3866774_SOW.docx

STATEMENT OF WORK (SOW)

Fl00-PW-229 Bearing # 1 Carbon Seal Face Assembly

FILE NUMBER: PR #FD 2030-24-00658 REV.0

DATE: January 30, 2024

PREPARING ORGANIZATION:

AFLCMC/LPSBE

TINKER AFB, OK 73145-3030

Warning -this document contains technical data whose export is restricted by the arms Export Control Act (Title 22, U.S.C. 2751 et seq.) or the Export Administration Act of 1979, as amended, Title 50, U.S.C., App 2401, et seq. violation of these export-control laws is subject to severe criminal penalties.

Dissemination of this document is controlled under DoD Directive 52.30.

FD 2030-24-00658

Table of Contents

SECTION I

DESCRIPTION OF SERVICES

This Statement of Work (SOW) establishes the minimum work requirements to return F100-PW-229 No. I Bearing Carbon Seal listed below by National Stock Number (NSN) and Part Number (P/N) to a serviceable like new condition. F100-PW-229 No. 1 Bearing Carbon Seal received by the contractor, as set forth in this contract shall be remanufactured, overhauled/repaired, modified, tested, prepared for storage and shipped in accordance with (IAW) the requirements in this SOW and the contract.

DATA

1.1.1 Reporting Requirements

1.1.1.1 Product Quality Deficiency Report (PQDR- SF 368): The contractor shall prepare a PQDR on all design and quality control (material) deficiencies found IAW the procedures of TO 00-35D-54. Applicable portions of TO 00-35D-54 relative to quality defects will apply. The contractor shall hold exhibits of reported deficient items pending disposition from the ACO representative. Report preparation, distribution, holding and tagging of exhibits shall be IAW TO 00- 35D-54. The contractor shall furnish an information copy of the SF 368 to USAF F100 Engineering Source Authority listed in TO 2J-F100-53-1, WP 600 00.

1.1.1.2 TO System Publication Improvement Report (AFTO Form 22): The contractor shall prepare a PIR when an error or improvement changes the meaning of the instructions or information contained in technical directives and will prevent the adequate performance intended. The contractor shall accomplish a PIR IAW TO 00-5-1 and submit one copy to OC-ALC/ENR. Minor discrepancies of non-technical nature such as improper sequence of pages, typographical errors, transportation errors, misspelled words, etc., shall not be reported. The contractor shall report omissions of pertinent technical data, correction of overhaul procedures in TO's, or desired changes to TO data shall likewise use the AFTO Form 22.

1.1.1.3 Teardown Deficiency Report (TOR): A TOR shall be accomplished on any PQDR exhibit received for investigation. The report shall be completed IAW the procedures established on DD Form 1423 as set forth in the contract.

1.1.2 Other Records, Forms and Reports

1.1.2.1 The contractor shall make available to the appropriate ACO representative the required information to enable him to review and/or verify monthly production status reports on end items and to enable him to complete his records or to complete such other reports as may be required.

1.1.2.4 Completed DD Form 1574 Serviceable Tags are required JAW MIL-STD-129P, paragraph 5.2.21.a.

1.1.3 Technical Data

1.1.3.1 TO's listed in this specification are the basic directives to be used in accomplishing the remanufacture/overhaul requirements of the contract.

1.1.3.5 In the event of a conflict between the instructions in this SOW and the applicable technical directive, the following order of override precedence applies (descending order): 1) this SOW, 2) the end item TO, 3) other technical directives.

SECURITY

1.1.4 Contractor's Security Controls: Equipment and materials covered by this SOW are not classified.

QUALITY

1.1.5 The contractor shall provide and utilize an inspection/quality system IAW ISO - 9001.

1.1.6 The contractor shall investigate, take corrective action if necessary, and reply to user initiated PQDR forwarded to them by the ACO. This applies to all PQDRs submitted against products overhauled/remanufactured by the contractor and/or their subcontractor or vendors. Sufficient priority shall be given to PQDR investigation to allow timely corrective action and to meet requirements of TO 00-35D-54.

1.1.7 No defective parts shall be delivered to the Government.

DELIVERY SCHEDULES

1.1.8 The delivery schedules shall be IAW the contract delivery schedules. The contractor shall meet the delivery schedule.

CONDEMNATION, REMANUFACTURE, AND OVERHAUL

1.1.9 Contractor's Scrap Procedures: The contractor shall prepare and submit to the Government Property Administrator (GPA) for approval, a written plan that sets forth procedures for handling scrap materials. These procedures shall include the requirements stipulated in the Federal Acquisition Regulation (FAR) 45.1, titled "General". Disposition of condemned parts containing critical alloys and/or precious metals shall by IAW TO 00-25-113, 00-25-113-Fl00-ENG and FAR 45.6 titled "Reporting, Reutilization, and Disposal".

