Sec. 343. Requirements for contracts relating to permanent change of station moving process
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For any renegotiation of the contract under the Global Household Goods Contract in place as of the date of the enactment of this Act, or negotiation of a new contract under the Global Household Goods Contract or any successor program or contract, the Secretary of Defense shall require that the following oversight mechanisms are included in the final contract agreement: The prime contractor shall submit to the Secretary a summary document outlining the key terms and conditions of each subcontract agreement related to capacity, performance, and compliance with the contract requirements, which shall include the following:
The guaranteed capacity of each subcontractor (including 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 requirements under the contract.
The prime contractor shall submit to the Secretary regular performance reports on its subcontractors, including metrics related to on-time pickup, on-time delivery, damage claim rates, customer satisfaction, and compliance with contract requirements. The prime contractor shall submit to the Secretary a subcontractor management plan outlining its processes for selecting, monitoring, and managing subcontractors, including a description of how the prime contractor ensures subcontractor compliance with all applicable laws, regulations, and contract requirements.
The prime contractor shall maintain a robust risk management plan that addresses potential disruptions to the subcontractor network, such as financial instability, natural disasters, or labor disputes. Not less frequently than monthly, 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 under the contract.
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 shall be permitted to audit subcontractor records with reasonable notice to the prime contractor. The contract shall incorporate a fixed-price contract line item number for monthly overhead, separating it from the rates associated with the costs of moves.
The prime contractor shall establish a database that the Secretary can access on a real-time basis to ensure compliance with this section. For any successor contract to the Global Household Goods Contract entered into after the date of the enactment of this Act, the Secretary shall consider, during development of an acquisition strategy and execution strategy, in addition to the requirements under subsection (a), the following: The incorporation of a fixed-price contract line item number for monthly overhead, separating it from the rates associated with the costs of moves.
Contracts under the Federal Acquisition Regulation for lanes that account for more than one percent of total permanent change of station move volume and tender of service contracts for the remaining lanes. Tiered incentive awards for higher levels of capacity. The establishment of a database that the Secretary can access on a real-time basis to ensure compliance with this section. The Secretary may incorporate any proposal of the prime contractor into a final contract negotiated or renegotiated under this section that ensures advertised performance capabilities are met.