Questions on Revised Brand Name Resale Ordering Agreement (ROA) - Oct 2012
1.
Page 3, Resale Ordering Agreement (ROA) , 3rd paragraph, sentence reads as follows:
In order for an item to be on a CMF, it must be presented on DeCA Form 40-15, New Item & File
Maintenance Form, and approved by the Marketing Business Unit or Regional Merchandising personnel.
Question: Need to list what version of the 40-15 should be used.
Answer: Vendors must use the latest version of the DeCAF 40-15 found on DeCA’s website,
https://www.commissaries.com/business/brandname_resale.cfm. Once on the Brand name Resale
Products page, click on “presentations to DeCA for New Items, Promotions, and File Maintenance
Requests Spreadsheet.
2.
Page 3, Resale Ordering Agreement (ROA) , 4th paragraph, sentence reads as follows:
The Contractor must stipulate where their products are available and at what prices based on DeCA’s
Price Zones worldwide.
Question: Need to include map of pricing zones.
Answer: This can be found under commissaries.com, About Us, Contracting, Systems
Information Technology, then EDI Pricing Zones.
https://www.commissaries.com/business/documents/EDI_PriceZonesDODAACs.pdf
3. Page 3, Brand Name, 3rd sentence reads:
In determining whether a brand-name commercial item is regularly sold outside of commissary stores,
only sales of the item on a regional or national basis by commercial grocery or other retail operations
consisting of multiple stores, shall be considered.
Question 1: Need to define what are “other retail operations”. Is this drug stores, specialty
shops, etc., also is this operation within an operation or several operations. For example is this several
stores within one chain or several chains? In addition, is there a specific number of stores or chains that
must be met or is it just more than one? Lastly is local acceptable in addition to regional and national?
Answer 1: A commercial or retail operation is one that regularly sells its products to the public
at large, generally in small quantities, as opposed to wholesale. There are some commercial ventures
that advertise themselves as "warehouse outlets" or "wholesale outlets" (i.e. COSTCO, SAM's Club, Rack
and Sack) but are in essence retails operations. The statute requires that the item be regularly sold as a
brand name outside of the commissary, that the sales are on a regional or national basis and by a
commercial grocery store or other retail operations consisting of multiple stores (2 or more).
Regional sales can mean large regional areas, the Shenandoah Valley, midsize areas, the Tidewater area,
and smaller localized areas, the Tri-Cities or the Richmond metro area. Additionally, a manufacturer
could sell his product as a brand name through specialized retail outlets (two or more stores) (Honey
Baked Hams, Baskin-Robbins, GNC). These types of products would qualify as brand name items, eligible
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to be sold in the commissary. However, the Department of Defense has specifically excluded
“convenience” stores from the definition of commercial grocery store or other retail operations, so items
only sold through a 7-11 or gas station food mart would not qualify under this exception.
A nationally or regional known brand selling door to door, by delivery by truck, mail order catalog or
internet (only items sold exclusively by mail order or internet, no retail store location is in existence) , or
by gift packs would not qualify as a brand name item because the product is not sold in a commercial
grocery or other retail operations consisting of multiple stores. Nor would a national or regional grocery
chain’s private label or house brand products or items be considered a brand name because they are
private labels. For example, Safeway, Giant, Kroger, Martin’s brand green beans these are not
considered brand name products, these items are private label and do not meet the definition of brand
name items.
Once the product or item meets the definition of a Brand Name product or item, it is simply eligible to be
sold in the commissary. The decision whether the product or item will or will not be carried by the
commissary is the responsibility of the DeCA Sales Directorate. The DeCA Sales Directorate makes a
determination of which products or items will or should be placed on the shelf based upon category
management principles, which include market research, customer demand and preference, sales volume
and other marketing factors.
Question 2: To compare items to what is being sold in retail is the UPC or nomenclature used?
Answer 2: In comparing whether the commercial item is regularly sold outside of commissary
stores, it is compared based on the UPC sold in retail, not the nomenclature.
4.
