Invitation For Bid Number 14-0092

INVITATION FOR BID (IFB)

Number 14-0092

ROLLING STOCK ASSETS 

SURPLUS USABLE PROPERTY 

LIQUIDATION SALE

STEP TWO OF TWO-STEP SOLICITATION

Finalized: March 18, 2014 (changes in red)
Invitation For Bid Number 14-0092

TABLE OF CONTENTS

GENERAL STATEMENTS OF CONTRACT 5

ITEM DESCRIPTION 9

ARTICLE ONE: BID EVALUATION AND CONTRACT AWARD 11

Section 1 – Bidding Process 11

Section 2 – Bid Evaluation 11

Section 3 – Contract Award 11

Section 4 – Post-Award Conference 11

Section 5 – Pre-Award Survey _________________________________________11

ARTICLE TWO: PARTIES TO THE CONTRACT 13

Section 1 – Contractor Information 13

Section 2 – Transfer and Hypothecation 13

Section 3 – Contract of Sale 13

Section 4 – Authority of Sales Contracting Officer (SCO) 13

ARTICLE THREE: CONTRACT FINANCIAL RETENTION 14

Section 1 – Bid Deposit 14

Section 2 – Payment Deposit 14

Section 3 – Financial Guarantee Bond 14

ARTICLE FOUR: CONTRACT PERFORMANCE 15

Section 1 – Performance Period 15

Section 2 – Phase-In Period 15

Section 3 – Termination for Convenience of the Government 15

Section 4 – Wind-Down Commencement Date____________ 17

Section 5 – Cessation of Property Referrals _____________ 17

Section 6 – Conduct of Wind-Down____________________ 17

ARTICLE FIVE: DISTRIBUTIONS TO DLA DISPOSITION SERVICES 18

Section 1 – Monthly Up-Front Property Payment 18

Section 2 – Monthly Back-End Property Payment 18

Section 3 – Method of Payment 18

Section 4 – Failure to Make Timely Payment 18

ARTICLE SIX: PRODUCT POOL, PROPERTY REFERRALS AND TITLE 

TRANSFER 19

Section 1 – Product Pool 19

Section 2 – Property Referrals 19

ARTICLE SEVEN: DEMILITARIZATION CODES AND TRADE SECURITY

CONTROL (TSC) REQUIREMENTS 22

Section 1 – Demilitarization Codes 22

Section 2 – Contractor’s Trade Security Control Requirements 22

Section 3 – Munitions List Items and Commerce Control List Items 23

ARTICLE EIGHT: INVENTORY ASSURANCE 24

Section 1 – Do-Not-Sell (DNS) List 24

Section 2 – Demilitarization Code Change (DCC) List 24

Section 3 – Property Assurance Contractor De-Incentives 24

ARTICLE NINE: GOVERNMENT REQUIRED REPORTS 25

Section 1 – Inventory Reports 25

Section 2 – Receipt of Property at the Contractor’s Facility __________________25

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Invitation For Bid Number 14-0092

Section 3 – Resale and Returns Report ______ 25

Section 4 – Seller Indirect Cost (SIC) Report ______ 25

Section 5 – Non Responsive Resale Buyer Report 25

Section 6 – Federal Asset Sales (FAS) Requirements 25

ARTICLE TEN: PROPERTY REMOVAL AND GOVERNMENT OWNED 

MATERIAL HANDLING EQUIPMENT (MHE) 27

Section 1 – Property Storage on Government Facilities 27

Section 2 – Storage Charges____________________ 27

Section 3 – Receipt In Place (RIP) Property Storage on Government Facilities 27

Section 4 – DLA DISPOSITION SERVICES Infrastructure 27

Section 5 – Government Owned Material Handling Equipment (MHE) 28

ARTICLE ELEVEN: PROPERTY RETURNS 29

Section 1 – Property Accountability of Items Issued to Contractor 29

Section 2 – Line Item Discrepancies 29

Section 3 – Property Retrieval of Controlled Items 29

Section 4 – Reutilization/Transfer/Donation (RTD) Property Returns 30

ARTICLE TWELVE: CONTRACT OPERATION REQUIREMENTS 31

Section 1 – Contractor Participation in Federal Asset Sales 31

Section 2 – Contractor Awareness of the DLA Environmental Management System 

(EMS) ________________________ ______31

Section 3 – Inventory Assurance by Contractor 31

Section 4 – Contractor Web Based Application 31

Section 5 – DLA DISPOSITION SERVICES Inspection of Property 32

Section 6 – Duties of Care and Loyalty_______________________ 32

ARTICLE THIRTEEN: MATERIAL BREACH 33

Section 1 – Notice of Material Breach 33

Section 2 – Response to Notice 33

Section 3 – Termination 33

Section 4 – Intentional Breach 33

Section 5 – DLA DISPOSITION SERVICES Remedies for Material Breach by 

Contractor 33

Section 6 – Indemnification of DLA DISPOSITION SERVICES by Contractor 33

Section 7 – Indemnification of Contractor by DLA DISPOSITION SERVICES 33

ARTICLE FOURTEEN: CONTRACT SELLER INDIRECT COSTS 34

Section 1 – Documentation and Payment of Seller Indirect Costs 34

ARTICLE FIFTEEN: CONTRACT COMPLIANCE, AUDITS,

INVESTIGATIONS AND REVIEWS ______________________________________ 35

Section 1 – Compliance with Applicable Laws and Regulations 35

Section 2 – Licenses and Permits 35

Section 3 – Duties of Care and Loyalty 35

Section 4 – Prohibited Activities 35

Section 5 – Contractor Cooperation in DOD Investigations/Audits 35

Section 6 – Contractor’s Responsibility for Independent Audit at Government’s 

Request 36

Section 7 – Contractor Record Retention 36

Section 8 – Records Maintenance 36

Section 9 – Inspection of Records and Workplace by Government 36

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Invitation For Bid Number 14-0092

Section 10 – Purpose and Content of Compliance Audits, Investigations, 

Reviews and Further Reviews_____ 36

Section 10 – Methods and Procedures for Compliance Reviews and 

Investigations_________________________________________________36

Section 11 – Further Reviews 36

Section 12 – Compliance Notification 37

Section 13 – Costs of Oversight 37

Section 14 – Notice of Audit Adjustment 37

Section 15 – Procedures for Adjudication of Audit Adjustments 37

Section 16 – Remedies for Audit Adjustments 37

ARTICLE SIXTEEN: DISPUTES 38

Section 1 – Disputes 38

Section 2 – Claims 38

Section 3 – Decisions 38

Section 4 – Alternative Dispute Resolution (ADR) 38

ARTICLE SEVENTEEN: INSURANCE AND BOND REQUIREMENTS 39

Section 1 – Insurance and Bond Contract Requirements 39

Section 2 – Modification of Special Circumstance Conditions 39

Section 3 – Further Modifications 39

Section 4 – Evidence of Insurance 39

ARTICLE EIGHTEEN: MISCELLANEOUS PROVISIONS 40

Section 1 – Binding Effect 40

Section 2 – Notices 40

Section 3 – Severability 40

Section 4 – Headings 40

Section 5 – Survival 40

Section 6 – Waiver 40

Section 7 – Force Majeure 40

Section 8 – Use of DLA DISPOSITION SERVICES Name; Public 

Communications 40

Section 9 – Tense and Gender 41

Section 10 – Entire Agreement; Modification 41

Section 11 – Computation of Time 41

Section 12 – Electronic Communication 41

ADDITIONAL TERMS AND CONDITIONS OF SALE 42

ADDITIONAL CONTRACT ADVISEMENTS 43

DEFINITIONS 44

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Invitation For Bid Number 14-0092

SURPLUS USABLE PROPERTY

INVITATION FOR BID

Number 14-0092

STEP TWO OF TWO-STEP BIDDING PROCESS

This Invitation For Bid (IFB) is issued by DLA DISPOSITION SERVICES to initiate Step Two 

of a two-step sealed bid/live auction sales process. The only bids the Sales Contracting Officer (SCO) 

may consider for award of a contract are those received from bidders that have submitted an acceptable 

technical proposal during Step One of this solicitation under RFTP 14-0092.

The successful bidder's technical proposal shall be incorporated into any contract awarded in 

response to this IFB, thus any deviation from the proposal will require a contract modification. 

In all other respects, the provisions of this IFB shall govern the contract contemplated hereby 

without regard to assumptions, plans, forecasts, conditions or any other matters set forth in any 

prospective bidder's technical proposal submitted in Step One.

Forms for submitting a bid are provided on the DLA DISPOSITION SERVICES web 

site, http://dispositionservices.hq.dla.mil/sales/Pages/usable-sales-property.aspx, click on Property for 

Sale to Public and then Sales. Your completed Bid Forms and $100,000.00 bid deposit must be 

delivered to and received by DLA DISPOSITION SERVICE’S SCO before the bid opening at 1:00 p.m.

EDT on Wednesday, April 2, 2014. Address your Bid Forms and Bid Deposit to:

Ms. Becky Bellinger

Sales Contracting Officer

DLA DISPOSITION SERVICES J-422

74 North Washington Avenue

Battle Creek, Michigan 49037-3092

Fax: (269) 961-7568

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Invitation For Bid Number 14-0092

GENERAL STATEMENTS OF CONTRACT

Certain contents and provisions of this IFB, including Appendices, Attachments and 

Schedules, are described in general. The following General Statements of Contract are not intended 

to be complete and do not take precedence over the terms and conditions of this contract. The 

requirements for all matters discussed in the General Statements are fully defined in the Terms and 

Conditions Section of this IFB. Any historical data provided in this IFB was derived using existing 

sources and is presented for general reference only.

This IFB relates to usable property that the Government has determined to be surplus to the 

needs of the Department of Defense and the Federal Government. Usable property is defined with 

respect to a particular item, as a designation assigned by or with the approval of DLA DISPOSITION 

SERVICES personnel meaning that the item has value in excess of that of the item’s material content. 

The property will be comprised of items identified by the Government as safe to sell and generally 

located in the Continental United States (CONUS) to include Alaska, Hawaii, Guam, Puerto Rico, and 

possibly the Virgin Islands. The Government may include locations outside CONUS at mutual 

agreement of the Contractor. Property issued under this contract will be comprised of usable, safe to 

sell Rolling Stock assigned demilitarization code A, F, or Q. The product pool being offered is defined 

as:

Ground related, self-propelled wheeled and track mounted vehicles (such as passenger motor 

vehicles, trucks and dozers) and trailers (such as semi-trailers, cargo trailers and special 

purpose trailers).

DLA DISPOSITION SERVICES receives property at DLA DISPOSITION SERVICES facilities 

in CONUS, and Alaska, Hawaii, Guam and Puerto Rico (and possibly the Virgin Islands). The 

Government reserves the right to request specific advertising or movement of the property located in 

Puerto Rico and the Virgin Islands when the Contractor resells. Other issuing locations outside 

CONUS may be added to this contract at mutual agreement of the Contractor. DLA DISPOSITION 

SERVICES may also receive generator property that is not located at a DLA DISPOSITION 

SERVICES facility, therefore, may refer for sale to the Contractor at Receipt In Place (RIP) locations. 

The successful bidder commits to purchase property issued under this contract for a twenty-four 

(24) month performance period commencing from the date of submission of the initial Delivery Order to 

the Contractor. DLA DISPOSITION SERVICES may exercise options to extend the performance 

period for up to an additional forty-eight (48) months via four twelve month options, based on 

Government requirements and mutual agreement of the contractor. 

A bid will consist of one bid percentage specified by the bidder indicating the share of gross 

revenue that the Contractor will pay the Government (to include a share of any bidder’s premium or 

other administrative fees received) when the property issued under this contract is resold. The winning 

bid will be determined by the bidder offering the highest bid percentage. The successful bidder agrees 

to pay the Government a two-part payment. The Up-Front payment will consist of 0.25 (a quarter of a 

percent) of an item’s assigned acquisition value. The Back-end payment will consist of a bid 

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Invitation For Bid Number 14-0092

percentage of the gross revenue that the Contractor will pay the Government when the Contractor resells 

the property. 

Within ten (10) business days of contract award, the Contractor must pay DLA DISPOSITION 

SERVICES a payment deposit totaling five hundred thousand dollars ($500,000). This amount is in 

addition to the $100,000 bid deposit required at the time of bid submission. The payment deposit will 

be held by DLA DISPOSITION SERVICES until the conclusion of the contract wind-down period. 

The Contractor is also required to provide a financial guarantee bond in the amount of $3 million.

Prior to award of this contract, the Contractor will be required to obtain a Trade Security Control 

(TSC) assessment by providing the Sales Contracting Officer a properly completed End-Use Certificate 

(EUC) in the form of a DLA Form 1822 (copy available on the DLA DISPOSITION SERVICES web 

site, http://dispositionservices.hq.dla.mil/sales/Pages/usable-sales-property.aspx, click on Property for 

Sale to Public and then Sales. The TSC Assessment investigation verifies the entity as claimed, that the 

entity is doing business at the name and location claimed, and that there are no disqualifying factors 

present (i.e., convictions for illegal export of military technology, debarment by a Government activity, 

etc.).

