B1_LOA_PBL_TRD_w_attachs.pdf

B-1B LOA PBL TRD - Main

Technical Requirements Document (TRD) B-1B Low Observable Antenna (LOA)

Performance-Based Logistics (PBL) Contract

April 2022

Air Force Material Command (AFMC)

Air Force Sustainment Center

Prepared by:

B-1B LOA PBL Integrated Product Team (IPT)

Tinker Air Force Base, Oklahoma 73145/Hill Air Force Base, Utah 84056

Contents

1.0 Introduction

2.0 Background

3.0 Purpose

4.0 Summary of Need

4.1. Overall Mission Area

4.2. Performance Metrics - Material Availability (MA)

4.2.1. Price Adjustments for Less Than Full Performance

4.3. Depot Capability Improvements (Increase Depot Repair to Mandated Levels)

4.4. Price Per Flight Hour (PPFH)

4.5. Reliability Tracking and Reporting

4.6. Program Management Reviews (PMRs)

4.7. Government Furnished Property (GFP)

4.8. Defense Logistics Agency (DLA) Drawdown

5.0 Government Furnished Data

5.1. AF Quarterly Data

5.2. AF Monthly Data

Appendices

1.0 Introduction

This Technical Requirements Document (TRD) establishes requirements for a Performance- Based Logistics (PBL) contract in support of the Air Force Sustainment Center (AFSC) Tinker Air Force Base (TAFB), Oklahoma. This contract shall provide availability of serviceable end items in support of the B-1 Low Observable Antenna (LOA) that are sole source to Northrop Grumman Corporation. This PBL effort integrates maintenance, supply management & material support, engineering & technical functions necessary to provide serviceable assets at a level of availability determined by the Air Force.

This PBL will be a requirements-type contract with a total of 10 years (5 year basic / one 5-year option). Northrop Grumman Corporation (NGC) will be required to meet the contractual metrics in accordance with the TRD in support of the B-1 LOA. The five-year base may need to utilize a combination of contracting payment methods to achieve an accurate fixed price agreement based on actual procurements for all items contained in Attachment 1. Any future configurations of these National Item Identification Numbers (NIIN) fielded during the contract performance period shall also be supported by this contract. Placement of orders is subject to the availability of funds and the ordering provisions of the contract. This period should also be used to establish historical and forecast data for in order to price future PBL 5 year options using a Firm-Fixed Price (FFP model).

The objectives of this contract are to: (1) improve parts availability; (2) increase depot performance (e.g. process, throughput, flow, and testing); (3) increase and/or maintain reliability;

and (4) achieve affordable approach to these improvements. All work must be accomplished in accordance with (IAW) the requirements specified herein. Upon contract award, this TRD and its Appendices shall become contractually binding.

The Contractor’s performance shall include utilizing the Air Force LOA repair and overhaul facility at Tinker AFB through a Public Private Partnership (PPP), through which utilization shall result in maintaining Government core capability IAW Title 10 of the U.S. Code (10 USC 2464) and Department of Defense (DoD)/Air Force Instructions. The touch labor for overhaul/repair of NGC end items and sub-components shall remain organic to the maximum extent possible, as defined in the Implementation Agreement (IA).

2.0 Background

This PBL will address the four major issues associated with these parts. The current constraints prioritized by impact are as follows: 1) lack of piece parts availability, 2) inefficient/ineffective test and support equipment, 3) technical issues requiring on-site support, and 4) out-of-date technical data. The program will also include ancillary support requirements that are captured within the various appendices of this TRD.

3.0 Purpose

This TRD establishes the minimum technical requirements for all work to be performed under this PBL contract. Attached appendices provide specific requirements for all functional work areas.

4.0 Summary of Need

Material availability (MA) improvements in the Air Logistics Center (ALC) repair depots are necessary in order to better support the warfighter’s need for B-1 LOAs. Due to budgetary constraints and increased material support costs required to support these aging weapon systems, Contractor support under a PBL contract is needed to mitigate supportability in the most cost effective manner.

4.1. Overall Mission Area

Under the PBL approach, weapon system sustainment is procured as an integrated package.