Page 4, Computer Assisted Ordering (CAO), entire paragraph reads:
COMPUTER ASSISTED ORDERING (CAO): CAO is an automated order forecasting and generation system
that utilizes historical sales data, limited human intervention, and seeks to achieve management of a
Just-In-Time inventory. CAO is used to order products classified under the Frequent Delivery System
(FDS). Stores must have an FDS delivery at least once a week in order to utilize the CAO system. CAO
uses three factors to forecast an order. First and foremost is Balance on Hand (number of units on the
shelf plus what is in the backroom); the second is Shelf Max (the maximum number of units of an item
that will fit within its allocated shelf space); the third is sales history (there is an algorithm used to
account for various factors influencing daily demand such as day of the week, paydays versus nonpaydays, and promotional sales). When CAO system generates an order, the system also considers the
amount of lead-time between when the order is created, when the order will be delivered, and the
number of sales days the order is expected to cover.
Question: How do you know if your items are going to be in CAO or not?
Answer: CAO is used to order products classified under FDS type delivery only. Stores must have
an FDS delivery at least once a week in order to utilize the CAO system. All FDS items are available for
CAO ordering. It is decided by each store what items they would like to activated for CAO. Most stores
have 97-98% activation of their FDS items. The other 2-3% are front end items, i.e., candy; j-hook items,
i.e., skilcraft.
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5. Page 4, Frequent Delivery Systems (FDS), entire paragraph reads:
FREQUENT DELIVERY SYSTEM (FDS): A system under which the product is delivered to the commissary
or a designated port of embarkation for overseas shipments on a predetermined frequency. The
product is electronically ordered from DeCA’s approved distributors and delivered based on the
required delivery date. Under this method of delivery two billing options are available (also referred to
as rollup) - semimonthly or weekly rollups.
Question: Who decides on billing options in FDS and who decides if your items are going to be in
FDS or not?
Answer: Billing options are decided by the vendor. DeCA’s encourages/prefers the vendor to use
semimonthly billings/rollups as it is more efficient and cost effective for the DeCA Accounting Office and
vendors. Delivery methods are decided by the vendor.
6. Page 4, Direct Store Delivery (DSD), entire paragraph reads:
DIRECT STORE DELIVERY (DSD): The delivery of product by the supplier/vendor directly to the
commissary shelf. Order quantities of product are usually determined at time of delivery, based on
visual review of inventory. Under this method of delivery two billing options are available (also referred
to as rollup) - semimonthly or weekly rollups.
Question: Who decides if your items are going into DSD?
Answer: Delivery methods are decided by the vendor, except for items that are traditionally DSD
delivery such bread, chips, milk, pepsi, coke, etc.
7.
Page 4, Direct Store Delivery – Single Order (DSD-S), entire paragraph reads:
DIRECT STORE DELIVERY - SINGLE ORDER (DSD-S): The delivery of product directly to the commissary.
The quantities are determined and orders are placed directly with the manufacturer/vendor several
days prior to its delivery. Billing for this method of delivery is on a per call and delivery basis.
Question: Who decides if your items are going into DSD-S?
Answer: Delivery methods are decided by the vendor, except for items that are traditionally
DSD-S delivery such chicken, meat (delivered to in CONUS stores), etc.
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8. Page 5, Fill Rates, entire paragraph reads:
FILL RATES: The fill rate percentage will be determined by reviewing quantities of items ordered against
the quantities delivered to stores by the Manufacturer’s FDS distributors (total cases reflected on the
856 divided by the total cases reflected on the 857, minus total invalid cases on the 857.)
Question: Why is only cases being used, being shorted line items is a more important number.
Answer: The number of cases gives DeCA a truer picture of lost sales than the number of items.
(Note: In the definition for Fill Rate, the number 857 was transposed. The correct number is 875.)
9. Page 5, Global Trade Identification Number (GTIN) , entire paragraph reads:
GLOBAL TRADE IDENTIFICATION NUMBER (GTIN): Is an identifier for trade items developed by GS1
(comprising among others of the former EAN International and Uniform Code Council). Such identifiers
are used to look up product information in a database (often by inputting the number through a bar
code scanner pointed at an actual product) which may belong to a retailer, manufacturer, collector,
researcher, or other entity. The uniqueness and universality of the identifier is useful in establishing
which product in one database corresponds to which product in another database, especially across
organizational boundaries.
Question: Is a GTIN or UPC required?
Answer: When submitting to DeCA any information on line items (i.e., 40-15s, file maintenance
requests, etc.), vendors must furnish both a GTIN and a UPC number.
10. Page 6, Guaranteed Sales, entire paragraph reads:
GUARANTEED SALES: If the Guaranteed Sales block is checked on the DeCAF 40-15, the Contractor will
guarantee that the items listed on the DeCAF 40-15 will sell in DeCA commissaries in a period of time
agreed upon by the Contractor and DeCA. If the items fail to sell in the commissaries, the Contractor
agrees to reimburse DeCA for all unsold items at the price at which they were purchased. DeCA
encourages suppliers to mark down and/or use instant redeemable coupons to facilitate sale of the
products, if necessary.
Question 1: Is guaranteed sale required or will your products be looked at less positively that if
guaranteed sale?
Answer 1: The buyer will make the determination if a product is guaranteed sale when product
is presented. DeCA’s preference is to have products offered as guaranteed sales.
Question 2: Guaranteed Sales states if the block is checked on the DeCAF 40-15 which is the new
item form. They do not refer to the 40-16 promotional form that also has a Guaranteed Sale box. I
checked with the MA’s in the Dallas office and they always check the Guaranteed Sale box on both the
40-15 and the 40-16 as well as the Case Lot form 40-18.
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Answer 2: With DeCAF 40-16 and DeCAF 40-18 forms being fairly new, it was an oversight by
DeCA and was not incorporated in the Guaranteed Sales definition. To clarify, Guaranteed Sales applies
to DeCAF 40-15, DeCAF 40-16 and DeCAF 40-18. This will be addressed under another correspondence.
Question 3: The contractor will guarantee that the items listed on the 40-15 will sell in DeCA
commissaries in a period of time agreed upon by the Contractor and DeCA. Is the period of time defined
as the shelf life or some other measure?
Answer 3: Guaranteed Sales can be defined by using shelf life, as well as, using other measures
depending on the commodities. Perishable items are generally defined by shelf life, while other nonperishable items may be defined based on item/case movement, agreed upon specified time by both
parties, or traditional holiday selling time periods for items such as, Valentine's Day and Easter candies,
etc.
Question 4: In the past, if a pallet did not get moved into the chilled box, it was DeCA’s liability
not the Contractor. If an item is guaranteed, these types of situations could be interpreted as the
contractor’s problem. Cold chain management is the responsibility of DeCA after the product is delivered
we believe.
Answer 4: As the question states above, cold chain management is the responsibility of DeCA
after the product is delivered.
Question 5: Act of God; such as a hurricane where the store is closed and frozen/chill items are
lost, it was always DeCA’s liability. Based on this clause the way it is written, it assumes the Contractor is
liable.
Answer 5: Acts of God are actions beyond DeCA's or the Vendor's control. Therefore, if the
product was delivered and received by the store, and the store lost power due to Acts of God, then the
Government will be responsible for the lost. If the store is closed and no delivery could be made, then
DeCA will not be responsible for any undelivered product.
Question 6: If the power is lost in a store and the Vet says the product is not fit to sell, again this
was never the contractors responsibly but again based on the clause, does it again assume the
Contractor is liable or DeCA.
Answer 6: If power is lost, by no fault of the contractor, then the Government (DeCA) is
responsible. If the contractor was at fault, i.e., disconnecting the power for their use, such as demos, etc.
(intentionally or unintentionally), the contractor is responsible for the loss.
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11. Page 7, Perishable Agricultural Commodity (Produce), entire paragraph reads:
October 2012 – PERISHABLE AGRICULTURAL COMMODITY (PRODUCE): Basic definition is contained in
Section 1(4) of the Perishable Agricultural Commodities Act of 1930 (7 U.S.C. 499a(4)). The term means
any of the following, whether or not frozen or packed in ice: fresh fruits and fresh vegetables of every
kind and character; and includes cherries in brine.
Question: Are there other inclusions or exceptions to the Perishable Agricultural Commodity
Act?
Answer: DeCA is not aware of any inclusions or exceptions.
