Attachment 0016 - PWS 16 - AMMUNITION MATERIEL MANAGEMENT.docx

Radford Army Ammunition Plant (RFAAP)

PWS 16 - Ammunition Materiel Management

1.1 The contractor for Radford Army Ammunition Plant (AAP) shall utilize this Statement of Work (SOW) for all Single Manager for Conventional Ammunition (SMCA) managed materiel recorded or reported by the contractor utilizing the contractor's automated system. All transactions required, shall be transmitted electronically to HQ, JMC, in the prescribed format. Any new system shall comply with American National Standards Institute (ANSI) Accredited Standards Committee (ASC) X12 standards. The contractor at Radford AAP shall manage and maintain custodial documentation for the accountability and visibility of materiel received, stored, and issued; and shall reconcile inventory records In Accordance With (IAW) specific guidance provided in this SOW. The contractor shall be responsible for the security and surveillance of materiel while in storage together with the maintenance of records and furnishing of reports as prescribed by the contracting officer, and the provisions of this SOW. The Administrative Contracting Officer (ACO) shall ensure that the provision of this contract SOW shall be properly implemented and executed by the contractor within available funding. The scope of this SOW extends from the receipt of materiel through off- plant shipment. This SOW has multiple proponents. This SOW does not relieve the contractor of complying with Federal Acquisition Regulation (FAR) Part 45.5, with an approved property control system, and FAR Part 45.6.

2.1 Applicable Documents:

· 49 CODE OF FEDERAL REGULATIONS AND BUREAU OF EXPLOSIVES BOE 6000

· US Army Materiel Command Regulation (AMC-R) 740-27 Ammunition Inventory and Accountability

· AMC-R 740-25 Ammunition Stock Location System

· Army Regulation (AR) 25-400-2 Army Records Information Management System AR 725-50 Requisition, Receipt, and Issue System

· AR 735-5 Policies and Procedures for Property Accountability

· Defense Logistics Manual (DLM) 4000.25 Defense Logistics Management Standards (DLMS) AR 740-1 Storage and Supply Activity Operations

· AR 740-26 Physical Inventory Control

· Department of the Army Pamphlet (DA PAM) 385-64 Ammunition and Explosives Safety Standards

· Department of Defense (DOD) 4000.25-1-M Military Standard Requisitioning and Issue Procedures (MILSTRP)

· DOD 4000.25-2-M Military Standard Transaction Reporting and Accounting (MILSTRAP) DOD 4000.25-5-M Military Standard Contract Administration Procedures (MILSCAP) DOD 4500.9-R Defense Transportation Regulation (DTR)

· DOD 4140.65 Issue, Use, and Disposal of Wood Packaging Material (WPM)

· DOD 4145.26M Department of Defense Contractors Safety Manual for Ammunition and Explosives US Army Joint Munitions Command Regulation (JMC-R) 702-2 Ammunition Surveillance Procedure for JMC Organizations

· DA Pam 742-1 Inspection of Supplies and Equipment Ammunition Surveillance Procedures

· MIL-STD129 most current revision, Military Marking for shipment and Storage

· Technical Bulletin (TB) 9-1300-385 Munitions Restricted or Suspended

· Technical Manual (TM) 38-250 Preparing Hazardous Materials for Military Air (Air Force Manual (AFJMAN) 24-204) Shipments.

· TM 38-400 Storage and Materials Handling

· DA PAM 75-5 List of Storage and Out-loading Drawings for Ammunition

· U.S. AMC Drawing Index of U.S. Army Unitization, Storage and Out-loading

· U.S. AMC 19-48-75-5 Drawings for Ammunition and Components

2.2.1. Accountable Supply Distribution Activity (ASDA): An activity that maintains a centralized formal stock record for the receipt, storage, and issue of commodity stocks at remote storage locations and receives requisitions from customers. Routing Identifier Code (RIC) B14, which is the RIC for HQ JMC, is the ASDA for SMCA managed stocks.

2.2.2. Army PA Funded Account: The inventory account established for the purpose of accounting for Government furnished materiel for Procurement of Ammunition, Army (PAA) programs.

2.2.3. Care, Maintenance, and Surveillance (CMS)

2.2.3.1. Care - Actions and preventive measures required ensuring physical protection to stored materiel. Includes, but not limited to, security protection to include locks, seals, and alarms. Provides fire protection to stored items including alarms, fire extinguishers, sprinkler systems, and vegetation control.

2.2.3.2. Maintenance - Preventative measures and minor repairs to stored items required to maintain the condition of stored items, including maintenance required to alleviate a safety or hazardous condition.

