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TRANSFARS PART 5552



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 (AUG 2015)

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 provision)


5552.216-9001 Economic Price Adjustment based on Actual Cost of Fuel – Airlift.
As prescribed in 5516.203-4(b), insert a clause substantially the same as the following 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.

(End of clause)

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.

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.

(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 DLA Energy Established Prices of Fuel – Airlift.
As prescribed in 5516.203-4(c), insert a clause substantially the same as the following in solicitations and contracts when an economic price adjustment based on the Defense Logistics Agency (DLA) Energy established prices of fuel for airlift is anticipated:

ECONOMIC PRICE ADJUSTMENT BASED ON DLA ENERGY ESTABLISHED PRICES OF FUEL – AIRLIFT (AUG 2016)

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 Logistics Agency (DLA) Energy for Jet A-1. 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 Department of Defense standard price of Jet A-1 in effect for the period and published on the DLA Energy website varies by more than (fillable field) % per gallon from the base price established in the contract (hereafter referred to as the “pegged price”).

(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 Jet A-1.

(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 paragraph (b) (above):

Adjustment Determination:

Adjustment Determination:

(End of clause)


5552.216-9003 USTRANSCOM Task and Delivery-Order Ombudsman.
As prescribed in 5516.506, insert a clause substantially the same as the following in all task order solicitations and contracts:

USTRANSCOM TASK AND DELIVERY ORDER OMBUDSMAN (AUG 2016)

In accordance with FAR 16.505(b)(8), 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
Email: transcom.scott.tcaq.mbx.ombudsman@mail.mil
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 substantially the same as the following 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 (PPI) for North American Industrial Classification System (NAICS) codes is anticipated:

ECONOMIC PRICE ADJUSTMENT FOR LESS FULL-PLANE LOAD (LPL) SCHEDULED SERVICES – AIRLIFT (AUG 2016)

(a) 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 Period beginning (Day/Month/Year – fillable field). The adjustment shall be based on the Bureau of Labor Statistics (BLS), Producer Price Index (PPI) 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.

(b) Index figures subsequently revised by the BLS (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.

(c) Price adjustments shall be executed via a contract modification.

(d) Any price adjustments under this EPA clause shall be rounded to two decimal positions (e.g. $1.50).

(e) In addition, contractors may waive an EPA increase that results in higher prices for the entire contract or identified contract line item number(s) (CLIN(s)). Secondly, if the contractor 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 period adjustment. A contractor may not waive a downward EPA adjustment.

(f) All EPA adjustment calculations will be based on the current period’s prices in the Schedule and the index calculations described below. A contractor shall not recoup previously waived EPA increases.
(g) The formula for determining the adjusted unit prices for the Option Period is –

(Ix2 / Ix1) * Pn1 = Pn2

Solve for “Pn2” where:


and:
n1 = contract period of performance (PoP) currently in effect (i.e., current PoP)
n2 = contract PoP to be in effect immediately following the current PoP (i.e.,
adjustment PoP)

Therefore:

Ix2 = average PPI during the current PoP
Pn1 = unit price effective during the current PoP (i.e., current unit price)
Pn2 = unit price to be in effect during the adjustment PoP (i.e., economically- adjusted unit price)
* * * * * * * * * * * * *
EXAMPLE:

This example demonstrates the process for determining the economically-adjusted unit prices using the formula, (Ix2 / Ix1) * Pn1 = Pn2. It is based on a hypothetical contract that provides for two EPAs, the first occurs on the first day of Option Period One (OP01) and the second occurs on the first day of Option Period Two (OP02). Additional contract details are provided below in Part 1.0, Contract Specifics. Sample PPIs are provided in Part 2.0. These specifics and indices are used in Part 3.1, Determine Pn2 for OP01 and Part 3.2, Determine Pn2 for OP02.
Note1: All inputs reflect its value during the CY QTs correlating with the applicable contract PoP specified in the formula (x1 and x2) at the time of each adjustment. Therefore, the CY and QT correlating with x1 and x2 will differ at the time of each adjustment; thus, requiring each input’s value to be re-calculated at time of each adjustment.
Note2: The below figures are provided as an example only.
PART 1.0, CONTRACT SPECIFICS:
This section contains information and specifics of the hypothetical contract used to demonstrate the process for determining Pn2 using the formula, (Ix2 / Ix1) * Pn1 = Pn2. These specifics apply to all parts of this example.

Contract PoPs:
Base Period (BP): 01 October 2015 - 30 September 2016
OP01: 01 October 2016 - 30 September 2017
OP02: 01 October 2017 - 30 September 2018

Sample excerpt from paragraph (a) of this clause:

PART 2.0, SAMPLE INDICES:
The following indices are used to calculate the economically-adjusted unit price for each Option Period, demonstrated in Part 3.0 of this example.