The contract approach is based upon output measures: specifically availability, reliability, process improvements, technical data improvements, technology insertion and training. This PBL shall support requirements of the United States Air Force. The specific range of support between the LOA Compact Range facility and LOA Shop Replaceable Unit (SRU) repair is reflected in Attachment 1.

4.2. Performance Metrics - Material Availability (MA)

The Contractor is required to meet the performance goals and objectives IAW Appendix B.

4.2.1. Price Adjustments for Less Than Full Performance

If the Contractor fails to meet the performance requirements, the Contractor will be assessed a downward price adjustment IAW the provisions outlined in Appendix B.

For the first 2 years of the PBL contract, B-1 LOA repair/overhaul shop reconstitution will be the focus as well as getting the LOAs healthy and operational.

4.3. Depot Capability Improvements (Increase Depot Repair to Mandated Levels) In order to meet the required metrics within the specified phase requirements, the Contractor may reallocate an agreed upon percentage of the production to their facility. The Contractor is then required to assist the Oklahoma City Air Logistics Complex (OC-ALC) in increasing its production hours to the required weapon system levels by increasing production. While the determination of the workload split will be a collaborative effort with the OC-ALC depot, the Contractor must ensure the necessary process improvements are put in place to accommodate the increased AF depot production goals and ensure the total performance requirements will be met. The depot repair requirements for each weapon system and the performance time frames for meeting these requirements are specified in Appendix B.

In order to improve supportability for the NIINs in Attachment 1, the test and support equipment may also be needed in support of contract performance. The Contractor shall ensure that all technical improvements, test equipment, CPINs, submitting drawings into JEDMICS, and associated data become property of the Government upon contract completion.

The following 422 Supply Chain Management Squadron (SCMS) Consolidated Sustainment Activity Group (CSAG) funded LOA sustaining engineering projects have been initiated to determine key LOA depot repair root cause issues and mitigate Phase Control Module (PCM) obsolescence issues; all of which are intended to dovetail into the PBL contract as described below.

a) B-1 LOA Range Reconstitution FY21 project (Period of Performance (PoP) Sep 21-Sep

23) – will develop a complete and comprehensive depot tech order and identify all test gaps (equipment, TPSs, etc.). Resolution of the test gaps will be addressed under the PBL contract, and time phased based on mutually agreed timeline

b) B-1 LOA PCM Obsolesce FY22 project (late FY22 award with 2 year PoP) – will determine resolution of all obsolescence impacting PCM manufacture. Qualification of the PCM solution will be accomplished under the PBL contract.

The Contractor will work closely with the AF depot to ensure that this and all subsequent projects are adequately accomplished and lead to improved depot capability. The Contractor shall ensure that all depot reconstitution improvements and associated data become property of the Government upon contract completion.

4.4. Price Per Flight Hour (PPFH)

Under the PBL Price Per Flight Hour (PPFH) approach, the Government will pay the Contractor a fixed price per flight hour to provide availability of supply by delivering serviceable Air Force managed spares into the Item Manager’s account in order to satisfy customer field and depot demands. For each NIIN, the AF will calculate a target number of flying hours for each contract year. At the completion of each contract year, the AF and Contractor will reconcile to the actual number of flight hours reported. For more information regarding the PPFH and reconciliation, reference Appendix C of this TRD.

4.5. Reliability Tracking and Reporting

The Contractor is required to track reliability performance for each AF NIIN. The Contractor shall identify any unusual failure trends or abnormal failures due to incorrect manufacture, use, or maintenance for the items covered under the scope of this contract and provide a report on the gathered data semi-annually (IAW Contract Data Requirements List (CDRL) A001). The reliability report will include data for each NIIN such as serial numbers, date of remanufacture/manufacture, date of return, reason of failure (i.e. wear, corrosion, etc.), and any other reliability information the Government PM deems necessary to evaluate overall reliability of the assets.

