> NOTICE TO THE TRADE

This notice is to clarify the procedures for booking Title II food aid
cargoes. Point of contact for any comments or questions is Ken Howard,
202-712-5015; <khoward@usaid.gov>.

> Booking Guidelines for
>
> [Title II Food Aid Program]{.underline}
>
> [For]{.underline}
>
> [COOPERATING SPONSORS AND FREIGHT FORWARDERS]{.underline}
>
> Revised (**September 2001**)
>
> BOOKING GUIDELINES

A. Freight Solicitations

\(1\) Solicitations must be published on the Transportation News

Ticker (TNT) and at least one other comparable means of trade

communications. In addition, all freight solicitations must be

published on the USAID Procurement and Business Opportunities

Bulletin Board (BBS) in the exact, fully completed format

presented in Attachment 1. Items for the USAID BBS may either be

submitted via E-Mail to "Trans_Coordinato@USAID.Gov"(with the
solicitation as a text document) or delivered in a diskette format via
messenger to the Transportation Division which must be received within
12 hours of publication on the TNT.

(2)(a) Each solicitation shall state a deadline for receipt of

offers (place, date, and time). In considering an appropriate

response time, sufficient time must be provided for prospective

offerors to consider and respond to the solicitation. The

deadline for submission of offers should be, at a minimum, at

least 48 hours from the time of publication. More time may be

appropriate if the solicitation requirements demand comprehensive

research.

(2)(b) Solicitations should clearly state all terms and

conditions beyond those stated in these Booking Guidelines (BG).

\(3\) Solicitations are to be designated either \"Urgent\" or \"Non-

Urgent\". Cooperating Sponsors may impose a Loading Delay

Assessment (LDA) or Delivery Delay Assessment (DDA). \"Urgent\"

classifications involve a higher loading delay assessment

(see Attachment 2). Such classifications must be approved by USAID\'s
Transportation Division.

\(4\) In the event it is necessary to make changes to a

solicitation after issuance but before the time set for

submission of offers, such changes must also be published on the

BBS and on the TNT. When issuing an amendment, the Cooperating

Sponsor and/or its freight forwarder (hereinafter collectively

referred to as \"the shipper\") shall determine whether the closing

date of the solicitation needs to be extended, keeping in mind

the need to provide sufficient time for prospective offerors to

consider the effect of the changes on their willingness to offer,

and the rate/amount of their offer.

\(5\) Any information given to a prospective offeror shall be

published on the USAID BBS and TNT as a solicitation amendment in

accordance with (4) above if the information is necessary in

submitting offers or it would provide advantage or prejudice to a

prospective offeror.

B. Receipt of Offers

\(1\) Offers shall be marked with the date and time of receipt, and

shall be effectively safeguarded against loss or unauthorized

disclosure.

\(2\) The shipper shall take reasonable precautions to assure that

the information contained in the offers is not disclosed

publically, i.e., to individuals who do not have an official

\"need to know\" such information, prior to award. In particular,

the number of offers received, the rate/amount of the offers or

the conditions attached thereto, and the identity of the

offerors shall not be disclosed.

C. Late Offers and Modifications

\(1\) Offerors are responsible for submitting offers, and any

modifications to them, so as to reach the designated place before

the time specified as the deadline for receipt of offers.

Offerors are cautioned to submit offers via electronic means well

in advance in order to avoid congestion or other problems just

prior to the designated closing time.

\(2\) Offers and modifications to offers received after the exact

time specified shall not be considered, even if late receipt is

due to shipper mishandling, or to technical problems.

D. Evaluation of Offers

\(1\) In order to be considered, offers must be responsive to the

terms and conditions of the solicitation ***and deemed responsible***.

Non-responsive bids will be rejected. However, the shipper may waive

minor irregularities and permit correction of apparent clerical errors.

Such \"clarifications\" will not be considered \"discussions\".

\(2\) The shipper will evaluate the responsive bids in one of three

ways. The method that is chosen must be stated in the

solicitation and must be strictly followed by the shipper.

\(a\) Bids may be evaluated solely on the basis of price.

