70Z03819RB2000001_-_Attachment_2_-_SOW.pdf

Attachment 2 70Z03819RB2000001

PERFORMANCE BASED LOGISTICS SERVICES

STATEMENT OF WORK

1.0 SCOPE

1.1 The Contractor shall provide management, logistical support, asset accountability, procure new replacement for obsolete parts, perform repair, overhaul and modification support for the United States Coast Guard (USCG)-owned assets identified in Attachment A during the periods specified in Section 15. The Contractor shall maintain configuration control of all listed components. The logistical support provided through these activities shall be designed to increase the spares availability for the USCG aircraft fleets (MH65D/E, H60T, HC130H/J, HC144A/B and HC27J) and other future aircraft model versions. The Contractor shall continually review the reliability of each component managed through this contract with the goal of increasing current Mean Time Between Failures (MTBF), availability and dispatch reliability.

The Contractor shall provide Ready-for-Issue (RFI) assets to various USCG sites and shall submit all data requirements as specified herein. The USCG may utilize this contract for the purchase of parts in conjunction with product improvements, replacement of obsolete parts, and other similar efforts.

The following definitions apply to this scope of work:

a) Performance Based Logistics (PBL): Contractor support in accordance with the

Statement of Work (SOW) to be invoiced/paid at the PBL rates set forth in the contract line items based on total flight hours accrued by each of the aircraft fleets during the applicable performance period. All assets managed by the Contractor under the contract shall be returned to the USCG at the completion of this contract in a RFI condition, except where Unusual Damage applies (See Section 6.2).

b) Flight Hour: Hours as reported by the USCG in accordance with USCG Air Operations

Manual M3710.1 (Series).

This contract will include fixed price incentive/disincentive task orders based on the requirements identified in sections 12.0 and 13.0 of this SOW.

2.0 APPLICABLE DOCUMENTS

2.1 USCG Documents

2.1.1 USCG Commandant Instruction Manual (CIM)

CIM M5500.13 (series) USCG Cybersecurity Manual

CIM 4121.4, USCG Uniform Supply Operations (USO) Manual, Chapter 16.D.5

2.1.2 Air Operations Manual

USCG Air Operations Manual M3710.1 (series)

2.1.3 Standard Operating Procedures (SOP)

Information Systems Security – Contractor Background Checks 1 Aug 2003

2.1.4 Aviation Logistics Center (ALC) Instruction

4100.1A Aviation Logistics Center Material Disposal Procedures 8 Sep 2016

2.1.5 A copy of any of the documents listed above may be obtained by written request and approval by the Contracting Officer (KO).

2.2 Federal Aviation Administration (FAA) Advisory Circulars (AC)

AC 43-4A Corrosion Control for Aircraft 25 Jul 1991

2.2.1 A copy of these circulars are available at www.faa.gov.

2.3 Military Standards

MIL-STD-2073-1 Department of Defense (DOD) Standard Practice for 23 May 2008

Military Packaging

2.4 Applicable Commercial Documents

2.4.1 Original Equipment Manufacturer (OEM) Component Maintenance Manual (CMM) and other applicable technical specifications for the components set forth.

2.5 Precedence. In the event of a conflict or ambiguity, the following order of precedence among documents shall govern:

a) USCG specifications and procedures, including this SOW and referenced documents

b) OEM specifications and procedures

2.6 Section References. Within this SOW, references to a given section number shall imply reference to all subsections. Where a group of sections is referenced, such as Section 3.1.1 through 3.5, the word inclusive after Section 3.5 is implied whether or not actually stated.

3.0 MAINTENANCE REQUIREMENTS

3.1 Repair, Overhaul, and/or Modification of USCG Assets. The Contractor shall repair or overhaul, modify (as necessary), test, and inspect the USCG assets identified in Attachment A.

All maintenance shall be accomplished in accordance with the current OEM specifications and

Technical Orders (TOs). The decision to repair or overhaul shall be made by the Contractor based on the procedures established by the OEM. Any defective material removed from a Non-

Ready for Issue (NRFI) component will become the property of the Contractor. For the purpose of minimizing Turn Around Time (TAT), the Contractor may repair any Shop Replaceable Unit http://www.faa.gov/

(SRU) or remove any serviceable piece part from a NRFI asset to complete a repair, overhaul and/or modification. The Contractor shall inspect and/or test to determine the serviceability of removed repair and piece parts. After appropriate test and/or inspection, any RFI material removed from a NRFI asset may be used in the repair of other failed USCG assets. The

Contractor shall replace any removed piece parts to make the NRFI assets whole.

3.2 Changes to Equipment. The Contractor shall continually review the assets being managed under this contract with the goal of improving the current MTBF. During the term of this agreement, the Contractor may issue design change notices or service bulletins indicating changes.

3.3 Component Repair. The Contractor is authorized to submit repair/modification proposals for assets that the USCG has failed to supply in the required quantities as contained under Attachment B. The submitted proposal shall contain commercial pricing and applicable support for the prices submitted. Items that the KO agrees to have repaired by the Contractor will be funded on individual task orders. No repair work shall commence without prior approval from the KO. Any repair work performed prior to receipt of KO approval for repair will be done so at the Contractor’s expense.

3.4 Configuration Control. The Contractor shall be responsible for maintaining a configuration accounting system that will readily provide accurate and timely information describing the approved configuration of all USCG assets maintained under this contract. The

Contractor shall provide notification to the applicable Contracting Officer’s Representative

(COR) no later than thirty (30) calendar days following identification of such configuration changes.

3.5 Beyond Economical Repair (BER). The Contractor may request a component to be determined BER if after initial inspection of the component the Contractor feels that the part requires significant repair/overhaul/modification outside of the scope of the normal repair/overhaul procedures provided in the OEM’s CMM. The Contractor’s request shall be sent to the KO for consideration. Only USCG can determine a component BER. The KO will review the request, referencing ALC Instruction 4100.1A, and either accept or deny the BER request from the Contractor. If the KO denies the BER determination, the Contractor shall repair the component back to RFI condition at the Contractor’s expense. If the KO determines a component to be BER, the KO shall make a unilateral decision as to component disposition. All components determined BER by the KO shall be replaced by the Contractor and factored into Contract Line Item Numbers (CLINs) 0001-0007 and subsequent option period

CLINs. The Contractor shall return all BER items to ALC assembled unless otherwise directed.

The Contractor shall prepare a failure data report In Accordance With (IAW) Section 9.4 in these instances. This report shall be included with the returned component. When returning items to

ALC, these items shall be clearly marked as “BER” with the supporting device. If a Defense

Contract Management Area Office (DCMAO) or government representative is on-site, parts can be scrapped at the Contractor’s facility. If this option is requested and approved by the KO, the

Contractor shall provide a letter on corporate stationary stating the part or parts have been

“mutilated.” This letter shall include the Serial Number (S/N) (if applicable), National Stock

Number (NSN), Part Number (P/N), Quantity (QTY), and be dated and signed by the DCMAO or government representative. This letter will serve as the cradle to grave record and be filed with the contract.

3.6 Residual Property. Any residual parts or other material contained in items determined

BER (which are removed from USCG-owned assets during the course of maintenance or repair performed IAW this contract) may become the Contractor’s property effective with the completion of such maintenance or repair/overhaul/modification. Any asset which is determined to be BER by the KO may be considered residual property at the request of the Contractor, but is subject to approval by the KO. Any BER assets approved by the KO to be considered residual property shall follow the instructions in Section 3.5 after the asset has served its useful purpose and is ready for disposition. The Contractor shall provide notice and supporting documentation to the KO for consideration when, in the Contractor’s opinion, an asset is BER.

3.7 Corrosion. 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 manufacturer's specifications. If not addressed in the manufacturer's specifications, the Contractor shall use

FAA AC 43-4A.

3.8 Airworthiness. The Contractor shall furnish a Certificate of Conformance IAW Federal

Acquisition Regulation (FAR) Clause 52.246-15 (Apr 1984) and a Certificate of Airworthiness for all components delivered. The Certificate of Airworthiness shall be provided in the form of a

FAA Form 8130-3, EASA Form 1, or DOD equivalent. Any repaired component returned to

ALC must be tagged with a FAA Form 8130-3 Airworthiness Approval Tag, EASA Form 1, or

DOD equivalent completed in its entirety. This form shall be packaged with each component.

FAILURE TO SUBMIT THE APPROPRIATE CERTIFICATES WILL RESULT IN NON-

ACCEPTANCE OF THE DELIVERED ITEM. All non-accepted items will be returned to the

Contractor at the Contractor’s expense.

4.0 REQUIREMENTS

4.1 Asset Management. The Contractor shall provide all labor, parts, material, equipment, and facilities necessary to perform the requirements set forth herein.

4.1.1 Asset Status and Control. The Contractor shall manage the USCG-owned assets covered under this contract. The Contractor’s responsibilities include, but are not limited to:

a) Maintaining inventory records in a USCG approved format. Aviation Maintenance

Management System (AMMIS) is the system of record for all inventory throughout the life of the contract, unless replaced by another USCG-approved system. The Contractor shall be responsible for managing USCG inventory in AMMIS (or similar USCG system) on a daily basis. This includes, but is not limited to, receipting for, updating material status, issuing components, and directing parts pooling. The Contractor shall copy the appropriate Inventory Manager (IM) on all correspondence with Air Stations;

b) Maintaining an adequate supply of repair and piece parts to ensure conformance with delivery schedules set forth in Section 11;

c) Shipment of RFI assets as specified herein and as directed by USCG. Note: The USCG may direct the order of shipments from the Contractor’s facility to an Air Station when more than one work stoppage or Aircraft on Ground (AOG) conditions exists;

d) Control and storage of both RFI and non-RFI assets IAW Government property regulation at FAR 52.245-1, Alternate I.

4.1.2 Maintain Inventory Levels. The Contractor shall maintain a sufficient number of components to include sparing to support the estimated number of flight hours per aircraft type as established in the Schedule. The Contractor shall maintain a First-Time-Fill-Rate (FTFR) of

95% or greater for each P/N listed in Attachment A. This value will be calculated on the total parts available at all sites. The USCG may use the field inventory without prior notification to the Contractor. It is the Contractor’s responsibility to ensure RFI replenishment items are readily available and be delivered within the time frames specified in Section 11.

RFI assets maintained under this contract will be located at each site supported as indicated in

Appendix A. The Contractor shall maintain the specified QTY of RFI assets to support the aircraft at each location specified in Attachment B. The Government shall maintain the specified

QTY of pipeline assets which includes Air Station allowances as contained in Attachment B.

The inventory allowances shall be based on the USCG provided annual allowance review recommendations which will be evaluated by both USCG and Contractor personnel. Any inventory shortages identified in Attachment B transferred from the previous contract will be funded and filled at the Contractor’s expense.

For inventory shortages pertaining to Attachment B that are not transferred from the previous contract, if any (not including components determined BER or lost/misplaced by the Contractor), the USCG may place an order for and/or provide the assets to the Contractor no later than sixty

(60) calendar days following contract award or as soon as funding is available. USCG may place an order for any item(s) listed in Attachment B to address any inventory shortage(s) or potential inventory shortage(s) throughout the life of the contract.

The USCG will advise the Contractor within fifteen (15) calendar days when there is a change in the status of aircraft or operational sites being supported. The Contractor may suggest changes to the inventory levels that will improve the effectiveness and efficiency of the support provided

USCG aircraft, however USCG will have final approval. No change in minimum inventory levels shall be made without USCG approval. The balance of assets not required at sites will be maintained at the Contractor’s facilities in a secure storage area (see section 4.1.4).

The Contractor shall maintain a sufficient number of RFI spares to support the aircraft identified on this contract. Any aircraft platforms may undergo configuration changes throughout the life of this contract. The Contractor shall be required to maintain sparing throughout the aircraft configuration change. Once configuration change(s) of the aircraft is complete, the Contractor shall return any excess material, regardless of condition, not utilized by other USCG aircraft.

This disposition of assets will be directed by the KO via contract modification.

The Contractor shall manage a continuous enhancement program designed to reduce support costs while improving reliability, availability and system performance.

4.1.3 Repair and Piece Parts Inventory. The Contractor shall maintain an inventory of repair and piece parts to meet the shipping response times of Section 11. All parts used for the repair, overhaul and/or modification of the assets listed in Attachment A shall meet or exceed the

OEM’s specifications. The Contractor shall replace piece parts and/or components that have become obsolete or can no longer be procured. These replacement costs shall be factored into CLINs 0001-0007 an subsequent option period CLINs. Component changes which do not change the form, fit, and function of the component do not require USCG approval and shall be incorporated at no additional cost to the Government. Component changes which change form, fit, or function shall be documented via Service Bulletins and provided to the

USCG for approval prior to incorporation. Incorporation of safety of flight service bulletins are included in the pertinent PBL prices. See Section 9.3.1 for incorporation of optional service bulletins.

4.1.4 Secure Storage Area. The USCG assets shall be maintained by the Contractor within a secure storage facility IAW Government-approved property procedures. Responsibility for loss or damage of Government Property in the Contractor’s facility will be IAW FAR 52.245-1, alternate I. Losses or damaged property shall be reported to the USCG no later than fifteen (15) calendar days after the event is noted. No later than thirty (30) calendar days following expiration of this contract, all Government property shall be returned to the USCG at Elizabeth

City or to other locations designated by USCG at the Contractor’s expense.

4.1.5 Shipment of Assets.

4.1.5.1 USCG-Directed Shipments. Due to mission requirements, the USCG may direct shipment of assets to specific locations (i.e., deployed assets). The USCG will provide a shipping notice to the Contractor in such event. The Contractor shall deliver per these terms and update inventory records based on the information provided.

4.1.5.2 Shipping Repairable Assets from USCG Sites to Contractor. The USCG will ship repairable assets from USCG sites directly to the Contractor repair facilities. Assets will be shipped within seven (7) business days from the Julian Date designated on the applicable requisition, with the exclusion of assets coming from deployed or away from home station aircraft and the ALC warehouse (50100). Due to the prevention of unauthorized access to

Communications Security (COMSEC) equipment and its handling, COMSEC equipment will also be excluded from this shipping requirement. Repairable assets shipped from USCG sites to the Contractor’s facility shall be shipped prepaid by the Contractor.

The USCG will provide the following information for each asset returned for maintenance to mirror Contractor’s Power by the Hour (PBH) turn-in form:

a) NSN

b) P/N

c) S/N of failed asset

d) S/N of replacement asset

e) Date/time of failure

f) Failure symptoms/reason for removal

g) Status at time of failure

h) Aircraft tail number

i) Significant Component History Report (SCHR)

j) Removal date from aircraft

k) Shipping date

l) Turn-in document number

m) Asset aircraft deployment status

4.1.5.3 Shipping RFI Assets from Repair Facilities. The Contractor shall ship assets as necessary to maintain the minimum sparing level specified in Attachment B. A DD Form 1149 shall be used to document the shipment. The Contractor shall maintain the service worksheet data for three (3) years following final delivery under the resulting contract. The information shall be made available to USCG personnel upon request.

4.1.5.4 Shipping Response Times. See Section 11. In the event the Contractor is unable to meet the required delivery schedule, the Contractor shall immediately notify the COR and

Contract Specialist administering the resulting contract. The Contractor shall provide reasons for the delay, positive actions for overcoming the situation, and a date when the USCG RFI asset shall be shipped. See Section 12 for Performance Incentive.