12. Page 7, Prompt Payment Commodities, Baked Goods, entire paragraph reads:
PROMPT PAYMENT COMMODITIES:
BAKED GOODS: The term "Baked Goods" means perishable, fresh bakery products with a shelf
life of 15 days or less, including all fresh bread and bread-type rolls and buns, fresh cakes, pies, pastries,
and other similar perishable bakery products, such as tarts, doughnuts, cookies, sweet rolls/buns,
muffins, croissants, bagels, tortillas, and biscuits (baking powder and raised). Also included are
prepackaged snack cakes, snack pies, snack doughnuts; and partially cooked fresh bakery products such
as brown and serve rolls. Excluded are "dry" products such as crackers, pretzels, prepackaged cookies,
bread crumbs, cones, cereals, and breakfast bars. Also excluded are all frozen bakery products,
refrigerated canned biscuits or canned sweet rolls, and refrigerated or frozen dough.
Question 1: From what is listed, then if an item is made from scratch with mainly dry ingredients
then is it or is it not covered under the prompt payment requirements?
Answer 1: The verbiage for prompt payment commodities only refer to end products and not
ingredients within a product. This segment specifies the types of products that are under prompt
payment and the products that are not included.
13. Page 7 and 8, DAIRY PRODUCTS, EDIBLE FATS OR OILS, AND FOOD PRODUCTS PREPARED
FROM EDIBLE FATS AND OILS; MEAT, POULTRY MEAT, MEAT FOOD PRODUCTS, POULTRY
MEAT FOOD PRODUCTS, EGGS, EGG FOOD PRODUCTS, AND FRESH OR FROZEN FISH; and
PERISHABLE AGRICULTURAL COMMODITY (PRODUCE):
Question: What are the times for the different products covered under the Prompt Payment
requirement?
Answer: Prompt Payments are as follows: Baked Goods – net 10, Dairy Products – net 10, Meat
Products – net 7, and Produce – net 10
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14. Page 9, Vendor Stocking, paragraph reads:
VENDOR STOCKING:
a.
Stocker:
The act of maintaining specified retail items available for display and sale in commissaries for customer
purchase. Vendor Stockers are normally hired by either brokers or manufacturers to perform the stocking
function within the store. Vendor Stockers are required to follow the DeCA written policy and specific
guidelines applicable to store level contractors working within DeCA facilities. Only products in
specifically designated categories as authorized can be vendor stocked. All vendor stocked items and
categories are identified below:
(1)
(2)
(3)
(4)
Frozen foods,
Refrigerated products (milk and eggs roll in/out cart loading)
Random weight products (chicken, hams, frozen turkeys)
Baby foods, baby supplies; e.g., rubber pants, bottles, and bottles, and bottle
accessories
(5) Candy and gum
(6) Fresh prepackaged bakery products
(7) International (includes German, oriental, oriental soft pack, and cup of noodles)
(8) Gourmet and natural foods
(9) Pasta
(10) Snack items; e.g., chips, nuts, crackers, cookies, pretzels, salty snacks, and all popcorn
(11) Soft drinks, bottled water, new age beverages, bottled tea, coffee drink, etc. (includes FDS bottled
water)
(12) Spices, seasonings, extracts, herbs, food coloring, dehydrated sauces, and cake decorations
(excluding baking nuts)
(13) Batteries, cellophane tapes, mailing supplies, and shoe polish
(14) HBC products, razors, and razor blades (excludes sanitary products, personal care category, and
adult incontinence products)
(15) Vitamins and body building products
(16) Hosiery
(17) Light bulbs
(18) Pet supplies and birdseed (does not include pet food or edible treats)
All scrubbers, sponges, rubber gloves, and all blind-made products
Question 1: Where are the guidelines for stockers?
Answer 1: The guidelines for stockers can be found under commissaries.com, About Us, Official
Publication, DeCAM 40-5.1 (11 May 2012).
Question 2: There are some produce items that are vendor stocked in some stores that need to
be added to the list like: nuts, bagged salads, etc.
Answer 2: The items listed within the MT&Cs are the only items “authorized” to be vendor
stocked.