\(b\) Alternatively, the shipper may assign a weight, normally

not greater than 10% of the total, to past performance and

> quality of service by the carrier (see paragraph J, Past
>
> Performance). ***The shipper must notify USAID/KCCO prior to the***
>
> ***issuance of the freight tender if this method is to be used in***
>
> ***the evaluation.***

\(c\) Bids may be excluded because of past performance that

has been afforded due process by each shipper, however, such

exclusions must be done in writing and prior to the issuance

of a freight solicitation. Such information to be shared by

shippers in ad hoc meetings created by shippers to share

carrier performance issues. (See paragraph H, Due Process)

If alternative (b) is chosen, the shipper must document in

its files the basis for its judgment as to past performance

quality. This judgment will not be reviewed by USAID except

in cases in which fraud or bad faith are alleged with

adequate supporting information by the affected carrier

\(3\) The shipper will submit the rates quoted by the lowest

responsive (or, if a point system as described in (2)(b) above is

utilized, the rates quoted by the offerors with the most

favorable \"weighted\" offers) U.S.-flag and foreign-flag offers to

the USDA Kansas City Commodity Office (KCCO) ***for flagging***. If a

Maritime Administration (MARAD) guideline rate is pertinent USAID,

upon advise from MARAD, will advise the shipper whether the rates

submitted are \"fair and reasonable\". KCCO will also advise ***the
shipper***,

after taking into account cargo preference requirements, whether award
must be made on a U.S. or foreign-flag basis.

\(4\) KCCO will no longer release the name of the \"guideline\"

carrier or the rate. Such information will only be available

outside the U.S. Government after award.

E. Award Without Discussions

Once a flag determination has been made and the rate is approved

by KCCO, and no changes in the material terms and conditions

specified in the solicitation are required, the shipper shall

make award to that offeror without discussion or negotiation.

F. Award with Discussions

\(1\) If a submitted rate is not approved by KCCO, or USAID, or if

changes in the terms and conditions of the solicitation are

required, the shipper shall conduct discussions with all of the

originally responsive offerors. In addition, the shipper shall

include nonresponsive offerors whose offers were nonresponsive

solely due to failure to meet terms and conditions of the

original solicitation which have been changed, if the change

appears to be such that it might substantially affect the offer.

If it is not clear whether an offer should be included, it should

be included.

\(2\) The offerors shall be provided with a reasonable opportunity

to submit price or other revisions to their offer resulting from

the discussions. However, the shipper shall not engage in

auction techniques such as (a) indicating a price that must be

met in order to obtain further consideration; (b) advising an

offeror of its standing in relation to other offerors (except

that it is permissible to inform an offeror that its price is too

high); (c) furnishing information about the price or other terms

and conditions of other offers; or (d) conducting unnecessary

multiple rounds of revisions in order to lower the rates

(however, more than one round of revisions is permissible when

changes to the terms and conditions justify it).

\(3\) Upon completion of discussions, the shipper shall request

written final offers from all responsive offerors (if there has

been more than one round of offers, the request should be

directed only to those offerors who were responsive in the

immediately previous round). If the request is made orally, it

should be promptly confirmed in writing. All offerors shall submit their
final revised offers against the same material terms and conditions.

\(4\) The shipper should provide sufficient time, normally 24

hours (excluding Saturdays, Sundays and Holidays) for submission

of best and final offers. Late offers or modifications shall be

handled in accordance with paragraph C above.

\(5\) The shipper shall evaluate the responsiveness of the final

offers and submit the lowest responsive U.S.-flag and foreign-

flag offers to KCCO as described in paragraph D(3), evaluation of

offers above.

G. Award

\(1\) Award shall be made by presentation of a completed and signed

award notice, in the form provided in Attachment 2, to the

offeror for countersignature.

