SOW_Repair_7303-JC01_01-161-4414_Heat_Exchanger.pdf

ATTACHMENT 2 – STATEMENT OF WORK (SOW)

70Z03818QJ0000071

1.0 Scope

1.1 This SOW requirement is for repair of the following component(s):

Nomenclature National Stock Number (NSN) Part Number (P/N) Quantity

HEAT EXCHANGER (HE) 1660-01-161-4414 70309-23810-101 10

The part(s) are utilized on the H-60 aircraft. Upon receipt of the HE, the Contractor shall perform a test and evaluation to determine the condition of the item. Any component where no faults are found or the component is determined to be Beyond Economical Repair (BER) shall be returned to the United States Coast Guard (USCG) in accordance with (IAW) Sections 2.4 and 2.6. All other components shall be repaired IAW this SOW.

1.2 The objective for the Contractor will be to provide the Aviation Logistics Center (ALC) with repaired HEs that are ready for installation in support of our efforts to sustain forty-five (45) aircraft. The Contractor should be capable of delivering repaired HEs within ninety (90) calendar days after receipt of order at a rate of five (5) per month until the order is completed. The USCG anticipates the component(s) will be shipped to the Contractor within five (5) business days after issuance of a purchase order. The Contractor will not be penalized if the USCG is not timely in the shipment of the material. The part(s) are utilized on the H-60 aircraft. Upon receipt of the component(s), the Contractor shall perform a test and evaluation to determine the condition of the component. Any component where no faults are found or the component is determined to be Beyond Economical Repair (BER), the Contractor will be allowed one of the following firm-fixed prices only:

Service Total

Test and Evaluation Fee TBD at time of award

BER/Scrap Fee TBD at time of award

2.0 Evaluate, Repair, and Test (ERT)

2.1 Requirements

The Contractor shall complete the ERT requirements within thirty (30) calendar days after induction and provide a condition report of each component(s) which includes a price breakdown of labor hours, direct materials required to return the component to a Ready for Issue (RFI) condition, and a revised delivery schedule to the Contracting

Officer for review. Subject to negotiation and Coast Guard evaluation, a modification may be issued to grant authorization to proceed with the repair, reflect the fixed price for repair, and establish a final delivery date or provide disposition instructions. If disposition is provided, the Contractor shall be entitled to reimbursement for the

Evaluation only. Work under this purchase order shall be performed at the Contractor’s facility or USCG approved facility.

2.1.1 Certification

The Contractor shall maintain, at a minimum, one of the following: Federal Aviation Administration (FAA), Department of Defense, Original Equipment Manufacturer (OEM) and/or USCG certifications for repair and modification of components identified for the entire duration of the purchase order. The Contractor shall provide immediate notification to the Contracting Officer upon loss of any required certifications.

2.1.2 In accordance with the National Defense Authorization Act for Fiscal Year 2004, Public Law 108–136, §

802, 117 Stat. 1392 (2003), the Naval Supply Systems Command, Weapons Systems Support (NAVSUP WSS), Philadelphia, PA, is the design control activity and as such, has the sole authority for approving sources for the procurement, repair, and/or overhaul of components managed by the Navy. Responsible repair Contractors are limited to NAVSUP WSS approved sources for the component listed herein.

STATEMENT OF WORK (SOW)

Contractor(s) are required to be NAVSUP WSS certified prior to award. If a Contractor is not NAVSUP WSS approved, award of this requirement shall not be delayed during the Contractor’s approval process. Instead, the

Contractor shall be considered for future requirements.

2.2 Government Furnished Resources

The Government will provide the components specified in the ERT section to the Contractor for evaluation and repair work required under this purchase order.

The Government will not furnish any drawings, parts, hardware, specifications, tooling, or any other repair documents required to repair the components specified herein.

2.3 Procedures

The Contractor shall perform all repairs IAW the Component Maintenance Manuals (CMM) listed in Section 3.1.

All services shall be accomplished on an as required basis, as directed by the Government. Request for clarification shall be directed to the Contracting Officer.

2.3.1 The Contractor must have access to required repair specifications and test/acceptance criteria and data to ensure all components are tested and repaired IAW the current specifications and procedures. The USCG may review repair manuals and performance/test/ acceptance criteria as required. The Contractor is solely responsible for obtaining any and all specifications required for this effort. Original design or functional capabilities of the end item and parts thereof shall not be changed unless authorized or directed by the requirements of this SOW.

2.4 Test and Evaluation

If, after visual and functional inspections, a component is found to be RFI or is considered to be beyond economical repair (BER) IAW Section 2.6, the Contractor will be allowed the firm fixed price for test and evaluation only. The

Contractor shall prepare a failure data report IAW Section 2.7 in these instances. This report shall be included with the returned component. The components shall be marked "RFI” or “BER” and returned IAW Section 2.6. A copy of the failure data report shall be attached to the invoice.

2.5 Repair

After the Contracting Officer has approved the ERT evaluation in writing, all Non-RFI components shall be repaired and returned to RFI condition IAW the functional performance specifications. Components shall be repaired for the faults noted on the DD Form 1577-2, Unserviceable (Repairable) Tag-Material, or CG-1577-A (11-

90), Unsatisfactory Report Tag, which will be attached to each non-RFI item. The Contractor shall perform an inspection and correct deficiencies found. This shall include, but is not limited to, replacement of missing or broken parts and the removal of any foreign matter or corrosion.

2.5.1 Discrepancies (over and above repair items) may be identified during initial evaluation. Over and above repair items consist of any findings of unusual damage IAW Section 2.10. The Contractor shall be responsible for documenting and reporting all over and above repair items to the Contracting Officer after receipt of components at the contactor’s facility. The quotation shall be valid for thirty (30) calendar days and the documentation must include:

Description of each discrepancy found

Number of man-hours per discipline required to complete each discrepancy

Parts costs (if the part is not listed on the separately priced parts list, this must be notated in the quotation and price for each part will be negotiated IAW Section 2.8)

Total dollar amount for each discrepancy

Total dollar amount for complete list of discrepancies

Delivery Order Number and applicable Line Item

2.5.2 The Contracting Officer will be responsible for reviewing the list of discrepancies and either accept, negotiate, or decline the Contractor’s proposal. The Contracting Officer shall provide a response to the quotation within thirty (30) calendar days after receipt. Additional work shall not be performed until the quotation is accepted and a modification to the delivery order is provided by the Contracting Officer. The Contractor will have ninety

(90) calendar days (plus the number of calendar days it takes the Contracting Officer to provide a response to the over and above quotation) to complete the overhauls and return the items to the Government. In the event that a quotation is declined by the Contracting Officer, the Contractor shall return the item “As-Is”. The Contractor will be authorized the firm-fixed Test and Evaluation fees established in purchase order.

2.6 BER

After receipt of a quotation for over and above repair components, the Contracting Officer may determine that an item is BER and will provide a written modification to the Contractor. While there is no authoritative standard, the

USCG typically considers a component BER when the cost to repair exceeds sixty-five (65) percent of the price of a new unit; however, the USCG is not bound by that number and will make all final BER determinations. The

USCG will provide disposition instructions (either to scrap the item at the Contractor’s facility or to return the item to ALC) for all components that are considered BER. The Contractor shall not dispose of a component until they have been notified by a written modification to the order. When returning a component to ALC, the component(s) shall be clearly marked as “BER” with the supporting evidence. The Contractor will be authorized the firm-fixed

Test and Evaluation fees.

2.7 Failure Data Report

The Contractor shall submit a failure data report for each repaired component. This report shall include NSN, P/N, Serial Number (S/N), nomenclature, date of repair, purchase order number, line item number, description of repaired failures, the USCG’s reported failure, a listing of parts repaired, and a listing of parts replaced. The

Contractor’s in-house work order may be used to satisfy this requirement if it includes the information requested above. This report shall be attached to the packing slip and shipped with the overhauled component.

2.8 Replacement Parts

Parts of a component found to be in a serviceable condition as a result of functional testing shall be reused.

Missing parts and parts found to be defective or that require replacement by manufacturer’s instructions shall be replaced with parts meeting the manufacturer’s specifications and drawings. Replacement parts shall be new. The cost for parts that are replaced systematically during repair shall be included in the price listed in the schedule for these operations. The Contractor shall submit a listing of all systematically replaced parts and other replacement parts to be utilized in support of the maintenance procedure of each component. The replacement parts listing must show the following information: Item Description, OEM P/N, and Price.

2.9 Corrosion Treatment

During inspection and functional test, the presence of corrosion in a component shall constitute reason for a more thorough disassembly and inspection. Should corrosion be found, disassembly shall be made to the extent necessary to remove corrosion or replace the part, or parts, affected. Corroded parts shall be replaced, except in those cases where removal of corrosion from a part will not impair efficiency or safe operation of the part.

Corrosion removal and treatment of affected areas will be accomplished IAW OEM specifications and FAA

Advisory Circular AC 43-4A, dated 07/24/1991, Corrosion Control for Aircraft.

2.10 Exclusions – Unusual Damage

Prices do not include components that have been cannibalized or severely damaged due to mishandling, water immersion, or crash damage. Additionally, the MH-60T helicopter is used primarily around salt water at low altitude for search and rescue missions. Therefore, corrosion is to be anticipated and is considered "normal" for the aircraft. Corrosion does not constitute unusual damage.

2.10.1 Components received which indicate obvious misuse, cannibalization or severe damage due to mishandling, water immersion or crash damage may dictate an exclusion from the prices specified in the purchase order schedule. Such components shall be inspected, repair costs determined, and authorization to proceed obtained from the Contracting Officer prior to commencement of work. If the Contractor considers a component to be a candidate for exclusion, the Contracting Officer shall be notified within fifteen (15) calendar days of receipt of the component. Verbal notification to the Contracting Officer shall be confirmed in writing. The Contractor's delivery obligation for the component shall be suspended as the date of notice to the Contracting Officer. The

Contracting Officer will make a written determination within thirty (30) calendar days of written notice, as to exclusion validity. The Government retains the right to unilaterally set the price for exclusion items in the event an agreement on price cannot be reached. The Contractor's delivery obligation shall resume upon receipt of the

Contracting Officer's determination.

2.10.2 The Government shall not be liable for any amount expended by the Contractor in excess of the applicable firm fixed price reflected in the schedule unless prior written authorization has been given by the Contracting

Officer.

3.0 Applicable Documents

3.1 Directives

The Coast Guard does not own nor can it provide the required directives for this requirement (except where stated below).

Repair services must be performed IAW the procedures established in Section 3.1. The following documents are listed in order of precedence. Latest revisions of all manuals shall apply. The information contained in this section is not intended to be all inclusive nor to detract from or modify procedures outlined in the manuals. If the applicable technical manual does not cover a procedure, the Contractor shall utilize the OEM repair. If the OEM manual does not cover a procedure, the Contractor shall utilize the best commercial business practice. Where an application of

“best commercial practice” is in conflict with these manuals, the Contracting Officer may approve deviation from requirements. When applicable, each manual will specify if the Export Control Act applies.

Naval Air Systems Command Technical Manual, Heat Exchanger, A1-552QA-MDB-000, dated, November 30, 1997.

All OEM shop, inspection, overhaul, repair, or other OEM CMM and revisions as applicable

All OEM service bulletins, amendments, modifications, and specifications as applicable

FAA Advisory Circular 43-205, Guidance for Selecting Chemical Agents and Processes for Depainting and

General Cleaning of Aircraft and Aviation Products

FAA Advisory Circular AC 43-4A, dated 25 July 1991, Corrosion Control for Aircraft

Coast Guard Aviation Logistics Center Instruction 4100.1A, Aviation Logistics Center Material Disposal

Procedures (included as a separate attachment to this Federal Business Opportunities (FBO) notice under

CG ALCINST 4100.1A)

Coast Guard Aviation Logistics Center Instruction 4855.4A, Policy and Quality Assurance Procedures for the Receipt Inspection of New, Repaired, and Overhauled items from Vendors (included as a separate attachment to this FBO notice under CG ALCINST 4855.4A)

Coast Guard Aviation Logistics Center Instruction 4200.3B, ALC Spare Parts Breakout/New Product

Development (included as a separate attachment to this FBO notice under CG ALCINST 4200.3B)

The Coast Guard has the sole responsibility for the development of internal procedures for the Aviation Logistics

Command’s Spare Parts Breakout Program. Any commercial Contractor that manufactures, repairs, overhauls, reverse engineers, or the like any Coast Guard component is subject to Coast Guard Aviation Logistics Center

Instruction 4200.3B, ALC Spare Parts Breakout/New Product Development.

Occupational Safety and Health Standards (OSHA) 1910.1025 (Lead)

OSHA 1910.1026 (Chromium VI)

OSHA 1910.1027 (Cadmium)

Military Standard (MIL-STD) MIL-STD-129R, Military Marking For Shipment and Storage

MIL-STD-2073-1E, Standard Practice For Military Packaging

3.2 Availability of Documents

The documents listed in Section 3.1 may be available from the USCG. Before obtaining copies of these documents, Contractors shall be registered in the Defense Logistics Agency’s Joint Certification Program. More information on this certification can be found at http://www.dlis.dla.mil/jcp/Default.aspx. After ensuring registration, the

Contractor shall complete Department of Homeland Security Form 11000-6, Sensitive but Unclassified Information

Non-Disclosure Agreement (Attached to the Solicitation) and return with a written request to

Crystal.G.Taber@uscg.mil. Copies will not be posted to the Federal Business Opportunities website.

3.2.1 The USCG will only release these documents to United States (US) businesses that have followed the above procedures. The documents will not be released to any foreign entity. If the U.S. business plans to release these documents to any foreign entity, they must first provide the USCG with a copy of a valid Technical

Assistance Agreement and DSP-5 authorizing release to that entity.

4.0 Government Property

4.1 Government Furnished Property

HEs requiring repair will be direct shipped to the Contractor’s facility from the ALC and documented using DD

Form 1577-2, Unserviceable (Repairable) Tag-Material, CG-1577-A (11-90), Unsatisfactory Report Tag or Form

1348. These documents will accompany and remain with the equipment. Equipment shall be returned to ALC upon completion of the delivery order, unless otherwise directed by the Contracting Officer.

4.2 Government Property Records

Upon receipt, the Contractor shall update Government Property Records based on the DD Form 1577-2, Unserviceable (Repairable) Tag-Material, CG-1577-A (11-90), Unsatisfactory Report Tag or Form 1348 information provided and any discrepancies. The Contractor shall account for all components received from, and shipped to, the Government.

5.0 Improvements

5.1 Service Bulletins

The Contractor shall provide the Contracting Officer with two (2) copies of all service bulletins within ten (10) calendar days of receipt. The Contracting Officer will notify the Contractor in writing when incorporation of mandatory or optional service bulletins is required. The Contractor shall submit, within thirty (30) calendar days after receipt of this notification, a detailed proposal, which shall include a listing of replacement parts and/or materials required, the time needed to affect the modifications, estimated price breakdown of each part, and the number of labor hours required.

5.2 Service Bulletins, Modifications, Engineering Change Proposals (ECP), Local Engineering Change

Proposals (LECP) and Time Compliance Technical Orders (TCTO)

The Contracting Officer shall notify the Contractor in writing of component requiring incorporation of a service bulletin, modification, ECP, LECP, or TCTO. Upon receiving such notice, the Contractor shall submit, within thirty

(30) calendar days, a firm fixed price (FFP) proposal for an incremental charge to be assessed each time the service bulletin or change is incorporated. The proposal shall contain a breakdown of material and labor costs based upon the FFP labor rates and material factors. The incremental charge agreed upon for incorporation of a service bulletin http://www.dlis.dla.mil/jcp/Default.aspx mailto:Crystal.G.Taber@uscg.mil shall apply only to those components for which the Contractor has incorporated a required service bulletin, not those for which the service bulletin has been previously incorporated. Upon agreement of an incremental charge and issuance of an order modification to reflect this change, the service bulletin shall be incorporated into each subsequent component received at the overhaul facility if the service bulletin has not already been incorporated.

When incorporation of a service bulletin changes the P/N of the component contained in the schedule, the new P/N and NSN (if applicable) will be added to the order via modification.

6.0 Quality

6.1 Quality Control

The Contractor may be required to be certified and maintain a quality system that complies with the requirements of ISO 9001-2000 Quality Management Systems – Requirements or equivalent. The Contractor is responsible for performing or assuring all inspections, tests and calibration necessary to substantiate that the goods or services furnished conform to Government’s requirements. The Contractor shall take prompt action to correct conditions that have or could result in goods or services that do not conform to contractual requirements. Records of conformance shall be maintained on file at the Contractor’s facility and made available or provided for review by the Government upon request. The Government reserves the right to conduct surveillance at Contractor’s facility to verify the existence, adequacy and effectiveness of the quality system. Upon request of the Government, the

Contractor(s) shall forward a copy of their current certification and Quality Assurance Manual for review.

6.2 Warranty

The Contractor’s standard warranty for overhauled items will be incorporated into the purchase order.

7.0 Records and Reports

7.1 Contractor Verification of Receipt of Components

S/N tracking shall be used for validating the correct component(s) were received at the Contractor’s repair facility and returned to the USCG. Upon receipt of the component(s) from the USCG, the Contractor shall verify each component received to ensure that the S/Ns match the ones specified in the order within five (5) calendar days.

Should a discrepancy be identified, the Contractor shall notify the Contracting Officer in writing of the discrepancy.

Email notification is acceptable. The USCG utilizes an S/N tracking system and places high priority on parts integrity within aircraft components. As a result, any part which is determined to be in a serviceable condition as a result of inspection and functional testing shall be reused in the component from which it was removed, if practical, with the exception of parts specifically replaced during the overhaul as required by the directives as specified within the order.

7.2 Certificates

The Contractor shall maintain, at a minimum, one of the following: FAA, Department of Defense, OEM, Industry

Standard Certification, NAVSUP WSS (i.e., National Aerospace and Defense Contractors Accreditation Program) and/or USCG certifications for repair of components identified in the schedule for the entire duration of this purchase order. The Contractor shall provide immediate notification to the Contracting Officer upon loss of any required certifications. The Contractor shall also:

Comply with the certification/documentation requirements specified herein.

Attach certifications/documentation to the outside of the shipping container.

All parts repaired under the provisions of this purchase order must be airworthy and suitable for installation on

USCG aircraft. Each returned component shall be tagged with a DD Form 1574 Serviceable Condition Code Tag or a FAA Form 8130-3, Airworthiness Approval Tag, completed in its entirety. The Contractor shall furnish a

Certificate of Airworthiness in accordance with FAA procedures (or USCG approved alternate procedure) and a

Certificate of Conformance (COC) IAW FAR 52.246-15 for all components. These forms shall be packaged with each component and copies shall be included with the invoice. FAILURE TO SUBMIT THE APPROPRIATE

CERTIFICATES SHALL CONSTITUTE AN IMPROPER INVOICE AND WILL RESULT IN

NONPAYMENT. The Contractor’s FAA certification must reflect authorization to repair the exact category of component specified in this SOW. If the Contractor cannot provide an Airworthiness Certificate, the alternate ALC

MRR Engineering approved document is a COC. The Contractor shall furnish a COC IAW FAR 52.246-15 for each component. The COC shall be signed by an authorized official of the approved source and must specify the nomenclature, manufacturer's P/N, and date of manufacture.

8.0 Aircraft on Ground (AOG) Situations

Upon notification from the USCG that an AOG situation exists, the Contractor shall expedite repair and initiate shipment within twenty-four (24) hours after notification. The shipping container shall be marked on the outside in highly visible lettering "A.O.G." At the time the Contractor is notified of an AOG requirement, the Contractor shall advise the Contracting Officer, or their representative, if there are additional shipping charges. The Contracting

Officer will provide special shipping instructions and authorization for reimbursement in these instances. The component shall be shipped by the fastest traceable means (i.e., air freight, next day delivery). The Contracting

Officer may issue an order modification authorizing additional funding as agreed upon by the Government and the

Contractor to accomplish the expedited repair. The Contractor shall ship the component(s) directly to the destination the Contracting Officer designates as quickly as possible using the fastest traceable means (i.e., air freight, next day delivery).

9.0 Markings of Warranted Items

Pursuant to the requirements of FAR 46.706 (b) (5), the Contractor shall stamp or mark the supplies delivered, or otherwise furnish notice with the supplies, of the existence of the warranty. For commercial items, the Contractor’s trade practice in warranty marking is acceptable if sufficient information is presented for supply personnel and users to identify warranted supplies. Markings may be brief, but should include the information below:

A brief statement that a warranty exists

The substance of the warranty

The duration of the warranty

Who to notify if the supplies are found to be defective