Statement of Work

Background -Following the September 11, 2001 terrorist attacks on the U.S., the Department of Transportation was asked to identify areas within the transportation system that were vulnerable to terrorist attack. One major area of concern identified was the transportation of hazardous materials.

In investigating ways to improve the security of hazardous materials transportation, FMCSA identified the need to have security at each phase of the shipment - pick up, delivery, and receipt - and for each element of the shipment - driver, vehicle, and cargo. For each of these elements solutions may come from regulations, outreach, operational changes and deployment of technology.

Security Risks in the Motor Carrier Industry - The largest security risk within the motor carrier industry is the transportation of hazardous materials. There are over 800,000 shipments of hazardous materials (HM) each day in the U.S. The risks associated with transporting HM range from many shipments of materials that pose a moderate risk to a limited number of shipments of materials that pose extreme risks. Shipments falling into the first category include the transportation of large quantities of flammable liquids and gases, specifically gasoline and propane. There are as many as 300,000 daily movements of these materials to residential areas and urban areas and other population centers. Security on these shipments is loose because the activities are commonplace and there has been no history of terrorist threats in this area. Tank trucks with flammable liquids or gases can be used to create fires and explosions that can cause multiple deaths or damage high value facilities such as bridges, monuments, rail stations or airports. Other risks in the motor carrier industry involve the transportation of explosives and poisonous gases. Although there are many fewer of these shipments and the security is generally tighter, these materials can cause extensive damage. Poisonous gases have the potential to kill many people and explosives can damage infrastructure such as bridges, tunnels, or dams.

Hazardous materials are also a security risk in storage and loading facilities. Many loading facilities in the gasoline and propane industries are not manned. Drivers access the facilities with electronic key cards or other similar devices that may be stolen. Destruction of these facilities and operations can lead to significant loss of life and to major societal disruptions such as affecting supplies of home heating fuel. Hazardous materials, particularly poisons, are a major threat to water supplies.

Operational Testing - As the FMCSA investigated methods to improve security, it became apparent that there are significant technological solutions in the market that, if applied to shipments of hazardous materials, could improve security. Examples of these solutions include remote vehicle tracking system, remote vehicle disabling systems, off-route alert systems, and electronic ignition locks. While these systems exist, they are not in widespread use in the commercial transportation of hazardous materials. In addition, as in the case of vehicle tracking systems, the systems have previously been geared toward efficiency and its security benefits have not been fully explored.

The FMCSA believes that conducting an operational test to demonstrate the effectiveness of these technological solutions in enhancing security will speed up their deployment by the industry. The evaluation of the operational test will also quantify the maintenance costs of these systems, and other operational and safety benefits beyond their security purposes.

Purpose - The purpose of this initiative is to quantify the security costs and benefits of an operational concept that applies technology and improved enforcement procedures to HM transportation. A field operational test shall be conducted to demonstrate an approach that ensures the safety and security of HM shipments from origin to destination.

Scope - The scope of this effort shall include activities that address the following risk areas: driver verification, off-route vehicle alerts, stolen vehicles (both tractors and trailers), unauthorized drivers, cargo tampering, and suspicious cargo deliveries. Suspicious cargo deliveries include the unauthorized shipment of certain types of HM to facilities that would not normally use the HM in their business operations and the shipment of different types of HM, that when combined, could pose a security risk.

The scope of this project shall be organized in three stages: the pickup of HM from shipper, the transportation of the HM, and the delivery of the HM to the receiver at the final destination. The operational test shall demonstrate an integrated operational approach that includes as many of the following functions as practicable within the constraints of this activity.

1. Pick up of HM from shipper

2. En-route transportation of HM

3. Delivery of HM to receiver

Offerors are strongly encouraged to propose solutions that utilize commercial-off-the- shelf technologies that can be implemented rapidly by the motor carrier industry.

The project scope shall also include the following items:

• Up to $500,000 of the provided funds are from the Motor Carrier Safety Assistance Program (MCSAP). These funds are only eligible to be spent on contractor labor, labor of State enforcement personnel involved in testing equipment, or equipment provided to States or State enforcement agencies. Expenditures of these funds must be specifically identified in the cost proposal.
• A period of performance of 24 months. Within that time, there will be a ten-month pilot test.
• An independent evaluation of the test will be conducted. The USDOT shall provide the independent evaluator and the funding for the evaluation.
• The evaluation process will run parallel to project design and testing.
• The contractor shall participate in evaluation activities throughout the test.
• Applicants must explain how their test proposals will meet the operations and information needs of stakeholders. These stakeholders include the following:
• Shippers who prepare and offer the HM shipment for transportation;
• Motor carriers who physically transport the HM from its origin to destination;
• Receivers who accept and verify the HM at the destination;
• Federal, State and local government agencies that are concerned with the safety, security, inspection, regulation, and documentation of the drivers, vehicles, and HM during transport.
• Applications also should describe the geographic coverage and functional responsibilities of each party involved in the operational test, addressing both the public sector and private sector interests.
• Proprietary information (i.e., data relating to specific, identifiable transactions or assets of participants that are sensitive and of commercial value to their competitors) will not be released to the public domain for purposes of this operational test, and will be made available only upon the authorization of the Contractor.
• Offerors shall propose teams that include four motor carriers, a total of 100 tractor-trailer units, four shippers, four receivers, a systems integrator, and HM industry and state safety enforcement representatives. Offerors should select for this project motor carriers and shippers that are diverse in terms of size, type of operations, technology applications and HM experience.

Task 1 - Conduct a Risk/Threat Assessment

The contractor shall conduct an assessment that organizes the safety and security risks and threats in the motor carrier transportation of HM. This assessment will serve to frame the safety and security risks being addressed by this operational test and be used as the basis for developing the Concept of Operations (Task 2). The assessment will categorize the threats and assist and be the basis for the prioritization of countermeasures. The assessment shall at a minimum include consideration of the following elements:

• Type and characteristics of commodity;
• Quantity of HM in individual shipments;
• Frequency of HM shipments (e.g., gasoline);
• Type of operation (bulk and non-bulk; private and for-hire; non-military and non-DOE);
• Routing and length of haul (local, regional, national and international); and
• Commodity loading and transfer points.

Deliverable: A risk/threat assessment. Due date: One month after effective date of the task order agreement. [Note: MCSAP funds are eligible for this task]

Task 2 - Develop a Concept of Operations

The contractor shall prepare a concept of operations document that includes a detailed narrative of the proposed test and incorporates the risks identified in Task 1 and the functions listed in the Scope section. If the utility of a function listed in the Scope section is not supported by the risk/threat assessment, then the contractor can request approval from the FMCSA and FHWA to omit the function from the Concept of Operations document. The contractor shall provide a detailed work plan and specify the HM classes included in the project. The contractor shall also specify the names of all stakeholders, i.e., motor carriers, shippers, receivers, and public sector representatives participating in the project.

Deliverable: A concept of operations that includes a detailed work plan. Due date: Two months after effective date of the task order agreement. [Note: MCSAP funds are eligible for this task]

Task 3 - Develop Requirements

3.1 Operational Requirements Analysis - The contractor shall conduct a requirements analysis based on the functions listed in the Scope of this task order. The contractor shall meet with FMCSA and FHWA staff to clarify and to modify the above requirements. The contractor shall assist the independent evaluator with evaluation elements in the requirements analysis.

3.2 System Requirements and Specifications - The contractor shall take the results of the requirements analysis and map the findings to system requirements and specifications. In addition, the contractor shall assist the evaluation team in the development of evaluation test plans that measure the costs, benefits, and performance of the proposed technical approach.

Deliverable: Requirements analysis document Due date: Four months after effective date of the task order agreement. [Note: MCSAP funds are eligible for this task]

Deliverable: System requirements and specifications document. Due date: Four months after effective date of the task order agreement. [Note: MCSAP funds are eligible for this task]

Task 4 - Develop System Design

The contractor shall develop a system design document that includes logical and technical architectures, subsystem design, and interface design.

Deliverable: System design document Due date: Five months after effective date of the task order agreement. [Note: MCSAP funds are eligible for this task]

Deliverable: The contractor shall hold a design review meeting for FMCSA, FHWA, and the independent evaluator. Due date: Six months after effective date of the task order agreement. [Note: MCSAP funds are eligible for this task]

Task 5 - Conduct the Field Operational Test (FOT)

The contractor shall initiate the FOT after FMCSA and FHWA approve the system design document at the design review meeting. The contractor shall prototype the proposed technologies, data collection schemes, and procedures on one vehicle. The contractor shall run the prototype for 15 days.

Deliverable: The contractor shall provide the results of the prototype to the FMCSA, the FHWA and the independent evaluator. Due date: Eight months after the effective date of the task order agreement. [Note: MCSAP funds are not eligible for this task]

The FMCSA and FHWA will review the results of the prototype. With the approval to proceed from the FMCSA and FHWA, the contractor shall then perform preparatory activities prior to the start of the operational test. In this preparatory stage, the contractor shall equip the test vehicle fleets; select, recruit, and train all test drivers; perform system checks on communication links and the land-based and vehicle-based technologies.

