ATTACHMENT B SCOPE OF SERVICES

ATTACHMENT B SCOPE OF SERVICES Freight Forwarding Services for the American Samoa Power Authority 1

I. Definitions and Abbreviations AWB B/L Cold Chain Counterpart or End-User Contract Destination Services Freight Forwarder Goods ASPA Origin Services Point of Destination or Destination Point of Origin or Origin Purchase Order (PO) Airway Bill (for air shipments) Bill of Lading (for ocean freight) Goods requiring dry ice or temperature controlled environment for transportation purposes Beneficiaries (entities) or final recipients of Goods. The complete list is maintained by ASPA. Contract signed by ASPA and the Contractor Services including but not limited to airport/port handling, airport/port storage/demurrage fees, and customs bonded warehouse charges The Contractor as defined in the Contact Items, materials, goods or equipment transported and delivered in accordance with the Statement of Work American Samoa Power Authority Services including but not limited to Goods collection from Supplier warehouse, export customs clearance, and storage at Freight Forwarder s warehouse, if applicable Final destination (airport/port/place/consignee) of delivery of Goods as defined by ASPA in the Purchase Orders Airport/Port/place of loading of Goods as as defined by ASPA in the Purchase Order for dispatch by the Freight Forwarder to the recipient (including ASPA Tafuna Warehouse) A document that authorizes a purchase 2

transaction and sets forth the date of shipment and associated terms and conditions Release Purchase Order Services Shipping Instructions Supplier Automatically generated Purchase Order through the ERP system against the Contract (also known as Shipment Request) The transportation and related origin and destination services as provided by the Freight Forwarder and as defined in the Statement of Work Written instructions to the Freight Forwarder outlining the Origin and Destination of Goods (mainly Purchase Orders, Release Purchase Orders) Any ASPA Supplier of Goods 3

III. Scope of Services ASPA is seeking to get proposals from qualified companies for freight forwarding services for general cargo and cold chain shipments. The intent is to maintain the current level of visibility (please refer to page 6, point 17) for goods in transit through a web-based real time portal for tracking shipments including customs clearance and physical hand-over to the recipient Counterpart at the airport/port of destination. A local collection service between ASPA Tafuna Warehouse to and from Pago Pago International Airport and/or Pago Pago Port should also be included in the services. This may include the transportation of cold chain shipments between ASPA Tafuna Warehouse to and from the airport. All communication with ASPA shall be in English, and the preferred method of communication shall be e-mail and/or over the phone. A. Deliverables The services shall include, but not limited to, capability to provide the following: 1. The Freight Forwarder will be required to provide expediting, transportation, freight forwarding and all associated services from Origin to Destination as specified in the Purchase Order Shipping Instructions (please refer to Section B below) using the most direct and economical way of transport including multimodal means of transportation. 2. The Freight Forwarder will be required to manage the entire transport chain and logistics functions from Origin to Destination. Except as otherwise provided in the Contract, the Freight Forwarder will undertake to provide at its own cost and expense, all personnel, equipment, supplies, materials, tools, transportation and other facilities required for the performance and completion of the Services. The Freight Forwarder shall acknowledge that ASPA shall have no obligation to provide any assistance to the Freight Forwarder in performing the Services other than expressly set forth herein. 3. The Freight Forwarder will be required to contact Suppliers to coordinate the availability of Goods for pick up for shipping without delay as defined in the Purchase Order under Date of Delivery. 4. The Freight Forwarder will be required to conduct an inspection of the goods upon collection from Supplier. At minimum, boxes shall be counted and inspected for damages or loss. 5. Proper packing of Goods shall be the responsibility of Suppliers or ASPA (as required). If it deems necessary or as required, the Freight Forwarder shall arrange proper export packing and protection of goods to prevent damage thereto or deterioration thereof. All equipment and materials, where applicable, shall be skidded, palletized, 4

