Attachment 3 - Statement of Work.pdf

Attachment 3 – Statement of Work

70Z03822QJ0000160

A. Schedule of Services

1.0 General

The Department of Homeland Security (DHS), United States Coast Guard (USCG), Aviation Logistics

Center (ALC), Medium Range Recovery (MRR) Procurement Branch intends to award, on a sole source basis, a Requirements type contract for the overhaul of MH-60T Rotary Wing Blades and Rotary Rudder

Blades hereafter referred to as Rotor Blades. Firm Fixed Price (FFP) Task Orders (TO) will be issued electronically off the base contract as Rotor Blade Overhaul Services are required. The quantities listed in the Schedule of Supplies represent the Government's estimated quantities and are not a representation to the Contractor that the estimated quantity will be required or ordered, or that conditions affecting requirements will be stable or normal. These estimated quantities are based on the most current information available.

B. Statement of Work (SOW)

1.0 General

This is a non-personal services contract to provide Rotor Blade Overhaul Services.

1.1 Background

The USCG currently operates a fleet of approximately forty-eight (48) MH-60T rotary wing aircraft manufactured by Sikorsky Aircraft Corporation (SAC). This specialized, high demand, aircraft currently enables the USCG to perform missions such as search and rescue, law enforcement,· international ice patrol, marine environmental protection, and marine resource conservation. With such a demanding operational tempo, aircraft condition and availability are essential to mission success. There are four (4)

Rotary Wing Blades and two (2) Rotary Rudder Blades per aircraft. The Rotor Blades are flight Critical

Safety Items (CSI). In order to successfully maintain airworthiness of the aircraft and aircraft systems, protect personnel safety, and perform the USCG's mission, the acquisition of this CSI is limited to the

Original Equipment Manufacturer (OEM), SAC. A CSI is a part, assembly, installation, or production system with one or more critical characteristics that, if not conforming to the design data, or quality requirements, would result in an unsafe condition. Unsafe conditions relate to mishap severity I

(Catastrophic), II (Critical), Ill (Major) and include conditions which could cause loss or serious damage to the end item or major component, loss of control, serious injury, or death of personnel.

1.2 Scope

The Contractor shall provide all necessary parts, material, labor, tooling, overhaul manuals, test equipment, engineering services, management, and facilities to test, evaluate, and overhaul the Rotor

Blades to like new condition ln Accordance With (IAW) this Statement Of Work (SOW). The USCG aircraft operate primarily in a saltwater environment and are subject to corrosion. The Contractor is advised to expect corrosion on Rotor Blades to be overhauled under this contract. The Rotor Blades shall be overhauled and returned by the Contractor in an airworthy condition suitable for installation on MH-

60T aircraft.

1.3 Objective

The basic service objective of this requirement is to preserve service life, reduce life cycle cost, and increase mission capabilities through the performance of comprehensive Rotor Blade Overhaul Services.

1.4 Applicable/Compliance Documents

Rotor Blade Overhaul Services must be performed IA W the procedures established in the documents referenced in SOW paragraph 1.4 which are listed in order of precedence. Latest revisions of all Manuals shall apply. The information contained in this section is not intended to be all inclusive nor to detract from or modify procedures outlined in the Manuals. The Contractor shall use "best commercial practice" unless it is in conflict with the Manuals. Where an application of "best commercial practice" is in conflict with these Manuals, the Contracting Officer (KO) may approve deviation from requirements. The Export

Control Act applies to each technical manual specified herein.

1.4.1 Naval Air Systems Command Depot Maintenance Technical Manual A l-867QA-MDB-000 dated

January 31, 1995, change 3

1.4.2 Naval Air Systems Command Depot Maintenance Technical Manual A l-868QA-MDB-00O dated

December 3 I, 1994, change 4

1.4.3 Overhaul and Repair Instruction (ORI) 70100-093

1.4.4 ORI 70 I 00-097

1.4.5 ORI 70100-018-VI

1.4.6 ORI 70 I 00-022-1

1.4.7 All SAC shop, inspection, repair, or other OEM Component Maintenance Manuals (CMM) and revisions as applicable to the Rotor Blades.

1.4.8 All SAC service bulletins, amendments, modifications, and specifications as applicable to the

Rotor Blades.

