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SECTION C – REQUIREMENTS

Statement of Work

Chemicals, Packaged Petroleum, Oil, and Lubricants (Chem/POL)

In Support of All U.S. Military, Foreign Military, and Non-Military Customers

8 July 2015
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TABLE OF CONTENTS

1.0 INTRODUCTION AND SCOPE

1.1 Contractor Responsibilities

1.2 Government Responsibilities

1.3 Customer Service/Marketing Outreach

2.0 ENVIRONMENTAL

3.0 TRANSITION & OPERATIONAL CAPABILITY

3.1 Transition

3.2 Initial Operational Capability

3.3 Full Operational Capability

4.0 SYSTEM INTERFACE & INTEGRATION

5.0 VENDOR MANAGED INVENTORY

6.0 TECHNICAL

6.1 Items Descriptions

6.2 Safety Data Sheets (SDS) & Hazardous Warning Labels (HWL)

6.2.1 SDS

6.2.2 HWLS

6.3 Submission of SDS Data Set Requirements

6.4 First Article & Production Lot Testing

6.5 Origin Inspection

6.6 Environmental Protection Agency – Designated Products

6.7 Forecasting & Inventory Management

6.7.1 Shelf Life Management

6.7.1.1 Contractor Furnished Inventory

6.7.1.2 Vendor Managed Inventory

6.8 Distribution & Transportation

6.8.1 OCONUS Sea Containers

6.8.2 Transportation

6.9 Delivery Requirements

6.9.1 Fill Rate Measurement

6.9.2 Time Definite Delivery Requirements

6.9.3 Backorders

6.9.4 Inactive Material

6.9.5 Disaster Relief Orders

6.9.6 Material Returns

6.9.7 Disposals

6.9.8 Product Quality & Supply Deficiencies

7.0 REPORTING REQUIREMENTS

8.0 END OF CONTRACT SUPPORT

9.0 CONTRACT EXPIRATION
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1. 10.0 POST AWARD CONFERENCE
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INTRODUCTION AND SCOPE

This Statement of Work (SOW) defines the scope of effort required to provide logistics 

support for chemicals and packaged petroleum products in Federal Supply Classes (FSCs): 

6810 - Reagent and Technical Grade Chemicals; 6820 - Dyes; 6840 - Pesticides, 

Disinfectants, Repellents & Deodorants; 6850 - Miscellaneous/Compounded Chemicals; and 

9150 - Packaged Petroleum, Oil, and Lubricants, but excluding Class I Ozone Depleting 

Substances (ODS). The resulting supply contract will be a follow-on to contract SPM4AR07-D-0001 dated 14 July 2007. 

1.1 CONTRACTOR RESPONSIBILITIES

1.1.1 The Contractor shall be responsible for supplying all Chem/POL National Stock 

Numbers (NSN) in addition to the integrated support of all FSCs for DLA customers through 

customer direct shipments to Continental US (CONUS), Outside Continental US 

(OCONUS), and the replenishment of Forward Stocking Locations (FSL) through DLA 

direct shipments. DLA’s customers include the Department of Defense (DoD), other civilian 

agencies, and Foreign Military Sales (FMS). The Government’s stock levels previously 

maintained at its CONUS wholesale locations have been eliminated. 

1.1.2 The Contractor shall perform comprehensive supply chain management of chemicals and 

packaged petroleum products to include but not limited to the following:

a. Procurement of materials

b. Planning & Forecasting

c. Order Processing & Fulfillment

d. Procurement & Purchasing

e. Inventory Management

f. Quality Control

g. Shelf-Life Management

h. Storage, Packaging, Transportation & Distribution

i. Obsolescence Management

j. Data Management & Delivery

k. Customer Support Services

l. Material Returns

1.1.3 The Contractor shall also be responsible for the following:

a. Handling customer returns associated with Product Quality Deficiency Reports

(PQDR) and Supply Discrepancy Reports (SDR) for the NSNs listed in 

Attachments 2 and 3.

b. Maintain a single point-of-contact to interface with the Government’s Program 

Manager to ensure timely resolution of business and technical problems and 

implementation of corrective action. 

c. The contractor will not knowingly procure and supply counterfeit products or 

materiel. The supplier shall take the necessary actions to mitigate counterfeit 

occurrences. If counterfeit products or materiel are found, the supplier shall 
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investigate and report incidents to the Government Industry Data Exchange 

Program (GIDEP) system. The supplier shall provide similar guidance to subvendors and sub-suppliers to ensure supply chain integrity.