2.1 Quarterly PPI for Part 3.1 -
Table1 provides the PPI for each CY QT occurring during x1.

QUARTERLY PPI FOR NC 481112
01 JUNE 2014 THROUGH 31 MAY 2015

TABLE1: PPI DURING x1

CY

QT

PPI

2014

QT3

214.14

2014

QT4

218.16

2015

QT1

219.07

2015

QT2

214.30

Table2 provides the PPI for each CY QT occurring during x2.

QUARTERLY PPI FOR NC 481112
01 JUNE 2015 THROUGH 31 MAY 2016

TABLE2: PPI DURING x2

CY

QT

PPI

2015

QT3

215.02

2015

QT4

218.60

2016

QT1

219.05

2016

QT2

218.33

2.2 Quarterly PPI for Part 3.2 -
Table3 provides the PPI for each CY QT occurring during x1.

QUARTERLY PPI FOR NC 481112
01 JUNE 2015 THROUGH 31 MAY 2016

TABLE3: PPI DURING x1

CY

QT

PPI

2015

QT3

212.20

2015

QT4

217.88

2016

QT1

212.00

2016

QT2

217.54

Table4 provides the PPI for each CY QT occurring during x2.

QUARTERLY PPI FOR NC 481112
01 JUNE 2016 THROUGH 31 MAY 2017

TABLE4: PPI DURING x2

CY

QT

PPI

2016

QT3

209.00

2016

QT4

217.50

2017

QT1

211.44

2017

QT2

213.33

PART 3.0, DETERMINE THE ECONOMICALLY ADJUSTED PRICE (Pn2) FOR OP01 AND OP02:
The adjustments for each OP are demonstrated below. Part 3.1 shows a sample adjustment from the BP to OP01. Part 3.2 shows a sample adjustment from OP01 to OP02.
Both adjustments are determined using the formula, (Ix2 / Ix1) * Pn1 = Pn2.

Note3The average PPI (I) results from adding the PPI for each CY QT occurring during the applicable contract PoP divided by the number of CY QTs.

3.1 Determine Pn2 For Op01 -
x1 (Preceding PoP)
Ix1 = Average from Q3 2014 to Q2 2015 (Part 2.1, Table1) =
(214.14 + 218.16 + 219.07 + 214.30) / 4 =
865.67 / 4 =
216.42
Pn1 (Current Price) =
$2.49

x2 (Current PoP)
Ix2 = Average from Q3 2015 to Q2 2016 (Part 2.1, Table2) =
(215.02 + 218.60 + 219.05 + 218.33) / 4 =
871.00 / 4 =
217.75
Pn2 = (217.75 / 216.42) * $2.49 =
1.01 * $2.49 =
$2.51

The rate effective during OP01 is $0.02 greater than the rate effective during the BP.

3.2 Determine Pn2 For OP02 -
x1 (Preceding PoP)
Ix1 = Average from Q3 2015 to Q2 2016 (Part 2.2, Table3) =
(212.20 + 217.88 + 212.00 + 217.54) / 4 =
859.62 / 4 =
214.91
Pn1 (Current Price) =
$2.51 (Part 3.1, Px2)

x2 (Current PoP)
Ix2 = Average from Q3 2016 to Q2 2017 (Part 2.2, Table4) =
(209.00 + 217.50 + 211.44 + 213.33) / 4 =
851.27 / 4 =
212.82

Pn2 = (212.82 / 214.91) * $2.51 =
0.99 * $2.51 =
$2.48

The rate effective during OP02 is $0.03 less than the rate effective during OP01.

(End of clause)


5552.216-9005 Economic Price Adjustment for Sealift Services.
As prescribed in 5516.203-4(e), insert a clause substantially the same as the following in commercial solicitations and contracts when an economic price adjustment for marine fuel prices (Bunker Adjustment Factor (BAF)), inland transportation fuel prices (Fuel Adjustment Factor (FAF)), and local currency exchange rates (Currency Adjustment Factor (CAF)) is anticipated for sealift services.

ECONOMIC PRICE ADJUSTMENT FOR SEALIFT SERVICES (AUG 2015)

In order to protect the contractor and the government from significant market fluctuations in the price of marine fuel, inland transportation 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)

   

Technical Factors

Lane

Lane Description

TEU

FEU

MT

#

Lane Description

Factor

Factor

Factor

2. Fuel Adjustment Factor (FAF)

Refrigerated Container Shipments
Breakbulk Shipments
Breakbulk Shipments Exceeding 50,000 lbs.

3. Currency Adjustment Factor (CAF)

ii. Step 2b: Determine the Price Change Ratio

(End of clause)
ALTERNATE I (AUG 2015)

As prescribed in 5516.203-4(e), when an economic price adjustment for only marine fuel prices (BAF) and inland transportation fuel prices (FAF) is anticipated, delete paragraph 3 of the basic clause and revise the introductory paragraph to delete reference to Currency.