1.4.9 Federal Aviation Administration (FAA) Advisory Circular 43-205, Guidance for Selecting

Chemical Agents and Processes for Depainting and General Cleaning of Aircraft and Aviation

Products

1.4.10 ALC Material Disposal Procedures Instruction 4100.0

1.4.11 Occupational Safety and Health Standards (OSHA) 1910.1025 (Lead)

1.4.12 OSHA 1910.1026 (Chromium VI)

1.4.13 OSHA 1910.1027 (Cadmium)

1.4.14 Military Standard (MIL-STD) MIL-STD-129R, Military Marking For Shipment and Storage

1.4.15 MIL-STD-2073-IE, Standard Practice For Military Packaging

2.0 Specific Tasks

2.1 Rotor Blades Overhaul Services

The Contractor shall perform Rotor Blade Overhaul Services IAW the SOW and Federal Aviation

Regulations Parts 43 and 145. The Contractor shall perform a thorough visual and technical inspection of each Rotor Blade requiring overhaul and correct all deficiencies found. This shall include replacement of broken parts and the removal of any foreign matter or corrosion. Parts found to be defective shall be replaced with new parts. A DD Form 1577-2, Unserviceable Tag-Material, or a CG-1577-A (11-90), Unsatisfactory Report Tag, will be attached to each Not Ready for Issue (NRFI) Rotor Blade describing faults. Once the Rotor Blade has been overhauled to like new condition, the Contractor shall remove the unserviceable tag from the Rotor Blade.

2.2 Validation of Hours on Rotor Blade

The Rotor Blades are life limited components. The Contractor shall validate the hours for each Rotor

Blade prior to induction. If any Rotor Blade has less than 2,000 hours of life remaining, the Contractor shall contact the KO in writing for written authorization before inducting the Rotor Blade.

2.3 Determination of Minor Overhaul Versus Major Overhaul

Upon inspection of the Rotor Blade, the Contractor shall recommend classifying the overhaul as a minor overhaul or a major overhaul.

Rotary Wing Blade Classification:

Rotary Wing Blades recommended for minor overhaul include but are not limited to - tip block and tip cap corrosion, minor wire mesh corrosion, patch, plug replacements, cuff repair, and laminate repair.

Rotary Wing Blades recommended for major overhaul include but are not limited to - all minor overhaul actions, heater mat replacement, laminate replacement, and cuff replacement due to damage.

Rotary Wing Blades recommended for scrap include, but are not limited to the following - spar damage, damage beyond overhaul limitations, and life limit of the spar.

Rotary Rudder Blade Classification:

Rotary Rudder Blades recommended for minor overhaul include but are not limited to - plug replacement and patch repair. Rotary Rudder Blades shall have poly strip and supplemental poly strip in accordance with Sikorsky ORI 70100-018-Vl and 70100-022-1.

Rotary Rudder Blades recommended for major overhaul include but are not limited to - all minor overhaul actions and horn replacement.

Rotary Rudder Blades recommended for scrap include, but are not limited to the following -excessive water in paddles, spar delaminated, spar damage, damage beyond overhaul limitations, and life limit of the spar.

2.4 Corrosion Issues

USCG aircraft operate primarily in a saltwater environment and are subject to corrosion. Corrosion is expected on the Rotor Blades to be overhauled under this contract. During inspection and functional test, the presence of corrosion in a component or subcomponent thereof shall constitute reason for a more thorough disassembly and inspection. Should corrosion be found, disassembly shall be made only to the extent necessary to remove corrosion or replace the part(s) affected. Corroded parts shall be replaced except in those cases where removal of corrosion from a part will impair efficiency or safe operation of the part. Corrosion removal and treatment of affected areas shall be accomplished in accordance with the applicable technical manual specifications and drawings.

2.5 Replacement Parts

All parts noted in the respective technical manual shall be replaced as required. Replacement parts found to be defective shall be replaced as specified in the respective technical manual or as otherwise authorized in writing by the KO. All parts and replaced defective parts shall be new. A copy of the Contractor's work order, listing all replacement parts, shall be provided for each Rotor Blade. The Contractor shall maintain a copy of replacement parts for inspection by the USCG for a minimum of twenty-four (24) months after delivery.

2.6 Unusual Damage Evaluation

Rotor Blades which are considered by the Government to be unusually damaged shall be shipped to the

Contractor for an Unusual Damage Evaluation. The Firm Fixed Price (FFP) proposed for overhaul shall not include assemblies and components which have been cannibalized of repairable parts or severely damaged due to mishandling, crash damage, or acts of nature. These items shall be evaluated at the FFP specified in the Schedule of Services for Unusual Damage Evaluation.

