[Federal Register Volume 72, Number 108 (Wednesday, June 6, 2007)]
[Notices]
[Pages 31299-31300]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-2807]


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DEPARTMENT OF DEFENSE

Department of the Army


Mandatory Provision of Warehouse Performance Bond by Department 
of Defense Personal Property Storage Transportation Service Providers 
(TSPs)/Contractors

AGENCY: Department of the Army, DOD.

ACTION: Notice.

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SUMMARY: The Military Surface Deployment and Distribution Command 
(SDDC), as the Program Manager for Department of Defense (DOD) Personal 
Property Storage Program, is informing the Non-Temporary Storage (NTS) 
Transportation Service Provider (TSP)/contractor community of the 
mandatory requirement to provide a Warehouse Performance Bond (WPD) 
coverage for all contracts/agreements in the DOD Personal Property Non-
Temporary Storage Program. The cost of WPB shall be included in 
agreements/contracts with movers and WPB shall be used to offset costs 
to the DOD associated with a termination of these contracts with 
movers.
    All shipments that have been awarded up or are already in storage 
prior to the effective dates noted below will not be required to be 
covered by WPB. This notice affords TSPs/contractors ample time to 
incorporate the cost of providing the WPB into their rates.

DATES: Effective Date: October 1, 2007.

ADDRESSES: Requests for additional information may be sent by e-mail 
to: <a href="/cdn-cgi/l/email-protection#4d0e2823393f2c213f3e20220d3e29292e632c3f203463202421"><span class="__cf_email__" data-cfemail="397a5c574d4b58554b4a5456794a5d5d5a17584b544017545055">[email protected]</span></a>; or by courier to: Department of Army, HQ 
SDDC Central RSMO, ATTN: SDDC-PPP-PA-C, P.O. Box 19225, Topeka, KS 
66619-0225. Such comments must be received not later than 30 calendar 
days from the date this notice is published in the Federal Register.

SUPPLEMENTARY INFORMATION:
    1. The NTS TSP will, at its' own expense, procure a Warehouse 
Performance bond and furnish the SDDC, Regional Storage Management 
Office, Regional Program Manager a ``Continuous Until Cancelled'' Bond 
from the Surety Company representative. The Bond will be used to cover 
the estimated cost of re-procurement, should the TSP fail to provide an 
acceptable storage facility. This bond must be provided prior to 
entering into a binding Tender of Service agreement. The NTS TSP shall 
provide a Bond meeting the requirements listed below:
    a. Bond shall be in the amount of $25,000 or 25 cents per pound in 
storage, whichever is greater. The Regional Program Manager shall 
review the Warehouse Performance Bond annually. If the responsible 
Regional Storage Management Office determines the Warehouse Performance 
Bond needs to be increased, the NTS TSP will be notified and provided 
30 days to submit a new Bond reflecting the updated amount.
    b. Provide a 30 day advance written notice to the Regional Program 
Manager in the event of cancellation or material change. Upon 
cancellation of the present bond, the NTS TSP must provide evidence of 
continuing coverage at least 10 days prior to cancellation. If a lapse 
occurs the NTS TSP approval will be rescinded.
    c. The Surety Company must maintain a rating of ``A'' or better in 
the current issue of Best's Insurance Guide in order to be approved by 
the RPM.
    d. Use of the Bond form listed in Part III, Item 10 of this 
agreement and shown as attachment 10 to this agreement is required.
    2. The Regional Program Manager has sole responsibility for the 
approval and acceptance of a storage facility for use in the NTS 
program. When the Regional Program Manager has determined a storage 
facility does not meet the criteria

[[Page 31300]]

for continued acceptance in the NTS program, the Warehouse Performance 
Bond shall be used to offset costs associated in relocating the lots 
stored in the unacceptable facility to an approved facility of the 
Regional Program Manager's choosing.
    Background: Due to the monetary loss associated with re-procuring 
services for shipments in storage, it has been determined that a 
Warehouse Performance Bond is in the best interest of DOD. This Bond 
will be used to cover the costs associated in relocating stored 
shipments to an approved warehouse site as determined by the SDDC, 
Regional Storage Management Office, Regional Program Manager. 
Relocation of stored shipments becomes necessary when the warehouse 
currently in use is no longer approved for use in the DOD Personal 
Property Storage Program or the TSP/contractor is no longer acceptable 
as a service provider.

Regulation Flexibility Act

    This action is not considered rule making within the meaning of 
Regulatory Flexibility Act, 5 U.S.C. 601-612.

Paperwork Reduction Act

    The Paperwork Reduction Act, 44 U.S.C. 3051 et seq., does not apply 
because no information collection or recordkeeping requirements are 
imposed on contractors, offerors of members of the public.

Steven L. Amato,
Col, USAF, DCS, Passenger and Personal Property.
[FR Doc. 07-2807 Filed 6-5-07; 8:45 am]
BILLING CODE 3710-08-M


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