4.1.5.5 Priority for Repairing USCG Assets. It should be noted that the USCG’s highest priority is an Aircraft on Ground (AOG) situation (See section 5.2). The USCG’s need for a RFI asset(s) in an AOG situation shall become the Contractor’s highest possible priority. Additional effort and costs incurred by the Contractor, to include expedited shipping costs of the AOG asset(s), shall not be charged to the USCG. The Contractor shall provide a date when the AOG asset(s) shall be shipped and provide tracking for the shipment within one (1) calendar day of shipment being issued.

5.0 SPECIAL INSTRUCTIONS

5.1 Accelerated TAT and Delivery. Only the KO may request and authorize an accelerated

TAT and delivery if needed by the Government for delivery to the USCG, ALC Receiving

Department, Weeksville Rd., Elizabeth City, NC 27909 or to an identified Air Station or Sector in Appendix A. After receiving a written or verbal request from the KO for an accelerated TAT and delivery, the Contractor shall provide a written response within one (1) business day advising if an accelerated TAT and delivery can be accomplished.

5.2 Aircraft on Ground (AOG) Situations. An AOG situation necessitates a special schedule and requires accelerated repair/overhaul/modification completion and expedited delivery to the applicable USCG Air Station. In the event an AOG status occurs as a result of a lack of any of the components specified in the schedule, the Contractor will be notified by the

Government in email or by phone of the AOG situation and the applicable USCG Air Station and will be requested to provide a written response within twenty-four (24) hours of the request. The

Contractor’s response shall provide the status of the component(s) needed to satisfy the AOG condition that includes what USCG items in-house for repair are closest to completion under normal working conditions.

The Contractor shall be required to ensure the Requisition Number is included on all shipping/delivery tickets so that the Material Receipt can be processed by the applicable USCG

Air Station receiving personnel.

5.3 Aircraft Accidents and Incidents. Disposition of evidence, including components, involved in aircraft accidents or incidents shall be IAW current Government investigation procedures. These procedures are IAW and at the direction of the National Transportation

Safety Board whose rules and regulations delegate to the Government such authority as is appropriate. The Contractor has an affirmative obligation to cooperate with any and all accident investigation procedures. Contractor participation in these proceedings will be determined by the president of each accident or incident board and directed by the KO. Investigations of failures undertaken outside of formal proceedings will be a cooperative effort between

Contractor and the Government.

5.3.1 Crash-Damaged Components. Crash-damaged components may be sent directly from the crash site to the Contractor’s facility for teardown and evaluation. This teardown and evaluation portion of the effort is included in the PBL rate. Any “over and above” effort shall be processed IAW the Unusual Damage requirements in Section 6.2, if applicable.

6.0 CONTRACT LINE ITEM PRICING

6.1 USCG-owned Assets. The USCG-owned assets shall be maintained at the rates identified in the Schedule set forth herein. The USCG anticipates issuance of annual task orders which will provide funding for the prorated portion of flight hours (by aircraft) for the applicable performance periods and performance incentives. See Section 19.2 for ordering/payment information. The PBL services include the charges for all Contractor efforts outlined in the

SOW except optional service bulletins (see Section 9.3.1) and exclusions (see Section 6.2). The

USCG is not liable for any charges for these additives unless separately authorized in writing by the KO. All shipping costs for items going to and from USCG facilities and the Contractor’s designated depot facilities will be paid by the Contractor. Shipping costs for items being parts pooled between USCG facilities will be paid by the Government.

6.2 Pricing Exclusions – Unusual Damage. The Contractor shall not be obligated to repair or replace any assets under the PBL rate when any of the following conditions exist:

a) Obvious misuse

b) Crash damage

c) Acts of God

Only components meeting one or more of the above criteria may be considered Unusually

Damaged. The conditions specified in this section, except Acts of God, apply to loss or damage occurring on locations other than those owned and/or controlled by the Contractor, or occurring while the assets are not under the Contractor’s position or custody.

If a component is considered by the Contractor to be Unusually Damaged, the Contractor shall immediately notify the KO in writing. The contractor shall submit within fifteen (15) calendar days after notification to the KO, a quote to cover the cost of the repair or overhaul. The teardown and evaluation effort is covered under the PBL pricing identified in the Schedule and shall not be reflected in the “over and above” pricing in the quote. The quote shall include the

Nomenclature, NSN, P/N, S/N of the component as well as the specific reason(s) that the effort qualifies as Unusually Damaged, the cost of the effort, the QTY of any replacement parts, and the total labor hours. The Contractor shall verify cost of replacement parts with supporting invoices, catalogs, or other documentation acceptable by the USCG and shall provide a teardown/evaluation report as specified in Section 9.8.

Within thirty (30) calendar days after receipt of the Contractor’s written proposal, the KO will make a written determination (subject to the Disputes clause) as to whether or not the component is determined to be Unusually Damaged and excluded from the PBL price identified in the

Schedule. If the KO determines that an excluded item is BER, no Unusual Damage charges will apply. Any asset determined by the KO to be BER will be retained by the Contractor as residual property as specified unless otherwise instructed by the KO. Any usable components, modules, or assemblies from a BER component may be used in the repair of other USCG assets. If the KO agrees with the Unusual Damage recommendation and desires repair or overhaul of the component, a separate Task Order will be issued reflecting authorization and funding at the

Unusual Damage rate found in CLIN 0008 and subsequent option period CLINs in the Schedule.