\(2\) Promptly after making the award, the shipper shall:

\(a\) Provide a copy of the completed, countersigned Booking

Note to:

Office of Procurement

Transportation Division (M/OP/TC)

1300 PENNSYLVANIA AVE

U.S. Agency for International Development

Washington, DC 20523-1419

and,

USDA, KCCO/EOD

Farm Service Agency

P.O. Box 419205

Kansas City, MO 64141-0205

\(b\) Publish a notice of award in the USAID BBS and TNT

including the name of the successful offeror; the rate; and rate

for any other contracted services, if any; the commodity; the

tonnage; and the load and discharge ports.

# H. Due Process/ Cure Notice/Suspensions/Debarments 

Due process is based on the Federal Acquisition Regulation (FAR) Section
9.406.3. Procedures governing the suspension/debarment process are to be
as informal, practicable and consistent with the principles of
fundamental fairness. The procedure shall afford the carrier an
opportunity to submit information and challenge the proposed
suspension/debarment. Note: Parties in any performance dispute are
expected to handle routine administrative and operational issues among
themselves. USAID will intercede only when contractual compliance is
unattainable and or food aid program goals are in jeopardy. In essence,
the due process would be as follows:

The carrier is informed of substandard service has been or is being
performed in the form of detail supporting documentation of the
substandard service is provided to the shipper. The carrier will
investigate the allegation based on documentation and discussions with
all parties. A judgment on the course of action to best remedy the
situation will be made. If USAID finds the carrier is at fault a "cure"
letter will be written to the offending party stating the lack of
service or otherwise describing the poor performance and requesting an
explanation and corrective action. The time period for this response
will be within 30 days of the date of the cure letter. During this
period the carrier will be able to continue to offer services and be
eligible for awards. However, the carrier will review the shipper's
response and make a determination as to the resolve and commitment
timeline for implementation of corrective actions to cure the current
situation and to avoid a recurrence of similar performance in future
contracts.

If the carrier is unable or unwilling to correct the situation the
contracting office will issue a notice of suspension or a debarment to
the carrier.

> I. Point of Transfer

Delivery of the commodity from the commodity supplier shall be complete,
and risk of loss, including infestation, shall transfer to the ocean
carrier when the carrier, or the carrier\'s agent, accepts the commodity
at the point of delivery, defined as the \"transport terminal.\" The
transport terminal my be a point where the commodity is placed safely at
rest at the freight station, a container terminal or yard, a
multi-purposed cargo terminal , or any similar receiving point,
including an ocean going container. The ocean carrier must nominate the
transport terminal at the time of booking. ***In the case where the
supplier places the cargo directly under the ship\'s tackle, delivery
shall be fulfilled when the cargo has been placed alongside the vessel
on the quay at the named port of shipment***.

The record of the receipt and acceptance of the commodity shall be the
Form KC-366, Shipment Information Log. The liability, as defined above
shall be assumed by the ocean carrier notwithstanding port tariffs,
customs, or the fact that the cargo was in custody of the port
officials. If the ocean carrier, or carrier\'s agent, is not present
when the commodity is delivered, the quantity stated on the Form KC-366
by the party responsible for unloading or transferring the commodity
will establish the liability of the ocean carriers.

For commodities and delivery points that require vessel loading

observation (VL0) certification, the ocean carrier, or the carrier\'s
agent must review, agree to, and sign the daily worksheet prepared by
the VLO contractor or other representative of Commodity Credit
Corporation (CCC). The quantity shown as damaged on the daily worksheet
and or VLO certificate, shall not be included in the quantity recorded
on the Ocean Bill of Lading. A copy of the VLO certificate must be
submitted as part of the freight payment package.

> J. Past Performance

Past performance ratings ***will*** be compiled by the Cooperating
Sponsors and their forwarder and submitted to USAID on a voyage by
voyage basis. Carrier performance will be examine in the following
areas:

Communication

On Time Performance

Documentation

Consignee appraisal

Settlement of Claims

Data will be accumulated and maintained in a data base and will serve as
an indicator of carrier performance and aid in the evaluation of offers
(See paragraph D. Evaluation of Offers, subparagraph (b)). Detail
relating to carrier performance criteria is available through USAID.

K. Contract Terms and Conditions

\(1\) Basic uniform contract terms and conditions are provided in

Attachment 2. These provisions are mandatory.

