TRANSFARS PART 5552
SOLICITATION PROVISIONS AND CONTRACT CLAUSES
5552.204-9000 Notification of Government security activity and visitor group security agreements.
As prescribed in 5504.404-90(a), insert the following clause in solicitations and contracts:
NOTIFICATION OF GOVERNMENT SECURITY ACTIVITY AND VISITOR GROUP SECURITY AGREEMENTS (APRIL 2007)
This contract contains a DD Form 254, DOD Contract Security Classification Specification, and requires performance at a government location in the U.S. or overseas. Prior to beginning operations involving classified information on an installation identified on the DD Form 254, the contractor shall take the following actions:
(a) At least thirty days prior to beginning operations, notify the security police activity shown in the distribution block of the DD Form 254 as to:
(1) The name, address, and telephone number of this contract company’s representative and designated alternate in the U.S. or overseas area, as appropriate;
(2) The contract number and military contracting command;
(3) The highest classification category of defense information to which contractor employees will have access which must coincide with the level of classification granted to the company and cage code located in the Joint Personnel Adjudication System (JPAS);
(4) The installations in the U.S. (in overseas areas, identify only the APO number(s)) where the contract work will be performed;
(5) The date contractor operations will begin on base in the U.S. or in the overseas area;
(6) The estimated completion date of operations on base in the U.S. or in the overseas area; and,
(7) Any changes to information previously provided under this clause.
This requirement is in addition to visit request procedures contained in DOD 5220.22-M, National Industrial Security Program Operating Manual.
(b) Prior to beginning operations involving classified information on an installation identified on the DD Form 254 where the contractor is not required to have a facility security clearance, the contractor shall enter into a Visitor Group Security Agreement (or understanding) with the installation commander to ensure that the contractor’s security procedures are properly integrated with those of the installation. As a minimum, the agreement shall identify the security actions that will be performed:
(1) By the installation for the contractor, such as providing storage and classified reproduction facilities, guard services, security forms, security inspections under DOD 5220.22-M, classified mail services, security badges, visitor control, and investigating security incidents; and
(2) Jointly by the contractor and the installation, such as packaging and addressing classified transmittals, security checks, internal security controls, and implementing emergency procedures to protect classified material.
(End of clause)
5552.204-9001 Facility Clearance
As prescribed in 5504.404-90(b), insert a provision substantially the same as the following in solicitations:
FACILITY CLEARANCE (NOV 2011)
The offeror must possess or be eligible to obtain a facility clearance equal to the highest classification stated on the Contract Security Classification Specification DD Form 254 attached to this solicitation.
(End of clause)
5552.216-9000 Evaluation of offers subject to an economic price adjustment clause.
As prescribed in 5516.203-4(a), insert the following provision in solicitations subject to an economic price adjustment clause.
EVALUATION OF OFFERS SUBJECT TO AN ECONOMIC PRICE ADJUSTMENT CLAUSE (FEB 2009)
Offers shall be evaluated without an amount for an economic price adjustment being added. Offers will be rejected which: (1) in any way change the ceiling stipulated; (2) limit the downward adjustment; or (3) delete the economic price adjustment clause.
(End of provision)
5552.216-9001 Economic Price Adjustment based on Actual Cost of Fuel – Airlift
As prescribed in 5516.203-4(b), insert the following clause in solicitations and contracts when an economic price adjustment based on actual cost of fuel for airlift is anticipated and reporting will be accomplished per month.
Economic Price Adjustment based on Actual Cost of Fuel – Airlift (FEB 2009)
In order to protect the contractor and the government from significant market fluctuations in the price of fuel, an adjustment will be made based on actual costs incurred. Adjustments will be made as indicated below.
(a) Economic price adjustment (EPA) pursuant to this clause is limited to changes in the contractor’s cost for fuel only.
(b) Allowable fuel adjustments will be made upward or downward only if the price of fuel varies by more than one cent per gallon from the following pegged rate for fuel:
FUEL TYPE PEGGED RATE (Base Price)
(FILLABLE FIELD)
(1) When the average price per gallon paid by the contractor is greater than the established base price indicated above, the government will reimburse the contractor the difference between the price paid and the established base price.
(2) When the average price per gallon paid by the contractor is below the established base price indicated above, the contractor will reimburse the government the difference between the price paid and the established base price. Under these circumstances, the contracting officer will issue a demand letter and funds will be reimbursed as directed.
(c) Required reports for adjustments shall be received no later than 30 days after the month ends. A sample report format labeled, “Monthly Fuel Report Summary” is provided as an attachment to the contract.
(d) The actual average cost per gallon under this EPA clause shall be rounded to four decimal positions (e.g., $2.6308).
(e) For the contracting officer to consider a request for adjustment, the contractor shall submit data that clearly supports the request for adjustment. At a minimum, the contractor shall submit: 1) total mileage flown in performance of the USTRANSCOM contract 2) fuel costs associated with that performance, and 3) associated financial data or receipts, if requested by the Contracting Officer.
(f) Fuel adjustments will be made using the CLIN titled Fuel EPA Reimbursable. The following steps will be taken to determine the adjustment:
(1) The contractor’s fuel burn rate, established in the List of Aircraft in the contract, is multiplied by the total mileage flown in performance of the contract. In the case of a substitute aircraft not listed in the schedule, the lower burn rate of the substitute aircraft or the aircraft normally used in performance of the contract shall be used.
(2) The product is then multiplied by the difference between the average price per gallon paid and the established base price in the contract (also known as the variance).
Example:
Miles flown in support of the USTRANSCOM contract = 23,654
Burn rate for aircraft type (in schedule) = 4.21 gallons per mile
Base price of fuel established in the contract = $2.50
Actual average cost per gallon = $2.6308
Calculation:
Miles * Burn Rate * EPA Price Variance = Adjustment
23,654 * 4.21 = 99,583.34* $0.1308 = $13,025.50
ALTERNATE I (FEB 2009)
As prescribed by 5516.203-4 (b), when an economic price adjustment based on actual cost of fuel for airlift is anticipated and reporting will be accomplished per mission, substitute the following paragraph (c) to the basic clause.
(c) Required reports adjustments shall be provided on a per mission basis no later than __XX__days after completion of the mission. A sample report format is provided as an attachment to the contract.
ALTERNATE II (FEB 2009)
As prescribed by 5516.203-4 (b), when an economic price adjustment based on actual cost of fuel for airlift is anticipated for Civil Reserve Air Fleet (CRAF) International Services, replace paragraphs (b) through (f) of the basic clause with the following paragraphs (b) and (c).
(b) Allowable fuel adjustments will be made upward or downward when the price of fuel varies by more than one cent per gallon from the pegged rate established in the Uniform Rates and Rules.
(1) When the average price per gallon paid by the contractor is greater than the pegged price established in the Uniform Rates and Rules, the government will reimburse the contractor the difference between the price paid and the pegged price.
(2) When the average price per gallon paid by the contractor is below the pegged price established in the Uniform Rates and Rules, the contractor will reimburse the government the difference between the price paid and the pegged price. Under these circumstances, the contracting officer will issue a demand letter and funds will be reimbursed as directed.
(c) The fuel adjustment process shall be in accordance with Attachment 1 of this contract, Performance Work Statement, Appendix 3.
(End of clause)
5552.216-9002 Economic Price Adjustment based on DESC Established Prices of Fuel – Airlift
As prescribed in 5516.203-4(c), insert the following clause in solicitations and contracts when an economic price adjustment based on the Defense Energy Supply Center (DESC) established prices of fuel for airlift is anticipated.
ECONOMIC PRICE ADJUSTMENT BASED ON DESC ESTABLISHED PRICES OF FUEL – AIRLIFT (JUNE 2009)
In order to protect the contractor and the government against significant market fluctuations in the price of fuel, a monthly adjustment will be made based on the fuel price established by the Defense Energy Supply Center (DESC) for JP-8. Adjustments will be made as indicated in paragraphs (b) and (c) below and shall be taken against the CLIN titled Fuel EPA Reimbursable.
(a) Economic Price Adjustments pursuant to this clause are limited to changes in fuel.
(b) Allowable fuel adjustments will be made, upward or downward, only if the DESC price varies by more than (fillable field) % per gallon from the base price established in the contract (hereafter referred to as the “pegged price”).
(3) When the DESC price per gallon is higher than the pegged price, increased by the percentage identified above, the government will reimburse the contractor the difference.
(4) When the DESC price per gallon is lower than the pegged price, decreased by the percentage identified above, the contractor will reimburse the government the difference. Under these circumstances, the contracting officer will issue a demand letter and funds will be reimbursed as directed.
(c) Reporting requirements for adjustments are as stated in the contract.
(d) The Contractor shall promptly notify the Contracting Officer of the amount and effective date of each change from the pegged price for JP-8.
(e) For the contracting officer to consider any request for adjustment, the contractor shall submit data that clearly supports any request for adjustment. At a minimum, the contractor shall submit all required documents and follow all fuel adjustment guidelines indicated in the contract.
(f) The following steps are taken to determine an adjustment (if applicable in accordance with (b)(above):
(1) The contractor’s established fuel burn rate is multiplied by the total mileage flown in performance of the contract. In the case of a substitute aircraft, compensation will not be made to the prime or subservicing carrier for substitute service or subcontracted miles.
(2) The product is then multiplied by the difference between the DESC price and the pegged price.
Example 1 (Adjustment due):
Miles flown in support of the USTRANSCOM contract = 23,654
Burn Rate for Aircraft type = 4.21 gallons per mile
Pegged price of fuel established in the contract = $2.50
Variance identified in contract = 10%
Revised DESC price = $2.80
Calculation:
Miles * Burn Rate * EPA Price Variance = Adjustment
23,654 * 4.21 = 99,583.34* $0.30 = $29,875.00
Example 2 (No adjustment due):
Miles flown in support of the USTRANSCOM contract = 23,654
Burn Rate for Aircraft type = 4.21 gallons per mile
Pegged price of fuel established in the contract = $2.50
Variance identified in contract = 10%
Revised DESC price = $2.60
Calculation:
Miles * Burn Rate * EPA Price Variance = Adjustment
EPA Price variance is 4%, no adjustment is due
(End of clause)
5552.216-9003 USTRANSCOM Task and Delivery-Order Ombudsman
As prescribed in 5516.506, insert the following clause in all task order solicitations and contracts.