4.6. Program Management Reviews (PMRs)

PMRs will be held quarterly and may be held alternately at the Contractor or USAF facilities or via Video Tele-Conference (VTC). Frequency of PMRs can be adjusted at a later date as the program matures. The purpose of the PMR is to review cost/schedule/performance metrics and address significant program and technical issues. The agenda shall be prepared by the Contractor and coordinated with the Government. The agenda shall be provided (IAW CDRL A002) no later than fourteen (14) calendar days prior to meeting;

minutes/action items shall be the responsibility of the Contractor and provided within seven working days after the meeting (IAW CDRL A003). All action items shall be tracked until closure or resolution. In addition, CDRL A004 must address any program risks that have been identified and avenues or alternatives for mitigation. In order to address issues related to production and any program action items, weekly meetings will be held as mutually agreed.

For more information, reference Appendix A.

4.7. Government Furnished Property (GFP)

The requirements set forth in Appendix A – GFP Management shall be applied to all Government owned material shipped to the Contractor for the duration of this contract.

4.8. Defense Logistics Agency (DLA) Drawdown

The DLA material and material quantities to be drawn down are listed in this TRD, Attachment 3. Drawdown NIINs were generated using existing DLA managed material of stock on hand, Purchase Request (PR) Due-In, and Purchase Orders (PO) Due-in quantities.

The Contractor shall consider these parts quantities when calculating the proposal for submission. The Contractor shall utilize DLA as the first source of supply for items in Attachment 3. The Contractor may only provide material from other sources when one (or more) of the following three conditions are met: 1) DLA material drawdown quantities have been consumed for that individual NSN, 2) orders for that individual NSN are backordered due to lack of inventory, or 3) no requirement for the NSN exists. On an annual basis, the Contractor shall provide a report, IAW CDRL A001, outlining the material that has been drawn down and any remaining quantity for drawdown. If inventory listed in Attachment 3 is not utilized to support LOA components identified in Attachment 1, Contractor is not responsible for the purchase of the inventory.

To facilitate the drawdown process, DLA will be responsible for establishing two Department of Defense Activity Address Codes (DODAACs) for the Contractor to utilize when requisitioning material. One DODAAC will be utilized for shipments to the Tinker AFB LOA organic maintenance depot while the other DoDAAC will be utilized for shipments to the Contractor’s repair facility, if applicable.

5.0 Government Furnished Data

5.1. AF Quarterly Data

At the completion of each fiscal quarter, the AF will be responsible for providing a report to the Contractor to include the following LOA data elements, recorded from the previous quarter, for forecasting purposes: past flying hours, future flying hours, past AF demands, past FMS programmed demands, and past un-programmed FMS demands. The report will be provided in Excel format with data taken from the AF D200A forecasting tool and Logistics Installation Mission Support (LIMS) system.

5.2. AF Monthly Data

After the completion of each month, the AF will be responsible for generating a report to include the past flying hours and serviceable asset posture. The report will be provided in Excel format with data taken from the Logistics Installation Mission Support (LIMS) system.

Appendices

APPENDIX A – SUPPLY CHAIN SUPPORT AND PROGRAM MANAGEMENT

APPENDIX B – PERFORMANCE METRICS

APPENDIX C – PRICE PER FLYING HOUR & RECONCILIATION

APPENDIX D – AF ACRONYMS, FORMS, AND DEFINITIONS

Attachments

1 – NSN/NIIN LIST

2 – PMT CALCULATOR

3 – DLA DRAWDOWN LIST

4 – TECHNICAL ORDERS

5 – CAV-AF

B-1B LOA PBL TRD - Appendix A – Supply Chain Support and Program Management

Appendix A – Supply Chain Support and Program Management

1.0 Introduction

The Contractor shall put in place the infrastructure, material, and systems to address all major work requirements contained in the Air Force (AF) Technical Requirements Document (TRD) & Appendices (e.g. supply chain support satisfaction of all AF requirements, Price Per Flight Hour (PPFH) execution, and reliability sustainment/improvement). The contractor’s implementation must balance solution velocity, production, reliability improvement, repair efficiencies and affordability in a time phased manner. A number of the parts and test gaps are known and are being quantified via existing 422 SCMS CSAG projects (Low Observable Antenna [LOA] range reconstitution and PCM spares reconstitution Phase 1) and B-1 SPO produces (MPC and PCM health test). Due to the number and interaction of LOA gaps over the past several years, the repair baseline and associated labor and material cost are no longer defined. The Transition and Depot Supportability Mitigation phases are designed to reestablish the repair baseline, from which LOA performance and repair efficiency may be measured and realized in the Sustainment phase.

