EXT420 – Freight Bidding. 1.International Procurement Process Overview 2.Create and use an International Freight Preference Bid Response (Offer/Quote)

EXT420 – Freight Bidding

1. International Procurement Process Overview2. Create and use an International Freight Preference Bid

Response (Offer/Quote)3. Access Bid Invitations (Solicitations) on the Public

Procurement Documents Page 4. Submit a Vendor Response (Offer/Quote)5. Maintain Vessel Assignments6. Change a Vendor Response before and after Submission

Lesson Objectives• Recognize the basic end-to-end steps associated with

the Procurement Process• Define new key terms

Farmers/Producers

US Freight Carriers

MARAD

US PortsCommodity Suppliers

Schools (27,000 school dists, 94,000 schools)Indian Tribal Orgs (92 ordering agencies)

Non- Profits (60 ordering agencies)

Domestic

Foreign

World Food Organization Foreign Governments (70 Nations)Private Volunteer Organizations (30+)

BUY DISTRIBUTE/SHIP

RECEIVEPRODUCE

FNS

FAS

USAID

Warehouse WarehouseAMS

FSA

Multi Agency EnvironmentIntegrating processes and technology across the five U.S. agencies responsible for planning, procuring, managing, and delivering commodities and food supplies domestically and around the world…

WBSCM Term FAR Term Old Term

Bid Invitation Solicitation Solicitation

Bid Response Offer Offer/Quote

Open Offer / Quote Open Offer / Quote Bid Opening

Term Definition

Commodity Standard food commodities that USDA purchases

Freight Corresponding freight requirement for each commodity

Term Definition

Service Service related item such as Vessel Loading Observation, Warehousing, Storage

Non-standard Commodity

Materials used primarily for emergencies such as baby formula, bottled water that USDA does not typically purchase

Term Definition

Long Procurement Number (LPN)

AGAR Document Number System

Bid Submission Date

Date chosen by a USDA agency in which all Vendor Responses (Offers/Quotes) must be received

1. The first step in the International Freight Bidding process is:A. USDA Publishes Bid InvitationB. International Freight Award

C. Vendor Response

2. T/F: Valid Vendor Responses (Offers/Quotes) are evaluated by the Bid Evaluation Optimization System (BEOS)A. True B. False

Lesson Objectives• Search for an International Freight Bid Invitation

(Solicitation)• Create a Freight Preference Bid Response (Offer)• Edit a Freight Preference Bid Response (Offer)

International Freight Preference

•The USDA will issue one International Freight Preference Bid Invitation (Solicitation)

•Freight Vendors will create Bid Responses (Offer) to that Bid Invitation (Solicitation) that will serve as a template for all future offers

•Freight Preference Bid Responses (Offers) are complete after being created, they will never be submitted to the USDA for review

•Freight vendors should enter re-occurring loadport, terminal and intermodal costs in their Preference Bid Response (Offer)

•There is no limit to the amount of Preference Bid Responses (Offers) that can be created

•Creating Preference Bid Responses (Offers) is optional, but HIGHLY recommended to save time and redundancy

•After finding the International Freight Preference Bid Invitation (Solicitation) the vendor will navigate to the Offers screen to create a Freight Preference Bid Response (Offer)

•All fields at the Header level will be left blank except the Bid Label

― The Bid Label field should include a meaningful name for this particular Preference Bid Response (Offer)

―For example, the preferences for the West Region which will include transportation costs for the different Loadports, Terminals and Intermodal bridges within that region might be labeled ‘West Region Freight Preference’

• Bulk vendors have to enter prices for each terminal within in a region. Therefore, it behooves these bulk vendors to

create a Bid Preference.

• There are no such rules for the transportation of packaged commodities.

• Bulk - Vendor can store preferences for:• Regions• Loadports• Terminals

• Packaged - Vendor can store preferences for:• Regions• Loadports• Terminals• Intermodals

• Freight Preference Bid Invitations will not be amended

•Terminal – Commodity vendor transports goods all the way to the port terminal

• Intermodal Bridge – Commodity vendor and Freight vendor meet at a third party controlled bridge where goods can be transferred

• Intermodal Plant – Freight vendor picks up goods from commodity vendor’s warehouse or manufacturing plant

Vendor Response record that was

created

Create a Bid Response (Offer)

Transportation costs are entered under the

Item Data tab

Premium Cost (P/T)

The per/MT cost applied to load and discharge points; applied to the quantity at the terminal/port/region

Premium Cost (P)

The per/MT cost applied to entire cargo in the region; based on each additional port

Premium Cost (T)

The per/MT cost applied to entire cargo in the region; based on each additional terminal at a port

Call Cost (P/T)

The lump sum cost applied to load and discharge points; applied once to the location/level is specified

Call Cost (P)

The lump sum cost applied to load points; applied to each additional load port of the award

Call Cost (T) The lump sum cost applied to Terminals; applied to

each additional terminal at a port of the award

Handshake ( ) button allows for price

components to be entered

Key Price Components

Regions that are selected in the Location field

Seattle4.00

Oakland3.00

San Pedro4.50

Los Angeles2.50

West Region

Load ports selected in the Location field

Preference pricing can be entered for one or

more terminals

• Intermodal point costs are entered in the same manner region, load port and terminal are entered.– Remember, intermodal costs are not entered for bulk goods

Intermodal costs pricing component

• Auto Playback Tutorial: watch the simulation with no user input required

• Standard Tutorial: guide yourself through the simulation by clicking on certain areas when prompted

1. The Copy From Bid/Preferences field ___________:A. Only stores USDA created Preferences.B. Lists all Preferences currently available for

that Vendor, when the value of the Copy From field is PREFERENCE.

