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

U.S. Agency for International Development

No Title

• 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: JAbood@usaid.gov