Noreen A. Killian
32a. QUANTITY IN COLUMN 21 HAS BEEN

RECEIVED INSPECTED ACCEPTED, AND CONFORMS TO THE CONTRACT, EXCEPT AS NOTED:

COMPLETE PARTIAL FINAL

STANDARD FORM 1449 (REV. 2/2012)

36. PAYMENT

PARTIAL FINAL

19. 

ITEM NO.

20. 

SCHEDULE OF SUPPLIES/SERVICES

21. 

QUANTITY

 22. 

 UNIT

23. 

UNIT PRICE

24. 

AMOUNT

32b. SIGNATURE OF AUTHORIZED GOVERNMENT 

REPRESENTATIVE

32c. DATE 32d. PRINTED NAME AND TITLE OF AUTHORIZED GOVERNMENT 

REPRESENTATIVE

32e. MAILING ADDRESS OF AUTHORIZED GOVERNMENT REPRESENTATIVE 32f. TELEPHONE NUMBER OF AUTHORIZED GOVERNMENT REPRESENTATIVE

32g. E-MAIL OF AUTHORIZED GOVERNMENT REPRESENTATIVE

33. SHIP NUMBER 34. VOUCHER NUMBER 35. AMOUNT VERIFIED 

CORRECT FOR

37. CHECK NUMBER

38. S/R ACCOUNT NO. 39. S/R VOUCHER NUMBER 40. PAID BY

42a. RECEIVED BY (Print)

41b. SIGNATURE AND TITLE OF CERTIFYING OFFICER 41c. DATE

42b. RECEIVED AT (Location)

42c. DATE REC'D (YY/MM/DD) 42d. TOTAL CONTAINERS

41a. I CERTIFY THIS ACCOUNT IS CORRECT AND PROPER FOR PAYMENT
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ITEM DESCRIPTION 

NSN: 8905-01-260- 7475: SHRIMP, DEHYDRATED, COOKED, PACKAGED IN A No. 10 METAL CAN, SHELF STABLE, PCR-S-024, 

dated April 14, 2011 w/Change 01 September 27, 2013 

 Est. Annual Unit of Firm Fixed Portion Total Unit Price 

 Quantity Issue Price subject to EPA 

Tier 1 9,000 CN $61.00 $33.72 $94.72 

Tier 2 9,000 CN $62.55 TBD* TBD 

Tier 3 9,000 CN $64.10 TBD TBD 

Tier 4 9,000 CN $65.64 TBD TBD 

Tier 5 9,000 CN $67.19 TBD TBD 

*TBD = To be determined

Total Contract Minimum for 5-year period is: 9,000 CN. The total minimum contract dollar value is $852,480.00 

Total Contract Maximum for 5-year period is: 67,500 CN. The total maximum contract dollar value is $6,602,580.00 

The shelf life requirement of this item is 36 months. All pricing is FOB destination. 

Required delivery dates shall begin within 120 days after issuance of each delivery order. 

The following is the complete delivery address: 

W62GT 

W1BG DLA Distribution 

25600 S Chrisman Road 

Rec Warehouse 30 - UGR 

Tracy, CA 95304-5000 

United States 

For appointment call (209) 839-4496, 24 hours prior to delivery. 

The effective period of the contract is: 

TIER 1: Feb 08, 2021 - Feb 07, 2022 

TIER 2: Feb 08, 2022 - Feb 07, 2023

TIER 3: Feb 08, 2023 - Feb 07,2024

TIER 4: Feb 08, 2024 - Feb 07, 2025

TIER 5: Feb 08, 2025 - Feb 07, 2026

NOTE: Deliveries might fall outside of effective period 

The Economic Price Adjustment of Tier 2, Tier 3, Tier 4 and Tier 5 of Shrimp will be adjusted in accordance with Procurement 

Note - ECONOMIC PRICE ADJUSTMENT (EPA) - UNITIZED GROUP RATION (UGR ) as follows:
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(a) Warranties: For the portion of the schedule that is covered by this EPA language, the Contractor warrants that the unit prices included in

the Schedule does not include allowances for any portion of the contingency covered by this EPA language.