1.2 GOVERNMENT RESPONSIBILITIES

The Government will be responsible for the following:

a. Provide DLA Customer Account Specialist (CAS) Point of Contacts (POC) to 

coordinate communications with customers (who have assigned CASs) and provide 

assistance with Contractor access to customer locations.

b. Maintain responsibility of alternate source approvals, surplus offers, First Article Test 

(FAT) requirements, Qualified Products List (QPL), Quality Assurance Letters of 

Instruction, Government Lot Acceptance Testing, PQDR/SDR approval, 

Military/Federal Specifications, waivers and deviations, creating new NSNs as 

required, maintaining the Qualified Status List (QSL), approving Safety Data Sheets 

(SDS) and Hazard Warning Labels (HWLs), origin inspection determination, provide 

access to the QSL on an as needed basis, and Procurement Item Descriptions (PID) 

updates.

c. Make semi-annual Economic Price Adjustments (EPA).

d. Provide Contractor access to Government systems, such as, but not limited to

Hazardous Material Information Resource System (HMIRS) & webSDR, as needed.

e. Furnish all drawings and bid sets.

1.3 CUSTOMER SERVICE / MARKETING OUTREACH

The Contractor shall establish at a minimum a toll-free number and web site link that 

DLA may use to query the status of requisitions. 

The Contractor shall establish a Marketing Outreach Program to increase utilization of 

this DLA contract and to educate customers on products/alternatives available for sale 

through the DLA Chem/POL Privatization Program. DLA will assist in the identification 

and engagement of potential new customers. New customer engagement may include 

discussions and/or slide presentations. The Contractor shall discuss its customer outreach 

efforts with DLA during Program Management Reviews. 

2.0 ENVIRONMENTAL REQUIREMENTS

2.1 The Contractor shall obtain and maintain all required federal, state, municipal, and 

international certifications, licenses, permits, registrations and approvals that may be 

required to perform this contract. The Contractor and any subcontractor shall possess or 

obtain their own, non-Government, EPA RCRA identification number(s) and follow the 

regulations of 40 CFR 260-280. The Contractor is responsible for reporting under 

EPCRA (all applicable sections), as well as providing such data or other appropriate data 

to the customer/installation allowing the customer/installation to meet its 

Federal/State/Local/DoD and international environmental reporting requirements. 
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2.2 Any time the Contractor communicates with or is contacted by an environmental or other 

regulatory agency at any level, or is required to communicate with such agency, as 

pertains to this program, it shall notify the Contracting Officer via e-mail within 4 hours 

of the communication with or contact by an environmental/regulatory entity. In addition, 

the Contractor shall notify the Contracting Officer of any spill via e-mail within 4 hours 

of the spill or the discovery of the spill. 

2.3 A spill is defined to be any release of a material from its primary container (i.e. the 

container that has an intimate contact with the material) that results in any loss of the 

material (i.e. asset), and the need to recoup, repackage, reissue or dispose of the asset 

whether or not the spill needs to be reported to a regulatory body under the various 

Federal, State, or Local environmental or occupational-safety regulations.

2.4 Reporting Protocol:

1. Designated Contractor POC notifies DLA Aviation Contracting Officer via e-mail.

2. Notification occurs within 4 hours of the incident's occurrence or discovery of the 

incident.

3. Notification covers asset(s) in transit to requisitioner(s) as well as in storage awaiting 

distribution.

4. Notification applies to Vendor Managed Inventory (VMI) (see Section 5.0) as well as 

non-VMI assets.

5. Notification to include the following information at a minimum: 

a. Identify location of incident / approximate time of incident / injuries if any 

b. Identify nature of incident 

c. Identify and List NSN(s), Logistics Item Name(s), Contract #(s), Unit of Issue 

(U/I), number of U/I(s) affected 

d. Identify total quantity/volume spilled (approximation)

e. Identify collateral damage (i.e. other assets/properties affected by incident)

f. Identify actions taken to contain/remediate incident

g. Identify corrective actions to minimize and/or eliminate future incidents of type 

noted

6. Closing & follow-up notification within 7 calendar days of incident indicating state 

of affairs relative to incident to include any and all copies (at least for VMI) of 

all official notices sent to the various regulatory agencies where official notice 

and follow up are required.

7. Contractor notifies Local/State/Federal regulatory entities and the Contracting Officer 

depending on the type, nature, and volume of the spill.

2.5 The Contractor shall be responsible for any fines or penalties incurred as a result of a 

spill. 

For reportable spills and instances of fines, penalties, and notices of violation, the 

Contractor shall notify the Contracting Officer within 4 hours; for all other 

communications or contacts with Government environmental regulators, the Contractor 

shall notify the Contracting Officer as soon as practicable, but in no event later than 4 

hours after the communication or contact. In addition, the Contractor shall provide a 

copy of all documents or electronic media related to such communications or contacts to 
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the Contracting Officer at no expense to the Government. The Contractor shall not assert 

a privilege or other reason to withhold any such document or electronic media. This 

paragraph applies to all work under this contract.

3.0 TRANSITION & OPERATIONAL CAPABILITY

3.1 TRANSITION

Transition must be synchronized among the Contractor, DLA Distribution and DLA 

Aviation to ensure that customer requirements remain satisfied during the transfer with 

little or no disruption in customer support, in accordance with the approved transition 

plan. 

3.2 INITIAL OPERATIONAL CAPABILITY (IOC)

The Contractor shall be capable of receiving and processing orders (manual and EDI) 

thirty (30) calendar days prior to receiving the first order for supplies.