(End of clause)
ALTERNATE II (AUG 2015)

As prescribed in 5516.203-4(e), when an economic price adjustment for only marine fuel prices (BAF) is anticipated, delete paragraphs 2 and 3 of the basic clause and revise the introductory paragraph to delete reference to the price of inland transportation fuel and Currency.

(End of clause)


5552.216-9006 Economic Price Adjustment for Scheduled Services – Multimodal.
As prescribed in 5516.203-4(f), insert a clause substantially the same as the following in all commercial contracts for multimodal services with three or four modes and when an economic price adjustment based on the IHS Global Insight Index (GII) is anticipated:

ECONOMIC PRICE ADJUSTMENT FOR SCHEDULED SERVICES – MULTIMODAL (AUG 2016)

(a) 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 Period beginning (Day/Month/Year – fillable field). Allowable adjustments will be made upward or downward if the adjustment varies by X% (fillable field). The adjustment shall be based on the Global Insight Index (GII) Pricing and Purchasing Industry Forecasting for North American Industrial Classification System (NAICS) codes as follows: 1. NAICS /TITLE (PERCENTAGE) 2. NAICS /TITLE (PERCENTAGE) 3. NAICS /TITLE (PERCENTAGE) 4. NAICS /TITLE (PERCENTAGE). In the event publication of any of the above indices is discontinued, the parties shall agree upon an appropriate substitute index.
(b) 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.
(c) Price adjustments shall be executed via a contract modification.
(d) Any price adjustments under this EPA clause shall be rounded to two decimal positions (e.g., $1.50).
(e) In addition, contractors may waive an EPA increase that results in higher prices for the entire contract or identified contract line item number(s) (CLIN(s)). Secondly, if the contractor elects to do so, they can offer the Government a lower price effective for the option period in lieu of the EPA adjusted increased price. A contractor may not waive a downward EPA adjustment.
(f) All EPA adjustment calculations will be based on the current period’s prices in the Schedule and the index calculations described below. A contractor shall not recoup previously waived EPA increases.
(g) The formula for determining the adjusted unit prices for the Option Period is –

(Ix2 / Ix1) * Px1 = Px2

Solve for “Px2” where:


and:
x1 = contract PoP currently in effect (i.e., current PoP)

Therefore:

Ix2 = weighted average GII forecasted to occur during the adjustment PoP
Px1 = unit price effective during the current PoP (i.e., current unit price)
Px2 = unit price to be in effect during the adjustment PoP (i.e., economically- adjusted unit price)
* * * * * * * * * * * * *
EXAMPLE:

This example demonstrates the process for determining the economically-adjusted unit prices using the formula, (Ix2 / Ix1) * Px1 = Px2. It is based on a hypothetical contract that provides for two EPAs, the first occurs on the first day of Option Period One (OP01) and the second occurs on the first day of Option Period Two (OP02). Additional contract details are provided below in Part 1.0, Contract Specifics. Sample GII Indices are provided in Part 2.0. These specifics and indices are used in Part 3.1, Determine Px2 for OP01 and Part 3.2, Determine Px2 for OP02.
Note1: All inputs reflect its value during the CY QTs correlating with the applicable contract PoP specified in the formula (x1 and x2) at the time of each adjustment. Therefore, the CY and QT correlating with x1 and x2 will differ at the time of each adjustment; thus, requiring each input’s value to be re-calculated at time of each adjustment.
Note2: The below figures are provided as an example only.
PART 1.0, CONTRACT SPECIFICS:
This section contains information and specifics of the hypothetical contract used to demonstrate the process for determining Px2 using the formula, (Ix2 / Ix1) * Px1 = Px2. These specifics apply to all parts of this example.

Contract PoPs:
Base Period (BP): 01 October 2015 - 30 September 2016
OP01: 01 October 2016 - 30 September 2017
OP02: 01 October 2017 - 30 September 2018

Sample excerpt from paragraph (a) of this clause:

PART 2.0, SAMPLE INDICES:
The following indices are used to calculate the economically-adjusted unit price for each Option Period, demonstrated in Part 3.0 of this example.

2.1 Quarterly GII for Part 3.1 -
Table1 provides the GII for each CY QT occurring during x1.

QUARTERLY GII DURING THE BP
01 OCTOBER 2015 THROUGH 30 SEPTEMBER 2016

TABLE1: GII DURING x1

NC

QUARTERLY GII

2015
QT4

2016
QT1

2016
QT2

2016
QT3

481112

216.00

214.67

218.92

219.00

482111

220.10

220.10

215.99

214.32

483111

214.14

218.16

219.07

214.30

484110

214.89

214.89

218.20

220.33

Table2 provides the GII for each CY QT occurring during x2.

