will accept the cars for unloading.

4.2.13. Defects Noted Before Unloading Started:

4.2.13.1. In the event of damage to the freight is observed or suspected, if seals are broken on enclosed cars, or when the Contractor seals have been applied in lieu of US seal numbers listed on the GBL, the consignee will request that the MCT provide the Contractor representative with an option for a joint inspection as soon as possible. Such a request will be conducted prior to breaking of seals and/or unloading of car, if indications of discrepancies are evident at that time. The unloading operation will be postponed for a reasonable time to allow a Contractor representative to be present.

4.2.13.2. When the Contractor is requested by the consignee through the MCT at 25th Trans BN to provide a representative, the Contractor shall immediately furnish his representative at the location where the unloading of the freight is taking place and conduct joint inspection. A reasonable period of time will be allowed for the Contractor investigation, but this period will not be considered as a part of free time allowed for unloading. If additional time is required by the Contractor, an extension of free time will be obtained in writing from the local Contractor stationmaster.

4.2.13.3. In the event any damage to or loss of freight is noted during the inventory, the consignee will accomplish the Bill of Lading promptly and note on the reverse side in the original, copy 5, and copy 7 and discrepancies determined at that time. A memorandum report of discrepancy will be accomplished, signed by representatives of the consignee and the Contractor and attached to the GBL providing a copy of the report to HQ, 25th Trans BN through local MCT. Discrepancies noted on the reverse side of the GBL will constitute notification to the Contractor that a discrepancy in a shipment exists.

4.2.14. Defects Noted After Unloading Started.

4.2.14.1 If a discrepancy is discovered during or after an unloading operation, the Contractor destination stationmaster or his representative will be requested to make a joint inventory inspection as soon as possible after discovery, and proceed per above.

4.2.14.2. If discrepancies are noticed during unloading operations or thereafter and a notification is given to the Contractor destination stationmaster or his representative within 14 days after delivery of the car, a valid claim may be made based on the actual evidence causing the discrepancies.

4.2.14.3. Under the following circumstances, any loss, damage or incident to the shipment will be the responsibility of the US Government and no claim will be initiated against the Contractor:

4.2.14.3.1. When a carload arrives with the seals intact, the seal number corresponding with that listed on GBL, and there is no other circumstance to which shortages may be attributed, such as, but are not limited to, evidence of forced entry through floor, sides, of roof, or end of the car.

4.2.14.3.2. When packages or boxes, known to have been packed by the shipping agency or known to be as originally packed at place of manufacture, arrive with no external evidence of tampering or repacking in transit, and when there are no other circumstances to which the shortage may be attributed.

4.2.15. Absolving incidents. The US Government will be notified promptly (No later than 90 days) by the Contractor after the discovery of any incident which was in any way at the fault of the US Government. No contractual claim will be authorized in the event of this type of incident.

4.2.16. Meeting. If necessary and upon request, the 25th Trans BN and the Contractor will get a meeting if either side requests a meeting to settle a claim.

4.2.17. Claim payment. The Contractor shall pay all claims promptly to the 175th Finance and Accounting Office – Korea.

4.2.18. Accomplishment of GBL. Upon completion of unloading, the consignee will immediately complete the original and copy #7 of the GBL is submitted to the destination stationmaster normally within 3 days. Under no circumstance will the accomplishment of the GBL be delayed more than 15 days after spotting of the freight for unloading.

4.2.18.1. The consignee will notify the Contractor stationmaster through the destination MCT regarding the completed time of unloading via the most expeditious communication system. The time of notice will be considered as evidence for release of empty Contractor railcars.

4.2.18.2. The signature of the US Government transportation officer or agent on the No. 1, No 5 and No. 7 copies of the US Government Bill of Lading will constitute prime evidence of receipt for the freight delivered to the consignee (concealed damage excepted).

4.2.18.3. In the event an original GBL is misplaced and has not been found within 15 days after delivery, it will be regarded as lost or destroyed. The Chief of the Contractor Intelligence Technical Office shall submit a request for issuance of USFK Form 79-6EK (Certificate in Lieu of Lost US Government Bill of Lading) to the CDR, 25th Trans Bn. The request for issuance of USFK Form 79-6EK will be made within 120 days after arrival of the shipment at its destination. The 25th Trans BN (MC) will ensure that issuance of USFK Form 79-6EK is made within 60 days after receipt of such request from the Contractor.