or bundled to allow protection in handling. The Freight Forwarder shall also be able to assist with labelling and markings as needed. 6. The Freight Forwarder shall ensure that all markings and documentation are in accordance with the Purchase Order Shipping Instructions; that detailed packing lists have been supplied; and that such lists are accurate. Any discrepancies with regards to number of boxes, packing, marking, value and documentation shall be noted on the receiving document (Forwarder s Certificate of Receipt/FCR or equivalent) and immediately reported to ASPA. 7. The Freight Forwarder will be required to consolidate shipments whenever possible by Country/Geographical Region/Supplier/Counterpart. This may include consolidation of shipments to ASPA and/or to Counterparts. Any consolidation shall be proposed to ASPA and agreed to in advance with a discount offered on the transportation cost. 8. The Freight Forwarder will be required to store Goods at Forwarder s warehouse until shipment of the Goods. The first thirty (30) days of storage shall be provided free of charge for all shipments. If storage will be required beyond the thirty (30) days or as requested by ASPA, the Freight Forwarder shall arrange for storage of the Goods, subject to advance cost quotation and acceptance by ASPA. 9. The Freight Forwarder will be required to coordinate and expedite the authorization to ship or greenlight with Suppliers. 10. The Freight Forwarder will be required to comply with export regulations of the country of origin (Origin), which Goods and/or Suppliers are subject to, and refrain from any act, which can be construed as circumvention of such regulations. 11. The Freight Forwarder shall ensure that all export and import documents are in good order before releasing shipments to carriers for transportation. 12. The Freight Forwarder will be required to provide import customs clearance on behalf of ASPA at the airport/port of destination except for countries in which there exists an exclusive customs broker designated by the government. The Freight Forwarder will be required to liaise with ASG Port and ASG Treasury, among others for any assistance in the customs clearance process. The designated Freight Forwarder shall collect the Goods from Supplier s warehouse (FCA Supplier s warehouse) and arrange for the export customs clearance, transportation, customs clearance at destination and physical hand-over to the Counterpart. 13. The Freight Forwarder will be required to provide export and import customs clearance for air shipments at Pago Pago International Airport and/or Pago Pago Port for ASPA Tafuna Warehouse. For surface shipments, export and import customs clearance shall be arranged at Pago Pago International Airport and/or Pago Pago Port given ASPA s known shipper status. 14. The Freight Forwarder will be required to exercise due diligence as follows: a) Detect any unaccustomed or unusual shipment of Goods, such as duplicate shipments, suspected damage, etc. Such instances shall be communicated to ASPA immediately. b) On all shipments, inform ASPA in advance of any unexpected charges such as 5

VAT, etc., required as payment to import Goods in the country of destination. 15. The Freight Forwarder will be required to negotiate rates and conditions with carriers in the best interest of ASPA. 16. The Freight Forwarder will be required to provide ad hoc transportation estimates and freight rates (e.g. emergencies, major equipment) upon request from ASPA, and, ad hoc transportation services not covered by the Contract at a price and conditions to be further negotiated and agreed to, and subject to a separate Purchase Order. 17. The Freight Forwarder will be required to provide and maintain a web-based real time portal for tracking shipments allowing visibility of shipments movement by milestone events (e.g. actual pick-up date, actual departure date, actual arrival date at destination, etc.). Supporting shipping documents (e.g. AWB, B/L, packing list, Supplier invoice, certificate/evidence of customs clearance, proof of delivery, etc.) shall also be available in the web-based real time portal for tracking shipments. 18. The Freight Forwarder will be required to monitor the movement of shipments from the actual date of departure until physical hand-over to the consignee at Destination as specified in the Purchase Order. In the event of shipment deviation, e.g. delays, short shipments and damage while in transit, etc., the Freight Forwarder shall notify ASPA, consignee and other parties involved and recommend a plan of action. The Freight Forwarder shall be expected to take corrective action should that be at no cost to ASPA and no impact on the delivery schedule. 19. The Freight Forwarder will be required to provide professional advice about international transportation requirements as requested. 20. The Freight Forwarder will be required to arrange pre-payment of all applicable charges from Origin to Destination including customs clearance as required. No freight collect shipments shall be allowed. 21. The Freight Forwarder will be required to have a dedicated customer service point of contact and dedicated team for ASPA shipments under the Contract. The dedicated customer service team shall be available between 8:00 am and 6:00 pm American Samoa time via telephone and e-mail. B. Shipping Instructions 1. ASPA shall provide the Freight Forwarder with a copy of the Purchase Order containing information about the Supplier s name and address (or Shipment Request through a Release Purchase Order), description and relevant details of the Goods, Origin and Destination, Counterpart s name and address, terms of delivery for Supplier and Freight Forwarder, shipping instructions and markings (including project identifications, if applicable), special handling instructions. 2. Purchase Orders shall indicate the expected Date of Delivery by the Supplier where the Freight Forwarder will be required to coordinate availability of Goods for pick up. 6