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15. Page 10, Execution of Resale Ordering Agreement (ROA), 3rd paragraph reads:
(c) The Government is obligated only to the extent of authorized orders placed against this ROA. This
ROA may be terminated without cost to the Government at any time. If at any time the supplier desires
to terminate this agreement, the Government must be notified, in writing, 45 calendar days prior to the
effective date of termination.
Question: What is the recourse if 45 days to terminate are not given by either party?
Answer: This is a legal question and DeCA does not provide legal advice to the general public.
16. Page 10, Pricing Requirements, Price Warranty, 1st paragraph reads:
(a) The average of all price offers made over a Calendar Year (January 1 through December 31) by the
Contractor for all products covered by this agreement shall be as low, or lower than, those offers made
to supermarkets in the United States under similar terms and conditions. The price offers made to DeCA
may or may not be accepted for ordering by the Contracting Officer or an authorized individual located
within DeCA. The terms and conditions of price offers shall include such factors as, but are not limited
to, quantity/dollar discounts, delivery requirements, delivery location or zone, period of purchase,
promotional discounts and terms, retailer performance, discount payment terms or any other factor
that results in or ultimately could have an effect on the prices offered to DeCA.
Question: Is the price average per item or an average of all items for the time period?
Answer: It is an average of all price offers made over a calendar year.
17. Page 10 and 11, Pricing Requirements, Price Warranty, 3rd paragraph reads:
The term “Supermarket”, as used in this clause is defined as a retail store that sells a wide variety of
food items, such as, fresh and prepared meats, produce, dairy, bread, refrigerated and frozen products,
beverages and other grocery products, including nonfood items such as household products and health
and beauty aids. Also for purposes of this definition, supermarkets include the following formats:
conventional grocery stores/supermarkets, warehouse stores, and supercenters/superstores operated
by non-traditional competitors.
Question: Please expand on non-traditional competitor and are specialty stores included?
Answer: Examples of non-traditional competitors would include grocery sales by Wal-Mart and
Target, which traditionally did not carry grocery items but do so now. Yes, specialty stores are included.
(see response to question 3).
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18. Page 11, Submission of Prices, 1st paragraph reads:
(a) DeCA prefers monthly price quotes for all methods of delivery: FDS, DSD, and DSD-S. Price quotes
submitted monthly shall be received no later than the 10th of a month to be effective from the 1st
through the end of the following month. DeCA reserves the right to reject prices received late and in
such cases, the previous price quote will be used. DeCA prefers electronic price submissions using the
879 Price Change Transaction Set or prices submitted via Web Pricing at
https://www.commissaries.com/webpricing.
(b) FDS/DSD Methods of Delivery. As an alternative to the preferred monthly submission of price
quotes, Contractors who have elected weekly or semi-monthly billing periods may furnish semi-monthly
price quotes. Semi-monthly price quotes shall be received no later than the 10th of a month to be
effective from the 1st through the 15th of the following month and no later than the 25th of a month to
be effective from the 16th through the end of the following month. DeCA reserves the right to reject
prices received late and in such cases, the previous price quote will be used.
Question: It says that contractors who have elected weekly or semi-monthly billing periods may
furnish semi-monthly price quotes. What about weekly price quotes?
Answer: This is merely saying in lieu of DeCA’s “preferred” monthly price quotes, you have the
option to send your quotes in semi-monthly whether you are on weekly or semimonthly billing period.
This does not prohibit a vendor that elected weekly billing from sending their price quotes weekly.
19. Page 14, Changes to Approved Items, entire paragraph reads:
V. CHANGES TO APPROVED ITEMS
(a) All requests for changes on line item information, other than price, shall be submitted in writing
and signed by an official authorized to bind the Contractor.
(b) All requested changes on line item information shall be submitted to arrive at the Defense
Commissary Agency at least 45 days prior to the requested effective date. If changes are received with
less than 45 days before the proposed effective date, the Government will have the unilateral right to
change the proposed effective date to a date not more than 45 days after receipt of the requested
change.
(c) Contractors shall identify the Vendor Code, NSN#, the Description/Brand Name, Manufacturer
Number/UPC/GTIN, Unit/Case, Unit Pack/Issue, Shelf life/Month, Size, Case/Weight Pounds, Case/Cubic
Foot, Tie/Tier, and Unit Price Per Zone. All changes must be underlined.