When Rotor Blades are received for overhaul, but upon inspection obvious misuse, cannibalizing, or severe damage due to mishandling or crash damage is found, or the component requires a laminate replacement, heater mat replacement and cuff replacement, the Contractor shall, within thirty (30) days of induction of the Rotor Blade, notify the KO in writing that the Rotor Blade is considered unusually damaged and requires an Unusual Damage Evaluation.

When a Rotor Blade is processed for Unusual Damage Evaluation, the Contractor shall within thirty (30) calendar days of induction of the Rotor Blade, submit an inspection condition report and rework price proposal, covering all parts and repairs needed to return the Rotor Blade to airworthy condition which meets the OEM's minimum performance specification. The proposal shall contain the Nomenclature, National Stock Number (NSN), Part Number (PN), and Serial Number (SN) of the Rotor Blade, a listing of labor, replacement parts and materials required with costs substantiated with invoices or catalog pricing, and the time needed to effect the overhaul. The proposal shall not include the work involved in the tear down and inspection as this is covered by the FFP specified in the schedule for Unusual Damage

Evaluation. Within thirty (30) calendar days of receipt of the inspection condition report and proposal, the

KO shall either initiate negotiations for a FFP with the Contractor or deny authorization for the rework, based on information in the report and any other information which may be available. Upon mutual agreement as to price and delivery terms, a task order modification will be issued to require rework at the agreed upon terms. If rework is not desired, the KO shall provide the Contractor with disposition instructions for the un-reworked item. The item will be returned to the USCG in disassembled and unserviceable condition. The Contractor shall be entitled only to the FFP rate specified at Schedule of

Services for Unusual Damage Evaluation.

2.7 Environmental Requirements

All parts must be thoroughly cleaned in accordance with applicable CMM or FAA Advisory Circular 43-

205, Guidance for Selecting Chemical Agents and Processes for Depainting and General Cleaning of

Aircraft and Aviation Products, to ensure they are as free as practicable of all hazardous dust to include hexavalent chromium, cadmium, lead, etc., prior to being returned to the USCG. The USCG may take random samples of parts to ensure they are as free as practicable of all hazards. Information on these hazards can be found in Occupational Safety and Health Standards 1910-1025 (Lead), 1910.1026

(Chromium VI) and I 910-1027 (Cadmium).

2.8 Service Bulletins, Modifications, Engineering Change Proposals, Local Engineering Change

Proposals Time Compliance Technical Orders

The KO shall notify the Contractor in writing of Rotor Blades requiring incorporation of a service bulletin, modification, Engineering Change Proposal (ECP), Local Engineering Change Proposal (LECP), or Time

Compliance Technical Orders (TCTO). Upon receiving such notice, the Contractor shall submit within thirty (30) calendar days, a FFP proposal to incorporate the change. The proposal shall contain a breakdown of material and labor costs. The negotiated price for incorporation of a change shall apply only to those Rotor Blades for which the Contractor has incorporated a required change, not those for which the change has been previously incorporated. Upon agreement of a negotiated price and issuance of a contract modification to reflect the change, the change shall be incorporated into each subsequent Rotor Blade received at the overhaul facility if the change has not already been incorporated. When incorporation of a change affects the PIN of the Rotor Blade contained in the schedule, the new PN and NSN (if applicable) will be added to the contract via modification.

2.9 Changes to Applicable/Compliance Documents and Obsolete Parts/Processes

The Contractor shall notify the KO in writing when changes are made to the applicable/compliance documents referenced in SOW 1.4. Such notification shall include the nature of the changes and details sufficient for the USCG to evaluate the scope and impact of the change. In addition, when the Contractor receives a Rotor Blade for which certain parts or processes have become obsolete, the Contractor shall within sixty (60) calendar days after receipt of the Rotor Blade notify the KO in writing and submit rationale and verification of any specification change or obsolete part or process, and a written estimate of the effort required to accomplish the overhaul. Such estimates shall include nomenclature, NSN, PN, price, and quantity of replacement parts and labor. The Contractor shall substantiate price of parts with invoices or catalog pricing. The Contractor's delivery obligation for the components identified shall be suspended as of the date of notice to the KO. The KO will within thirty (30) calendar days after receipt of the

Contractor's written estimate, make a written determination as to the disposition of the Rotor Blade. A new delivery date will be negotiated. Written approval to perform IAW the revised specifications or drawings and obsolete part processes must be obtained from the KO prior to commencement of work. The USCG reserves the right to waive any specifications.

2.10 Paint Scheme

All Rotor Blades overhauled shall be painted with the USCG's high visibility paint scheme. The Rotary

Wing Blade shall be painted in accordance with ORI 70100-093 and the Rotary Rudder Blade shall be painted in accordance with ORI 70100-097. All Rotor Blades shall have the same configuration regarding the position of the high visibility bands so as to form concentric circles while in flight.