All property that the Government issues under this contract requires property assurance 

responsibilities on the part of the Contractor which may result in the property being returned to the 

Government. DLA DISPOSITION SERVICES will furnish the Contractor a Do-Not-Sell (DNS) List 

(to include updates as often as necessary) and a Demilitarization Code Change (DCC) List (also updated 

as often as necessary) representing items that are or have become prohibited from sale. Contractor will 

return any item on the DNS and DCC lists prior to release to resale customers and shall identify the 

return by the applicable Delivery Order and Disposal Turn-In Document (DTID). De-incentives will 

apply to the Contractor with regard to the resale of items that DLA DISPOSITION SERVICES has 

identified as becoming controlled or DEMIL required and placed on the DNS or DCC List.

Certain property identified for return may have already been resold by the Contractor and no 

longer in the Contractor’s possession. DLA DISPOSITION SERVICES suggests the Contractor advise 

resale buyers that due to national security, the Government may ask for the return of property. 

Contractor will be required to inform their customer of the property’s status and request that it be 

returned. Contractor agrees to withhold further sales participation from customers who are nonresponsive or who refuse to return the property still within their possession. 

There may also be occasions when the Government will request the return of property issued to 

the Contractor because it is required for DOD/DLA DISPOSITION SERVICES mission. DLA 

DISPOSITION SERVICES does not anticipate a large volume of property will be requested in this 

manner. DLA DISPOSITION SERVICES will refund the Contractor’s purchase price for the return of 

the items requested by DLA DISPOSITION SERVICES and will advise Contractor of return process at 

DLA DISPOSITION SERVICES expense. No Contractor Direct Costs will be considered for the return 

of the property.

Contractor agrees to fully cooperate with the Government when informed by DLA 

DISPOSITION SERVICES of any reviews or investigations by any DOD or Federal Government 

investigative service or agency. Contractor agrees to provide DLA DISPOSITION SERVICES with all 

requested information regarding the property or information relating to the customer purchasing the 

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Invitation For Bid Number 14-0092

property. Contractor must make all sales records, property, and customer’s records pertaining to such 

investigations available to DLA DISPOSITION SERVICES upon request.

DLA DISPOSITION SERVICES will not provide the Contractor indoor or outdoor storage space 

for the purposes of this contract, therefore, the Contractor is required to obtain their own storage 

facilities. Special circumstances may arise where DLA DISPOSITION SERVICES will allow the 

property to remain at a Government facility, however, expressed authorization from DLA 

DISPOSITION SERVICES is required. The Contractor will be charged storage charges for property 

not removed from a Government facility in a timely manner. 

Property being stored by the Contractor at the Contractor’s facility(ies) must be safeguarded to 

the satisfaction of the Government at all times. The Government reserves the right to conduct “nonotice” site inspections of the Contractor’s facilities as needed. 

No Government owned Material Handling Equipment (MHE) will be made available to the 

Contractor. On a case by case basis, the Government may offer assistance in loading Contractor 

property, to include providing specialized Government owned MHE if available.

The Contractor is required to participate in the Government’s Federal Asset Sales (eFAS) 

Program whereby the Contractor agrees to integrate all sales being conducted by the Contractor to the 

website, GovSales.gov, a Real and Personal Property link that facilitates the sale for all Government 

Agencies. Required quarterly reports reflecting Contractor sales performance must be provided to the 

Sales Contracting Officer. 

The contract requires that the Contractor fulfill certain requirements related to national security, 

DLA DISPOSITION SERVICES customer service, and compliance review. In addition, the Contractor 

is fully auditable, therefore, will remain cooperative with DLA DISPOSITION SERVICES audit 

requirements to include accounting statements, insurance coverage, inventory control/asset tracking, 

inventory aging, and returning/retrieving controlled property, both prior to resale and after. Any and all 

of the Contractor’s records must be made available to DLA DISPOSITION SERVICES, to include 

providing DLA DISPOSITION SERVICES copies and/or allowing DLA DISPOSITION SERVICES to 

make copies of all records requested. Records will be made available in either electronic or hard copy 

form as required by DLA DISPOSITION SERVICES. The contract also contains certain provisions 

regarding the logistical interface with DLA DISPOSITION SERVICES and its generators. 

The Contractor must work effectively with DLA DISPOSITION SERVICES personnel with 

respect to logistics, and must interact with DLA DISPOSITION SERVICES personnel with regard to 

national security matters, customer service requests of DLA DISPOSITION SERVICES, financial 

reporting, compliance monitoring and dispute resolution. 

The Government reserves the right to conduct a post-award conference as early as two weeks 

after award. The purpose of the conference is to ensure the Contractor fully understands the terms and 

conditions of this contract. The location and date of the conference will be determined by DLA 

DISPOSITION SERVICES and the costs incurred by Contractor personnel attending shall be paid in full 

by the Contractor without reimbursement by DLA DISPOSITION SERVICES. 

Prospective bidders should be aware of certain risk factors that could affect a bidder’s 

assessment of this contract and the calculations supporting the resulting bid. Although DLA 

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Invitation For Bid Number 14-0092

DISPOSITION SERVICES does not represent that it has identified all such risk factors, the following, 

in addition to those risks identified elsewhere in this IFB, should be considered by a prospective bidder:

The future volume, quality, condition, market value, types (i.e., distribution 

of property referrals across Federal Supply Classes (FSCs), and geographic 

concentrations (i.e., referrals for sale at particular delivery points) of the property 

cannot be predicted. Applicable statutes, regulations, policies and inter-service 

agreements govern whether the disposition of particular items of surplus is through 

DLA DISPOSITION SERVICES or through other disposition modes. The volume 

and nature of the property referred for sale under this contract could be affected by 

such changes. 

Described generally, applicable statutes and regulations grant DLA DISPOSITION SERVICES

less flexibility to agree to amend a contract after award than prospective bidders may have experienced 

in other contractual settings. Prospective bidders should assume that the provisions of the contract 

cannot be significantly amended after award.

This IFB may be the subject of one or more protests to the U.S. General Accountability Office. 

Moreover, it is possible that, either pending or after award, one or more third parties that object to this 

contract could institute litigation involving both DLA DISPOSITION SERVICES and the Contractor. 

DLA DISPOSITION SERVICES cannot predict the likelihood or the possible grounds for such 

litigation. Nevertheless, this is a risk factor that should be assessed by a prospective bidder.

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Invitation For Bid Number 14-0092

ITEM DESCRIPTION

It has been determined that after the completion of the DOD/DLA DISPOSITION SERVICES

Reutilization, Transfer, and Donation process, the items within the property pool are no longer needed 

by the Department of Defense or Federal Government and consist of: 

ITEM 1: Property issued under this contract will be comprised of usable, safe to sell Rolling 

Stock property assigned demilitarization code A, F, or Q. The product pool being offered is defined as:

Ground related, self-propelled wheeled and track mounted vehicles (such as passenger motor 

vehicles, trucks and dozers) and trailers (such as semi-trailers, cargo trailers and special purpose 

trailers). 

 The property will be located in the Continental United States to include Alaska, Hawaii, Guam,

Puerto Rico, and possibly the Virgin Islands, however, the Government may include locations outside 

the Continental United States at mutual agreement of the Contractor. The Government reserves the 

right to request specific advertising or movement of the property located in Puerto Rico and the Virgin 

Islands that the Contractor may resell. Under no circumstances is culling for the purpose of effecting 

partial or incremental removals authorized. 

Described very generally, a demilitarization code is a single alpha character assigned by the item 

of an item. For the purposes of this IFB, the following definitions are provided:

DEMIL Code A – Non-United States Munitions List (USML)/Non-Commerce Control List Items 

(CCLI) – No Demilitarization required. No Trade Security Control Assessment/Clearance required. 

Department of Commerce (DOC) may impose licensing requirements to certain destinations. 

DEMIL Code F – United States Munitions List (USML) Items. Demilitarization instructions to be 

furnished by the Item/Technical Manager/Equipment Specialist, however, Trade Security Controls (as 

set forth by the Department of State) are required at the time of disposition. Demilitarization will have 

been performed prior to issuing to the Contractor for purposes of the contract.

DEMIL Code Q – Commerce Control List Items (CCLI). Demilitarization not required, however 

Trade Security Controls (as set forth by the Department of Commerce) required at time of disposition. 

Trade Security Control Assessment/Clearance required. Mutilation to the point of scrap required outside 

the United States.

The Government will determine items to be sold to the Contractor. Contractor has no right to 

any property that is not issued on a delivery order under the terms of this contract. DLA 

DISPOSITION SERVICES reserves the right to sell property or offer property through alternative sales 

or contract means for all property not considered part of this contract. The Government guarantees to 

issue the Contractor the lesser of either 9,000 line items of property annually or property having an 

annual acquisition value of $200M.

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Invitation For Bid Number 14-0092

Each line item of property will be identified by either a National Stock Number (NSN) or a 

Local Stock Number (LSN) provided by the generator -- usually a military base or other Department of 

Defense (DOD) facility. NSNs are obtained from centralized federal procurement records. For items 

identified by the generator by NSN, DLA DISPOSITION SERVICES employs an automated system 

that matches the NSN to the item's acquisition value as recorded in these procurement records.

Local Stock Numbers (LSNs) are assigned by generator personnel when the item's NSN is 

unknown or unavailable. The acquisition value of an item identified by LSN is determined by the 

generator and reported to DLA DISPOSITION SERVICES on the documentation associated with 

release of the item by the generator to DLA DISPOSITION SERVICES. LSN acquisition values are 

either the generator's recorded original procurement cost or its estimate of the item's replacement cost. 

In some instances, DLA DISPOSITION SERVICES receiving personnel will correct the generator's 

turn-in documentation by replacing an LSN with an NSN. In such cases the item's acquisition value is 

that corresponding to the NSN rather than that originally reported by the generator.

The link provided, http://dispositionservices.hq.dla.mil/sales/Pages/usable-sales-property.aspx, 

click on Property for Sale to Public and then Sales), provides historical information relating to past 

generations of usable property similar to what is being offered in this IFB. Bidders are advised that any 

sales history information provided is for informational purposes only. Prior year property generations 

and sales data are not predictors of future generations or sales.

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Invitation For Bid Number 14-0092

ADDITIONAL TERMS AND CONDITIONS OF SALE

The following Articles (not part of the Sale By Reference (SBR), July 2012) apply and constitute 

additional terms and conditions of this sale:

ARTICLE ONE

Bid Evaluation and Contract Award

Section 1 – Bidding Process – The bidding process will commence on the bid opening day and time 

specified by the Government. Bidders are expected to arrive at the bid opening with a sealed bid

consisting of one bid percentage specified by the bidder. The bid must be expressed as a percentage of 

the gross revenue that the Contractor will share with the Government when property issued under this 

contract is resold. The bid must exceed zero, and limited to only two (2) digits to the right of the 

decimal without rounding. The Sales Contracting Officer (SCO) will open each sealed bid at the 

specified bid opening day and time. Bids will be read by the SCO. From the bids offered, a high bid 

will be determined which will be the starting point for the live auction. Bidders will then be offered an 

opportunity to increase their bid in incrementally during the live auction. The auction will end when no 

further bid increases are received. The high bid offered at that time will be considered the apparent 

high bid.

Section 2 – Bid Evaluation - Award will be made to the responsive, responsible bidder that offers the 

highest bid price. The winning bid will be determined by the bidder offering the highest bid percentage. 

The Contractor's Back-End purchase price for property will consist of the percent of gross revenue (to 

include any bidder’s premium or other administrative fees) that the Contractor will share with the 

Government when property issued under this contract is resold. The Government reserves the right to 

not award a contract if such contract is deemed not to be in the Government’s best interest. Further, the 

Government may also reject any bid if DLA DISPOSITION SERVICES determines that accepting such 

bid would not be in the Government's best interest.

Section 3 – Contract Award – The SCO will determine if each bid is responsive and responsible prior 

to award of the contract. The contract will be awarded to the highest responsive, responsible bidder. In 

the event of a termination of the original Contractor within sixty (60) calendar days of the date of award, 

the SCO may award the contract to the next highest responsive, responsible bidder if bids have not 

expired, and such award is otherwise determined to be in the Government's best interest, price and other 

factors considered.

Section 4 – Post-Award Conference - The Government reserves the right to conduct a post-award 

conference as early as two weeks after award. The purpose of the conference is to ensure the 

Contractor fully understands the terms and conditions of this contract. The location and date of the 

conference will be determined by DLA DISPOSITION SERVICES and the costs incurred by Contractor 

personnel attending shall be paid in full by the Contractor.