Question: Requires 45 days to make changes to approved items, this is too long and not
keeping with industry.
Answer: Your comments will be taken into consideration.
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20. Page 14 and 15, Changes to ROAs, entire paragraph reads:
VI. CHANGES TO ROAs
(a) Requests for changes to this agreement shall be submitted on company letterhead and signed by
an official authorized to bind the Contractor.
(b) Requests for changes (i.e., moving line items from one ROA to another ROA, a change in mail
to/remit to, payment methods, discount terms, delivery locations, extensions and cancellations) must
be received at the Defense Commissary Agency at least 45 days prior to the requested effective date. If
changes are received less than 45 days prior to the proposed effective date, the Government will have
the unilateral right to change the proposed effective date to a date not more than 45 days after receipt
of the requested change.
(c) Changes requested in accordance with paragraph (b) above may be issued by the Contracting
Officer without obtaining the Contractor's signature.
Question: Requires 45 days to make changes to ROA’s, this is too long and not keeping with
industry.
Answer: DeCA is required to comply with government regulations that industry does not have to
comply with.
21. Page 15, Brand Name Merchandising Program, entire paragraph reads:
VIII. BRAND NAME MERCHANDISING PROGRAMS
DeCA and the supplier may enter into a merchandising program (e.g., fresh chicken, turkey, produce,
etc.) during the effective period of this ROA. Any such program will be considered incorporated into and
governed by the terms and conditions of this ROA. The program will be designed to obtain the best
possible value for DeCA patrons, encourage competition on brand name items, standardize pricing in
geographical areas, and increase DeCA category sales.
Question: Is the brand name merchandising program where the bagged salad would fall?
Answer: The pre-packaged (bagged) salads, chicken, and turkey, all fall under Brand Name
Merchandising Programs.
22. Page 30, Shelf Life Requirements, entire paragraph reads:
(7) SHELF LIFE REQUIREMENTS: Products shall be of the latest date-of-pack available at time of
delivery. For potentially hazardous food items, the vendor/sales representative shall provide the store
director and medical food inspection office product shelf life data (as specified or guaranteed by the
manufacturer). Unless otherwise specified in the agreement, products shall be delivered to locations
specified in the ROA or the designated port of embarkation for overseas shipments with a minimum of
one-half (1/2) or fifty percent (50%) of their guaranteed shelf life remaining (rounded to the nearest
whole day.) Commissary holiday closure will allow for one-day additional delivery time the day
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following closure, unless otherwise specified by the Contracting Officer. If the supplies delivered do not
have the minimum number of days of shelf life remaining, as set forth in this agreement, the
Government has the right to reject them and require replacement.
Question: Under shelf life, the requirement for latest date of pack flies in the face of the industry
and DeCA standard of FIFO inventory management. This allows for an extra day if store is closed but not
if supplier is closed. This is not fair and not keeping with industry standards. Also can the Government
accept a price adjustment in lieu of replacing or rejecting?
Answer: In reference to the statement “Products shall be of the latest date-of-pack available at
time of delivery.” The intent of the statement is DeCA expects to receive as much shelf life as possible
when product is delivered to our commissaries. Products shall be delivered to locations specified in the
ROA with a minimum of one-half (1/2) or fifty percent (50%) of their guaranteed shelf life remaining, but
receiving more than ½ or 50% is welcomed. Please note that First In, First Out (FIFO) is always DeCA’s
standard.
To address your second issue, DeCA policy is to deliver product to our locations with one-half
(1/2) or fifty percent (50%) of their guaranteed shelf life remaining. Any product received with less than
a minimum of one-half (1/2) or fifty percent (50%) should be rejected.
23. Page 31, Quality Assurance Provisions for Perishables, Pre-packaged Delicatessen Type Salads,
entire paragraph reads;
(b) QUALITY ASSURANCE PROVISIONS FOR PERISHABLES:
(1) PRE-PACKAGED DELICATESSEN TYPE SALADS (such as potato salad, coleslaw, pasta salad, etc.):
All salads shall have an established shelf life of at least 21 days. Delivery shall be made with a minimum
of 50% of the manufacturer’s guaranteed shelf life remaining and the maximum allowable temperature
at delivery is 40 degrees F. Frozen salads shall be delivered within 30-days of manufacture and shall be
stored and delivered at 10 degrees F or less. Individual packages shall be marked with a pull or sell by
date. All dates shall be open (i.e., April 3, 2012; 3 April 2012).