No Unusual Damage repairs shall be completed without prior approval by the KO. The

Contractor shall assume the risk of all expenses invested in an Unusual Damage recommendation not approved by USCG. Unusual Damage charges shall be invoiced against the applicable Task

Order number.

7.0 GOVERNMENT FURNISHED AND CONTRACTOR ACQUIRED DATA

7.1 Government Furnished Data. The USCG will provide a list of the TOs currently being used to operate and maintain the avionics components managed under this contract upon request from the Contractor. Additionally, the Government will continue to provide data necessary for the Contractor to access AMMIS.

7.2 Government Furnished Property/Equipment. Items currently covered as Government

Furnished Property (GFP) or Government Furnished Equipment (GFE) under USCG contract

HSCG38-09-D-200001 will transfer from that contract to the new resulting contract at time of award. The Contractor shall return all GFP and GFE to the USCG at Elizabeth City or to other locations designated by USCG at the Contractor’s expense no later than thirty (30) calendar days following expiration of this contract.

7.2.1 Inventory of GFP and GFE. The USCG has the right to conduct inventories of all GFP and GFE in Attachments A and B at any time.

7.2.1.1 Annual Inventory. An annual inventory shall be conducted during the Spring Program

Management Review (PMR) at the Contractor’s facility on an agreed upon date by both the

USCG and the Contractor and shall result in a line count accuracy rate of 90% or better. This includes, but is not limited to, inventory that is stored and maintained at all Contractor facilities.

The inventory will be conducted IAW USCG guidelines and procedures using AMMIS as the system of record. A disincentive of $10,000 shall be applied for results showing less than a 90% line count accuracy at the completion of the initial inventory. For each additional 10% the line count accuracy of the inventory is below the 90% accuracy requirement, an additional $10,000 disincentive shall apply. A disincentive of $10,000 shall be applied for results showing less than

95% of the total dollar value, based on the value shown in AMMIS, at the completion of the inventory. For each additional 10% the accuracy of the total dollar value is below the 95% accuracy requirement, an additional $10,000 disincentive shall apply. Any discrepancies and reconciliations shall be completed within fifteen (15) business days of completion of the inventory between USCG and the Contractor. After the fifteen (15) business days, an additional disincentive of $100 per calendar day shall be applied until all reconciliations are completed.

7.2.1.2 Quarterly Inventory. The USCG conducts random quarterly inventory that is generated automatically. If the Contractor is notified to perform this inventory the Contractor shall accomplish the inventory within one (1) business day in the format directed by USCG CIM

4121.4. A disincentive of $1,000 shall be applied for results showing less than 90% line count accuracy at the completion of the inventory. For each additional 10% the line count accuracy of the inventory is below the 90% accuracy requirement, an additional $1,000 disincentive shall apply. A disincentive of $1,000 shall be applied for results showing less than 95% of the total dollar value, based on the value shown in AMMIS, at the completion of the inventory. For each additional 10% the accuracy of the total dollar value is below the 95% accuracy requirement, an additional $1,000 disincentive shall apply. Any discrepancies shall be completed within two (2) business days after completion of the inventory. After the two (2) business days, an additional disincentive of $100 per calendar day shall be applied until all discrepancies are completed.

7.2.2 Estimated Quantities (Government Property). Failure of the Government to furnish items in the quantities described in Attachment B will not entitle the Contractor to any equitable adjustment in price under the Government Property clause of the contract.

7.2.3 Value of Government Property. The value of the GFP is set forth in Attachment A.

7.3 Contractor Access. The Contractor shall only access those areas of USCG Information

Technology (IT) resources (e.g. computer equipment, networking equipment, telecommunications equipment, cabling, network drives, computer drives, network software, computer software, software programs, intranet sites, internet sites) explicitly stated in this contract and/or approved by the COR in writing as necessary for performance of work under this contract. Any attempts by Contractor personnel to gain access to any IT resources not explicitly authorized by the COR is subject to the immediate access removal. Contractor access to USCG networks from a network location is a temporary privilege for the mutual convenience it offers while the Contractor performs business for the USCG. It is not a right, guarantee, a condition of the contract, not is it GFE. Contractor access will be terminated for unauthorized use. The

Contractor agrees to hold the USCG harmless and the Contractor shall not request additional time or money under the contract for delay resulting from unauthorized use.

7.3.1 Government System Access. Performance under this contract will require the

Contractor to interface with the USCG AMMIS (or similar USCG system) computer software.

AMMIS (or similar USCG systems) may be accessed from the authorized Contractor-owned computer(s) located in the U.S. The USCG will provide the software required for remote access into the government system. The Contractor is required to provide an internet connection for computer access. The Contractor shall notify the KO no later than one (1) hour after encountering problems with AMMIS or GFE. All Contractor personnel requiring access to

USCG AMMIS (or similar USCG systems) computer software will be required to obtain a government Common Access Card (CAC). All Contractor employees granted access to USCG information systems shall receive a security briefing as described in Section 7.4.