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Invitation For Bid Number 14-0092

Section 5 – Pre-Award Survey - The Pre-Award survey is one of the factors used by the Government 

to ensure the Contractor’s ability to satisfactorily perform the work in accordance with their technical 

proposal submitted in step-one of this solicitation. After solicitation opening/closing and prior to award, 

the Government may conduct a Pre-Award survey of one or more bidders who may become eligible for 

award after final evaluation. The Pre-Award survey may be conducted at the Contractor’s facility(ies) 

or other location(s) as deemed necessary by the Government and may include a review of Contractor’s 

facilities and equipment, financial capability or disclosure of a Contractor’s financial condition, quality 

assurance, safety, and transportation. Bidders must cooperate in the Pre-Award process by assisting in 

arrangements and/or by providing requested information in a timely manner. Bidders are advised that 

accomplishment of a Pre-Award survey or furnishing documents to the Government in support of the 

Pre-Award survey is part of the evaluation of the responsibility process and is not to be construed as an 

indication that a bidder will receive award of a contract.

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Invitation For Bid Number 14-0092

ARTICLE TWO

Parties to the Contract

Section 1 – Contractor Information - Within thirty (30) calendar days of the date of contract award,

the contractor shall provide DLA DISPOSITION SERVICES the following information: 

(A) Designation of key persons, if any, in addition to those identified in Contractors technical 

proposal. 

(B) Contractor shall provide the SCO notification of any changes to the above within ten (10) 

calendar days of the change. 

(C) Certain Contractor personnel must have a security clearance and obtain a Contractor’s 

Access Card (CAC) in order to enter and conduct business at DLA Disposition Services 

Field Site locations. The SCO will assist the Contractor in completing this process.

Section 2 – Transfer and Hypothecation 

(A) General Prohibition - Except as specifically provided herein or specifically approved by 

DLA DISPOSITION SERVICES in writing, the Contractor may not directly or indirectly sell, 

transfer, assign, pledge, offer as collateral or otherwise hypothecate all or any part of its rights or 

obligations under the contract. 

(B) Attempted Transfer - Any attempted transfer in violation of the provisions of this Article 

shall be null and void, and shall constitute a material breach of this contract.

Section 3 – Contract of Sale

(A) Relationship of Parties - This contract is an agreement for the sale of the property by

DLA DISPOSITION SERVICES as seller to Contractor as the buyer. Contractor and DLA 

DISPOSITION SERVICES expressly disavow the creation of any other relationship, including without 

limitation principal-agent, master-servant, employer-employee, general or limited partnership, or joint 

venture, between DLA DISPOSITION SERVICES and the Contractor.

(B) Parties to Contract - The parties to this contract are DLA DISPOSITION SERVICES and 

the Contractor. The exclusive representative of DLA DISPOSITION SERVICES for all purposes under 

this contract is the SCO, and all notices, demands, requests, consents, approvals, declarations, reports 

and other communications to DLA DISPOSITION SERVICES from Contractor shall be deemed 

ineffective unless addressed to the SCO. Communications from the Contractor to anyone other than the 

SCO shall not be deemed received by DLA DISPOSITION SERVICES.

Section 4 – Authority of Sales Contracting Officer (SCO) - On behalf of DLA DISPOSITION 

SERVICES, the SCO has the authority to represent DLA DISPOSITION SERVICES and to commit 

DLA DISPOSITION SERVICES to take such actions as permitted or required and to extend or waive 

timing requirements or deadlines as may reasonably be required under the performance of this contract.

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Invitation For Bid Number 14-0092

ARTICLE THREE

Contract Financial Retention

Section 1 – Bid Deposit - Each bid must be accompanied by a refundable bid deposit in the form of a 

guaranteed instrument (cashier’s or certified check) in the amount of one-hundred thousand dollars 

($100,000.00) payable to U.S. Treasury. DLA DISPOSITION SERVICES will retain the Contractor’s 

bid deposit until completion of the wind-down period. The bid deposit will be applied to any unpaid 

billings or to offset any other claim that DLA DISPOSITION SERVICES may have against the 

Contractor. DLA DISPOSITION SERVICES shall return any available balance of the bid deposit, 

without interest, to Contractor at the completion of the wind-down period.

Section 2 – Payment Deposit - Within ten (10) calendar days of notification of the SCO, Contractor 

shall provide DLA DISPOSITION SERVICES the amount of five-hundred thousand dollars 

($500,000.00), referred to as the payment deposit. The payment deposit must be made via guaranteed 

instrument, cashier/certified check, wire transfer or Electronic Funds Transfer (EFT). DLA 

DISPOSITION SERVICES will retain the payment deposit until the completion of the wind-down 

period. The payment deposit will be applied to any unpaid billings or to offset any other claim that 

DLA DISPOSITION SERVICES may have against the Contractor. DLA DISPOSITION SERVICES

shall return any available balance of the payment deposit, without interest, to Contractor at the 

completion of the wind-down period.

Section 3 – Financial Guarantee Bond – Within thirty (30) calendar days of notification of the SCO, 

Contractor shall provide Disposition Services a financial guarantee bond in favor of DLA 

DISPOSITION SERVICES in the amount of three million dollars ($3,000,000.00). The purpose of the 

Financial Guarantee Bond shall be to provide a source of payment to DLA DISPOSITION SERVICES

in an amount reasonably sufficient to satisfy the financial obligations of Contractor or for damages 

arising out of a material breach by Contractor. The Financial Guarantee Bond shall be issued by such 

surety and in such form that are acceptable to DLA DISPOSITION SERVICES. The Bond shall be 

carried for the duration of the contract, however, may be renewed on an annual basis, renewable at the 

sole option of the surety.

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Invitation For Bid Number 14-0092

ARTICLE FOUR

Contract Performance

Section 1 – Performance Period - Subject to the early cancellation option provisions and the 

Termination for Convenience of the Government provisions, the Government shall provide property for 

a twenty-four (24) month period from the date of the initial delivery order to Contractor. DLA 

DISPOSITION SERVICES may exercise four one-year options to extend the performance period for up 

to an additional forty-eight (48) months based on Government requirements. The Government may 

extend the term of this contract by providing written notice to the Contractor within 120 calendar days 

of contract end. The preliminary notice does not commit the Government to an extension. If the 

Government exercises this option, the extended contract shall be considered to include this option 

clause. 

Section 2 – Phase-In Period - The Contractor must be fully operational and prepared to accept all 

property within six (6) months of award. If Contractor is unable to receive property after six months, 

DLA DISPOSITION SERVICES shall have the right to sell property to other buyers until the Contractor 

is functional and able to receive property. Contractor must notify the Government when they are ready 

to accept property. Contractor may request acceleration of referrals at any delivery point, and DLA 

DISPOSITION SERVICES will respond to such request in the exercise of its sole discretion. 

Section 3 – Termination for Convenience of the Government – The Government may terminate 

performance of work under this contract in whole or, from time to time, in part if the SCO determines 

that a termination is in the Government’s interest. The SCO shall terminate by delivering to the 

Contractor a Notice of Termination specifying the extent of termination and the effective date.

After receipt of a Notice of Termination, and except as directed by the SCO, the Contractor shall 

immediately proceed with the following obligations, regardless of any delay in determining or adjusting 

any amounts due under this clause:

(1) Stop work as specified in the notice.

(2) Unless otherwise directed by the SCO, place no further subcontracts or orders (referred to as 

subcontracts in this clause) for materials, services, or facilities. Stop any pending sales and make 

no further sales to resale buyers.

(3) Terminate all subcontracts to the extent they relate to the work terminated. 

(4) Unless otherwise directed by the SCO, assign to the Government, as directed by the SCO, all 

right, title, and interest of the property issued by Delivery Order whether in Contractor or 

subcontractor facilities. Whether property is in Contractor or subcontractor facilities, coordinate 

with the SCO the return of any property issued to the Contractor by Delivery Order to the 

Government or move property to Contractor owned facilities for Government retrieval upon 

written direction from the SCO.

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Invitation For Bid Number 14-0092

(5) With approval or ratification to the extent required by the SCO, settle all outstanding 

liabilities and termination settlement proposals arising from the termination of subcontracts.

(6) Take any action that may be necessary, or that the SCO may direct, for the protection and 

preservation of the property related to this contract that is under title and/or in the possession of 

the Contractor or subcontractor and in which the Government has or may acquire an interest until 

surrendered to the Government or its agent. The Contractor and SCO shall agree on payment for 

the preservation and protection of goods. Failure to agree on an amount will be a dispute under 

the Disputes clause.

The Contractor shall submit a complete termination inventory schedule to include a list, certified 

as to DTID and quantity, of termination inventory no later than 30 calendar days from the effective date 

of termination, unless extended in writing by the SCO upon written request of the Contractor within this 

30 calendar day period. The Government will review the inventory list within 14 calendar days and 

contact the Contractor with any discrepancies and notify the Contractor of items that the Contractor can 

retain title of. The retention of title of these items will be by mutual agreement. 

If the Contractor has any cost it wishes the Government to consider prior to the Government 

assessing settlement costs, they must be submitted within 14 calendar days of final removal of returned 

surplus property to the Government. Any cost submitted by the Contractor must be determined to be 

allocable, allowable, and reasonable and supported with documentation to the degree required by the 

SCO. Unless extended in writing by the SCO, upon written request of the Contractor, the SCO shall 

determine the settlement proposal within 14 calendar days of receipt of any submission of final 

Contractor settlement costs. If the Contractor fails to submit their proposal for settlement cost within the 

time allowed, the SCO may determine, on the basis of information available, the amount, if any, due the 

Contractor or owed by the Contractor. If the Contractor pays for return of the property issued on 

Delivery Order, the cost of return of the property issued by Delivery Order will be offset by any 

payment the Government has already received for said property. If the Government pays for the return 

of property payment received for the property will be returned less any Government determined 

settlement costs to be paid by the Government.

The Contractor has 14 calendar days to review the contract settlement proposal and request any 

additional information. Payment to be made by either party shall be made within 30 calendar days of 

Contractor receipt of the settlement proposal. Any amount due the Contractor may include a reasonable 

allowance for profit for work completed. If the Contractor fails to pay settlement cost within the 

specified time, the cost will be deducted from any deposit funds available from the performance of this 

contract. Any remaining funds from the deposit will be returned by the Government.

If the Contractor and the SCO fail to agree on the amount that may have been determined due to 

the Contractor by the Government due to the termination of the sales contract, the SCO shall pay the 

Contractor the amounts determined by the SCO within the specified time. Any amount due to be paid 

by the Contractor and not paid within the specified time period shall be charged interest based on the 

rate determined by the Secretary of Treasury.

The cost principles and procedures of Part 31 of the Federal Acquisition Regulation, in effect on 

the date of this contract, shall govern all costs claimed, agreed to, or determined under this clause.

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Invitation For Bid Number 14-0092

The Contractor shall have the right of appeal, under the Disputes clause, from any determination 

made by the SCO, except that if the Contractor failed to submit the termination settlement proposal or a 

request for equitable adjustment within the time provided.

In arriving at the amount due the Contractor under this clause, there shall be deducted; 

(1) Any claim which the Government has against the Contractor under this contract; and

(2) The agreed price for, or the proceeds of sale of, materials, supplies, or other things 

acquired by the Contractor or sold under the provisions of this clause and not recovered 

by or credited to the Government.

This clause has the same full effect, if this contract is terminated in partial.

Unless otherwise provided in this contract or by statute, the Contractor shall maintain all records 

and documents relating to the terminated portion of this contract for 3 years after final settlement. This 

includes all books and other evidence bearing on the Contractor’s costs and expenses under this contract. 

The Contractor shall make these records and documents available to the Government, at the Contractor’s 

office, at all reasonable times, without any direct charge. If approved by the SCO, photographs, 

microphotographs, or other authentic reproductions may be maintained instead of original records and 

documents.

 

Section 4 - Wind-Down Commencement Date - Beginning with the date that is the earlier of either the 

end of the performance period or the effective date of termination by reason of DLA DISPOSITION 

SERVICES or the Contractor exercising the early cancellation option or by reason of a material breach, 

the contract shall wind-down for a period of 120 calendar days. 

Section 5 - Cessation of Property Referrals - There shall be no further referrals of property by DLA 

DISPOSITION SERVICES to Contractor from the wind-down commencement date forward. 

Submission of Contractor required reports shall continue as before the wind-down commencement date 

until the wind-down is completed.

Section 6 - Conduct of Wind-Down - From the wind-down commencement date forward, the 

Contractor shall perform their remaining obligations hereunder in accordance with the provisions of this 

contract. During contract wind-down period, should the Contractor elect not to sell property that has 

been previously issued on a Delivery Order, it shall be the Contractor’s sole responsibility for any cost 

associated with the return of the property to the Government. Any purchase price paid by the 

Contractor shall not be refunded to the Contractor. 

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Invitation For Bid Number 14-0092

ARTICLE FIVE

Distributions/Payments

Section 1 – Monthly Up-Front Property Payment – Contractor will pay DLA DISPOSITION 

SERVICES the billed amount for the up-front purchase of property each month. DLA DISPOSITION 

SERVICES may issue multiple Statements of Account (SOAs) to the Contractor no later than the last 

day of each month. The SOAs will reflect the up-front purchase price (0.25 (a quarter of a percent) of 

the Government’s acquisition value) for the property issued to the Contractor during the prior month less 

any credits applied during the month for returned property. The balance reflected on the SOAs will be 

the amount owed to DLA DISPOSITION SERVICES by the Contractor for the particular month billed. 