Omission of any of the foregoing information shall not invalidate the Purchase Order or diminish the Freight Forwarder s obligations under this arrangement. The Freight Forwarder shall carry out its services in respect of each shipment in accordance with the instructions indicated in the Purchase Order. The Freight Forwarder shall promptly request any clarification from ASPA as required. 3. The Freight Forwarder will be required to notify ASPA immediately if a Supplier cannot meet a Date of Delivery as indicated on the Purchase Order giving reasons for the delay and provide a new expected Date of Delivery. 4. Most ASPA Purchase Orders are placed FCA Supplier s warehouse and Delivery at Terminal (DAT) for Freight Forwarder but other terms may also be used. If delivery is requested directly to the Counterpart (DAP), it shall be explicitly stated in the Purchase Order/Shipping Instructions. C. Shipping Documentation The Freight Forwarder will be required to: 1. Obtain or produce promptly all required shipping documentation following ASPA s shipping instructions including any special instructions contained in the Purchase Order, applicable laws and regulations, and as required by the selected mode of transport, cargo type and packing. 2. Ensure that applicable export and import licenses are available. 3. Obtain a full set of Bill of Lading, Master Airway Bill, or CMR as appropriate for the selected mode of transportation. 4. Ensure that a full set of shipping documents and related information reach the consignee, Counterpart in a timely manner as defined in the Shipping Instructions. In particular, this applies to cold chain and dangerous goods shipments. Stale documents shall not be acceptable and any demurrage involved as a result shall be for the account of the Freight Forwarder. Complete details shall be given in each Purchase Order. 5. On occasion, ASPA may require the Freight Forwarder to issue additional sets of documents. Any associated charges will be established by mutual agreement between both parties. D. Time Limits for Dispatch 1. The Date of Delivery indicated on the Purchase Order refers to the date of Goods availability from Suppliers for collection. The Freight Forwarder shall check and define with Suppliers the effective date of availability of Goods on a Ready for Carriage basis; all export documents (e.g. packing list, commercial invoice, certificate of origin, dangerous goods declaration, export license, etc.) must be prepared and available at the time of Goods pick up. Goods shall be properly packed by Suppliers taking into 7

consideration the mode of transport (air, sea, and road). As soon as Goods are available for collection, the Freight Forwarder shall make a notification in the web-based real time portal for tracking shipments. 2. The Freight Forwarder shall verify in advance Goods availability for collection; ASPA shall not reimburse the Freight Forwarder for making a trip to Supplier s warehouse without Supplier s written confirmation of Goods ready for pick-up. Any delays shall be immediately communicated to ASPA. 3. Greenlight refers to the authorization to ship granted by the Counterpart in the country of destination. Once greenlight is given, Goods shall be collected from Supplier s warehouse within two (2) working days, and the Freight Forwarder shall make a notification of the event in the web-based real time portal for tracking shipments. In the event Goods are available for collection from Supplier s warehouse prior to receiving greenlight, the Freight Forwarder shall make arrangements to store Goods at Forwarder s warehouse should the Supplier have limited space at their premises. 4. From the date of collection, the Freight Forwarder shall dispatch Goods within the following time limits: Air Within five (5) working days Ocean Within ten (10) working days Emergencies (upon specific request from ASPA) Within two (2) working days 5. Only in exceptional circumstances may the Freight Forwarder seek an extension in writing from ASPA requesting a new date of departure. In particular, this shall apply in cases where the Counterpart is not ready to receive the Goods or due to unforeseen delays (e.g. airline strikes, etc.) 6. For shipments from ASPA Tafuna Warehouse, the same time limits for dispatch shall apply. 7. In exceptional cases, ASPA may request that dispatch is delayed; storage fees shall be promptly communicated to ASPA. E. Pre-carriage The Freight Forwarder can choose between customary routes to the nearest airport/port of Origin to Destination within the time limits set forth above under FCA Supplier s warehouse Purchase Orders. ASPA will not accept additional costs for cross- border pre-carriage (e.g. to another country of departure), unless agreed to in writing. In such cases, ASPA shall be quoted in advance transport costs from collection point to airport/port of departure. F. Air Freight 8