USTRANSCOM TASK AND DELIVERY ORDER OMBUDSMAN (JUNE 2009)
In accordance with FAR 16.505(b)(6), the individual identified below is designated as the USTRANSCOM Task and Delivery-Order Ombudsman. The ombudsman is an independent official designated to review contractor complaints and to ensure contractors are afforded a fair opportunity to be considered, consistent with the procedures in the contract. Consulting the ombudsman does not relieve the contractor from performance requirements in the contract, nor alter or postpone any timelines for any other processes. Interested parties should first address their concerns, issues, disagreements, and/or recommendations to the contracting officer for resolution. If resolution cannot be made by the contracting officer, concerned parties may contact:
Chief, Business Support and Policy Division
Telephone Number: 618-220-7021 FAX: 618-220-6248
(End of clause)
5552.216-9004 Economic Price Adjustment for Less Than Full-Planeload (LPL) Scheduled Services - Airlift
As prescribed in 5516.203-4(d), insert a clause that is substantially the same in all commercial contracts for less than full-plane load scheduled services when an economic price adjustment based on the Bureau of Labor Statistics, Producer Price Index for North American Industrial Classification System (NAICS) codes is anticipated.
ECONOMIC PRICE ADJUSTMENT FOR LESS FULL-PLANE LOAD (LPL) SCHEDULED SERVICES – AIRLIFT (NOV 2011)
In order to protect the contractor and government against significant market fluctuations, the unit prices shall be adjusted on (Day/Month – fillable field) of each Option Year beginning (Day/Month/Year – fillable field). The adjustment shall be based on the Bureau of Labor Statistics, Producer Price Index for North American Industrial Classification System (NAICS) codes for (insert NAICS index here and any applicable BLS product code). In the event publication of the index is discontinued, the parties shall agree upon an appropriate substitute index.
(a) Index figures subsequently revised by the Bureau of Labor Statistics (e.g., amending formerly released indices by removing or replacing components within the index, describing revisions by footnote or appendix, significantly altering the method of calculating the index, or any other method) shall not warrant a retroactive price adjustment under the terms and conditions of this contract.
(b) Price adjustments shall be executed via a contract modification.
(c) Any price adjustments under this EPA clause shall be rounded to two decimal positions (e.g. $1.50).
(d) The formula for determining the adjusted unit prices for the Option Year is –
( IN / IN-1 ) x PN = Adjusted Unit Price
Where:
PN = The current effective prices listed in the Schedule, where the subscript “N” represents the current contract performance period.
IN-1 = Index for the preceding period to the adjustment period (average of the index figures for the exact 12 month period prior to the adjustment 12 month period).
IN = Index for the Adjustment Period is the average of the index figures for the most recent 12 month period ending 4 months prior to start of the next option period
* * * * * * * * * * * * *
EXAMPLE:
Contract performance start date is 1 October 2011. The first EPA will be effective on 1 October 2012.
Sample Index:
|
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
Year |
|
|
|
|
|
110.1 |
111.3 |
107.8 |
107.9 |
107.3 |
106.7 |
106.7 |
Year |
106.9 |
106.0 |
106.0 |
106.2 |
109.4 |
109.4 |
109.4 |
109.4 |
109.6 |
111.2 |
109.5 |
112.2p |
Year |
113.4 |
118.0 |
117.8 |
118.0 |
118.0 |
118.6 |
118.7 |
119.1 |
119.5 |
120.0 |
120.9 |
120.9 |
Year
|
123.0 |
124.0 |
125.2 |
125.7 |
126.0 |
Note: The below figures are provided as an example only. The first example shows a sample increase from the base year to the 1st option year. The second example shows a sample increase from the 1st option year to the 2nd option year. This example assumes a base year beginning on 1 Oct 11 with a one-year period of performance and two one-year option year periods.
BASE YEAR (1 Oct 11 – 30 Sep 12) TO 1ST OPTION YEAR (1 Oct 12 – 30 Sep 13)
Example P N= $2.34, where subscript “N” = FY12
Example I11 = Avg from June 2010 through May 2011
(110.1+111.3+107.8+107.9+107.3+106.7+106.7+106.9+106.0+106.0+106.2+109.4)/12 = 107.7
Example I12 = Avg from June 2011 through May 2012
(109.4+109.4+109.4+109.6+111.2+109.5+112.2+113.4+118.0+117.8+118.0+118.0))/12 = 113.0
Example Adjustment: P13 = [(113.0/107.7) x $2.34] = [1.056 x $2.34] = $2.47
1ST OPTION YEAR (1 Oct 12 – 30 Sep 13) TO 2ND OPTION YEAR (1 Oct 13 – 30 Sep 14)
Example P N = $2.47, where subscript “N” = FY13
Example I12 = Avg from June 2011 through May 2012
(109.4+109.4+109.4+109.6+111.2+109.5+112.2+113.4+118.0+117.8+118.0+118.0))/12 = 113.0
Example I13 = Avg from June 2012 through May 2013
(118.6+118.7+119.1+119.5+120.0+120.9+120.9+123.0+124.0+125.2+125.7+126.0))/12 = 121.8
Example Adjustment: PFY14 = [(121.8/113.0) x $2.47] = [1.078 x $2.47] = $2.66
* * * * * * * * * * * * *
(e) In addition, carriers may waive an EPA increase that results in higher prices or any part thereof for the entire contract or identified CLIN(s). The adjustment percentage shall apply to all pricing within the identified CLIN(s). Secondly, if the carrier elects to do so, they can offer the Government an additional downward price adjustment, effective at the time of option exercise, in lieu of an increased EPA option year adjustment. A carrier may not waive a downward EPA adjustment.
(f) All EPA adjustment calculations will be based on the current year’s prices in the Schedule and the index calculations described above. A carrier shall not recoup previously waived EPA increases.
(End of clause)
5552.216-9005 Economic Price Adjustment for Scheduled Liner or Dedicated Services – Sealift
As prescribed in 5516.203-4(e), insert the following clause in commercial solicitations and contracts when an economic price adjustment based on marine and land fuel prices or currency exchange rates is anticipated for Scheduled Liner or Dedicated Sealift Service.
Economic Price Adjustment based on Actual Cost of Bunker Fuel, Diesel Fuel, and Currency Rate Fluctuations – Sealift (NOV 2011)
In order to protect the contractor and the government from significant market fluctuations in the price of fuel and Currency, an adjustment will be made based on actual costs incurred. Adjustments will be made as indicated below.
1. Bunker Adjustment Factor (BAF)
a. An allowance for fluctuations in marine fuel prices shall be paid to the Contractors or to the U.S. Government in accordance with the following:
(1) The allowance shall be paid per freight payable unit of cargo. For containerized goods these units are 20-foot equivalent units (TEU) and 40-foot equivalent units (FEU). For breakbulk cargo, they are measurement tons (MT).
(2) The Bunker Adjustment Factor is zero unless the one-month average fuel price is at least 20% higher or 20% lower (inclusive) than the baseline average fuel price. No bunker adjustment is payable on the routes not included in BAF Table 1 below.
(3) The compensation per freight payable unit shall be calculated as follows:
[(Monthly Avg fuel price of MDO x 5% + Monthly Avg fuel price IFO 380 x 95% - Baseline fuel price) x BAF Technical Factor] /6.50 (Conversion factor, Metric tons to barrels)
b. Baseline Fuel Price: The baseline is $225.00 for Norfolk and $225.00 for Los Angeles. The baseline is for a bunker fuel mixture of IFO 380 (95%) and MDO (5%). This baseline will apply to the base year and all option years.
c. Calculations: BAF shall be calculated using Norfolk (ex-wharf) prices except for routes below that shall use Los Angeles (ex-wharf) prices:
USWC to Far East
Hawaii - Far East
Hawaii - Kwajalein
USWC - Oceania
USWC - Middle East
(1) An average fuel price shall be computed by the Military Surface Deployment and Distribution Command (SDDC) for Los Angeles and Norfolk. This average price shall be calculated on or after the first of the month for the prior month and shall apply to shipments booked for sailings in the next month. The monthly computation of adjusted average fuel prices will be posted to the SDDC website no later than the 10th of the month prior to the month in which it will be applied. Example: The average fuel prices for calculation of BAF charges for March shall be based on bunker prices for the month of January.
(2) The scheduled month the vessel departs the load port at the time of booking shall determine the month for calculation of BAF charges.
(3) The source for bunker prices is Bunkerworld; http://www.bunkerworld.com/, which calculates bunker average monthly prices by port and fuel type. These prices are quoted in metric tons and shall be converted to barrels by dividing by 6.50. The IFO 380 and MDO average quotes shall then be averaged to calculate the monthly average fuel prices for Norfolk and Los Angeles.
(4) SDDC shall monitor, calculate and post BAF to the SDDC website.
d. Payment Procedures:
(1) For shipments paid using thethird party payment system (TPPS), the BAF shall be fixed at the time of booking and shall be based on the date the booked vessel is scheduled to sail. When BAF is payable, shippers shall include the applicable BAF amount (plus or minus) to all shipments paid to the Contractor via their own documentation and payment system at the time that the original transactions are sent to the TPPS. Contractors using the TPPS invoice procedure shall include the applicable BAF amount (plus or minus) in their invoice.
(2) For all shipments other than those paid using TPPS/ , Contractors are responsible for indicating on their shipment invoice whether a fuel payment is due them, whether no fuel payment is to be made, or whether a fuel payment is due SDDC. If a fuel payment is due the Contractor or SDDC, the Contractor shall compute the value of the payment (or credit) and indicate this on the shipment invoice. If there is no fuel payment, the Contractor shall indicate on the invoice “No Fuel Adjustment”. BAF for authorized agent shipments shall be paid using this process.
e. Application: The bunker fuel adjustment applies to fuel purchased by the Contractor from normal commercial suppliers and does not apply when bunker fuel has been provided or subsidized by the U.S. Government or foreign Governments.
f. Technical Factors and Freight Payable Units: The Technical factors and their freight payable units are shown below:
Route |
Route Description |
TEU |
FEU |
MT |
# |
Route Description |
Factor |
Factor |
Factor |
(FILLABLE FIELDS)
2. Fuel Adjustment Factor (FAF)
a. A Fuel Adjustment for inland transportation will be calculated and updated monthly and based on the national monthly average diesel fuel price as determined by the Department of Energy, Energy Information Administration (EIA). The diesel fuel prices published by the EIA may be found via the following source: EIA Website: http://eia.doe.gov
b. Baseline:
(1) The base period for determining the baseline diesel fuel price will be the month prior to the month the solicitation was issued. For option years the baseline will be the month prior to the month the Carrier Analysis & Rate Evalution (CARE) systems is opened for carriers to submit rates for that option year. In both cases the baseline used will be the national monthly average diesel fuel price from the EIA.
(2) A monthly national average diesel fuel price shall be posted by SDDC using the price published by the EIA. This average price shall be posted on or after the first of the month for the prior month and shall apply to shipments booked for sailings in the next month. The monthly national average diesel fuel prices will be posted to the SDDC website no later than the 10th of the month prior to the month in which it will be applied. Example: The average fuel prices for calculation of FUEL ADJUSTMENT SURCHARGE charges for March shall be based on diesel fuel prices for the month of January.
c. Fuel Adjustment Application:
(1) The fuel adjustment surcharge on the inland CONUS portion of shipments will be based on the shipment’s origin state and POE (port of embarkation) or the POD (port of debarkation) and the shipment’s destination state.
