Sources Sought Notice – USPS Air Transportation Services between MEM, ANC, HNL,SJU

Notice Type: Sources Sought Notice

Posted Date: 18-OCT-13

Agency: United States Postal Service

Office Address: United States Postal Service; Transportation Purchasing; Transportation Purchasing (HQ); 475 LEnfant Plaza SW Room 4900 Washington DC 20260-6210

Subject: USPS Air Transportation Services between MEM, ANC, HNL,SJU

Classification Code: V - Transportation, travel, & relocation services

Solicitation Number: USPS_PEAK_AIR_DEC_2013

Contact: Erika V. Ramriez, Purchasing Specialist, Phone 2022686150, Email [email protected] - Cheryl R Brazil, Contracting Officer, Phone 202 268 2096, Email [email protected]

Setaside: N/AN/A

Place of Performance (address): Memphis, Tennessee; Anchorage, Alaska; San Juan, Puerto Rico; Honolulu, Hawaii

Place of Performance Country: US

Description: United States Postal Service

Transportation Purchasing

Transportation Purchasing (HQ)

Sources Sought Notice - Request for Quote (RFQ) USPS Transportation Category Management Center Washington DC Air Transportation Service December 18, 2013 through December 22, 2013 with Optional Days on December 23 and 24, 2013; between Memphis, Tennessee (MEM), and the following destinations: Anchorage, Alaska (ANC), Honolulu, Hawaii (HNL), and San Juan, Puerto Rico (SJU)

The Postal Service is issuing a request for quote (RFQ) as a sources sought notice. This is an invitation for potential suppliers to submit price quotes for providing air transportation, ground handling and deicing services for the peak offshore operation. The dedicated offshore operation will provide point-to-point air transportation service, defined as round trip transportation on December 18, 2013 through December 22, 2013 with optional days on December 23 and 24, 2013 between Memphis, Tennessee (MEM), and the following destinations: Anchorage, Alaska (ANC), Honolulu, Hawaii (HNL), and San Juan, Puerto Rico (SJU), according to the schedules. Attachment 1, Service Schedules, of the resultant contract will contain the finalized schedules for these flights.

This does not imply a commitment to acquire the services from any responding supplier. An RFQ provides the Postal Service with useful information to further assess innovative solutions and a better understanding of how the requirement can best be met.

Your quote for the service should be submitted using the attached Pricing Matrix Template by no later than Friday, October 25, 20135:00pm EST. Please submit your quotes via email to:

Erika Ramirez Purchasing and Supply Management Specialist [email protected] 202-268-5846

PART 1 STATEMENT OF WORK

1.1 Scope of Service

The supplier will provide Aircraft, Crew, Maintenance, and Insurance (ACMI), ground handling, deicing and related support services, including customer support and provisions for recovery.

The Postal Service or its agent will provide terminal handling support services of mail unless otherwise specified.

The Postal Service will provide fuel necessary to complete contracted routes. Payment reconciliation for fuel usage will occur after the period of performance is completed.

Period of Performance The period of Performance will be from December 18 through December 22, 2013 with optional days on December 23 and 24, 2013.

Aircraft Based on the projected demand, the Postal Service requires a total of two 747 freighter aircraft or two aircraft that can transport 130,000 pounds each.

The contracted aircraft will operate as fully dedicated aircraft during the date and hours of operation as specified within the Service Schedule(s) (Attachment 1). The aircraft must be available for loading and unloading per the times stated within the Service Schedule(s).

The type, quantity, and tail number of the aircraft will remain fixed for the entire term of the contract, unless a change or modification is approved by the contracting officer. The proposed dedicated aircraft for this operation will be required to carry mail up to the limit of the aircraft's lift capacity. The supplier must be able to transport all classes and types of mail up to the maximum published weight limit.

The supplier must maintain all aircraft in compliance with Federal Aviation Regulations as applicable to the type of certificate for aircraft provided, (for example, Part 121, subpart L) as applicable, and all other applicable U.S. Government regulations. The supplier is completely and exclusively responsible for the safety and maintenance (and all applicable maintenance costs) of aircraft.

The supplier must provide fully trained and qualified flight crews who are certified under FAR 121 regulations to operate all flights.

The supplier must comply with all Federal and local noise abatement restrictions at airports served, including alternate landing sites.

The supplier will acquire all landing slots and pay all parking and landing fees at each air stop and the alternate landing sites used in the performance of duties under this contract.

The supplier shall maintain operating capability at one alternate landing site for each airport.

Replacement Aircraft The supplier must have the availability of one replacement aircraft capable of transporting 130,000 pounds per trip and crew to recover the service within 6 (six) hours of the scheduled departure time of the grounded aircraft. For example, if the aircraft is scheduled to depart at 1700 and becomes inoperable, then a replacement aircraft should be in place by 2300. In addition, the supplier will be required to work an agreed upon schedule to ensure all trips are returned to original service schedules within 24 hours.