The Freight Forwarder will be required to select only next suitable regular scheduled flight. Wherever possible, all air shipments shall travel by the most direct route. Where trans-shipment is inevitable, the shipping route shall be planned through airports known for providing a swift handling service. For cold chain shipments, the Freight Forwarder shall select the most direct route to avoid spoilage or further delays in reaching final destination. Taking the above into consideration, the Freight Forwarder may choose a more distant airport of departure taking pre-carriage charges into account, when this is appropriate and to the advantage of ASPA. G. Ocean Freight The Freight Forwarder will be required to select only next suitable regular scheduled vessel with due consideration to the lowest cost and best possible transit time. H. Inland Transport For carriage from port of discharge up to final destination, the Freight Forwarder can choose between customary means of conveyance and routes to ensure fast and safe arrival. It shall be the responsibility of the Freight Forwarder to comply with national/international regulations of countries in-transit and final destination. I. Additional Services Additional services may be requested by ASPA and these shall be negotiated and agreed to prior to initiation. These services may include but are not limited to: 1. Additional services for ASPA customers for designated consignees, destinations and/or projects. 2. Additional services may also be required in instances where geographical coverage and/or mode of transport have been changed between Freight Forwarders. IV. Taxes and Duties 1. The Freight Forwarder shall pay the amount which will then be reimbursed by ASPA upon submission of evidence demonstrating the payment of taxes/duties referencing ASPA Purchase Order number. V. Invoicing 1. Unless otherwise agreed, the Freight Forwarder shall submit invoices for services 9

rendered on a monthly basis. Invoices shall only be submitted for Goods delivered. 2. At minimum, the monthly invoice shall clearly indicate the following information and charges for each shipment: a) ASPA Purchase Order number; b) AWB, B/L or CMR number; c) Actual Pick-up Date; d) Departure Date; e) Origin (Airport/Port); f) Destination (Airport/Port); g) Gross Weight; h) Volume; i) Number of Boxes; j) Origin Charges (pick-up charges); k) FOB Charges (export customs clearance, handling, etc.); l) Airfreight Charges; m) Fuel Surcharge; n) Security Surcharge; o) Dangerous Goods Surcharge; p) Customs Clearance at Destination; q) Destination Charges (storage fees, etc.); r) Total Amount Invoiced; 3. The Freight Forwarder shall make a note on the monthly invoice of duties and taxes paid for import customs clearance, customs fees, port fees and etc. 4. Supporting documents for any of the charges in Section 2 above shall be available on the web-based real time portal for tracking shipments. Access to the web-based portal shall be available for a period of three years following contract expiration. 5. In case of Goods consolidation, the Freight Forwarder will be required to invoice for each Purchase Order and/or delivery providing full details of the shipment against each Purchase order and/or delivery. 6. For auditing purposes, supporting shipping documents shall be made retained by the Freight Forwarder for a period of thirty-six months after contract conclusion. 7. All rates, fees and charges shall be invoiced in US Dollars. VI. Reporting Requirements The following Reporting Requirements have been established to measure and evaluate metrics, monitor trends and provide visibility, and are critical to the successful implementation of ASPA projects. 10

A. Key Performance Indicators (KPIs) Definitions KPI I: Measures the number of days between Goods available at Supplier s warehouse and authorization to ship or greenlight confirmed by the Counterpart at destination. It entails coordination with the Supplier, customs exemption procedure with UNDP CO, Counterpart, destination agent and the availability of all documents as required. KPI II: Measures the number of days from greenlight authorization and shipment s actual departure until confirmation of arrival at destination. KPI III: Measures the number of days from shipment s arrival at destination until physical hand-over of Goods to the Counterpart at destination. The KPI takes into account customs clearance. KPI IV: Measures the time duration from Purchase Order issued by ASPA until physical hand-over of Goods to the Counterpart. It captures Supplier/manufacturer production lead time, the duration of obtaining greenlight or authorization to ship, transit time, customs clearance, and Goods hand-over to the Counterpart. B. QBR Dashboard Following each QBR meeting the Freight Forwarder shall present a snapshot of the past quarter activities representing the greenlight authorization and number of shipments per geographical region, breakdown of the shipping cost, and the time duration from Purchase Order until hand-over of Goods to the Counterpart. C. Web-Based Real Time Portal for Tracking Shipments 1. The Freight Forwarder shall offer user access to an existing web-based real time portal for tracking shipments with, at minimum, the following features: a) User access to a web based (using typical for office purposes browsing applications e.g. Internet Explorer, Google Chrome, Safari, etc.) tracking shipments solution using ASPA Purchase Order number. b) Management of user accounts and their access hierarchy e.g. read only access to the majority and more detailed information including reporting capability for selected users. c) User authentication at sufficient security level with an interface friendly access (also for non-it minded user community). d) Reporting capability for tracking shipments based on periods, destinations, timeliness and other parameters sufficient to make judgments regarding quality of service and Freight Forwarder s level of performance. e) Ability to send notifications on the status of shipments for pre-defined criteria 11