(b) Base unit price: The base unit prices for the purpose of the adjustment calculations under this EPA language shall be the arithmetic

average of the weekly or monthly prices of each applicable economic indicator only (e.g. an average of egg indices for egg products, pork

belly indices for pork products, and skim milk and butterfat indices for milk products) only for the period specified under the “BASE Unit

Price” column in paragraph (b) immediately preceding (i) the closing date for proposals, (if no discussions are held), (ii) the due date for

final proposal revisions, (if discussions are held), or (iii) the opening date, (if sealed bidding is used).

ITEM: Dehydrated Shrimp 

EPA Factor: Shrimp 

Economic Indicator: Ex-Vessel Price (Average dollar per pound, headless, all species) Western Gulf 26/30

Publisher/Publication/Frequency Published: NOAA Monthly Ex- Vessel Gulf Shrimp Report

Base Unit Price: 12-month period 

Adjusting Unit Price: 12-month period 

(c) Adjusting unit price: The adjusting unit prices shall be the arithmetic average of the weekly or monthly prices of each applicable

economic indicator only for the period specified under the “Adjusting Unit Price” column shown in paragraph (b) immediately preceding the

effective date the option term is exercised.

(d) An established market price is a price that is established in the course of ordinary and usual trade between buyers and sellers free to

bargain and that can be substantiated by data from sources independent of the offeror(s); and the net price after applying any standard

trade discounts offered by the Contractor. The established market price under this EPA language may reflect industry-wide and/or

geographically based market price fluctuations for commodity groups or specific supplies. The established market price that shall be used

for the EPA factors subject to price adjustments under this EPA language, and the economic indicators and publications to be used are listed

in paragraph (b) of this EPA language.

(e) With respect to increases or decreases under this EPA language, no adjustment shall be made to the base term contract unit prices. One

adjustment calculation shall be made annually to determine the unit prices applicable to the forthcoming option term (if exercised).

(f) EPA allowance factor: For the purpose of price adjustment pursuant to this EPA language, it shall be conclusively presumed that the

amount shown under “Portion Subject to EPA” represents the cost of each item that is subject to adjustment. The portion subject to EPA

refers to the element of cost for each item that is outside the control of the vendor and in “Schedule B” the offerors will be required to fill

in this amount. This is the only portion of the cost that will be subject to the EPA provision. The EPA provisions based on changes in market

prices for product material costs such as egg, pork belly, skim milk, and buttermilk, are subject to the EPA, because there is serious doubt

concerning the stability of market conditions. The balance of product costs for items such as labor, overhead, General and Administrative

(G&A), transportation, and profit are those contingencies that can be included in the contract price and can be identified and covered

separately through firm fixed prices. The EPA allowance factor remains fixed throughout the life of the contract unless a Government

authorized change is made to the contract which affects this allowance.

(g) Performance requirement: The United States Army Research, Development and Engineering Command (RDECOM) Natick Soldier Center

(NSC) who prepares the specifications has moved from Military Specifications to Performance Requirements. The Government no longer

states the specific amount of product (egg, pork belly, skim milk, buttermilk etc.) (a unitized group ration item) that goes into a Unitized

Group Ration, only an overall amount with a protein and carbohydrate requirement. Meeting the protein and carbohydrate requirement

indicates that the Contractor has put in sufficient quantities of required ingredients in the Unitized Group Ration to satisfy the requirement.

(Different Contractors will put in differing quantities of egg, pork belly, skim milk, buttermilk etc. to meet the protein and carbohydrate

performance requirements). This is why specific weights or quantities cannot be specified in advance in this EPA as would be used in a

Military Specification and the cost for the items subject to adjustment will be entered by the Contractor in Section B. The Government

performs oversight to ensure that the performance requirements are met or exceeded.

(h) Adjustments shall be calculated as follows: (Round to four decimal places)

(1) Compute the Adjusting Unit Price and the Base Unit Price.
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(2) (Adjusting Unit Price - Base Unit Price)/Base Unit Price = Market Price Change (+ or -).

(3) Market Price Change X Allowance Factor = Contract Unit Price Adjustment (+ or -) for each item subject to EPA adjustment.

(4) The original option unit price(s) for each option will be the sum of the firm fixed price portion and the portion subject to the EPA

(Allowance Factor). The adjusted unit price(s) for each option shall be determined by increasing or decreasing (as appropriate) the

Allowance Factor by the Contract Unit Price Adjustment and adding that to the firm fixed price portion agreed to at the time of award for

the option period being adjusted.

(5) Determine the Contract Price Adjustment by computing the sum total of the price Adjustment of all items subject to EPA.

(i) Price adjustments pursuant to this EPA language shall be made by contract modification showing the calculations used to derive the

adjusted contract unit price.

(j) Payments: Payment for items pending adjustment under this EPA language shall be at the existing unadjusted current unit price until an

adjustment modification has been issued. Following issuance of an adjusting contract modification, the Government shall pay the

Contractor, upon submission of proper invoices or vouchers, the adjusted price stated in the contract modification for the applicable option

period. The Contractor represents by submitting its final invoice that the total amount billed under this contract reflects all increases or

decreases required or authorized by this EPA language.

(k) Any pricing actions pursuant to the “Changes” clause or other provisions of the contract will be priced as though there were no

provisions for economic price adjustment.

(l) No adjustment will be made under this EPA language unless the total change in the contract amount is $500.00 or more.

(m) Upward ceiling on economic price adjustment: The total increase in any contract unit price shall not exceed 10% per annum of the

original option unit prices agreed to at time of award. There is no percentage limit on downward adjustments under this EPA language.

(n) Revision of market price indicator: In the event (i) any applicable market price indicator is discontinued or its method of derivation is

altered substantially or (ii) the Contracting Officer determines that a particular market price indicator consistently and substantially no

longer reflects market conditions, the parties shall mutually agree upon an appropriate and comparable substitute and the contract shall be

modified to reflect such substitute effective on the date the indicator was discontinued, altered, or began to consistently and substantially

fail to reflect market conditions.

(o) Disputes: If the parties fail to agree on an appropriate substitute market price indicator or implementation of other matters addressed

by this EPA language then the matter shall be resolved in accordance with the Disputes clause of the contract.

(p) Authority to add additional items to this EPA language: Paragraph (b) of this EPA language identifies 3 unique components contained in

the ration. These components are selected based on historical data and may not be included in every ration. Refer elsewhere in the

solicitation/contract for listing of the exact component makeup. Due to customer requirements, the Contracting Officer may add additional

components to the ration. The Contracting Officer will show within paragraph (b) the additional components(s).

(q) Examination of records: The Contractor agrees that the Contracting Officer or designated representative shall have the right to examine

the Contractor's books, records, documents, or other data the Contracting Officer deems necessary to verify Contractor adherence to the

provisions of the clause.

(r) In the event any applicable market price indicator is not published for any week(s), that week will not be included in calculating the base

unit price or the adjusting unit price as applicable. For instance, if within a 52 week period an indicator is not published 4 times, the average

of the 48 published prices only will be calculated. When a range of prices is provided, for the purposes of the calculations the arithmetic

average of the high and low number will be calculated to determine the indicator for that period.

(End of Text) 

INSPECTION:
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Origin: Contractor paid USDA inspection 

Destination: Military verification inspection for identity, count and condition. 

Manufacturing Site: Thrive Life, LLC 

 691 Auto Mall Drive 

American Fork, Utah 84003

Place of Inspection: Same as above 

Inspection Office: USDA, AMS, SCP, SCI Division 

108 South 6th Avenue, Yakima, WA 98902-3387, 

Phone: 509 575-5869; FAX: 509 575-5881 

Officer-in-Charge: Nicholas Skay, Nicholas.skay@usda.gov, 

Cell: 509-413-7644 

Dale Kunce, Assistant Officer-in-Charge. 

All terms and conditions of solicitation SPE3S1-20-R-0007, as amended are hereby incorporated into this contract. 

TECHNICAL/QUALITY DATA 

I. INSPECTION AND ACCEPTANCE REQUIREMENTS

For the purposes of Inspection/Acceptance and Shipment/Delivery, a manufacturer's “lot” shall be considered no greater than a single 

shift's production. 

Note: When product is being delivered to Tracy Depot in California, lot numbers will not be mixed on the same pallet. 

