AppendixB_Government_Property_Management.pdf

CONTRACT DEPOT MAINTENANCE

____ AIR FORCE BASE

APPENDIX B

GOVERNMENT PROPERTY MANAGEMENT

18 February 2020

Contract #: ___________________ PMS: __Millicent Brand _______________

PR #: __FD20301902607 _______ Ph #: 405-582-9655 ____________________

Type Work: Remanufacture Workload Type: __GFE___________

Contract Designation is: GFM

TABLE OF CONTENTS

Section Page

1 Terms Explained………………………………………………………………………….. 2 2 Contract Designation: GFM ..……………………………………………………………. 4 3 Government-Furnished Property ……..………………………………………………….. 4 4 Contractor Property Control Records…………………………………………………….. 6 5 Production Problems…………………………………………………………………… 7 6 Disposition of Government Property…………………………………………………... 7 7 Discrepancies Incident to Shipment……………………………………………………. 9 8 Disposition of Condemned Government Property……………………………………... 9 9 Contractor Reporting……………………………………………………………………... 10 10 Visits……………………………………………………………………………………… 10 11 Other……………………………………………………………………………………… 10 12 References……………………………………………………………………………… 10

LIST OF ATTACHMENTS

Attachment Page

1 CAV AF GFM Code Reference …………………………………………………………. 12 2 Authorized Government-Furnished Materiel (GFM) Listing …………………..……….. 14

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PURPOSE STATEMENT

This Appendix B is part of the contract and provides detailed instructions pertaining to the management and control of government-owned property and instructions/guidance on how the property is obtained, maintained, protected, controlled, accounted for, and disposed of. These instructions expound the general guidance given in the Federal Acquisition Regulation (FAR), which is incorporated by reference and made part of this contract. If the provisions of this appendix conflict with existing FAR or other government directives, the contractor will contact the contracting officer at Hill Air Force Base for guidance.

1. TERMS EXPLAINED: Terms and definitions are included in the regulations referenced as cited in this appendix and are supplemented for clarification as they apply within this Appendix:

1.1. Administrative Contracting Officer (ACO): A contracting officer assigned the responsibility for the post award functions related to the administration of a government contract in the field. The ACO is normally located in the Defense Contract Management Agency (DCMA) office. The ACO is responsible for ensuring the contractor performs in accordance with the terms of the contract.

1.2. Agency-Peculiar Property (APP): Government-owned property for military operations. It includes end items and integral components of military weapons systems along with related support equipment that are not readily available as commercial items. It does not include normal government materiel, special test equipment, special tooling, or facilities; also referred to as military property.

1.3. Bench Stock: Low cost, high usage, and non-sensitive consumable, materiel located in work areas for contract performance. Quantities of such stock shall not exceed that amount normally consumed in a 30 day period, or as established in the contractors approved property control system (normally used for broken units of issue).

1.4. Consumable Item: An item that may or may not be subject to repair that is consumed during the repair process. This includes stock listed and non-stock listed items which have an expendability, recoverability, and reparability category (ERRC) of P (XF3) or N (XB3). May also be referred to as expense or stock funded items.

1.5. CICA XML (eXtensible Markup Language): In the future, those commercial vendors having XML capability on their in-house systems will be able to transmit XML batch files via a DLA/DLMSO format known as

CICA XML.

1.6. Commercial Asset Visibility Air Force (CAV AF): A web-based Government off-the-shelf (GOTS) application developed by the Navy Supply Command (NAVSUP). CAV AF allows commercial contract repair facilities to report End Item repair and GFM transactions on a daily basis. CAV AF shall be the management control authority (MCA) for contract repair End Items and GFM located at contractor facilities. The connection between CAV AF and commercial facilities shall be via the internet.

1.7. Contractor Furnished Equipment (CFE): Equipment furnished by the contractor, title to which remains with the contractor.