Contractor is required to submit payment to DLA DISPOSITION SERVICES no later than the 15th of 

each month. 

Section 2 – Monthly Back-End Property Payment – In addition to the Up-front purchase price 

described in Section 1 of this Article, the Contractor will also pay DLA DISPOSITION SERVICES the 

Contractor’s bid price when property is resold. The SOA(s) will reflect the back-end payment for 

property resold by the Contractor. Contractor’s bid of the resale gross revenue includes any resale

revenue from the property sold to the Contractor by the Government. These proceeds include any direct 

proceeds received from the Contractor in the initial sales transaction and any subsequent proceeds or 

other revenue received by the Contractor in any subsequent arrangements/contracts with other parties. 

The Contractor shall not enter into any resale transaction other than on an arms-length basis or with 

pricing or other terms less favorable to the Contractor than otherwise reasonably obtainable. The 

Government anticipates the Contractor shall auction all items purchased from the Government; 

regardless of type of resale transaction. Contractor shall resell the property in an arms-length transaction 

that is intended to provide the best possible resale value. Any revenue received from such transaction, 

at time of transaction or deferred, shall be considered revenue for purposes of the percentage bid by the 

Contractor under this contract. Contractor is required to submit payment to DLA DISPOSITION 

SERVICES no later than the 15th of each month.

Section 3 – Method of Payment – Payments made to DLA DISPOSITION SERVICES will be via an 

Electronic Funds Transfer (EFT). The account number for EFT and wire transfers will be provided by 

the SCO and updated whenever necessary.

Section 4 – Failure to Make Timely Payment - Should Contractor fail to pay to DLA DISPOSITION 

SERVICES the full amount owed as reflected on the SOAs each month on or before the date that such 

payment is due, DLA DISPOSITION SERVICES may, in its sole discretion, (i) apply that portion of the 

payment deposit that is necessary to pay the amount owed, and (ii) notify Contractor that such failure 

constitutes a material breach that the Contractor must cure within ten (10) calendar days of notice 

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Invitation For Bid Number 14-0092

thereof by paying to DLA DISPOSITION SERVICES an amount equal to one-hundred twenty percent 

(120%) of the subject amount owed, which payment shall be applied by DLA DISPOSITION 

SERVICES to replenish and increase the amount of the payment deposit. The Contractor shall also be 

assessed interest on the payment based on the current rate as determined by the Secretary of Treasury. 

The interest will be added to the next month’s Statement of Account(s).

ARTICLE SIX

Product Pool, Property Referrals and Title Transfer

Section 1 – Product Pool

(A) Property Flow - The property will be comprised of items identified by the Government as 

safe to sell and generally located in the Continental United States (CONUS) to include Alaska, Hawaii, 

Guam, Puerto Rico, and possibly the Virgin Islands. The Government may include locations outside 

CONUS at mutual agreement of the Contractor. Property issued under this contract will be comprised 

of usable, safe to sell Rolling Stock property assigned demilitarization code A, F, or Q. The product 

pool being offered is defined as:

Ground related, self-propelled wheeled and track mounted vehicles (such as passenger motor 

vehicles, trucks and dozers) and trailers (such as semi-trailers, cargo trailers and special 

purpose trailers).

Issuing locations outside of CONUS may be added to this contract (at mutual agreement of the 

Government and Contractor) after providing the Contractor ample phase-in time to implement 

operations at the new locations. DLA DISPOSITION SERVICES reserves the right to sell property or 

offer property through alternative sales or contract means for all property not considered part of this 

contract. 

(B) Government’s Right to Retrieve Property - The Government reserves the right retrieve

or restrict property from the Contractor that is found to have become controlled or that is needed to 

support the mission of DOD. Contractor must return the controlled items upon notification from the 

Government and return mission essential required property whenever it has not been resold by the 

Contractor. DLA DISPOSITION SERVICES will not reimburse the Contractor for any lost revenue 

associated with property that has been sold to a resale buyer. 

(C) Contractor’s Right to Non-Delivery Order Items - The Government will determine the 

safe to sell items to be sold to the Contractor. The Contractor has the contractual obligated to purchase 

all property issued on a delivery order. Contractor has no right to any property that is not issued to 

them on a delivery order. Subject to certain limited exceptions, the Contractor will have the contractual 

obligation to purchase the flow of property when issued on a delivery order. DLA DISPOSITION 

SERVICES reserves the right to sell property or offer property through alternative sales or contract 

means for all property not issued on a Delivery Order under this IFB. 

Section 2 – Property Referrals

(A) Location - Property that is referred for sale to the Contractor shall be located within the

Continental United States to include Alaska, Hawaii, Guam and Puerto Rico and possibly the Virgin 

Islands. DLA DISPOSITION SERVICES may opt to deliver property to the contractor located outside 

CONUS with contractor’s agreement. The Contractor is required to transport property to the 

Contractor’s facility(ies) within 10 business days of issue. With prior approval of the Government, 

certain exceptions for property movement may be considered by the SCO. The Contractor should not 

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Invitation For Bid Number 14-0092

assume property may be resold on a Government facility when determining a bid for this contract as the 

reselling of property will be on an limited basis. Under no circumstances is culling for the purpose of 

effecting partial or incremental removals authorized. 

(B) Receipt In Place (RIP) – Certain items may be issued to the Contractor from a RIP 

location. DLA DISPOSITION SERVICES shall identify this property to the Contractor at the time it 

appears on the Delivery Order. The Contractor is required to pack, load and transport RIP property to 

the Contractor’s facility(ies) within 10 business days of issue. The Government is not responsible for 

loading the Contractor’s conveyance at a RIP location. Contractor must load property. On a case-bycase basis, the Contractor may be allowed to conduct the resale of property from the DLA 

DISPOSITION SERVICES location if authorized in advance by the Government, however, approval of 

such sales will not be routine in nature and only on a limited basis. 

(C) Initial Delivery Order - DLA DISPOSITION SERVICES shall deliver the initial Delivery 

Order to the Contractor on the dates that are (i) within the time specified for the phase-in period, and (ii) 

the date DLA DISPOSITION SERVICES has received and approved all the information required under 

the provisions of this contract. 

(D) Delivery Order - The Government shall issue a consolidated list(s) of property being 

transferred to the Contractor called a Delivery Order. 

(E) Delivery Order Format - DLA DISPOSITION SERVICES will provide the Delivery 

Order to the Contractor via an electronic transmission. DLA DISPOSITION SERVICES shall provide 

training to the Contractor as necessary to clarify the fields of the Delivery Order, however as minimum, 

the following information will be represented on the Delivery Order:

Physical Location of the Property Shipment

Disposal Turn in Document Number

Requisition Number if RCP Property

National Stock Number (NSN)/Local Stock Number (LSN)

Inventory Item Name

Item Unit of Issue

Quantity

Item Unit Price

Acquisition Value

Contractor's Up Front Purchase Price

DEMIL Code

 (F) Title Transfer of Property - Unless otherwise provided in this IFB, DLA DISPOSITION 

SERVICES shall transfer title to the Contractor when property appears on a Delivery Order. Any 

subsequent resale transactions of property are between the Contractor and the resale buyer, not the 

Government and the resale buyer. 

 (G) Risk of Loss – Contractor is responsible for paying for all items appearing on the Delivery 

Order unless it is approved as a line item discrepancy by the SCO. Contractor shall bear the risk of loss 

for all other property where title has transferred to the Contractor and Contractor has lost or damaged the 

property due to negligence. 

 (H) Line Item Discrepancies – Contractor must notify the Government of any line item 

discrepancies, i.e., quantity overage/shortage, acquisition value, item misdescription, etc. Contractor 

must provide notification to DLA DISPOSITION SERVICES with supporting documentation of such 

line item discrepancy and the property must be made available for inspection by DLA DISPOSITION 

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Invitation For Bid Number 14-0092

SERVICES. Failure to provide notice of an alleged discrepancy in accordance with the criteria set forth 

in this subparagraph may result in denial of the line item discrepancy. The amount of any credit to 

which the Contractor is entitled to shall be deducted from the amount of Contractor’s next Statement of 

Account. Line item discrepancies for property issued at a DLA DISPOSITION SERVICES facility 

must be identified by the Contractor at the time of DLA DISPOSITION SERVICES/Contractor joint 

inventory and prior to Contractor removing property. Acquisition values are assigned by the 

Government and normally not up for dispute.

 (I) Line Item Excessive Acquisition Value - Any line item with a reported acquisition value in 

excess of $10M (ten million dollars) shall be excluded from this contract at the sole option of the 

Contractor. The SCO must be notified within thirty (30) calendar days of title passing to the Contractor 

of the reported item. Any reported items shall be returned to DLA DISPOSITION SERVICES and the 

Contractor’s purchase price shall be refunded by DLA DISPOSITION SERVICES. The Contractor 

shall be responsible for any cost associated with the return of property to DLA DISPOSITION 

SERVICES. 

 (J) Property Surges - Contractor acknowledges that certain installations may close during the 

performance period of this contract. As a result, large generations of property could be turned into DLA 

DISPOSITION SERVICES and could ultimately be referred under this contract. DLA DISPOSITION 

SERVICES and the Contractor agree to cooperate and institute special procedures as necessary in 

connection with property surges. The direct costs of the increased workload upon the Contractor would 

not be at any additional costs to the Government to include Seller Indirect Costs. 

 

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Invitation For Bid Number 14-0092

ARTICLE SEVEN

Demilitarization Codes/Trade Security Control (TSC) Requirements

Section 1 – Demilitarization Codes Many of the items in the product pool are subject to Trade Security 

Controls (TSC) assessment/clearance based on their demilitarization code assignment and their 

offensive/defensive capabilities. Any item not assigned demilitarization code “A” requires a TSC 

assessment for the buyer. The Contractor is required to comply with all current or future TSC 

procedures as mandated during the performance period of this contract. Such new requirements may 

impose higher costs upon the Contractor in order to comply. 

Section 2 – Contractor’s Trade Security Control (TSC) Requirements - Prior to award of this 

contract, the Contractor will be required to obtain a TSC assessment/clearance by providing the Sales 

Contracting Officer a properly completed End-Use Certificate (EUC) in the form of a DLA Form 1822 

(copy available on the DLA DISPOSITION SERVICES web 

site, http://http://www.dispositionservices.dla.mil/sales/typesale.shtml, click on Property for Sale to 

Public and then Sales. The clearance may need to be renewed during the performance period of this 

contract and at the request of the Government. The clearance investigation determines that the entity is 

who it claims to be, doing business at the name and location claimed and that there are no disqualifying 

factors present (i.e., convictions for illegal export of military technology, debarment by a Government 

activity, etc.). 

(A) Resale Buyer’s Trade Security Control (TSC) Requirements - All secondary purchasers 

of non-demilitarization code A property that is sold to the contractor must also receive a similar 

Assessment/clearance. The Contractor will be required to notify prospective buyers of the necessity to 

comply with TSC requirements and export controls. The Contractor will be required to obtain and keep 

information on file for review by DLA DISPOSITION SERVICES or other Government entities to 

include a properly completed EUC from the prospective resale buyer of each lot (or group of lots at a 

single re-sale event) of non-demilitarization code A property before releasing such items to the resale 

buyer. The Contractor’s export control compliance responsibilities will generally be limited accordingly 

to obtaining a properly completed EUC, releasing property to a buyer only after confirming that the 

buyer is cleared and has acknowledged their responsibilities for follow-up sales (i.e., advising buyers not 

to sell beyond the United States without proper Department of State/Department of Commerce 

documents/notice), and maintaining the associated compliance records.

(B) Contractor’s Responsibilities Prior to Award to Resale Buyer - Upon receipt of a 

properly completed EUC, the Contractor must also obtain Government approval before re-selling any 

TSC required item and releasing property to the buyer. The TSC Assessment Office is the 

assessment/clearance authority and the determining authority relative to the proper completeness of End 

Use Certificates (EUCs). Contractor agrees to comply with any change to current TSC procedures 

should they occur. 

(C) Contractor’s Liaison Responsibilities - Contractor must assume liaison responsibilities 

when processing a Trade Security Control clearance for their resale customers by forming a Liaison 

office in the DLA DISPOSITION SERVICES Building. Responsibilities will include collecting, 

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Invitation For Bid Number 14-0092

reviewing, delivering, End Use Certificates to the Government. Interactions will be required between 

the TSC Assessment/Clearance Office and/or DLA DISPOSITION SERVICES. SCO assistance in 

obtaining the necessary office will be provided, however, the Government assumes no cost for 

establishing the Contractor’s Liaison Office outside of providing an administrative work station and 

telephone lines. A Government furnished computer with internet access will also be provided once the 

Contractor’s employee has been issued a security clearance (Contractor Access Card and background 

investigation). The Government will not provide office supplies or other equipment that the Contractor 

may require to complete this requirement.