3.3 FULL OPERATIONAL CAPABILITY (FOC)

The Contractor shall have completed transition within 365 calendar days after contract 

award or once the Contractor assumes responsibility for individual products during 

transition. The Contractor shall assume responsibility for all NIINs in the listing of 

Active NIINs / Schedule of Supplies (Attach. 2) and Inactive NIINs (Attach. 3) within the 

timeframes specified in its Transition Plan. 

4.0 SYSTEM INTERFACE & INTEGRATION

4.1 The Contractor shall be capable of receiving and processing orders both manual and via 

Electronic Data Interchange (EDI) 30 calendar days prior to receiving the first order for 

supplies.

4.2 DIBBS. Delivery orders will be available through the DLA Internet Bid Board System 

(DIBBS) which requires that the Contractor possess Internet capability to receive email 

notification that an order is available on the website, https://www.dibbs.bsm.dla.mil. 

 

4.3 ANSI X12. The American National Standards Institute (ANSI) X12 Standard will be 

utilized for formatting the EDI transactions. Information regarding EDI, ANSI X12 

transactions, and Defense Automated Addressing System (DAAS) approved Value 

Added Networks (VANs) can be obtained from the DAAS web site by going to 

https://www.daas.dla.mil/daashome/edi-vanlist-dla.asp.

4.4 The specific EDI transactions that will be exchanged between the Contractor and the 

DLA for this effort are:

 EDI 850 Delivery Order 

 EDI 997 Functional Acknowledgement of Delivery Order 
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 EDI 856 Ship Notice/Manifest Transaction Set 

4.5 Delivery orders will be issued via the 850 EDI transaction. The functional 

acknowledgement (997 EDI transaction) will constitute the Contractor’s receipt of the 

delivery order. The shipment notice (856 EDI transaction) will constitute the date of 

shipment. 

4.6 The contract may specify the following VMI EDI requirements where VMI is applicable: 

VMI Transactions:

• EDI 945A - Shipment Confirmation into SAP

• EDI 947I - Inventory Adjustment or change in Condition code

• EDI 527R - Receipt due-in confirmation into SAP

• EDI 945A - DSS denial into SAP

• EDI 511R - Customer requisition, passing order, or redistribution order 

into SAP

• EDI 940R - MRO/DRO/RDO or follow-up from MRO/DRO/RDO out 

from SAP

• EDI 869A - Customer follow-up out from SAP

• EDI 945A - DSS Current status of customer requisition into SAP

• EDI 846P - Request for Physical Inventory Count out from SAP

• EDI 945A - Response to MRO/DRO/ cancellation into SAP

• EDI 869C; 940R - Cancellation Request out from SAP

• EDI 527D - Due-in to storage site out from SAP

• EDI 846R- DZH/DZN Location Reconciliation Request 

• EDI 846R; 527R – DZK Transaction History Transmittal

• EDI 846P - Request for Inventory

• EDI 846R - History Transaction

VMI Order Fulfillment Features:

• OF-INT-0011 (945A) – Shipment confirmation into SAP

• OF- INT-0039 (947I) – Inventory adjustments/change in condition code

• OF- INT-0049 (527R) – Receipt due-in confirmation into SAP

• OF- INT-0051 (945A) – DSS denial into SAP

• OF- INT-0055 (511R) – Customer requisition, passing order, or 

redistribution order intoSAP

• OF-INT-0056 (940R) - MRO/DRO/RDO or follow-up out from SAP

• OF-INT-0060 (869A) – Customer follow-up for MRO/DRO/RDO out 

from SAP

• OF-INT-0061 (945A) – DSS current status of customer requisition into 

SAP

• OF-INT-0071 (846P) – Request for Physical Inventory Count out from 

SAP
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• OF-INT-0091 (945A) – Response to MRO/DRO/cancellation into SAP

• OF-INT-0092 (869C; 940R) – Cancellation request out from SAP

• OF-INT-0106 (527D) – Due-in to storage site out from SAP

• OF-INT-0167 (511R) – Post Issue

• OF-INT-5105 (846R; 527R) – (IRM) Transaction history transmittal 

DZH/DZN

• OF-INT-5107 (846P) – Request for inventory

• OF-INT-5108 (846R) – History transaction

4.7 Multiple Contract Numbers: Due to the extraordinary volume of delivery orders under 

this contract, the listing of available supplementary procurement instrument identification 

(PII) numbers for delivery orders is expected to be exhausted. In order to prevent 

duplication of supplementary PII numbers, it will be necessary to create multiple 

additional basic PII numbers for this contract.

4.8 Supplies and services already acquired under the initial contract number shall remain 

solely under this contract number for purposes of Government inspection, acceptance, 

payment, and closeout. All delivery orders, beginning after a date to be specified by the 

Contracting Officer during the period of performance, will be accomplished under the 

new contract number. All new material that is to be placed on order following the 

specified date shall be labeled with the new contract number. Issuance of a new contract 

number may occur multiple times over the course of the contract.