2.2.3.3. Surveillance - Provides for inspections required to assure the integrity and safety of SMCA managed materiel and any inspections required to accomplish shipments. Includes, but not limited to, safety in storage inspections, magazine and area inspections, and periodic inspections.

2.2.5. Custodial Record: The centralized formal stock records maintained by the contractor, IAW AR 25-400-2.

2.2.6. Direct Deliveries: Shipments, whether in place or offsite, directed in the contract, which do not require a Sales Order (SO) from HQ, JMC.

2.2.7. Field Service Account: The HQ, JMC, centrally controlled account used to manage finished product or components owned by an individual service.

2.2.8. Field Service Stocks: Conventional ammunition completed rounds or components, which have been accepted into the FSA. This includes components of rounds that are programmed for renovation projects controlled by the SMCA.

2.2.9. SMCA managed materiel: Field Service stocks and Industrial Stocks.

2.2.10. Industrial Stocks: Government owned components, parts, assemblies, raw material, explosives, chemicals, packing material, and any other materiel on hand that is to be consumed as a component of the end product. Also included are components to support engineering, lot acceptance, calibration, and surveillance testing. This materiel may be wholesale materiel centrally managed by the NICP, or government furnished materiel in the PAA account obligated to a specific production contract at the installation.

2.2.11. Materiel Handling Equipment (MHE): Mechanical devices for handling of supplies with greater ease and economy. Examples: Forklift trucks, roller conveyor, straddle truck.

2.2.12. Packing, Crating and Handling (PC&H): Handling associated with internal movement or shipping of SMCA managed materiel, to include the unpacking and repacking of surveillance samples. This does include costs associated with inspections related to out shipments, inspection of railcars and vehicles for compliance with explosive safety and Department of Transportation (DOT) requirements and review of shipping documentation.

2.2.13. PAA Assets: Centrally procured industrial stocks maintained on the accountable records which are to be used in Load, Assemble, and Pack (LAP) of programs PAA funded.

2.2.14. Work in process (WIP): Materiel, to include Government Furnished Materiel/Industrial Stocks and plant procured (i.e. Contractor furnished materiel) to be consumed in the production of the contracted end item.

2.3. Acronyms:

AAP Army Ammunition Plant

3. Requirements

a. Management of SMCA managed materiel: The contractor shall manage and maintain custodial documentation for the movement and storage of all SMCA managed materiel received, stored, and issued, and shall reconcile inventory records.

b. Care, Maintenance, and Surveillance (CMS) of Industrial Stocks to support production orders shall be charged to each delivery order, task order, option qty.

d. Any GFM/industrial stocks that require long term storage shall receive approval from the contracting officer before storing in the Army PA funded account (AH_).

4. Receipt Actions:

a. The contractor shall place Single Manager for Conventional Ammunition (SMCA) managed materiel received into storage and complete documentation related to those functions in accordance with (IAW) US Army Materiel Command Regulation 740-27, AR735-5, chapter 6, and within the designated Army Regulation (AR) 725-50, chapter 5, table 5.1. timeframes. The contractor shall provide the ASDA with the DD Form 1348 or equivalent when receiving material from off installation. The contractor shall provide DD250 and DD Form 1348 for receipt of items produced by the contractor and accepted by the government. See Policy for Installation Produced Ammunition Inbound Receipt and Component Consumption. All documentation shall be submitted electronically to usarmy.RIA.jmc.mbx.inventory@mail.mil.

b. The electronic Supply Discrepancy Report (SDR) or a Standard Form (SF) 364, Report of Discrepancy (ROD), shall be prepared IAW DID DI-MGMT-80503 CDRL 159, AR 735-11-2, after a deficiency is categorized as a supply discrepancy IAW AR 735-5, chapter 16, Section III.

c. End items produced on Procurement of Ammunition, Army (PAA) fixed price orders, which are awaiting ballistic acceptance, are not the property of the Government, and therefore, they shall not be receipted in or posted to the accountable record.

d. All industrial stocks/GFM for PA funded programs tied to a funded project or production order shall be picked up to the local custodial record upon receipt. If DODAAC is not available on shipping information, please contact the contracting officer for further guidance.

e. Storage costs for Industrial stocks that are produced and awaiting government shipping instructions shall be charged to each delivery order.

