MARKET FRESH

, packaging
characteristics, unit of issue, and unit price.
A. Catalog Maintenance
1. New Items
(a) If a customer seeks to order a Milk and/or Dairy item that is not a part of the catalog after the customers'
ordering period commences (i.e. post “start-up” period), the Contractor will be afforded a maximum of 10
days to source the item and have the item added to the ordering catalog. The final step prior to the item
being “live” on the catalog is for the Contracting Officer to determine the item's price “fair and reasonable.”
Once this is complete, the item should remain constant within the contractor's inventory, subject to
availability issues. When requesting all item approvals (including new additions and/or changes to an
existing item, such as pack size, etc.) with the Contracting Officer, the Contractor shall use the “Request for
New Item” Form (Attachment 2). This form is mandatory and without it, no new items or changes to
existing items will be processed by the Contracting Officer.
2. Catalog Pricing
(a) Schedule of Items Pricing: Items priced in the Schedule of Items (see Attachment 1) will be included in
the ordering catalog following award. Schedule of Items will be determined fair and reasonable prior to
award.
(b) Contractor-Requested Catalog Price Changes: Upon award, all items included in the Solicitation's
Schedule of Items that ultimately are included in the ordering catalogs have been deemed “fair and
reasonable” from a pricing standpoint by the Contracting Officer.
(c) Contractor-Requested Catalog Additions: Before an item is added to the catalog, the Contractor is
required to submit to the Contracting Officer the “Request for New Item” Form as previously addressed
(see Attachment 2). Said request shall include the stock number, Government item description including
the quality grade of the item (if applicable), proposed unit price with a corresponding supplier invoice or
quote (quotes permitted in very limited circumstances as approved by the Contracting Officer; e.g.
Contractor never purchased item before. The Contracting Officer will review the catalog addition request
and upon determining the price fair and reasonable will contact the Contractor to indicate acceptance.
The item once accepted will be added by the Contracting Officer to the catalog. Should the proposed price
fail to be determined “fair and reasonable,” the Contracting Officer will conduct negotiations with the
Contractor. If, after negotiations, the proposed price still cannot be determined “fair and reasonable,” the
item will not be added to the catalog.
(d) Pricing Requirements: The Contractor's catalog prices, as awarded, constitute the initial catalog prices.
The prices shall remain in effect for all subsequent ordering periods except as otherwise adjusted in
accordance with the EPA provision.
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VII. ECONOMIC PRICE ADJUSTMENT (EPA) ESTABLISHED MARKET PRICE MILK
A. To the extent that contingent cost increases are provided for by this clause, the Contractor warrants that prices
included in the contract do not include any amount to protect against such contingent cost increases.
B. This EPA clause applies to skim milk and butterfat fluid milk products classified as class I milk only (i.e., whole
milk, fat-free milk, low fat milk, light milk, reduced fat milk, milk drinks, eggnog and cultured buttermilk, including
any such beverage products that are flavored, cultured, modified with added nonfat milk solids, sterilized,
concentrated, or reconstituted. As used in this paragraph, the term concentrated milk means milk that contains
not less than 25.5 percent, and not more than 50 percent, total milk solids). Any package sizes other than gallons
will be pro-rated based upon the price adjustment per gallon.
C. Class I milk, as described in this clause, is subject to the regulations of the United States Department of
Agriculture under the Federal milk marketing orders.
D. The economic indicator for the purpose of prospective adjustments to contract prices under this clause shall be
the Class I price [(base skim milk price for Class I times 0.965) plus (advanced butterfat pricing factor times 3.5)] in
the announcement of advanced prices and pricing factors released by the U.S. Department of Agriculture,
Agricultural Marketing Service, dairy programs. The announcement is released on the Friday before the 23rd of
the month unless the 23rd of the month falls on a Friday in which case, Friday the 23rd will be the release date.
E. Price adjustments shall be based on the following:
(1) The "base price" for the purpose of the initial adjustment calculation under this clause shall be the
current month price of the economic indicator in effect at (i) the closing date for proposals, if no discussions are
held, or (ii) the due date for final proposal revisions, if discussions are held. The "base price" for each subsequent
monthly adjustment calculation shall be the adjusted price from the previous month.
(2) The "adjusting price" shall be the monthly price of the economic indicator released following the month
used to determine the "base price".
F. For the purpose of price adjustments pursuant to this clause:
(1) Adjustments will be made in increments of $0.01 per gallon when and only when the change per gallon
in either direction is equal to or greater than +/-$0.0100.
(2) Adjustments in excess of $0.0100 per gallon and in excess of $0.0050 for units other than a gallon (i.e.,
half gallon, quart, pint and half pint) will be rounded to two decimal places to accommodate systems
requirements of the subsistence total order receipt electronic system (STORES), as follows:
$0.0050 to $0.0099 = $0.01
$0.0100 to $0.0149 = $0.01
$0.0150 to $0.0199 = $0.02
$0.0200 to $0.0249 = $0.02
$0.0250 to $0.0299 = $0.03,
etc.
(3) One hundred weight (CWT) as used in the price of the economic indicator equates to 11.63 gallons of
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milk deliverable under this contract.
G. Promptly following release of the announcement of advanced prices and pricing factors applicable to the
following month, the Contracting Officer shall compute the adjustments, if any, to the current contract prices for
the purpose of determining any revised prices applicable to orders for the next month in the manner detailed
below:
(1) Compute adjusting price.
(2) Compute base price.
(3) Compute change from base price.
(4) Convert the price change to price per gallon.
(5) Compute price change for other units other than a gallon.
(6) Round price adjustment(s) from lines (4) and (5) to nearest $0.01 increment (see paragraph (f)
(2)).
(7) Compute adjusted contract unit price(s). The following sample price computation is an
illustration using January as the base price and February as the adjusting price.
(a) Adjusting price Base skim milk price for Class I $7.72 CWT X 0.965 $ 7.4498 Advanced butterfat pricing factor
$0.9302 LB X 3.5 $ 3.2557 Class I Price $10.7055
(b) Base price base skim milk Price for Class I $7.72 CWT X 0.965 $ 7.4498 Advanced butterfat pricing factor
$0.9854 LB X 3.5 $ 3.4489 Class I Price $10.8987
(c) Change from base price per CWT ($0.1932)
(d) Price change per gallon Line (3) divide by 11.63 gallons/cwt ($0.0166)
(e) Price change per half gallon ($0.0083) Price change per quart ($0.0042) Price change per pint ($0.0021) Price
change per half pint ($0.0010)
(f) Price adjustment per gallon ($0.02) Price adjustment per half gallon ($0.01) Price change per quart $0.00 Price
change per pint $0.00 Price change per half pint $0.00
(g) Adjusted contract unit price Item per gallon (current unit price $0.02) Item per half gallon (current unit price
$0.01) Item per quart (No adjustment) Item per pint (No adjustment) Item per half pint (No adjustment)
H. Revised prices will become effective on the 1st Sunday of the next month and will remain in effect until the
next price change occurs. I. Price adjustments pursuant to this clause will not be made by separate contract
modifications. Adjustments will be implemented by the government as follows, and these actions shall constitute
a modification to the contract:
(1) The adjusted contract unit price(s) for the following month will be input in STORES,
(2) A facsimile transmission will be sent to Contractors who do not have electronic access, and
(3) The calculations used to derive the adjusted contract unit price(s) for the following month will
be posted on the Internet.
J. The aggregate of the increases in any contract unit price under this clause shall not exceed 30% of the original
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contract unit price. The original contract unit price is the price in effect on the date of award. If at any time during
the term of the contract, a proposed economic price adjustment will exceed this ceiling, the Government reserves
the right to raise this ceiling where changes in market conditions during the contract period support an increase.
There is no percentage limitation on the amount of downward adjustments that may be made under this clause.
K. In the event publication of the economic indicator is discontinued or its method of calculation substantially
altered so that it no longer reflects market prices, the parties shall mutually agree upon an appropriate substitute
for price adjustment(s) under this clause.
(1) Any dispute arising under this clause is subject to the "disputes" clause of the contract.
VIII. BUY AMERICAN ACT
A. The Buy American Act, contained in Federal Acquisition Regulation (“FAR”) 52.225-1 and included in this
solicitation, is applicable. This regulation mandates that all food items, including milk and dairy items, provided
under the instant solicitation and resulting contracts be produced and manufactured in the United States.
IX. ADDITION OF NEW CUSTOMERS
A. Adding Customers within the Contract's Geographic Distribution Region/Zone:
1. After contract award, there may be instances when new customers request support of their fresh milk
and dairy requirements. Additional DoD and/or Non-DoD federal government customers that request DLA
Troop Support fresh milk and dairy support may be added to the contract without any new acquisition or
competition process, if the customer(s) is/are within the geographic distribution region/zone covered by
this contract.
2. The decision as to whether a potentially new customer is within the contract region or zone and, thus,
will be added to the contract without further competition and at the existing contract prices, shall be the
sole decision of the DLA Troop Support Contracting Officer.
3. Pursuant to the above, the Contracting Officer will instruct the contractor to include the customer(s) at
the effective contract prices applicable to that distribution zone/region.
B. Under no circumstance may the resulting contract's maximum dollar value be exceeded with the addition of
any customer(s) and its respective milk and dairy requirements.
X. CUSTOMER SERVICE
A. The contractor(s) shall treat each of the customers covered under the contract as one of its best customers.
Therefore, any treatment and/or customer service policy given to other essential accounts shall also be given to
the customers covered under the resulted contract.
B. Troop and other customers conduct periodic food menu boards and similar meetings that the Contractor may
be required to attend. At these meetings, the customers typically review their internal business practices and may
request that the Contractor show new products and/or provide nutritional information.
XI. ORDERING SYSTEMS
A. Subsistence Total Order & Receipt Electronic System (“STORES”): DoD customers will order using the STORES
catalog as applicable.
1. Accessed via the Internet, STORES is the Government's translator/ordering system that is capable of
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accepting orders from any of the Services', i.e. Army, Air Force, Navy, or Marines, individual ordering
systems and translating them into an Electronic Data Interchange (“EDI”) format. In addition, this
information is passed to DLA Troop Support for the purposes of contractor payment and customer billing.
2. Customers will be able to order all of their requirements through STORES. The system will transmit
orders to the Contractor and DLA-Troop Support.
3. The Contractor is required to interface with STORES and must be able to support the following EDI
transactions:
810 Electronic Invoice
820 Payment Voucher Information
Note: A complete description of these transaction sets is included in the “EDI Implementation Guidelines”
and can be found at http://www.dla.mil/TroopSupport/Subsistence/Doing-Business-with-Sub/STORES/,
click STORES and EDI Requirements.
4. The Contractor shall have access to the Internet and be able to send and receive electronic mail (email).
5. Unit prices must be formatted not more than two (2) places to the right of the decimal point in all
ordering catalogs. Standard rounding methods must be applied. For example, a price of $2.215 or higher
must be rounded up to $2.22 and a price of $2.214 or lower must be rounded down to $2.21.
6. Contractors are required to utilize the Government's item descriptions on all invoices, delivery tickets to
the customer, and 810 invoice.
7. The Contractor will utilize the DLA Troop Support invoice reconciliation process, or other such systems
as may become available, to the maximum extent, towards the goal of correcting invoices early and
facilitating the payment process.
8. In the event the STORES system or the Contractor's interface is not operational, the Contractor must
provide alternate ways for the customer to order (e.g., by fax by phone, pick up orders, etc.)
9. Public Key Infrastructure (“PKI”)/ External Certificate Authorities (“ECA”) Certificates: The Department of
Defense (“DoD”) PKI Certificate will be required for all DoD users. A DoD PKI certificate will be required for
all contractors. The requirement for PKI certificates is implemented in accordance with DoD security policy
promoting secure electronic transactions.
(a) Obtaining a PKI certificate:
(i) Contractors who do not work on-site at a Department of Defense facility may purchase a
DoD PKI certificate from one of three External Certificate Authorities (“ECAs”). The ECAs are
vendors who provide digital certificates to DoD's industry partners who are using their own
equipment or working in non-Governmental facilities. Certificate prices range from $99
$179 per certificate per year, with volume discounts at some ECAs. A list of ECAs is available
at the following web address: https://www.transactionservices.dla.mil/daashome/
pkicontacts.asp
(ii) Each contractor must fully comply with the DoD requirement to implement PKI in order
for our information systems to remain secure and viable.
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XII. ORDER PLACEMENT and ADJUSTMENTS/CANCELLATION OF ORDERS
A. The minimum order requirement for any resultant contract is $100.00. This requirement shall be based on the
aggregate total of orders for a specific delivery date to all customers located within a particular military base or
delivery location.
B. Customers shall place orders via STORES to accommodate at a minimum a 2-day lead time, i.e “skip day”
delivery. For example, an order placed on Monday, September 1st would have a required delivery date of
Wednesday, September 3rd. Orders shall generally be sent by the customer no later than 10:00 a.m. to allow the
vendor to receive order the same business day. However, a customer may decide to place an order with a longer
lead-time for delivery, except as noted under the “Holidays” subsection under the “Deliveries and Performance”
section of this Solicitation.
C. Once submitted through the applicable electronic ordering system (STORES), an order may be cancelled by a
customer up to 24 hours before scheduled delivery via written notification to the Contractor and the Contracting
Officer. Within less than 24 hours from delivery, an order may be cancelled by mutual agreement between the
customer and the Contractor. In the event of an act of God, such as extreme weather, the specific situation
regarding a cancelled delivery will be dealt with in an equitable manner by the Contracting Officer, who has the
ultimate authority and discretion to resolve said issues. (SKIP DAY)
D. Adjustments For procedures discussing adjustments to order, refer to Attachment 4 (STORES manual).
XIII. ITEM AVAILABILITY
A. Contractors must have the ability to provide to the customers a range of milk and dairy items in sufficient
quantities to fill all customer requirements and maintain the overall 98% contract fill rate. All supplies shall be
delivered on a “fill or kill” per line item basis (i.e. If a Contractor cannot fill a line item, the line item dies). Therefore,
item substitutions are not authorized.
C. The vendor should notify the customer, same day and no later than 24 hours after order placement, of the non
availability of an item. The vendor must provide an alternative already listed on the catalog. The vendor must
provide the customer with ample time to re-submit an order of an alternative item(s) before the Required Delivery
Date. Assuming the proper procedure is followed, this circumstance (i.e. replacement of a NIS item with a separate
order for another catalog item) will not negatively impact a contractor's fill rate.
XIV. PACKAGING, PACKING, LABELING, AND MARKINGS
A. All packaging and packaging shall be in accordance with good commercial practice. Labeling shall be in
accordance with commercial labeling complying with the Federal Food, Drug and Cosmetic Act and regulations
promulgated there under. Shipping containers shall comply with the National Motor Freight Classification and
Uniform Freight Classification Code.
B. All items must be identified with readable dates (open code dates), coded dates.
C. Protection during inclement weather is required. All products that are susceptible and sensitive to temperature
must be protected by any means to prevent damage.
XV. DELIVERY NSN/Part Number: 14153SEESOW