2.0 Contract Phases

This appendix establishes the supply chain and program management requirements for the Performance Based Logistics (PBL) contract. PBL contract performance requirements shall include three phases: Phase I (Transition), Phase II (Depot Supportability Mitigation), Phase III (Sustainment), and Phase IV (Exit Period). The specific requirements listed in the subsequent sections apply specifically to each contract phase.

2.1 Phase I Transition - Specific Requirements and Targets

Introduction The transition phase shall commence with the period of performance outlined in the contract and consists of the first 3 months of the first contract year. Upon award of the contract, the Contractor will be responsible for full performance of the contract.

However, during this transition phase, while metrics will be measured, they will not be included in the reconciliation calculations.

Transition phase milestones include, but are not limited to:

1) Meet security requirements and establish access to Government networks and Information Technology (IT) systems as required to meet contract performance

a. Access and operational capability of Commercial Asset Visibility Air Force

(CAV-AF) system,

b. Access to necessary Government systems,

c. Provide parts/component ordering system for the shop floor mechanic to order parts (which may require system integration IAW Implementation Agreement (IA) with depot),

d. Establish necessary IT capabilities e.g. inventory tracking and reporting capabilities necessary to meet contract performance requirements;

2) Placement of Contractor personnel

a. Establish base and facility access as necessary to meet the performance requirements of the contract;

3) As part of the Program Management Plan, submit a Contractor facilities plan which includes how Government Furnished Property (GFP) will be received, transferred, stored, and accounted for throughout the manufacturing process

a. Identify and secure warehouse space as required to support performance requirements of the contract;

4) Department of Defense Activity Address Code (DoDAAC) assignment. The

Contractor will not be responsible for end-item or material support during this timeframe

5) Develop material distribution process IAW Implementation Agreement (IA)

6) Provide a “Program Management Plan” IAW the Solicitation

Transition Approach Beginning in month 4, the Contractor shall be responsible for support of all items inducted from this day forward and Work in Process (WIP). Metric performance of the Phase II Depot Supportability Mitigation shall be “best effort” as reflected in Appendix B; wherein the contractor will supply engineering and tech support to maximize production, in parallel with mitigating parts supportability and test capability .The contractor shall submit a combined Program Management Plan (PMP) and Integrated Master Schedule (IMS) detailing the mitigation of parts supportability and test capability during Phase II Depot Supportability Mitigation. The PMP/IMS shall include the estimated cost by year for the Depot Supportability Mitigation phase, along with the associated measurable milestones and expected performance improvements in the PMP/IMS. The PMP/IMS shall be updated annual through the Depot Supportability Mitigation phase as needed. Upon Government approval, the contractor shall execute each year depot gap mitigation through the depot supportability mitigation phase. The PMP/IMS shall propose the contract year to transition from Phase II to Phase III, based on:

a) Time duration necessary to mitigate depot parts and test gap

b) Accumulation of adequate basis for end item repair FFP (i.e. failure modes, labor, material, etc.)

c) Time duration necessary to produce all legacy WIP and achieve initial 100% Material Availability (MA) (IAW CDRL A005)

*Note that pre-PBL production assets will count toward the Requisition Objective (RO) outlined in Appendix B.

2.1.3 Joint Transition Support Team (JTST)

No later than fifteen (15) calendar days after contract award, the USAF, DLA Aviation, and the Contractor shall activate the JTST to monitor the Contractor's progress against the schedule and milestones necessary for the Contractor to meet the requirements of transition, depot supportability mitigation and sustainment. This team will provide information and assistance in transitioning responsibility for all TRD work requirements from the Government to the PBL Contractor. The JTST shall be comprised of functional experts from both the Government and the Contractor. Functional experts from the Government will include a Program Manager(s) (PM), Item Manager(s) (IM), Equipment Specialist(s) (ES), and Production Management Specialist(s) (PMS).