5. Storage:

a. Asset Storage: Ammunition components, end items, and explosives received shall be stored in accordance with approved US Army Materiel Command (AMC) and Department of Defense (DOD) drawings (AMC Drawing 19-48-75-5 and Department of the Army Pamphlet 75-5, , Explosives - List of Storage and Outloading Drawings for Ammunition), and Department of the Army Pamphlet 385-64, Safety - Ammunition and Explosives Safety Standards, using all current updates to these drawings/pamphlets.

a. Storage Planning and Management: The storage planning activity shall approve all on-post receipts locations using Reports of Shipment or an equivalent advance shipment notification document and any subsequent location changes to the item's initial storage location in accordance with (IAW) US Army Materiel Command Regulation (AMC-R) 740-25, Storage and Supply Activities - Ammunition Stock Location System, using all current updates/revisions.

c. Storage Location Changes: IAW AMC-R 740-25, the storage planning activity shall provide approval before on-post location changes are accomplished. DA Form 4508 (Ammunition Transfer Record) or an equivalent document shall document and control on-post location changes. A central control register shall be maintained for tracking each Ammunition Transfer Records or equivalent materiel movement document processed. A minimum acceptable accuracy level, 98 percent, shall be maintained for storage location records.

d. Magazine Data Card (MDC): IAW AMC-R 740-25, AMC Form 1385 (Magazine Data Card) shall be prepared and placed on ammunition stacks at the grid locations. The Magazine Data Card shall be present and accurate for current quantity and grid location.

e. Storage Practices: Storage locations, to the maximum extent possible, shall be free of debris in accordance with DA PAM 385-64. Good housekeeping concepts (pest control, sweeping out of dirt, removal of trash, etc.) shall be used in storage locations. Loose components of ammunition, packing materials, conveyors, forklifts, skids, dunnage, empty boxes, and other similar material shall not be stored in a magazine containing ammunition or explosives.

f. Storage capacity/space use: The contractor shall implement and execute a system that accurately and completely identifies Gross Square Feet (GSF), Net Square Feet (NSF) available for storage, occupied NSF available for storage, vacant NSF available for storage, and occupancy level, monthly IAW AR 740-1. Monthly reports shall be available upon request and for Command Assessments or Supply Depot Operations Assessments. The contractor shall provide an annual report of Government owned stock in storage which is not assigned to a production, demilitarization, or maintenance, program and has not shown usage in three (3) years IAW DID DI-MGMT-80441 CDRL A380.

g. Storage facility maintenance and repair expenses estimated to exceed a total project cost of $3,000 requires prior review and approval of the ACO. Project is defined as an individual storage site.

6. Inventory Actions:

a. Inventory Process: The contractor shall be responsible for a 100 percent physical inventory and reconciliation of all assets for which HQ JMC is accountable. A complete scheduled inventory shall be conducted not less than once each Fiscal Year (FY) IAW AMC-R 740-27 and DID DI-MGMT- 80441 (CDRL 157) with results of the physical inventory and updated lot level asset posture report reported to the Accountable Property Officer (ACTPO), HQ JMC, submitted electronically to usarmy.RIA.jmc.mbx.inventory@mail.mil and installation local government staff for all stocks under ASDA purview. The contractor shall certify completion to local government staff. All Category (CAT) I items shall be inventoried semi-annually.

b. The contractor shall process requests for inventories in an established sequence, provide in- float controls (process no receipt or issue transactions) over items placed under inventory control, consider receipt and issue in-float transactions during count analysis, produce additional counts for mismatched records, and provide statistical data to assist in research and compilation of automated inventory reports IAW AMC-R 740-27.

c. Requests for special inventories may be generated by the ACTPO.

d. The contractor shall prepare and submit for approval a DA Form 444, Inventory Adjustment Report, or DD Form 200, Financial Liability Investigation of Property Loss, IAW AR 735-5, Chapter 13, as appropriate for both physical inventory and floor-to-book reconciliation adjustments.

e. The custodial record and all supporting documentation shall be retained for 6 years and 3 months and is the responsibility of the contractor. The custodial record shall include a complete list of all transactions by owner, lot number and condition code with a running balance. Each account (FSA and PAA) shall be maintained separately on the custodial record.

f. The contractor shall provide read and download access to the custodial database to the ACTPO and other designated government personnel.

g. Reconciliation: The custodial record shall be reconciled to the physical inventory counts to include lot, owner, NSN, condition code and quantity. Once the custodial record has been reconciled to the physical count, those balances shall then be forwarded to the HQ, JMC utilizing the existing process/procedure(s). Any receipt and issue transactions, if pending at the time of inventory, shall be forwarded utilizing the existing process/procedure(s).

h. The contractor shall provide support as required to include lot number data access to reconcile the accountable and the custodial record balances.

i. If the ASDA cannot resolve the quantity discrepancy, the ASDA shall request further research by the AAP to determine the cause of the mismatch. The AAP shall retain all supporting documents, to include but are not limited to transactions, count sheets, Ammunition Transfer Records, etc., for a period of six (6) years (3) months.