4.9 Modifications to the basic contract will be issued against the original contract number.

5.0 VENDOR MANAGED INVENTORY (VMI)

5.1 VMI refers to DLA-owned material in the custody of Contractors that perform warehouse 

management responsibilities under contract with DLA. VMI is defined as DLA-owned 

materiel stored at or managed through a Contractor location that performs warehouse 

management responsibilities under contract with DLA.

5.2 The contractor will develop a plan for managing VMI that will be approved by DLA. 

DLA will identify existing Government-owned inventory which may be transferred to the 

Contractor as VMI. If there is residual VMI on the existing contract (SPM4AR-07-D0001) when this contract is awarded, it will be transferred to the Contractor who shall 

then be accountable for the VMI. The Contractor shall develop and submit its Property 

Management Plan as part of its proposal. Once the plan is approved by DLA, the plan 

will be incorporated into the contract and the Contractor shall manage the property in 

accordance with its approved plan. The Contractor shall use the VMI assets to fill 

requisitions.

5.3 Inventory will be physically transferred from the Government-designated locations to the 

Contractor for storage and distribution in following scenarios: 
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• Current operational and emergent worldwide support may require the 

redistribution of Government-owned OCONUS assets to the Contractor’s 

CONUS facilities.

• Unauthorized customer returns to DLA CONUS stock locations will be 

declared excess material by the Government and sent to DLA Disposition 

for further processing. Excess material is defined as any material returned 

to the Government that will not be passed on to the Contractor. 

5.4 The Government will retain title to the inventory. The Contractor must use VMI to 

satisfy orders until the VMI is depleted; once VMI is depleted, the Contractor shall fill 

orders from Contractor-owned inventory. VMI can only be used to satisfy Government 

demands issued against this contract.

5.5 The decision to transfer VMI to the Contractor shall be made on an ad hoc basis through 

bi-lateral agreement between the Contractor and the Government and may be 

accomplished in phases if needed. Once the Contractor has established an unconstrained 

commercial pipeline for product support, the Contractor shall have the final 

determination on whether a product is acceptable and in what quantities, as VMI. In each 

phase, when a quantity of Government inventory is identified, the inventory will be 

blocked from issue at the depot and physically transferred to the Contractor’s facility at 

Government expense. The Contractor and the Government will jointly inspect, count, 

and reconcile the incoming inventory. A record of this transfer will be maintained by the 

Contractor and provided to the cognizant administration office and Contracting Officer. 

Any questions concerning the acceptability of the incoming stock and/or the amount of 

inventory received will be resolved before the Contractor places the stock into its 

inventory and creates the record of the liability for the inventory from the Government. 

5.6 The Contractor shall work with the Contracting Officer to resolve issues regarding the 

receipt and acceptance of the DLA inventory. These issues may be related to such things 

as damaged material, shipment quantity or material discrepancies. The Government will 

bear the expense of correction or disposal of any stock damaged prior to acceptance by 

the Contractor. After acceptance of the VMI stock by the Contractor, the Contractor shall 

be responsible for and bear the expense of any damaged containers, leaks, spills or other 

releases of material. Regardless of which party bears the expense, if damaged VMI stock 

is to be disposed, the process outlined in 6.9.7, Para 2, Disposals of the SOW shall be 

followed. 

5.7 After the Contractor accepts the transferred inventory, the Government will start routing 

requirements to the Contractor via Electronic Data Interchange for the Contractor to fill 

from the inventory. 

5.8 The Contractor shall be responsible and accountable for all Government inventory 

accepted into stock. The Contractor shall provide for preservation, protection, 

maintenance, and repair of the Government inventory in accordance with sound industrial 

practice. The Contractor shall maintain an auditable inventory of the transferred 

Government stock. The Government reserves the right to inspect and audit the VMI and 

the Contractor’s VMI records at any time during performance of the contract. 
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6.0 TECHNICAL REQUIREMENTS 

6.1 ITEM DESCRIPTIONS

All materials delivered under this contract shall be provided in strict compliance with the 

applicable Procurement Item Description (PID) requirements. The Contractor is responsible for 

notifying the Government if the part number or technical data (including specification and 

drawing revisions) are different from the information cited in the PID (Attach. 5). Until the 

Government has approved such a change, the Contractor shall provide the product in accordance 

with the PID. 

The Contractor shall receive Government approval prior to ordering material from sources other 

than those approved in the PID, on a source controlled drawing, or in a qualified products list.

Contract Data Requirements List (CDRLs), DD Form 1423 may apply to this procurement. 

CDRLs are used to delineate any requirement for data which must be provided by the contractor 

as deliverable items. This can include, but is not limited to, Pre-production Test Reports, special 

process demonstration reports, First Article Testing reports, Production Lot Testing reports, etc.

If a CDRL applies, it will be stated in PID Text/Item Description as a QAP with CDRL in the 

description. CDRL documents are posted to cFolders (https://pcf1.bsm.dla.mil/cfolders/).

