Attachment 2 - Statement of Work 70Z03824QB0000001.pdf

DYNAMIC COMPONENTS REPAIR

STATEMENT OF WORK

70Z03825QB0000013

Attachment 2

1.0 BACKGROUND

The United States Coast Guard (USCG) currently operates a fleet of approximately ninety (90)

MH-65 helicopters. The MH-65 helicopter is primarily a short range recovery aircraft used by the USCG to perform search and rescue, law enforcements, and homeland security missions.

The USCG missions require frequent operation at lower altitudes and in a salt-laden environment. This environment accelerates corrosion on airframe structures, engines, and components of the aircraft.

2.0 SCOPE

This requirement is for the repair and/or modification of Dynamic Components used on the MH-

65 aircraft. Work shall be performed using the Original Equipment Manufacturer (OEM)

Maintenance Repair Overhaul (MRO) Component Maintenance Manuals (CMMs), and in accordance with (IAW) this Statement of Work (SOW). The OEM for this aircraft is Airbus

Helicopters France, (Cage Code F0210).

The Contractor shall provide all necessary parts, materials, labor, tooling, test equipment, and facilities to evaluate and repair the components listed in the Schedule of Services/Supplies. The

Contractor shall provide technical support services, support product improvement efforts, and provide updates to the OEM MRO CMMs and Technical Orders (as required). Work under this contract shall be performed at the Contractor’s facility.

3.0 APPLICABLE DOCUMENTS

3.1 Government Documents

• Asset Computerized Maintenance System (ACMS) Significant Component History Record

(SCHR) (If applicable)

• ACMS Configuration Report (CFG) (If applicable)

• Maintenance Due List (MDL) (If applicable)

• MH-65 Variable Maintenance Listing and Interval Adjustments, DMPC D00VM.0 (If applicable)

• Airworthiness Approval Tag, Federal Aviation Administration (FAA) Form 8130-3 (If applicable)

• European Unions Authorized Release Certificate of Airworthiness, EASA Form 1 (If applicable)

• Certificate of Conformance (COC) (If applicable)

• F-SUP-05-045 B, Repair Design Approval Sheet, RDAS (If applicable)

• Unserviceable (repairable) Tag (Blue) – DD FORM 1577-2 (If applicable)

• Unserviceable (repairable) Tag (Green) – DD FORM 1577-2 (If applicable)

• Serviceable Tag material (Yellow) – DD FORM 1574 (If applicable)

• Unserviceable (Condemned) Tab Material (Red) – DD FORM 1577 (If applicable)

• Component Repair Record (CRR) (If applicable)

• Unsatisfactory Report Tag (Blue and Red) DOT ORM CG-1577-A (11.90)

3.1.1 Corrosion Control

Corrosion removal and treatment of affected areas shall be accomplished in accordance with

(IAW) the OEM’s MRO CMMs.

3.1.2 Chemical Agents

Guidance for Selecting Chemical Agents and Processes for De-painting and General Cleaning of

Aircraft and Aviation Products shall be accomplished IAW the OEM’s MRO CMMs.

3.2 Industry Documents

Occupational Safety and Health Standards 1910.1025 (Lead), 1910.1026 (Hexavalent

Chromium), and 1910.1027 (Cadmium).

3.2.1 OEM MRO CMM

OEM MRO CMMs, and other applicable technical specifications for the components set forth in the Schedule of Services/Supplies.

3.2.1.1 OEM Documents

Industry documents are not available from the USCG and shall be obtained from the OEM.

3.2.1.2 Order of Precedence

In the event of a conflict between the text of this document and the references cited herein, the text of this document takes precedence. Nothing in this document supersedes applicable U. S.

Federal, State, or local laws and regulations, unless a specific exemption has been obtained. In addition, the information contained in this SOW is not intended to be all-inclusive nor detract from the procedures outlined in the manufacturer’s specifications except where specifically noted herein.

4.0 CONTRACTOR REQUIREMENTS

4.1 FAA/EASA Part 145 and OEM Approved Repair Facility

The Contractor shall be either a (1) FAA Part 145 Certified Repair Facility or (2) equivalent

European Aviation Safety Agency (EASA) Part 145 Certified Repair Facility in addition to being an OEM Approved Repair Facility for the Dynamic Components listed in the Schedule of

Services/Supplies. Contractor must provide:

• Proof of Staff Qualification Certificates from mechanics, which are qualified by Airbus

Helicopter, via training- Available upon request.

• AIRBUS Training Report(s) – Available upon request.

Components repaired or overhauled and delivered to the Government shall be certified airworthy and ready for installation on a USCG aircraft. Contractor must provide proof of an established supply chain with the OEM for those parts required to be purchased through the OEM AND proof of enrollment in OEM technical publication subscription and compliance with tech publication audit requirements, if any, as set forth by the OEM with their quotation.

4.1.1 Certifications

Contractor shall provide copies of all certifications (e.g. FAA Part 145 Repair Station Certificate, or EASA Part 145 certificate equivalent, and Airbus Helicopter, France MRO certification or letter). The Contractor shall maintain the required certifications throughout the life of the contract. The Contractor shall notify the Contracting Officer (KO) in writing, within five (5) working days following the receipt of component(s), when the Contractor has a change in their certification status and shall disclose all facts relevant to the change.

4.2 Subcontractor Qualifications

Subcontracting shall be limited to Contractors with FAA Part 145, or EASA Part 145 repair certification, and approval as an authorized repair facility by the OEM. Documentation shall be provided to the Government upon request to support the subcontractor’s qualification/ certifications and the Contractor shall inform the Government of any subcontractors to be used.

Contractors and subcontractors shall have access to only new OEM authorized replacement parts.

4.3 Labor Rate

The labor rate provided in the Schedule of Supplies/Services for the base period and each option period shall be the rate used to incorporate unusual damage, technical support, service bulletins, and/or an engineering change. It shall be fully burdened with all overhead, general and administrative (G&A) expenses and profit.

5.0 REPAIR

5.1 General Repair

The following Dynamic Components shall be repaired and/or modified IAW the OEM’s most current MRO CMMs and shall also include repair and/or replacement of all related components.

The level of maintenance (repair and/or modification) for each part shall be determined by the applicable OEM MRO CMM. Components shall be repaired and/or modified for the specific fault for which they were returned. A DD Form 1577-2/1577-3, Unserviceable (Repairable) Tag

Material, or CG-1577-A (11-90), Unsatisfactory Report Tag, shall be attached to each non-

Ready for Issue (RFI) item describing the faults. The Contractor shall perform an inspection and correct deficiencies found. This shall include, but is no limited to, replacement of missing or broken parts and the removal of any foreign matter or corrosion.

NOMENCLATURE NATIONAL STOCK

NUMBER (NSN)

PART NUMBER (P/N)

Gimbal Ring 3020-14-541-8660

Alternate: 3020-14-515-6588

365A32-7114-01

Alternate: 365A32-7114-00

Half Gimbal Flange

3010-14-480-3992 365A32-7112-00

Half Gimbal Flange

3010-14-507-1767 365A32-7110-00

Oil Pump Cover 1615-14-390-1442 366A32-1131-01

Modified to:1615-01-HS2-1476 Modified to: 366A32-1131-02

Pump Body 1615-14-464-0914

Modified to: 1615-14-390-1443

366A32-1133-01

Modified to: 366A32-1133-02

Bearing Seat 3130-01-HS1-4605

Alternate: 3130-01-HS1-7837

360A32-3162-03

Alternate: 360A32-3162-04

Driver AD Scissors

1615-14-374-7281 365A31-1171-00

Input Flange

5340-14-533-1470 365A32-5427-22

Splined Flange

3020-14-560-9073 365A33-3523-00

Lever, Remote

Control

1680-14-387-9465 365A31-1998-02

If the repair of a component or component assembly exceeds the limit detailed in the OEM MRO

CMMs but is acceptable or repairable by Airbus Helicopter Design Office (AHDO) approvals via Repair Design Authorization Sheet (RDAS), the OEM or Contractor’s proposed detailed repair plan presented to AHDO and the approved RDAS from AHDO must be delivered to the

USCG for historical archiving of the component or assembly. All approved repairs via AHDO by

RDAS shall become the property of the USCG for future evaluations and like repair plan presentations to AHDO. Repeatable RDAS repairs shall be considered for revision with OEM

MRO CMMs.

5.2 Modifications

Components shall be modified in accordance with the OEM’s most current MRO CMMs.

CLINS 0004, 1004, 2004, 3004, 4004; Oil Pump Cover shall be modified from National Stock

Number (NSN) 1615-14-390-1442, Part Number (P/N) 366A32-1131-01 to NSN 1615-01-HS2-

1476, P/N 366A32-1131-02. CLINS 0005, 1005, 2005, 3005, 4005, Pump Body shall be modified from NSN 1650-14-464-0914, P/N 366A32-1133-01 to NSN 1650-14-390-1443, P/N

366A32-1133-02.

5.3 Failure Date Report

The Contractor shall submit a failure data report for each repaired and/or modified component.

This report shall include National Stock Number (NSN), Part Number (P/N), Serial Number

(S/N), nomenclature, date of repair and/or modify, contract number, task order number, line-item number, description of the repair failure, the USCG’s reported failure, a listing of parts repaired, and a listing of parts replaced. The Contractor’s in-house workorder may be used to satisfy this requirement if it includes the information requested above. This report shall be attached to the packing slip and shipped with the repaired component.

5.4 Corrosion

5.4.1 Corrosion Environment

USCG aircraft operate primarily around salt water, at low altitude, and are subject to 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 shall not impair efficiency or safe operation of the part. Corrosion removal and treatment of affected areas shall be accomplished IAW the applicable OEM MRO CMM(s).

In the case where specifications do not exist or are not clear, the Contractor shall provide written notification to the KO. Disposition instructions shall be determined by the USCG only and shall be provided via modification to the applicable Task Order.

5.5 Test and Evaluation/No Fault Found/Beyond Economical Repair Items

5.5.1 Test and Evaluation/No Fault Found

If, after visual and functional inspections, an item is discovered to meet manufacturer’s minimum performance specifications as designated by the OEM MRO CMM and requires no parts or labor, the Contractor shall be allowed the firm-fixed price for Test and Evaluation/No

Fault Found Fee in the Schedule.

The Contractor shall notify the KO, in writing, of the applicable material condition and identify the task order and line-item number(s). The task order and applicable line-item number(s) will be reduced from the firm fixed price to the Test and Evaluation Inspection Fee by issuance of a modification to the task order.

The Contractor shall prepare and include a Failure Data Report as described in paragraph 5.3, with all returned components, including the USCG’s reported failure and the fact that no fault was discovered.

5.5.2 Beyond Economical Repair (BER) Items

When an item is determined to be BER, the Contractor shall provide written notification to the

KO. The notification shall list the Task Order Number, Line Item, NSN, PN and S/N with a brief description supporting the determination. The KO will provide disposition instructions via a Task Order Modification. If the part is deemed BER, the Contractor shall be allowed the firm-fixed price for Test and Evaluation Inspection Fee.

the applicable task order and line-item number(s). The task order and applicable line-item number(s) will be reduced from the firm fixed price to the Test and Evaluation Inspection Fee by issuance of a modification to the task order.

The Contractor shall prepare and include a Failure Data Report as described in paragraph 5.3.

When the determination that the assembly shall be BER, the part and the accompanying paperwork must be clearly marked BER and returned to the USCG ALC for proper disposition.

Note: The USCG typically considers an item BER when the cost to repair exceeds 65 percent of the price of a new unit; however, the USCG is not bound with this percentage and will make all final BER determination.

5.5.3 Scrap Items

When an item is determined to be scrap, the Contractor shall provide written notification to the

KO. The notification shall list the Task Order Number, CLIN, NSN, PN and S/N with a brief description supporting the determination. The KO will provide disposition instructions via a

Task Order Modification. If the part is, deemed scrap, the Contractor shall be allowed the firm-fixed for Test and Evaluation Inspection Fee.

the applicable task order and line-item number(s). The task order and applicable line-item number(s) will be reduced from the firm fixed price to the Test and Evaluation Inspection Fee by issuance of a task order modification.

The Contractor shall prepare and include a Failure Data Report as described in paragraph 5.3.

When the determination that the assembly shall be scrap, the part and the accompanying paperwork must be clearly marked scrap and returned to the USCG ALC for proper disposal.

5.5.4 Cannibalized Units

Firm-fixed prices proposed in the Schedule of Services/Supplies shall not include repairable parts which have been cannibalized from the unit being repaired. These components shall be evaluated at the firm-fixed price evaluation fee specified in the Schedule of Service/Supplies. In the event any of the components listed in the Schedule of Services/Supplies are received in a condition that represents cannibalization, immediate notification to the KO is required. This notification shall include a detailed description of the noted deficiencies and shall reference the contract number, task order number, national stock number, part number, and serial number and is subject to the discretion of the KO. Items covered in the contract that are received missing consumable components are not considered to be cannibalized.

5.6 Pricing Exclusions – Unusual Damage

5.6.1 General

The USCG intends that all components specified in the Schedule of Services/Supplies will be shipped for repair and/or modify within the firm-fixed prices established in the resulting contract.

Those components may be determined unusually damaged. To be determined unusually damaged, a component must be received for routine repair and upon evaluation any one of the following conditions are discovered:

• Obvious misuse

• Cannibalization

• Crash damage

• Acts of God

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

5.6.2 Unusual Damage Evaluation

When a component is processed for Unusual Damage Evaluation, the Contractor shall immediately notify the KO in writing. The Contractor shall submit withing fifteen (15) calendar days after notification to the KO, a quote to cover the cost of repair. The Government may request the Contractor to submit pictures of the damage and a repair proposal listing all parts and labor needed to return the component to satisfactory condition that meets OEM MRO CMM specifications. The proposal shall include the Task Order Number, Line Item Numbers, NSN, P/N, and S/N of the component. The hourly labor rate shall be charged at the firm-fixed hourly labor rate established in Schedule of Services under CLIN 0011 and subsequent option period

CLINs. The Contractor’s delivery obligation shall stop from the date of notification that an item has been determined to be a candidate for “Unusual Damage Evaluation”. The delivery obligation shall be specified in the Task Order Modification and shall apply only to those items specifically addressed by the modification. The Contractor is obligated to deliver all other components not individually addressed by the modification under the original delivery date specified on the Task Order. The proposal shall not include the work involved in the teardown and inspection, which shall have already occurred, as this is covered by the firm-fixed price specified under CLINs 0001 through 0010 and subsequent option period CLINs. The KO will either initiate negotiations for a firm-fixed price with the Contractor or deny authorization for the repair based on information in the report and any other information which may be available.

Upon mutual agreement as to price and delivery, a Task Order Modification will be issued authorizing the repair at the agreed upon terms. If repair is not desired, the KO will provide the

Contractor with disposition instructions for the un-repaired item. In the event an item is returned to the USCG in a disassembled condition, the Contractor shall be entitled only to appropriate compensation at the T&E Fee specified in the Schedule of Services under CLINs 0001 through

0010 and subsequent option period CLINs.

5.7 Replacement Parts

5.7.1 Systematically Replaced Parts

The firm fixed repair and/or modification prices established in the contract shall include all parts that are systematically replaced during repair as required by the OEM MRO CMM(s).

5.7.2 Serviceable Parts

Parts of a component found to be in a serviceable condition as a result of inspection and functional testing may be reused. Missing parts or parts found to be defective shall be replaced with new parts that meet or exceed OEM MRO CMM specifications and drawings, except as noted in the SOW.

5.7.3 Government Furnished Parts-The USCG reserves the right to provide to the contractor

Government Furnished Property (GFM) should it be determined to be in the best interest of the

Government. Requests for GFM will be reviewed by the Government and a determination will be made to furnish the requested material and adjust the monetary value of the task order as applicable. Requests for GFM shall be submitted in writing to the KO with a brief narrative that supports the request.

5.7.4 Environmental Requirements

All parts shall be thoroughly cleaned IAW applicable OEM MRO CMMs to ensure they are as free as practicable of all hazardous dust to include hexavalent chromium, cadmium, lead, etc., prior to being returned to ALC. ALC may take random samples of parts to ensure they are free as practicable of all hazards. Information on these hazards can be found in Occupational Safety and Health Standards (OSHA) 1910.1025 (lead), 1910.1026 (Hexavalent Chromium) and

1910.1027 (Cadmium).

6.0 TECHNICAL SUPPORT

6.1 Technical Support Services. Upon receipt of a request for quote for a specific task, the

Contactor shall prepare and submit a quote to the KO per CLIN 0012 and subsequent Option

Period CLINs. This proposal shall be prepared IAW the procedures defined for engineering changes in paragraph 6.2. Specific deliverables will be identified on individual Task Orders.

6.2 Product Improvements/Engineering Changes

The Contractor may develop designs and/or processes that shall improve the reliability, maintainability, or operational performance of the components being repaired and/or modified.

Any such changes would not be expected to affect overall aircraft performance or capability.

These may be provided to the KO for consideration and approval. A proposal shall also be provided that reflects an incremental charge to be assessed each time the Product Improvement

Package (PIP)/Engineering Change Proposal (ECP) is incorporated into the component. The proposal shall include a breakdown of labor hours, material, and other costs. Upon agreement of the price for incorporation of the change, authority and price changes shall be incorporated into the contract via a contract modification. The Contractor shall not incorporate proposed product improvements or engineering changes prior to receipt of written authorization from the KO. The

Labor Rate shall be at the Firm-Fixed Labor Rates in CLIN 0013 and subsequent option period

CLINs.

6.3 Service Bulletins

The Contractor shall notify the KO, in writing, when incorporation of a service bulletin is required within thirty (30) calendar days following receipt of this service bulletin notification.

The proposal shall contain a list of materials with associated prices, the number of labor hours required, turn-around-time needed to affect the Service Bulletin, and any impact on the contract delivery schedule. The Labor Rate shall be at the Firm-Fixed Labor Rates under the CLIN 0014 and subsequent option period CLINs. The incremental charge agreed to for incorporation of a service bulletin shall apply only to those components into which the Contractor incorporates a required service bulletin, not those into which the service bulletin has been previously incorporated. Upon agreement of the price for incorporation of the service bulletin, authority and price changes shall be incorporated into the contract via a contract modification. The

Contractor shall not incorporate proposed service bulletins prior to receipt of written authorization from the KO.

7.0 QUALITY ASSURANCE PROVISIONS

7.1 Responsibility for Inspections and Tests

The Contractor shall operate with an established inspection system IAW FAA procedures for all components. Records of conformance shall be made available or provided for review by the

Government upon request. The Government reserves the right to conduct sight visits at

Contractor’s facility to verify the existence, adequacy and effectiveness of the quality system.

Upon request of the Government, the Contractor(s) shall forward a copy of their current certification and Quality Assurance Manual for review.

7.2 Traceability of Parts

Replacement parts used during repair shall be in new condition. All replacement part(s) used in the repair shall be: (1) approved by the aircraft OEM, Airbus Helicopter, France, or (2) approved by a FAA certified source of supply for the specific part. Only parts that have traceability to the manufacturer of those specific part(s) or alternate part(s) shall be used. Alternate parts shall satisfy all form, fit, and function requirements of the original parts and conform to the approved configuration of the assembly.

Installation of new surplus, including military new surplus, and overhauled replacement parts is not permitted. Parts replaced during repair shall be disposed of as scrap, which means to render those items unusable for their intended purpose.

7.3 Product Quality Deficiencies Report (PQDR)

Repaired components found to have deficiencies shall be returned to the Contractor for investigation under a no-cost Warranty Repair Task Order. The Task Order will include a copy of the PQDR outlining the component deficiency. The Contractor shall report findings of the investigation within thirty (30) calendar days after receipt of the component. If agreed upon between parties that the component’s deficiencies are not related to previous repairs completed by the Contractor, the Contractor’s report of findings shall include a detailed proposal that includes a complete breakdown of parts and labor necessary to return the component to serviceable condition. The KO will either initiate negotiations for the work or accept the

Contractor’s proposal and issue a modification to the task order authorizing and incorporating pricing for the repair work. The terms and conditions of the base contract including delivery obligations shall apply to all no-cost warranty repair task orders.

8.0 USCG ASSET COMPUTERIZED MAINTENANCE SYSTEM (ACMS)

REQUIREMENTS

8.1 Asset Computerized Maintenance System (ACMS) Documentation

The ACMS used by the USCG is designed to capture, store, and report asset maintenance information. The Contractor shall comply with all USCG ACMS documentation requirements found in Section 8.2 and Section 8.3 below. This tracking provides historical records of reasons for removals/repairs, flight times, cycles, item location, status, and an effective method of configuration control.

8.2 Significant Component History Report (SCHR) Records

The SCHR records the maintenance history of the serial number tracked components and current

SCHR shall be attached to the component. It remains with its corresponding part until reinstalled on an aircraft or is annotated “BER” scrapped and returned to the address specified, unless otherwise instructed by the USCG. The SCHR for scrapped components shall be returned with the component.

8.3 Configuration Report

The configuration report identifies all the components in an assembly that the USCG follows in operation. This may be above the requirements of the OEM Airworthy Limitations Section

(ALS). It will remain with the corresponding assembly and be returned with the assembly. If the OEM provides a Log Card to capture the components followed in operation, it must mirror the component list of the configuration report.

8.4 Component Repair Record (CRR)

The CRR record allows documentation of maintenance performed on serial number 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 original

CRR, which includes pre-printed identification for each part, shall be supplied with the part and shall be returned with the part. The Contractor shall ensure the original CRR is fully completed and returned with the component. The following areas of the CRR shall be completed by the

Contractor: Time Since New (TSN), Time Since Overhaul (TSO), Manufacturer, Date of

Manufacture, Narrative Summary, Repair Facility, Work Order Number, Date Work Completed, Item Beyond Economical Repair, Maintenance Actions complied with during the course of the

Repair, Authorized Signature or Quality Assurance Stamp. The “Narrative Summary” section shall include all work performed, any RDAS performed (cannot include references to an offside database). CRR listed “Maintenance Actions complied with during the course of this Repair” must be properly recorded by checking the appropriate listed “maintenance action.” If unsure about which “Maintenance Actions were complied with during the course of the Repair” contact your government representative for clarification. Any original CRR returned incomplete or not properly completed, shall not be accepted by the government. Until a properly competed CRR is received by the USCG, the Contractor shall not invoice for the component. The Contractor shall retain a copy of the CRR for 90 calendar days. The information provided in the CRR shall be used by the USCG to update the component SCHRs.

8.5 Reporting Discrepancies

The Contractor shall verify the data included in the SCHR and CRR attached to the component with the NSN, P/N, and S/N of the component received. The Contractor shall promptly report discrepancies to the USCG KO prior to performing any work.

9.0 DOCUMENTATION REQUIREMENTS

9.1 Airworthiness Certification for Repaired Equipment

Dynamic Components repaired by the authorized repair facility shall be airworthy and suitable for installation on USCG aircraft. Each repaired component shall be tagged with a DD Form 1574, Serviceable Condition Code Tag, and either a Certificate of Conformance (COC) or an FAA

Form 8130–3, Airworthiness Approval Tag, or equivalent EASA Form 1. All forms not attached shall be packaged with each component. In case of loss of records, all applicable COC(s) and/or applicable FAA Form 8130-3(s), and EASA Form 1(s), shall be available for review upon request.

9.2 Periodic Inventory Reporting

The USCG ALC conducts regular checks of its inventory accuracy. Inventory count checks are on a quarterly basis via random sampling. Therefore, the USCG may periodically request, in writing, that the Contractor account for USCG assets at their facility. In the event that assets on this contract are chosen in the quarterly random sample, the Contractor shall physically verify the P/N and S/N of the particular assets in their possession. The USCG will provide a standard inventory form for the Contractor to fill out and sign. Response to these requests shall be done in one (1) business day by the Contractor, at no additional cost to the government.

10.0 SPECIAL INSTRUCTIONS

10.1 Accelerated Turn-Around-Time and Delivery

Only the KO may request and authorize an accelerated turn-around-time and delivery if needed by the Government for delivery to the USCG, ALC Receiving Department, Building 63, 1664

Weeksville Rd., Elizabeth City, NC 27909. In the event an accelerated turn-around-time and delivery is required, which the Contractor can meet, the Contractor shall be entitled to compensation for additional labor hours and expedited freight costs necessary to complete performance earlier than the turn-around-time and delivery schedule established in the purchase order. After receiving a written request from the KO for an accelerated turn-around-time and delivery, the Contractor shall provide a written response within one (1) business day advising if an accelerated turn-around-time and delivery can be accomplished and include any additional costs necessary for the accelerated performance. Accelerated performance may be authorize in writing via a Task Order Modification. If the Contractor accelerates turn-around-time and delivery on its own initiative in order to meet the delivery schedule established in the Task

Order, the additional costs are not recoverable from the Government.

In the event a direct ship of a component to an Air Station is needed, the Task Order and applicable Task Order Line Item Number shall be modified to reflect the USCG Air Station’s delivery address and the applicable USCG Requisition Number. The Contractor shall be required to ensure the Requisition Number is included on shipping documents/packaging slips so that the applicable USCG Air Station receiving personnel can process the Material Receipt.

10.2 Aircraft on Ground (AOG) Situations

Upon notification from the USCG that an AOG situation exists, the Contractor shall make every effort to expedite the repair and initiate shipment with seven (7) calendar days or less. Material shall be shipped by the fastest traceable means, e.g. air freight “next day delivery”. The shipping container shall be marked on the outside in highly visible lettering “A.O.G”.

In the event an AOG status occurs as a result of a lack of any of the components specified in the

Schedule of Services/Supplies, the Contractor may be notified by the Government in writing of the AOG situation and applicable USCG Air Station and shall be requested to provide a written response within twenty-four (24) hours with the following information: 1) 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 and 2) an estimate of the labor hours needed to accelerate repair completion. The accelerated repair work shall be authorized via a Task Order Modification in conjunction with mutually agreed upon prices, delivery, and shipping cost reimbursement for next day delivery to the applicable USCG Air Station.

In the event of an AOG situation, the Task Order, and applicable Task Order line Item Numbers shall be modified to reflect the USCG Air Station’s delivery address and the applicable USCG

Requisition Number. The Contractor shall be required to ensure the Requisition Number is included on shipping documents/delivery tickets so that the Material Receipt can be processed by the applicable USCG Air Station receiving personnel.

11.0 WARRANTY

The Government accepts the Contractor’s standard commercial warranty up to 12 months for repairs. All assets returned under warranty shall be tested, repaired, and/or modified IAW

Section(s) 5.0, 5.2, or 5.5 respectively.