1.1.10 Condemnation: The contractor shall not condemn end items without written approval of the ACO or their representative.

1.1.10.3 The serial number and part number of any life-limited item, which is condemned, must be transmitted to F100 Engineering Source Authority listed in TO 2J-Fl00- 53-1, WP 600 00.

1.1.11 Remanufacture: End Items determined to be beyond economical remanufacture shall not be remanufactured by the contractor unless authorized in writing by the ACO.

HANDLING

1.1.12 The contractor shall have physical custody of end items and parts received at their facility and shall be responsible for their constant care during such custody.

1.1.12.1 NIA - Note: The F100-PW-229 Bearing# I Carbon Seal is not serialized tracked part, and therefore, CEMS reporting is not required in this contract. The receipt and status of all serialized components or accessories, which are tracked in CEMS, must be reported IAW Para 1.1.2.2 of the SOW.

INVENTORY

1.1.13 Each end item shall be inspected by the contractor upon receipt to determine its condition and to ensure that its item identification corresponds to that shown on the contract schedule. Non-conforming end items shall be reported to the appropriate ACO representative.

PRESERVATION

1.1.16 Reference 1.11.5 for “corrosion control” requirements.

RECEIPT/HANDLING OF PQDR EXHIBITS

1.1.17 Any exhibit received for the purpose of an investigation into the cause of a material, or a quality deficiency shall be kept separated from normal remanufacture assets until the investigation is completed. The contractor shall provide the exhibit receipt date through the ACO with the F100 Engineering Source Authority listed in TO 2J-F100- 53-1, WP 600 00.

GENERAL WORK REQUIREMENTS

1.10.1 The instructions for the remanufacture of items stipulated in this SOW shall be performed IAW the applicable T.O.'s and the below exceptions.

1.10.1.1 The contractor is authorized to inspect per part drawing and part QAD (Quality Assurance Document).

1.10.2 The contractor shall use protective equipment to protect items from damage as they are processed through the plant. Special protection shall be placed over the machined surfaces of end items.

1.10.3 The contractor shall inspect the various disassembled components or part of the end item to determine if further remanufacture is needed. Subsequent remanufacture shall be accomplished IAW the applicable portion of the applicable overhaul technical order and supplementary instructions specified herein.

1.10.4 The contractor shall rework all reparable parts so that they can meet the serviceable requirements of this SOW.

I. I 0.5 The contractor shall continue to use all parts and assemblies determined serviceable and appropriate as a result of inspections and checks, except as specified in this SOW.

1.10.6 The contractor shall replace condemned parts of the end item with like serviceable parts listed in the applicable technical order IPB unless otherwise specified in or within this SOW.

1.10.7 When overhaul kits are available for the overhaul of an end item, such kits shall be used IAW the applicable technical order and changes thereto or the specific instructions contained in this SOW.

1.10.8 Where the contractor is directed to hold an item for OC-ALC disposition by any cited publication herein or be any statement made within this SOW, such items shall be reported to the ACO through the GPA for disposition.

I. 10.9 Remanufacture, to the maximum extent, is desired when such remanufacture is economically feasible. The contractor is encouraged to submit new or improved remanufacture procedures to the Government whenever practical. Procedures may be submitted on an AFTO Form 22 as specified in this SOW or by any other means authorized under this contract. This does not preclude the contractor's submission of remanufacture procedures, which are not economically feasible, when such remanufactures are advantageous to the Government.

1.10.10 All of the contractor's operators of special processes, such as X-ray, radiography machines, Fluorescent Penetrate and Magnetic Particle Inspection Equipment, as well as welders and moralizers, shall be qualified and certified for operation IAW applicable military specifications when listed in the SOW.

1.10.11 Fit and tolerance limits shall be IAW applicable overhaul TO/contractor's processes and procedures unless otherwise specified.

1.10.12 Fluids, oil, greases and compounds shall conform to and be used as directed in the overhaul TO and instructions contained in this SOW.

SPECIFIC WORK REQUIREMENTS

1.11.1 Removal

1.11.1.1 Not Applicable.

1.11.2 Disassembly

1.11.2.1 Not Applicable.

1.11.3 Cleaning

I.I 1.3.1 FI00-PW-229 Bearing #1Carbon Seal shall be cleaned JAW TO 2J-F100-53-6, WP 201 00.

I. 11.3.2 The contractor shall ensure that cleaning and preserving materials meet the requirements specified in TO 2J-F100-53-6 WP 201 00, or TO 2-1-111 and that such materials are properly used during application.

1.11.4 Inspection

1.11.4.1 Inspection of F100-PW-229 Bearing # I Carbon Seal shall be accomplished IAW

2J-F100-53-6 WP 306 00.

1.11.5 Corrosion Control

1.11.5.1 The corrosion control of F100-PW-229 Bearing #1 Carbon Seal during remanufacture and storage shall be accomplished IAW TO 2-1-111.