6.2 SAFETY DATA SHEETS (SDS) & HAZARDOUS WARNING LABELS (HWLs)

6.2.1 SAFETY DATA SHEETS (SDS)

SDSs are required for all materials delivered under this contract that meet the definition 

of hazardous as set forth in the latest version of Federal Standard 313 (including versions 

or changes adopted during the life of the contract). The Contractor should pay particular 

attention to paragraph 4.3 of Federal Standard 313 (Additional Information Required on 

the SDS). SDS and HWLs must be submitted together for approval. The contractor will 

also provide updated SDS and HWL when formulations of the original procured product 

have changed. 

For materials being shipped overseas and containing hazardous chemicals identified in 

European Regulation (EC) No 1907/2006 (Registration, Evaluation, Authorization and 

Restriction of Chemicals (REACH)), then the contractor must comply with REACH 

requirements regarding SDS' and labeling requirements of European Regulation (EC) No 

1272/2008 (classification, labelling and packaging of substances and mixtures). 

6.2.2 HAZARDOUS WARNING LABELS (HWLs) 

Items shall be labeled in accordance with 29 CFR 1910.1200 unless otherwise directed by 

29 CFR 1910.1200 (b) (5). 

6.3 ELECTRONIC SUBMISSION OF SDS DATA SET- REQUIREMENTS
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The Contractor shall be required to link and provide the SDS associated with the Delivery Order 

(DO). The contractor shall also be required to provide electronically the following data-set for 

interfacing with DLA Aviation’s SDS Delivery Order Application (DOA) program: NSN; 

Contractor Serial Number; Contract and DO Number; Source of Supply; Contractor Source of 

Supply CAGE; Manufacturer/ Responsible Party CAGE; SDS Responsible Party; SDS 

Preparation Revision Date; and Product Name. 

The data is to be transmitted electronically from the Contractor to the DLA SDS Web Service 

site using an XML data structure in a Simple Object Access Protocol (SOAP) format. An 

example of the SOAP format being used can be found at 

https://apps.Aviation.dla.mil/msds_delivery/deliveryorder?WSDL. The Contractor has the option 

of providing an optional file name for the transmission sent in order to confirm the accuracy of 

the data transmission. Upon receipt of the transmission, the Web Service will send a message 

acknowledging receipt. Data transmission to the Web Service requires authorized access by a 

company user which must be obtained through the DLA Application and Provision System

(AMPS). 

The system of record for SDS will be the Government’s Hazardous Material Information 

Resource System (HMIRS).

6.4 FIRST ARTICLE / PRODUCTION LOT TESTING

NSNs that require Government/Contractor First Article or Production Lot Testing are identified 

in the list of active NIINS (Attach. 2) and the PID data (Attach.5). 

6.5 ORIGIN INSPECTION

DCMA source inspection is required for all Aircraft Launch and Recovery Equipment (ALRE), 

Critical Safety Items (CSI), and other NSNs as designated by DLA Aviation. These are identified 

in the Quality Matrix (Attach. 4) and are subject to change throughout the term of the contract. 

The Contractor’s commercial purchase orders shall include Government source inspection 

clauses. It will be the Contractor’s responsibility to contact DCMA to schedule an inspection at 

the plant.

6.6 ENVIRONMENTAL PROTECTION AGENCY-DESIGNATED PRODUCTS

The Contractor shall be required to adhere to all environmental rules and regulations associated 

with the maintenance, storage and inventory, and order fulfillment of chemicals and packaged 

petroleum product assets in accordance with FAR Part 23, including the requirements of 

Executive Order 13423, Strengthening Federal Environmental, Energy, and Transportation 

Management, and requirements associated with EPA’s Comprehensive Procurement Guidelines 

(CPG) program that mandates certain items of supply be procured with recycled/post-consumer 

use content. The CPG program applies to FSC 9150, lubricating oil (re-refined, not synthetic); 

and 6850, misc. chemical specialties. 
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The Contractor shall procure and supply products in the applicable FSCs with USDA/EPA 

mandated bio-based content. The Contractor shall also procure and supply environmentally 

friendly/green/recyclable products in the applicable FSCs in accordance with Federal statutes, 

regulations, or Executive Orders as they are published during the course of this contract.

6.7 FORECASTING & INVENTORY MANAGEMENT

The Contractor shall be responsible for forecasting and inventory management of all products as 

cited as Active Items (Attach. 2), to include any items added after contract award, to meet the 

Government-established delivery requirements. The Contractor’s forecasting shall include 

planning for the replenishment of DLA’s OCONUS Forward Stock Locations (FSLs). The 

Contractor shall be prepared to support those requirements in addition to customer direct order 

activity received during the life of the contract. 

Any NSNs with a Nuclear Reactor Program Weapon System Designator Code (WSDC) of 

21Nwill be designated as a Never Out item. The Contractor shall be expected to stock adequate 

quantities of these NSNs so as to have a high probability of never being out of stock. The 

Contracting Officer may designate other NSNs, in addition to those with a WSDC of 21N, as 

Never Out items. The Contracting Officer may specify NSNs in addition to the Never Out items 

as special interest for the purposes of reporting.