(D) System for Awards Management (SAM) - Contractor is prohibited from awarding a 

contract to a customer identified as being suspended or debarred from receiving Government contracts. 

Prior to awarding any contract, Contractor agrees to search the System for Awards Management (SAM) 

at the following link: https://www.sam.gov/portal/public/SAM

Section 3 – United States Munitions List Items and Commerce Control List Items -

(A) Acknowledgment of Export Restrictions - Contractor acknowledges that some items in 

the product pool are subject to export restrictions and Trade Security Controls (TSC) 

Assessments/Clearances. 

(B) Seagoing Containers – Contractor acknowledges that whenever a seagoing container is 

used by a resale buyer to remove property, Contractor shall report the container number and, if known, 

the destination port to DLA DISPOSITION SERVICES before the container is loaded.

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Invitation For Bid Number 14-0092

ARTICLE EIGHT

Inventory Assurance

Section 1 – Do-Not-Sell (DNS) List - As often as necessary, DLA DISPOSITION SERVICES will 

furnish the Contractor a Do-Not-Sell (DNS) List representing items that are or have become controlled 

and no longer eligible for sale. Contractor is required to process their current inventory against the 

DNS List whenever an updated DNS List is provided by DLA DISPOSITION SERVICES. The 

Contractor is required to return any item identified on the DNS List that is in the Contractor’s current 

inventory and not physically removed by a resale buyer. Contractor must present the costs for such 

return to DLA DISPOSITION SERVICES for approval. DLA DISPOSITION SERVICES shall 

reimburse the Contractor’s purchase price in addition to the cost associated with the return of the 

property to DLA DISPOSITION SERVICES. DLA DISPOSITION SERVICES will not reimburse the 

Contractor for any lost revenue associated with property that has been sold to a resale buyer. For 

property becoming controlled yet previously removed by a resale buyer, DLA DISPOSITION 

SERVICES may also direct the Contractor to notify the buyer and attempt to recover the property. 

 

Section 2 – Demilitarization Code Change (DCC) List – DLA DISPOSITION SERVICES will 

provide the Contractor a Demilitarization Code Change (DCC) List reflecting demilitarization code 

changes as they occur. The Contractor must run their current inventory against the DCC List whenever 

provided by DLA DISPOSITION SERVICES. The Contractor is required to return any item that 

becomes DEMIL required and still in the Contractor’s current inventory, not physically removed by a 

resale buyer. DLA DISPOSITION SERVICES shall reimburse the Contractor’s purchase price in 

addition to the cost associated with the return of the property to DLA DISPOSITION SERVICES. DLA 

DISPOSITION SERVICES will not reimburse the Contractor for any lost revenue associated with 

property that has been sold to a resale buyer. For property becoming DEMIL required and previously 

removed by a resale buyer, DLA DISPOSITION SERVICES may direct the Contractor to notify their 

buyer and attempt to recover the property.

Section 3 – Property Assurance Contractor De-Incentives – De-Incentives will apply to the 

Contractor with regard to conducting a resale of items that DLA DISPOSITION SERVICES has 

identified it as controlled and identified on the DNS or DCC List. De-Incentives will apply in that DLA 

DISPOSITION SERVICES will charge the Contractor 50% of the acquisition value of any item being 

offered for sale that DLA DISPOSITION SERVICES identifies as not eligible for sale based on the item 

commodity or demilitarization code. 

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Invitation For Bid Number 14-0092

ARTICLE NINE

Government Required Reports

Section 1 – Inventory Reports – Contractor is required to provide DLA DISPOSITION SERVICES

monthly reports reflecting a complete list of all items issued by DLA DISPOSITION SERVICES on a 

Delivery Order that are currently in the possession of the Contractor. The report must record items by 

DTID, location and must identify all property that has not been removed from the Contractor 

/Government facilities and identify the current facility location of the item. Any change in facility 

location must be reported on this property. The report must be in a spreadsheet format and include all 

fields provided on a Delivery Order. The specific reporting requirements will be further coordinated 

between the Sales Contracting Officer (SCO) and the Contractor during the contract phase-in period.

Section 2 – Receipt of Property at the Contractor’s Facility – Contractor is required to provide DLA 

DISPOSITION SERVICES a weekly listing of property that was physically removed to a Contractor’s 

location. The Contractor must report the location of the property. The report must be in a spreadsheet 

format and include all fields provided on a Delivery Order. The specific reporting requirements will 

be further coordinated between the Sales Contracting Officer (SCO) and the Contractor during the 

contract phase-in period.

Section 3 – Resale and Returns Report – Contractor is required to provide a monthly report to DLA 

DISPOSITION SERVICES that reflects property that has either been resold/removed or that has been 

returned to the Government without resale. The report must be in a spreadsheet format and include all 

fields provided on a Delivery Order. For items resold, the event and lot number constituting the resale 

must be included as well as resale customer information, bid price received and date of sale. The 

specific reporting requirements will be further coordinated between the Sales Contracting Officer (SCO) 

and the Contractor during the contract phase-in period.

Section 4 – Seller Indirect Cost (SIC) Report - In the event SIC is approved by the SCO, Contractor 

must provide a monthly report detailing the costs actually incurred. The report must be in a spreadsheet 

format and must include supporting documentation of the SIC. At no time does SIC include lost profits.

The specific reporting requirements will be further coordinated between the Sales Contracting Officer 

(SCO) and the Contractor during the contract phase-in period. 

Section 5 – Non Responsive Resale Buyer Report – On a monthly basis, the Contractor is required to 

provide DLA DISPOSITION SERVICES a spreadsheet listing resale buyers who failed to either 

respond or return property when requested by the Contractor. The spreadsheet must identify the resale 

Event and Lot number applicable and includes all fields provided on the Delivery Order. In addition, 

the spreadsheet must provide the dates of Contractor’s attempts to retrieve the property and the 

customer’s responses/non-responses. The specific reporting requirements will be further coordinated 

between the Sales Contracting Officer (SCO) and the Contractor during the contract phase-in period.

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Invitation For Bid Number 14-0092

Section 6 – Federal Asset Sales (FAS) Requirements – Contractor is required to transmit all active 

sales information for each property to the eFAS/GovSales.gov portal.

On a quarterly basis, the Contractor is required to provide the following post sales data to the Sales 

Contracting Officer:

• Total Number of Assets Sold – Assets sold equals number of individual assets sold not number 

of lots sold

• Total Number of Assets Posted on GovSales.gov Portal

• Gross Revenue Received – Revenue equals sales proceeds

• Percentage of Personal Property Assets Sold Equal to Greater than Market Value - This metric 

only applies to FSG 14 (Aircraft); FSG 19 (Boats); FSG 23 (Motor Vehicles including cars, 

trucks, buses, and motorcycles; and FSG 2420 (Wheeled Tractors)

• Cycle Time – Time that an asset leaves the RTD process through payment

• Total Net Sales Revenue – Proceeds minus costs

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Invitation For Bid Number 14-0092

ARTICLE TEN

Property Removal and Government owned Material Handling Equipment (MHE)

Section 1 – Property Removal on Government Facilities –The Contractor will remove the property 

from the Government’s storage facility within 10 business days of receipt of a Delivery Order. The 

Contractor is required to transport property listed on a Delivery Order to the Contractor’s facility(ies). 

The Government will load Contractor’s conveyance. If the Government is unable to load property to 

the Contractor’s conveyance, the Government will allow sales in place. All sales must ensure the 

property is removed from the Government’s facility within 75 business days of appearing on the 

delivery order. The Government will not load the Contractor’s customers. If the resale is permitted 

on Government property, the Contractor is responsible for any damage that is caused to any Government 

equipment or facility that arises out of the negligence of the Contractor, its vendors or resale buyers, to 

include the clean-up of any hazardous materials spills. The Contractor should not assume property may 

be resold on a Government facility when determining a bid for this contract as the reselling of property 

will be on an limited basis. The Government may assist the Contractor with the load in certain 

circumstances.

Section 2 – Storage Charges – The Government reserves the right to implement storage charges for all 

property not removed timely. A $50.00 per DTID, per day charge may be applied by the Government 

for any item not removed from Government premises within 10 business days. For items permitted for 

sale on a Government facility, storage charges in the amount of $50.00 per day, per DTID, will apply for 

items not removed within 75 business days of appearing on a Delivery Order. Under no circumstance 

will former surplus Government property sold to the Contractor remain on Government premises 

beyond 121 business days after issuance of a Delivery Order. Property left on Government premises 

longer than 121 business days will, at the Government’s sole discretion, revert to Government 

ownership and control without refund of any Contractor monies received. DLA DISPOSITION 

SERVICES will include such charges on the monthly Statement of Account and the cost for the storage 

will be the total responsibility of the Contractor. Contractor is responsible for ensuring their resale 

customers have met the security requirements to enter the facility and are responsible for escorting their 

customers at all times. Contractor and Contractor’s resale customers shall have access to property for 

inspection, reselling, packing, loading or shipping only during hours that such facility is normally 

staffed. Contractor shall coordinate such access with the management of each facility. In addition, 

DOD customers may require additional storage space, therefore, property issued to Contractor may be 

required to be relocated by the Contractor and at the Contractor’s expense. The Contractor is not 

permitted to conduct property resale on a Government facility without the expressed authorization of 

DLA DISPOSITION SERVICES. 

Section 3 – Receipt In Place (RIP) Property Storage on Government Facilities – Receipt In Place 

(RIP) locations will be identified to the Contractor by the Government, generally consisting of property 

issued from a site outside the DLA DISPOSITION SERVICES footprint. The Government is not 

responsible for loading the Contractor’s conveyance at a RIP location. Contractor must load property. 

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Invitation For Bid Number 14-0092

When permitted by DLA DISPOSITION SERVICES, the Contractor may be allowed to resell property 

from the RIP location. If property resale is permitted, the Contractor is responsible for any damage 

caused to any Government equipment or facility that arises out of the negligence of the Contractor, its 

vendors or resale buyers, to include the clean-up of any hazardous materials spills. The Contractor 

should not assume property may be resold on a Government facility when determining a bid for this 

contract as the reselling of property will be on an extremely limited basis.

Section 4 – DLA DISPOSITION SERVICES Infrastructure - Contractor acknowledges that DLA 

DISPOSITION SERVICES may reduce/change its infrastructure, including without limitation by 

closure of field locations. The Contractor further acknowledges that this contract shall remain in force 

notwithstanding such infrastructure reduction/change measures that DLA DISPOSITION SERVICES in 

its sole discretion may implement.

Section 5 – Government Owned Material Handling Equipment (MHE) - Government owned 

Material Handling Equipment (MHE) will not be made available to the Contractor. The Contractor 

must provide ample MHE in order to perform the requirements of this contract at RIP locations. On a 

case by case basis, the Government may offer assistance in loading contractor property, to include 

providing specialized Government Owned MHE if available. 

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Invitation For Bid Number 14-0092

ARTICLE ELEVEN

Property Returns

Section 1 – Property Accountability of Items Issued to Contractor - Regardless of the ultimate 

disposal of items issued to the Contractor on a Delivery Order, DLA DISPOSITION SERVICES must 

maintain cradle-to-grave accountability of all property. Throughout the contract performance and winddown period, at a minimum, the Contractor must identify all property regardless of the disposition 

method, by DTID number and make the information available to DLA DISPOSITION SERVICES. 

Section 2 – Line Item Discrepancies – DLA DISPOSITION SERVICES will issue property to the 

Contractor on a Delivery Order. Line item discrepancies must be identified to DLA DISPOSITION 

SERVICES at the time of the DLA DISPOSITION SERVICES/Contractor joint inventory. The 

Contractor will return the discrepant items to DLA DISPOSITION SERVICES at the time they are 

identified and the applicable Delivery Order will be annotated of the discrepancy and sign the annotated 

delivery order. Financial adjustments will be reflected on the monthly Statement of Account. 

Section 3 – Property Retrieval of Controlled Items –

(A) Property Located at Contractor’s Facilities - Property issued to the Contractor may later 

become controlled and not eligible for sale. DLA DISPOSITION SERVICES will provide notification 

to the Contractor identifying such property. The Contractor must return the identified items to the 

Government within three (3) business days from the notification. DLA DISPOSITION SERVICES will 

advise the method for return based on the applicable item and will reimburse the Contractor costs 

associated with the return of property to DLA DISPOSITION SERVICES.

(B) Property Resold - Not Removed from Contractor’s Facilities – Contractor may have 

resold items that later become controlled and not eligible for sale. If the identified controlled item has 

not been removed from the Contractor’s facilities, Contractor agrees to not allow removal and will 

return the identified item to the Government within three (3) business days of the notification. DLA 

DISPOSITION SERVICES will advise the method for return based on the applicable item and will 

reimburse the Contractor costs associated with the return of the property. DLA DISPOSITION 

SERVICES will not reimburse the Contractor for any lost revenue associated with the return of property 

that has been resold. 