in the shipment process - e.g. shipment has left its origin point, shipment has reached its final destination, shipments experiences a delay of over five (5) days at any of those points of the process. 2. Optional parameters for the web-based portal for tracking shipments to be further considered: a) Apps for slim end user devices Android, ios or Windows based offering some of the functions (or all of them) mentioned above. b) Regular reports automatically generated by the software platform on the status of shipments being sent to a selected user and stakeholder community for quality control purposes and quality assurance benchmarking. c) The ability of the system to provide a cost estimate of the origin, shipping, customs clearance, and destination charges as soon as the Purchase Order has been received by the Freight Forwarder but no later than shipment s departure from Origin. 3. The Freight Forwarder shall provide access and maintain a web-based real time monitoring, track and trace portal for ASPA shipments. The system shall be capable of recording and showing all information to monitor the transportation activities from Purchase Order receipt date until Goods arrival at destination and physical hand-over to the Counterpart. A track and trace summary shall be available, via web link, with the only security measure being entering a valid ASPA Purchase Order number. The Freight Forwarder shall be responsible for all costs related to the provision, set up, usage and maintenance at its own premises. The system shall be available on a 24 hours/7 days a week basis. 4. The system shall be accessible by ASPA independently with no support or assistance from the Freight Forwarder. 5. At minimum, the following information shall be available for each Purchase Order or Release Purchase Order: a) ASPA Purchase Order; b) Expected pick up date at Origin (from Supplier); c) Actual pick up date at Origin (from Supplier); d) Expected date of arrival at Destination; e) Actual arrival at Destination; f) Date of customs clearance; g) Actual date of physical hand-over to the Counterpart; 6. The system shall be capable of producing performance reports related to the established KPIs including: a) Supplier Performance: Expected vs Actual Date of Delivery to Freight Forwarder; b) Freight Forwarder Performance: Booked and picked up as scheduled; 12

c) Carriers Performance: Shipped as booked, departure and arrival as scheduled; d) Shipping documents such as packing list, commercial invoice, AWB/B/L/CMR, customs clearance and proof of delivery shall be available in the system thirty six (36) months following delivery of Goods to Counterpart. D. System Notifications for Goods Pick-Up from Supplier and Goods Hand-Over to Counterpart 1. The Freight Forwarder shall provide daily e-mail notification to a designated ASPA e- mail address of when Goods are available for pick-up or have been picked up, and when Goods have been delivered. 2. The e-mail shall contain the following information: a) ASPA Purchase Order number; b) Actual pick up or Goods available date for pick-up; c) Actual delivery date; d) AWB number (if available at the time of e-mail notification); e) Number of packages; f) Weight; g) Airline Carrier; h) The Freight Forwarder shall provide Monthly Reports to a designated ASPA e-mail address on Goods available from Supplier, Goods already picked-up, and Goods delivered to Counterpart. E. Inventory Status Report 1. The Freight Forwarder shall offer user access to an existing web-based real time portal for tracking shipments with, at minimum, with the following features: a) User access to a web based (using typical for office purposes browsing applications e.g. Internet Explorer, Google Chrome, Safari, etc.) tracking shipments solution using ASPA Purchase Order number. b) Management of user accounts and their access hierarchy e.g. read only access to the majority and more detailed information including reporting capability for selected users. c) User authentication at sufficient security level with an interface friendly access (also for non-it minded user community). 2. The reporting functionality shall allow, at minimum, any combination of the fields specified below to be selected, and ranges within them to be specified: a) ASPA Purchase Order number and line number; b) Date Goods are available from Supplier; c) Actual pick-up date by the Freight Forwarder; d) Actual arrival date at destination; 13