(2) For the purpose of determining the surcharge East Coast ports will include those within the states of Maine, New Hampshire, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia, North/South Carolina, Georgia, and Florida; Gulf Coast ports will include those within the states of Texas, Louisiana, Mississippi and Alabama: and West Coast ports will include those within the states of California, Oregon and Washington.
(3) A different fuel adjustment surcharge will apply, depending on the type of shipment. A shipment may be a container shipment, a breakbulk shipment with a weight/shipment unit less than or equal to 50,000 lbs., or breakbulk shipment where the weight/shipment unit exceeds 50,000 lbs. Carriers will select the appropriate table for determining the FAF applicable to a given shipment.
(4) The Fuel Adjustment Surcharge will be calculated on six zones. The zones encompass movements from West Coast ports to West Coast states, a movements from West Coast ports to rest of U.S., movements from East Coast ports to East Coast states, movements from East Coast ports to rest of U.S., movements from Gulf Coast ports to Gulf Coast states, movements from Gulf Coast ports to rest of U.S. Additionally, the Fuel Adjustment Surcharge will be broken out by:
Container Shipments
Refrigerated Container Shipments
Breakbulk Shipments
Breakbulk Shipments Exceeding 50,000 lbs.
d. The equations for calculating the Fuel Adjustment Surcharges for Container shipments are:
EC to EC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*Truck gallons/container mile*Average haul EC ports to EC points
GC to GC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*Truck gallons/container mile*Average haul GC ports to GC points
WC to WC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*Truck gallons/container mile*Average haul WC ports to WC points
EC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* Intermodal rail gallons/container mile *Average haul EC ports to Rest of US
GC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* *Intermodal rail gallons/container mile *Average haul GC ports to Rest of US
WC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* Intermodal rail gallons/container mile *Average haul WC ports to Rest of US
Container Shipment Fixed Input Values for the Equations are shown below:
Average haul EC ports to EC points |
XX |
Average haul GC ports to GC points |
XX |
Average haul WC ports to WC points |
XX |
Truck fuel factor gallons/container mile |
XX |
Intermodal rail fuel factor gallons/container mile |
XX |
(FILLABLE FIELDS)
e. The equations for calculating the Fuel Adjustment Surcharges for Refrigerated Container shipments are:
EC to EC Surcharge= (Monthly Average Fuel Price - Baseline Fuel Price)*(Truck gallons/container mile*Average haul EC ports to EC points + Average haul EC ports to EC points/Average speed*Reefer unit gallons/hour)
GC to GC Surcharge= (Monthly Average Fuel Price - Baseline Fuel Price)*(Truck gallons/container mile*Average haul GC ports to GC points +Average haul GC ports to GC points/Average speed*Reefer unit gallons/hour)
WC to WC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*(Truck gallons/container mile*Average haul WC ports to WC points +Average haul GC ports to GC points/Average speed*Reefer unit gallons/hour)
EC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* (Truck gallons/container mile *Average haul EC ports to Rest of US + Average haul EC ports to Rest of US/Average speed*Reefer unit gallons/hour+Off duty time* Reefer unit gallons/hour)
GC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)*(Truck gallons/container mile *Average haul GC ports to Rest of US Average haul GC ports to Rest of US/Average speed*Reefer unit gallons/hour+Off duty time*Reefer unit gallons/hour)
WC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)*(Truck gallons/container mile *Average haul WC ports to Rest of US Average haul WC ports to Rest of US/Average speed*Reefer unit gallons/hour+Off duty time*Reefer unit gallons/hour)
Refrigerated Container Shipment Fixed Input Values for the Equations are shown below:
Average haul EC ports to EC points |
XX |
Average haul GC ports to GC points |
XX |
Average haul WC ports to WC points |
XX |
Truck fuel factor factor gallons/container mile |
XX |
Reefer unit fuel factor gallons/hour |
XX |
Average speed miles/hour |
XX |
(FILLABLE FIELDS)
f. Breakbulk Shipments Less than 50,000 lbs:
EC to EC Surcharge = (Monthly Average Fuel Price - Baseline Fuel
Price)*Truck gallons/trailer mile*Average haul EC ports to EC points
GC to GC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*Truck gallons/trailer mile*Average haul GC ports to GC points
WC to WC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*Truck gallons/trailer mile*Average haul WC ports to WC points
EC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* Intermodal rail gallons/trailer mile *Average haul EC ports to Rest of US
GC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* Intermodal rail gallons/trailer mile *Average haul GC ports to Rest of US
WC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* Intermodal rail gallons/trailer mile *Average haul WC ports to Rest of US
Breakbulk Shipments less than 50,000 lbs Fixed Input Values for the Equations are shown below:
Average haul EC ports to EC points |
XX |
Average haul GC ports to GC points |
XX |
Average haul WC ports to WC points |
XX |
Truck fuel factor gallons/trailer mile |
XX |
(FILLABLE FIELDS)
g. Breakbulk Shipments Exceeding 50,000 lbs:
EC to EC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*Truck gallons/ mile*Average haul EC ports to EC points
GC to GC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*Truck gallons/ mile*Average haul GC ports to GC points
WC to WC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*Truck gallons/ mile*Average haul WC ports to WC points
EC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* Conventional rail gallons/car mile *Average haul EC ports to Rest of US
GC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* Conventional rail gallons/car mile *Average haul GC ports to Rest of US
WC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* Conventional rail gallons/car mile *Average haul WC ports to Rest of US
Breakbulk Shipments Exceeding 50,000 lbs Fixed Input Values for the Equations are shown below:
Average haul EC ports to EC points |
XX |
Average haul GC ports to GC points |
XX |
Average haul WC ports to WC points |
XX |
Truck fuel factor gallons/trailer mile |
XX |
(FILLABLE FIELDS)
h. Payment Procedures:
(1) For shipments paid using TPPS, the Fuel Adjustment Surcharge shall be fixed at the time of booking and shall be based on the date the booked vessel is scheduled to sail. When FAF is payable, shippers shall include the applicable FAF amount (plus or minus) to all shipments paid to the Contractor via their own documentation and payment system at the time that the original transactions are sent to TPPS. Contractors using the TPPS invoice procedure shall include the applicable FAF amount (plus or minus) in their invoice.
(2) For all shipments other than those paid using TPPS, Contractors are responsible for indicating on their shipment invoice whether a fuel adjustment surcharge is due them, whether no fuel adjustment surcharge is to be made, or whether a fuel adjustment surcharge payment is due SDDC. If a fuel adjustment surcharge payment is due the Contractor or SDDC, the Contractor shall compute the value of the payment (or credit) and indicate this on the shipment invoice. If there is no fuel adjustment surcharge payment, the Contractor shall indicate on the invoice “No Fuel Adjustment Surcharge”. FAF for authorized agent shipments shall be paid using this process.
3. Currency Adjustment Factor (CAF)
a. Allowance: CAF only applies to the ocean portion of the transportation and is intended to offset the local currency exchange rate fluctuations for terminal services. An allowance for fluctuations in foreign currency exchange rates shall be paid to Contractors or to the Government for routes designated to a superlane as shown in the CAF Table 1 below. The allowance shall be paid per freight payable unit of cargo. For containerized goods, these units are 20-foot and 40-foot containers. For breakbulk cargo, they are measurement tons.
b. Calculation Overview:
(1) The compensation per freight payable unit shall be derived by implementing the calculation process in paragraph 3.3 below. Note that the General Section basic ocean freight is used to calculate CAF for all shipments eligible for CAF. The basic ocean freight does not include BAF in the calculation of CAF. Exchange rates are expressed as foreign currency per dollar.
(2) The Currency Adjustment Factor is zero unless the one-month average exchange rate is at least 9% higher or 9% lower (inclusive) than the baseline average currency exchange rate. No CAF is payable on routes/countries not included in CAF Table 1 below.
(3) Base rates and differentials in currency exchange rates shall be computed for the currencies shown in CAF Table 2. The applicable currency for payment shall be determined by the foreign port of discharge or load.
(4) The source for exchange rates is XE.com. The base rate is the exchange rate published on the Monday which immediately precedes the date proposals are due for base or option periods.
(5) A one-month average exchange rate shall be computed by SDDC for the currencies shown in CAF Table 2. This average price shall be calculated on or after the first day of the month for the prior calendar month and shall apply to shipments booked for sailings in the following month. Example: The average exchange rates for calculation of CAF charges for March shall be calculated on or after February 01 and shall be based on exchange rates for January.
c. Calculation Process: Calculation of the CAF is a three-step process. First, the currency is compared to the list of 17 currencies for which a CAF is calculated and then grouped into a superlane. If so, in step 2, the decision of whether or not to apply a CAF is made. If so, in step 3, the value of the surcharge is calculated. The following example below:
(1) Step 1: 1: Superlane Assignment
Compare the currency to currencies in table 2 below.
If the currency is on the list, note the superlane and go to step 2.
If the currency is not on the list, then no CAF (i.e. CAF = $0)
(2) Step 2: The applicability of the CAF
i. Step 2a: Find the average exchange rate over the previous month (all exchange rates shall be in terms of foreign currency per U.S. dollar).
The formula for this value is:
ii. Step 2b: Determine the Price Change Ratio
The ratio is:
Price Change Ratio =
iii. Step 2c: Compare to Buffer
The Buffer is set to 9% for all superlanes.
If [Price Change Ratio] > Buffer, then Apply a CAF (go to step 3)
If [Price Change Ratio] < Buffer, then No CAF (i.e. CAF = $0)
The [ ] indicate taking the absolute value.
(3) Step 3: Calculate the CAF
The technical factor represents the costs incurred in foreign currency. The technical factor is 7%. The risk sharing factor represents the degree of risk borne by USTRANSCOM on currency fluctuations outside of the buffer zone. The risk sharing factor is 0.9. The base rate is the carrier’s ocean rate. See example below:
Note: CAF can be either positive or negative in this situation.
If CAF > 0, then the foreign currency has depreciated, the CAF is a payment to the Government.
If CAF < 0, then the foreign currency has appreciated, the CAF is a payment to the carrier.
d. Payment Procedures
(1) For shipments paid using TPPS: The CAF shall be fixed at the time of booking and shall be based on the date the booked vessel is scheduled to depart. When CAF is payable, shippers shall include the applicable CAF amount (plus or minus) to all shipments paid to the Contractor via their own documentation and payment system at the time that the original transactions are sent to TPPS. Contractors using the TPPS invoice procedure shall include the applicable CAF amount (plus or minus) in their invoice.
(2) For all shipments other than those paid using TPPS, Contractors are responsible for indicating on their shipment invoice whether a currency adjustment payment is due them, whether no currency adjustment payment is to be made or whether a currency adjustment payment is due SDDC. If a currency adjustment payment is due the Contractor or SDDC, the Contractor shall compute the value of the payment (or credit) and indicate this on the shipment invoice. If there is no currency adjustment payment, the Contractor shall indicate on the invoice “No Currency Adjustment Payment”. CAF for authorized agent shipments shall be paid using this process.