\(2\) Additional terms and conditions necessary to complete a sound

agreement, consistent with these provisions, may be utilized by shippers
without USAID approval.

L. Payment

Payment to carriers will be made by shippers upon presentation of

the documentation specified in Attachment 2 as promptly as is

administratively feasible after receipt of freight payment from

USAID. If loading/delivery delay assessment is included in

booking note, partial payment details will be stated in freight

tender.

M. Exceptions

Exceptions to the BGs must be approved in writing by USAID.

> N. Legal Effect and Disputes

\(1\) These BGs are established by USAID as U.S. Government

implementing agency in order to promote sound Title II program

administration. Notwithstanding the exercise of its rights and

responsibilities with respect to the Title II program, including

these BGs, the shipper and carrier agree that USAID shall not

incur any liability thereby and shall not be deemed a party to

any contract of affreightment awarded or contemplated between

such shipper and the carrier.

\(2\) All protests or disputes arising under or relating to the

bookings shall be settled solely between the shipper and the

carrier in accordance with standard NORGRAIN New York Arbitration

Clause.

\(3\) Nothing in these BGs establishes any right or remedy against

either USAID or the shipper on behalf of a carrier for

noncompliance. The contract of affreightment solely governs all

rights and obligations between the shipper and the carrier.

USDA Freight Guidelines

Attachment 1 - BOOKING GUIDELINES --- **September 2001**

REQUEST FOR FREIGHT PROPOSALS

1\. Number\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 2.
Date\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

3\. Issued by\_\_\_\_\_\_\_\_\_\_\_\_\_ 4. On Behalf
of\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(For Carriage of PL-480 Title II Commodities)

5\. Full Cargo Description:

6\. Cargo Weight:

7\. Load/Discharge Port(s):

8\. Estimated Cargo Availability Date(s) Without Guarantee:

9\. Cargo is (is not) designated \"Urgent\" as approved by USAID.

10\. Approved Exceptions to Standard USAID Title II Terms,

Procedures and Formats:

11\. Other Requirements or Pertinent Information:

a\. Vessel\'s itinerary and current position;

b\. Full particulars on vessel owner\'s company including

officers, address and bank reference, etc.

12\. Offers may be submitted via FAX (No ), Telex (No

) or delivered to:

13\. Offers received
after\_\_\_\_\_\_\_\_\_\_date/time\_\_\_\_\_\_\_\_\_ will not be

considered.

14\. Evaluation and Contract Award: Offers which do not comply

with mandatory requirements of this RFP, including but not

limited to the minimums and maximums specified above, will not be

considered. Offers must include full particulars demonstrating

the willingness and ability to meet these
requirements.\_\_\_\_\_\_\_\_\_\_

reserves the right to award without discussions. Award will be

to the lowest responsible offeror meeting the mandatory

requirements of this RFP.

15\. Contract and Payment Terms: Except to the extent provided

above, this RFQ is subject to the standard USAID Title II

Cooperating Sponsor Booking Guidelines, which are fully

incorporated herein. Copies of these Guidelines may be obtained

from USAID Website, WWW.INFO.USAID.GOV.

Attachment 2 - BOOKING GUIDELINES --- **September 2001**

USDA STANDARD NOTICE OF AWARD AND

OCEAN CARGO BOOKING NOTE/CONTRACT OF CARRIAGE

Agreement dated\_\_\_\_\_\_\_\_\_\_by and
between\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_and

(Shipper)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Carrier)

for the carriage of the following cargo subject to the terms and

conditions set forth below.

1\. Vessel Name and Flag

2\. Cargo Description and Weight:

Shipment is (is not) designated Urgent.

3\. Load Port:

4\. Load date (This is a firm date, which has been mutually agreed upon
by the carrier and shipper ***and*** is the contractually legal date in
case of disputes***). This date can not be earlier than the load
date.***

5.  ***Transshipment Port:***

6.  Discharge Port

7.  Freight Rate***(Ocean and other freight must be shown separately)***

8\. Special Instructions:

9\. Notwithstanding any provisions in the on-board ocean bill of

lading and/or any other document evidencing or relating to the

agreement between the carrier and the shipper, the following

shall govern the terms of carriage of this shipment; and any

provision in any such document which adds to or varies the

rights, responsibilities or immunities of the parties shall be

void and of no effect unless otherwise provided in this contract.