2.1.4 Existing Serviceable Inventory (ESI) and RO levels

To account for government inventory previously purchased outside of this contract and to ensure the Contractor is compensated for changes to RO levels and serviceable assets at the time of award, the Contractor must propose a firm-fixed price per unit for each NIIN in Attachment 1 to be used in the ESI calculation below. The D035A and Logistics Installation Mission Support (LIMS) shall be the systems of record used as the official source for the RO level and number of ESI.

The Contractor unit price and calculated ESI will be used to calculate the Serviceable Inventory Needed (SIN) payment at the beginning of the contract. The Contractor will be required to return the ESI totals to the Government at the completion of the contract. The ESI total and SIN payment will be calculated by the government and reported to the Contractor within three business days after contract award. The ESI and SIN explanation and calculation is provided in 2.1.5 below.

2.1.5 ESI Calculation

For each NIIN in Attachment 1, the ESI will be calculated by:

First) adding up the total amount of serviceable assets on-hand in the Government Item Manager’s (IM) wholesale account, serviceable at the base and depot, serviceable on-order from the Contractor, and serviceable in-transit; all reported within the D035A and LIMS systems. This total will be referred to as “Serviceable Assets” (SA).

Second) the SA will be divided by the current RO level reported in LIMS to calculate the RO%. If the RO% is equal to or greater than 85%, then the SA will be set at the ESI for that NIIN.

If the RO fill rate is less than 85%, then the additional number of SA required will be calculated by multiplying the RO target by 85%, subtracting the SA, and rounding up (to a whole number). This total will be referred to as the “Serviceable Inventory Needed” (SIN). For NIINs reporting below RO level of 85%, the SIN and SA will be added to calculate the total ESI. The equations for the SIN and ESI are provided below.

85%

Once all ESI calculations are complete, the ESI will represent the total number of serviceable assets due back to the government, from the Contractor, at the completion of the contract. A detailed explanation of ESI at contract exit is provided in 2.3.1 below.

2.1.6 Serviceable Inventory Needed (SIN) Payment

Upon completion of all ESI calculations, any National Item Identification Number (NIIN) reporting a SIN total greater than 0 shall have their respective firm-fixed unit price multiplied by the SIN total to calculate the SIN payment. This payment will represent the Contractor’s compensation for NIINs not meeting requirements and is part of the overall ESI required to be given back to the Government at contract completion.

The total SIN payment will be made to the Contractor on the first invoice of contract year one and will be paid separately from the price per flying hour and FMS and O/S payment.

An example of the ESI calculation and SIN payment is provided in Table 1 below.

Table 1 - ESI Example

NSN SIN Unit Price RO SA RO% RO Goal ESI

4810‐00‐303‐5851 5,000.00$ 22 34 155% 85% 34

NSN SIN Unit Price RO SA RO% RO Goal ESI

4810‐01‐509‐8836 8,000.00$ 90 68 76% 85% 77

RO Goal (RO) ‐ SA = SIN SIN Payment

85% (90) ‐ 68 = 9 9 X $10,000 = $90,000

2.2 Phase II Depot Supportability Mitigation

During this phase the contractor shall supply embedded engineering/technicians to support production, in parallel with executing the parts and test gap mitigation IAW with the PMP/IMS. Contractor systems and processes shall be used during this phase. Material will be supplied from both DLA (thru draw down) and contractor ICP, as coordinated by the contractor. Initial material lay-in for supportable parts will be initiated under this phase.

Repair efficiencies and LOA repair reliability improvement are expected to be incremental during this phase, subject to the phased parts and depot test mitigation implementation. The contractor shall submit annual update of the PMP/IMS, including revised projected end item repair price where actual cost accumulation impacts baseline numbers (IAW CDRL A005).

2.3 Phase III Sustainment - Specific Requirements and Targets After transition and depot supportability migration is complete, the JTST will validate that all PMP/IMS milestones have been satisfied and concurrence be made to move forward to sustainment – Full Performance. The Contractor will be required to assume full contract performance requirements and complete all tasks necessary for assumption of the performance requirements IAW Appendix B.