C. Will contain no entries in the list unless Load Point Pricing has been entered into the new Offer first.

2. T/F: Each Vendor Response can have multiple Offers.A. TrueB. False

Lesson Objectives• Recognize Bid Invitation (Solicitation) Notifications• Display Public Procurement Documents via SUS

(Supplier Self Service)• Display International Freight Bid Invitations

(Solicitations) in SUS

When the Bid Invitation (Solicitation) is created, the system will generate a Long Procurement Number (LPN) to identify the solicitation:

– For example: AG - INTF - S - 10 - 0194

S = SolicitationP = Purchase OrderC = Contract (IDIQ)D = Delivery/Task Order

• 3J14 Livestock• 3J15 Poultry• 3J16 F & V• INTB IPD Bulk• INTP IPD Packaged• INTE IPD Empty Bag• INTG IPD General• INTS IPD Services• INTF IPD Freight• DPRO DPD FAR• DCCC Price Support

AG - INTF - S - 10 - 0174 – P0001

Folders are divided into Agency-Program

groupings

• Auto Playback Tutorial: watch the simulation with no user input required

• Standard Tutorial: guide yourself through the simulation by clicking on certain areas when prompted

1. Bid Invitations (Solicitations) are published to _______ .A. Public Procurement Documents Page in WBSCMB. The Vendor’s website Home page

C. www.usda.gov/solicitations-commodity/proc

2. Which of the following is False?A. Bid Invitations (Solicitations) are available for

viewing as soon as they are createdB. Vendors can receive Bid Invitation (Solicitation)

email notices.C. Vendors can see only those Bid Invitations

(Solicitations) for products they are approved to supply.

Lesson Objectives• Become familiar with Freight Pricing Components• Create a Freight Vendor Response (Offer/Quote)

Clicking this Create button creates the bid

response (offer)

Click this Create button to access the screen

where offer details can be entered

There are 5 steps when entering details on the Freight Bid Response (Offer):

1. Complete Basic Data Information2. Select a Bid Preference to Copy from3. Review the pricing structure; edit if necessary4. Enter Discharge Port Information & Constraints5. Submit Offer

Step 1:Complete detail within

Basic Data link

Complete the Container Line Service and Constraint Group fields within the Basic Data link

The 2nd step in the Freight Bid Response is to copy the Freight

Preference Bid Response data on to the offer

Step 2:Copy the Bid

Preference onto the Offer

Handshake button allows you to see and change pricing

• Additional pricing can be entered on the commodity line item for:– Discharge Port costs– Fumigation– Foreign Inland costs– Storage– Foreign Warehouse

The 4th step in the Freight Bid Response process is to enter Discharge Port details & Port Constraints on the Bid Response

(Offer)

Discharge Port information needs to

include:Port name &

Estimated Time of Arrival

Discharge Port name & Estimated Time of

Arrival

• Auto Playback Tutorial: watch the simulation with no user input required

• Standard Tutorial: guide yourself through the simulation by clicking on certain areas when prompted

1. Pricing for Foreign Inland (Destination) and Fumigation are ______ .A. Optional.B. Are required for land locked destinations.

C. Fumigation is optional while Foreign Inland (Destination) pricing is required.

2. Which one of the following is true?A. Scales are required for Pricing(Contract/Bid).B. Scales are not used with Freight Offers for

Intermodal Points.C. Freight Agency is an optional field for the

offer.

Lesson Objectives• View existing Vessel assignments• Assign a new Vessel to your company

Vessel Assignment

Vendor views a complete list or narrows the list with search criteria

Vessel Master Data created

Suppliers will be able to only select the Vessels for the Vendor Response (Offer/Quote) that have been assigned to that Vendor

Vendor assigns Vessels to use in Vendor Responses (Offers/Quotes)

USDA creates Master Data for each Vessel

Vendor displays list of Vessels

Supplier

USDA

• Auto Playback Tutorial: watch the simulation with no user input required

• Standard Tutorial: guide yourself through the simulation by clicking on certain areas when prompted

1. The Corporate Vendor Admin ______________A. Can assign or un-assign a Vessel to their

company.B. Is the only one that can edit Vessel details,

such as Max Draft and Service Speed Knots.

C. Can create new Vessels that are not already in the list.

2. A Vessel with a Flag Registry of China, would enter what for the Freight Vendor Service?A. P1.B. P3.C. P2.

Lesson Objectives• Edit and change a Vendor Response before it has

been submitted• Edit and change a Vendor Response after it has been

successfully submitted

Changes Before Submission

Changes After Submission

• Auto Playback Tutorial: watch the simulation with no user input required

• Standard Tutorial: guide yourself through the simulation by clicking on certain areas when prompted

1. When a new Vendor Response (Offer/Quote) is submitted, what happens to the original Vendor Response (Offer/Quote) that was submitted first?A. The original is archived and ignored by BEOS.B. It is still active until an email is sent from the

Vendor to the USDA stating otherwise.

C. The original and the new Vendor Response (Offer/Quote) is evaluated by BEOS.

2. Which one of the following is true?A. Constraints can be copied.B. Freight Offers cannot be copied.C. Constraints only apply to Bulk Freight.

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