10\. It is mutually agreed that this contract is subject to all

the terms and provisions of the Carriage of Goods by Sea Act (46

U.S.C. 1300 et seq.) unless otherwise provided in this contract.

11\. Provided the carrier has used due diligence to make the

vessel seaworthy, then in the event of accident, danger, damage

or disaster before or after commencement of the voyage resulting

from any cause whatsoever, whether due to negligence or not, for

which, or for the consequences of which the carrier is not

responsible by statute, contract or otherwise, the goods,

consignees or owners of the goods shall contribute with the

carrier in general average to the payment of any sacrifices,

losses or expenses of a general average nature that may be made

or incurred including salvage and special charges incurred in

respect to the goods. If a salving ship is owned or operated by

the carrier, salvage shall be paid for as fully as if the said

salving ship or ships belonged to strangers. General Average

shall be payable according to York/Antwerp Rules 1974. Cargo is to be
released without general average security.

12\. Any expense which the carrier may incur in connection with

delivery of this shipment at destination as a result of delay to

the vessel due to the consignee\'s fault shall be for the account

of the consignee and the carrier shall have no recourse against

the shipper on that account unless they are the same in which

case the carrier may file a claim against the shipper.

13\. The Carrier shall notify the Shipper of the vessel\'s

position, status and ETA 21, 14, and 7 days prior to the

scheduled load date, or in accordance with such other schedule as

the shipper may direct. Failure to provide such reports will be

considered a material breach of this contract, and may result in

cancellation of the booking including application of clause 15

(in the case of the 14 and 7 day notices) at the shipper\'s sole

discretion.

14\. If the carrier determines that the vessel originally

scheduled for lifting the cargo will be unable to meet its

loading date, or that a substitute vessel must be nominated to

perform, the carrier shall promptly notify the shipper in writing; and
cargo shall not be loaded to any substitute vessel

without prior approval of the shipper.

15\. If the carrier determines that the vessel originally

scheduled, or a substitute vessel approved by the shipper, will

be unable to lift urgent cargo within five days of the contracted

load date or lift non-urgent cargo within 10 days of the

contracted load date, the carrier shall promptly notify the

shipper and propose a later load date. If such notice is

received not less than 21 days before the contracted load date,

the shipper may either accept the later load date or cancel the

booking without cost to the carrier. If the notice is received

less than 21 days before the contracted load date, the shipper

may either cancel the booking (in which case, clause 15 is to

apply) or accept the later load date and apply a Loading Delay

Assessment(LDA) of \$1.00 per ton per calendar day or pro rata part

thereof of delay for non-urgent cargo and \$2.00 per ton per

calendar day or pro rata part thereof of delay for urgent cargo,

assessed on delayed cargo. In the event that a vessel loads

beyond the contracted loading date, regardless of acceptance of

late loading or vessel substitute, any cost as per clause 15 are

applicable.

16\. In the event the vessel fails to lift all or part of the

shipment as originally booked due to any cause other than

shipper\'s fault or negligence, the carrier shall be responsible

for all expenses resulting from such failure including but not

limited to carrying charges, pier or warehouse storage, rail,

truck and/or barge demurrage, inspection, fumigation and

deterioration and reprocurement costs.

17\. Subject to the provisions of Clause 10, after loading aboard

ship, the carrier shall not dispose of the cargo in any manner

except by delivery to consignee at the scheduled port(s) of

discharge without the prior written approval of the shipper.

18\. Freight is earned upon loading, vessel lost or not lost.