1.11.6 Remanufacture

1.11.6.1 Remanufacture of F100-PW-229 Bearing #1 Carbon Seal shall be accomplished IAW 2J-F100-53-6 WP 406 00.

1.11.6.2 The contractor shall identify all remanufactured Fl00-PW-229 Bearing #1 Carbon Seal with the contractor's CAGE IAW MIL-STD-130N.

1.11.7 Installation

1.11.7.1 Not applicable.

1.11.8 Test And Government Acceptance

1.11.8.1 Inspect, test and check each remanufactured item IAW TO 2-1-111 and all applicable technical orders.

1.11.8.2 The Government shall accomplish acceptance.

1.11.9 Product Verification Audit (PVA)

1.11.9.1 Remanufactured items shall be subject to PVA if requested by the government.

1.11.9.2 To perform PVA, the government shall be permitted to select at random such quantities of items as may be necessary to determine quality of workmanship and materials.

1.11.9.3 After notification by the ACO that a PVA is required, the contractor will follow the procedures of Appendix 3 - Product Verification Audit Procedures.

1.11.10 Technical Publication Compliance

1.11.10.1 Compliance with all TO's, Directives, Government Specifications, Drawings, etc., listed herein is mandatory, unless otherwise specified in this SOW, when:

1.11.10.1.1 They have not been previously accomplished 1.11.10.1.2 They are pertinent to the end item.

1.11.10.1.3 They prescribe Air Force Policies, use of materials and procedures for remanufacture.

1.11.10.2 For solicitation purposes, the contractor may contact USAF F100 Engineering Source Authority listed in TO 2J-F100-53-1, WP 600 00, for Instructions for viewing or purchasing technical data required for maintenance of this contract. Upon contract award, the contractor shall establish and maintain a TO distribution account IAW TO 00-5-1; and be placed on initial distribution for one copy each of the TO's and TCTO's listed in this SOW. The contractor shall the PCO or COR for guidance in obtaining a TODO account. Once the contractor's TODO account is in operation, the contractor shall maintain all TO's and TCTO's and other technical directives listed in the SOW in an updated and current status IAW TO 00-5-1 and TO 00-5-3. The contractor is required to comply with the latest dated TO; TCTO and other technical directives issued and will be contractually covered during the time the work is accomplished. For example, an item already in work will continue to be worked under the existing contractual scope of work until such time that the latest TO revisions can be negotiated as to price and scheduled incorporation. The contractor shall submit a monthly review of changes to TO's, TCTO's, and other applicable directives received during that period. However, if a change is received that has a cost impact greater than 10% and/or is critical to safety of flight, the contractor shall notify the ACO within ten (10) days of receipt of that change and also shall provide the cost impact with his backup data. The contractor shall not begin working with new publication until authorization has been granted by the ACO/PCO.

1.11.10.3 Copies of other Air Force publications required in the performance of work outlined in this SOW will be requisitioned through the ACO. Submit requests to appropriate ACO representative for review. TO 00-5-1 and TO 00-5-3 are provided in explanation of the Technical Order System and for pertinent distribution, requisition and storage information.

1.11.10.4 In the event a follow-on to this contract is awarded, the "Package File" at the contract facility as of the end of the previous contract will be applicable to the follow-on contract and will be updated through amendments to the new SOW of the new contract. This procedure will ensure continuity of the publication data from one contract to another.

APPICABLE TECHNICAL ORDERS

This is a preliminary list of Technical Orders. The contractor is responsible for ensuring they are using the latest edition/revision.