This population of items may be refreshed bi-weekly. If the item is a new addition to the 

contract, it is excluded from metrics for one Production Lead Time (PLT). 

6.7.1 SHELF LIFE MANAGEMENT

6.7.1.1 CONTRACTOR-FURNISHED INVENTORY

Minimum Shelf-life upon Delivery of Contractor Furnished Material (CFM): The 

Contractor’s forecasting and inventory management practices shall ensure that, upon 

delivery, items with a shelf-life cited in the Purchase Order Text (POT) will have a 

remaining shelf-life, as follows: 

For items with a shelf life of: Upon delivery, item shall 

have remaining shelf life 

of at least:

18 months or greater 12 months

12 months or greater but less 

than 18 months

9 months

9 months or greater but less 

than 12 months

7 months

6 months or greater but less 

than 9 months

4.5 months

Re-certification – The Contractor shall ensure that a rigorous program of stock screening 

is in place to insure proper turn-around of shelf life designated materials that is 
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comparable to or more stringent than that currently utilized by the Government. All recertification risk is borne by the Contractor. The Contractor shall identify and submit to 

DLA Aviation for approval, the laboratories they will be utilizing for shelf life extension 

testing for Contractor Furnished Material (CFM). 

6.7.1.2 VENDOR-MANAGED INVENTORY (VMI)

When VMI is established, a minimum Shelf-life upon Delivery of VMI to CONUS 

customers will be required. The Contractor shall ensure that, upon delivery, VMI with a 

shelf-life cited in the PID will have a remaining shelf-life as follows: 

For items with a shelf life of: Upon delivery, item shall 

have remaining shelf life 

of at least:

18 months or greater 3 months

12 months or greater but less 

than 18 months

3 months

Exceptions to the VMI shelf-life requirements above are Fleet Logistics Center (FLC) 

Norfolk (DODAAC N00189) and FLC San Diego (DODAAC N00244) which require a 

remaining shelf-life of 6 months for all items in the above categories.

When VMI is established, a minimum Shelf-life upon Delivery of VMI to OCONUS 

customers will be required. The Contractor shall ensure that, upon delivery, VMI with a 

shelf-life cited in the PID will have a remaining shelf-life as follows: 

For items with a shelf life of: Upon delivery, item shall 

have remaining shelf life 

of at least:

18 months or greater 12 months

12 months or greater but less 

than 18 months

6 months

All shelf life extension testing for VMI will be performed by Government laboratories. 

Shelf-life laboratory testing results shall be provided to DLA Aviation for QSL updates. 

VMI stock balances are cited in Attachment 7. 

6.8 DISTRIBUTION & TRANSPORTATION 

6.8.1 OCONUS SEA CONTAINERS:

 

Upon notification from DLA Distribution that an OCONUS order requires a sea container

(SEAVAN), the Government will modify the delivery order to reflect FOB Origin and 

inspection/acceptance at origin terms. DLA Aviation will retain QA inspection and 

acceptance authority for OCONUS sea container orders. 
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The Contractor shall establish and maintain the capability to stage, pack and ship 

SEAVANs to support filling large OCONUS stock orders. The Contractor shall provide 

the following information to DLA Aviation: contract and delivery order number to 

include digital pictures of the NSN shipped, sea container loaded, blocked, and braced, 

and prior to DLA Aviation acceptance.

Active Radio Frequency Identification (aRFID) tags shall be utilized for all SEAVAN 

shipments.

6.8.2 TRANSPORTATION

The Contractor shall be responsible for all shipments of products in accordance with 49 

CFR 170-178, International Maritime Organization – International Maritime Dangerous 

Goods (IMO-IMDG), International Civil Aviation Organization – International Air 

Transport Association (ICAO-IATA), and Military Aircraft (MILAIR) [Air Force 

Manual (AFMAN) 24-204]. The Contractor shall be responsible for shipment of 

materials from its facility to the customer within CONUS; to the customer or designated 

Container Consolidation Points (CCPs) or Point-of-Embarkation (POEs) for OCONUS; 

or to freight forwarders for FMS orders. The Contractor shall also be responsible for 

transporting customer material returns and discrepant orders from both CONUS and 

OCONUS customer sites to the Contractor’s facility (see Section 3.4.7.1).

Vendor Shipping Module (VSM): The Contractor shall establish a VSM profile. To 

create a profile, contact the DLA Distribution (Code: TOT (1-800-456-5507)) which will 

assign a unique User Name and Password to access the website at 

https://vsm.distribution.dla.mil/net. The Military Shipping Label (MSL) and carrier 

information/shipping instructions should be available in VSM within 24 hours of initial 

shipment registry. The carriers chosen by the Government will be responsible for 

shipping from the CCP, POE or Freight Forwarder point to the OCONUS customer 

destination. 