II. TRACEABILITY

In order to facilitate an effective traceability for the Unitized Group Ration Program, the contractor shall ensure that each primary container 

(unit pack) and intermediate container, if required, has a lot number and Date of Pack (DOP). These package codes shall be permanent and 

legible. 

Use of the Julian Date for the lot number and a time stamp (hour and minute of filling/sealing) is preferred. For example (1296 12:15), 

1296 = October 23, 2011 and 12:15 representing the time of filling/sealing. When not required by specification, the contractor's lot 

identification may be of their own coding, i.e. a closed code, but the contractor shall provide the coding information for the primary 

containers and the contract data markings upon delivery. Package codes (to include time per case lot number shall be identified on the 

appropriate accompanying DD Form 250 upon delivery. 

Additionally, the contractor shall ensure that traceability records include identifying ALL ingredients and ALL sources for those ingredients. 

This shall be accomplished for each item, brand and component that is shipped to the Defense Depot (Assembler) for the Unitized Group 

Ration Programs. 

This information shall be made available within 24 hours. 

III. PRODUCT SANITARILY APPROVED SOURCE REQUIREMENTS

As required by 48 CFR 246.471 Authorizing Shipment of Supplies, AR 40-657, Veterinary/Medical Food Safety, Quality Assurance and 

Laboratory Service, DLAR 4155.3, Inspections of Subsistence Supplies and Services, DLAD 52.246-9044, "SANITARY CONDITIONS (APR 2014), 
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and as clarified by the Armed Forces Food Risk Evaluation Committee, 31 JAN 1996, all Operational Ration Food Components will originate 

from sanitarily approved establishments. Acceptable sanitary approval is constituted by listing in the "Directory of Sanitarily Approved Food 

Establishments for Armed Forces Procurement," published by the U.S. Army Institute of Public Health (USAIPH), or an establishment 

inspected and approved by the U.S. Department of Agriculture (USDA) or the U.S. Department of Commerce (USDC) and possessing a 

USDA/USDC establishment number. This requirement applies to all GFM and CFM Operational Ration Food Components and to all 

Operational Ration types. Requests for inspection and "Directory" listing by USAIPH will be routed through DLA Troop Support-FTSC for 

coordination and action. Situations involving sole sources of supply, proprietary supply sources, and commercial Brand Name items will be 

evaluated directly by the Chief, DLA Troop Support-FTSC, in coordination with the Chief, Approved Sources Division, USAIPH. 

 

IV. MARKING OF SHIPPING CONTAINERS AND MARKING OF UNIT LOADS 

 

All Shipping Containers and Unit Loads shall be clearly marked, in accordance with DLA Troop Support Form 3556 entitled “Marking 

Instructions for Boxes, Sacks, and Unit Loads of Perishable and Semi-perishable Subsistence, dated April 2014, with the following 

information on two adjacent sides of the load with the largest characters possible as follows: 

Unitized Ration Component 

National Stock Number 

Item Name 

Date of Pack and Lot Number 

Number of Shipping Containers per Pallet 

Contract Number 

Contractor's name and Address 

Inspection Test Date (ITD) 

 

Note: For the Inspection Test Date, the expected shelf life is found in the applicable solicitation/contract. To calculate the ITD, add the shelf 

life value to the month/year date of pack. 

Example, if the Date of Pack is June 2020, and the shelf life is 36 months (3 years), then the ITD is computed as follows: 6/20 + 3 years = 

6/23. If labels are used, they shall be permanently affixed with water-resistant adhesive tape. 

 

Shipments without the appropriate Shipping Container and Unit Load Markings will be rejected and returned to origin, or at the Contracting 

Officers discretion, reworked at a labor rate determined by the destination activity (not DLA Troop Support). 

 

V. UNITIZATION 

 

Unit loads shall have the shipping containers arranged on a 40 inch by 48 inch commercial wood or plywood four-way entry pallet, or on a 

48 inch by 40 inch Grocery Manufacturers of America wood four-way entry pallet. The load shall be bonded with non-metallic strapping, 

shrink or stretch film, or others means that comply with carrier rules and regulations applicable to the mode of transportation (adhesive 

bonding is not acceptable). 

 

Bonding material shall secure the load to the pallet to form a consolidated, stable cargo which can be handled as a unit. For example, when 

strapping is used to secure the load, the straps shall pass under the top deck boards of the pallet. When stretch or shrink film is used, it 

must be applied low enough on the pallet to secure the load to the pallet. The unit load height shall not exceed 50 inches. 

 

Inspection of unit loads shall be in accordance with classification Type III, Class G of DLA Troop Support Form 3507 of April 2014 entitled 

“Loads, Unit: Preparation of Semi-perishable Subsistence Items.” 

 

NOTE: The unit load dimensions are 40 inches in length by 48 inches in width and 50 inches in height. 

These dimensions are exact and can be no larger than what is specified. No overhang is permitted. 

 

REQUIREMENTS FOR TREATMENT OF WOOD PACKAGING MATERIAL (WPM) 

WOOD PACKAGING MATERIAL (WPM) WILL BE USED TO MAKE SHIPMENTS UNDER THIS 

CONTRACT AND/OR WHEN WPM IS BEING ACQUIRED UNDER THIS CONTRACT. 

 

Wood packaging material (WPM) means wood pallets, skids, load boards, pallet collars, wooden boxes, reels, dunnage, crates, frame and 

cleats. The definition excludes materials that have undergone a manufacturing process, such as corrugated fiberboard, plywood, 
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particleboard, veneer, and oriented strand board (OSD). 

 

All Wood Packaging Material (WPM) used to make shipments under DoD contracts and/or acquired by DoD must meet requirements of 

International Standards for Phytosanitary Measures (ISPM) 15, "Guidelines for 

Regulating Wood Packaging Materials in International Trade." DoD shipments inside and outside of the United 

States must meet ISPM 15 whenever WPM is used to ship DoD cargo. 

 

All WPM shall comply with the official quality control program for heat treatment (HT) or kiln dried heat treatment (KD HT) in accordance 

with American Lumber Standard Committee, Incorporated (ALSC) Wood 

Packaging Material Program and WPM Enforcement Regulations (see http://www.alsc.org/). 

 

All WPM shall include certification/quality markings in accordance with the ALSC standard. Markings shall be placed in an unobstructed 

area that will be readily visible to inspectors. Pallet markings shall be applied to the stringer or block on diagonally opposite sides of the 

pallet and be contrasting and clearly visible. All containers shall be marked on a side other than the top or bottom, contrasting and clearly 

visible. All dunnage used in configuring and/or securing the load shall also comply with ISPM 15 and be marked with an ASLC approved 

DUNNAGE stamp. 

 

Failure to comply with the requirements of this restriction may result in refusal, destruction, or treatment of materials at the point of entry. 

The Agency reserves the right to recoup from the Contractor any remediation costs incurred by the Government. 

 

 

VI. QUALITY ASSURANCE PROVISIONS INSPECTION/ACCEPTANCE 

 

The contractor must meet all characteristics specified herein. For product requiring contractor-paid USDA, only end-item inspection of the 

finished product for compliance with contract requirements shall be lot inspected by USDA, AMS, FV, PPB. In addition, Government 

inspection shall also be at destination for identity, count and condition for all terms and conditions of the contract. This shall include but is 

not limited to the following: 

1. All shipments must be accompanied by an accurate DD-250, and all other pertinent invoices as required. 

2. All unit loads must be marked in accordance with DLA Troop Support Form 3556. 

3. All unit loads shall be stable and not exceed 50 inches in height including pallet material. 

4. All delivered product shall be free of defects. 

5. All shipments must contain the correct quantity as specified by DLA Troop Support. 

6. Appointments must be scheduled with the receiving activity prior to delivery. 

7. All delivered product must meet or exceed the appropriate product requirements as described in this Solicitation. 

8. All delivered products must meet the required date of pack/shelf life requirements. 

9. To determine the date of pack, any closed date code must be accompanied with documentation deciphering the closed product code. 

10. All delivered products must be free of insect and rodent infestation. 

 

Failure to comply with ANY of the above conditions may result in the shipment(s) being rejected and returned to origin, or at the 

Contracting Officer's discretion reworked at a labor rate determined by the destination activity (not DLA Troop Support). 

 

QUALITY ASSURANCE PROVISIONS:

By submitting an offer, the contractor certifies that the product offered meets: the specified finished product salient characteristics and all 

requirements of this contract; conforms to the producer's own specifications and standards, including product characteristics,

manufacturing procedures, quality control procedures, and storage and handling practices; has a national or regional distribution from 

storage facilities located within the United States, its territories, or possessions; and is sold on the commercial market. 

The Government reserves the right to determine proof of such conformance prior to the first delivery from the point of origin and any time

thereafter, as may be necessary, to include delivery at final destination, and for the time the product is covered under warranty, to 

determine conformance with the provisions of the contract. 

End item lots determined nonconforming may be reworked to correct or screen out the defective units. Rework shall only be considered

acceptable to the Government when the rework procedure has a reasonable probability of correcting the deficiency. 

An end item lot rejected by the contractor or Government must be reworked and re-offered within 30 days from the date of initial 

rejection. 

The supplies or products furnished under the contract shall be produced in accordance with the provisions of 21 CFR, Part 110, “Current
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Good Manufacturing Practices in Manufacturing, Packing or Holding Human Food,” and all regulations referenced therein. 

 

VII. DATE OF PACK 

 

Acceptance will be limited to product processed and packed subsequent to date of award of delivery order. Additionally, all shipments of 

components/product from a producer to destination/assembly points shall not be older than 420 days at delivery. 

 

 

 

VIII. REWORK OF NONCONFORMING PRODUCT PRE OR POST ACCEPTANCE 

 

Rework of Nonconforming Product: The Government QAR must be informed and provided documentation of all rework results when 

product is presented for Government verification inspection or prior to Government inspection as indicated below.

 

A. Corrective Action (Rework/Screen Inspections) Taken Prior To Government Verification Inspection (Receipt, In-Process And 

End-Item Inspections): Unless otherwise specified below, all reworks and screening inspections conducted prior to the Government 

verification inspection do not require approval from the Government. Although the GQAR must be informed of all reworks, the contractor 

is not required to obtain approval to take corrective and preventive action as deemed necessary to ensure compliance with contractual 

requirements. For reworks requiring the Government's approval (as specified below), the contractor may submit a Standard Rework

Procedure (SRP), for certain defects, under the contractor's documented QSP section XII - Corrective and Preventive Action Program. The 

SRPs must be specific and these must be evaluated by DLA Troop Support-FTR, and DLA Troop Support-FTSC, and approved by the 

applicable Contracting Officer.

 

NOTE: All requests for rework shall be accompanied with a COMPREHENSIVE rework plan. The rework plan will include rational information 

and data that supports the rework plan and ensures the elimination of nonconforming material from the lot. When a contractor determines 

as a result of his end item inspection(s) or QSP that supplies do not conform to contractual requirements and the supplies cannot be 

reworked (such as drained weight, viscosity, piece size, residual air, etc), he has the alternative to request the Contracting Officer for a 

waiver for the nonconforming requirement. If the Contracting Officer approves the waiver request for a specific requirement, the written 

waiver approval shall be provided to the GQAR when the supplies are presented for Government Verification Inspection (the skip-lot 

inspection does not apply in this case). The GQAR shall inspect the supplies for compliance with all requirements of the contract, except the 

waived requirement. The Contracting Officer, in special circumstances, may request the GQAR to inspect for the non-conforming 

characteristics also, after the waiver for the nonconforming requirement has been provisionally approved, to determine severity of 

nonconformance only. Due to the type of statistical sampling cited in the contract, under no circumstances shall a lot found nonconforming 

by the contractor be inspected by the GQAR to determine conformance to a requirement that has previously been established as 

nonconforming by the contractor's inspection. After any lot's failure or rework, if the lot is reinspected, it will be both Contractor and 

Government inspected at the next higher sample size; however, the accept/reject numbers used for the normal inspection will be used. 

 

 

B. The Following Reworks Must Be Coordinated With The Supervisory GQAR And Approved By The Applicable DLA Troop 

Support-FTR Office. 