2.4 Phase IV Exit Period - Specific Requirements and Targets

This period encompasses the procedures and corresponding periods necessary to ensure the orderly and efficient transfer of performance responsibility either back to the USAF or to a follow-on Contractor. During this, (with exception of the last quarter) the Contractor will perform to the same standards required during the sustainment phase of the contract and will be measured and compensated accordingly.

Twelve months before the completion of the contract, the PCO shall notify the Contractor in writing of the USAF’s intent to enter this phase of the contract. At this point, the USAF and the Contractor will reconstitute the JTST. This team will further define the schedule, milestones, and performance requirements for an orderly exit and potential Phase-In of a follow-on program while ensuring that all contract performance metrics are met. The Government retains approval authority and may unilaterally establish the membership, schedule, milestones and tasks required for the exit phase; however the exit phase shall not exceed the contract period of performance.

2.4.1 Existing Serviceable Inventory Owed

At the completion of the contract, the Contractor will be required to provide the ESI totals calculated at the beginning of the contract for each NIIN listed in Attachment 1.

On the last business day of the contract, a current SA balance will be calculated and subtracted from the ESI previously established to determine Serviceable Inventory Owed (SIO) by the Contractor. The calculation for SIO is provided below.

The Contractor will have 120 days to provide the SIO to the Government. To ensure support and delivery of any calculated SIO, the final quarterly payment will be held as collateral. The Contractor shall deliver assets equaling the final SIO quantities, at which point the final invoice will be paid after end-of-contract reconciliation is completed. If, after end-of-contract reconciliation is completed, the Contractor has not met the SIO requirement, the final payment will be decremented by the reconciliation value and the value of any shortage in the SIO material before payment to the Contractor. Any funds still owed beyond the final payment will be paid back to the Government by following the process of submitting a formal check to the Mechanization of Contract Administration Services (MOCAS) Defense Finance and Accounting Service (DFAS) office as instructed by the PCO.

3.0 General Requirements

General requirements listed in this section apply to all four program phases addressed above.

3.1 Supply Support

Supply support activities are activities necessary for the delivery of parts required for overhaul/repair of items identified in Attachment 1 and their components by organic depot maintenance. The Contractor shall:

1) Provide material support to meet the performance requirements of this TRD and appendices.

2) Collaborate with the Government to ensure accurate forecasting to meet performance requirements.

3) The contractor will have authority to develop/select alternate part vendors to maintain parts supportability. The contractor shall ensure original design and performance specifications are retained with any change in source.

Segregate, track, and provide monthly status of assets removed from work due to parts non-supportability (IAW CDRL A001). If required material is unavailable for any reason the Contractor shall provide an estimated delivery date to 76 CMXG, the PM, and the PCO. Starting with Phase III, if the estimated material delivery date creates an unreasonable delay as determined by the Government, the Contractor will be notified in writing by the PCO that the asset will be placed on “non-supportable” status. Prior to Phase III, the contractor is not held to material availability metrics. The asset will be segregated and stored until all required material is available unless otherwise mutually agreed to by the Government and the Contractor.

4) Provide a “Parts Usage Report” consisting of all NGC provided parts and materials used to support repair activities to the PCO IAW contract CDRL A006.

5) Provide capability to convert and upgrade components to new configurations when necessary to support supply chain shortages and carcass constraints of end items.

6) Material delivery performance shall be government as followings

a. Supportable parts, with past demand forecast basis - As defined in TRD

b. Supportable parts, without past demand forecast basis

i. At first demand, if sufficient DLA stock, as defined in TRD

ii. At first demand, if insufficient DLA stock, Acquisition Lead Time and Production Lead Time (ALT+PLT) excusable delay

iii. Subsequent demand, as defined in TRD

c. Unsupportable parts, with past demand forecast basis

i. At PBL award, part supportability sust. engr+ALT+PLT excusable delay

ii. Once supportable, as defined in TRD

d. Unsupportable parts, w/o past demand forecast basis

i. At first demand, Part supportability sustainment engineering+ALT+PLT excusable delay

ii. Subsequent demand, as defined in TRD

7) ERRC T replenishment spares shall be supplied under the PBL contract. Spares delivery schedule and funding will be established in a specific CLIN. No later than the end of each contract year, or more frequently if needed in response to low rotable pool levels and/or actual or forecasted condemnations, the contractor shall submit replenishment spares requirements for the following year.

3.2 Production Support

The Contractor shall:

1) Provide production forecast for each NSN to 550 CMMXS and 422 Supply Chain Management Squadron (SCMS), included in the Monthly Status Report, CDRL A001, DI-

MGMT

2) Collaboratively plan production workload with 550 CMMXS IAW the Public Private Partnership (PPP) and IA. The production workloads may be adjusted as necessary IAW the PPP and IA.

3) Collaborate with 550 CMMXS to resolve production constraints and bottlenecks to facilitate asset flow and meet production requirements.

4) Attend and participate in recurring monthly meetings organized by the Government PM.

These meetings will cover planned vs. actual production, root cause determination for missed production, get well plans, production requirements and production schedule.

Agenda to be developed jointly between the Government and Contractor personnel.

Recurring monthly production meeting minutes shall be used in determination of potential cost decrement avoidance at the annual Program Management Review (PMR). The Contractor PM shall be responsible to ensure production meeting minutes are captured

(IAQ CDRL A003).

5) Provide Contractor assisted production repair capability as necessary to supplement organic production. All Contractor assisted production repair work shall be approved and agreed upon IAW PPP and IA. All Contractor assisted production repair work shall be accomplished IAW all applicable Technical Orders (TOs) or Original Equipment

Manufacturer (OEM) repair documents and instructions. A Contractor assisted production plan will be identified within the IA at the commencement of the contract.

6) Provide a “Depot Maintenance Workload (50/50) Report” IAW Title 10 USC 2466.

3.3 Engineering/Technical Support

While the Government retains all engineering and technical authority over all items on the contract, the Contractor is encouraged to recommend process and product improvements in keeping with this TRD and the IA. Necessary engineering/technical support activities include:

1) Provide on-site technical support as required to meet the production schedule. Resolve technical constraints and bottlenecks to facilitate flow and meet the production requirements of this TRD and the IA.

2) Support and participate in Government held Technical Interchange Meetings as required by the Government to discuss technical issues requiring the attention of the AF and/or Contractor. At a minimum the Contractor PM/technical representative and Government PM/technical representative shall support these meetings. Additional attendees as determined by the Government shall attend.

3) Recommendations concerning shop processes and procedures including shop layout, design, and repair flow that do not require a TO change shall be coordinated in IAW the

IA.

Technical Data Compliance with the latest revision of TOs is mandatory unless otherwise specified. Any recommended changes to a TO shall be submitted for Cognizant Engineering Authority (CEA) review IAW TO 00-5-1, Air Force Technical Order (AFTO) System.

Work performed at the Contractor’s facility in support of TRD requirements, shall follow the latest revision of applicable Technical Orders (TOs) or OEM repair documents, manuals, instructions.

TOs listed in this TRD shall be used for part replacement requirements of the contract.

Replacement parts shall conform to the configuration stipulated in the applicable TO. The Contractor shall provide support to resolve any TO issues required to meet performance requirements.

In the event of a conflict between the instructions in this TRD and the applicable technical directive, the following order of precedence applies: 1) applicable TO(s), 2) this TRD and 3) other directives.

Applicable Technical Orders Attachment 4 is a preliminary list of TOs required to perform this contract. The Contractor is responsible for ensuring the latest revision is used.