QUARTERLY GII DURING OP01
01 OCTOBER 2016 THROUGH 30 SEPTEMBER 2017

TABLE2: GII DURING x2

NC

QUARTERLY GII

2016
QT4

2017
QT1

2017
QT2

2017
QT3

481112

218.00

215.33

220.61

220.61

482111

220.10

220.10

215.12

222.22

483111

215.02

218.60

219.05

218.33

484110

215.69

217.00

217.00

222.45

2.2 Quarterly GII for Part 3.2 -
Table3 provides the GII for each CY QT occurring during x1.

QUARTERLY GII DURING THE OP01
01 OCTOBER 2016 THROUGH 30 SEPTEMBER 2017

TABLE3: GII DURING x1

NC

QUARTERLY GII

2016
QT4

2017
QT1

2017
QT2

2017
QT3

481112

220.61

225.16

225.10

228.13

482111

221.12

223.00

223.00

224.99

483111

212.20

217.88

212.00

217.54

484110

217.16

218.16

218.62

218.63

Table4 provides the GII for each CY QT occurring during x2.

QUARTERLY GII DURING OP02
01 OCTOBER 2017 THROUGH 30 SEPTEMBER 2018

TABLE4: GII DURING x2

NC

QUARTERLY GII

2017
QT4

2018
QT1

2018
QT2

2018
QT3

481112

219.12

220.19

220.10

220.13

482111

218.00

218.00

218.23

220.64

483111

209.00

217.50

211.44

213.33

484110

213.50

218.16

218.16

219.23

PART 3.0, DETERMINE THE ECONOMICALLY ADJUSTED PRICE (Px2) FOR OP01 AND OP02:
The adjustments for each OP are demonstrated below. Part 3.1 shows a sample adjustment from the BP to OP01. Part 3.2 shows a sample adjustment from OP01 to OP02.
Both adjustments are determined using the formula, (Ix2 / Ix1) * Px1 = Px2.

Note3 The weighted average-GII (I) results from first computing the four-quarter average of each NC listed in paragraph (a) (i.e., add the GII for each CY QT occurring during the applicable contract PoP divided by the number of CY QTs). Then each average is multiplied by its respective weight (%). Each product is then added together to establish the weighted average GII during the applicable contract PoP.

3.1 Determine Px2 For Op01 -
x1 (Current PoP) = BP
Ix1 = Weighted Average GII from Q4 2015 to Q3 2016 (Part 2.1, Table1)
481112 = (216.00 + 214.67 + 218.92 + 219.00) = 868.59 / 4 = 217.15
217.15 * 90.00% = 195.44
482111 = (220.10 + 220.10 + 215.99 + 214.32) = 870.51 / 4 = 217.63
217.63 * 00.50% = 1.09
483111 = (214.14 + 218.16 + 219.07 + 214.30) = 865.67 / 4 = 216.42
216.42 * 08.00% = 17.31
484110 = (214.89 + 214.89 + 218.20 + 220.33) = 868.31 / 4 = 217.08
217.08 * 01.50% = 3.26

195.44 + 1.09 + 17.31 + 3.26 =
217.10

Px1 (Current Price) =
$2.49

x2 (Adjustment PoP) = OP01
Ix2 = Weighted Average GII from Q4 2016 to Q3 2017 (Part 2.1, Table2) =
481112 = (218.00 + 215.33 + 220.61 + 220.61) = 874.55 / 4 = 218.64
218.64 * 90.00% = 196.78
482111 = (220.10 + 220.10 + 215.12 + 222.22) = 877.54 / 4 = 219.39
219.39 * 00.50% = 1.10
483111 = (215.02 + 218.60 + 219.05 + 218.33) = 871.00 / 4 = 217.75
217.75 * 08.00% = 17.42
484110 = (215.69 + 217.00 + 217.00 + 222.45) = 872.14 / 4 = 218.04
218.04 * 01.50% = 3.27

196.78 + 1.10 + 17.42 + 3.27 =
218.57

Px2 = (218.57 / 217.10) * $2.49 =
1.01 * $2.49 =
$2.51

The rate effective during OP01 is $0.02 greater than the rate effective during the BP.

3.2 Determine Px2 For OP02 -
x1 (Current PoP) = OP01
Ix1 = Weighted Average GII from Q4 2016 to Q3 2017 (Part 2.2, Table3) =
481112 = (220.61 + 225.16 + 225.10 + 228.13) = 899.00 / 4 = 224.75
224.75 * 90.00% = 202.28
482111 = (221.12 + 223.00 + 223.00 + 224.99) = 892.11 / 4 = 223.03
223.03 * 00.50% = 1.12
483111 = (212.20 + 217.88 + 212.00 + 217.54) = 859.62 / 4 = 214.91
214.91 * 08.00% = 17.19
484110 = (217.16 + 218.16 + 218.62 + 218.63) = 872.57 / 4 = 218.14
218.14 * 01.50% = 3.27

202.28 + 1.12 + 17.19 + 3.27 =
223.86

Px1 (Current Price) =
$2.51 (Part 3.1, Px2)

x2 (Adjustment PoP) = OP02
Ix2 = Weighted Average GII from Q4 2017 to Q3 2018 (Part 2.2, Table4) =
481112 = (219.12 + 220.19 + 220.10 + 220.13) = 879.54 / 4 = 219.89
219.89 * 90.00% = 197.90
482111 = (218.00 + 218.00 + 218.23 + 220.64) = 874.87 / 4 = 218.72
218.72 * 00.50% = 1.09
483111 = (209.00 + 217.50 + 211.44 + 213.33) = 851.27 / 4 = 212.82
212.82 * 08.00% = 17.03
484110 = (213.50 + 218.16 + 218.16 + 219.23) = 869.93 / 4 = 217.48
217.48 * 01.50% = 3.26

197.90 + 1.09 + 17.03 + 3.26 =
219.28

Px2 = (219.28 / 223.86) * $2.51 =
0.98 * $2.51 =
$2.46

The rate effective during OP02 is $0.05 less than the rate effective during OP01.

(End of clause)
ALTERNATE I (AUG 2016)

As prescribed in 5516.203-4(f), insert a clause substantially the same as the following in all commercial contracts for multimodal services with Dual (two) transportation modes and when an economic price adjustment based on the IHS Global Insight Index (GII) is anticipated:

ECONOMIC PRICE ADJUSTMENT FOR SCHEDULED SERVICES – MULTIMODAL ALTERNATE I (AUG 2016)

(a) 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). Allowable adjustments will be made upward or downward if the adjustment varies by more than X% (fillable field). The adjustment shall be based on the Global Insight Index (GII) Pricing and Purchasing Industry Forecasting for North American Industrial Classification System (NAICS) codes as follows: 1. NAICS /TITLE (PERCENTAGE) 2. NAICS /TITLE (PERCENTAGE). In the event publication of any of the above indices is discontinued, the parties shall agree upon an appropriate substitute index.
(b) 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.
(c) Price adjustments shall be executed via a contract modification.
(d) Any price adjustments under this EPA clause shall be rounded to two decimal positions (e.g., $1.50).
(e) In addition, contractors may waive an EPA increase that results in higher prices for the entire contract or identified contract line item number(s) (CLIN(s)). Secondly, if the contractor elects to do so, they can offer the Government a lower price effective for the option period in lieu of the EPA adjusted increased price. A contractor may not waive a downward EPA adjustment.

(f) All EPA adjustment calculations will be based on the current period’s prices in the Schedule and the index calculations described below. A contractor shall not recoup previously waived EPA increases.
(g) The formula for determining the adjusted unit prices for the Option Period is –

(Ix2 / Ix1) * Px1 = Px2

Solve for “Px2” where:


and:
x1 = contract PoP currently in effect (i.e., current PoP)

Therefore:

Ix2 = weighted average GII forecasted to occur during the adjustment PoP
Px1 = unit price effective during the current PoP (i.e., current unit price)
Px2 = unit price to be in effect during the adjustment PoP (i.e., economically- adjusted unit price)
* * * * * * * * * * * * *
EXAMPLE:

This example demonstrates the process for determining the economically-adjusted unit prices using the formula, (Ix2 / Ix1) * Px1 = Px2. It is based on a hypothetical contract that provides for two EPAs, the first occurs on the first day of Option Period One (OP01) and the second occurs on the first day of Option Period Two (OP02). Additional contract details are provided below in Part 1.0, Contract Specifics. Sample GII Indices are provided in Part 2.0. These specifics and indices are used in Part 3.1, Determine Px2 for OP01 and Part 3.2, Determine Px2 for OP02.
Note1: All inputs reflect its value during the CY QTs correlating with the applicable contract PoP specified in the formula (x1 and x2) at the time of each adjustment. Therefore, the CY and QT correlating with x1 and x2 will differ at the time of each adjustment; thus, requiring each input’s value to be re-calculated at time of each adjustment.
Note2: The below figures are provided as an example only.
PART 1.0, CONTRACT SPECIFICS:
This section contains information and specifics of the hypothetical contract used to demonstrate the process for determining Px2 using the formula, (Ix2 / Ix1) * Px1 = Px2. These specifics apply to all parts of this example.

Contract PoPs:
Base Period (BP): 01 October 2015 - 30 September 2016
OP01: 01 October 2016 - 30 September 2017
OP02: 01 October 2017 - 30 September 2018

Sample excerpt from paragraph (a) of this clause:

PART 2.0, SAMPLE INDICES:
The following indices are used to calculate the economically-adjusted unit price for each Option Period, demonstrated in Part 3.0 of this example.