4.2.19. Shipment of Vehicles. In addition to the provisions above, the following procedures are applicable for vehicle shipments:

4.2.19.1 A joint inspection shall be made upon arrival of a locomotive by representatives of the shipper and the Contractor. During this inspection, both parties shall verify the presence of component parts listed on the Continuation sheet (USFK Form 79-3-1EK) of the US Government Bill of Lading issued on all wheeled vehicle shipments. For all tracked vehicles by rail will be shipped with hatches sealed and shut by the US Government. Seal number will be annotated on the GBL.

4.2.19.2. The same inspection procedures shall be applied when the railcar is spotted at the destination railhead. . When tracked vehicles arrive with seal intact, they will be accepted by the consignee subject to concealed damage procedures for other freight (Para 3.1.2.11 through 13). Representatives of the consignee and the Contractor shall affix their signatures in the appropriate blocks provided on the GBL (USFK Form 79-3-1EK).

4.2.19.3. The spotting and/or removing of loaded railcars shall be performed expeditiously regardless of the time of day.

4.2.19.4. The US Government will consolidate all vehicle shipments headed to the same destination onto a single train. The US Government will not break down shipments of 15 carloads into smaller separate trains. Each train will be no more than 15 carloads per movement.

4.2.19.4.1. The Contractor shall be given a minimum of 14 days advance notice on such requirements by the US Government.

4.2.19.4.2. Under the above conditions, the Contractor shall establish and operate a special train to exclusively move vehicle shipments. This train shall be scheduled as an express train without stops.

4.2.19.5. Incidental Services to Perform Freight Movement Service. In addition to performing the freight movement services, the Contractor shall furnish the following services upon commitment by the local MCT of the 25th Trans BN (MC) in the manner specified herein.

4.2.19.6. Operation of US Government-Owned Rail Cars:

4.2.19.6.1. The US Government will furnish US Army owned rail cars and the Contractor shall take custody of, operate, and maintain them. When not in use, the railcars will be retained at designated home stations. However, if the railcars set to be staged are over the capacity of the Contractor, the staging station adjustment will be determined between both parties.

4.2.19.6.2. The US Government owned rail cars shall be exclusively used for US Government shipments, unless otherwise committed in writing by the CDR, 25Trans BN on an individual basis.

4.2.19.6.3. The US Government reserves the right to remove US Government owned rail cars at any time (any portion of or the entire fleet), provided that the Contractor receives adequate notice and railcar removal time. The Contractor will expeditiously transport those removed cars to a point designated by the CDR, 25th Trans BN.

4.2.19.6.4. When it is considered by the Contractor that good and sufficient cause exists to deadline any of the US Government owned cars due to the fact that the car is unserviceable or inoperable, such car shall be removed from service. The Contractor shall then notify the 25th Trans BN for a joint inspection to determine whether or not the car is repairable. Upon determination by inspection that any railcar is unserviceable, such car shall be moved to a point designated by the 25th Trans BN.

4.2.19.6.5. The same terms of service will be applied regardless of whether the US Government uses its own railcars or the Contractor owned railcars.

4.2.19.6.6. Title to and marking of all US Government owned rail cars will remain with the US Government.

4.2.19.7. As necessary, the US Government may request the Contractor guard car(s), to ensure the safety of the movement of cargo that requires particular security and care enroute (i.e., explosives, highly sensitive items, highly pilferable items, etc.) as determined by the US Government.

4.2.20. Special Train Service:

4.2.20.1. Upon commitment by the 25th Trans BN, the Contractor shall provide special train service for movement of US Government sponsored shipments exclusively between specified points. Such service shall be operated at a pace equal to the fastest freight train service now operated or that may be scheduled by the Contractor. It is included for the minimum 2 hours before departing from the origin or after arriving to the destination.

4.2.20.2. Special train operations, except emergency operations involving national defense, public emergency or special military cargo as determined by the 25th Trans BN, shall be restricted to the minimum 70% of the locomotive’s capacity.

4.2.21. Oversize Freight Movement:

4.2.21.1. If an individual piece of freight loaded on a rail car exceeds the limitation of weight, length, or cube established in the Contractor regulation, it is subject to applicable surcharge indicated in the Schedule of Rates.

