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CONTRACT CLAUSES AND SOLICITATION PROVISIONS

TRANSPORTATION TRANSIT PRIVILEGE CREDITS (1968 JUN)

If the bidder (offeror) has established with regulated common carriers transit privileges which can be applied to the supplies when shipped from the original source, bidder (offeror) is invited to offer to utilize such credits to ship the supplies to the designated Government destinations under commercial bills of lading, paying all remaining transportation charges connected therewith, subject to reimbursement by the Government in an amount equal to the remaining charges but not exceeding the amount quoted by the bidder (offeror) below. Such shipments under paid commercial bills of lading will move for the account of and at the risk of the Government, after loading on carrier's equipment and acceptance by the carrier (unless, pursuant to the "Changes" clause, the office administering the contract directs use of Government bills of lading). The amount quoted below by the bidder (offeror) represents the transportation costs, in cents per 100 lb. (freight rate) for full carload/truckload shipments of the supplies from bidder's (offeror's) original source via his transit plant or point to the Government destination(s) listed below by the bidder (offeror), including the carrier's transit privilege, charge, less the applicable transit credit (i.e., the amount (rate) initially paid to the carrier for shipment from original source to bidder's transit plant or point). The rate per CWT quoted will be used by the Government to evaluate the offered f.o.b. origin price unless a lower rate is applicable on the date of bid opening (or closing date specified for receipt of proposals). To have his bid (offer) evaluated on this basis, bidder (offeror) must insert below the remaining transportation charges which he agrees to pay, including any transit charges, and which are subject to reimbursement by the Government, as explained in this provision, to destinations listed in the Schedule as follows:

RATE PER CWT IN CENTS
TO DESTINATION

7-2003.19 FOB Origin

(End of provision)

(With Differentials). In accordance with 2-201(a)Sec.B(xiii), insert the following provision.

F.O.B. ORIGIN (WITH DIFFERENTIALS)

Notwithstanding the f.o.b. origin delivery terms set forth in the "F.O.B. Origin" clause of the contract, it may be advantageous to the bidder (or offeror) to submit f.o.b. origin prices in the Schedule which include only the lowest cost to the Contractor of loading for shipment at his plant or most favorable shipping point. The cost beyond such plant or point of bringing to the place of delivery and loading, blocking, and bracing on the type vehicle specified by the Government at the time of shipment may exceed the bidder's (offeror's) lowest cost when he ships for his own account. Accordingly, bidders (or offerors) may indicate below a differential which, as explained below, may be added to the offered price, such differential to be expressed as a rate in cents for each 100 pounds (CWT) of the supplies for one or more of the options, under the clause entitled "F.O.B. Origin," which the Government may specify at the time of shipment. Such differential(s), if specified below, will be considered in the evaluation of bids (or proposals) to determine the lowest overall cost to the Government. If, at the time of shipment, the Government specifies (normally on a Government bill of lading) a mode of transportation, type of vehicle, or place of delivery for which the bidder (or offeror) has set forth a differential, the Contractor shall include the total of such differential costs (the applicable differential multiplied by the actual weight on the Government bill of lading), as a separate reimbursable item on his invoice for the supplies. Under this clause (F.O.B. Origin (With Differentials)), the Government shall have the option of performing or arranging at its own expense any transportation from Contractor's shipping plant or point to carrier's facility at the time of shipment and, whenever this option is exercised, no reimbursement shall be made by the Government based on a quoted differential. Bidder's (or offeror's) differential(s), if any, in cents for each 100 pounds for optional mode of transportation, types of vehicle, transportation within a mode, or place of delivery, specified by the Government at the time of shipment, and not included in the f.o.b. origin price indicated in the Schedule by the bidder (or offeror), is (are) as follows:

(carload, truckload, less-load.
wharf, flatcar, driveway, etc.)
(End of provision)

7-2003.19

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

7-2003.20 Evaluation of Export Bids (Or Proposals). In accordance with 2-201(a)Sec.B(xiv), insert the following provision.

EVALUATION OF EXPORT BIDS (OR PROPOSALS) (1968 JUN)

A. Port Handling and Ocean Charges. In evaluating bids (or proposals), port handling and ocean charges on file and published by the Military Traffic Management and Terminal Service as of the date of bid opening (or the closing date specified for receipt of proposals) and effective for the date of the expected initial shipment will be used.

B. F.O.B. Origin, Transportation Under Government Bill of Lading.

(1) Bids (or proposals) will be evaluated and awards made on the basis of the lowest laid down cost to the Government at the overseas port of discharge, via methods and ports compatible with required delivery dates and conditions affecting transportation known at the time of evaluation. Included in this evaluation, in addition to the f.o.b. origin price of the item, will be the inland transportation costs from the point of origin in the United States to the port of loading, port handling charges at the port of loading, and the ocean shipping costs from the United States port of loading to the overseas port of discharge (see D below). The Government may designate the mode of routing of shipment and may load from other than those ports specified for evaluation purposes.

(2) Bids (or proposals) will be evaluated on the basis of shipment through one of the ports set forth in paragraph D below, to the overseas port of discharge. Evaluation will be made on the basis of shipment through the port that will result in the lowest cost to the Government.

Ports of loading will be considered as destinations within the meaning of the term "f.o.b. destination" as that term is used in the "F.O.B. Origin" clause of this contract.

C. F.O.B. Port of Loading With Inspection and Acceptance at Origin.

(1) Bids (or proposals) will be evaluated on the basis of the lowest laid down cost to
the Government at the overseas port of discharge via methods compatible with
required delivery dates and conditions affecting transportation known at the time of
evaluation. Included in this evaluation, in addition to the price to the United States
port of loading (see (2) below), will be the port handling charges at the port of load-
ing and the ocean shipping cost from the port of loading to the overseas port of
discharge (see D below).

(2) Unless bids (or offers) are applicable only to f.o.b. origin delivery under Govern-
ment bills of lading (see B above), bidders (or offerors) must designate, below, at
least one of the ports of loading listed in paragraph D below, as their place of
delivery. Failure to designate at least one of the ports as the point to which delivery
will be made by the Contractor may render the bid (or offer) nonresponsive.
PLACE OF DELIVERY:

(Insert at least one of the ports listed in paragraph D below.)

D. Ports of Loading for Bid (or Proposal) Evaluation. Ports to be used by the Government in evaluating bids (or proposals) are as follows:

(Ports)

E. Ports of Loading Nominated by Bidder (Offeror). The above named ports of loading listed in D above are considered by the Government to be appropriate for this solicitation due to their compatibility with methods and facilities required to handle the cargo and types of vessels and to meet the required overseas delivery dates. Notwithstanding the foregoing, bidders (or offerors) may nominate additional ports of loading which the bidder (offeror) considers to be more favorable to the Government. The Government may disregard such nominated port(s) if, after considering the quantity and nature of the supplies concerned, the requisite cargo handling capability, the available sailings on U.S. Flag vessels, and other pertinent transportation factors, it determines that use of the nominated port(s) is not compatible with the

7-2003.20

ARMED SERVICES PROCUREMENT REGULATION

7:506

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

required overseas delivery date. United States Great Lakes ports of loading may be considered in the evaluation of bids (or offers) only for those items scheduled herein for delivery during the ice-free or navigable period as proclaimed by the authorities of the St. Lawrence Seaway (normal period is between 15 April and 30 November annually). All ports named, including those nominated by bidders (or offerors), and determined to be eligible as provided herein, will be considered in evaluating all bids (or proposals) received in order to establish the lowest laid down cost to the Government at the overseas port of discharge. All determinations will be based on availability of ocean services by United States Flag vessels only. Additional U.S. port(s) of loading nominated by bidder (or offeror), if any:

Bidder (or offeror) will indicate whether price(s) is (are) based on:

( ) Paragraph B, f.o.b. origin, transportation by GBL to port listed in D;

( ) Paragraph C, f.o.b. destination (i.e., a port listed in D);

( ) Paragraph E, f.o.b. origin, transportation by GBL to port

nominated in E; and/or

( ) Paragraph E, f.o.b. destination (i.e., a port nominated in E).

(End of provision)

7-2003.21 Eligibility for Preference as a Labor Surplus Concern. In accordance with 2–201(a)Sec.B(xv) or 3-501(b)Sec.B(xx), insert the following clause.

ELIGIBILITY FOR PREFERENCE AS A LABOR SURPLUS CONCERN (1978 JUN)

Each offeror desiring to be considered for award as a labor surplus area (LSA) concern on the set-aside portion of this procurement, specified elsewhere in the schedule, shall indicate below the address(es) where costs

incurred on account of manufacturing

or production (by offeror or first tier subcontractor) will amount to more than fifty percent (50%) of the contract price

Name of Company:

Street Address:

City/County:
State:

(If more than one location is to be used, list each location and the costs to be incurred at each, stated as a percentage of the contract price.)

CAUTION: Failure to list the location of manufacture or production and the percentage, if required, of cost to be incurred at each location will preclude consideration of the offeror as a LSA concern.

(End of clause)

7-2003.21

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

7-2003.22 Rated or Authorized Controlled Material Orders. Solicitations which will result in the placement of rated orders or authorized controlled material orders (see 1-307) shall contain the following provision.

RATED OR AUTHORIZED CONTROLLED MATERIAL ORDERS (1974 APR)

Contracts or purchase orders to be awarded as a result of this solicitation shall be assigned a [] DX rating; [] DO- rating; [] DMS allotment number (Contracting Officer check ap propriate box or boxes) In accordance with the provisions of DPS Regulation 1 and/or DMS Regulation 1.