FD 2030-24-00658

APPLICABLE DIRECTIVES

APPLICABLE DOCUMENTS

1.11.11 LPF-QAR-001: "GENERAL QUALITY ASSURANCE DOCUMENTS FOR Fl00 ENGINE FC/DC BREAKOUT COMPONENTS"

1.11.12 LPF-QAR-002: "CHANGE PROCEDURES FOR PROCESS ORDERS"

1.11.13 LPF-QAR-004: "LPFR QUALITY ASSURANCE REQUIREMENTS FOR Fl00 ENGINE COMPONENTS"

1.11.14 LPF-QAR-006: "LPFR QUALITY ASSURANCE REQUIREMENTS FOR PRODUCT VERIFICATION AUDIT (PVA) TEST PLANS AND REPORTS

1.11.15 LPF-QPR-007: "LPFR QUALITY PLAN REQUIREMENTS FOR PLASMA SPRAYED COATINGS"

1.11.16 LPF-QPR-009: "LPFR QUALITY PLAN REQUIREMENTS FOR VACUUM BRAZED ASSEMBLIES"

1.11.17 LPF-QPR-016: "LPFR QUALITY PLAN REQUIREMENTS FOR DURABILITY CRITICAL PARTS

1.11.18 LPF-QPR-017: "LPFR QUALITY PLAN REQUIREMENTS FOR CAST HONEYCOMB RING SEGMENTS AND RING ASSEMBLIES"

1.11.19 LPF-QPR-018: "LPFR QUALITY PLAN REQUIREMENTS FOR NONDESTRUCTIVE INSPECTION"

1.11.20 LPF-QR-001: "BASIC TECHNICAL DATA REQUIREMENTS FOR FRACTURE CRITICAL AND DURABILITY CRITICAL PARTS"

1.11.21 LPF-QR-002: "CONDITIONS OF WAIVER FOR FRACTURE CRITICAL AND DURABILITY CRITICAL PARTS"

1.11.22 EI FOR RQR-1: "GENERIC ENGINEERING INSTRUCTIONS FOR REMANUFACTURE OF Fl00 PARTS IN RQR-1"

1.11.23 RQR-PSD-1 with source demonstration required: " REPAIR QUALIFICATION REQUIREMENTS (RQR) FOR ÐROPULSION CRITICAL SAFETY ITEMS (CSI) & CRITICAL APPLICATION ITEMS (CAI) " MISSION ESSENTIAL SERVICES NIA- Note: Not required in this contract.

1.1.18 The contractor shall prepare for the continuation of essential DoD services during crisis IAW Depart of Defense Instruction (DoDI) 3020.37. In a state of emergency, if the Government deems necessary, the contractor shall provide all services necessary to ensure mission accomplishment. On occasion, services may be required to support an activation, or exercise of contingency plans outside normal duty hours. IAW DoDI 3020.37, the contractor shall develop a contingency plan and furnish a copy to the PCO for those tasks identified as essential to provide reasonable assurance of continuation during crisis conditions.

SURGE

1.1.19 In the event that the DoD experiences an unplanned spike or sudden increase in demand, due to major theater warfare or national emergency (also known as surge, reference DFARS 217.208-70 and DFARS 252.217-7001) and invokes surge: The contractor is willing to work to meet and sustain this demand for quantity levels above and beyond normal peacetime requirements. The contractor is required to provide the Government a surge plan. A CDRL and DID are associated with the surge requirement. After being notified of the surge demand in writing, the contractor may see additional orders and/or will see the priority status elevated on current orders. The contractor may do one or more of the following to fill the demand:

1.1.20 The contractor will maintain level of safety stock of components to draw from to perform additional repairs.

1.1.21 Add additional shifts to increase production within the contractor and with suppliers.

1.1.22 The contractor will work with the various manufacturing sites and their supply chain to expedite production. The contractor will be notified in advance of and be given the opportunity to negotiate; any expedite charges that might apply at the time of surge.

Contractual requirements for production of this contract are addressed in Part I. The schedule and surge requirements will be on a best-effort basis.

1.1.23 Surge plans have four basic phases (assessment, execution, sustainment, and exit/termination) and the plan associated with the surged items requested need to address those phases. The Government will provide, in writing, the items on contract that are requested to be surged. That will include the item, the quantity, and timeline with respect to delivery schedule with estimated termination dates when known.

1.1.24 contractors will provide a plan that includes the identified surge items, how they are going to meet the requirement, timeline to implement the plan, ability to sustain the surge through termination, identify any limiting factors or supply chain risks that will impact current surge production and future requirements for identified items.

CONTRACTOR EMPLOYEES

1.1.25 Contractor employees shall identify themselves as contractor personnel by introducing themselves or being introduced as contractor personnel and displaying distinguishing badges or other visible identification for meetings with Government personnel. In addition, contractor personnel shall appropriately identify themselves as contractor employees in telephone conversations and in formal and informal written correspondence.

FD 2030-24-00658

SECTION II

SERVICE SUMMARY

The contractor service requirements are summarized into performance objectives that relate directly to the mission essential items. The performance threshold describes the minimum acceptable levels of service for each requirement. The contractor shall be aware that the absence contract requirement from the service summary does not detract from its enforceability nor limit the rights or remedies of the government under any other provision of the contract. The government will use the surveillance methods contained in the Quality Assurance Surveillance Plan to evaluate the Contractor's performance for the performance objectives listed below. In the event the performance objective is not met, the Contractor will be given a reasonable time after notification to correct the unacceptable performance, if such correction is possible. The Contractor shall immediately take corrective action in accordance with the performance threshold(s). In cases where the Contractor fails to implement corrective action, the PCO will take appropriate measures.

NOTE: For those requirements listed in Section II, Service Summary, the Quality Assurance Surveillance Plan will follow the methods of surveillance specified in the Quality Assurance Surveillance Plan. The Quality Assurance Surveillance Plan is authorization for the Government's PCO to participate in the administration of this contract.

2.1 SERVICE SUMMARY REQUIREMENTS

2.1.1 The contractor shall ensure the performance objectives and performance thresholds identified in table 2-1 of this SOW are achieved as follows:

Table 2-1

2.2 CONTRACTOR PERFORMANCE EVALUATION

2.2.1 The contractor shall be aware that the evaluation of performance will occur when the Program Manager evaluates the services of the contractor to determine whether or not it meets the performance measures of the contract.

