U.S. Agency forInternational Development
Government Contracting for Transportation --Circumstances, Strategic Environment, Methods
• Foreign Aid in the National Interest: Department of State, USAID, Department of Defense
• Partners: Local institutions and organizations, contractors, grantees, PIOs
• History: Marshall Plan, Truman’s “Point Four,” FAA of 1961, as amended
• Budget: $20 Billion (Program Funding)• USAID Supports: Economic Growth, Agriculture,
Trade, Global Health, Democracy, Conflict Prevention, Humanitarian Assistance
• See the latest at www.usaid.gov• 1.5 million metric tons of food & 70 flights
Transportation Overview
Transportation Overview
• Partner Logistics: Contractors and Grantees• Washington Direct Logistics: Food for Peace and OFDA• Mission EXO Logistics: Household Effects and Vehicles• Supply Chain Management:
– Determine the Requirement and the Strategic Environment– Competitive Purchase of Goods and Services under the FAR– Manage Contracts– Transport the assets– Document Control & Ownership– Final distribution to beneficiaries
– Interdependence of SCM Functions
Transportation Overview
Transportation Overview
Food Aid Programs
USAID, USDA, PIOs, PVOs, IFBs/RFPs, Vendors, Rail, Truck, Ports, Carriers, Customs, Consignees, Warehouse, Distribution
Managers:
Policy, Program, Commodity, Contract, Legal, Transport, Logistics, Financial, Security, Distribution
Coordination of Responsibilities and Contract Performance Requirements and Terms
Disaster Assistance Programs
Embassies, DARTs, RMTs, PIOs, PVOs, IFBs/RFPs, Vendors, Trucks, Airports, Carriers, Customs, Consignees, Warehouse, Distribution
Strategic Environment and Interdependence
U.S. Agency for International Development
IFBs and RFPs for Commodities and Transportation Services (FAR Policies – Commercial Services)
Lowest Landed Cost – Commodity and Freight (Commodity Consolidations)
U.S.- Flag Cargo Preference – 50 or 75 or 100 percent
Commodity Vendors – FAS Vessel (Shipping Delivery Points)
PIOs and PVOs – Port to Port or Through Bills of Lading (Destinations)
Carriers – Private Sector Contracts and Direct Government Contracts (Fixed Price)
Local Trucking – PIO and PVO Arranged, or under Through Bills of Lading
Warehouse and Distribution Systems
**Transportation Terms / Possession Transfers / Title Transfers / Tracking
Food for Peace
Food for Peace
Foreign Disaster Assistance
IFBs and RFPs for Commodities and Transportation Services (FAR “Commercial Services”)
Federal Acquisition Regulations and Urgent Requirements (“Commercial Services”)
The FAR and USAID Market Surveys (Responsibility Determinations by the CO)
Commodity (Price) / Transport Services (Best Value) (Full Aircraft Loads)
Cargo Preferences: U.S.-Flag Vessels and Fly America Act
Commodity Vendors – Typically F.o.b. Origin ( Accurate Shipping Delivery Points & commodity dimensions and weights ! )
USG Requirement – Airport to Airport / Door to Door (Accurate Destination Delivery Terms)
Transportation Service Providers - Carriers – Direct Government Contracts (Fixed Price)
Customs Clearance Decisions and Terms (FAR Delivery Terms vs. INCOTERMS)
Warehouse and Distribution Systems, including inspection service contracts
**Transportation Terms / Possession Transfers / Title Transfers / Tracking and Control
Foreign Disaster Assistance
Typical OFDA Timeline
TransportRFP Issued at1600 Hours on
Tuesday
ProposalsReceived at
1100 Hours onWednesday
ContractAward at
1300 Hours onWednesday
CommodityPick-up at
0800 Hours onThursday
Intermodal Charter Air Transport Service (747, A330, IL-76)
Origin Point – Warehouse Door (Dubai)
Destination Point – Warehouse Door (Pakistan)
Charter Flight to Arrive Friday 0800 (local) in Pakistan
Transportation Terms
FAR Contracting:
Contracts for Trans. & Related Services
Transportation in Supply Contracts
*Air Transport by U.S.-Flag
*Ocean Transport by U.S.-Flag
47.2
47.3
47.4
47.5
FAR Parts 12, 13, and 15. (Commercial Services)
FF, storage, stevedores. Note subparts (b) and (c)*
(b) Except Air and Ocean; (c) With Modifications
Delivery Terms and Conditions (vs. INCOTERMS)
Guideline Rules: Comp. Gen. Decision B-138942
Dated 3/31/81. FAR 52.247-63
By Vessel. 50 or 75 or 100 percent requirement
Add MarAd regulations to the mix
What Does This Mean for Me?
Transportation within your Strategic Parameters:
Legislation, regulations, policies, distances, modes of transport – Can’t do much about these in the short term – Closing Skills Gap & Strategic Sourcing
Federal Cross Agency Priority Goals
Government Transport Warrant Officers - Apply the procurement regulations and recognize the possibilities
Consider your supply chain and analyze your objectives and the potential improvements over the short and medium term – Be aware of industry trends
Train individuals in the details of SCM – transport law, regulations, procurement, economic order quantities, JIT, shelf life and turn-over, the transport industry, modes, customs clearance, contracting for inland transport, quality and quantity controls, inspections, title transfers, insurance, distribution systems, warehouse operations, inventory management, SCM problem solving
Your people are your most important resources – Training is essential
Contact Information
John Abood
Team Leader / Contracting Officer
Phone: 202-567-4641
Email: [email protected]