FMS orders may remain at the Contractor’s facility for an extended period of time 

pending foreign country clearances. The Contractor should be aware of the potential 

impact of delays in shipping FMS items and the impact on shelf life. Items designated as 

FMS are not relieved from the stated shelf life requirements due to delays in shipping 

authorizations.

6.9 DELIVERY REQUIREMENTS

6.9.1 FILL RATE MEASUREMENT

Although the Contractor shall be required to meet the TDD standards, the Fill Rate (FR) 

measurement will be based on ship date rather than delivery receipt date. The Contractor 

is required to meet a 90% Material Fill Rate for all Chem POL items except Nuclear 

Reactor Program (NRP) items which must meet a fill rate of 95%. The NRP items are 

identified in Attachment 2.
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FILL RATE MEASUREMENTS

CONUS and 

OCONUS Shipment to CCPs/POE

Delivery Order 

Category (CAT) 

Codes

Priority 01 –

03

CAT 1 (High 

Priority)

2 Day

Priority 04 –

08

CAT 2 3 Day

Priority 09 –

15

CAT 3 4 Days

Although performance tracking will start upon the issuance of the first delivery order, the 

Fill Rate Metric will assess performance over a 12 month performance period. The first 

performance period will start at FOC and will continue through contract expiration.

Fill Rate: The amount of time measured from receipt of order to shipment. Although the 

contractor is required to meet the TDD Standards outlined in the SOW, the Fill Rate will 

be measured based on ship date rather than delivery receipt date. Monthly fill rates will 

be computed to assess contractor performance and identify problems as they occur. The 

material fill rate percentage is calculated by taking the total number of orders shipped 

complete within the designated timeframe, divided by the total number of orders received 

during that same timeframe. Both the monthly and annual performance Fill Rate% will 

be computed using this calculation. 

Fill Rate % will be measured on the formula below: 

FR% = (TRS/TRR) * 100

Where: FR% = Fill Rate (rounded to the nearest tenth)

TRS = Total Orders Shipped complete within the designated measurement 

timeframe

TRR = Total Orders Received in a specific performance period

6.9.1.1 FILL RATE EXCEPTIONS

The following Fill Rate exceptions will apply:

a. Newly-added NSNs (excluded until one full PLT has passed)

b. FOB Origin (SEAVAN or Direct Shipment) orders

c. Government Source Inspection delivery orders

d. Cancelled delivery orders

e. Bulk orders

f. Inactive NSNs
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6.9.2 TIME DEFINITE DELIVERY REQUIREMENTS

The Contractor shall ensure each order is satisfied within the following Time Definite 

Delivery (TDD) requirements: 

TDD DELIVERY STANDARDS

CONUS and 

OCONUS Shipment to CCPs/Ports of 

Embarkation

Issue Priority 

Designator (IPG) FOB Destination

Priority 01 – 03 IPG 1 (High Priority) 6 Business Days

Priority 04 – 08 IPG 2 10 Business Days

Priority 09 – 15 IPG 3 15 Business Days

High priority Customer Direct (CD) requirements are identified by Military Standard 

Requisitioning and Issue Procedures (MILSTRIP) priority designator codes 01, 02, and 

03, and routine CD requirements are identified by MILSTRIP priority designator codes 

04 through 15. 

The Contractor has successfully filled a CONUS demand when, after receipt of an 

electronic requisition, the customer has received a product at the customer designated site 

within the specified TDD standards. The Contractor has successfully filled an 

OCONUS/FMS demand when, after receipt of an electronic requisition, the Contractor 

has delivered a product to the designated CCP, freight forwarder, or CONUS POE for 

OCONUS customer direct orders within the specified TDD standards.

6.9.3 BACKORDERS 

A backorder is any order that is not shipped complete in accordance with the established 

fill rate. Backordered delivery orders will be included in the Delivery Disincentive.

6.9.4 INACTIVE MATERIAL

 

NSNs contained on the List of Inactive Items (Attach. 3) are exempt from the Fill Rate 

metrics. 

6.9.5 DISASTER RELIEF ORDERS

NSNs contained on list of Disaster Relief Items (Attach. 6) are products that have been 

labeled as Disaster Relief NSNs. Disaster Relief orders will be assigned a specific 

project code provided by DLA and shall be filled as soon as possible, but in no event 

shall material be shipped later than 2 business days from the Contractor’s receipt of the 

order. Upon request and on an as needed basis, the Contractor shall provide reporting on 

Disaster Relief NSN stock levels. 
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The supplier will be notified upon DLA Aviation receipt of Disaster Relief Project code. 

The supplier shall be responsible to provide status on all orders associated with this 

project code daily. All metrics are applicable to these orders. 

6.9.6 MATERIAL RETURNS

The Government does not authorize material returns outside of the PQDR/SDR process

(See 6.9.8 of the SOW).