2.11 Asset Computerized Maintenance System

The Rotor Blades are CSI.SN tracking shall be used for validating the correct Rotor Blades were received at the Contractor's overhaul facility and returned to the USCG. Upon receipt of the Rotor Blade from the

USCG, the Contractor shall verify the Rotor Blade received IAW the TO issued. Verification shall include verifying the TO number and SN of each Rotor Blade received. Should a discrepancy be identified, the

Contractor shall notify the KO in writing of the discrepancy.

The USCG utilizes a SN tracking system and places high priority on parts integrity within aircraft components. As a result, any part which is determined to be in a serviceable condition as a result of inspection and functional testing shall be reused in the Rotor Blade from which it was removed, if practical, with the exception of parts specifically replaced during the overhaul as required by the directives specified within the contract.

The Rotor Blades are Asset Computerized Maintenance System (ACMS) tracked. ACMS is a computerized system used to record maintenance of aircraft components and assemblies. The CSI Rotor

Blades are subject to the ACMS requirements contained in this SOW. All Rotor Blades are SN tracked and shipped to the Contractor's facility with a Significant Component History Record (SCHR) and a

Component Repair Record (CRR). The Contractor's responsibilities with ACMS consist of submission of required forms as outlined herein. The Contractor shall verify the SCHR and CRR and ensure they correspond with the Rotor Blade's PN and SN. All discrepancies shall be reported in writing to the KO prior to induction. The Contractor shall complete the CRR. The original copy of the CRR shall be mailed to:

Engineering Services Division (ESD)

ACMS Tracking, Bldg. 78

Aviation Logistics Center

Elizabeth City, NC 27909-5001

A copy of the CRR shall be shipped with the overhauled Rotor Blade and affixed to the outside of the shipping container. The Contractor shall maintain a copy of each complete CRR for a period of ninety

(90) days.

2.12 Condemned Parts and Material

All non-repairable/scrap parts replaced during overhaul/modification including the end item shall be scrapped (rendered unusable to the point they cannot be returned to service) in accordance with the approved Sikorsky Aircraft scrap procedure.

The Contractor shall submit Standard Form 1428 to ALC. This form shall include the serial number if applicable, NIIN, part number and quantity and be dated and signed by SAC.

When ALC approves Rotor Blades for scrapping, the Contractor shall return the Rotor Blade, tip cap (if applicable) and Rotor Blade can to ALC within sixty (60) calendar days. TAC code will be provided by the Coast Guard for return shipment of the tip cap and container.

2.13 Beyond Economical Repair

In the event a Rotor Blade cannot be overhauled to like new condition and is found to be Beyond

Economical Repair (BER), the Contractor shall immediately stop working on the Rotor Blade and notify the KO in writing. The Contractor's written notification shall include the following information at a minimum: contract number, TO number, Contract Line Item Number (CLIN), Nomenclature, NSN, PN, SN, and a brief description supporting the determination. The KO will provide disposition instructions via modification within thirty (30) calendar days after receipt of notification. The

Contractor shall be entitled to compensation for Scrap only. When the Contracting Officer has authorized a Rotary Wing Blade for scrapping, the Contractor shall return the shipping container to the USCG ALC within sixty calendar days after receipt of the modification authorizing scrap.

2.14 Quarterly Audits

The ALC conducts quarterly audits validating Blades at commercial vendor facilities. The Contractor shall follow the instructions provided each quarter by the ALC and comply with its instructions. The

Contractor's role shall be to validate each rotor blade identified by SIN by the ALC. Validation shall take place the same date as the audit.

2.15 Customer Service and Support

The Contractor shall provide resolution to Government questions/concerns/inquiries within three (3) business days of receipt of email or phone call.

3.0 Other Applicable Conditions

3.1 Ordering Period

The ordering period for this contract consists of one (1) base period of twelve (12) months.

3.2 Place of Performance

The place of performance will be the Contractor's facilities.

3.3 Delivery

Delivery shall be ninety (90) calendar days after induction. Induction of at least the amount to meet the delivery schedule of six (6) Rotary Wing Blades and five (5) Rotary Rudder Blades per month shall take place no later than twenty (20) calendar days after receipt of the Rotor Blades at the Contractor's facility. If a modification is approved requiring Rotor Blades to have a major overhaul completed than the delivery date shall be extended ninety (90) days from the effective date of the modification. All other delivery date extensions shall be at Contracting Officer's discretion. The Contractor shall be required to overhaul and deliver at least six (6) Rotary Wing Blades and five (5) Rotary Rudder Blades per month. If the number of repairable Rotor Blades in the Contractor's possession falls below what is needed to maintain the contract delivery rate, the Contractor will be allowed a one for one exception to the delivery requirement.

