APCS SIR Sect E Amend 3.docx

Contents

E-7

INSPECTION AND ACCEPTANCE

AMS 3.1-1 Clauses and Provisions Incorporated by Reference (July 2019) This screening information request (SIR) or contract, as applicable, incorporates by reference the provisions or clauses listed below with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make the full text available, or offerors and contractors may obtain the full text via the Internet at: https://fast.faa.gov/contractclauses.cfm.

Table E.1 - Clauses Incorporated by Reference

(End of Clause) AMS 3.10.4-2 Inspection of Supplies – Fixed Price (November 1997) Definition. ‘Supplies,’ as used in this clause, includes but is not limited to raw materials, components, intermediate assemblies, end products, and lots of supplies.

The Contractor must provide and maintain an inspection system acceptable to the Government covering supplies under this contract and must tender to the Government for acceptance only supplies that have been inspected in accordance with the inspection system and have been found by the Contractor to be in conformity with contract requirements. As part of the system, the Contractor must prepare records evidencing all inspections made under the system and the outcome. These records must be kept complete and made available to the Government during contract performance and for as long afterwards as the contract requires. The Government may perform reviews and evaluations as reasonably necessary to ascertain compliance with this paragraph. These reviews and evaluations must be conducted in a manner that will not unduly delay the contract work. The right of review, whether exercised or not, does not relieve the Contractor of the obligations under the contract.

The Government has the right to inspect and test all supplies called for by the contract, to the extent practicable, at all places and times, including the period of manufacture, and in any event before acceptance. The Government must perform inspections and tests in a manner that will not unduly delay the work. The Government assumes no contractual obligation to perform any inspection and test for the benefit of the Contractor unless specifically set forth elsewhere in this contract.

If the Government performs inspection or test on the premises of the Contractor or a subcontractor, the Contractor must furnish and must require subcontractors to furnish, without additional charge, all reasonable facilities and assistance for the safe and convenient performance of these duties. Except as otherwise provided in the contract, the Government must bear the expense of Government inspections or tests made at other than the Contractor’s or subcontractor’s premises; provided, that in case of rejection, the Government must not be liable for any reduction in the value of inspection or test samples.

(1) When supplies are not ready at the time specified by the Contractor for inspection or test, the Contracting Officer may charge to the Contractor the additional cost of inspection or test.

(2) The Contracting Officer may also charge the Contractor for any additional cost of inspection or test when prior rejection makes reinspection or retest necessary.

The Government has the right either to reject or to require correction of nonconforming supplies. Supplies are nonconforming when they are defective in material or workmanship or are otherwise not in conformity with contract requirements. The Government may reject nonconforming supplies with or without disposition instructions.

The Contractor must remove supplies rejected or required to be corrected. However, the Contracting Officer may require or permit correction in place, promptly after notice, by and at the expense of the Contractor. The Contractor must not tender for acceptance corrected or rejected supplies without disclosing the former rejection or requirement for correction, and, when required, must disclose the corrective action taken.

If the Contractor fails to promptly remove, replace, or correct rejected supplies that are required to be removed or to be replaced or corrected, the Government may either:

(1) by contract or otherwise, remove, replace, or correct the supplies and charge the cost to the Contractor or

(2) terminate the contract for default.

Unless the Contractor corrects or replaces the supplies within the delivery schedule, the Contracting Officer may require their delivery and make an equitable price reduction. Failure to agree to a price reduction must be a dispute.

If this contract involves government quality assurance at source, the Contractor must provide adequate advance notification as to when supplies are scheduled for inspection and test, and when the supplies will be ready for government inspection. Unless otherwise stated in the contract, this must normally be at least 2 days if a Government representative is in residence in the Contractor’s plant, or 7 days otherwise.

The Government must accept or reject supplies as promptly as practicable when presented for inspection and test, or after delivery, unless otherwise provided in the contract. Government failure to inspect and accept or reject the supplies must not relieve the Contractor from responsibility, nor impose liability on the Government, for nonconforming supplies.

Inspections and tests by the Government do not relieve the Contractor of responsibility for defects or other failures to meet contract requirements discovered before acceptance. Acceptance must be conclusive, except for latent defects, fraud, gross mistakes amounting to fraud, or as otherwise provided in the contract.