1.8. Contractor Furnished Materiel (CFM): Materiel provided by the contractor, as a part of the maintenance service provided. All non-AF managed materiel with an expendability, recoverability, and reparability category (ERRC) code of ‘N’ or ‘P’ (also known as consumables) will be CFM. This materiel is incorporated into, or attached to, an end item to be delivered under the contract or may be consumed in the performance of a contract.

1.9. Contractor Furnished Property (CFP): Property other than government-furnished property (GFP) or government-furnished materiel (GFM) which is furnished and funded by the contractor per the terms of the contract, title to which remains with the contractor.

1.10. Expendability, Recoverability, and Reparability Category (ERRC) Code: The code assigned to an Air Force item which designates the extent of repair for the item.

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1.11. Facilities: Industrial property (other than materiel, tooling, agency-peculiar property, and test equipment) for production, maintenance research, development, or test, including real property and rights therein; buildings, structures, improvements and plant equipment.

1.12. Government-Furnished Equipment (GFE): An all-inclusive term to define all types of equipment defined in the FAR. It includes facilities, plant equipment, agency peculiar property, special tooling, and special test equipment. For the purpose of annually reporting dollar values on Department of Defense (DoD) property in the custody of contractors (DD Form 1662, DOD Property in the Custody of Contractors), items must be categorized according to the specific FAR property definitions.

1.13. Government-Furnished Materiel (GFM): Government property supplied to the contractor, for incorporation into an end item to be delivered under the contract or which may be consumed in the performance of the contract. It includes, but is not limited to, raw and processed materiel, parts, components, and assemblies. GFM is also referred to as materiels and direct materiels under the terms of the contract.

1.14. Government-Furnished Property (GFP): All property acquired using government funds and/or in the possession of the government which is subsequently delivered or otherwise made available to the contractor. GFP also includes GFE and GFM.

1.15. Hazardous Materiel: Any used or unused property, including scrap and waste, that is ignitable, corrosive, reactive, or toxic because of its quality, concentration, physical, chemical, or infectious characteristics. The property can be in a solid, liquid, semi-liquid, or contained gas form and may cause or significantly contribute to an increase in serious illness or mortality or pose a substantial threat or potential hazard to the environment when improperly treated, stored, transported, disposed of, or otherwise managed.

1.16. Hazardous Waste: Any used or unused hazardous materiel that has no known use and, therefore, must be discarded. This includes hazardous materiel not otherwise disposed of through plant clearance that the contractor has been authorized, by the plant clearance officer, to dispose of as hazardous waste.

1.17. Julian Date: A method used by the government to track days according to a system usually covering one year and referring the days to a numerical sequence of the calendar year. Example: Julian Date 6133. Number 6 refers to the year 2006, and 133 refers to the one hundred thirty-third day of the year, the thirteenth day of May, (May 13, 2006).

1.18. Local Manufacture (LM): The manufacture of items for the government using GFM and contracted labor.

1.19. Loan Control Officer (LCO): An individual at the prime stock number ALC who has the responsibility for the GFE assets loaned to a contractor, and validates the authorization and tracks the issuance and return of loaned assets.

1.20. Management Control Activity (MCA): DoD component designated activity or system that initially receives and controls requisitions for GFM supplied from the wholesale DoD supply system to support defense contracts or requirements.

1.21. Materiel Support Division (MSD) Items: Items that have an ERRC code of C (XD1) or T (XD2). These items are referred to as line replacement units (LRU) and shop replacement units (SRU) respectively.

1.22. Nuclear Weapon Related Materiel (NWRM): Classified or unclassified nuclear weapon system components whose purpose is to prearm, arm, launch or release nuclear weapon and require special controls to maintain and protect system integrity and security, as well as engineering and design information (e.g. guidance set, classified critical components, launch control, use control equipment).

1.23. Public Key Infrastructure (PKI): Allows for a unique and secure identification of users through the use of a certificate authority. The user identity must be unique for each certificate authority.

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1.24. Plant Clearance Officer: An individual authorized to act on behalf of the ACO on all plant clearance matters concerning the screening, reutilization, redistribution, and marketing of excess government property.

1.25. Procuring Contracting Officer (PCO): The person with the authority to enter into a contract on behalf of the government. The PCO will ordinarily be located at the funding ALC.

1.26. Production Management Specialist (PMS): An individual assigned by the contracting activity to act as liaison for production, supply, and transportation issues.

1.27. Property Control Procedures: A detailed written description of the contractor’s operation for the control, use, and care of property while in the contractor’s possession.

1.28. Property Administrator (PA): An individual authorized to act on behalf of the ACO on all matters concerning the management of government-owned property.

1.29. Property Records: Records that are construed to include all documents reflecting the status of government property.

1.30. Sensitive Property: Property for which the theft, loss, or misplacement could be potentially dangerous to the public safety or community security and which must be subject to exceptional physical security, control, and accountability. The following types of property should be designated as sensitive in the contractor’s property management system: weapons, ammunitions, explosives, narcotics, and dangerous drugs and, if authorized, classified materiel.

1.31. Special Tooling (ST): All jigs, dies, fixtures, molds, patterns, taps, gauges, other equipment, and manufacturing aids, and replacements thereof, which are of such a specialized nature that, without substantial modification or alteration, their use is limited to the development or production of particular supplies or parts thereof, or the performance of particular services. The term includes all components of such items but does not include consumable property, test equipment, or buildings, non-serviceable structures (except foundations and similar improvements necessary for the installation of special tooling), general or special machine tools, or similar capital items.

1.32. Special Test Equipment (STE): Electrical, electronic, hydraulic, pneumatic, mechanical, or other items or assemblies of equipment which are of such a specialized nature that, without modification or alteration, the use of such items (if they are to be used separately) or assemblies is limited to testing in the development or production of particular supplies or parts thereof, or in the performance of particular services. The term special test equipment includes all components of any assemblies of such equipment but does not include consumable property, special tooling, or buildings, non-serviceable structures, except foundations and similar improvements necessary for the installation of special test equipment), general or special machine tools, or similar capital items.

2. CONTRACT DESIGNATION: CFM

2.1 Current AF direction is to pursue performance based contracts using a CFM concept. This requires the contractor to provide all needed material as part of the cost of repair. This material is defined as material which is incorporated into an end item to be delivered under the contract or which may be consumed in the performance of the contract. Includes, but is not limited to, raw and processed material, parts, components and assemblies.

2.2. This contract has been designated as a CFM contract as indication on the cover of this appendix and as detailed in the basic contract. Under the terms of CFM, no material defined as GFM is to be provided to the contractor except line items on the contract which are subject to repair.

3. GOVERNMENT-FURNISHED PROPERTY:

3.1. Contractor requisition/procurement of GFP is limited to only the GFE NSN/Part Number and quantities authorized as listed on Attachment 1 to this Appendix B.

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3.2. For authorization of GFE on this contract, the PMS is to contact the ALC Loan Control Officer for government loan property authorization. The contractor shall comply with the GFE-related clauses in the basic contract. While the GFE is in the possession of the contractor, it is the contractor’s responsibility to provide routine maintenance and calibration of the GFE to ensure the GFE is returned to the government in the same condition as when provided, less normal wear and tear. GFE will not be requisitioned until it is actually required and will be turned in when no longer required.

3.3. Physical Inventory Control

3.3.1. Physical inventory control of all GFP and end items in the possession of the contractor must be performed IAW DoD 4000.25-1.M, DoD 4140.1-R and AFI 23-101, Air Force Materiel Management.

Physical inventory of all applicable GFP against CAV AF records must be conducted at least annually to verify accurate inventory balances. The inventory accuracy goal for all GFP with a unit price > $1000.00 is 99% and 95% for all other materiel IAW D0D 4000.25-M. It is highly recommended the inventory sampling be conducted throughout the year to ensure proper processing of inventory records is occurring.