Fuel The Postal Service has implemented a fuel purchase program and intends to purchase aviation fuel for aircraft operated under the provisions of this contract. The supplier is required to obtain fuel from the designated source available at each location as specified.

If, for any reason, the Postal Service is unable to obtain fuel, the supplier will be responsible for obtaining and uploading all aviation fuel necessary to operate the aircraft. Upon notification, the supplier will become responsible for any and all costs associated with aviation fuel and its upload into the aircraft. In the event of this change in requirements, the Postal Service and the supplier will re-negotiate the terms and conditions of the contract to provide for reimbursement of fuel costs.

Deicing The supplier will provide deicing services at the ANC and MEM air stops (as applicable.)

1.2 Delivery

1. The air transportation supplier will make mail available for unloading by the supplier's designated agent or the Postal Service, from the aircraft by opening aircraft cargo doors. For purposes of performance measurement, delivery will be defined through the following events:

* Aircraft Arrival: defined by the "block in" time * Available for Unload: defined by the time the cargo door is opened and the aircraft is available to the ground handler personnel to safely enter aircraft * Unload Complete: defined by the time the last container or piece of mail is removed from aircraft * Mail Delivered: defined by the time the final piece or unit of mail is presented to the designated delivery point as specified in this document or Service Schedule. * All mail must be delivered at or before the scheduled delivery time. The air transportation supplier must not impede the ground handling operations.

2. The Postal Service expects the supplier to provide a high level of on-time performance so that the Postal Service can provide timely delivery of mail to its customers. The supplier's daily operational performance will be considered in determining service reliability and for purposes of renewal and future contract awards.

1.3 Division of Operational Responsibilities

Air Transportation Supplier: The air transportation supplier must cooperate and work collaboratively with the Postal Service or its agents and, where appropriate, the terminal handling suppliers to ensure optimal performance throughout the entire operation. Functional responsibilities will be divided as follows:

The air transportation supplier must:

* Provide aircraft for air transportation line haul service * Operate aircraft in order to transport mail between air stops specified in this document and Attachments * Schedule fueling with plane agent * Provide deicing services in ANC and MEM (as applicable) * Provide ground handling services in ANC, HNL, MEM, and SJU (as applicable); and will be responsible for other aspects of ramp operations, including:

o Unlocking and opening the aircraft main cargo door o Download/Upload of aircraft o De-icing o Approval and acceptance of load plan o Maintenance and preflight inspection o Closing and locking the aircraft main cargo door o Crew transport to and from aircraft o Providing a tail stand for the aircraft, if necessary o Providing an air start if necessary o Providing for Ground Power Unit (GPU) services, if necessary, for service beyond loading and unloading or other services required by the Postal Service o All Lavatory, water and other related services o Entering required data elements into computer software program, CORE Transport Technologies, Inc.

* Provide drayage service from HNL airport to: HNL P&DC Air Cargo Unit 3600 Aolele St Honolulu, HI 96820

* Prepare flight plans, and provide other support services necessary for the safe and efficient operation of the aircraft * Open cargo doors of aircraft and permit containers to be loaded onto the aircraft main deck, and mailbags and parcels (i.e., loose load mail) to be loaded into the lower cargo compartments of the aircraft * Provide adequate staffing to operate aircraft, and manage its flight operation * Provide adequate crew in order to prevent flights from being delayed due to lack of crew hours * Assign an individual fully dedicated to the Postal Service as a contact person * Notify ground handling supplier's load planner of the aircraft registration number and total payload available for the aircraft assigned to each route * Approve the completed load plan prepared for each aircraft by the ground-handling supplier * Provide a Loadmaster support for each aircraft provided * Communicate via the CORE system each time an event causes an impact of 15 minutes or more to the flight schedule. The supplier must input the data into the CORE system immediately after becoming aware of the event. In addition, for flights involving a Memphis, TN, arrival or departure, the supplier must notify the local Memphis, TN, Postal representative. contact information will be provided upon contract award * Inform the ground-handling supplier of any and all aircraft schedule changes or delays which could affect incoming and outgoing traffic, including, but not limited to, maintenance, repair, and de-icing requirements

The Postal Service will not be responsible for providing crew lounge or lavatory services at any air stop.

Special Note - Ground Handling and Deicing: If the air transportation supplier's de-icing and ground handling services proposal is not deemed to offer the best value to the Postal Service, price and other factors considered, the Postal Service will provide the de-icing and ground handling services through its agents. In this case, the air transportation supplier will not be responsible for providing ground handling or de-icing services, but will be expected to cooperate with the Postal Service's agents.