If acceptance is not conclusive for any of the reasons in paragraph (k) hereof, the Government, in addition to any other rights and remedies provided by law, or under other provisions of this contract, must have the right to require the Contractor:

(1) at no increase in contract price, (or target price, total final price, initial contract price, or the redetermined price of the contract) to correct or replace the defective or nonconforming supplies at the original point of delivery or at the Contractor’s plant at the Contracting Officer’s election, and in accordance with a reasonable delivery schedule as may be agreed upon between the Contractor and the Contracting Officer; provided, that the Contracting Officer may require a reduction in contract price (or any target price, total final price, the initial price, or redetermined price of the contract) if the Contractor fails to meet such delivery schedule, or

(2) within a reasonable time after receipt by the Contractor of notice of defects or nonconformance, to repay such portion of the contract price as is equitable under the circumstances if the Contracting Officer elects not to require correction or replacement.

When supplies are returned to the Contractor, the Contractor must bear the transportation cost from the original point of delivery to the Contractor’s plant and return to the original point when that point is not the Contractor’s plant. If the Contractor fails to perform or act as required in (1) or (2) above and does not cure such failure within a period of 10 days (or such longer period as the Contracting Officer may authorize in writing) after receipt of notice from the Contracting Officer specifying such failure, the Government must have the right by contract or otherwise to replace or correct such supplies and charge to the Contractor the cost occasioned by the Government thereby, to equitably reduce any target price or, if established, the total final price, or to equitably reduce the initial contract price, or, if established, the redetermined price of the contract.

(End of Clause) AMS 3.10.4-13 Higher-Level Contract Quality Requirement (April 2020)

1. The Contractor must comply with the standard titled SAE AS 9100D-2016, Quality Management Systems - Requirements for Aviation, Space and Defense Organizations, and the FAA-approved Quality System Plan, which is hereby incorporated into this contract.

The Contractor must establish and maintain a Quality System in accordance with the above referenced standard(s) and the Contractor’s Quality System Plan (QSP). This QSP is hereby incorporated into this contract when approved by the Contracting Officer. If the QSP is submitted as part of a response to a Screening Information Request (SIR) submission and approved before award, then the QSP is hereby incorporated into this contract at time of award. The QSP must describe the Contractor’s provisions for quality assurance, inspection and test of all supplies to be provided under this contract, in accordance with the terms of this contract, including but not limited to the contract specifications and the above referenced standard. (Note; Formal third-party AS9100 registration is not required. Formal third-party AS9100 registration does not relieve the Contractor from the requirements of submitting a QSP.)

In the event of conflict between the Quality System Plan (QSP) and the above referenced standard(s), the applicable standards must control.

Calibration systems and measuring and test equipment must be controlled in accordance with a nationally recognized standard, such as ISO 10012.

Government Furnished Property must be controlled to assure acceptability upon receipt, preclude degradation, damage or misuse during storage, use or test, and assure proper final disposition in accordance with the contract.

Site installation activities, maintenance, and support services must be controlled in accordance with contract requirements.

(End of Clause) AMS 3.10.4-14 Assignment of a Quality Reliability Officer (QRO) (October 2015) The following provisions are a part of this contract.

1. The Government’s Quality and Reliability Officer (QRO) assigned to this contract, and designated as such by the Government, has the authority to verify that the Contractor’s quality system complies with contract requirements, including the Contractor’s Quality System Plan (QSP) (if applicable), to witness tests, and to inspect and accept or reject supplies provided under this contract.

Prior to shipment thereof, the Contractor must submit to the QRO, for inspection and preliminary acceptance, all supplies which are subject to final Government inspection and acceptance at destination. Preliminary acceptance by the QRO constitutes verification by the Government that supplies comply with all contract requirements which are to be completed prior to shipment, including satisfactory completion of factory tests. Any supplies determined by the QRO to be nonconforming or suspected counterfeit parts must be corrected prior to shipment. All other supplies, except those specified to be accepted by the Contracting Officer, must be submitted to the QRO for final inspection and acceptance prior to shipment. For all supplies subject to preliminary acceptance, final acceptance and passage of title to the Government must occur at destination.

Failure of the Contractor to maintain and operate a Quality System in accordance with the terms of the contract may, based upon a written determination of the QRO (and consistent with the quality system requirements of the contract), be grounds for rejection of affected supplies.

The Contractor must provide appropriate office space for the QRO and staff for the performance of Government evaluations and administrative functions. The office area must be secure to accommodate meetings of a sensitive nature. File cabinets, suitable desks (both with locking capabilities), office chairs, and other miscellaneous office equipment (as required) must be supplied by the Contractor. The Contractor must provide secretarial help, as required by the QRO, for generating documents related to the contract. The office(s) must have both telephone and broadband internet access. A telephone must be provided to each desk, with no less than one line per QRO staff member. The cost of business long distance calls placed by the QRO staff will be borne by the Contractor. The Contractor must provide parking space to the extent available. In the event a change in location of the QRO staff is required, Contractor/QRO coordination will take place in order to facilitate Government planning and implementation of a smooth transition.

Notification of Readiness for Inspection. Unless otherwise specified in the contract, the Contractor must notify the designated resident QRO in writing within 2 workdays (7 workdays if there is not a resident FAA QRO) of the time:

1. when contractor inspection or tests will be performed in accordance with the conditions of the contract; and,

2. when the supplies or services performed will be ready for government inspection.

(End of Clause) Quality Assurance Program

1. The Contractor must provide and maintain a quality assurance program in accordance with SAE AS 9100D-2016, Quality Management Systems - Requirements for Aviation, Space and Defense Organizations, and the FAA-approved Quality System Plan.

At a minimum, this program must provide for:

1. A quality assurance (QA) organization that has sufficient responsibility and authority to identify and evaluate quality problems and to initiate, recommend or provide solutions;

2. Procedures and controls to assure adequate configuration management during all operations through final acceptance;

3. Controls to assure that all inspection and testing is performed in compliance with contract requirements and that all test data is complete, correct, traceable, repeatable, and acceptable;

4. Maintenance of a proper record-keeping function to provide objective evidence and traceability of operations performed;

5. If applicable, procedures and controls for assuring that all software products or services procured from subcontractors conform to contract requirements;

6. Procedures and controls to assure that all documentation is adequately reviewed and meets contract requirements;

7. Procedures and controls for the prevention of deficiencies, detection, and analysis of deficiencies when they do occur, as well as procedures for corrective action;

8. A system of periodic internal quality audits or reviews to verify whether quality activities and related results are in compliance with planned arrangements and to verify that the QA program is performing effectively. The FAA is entitled to review any reports or other materials generated in connection with these audits and reviews.

Acceptance Testing – Contractor (development Test)

1. The Contractor must conduct an initial Factory Acceptance Test (iFAT) on the iFAT System defined in C.5.2.

The Contractor must conduct Factory Acceptance Test (FAT) on the first production unit (i.e., FAT System defined in C.5.2). Some FAT testing may also be conducted on the Environmental Test System defined in C.5.7 and the Preemption Test System defined in C.5.8.

The Contractor must conduct System Test on the System Test System (STS) defined in C.5.5.

In accordance with the timeframes contained in Section C.6, Test and Evaluation, and Attachment J.1.8, APC System Test and Evaluation Requirements, Section 2.7, the Contractor must notify the Contracting Officer, in writing, of the time and location of testing so that the FAA may witness the tests.

The Contract must ensure that all exit Criteria for each test are met in accordance with Attachment J.1.8, APC System Test and Evaluation Requirements, before FAA acceptance of each test.

The Contractor must submit the iFAT Report in accordance with the timeframes contained in Attachment J.4, CDRL/DID APC-TES004, Contractor Test Report (CTR).

The Contractor must submit the Factory Acceptance Test report in accordance with the timeframes contained in Attachment J.4, CDRL/DID APC-TES004, Contractor Test Report (CTR).

The Contractor must submit the System Test Report in accordance with the timeframes contained in Attachment J.4, CDRL/DID APC-TES004, Contractor Test Report (CTR).

Within 30 calendar days, after the FAA receives the test report, the Contracting Officer will notify the Contractor, in writing, of the conditional approval, approval, or disapproval of the applicable tests.

The notice of conditional approval or approval must not relieve the Contractor from complying with all requirements of the specifications and all other terms and conditions of this contract. A notice of conditional approval will state any further action required of the Contractor. A notice of disapproval will cite reasons for the disapproval.

The FAA reserves the right to require an equitable adjustment of the contract price for any extension of the delivery schedule or any additional costs to the FAA related to these tests.

If the Contractor fails to deliver any of the test reports (i.e., iFAT, FAT, or System Test) on time, or the Contracting Officer disapproves any of the tests, the Contractor must be deemed to have failed to make delivery within the meaning of the Default clause of this contract.

Before approval of all of the tests (i.e., iFAT, FAT, and System Test), the acquisition of materials or components for or the commencement of production of the balance of the contract quantity is at the sole risk of the Contractor.

Before approval of any of the tests (i.e., iFAT, FAT, or System Test), the costs thereof must not be allocable to this contract for:

1. Payments; or,

2. Termination settlements if the contract is terminated for the convenience of the FAA.

FAA acceptance of each of the test execution CLINs (i.e., for iFAT, FAT, and System Test) will occur upon acceptance of the Contractor Test Report CTR) associated with the applicable test.

Contract Line Item Number (CLIN) Inspection and Acceptance Procedures Technical and Management Data CLINs Inspection and acceptance of the technical, administrative/financial, and logistic data (including manuals, training materials, and escrow data package) to be furnished hereunder must be in accordance with Attachment J.4, Contract Data Requirements List (CDRL) as described therein by the first addressee in the distribution list (Block 14).

Systems and Other Equipment CLINs

1. The Contractor must perform final assembly (as defined in FAA Procurement Guidance T3.6.4, Foreign Acquisition, Section 6, Definitions, Paragraph k) of and stage APC Systems and other equipment at its Contiguous United States (CONUS) facility prior to presenting for preliminary acceptance and prior to shipping to the FAA site designated in the CLIN order.

1. The Contractor must notify the FAA when a CLIN item(s) is being presented for preliminary acceptance prior to shipment.

The Contractor must provide the FAA COR and the QRO adequate information for issuance of an FAA-Form-256 and Form-FAA- 4500-1 at least 30 days prior to shipment.

For Systems and Other Equipment CLINs ordered in association with Contractor Installation Services, inspection and acceptance of the Systems and other equipment to be furnished hereunder will not be made except upon successful completion of site acceptance testing for each system, as evidenced by the appropriate signature on the applicable FAA-Form-256 (Material Inspection and Receiving Report).

For Systems and Other Equipment CLINs not ordered in association with Contractor Installation Services, inspection and acceptance of the Systems and other equipment to be furnished hereunder will not be made except upon successful completion of delivery to the designated facility, as evidenced by the appropriate signature on the applicable FAA-Form-256 (Material Inspection and Receiving Report).

The FAA-Form-256 (either final acceptance, conditional acceptance, or rejected) will be provided to the Contractor, the FAA COR, and Contracting Officer.

1. If it is a rejected acceptance, no monies will be passed, nor will title transfer take place.

2. If it is conditional acceptance, the Contracting Officer and the Contractor will determine what holdback of money will take place, if any, and transfer of title will take place.

3. If it is a final acceptance, transfer of title will take place, and the Contractor may submit a final invoice for the CLINs.

As determined by the FAA at the time of order, transfer of title will not take place for spares delivered to designated FAA facilities if an agreement has been established for contractor site-level maintenance.

4. In this situation, the Contracting Officer will direct the use of a Conditional FAA-Form-256 for billing purposes only.

5. Once the site-level maintenance has ended, the QRO will re-inventory spares shipped to the designated FAA facilities, and a Final FAA-Form-256 will be issued, transferring title of the spares from the Contractor to the FAA.

If any of the above items are ordered apart, and separately from a site-designated system (e.g., R-APC), inspection and acceptance of the supplies to be furnished hereunder will be made by the QRO at the Contractor’s plant, evidenced by the appropriate signature on the applicable FAA-Form-256.

Support Systems

1. Acceptance of the Validation Test System occurs upon successful Contractor Acceptance Inspection (CAI), as defined in C.10.2.2, Site Installation.

Acceptance of the iFAT System occurs upon approval of the Contractor Test Report (CTR) for iFAT.

Acceptance of the Environmental Test System occurs upon approval of the Contractor Test Report (CTR) for System Test.

Acceptance of the Preemption Test System occurs upon approval of the Contractor Test Report (CTR) for System Test.

Acceptance of the Contractor Engineering Development System occurs upon successful delivery of COTS acceptance test results and site-specific configuration IAW C.5.3.2. Contractor Engineering Development System Delivery and Installation, requirements c) and d).

Acceptance of the Manual and Training Development System occurs upon successful delivery of COTS acceptance test results and site-specific configuration IAW C.5.4.2. Manual and Training Development System Delivery and Installation, requirements c) and d).

Acceptance of the System Test System occurs upon approval of the Contractor Test Report (CTR) for System Test.

Acceptance of the APC System Traffic Load Generator delivered for iFAT occurs upon approval of the Contractor Test Report (CTR) for iFAT.

Acceptance of the APC System Traffic Load Generator delivered for use with the System Test System occurs upon successful completion of exit criteria for INCO of the ATLG in accordance with J.1.8, APC System Test and Evaluation Requirements, Section 3.6.3.

Acceptance of each subsequent APC System Traffic Load Generator delivered occurs upon successful CAI, as defined in C.10.2.2, Site Installation.

Acceptance of the Faulted Modules occurs upon approval of the Contractor Test Report (CTR) for FAT.

Acceptance of the second and subsequent sets of Faulted Modules occurs IAW E.7.2 Systems and Other Equipment CLINs, requirements a) through g).

Engineering/Technical/Management/Test Support CLINs Inspection and acceptance of the services and or supplies called for hereunder will be made on-site by the Contacting Offer’s authorized representative or at such other locations as may be specified by the Contracting Officer via certificate of conformance or otherwise as indicated in contract delivery, task, or work orders issued in accordance with the ordering and exercise of option clauses(s) of this contract.

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