(C) Property Resold - Removed from Contractor’s Facilities – Contractor may have resold 

items that the resale buyer has physically removed from the Contractor’s facilities that later becomes 

controlled. Within three (3) business days of the DLA DISPOSITION SERVICES notification, 

Contractor is required to notify their customer and request the item’s return if the resale of such property 

has occurred within the last year. The Contractor must initially contact their customer by either e-mail 

or registered letter. If the resale buyer is non-responsive to the initial request or fails to return the 

property, Contractor is responsible for contacting the resale buyer again within 21 business days of the 

initial contact via a registered letter. 

(D) Status Report of Non-Responsive Resale Buyers - On a monthly basis, Contractor is 

responsible for notifying DLA DISPOSITION SERVICES of the results of the property retrieval 

actions. The report must identify the resale buyers who are non-responsive to either the retrieval 

attempts or those that fail to return the property. Reports must be submitted to the SCO by the 15th of 

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Invitation For Bid Number 14-0092

each month and must reflect the status of the previous month’s actions. Contractor must identify the 

controlled item by DTID, NSN/LSN, and provide the resale customer’s name, address, and phone 

number.

(E) Sales Participation of Non-Responsive Resale Buyers - Based on the national security 

threat of the property being requested to be returned, DLA DISPOSITION SERVICES reserves the right 

to request that the Contractor no longer conduct a resale to non-responsive customers. DLA 

DISPOSITION SERVICES will notify the Contractor of individuals/companies falling into this category 

on a case by case basis.

Section 4 – Reutilization/Transfer/Donation (RTD) Property Returns - There will be occasions 

when the Government will request the return of property issued to the Contractor because it is needed in 

support of the DLA DISPOSITION SERVICES Reutilization/Transfer/Donation (RTD) mission. DLA 

DISPOSITION SERVICES Reutilization customers will be required to certify that the property being 

requested is “mission essential” and DLA DISPOSITION SERVICES will have checked current onhand inventory to determine there is no other like items on-hand that can meet the customer’s 

requirement. Property will only be requested back from the Contractor to meet a Transfer or Donation

customer’s requests when either an error was made on the part of DLA DISPOSITION SERVICES or 

the DLA DISPOSITION SERVICES Property Accounting system causing the item to not receive full 

screening or that the customer’s approved requisition was not processed appropriately by DLA 

DISPOSITION SERVICES. The Contractor must return those items that have not been resold. Resold 

would indicate the Contractor has resold the item to a customer, regardless of whether the item has been

physically removed by the re-sale customer. DLA DISPOSITION SERVICES will issue the 

Contractor’s purchaser price and shall reimburse the Contractor for associated costs of the returned 

property. 

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Invitation For Bid Number 14-0092

ARTICLE TWELVE

Contract Operational Requirements

Section 1 – Contractor Participation in Federal Asset Sales - Contractor is required to participate in 

the Government’s Federal Asset Sales Program whereby the Contractor agrees to link all sales being 

conducted to the website, GovSales.gov, a Real and Personal Property Portal that facilitates the sale for 

all Government Agencies. 

Section 2 – Contractor Awareness of the DLA DISPOSITION SERVICES Environmental 

Management System (EMS) - DLA DISPOSITION SERVICES implemented Environmental 

Management System (EMS) in accordance with ISO 14001:2004(E). An EMS is an overall 

management system that includes organizational structure, planning activities, responsibilities, practices, 

procedures, processes and resources for developing, implementing, achieving, reviewing and 

maintaining the environmental policy of an organization. The DLA DISPOSITION SERVICES EMS 

is designed to ensure all personnel, including Contractors whose work activities are being conducted on 

Government premises and could cause real or potential environmental impacts, are aware of how their 

work supports the EMS. 

Section 3 – Inventory Assurance by Contractor –

(A) Do-Not-Sell List/DEMIL Code Change List – Initially and then periodically thereafter, 

DLA DISPOSITION SERVICES will furnish the Contractor a Do-Not-Sell (DNS) List and a DEMIL 

Code Change (DCC) List representing items that are or have become controlled and no longer eligible 

for sale or that have experienced a DEMIL code change. The Contractor is required to process their 

current inventory against the DNS/DCC List whenever an updated List is provided by DLA 

DISPOSITION SERVICES. The Contractor is required to return any items identified on the DNS List 

or any item that has become DEMIL required on the DCC List that are in the Contractor’s current 

inventory and have not been removed by a resale buyer. 

(B) DLA DISPOSITION SERVICES Verification of Assurance Process - The DLA 

DISPOSITION SERVICES Controlled Property Verification Office (CPVO) will review items that the 

Contractor is offering for sale to ensure items appearing on the DNS List or DCC List are not being sold. 

De-Incentives will apply in that DLA DISPOSITION SERVICES will charge the Contractor 50% of the 

acquisition value of any item DLA DISPOSITION SERVICES has identified to the Contractor as not 

eligible for sale based on the item commodity or demilitarization code, yet DLA DISPOSITION 

SERVICES finds it for sale on the Contractor’s website. 

Section 4 – Contractor Web Based Application – Contractor must develop a web-based application 

for use on this contract with regard to reviewing property for accurate coding and sales eligibility. The 

Government and Contractor shall refer to this application as the Quarantine Tool (Q-Tool). Ultimately, 

the Q-tool will serve as a 5-day Government preview area of all items the Contractor is preparing to 

offer for sale. During the 5-day preview, the Contractor is not allowed to make property visible to the 

general public. The Government must notify the Contractor of any item not eligible for sale within the 

5-day preview time. All property approved as a result of the Q-Tool application must be offered for 

sale on the Contractor’s web site with a system generated icon/marker identifying the item as having 

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Invitation For Bid Number 14-0092

been reviewed by the Government prior to posting for sale. If the Contractor reassigns a previously 

approved item to another sales event, the item must be returned to the Q-Tool with the system generated

icon/marker. The Q-Tool application must have the ability to export the data into a spreadsheet format 

and must include the following fields: 

Sale Event ID Number/Lot Number

Site Location of the Property 

Federal Supply Class (FSC)

National Item Identification Number (NIIN) or Local Stock Number (LSN)

Item Name/Description

Part Number

Demilitarization Code

Manufacturer and associated CAGE Code

Quarantine Date

Quantity

Acquisition Value

DTID

End Use of Item (if available)

Photograph of Item (if available)

 

Section 5 - DLA DISPOSITION SERVICES Inspection of Property – Contractor is required to allow 

DLA DISPOSITION SERVICES or a DLA DISPOSITION SERVICES sponsored agency to perform 

physical spot checks of property when requested. 

Section 6– Duties of Care and Loyalty –

(A) Duty of Care – Contractor shall not cause or permit any action or omission in the course of 

performing the contract that damages DLA DISPOSITION SERVICES and constitutes gross 

negligence, recklessness, or intentional harm. Performance under this contract must be in compliance 

with all local, state and federal laws and regulations. Accordingly, it is the responsibility of the 

Contractor to ensure all such laws and regulations are adhered.

(B) Duty of Loyalty – Contractor shall carry out the responsibilities under the contract with 

honesty, good faith and fairness towards DLA DISPOSITION SERVICES. The Contractor shall not 

enter into any resale transaction other than on an arms-length basis or with pricing or other terms less 

favorable to the Contractor than otherwise reasonably obtainable. The Government anticipates the 

Contractor shall auction all items purchased from the Government; regardless of type of resale 

transaction. Contractor shall resell the property in an arms-length transaction that is intended to provide 

the best possible resale value. Any revenue received from such transaction, at time of transaction or 

deferred, shall be considered revenue for purposes of the percentage bid by the Contractor under this 

contract. 

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Invitation For Bid Number 14-0092

ARTICLE THIRTEEN

Material Breach

Section 1 – Notice of Material Breach - In the event of a material breach or default of the respective 

duties in the performance of this contract, the Contractor or DLA DISPOSITION SERVICES, the party 

asserting such material breach, shall serve notice upon the party that committed or is alleged in the 

notice to have committed such material breach.

Section 2 – Response to Notice - Except as otherwise provided, the breaching party may cure the 

material breach within thirty (30) calendar days of such notice referred to as the cure period or within 

such longer cure period as the notice may provide unless, within the cure period, the non-breaching 

party withdraws the notice in writing or extends the cure period in writing. 

Section 3 – Termination - Termination shall be effective upon notice by the non-breaching party to the 

breaching party served upon or after the date of such decision. Unless otherwise provided, Contractor 

and DLA DISPOSITION SERVICES shall continue to perform their respective duties under the contract 

during the cure period.

Section 4 – Intentional Breach - An asserted material breach comprised of an intentional breach of the 

duty of loyalty or the duty of care may not be cured unless DLA DISPOSITION SERVICES, in its sole 

discretion, specifies a cure period in the notice. Termination shall be effective upon the later of the date 

of service of such notice or the expiration of the cure period. 

Section 5 – DLA DISPOSITION SERVICES Remedies for Material Breach by Contractor - If the 

breaching party is the Contractor, DLA DISPOSITION SERVICES may take any one, any combination 

or all of the following actions to satisfy its claims for any non-payments or other damages:

(i) Apply the payment deposit;

(ii) Present a claim for indemnity against Contractor;

(iii) Present a claim upon the Fidelity Bond or any other applicable insurance or surety policy;

(iv) Seek appointment of a receiver or trustee for Contractor;

(v) Seek monetary damages, restitution or any other legal or equitable remedy to which it is entitled;

(vi) Assert any other right, claim, or remedy available pursuant to the contract disputes act.

Section 6 – Indemnification of DLA DISPOSITION SERVICES by Contractor - Contractor will 

comply fully with the provisions of this contract. If the breaching party is the Contractor, the Contractor 

shall indemnify and hold DLA DISPOSITION SERVICES harmless for all damages arising.

Section 7 – Indemnification of Contractor by DLA DISPOSITION SERVICES - If the breaching 

party is DLA DISPOSITION SERVICES, then DLA DISPOSITION SERVICES shall indemnify and 

hold Contractor harmless for its damages.

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Invitation For Bid Number 14-0092

ARTICLE FOURTEEN

Contract Seller Indirect Costs (SIC)

Section 1 – Documentation and Payment of Seller Indirect Costs – 

(A) Seller Indirect Costs (SIC) – Pursuant to a DLA DISPOSITION SERVICES mission 

changes, certain Contractor costs directly related to the mission of DLA DISPOSITION SERVICES

may be deemed Seller Indirect Costs (SIC), thus, the costs to perform such duty can be deducted entirely 

from distributions otherwise payable to DLA DISPOSITION SERVICES. This mechanism largely 

leaves the risks associated with these issues with DLA DISPOSITION SERVICES and accordingly 

should considerably lessen these concerns for the Contractor. All costs permitted as SIC, must be 

allocable, allowable, reasonable, and pre-approved by DLA DISPOSITION SERVICES on a case-bycase basis prior to being executed by the Contractor. DLA DISPOSITION SERVICES approval of 

SIC must be in writing and not assumed to be approved. SIC are never authorized for reimbursement of 

loss profits. Property surges that may result are not eligible for SIC. Unless otherwise stated, 

transportation costs and Contractor’s Direct Costs are not considered for SIC.

(B) Supporting Documentation - Each disbursement for a SIC shall be supported with bona 

fide documentation (including records in an electronic medium) that adequately demonstrate that each 

such disbursement is in the proper amount for goods or services actually provided in advance of such 

disbursement. 

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Invitation For Bid Number 14-0092

ARTICLE FIFTEEN

Contract Compliance, Audits, Investigations and Reviews

Section 1 – Compliance with Applicable Laws and Regulations – Contractor and its resale buyers 

shall comply with the requirements of all applicable federal, state, and local laws, regulations, 

ordinances, directives and instructions connected with the performance of this contract, including 

without limitation such requirements pertaining to income and payroll taxes, environmental matters and 

occupational safety.

Section 2 – Licenses and Permits – Contractor shall obtain any necessary licenses and permits, and 

comply with all federal, state, and local laws and regulations in connection with the prosecution of the 

work. This responsibility requirement will be a matter of inquiry during the SCO’s pre-award 

evaluation of the bidder’s capability to perform the contract satisfactorily. It will also be a continuing 

matter of inquiry by the SCO during the performance of the contract.

Section 3 – Duties of Care and Loyalty – The Contractor shall not cause or permit any action or 

omission in the course of performing the contract that constitutes gross negligence, recklessness or 

intentional harm. Contractor shall carry out their responsibilities under the contract with honesty, good 

faith and fairness toward DLA DISPOSITION SERVICES.