CAF TABLE 1 (FILLABLE FIELDS)
Route |
Name |
Superlane |
# |
Lane |
Superlane |
CAF TABLE 2 (FILLABLE FIELDS)
Superlane Name Currency Currency Name | ||
Name of Lane |
XXX |
Name of Currency |
Name of Lane |
XXX |
Name of Currency |
ALTERNATE I (NOV 2011)
As prescribed in 5516.203-4(e), insert the following clause in solicitations and contracts when an economic price adjustment based on marine (BAF) and inland fuel prices (FAF) is anticipated for Scheduled Liner or Dedicated Sealift Service.
1. Bunker Adjustment Factor (BAF)
(a) An allowance for fluctuations in marine fuel prices shall be paid to the Contractors or to the U.S. Government in accordance with the following:
(1) The allowance shall be paid per freight payable unit of cargo. For containerized goods these units are 20-foot equivalent units (TEU) and 40-foot equivalent units (FEU). For breakbulk cargo, they are measurement tons (MT).
(2) The Bunker Adjustment Factor is zero unless the one-month average fuel price is at least 20% higher or 20% lower (inclusive) than the baseline average fuel price. No bunker adjustment is payable on the routes not included in BAF Table 1 below.
(3) The compensation per freight payable unit shall be calculated as follows:
[(Monthly Avg fuel price of MDO x 5% + Monthly Avg fuel price IFO 380 x 95% - Baseline fuel price) x BAF Technical Factor] /6.50 (Conversion factor, Metric tons to barrels)
(b) Baseline Fuel Price: The baseline is $225.00 for Norfolk and $225.00 for Los Angeles. The baseline is for a bunker fuel mixture of IFO 380 (95%) and MDO (5%). This baseline will apply to the base year and all option years.
(c) Calculations: BAF shall be calculated using Norfolk (ex-wharf) prices except for routes below that shall use Los Angeles (ex-wharf) prices:
USWC to Far East
Hawaii - Far East
Hawaii - Kwajalein
USWC - Oceania
USWC - Middle East
(1) An average fuel price shall be computed by Military Surface Deployment and Distribution Command (SDDC) for Los Angeles and Norfolk. This average price shall be calculated on or after the first of the month for the prior month and shall apply to shipments booked for sailings in the next month. The monthly computation of adjusted average fuel prices will be posted to the SDDC website no later than the 10th of the month prior to the month in which it will be applied. Example: The average fuel prices for calculation of BAF charges for March shall be based on bunker prices for the month of January.
(2) The scheduled month the vessel departs the load port at the time of booking shall determine the month for calculation of BAF charges.
(3) The source for bunker prices is Bunkerworld; http://www.bunkerworld.com/, which calculates bunker average monthly prices by port and fuel type. These prices are quoted in metric tons and shall be converted to barrels by dividing by 6.50. The IFO 380 and MDO average quotes shall then be averaged to calculate the monthly average fuel prices for Norfolk and Los Angeles.
(4) SDDC shall monitor, calculate and post BAF to the SDDC website.
(d) Payment Procedures:
(1) For shipments paid using TPPS, the BAF shall be fixed at the time of booking and shall be based on the date the booked vessel is scheduled to sail. When BAF is payable, shippers shall include the applicable BAF amount (plus or minus) to all shipments paid to the Contractor via their own documentation and payment system at the time that the original transactions are sent to TPPS. Contractors using the TPPS invoice procedure shall include the applicable BAF amount (plus or minus) in their invoice.
(2) For all shipments other than those paid using TPPS, Contractors are responsible for indicating on their shipment invoice whether a fuel payment is due them, whether no fuel payment is to be made, or whether a fuel payment is due SDDC. If a fuel payment is due the Contractor or SDDC, the Contractor shall compute the value of the payment (or credit) and indicate this on the shipment invoice. If there is no fuel payment, the Contractor shall indicate on the invoice “No Fuel Adjustment”. BAF for authorized agent shipments shall be paid using this process.
(e) Application: The bunker fuel adjustment applies to fuel purchased by the Contractor from normal commercial suppliers and does not apply when bunker fuel has been provided or subsidized by the U.S. Government or foreign Governments.
(f) Technical Factors and Freight Payable Units: The Technical factors and their freight payable units are shown below:
Route |
Route Description |
TEU |
FEU |
MT |
# |
Route Description |
Factor |
Factor |
Factor |
(FILLABLE FIELDS)
2. Fuel Adjustment Factor (FAF)
(a) A Fuel Adjustment for inland transportation will be calculated and updated monthly and based on the national monthly average diesel fuel price as determined by the Department of Energy, Energy Information Administration (EIA). The diesel fuel prices published by the EIA may be found via the following source: EIA Website: http://eia.doe.gov
(b) Baseline:
(1) The base period for determining the baseline diesel fuel price will be the month prior to the month the solicitation was issued. For option years the baseline will be the month prior to the month the Carrier Analysis & Rate Evalution (CARE) systems is opened for carriers to submit rates for that option year. In both cases the baseline used will be the national monthly average diesel fuel price from the EIA.
(2) A monthly national average diesel fuel price shall be posted by SDDC using the price published by the EIA. This average price shall be posted on or after the first of the month for the prior month and shall apply to shipments booked for sailings in the next month. The monthly national average diesel fuel prices will be posted to the SDDC website no later than the 10th of the month prior to the month in which it will be applied. Example: The average fuel prices for calculation of FUEL ADJUSTMENT SURCHARGE charges for March shall be based on diesel fuel prices for the month of January.
(c) Fuel Adjustment Application:
(1) The fuel adjustment surcharge on the inland CONUS portion of shipments will be based on the shipment’s origin state and POE (port of embarkation) or the POD (port of debarkation) and the shipment’s destination state.
(2) For the purpose of determining the surcharge East Coast ports will include those within the states of Maine, New Hampshire, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia, North/South Carolina, Georgia, and Florida; Gulf Coast ports will include those within the states of Texas, Louisiana, Mississippi and Alabama: and West Coast ports will include those within the states of California, Oregon and Washington.
(3) A different fuel adjustment surcharge will apply, depending on the type of shipment. A shipment may be a container shipment, a breakbulk shipment with a weight/shipment unit less than or equal to 50,000 lbs., or breakbulk shipment where the weight/shipment unit exceeds 50,000 lbs. Carriers will select the appropriate table for determining the FAF applicable to a given shipment.
(4) The Fuel Adjustment Surcharge will be calculated on six zones. The zones encompass movements from West Coast ports to West Coast states, a movements from West Coast ports to rest of U.S., movements from East Coast ports to East Coast states, movements from East Coast ports to rest of U.S., movements from Gulf Coast ports to Gulf Coast states, movements from Gulf Coast ports to rest of U.S. Additionally, the Fuel Adjustment Surcharge will be broken out by:
Container Shipments
Refrigerated Container Shipments
Breakbulk Shipments
Breakbulk Shipments Exceeding 50,000 lbs.
(d) The equations for calculating the Fuel Adjustment Surcharges for Container shipments are:
EC to EC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*Truck gallons/container mile*Average haul EC ports to EC points
GC to GC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*Truck gallons/container mile*Average haul GC ports to GC points
WC to WC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*Truck gallons/container mile*Average haul WC ports to WC points
EC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* Intermodal rail gallons/container mile *Average haul EC ports to Rest of US
GC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* *Intermodal rail gallons/container mile *Average haul GC ports to Rest of US
WC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* Intermodal rail gallons/container mile *Average haul WC ports to Rest of US
Container Shipment Fixed Input Values for the Equations are shown below:
Average haul EC ports to EC points |
XX |
Average haul GC ports to GC points |
XX |
Average haul WC ports to WC points |
XX |
Truck fuel factor gallons/container mile |
XX |
Intermodal rail fuel factor gallons/container mile |
XX |
(FILLABLE FIELDS)
(e) The equations for calculating the Fuel Adjustment Surcharges for Refrigerated Container shipments are:
EC to EC Surcharge= (Monthly Average Fuel Price - Baseline Fuel Price)*(Truck gallons/container mile*Average haul EC ports to EC points + Average haul EC ports to EC points/Average speed*Reefer unit gallons/hour)
GC to GC Surcharge= (Monthly Average Fuel Price - Baseline Fuel Price)*(Truck gallons/container mile*Average haul GC ports to GC points +Average haul GC ports to GC points/Average speed*Reefer unit gallons/hour)
WC to WC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*(Truck gallons/container mile*Average haul WC ports to WC points +Average haul GC ports to GC points/Average speed*Reefer unit gallons/hour)
EC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* (Truck gallons/container mile *Average haul EC ports to Rest of US + Average haul EC ports to Rest of US/Average speed*Reefer unit gallons/hour+Off duty time* Reefer unit gallons/hour)
GC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)*(Truck gallons/container mile *Average haul GC ports to Rest of US Average haul GC ports to Rest of US/Average speed*Reefer unit gallons/hour+Off duty time*Reefer unit gallons/hour)
WC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)*(Truck gallons/container mile *Average haul WC ports to Rest of US Average haul WC ports to Rest of US/Average speed*Reefer unit gallons/hour+Off duty time*Reefer unit gallons/hour)
Refrigerated Container Shipment Fixed Input Values for the Equations are shown below:
Average haul EC ports to EC points |
XX |
Average haul GC ports to GC points |
XX |
Average haul WC ports to WC points |
XX |
Truck fuel factor factor gallons/container mile |
XX |
Reefer unit fuel factor gallons/hour |
XX |
Average speed miles/hour |
XX |
(FILLABLE FIELDS)
(f) Breakbulk Shipments Less than 50,000 lbs:
EC to EC Surcharge = (Monthly Average Fuel Price - Baseline Fuel
Price)*Truck gallons/trailer mile*Average haul EC ports to EC points
GC to GC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*Truck gallons/trailer mile*Average haul GC ports to GC points
WC to WC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*Truck gallons/trailer mile*Average haul WC ports to WC points
EC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* Intermodal rail gallons/trailer mile *Average haul EC ports to Rest of US
GC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* Intermodal rail gallons/trailer mile *Average haul GC ports to Rest of US
WC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* Intermodal rail gallons/trailer mile *Average haul WC ports to Rest of US
Breakbulk Shipments less than 50,000 lbs Fixed Input Values for the Equations are shown below:
Average haul EC ports to EC points |
XX |
Average haul GC ports to GC points |
XX |
Average haul WC ports to WC points |
XX |
Truck fuel factor gallons/trailer mile |
XX |
(FILLABLE FIELDS)
(g) Breakbulk Shipments Exceeding 50,000 lbs:
EC to EC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*Truck gallons/ mile*Average haul EC ports to EC points
GC to GC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*Truck gallons/ mile*Average haul GC ports to GC points
WC to WC Surcharge = (Monthly Average Fuel Price - Baseline Fuel Price)*Truck gallons/ mile*Average haul WC ports to WC points
EC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* Conventional rail gallons/car mile *Average haul EC ports to Rest of US
GC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* Conventional rail gallons/car mile *Average haul GC ports to Rest of US
WC to Rest of US = (Monthly Average Fuel Price - Baseline Fuel Price)* Conventional rail gallons/car mile *Average haul WC ports to Rest of US
Breakbulk Shipments Exceeding 50,000 lbs Fixed Input Values for the Equations are shown below:
Average haul EC ports to EC points |
XX |
Average haul GC ports to GC points |
XX |
Average haul WC ports to WC points |
XX |
Truck fuel factor gallons/trailer mile |
XX |
(FILLABLE FIELDS)
(h) Payment Procedures:
(1) For shipments paid using TPPS , the Fuel Adjustment Surcharge shall be fixed at the time of booking and shall be based on the date the booked vessel is scheduled to sail. When FAF is payable, shippers shall include the applicable FAF amount (plus or minus) to all shipments paid to the Contractor via their own documentation and payment system at the time that the original transactions are sent to TPPS. Contractors using the TPPS invoice procedure shall include the applicable FAF amount (plus or minus) in their invoice.