j. Investigations: The contractor shall respond to any Requests for Investigation within 90 calendar days of request IAW DID DI-MGMT-80441 (CDRL 158) and AR 735-5.

k. Adjustment Process: The contractor shall process adjustments through the contractor's automated system on their custodial record to reflect changes in condition of materiel, re- identification, and gains or losses of materiel. Physical loss and gain shall be immediately reported to the HQ JMC ACTPO for all stocks under ASDA purview. This process transfers stock between owners as directed by HQ JMC, as a result of logistical reassignment and ammunition single manager paybacks. Ammunition adjustments shall be processed by lot and location, and shall be reported to HQ, JMC ACTPO, at the NSN, ownership, condition code, and lot level IAW DID DI- MGMT-80389B (CDRL 154).

l. The contractor shall provide inventory management activities such as receipts, gains/losses, condition code changes, ownership changes, and asset postures to include lot number, using the HQ JMC prescribed format to the ASDA designated POC. Asset postures shall be sent to HQ, JMC quarterly by the last working day of each quarter (1st Q December, 2nd Q March, 3rd Q July, 4th Q September).

m. Quality Control Checks: Contractor personnel shall document and conduct a Quality Control Check program for the purpose of stock control and inventory accounting processes IAW AMC-R 740-27, chapter 4.

n. To support future financial audits and any testing performed to successfully pass audits all ammunition activities will be required to support the Army with possible audit visits and monthly testing in order to support future audit readiness. This will be performed by multiple agencies before, during, and after the Army’s future financial audit. Contractor will be required to support/perform data sampling.

o. Cost for demilitarization or disposal of excess GFM for PA funded programs shall be charged to the production order. No material shall be placed into the B5A (Demil Account) at RFAAP.

7. Issue Actions:

a. The contractor shall be responsible for shipping of materiel, ownership changes, and the documentation related to that function IAW AR 735-5 and AR 725-50. The contractor shall plan for shipment of materiel to include lot selection and obligation IAW the Uniform Materiel Movement and Issue Priority System Time Standards (UMMIPS) response times, AR 725-50. The contractor shall provide the MILSTRIP or MILSTRAP to the ASDA related to shipment of materiel IAW DID DI-MGMT 80389B CDRL 153, DID DI-MGMT 80389B CDRL 161, DID DI-MGMT 80389B CDRL 162, and DID DI-MGMT- 80389B CDRL 461.

b. The contractor shall prepare material for shipping to include: packing, crating, marking (including Two Dimensional (2D) barcodes), stowage, and weight limitation of shipments to conform to Department of Transportation (DOT) laws, Department of Defense (DOD) regulations, International Maritime Dangerous Goods (IMDG) code, and AFJMAN 24-204/Technical Manual 38-250, Preparing Hazardous Materiel for Military Air Shipments. The contractor shall withdraw, verify material from storage, consolidate materiel into the optimum number of handling units, ensure materiel is properly marked and is safe to ship; IAW AMC and DOD approved drawings and Military Standards 129P (MIL-STD-129P) with change 4, 19 Sep 07. Charges for Packaging, Crating, and Handling (PC&H) to ship finished ammunition previously shipped to the Field Service shall be charged to bulk Operations and Maintenance, Army (OMA) funds.

c. Shipment of PAA direct deliveries off fixed price contracts including direct shipments to the Field Service Account shall be IAW instructions provided in its respective production contract without receiving a Sales Order. Cost associated with PC&H for direct shipments of finished ammunition shall be paid by the production order. There shall be no PC&H cost associated with direct shipments (transfers) to the Field Service Account.

d. Charges for PC&H and transportation to ship Government owned materiel stored in the PA funded account shall be funded separately by HQ JMC IAW the negotiated PC&H price matrix. Any shipment of these assets requires a SO initiated by HQ, JMC. Under the PAA method of procuring ammunition, the PC&H and transportation funding for shipment of existing stock shall be provided from the benefiting program/order.

8. Surveillance Actions:

a. The contractor shall perform surveillance of ammunition and explosive material IAW the most recent version DA PAM 742-1, as supplemented by JMCR 702-2, and current Ammunition Information Notices published by HQ, JMC Surveillance Division, and DOD 4145.26-M.

b. When a new AIN or revision to the referenced regulations places additional requirements on the contractor, the contractor shall submit a pricing proposal to the PCO and ACO reflecting the additional requirements. The PCO shall provide funds through a contract modification before the contractor complies with the change to the AIN or Regulation.

c. The assigned government Quality Assurance Specialist, Ammunition Surveillance (QASAS) serves as the focal point on matters pertaining to ammunition surveillance within the scope of the specified references. The QASAS shall furnish guidance to the contractor on ammunition surveillance, consistent with the specified references, as required.