Section 4 – Prohibited Activities – Contractor shall not undertake the following activities without 

written permission from the SCO, which permission may be granted or withheld by DLA 

DISPOSITION SERVICES in the exercise of its sole discretion:

(A) Enter into a partnership, joint venture or other arrangement where the purpose or effect is to

engage indirectly in a transaction that would be prohibited by the provisions of this contract if 

undertaken by the Contractor directly; or

(B) Enter into contracts or other arrangements that would assign all or substantially all 

responsibility for and control of performance of the contract to another party or parties, without the prior 

written approval of DLA DISPOSITION SERVICES which will consider such request in accordance 

with the Assignment of Claims Act of 1940, as amended, 41 U.S.C. sec. 15, and the Government's best 

interest. In the event of any improper assignment without the written approval of DLA DISPOSITION 

SERVICES, this contract shall be terminated at the option of the Government in the exercise of its sole 

discretion; or

(C) File a voluntary petition seeking liquidation, reorganization, arrangement or readjustment, in 

any form, of its debts under Title 11 of the United States Code (or corresponding provisions of future 

law) or any other federal or state insolvency law; file an answer consenting to or acquiescing in any such 

petition; make any assignment for the benefit of Contractor’s creditors; or admit in writing Contractor’s 

inability to pay its debts as they mature, without the prior written consent of DLA DISPOSITION 

SERVICES.

Section 5 – Contractor Cooperation in DOD Investigations/Audits – Contractor agrees to fully 

cooperate with the Government when informed by DLA DISPOSITION SERVICES of an ongoing 

investigation by any DOD or Federal Government investigation service or agency or during DLA 

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Invitation For Bid Number 14-0092

Compliance Reviews, Investigations or Audits. Contractor agrees to provide DLA with all requested 

information regarding property or information relating to the Contractor’s resale buyer. Contractor must 

make all sales records pertaining to such investigations available to DLA at the earliest available 

opportunity but no later than three (3) business days of the request. Requests for information should be 

provided in electronic format when possible. Contractor personnel with knowledge of the particular 

subject matter must be available to cooperate with any Government investigation.

Section 6 – Contractor’s Responsibility for Independent Audit at Government’s Request - DLA 

DISPOSITION SERVICES may request the Contractor seek a review and analysis to be conducted by 

an independent audit firm agreed upon by the Government. The audit may be requested in regard to 

every aspect of contract performance or could be limited to a specific concern. The cost of such audit 

will be handled as a Seller Indirect Cost and must be approved by DLA Disposition Services prior to the 

onset of the audit.

Section 7 – Contractor Record Retention - Contractor shall make all books, records, documents and 

other supporting evidence available to satisfy contract administration and audit requirements by any 

Government agency identified by the SCO. Records must be made available for six (6) years after the 

wind-down period is concluded, or for such period of time as Contractor, for its own purposes, retains its 

books, records, documents, and other supporting evidence, whichever is longer. 

Section 8 – Records Maintenance – Contractor shall maintain all records accurately and in a manner 

that will allow clear and accurate auditing. Records pertaining to inventory shall contain, at a minimum, 

the National Stock Number or Local Stock Number, Disposal Turn-In Document (DTID) number, 

quantity, date sold, sale price, date Contractor received payment from the resale buyer, name and 

address of the resale buyer, and storage location prior to resale. The Government reserves the right to 

request and inspect these documents as it deems necessary. In the event that Contractor fails to maintain 

or provide any of these documents to the Government, the Government may in its sole discretion seek 

and cause termination.

Section 9 – Inspection of Records and Workplace by Government - The Government has the right to 

audit the records and inventory in order to review Contractor’s operations. The audit may consist of a 

complete or random sample examination. Contractor must ensure that, prior to any re-sale, the property 

is readily identifiable as formerly Government property. 

Section 10 – Purpose and Content of Compliance Audits, Investigations, Reviews and Further 

Reviews - DLA shall have the right to conduct Compliance Reviews and/or Investigations of 

Contractor. DLA may actually conduct the compliance reviews and/or Investigations, or use other 

Government agencies or private firms, as the SCO deems appropriate. DLA shall also have the right to 

conduct Further Reviews as provided herein. The purpose of such Compliance Reviews, Investigations,

or Further Reviews is to determine, after the fact, the extent of Contractor’s compliance with the terms 

and provisions of the contract and applicable laws and regulations. 

Section 11 – Methods and Procedures for Compliance Reviews and Investigations

(A) Method - Compliance Reviews, Investigations, and Further Reviews may include, without 

limitation, examination of records, and, if necessary, personal interviews of persons who may have 

knowledge of facts regarding Contractor’s compliance with the provisions of this contract, including 

employees or of any supplier or resale buyer.

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Invitation For Bid Number 14-0092

(B) Procedures - A Compliance Review/Investigation shall be conducted at any time during 

normal business hours and on any business day. Contractor shall permit inspection of any physical 

location used by the Contractor, including, without limitation, the inventory (including the records 

relating thereto), examination of the records, making copies and abstracts, and discussions of the affairs, 

finances and accounts of Contractor with any employee, subcontracting attorney or certified public 

accountant of Contractor. Contractor will produce any records identified by DLA as necessary to 

support the review process and DLA may maintain copies of all documentation/electronic files that 

support the review being conducted. DLA shall use its best efforts to assure that Compliance 

Reviews/Investigations are conducted in a manner that does not unduly burden or unreasonably impinge 

upon the efficient operation of the affairs of Contractor.

(C) Scope - The scope of Compliance Reviews/Investigations shall be as necessary to confirm 

Contractor's compliance with the provisions of the contract.

Section 12 – Further Reviews - If a Compliance Review determines there is a reasonable basis to 

believe that a default or breach of this contract has occurred, DLA, upon written notice to Contractor, 

may conduct any such further investigation that it deems appropriate under the circumstances, using 

such outside consultants, including attorneys, as it deems necessary or advisable. Contractor shall 

permit such persons, as are designated by DLA, to visit and inspect any physical location used by the 

Contractor, including, without limitation, the inventory (including the records), and to examine the 

records, make copies and abstracts, and discussion of the affairs, finances and accounts of Contractor 

with any employee, subcontracting attorney or certified public accountant of the Contractor. 

Notwithstanding the foregoing, if Contractor gives notice to DLA stating that a Further Review is not 

justified, DLA shall delay the commencement of any such Further Review for a period of fourteen (14) 

calendar days after the delivery of its notice thereof to permit Contractor to seek a determination of the 

appropriateness of the Further Review.

Section 13 – Compliance Notification - After completing the Compliance Review, Investigation,

and/or Further Review, DLA DISPOSITION SERVICES shall notify Contractor in writing of any 

breach or default identified during the Compliance Review and/or Further Review.

Section 14 – Costs of Oversight - DLA DISPOSITION SERVICES shall pay all fees, costs and 

expenses DLA DISPOSITION SERVICES incurred in connection with its Compliance Reviews, 

Investigations, and Further Reviews.

Section 15 – Notice of Audit Adjustment - If any party determines that the records reflect any 

inaccuracies requiring entry of an adjustment, including, without limitation, the disbursement of any 

amount from the operating account or a transfer account that is inconsistent with any provision of the 

contract or the disposition of an item of property that is inconsistent with any provision of the contract, 

such party shall give written notice thereof to the other party or parties.

Section 16 – Procedures for Adjudication of Audit Adjustments - If either Contractor or DLA 

DISPOSITION SERVICES disputes an asserted audit adjustment, it may submit such dispute for 

resolution. Upon resolution of such dispute or, if no party submits a dispute for resolution within sixty 

(60) calendar days of the notice of audit adjustment, the audit adjustment shall be deemed confirmed as 

asserted.

Section 17 – Remedies for Audit Adjustments - Upon confirmation of an audit adjustment, Contractor 

will pay to the party in question, or the party will pay to Contractor, as the case may be, the amount 

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Invitation For Bid Number 14-0092

required to restore the parties to their respective positions status quo ante, and Contractor will correct the 

records in accordance with the audit adjustment as confirmed. If, as a result of the audit adjustment, 

Contractor is to pay DLA DISPOSITION SERVICES, each such payment shall include interest 

calculated by the US Treasury or at the rate provided by applicable law.

ARTICLE SIXTEEN

Disputes

Section 1 – Disputes – Any contract awarded as a result of this sale is subject to the Contract Disputes 

Act of 1978 (41 U.S.C. 601-613). 

Section 2 – Claims – The term, “Claim” as used in this Article is defined as a written demand or a 

written assertion by one of the contracting parties seeking the payment of money, adjustment, or 

interpretation of the contract terms, or other relief arising under or relating to this contract. A claim by 

the Contractor shall be made in writing and, unless otherwise stated in this contract, submitted within 6 

years after accrual of the claim to the SCO for a written decision. A claim by the Government against 

the Contractor shall be subject to a written decision by the SCO. A voucher, invoice, or request for 

payment that is not in dispute when submitted is not a claim for the purposes of the Contract Disputes 

Act. However, where such submission is subsequently not acted upon in a reasonable time, or disputed 

either as to liability or amount, may be converted to a claim pursuant to the Contract Disputes Act.

Section 3 – Decisions - For Contractor claims, the SCO must render a decision within 60 calendar days 

of the request or must notify the Contractor of the date by which the decision will be made. The SCO’s 

decision shall be final unless the Contractor appeals or files a suit as provided in the Act. The 

Contractor shall proceed diligently with performance of this contract, pending final resolution of any 

request for relief, claim, appeal, or action arising under the contract, and comply with any decision of 

the SCO.

Section 4 – Alternative Dispute Resolution (ADR) – The parties agree to use their best efforts to 

resolve any disputes that may arise without litigation. If unassisted negotiations are unsuccessful, the 

parties will use Alternative Dispute Resolution (ADR) techniques in an attempt to resolve the dispute. If 

the ADR is not successful, the parties retain their existing rights. If the Contractor refuses an offer for 

ADR, the Contractor shall inform the SCO in writing, of the Contractor’s specific reasons for rejecting 

the offer. Litigation will only be considered as a last resort when ADR is unsuccessful or has been 

documented by the party rejecting ADR to be inappropriate for resolving the dispute. 

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Invitation For Bid Number 14-0092

ARTICLE SEVENTEEN

Insurance and Bond Requirements

Section 1 – Insurance and Bond Contract Requirements – Contractor shall obtain and maintain the 

following insurance and bond requirements throughout the performance and wind-down period:

Section 2 – Modification of Special Circumstance Conditions

(A) Sale by Reference (SBR) Part 5 - Additional Special Circumstance Conditions –

Miscellaneous (DLA DISPOSITION SERVICES Form 86, Oct 93), Article D, Liability and Insurance, 

paragraphs (a)(2) and (a)(3,) is modified as follows:

(1) Bodily Injury Insurance in an amount of not less than two hundred fifty thousand 

dollars ($250,000.00) any one individual and one million dollars ($1,000,000) any one accident 

or occurrence.

(2) Property Damage Liability Insurance in the amount of two hundred fifty thousand 

dollars ($250,000.00) (which shall include any and all property whether or not in the care, 

custody or control of Contractor). The annual coverage shall be not less than one million dollars 

($1,000,000).

Section 3 – Further Modifications –

(A) Sale by Reference Part 5, Article D, paragraph (a) is also amended as follows:

(1) All risk coverage for fire and other property perils for all property owned by 

Contractor with aggregate coverage of five million dollars ($5,000,000.00).

(2) Umbrella liability coverage up to two million dollars ($2,000,000.00).

(3) Fidelity or blanket bond coverage in the amount of at least five million dollars 

($5,000,000.00). Contractor shall obtain and maintain such coverage with a responsible surety 

company with respect to all of Contractor's employees, officers and directors to protect 

Contractor against losses, including, without limitation, those arising from theft, embezzlement, 

fraud, or misplacement of funds, money, or documents. The issuer, policy terms and forms and 

amounts of coverage, including applicable deductibles, shall be satisfactory to DLA 

DISPOSITION SERVICES, and the policy shall include a provision that the issuer shall notify 

DLA DISPOSITION SERVICES in writing within five (5) business days of the cancellation or 

termination of any such coverage or of any modification of such coverage. Contractor shall 

notify DLA DISPOSITION SERVICES in writing within five (5) business days after filing a 

claim under such coverage.

(4) Comprehensive general liability, automobile liability, umbrella liability, 

Worker’s compensation and other insurance coverage as may be required by law. At its option, 

Contractor may obtain and maintain such additional insurance, including directors and officers coverage 

and errors and omissions coverage, as Contractor deems appropriate.

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Invitation For Bid Number 14-0092

Section 4 – Evidence of Insurance - Within thirty (30) calendar days of SCO notification, and annually 

thereafter, Contractor shall provide DLA DISPOSITION SERVICES copies of policies, certificates of 

insurance or other proof evidencing the coverage required. Contractor must obtain the minimum 

coverage specified unless DLA DISPOSITION SERVICES approves a variance from such minimum 

coverage. In the event that a specified coverage or limit is or in the future becomes commercially 

impractical, such approval shall not be unreasonably withheld.

ARTICLE EIGHTEEN

Miscellaneous Provisions

Section 1 – Binding Effect - Subject to the restrictions on transfers and encumbrances set forth, this 

contract shall insure to the benefit of and be binding upon DLA DISPOSITION SERVICES and the 

Contractor and their respective legal representatives, successors and assigns. Whenever this contract 

refers to any party, such reference shall be deemed to include a reference to the legal representatives, 

successors and assigns of such party.