 

1. Insect or Rodent Infestation/Contamination: Reworks must be approved by DLA Troop Support-FTSC.

 

2. Food Safety and Foreign Material: All corrective actions for product retained due to processed/unprocessed container mixups must be approved by FTR. Thermal process deviations or deviations from the preparation, formulation or critical factors cited in the 

approved process schedule must be accompanied by a detailed letter from the plant's Processing Authority. The involved subcode(s), the 

deviation, and the disposition of the product shall be clearly identified when the complete lot is presented for Government end item 

verification inspection. If the producer fails to provide enough information/data in the case of a deviation, the GQAR shall contact FTR for 

approval to proceed with the Government end item verification inspection. These requirements are in addition to applicable Code of 

Federal Regulations or other regulatory requirements (USDA-FSIS, FDA). 

 

Foreign material identified during normal in-process control actions does not require a waiver request from DLA Troop Support FTR, but 

does require USDA notification of the incident. However, foreign material discovered during the Contractor or GQAR/USDA end item 

inspection is cause for rejection of the lot. Rework requests that involve foreign material identified during end item inspections require 
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approval from DLA Troop Support FTR before the rework activity can proceed. 

 

Note: A notification of nonconformance containing ineffective corrective actions, as identified by USDA, require DLA-TS attention and 

action 

 

“Retesting/re-inspection/rework of product that tested positive for food borne pathogens (salmonella, e. coli, etc.) is not authorized.” 

 

Note: Deviations (that occur during or prior to the production of a product) from specific preparation/ formulation/ingredient 

requirements cited in the specifications shall be submitted as a request for product deviation and must be approved and coordinated with 

the Specification Preparing Activity (Natick) through the applicable Contracting Officer.

 

3. Container Integrity Defects: All reworks due to container integrity defects noted during the producer's end item 

inspection (for critical container defects only) or Government final lot end item verification inspection, must be approved by FTR unless 

100% primary container rework of the entire lot is conducted at source (Note: All second time reworks must be approved by the applicable 

FTR office). All containers exhibiting same or other container integrity defects must be removed during the 100% primary container rework 

and noted on the rework paperwork. Reworked lots will be inspected or re-inspected, as applicable, by the contractor at the location of the 

rework using the next larger sample size (for example, from 200 samples to 315, or if a second rework, from 315 samples to 500 samples). 

Rework results must be included with other paperwork when the lot is presented for Government end item verification inspection.

 

4. Second Time Reworks: All second time reworks must be approved by the applicable FTR office.

 

5. Nonconformances Noted During The Government End Item Verification Inspection: 

All rework requests submitted for defects noted during Government end item verification inspections must be approved by the applicable 

Contracting Officer, unless exempted under paragraph 3 above. 

 

 

C. Contractor's Quality History: 

 

1. Effectiveness of corrective actions (rework/screen inspections) taken by the contractor prior to Government end item 

verification inspection (receipt, in-process and contractor's end-item inspections) will be determined by the results of the end item 

verification inspection performed by the GQAR. Corrective actions taken to ensure compliance with the contractual requirements prior to 

the Government end item verification inspection will not be counted against the contractor's quality history. If product is found 

conforming during the Government end item verification inspection, the corrective action will be determined to have been effective. 

However, all requests for waivers and product deviations will be counted. 

 

2. If product is found nonconforming during the Government end item verification inspection following contractor 

corrective action for the same defect (or defect category in case of critical container defects) for which the contractor took a corrective 

action, the corrective action will be determined to have been ineffective. In addition to any action taken, the contractor must reevaluate 

their documented QSP and/or the implemented corrective and preventive action program by an internal audit and results must be 

submitted to DLA Troop Support-FTSB (Quality Systems Auditors). All corrective actions (rework/screening inspections, etc.) taken by 

the contractor due to a Government end item verification inspection rejection will be documented in the contractor's quality history 

records.

 

NOTE: If the contractor elects to rework nonconforming product, it must be reworked and reoffered within 30 days from date of initial

rejection.

 

All requests for rework shall be accompanied with a comprehensive rework plan. The rework plan will include rational information and 

data that supports the rework plan and ensures the elimination of nonconforming material from the lot. See “Request for Rework, Request 

for Waiver, Request for Deviation, or Re-inspection of Nonconforming Supplies”. 

 

D. Request for Rework, Request for Waiver, Request for Deviation, or Re-inspection of 

Nonconforming Supplies 

 

1. When contractor inspection or QSP, or Government verification by the QAR, reveals a process deviation or 
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nonconforming lot, the contractor's written request for deviation, waiver, rework or re-inspection of the nonconforming lot(s) must be 

furnished, as appropriate to the Contracting Officer and cognizant Government QAR and shall at a minimum contain the following:

NOTE: Subject line should include what is being asked for (i.e.: Request for Waiver for Drain Weight of Beef Stew or Request for 

Rework for Residual Air for Apple Dessert) 

a. Type of Request: Waiver, Notification, Re-inspection, Rework 

b. Approval Required from DLA: Yes or No 

c. Contractor Name/Address 

d. Contract Number 

e. Product Name 

f. National Stock Number 

g. Batch Number(s) (If Applicable) 

h. Sublot(s) (If Applicable) 

i. Lot Number(s) 

j. Process Category (i.e. Work-progress/End Item) 

k. Quantity 

l. Specification Requirement Number (PCR, CID, etc) 

m. Sample Size; Defect; Accept/Reject 

n. Defect Classification: Critical, Major, Minor, NA 

o. Inspection Failure (Summary of non-conformances) 

p. Failure Identified: Processing, Packaging, End Item 

q. Inspector: In-plant/Contractor or USDA 

r. Date of Incident 

s. Attachments (Provide in-house, USDA worksheets, in-process data) 

t. Root Cause of nonconformance or deviation (Describe using a short detailed paragraph; Tell a story of the 

incident) 

u. Corrective Action (Describe using a short detailed paragraph) 

v. Preventive Action (Describe using a short detailed paragraph; if preventive action is not possible, state why) 

w. Occurrence (Has this occurred before/when; if yes, what was the date/contract/lot number of last occurrence)

x. Estimated Cost 

y. Effect on Delivery 

z. Justification for request (What are you asking for?) 

 

NOTE: All requests for rework shall be accompanied with a COMPREHENSIVE rework plan. The rework plan will include rational information 

and data that supports the rework plan and ensures the elimination of nonconforming material from the lot. After any lot's failure or 

rework, if the lot is re-inspected, it will be both Contractor and Government inspected at the next higher sample size; however, the accept/

reject numbers used for the normal inspection will be used.

 

2. When a valid technical reason for re-inspection without rework is offered and permission is granted by the PCO, the 

contractor shall take corrective action to eliminate the cause of the inspection revealed failure; reinspect the non-reworked lot after taking 

the corrective action, and evaluate the results of the initial inspection and the re-inspection by means of recognized statistical methods. 

 

a. If the statistical tests reveal no significant difference between the results of the two inspections, acceptability 

will be based on re-inspection results. A significant difference is one that is real and not due to chance variation. Statistically, a difference 

which has a 0.05 probability of occurring by chance alone is usually considered a significant difference. 

b. If such statistical tests reveal no significant difference between the results of the two inspections, both results 

will be reported to the Contracting Officer. 

1. The results of the two inspections will be averaged and acceptability will be based on whether the 

resulting average meets the requirement, when the requirement is an average (variable) requirement. 

2. The results of the initial (original) inspection will be the basis for the acceptability decision when the 

requirement is a unit (attribute) requirement. 

 

 

 
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52.204-19 INCORPORATION BY REFERENCE OF REPRESENTATIONS AND CERTIFICATIONS (DEC 2014) FAR

252.204-7009 LIMITATIONS ON THE USE OR DISCLOSURE OF THIRD-PARTY CONTRACTOR REPORTED CYBER INCIDENT 

INFORMATION (OCT 2016) DFARS

52.232-40 PROVIDING ACCELERATED PAYMENTS TO SMALL BUSINESS SUBCONTRACTORS (DEC 2013) FAR

252.204-7018 PROHIBITION ON THE ACQUISITION OF COVERED DEFENSE TELECOMMUNICATIONS EQUIPMENT OR SERVICES 

(DEC 2019) DFARS