(End of provision)

7-2003.23 Evaluation Factors for Award.

(a) Evaluation of Bids Subject to Economic Price Adjustment. In accordance with 2-201(a)Sec.D(ii), insert the following provision.

EVALUATION OF BIDS SUBJECT TO ECONOMIC PRICE ADJUSTMENT (1974 MAR)
Notwithstanding the provisions of the clause entitled ".

..", bids shall be evaluated on the basis of quoted prices without an amount for economic price adjustment being added. Bids which provide for a ceiling lower than that stipulated, if a ceiling is stipulated in the clause, will also be evaluated on this basis but any resultant award will be made at the lower ceiling. Bids which provide for adjustment that may exceed the maximum adjustment stipulated, if a maximum is stipulated in the clause, or which limit or delete the downward adjustment, if a downward adjustment is stipulated in the clause, shall be rejected as nonresponsive.

(End of provision)

*Insert the title of the clause providing for economic price adjustment.

(b) Evaluation of Multiple Awards. In accordance with 2-201(a)Sec.D(iii), insert the following provision.

EVALUATION OF BIDS FOR MULTIPLE AWARDS (1975 OCT)

In addition to other factors, bids will be evaluated on the basis of advantages or disadvantages to the Government that might result from making more than one award (multiple awards). For the purpose of making this evaluation, it will be assumed that the sum of $100 would be the administrative cost to the Government for issuing and administering each contract awarded under this invitation, and individual awards will be for the items and combinations of items which result in the lowest aggregate price to the Government, including such administrative costs.

(End of provision)

(c) Transit Arrangements. In accordance with 2-201(a)Sec.D(v), insert the following provision.

TRANSIT ARRANGEMENTS (1968 JUN)

The lowest appropriate common carrier transportation costs, including through transit rates and charges where applicable, from bidder's (or ofteror's) shipping points, via the transit point, to the ultimate destination will be used in evaluating bids (or proposals). Transit point(s) Destination(s)

(End of provision)

7-2003.23

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

(d) Evaluation—F.O.B. Origin. In accordance with 2-201(a)Sec.D(vi), insert the following provision.

EVALUATION-F.O.B. ORIGIN (1974 APR)

Land methods of transportation by regulated common carrier are normal means of transportation used by the Government for shipment within the United States (excluding Alaska and Hawaii). Accordingly, for the purpose of evaluating bids (or proposals), only such methods will be considered in establishing the cost of transportation between bidder's (or offeror's) shipping point and destination (tentative or firm, whichever is applicable), in the United States (excluding Alaska and Hawaii). Such transportation cost will be added to the bid (or proposal) price in determining the overall cost of the supplies to the Government. When tentative destinations are indicated, they will be used only for evaluation purposes, the Government having the right to utilize any other means of transportation or any other destination at the time of shipment.

(End of provision)

7-2003.24 Evaluation Factors for Award.

(a) Destination Unknown. In accordance with 2-201(a)Sec.D(vii), insert the following provision.

DESTINATION UNKNOWN (1968 JUN)

For the purpose of evaluating bids (or proposals), and for no other purpose, the final destination(s) for the supplies will be considered to be as follows:

(End of provision)

(b) F.O.B. Origin-Carload and Truckload Shipments. In accordance with 2-201(a)Sec. D(viii), insert the following provision.

F.O.B. ORIGIN-CARLOAD AND TRUCKLOAD SHIPMENTS (1968 JUN)

The Contractor agrees that shipment shall be made in carload or truckload lots when the quantity to be delivered to any one destination in any delivery period pursuant to the contract schedule of deliveries is sufficient to constitute a carload or truckload shipment, except as may otherwise be permitted or directed, in writing, by the Contracting Officer. For bid (or proposal) evaluation purposes, the agreed weight of a carload or truckload will be the highest applicable minimum weight which will result in the lowest freight rate (or per car charge) on file or published in common carrier tariffs or tenders as of the date of bid opening (or the closing date specified for receipt of proposals. For purposes of actual delivery, the agreed weight of a carload or truckload will be the highest applicable minimum weight which will result in the lowest freight rate (or per car charge) on file or published as of date of shipment. If the total weight of any scheduled quantity to a destination is less than the highest carload/truckload minimum weight used for bid (or proposal) evaluation, the Contractor agrees to ship such scheduled quantity in one shipment. The Contractor shall be liable to the Government for any increased costs to the Government resulting from failure to comply with the above requirements.

(End of provision)

(c) Shipping Point(s) Used in Evaluation of F.O.B. Origin Bids (or Proposals). In accordance with 2-201(a)Sec.D(ix), insert the following provision.

7-2003.24

ARMED SERVICES PROCUREMENT REGULATION

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