1.4 Service Requirements

The service frequency is defined within the Service Schedule for each origin and destination segment.

The air transportation supplier may be requested to provide service beyond the scope of the Service Schedule frequency, during the remaining term of the contract. Additionally, the air transportation supplier may be required to divert its aircraft as a result of unforeseen circumstances beyond the control of either party. In the event of such diversion, the air transportation supplier will operate at the mutually agreed upon pre-negotiated rates per block hour multiplied by the substantiated and agreed upon block hours necessary to provide the diversionary service.

1.5 Schedules

The flight schedules accepted by the Postal Service will become the contractual schedule of operations and will remain fixed for the term of the contract. This includes the aircraft types, quantity, and tail-numbered aircraft, which are proposed. The supplier must not arrive later than, nor depart earlier than, the times in the agreed upon schedule (Attachment 1) unless specifically authorized by the contracting officer.

1.6 Trip Cancellation

If the contracting officer orders a cancellation of any of the scheduled/optional flights, the supplier will be compensated based on the pre-negotiated cancellation rates.

A scheduled segment trip may be canceled by the contracting officer if the supplier's previous flight's non-compliant performance of service results in a "domino-effect" situation causing an inability of the supplier to meet the Postal Service's requirements for remaining flights. In the event of this reason for a Postal Service ordered trip cancellation, the air transportation supplier will not be compensated for service that was canceled.

1.7 Security

The supplier will have the responsibility to establish, implement, administer and maintain a security program that encompasses all facets of the operation and meets all Federal Aviation Administrations (FAA), Transportation Security Agency (TSA), Customs and Border Patrol (CBP), and local airport authority requirements regarding airport security. The Postal Inspection Service has the right to conduct inspections at any time.

Further, the supplier must cooperate fully with any security program implemented by the ground or terminal handling supplier stated within this contract or applicable through Postal regulations that complies with applicable FAA and local airport authority requirements regarding airport security or that provides for security of mail while in the supplier's custody and control.

The air transportation supplier will exercise due diligence to ensure the mail entrusted to them receive proper security by the employees. See Attachment 2 Personnel Screening.

1.8 Air Transportation System Support

The Postal Service intends to implement the use of the "Aircraft Schedule Alerting System (ASAS)" operated by CORE Transport Technologies, Inc. (CORE) for computer-assisted management of air transportation and associated activities for this contract.

The purpose is to monitor mail volume flows; establish an historical record of mail transport events; identify irregularities; recommend assessments; and certify mail handling and transportation flow events for payment.

This will be achieved by: (a) linking real-time flight information with pre-flight loading and post flight unloading information; (b) proactively notifying appropriate staff (Postal Service and third party contractors) of schedule anomalies that require management intervention; and (c) linking this data with contractual data to calculate budgetary impacts.

The supplier will be required to perform all CORE data entry functions as specified in the document attached to this contract. See Attachment 3 Data Entry.

1.9 FAA and Local Airport Authority Requirements

The supplier must comply with all lawful requirements of FAA and local airport authorities. This includes, but is not limited to, reporting flight schedules, weight and balance compliance, noise abatement, ramp access restrictions, de-icing procedures, landing restrictions, and other matters within the jurisdiction of such authorities to include liability insurance.