Question: On pre-packaged deli salads, this is not an industry standard and will reduce the
quality of deli salads since only the cheaper lower quality salads have 21 days. This will displease
customers and lower sales and satisfaction.
Answer: Your comments will be taken into consideration.
24. Page 31 and 32, Shelf Life Requirements
Comments: All the shelf life requirements are in keeping with industry standards and will lead to
shelf life extenders being added to the products which will lower sales and satisfaction. All of
these requirements are based on date of pack and DeCA has no way of confirming these dates.
Answer: Your comments will be taken into consideration.
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25. Page 34, Fresh Fruits and Vegetables Quality Assurance Provisions, entire paragraph reads:
(8) FRESH FRUITS AND VEGETABLES QUALITY ASSURANCE PROVISIONS:
Fresh fruits and vegetables shall be transported in vehicles which are equipped to
(i) maintain required temperature required for the type of item ordered and which
will maximize shelf life upon receipt. Produce items shall be protected from temperature extremes and
abuses. Products sensitive to ethylene oxide production shall be protected accordingly during transit.
(ii) Fresh produce marked as “organic” shall meet the labeling and handling requirements of the
Department of Agriculture in the state of origin and sale.
(iii)
Pre-packaged fresh fruits, vegetables and bagged salads shall be delivered as fresh
as possible, but must have at least 75% , unless negotiated and approved, of the processors
recommended guaranteed shelf life remaining at the time of delivery. Products shall be delivered
between 34 and 40 degrees F.
Question: Requires 75% of shelf life to be left, this cannot be done and still allow the store to
have orders to be shipped in 24 hours. To ship in 24 hours stock must be kept at the distributors and this
makes the new extend shelf life on delivery requirement not obtainable unless changes are made to the
existing agreement.
Answer: Your comments will be taken into consideration.
26. Page 36, Vendor Credit Memorandums, paragraph (c ), reads:
(c) When DeCA and a Contractor have agreed that a VCM is to be used, all Contractors shall comply with
the payment provisions outlined below:
(1) Contractors shall present credit card, automated clearing house (ACH), check (pay to the
order of DFAS-CO), or cash for the amount of the VCM to the commissary or central distribution center
when the VCM is completed unless the vendor/distributor is on the Vendor Credit Memorandum Credit
Card (VCMCC) program at DeCA.
(2) VCM payments are required immediately. After 30 days, VCMs which have not been paid will
be transmitted to the Resale Accounting Branch (RAB). Collections efforts will be made by the RAB and
Defense Finance Accounting Services (DFAS).
(3) VCMs generated from reports of discrepancies (RODs) will be paid by the
manufacturer's/distributor's credit card, by check or through other remedies available.
(4) Contractors may register with the Financial Services Branch/VCM Section (CORCF) to make
payments via centralized credit card processing.
(d) Promotional Scandown – Any vendor that does not pay within 90 days will be suspended from
scandowns for 6 months.
Question: What if DeCA and the contractors don’t agree on the amount of a VCM? What are
the procedures?
Answer: If the parties (the store and vendor) do not agree, then it becomes a contractual issue
that will be handled by the Contracting Officer.
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27. Page 43, Additional Provisions and Clauses, North American Industry System (NAICS), entire
paragraph reads:
ADDITIONAL PROVISIONS AND CLAUSES:
NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM (NAICS): The NAICS Code applicable to this
ROA is ______________ and the Size Standard is _____________.
Question: The use of the NAICS code, in several cases the code being used is one that does not
match up with the function but is one that is the best that could be found to capture the function. This is
causing loses for small business, in some cases, and less than what is needed on the government side.
The SBA made the request for the changes but while the changes work well for the majority of DoD, they
do not work well for DeCA, MWR, and the exchanges.
Answer: Your comments will be taken into consideration.
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