(2) For all shipments other than those paid using TPPS , Contractors are responsible for indicating on their shipment invoice whether a fuel adjustment surcharge is due them, whether no fuel adjustment surcharge is to be made, or whether a fuel adjustment surcharge payment is due SDDC. If a fuel adjustment surcharge payment is due the Contractor or SDDC, the Contractor shall compute the value of the payment (or credit) and indicate this on the shipment invoice. If there is no fuel adjustment surcharge payment, the Contractor shall indicate on the invoice “No Fuel Adjustment Surcharge”. FAF for authorized agent shipments shall be paid using this process.
ALTERNATE II (NOV 2011)
As prescribed in 5516.203-4(e), insert the following clause in solicitations and contracts when an economic price adjustment based on marine fuel prices (BAF) is anticipated for Scheduled Liner or Dedicated Sealift Service.
Bunker Adjustment Factor (BAF)
1. An allowance for fluctuations in marine fuel prices shall be paid to the Contractors or to the U.S. Government in accordance with the following:
a. The allowance shall be paid per freight payable unit of cargo. For containerized goods these units are 20-foot equivalent units (TEU) and 40-foot equivalent units (FEU). For breakbulk cargo, they are measurement tons (MT).
b. The Bunker Adjustment Factor is zero unless the one-month average fuel price is at least 20% higher or 20% lower (inclusive) than the baseline average fuel price. No bunker adjustment is payable on the routes not included in BAF Table 1 below.
c. The compensation per freight payable unit shall be calculated as follows:
[(Monthly Avg fuel price of MDO x 5% + Monthly Avg fuel price IFO 380 x 95% - Baseline fuel price) x BAF Technical Factor] /6.50 (Conversion factor, Metric tons to barrels)
2. Baseline Fuel Price: The baseline is $225.00 for Norfolk and $225.00 for Los Angeles. The baseline is for a bunker fuel mixture of IFO 380 (95%) and MDO (5%). This baseline will apply to the base year and all option years.
3. Calculations: BAF shall be calculated using Norfolk (ex-wharf) prices except for routes below that shall use Los Angeles (ex-wharf) prices:
USWC to Far East
Hawaii - Far East
Hawaii - Kwajalein
USWC - Oceania
USWC - Middle East
a. An average fuel price shall be computed by the Military Surface Deployment and Distribution Command (SDDC) for Los Angeles and Norfolk. This average price shall be calculated on or after the first of the month for the prior month and shall apply to shipments booked for sailings in the next month. The monthly computation of adjusted average fuel prices will be posted to the SDDC website no later than the 10th of the month prior to the month in which it will be applied. Example: The average fuel prices for calculation of BAF charges for March shall be based on bunker prices for the month of January.
b. The scheduled month the vessel departs the load port at the time of booking shall determine the month for calculation of BAF charges.
c. The source for bunker prices is Bunkerworld; http://www.bunkerworld.com/, which calculates bunker average monthly prices by port and fuel type. These prices are quoted in metric tons and shall be converted to barrels by dividing by 6.50. The IFO 380 and MDO average quotes shall then be averaged to calculate the monthly average fuel prices for Norfolk and Los Angeles.
d. SDDC shall monitor, calculate and post BAF to the SDDC website.
4. Payment Procedures:
a. For shipments paid using TPPS, the BAF shall be fixed at the time of booking and shall be based on the date the booked vessel is scheduled to sail. When BAF is payable, shippers shall include the applicable BAF amount (plus or minus) to all shipments paid to the Contractor via their own documentation and payment system at the time that the original transactions are sent to TPPS. Contractors using the TPPS invoice procedure shall include the applicable BAF amount (plus or minus) in their invoice.
b. For all shipments other than those paid using TPPS , Contractors are responsible for indicating on their shipment invoice whether a fuel payment is due them, whether no fuel payment is to be made, or whether a fuel payment is due SDDC. If a fuel payment is due the Contractor or SDDC, the Contractor shall compute the value of the payment (or credit) and indicate this on the shipment invoice. If there is no fuel payment, the Contractor shall indicate on the invoice “No Fuel Adjustment”. BAF for authorized agent shipments shall be paid using this process.
5. Application: The bunker fuel adjustment applies to fuel purchased by the Contractor from normal commercial suppliers and does not apply when bunker fuel has been provided or subsidized by the U.S. Government or foreign Governments.
6. Technical Factors and Freight Payable Units: The Technical factors and their freight payable units are shown below:
Route |
Route Description |
TEU |
FEU |
MT |
# |
Route Description |
Factor |
Factor |
Factor |
(FILLABLE FIELDS)
5552.216-9006 Economic Price Adjustment for Scheduled Services - Multimodal
As prescribed in 5516.203-4(f), insert a clause that is substantially the same in all commercial contracts for multimodal services when an economic price adjustment based on the IHS Global Insight Index (GII) is anticipated.
ECONOMIC PRICE ADJUSTMENT FOR SCHEDULED SERVICES – MULTIMODAL (DEC 2012)
In order to protect the contractor and government against significant market fluctuations, the unit prices shall be adjusted on (Day/Month – fillable field) of each Option Year beginning (Day/Month/Year – fillable field). The adjustment shall be based on the GII Pricing and Purchasing Industry Forecasting for North American Industrial Classification System (NAICS) codes as follows: 481112, Scheduled Freight Air Transportation (90%); 482111, Line-Haul Railroads ((0.5%); 483111, Deep Sea Freight Transportation (8%); and 48411, General Freight Trucking, Local (1.5%). In the event publication of any of the above indices is discontinued, the parties shall agree upon an appropriate substitute index.
(a) Index figures subsequently revised by GII (e.g., amending formerly released indices by removing or replacing components within the index, describing revisions by footnote or appendix, significantly altering the method of calculating the index, or any other method) shall not warrant a retroactive price adjustment under the terms and conditions of this contract.
(b) Price adjustments shall be executed via a contract modification.
(c) Any price adjustments under this EPA clause shall be rounded to two decimal positions (e.g. $1.50).
(d) The formula for determining the adjusted unit prices for the Option Year is –
( IN / IN-1 ) x PN = Adjusted Unit Price
Where:
PN = The current effective prices listed in the Schedule, where the subscript “N” represents the current contract performance period.
IN-1 = Index for the current contract period: 4-quarter average of the GII calculated index for the current contract performance period
IN = Index for the adjustment period: 4-quarter average of the GII calculated index for the future contract period
* * * * * * * * * * * * *
EXAMPLE:
Contract performance start date is 1 July 2012. The first EPA will be effective on 1 July 2013.
Sample Calculated Index based upon 90% weighting for NAICS 481112, 8% for NAICS 483111, 1.5% for NAICS 48411, and 0.5% for NAICS 482111:
|
Q1 |
Q2 |
Q3 |
Q4 |
Year |
211.96 |
211.97 |
213.43 |
214.49 |
Year |
215.36 |
216.41 |
217.58 |
218.63 |
Year |
219.58 |
220.98 |
222.88 |
224.64 |
Year 15 |
225.17 |
225.19 |
225.72 |
226.10 |
Note: The below figures are provided as an example only. The first example shows a sample increase from the base year to the 1st option year. The second example shows a sample increase from the 1st option year to the 2nd option year. This example assumes a base year beginning on 1 Oct 11 with a one-year period of performance and two one-year option year periods.
BASE YEAR (1 Jul 2012 – 30 Jun 13) TO 1ST OPTION YEAR (1 Jul 13 – 30 Jun 14)
Example P N= $2.34, where subscript “N” = FY12
Example I12 = Avg from Q3 2012 through Q2 2013
(213.43+214.49+215.36+216.41)/4 = 214.92
Example I13 = Avg from Q3 2013 through Q2 2014
(217.58+218.63+219.58+220.98)/4 = 219.19
Example Adjustment: P13 = [(219.19/214.92) x $2.34] = [1.0199 x $2.34] = $2.39
1ST OPTION YEAR (1 Jul 13 – 30 Jun 14) TO 2ND OPTION YEAR (1 Jul 14 – 30 Jun 15)
Example P N = $2.39, where subscript “N” = FY13
Example I13 = Avg from Q3 2013 through Q2 2014
(217.58+218.63+219.58+220.98)/4 = 219.19
Example I14 = Avg from Q3 2014 through Q2 2015 (222.88+224.64+225.17+225.19)/4 = 224.47
Example Adjustment: PFY14 = [(224.47/219.19) x $2.39] = [1.024 x $2.39] = $2.45
* * * * * * * * * * * * *
(e) In addition, carriers may waive an EPA increase that results in higher prices or any part thereof for the entire contract or identified CLIN(s). The adjustment percentage shall apply to all pricing within the identified CLIN(s). A carrier may not waive a downward EPA adjustment.
(f) All EPA adjustment calculations will be based on the current year’s prices in the Schedule and the index calculations described above. A carrier shall not recoup previously waived EPA increases.
(End of clause)
5552.223-9001 Health and Safety on Government Installations.
As prescribed in 5523-9001 insert the following clause in solicitations and contracts:
HEALTH AND SAFETY ON GOVERNMENT INSTALLATIONS (APRIL 2007)
(a) In performing work under this contract on a Government installation, the contractor shall:
(1) Comply with the specific health and safety requirements established by this contract;
(2) Comply with the health and safety rules of the Government installation that concern related activities not directly addressed in this contract;
(3) Take all reasonable steps and precautions to prevent accidents and preserve the health and safety of contractor and Government personnel performing or in any way coming in contact with the performance of this contract; and
(4) Take such additional immediate precautions as the contracting officer may reasonably require for health and safety purposes.