3.4 Post Award Conference

The Contractor agrees to attend any post award conference convened by the contracting activity in accordance with Federal Acquisition Regulation (FAR) Subpart 42.5, Post Award Orientation. The KO, COR, and other Government personnel, as appropriate, may meet periodically but not less than annually with the Contractor to review the Contractor's performance. These meetings shall be held via teleconference unless otherwise mutually agreed to. At these meetings the KO and COR will apprise the

Contractor of how the Government views the Contractor's performance and the Contractor will apprise the

Government of problems, if any, being experienced. Appropriate action shall be taken to resolve outstanding issues. These meetings shall be at no additional cost to the Government. The written minutes of these meetings, prepared by the COR, shall be signed by the Contractor's representative and the

Government's representative. Should the Contractor not concur with the minutes, the Contractor shall state, in writing, to the KO any areas of disagreement within four (4) calendar days of minutes receipt.

3.5 General Report Requirements

3.5.1 Monthly Production Report

The Contractor shall submit a monthly production report to the COR no later than the tenth (10th) business day of each month. The production report shall provide the status of CLINs received, being overhauled, and shipped during the monthly reporting period. Any format is acceptable as long as the report provides the following information; nomenclature, PN, NSN, SN, TO and CLIN, receipt date at Contractor's facility, date scheduled to be inducted, date inducted, date scheduled for delivery, total days in work, if the part is late, and any comments.

3.5.2 Material Inspection and Receiving Report

At the time of each delivery of services under this contract, the Contractor shall prepare and furnish to the

Government a properly completed DD Form 250, Material Inspection Receiving Report which will be used as a packing slip. The packaging slip shall include the following information: (1) NSN, (2) PN, (3)

Nomenclature, (4) SN, (5) Contract Number, (6) TO number, (7) CUN, and (8) quantity. Two copies of the packaging slip shall be submitted with the shipment. One copy shall be inside the shipping container and one copy shall be attached to the outside of the shipping container.

3.6 Contracting Officer's Representative (COR)

The COR shall be identified by separate letter. The COR monitors all technical aspects of the contract and assists in contract administration. The COR is authorized to perform the following functions: assure that the Contractor performs the technical requirements of the contract; perform inspections necessary in connection with contract performance; maintain written and oral communications with the Contractor concerning technical aspects of the contract; issue written interpretations of technical requirements, including Government drawings, designs, and specifications; monitor Contractor's performance and notify both the KO and Contractor of any deficiencies. A letter of designation issued to the COR, a copy of which is sent to the Contractor, states the responsibilities and limitations of the COR, especially with regard to changes in price, estimates or changes in delivery dates. The COR is not authorized to change any of the terms and conditions of the resulting contract.

3.7 Contract Administration Data

Only warranted KOs are authorized to issue and modify any contract, approve changes in any of the requirements, or obligate funds. Notwithstanding any term or condition contained elsewhere in the contract, the authority to modify the contract remains solely with the KO. If the Contractor makes any contract changes at the direction of any person other than the KO, the change will be considered to have been made without authority and no adjustment will be made in the contract to cover any increases in charges that may result. The KO has the authority to perform any and all post-award functions in administering and enforcing a contract IA Wits terms and conditions.

The COR will represent the KO in the administration of technical details within the scope of the contract.

The COR is also responsible for the final inspection and acceptance of all contract deliverables and reports, and such other responsibilities as may be specified in the contract. The COR is not otherwise authorized to make any representations or commitments of any kind on behalf of the KO or the

Government. The COR does not have authority to alter the Contractor's obligations or to change the contract specifications, price, terms or conditions. If, as a result of technical exchanges, it is desirable to modify contract obligations or the specification, changes will be issued in writing via modification and signed by the KO. The KO will designate individuals to act as the COR under this contract; such representatives will be designated by letter of appointment from the KO at time of contract award.

The Contractor shall bill not more frequently than once monthly per task order. To constitute a proper invoice, the invoice shall include those items cited in Paragraph (g) of FAR 52.212-4, "Contract Terms and

Conditions - Commercial Items." In addition, the final invoice submitted under each awarded TO, if any, shall be clearly marked and labeled as the final invoice. A copy of the invoice and all supporting documentation shall be submitted to the following address:

Email: ALC-FISCAL@USCG.MIL (preferred method) or mailto:ALC-FISCAL@USCG.MIL

Chief, Fiscal Branch

USCG, ALC

1664 Weeksville Rd., Bldg 63

Elizabeth City, NC 27909

Courtesy copies of invoices shall be provided to the COR and Contract Specialist (CS) at the same time invoices are submitted to the payment office. For payment status or other invoice related inquiries please call 252-335-6852.

3.8 Quality Control

Quality Control (QC) and the delivery of quality services is the responsibility of the Contractor. The

Contractor shall develop, implement and maintain an effective Quality Control System which includes a written QCP. The QCP shall implement standardized procedure/methodology for monitoring and documenting performance to ensure all requirements are met. The Contractor's QCP shall contain a systematic approach to monitor operations to ensure acceptable services are provided to the Government.

The QCP, at a minimum, shall address continuous process improvement; identify the roles Contractor employees are responsible for in execution of the QCP, include any checklists that will be used, describe how quality control program files will be maintained, indicate any reports and their content that will be provided to the Government, procedures for scheduling, conducting, and documentation of inspection, discrepancy identification and correction, corrective action procedures to include procedures for addressing Government discovered non-conformances, procedures for root cause analysis to identify the root cause and root cause corrective action to prevent re-occurrence of discrepancies, procedures for trend analysis, and procedures for collecting and addressing customer feedback/complaints. After acceptance of the QCP the Contractor shall receive the KO's acceptance in writing of any proposed change to their QC system.

3.9 Warranty

The Contractor's standard commercial warranty, including extended warranties, provided to the

Government at no additional cost, shall apply. In accordance with FAR 46.706(b)(5), Markings, the

Contractor shall stamp or mark the supplies delivered or otherwise furnish notice with the supplies of the existence of the warranty. The purpose of the marking or notice is to inform Government personnel who store, stock, or use the supplies that the supplies are under warranty. Markings may be brief but should include:

a brief statement that a warranty exists, the substance of the warranty, its duration, and who to notify if the supplies are found to be defective.

For commercial items the Contractor's trade practice in warranty marking is acceptable if sufficient information is presented for supply personnel and users to identify warranted supplies.

In accordance with FAR 46.706(a), Warranty Terms and Conditions, the warranty shall clearly state:

Exact nature of the item and its components and characteristics that the Contractor warrants;

Extent of the Contractor's warranty including all the Contractor's obligations to the

Government for breach of warranty;

Specific remedies available to the Government; and

Scope and duration of the warranty.

Acceptance of the standard commercial warranty does not waive the Government's rights under any

"Inspection" clause that may be in the contract nor does it limit the Government's rights with regard to the other terms and conditions of this contract. In the event of a conflict, the terms and conditions of the contract shall take precedence over the standard commercial warranty. The standard commercial warranty period shall begin upon final acceptance of the applicable material and/or services listed in the Schedule.

The warranty shall cover a minimum period of twelve (12) months.

3.10 Laws and Regulations

The Contractor shall be knowledgeable of and meet or exceed compliance with all applicable federal and state laws and regulations and certain local laws and ordinances regarding environmental protection. In the event environmental laws/regulations change during the term of this contract, the Contractor is required to comply as such laws come into effect.

4.0 Acronyms, Term and Definitions

4.1 Acronyms

Acronym Description

ACMS Asset Computerized Maintenance System

ALC Aviation Logistics Center

AOG Aircraft On Ground

AQL Acceptable Quality Level

ARO After Receipt of Order

BER Beyond Economical Repair

CLIN Contract Line Item Number

CMM Component Maintenance Manual

COC Certificate Of Conformance

COR Contracting Officer's Representative

CPARS Contractor Performance Assessment Reporting System

CRR Component Repair Record

CS Contract Specialist

CSI Critical Safety Item

DCMA Defense Contract Management Agency

OHS Department of Homeland Security

DMWR Depot Maintenance Work Requirements

DOD Department Of Defense

ECP Engineering Change Proposal

ESD Engineering Services Division

FAA Federal Aviation Administration

FAR Federal Acquisition Regulation

FFP Firm Fixed Price

GBL Government Bill of Lading

GE General Electric Aviation

JAW In Accordance With

KO Contracting Officer

LECP Local Engineering Change Proposal

LPTA Lowest Price Technically Acceptable

MIL-STD Military Standard

MRR Medium Range Recovery

NAVAIR Navy Aviation

NRFI Not Ready for Issue

NSN National Stock Number

OEM Original Equipment Manufacturer

OSHA Occupational Safety and Health Standards

PN Part Number

PQDR Product Quality Deficiency Report

PRS Performance Requirements Summary

SN Serial Number

SOW Statement Of Work

QASP Quality Assurance Surveillance Plan

QC Quality Control

QCP Quality Control Plan

RFI Ready For Issue

SAC Sikorsky

SCHR Significant Component History Record

TCTO Time Compliance Technical Order

TO Task Order

USCG United States Coast Guard

4.0 Definitions

Term Definition

Overhaul

The process of disassembling the component, inspecting, cleaning, and replacing components in accordance with the latest revision of the manuals specified within the contract. It includes repair, replacement or servicing as necessary followed by reassembly and testing. Upon completion of the overhaul process, the component or end article will be capable of performing its intended service life or tour.

Unusual damage

Items that have been severely damage due to mishandling, mechanical failure, crash damage, or in which repairable assemblies have been cannibalized.

Scrap To render a component unusable for its intended purpose. This applies to components that have been determined to be BER.

Cannibalized

Components for which integral parts are missing when the component is provided to the Contractor for overhaul. Components covered in this contract which are received by the Contractor missing consumable parts are not considered to be cannibalized.

Modifications

A change in the basic structure of the part or component parts thereof. To make basic fundamental changes on items specified in the schedule of components when required by the KO. These modifications will be initiated by the OEM service bulletins or ALC engineering changes.

Rework

To rework and /or overhaul components in accordance with the manufacturer's minimum performance specifications by replacing and reworking parts in accordance with the OEM Current specifications and procedures.

New

Replacement

Parts

Defined as parts having never been used, having traceability to the OEM.

AOG

An Aircraft On the Ground (AOG) condition, indicating that an otherwise operational aircraft is temporarily grounded awaiting overhaul and return of the component. This condition requires the component be handled as a high priority, and that its return to be expedited.

5.0 Government Furnished Resources

The Government will not furnish any resources to the Contractor in support of this contract.

6.0 Contractor Furnished Property

The Contractor shall furnish all necessary parts, material, labor, tooling, overhaul manuals, test equipment, engineering services, management, and facilities to test, evaluate, and overhaul the Rotor Blades IAW this

SOW to fulfill the requirements of this contract.

7.0 Packaging and Marking

The Contractor shall comply with MIL-STD-129 (latest version), Military Marking for Shipment and

Storage, with the following exceptions:

a. Each Rotor Blade shall be individually packed in a separate approved shipping container. The

Contractor shall ensure each overhauled Rotary Wing Blade and Rotary Rudder Blade is shipped in an approved shipping container. The approved shipping container for the Rotary Wing Blade is container

NSN 8145-01-142-8789, PIN SPD 70150-500 or SPB 82-N0702-SY and the Rotary Rudder Blade is an

OEM authorized wooden crate.

b. Each individual container shall be labeled on the outside with NSN, PN, SN, Quantity, Nomenclature, Contract Number, TO number, and CLIN on a permanent label.

c. The internal packaging material shall be sufficient to prevent damage during shipment, handling, and storage. Each component shall be packaged to protect against electrostatic damage as found in MIL-

STD-2073-1D, Preservation Methods, and dated IO May 2002 with Change Notice l. Preservation protection must be sufficient to prevent corrosion, deterioration, or decay during storage for a period of not less than one (I) year.

d. Packaging material shall not consist of the following materials; popcorn, shredded paper, Styrofoam of any type, or peanut style packaging.

e. Each container shall be marked with a notice of warranty. The notice must include a brief statement that a warranty exists, the substance of the warranty, the duration of the warranty, and who to notify if the supplies are found to be defective.

f. Direct shipments of "A" condition asset to USCG Air Stations when an AOG situation arises may be necessary. An "A" condition occurs when there is no stock of a Rotor Blade on hand and the Rotor

Blade is shipped directly from the Contractor to the air station.

g. When there is an Aircraft on the Ground (AOG), the Contractor shall expedite the repair and return the required components IAW the established AOG plan. The outside of the shipping container shall be marked "AOG" in highly visible lettering, at least 2" inches in height.

The KO will notify the Contractor when noncompliance with any of the requirements set above is noted so that corrective action may be taken. The Contractor shall within 24 hours after such notification, give the

KO disposition instructions for such items. If the Contractor elects for the USCG to correct the deficiency, the USCG may assess the actual costs for correcting the deficiency. The Contractor agrees that the total costs may be deducted from the invoiced amount prior to payment. An estimate of the actual cost for the

USCG to correct noted deficiency(s) will be provided at the time the Contractor is notified of any noncompliance. The Contractor may also elect to correct the deficiency at its own expense.

8.0 Inspection and Acceptance

An OEM Certificate of Conformance (COC) is required for all Rotor Blades delivered under this contract.

The OEM COC shall be signed by an authorized official of the approved source and shall specify the nomenclature, manufacturer's part number and date of manufacture. These forms shall be packaged with each Rotor Blade and copies shall be included with the invoice. The Government considers Rotor Blades

Ready For Issue (RFI) upon acceptance. Rotor Blades determined to be Not Ready For Issue (NRFI) upon installation may be returned to the Contractor with a Product Quality Deficiency Report (PQDR) for rework/evaluation/investigation as mutually agreed upon. The Contractor shall report all findings of the evaluation/investigation to the KO within thirty (30) calendar days after receipt of the Rotor Blade identified as having a quality deficiency. Failure to submit the appropriate certificates shall constitute an improper invoice and will result in nonpayment.

Inspection and Acceptance will be performed by the Defense Contract Management Agency (DCMA) and documented on the DD Form 250, Material Inspection Receiving Report. Rotor Blades will be examined at destination for quantity, damage in transit, and verification that all required documentation has been provided.

9.0 Deliverables

All deliverable data identified in the table below will be submitted to the Government for approval as specified therein. The Contractor shall deliver all technical information in a suitable format and media as specified by the COR. Deliverables shall include both paper copy and electronic media as specified by the

COR. The Contractor shall develop and submit all required deliverables as specified in the SOW. The

COR will review deliverables prior to acceptance and provide the Contractor with an e-mail that provides documented reasons for non-acceptance. If the deliverable is acceptable, the COR will send an e-mail to the Contractor notifying it that the deliverable has been accepted. The COR will have the right to reject or require correction of any deficiencies found in the deliverables that are contrary to the information contained in the Contractor's accepted proposal. In the event of a rejected deliverable, the Contractor will be notified in writing by the COR of the specific reasons for rejection. The Contractor may have an opportunity to correct the rejected deliverable and return it per delivery instructions. The COR will have ten (10) business days to review deliverables and make comments. The Contractor shall have seven (7) business days to make corrections and redeliver.

In the event the Contractor anticipates or encounters difficulty in complying with the delivery schedule or date, they shall immediately notify, in writing, the KO and COR. All requests for time extensions shall be in writing and shall include substantiation of the need for such time extension(s) IAW FAR 52.212-4(t)

Excusable delays.

SOW

Reference

Deliverable/Event Frequency Submit to Due Date

2.6 Unusual Damage

Evaluation As Required COR/KO

Within thirty (30) calendar days of receiving item at

Contractor's facility.

3.4 Post Award

Conference Annually

Not

Applicable Annually

3.5.1 Monthly Production

Report Monthly COR/KO I 0th business day of each month.

3.5.2

Material Inspection and Receiving Report As Required COR/KO Included with each delivery.

2.11 Component Repair

Record As Required ESD

Provided with each overhaul. One copy. of the CRR shall be sent with the component and a copy shall be mailed to:

Engineering Services Division (ESD) ACMS

Tracking, Bldg. 63

Aviation Logistics Center Elizabeth City, NC

27909-5001

10.0 Shipping Instructions

Rotor Blades being returned to the Government under this contract shall be shipped to the following address unless indicated otherwise on the TO:

USCG Aviation Logistics Center (Z50100)

1664 Weeksville Road

Receiving Section, Bldg 63

Elizabeth City, NC 27909-5001

Mark for: (Applicable TO Number and CLIN)

AOG will necessitate a special schedule. When the KO notifies the Contractor of an AOG situation, the

Contractor shall provide a response within twenty four (24) hours of the notification. The Contractor's response shall provide status of the Rotor Blade needed to satisfy the AOG situation and the requirements to expedite shipment. The Contractor shall ship the Rotor Blade directly to the USCG Air Station as quickly as possible. Material shall be shipped by the fastest traceable means, e.g. airfreight "next day delivery."

11.0 SAC Single Process Initiatives (SPl's)

Block Changes

12.0 Special Contract Requirements

12.1 Government Furnished Property

The Contractor is authorized in the performance of this contract, on a no charge-for-use basis, the use of

Government-owned special tooling, special test equipment, and/or agency peculiar property acquired and/or furnished under contracts specified in Memorandum of Understanding (MOU) GPUA-07

Government Property use Agreement dated December 31, 2009 between SAC and the U.S. Government.