If the Contractor chooses to provide a material return service, the Contractor shall be 

responsible for picking-up material returns at customer sites (both CONUS and 

OCONUS) and shipping these assets to the Contractor’s facility. The Contractor shall 

indemnify the Government from any and all liability relating to materials returns, spills 

and non-compliant storage arising under Resource Conservation and Recovery Act 

(RCRA), Comprehensive Environmental Response Compensation and Liability Act 

(CERCLA), and any other related or similar federal, state, local, and foreign country laws 

and regulations. All Government markings/labels will be removed before the Contractor 

can recycle or sell material outside this contract.

6.9.7 DISPOSALS 

Contractor-Owned Material. The Contractor shall be responsible for disposing any 

Contractor-owned material, including material returns. Disposal actions shall be in 

accordance with all applicable local, state, federal and foreign country laws and 

regulations, including CERCLA, RCRA, etc. Prior to disposing Contractor-owned 

material and prior to re-using or selling the Contractor-owned material outside of this 

contract (including material returns under paragraph 6.9.6 above), the Contractor shall 

ensure that it eliminates from the material packaging all reference to the Department of 

Defense, this contract number, the national stock number or any other marking that 

would suggest Government ownership of the material. All costs associated with this 

disposal are at the expense of the contractor.

Vendor Managed Inventory: The Contractor shall not perform the recycling/disposal of 

VMI that is identified to be excess inventory and/or VMI that experiences shelf-life 

expiration which fails re-certification process. The Contractor shall identify such 

material to the Contracting Officer as “excess material.” The Contracting Officer shall 

review the material and, if appropriate, declare it “excess inventory.” The Contracting 

Officer will authorize the Contractor to contact DLA Disposition for instructions 

regarding further processing of excess inventory. The Contractor shall not accumulate 

material subject to waste classification (e.g. shelf life expired material that cannot be 

extended or is in a damaged container) beyond 90 calendar days unless the Contractor 

possesses a RCRA Part B operating permit for long-term storage. Storage (RCRA 

generator accumulation) beyond 90 calendar days for generators without a Part B permit 

can subject the generator to the rules regarding establishment of a Solid and Hazardous 

Waste Management Unit (SHWMU), and potentially facility wide corrective action. The 

Contractor will be paid appropriate costs for any VMI determined excess inventory that 

the Contractor arranges and pays to ship to the Government’s receiving point, according 
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to the same throughput fee that would be paid for shipping the same items (NSNs and 

associated quantities) in response to regular delivery orders issued under the contract.

6.9.8 PRODUCT QUALITY DEFICIENCIES & SUPPLY DISCREPANCIES 

The Contractor shall process all PQDR/SDR actions. The contractor is required to obtain 

and maintain WEBSDR access at: 

https://www.transactionservices.dla.mil/daashome/websdr.asp

The Contractor shall investigate and resolve PQDR/SDR actions relating to nonconforming or discrepant material. The Contractor shall submit its recommended 

resolution into the WebSDR system within 15 calendar days of being notified of the 

action by the customer. The Contractor shall track PQDR and SDR receipts and 

resolution, and shall include this information in the annual review with the Government. 

The Contractor shall be responsible for picking up and correcting or replacing any 

material requiring correction or replacement, and for delivery of conforming goods to the 

customer. 

7.0 REPORTING REQUIREMENTS

Occurrence Reporting. The Contractor shall provide the following information via e-mail to the 

Contracting Officer on an individual occurrence basis during the period of performance of the 

contract:

a. Product Quality Deficiencies (include NSN, quantity returned, customer, disposition 

of material)

b. VMI inventory reported monthly by facility DODAAC (include NSN, quantity, 

disposition of material) in a MS Excel spreadsheet.

c. Hazardous Spill Reporting

Annual Reporting. The Contractor shall provide a Small Business Subcontract Material Spend 

Analysis Report (if not reported in eSRS) covering contract performance for each 12-month 

performance period. This report shall be submitted within ten (10) business days after the end of 

each applicable performance period.

8.0 END OF CONTRACT SUPPORT

Upon expiration or termination of the contract, the Contractor shall provide the Government all 

requested demand, forecast, and spend data and information necessary to prepare a follow-on 

solicitation. The Contractor may also be asked to provide supplier information. The Contractor 

shall participate in meetings with the Government and the new contractor to ensure an orderly 

transition from the old contract to the new contract. 

9.0 CONTRACT EXPIRATION
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Upon contract expiration, the Government will not be required to purchase from the Contractor 

any inventory purchased by the Contractor to support the requirements of this contract. The 

Contractor may negotiate a commercial sale to the successor contractor, but the Government 

disclaims any responsibility or obligation to facilitate any such sale. 

The Contractor shall continue to comply with the delivery requirements of this contract for all 

orders received up to the expiration date. 

10.0 POST AWARD CONFERENCE 

The Contracting officer, in conjunction with the cognizant ACO, may require a post-award 

conference in accordance with FAR 42.503. If a conference is deemed necessary, it will be 

conducted within 30 days of contract award. The Contractor shall be responsible for ensuring 

that all critical subcontractors participate in the conference. The date, time, and location of the 

conference will be mutually agreed upon by the Contracting officer, ACO, and the Contractor.