3.3.2. The PMS will coordinate with DCMA to actively participate in a review of inventory records before processing inventory adjustments. Note: The contractor will not be given authority to process inventory adjustment (D8/D9) transactions in CAV AF.

4. CONTRACTOR PROPERTY CONTROL RECORDS:

4.1. The official property records are described in the FAR. The contractor shall establish a property control record for each line item. Property records shall be kept current at all times, and an audit trail shall be maintained from property acquisition to consumption in use or final disposition. Property accounting records, including debit and credit support documentation, are considered part of the official government contract records.

4.2. In addition to FAR requirements, the following data shall be maintained and provided by the contractor to the government contracting officer upon request to enable better requirements planning and stock control on future repairs:

(1) Name, description, and National Stock Number (NSN)

(2) Unique item ID or equivalent (if available and necessary for individual item tracking)

(3) Quantity received (or fabricated in house), issued, on hand, and on order

(4) Unit of Issue (each, feet, etc.)

(5) Unit price (from receipt document or stock list data)

(6) Contract or project number relating to contract

(7) Location

4.3. In addition to the above, a separate record of requisition numbers shall be maintained and shall include the NSN of the item requisitioned, the unit of issue, quantity, document number, and the date the item was received by the contractor. This record shall be kept current at all times. Other reports may be required in accordance with the FAR and the Contract Data Requirements List (CDRL), DD Form 1423.

4.4. The FAR describes the annual report, which gives the acquisition cost of all Government property in the contractor‘s possession. Details for completing this report are on the reverse side of DD Form 1662, DoD Property in the Custody of Contractors. This form is available from PA.

4.5. Property control record accuracy must represent actual physical inventory at all times in support of customer requirements and readiness. Security coded items, such as; classified, sensitive or pilferable will adhere to required periodic regulator inspections.

4.6. Contractors shall follow all Nuclear Weapon Related Material (NWRM) management requirements outlined in AFI 20-110, NWRM Management to include but not limited to packaging, marking, labeling, storage, transportation and receipt of all NWRM assets, with emphasis on positive inventory control (PIC) and records management by the

6 of 9 419 SCMS/GUBA contractor and government to assure compliance. The semiannual inventory takes precedence over other mission support activities.

5. PRODUCTION PROBLEMS:

5.1. The contractor shall report all potential supply support deficiencies that could cause a production slippage or work stoppage to the ACO, PCO, and PMS at the managing ALC. If problems are not resolved, the contractor shall follow up with a written request/report of potential problems and impact to the ACO, PCO and PMS.

6. DISPOSITION OF GOVERNMENT PROPERTY:

6.1. These instructions apply to all government owned property, or property procured with government funds, which is determined to be excess by the contracting ALC for the fulfillment of this contract.

6.2. If a follow-on contract is being awarded or, is in the negotiation or solicitation stage, the existing GFP may be retained to the extent required to support the current contract and the follow-on contract.

6.2.1. Within 90-days prior to contract expiration, the contractor shall submit a letter to the managing ALC requesting retention and transfer of GFM to the follow-on contract. The letter must contain the following information: noun, NSN, part number, ERRC code, dollar value, condition code, and quantity on hand.

6.3. Package and Shipment of Items:

6.3.1. Items still in their original package shall be shipped as is.

6.3.2. All remaining items shall be packaged Level A and shipped Level C military in accordance with the latest version of MIL-STD 2073-1

6.3.3. The contractor may use commercial packaging if equal to or better than MIL-STD 794, Parts and Equipment, Procedures for Packaging and Packing.

6.3.4. The contractor should refer to the basic contract for additional packaging and transportation requirements.

7. DISCREPANCIES INCIDENT TO SHIPMENT:

7.1. There are transportation and item discrepancies, each having different reporting requirements. Detailed information for each report is in the pertinent service publications.

7.2. Discrepancies incident to shipment include misidentified items, variations in quantity, non-requisitioned items, lost or damaged parcel post, and items in dubious condition. These discrepancies shall be reported and resolved using the DoD web-based application WebSDR link is https://www2.transactionservices.dla.mil/websdr/home.asp .