(b) The contracting officer may, by written order, direct Air Force Occupational safety and Health (AFOSH) Standards and/or health/safety standards as may be required in the performance of this contract and any adjustments resulting from such direction will be in accordance with the Changes clause of this contract.
(c) Any violation of these health and safety rules and requirements, unless promptly corrected as directed by the contracting officer, shall be grounds for termination of this contract in accordance with the Default clause of this contract.
(End of Clause)
5552.237-9001 -- Requirements Affecting Contractor Personnel Performing Mission Essential Services
As prescribed in 5537.9001, insert the following clause in Section I:
REQUIREMENTS AFFECTING CONTRACTOR PERSONNEL PERFORMING MISSION ESSENTIAL SERVICES (NOV 2011)
(a) The Contracting Officer has identified all or a portion of the services performed under this contract as “Essential Contractor Services” as defined and described in DFARS 252.237-7023 “Continuation of Essential Contractor Services” Hereafter, the personnel identified by the contractor to perform these services shall be referred to as “Essential Contractor Personnel.”
(b) Within (insert the number of days required to institute any necessary safety and health precautions) days after contract award or incorporation of this clause into a contract by modification, the Contractor shall provide a written list (See below sample) of all “Essential Contractor Personnel” to the Contracting Officer or designee. The list shall identify names and country (ies) where each employee will perform work under this contract and whether the employees have military mobilization recall commitments.
(c) As required to comply with or perform pursuant to DoD or USTRANSCOM requirements, the contracting officer shall direct the contractor to comply with requirements intended to safeguard the safety and health of Essential Contractor Personnel. The Contracting Officer may communicate the requirements through a letter of notification or other means, and subsequently modify the contract to incorporate the requirements via full text or by reference. The Contractor may file a proposal for cost or other impacts under the Changes clause or a Request for Equitable Adjustment.
(d) This clause shall be inserted in all subcontracts meeting the criteria in paragraph (a) of this clause.
ESSENTIAL CONTRACTOR PERSONNEL | ||
Employee Name |
Country/Countries |
Mobilization Recall (Y or N) |
(End of clause)
5552.242-9000 Common Access Cards (CACs) for Contractor Personnel.
As prescribed in 5542.490-2 insert a clause substantially the same as the following clause in solicitations and contracts:
COMMON ACCESS CARDS (CACs) FOR CONTRACTOR PERSONNEL (NOV 2011)
(a) When contractor performance is required on government installation(s)/location(s), contractors shall ensure Common Access Cards (CACs) are obtained by all contract or subcontract employees who meet one or both of the following criteria:
(1) Require long-term logical access to Department of Defense computer networks and systems in either:
(i) the unclassified environment; or
(ii) the classified environment where authorized by governing security directives.
(2) Performs work on a contract, which requires the use of a CAC for installation entry control or physical access to facilities and buildings.
(b) Contractors and their employees shall use the following procedures to obtain CACs:
(1) Contractors shall provide a listing of their employees that will require a CAC to the contracting officer. The listing will contain the following information in order for a CAC application to be created in the Contractor Verification System (CVS): last, middle, and first names; Social Security Number (SSN) or foreign identification number (FIN), as applicable; Date of Birth; email address; the contract number; and the contract end date. The contracting officer will provide a copy of the list to the government representative in the local organization designated to authorize issuance of contractor CACs (i.e., Trusted Agent (TA)). The TA will then create a CAC application in the Contractor Verification System (CVS.) The CVS TA on this contract is _________________________________________________________________. (Name, e-mail and phone number).
(2) Once the TA has created the CAC application, a temporary login/password will be generated in CVS. The TA will notify each contractor employee when his/her application is created and will securely distribute the login/password to that contractor employee. Each contractor employee will then enter the CVS web site using the temporary login/password and complete the CAC application and submit it back to the TA. This will require the contractor to obtain a Defense Knowledge On-line or similar .mil domain e-mail account working with the sponsoring TA indicated above.
(3) If contractor employees will not require access to classified information, the contractor will submit a compiled list of names with biographical data to include SSN or FIN on each employee requiring a CAC. Upon verification by security office ( name, e-mail and phone number) __________________________, those names who do not meet the background investigation criteria for a CAC will be required to complete the Questionnaire for Non-Sensitive Positions (SF85), located at www.opm.gov/forms/pdf_fill/SF85.pdf, and submit fingerprint cards (FD-258) to (security office contact information above or as appropriate if different) _______________________________________ who will verify each employee and then forward the documents to the servicing Security Office____________________________________________. The questionnaires and fingerprint cards will be forwarded by the Security Office to OPM who will conduct a National Agency Check with written Inquiries (NACI) background investigation
(4) Before any interim credential is authorized by the TA, the contractor employee must submit an accurate and complete signed application, with FD-258 attached. Upon the favorable review by the security office of the name, fingerprint, and criminal records check, the interim CAC application may be approved.
(5) If contractor employees will require access to classified information, the contractor’s company Facility Security Officer processes the Questionnaire for National Security Positions (SF86) and the fingerprint cards (FD-258) and submits them directly to the Defense Industrial Security Clearance Office (DISCO). In this instance, before the TA approves the CAC application in CVS, the TA must verify that the background investigation, name, fingerprint and criminal records check has been favorably adjudicated before the application for CVS can be processed.
(6) Once the TA has approved the CAC application, the TA will inform the contractor employee to proceed to the nearest CAC issuance workstation (usually located within the DEERS/RAPIDS website (insert website) with two forms of picture identification as indicated on the webiste. CAC issuance workstation personnel will then issue the CAC.
(c) While visiting or performing work on government installation(s)/location(s), contractor employees shall wear or prominently display the CAC as required by the governing local policy.
(d) During the performance period of the contract, the contractor, or contractor employee as appropriate, shall:
(1) Within 7 working days of any changes to the listing of the contract personnel authorized a CAC, provide an updated listing to the contracting officer who will provide the updated listing to the TA (who will create new CAC applications or revoke those for employees no longer performing on the contract as appropriate);
(2) As part of security out-processing, or when no longer performing on the specific contract for which the CAC was approved, return their CAC to the TA or DEERS/RAPIDS site.
(3) Report lost or stolen CAC’s immediately to the TA, the USTRANSCOM Security Services Center, or to a designated USTRANSCOM representative.
(e) Within 7 working days following completion/termination of the contract, return all CACs issued to contractor employees to the TA.
(f) Failure to comply with these requirements may result in withholding of final payment.
(g) For OCONUS contracts, in addition to the above procedures, contractor employees requiring a Geneva Convention category on their CAC will be required to complete DD Form 1172-2, Application for Department of Defense Common Access Card DEERS Enrollment. This form shall be submitted to/approved by the contracting officer and then be presented to the CAC issuance workstation personnel in conjunction with the CVS application for CAC issuance.
(End of clause)
5552.247-9000 Air Safety.
As prescribed in 5547.4-100(a) insert the following clause in solicitations and contracts:
AIR SAFETY (APRIL 2007)
(a) Contractor is obligated to comply with generally accepted standards of airmanship, training, and maintenance practices and procedures. Contractor must also satisfy Department of Defense (DOD) quality and safety requirements as described in 32 CFR Part 861, Section 861.4. In addition, contractor shall comply with all provisions of applicable statutes, tenders of service, and contract terms as such may affect flight safety, as well as with all applicable Federal Aviation Administration (FAA) Regulations, Airworthiness Directives, Orders, rules, and standards promulgated under the Federal Aviation Act of 1958, as amended. Compliance with published standards may not, standing alone, constitute compliance with generally accepted standards of airmanship, training, or maintenance.
(b) The cleanliness and orderliness of an aircraft, including the visible components and surfaces thereof affect the ability to inspect an aircraft, may be valid indicators of the overall maintenance level of an aircraft, and may have a direct effect on the security and confidence of passengers. Therefore, contractor's failure to keep and maintain all such components and surfaces of the aircraft used in performance of this contract clean, orderly, and in good state of repair may be deemed a failure to comply with generally accepted standards of maintenance to the extent the failure goes beyond mere cosmetic or housekeeping deficiencies and relates in some manner to confidence in the safety, maintenance, or airworthiness of the aircraft.
(c) Should the government determine that any of the following conditions exist, it may suspend or place in temporary nonuse status contractor's further performance of airlift transportation services for the DOD:
(1) Contractor's failure to meet any of the obligations imposed by the preceding two paragraphs.
(2) Involvement of one of contractor's aircraft in a serious or fatal accident, incident, or operational occurrence (regardless of whether or not such aircraft is being used in the performance of this contract).
(3) Any other condition that affects the safe operation of contractor's flights hereunder.
(d) Such suspension shall be accomplished pursuant to the Department of Defense Commercial Air Transportation Quality and Safety Review Program (32 CFR Part 861), which is hereby incorporated in this contract by reference, or any procedures that supersede same which may be adopted by the Commander (United States Transportation Command) from time to time. The suspension procedures, including the temporary nonuse, reinstatement and appeals processes, set out therein, are binding, final, and conclusive. In no event shall suspension or temporary nonuse proceedings, regardless of outcome, give rise to any liability on the part of the government.
(e) Suspension or temporary nonuse hereunder resulting in unavailability of contractor aircraft to perform service under this contract shall be treated as failure to maintain authorization to engage in air transportation under the clause of the contract 5552.247-9001, “Requirement for Authorization to Engage in Air Transportation.”
(End of Clause)
5552.247-9001 Requirement for Authorization to Engage in Air Transportation
As prescribed in 5547.4-100(b)(1), insert the following clause in solicitations and contracts:
REQUIREMENT FOR AUTHORIZATION TO ENGAGE IN AIR TRANSPORTATION (AUG 2007)
(a) This contract is conditioned upon the Contractor (if the contractor is a team arrangement, applies to each team member) being an air carrier and holding a Certificate of Public Convenience and Necessity issued under Section 401 of the Federal Aviation Act (FAA of 1958, as amended), or otherwise authorized by the Department of Transportation (DOT) to engage in direct air transportation services, holding an Air Carrier's Operating Certificate issued by the FAA under Part 121 of the Federal Aviation Regulations (14 CFR 121) for airlift operated by the offeror, and participating in the CRAF, if applicable. Furthermore, the Contractor shall not be in a suspension or temporary nonuse status in accordance with clause 5552.247-9000, “AIR SAFETY.”