All bulk propellants, bulk-packed propellant components and propelling charges, regardless of ownership, shall be checked for adequate stabilizer, and stocks of propellant on hand shall be documented/reported IAW the Propellant Stability Program procedures outlined in chapter 9, DA PAM 742-1. All stocks of bulk propellant, bulk-packed propellant components, and complete propelling charges in storage at the installation, shall be reported each March DI-MISC-80193 CDRL 379 to the surveillance office at JMC. The reporting requirements are found at Chapter 9, DA PAM 742-1. The following information is required: National Stock Number (NSN)/ Department of Defense Identification Code (DODIC) or Part Number; Propellant Lot Number; Quantity; Stability Category; and Date of Last Stability Test.

d. The reporting requirement above includes contractor/3rd party owned bulk propellant, bulk- packed propellant components, and complete propelling charges in storage at the installation. The reporting requirement is necessary to protect the government facility and employees from the disastrous effects of unstable propellant inside Government owned facilities that are in a configuration capable of auto ignition. All charges associated with this requirement to include costs associated with required stability testing shall be borne by the owning contractor.

e. Materiel assigned to National Inventory Control Point (NICP) accounts shall be inspected IAW specific instructions and at intervals prescribed in DA PAM 742-1. Unless there are instructions to the contrary, an Initial Receipt Inspection (IRI) shall not be performed on newly manufactured materiel from this AAP, which was inspected and accepted by a Government Quality Assurance Representative (QAR.)

f. Depot Surveillance Records (DSRs) are not required for new materiel in the industrial account, provided no significant events necessitating a DSR entry (such as suspensions, restrictions, releases, special inspections or conditions code changes) occur. DSR’s prepared for such unusual events or for local use shall be prepared in the Munitions History Program (MHP).

9. Transportation Actions:

a. The contractor shall comply with Defense Transportation Regulation DOD4500.9-R, and DOD 5100.76-M Physical Security of Conventional Arms, Ammunition and Explosives, Department of Transportation (DOT) regulations(49 CFR), and other related governmental directives. Use the Global Freight Management/Electronic Transportation Acquisition (ETA) system and the Cargo Movement Operations System (once system is deployed) to prepare carrier routing requests and outbound documentation to include the Bill of Lading.

Coordinate for the timely receipt of inbound shipments to ensure no Detention charges can be applied and if required IAW Chapter 210 of the DTR Prepare Transportation Discrepancy Reports (CDRL A177).

b. The contractor shall prepare materiel for shipping to include packing, crating, marking, stowage, and weight limitation of shipments to conform to DOT laws. The contractor shall withdraw, verify materiel from storage, consolidate materiel into the optimum number of handling units, ensure materiel is properly marked and is safe to ship IAW AMC and DOD approved drawings. When a delivery order has one Transportation Control Number (TCN) per item number with different delivery dates, a suffix can be used in the 15th position to track deliveries. Schedule, coordinate, and ensure carrier equipment is positioned timely for loading (out-loading), including carriers equipment and drivers identification/company affiliation authentication so as to avoid additional charges. The contractor shall develop and maintain automated shipping history data related to all shipments of materiel. Document and report carrier shipment refusals, late deliveries, and supplying proper equipment, etc; IAW DOD 4500.9-R Part II Chapter 7 Carrier Performance.

c. The Installation Transportation Officer (ITO) or designated representative has the authority to specify the mode or method of transportation which may occur during emergency, surge, or mobilization periods or directed by higher headquarters. Secure holding shall be granted to motor shipments for temporary holding of Hazard Class Division 1.1 through 1.4 or Security Risk Category (SRC) I through IV material. The contractor is obligated to provide secure hold predicated on how many truck shipments can be secured with personnel currently on staff. Contractor shall ensure shipping coordinator maintains Hazardous material certification necessary to certify Government shipments of hazardous material by all modes of transportation. Maintain hazardous material training Records as required by 49 CFR, and DOD 4500.9-R. Have available a qualified and appointed individual who can certify outbound shipments and conduct vehicle inspections DD Form 626 criteria.

d. Wood Packaging Material (WPM). Shipments of field service stock shall comply with contract WPM clause IAW DoD Manual 4140.65, dated August 2012, or latest revision.

PERIOD OF PERFORMANCE: The period of performance for PWS 16 is as follows: