Attachment 2 Statement of Work.pdf

SECTION C – DESCRIPTIONS AND SPECIFICATIONS

C01 – STATEMENT OF WORK

1.0 Introduction and Scope

This Statement of Work (SOW) defines the responsibilities of Bell Textron Inc., hereinafter referred to as the “Contractor”, and the Defense Logistics Agency (DLA) as associated with the establishment and operation of a performance based material support contract. The requirements may flow to the Contractor in six phases: (1) Consumable Material for Organizational and Intermediate Maintenance Support, (2)

Consumable Material for Depot Maintenance Support (3) Procurement of New Depot Level Repairables,

(4) Repair of Repairables, and, (5) Engineering and Logistics Support. The sequence of these phases is contingent upon the government’s requirements. The establishment and execution of a DLA/Bell partnership entails a world-wide performance based support strategy that stresses speed and material responsiveness in order to provide flexible, timely, and cost-effective support to the end user.

2.0 General Activity Requirements

2.1 Program Management (Applicable to CLINs 0002 & 0003)

The Contractor’s Program Management function will oversee program activities, provide a single Point of

Contact with the Government, schedule and chair Customer meetings, and ensure contract requirements are fulfilled.

2.2 Government Responsibilities (Applicable to CLINs 0002 & 0003)

2.2.1 Procuring Contracting Officer (PCO) and Integrated Support Team (IST) (Applicable to

CLINs 0002 & 0003)

The Government shall assign a Procuring Contracting Officer (PCO) and Integrated Support Team (IST)

Team Lead to be the primary points of contact to the Contractor’s Program Manager. All contract changes shall be made via the PCO.

2.2.2 Contract Management Team (CMT) (Applicable to CLINs 0002 & 0003)

Contract Management Team (CMT) is a team that will include individuals from DLA, the Contractor, Fleet

Supported sites, Industrial sites, and PMA-276 Program Office representatives. The CMT will work through a variety of contract issues to include forecast collaboration shortfalls, system integration/execution challenges, emergent requirements, and requisition challenges as outlined in Attachment 6, H-1 COI

Metrics Plan, metric exclusion requests, and other issues that require a teamed based approach to resolution. Both parties agree to adequately staff the CMT with the appropriate level of personnel both in numbers and experience base to effectively carry out the required tasks. The CMT will meet weekly but the Government and the Contractor may jointly agree to reduce the occurrence of the meetings as the program and execution matures.

2.2.3 Electronic Data Exchange (Applicable to CLINs 0002 & 0003)

The Government shall provide a direct electronic data exchange for requisition processing and requisition status with the Contractor from Government systems to support execution of program requirements at contract award, and throughout the period of performance.

2.2.4 Government Furnished Data (Applicable to CLINs 0002 & 0003)

Near real-time data elements required for material support are specified in Contract Clause H08 Data.

2.2.5 Export/Import Licensing (Applicable to CLINs 0002 & 0003)

If required to support this contract, Export/Import licensing shall be the sole responsibility of the

Government. In addition, for the purposes of this contract, the Government is the exporter of record.

2.3 Contractor Responsibilities (Applicable to CLINs 0002 & 0003)

The Contractor shall be responsible for ensuring the Government has the ability to view the following information for all material on contract:

1. National Stock Number (NSN)

2. Part Number (P/N)

3. Quantity Ordered

4. MILSTRIP Requisition Number

5. Requisition Priority Designator

6. Requisition Receipt Date

7. Requisition Status (including partial shipments)

8. Requisition Completion Date

Contractor shall provide visibility of contractor owned material, to include on-hand, due-in and backordered inventory status, relative to contract execution. The data shall be accessible to the Government via a WEB based system and the Contractor shall provide a weekly updated inventory position (Excel Format preferred).

The Contractor shall ensure that U.S. Government data is not releasable to and may not be accessed by foreign customers. Additionally, data on Foreign Military Sales (FMS) requirements for NIINs supported by this contract is not releasable to and may not be accessed by other foreign customers. However, all FMS customer data for NIINs supported by this contract is releasable to and may be accessed by the U.S.

Government.

2.4 Performance Review Boards (Applicable to CLINs 0002 & 0003)

Performance Review Boards (PRBs) will be held semi-annually at a mutually agreed to location or virtually to monitor and assess Contractor performance, to coordinate responses, and foster solutions to problems encountered during the contract period of performance. The reviews shall provide the Government with the Contractor’s progress and performance on all tasks defined in this SOW. Meeting slides and post meeting minutes for these reviews shall be submitted in Contractor’s format. These PRBs are in addition to the functions required for administration of this contract. During the review, the Contractor shall provide status on the following elements: Program overview including integrated program cost and schedule;

Incentive/Performance metric performance; Quality Assurance; Obsolescence; Potential Reliability

Improvements, Spares issues; IMSP issues; production issues affecting deliveries, Demand Band performance; Contractor/Sub Contractor, Depot or customer issues; previous PRB open action items/new action items, Contractor recommended improvements; and other issues/concerns.

2.5 Security (Applicable to CLINs 0002 & 0003)

2.5.1 Access to Classified and Sensitive Information.

The provisions listed below apply to the Prime Contractor and any subcontractors the Prime Contractor may employ during the course of this contract.

This Project is categorized as classified at the SECRET level and requires the contractor to obtain and maintain a favorable Facility Clearance at the same or higher level of classification. This contract requires the contractor to store, handle, process classified information at their facility. Contractors with a safeguarding requirement will need to be approved for safeguarding at the same or higher level of classification listed in Block 1b of the DD Form 254.

The following security access/performance requirements are required in performance of this contract:

Requirement Supported Contract Task

Communications Security (COMSEC) Task 5.6.2 /.3

Classified Info or Material

(OPSEC/CUI/NATO/FGI)

Task 5.6.2/.3

Authorized to use Defense Courier Service Task 5.6.2/.3

Contractors are required to comply with the DoD 5220.22-M National Industrial Security Program

Operating Manual (NISPOM) in the handling, protection, and safeguarding of classified information in their possession. Security requirements outside the scope of the NISPOM, if required, will be defined in the accompanying DD Form 254.

Personnel security investigations conducted for access to classified information will be conducted by the contractor company Facility Security Officer (FSO).

3.0 Material Support Requirements (Applicable to all CLINs)

3.1 Material Item Additions and Deletions (Applicable to all CLINs)

3.1.1 Item Additions

Items may be added to this contract by a bilateral contract modification, as described below:

1. Items that become sole source to the Contractor after award, even though alternate sources existed prior to award

2. Items that are newly developed by the Contractor

3. Replacements for obsolete/DMS items

4. Items that are identified during supportability reviews that have a direct impact to improving the platforms; intermediate or organizational maintenance events.

3.1.2 Deletions

The following classes of items may be canceled and deleted from the contract by a bilateral contract modification in accordance with the Changes clause (FAR 52.243-1) to a delivery order and/or to the requirements contract but not limited to:

1. Obsolete items

2. Diminishing Manufacturing Source (DMS) items

3. Unfunded Government tooling.

4. Special Metal Items. Being a commodity, special metals, e.g. titanium, are traded in the commodities market and have fluctuating values. This type of commodity can greatly influence the cost to produce a part and must be taken into consideration if the price of the commodity suddenly increases in cost. The item can be deleted from the contract and open delivery orders shall be granted contract modifications or cancellations if the cost of a special metal suddenly increases or if a special metal becomes scarce or is unable to be procured for an end item deliverable for this contract. Bell Boeing shall submit documentation to DLA to include the before/after price comparison prior to the issuance of any bi-lateral modification.

5. Configuration changes as a result of forced retrofit that are not compatible for use with updated configuration.

3.1.3 Transitions

The Contractor or the Government may propose an item be moved from one category (PB, STK, TRX, Depot, DLR Spares) to another and these changes shall be subject to a bilateral contract modification between the contracting parties. Items shall remain in the category designated and the Contractor is required to fulfill applicable delivery requirements. If PB, metrics will not apply until such time that both parties agree to a metric transition date. DLA shall process such changes within 30 days after mutual agreement that a change is required.

3.2 Quality

The contractor shall make available, for review by the Government (DLA, DCMA & NAVAIR), quality system procedures, planning and all other documentation and data that comprise the contractor's quality system for both hardware and software. The Government may perform any necessary inspections, or evaluations to confirm continued conformance to requirements. The contractor shall provide a copy of their Quality Management/Program Plan(s) (CDRL XXX applies). The plan should include provisions for addressing requirements in accordance with AS9103.

Performance Review Boards (see section 2.4)

3.2.1 Quality Management/ Program Plan Addendum

The contractor shall develop an addendum to weapons system quality program plans to identify specific differences in application of contract quality requirements. The quality management/program plan addendum shall identify processes for selecting, qualifying and managing suppliers, managing product and processes, flowing applicable requirements to subcontractors/suppliers, assessing subcontractor/supplier’s capabilities, verifying compliance of subcontractors/suppliers and establishing metrics for continuously monitoring and rating supplier performance. This plan shall maximize the use of existing policies and procedures to the extent that they meet the quality requirements of this document and shall contain a listing of the procedures that are used to satisfy the Quality Assurance (QA) requirements of the program. The Quality Management/Program Plan addendum shall be submitted per

CDRL XXX.

3.2.2 Notification of Potential Safety Issues (JUN 2013) 252.246-7003

(a) Definitions. As used in this clause -

Credible information means information that, considering its source and the surrounding circumstances, supports a reasonable belief that an event has occurred or will occur.

Critical safety item means a part, subassembly, assembly, subsystem, installation equipment, or support equipment for a system that contains a characteristic, any failure, malfunction, or absence of which could have a safety impact.

Safety impact means the occurrence of death, permanent total disability, permanent partial disability, or injury or occupational illness requiring hospitalization; loss of a weapon system; or property damage exceeding $1,000,000.

Subcontractor means any supplier, distributor, vendor, or firm that furnishes supplies or services to or for the Contractor or another subcontractor under this contract.

(b) The Contractor shall provide notification, in accordance with paragraph (c) of this clause, of -

(1) All nonconformances for parts identified as critical safety items acquired by the Government under this contract; and

(2) All nonconformances or deficiencies that may result in a safety impact for systems, or subsystems, assemblies, subassemblies, or parts integral to a system, acquired by or serviced for the Government under this contract.

(c) The Contractor -

(1) Shall notify the Administrative Contracting Officer (ACO) and the Procuring Contracting Officer

(PCO) as soon as practicable, but not later than 72 hours, after discovering or acquiring credible information concerning nonconformances and deficiencies described in paragraph (b) of this clause; and

(2) Shall provide a written notification to the ACO and the PCO within 5 working days that includes -

(i) A summary of the defect or nonconformance;

(ii) A chronology of pertinent events;

(iii) The identification of potentially affected items to the extent known at the time of notification;

(iv) A point of contact to coordinate problem analysis and resolution; and

(v) Any other relevant information.

(d) The Contractor -

(1) Is responsible for the notification of potential safety issues occurring with regard to an item furnished by any subcontractor; and

(2) Shall facilitate direct communication between the Government and the subcontractor as necessary.

(e) Notification of safety issues under this clause shall be considered neither an admission of responsibility nor a release of liability for the defect or its consequences. This clause does not affect any right of the Government or the Contractor established elsewhere in this contract.

(f)(1) The Contractor shall include the substance of this clause, including this paragraph (f), in subcontracts for -

(i) Parts identified as critical safety items;

(ii) Systems and subsystems, assemblies, and subassemblies integral to a system; or

(iii) Repair, maintenance, logistics support, or overhaul services for systems and subsystems, assemblies, subassemblies, and parts integral to a system.

(2) For those subcontracts, including subcontracts for commercial items, described in paragraph (f)(1) of this clause, the Contractor shall require the subcontractor to provide the notification required by paragraph (c) of this clause to -

(i) The Contractor or higher-tier subcontractor; and

(ii) The ACO and the PCO, if the subcontractor is aware of the ACO and the PCO for the contract.

3.2.3 Quality Management Reviews (QMR’s):

The contractor shall participate in Quality Management Review (QMR) working groups semi-annually in conjunction with the Performance Review Boards, or virtually as determined by the Government. The

QMR agenda will be mutually agreed to by the Government and prime contractor, but as a minimum shall address quality performance metrics, risks, issues, and opportunities for continuous improvement across the contractor and its supply chain.

Source Data

Listing of Items delivered by the Contractor and items delivered by subcontractors with direct shipment authority from the contractor. For parts obtained or delivered from distributors, identify the actual manufacturer(s) of the parts.

Non-conformances – Quantity, type, and cause determination

Nonconforming material defined per Product Quality Deficiency Reports received, determined valid, and determined to be attributable to manufacturing.

Performance Trend Data:

• Number of Non-conforming Products/ products Delivered overall COI broken out by TMS

• # of Suppliers on Contract with open Major Deficiencies that supply Critical parts (the Navy includes CSI and CAI parts in this)

• # Quality Surveillance Audits / Quarter and Number of Major Findings per Quarter

• Summary of major Findings

• # of corrective Action Plans that are off Track or late

• # of approved changes to Configurations / month

• # of First Articles as a result of changes other than ECPs/Month

• DCMA Corrective Action Request:

• Number of CAR’s/# at each level,

• Status of open Corrective Actions

• Status of Overdue CAR’s

• PQDRs

• Trend Data For source of nonconforming data-Vendor identification

• Top Degrader List

• Cycle time metrics for Processing PQDRS

• CSI/CAI Top Degrader List-Vendors

3.2.4 Delivered Quality

The Contractor is responsible for the quality of products delivered under the COI contract, whether the

Contractor manufactured the items or the items were manufactured by an outside source. The Contractor shall be responsible for receiving, investigating, and dispositioning Product Quality Deficiency Reports submitted by the Government, either received directly by military Service users or processed through

DLA or DCMA. The contractor is responsible for requesting and analyzing exhibits of deficient products when needed or requested by the Government. The contractor will assess the validity, cause, and responsibility of reported product deficiencies. Procedures for processing PQDRs are established between

DLA, DCMA, and the Contractor.

3.2.5 Non-Conforming Material

The contractor shall ensure a documented system for evaluating and disposition of non-conforming material is utilized by all suppliers submitting product on this contract. Systems shall be used for tracking, analyzing to determine root cause, and assuring effective preventative/corrective action implementation.

Non-conformances shall not be given a disposition of “use as is’ or “repair” through contractor action without Government approval. Rework to print is acceptable. Subcontractors shall maintain procedures to control the identification, documentation, evaluation, disposition, and segregation requirements of non-conforming products. The Government shall be notified of any non-conforming products via Request for

Variance process. The Contractor shall notify the Procuring Contracting Officer (PCO) immediately of any discovered non-conformances that may exist in previously delivered product. Notification shall include a description of the suspected nonconformance, potential risk or product impact, contract number, Part Number, National Stock Number (NSN), affected serial numbers, or lot numbers, when applicable.

3.2.6 Product Quality Deficiencies and Supply Discrepancies

The Contractor shall adhere to the latest revision of Mil Standard 129 & 130. If an item or its packaging obtained from a Contractor COI CLIN is determined to be nonconforming to contract requirements, the

Contractor shall accept return of the material. The Contractor will provide a POC list, which includes the appropriate POC by COI program including an electronic location to send a discrepancy report, a single

Contractor location for each CLIN to accept exhibit shipments, a POC name/email address/phone number for each program. Changes or modifications to this list will be provided as necessary. The return location can be modified upon agreement between the Contractor and the Government. Any modified location must have an active DoDAAC.

DLA will work with DCMA for PQDR support. For PQDR material, all items deemed

Inspection/Acceptance Origin in the specific contract PWS, shall be opened/inspected in the presence of a

Government representative (DCMA).

DCMA will provide DLA and the Contractor a statement of discrepancy. The Contractor is required to provide DLA a Return Material Authorization (RMA) or an actionable response within 10 business days of DLA notifying the Contractor of a PQDR. Within 30 business days of the Contractor receiving PQDR exhibits, the Contractor will provide DCMA and DLA a completed investigation report with disposition, or the Contractor will provide an investigation status with an ECD. The Contractor will also provide RMA for any suspended stock related to the PQDR. The Contractor shall freeze material subject to the PQDR until notified by the government. Any open/unfilled MRO or STO should not be filled by the Contractor until notified by the government. The contractor will follow all PQDR procedures that are in place with DCMA.

The contactor shall maintain a system to track all issues and resolutions and provide a monthly listing of all nonconforming material identified to include the source of the material and actions taken to resolve.

Quantity returned will be deducted from demand band reconciliation. The Contractor shall track PQDR and SDR receipts and resolution and shall include this information in the Program Review Board (PRB).

The Contractor shall process all Supply Deficiency Reports (SDR) actions. The Contractor shall obtain and maintain WebSDR access at: https://www.transactionservices.dla.mil/daashome/websdr.asp.

3.2.7 Government Industry Data Exchange Program (GIDEP) Participation

The contractor shall implement procedures and processes for their participation, and their subcontractors' participation, in the GIDEP program, including the submission of alerts/advisories to GIDEP when warranted. The processes and procedures shall describe how the contractor:

• Receives alerts and advisories from GIDEP and other agencies, or internal sources,

• Determines any impact to their product design and already manufactured hardware,

• Implements corrective action procedures when design and/or produced hardware are affected, and

• How all of the above flows down to subcontractors.

3.2.8 Product Acceptance System

The contractor shall ensure subcontractors demonstrates compliance to the technical and contractual requirements for all contracted products (in accordance with the Quality Management/ Program Plan

Addendum). The Government and Bell Boeing agreed to items shall successfully complete acceptance testing prior to delivery to the Government or as specified in test program planning. Changes to acceptance test procedures and/or associated equipment, vendor changes, line relocations, production disruptions, or downtime exceeding 6 months shall result in a notification to the PCO.

3.2.9 Subcontractor/Supplier Quality Assurance Flow down

The contractor shall ensure that all applicable quality requirements, associated specifications, and any other contractual agreements are flowed down to their lower tier subcontractors/suppliers and that compliance is verified.

3.2.10 Notification of Production Changes

For CSI, CAI items or items under QPL/QML specifications the Government PCO shall be notified when changes in production at subcontractor results in any of the following: (a) The contractor/subcontractor/supplier has not previously supplied the part, (b) The contractor/subcontractor/supplier has previously supplied the part but (1) there have been subsequent changes in process or specifications, (2) production has been discontinued for a period of time greater that

12 months, (3) physically moves the productions line tooling to another location - including within the same facility. The contractor shall notify the local DCMA representative of process validation activities.

3.2.11 Supplier Removal

The contractor shall notify the PCO within 7 days when a previously approved source in the manufacture of a safety critical or controlled item is removed for quality reasons. As a minimum the notification shall include the name of the supplier, address, CAGE code, products or services provided by this source, and the reason for source approval removal.

3.2.12 Critical Safety Items

Critical Safety Items (CSI) will be identified, as applicable to the subsumable requirement. CSI clauses are incorporated at Section I.

Contractor shall establish and maintain an auditable quality management system for the effective control of all service identified Critical Safety Items (CSIs) IAW SAE AS9017. This system shall be used in conjunction with the Contractor’s AS9100 certified Quality Management Systems (QMS), AS9102 First

Article Inspection requirements, and AS9120 QMS requirements for distributors to control and verify the quality of CSIs delivered to the Government. Contractor shall flow CSI requirements to external providers and periodically assess, audit, validate, and recognize supply chain compliance to these requirements. The Contractor shall notify the Government in writing within 7 days after learning that a supplier lost 3rd party certification, received an adverse action by a customer or the FAA resulting in disapproval/suspension of the supplier's Quality Management System; or there was a change to the supplier's organization or procedures that affects quality conformity of CSIs. The Contractor is responsible for the conformity and quality of products delivered under the contract, whether produced by

Contractor or an external provider. The contractor shall notify the Administrative Contracting Officer

(ACO) and the Procuring Contracting Officer (PCO) of previously delivered products that involve deficiencies having potential safety implications in accordance with DFARS 252.246-7003.

"NOTIFICATION OF POTENTIAL SAFETY ISSUES".

Serialization of CSIs is required only when established by engineering technical documentation for the specific item. The Contractor shall purchase products on a Government Qualified Products List from

Government approved suppliers on the QPL or their licensed distributors as set forth in each specific subsumable contract PWS. The Contractor is not required to purchase non-QPL aviation CSIs from service approved sources, but will implement established company requirements, procedures, and contract clauses for suppliers of critical items.

Upon request, The Contractor shall provide supporting information for selecting CSI suppliers. The

Government may disapprove the use of specific sources when the Government is aware of information not available to the Contractor. Upon request, The Contractor shall provide the Government with visibility into supplier quality and delivery performance, the Contractor or external supplier quality escapes, nonconforming CSI dispositions, or similar quality issues or trends.

Suppliers of standard hardware and electrical components (i.e., items manufactured to Government or nationally recognized industry standards or specifications) identified by the Government as CSIs, are required to use Contractor approved sources listed in QCS-001 or Nadcap accredited sources. Exceptions may be allowed when requested by the Contractor and authorized by the Government based on objective evidence that CSIs met the requirements established by the standards or specifications. The Contractor shall identify to the Government the manufacturers of CSI standard parts.

CSIs provided under the COI contract shall have clear traceability from the original manufacturer to delivery to the Government with no breaks in chain of custody ownership throughout the supply chain process. Parts produced by different manufacturers or produced in multiple production lots or batches shall be identifiable to the actual manufacturer and applicable production lot or batch. Parts requiring certifications of conformity, material physical or chemical properties, test results, special processes (e.g., heat treating, plating, and coating, shot peening, nondestructive testing) and other certifications shall be identifiable to the organization that provided the certification. When requested, The Contractor will provide the Government with manufacturing and quality records for CSIs, serialized parts, items identified as fracture critical, fatigue critical, structurally critical, or otherwise required to have traceability by technical data, Government requirements, or contractor requirements. Manufacturing and quality records on these parts shall be retained and made accessible to the Government review for not less than 7 years.

CSI items shall be inspected per the applicable inspection requirements at the manufacturing location.

No additional inspection at the Contractor’s warehouse is required per the contract. In the event Defense

Contract Management Agency (DCMA) imposes an additional inspection, a kind, count, condition, and verification inspection may be performed, and the Contractor shall provide evidence (documentation) that source inspection has been performed on all CSI items. Examples of acceptance evidence that source inspection has been performed include a DCMA Quality Assurance Representative (QAR) eagle stamp or a DCMA signature on mutually agreeable documentation such as inspection records, certificate of conformances, shipping documents, or similar documentation.

Notification of part status changes from non-CSI to CSI shall be provided via PCO letter. Upon bi-lateral contract modification to implement additional CSI requirements, new purchase orders to suppliers shall ensure the flow down of all applicable contract requirements. Additionally, the Contractor shall submit a request for waiver to DLA, and DLA will coordinate with the Engineering Support Activity (ESA)

Engineer for approval for parts (identify specific part numbers and serial numbers) where delivery orders were placed prior to bi-lateral contract modification. Notwithstanding other, outstanding quality concerns, an approved waiver indicates the part is Ready for Issue (RFI).

3.2.13 Traceability

The contractor shall provide DLA with company policies/procedures for ensuring traceability of parts from point of manufacture to distribution under the COI contract. Parts provided under the COI contract shall have clear traceability to the original manufacturer. All parts shall be identified per most current version of MIL-STD-129/130 with no breaks in chain of custody ownership throughout the supply chain process. Parts produced by different manufacturers or produced in multiple production lots or batches shall be identifiable to the actual manufacturer and applicable production lot or batch. Parts requiring certifications of conformity, material physical or chemical properties, test results, or special processes

(e.g., heat treating, plating and coating, shot peening, nondestructive testing) shall be identifiable to the organization that provided the certification.

3.2.14 Retention of Records

The Contractor shall provide DLA with company requirements for retaining or obtaining access to internal and subcontracted manufacturing documentation, quality inspection/test reports, and part traceability information in accordance with the Contractor’s Quality Management/ Program Plan

Addendum. Examples of such records include manufacturing process and operation travelers; First

Article Inspection Reports; in-process, final, and receiving reports; material and special process certifications; nonconforming material and disposition records; and traceability records. Manufacturing and quality records on parts identified as safety critical (e.g., CSI, Flight Safety, Primary, etc.) or needing special controls (e.g., serialized or otherwise requiring traceability, fracture critical, fatigue sensitive, structurally significant, etc.) by the Government, on a drawing, or in a specification or standard shall be retained or made accessible for a minimum of 7 years after completion of the contract. At the end of this period, or in the event of relocation or shutdown, all records shall be offered to the PCO prior to disposal.

NOTE: All references to the “Procurement Contracting Officer” or “PCO” in this Local Term are to the

DLA PCO.

3.2.15 Configuration Management

The Government will maintain spares configuration control and change authority for all Class I ECPs which includes, but is not limited to, modifications or changes affecting form, fit, function, or interface parameters of the contracted NIINs/Part Numbers (P/N). Guidelines for preparing Class I ECPs may be found in MIL-HDBK-61 Configuration Management Guidance and ANSI/EIA-649, Configuration

Management Requirements for Defense Contracts. The Contractor shall maintain all functions of configuration management applicable to this contract in accordance with the latest contracted revision to the V-22 Configuration Management Plan (CMP) Document Number 901-989-052.

In accordance with the configuration management provisions of this contract, the Contractor shall maintain the total Equipment baseline configuration of the parts on this contract including, but not limited to, hardware, software and firmware.

3.2.16 Engineering Changes

The Government will not be responsible for any contract delay or disruption or any increased costs of performance of the Contractor due to a misclassification of an ECP by the Contractor, including those costs associated with replacement of delivered items resulting from such a misclassification.

Any Class I change initiated by the Government is subject to the Changes clause of this contract, FAR

52.243-1.

The Contractor shall notify the Procurement Contracting Officer (PCO) of any Class I engineering change activity, or proposed change activity affecting items in this contract, including proposed or approved changes sponsored by any Government activity. The Government shall approve all Class I changes. The

Contractor must not implement a Class I change on this contract until a contract modification is issued by the PCO. ECPs shall be prepared in accordance with DI-SESS-80639E, Engineering Change Proposal

(ECP).

Any Class II change shall be submitted to the cognizant Defense Contract Management Agency (DCMA) for concurrence in classification and may be implemented only upon receiving DCMA concurrence. Class

II changes shall be made at no additional cost to the Government.

The Contractor is not entitled to any equitable adjustment to the contract price or terms based on the

Government’s disapproval of a Class I or Class II ECP.

If the Contractor has an ECP pending with another Government activity or has an approved ECP that the

Contractor proposes to incorporate under this contract, the Contractor shall notify the PCO and

Configuration Manager of the status of the ECP and provide a copy of the ECP submission. Any such

Class I ECP, however, will not be effective on this contract until incorporated by a bilateral modification to this contract.

All costs associated with Contractor-initiated configuration Class II ECPs shall be made and incorporated without adjustment to the contract price. The Contractor shall maintain the configuration data of all serialized Equipment including as shipped and delivered configuration records by serial number.

3.2.17 Variances

The Contractor must not deliver any item for acceptance by the Government that incorporates a known departure from technical or contractual requirements unless a Request for Variance has been approved.

Authorized variances are a temporary departure from the requirements only and do not authorize a change to the item’s configuration baseline. Variance requests shall be prepared in accordance with DI-SESS-

80640E – Request for Variance (RFV). All CSI nonconformances (critical, major, and minor) and all

Requests for Deviations or Waivers associated with CSl's shall be approved by the cognizant Service

ESA. Delegation to DCMA for approval of Class II Engineering Change Proposals (ECPs) from the ESA will be stated on the "Delegation of Authority" listing posted by DLA Aviation policy division. The approval authority for critical or major nonconformances shall not be delegated.

Major/Critical Variances: The Contractor shall submit all major/critical variance requests, via DCMA and the PCO, to the Government for approval or disapproval. All approved major/critical variances require a contract modification by the PCO prior to final inspection and acceptance.

Minor Variances: For any non-critical item involving a minor variance, delivery and/or shipment of such items under this contract is not permitted until authorized by the cognizant DCMA.

The Contractor is not entitled to any equitable adjustment to the contract price or terms based on the

Government’s disapproval of a major/critical or minor variance.

3.3 Transportation (Applicable to CLINs 0002 & 0003)

The shipping terms are FOB Origin. The Contractor or its suppliers shall utilize Vendor Shipment Mode

(VSM) or any follow-on government system/process for all customer delivery orders/requisitions under the

PB-MB CLINs. Impacts due to a change from the VSM system are subject to an equitable adjustment. The

Contractor or its suppliers shall establish a VSM profile at the following website:

https://vsm.distribution.dla.mil/net/secure_default.aspx any questions with establishing an account should be directed to DLA Distribution VSM personnel at 1.800.456.5507 or delivery@dla.mil. When material is ready for release, the Contractor or its suppliers will select the applicable delivery order/requisition in

VSM, and input shipment characteristics and shipping date. The carrier details will be provided once the aforementioned inputs are made. If VSM is not available, the Contractor or its suppliers shall contact

DCMA and DCMA shall provide authorization, instructions, and Government Transportation Accounting

Codes (TAC) or equivalent to utilize commercial transportation channels and existing guaranteed traffic contracts for freight shipment. If DCMA is not available, the Contractor or its suppliers shall contact DLA

Distribution personnel at 1.800.456.5507 or delivery@dla.mil and DLA shall provide authorization, instructions, and Government Transportation Accounting Codes (TAC) or equivalent to utilize commercial https://vsm.distribution.dla.mil/net/secure_default.aspx mailto:delivery@dla.mil mailto:delivery@dla.mil transportation channels and existing guaranteed traffic contracts for freight shipment. If these methods fail to resolve the shipping requirements, the Contractor may contact the PCO for further direction. Regardless of the mode of transportation, DLA shall be responsible for all transportation costs.

3.4 Foreign Military Sales Transportation (APPLICABLE TO CLIN 0001 and 0004 ONLY)

The Contractor shall perform the necessary supply chain management functions to support FMS customers.

Transportation instructions will be included within delivery orders/requisitions. The Contractor is required to conform to Military Assistance Program Address Directory (MAPAD) at the Defense Logistics Manual

4000.25, Volume 6 directions for FMS shipments, to include Special Instruction Indicators, identified by the title, “Country Reps and/or Special Instructions.” Similarly, exceptions found in the MAPAD authorize deviation from normal service procedures. Directions for use of the MAPAD are contained in the directory itself at: http://www2.dla.mil/j-6/dlmso/elibrary/manuals /dlm/dlm_pubs.asp#v6.

All OCONUS shipments will be directed to a CONUS freight forwarder.

3.5 Packaging

See Section D of the contract.

3.6 Government-Owned Tooling (Applicable to all CLINs)

The decision to rework, repair, or replace worn and/or supply additional tooling (including tooling that is determined to be missing) is the sole responsibility of the Government unless there is willful misconduct on the part of the Contractor. Any rework and/or additional tooling effort shall be ordered and funded separately under this contract. The Contractor has the right to advise the Government when Government owned tooling (either pulled from Government storage or resident at the Contractor facility or one of its components or suppliers) requires re-work and/or re-manufacture due to the tooling being in a condition that will not support the part manufacture, and Bell shall have no responsibility for such costs.

The Contractor shall include any tooling impacts under a separate proposal. A modification(s) shall then be issued to incorporate the mutually agreed upon price, revised delivery schedule, and/or metric relief.

Costs associated with the transportation and set-up of the tooling from a storage location to the required destination shall be the responsibility of the Government. Any price and delivery impact associated with rework, repair, or manufacturing effort shall be addressed through a separate proposal process and be ordered and funded solely at DLA's discretion. Should the Government elect not to release a tool or authorize tool rework and/or manufacture, the Contractor reserves the right to advise the Government of any items that cannot be manufactured, and the Government shall be responsible for termination costs associated with the cancellation.

If the Contractor incurs a delay attributable to Government furnished tooling including authorization and funding delays, tooling release, or rework and/or manufacture, the Contractor shall be entitled to corresponding price, schedule, and metric relief. In this context, a delay is defined as the period of time that will prevent the Contractor from achieving its metric on the Government's requisition or meet the contract delivery schedule. Additional tooling may be required on a case by case basis and will be requested as these needs become known.

http://www2.dla.mil/j-http://www2.dla.mil/j-6/dlmso/elibrary/manuals/dlm/dlm_pubs.asp#v6

3.7 Diminishing Manufacturing Sources (DMS) / Obsolescence (Applicable to all CLINs)

If the Contractor becomes aware of DMS/obsolescence issues, notification shall be provided to the

Government. DMS/Obsolescence is defined as the loss or impending loss of an item’s manufacturer or supplier, lack of material availability, lack of item availability due to process changes, or new design incorporation that replaces current items required by DoD activities for systems support.

Development and implementation of solutions for DMS/Obsolescence issues (such as life-of-type procurement, design changes, and maintenance concept changes) shall be authorized and funded by the

Government via separate contract actions. While the Government is determining a course of action, the

Contractor shall fulfill requisitions for parts with DMS/Obsolescence issues while inventory is available.

Once inventory is exhausted, the Contractor shall have no further obligations under the Contract with respect to the DMS/obsolete item and/or the end item deliverable. The parties will mutually agree on the disposition of existing orders or requisitions for this material.

3.8 Reliability Improvements (Applicable to CLINs 0002 & 0003)

The Contractor may identify high failure rate/high demand items driving increased spare demands to the

Contract Management Team (CMT). In collaboration with DLA, the listing will be coordinated with the affected Services and platform(s) to determine and prioritize improvement opportunities. It is at the

Contractor’s discretion to pursue U.S. Government approval of recommended configuration changes. Any cost/price impacts shall be subject to a bilateral contract modification.

3.9 Configuration Management (Applicable to all CLINs)

The Government will maintain configuration control and change authority for all Class I ECPs which includes, but is not limited to, modifications or changes affecting form, fit, function, or interface parameters of the contracted NIINs/Part Numbers (P/N). The Contractor shall maintain all functions of configuration management applicable to this contract in accordance with the latest contracted revision to the H-1

Configuration Management Plan (CMP) Document Number H-1 Light/Attack Helicopter Programs

Revision C May 2014

If the Contractor has an ECP pending with another Government activity or has an approved ECP that the

Contractor proposes to incorporate under this contract, the Contractor shall notify the PCO of the status of the ECP and provide a copy of the ECP submission. Any such Class I ECP, however, will not be effective on this contract until incorporated by a bilateral modification to this contract.

All costs associated with Contractor-initiated configuration Class II ECPs shall be made and incorporated without adjustment to the contract price. The Contractor shall maintain the configuration data of all serialized equipment including as shipped and delivered configuration records by serial number.

3.10 Performance Based Logistics (Applicable to CLINs 0002 & 0003)

The Contractor shall manage the program utilizing proven Supply Chain Management (SCM) methodologies in use across the enterprise in the execution of this contract. This will include order processing, warehousing, packaging, and transportation preparation. The Contractor will also apply demand planning and forecasting, asset management, information technology, and program management expertise as necessary to meet the performance metrics. Notwithstanding any material availability metric rate agreement, the contractor is responsible for delivering 100% of the requisitions which originated and were received during the Period of Performance for all parts listed in Attachments 3 and 4 and pre-contract backorders as identified in Attachment 8.

Fleet requisitions, including unfilled requisitions (backorders), shall be satisfied in the order of the highest priority, then earliest Julian date of requisition, as required by the Uniform Material Movement and Issue

Priority System (UMMIPS) OPNAV Instruction 4614.1 (latest revision).

3.10.1 Supply Chain Management

The Contractor will utilize the following capabilities to support the scope of this effort.

3.10.1.1 Demand Forecasting

Demand forecasting is performed for the items specified in Attachments 3 & 4.

3.10.1.2 Asset Management

Consistent with the terms and conditions of the contract, the Contractor shall be responsible for ensuring material is on-hand to meet the Material Availability (MA) performance metric. Asset management tasks include tactical forecasting, ordering of replenishment material, authorizing release of material to satisfy valid Customer requirements, and redistribution of material within the Contractor-controlled supply chain network.

3.10.1.3 Performance Based Items Planning Assumptions

Performance Based demand planning and forecasting will be bound by the Demand Bands specified in

Contract Clause H02. DLA shall assist the Contractor in collaborating with the Services in order to develop a forecast inclusive of events not reflected in historical demand patterns.

3.10.1.4 Attrition of Government Material and Contractor Assumption of Responsibility

Attachment 8 identifies the Government starting inventory position (On-hand and Due-ins) as agreed upon by both the Government and the Contractor at the time of the contract award.

DLA shall provide inventory, demand, and backorder position data required to allow the Contractor to monitor attrition and fill requisitions and/or orders in accordance with H08.

DLA sourcing logic will identify and utilize DLA unprotected on hand material to satisfy requisitions prior to sourcing (sending) requisitions to Bell.

The Contractor shall be entitled to an equitable adjustment when the DLA inventory position (defined in

Attachment 8) is not utilized to fulfill requisitions during the period of performance of the contract and/or at the completion of the contract and the Contractor was required to procure additional inventory. In such cases, the Contractor will submit a proposal with cost or pricing data as applicable to address deficient levels of the DLA starting inventory. The proposal preparation costs of preparing an equitable adjustment shall be deemed allowable cost and shall be charged directly to the contract.

3.11 Requisition Processing (Applicable to CLINs 0002 & 0003)

3.11.1 Requisition Data Exchange

Requisition data exchange details can be found in Attachment 7, (DLA Enterprise Performance Based

Support Contract Interface Control Document (ICD)).

3.11.2 FMS Requisitions

FMS Requisitions will be fulfilled by the contractor based upon the type of FMS requisition per Attachment

6 (Metrics Plan). FMS Requisitions are identified by data elements below provided in accordance with

Clause H08:

• “B,D,K,P, or T” in the first position of the requisition number o Planned CLSSA requisitions identified by:

▪ “V” in the sixth position of the requisition number

▪ Numeric “1” in record position (RP) 72 of the MILSTRIP requisition o Unplanned CLSSA requisition identified by:

▪ “V” in the sixth position of the requisition number

▪ Blank or numeric “2” in record position (RP) 72 of the MILSTRIP requisition o Initial Support and FMS DRP requisition identified by:

▪ No “V” in the sixth position of the requisition number

3.12 Private Public Partnership (PPP) – Commercial Services Agreement - Reserved

4.0 Depot Level Support Requirements - Reserved

5.0 Organizational and Intermediate Maintenance Support Requirements (Applicable to CLINs

0002 & 0003)

5.1 General Description (Applicable to CLINs 0002 & 0003)

This section of the Statement of Work (SOW) defines the tasks the Contractor must perform to satisfy the integrated supply chain management requirements to support the organizational and intermediate maintenance of aviation platforms, components and structures. It is imperative that the Contractor executes a disciplined integrated support approach in order to meet the requirements of this SOW. Under

Organizational and Intermediate initiatives, the Contractor may leverage and synchronize existing sustaining engineering expertise with supply chain management support to increase material availability and reduce the number and age of back orders.

The Contractor shall work with the various Government support organizations, as it deems necessary, to satisfy the requirements of this SOW. The Government will assist the Contractor in establishing agreements and teaming arrangements when appropriate and requested by the Contractor.

5.2 Scalability of Support (Applicable to CLINs 0002 & 0003)

The organizational and intermediate support strategy is to be scalable. As additional organizational and intermediate maintenance events and or changes to technical documentation are identified for support, they will be added to the contract via bi-lateral modification.

5.3 Material Support Requirements (Applicable to CLINs 0002 & 0003)

The Contractor will provide all DLA managed material as identified in Attachments 3 & 4 (H-1

Organizational / Intermediate Support Consumable Material NIIN List) to support H-1 organizational and intermediate maintenance events,…