Section 2 – Notices - All notices, demands, requests, consents, approvals, declarations, reports and 

other communications required with regard to this contract shall be in writing except as otherwise 

provided and addressed to the Sales Contracting Officer (SCO). 

Section 3 – Severability - If any provision of this contract or the application to any person or 

circumstance shall be invalid or unenforceable to any extent, the remainder of this contract and the 

application of such provisions to other persons or circumstances shall not be affected and the intent of 

this contract shall be enforced to the greatest extent permitted by law, DLA DISPOSITION SERVICES

may in the exercise of its sole discretion cause termination by notice served within thirty (30) calendar

days of the date upon which such judgment becomes final, such termination to be effective five (5) 

calendar days after the date of service of such notice.

Section 4 – Headings - The headings appearing in this contract are inserted only as a matter of 

convenience and in no way define, limit, construe or describe the scope or intent of any article or section 

of this contract.

Section 5 – Survival - The rights and obligations of the parties under this contract shall survive for a 

period of six (6) years after the completion of the wind-down period.

Section 6 – Waiver - No consent or waiver, expressed or implied, by any party to or of any breach or 

default by any other party in the performance by such other party of its obligations under this contract 

shall be deemed or construed to be a consent or waiver to or of any other breach or default in the 

performance by such other party of the same or any other obligations of such other party under this 

contract. Failure on the part of any party to complain of any act or failure to act by any of the other 

parties or to declare any of the other parties in default, regardless of how long such failure continues, 

shall not constitute a waiver by such party of its rights hereunder.

Section 7 – Force Majeure - The parties shall be excused for the period of any delay in the 

performance of any obligations under this contract when prevented from performing such obligations by 

cause or causes beyond their reasonable control, including, without limitation, civil commotion, war, 

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Invitation For Bid Number 14-0092

invasion, rebellion, hostilities, military or usurped power, sabotage, pestilence, riots, fire or other 

casualty or acts of God.

Section 8 – Use of DLA DISPOSITION SERVICES Name; Public Communications - Contractor 

shall not use the name of DLA DISPOSITION SERVICES, DLA or DOD or its logos for any marketing 

or other purposes without the express prior written consent of DLA DISPOSITION SERVICES, which 

consent may be withheld for any reason whatsoever and is subject to the sole discretion of DLA 

DISPOSITION SERVICES. Contractor shall not publicly denigrate the surplus property disposition 

program of the Department of Defense or the conduct thereof by DLA DISPOSITION SERVICES.

Section 9 – Tense and Gender - Unless the context clearly indicates otherwise, the singular shall 

include the plural and vice versa. Whenever the masculine, feminine or neuter gender is used 

inappropriately in this contract, this contract shall be read as if the appropriate gender had been used.

Section 10 – Entire Agreement; Modification - This contract, and the materials incorporated herein by 

reference, constitute the entire agreement between the parties regarding the matters contained in this 

contract. If there is any inconsistency between the terms of this contract and those of any Appendix, 

Schedule or Exhibit, the terms of this contract shall govern. There are no promises or other agreements, 

oral or written, express or implied, between the parties other than as set forth in this contract. No change 

or modification of, or waiver or compromise under, this contract shall be valid unless it is in writing and 

signed by a duly authorized representative of the party against which it is to be enforced. Contractor 

understands and agrees to submit a written request for contract modification to the SCO prior to 

effecting any change from that stated in its technical proposal (including any subcontractors identified 

therein), and/or sale of Government property-item bid page, whether occurring before or after the release 

of the property. Contractor further agrees not to effect such changes without first receiving the written 

approval of the SCO.

Section 11 – Computation of Time - In computing any period of time prescribed or allowed by this 

contract, the day of the act, event, or default from which the designated period of time begins to run 

shall not be included. The last day of the period so computed shall be included unless it is not a business 

day, in which event the period runs until the end of the next business day.

Section 12 – Electronic Communication - DLA DISPOSITION SERVICES and Contractor shall 

cooperate to facilitate delivery of Delivery Orders, Statement of Accounts, and other required reports to 

the extent reasonably practical by electronic transmission, such as by electronic mail or file transfer, 

rather than by delivery of a physical removable magnetic or optical storage medium.

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Invitation For Bid Number 14-0092

ADDITIONAL TERMS AND CONDITIONS OF SALE

The General Information and Instructions and Special Conditions of Sale contained in the DLA 

Disposition Services pamphlet entitled, “Sale by Reference - Instructions, Terms and Conditions 

Applicable to Department of Defense Personal Property Offered for Sale by DLA Disposition Services, 

July 2012” (hereinafter, Sale by Reference; a copy of the Sale by Reference is available on the DLA 

DISPOSITION SERVICES web site, http://http://www.dispositionservices.dla.mil/sales/typesale.shtml, 

click on Property for Sale to Public and then Sales), is hereby incorporated by reference and become a 

part of this IFB and any resulting contract:

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Invitation For Bid Number 14-0092

ADDITIONAL CONTRACT ADVISEMENTS

Prospective bidders should note that work performed on Government premises, such as at field 

locations and other delivery points, may be subject to the provisions of Public Law 89-176, September 

10, 1965 (18 U.S.C. 4082(c)(2)) and Executive Order 11755, December 29, 1973 (convict labor), and/or 

the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333) and regulations of the Secretary 

of Labor there under (overtime compensation).

Prospective bidders should note that provisions of the Food, Drug and Cosmetic Act, 21 U.S.C. 

311 et seq. and regulations promulgated there under forbid the sale of adulterated or misbranded medical 

devices.

Prospective bidders should also note that there are certain Public Laws that may impact the flow 

of items:

Resource Conservation and Recovery Act Notice: EPA Hazardous Waste Regulations, 40 CFR Part 

260 et seq. published at 45 Federal Register 33063-33285, May 19, 1980, became effective on 

November 19, 1980. These cradle-to-grave regulations detail the responsibilities of generators, 

transporters, treaters, storers, and disposers of hazardous waste. Civil and criminal penalties are 

available for noncompliance. DLA DISPOSITION SERVICES does not intend to transfer any RCRA 

regulated hazardous waste under this contract as regulated waste is disposed of under DLA 

DISPOSITION SERVICES' hazardous waste contracts. However, DLA DISPOSITION SERVICES

can make no representations as to when and under what circumstances state, federal or local 

environmental regulations may be applicable to Property transferred to and held by the Contractor.

Chemical Agent Resistant Coating (CARC) Paint: Prospective offerors are cautioned that that some 

items are, or likely to contain or be coated with a chemical agent resistant to coatings containing 

trivalent chrome, lead, cobalt-zinc hexamethylene disocyanate and other chemicals which are a hazard 

to human health if not processed properly. The Government brings the following precautions/warnings 

to the attention of prospective offerors who plan to apply the CARC paint or disturb the coating on the 

property in any way:

Airline respirators should be used during application processing (applying/sanding/torch cutting, etc.) 

unless air sampling shows exposure to be below OSHA/host Government standards, then a chemical 

cartridge air-purifying respirator must be used.

CARC paint should be isolated from heat, electrical equipment, sparks and open flame during storage 

or application. Local exhaust ventilation should be used for inside processing. 

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Invitation For Bid Number 14-0092

Exposure to vapor/mist/dust or fumes can cause irritation to respiratory tract (lung, nose, throat), 

edema, dermatitis, dizziness, rash, itching, swelling of extremities, eye irritation or damage to nervous 

system, kidney or liver. Coating may be fatal if swallowed. 

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DEFINITIONS

Actual Cost: An amount determined on the basis of the cost incurred.

Allocable Cost: A cost is allocable to a Government contract if it is incurred specifically for the 

contract, if it benefits both the contract and other work and can be distributed to them in a reasonable 

proportion to the benefits received, or is necessary to the overall operation of the business, although a 

direct relationship to any particular cost objective cannot be shown. A cost is allowable only when the 

cost is reasonable and allocable. The Contractor is responsible for accounting for costs appropriately 

and for maintaining records, including supporting documentation, adequate to demonstrate that any cost 

claimed have been incurred, are allocable to the contract, and comply with applicable cost principles in 

FAR Part 31 and DOD or DLA supplements. The SCO may disallow all or part of a claimed cost that 

is inadequately supported.

Acquisition Cost: The amount identified as the original or estimated cost paid for property. 

Acquisition Value: The amount indicated on Delivery Order that is computed by multiplying the 

“Quantity” by the “Item Unit Price”. 

Alternative Dispute Resolution (ADR): Any procedure (for example, mediation, conciliation, 

facilitation, fact-finding, etc.), or any other method to which the parties agree for resolving issues in 

controversy, except the term does not include unassisted negotiations.

Bid Percentage: The amount of the percent of gross revenue (to include any bidder’s premium or other 

administrative fees) that the Contractor will share with the Government. 

Business Day: Any day that is not a Saturday, Sunday or a Federal Government observed holiday. 

Federal holidays presently include New Year's Day, Martin Luther King, Jr. Day, President's Day, 

Memorial Day, Independence Day, Labor Day, Columbus Day, Veteran's Day, Thanksgiving Day and 

Christmas Day.

Contractor's Purchase Price: The percent of gross revenue (to include any bidder’s premium or other 

administrative fees) that the Contractor will share with the Government.

CONUS: Continental United States.

Day: A business calendar day.

DLA Disposition Services: The organization vested with operational command and administration of 

the disposal solutions for Department of Defense (DOD) surplus property. 

Demilitarization Code: A single character alpha code assigned by the Item Manager identifying the 

degree of demilitarization necessary prior to accomplishing final disposition of an item.

Direct Cost: A cost identified specifically within a contract.

DOD: Department of Defense.

Disposal Turn in Document Number (DTID): A 14-position alpha/numeric combination used to 

identify a line item of property consisting of Department Of Defense (DOD) address code, julian date 

and serial number. The DD Form 1348-1A/2 is the standard document for turn-in of property. 

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Invitation For Bid Number 14-0092

Federal Supply Class (FSC): A commodity classification code primarily used in the National Stock 

Number (NSN). The first 2 digits of the code identify the group and the last 2 digits identify the classes 

within the group. 

Generator: The activity that produces the excess, surplus, foreign excess or other property; usually the 

entity formerly in physical possession and/or control of the property.

Hazardous Material (HM): Any material that is capable of posing an unreasonable risk to health, 

safety, and property during transportation in the United States. Overseas, HM is defined in the 

applicable Final Governing Standards or Overseas Environmental Baseline Guidance Document, and/or 

host nation laws and regulations.

Hazardous Waste (HW): Any property regulated under the Resource Conservation and Recovery Act 

(RCRA) or state regulation as a hazardous waste.

Invitation For Bid (IFB): An offer for bid submission.

Line Item: A single line entry on a reporting form that indicates a an item of property located at any 

one activity having the same description, condition code and unit cost. A line item may be comprised of 

one or multiple units. 

Local Stock Number (LSN): A locally purchased item with no NSN assignment.

National Item Identification Number (NIIN): A 9-digit number (immediately following the FSC) 

assigned to an item of supply that differentiates it from other items of supply.

National Stock Number (NSN): A 13-digit number consisting of the 4-digit FSC and the 9-digit NIIN 

that is assigned to identify an item of supply within the materiel management function.

Performance Period: Timeframe of the contract, to include any options offered.

Reasonable Cost: A cost is reasonable if, in its nature and amount, does not exceed that which would 

be incurred by a prudent person in the conduct of competitive business. Reasonableness of specific 

costs must be examined with particular care in connection with firms or their separate divisions that may 

not be subject to effective competitive restraints. No presumption of reasonableness shall be attached to 

the incurrence of costs by the Contractor. If an initial review of the facts results in a challenge of a 

specific cost by the Sales Contracting Officer , the burden of proof shall be upon the Contractor to 

establish that such costs is reasonable. 

Receipt In Place (RIP): Property being held at a location outside the DLA DISPOSITION SERVICES

network although on the DLA DISPOSITION SERVICES accountable record during the disposal 

process and safeguarded by the Generator. 

Rolling Stock: Ground related, self-propelled wheeled and track mounted vehicles (such as passenger 

motor vehicles, trucks and dozers) and trailers (such as semi-trailers, cargo trailers and special purpose 

trailers).

R/T/D: Reutilization/Transfer/Donation.

Sales Contract: An agreement between two parties that binds both parties and transfers title of 

specified property. 

Sales Contracting Officer (SCO): A duly appointed individual granted the authority to sell surplus 

and foreign excess personal property by various prescribed methods of sale. 

Scrap Property: A designation assigned by or with the approval of DLA DISPOSITION SERVICES

personnel meaning the items has no value in excess of that of the item’s basic material content. 

Unallowable Cost: Any cost that, under the provisions of any pertinent law, regulation, or contract, 

cannot be included in prices, cost-reimbursements, or settlements under a Government contract to which 

it is allocable. 

Usable Property: A designation assigned by or with the approval of DLA DISPOSITION SERVICES

personnel meaning that the item has value in excess of that of the item’s material content.

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