2.1 Quarterly GII for Part 3.1 -
Table1 provides the GII for each CY QT occurring during x1.

QUARTERLY GII DURING THE BP
01 OCTOBER 2015 THROUGH 30 SEPTEMBER 2016

TABLE1: GII DURING x1

NAICS

QUARTERLY GII

2015
QT4

2016
QT1

2016
QT2

2016
QT3

481112

216.00

214.67

218.92

219.00

483111

214.14

218.16

219.07

214.30

Table2 provides the GII for each CY QT occurring during x2.

QUARTERLY GII DURING OP01
01 OCTOBER 2016 THROUGH 30 SEPTEMBER 2017

TABLE2: GII DURING x2

NAICS

QUARTERLY GII

2016
QT4

2017
QT1

2017
QT2

2017
QT3

481112

218.00

215.33

220.61

220.61

483111

215.02

218.60

219.05

218.33

2.2 Quarterly GII for Part 3.2 -
Table3 provides the GII for each CY QT occurring during x1.

QUARTERLY GII DURING THE OP01
01 OCTOBER 2016 THROUGH 30 SEPTEMBER 2017

TABLE3: GII DURING x1

NAICS

QUARTERLY GII

2016
QT4

2017
QT1

2017
QT2

2017
QT3

481112

220.61

225.16

225.10

228.13

483111

212.20

217.88

212.00

217.54

Table4 provides the GII for each CY QT occurring during x2.

QUARTERLY GII DURING OP02
01 OCTOBER 2017 THROUGH 30 SEPTEMBER 2018

TABLE4: GII DURING x2

NAICS

QUARTERLY GII

2017
QT4

2018
QT1

2018
QT2

2018
QT3

481112

219.12

220.19

220.10

220.13

483111

209.00

217.50

211.44

213.33

PART 3.0, DETERMINE THE ECONOMICALLY ADJUSTED PRICE (Px2) FOR OP01 AND OP02:
The adjustments for each OP are demonstrated below. Part 3.1 shows a sample adjustment from the BP to OP01. Part 3.2 shows a sample adjustment from OP01 to OP02.
Both adjustments are determined using the formula, (Ix2 / Ix1) * Px1 = Px2.

Note3 The weighted average GII (I) results from first computing the four-quarter average of each NC listed in paragraph (a) (i.e., add the GII for each CY QT occurring during the applicable contract PoP divided by the number of CY QTs). Then each average is multiplied by its respective weight (%). Each product is then added together to establish the weighted, average-GII during the applicable contract PoP.

3.1 Determine Px2 For Op01 -
x1 (Current PoP) = BP
Ix1 = Weighted Average GII from Q4 2015 to Q3 2016 (Part 2.1, Table1)
481112 = (216.00 + 214.67 + 218.92 + 219.00) = 868.59 / 4 = 217.15
217.15 * 90.00% = 195.44
483111 = (214.14 + 218.16 + 219.07 + 214.30) = 865.67 / 4 = 216.42
216.42 * 10.00% = 21.64

195.44 + 21.64 =
217.08

Px1 (Current Price) =
$2.49

x2 (Adjustment PoP) = OP01
Ix2 = Weighted Average GII from Q4 2016 to Q3 2017 (Part 2.1, Table2) =
481112 = (218.00 + 215.33 + 220.61 + 220.61) = 874.55 / 4 = 218.64
218.64 * 90.00% = 196.78
483111 = (215.02 + 218.60 + 219.05 + 218.33) = 871.00 / 4 = 217.75
217.75 * 10.00% = 21.78

196.78 + 21.78 =
218.56

Px2 = (218.56 / 217.08) * $2.49 =
1.01 * $2.49 =
$2.51

The rate effective during OP01 is $0.02 greater than the rate effective during the BP.

3.2 Determine Px2 For OP02 -
x1 (Current PoP) = OP01
Ix1 = Weighted Average GII from Q4 2016 to Q3 2017 (Part 2.2, Table3) =
481112 = (220.61 + 225.16 + 225.10 + 228.13) = 899.00 / 4 = 224.75
224.75 * 90.00% = 202.28
483111 = (212.20 + 217.88 + 212.00 + 217.54) = 859.62 / 4 = 214.91
214.91 * 10.00% = 21.49

202.28 + 21.49 =
223.77

Px1 (Current Price) =
$2.51 (Part 3.1, Px2)

x2 (Adjustment PoP) = OP02
Ix2 = Weighted Average GII from Q4 2017 to Q3 2018 (Part 2.2, Table4) =
481112 = (219.12 + 220.19 + 220.10 + 220.13) = 879.54 / 4 = 219.89
219.89 * 90.00% = 197.90
483111 = (209.00 + 217.50 + 211.44 + 213.33) = 851.27 / 4 = 212.82
212.82 * 10.00% = 21.28

197.90 + 21.28 =
219.18

Px2 = (219.18 / 223.77) * $2.51 =
0.98 * $2.51 =
$2.46

The rate effective during OP02 is $0.05 less than the rate effective during OP01.