This system of reporting a Supply Discrepancy Report (SDR), formerly called Report of Discrepancy (ROD), has been developed in compliance with DoD regulations 4140.1-R and 4000.25-M Volume 2, which requires automated SDR processing. In those situations where the SDR initiator is unable to gain access to the AF WebSDR, continued use of manual forms is permitted. A copy of the form will be forwarded through the CAO and Quality Assurance (QA) activity for corrective action.

7.3. Transportation discrepancies and item transaction discrepancies shall be coordinated with the DCMA Property Administrator and ACO immediately upon discovery for corrective action in addition to AF WebSDR submittal.

7.4. Contract line items received with missing components (Missing On Induction, (MOI)) the contractor shall process a SDR (SF Form 364) immediately upon discovery in accordance with AFJMAN 23-215 and provide a copy of submitted MOI SDR form to the ACO within 2-days of discovery.

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8. DISPOSITION OF CONDEMNED GOVERNMENT PROPERTY:

8.1. The contractor shall submit a list of condemned Special Tooling (ST)/Special Test Equipment (STE) (ERRC S & U) to the contracting ALC PCO and PMS. The listing shall identify the condemned items by NSN, PN, noun and quantity; and shall be submitted together with a letter of transmittal titled Request for Disposition of ST/STE condemned on Contract Number ________________ . Disposition instructions will be provided by the contract managing ALC.

9. CONTRACTOR REPORTING:

9.1. The contractor shall comply with DD Form 1423-1, Contract Data Requirements List (DI-MGMT-81634B) and Attachment 4 herein, entitled 'CAV AF Transaction Reporting Statement of Work.' Reporting shall be via the internet using online web access.

10. VISITS:

10.1. Surveillance visits will be made by the ACO and/or the contracting ALC representatives when such visits are considered necessary, particularly in relation to contract materiel control and production schedules.

11. OTHER:

11.1. The contractor shall not obtain GFP through the utilization of requisition codes assigned exclusively to this contract for any other contracts.

11.2. The contractor shall not transfer GFP charged to this contract to any other contract, contractor, or activity without the advance approval of the PMS through the PCO.

11.3. The government reserves the right to withdraw any GFP in possession of the contractor to supply other urgent USAF requirement. If any item so removed by the government is still required to complete the contract, the contractor shall take appropriate action to replace the removed item.

11.4. When, during the last six months of the contract, it becomes evident that an option shall most probably be exercised, the PCO will notify the contractor through the ACO to maintain stock levels necessary to meet the option workload.

12. REFERENCES:

12.1. Federal Acquisition Regulation (FAR).

12.2. Defense Federal Acquisition Regulation Supplement (DFARS).

12.3. Commercial Asset Visibility (CAV AF), version 7.2 or higher User Manual.

12.4. AFJMAN 23-215, Reporting of Supply Discrepancies.

12.5. AFI 23-101, Air Force Materiel Management.

12.6. FED LOG CD ROM, Fed Log is the logistics information system published by the Defense Logistics Information Service and available by subscription. The Fed Log web site is: http://www.dlis.dla.mil/Fedlog/

12.7. DoD 4000.25-1-M, Military Standard Requisitioning and Issue Procedures (MILSTRIP)

12.8. DLA Customer Assistance Handbook.

12.9. DODI 8520.2, PKI and Public Key (PK) Enabling.

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12.10. AFGM 20-1, Air Force Guidance Memorandum on NWRM Management (will be replaced by AFI 20-110 currently in coordination)

12.11. AFH 23-123V2PT1, ILS-S, Materiel Management Operations.

12.12. Other DoD and military service directives; if specifically referenced in the contract, special clauses or appendices.

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ATTACHMENT 1

GOVERNMENT FURNISHED EQUIPMENT

Special Test Equipment

Asset Number Noun Quantity J0603922 B1B Asymmetry Brake Sensor Test Stand 1 each