Due date: This ramp up for the operational test shall be completed 45 days after start-up. [Note: MCSAP funds are not eligible for this task]

The operational test shall take place over a ten-month period. In the operational test, the contractor shall operate and maintain the test vehicles, manage all of the logistics of the testing; and collect, process all field test data in the manner specified in the test plans and make it available to the independent evaluator in a timely manner.

Deliverable: Findings from the prototype. Due date: On or before eight months after the effective date of the task order agreement. [Note: MCSAP funds are not eligible for this task]

Deliverable: Monthly status reports and monthly data deliveries during the operational test. Due date: 11 months to 22 months from the effective date of the task order agreement. [Note: MCSAP funds not are eligible for this task]

Task 6 - Evaluation

6.1 Development of Evaluation Test Plans - The development of evaluation test plans shall be the responsibility of the independent evaluator. The contractor shall participate in discussions held by the independent evaluator with FMCSA and FHWA to develop measures of effectiveness and test plans that collect data to verify the proposed system specifications and design meet the function requirements in the Scope. The contractor shall participate in these discussions as part of Tasks 3.1 and 3.2.

6.2 Data Collection - The contractor shall assist the independent evaluator in the collection of current operations or "before" data and in the collection of data during the pilot test. The specific data elements, measures, and approaches to collect data shall be specified in the Evaluation Test Plans. Also, a field test data-handling plan shall be included in the Evaluation Test Plans document. The data-handling plan shall describe that data that will be generated by the operational test and the handling requirements. The plan shall list all data and the contractor shall propose which data is proprietary and which is not. The contractor shall include provisions for sharing of the proprietary data developed during the operational test. The Department of Transportation and the operational test partners shall jointly own all data generated during the program.

6.3 Data Analysis - The contractor shall assist the independent evaluator in the analysis of the evaluation data upon the request of the independent evaluator and the approval of the FMCSA and FHWA.

Deliverables: Evaluation test plans. These deliverables are the responsibility of the independent evaluator. Due date: Three months after the effective date of the task order agreement. [Note: MCSAP funds are eligible for this task]

Task 7 - Final Project Report

The contractor shall write a final report for the project. This final project report shall summarize the contractor's findings, experiences, and lessons learned during the project. This final project report shall be provided to the independent evaluator as input to the evaluator's final evaluation report in Task 8.

Deliverable: Final project report Date due: 23 months after the effective date of the task order agreement. [Note: MCSAP funds are eligible for this task]

Task 8 - Final Evaluation Report

The independent evaluator shall write a final evaluation report. The contractor shall provide all data and information for the final evaluation report as deemed necessary by the independent evaluator including the contractor's final project report in Task 7. The contractor shall assist the independent evaluator in the timely completion of the final evaluation report. This report shall include the following findings:

• The safety and security benefits of the proposed operational concept that includes new technologies and procedures
• The costs of the proposed technical approach. The cost shall be broken down on a per vehicle basis. An estimate for the total cost for the HM motor carrier industry to deploy the technical approach shall be calculated.
• Security gaps identified during the test
• Performance specifications for required hardware and software
• Deployment strategy to support widespread deployment in the HM industry. This strategy shall include an implementation plan and operations and maintenance requirements for the proposed technologies

Deliverable: Final evaluation report Date due: 24 months after the effective date of the task order agreement. [Note: MCSAP funds are eligible for this task]

Summary List of Deliverables

*The independent evaluator is responsible for this deliverable

Technical Evaluation Factors

The following criteria will be used to evaluate proposals:

• A clear and concise operational test concept (25%);
• The offerors' technical qualifications which are relevant to work on the project, and their specific experience with security systems, mobile communications, total asset visibility, communication interfaces, and HM industry practices (25%);
• The potential for rapid deployment after the operational test is over (15%);
• Opportunities to transfer deployment strategies and system processes (15%);
• A commitment to a project schedule that is aggressive, but achievable (10%); and
• Public and private leveraged resources (10%).
• All applications for operational tests will be evaluated as written and on their own merits.

Cost Proposal

Your proposal shall be Cost Plus Fixed Fee.

The government estimate for this task order is $2,500,000.

Offerors shall provide a cost breakdown for each task in their proposal. This breakdown shall include labor, equipment, supplies, ODCs, indirect costs and profit. Include a summary page of all tasks.

You are reminded of the aforementioned restrictions of the $500,000 MCSAP funds (see page 3).

The test is jointly funded by the FMCSA and the USDOT Joint Program Office for ITS. The USDOT Joint Program Office for ITS is funding the independent evaluation.