(End of clause)
ALTERNATE II (AUG 2016)

As prescribed in 5516.203-4(f), insert a clause substantially the same as the following in all commercial contracts for multimodal services with a Single (one) mode and when an economic price adjustment based on the IHS Global Insight Index (GII) is anticipated:

ECONOMIC PRICE ADJUSTMENT FOR SCHEDULED SERVICES – MULTIMODAL ALTERNATE II (AUG 2016)

(a) 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 Period beginning (Day/Month/Year – fillable field). Allowable adjustments will be made upward or downward if the adjustment varies by more than X%. (fillable field) The adjustment shall be based on the Global Insight Index (GII) Pricing and Purchasing Industry Forecasting for North American Industrial Classification System (NAICS) code as follows: NAICS /TITLE. In the event publication of the above index is discontinued, the parties shall agree upon an appropriate substitute index.

(b) 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.

(c) Price adjustments shall be executed via a contract modification.

(d) Any price adjustments under this EPA clause shall be rounded to two decimal positions (e.g., $1.50).

(e) In addition, contractors may waive an EPA increase that results in higher prices for the entire contract or identified contract line item number(s) (CLIN(s)). Secondly, if the contractor elects to do so, they can offer the Government a lower price effective for the option period in lieu of the EPA adjusted increased price. A contractor may not waive a downward EPA adjustment.

(f) All EPA adjustment calculations will be based on the current period’s prices in the Schedule and the index calculations described below. A contractor shall not recoup previously waived EPA increases.

(g) The formula for determining the adjusted unit prices for the Option Period is –

(Ix2 / Ix1) * Px1 = Px2

Solve for “Px2” where:


and:
x1 = contract PoP currently in effect (i.e., current PoP)

Therefore:

Ix2 = average GII forecasted to occur during the adjustment PoP
Px1 = unit price effective during the current PoP (i.e., current unit price)
Px2 = unit price to be in effect during the adjustment PoP (i.e., economically- adjusted unit price)
* * * * * * * * * * * * *
EXAMPLE:

This example demonstrates the process for determining the economically-adjusted unit prices using the formula, (Ix2 / Ix1) * Px1 = Px2. It is based on a hypothetical contract that provides for two EPAs, the first occurs on the first day of Option Period One (OP01) and the second occurs on the first day of Option Period Two (OP02). Additional contract details are provided below in Part 1.0, Contract Specifics. Sample GII Indices are provided in Part 2.0. These specifics and indices are used in Part 3.1, Determine Px2 for OP01 and Part 3.2, Determine Px2 for OP02.
Note1: All inputs reflect its value during the CY QTs correlating with the applicable contract PoP specified in the formula (x1 and x2) at the time of each adjustment. Therefore, the CY and QT correlating with x1 and x2 will differ at the time of each adjustment; thus, requiring each input’s value to be re-calculated at time of each adjustment.
Note2: The below figures are provided as an example only.
PART 1.0, CONTRACT SPECIFICS:
This section contains information and specifics of the hypothetical contract used to demonstrate the process for determining Px2 using the formula, (Ix2 / Ix1) * Px1 = Px2. These specifics apply to all parts of this example.

Contract PoPs:
Base Period (BP): 01 October 2015 - 30 September 2016
OP01: 01 October 2016 - 30 September 2017
OP02: 01 October 2017 - 30 September 2018

Sample excerpt from paragraph (a) of this clause:

PART 2.0, SAMPLE INDICES:
The following indices are used to calculate the economically-adjusted unit price for each Option Period, demonstrated in Part 3.0 of this example.

2.1 Quarterly GII for Part 3.1 -
Table1 provides the GII for each CY QT occurring during x1.

QUARTERLY GII FOR NC 483111 DURING THE BP
01 OCTOBER 2015 THROUGH 30 SEPTEMBER 2016

TABLE1: GII DURING x1

CY

QT

GII

2015

QT4

214.14

2016

QT1

218.16

2016

QT2

219.07

2016

QT3

214.30

Table2 provides the GII for each CY QT occurring during x2.

QUARTERLY GII FOR NC 483111 DURING OP01
01 OCTOBER 2016 THROUGH 30 SEPTEMBER 2017

TABLE2: GII DURING x2

CY

QT

GII

2016

QT4

215.02

2017

QT1

218.60

2017

QT2

219.05

2017

QT3

218.33

2.2 Quarterly GII for Part 3.2 -
Table3 provides the GII for each CY QT occurring during x1.

QUARTERLY GII FOR NC 483111 DURING THE OP01
01 OCTOBER 2016 THROUGH 30 SEPTEMBER 2017

TABLE3: GII DURING x1

CY

QT

GII

2016

QT4

212.20

2017

QT1

217.88

2017

QT2

212.00

2017

QT3

217.54

Table4 provides the GII for each CY QT occurring during x2.