e) Date of customs clearance; f) Actual date of physical handover to the Counterpart; g) Point of Goods pick-up; h) Airport/Port of embarkation; i) Airport/Port of debarkation; j) AWB or B/L number/reference; k) ASPA project reference (if applicable); l) Supplier (or Consignor); m) Consignee, and n) Total charges for the entire shipping and customs clearance process; 3. Reports shall be available for download in an electronic format compatible with MS Excel 2010 and later releases. 4. Data as at the end of each calendar month shall be available no later than five (5) working days after the end of that month, and such data as at the end of each calendar month shall be available for a period of at least 30 days from each month end. 5. Additionally, the Freight Forwarder shall send a report to a designated e-mail address within five (5) days of the end of each calendar month that contains the following data as at the end of that calendar month: a) ASPA Purchase Order number and line number; b) Date Goods are available from Supplier; c) Actual pick-up date by the Freight Forwarder; d) Actual arrival date at destination; e) Date of customs clearance; f) Actual date of physical handover to the Counterpart; g) Point of Goods pick-up; h) Airport/Port of embarkation; i) Airport/Port of debarkation; j) AWB or B/L number/reference; k) ASPA project reference (if applicable); l) Supplier (or Consignor); m) Consignee, and n) Total charges for the entire shipping and customs clearance process; 6. The Freight Forwarder shall provide reports as specified above on an ad-hoc basis as required, particularly during the month of December, within five (5) working days of request. VII. Claims The Freight Forwarder shall provide the following information and documentation to ASPA in the event of loss or damage of Goods while in transit: 14

A) Report immediately to ASPA any insufficient or improper packing of Goods in advance of making arrangements for transportation to final destination. B) Report to ASPA shipments that are lost or damaged while in transit without delay to ensure all rights against carriers are properly preserved and exercised. C) Respond to ASPA s Letter of Protest, questions or requests that may arise related to lost or damaged shipments in a timely fashion. D) The Freight Forwarder shall liaise with carriers on tracking lost shipments and keep ASPA informed of the outcome. E) Upon request, the Freight Forwarder shall provide copies of shipping documents and correspondence with carriers for lost or damaged Goods. F) The Freight Forwarder shall liaise with the surveyor of the designated ASPA cargo insurance company when inspection of damaged Goods is deemed to be necessary. 15

Annex 2 Scope of Services Transportation and Delivery From ASPA Tafuna Warehouse (Release Purchase Orders) The requirements outlined below apply in addition to the Scope of Services defined in this document. A) ASPA shall provide the following information to the Freight Forwarder to request a shipping rate: - Weight, dimensions, number of packages and type of commodity - Collection and Delivery Address B) The Freight Forwarder shall submit a shipping rate within three (3) working days. Should there be a request to ship Goods urgently, the rate may be required sooner, and the Freight Forwarder shall be informed of this. C) Release Purchase Order shall be issued to the selected Freight Forwarder ensuring best value for money is obtained for ASPA. The Release Purchase Order shall include shipping instructions as well as relevant attachments (e.g., customs declaration, pro-forma invoice, packing list, etc.). There shall be no notification to the Freight Forwarder if the shipping rate submitted has been unsuccessful on the occasion of handling a particular shipment. 16

Annex 3 Scope of Services Transportation and Delivery From Suppliers to ASPA Tafuna Warehouse The requirements outlined below apply in addition to the Scope of Services defined in this document. ASPA tax exemption status: - ASPA is not exempt from custom duties and import taxes in American Samoa 1. The Freight Forwarder will be required to collect shipments from Suppliers and arrange transportation to ASPA Tafuna Warehouse. This shall include import customs clearance and excise tax at Pago Pago International Airport and/or Pago Pago Port and transportation to ASPA Tafuna Warehouse. 2. The Freight Forwarder shall be responsible for arranging import customs clearance at Pago Pago International Airport and/or Pago Pago Port, shipment collection and delivery to ASPA Tafuna Warehouse. 17

Annex 4 Sample ASPA Purchase Order 18