19\. Payment will be made against the documentation specified

below. The shipper will submit this documentation to USAID Office of
Food for Peace as promptly as is administratively feasible after receipt
from the

carrier. Further, payment to the carrier shall be as prompt as is
administratively feasible following receipt by the shipper or their
forwarder of freight amounts from USAID.

a\. Clean, unclaused, rated on-Board Bill of Lading meeting

the requirements of USAID Regulation 2, 22 CFR Part 202,

Section 202.7(b).

b\. Copy of Vessel Hold and/or Container Inspection

Certificate.

c\. Copy of Carrier\'s applicable tariff covering this

shipment.

d.\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_invoice
for Payment of

Agent\'s Commission marked \"Paid\".

e\. Fully signed copy of the Booking Agreement/Contract of

Carriage.

f\. Letter from the Shipper stating that the carrier has

paid (or made satisfactory arrangements to pay) all charges

and expenses (including Loading Delay Assessments), if any,

resulting from the carrier\'s failure to lift cargo as

> scheduled in accordance with this booking note or authorizing the
> Shipper to deduct specified expenses and charges from the freight
> amounts.

g\. A.I.D. Form 1550-5 signed by the carrier.

20\. Breakbulk cargo shall be stowed and carried below

decks/unless otherwise provided herein or authorized in writing by

the shipper.

21\. One or more commissions, not to exceed a total of 2-1/2%, on

freight, vessel lost or not lost, is due on signing this booking

confirmation and payable upon presentation of proper

documentation as follows: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

22\. Goods shall be carried by named vessel, or approved

substitute, from loading port to destination and shall not be

transhipped unless provided for as a term of this booking note or

prior written permission is received from the shipper.

If the cargo is to be transshipped, the originating carrier shall issue
a through bill of lading to cover the entire movement and agree to
assume all risk and expense to final destination notwithstanding any
provision of the bill of lading to the contrary.

23\. Without exception the carrier shall arrange at its own

expense to have a qualified person or organization, either

government or commercial, acceptable to the shipper, inspect each

hold tank, lighter, or container into which cargo is to be loaded

and obtain from such inspector a Vessel Hold Inspection

Certificate stating that all containing units were inspected

prior to loading and found to be clean, dry and free of insect

infestation.

24\. In case of claims for loss, damage or shrinkage in transit,

or any other claims against the carrier, the rules and conditions

governing commercial shipments and provisions of the Carriage of

Goods by Sea Act of 1936 shall not apply as to the period within

which notice thereof shall be given the carriers or to period

within which claim therefore shall be made or suit instituted.

25\. Any terms or provisions inserted in or deleted from this

form by the carrier or its agents shall be null and void unless

approved in writing by the shipper.

25\. All the terms and conditions of this contract are subject to

the applicable provisions of the Agricultural Trade Development

and Assistance Act of 1954, as amended, and regulations issued

thereunder, as amended.

26\. Carrier is to nominate a USDA-approved loading pier when and

as requested by the shipper. Carrier is to be liable for all

costs incurred due to failure to provide this information.

27\. The U.S. Department of Agriculture, Kansas City Commodity

Office\'s guidelines for \"Claims for Over, Short and Damaged Cargo

Documentation\", dated, ***November 1, 1988*** is fully incorporated in
this contract.

28\. The cargo to be transported under this contract must be

loaded on board the vessel in a United States port.

29\. Carrier not to relet cargo to other carriers or operators

unless shipper has given prior approval.

30\. Carrier agrees that any deviation in mode of delivery

(direct, relay or transshipment), without the prior approval of

the shipper, will result in an ocean freight

revision to the lowest rate offered for an acceptable mode of delivery
under the

freight tender under which contract was made. For U.S. flag

vessels only: If service provided under this contract is deemed

by the U.S. Maritime Administration not to be U.S. flag service

for cargo preference purposes, the contracted rate to be reduced

to the lowest responsive foreign flag rate. Carrier also agrees

to refund the amount of this revision, or to permit the deduction

of the amount from any sums remaining to be paid and due and

owing, in the event that a deviation is discovered after payment

is made, in whole or in part.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Date
\_\_\_\_\_\_\_\_\_\_\_\_

(Carrier)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Date
\_\_\_\_\_\_\_\_\_\_\_\_

(Shipper/Cooperating Sponsor)