PART 2 CONTRACT CLAUSES

2.1 Clause 4-1 General Terms and Conditions (July 2007) a. Inspection and Acceptance. The supplier will only tender for acceptance those items that conform to the requirements of this contract. The Postal Service reserves the right to inspect or test supplies or services that have been tendered for acceptance. The Postal Service may require repair or replacement of nonconforming supplies or reperformance of nonconforming services at no increase in contract price. The Postal Service must exercise its post acceptance rights (1) within a reasonable period of time after the defect was discovered or should have been discovered and (2) before any substantial change occurs in the condition of the items, unless the change is due to the defect in the item. b. Assignment. If this contract provides for payments aggregating $10,000 or more, claims for monies due or to become due from the Postal Service under it may be assigned to a bank, trust company, or other financing institution, including any federal lending agency, and may thereafter be further assigned and reassigned to any such institution. Any assignment or reassignment must cover all amounts payable and must not be made to more than one party, except that assignment or reassignment may be made to one party as agent or trustee for two or more parties participating in financing this contract. No assignment or reassignment will be recognized as valid and binding upon the Postal Service unless a written notice of the assignment or reassignment, together with a true copy of the instrument of assignment, is filed with: 1. The contracting officer; 2. The surety or sureties upon any bond; and 3. The office, if any, designated to make payment, and the contracting officer has acknowledged the assignment in writing. 4. Assignment of this contract or any interest in this contract other than in accordance with the provisions of this clause will be grounds for termination of the contract for default at the option of the Postal Service. c. Changes 1. The contracting officer may, in writing, without notice to any sureties, order changes within the general scope of this contract in the following: a. Drawings, designs, or specifications when supplies to be furnished are to be specially manufactured for the Postal Service in accordance with them; b. Statement of work or description of services; c. Method of shipment or packing; d. Places of delivery of supplies or performance of services; e. Delivery or performance schedule; f. Postal Service furnished property or facilities. 2. Any other written or oral order (including direction, instruction, interpretation, or determination) from the contracting officer that causes a change will be treated as a change order under this paragraph, provided that the supplier gives the contracting officer written notice stating (a) the date, circumstances, and source of the order and (b) that the supplier regards the order as a change order. 3. If any such change affects the cost of performance or the delivery schedule, the contract will be modified to effect an equitable adjustment. 4. The supplier's claim for equitable adjustment must be asserted within 30 days of receiving a written change order. A later claim may be acted upon - but not after final payment under this contract - if the contracting officer decides that the facts justify such action. 5. Failure to agree to any adjustment is a dispute under Clause B-9, Claims and Disputes, which is incorporated into this contract by reference (see paragraph s). Nothing in that clause excuses the supplier from proceeding with the contract as changed. d. Reserved e. Reserved f. Reserved g. Invoices 1. The supplier's invoices must be submitted before payment can be made. The supplier agrees that submission of an invoice to the Postal Service for payment is a certification that: a. Any services being billed for have been performed in accordance with the contract requirements; and b. Any supplies for which the Postal Service is being billed have been shipped or delivered in accordance with the instructions issued by the contracting officer and that the supplies are in the quantity and of the quality designated in the contract. 2. To ensure prompt payment, an original invoice (or electronic invoice, if authorized) must be submitted to the address designated in the contract to receive invoices for each destination and shipment. An invoice must contain: a. The supplier's name, remit to address (including ZIP+4_) and phone number; b. Unique invoice number and invoice date; c. Any applicable task or delivery order number; d. A description of the supplies or services and the dates delivered or performed; e. The point of shipment or delivery; f. Quantity, unit of measure, unit price(s) and extension(s) of the items delivered; g. Shipping and payment terms, including GBL number if applicable; and h. Any additional information required by the contract. h. Patent Indemnity. The supplier will indemnify the Postal Service and its officers, employees and agents against liability, including costs for actual or alleged direct or contributory infringement of, or inducement to infringe, any United States or foreign patent, trademark, or copyright, arising out of the performance of this contract, provided the supplier is reasonably notified of such claims and proceedings. i. Payment 1. Payment will be made for items accepted by the Postal Service that have been delivered to the delivery destinations set forth in this contract. The Postal Service will make payment in accordance with the Prompt Payment Act (31 U.S.C. 3903) and 5 CFR 1315. Payments under this contract may be made by the Postal Service either by electronic funds transfer (EFT), check, or government credit card at the option of the Postal Service. When the EFT payment method is selected, the Postal Service will provide the supplier with Form 3881, Supplier's Electronic Funds Transfer Enrollment Form, at contract award. The supplier must complete the form and submit it to the designated Postal Accounting Service Center to ensure the proper routing of payments. 2. In conjunction with any discount offered for early payment, time will be computed from the date of the invoice. For purposes of computing the discount earned, payment will be considered to have been made on the date which appears on the payment check or the date on which an electronic funds transfer was made. j. Risk of Loss. Unless the contract specifically provides otherwise, risk of loss or damage to the supplies provided under this contract will remain with the supplier until, and will pass to the Postal Service upon: 1. Delivery of the supplies to a carrier, if transportation is f.o.b. origin, or; 2. Delivery of the supplies to the Postal Service at the destination specified in the contract, if transportation is f.o.b. destination. k. Taxes. The contract price includes all applicable federal, state, and local taxes and duties. l. Termination for the Postal Service's Convenience. The Postal Service reserves the right to terminate this contract, or any part hereof, for its sole convenience. In the event of such termination, the supplier must immediately stop all work and must immediately cause any and all of its suppliers and subcontractors to cease work. Subject to the terms of this contract, the supplier will be paid a percentage of the work performed prior to the notice of termination, plus reasonable charges the supplier can demonstrate to the satisfaction of the Postal Service using its standard record keeping system, have resulted from the termination. The supplier will not be paid for any work performed or costs incurred which reasonably could have been avoided. m. Termination for Default. The Postal Service may terminate this contract, or any part hereof, for default by the supplier, or if the supplier fails to provide the Postal Service, upon request, with adequate assurances of future performance. In the event of termination for default, the Postal Service will not be liable to the supplier for any amount for supplies or services not accepted, and the supplier will be liable to the Postal Service for any and all rights and remedies provided by law. The debarment, suspension, or ineligibility of the supplier, its partners, officers, or principal owners under the Postal Service's procedures (see 39 CFR Part 601) may constitute an act of default under this contract, and such act will not be subject to notice and cure pursuant to any termination of default provision of this contract. If it is determined that the Postal Service improperly terminated this contract for default, such termination will be deemed a termination for convenience. n. Title. Unless specified elsewhere in this contract, title to items furnished under this contract will pass to the Postal Service upon acceptance, regardless of when or where the Postal Service takes physical possession. o. Warranty. The supplier warrants and implies that the items delivered under this contract are merchantable and fit for the use for the particular purpose described in this contract. p. Limitation of Liability. Except as otherwise provided by an express or implied warranty, the supplier will not be liable to the Postal Service for consequential damages resulting from any defect or deficiencies in accepted items. q. Other Compliance Requirements. The supplier will comply with all applicable Federal, State, and local laws, executive orders, rules and regulations applicable to its performance under this contract. r. Order of Precedence. Any inconsistencies in this solicitation or contract will be resolved by giving precedence in the following order; (1) the schedule of supplies and services; (2) the Assignment, Disputes, Payments, Invoice, Other Compliances and Compliance with Laws Unique to the Postal Service Contracts paragraphs of this clause; (3) the clause at 4-2 Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders; (4) addenda to this solicitation or contract, including any license agreements for computer software; (5) solicitation provisions if this is a solicitation; (6) other paragraphs of this clause; (7) Form 8203; (8) other documents, exhibits, and attachments, and (9) the specifications. s. Incorporation by Reference. Wherever in this solicitation or contract a standard provision or clause is incorporated by reference, the incorporated term is identified by its title, the provision or clause number assigned to it in the Postal Service Supplying Practices and its date. The text of incorporated terms may be found at http://www.usps.com/cpim/ftp/manuals/spp/spp.pdf. The following clauses are incorporated in this contract by reference: 1. B-9, Claims and Disputes 2. B-16, Suspensions and Delays 3. B-30, Permits and Responsibilities t. Shipping. The supplier must deliver goods that meet the prescribed physical limitations of the current U.S. Postal Service Domestic Mail Manual either by its own personnel/equipment or by use of the United States Postal Service, unless the contracting officer grants a waiver of this requirement. The supplier is responsible for ensuring that the packing and packaging are sufficient to protect the goods and ensure usability upon receipt.

