Sec. 346. Oversight requirements for contracts relating to relocation logistics for household goods
569 words·~3 min read·
/bill/119/s/1071/enr/section-346·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Secretary of Defense shall ensure that any covered contract includes the following oversight requirements: The prime contractor shall submit to the Secretary a document summarizing the key terms and conditions of each subcontract relating to capacity, performance, or compliance with the requirements of the subcontract, which shall include the following: The guaranteed capacity of each subcontractor to perform the work required under the subcontract (including with respect to location, volume, and peak season commitment).
Performance metrics and service level agreements applicable to each subcontractor. Provisions for monitoring and enforcing subcontractor performance. Termination clauses and penalties for noncompliance. Data sharing and security requirements. Each subcontractor shall provide to the prime contractor, upon request, certifications and copies of training completion relating to compliance with the requirements under the subcontract. The prime contractor shall submit to the Secretary regular performance reports on each subcontractor, including metrics relating to on-time pickup, on-time delivery, damage claim rates, customer satisfaction, and compliance with the requirements of the subcontract.
The prime contractor shall submit to the Secretary a subcontractor management plan outlining the processes of the prime contractor for selecting, monitoring, and managing subcontractors, including a description of how the prime contractor ensures subcontractor compliance with applicable laws, regulations, and the requirements of the subcontract. The prime contractor shall maintain a comprehensive risk management plan that addresses potential disruptions to the performance of work by subcontractors of the prime contractor, such as financial instability, natural disasters, or labor disputes.
Not less frequently than on a monthly basis for the duration of the covered contract, the prime contractor shall submit to the Secretary the subcontractor rating system used by the prime contractor, with current scoring results under such system. The prime contractor shall submit to the Secretary the subcontractor rates for each move to be performed under the subcontract. The prime contractor shall establish clear escalation procedures for addressing subcontractor performance issues, including steps for resolving disputes, implementing corrective actions, and terminating non-performing subcontractors.
The Federal Government may audit subcontractor records with reasonable notice to the prime contractor. The covered contract shall include a fixed-price line item for monthly overhead costs, separate from the rates associated with the costs of individual moves performed under the covered contract. The prime contractor shall establish a database that the Secretary may access on a real-time basis to ensure compliance with this section. During the development of an acquisition strategy and execution strategy for any covered contract, the Secretary shall consider, in addition to the requirements under subsection (a), the following:
Entering into a single contract pursuant to the requirements of the Federal Acquisition Regulation if the move to be performed under such contract would involve the use of a shipping lane that accounts for more than one percent of the total volume of permanent change of station moves and entering into a services contract if the move to be performed under such contract would not involve the use of such a lane. Tiered incentive awards for higher levels of capacity. In this section, the term covered contract — means a contract with an entity that provides relocation logistics for the household goods of members of the Armed Forces undergoing a permanent change of station (commonly referred to as a single move manager ); and does not include a contract or other agreement for the relocation of a private vehicle owned or leased by a member of the Armed Forces.