7.3.2 Financial/Criminal Background Check. Contractor employees that will perform work at a Government facility and those who will have access to AMMIS or other USCG systems shall have a Financial and Criminal Background check. These employees are required to complete the following steps prior to commencement of performance:

a) Have an investigation completed at a National Agency Check with Inquiries (NACI) level or higher and obtain fingerprints.

b) Complete an e-QIP online SF-85 form.

c) Complete Form OF-306, Declaration for Federal Employment.

d) Complete DHS Credit Release Form DHS 11000-9.

e) Complete and pass Information System Security (ISS) training and sign the Automated

Information Systems (AIS) User Acknowledgement Form. By signing this agreement, the individual(s) will be acknowledging their responsibility to properly use and safeguard all USCG IT resources and related information.

7.3.3 ISS – Contractor Background Checks. In order to obtain a Government computer account and Government-issued Common Access Card (CAC), the Contractor employee(s) shall have an investigation completed at a NACI level or higher. In addition to a NACI, the following investigation will meet or exceed the USCG’s requirements:

a) Single Scope Background Investigation

b) Single Scope Background Investigation – Periodic Reinvestigation (SSBI-PR)

c) Phased Periodic Reinvestigation (equivalent to a SSBI-PR)

d) Access NACI

e) National Agency Check with Local Agency and Credit Checks

f) Periodic Reinvestigation

g) Minimum Background Investigation

h) Limited Background Investigation

i) Background Investigation

j) Child Care NACI

7.3.4 Previous Investigations. If the Contractor employee has had one (1) of the previously mentioned investigations completed (section 7.3.3) with no negative findings, then this shall be verified by the Contractor on company letterhead and emailed. To ALC-ContractorBI@uscg.mil with the subject line “Background Check Verification.” A template for this document is available from the KO. If the Contractor employee does not have a previous investigation that meets the criteria listed above, then the requirements identified in section 7.3.5 below shall be completed.

7.3.5 Initiating New Background Checks. Send an email to ALC-ContractorBI@uscg.mil with the subject line “Initiate Background Check.” The body of the email shall contain the following information:

a) Social Security Number

b) Full name: First, Middle, and Last

c) Applicant’s Email Address

d) Applicant’s Job/Position Title

e) Applicant’s Start Date

f) Contractor Program Manager Email Address

g) Date of Birth

h) City of Birth

i) County of Birth

j) State of Birth

k) Country of Birth

l) Prime Contract Number

m) Period of Performance Dates

n) Company Name

o) Company Address

p) Company Phone Number

q) KO’s Name

r) KO’s Phone Number mailto:ALC-ContractorBI@uscg.mil

s) COR Name

t) COR Phone Number

7.3.5.1 This information will be used to set up an account for the applicant in the Office of

Personnel Management’s e-QIP system. E-QIP is an online system used to submit required information for background checks. Once the account has been set up, an email will be sent to the applicant which will contain a link to the e-QIP system. The applicant will then need to go to the link and follow the prompts to complete an online SF-85 form. The e-QIP link is available via the internet and can be accessed anywhere a normal website is accessed. Once the applicant has completed the online form, the applicant will release the form and Standards and Security will process the e-QIP package. The e-QIP process shall be completed AND verified completed prior to the commencement of any work against this contract.

7.3.6 Obtain Fingerprints. The applicant shall be fingerprinted at one (1) of the following locations:

a) Elizabeth City USCG, building 45. This office will only conduct fingerprints by appointment only on Mondays between 0800-1145 and 1245-1515 Eastern Standard

Time (EST). The applicant will need to provide their driver’s license or a Government

Issued Identification (ID). The fingerprints will be electronically submitted to the USCG

Security Center.

b) USCG Security Center, 1441 Crossways Blvd., Suite 102, Chesapeake, VA. Fingerprints are conducted Tuesdays and Thursdays, by appointment only and only by the Standards and Security Branch, between 0900-1500 EST. The applicant will need to provide an ID as described above. The fingerprints will be electronically submitted to the USCG

Security Center. If the applicant has their fingerprints completed here, the Contractor shall let the USCG Information Security Division Standards and Security know via the

ALC-ContractorBI@uscg.mil email address. Once this email is received, an appointment will be made on behalf of the applicant.

c) Local Sheriff’s Office. The applicant will need to provide an ID, as described above, an will need to inform the deputy that the fingerprints are being conducted for a USCG security background check. The applicant will need to request two (2) copies of their fingerprints which will be provided to them on FD-258 fingerprint cards. These cards shall be delivered to ISD, Building 63, at ALC.

7.3.7 Required Forms. The following forms shall be completed AND submitted five (5) business days prior the start date at ALC:

a) Form OF-306, Declaration for Federal Employment

b) Miscellaneous Information Word document

7.3.8 Submitting Required Documentation. Once these steps have been completed, the two

(2) sheets, OF-206 and the Miscellaneous Information Word document may be scanned and emailed to ALC-ContractorBI@uscg.mil with the subject line “Completed Security Package.”

These documents cannot be combined into one (1) attachment. They shall be scanned and attached as two (2) separate documents. The fingerprint cards cannot be accepted as a scanned document. If the applicant obtained their fingerprints at the Sheriff’s Office, the fingerprint cards shall be delivered to the Standards and Security Branch in ISD, Building 63, at ALC.

7.3.9 Final Steps. After the required documents have been received, the USCG will compile them in e-QIP and submit them to the USCG Security Center. At this point, no further action can take place to process the computer account and CAC until ALC receives a favorable fingerprint report back from the USCG Security Center. The expected wait time is six (6) to either (8) weeks.

Please note: New contract employees will not be eligible to receive a CGOne computer account until all the required documents have been received and verified for accuracy. After the security package has been submitted to the Security Center, the employee will be eligible to receive their

CGOne computer account for thirty (30) days. Once the thirty (30) days expires, the member will lose access to their CGOne computer account.

7.3.9.1 When the USCG receives notification of a favorable fingerprint check, notification will be provided to the Contractor’s Program Manger and the applicant will be requested to report to the Standards and Security Branch in ISD at ALC. For Contractor employees not physically located at ALC, the COR will coordinate with the Standards and Security Branch to determine how to complete the required briefing and ISS training. Once the applicant has successfully completed the ISS training and signed the AIS form, a request will be submitted to the USCG’s

Centralized Service Desk (St. Louis, MO) to request the applicant’s computer account be created. This process shall also be completed before a Government CAC is issued.

7.4 USCG Information System Security. No contractor personnel shall commence any performance under this contract until they:

a) Have received a security briefing about the USCG Cybersecurity Manual, USCG

COMDINST M5500.13 (series), from the appropriate USCG Information Systems

Security Officer (ISSO); and

b) Have signed an “Annual USCG Information Technology Contractor User Security

Agreement.”

By signing this agreement, the individual will be acknowledging their responsibility to properly use and safeguard all USCG information technology resources and related information. The

COR, identified in Section 20.2, of this contract shall arrange the aforementioned security briefing. The ISSO is responsible for retaining the security documents signed and submitted by the Contractor employees.

The Contractor shall only access those areas of USCG information technology resources (i.e., computer equipment, networking equipment, telecommunications equipment, cabling, network drives, computer drives, network software, computer software, software programs, intranet sites, internet sites) explicitly stated in this contract and/or approved by the COR in writing as necessary for performance of the work under this contract.

Contractor access to USCG networks from a remote location is a temporary privilege for the mutual convenience it offers while the Contractor performs business for the USCG. It is not a right, a guarantee, a condition of the contract, nor is it GFE.

Any attempt by Contractor personnel to gain access to any information technology resources not explicitly authorized by the COR is strictly prohibited. In the event of violation of this provision, USCG will take the appropriate action(s) with regard to the contract. Contractor access will be terminated for any unauthorized use. The Contractor agrees to hold the USCG harmless and the

Contractor will not request additional time or money under the contract for delay resulting from unauthorized use.

8.0 MEETINGS

8.1 Program Management Review (PMR). The Contractor and USCG shall each host a semiannual formal PMR, once each at their respective locations. The Contractor shall provide a proposed agenda to USCG no later than ten (10) calendar days prior to the scheduled PMR for review and comments. During the PMR, the Contractor shall, at a minimum, provide updates to key personnel, status of current projects, expected projects to begin before next scheduled PMR date, projected gaps between planned improvements and sustainability requirements, and the

System Integration Lab (SIL) status for each USCG aircraft platform. The government will brief the status and concerns for each USCG aircraft platform. The Contractor shall take minutes at each PMR and provide them to USCG within fifteen (15) calendar days for review and concurrence.

The following personnel are recommended to attend each PMR:

a) USCG ALC Contracting

b) USCG ALC Management

c) USCG ALC IMs for each USCG aircraft

d) Contractor Management

e) Contractor Contracting

f) Contractor Field Service Engineering support

8.2 Action Item (AI) Meetings. The USCG and Contractor shall meet monthly via telecom to discuss AIs identified from the PMRs that require monitoring and progress review. Also to be discussed are any new items/concerns that develop between PMRs that require action and monitoring. The Contractor shall provide an agenda to USCG no later than one (1) calendar day prior to each scheduled meeting. This is to ensure the USCG has adequate time to review and prepare for the meeting.

8.3 Meeting Deliverables

Requirement Delivery Requirement SOW Reference Acceptance Method

Provide PMR Agenda 10 calendar days prior to PMR

8.1 KO will confirm

receipt/acceptance

Provide PMR Minutes 15 calendar days after completion of PMR

8.1 KO will confirm

receipt/acceptance

AI Meeting Agenda 1 calendar day prior to

AI meeting

8.2 KO will confirm

receipt/acceptance

9.0 DOCUMENTATION/REPORTS

9.1 Contractor Verification for Receipt of New or Modified Components. In the event the Contractor receives a new or modified component not contained in Attachment A or B, the

Contractor shall provide written notification of the following to D05-DG-ALC-SRR-

SUPPLY@uscg.mil within five (5) business days following receipt of component(s):

a) Date of receipt of components(s);

b) Confirmation of S/Ns received; and

c) Applicable Task Order and line item number

9.1.1 A disincentive of $1,000 per calendar day will apply after the initial five (5) business days following the receipt of component(s). This disincentive will apply until the Contractor has notified the KO of receipt of the component to allow the inventory in Attachments A and B to be correctly reflected.

9.2 Records.

9.2.1 S/N Records. The Contractor shall maintain a record by S/N of each USCG asset inducted into the Contractor’s PBL maintenance program. The record shall provide the following information:

a) NSN, P/N, Nomenclature.

b) Location:

1. Depot.

2. Air Station or Sector

3. In-transit.

4. Installed, including S/N of aircraft.

c) History of each supply transaction to include:

1. Type of transaction.

2. Date.

3. QTY.

mailto:D05-DG-ALC-SRR-SUPPLY@uscg.mil mailto:D05-DG-ALC-SRR-SUPPLY@uscg.mil

d) History of each repair/overhaul to include:

1. Reason for removal.

2. Operating hours between installation and removal.

3. Unverified failure.

4. Shipping Air Station.

5. Description of the work performed.

6. List of parts used in the repair/overhaul.

7. Date of completion of performed work.

8. The current status:

i. Time,

ii. Cycle, or

iii. Date limit.

9. Name of person performing the work.

10. Signature, certificate number, and kind of certificate held by person approving the work.

9.2.2 Summary Records. A summary record for each USCG asset documented by NSN shall be kept to provide the following information:

a) RFI and repairable QTY by location:

1. Depot.

2. Air Station or Sector.

3. In-transit.

b) NRFI QTY by location.

c) Response times (demand to shipping date).

d) Demands for shipment by priority category.

e) Unverified failure history by Air Station.

f) MTBF/Mean Time Between Unit Return (MTBUR).

9.2.3 Record Exceptions. The Contractor will not be held liable for any information not maintained that was not provided on the PBH turn-in form by the USCG.

9.3 Service Bulletins. Incorporation of mandatory Service Bulletins (SBs) shall be included in the PBL pricing identified in the Schedule as CLINS 0001-0007 and subsequent option period

CLINs.

9.3.1 Optional Service Bulletins. When the need for incorporation of an optional SB is identified, the Contractor shall submit a quote for the charges to be assessed each time the SB is incorporated into an USCG asset. The quote shall contain a breakdown of required parts/materials, associated prices for required parts/materials, and the number of labor hours required. The Contractor shall provide an analysis of the impact of incorporation of any proposed SB on the reliability of the component. Additionally, the Contractor shall provide an analysis of any associated price reductions. The labor rate applicable to the development of the

SBs is identified as CLIN 0009 and subsequent option period CLINs. The Contractor shall also provide an estimate of the total number of USCG assets that will require incorporation of the SB for each contract period of performance. Additional labor charges will not apply for SBs unless otherwise approved by the KO.

Upon agreement of the SB price, the KO will issue a Task Order reflecting the incorporation of the SB requirement and not-to-exceed funding covering the estimated costs for the current performance period. The Contractor shall not incorporate optional SBs prior to receipt of a Task

Order issued against the contract authorizing incorporating the SB signed by the KO. Any and all costs incurred by the Contractor in excess of the not-to-exceed funding level shall be at the

Contractor’s risk. SB charges shall be invoiced against the applicable issued Task Order.

9.4 Failure Data Report. The Contractor shall submit a failure data report for each repaired component (including when no fault is found), which shall be attached to the packing slip and shipped with the repaired component. This report shall include NSN, P/N, S/N, nomenclature, date of repair, contract number, task order number, line item number, description of the repair failure, the Government’s reported failure, 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.

9.5 Replacement Parts Summary. Upon request by the KO, the Contractor shall submit electronically a summary listing all replacement parts utilized in the repair of each component.

The replacement parts listing shall include the contract number, task order number, Contractor's work order number, component S/N, nomenclature, replacement parts listed in numerical order and QTY of each used.

9.6 Asset Computerized Maintenance System (ACMS) Procedures. ACMS is the management information system used to schedule and record all USCG aircraft maintenance.

Tracked components will be shipped to the Contractor with a SCHR.

9.6.1 SCHR. The SCHR records the maintenance history of S/N tracked components. The

SCHR remains with its corresponding part until reinstalled on an aircraft or annotated “BER” and returned to the address specified in section 17.2, unless otherwise instructed by USCG. The

SCHR for scrapped components shall be returned with the component. The Contractor shall retain a copy of the SCHR for ninety (90) business days.

9.6.2 Component Repair Record (CRR). The CRR records the maintenance performed on

S/N tracked components by the Contractor and enrolls or removes components from ACMS when those components are scrapped, added to or removed from the USCG parts inventory. The

Contractor is required to use the CRR provided with the component. Within five (5) business days following issuance of a Certificate of Conformance, one (1) copy of the CRR shall be emailed to the Contract Specialist administering the contract. The original copy of the CRR shall be packed with the component for return to the USCG. The Contractor shall retain electronic copies of the CRRs for the life of the component. The Contractor may request that their failure data report, described in section 9.4, be accepted to fulfill the CRR requirement.

9.7 Teardown/Evaluation Report. For each component identified by the Contractor as a potential Unusual Damage pricing exclusion under this contract, the Contractor shall prepare a report documenting the reason for the potential exclusions, specify the part(s) incurring damage, and state recommended disposition instructions of the part(s) (i.e., repaired, overhauled, scrapped) as a result of the Unusual Damage. The report shall be prepared and submitted to the

KO with the Unusual Damage quote as specified in Section 6.2. A copy of each report shall be retained on file at the Contractor’s depot facility for the entire duration of this contract (including options, if exercised) and may be viewed/copied by USCG personnel upon request.

9.8 Contractor Reports.

9.8.1 Daily Reports. The Contractor shall…