2.2 Clause B-1 Definitions (March 2006) Tailored

As used in this contract, the following terms have the following meanings: Adjudication: The process of performance and liquidated damage assessment reconciliation between the Postal Service and the supplier. Airport Mail Facility (AMF)/Airport Mail Center (AMC): A Postal Service mail facility located on or adjacent to an airport which dispatches or receives mail to or from air or surface carriers of mail and is officially known as an Airport Mail Facility or Airport Mail Center. All-Inclusive Rate: Rate submitted by supplier as offer for services rendered. The all-inclusive rate should include ACMI, landing, parking, and ground handling. The all-inclusive rate for the HNL-MEM-HNL trip should include drayage from HNL to the terminal handling facility; ACMI; landing; parking; and ground handling. Block Hour Rate: The ACMI rate charged per block hour

Block Time: The time measured from when the aircraft wheels commence rotating at departure until the time the aircraft wheels stop rotating at arrival.

Cancellation fee: The rate charged if the Postal Service cancels a round-trip flight. (MEM-ANC-MEM, MEM-HNL-MEM, or MEM-SJU-MEM) Contracting Officer: The person executing this contract on behalf of the Postal Service and any other officer or employee who is a properly designated contracting officer; the term includes, except as otherwise provided in the contract, the authorized representative of a contracting officer acting within the limits of the authority conferred upon that person. Contracting Officer's Representative (COR): A person who acts within the limits of authority delegated by the contracting officer. Dedicated Aircraft: Aircraft that are for the exclusive use by the Postal Service during the period for which they are offered. Delivery: The delivery of all mail to the designated delivery point in accordance with contract requirements. The mail will be considered delivered with the arrival of the final piece of mail. Delivery Time: The latest time at which the supplier may deliver all the mail to the Postal Service destination. Designated Delivery Point: The physical location at which the contractor must deliver mail to the Postal Service or it's duly appointed agent. The designated delivery point is usually the Postal Service AMC/AMF. Designated Tender Point: The physical location at which the Postal Service (or its duly appointed agent) must tender mail to the contractor. The designated tender point is usually the Postal Service AMC/AMF. Excess Re-Procurement Costs: Any and all costs, fees, charges and expenses related to the purchase of service by the Postal Service that replaces non-provided service by the original contracted supplier that is greater than the contractual value of the service being replaced.

Ground Handling: All ground handling of mail, including unloading of mail from aircraft or ground vehicles, drayage, staging of mail, and loading of mail on receiving aircraft or ground vehicles. Intermediate Stop: The point of service, on multi-stop segments, between origin and hub or hub and destination. Line Haul: The air transportation of mail between origin and destination. Line Haul Supplier: A supplier who provides line haul services on one or more of the air segments defined in the Statement of Work. Loose Load Mail: Any mail sacks or parcels handled outside an airline container. The terms "Loose Sack Mail" and "Loose Bag Mail" are synonymous with "Loose Load Mail". Mail: United States or foreign mail and the containers in which it is tendered for transportation. The term includes supplies and empty mail transportation equipment of the U.S. Postal Service. National Operations Center: A centralized staffed control center located at the Postal Service Headquarters building with final authority on operations decisions. Overflow Mail: Any mail that cannot be loaded onto its intended flight due to space or weight limitations. Placard: A tag to be fixed to a container which describes the contents, weight, and destination of mail within the container. Priority Mail: First-Class Mail and First-Class zone rated (Priority) mail as defined in the U.S. Postal Service Domestic Mail Manual, Chapter 3, and Section 314. Protect Service: The ability or efforts of the supplier to provide similar, "like" or better service in response to their inability to provide the original agreed upon contracted service. Ramp Transfer: Movement of direct containers or loose mail from one aircraft to another without going through the sort facility

Segment: One leg of round trip air transportation (e.g., round trip: MEM-ANC-MEM; segment: MEM-ANC or ANC-MEM) Staging Mail: Holding mail in a secure area until it can be transported by the supplier or picked up by the Postal Service or another Postal Service supplier. Supplier: The person or persons, partnership, or corporation named as supplier in this contract. If the term contractor is used within this document, it is synonymous with the term supplier. Tender Time: The latest time at which the supplier is required to accept mail from the Postal Service at origin in accordance with contract requirements. Tender: The pick-up of mail assigned by the Postal Service to the supplier. 2.3 Payment - General

1. The supplier will be paid based upon certification of each round trip completed. Payment will be made at the fixed price all-inclusive rate offered by the supplier and accepted by the Postal Service. 2. Pay is determined based on service rendered at the applicable rate of pay. Payment will be available for distribution on Friday, three weeks after the period of performance. 3. Any amounts otherwise due the supplier are subject to adjustment for service not performed, irregularities, or for other reasons set out in the contract or allowed by law. Payments due the supplier also are subject to downward adjustment or withholding pursuant to Withholding of Payments. 4. Claims for compensation or adjustments must be made in writing by the supplier to the contracting officer within 60 days from completion of the performance of services upon which the claim is based.

5. The Postal Service will utilize the CORE system to process payments based on the cost component contracted by the ACMI supplier. 6. Payment shall be made by electronic funds transfer unless the supplier requests (and the Contracting Officer approves) payment by check. 7. The supplier will submit a detailed invoice for the amount of deicing fluid actually used in ANC and MEM for payment.

2.4 Clause B-15 Notice of Delay (March 2006) Tailored

1. Immediately upon becoming aware of any future conditions that might delay deliveries under this contract, the supplier will notify the National Operations Center via email. The email address will be provided to the supplier after award of the contract. The notification must identify the difficulties, the reasons for them, and the estimated period of delay anticipated. 2. The supplier is required to notify the appropriate local Postal Management official and the National Operations Center of any cancellation or delay in excess of 15 minutes that affects flights designated to transport mail via email, telephone and data entry into computer support system. Failure to give notice may preclude later consideration of any request for an extension of contract time.

2.5 Clause B-19 Excusable Delays (March 2006) Tailored

The supplier shall be liable for default, unless non-performance is caused by an act of God or the public enemy; fires; floods; epidemics; quarantine restrictions; strikes; unusually severe weather; and delays of common carriers. The supplier shall notify the contracting officer, in writing, as soon as it is reasonably possible after the commencement of any excusable delay, setting forth the full particulars in connection therewith, shall remedy such occurrence with all reasonable dispatch, and shall promptly give written notice to the contracting officer of the cessation of such occurrence.

2.6 Classification of Line Haul Irregularities:

The following classifications of irregularities (failure to operate according to schedule and failure to provide or complete service) are the most egregious to the Postal Service in accomplishing its mission. The damage caused from these irregularities result in actual damage and degradation to its brand, and therefore, is associated with liquidated damages as stated in Section 3.12. * Failure to Operate According to Schedule Failure by line haul supplier to depart or arrive at the agreed upon contract scheduled time as stated in the Service Schedule. * Failure to Provide or Complete Service Failure on the part of the line haul supplier to protect or complete service as stated in the Service Schedule. * Theft of Mail The theft of mail can cause immeasurable damage to the Postal Service, both in terms of actual economic loss to our customers and to the competitive standing of our products and services. The supplier will support law enforcement efforts to prevent theft of mail, and will support enforcement officials in the apprehension of those who may be perpetrating such crimes.

2.7 Liquidated Damages

The contracting officer and Network Operations Management will adjudicate all contract irregularities with the supplier within 30 days following the end of the period of performance. The deadline for adjudication may be extended if mutually agreed upon by both parties. Flights Departing from HNL Liquidated damages will be assessed at 50% of the ACMI segment rate (line haul) for any volume of mail that does not arrive at the delivery point in MEM by 12:40 P.M. Central Time (CT).

Flights Departing from ANC & SJU

Arriving Late to MEM Liquidated Damages 16 to 59 min. 10% of ACMI segment rate 1 - 1 hr. 59 min. 15% of ACMI segment rate 2 - 2 hrs. 59 min. 25% of ACMI segment rate Missing Memphis, TN FedEx Hub Sort 50% of ACMI segment rate

Flights Originating from Memphis, TN - All destinations

Arriving Late to destination Liquidated Damages 16 to 59 min. 10% of ACMI segment rate 1 - 1 hr. 59 min. 15% of ACMI segment rate 2 - 2 hrs. 59 min. 25% of ACMI segment rate 3 hrs. and greater 50% of ACMI segment rate

2.8 Failure to Provide or Complete Service

The line haul supplier will be given the first opportunity to protect service at no additional cost to the Postal Service. In the event that the supplier is unable or unwilling to protect service, the Postal Service will make provisions to provide substitute service. The supplier will be liable to the Postal Service for any and all excess re-procurement costs and fees above the value of the service that was replaced by the Postal Service. 2.9 Theft of Mail

In cases where a mail theft is committed by the supplier's or subcontractor's personnel, actual investigative costs to the US Postal Inspection Service and/or the Office of the Inspector General may be assessed as actual damages. These costs will be reasonably determined and may begin accruing only when a specific investigation begins on the basis of probable cause. The costs of routine surveillance not associated with a specific theft or series of thefts will not be assessed. In addition to allocable investigative expenses, the Postal Service may assess actual damages for loss of product value resulting from insurance claims where payouts to postal customers can be traced to the incident/s. Amounts for incidents as discussed in this paragraph shall not exceed $10,000.00. In addition to the above, in cases where mail theft occurs and it is determined that the supplier has failed to diligently follow the mail handling employee screening requirements set forth in the contract, the Postal Service may assess an administrative damage in the amount of $5,000.00. This is in lieu of actual administrative costs that would be associated with a complete audit of the supplier's adherence to the terms and conditions of the appropriate contract clauses and Statement of Work Depending upon the circumstances of the incident, the Vice President, Network Operations Management, in consultation with the Postal Inspection Service or Office of the Inspector General may determine that damages are not appropriate, and may waive a portion or all of the amounts that may otherwise be due the Postal Service. The Vice President, Network Operations will consider such factors as the airline's level of cooperation in investigations, implementing corrective actions, and efforts directed at loss recovery.

2.10 Repeated Irregularities

Repeat irregularities, with no or ineffectual attempts at correction, may result in contract termination for default.

2.11 Postal Service Employees Allowed Access

The contractor must allow postal officials showing proper credential access to all buildings, field areas, ground equipment being used to sort, stage or transport mail under this contract or under any subcontract services performed under this contract. 2.12 Repossession of Mail by the Postal Service

The Postal Service may at any time require the contractor to turn into the local AMC/AMF any or all of the mail in its possession at that location or may take possession of such mail from the contractor. 2.13 Clause B-75 Accountability of the Supplier (Non-Highway) (March 2006)

a. The supplier shall supervise its operations and the operations of its subcontractors which provide services under this contract personally or through representatives. The supplier or its supervising representatives must be easily accessible in the event of emergencies or interruptions in service. b. In all cases, the supplier shall be strictly liable to the Postal Service for the Postal Service's actual damages if mail is subject to loss, rifling, damage, wrong delivery, depredation, and other mistreatment while in the custody and control of the supplier or its subcontractors. The supplier shall also be accountable and answerable in damages for the faithful performance of all other obligations assumed under this contract, whether or not it has entrusted part or all of its performance to another, except for any failure to perform that is excused by the Excusable Delays clause of this contract. c. The supplier shall faithfully account for and deliver to the Postal Service all: 1. Mail, 2. Moneys, and 3. Other property of any kind belonging to or entrusted to the care of the Postal Service, that come into the possession of the supplier during the term of this contract. d. The supplier shall, promptly upon discovery, refund (i) any overpayment made by the Postal Service for service performed, or (ii) any payment made by the Postal Service for service not rendered. 2.14 Minimum Guarantee

The supplier will be guaranteed a minimum amount of work and corresponding payment equal to the round-trip cancellation fees for scheduled/optional flights. 2.15 Service Initiatives

Suppliers may also propose, and the Postal Service may accept, other strategic initiatives that would be mutually beneficial throughout the term of this contract. 2.16 Postal-Furnished Property or Services

1. In connection with service performance on this contract, the Postal Service may furnish certain property and/or equipment (such as air containers, tugs, or carts). If such equipment is furnished to the supplier, the appropriate COR and the supplier shall jointly inspect and inventory the items, and supply a copy of that inventory to the contracting officer if requested. The supplier will promptly notify the appropriate COR in writing in the event it is tendered defective equipment and put said equipment out of service pending corrective action. No property or services will be furnished by the Postal Service unless specifically provided for in this solicitation. If any Postal Service property is to be supplied, the terms will be specified in the contract Statement of Work or in the acceptance document. 2. The supplier assumes the risk of, and shall be responsible for, any loss or destruction of, or damage to any: a. Postal-furnished property listed above, or b. Other Postal property delivered to the supplier during performance of this contract. However, the supplier is not responsible for reasonable wear and tear to such property. The supplier will take promptly all measures necessary to remedy any loss, destruction, or damage to Postal-furnished and other Postal property that exceeds reasonable wear and tear, and c. The supplier assumes the risk of, and shall be responsible for, any loss or destruction of, or damage to, Postal Service (or its agencies) containers while they are in the custody and control of the supplier. However, the supplier is not responsible for reasonable wear and tear to such containers. The supplier will take all measures necessary to remedy any loss, destruction, or damage to postal containers that exceeds reasonable wear and tear.

2.17 Clause B-39 Indemnification (March 2006)

The supplier must save harmless and indemnify the Postal Service and its officers, agents, representatives, and employees from all claims, losses, damage, actions, causes of action, expenses, and/or liability resulting from, brought for, or on account of any personal injury or property damage received or sustained by any person, persons or property growing out of, occurring, or attributable to any work performed under or related to this contract, resulting in whole or in part from negligent acts or omissions of the supplier, any subcontractor, or any employee, agent, or representative of the supplier or any subcontractor.

2.18 Subcontracting Subcontracting portions of the service under this contract is permitted with contracting officer's approval as follows:

1. Line haul service may be subcontracted only with the contracting officer's prior approval. This applies to subcontracts between the contractor and subcontractors and subcontracts at any level between subcontractors and others for the contract services. The subcontractor must hold a valid FAA air carrier operating certificate issued under Part 121 of Title 14 of the Code of Federal Regulations. 2. Payment to any subcontractor shall be the responsibility of the prime contractor.

2.19 Clause B-77 Protection of the Mail (March 2006)

The supplier must protect and safeguard the mail from loss, theft, or damage while it is in the supplier's custody or control and prevent unauthorized persons from having access to the mail.

2.20 Clause B-78 Renewal (March 2006)

This contract may be renewed by mutual agreement of the parties.

2.21 Clause B-79: Forfeiture of Compensation (March 2006)

If the supplier fails to perform a trip, the supplier shall forfeit the compensation otherwise due for that trip. If the supplier fails to perform a trip, and such failure is due to the fault or negligence of the supplier or of its subcontractors, the supplier shall be liable for all damages actually suffered by the Postal Service by reason of such failure.

2.22 Clause B-80 -Laws and Regulations Applicable (March 2006)

This contract and the services performed under it are subject to all applicable federal, state and local laws and regulations. The supplier shall faithfully discharge all duties and obligations imposed by such laws and regulations, and shall obtain and pay for all permits, licenses, and other authorities required to perform this contract.

2.23 Clause B-81: Information or Access by Third Parties (May 2006)

The Postal Service retains exclusive authority to release any or all information about mail matter in the custody of the supplier and to permit access to that mail in the custody of the supplier. All requests by non-postal individuals (including employees of the supplier) for information about mail matter in the custody of the supplier or for access to mail in the custody of the supplier must be referred to the contracting officer or his or her designee.

2.24 Clause B-82 Access by Officials (March 2006)

The supplier shall deny access to the cargo compartment of a vehicle containing mail therein to Federal, state or local officials except at a postal facility and in the presence of a postal employee, unless to prevent damage to the vehicle or its contents. PART 3 ATTACHMENTS

Attachment 1: Service Schedules Attachment 2: Personnel Screening Attachment 3: Data Entry Attachment: Pricing Matrix

Link/URL: https://www.fbo.gov/spg/USPS/TP/NMTP/USPS_PEAK_AIR_DEC_2013/listing.html