QUARTERLY GII FOR NC 483111 DURING OP02
01 OCTOBER 2017 THROUGH 30 SEPTEMBER 2018

TABLE4: GII DURING x2

CY

QT

GII

2017

QT4

209.00

2018

QT1

217.50

2018

QT2

211.44

2018

QT3

213.33

PART 3.0, DETERMINE THE ECONOMICALLY ADJUSTED PRICE (Px2) FOR OP01 AND OP02:
The adjustments for each OP are demonstrated below. Part 3.1 shows a sample adjustment from the BP to OP01. Part 3.2 shows a sample adjustment from OP01 to OP02.
Both adjustments are determined using the formula, (Ix2 / Ix1) * Px1 = Px2.

Note3: The average GII (I) results from adding the GII for each CY QT occurring during the applicable contract PoP divided by the number of CY QTs.

3.1 Determine Px2 For Op01 -
x1 (Current PoP) = BP
Ix1 = Average from Q4 2015 to Q3 2016 (Part 2.1, Table1) =
(214.14 + 218.16 + 219.07 + 214.30) / 4 =
865.67 / 4 =
216.42
Px1 (Current Price) =
$2.49

x2 (Adjustment PoP) = OP01
Ix2 = Average from Q4 2016 to Q3 2017 (Part 2.1, Table2) =
(215.02 + 218.60 + 219.05 + 218.33) / 4 =
871.00 / 4 =
217.75
Px2 = (217.75 / 216.42) * $2.49 =
1.01 * $2.49 =
$2.51

The rate effective during OP01 is $0.02 greater than the rate effective during the BP.

3.2 Determine Px2 For OP02 -
x1 (Current PoP) = OP01
Ix1 = Average from Q4 2016 to Q3 2017 (Part 2.2, Table3) =
(212.20 + 217.88 + 212.00 + 217.54) / 4 =
859.62 / 4 =
214.91
Px1 (Current Price) =
$2.51 (Part 3.1, Px2)

x2 (Adjustment PoP) = OP02
Ix2 = Average from Q4 2017 to Q3 2018 (Part 2.2, Table4) =
(209.00 + 217.50 + 211.44 + 213.33) / 4 =
851.27 / 4 =
212.82

Px2 = (212.82 / 214.91) * $2.51 =
0.99 * $2.51 =
$2.48

The rate effective during OP02 is $0.03 less than the rate effective during OP01.


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 solicitations and contracts:

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 in solicitations and contracts:
COMMON ACCESS CARDS (CACs) FOR CONTRACTOR PERSONNEL (JUL 2014)
(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 Trusted Associate Sponsorship System (TASS): 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 TASS. The TASS 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 TASS. 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 TASS 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 the Office of Personnel Management (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 Personnel Security Management Office for Industry (PSMO-I). In this instance, before the TA approves the CAC application in TASS, the TA must verify that the background investigation, name, fingerprint, and criminal records check has been favorably adjudicated before the application for TASS 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 website. 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 TASS 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 when the air carriers hold a current Air Carrier Operating Certificate issued by the Federal Aviation Agency under Part 121 of the Federal Aviation Regulation, or a comparable foreign carrier operating certificate issued by a foreign government body:

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 2015)

As prescribed by 5547.4-100(b)(2), when 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, substitute the following paragraph (a) for the paragraph (a) of 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 2015)

As prescribed by 5547.4-100(b)(3), when using FAR Part 12 procedures, substitute the following paragraph (b) for the paragraph (b) of the basic clause.
(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 in 5547.4-100(c)(1), insert the following clause in solicitations and contracts for award of international charter airlift transportation:

CONTRACTOR’S FAILURE TO PROVIDE SERVICE (AUG 2015)

(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, on DOD owned and operated aircraft. 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, itself, on DOD owned and operated aircraft. 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 (AUG 2015)

As prescribed by 5547.4-100(c)(2), for award of domestic charter airlift transportation, 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 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 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, on DOD owned and operated aircraft. 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, itself, on DOD owned and operated aircraft. 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 (AUG 2015)

As prescribed by 5547.4-100(c)(3),when using FAR Part 12 procedures for award of international and domestic charter airlift transportation, 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, on DOD owned and operated aircraft. 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 2015)

As prescribed by 5547.4-100(c)(4), for award of the Domestic Charter Airlift Services contract, 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 not constitute a termination under FAR clause 52.212-4, “Contract Terms and Conditions—Commercial Items.” 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, on DOD owned and operated aircraft. 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, on DOD owned and operated aircraft. 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 solicitations and contracts for air transportation services which require CRAF participation as a prerequisite for award, 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 (AUG 2015)

(End of Clause)

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