4.2.21.2. When an idler car (i.e., an empty car used to accommodate the protruding length of freight beyond the end of the loaded car) is used, the idler car shall be considered a loaded car and the surcharge for oversize freight shall be applied.

4.2.22. Switching Service:

4.2.22.1. Upon request by the 25th Trans BN, the Contractor shall provide Switching service to spot or remove loaded rail cars as well as empty cars to and from the US installations. The MCT will furnish detailed switching requirements in writing. The Contractor will closely coordinate with the MCT to ensure that the switching service is provided in a strict manner and that it is adhering to the time and location as specified by the MCT. During the switching operation within the US installations, the Contractor shall follow the posted US installation warnings and/or safety rules.

4.2.23. Computation of Rail Distances:

4.2.23.1. Distance between the origin and destination of a rail car movement committed under the terms of this contract shall be computed by the Contractor station that services the shipping agency. The distance to the consignee shall be over the shortest route available, unless a specific route is directed by the 25th Trans BN and so indicated on the GBL.

4.2.23.2. The distance mentioned above shall be expressed in Kilometers.

4.2.23.3. Kilometer distances between points of a shipment shall be obtained from the Kilometer Table for Freight Tariff, officially published by the Contractor, and in effect at the time the service is ordered by the 25th Trans BN. Also, the spur track distance shall be determined through a separate kilometer table.

PART 5

Commitment (Maintenance of US owned railcars)

5.1. MAINTENANCE OF US ARMY-OWNED RAIL CARS

5.1.1. General:

5.1.1.1 The Contractor shall provide all personnel, facilities, equipment, transportation, and materials (except US Government Furnished Items) and perform all echelons of maintenance as specified herein on all US Government owned rail cars furnished pursuant to this contract. This service shall be performed in accordance with the provisions of rules and regulation of the Contractor titled “KORAIL Regulations for Maintenance and Repairs of Railway Passenger and Freight Cars”.

5.1.1.2. Scope: The maintenance service shall be processed in conjunction with “KORAIL Regulation for Maintenance and Repairs of Railway Passenger and Freight Cars.” ensure.

5.1.1.3. Standards: Performance of all types of maintenance shall be conducted by the Contractor in the same manner as for its own cars.

5.1.2. Maintenance Categories

5.1.2.1 Scheduled Maintenance: The periodic service for the specified items shall be performed in accordance with the regulation for maintenance and repairs.

5.1.2.2 Incidental Repairs: Necessary inspection shall be conducted when malfunction occurs or potential malfunction is suspected.

5.1.2.3. Special Maintenance: The service shall be conducted when the repair is required due to rail accident or when improvement, remodeling, or reproduction of part of the rail car is required.

5.1.2.4. Re-inspection: After scheduled maintenance is complete, the Contractor will guarantee free of charge maintenance service for 60 days. When any deficiencies or malfunction are noted within 60 days after performance of maintenance, railcars will return to the back shop for repairs. In the event any of those cars are required to return to the back shop for repairs, the repairs shall be completed at no additional cost to the US Government. If damaged is caused by the US Government’s negligence, the US Government will be charged for necessary repairs.

5.1.2.4.1. Completion Inspection: Upon completion of maintenance service on each car, the Contractor shall conduct the completion inspection. Only those cars passed the completion inspection will be returned to service.

5.1.2.4.2 Alterations: No alteration, modifications, or rehabilitation of US Government owned railcars shall be made without prior written approval of the 25th Trans BN. When such changes approved by the 25th Trans BN are made, the US Government will bear the expenses thereof. The US Government agrees that neither alterations, modification, rehabilitation of the US owned railcars nor the addition of new rail equipment will be made without prior consent of the Contractor.

5.1.2.5. Records: The Contractor shall maintain such records for 3 years as indicated below on US Government owned rail cars. Such records will be maintained by the Contractor on their internal computer system and shall be made available to the 25th Trans BN upon request:

5.1.2.6. Reports: The Contractor shall submit a monthly report as of the beginning of each month, for the previous month’s maintenance, to the 25th Trans BN indicating the following information:

a. Car Number.

b. Type of maintenance.

c. Location of maintenance.

d. Date of completion.

5.1.2.6. Criteria for Maintenance Condition of Rail Cars: For all cars furnished by the Contractor for performing services under this contract, and in addition to or in consonance with general car maintenance required by the…