(b) If at any time during the performance period of this contract the contractor is not in compliance with the requirements of paragraph (a) above, including, but not limited to, instances when the certificate demonstrating compliance with paragraph a above is (i) suspended by the pertinent regulatory body for any period of time even though the effect of the suspension is stayed pending review by a court of competent jurisdiction, (ii) canceled or revoked in its entirety by the pertinent regulatory body even though the effect of the cancellation or revocation is stayed pending review by a court of competent jurisdiction, or (iii) such certificate or interim operating authority has expired and has not been renewed, then the contracting officer may elect any one or a combination of the following courses of action:
(1) Suspend the contractor from further performance of all or any part of this contract until such time as the suspension/temporary nonuse imposed by the pertinent regulatory body shall have expired or until such time as the suspension, temporary nonuse, cancellation, or revocation shall have been finally set aside, removed, or otherwise terminated. The period of suspension of this contract will begin at the time that notice thereof is given by the contracting officer to the contractor's designee named in accordance with paragraph ____ of Section ____ of this contract. All flights, which were scheduled to be flown during the time any such suspension is in effect, will be canceled. A unilateral modification reflecting the cancellation and reducing the government's obligation accordingly will be issued by the contracting officer at the termination of the period during which this contract is suspended or after the expiration of the period of performance of this contract. Any such cancellation is not for the convenience of the government and is not a termination within the meaning of clause 52.249-2, “Termination for Convenience of the Government (Fixed-Price).” Such cancellation will be accomplished at no cost to either party, and the substitute service provisions of this contract will not apply to such canceled flights.
(2) Exercise the government's rights under the clause 5552.247-9002, “Contractor's Failure to Provide Service.”
(3) Terminate this contract in whole or in part under the procedures of the clause entitled "Default." If this contract is terminated for default pursuant to paragraph b, and if it is subsequently determined that termination for default is not appropriate, this contract shall then be considered to have been canceled pursuant to subparagraph b(4) below.
(4) Cancel this contract in whole or in part. Any such cancellation will be accomplished by the issuance of a unilateral modification and will not be a termination under the provisions of clause 52.249-2, “Termination for Convenience of the Government (Fixed-Price),” and neither party will be liable to the other party for costs incurred as a result of such cancellation.
(c) If at any time an air carrier ceases operations or surrenders their operating certificate to the Federal Aviation Administration (FAA), the air carrier is required to immediately notify the Contracting Officer the next business day and the DOD Commercial Airlift Division at (618) 229-4801, as well as in writing to HQ AMC/A3B, 402 Scott Drive, Unit 3A1 Scott AFB IL 62225-5302, stating the circumstances for ceasing operations and/or surrendering their operating certificate.
(End of Clause)
ALTERNATE I (AUG 2007). As prescribed by 5547.4-100(b)(2), when using FAR Part 15 procedures and the air carriers hold a current Air Carrier Operating Certificate issued by the Federal Aviation Agency under a part other than Part 121 of the Federal Aviation Regulation, or a comparable foreign carrier operating certificate issued by a foreign government body, shall insert paragraph (a) to the basic clause.
(a) This contract is conditioned upon the contractor being a commercial air taxi operator within the meaning of the Federal Aviation Act (FAA of 1958, as amended) and holding a current Air Carrier Operating Certificate in accordance with Part 127/135 of the Federal Aviation Regulations and holding a registration under Part 298 of the Department of Transportation (DOT) Regulations. Furthermore, the contractor shall not be in a suspension or temporary nonuse status in accordance with clause 5552.247-9000, “Air Safety.”
(End of Clause)
ALTERNATE II (AUG 2007). As prescribed by 5547.4-100(b)(3), when using FAR Part 12 procedures, insert substantially the same paragraph (b) to the basic clause. When contracting with an air carrier modify subparagraph (a) of the clause as appropriate to identify the applicable certificate and issuing authority.
(b) If at any time during the performance period of this contract the contractor is not in compliance with the requirements of paragraph (a) above, including, but not limited to, instances when the certificate demonstrating compliance with paragraph (a) above is (i) suspended by the pertinent regulatory body for any period of time even though the effect of the suspension is stayed pending review by a court of competent jurisdiction, (ii) canceled or revoked in its entirety by the pertinent regulatory body even though the effect of the cancellation or revocation is stayed pending review by a court of competent jurisdiction, or (iii) such certificate or interim operating authority has expired and has not been renewed, then the contracting officer may elect any one or a combination of the following courses of action:
(1) Suspend the contractor from further performance of all or any part of this contract until such time as the suspension, temporary nonuse, cancellation, or revocation shall have been finally set aside, removed, or otherwise terminated. The period of suspension of this contract will begin when the contracting officer notifies the contractor. Any flights that were scheduled to be flown during the time any such suspension is in effect will be canceled and the government’s obligation reduced by all costs directly attributable to the canceled flights. Any such cancellation is not for the convenience of the government and will be accomplished at no cost to either party, and the substitute service provisions of this contract will not apply to such canceled flights.
(2) Exercise the government’s rights under clause 5552.247-9002, “Contractor’s Failure to Provide Service.”
(3) Terminate this contract for cause in whole or in part under FAR clause 52.212-4, “Contract Terms and Conditions—Commercial Items.”
(End of Clause)
5552.247-9002 Contractor's Failure to Provide Service.
As prescribed in5547.4-100(c)(1) insert the following clause in solicitations and contracts:
CONTRACTOR’S FAILURE TO PROVIDE SERVICE (AUG 2008)
(a) In the event that contractor's aircraft is unable to depart from any station, the government may invoke remedies which are set forth in this paragraph which will neither constitute a termination within the meaning of the clause entitled "Termination for Convenience of the Government," nor in any way diminish the government's rights under the clause entitled "Default." The rights and remedies of the government provided for in this paragraph are not exclusive and do not give rise to government liability for costs incurred and are in addition to any other government rights and remedies provided for by law or by this contract.
(b) Substitute Service. This term, as used herein, applies to the substitution of an aircraft to replace contractor's aircraft, which is unable to proceed from the departure station or from any en route station short of destination in accordance with schedules established pursuant to this contract. If the contractor fails to make an aircraft available for departure within 16 hours subsequent to scheduled departure time for a passenger flight or a mixed flight from an originating station or an en route station, or within 4 hours of a scheduled departure time for a passenger flight or a mixed flight from an en route station where no holding facilities for passengers are available, or within 24 hours of a scheduled departure time for a cargo flight from either the originating station or an en route station, or for any flight within such lesser time as may be agreed to by the contractor's designee, the government may: (1) cancel the requirement for further movement of the defaulted flight; (2) require the contractor to transport the defaulted passengers or cargo by substitute service within such additional time as the contracting officer may allow; (3) acquire substitute service from commercial sources; or (4) reschedule the defaulted flight or transport the defaulted passengers or cargo, or any portion thereof, itself. The exercise of any of these options will be in accordance with the following:
(1) In the event that the requirement for further movement of the defaulted flight is canceled, the number of passengers equal to the Guaranteed Allowable Cabin Load (GACL) for the flight involved, or the number of pounds of cargo equal to the GACL of the flight involved, or the number of miles for the flight involved, will be subtracted from the government's guarantee. Any canceled requirement will be deleted from the contract by unilateral modification. If the failure to depart was from the originating station, contractor will not be paid any amount for the flight involved. If the failure to depart was from an en route station, the contractor will be paid at the USTRANSCOM negotiated uniform rate for that portion of the trip over which he did transport the passengers or cargo.
(2) If the contractor is required to transport the passengers or cargo of the defaulted flight by substitute service within such additional time as the contracting officer may allow, the contractor shall arrange and pay directly all costs involved in the transportation by the substitute aircraft. In this event, the contractor will be paid the full contract price for the flight involved, irrespective of the amount paid by him for this transportation by substitute aircraft. The substitute aircraft provided by the contractor must be of like type, configured in accordance with the applicable specifications, and must be approved by the contracting officer. In lieu of, or in addition to, providing the above type substitute service, the contractor may, at his own expense, purchase the amount of space, by common carriage or otherwise, needed for the movement of the passengers or cargo of the defaulted flight. The purchase of such space must be approved by the contracting officer and must be obtained only from American Flag carriers, except that in the event an American Flag carrier is unavailable or not reasonably available for point-to-point substitute service within an overseas area, upon prior authorization of the contracting officer, the contractor may use a Foreign Flag schedule carrier for substitute service on an exception basis only and provided the requirements of the clause entitled "Preference for United States Flag Air Carriers," are complied with. In such event, contractor would be paid the contract price for the involved transportation. If contractor transports by purchase of common carriage only a part of the number of passengers or amount of cargo of the defaulted flight, he will only be paid for those passengers or cargo so transported, and the passengers or cargo not transported shall be deducted from the government's guarantee.
(3) The government may purchase substitute service from commercial sources. This can be by a substitute commercial aircraft or by the purchase from commercial sources of sufficient space to transport by common carriage or otherwise, the number of passengers or amount of cargo involved in the defaulted flight. In either event, the substitute service shall be deducted from the government's guarantee and the contractor would be charged by the government, any amount that the government had to pay to commercial sources which is in excess of the contract price for the transportation of the passengers or cargo involved for the distance involved. (If this substitute service is obtained for only a portion of a trip as provided in the contract, the contract price will be prorated for the distance involved in determining the amount due to the government.) Contractor will not be paid any amount for the defaulted flight except that he will be paid at the USTRANSCOM negotiated uniform rate for that portion of the trip, if any, over which he did transport the passengers or cargo on the flight involved. The contractor shall provide all services normally provided in connection with flights operating under this contract. In the event the defaulted flight was to be performed between military bases and the government procures common carriage substitute service, the defaulting contractor shall be responsible for the transportation between the military bases and the commercial terminal.
(4) The government may, in its discretion, elect to either reschedule the defaulted flight to a later time within the performance period of the contract or may move these passengers and/or this cargo, or any portion thereof. In this event, the number of passengers equal to the GACL for the flight involved, or the number of pounds of cargo to the GACL of the flight involved, or the number of miles for the flight involved will be subtracted from the government's guarantee and the contractor will be charged, by the government, the excess, if any, of the charge for this movement over the contract price. If this movement is utilized for only a portion of a trip as provided in the contract, the contract price will be prorated for the distance involved in determining the amount due the government. Contractor will not be paid any amount for transportation of the passengers or cargo of the defaulted flight except that he will be paid at the USTRANSCOM negotiated uniform rate for that portion of the trip, if any, over which he did transport said passengers or cargo in the flight involved.
(c) The contracting officer may permit the contractor to provide services with substitute aircraft having a lower Allowable Cabin Load (ACL). When such substitution of aircraft is permitted, the contractor shall be reimbursed at the rate per ton/pax mile established in the original award times the lesser ACL with a corresponding reduction in the government's guarantee. In addition or as an alternative to providing substitute aircraft having a lower ACL, the contracting officer may permit the contractor to acquire, at his own expense, the amount of space, by common carriage, needed for movement of the pax or cargo equal to the ACL of the aircraft originally scheduled for the flight, in which event the contractor will be paid at the contract rate for the pax and/or cargo within the GACL which are actually transported. The contracting officer may also permit the contractor to provide services with substitute aircraft having a higher ACL than the aircraft required for performance of services under the contract. In this event, the contractor will be reimbursed only the contract price for the flight as originally awarded.