2.2.1.1 SS-1: The contractor's failure to meet the requirements for this item shall result in the possibility of a poor rating under the Contractor Performance Assessment Review (CPAR) and remedies as allowed under Federal Acquisition Regulation (FAR) 52.246-4 Inspection of Services-Fixed Price.

2.2.1.2 SS-2: The contractor's failure to meet this requirement shall result in a negative CPAR rating and remedies as allowed under FAR 52.246-4 Inspection of Services Fixed Price.

SECTION III

GOVERNMENT PROPERTY

3.1 GOVERNMENT PROPERTY

3.1.1 Contractor shall furnish all material, support equipment, tools, test equipment and services. Government Furnish Material shall not be provided.

FD 2030-24-00658

APPENDIX 1

3.1 ACRONYMS

APPENDIX 2

4.1

4.2 NOTES

4.2.1 The contractor is authorized to establish and convene a Material Review Board (MRB) to evaluate and determine disposition on non-conforming material or parts. Board members shall consist of representatives from the Contractor's Quality Production Control, Engineering (Industrial, Product Support or Design) and the Government QAR. The MRB shall be convened when the contractor identifies non- conformance of material or parts during and after assembly. The MRB is not authorized to violate any T.O. limit. When MRB action is required on material or parts during and after assembly, the contractor shall provide information, to include part number, serial number and statement of non-conformance and corrective action taken to AFLCMC/LPSBE via email within (5) working days after approval of the MRB.

4.2.2 The contractor is authorized to utilize Request for Variance (RFV) DD1694 to evaluate and determine disposition on non-conforming material or parts outside of T.O. limits. Board members shall consist of representatives from the Contractor's Quality Production Control, Engineering (Industrial, Product Support or Design) and the Government QAR. The MRB shall be convened when the contractor identifies non- conformance of material or parts during and after assembly. When RFV action is required on material or parts during and after assembly, the contractor shall provide information, to include part number, serial number and statement of non-conformance and corrective action proposed to contracting officer.

APPENDIX 3

A3.1 PRODUCT VERIFICATION AUDIT PROCEDURES

A3.1.1 This attachment contains procedures and instructions for contractual accomplishment of Product Verification Audits (PVAs). This attachment does not supersede instructions contained in the contract remanufacture work requirements or other contractual provisions. In instances of conflict, the latter applies. The contractual issuance of this attachment and performance of PVAs does not relieve the contractor of the responsibility for maintaining a Quality Control System that will assure productions of items that conform to contractual requirements. PVAs are management tools used to independently evaluate and validate the conformance of a remanufactured item and contractor compliance to contractual requirements as well as the adequacy of the Government's contractually stipulated requirements.

A3.2 TERMS EXPLAINED

A3.2.1 PVA. The physical examination, functional testing and complete disassembly of an item to determine conformance to contractual requirements as well as adequacy of the contractual requirements which may require in excess of the original contractor remanufacture effort. The audit includes correction of defects, reassembly, retesting, repackaging, remarking, update of records and correction of contractual requirements as required.

A3.2.2 Cognizant Quality Assurance Element. The DOD contract administration service element having direct responsibility for implementing the Government Quality Assurance Program at the contractor's plant.

A3.2.3 Remanufacture Work Requirement. Any contract instrument, TO, drawing, specification or directive which contains instructions and requirements for remanufacture and rehabilitation of a reparable/unserviceable item.

A3.2.4 Procedural Deficiency. A deficiency which is noted during the audit, and which results from either:

A3.2.4.1 Failure by contractor to establish processes/procedures in conformity with contractual requirements; or, A3.2.4.2 Failure by contractor to follow established processes or procedures.

A3.3 RESPONSIBILITIES

A3.3.1 The contractor shall:

A3.3.1.1 Perform audit functions under the surveillance of the cognizant DOD CAO and Air Logistics Center (ALC) representative(s).

A3.3.1.2 Provide technical personnel, tooling, measuring/test equipment, work areas, forms and clerical assistance, as required, to perform the PVA.

A3.3.2 The cognizant DOD QAR shall:

A3.3.2.1 Be designated as audit team chairman, unless otherwise directed by the Procuring Contracting Officer (PCO).

A3.3.2.2 Schedule the product verification audit and select the item(s) to be audited.

A3.3.2.3 Notify the PCO and the contractor when the PVA will begin. Notification shall be provided at least 15 working days prior to the audit date. Scheduled audits may be waived by the PCO on a case-by-case basis.

A3.4 AUDIT PROCEDURES

A3.4.1 Classifying Defects. Defects observed in the audited item(s) will be classified according to the following:

A3.4.1.1 Category I - Critical Defect. Defect that judgment and experience indicates likely to result in hazardous/unsafe conditions for individuals using, maintaining or depending upon the product; or a defect that judgment and experience indicates is likely to prevent performance of the tactical function of a major end item such as an aircraft, engine communication system, surveillance system or major part thereof. Critical defects are furthered identified as follows:

A.3.4.1.1.1 Category IA - Defect attributable to the contractor's failure to comply with contractual requirements.

A.3.4.1.1.2 Category IB - Defect not attributable to contractor's failure to comply with contractual requirements such as a design deficiency, inadequate or omitted requirement or defective Government Furnished Property (GFP).

A3.4.1.2 Category II - Major Defect. Defect other than critical that is likely to result in failure or reduce materially the usability of unit or product for its intended purpose. Major defects are further identified as follows:

A.3.4.1.2.1 Category IIA - Defect attributable to the contractor's failure to comply with contractual requirements.

A.3.4.1.2.2 Category IIB - Defect not attributable to contractor's failure to comply with contractual requirements such as a design deficiency, inadequate or omitted requirements or defective GFP.

A3.4.1.3 Category III - Minor Defect. Defect that is not likely to reduce materially the usability of the unit or product for its intended purposes or is a departure from established standards having little bearing on the effective use or operation of the unit. Minor defects are further identified as follows:

A.3.4.1.3.1 Category IIIA - Defect attributable to the contractor's failure to comply with contractual requirements.

A.3.4.1.3.2 Category IIIB - Defect not attributable to the contractor.

A3.4.1.4 Category IV - Defect caused during accomplishment of the audit disassembly or inspection process which would not have occurred had the contractor exercised proper care of the audit item, i.e., improper handling, improper disassembly technique.

A3.4.1.5 Procedural Defect- Reference paragraph A3.2.4. A3.4.2 A3.4.2 Scheduling/Frequency A3.4.2.1 During the initial production phase, one of the first five items may be audited. The frequency for performing subsequent audits will be as specified in the schedule of the contract or by the PCO.

A3.4.2.2 The contractor may be directed by the PCO to extend or increase the frequency of the audits or to increase or decrease the scope thereof pursuant to the "changes" clause of the contract.

A3.4.2.3 Like or similar items may be grouped for audit purposes when the concurrence of the PCO or his designated representative has been obtained.

A3.4.3 Inspection and Test A3.4.3.1 Audit candidates shall be randomly selected by the cognizant DOD QAR from all items currently available. It shall be the responsibility of the ACO to assure that an adequate number of items from which a random selection can be made are on hand at the time of the audit. Selection, except as specified in paragraph A3.4.3.2 below, shall be made from items which have been accepted by the Government but have not been shipped.

A3.4.3.2 The first five items of the initial production phase shall be set aside after having been tendered by the contractor as in conformity with the contract and inspected by the Government and not rejected for failure to comply with contractual requirements. Upon completing the testing and disassembly portion of the audit of the selected candidate and if no Category I or II defects are found during the audit, the other four items will be accepted by the Government. In any Category I or II defect is found in the audit candidate, the contractor shall satisfy the Government that such defect does not exist in the other four items prior to Government acceptance thereof. The audit candidate shall be accepted by the Government upon compliance with paragraph A3.4.4.6 below.

A3.4.3.3 The items selected for audit shall be inspected for adherence to preservation, packing, packaging and marking requirements prior to removal from the shipping container. A visual inspection and functional test shall be performed prior to disassembly.

A3.4.3.4 Disassembly shall be performed in a secure area accessible only to audit participants. Normally, audit participation will be limited to specified contractor production and quality control personnel, the cognizant DOD QAR and ALC personnel.

A3.4.3.5 Visual inspection, dimensional checks (such as backlash, end clearance and running clearance) and non-destructive testing will be accomplished during and after disassembly IAW applicable technical directives. Audit findings will be recorded for comparison with contractual requirements and the contractor's production/inspection records. Measuring and test equipment shall be reviewed for current calibration prior to use.

A3.4.3.6 Applicable accessories and components will be functionally tested and inspected to contractual specifications. This action may require disassembly in excess of the original contractor effort as determined necessary by the Government.

A3.4.4 Corrective Actions A3.4.4.1 In the event a critical or major defect is observed, Government acceptance of further production will be withheld until the Government has either inspected other items for the observed defect(s) or has received suitable evidence from the contractor that the cause of such defect(s) has been corrected and the defect does not exist in other items. In the case where there is a probability of such defect existing in previously shipped items, the contractor will promptly advise the Government of the identity and destination of such previously shipped items.

A3.4.4.2 When Category IA, IIA or IIIA defects are found, the contractor shall implement measures in the remanufacture process which will preclude recurrence.

A3.4.4.3 When Category IB, IIB or IIIB defects are found, actions will be taken as directed by the Government pursuant to the contract.

A3.4.4.4 When Category IV defects are noted, the contractor shall take those actions necessary to preclude recurrence.

A3.4.4.5 When Procedural Deficiencies are noted, the contractor shall take those actions necessary to correct the procedures or operations concerned.

A3.4.4.6 Upon completion of the audit, all defects attributable to failure to comply with contractual requirements or attributable to the performance of the PVA shall be corrected. All noted defects shall be corrected and the item assembled and functionally tested IAW applicable remanufacture specifications including preservation, packing, packaging, marking and update of records.

A3.4.4.7 After the audit is completed, the DOD QAR shall conduct a critique attended by contractor personnel and ALC representative(s). Findings, classifications and corrective actions shall be discussed, and determination of defect cause(s) established (e.g. workmanship, tooling, technical requirements, etc.). The contractor shall take immediate action to correct and preclude recurrence of all defects or deficiencies attributable to failure to comply with contractual requirements, subject to the provisions of paragraph A3.5.1.10 below.

A3.5 AUDIT RESULTS

A3.5.1 The quality office of the CAO activity shall prepare and forward to the responsible PCO the finalized audit findings within 10 working days after completion of the audit. Finalized findings will contain the following information:

A3.5.1.1 Name and address of the contractor.

A3.5.1.2 Contract number.

A3.5.1.3 Descriptive noun, Federal Stock Number, part number and serial number of the item audited.

A3.5.1.4 Summary of total defects.

A.3.4.1.4.1 Category IA A.3.4.1.4.2 Category IB A.3.4.1.4.3 Category IIA A.3.4.1.4.4 Category IIB A.3.4.1.4.5 Category IIIA A.3.4.1.4.6 Category IIIB A.3.4.1.4.7 Category IV A3.5.1.5 A complete listing of audit findings.

A3.5.1.6 A description of defects listed by category (commencing with critical). The defective item will be identified by part number and standard nomenclature.

A3.5.1.7 Cause(s) for each noted defect.

A3.5.1.8 Corrective action(s) taken on each classified defect attributable to failure to comply with contractual requirements, or a projected target date for completion when not otherwise immediately corrected.

A3.5.1.9 Procedural deficiencies noted and the corrective actions applied.

A3.5.1.10 The signature of the DOD QA participants, contractor management personnel and ALC representative(s). Non-concurrence with the findings shall be specifically annotated in the vicinity of the applicable signatures. Non-concurrence by the contractor as to the existence or classification of a defect or as to whether or not a defect is attributable to failure to comply with contractual requirements shall be subject to the procedures set forth in the clause entitled "Dispute.”

A4. Supply Chain Risk Management Requirements

The contractor shall identify, assess, plan for, and mitigate actual or potential threats, vulnerabilities, and disruptions to the Air Force's supply chain throughout the lifecycle to ensure mission effectiveness. The contractor shall inform and include the Government in any mitigations or alterations to the program. The SCRM plan shall address the broad spectrum of supply chain risks that have the potential to: jeopardize the integrity of products, services, people, and technologies; compromise intellectual property; disrupt the flow of product, materiel, information, and finances needed for continued Air Force operations; and drive materiel cost increases to the program. The contractor shall develop and execute processes for identifying supply chain risks as early as possible; the persistent and comprehensive tracking, monitoring, and re-evaluation of supply chain risks and their corresponding mitigation actions; and communicating supply chain risks to affected stakeholders and the Government. The contractor shall notify in writing the identified actual and potential supply chain risks. The contractor's SCRM program and processes shall apply to the prime and their suppliers, subcontractors, associated integrators, and vendors, spanning the entirety of the supply chain, from raw material stage to delivery of a finished product and/or service. As part of the overall SCRM approach, the Contractor shall establish, document and maintain documentation about subcontractors/vendors for all parts that will be used for Government contracts. The contractor shall continuously monitor their sources of supply for unknown, unauthorized, non-certified, or unqualified sources providing parts or services from any sub-tier supplier within the contractor's supply chain. The contractor shall investigate and submit findings to include root causes, impacts and a corrective action.

Continuity of Operations (COOP) Contractor shall include a SCRM plan detailing the offeror's supply chain risk management approach, providing specific emphasis on the risks associated with a.) Continuity of Operations b.) Foreign Influence and c.) Cybersecurity. The contractor shall detail the specific supply chain risk (listed below) and provide a management and mitigation plan identifying how the offeror will ensure Supply Chain Risk Management is effective over the life of the contract.

The contractor will develop and/or update a Continuity of Operations Plan (COOP), also known as a Business Operations Plan, which outlines the processes and actions to prepare for, and respond to, unplanned natural and man-made disruptions to mission essential operations and provide that to the U.S. Government. The COOP will address disruptions caused by:

a) natural causes possible in the local vicinity (winter weather, earthquakes, hurricanes, fires, flooding, wind, pandemics, etc.) and b) man-made causes (cyber attacks, electrical outages, strikes affecting workforce, civil unrest, modes of transportation, and receiving/shipping goods, etc.).

The plan will explain: how work will continue in the same or alternate facility(ies), ability to use and/or augment the current workforce, ability to repair/restore key infrastructure (machinery, computers, logistics etc.), how to communicate with, and inform the US Government and others in the supply chain. Contractor shall provide essential records management for personnel working on U.S. government contracts. Records will be accessible to key members of the organization. Contractor shall ensure continuous records management support (training, etc.) despite any changes in personnel.

If applicable the contractor shall prepare for the continuation of essential DoD services during crisis IAW DFARS 252.237-7023, DFARS 252.237-7024, and other applicable references as necessary. In a state of emergency, if the Government deems necessary, the contractor shall provide all services necessary to ensure mission accomplishment. On occasion, services may be required to support an activation, or exercise of contingency plans outside normal duty hours.

Foreign Influence The contractor shall disclose any Foreign Ownership, Control or Influence (FOCI) for the purpose of initial or continued facility clearance eligibility. A Standard Form 328 Certificate Pertaining to Foreign Interest shall be submitted to the Government cognizant security office specified in each DD254.

The contractor shall provide information regarding FOCI. If the contract requires access to classified information, DD254, Contract Security Classification Specification, shall be required. Contractor shall provide an update on its financial health and potential FOCI when a merger or acquisition occurs.

Foreign contractor participation is excluded at the prime and subcontractor level, unless authorized through a current approved National Interest Determination (NID). It is solely the responsibility of the contractor to obtain necessary certification from the U.S. Department of State and to comply with the federal laws and regulations. Question must be directed to the U. S. Department of State’s Directive of Defense Trade Controls.

Subcontract Management. The contractor shall be responsible for any subcontract management necessary to integrate work performed on this requirement and shall be responsible and accountable for subcontractor performance on this requirement. The prime contractor will manage work distribution to ensure there are no Organizational Conflict of Interest (OCI) considerations. Contractors may add subcontractors to their team only after notification to the Procuring Contracting Officer (PCO) and Contracting Officer Representative (COR).

Foreign Disclosure: "Foreign Disclosure Restrictions do not apply."

Cybersecurity The contractor shall develop and implement a cybersecurity protection of supply chain information plan and provide a copy to the U. S. Government. The contractor shall conduct early and continuous monitoring throughout the contract to prevent or reduce impacts of cyber vulnerabilities where adversaries are able to exploit, steal, alter, manipulate, interrupt, or destroy system functionality, information, or technology. The contractor's plan shall: a) make specific reference to those aspects of the National Institute of Standards and Technology Special Publication (NIST SP) 800-161, “Supply Chain Risk Management Practices for Federal Information Systems and Organizations” that represent the contractor's implemented processes and practices; b) include a description of how the contractor shall protect the supply chain from exploitation due to the insertion of counterfeits/malware, unauthorized production, tampering, theft, insertion of malicious software and hardware, functionality alteration, and any other elements that would allow adversaries to gain unauthorized access to data, alter data, interrupt communications, or otherwise disrupt operations; c) inform the U. S. Government of any instances of unauthorized access and/or compromise, such as those listed in item “b” to contractor’s digital information and parts and components and d) make specific reference to those aspects of NIST SP 800-53 that represent the processes and practices the contractor will implement. The plan and processes shall apply to the prime and their suppliers, subcontractors, associated integrators, and vendors, spanning the entirety of the supply chain, from raw material stage to delivery of a finished product.

The Contractor and any subcontractors shall provide to the government a system security plan (or extract thereof) and any associated plans of action developed to satisfy the adequate security requirements of DFARS 252.204-7012, and in accordance with NIST Special Publication (SP) 800-171, “Protecting Controlled Unclassified Information in Nonfederal Systems and Organizations” in effect at the time the solicitation is issued or as authorized by the contracting officer, to describe the contractor’s unclassified information system(s)/network(s) where covered defense information associated with the execution and performance of this contract is processed, is stored, or transmits. The contractor shall {develop, update} an incident-handling capability plan that utilizes guidance provided in NIST SP 800-61 revision 2, Computer Security Incident Handling Guide, consisting of 1) incident response policy and plan, 2) procedures for performing incident handling and reporting, 3) guidelines for communicating with outside parties regarding incidents, 4) incident team structure and staffing model, 5) relationships and lines of communication between the incident response team and other groups, both internal and external, 6) services the incident response team should provide, and 7) staffing and training the incident response team. Any incident reported to Defense Industrial Base Cybersecurity Program (https:\\dibnet.dod.mil) shall also be reported to the responsible contracting officer within 24 business hours.

Cybersecurity (electronic components - FSG 59, with the exception of those that do NOT contain any programmable components) N/A The contractor shall provide information to obtain a Defense Intelligence Agency – Threat Assessment Center (DIA-TAC)…