(d) The contracting officer, in making his decisions and selections for substitute service, will use his discretion in such a manner as to mitigate contractor's liability for excess costs when reasonably possible. However, military needs and urgency will be the prime consideration in the exercise of this discretion.
(e) The provisions of Section C, Performance Work Statement, relative to contractor's responsibility for care of passengers, and for providing meals and billets, apply to all situations discussed in this clause, wherein the contractor failed to depart as scheduled. Contractor shall retain responsibility for passengers until such time as they are moved by the contractor or the government, or the requirement is canceled by the government.
(f) In the event the contractor fails to deliver any part of the GACL (pax or cargo) to manifested destination due to an accident, contractor will be paid at USTRANSCOM negotiated uniform rate only for that amount of pax or cargo delivered to manifested destination.
(End of Clause)
ALTERNATE I (APRIL 2007). As prescribed by 5547.4-100(c)(2),when using FAR Part 15 procedures for domestic charter airlift transportation, delete paragraphs (b) through (f) of the basic clause and substitute the following paragraph (b) to the basic clause.
(b) Substitute Service. This term, as used herein, applies to the substitution of an aircraft to replace contractor's aircraft, which is unable to proceed from the departure station or from any en route station short of destination in accordance with schedules established pursuant to this contract. If the contractor fails to make an aircraft available for departure as required by the flight schedules, the government may: (1) cancel the requirement for further movement of the defaulted flights; (2) require the contractor to transport the defaulted passengers or cargo by substitute service within such additional time as the contracting officer may allow; (3) acquire substitute service from commercial sources; or (4) reschedule the defaulted flight or transport the defaulted passengers or cargo, or any portion thereof, itself. The exercise of any of these options will be in accordance with the following:
(1) In the event that the requirement for further movement of the defaulted flights is canceled, the number of miles/trips for the flight involved, and directed landings (if applicable) will be subtracted from the government's guarantee. Any canceled requirement will be deleted from the contract by unilateral modification.
(2) If the contractor is required to transport the passengers or cargo of the defaulted flights by substitute service within such additional time as the contracting officer may allow, the contractor shall arrange and pay directly all cost involved in the transportation by the substitute aircraft. Contractor will be paid, in this event, the full contract price for the flight involved, irrespective of the amount paid by him for this transportation by substitute aircraft. The substitute aircraft provided by the contractor must be of like type, configured in accordance with the applicable specifications, and must be approved by the contracting officer. In lieu of, or in addition to, providing the above type substitute service, the contractor may, at his own expense, purchase the amount of space, by common carriage or otherwise, needed for the movement of passengers or cargo of the defaulted flight. The purchase of such space must be approved by the contracting officer. In such event, contractor would be paid the contract price for the involved transportation.
(3) The government may purchase substitute service from commercial sources. This can be by a substitute commercial aircraft or by the purchase from commercial sources of sufficient space to transport by common carriage or otherwise, the number of passengers or amount of cargo involved in the defaulted flight. In either event, the substitute service shall be deducted from the government's guarantee and the contractor would be charged by the government, any amount that the government had to pay to commercial sources which is in excess of the contract price for the transportation of the passengers or cargo involved for the distance involved. Contractor will not be paid any amount for this defaulted flight. The contractor shall provide all services normally provided in connection with flights operating under this contract.
(4) The government may, in its discretion, elect to either reschedule the defaulted flight to a later time within the performance period of the contract or may move these passengers and/or this cargo, or any portion thereof. In this event, the number of miles/trips for the flight involved will be subtracted from the government's guarantee and the contractor will be charged, by the government, the excess, if any, of the charge for this movement over the contract price. Contractor will not be paid any amount for transportation of passengers or cargo of the defaulted flight.
(End of Clause)
ALTERNATE II (APRIL 2007). As prescribed by 5547.4-100(c)(3),when using FAR Part 12 procedures, delete paragraphs (a) through (f) of the basic clause and substitute the following paragraphs (a) and (b) to the basic clause.
(a) In the event the contractor’s aircraft is unable to depart from any station, the government may invoke the remedies set forth in this clause, which will not constitute a termination under FAR clause 52.212-4, “Contract Terms and Conditions—Commercial Items.” The rights and remedies provided in this clause are not exclusive, do not give rise to government liability for costs incurred, and are in addition to government rights and remedies provided by law or by this contract.
(b) Substitute Service. This term means substitution of an aircraft to replace contractor’s aircraft, which is unable to perform the required services. If the contractor fails to make an aircraft available to perform services under the terms of the contract, the government may:
(1) Cancel the requirement for further performance of the defaulted flight or services. In that event, the government’s obligation will be reduced by the costs directly attributable to the canceled flight or services.
(2) Require the contractor to obtain substitute service from another DOD-approved carrier to perform the services within such additional time as the contracting officer may allow. The contractor shall arrange for and pay directly all costs involved in performing the services by substitute aircraft. The government will pay the contractor the contract price for the services, irrespective of the amount the contractor pays for the substitute service. The substitute aircraft provided by the contractor must be of like type, must be configured in accordance with the applicable specifications, and must be approved by the contracting officer. In lieu of, or in addition to, providing the above substitute service, the contractor may, at his own expense, purchase the amount of space by common carriage or otherwise needed to transport the passengers or cargo from the defaulted flight. The contracting officer must approve purchase of such space. The government will pay the contractor the contract price for the services, irrespective of the amount the contractor pays for the space.
(3) Purchase substitute service from commercial sources. This may include use of substitute commercial aircraft or purchase of sufficient space to transport by common carriage or otherwise the passengers or cargo from the defaulted flight. In either event, the value of the service will be deducted from the contract minimum (if applicable). The contractor will not be paid for the defaulted flight but will be charged any amount in excess of the contract price that the government had to pay for the substitute service.
(4) Elect to either reschedule the defaulted flight to a later time or move the passengers and/or cargo, or any portion thereof, itself. In the latter event, the value of the service will be deducted from the contract minimum (if applicable). The contractor will not be paid for the defaulted flight but will be charged any amount in excess of the contract price that the government had to pay to transport the passengers and/or cargo.
(End of Clause)
ALTERNATE III (AUG 2008). As prescribed by 5547.4-100(c)(4),when using FAR Part 12 procedures, delete paragraphs (a) through (f) of the basic clause and substitute the following paragraphs (a) through (e) to the basic clause.
(a) In the event that a contractor's aircraft is unable to depart from any station, the government may invoke remedies which are set forth in this paragraph which will neither constitute a termination within the meaning of the clause entitled "Termination for Convenience of the Government," nor in any way diminish the government's rights under Termination for Cause. The rights and remedies of the government provided for in this paragraph are not exclusive and do not give rise to government liability for costs incurred and are in addition to any other government rights and remedies provided for by law or by this contract.
(b) Substitute Service. This term, as used herein, applies to the substitution of an aircraft to replace contractor's aircraft, which is unable to proceed from the departure station or from any en route station short of destination in accordance with schedules established pursuant to this contract. If the contractor fails to make an aircraft available for departure within 16 hours subsequent to scheduled departure time for a passenger flight or a mixed flight from an originating station or an en route station, or within 4 hours of a scheduled departure time for a passenger flight or a mixed flight from an en route station where no holding facilities for passengers are available, or within 24 hours of a scheduled departure time for a cargo flight from either the originating station or an en route station, or for any flight within such lesser time as may be agreed to by the contractor's designee, the government may: (1) cancel the requirement for further movement of the defaulted flight; (2) require the contractor to transport the defaulted passengers or cargo by substitute service within such additional time as approved by the contracting officer; (3) acquire substitute service from DOD Approved commercial sources; or (4) reschedule the defaulted flight or transport the defaulted passengers or cargo, or any portion thereof, itself. The exercise of any of these options will be in accordance with the following:
(1) Cancel the requirement for further performance of the defaulted flight or services. In that event, the government’s obligation will be reduced by the costs directly attributable to the canceled flight or services.
(2) Require the contractor to obtain substitute service from another DOD-approved carrier to perform the services within such additional time as approved by the contracting officer. The contractor shall arrange for and pay directly all costs involved in performing the services by substitute aircraft. The government will pay the contractor the contract price for the services, irrespective of the amount the contractor pays for the substitute service. The substitute aircraft(s) provided by the contractor must be approved by the contracting officer and transport all passenger of the defaulted flight. In situations where the substitute aircraft(s) cannot carry all the passengers, or in lieu of a full plane charter, the contractor may, at his own expense, purchase the amount of space by common carriage or otherwise needed to transport the passengers or cargo from the defaulted flight. The contracting officer must approve purchase of such space. The government will pay the contractor the contract price for the services, irrespective of the amount the contractor pays for the space.
(3) Purchase substitute service from DOD-approved commercial sources. This may include use of substitute commercial charter aircraft(s) or purchase of sufficient space to transport by common carriage or otherwise the passengers or cargo from the defaulted flight. The contractor shall not be paid for the defaulted flight and shall be charged for any reprocurement costs the government had to pay for the substitute service which are in excess of the contract price.
(4) Elect to either reschedule the defaulted flight to a later time or move the passengers and/or cargo, or any portion thereof, itself. The contractor shall not be paid for the defaulted flight but will be charged any amount in excess of the contract price that the government had to pay to transport the passengers and/or cargo.
(c) The contracting officer, in making his decisions and selections for substitute service, will use his discretion in such a manner as to mitigate contractor's liability for excess costs when reasonably possible. However, military needs and urgency will be the prime consideration in the exercise of this discretion.
(d) The provisions of the Performance Work Statement, relative to contractor's responsibility for care of passengers, and for providing meals and billets, apply to all situations discussed in this clause, wherein the contractor failed to depart as scheduled. Contractor shall retain responsibility for passengers until such time as they are moved by the contractor or the government, or the requirement is canceled by the government.
(e) In the event the contractor fails to deliver any part of the GACL (pax or cargo) to manifested destination due to an accident, the contractor shall not be paid at the contract price.
(End of Clause)
5552.247-9003, Requirement for Carriers to Participate in the Civil Reserve Air Fleet (CRAF) and Maintain Good Standing.
As prescribed in 5547.4-100(d) insert the following clause in commercial scheduled service solicitations and contracts or other solicitations and contracts approved by Director of Acquisition:
REQUIREMENT FOR CARRIERS TO PARTICIPATE IN THE CIVIL RESERVE AIR FLEET (CRAF) AND MAINTAIN GOOD STANDING (APRIL 2007)
This contract is conditioned upon the Contractor (if the contractor is a team arrangement, applies to each team member) being an approved Department of Defense approved carrier not in a suspended non-use status (carrier in good standing) participating in the Civil Reserve Air Fleet (CRAF) throughout the performance of this contract. The contractor shall be a U.S. registered air carrier operating under Federal Aviation Regulations, Part 121, and possessing a current certificate issued by the FAA pursuant to Federal Aviation Regulations, Part 121.
(End of Clause)