Other Applicable Documents Table 2 - Other Applicable Documentation

Air Force Instruction

Latest Revision Date

Title

AFI 23-101

12 Dec 16

Memorandum 05 May 17

AIR FORCE MATERIEL

MANAGEMENT

Air Force Materiel Command Instruction

Latest Revision Date Title

AFMCI 23-113 14 Dec 10

PRE-AWARD QUALIFICATION

OF NEW OR ADDITONAL

PARTS SOURCES AND THE

USE OF THE SOURCE

APPROVAL REQUEST

AFMCI 20-102

11 Jul 13 changes

17 Feb 16

REQUIREMENTS DEFINITION

AND PURCHASE INSTRUMENT

DEVELOPMENT

AFMCI 24-201 14 Jan 15

AFMC PACKING AND

MATERIALS HANDLINGS

POLICIES AND PROCEDURES

International Organization For Standardization (ISO)

Latest Revision Date

Title

ISO – 9001:2015 15 Sep 2015

QUALITY MANAGEMENT

SYSTEMS – REQUIREMENTS

AFMCI 63-101

T.O. 00-5-1 AF TO System

05 Apr 2022

AFMC TECHNICAL ORDER

SYSTEM IMPLEMENTING

POLICY

TO System Publication Improvement Report (AFTO Form 22) The Contractor shall assist in preparing an AFTO Form 22 when an error or improvement changes the meaning of the instructions or information contained in technical directives and will prevent the adequate performance intended. The Contractor shall assist in accomplishing and submitting AFTO Form 22s IAW TO 00-5-1. Minor discrepancies of non-technical nature such as improper sequence of pages, typographical errors, transportation errors, misspelled words, etc., shall be reported to the 422nd Equipment Specialist annually. The Contractor shall report omissions of pertinent technical data, correction of remanufacture procedures in TOs, or desired changes to TO data shall likewise use the AFTO Form 22.

Engineering Change Proposals (ECPs) An ECP is defined as the documentation by which a permanent engineering change and its implementation for parts to be delivered under this contract is proposed, justified and submitted to the appropriate authority for notification approval or disapproval. All proposed changes are either Class I or Class II based on the magnitude and its effects.

Class II changes generally involve simple piece part substation in support of obsolesce mitigation, wherein the part NHA (CCA) part number is not impacted. Class I changes will generally involve end item functionality changes or CCA redesign to support reliability improvement, DMSMS mitigation, etc. of a type and magnitude that the CCA and/or end item part number changes. Also refer to MIL-HDBK-61A table 6-2 for information on criteria used and policies and procedures for requesting and processing ECPs. SECNAVINST 4140.2/AFI 20-106 contains guidance for processing engineering changes to Critical Safety Items (CSIs). Approved proposals will result in redesign efforts coordinated with Government engineering.

ECP Submission and Approval Following completion of the ECP classification process, the Contractor shall submit an ECP for any Class I change that impacts the parts covered by this contract through their normal Class I procedures and provide notification to the PCO for review by supply chain engineers. A Class I ECP may be prepared in the Contractor’s format but at a minimum must be compatible with USAF information management systems. In addition, a Class I ECP shall provide all information required by CDRL A008.

A Class II ECP may be prepared in the Contractor’s format. At a minimum, the following data is required: noun and part number of item affected; name noun and part number of next higher assembly; description of the engineering change; need and reason for the change; all USAF contract numbers for which the change applies; and the change document number. Class II ECPs shall be submitted for notification to the PCO who will distribute the notification to the cognizant supply chain engineers (IAW CDRL A008).

The Contractor shall submit all ECPs by agreed upon appropriately secured electronic means.

Contractor Generated Changes – Costs Publication costs as a result of changes to any Government repair manuals are the Government’s responsibility. All other costs associated with Government-approved, Contractor-generated configuration changes (including Class I and II ECPs) and except those Class I ECPs initiated by the USAF which are subject to the Changes clause of this contract, FAR 52.243-1 shall be borne by the Contractor and shall be made and incorporated without adjustment to the contract price. Implementation of IUID (reference Error! Reference source not found. below) will be included in any Contractor proposed Class 1 ECP.

Process Improvements Impacting USAF Technical Orders The Contractor may develop process changes and improvements. Any process changes and improvements that may affect the USAF technical orders shall be reviewed and coordinated with the Government Process Engineering Lead and/or Government cognizant engineer. The Government Process Engineer Lead and the Government cognizant engineer will make the final determination if the process changes affects the TO or current process orders. Any process change and/or improvement that requires a TO change shall be coordinated and approved using AFMC 202 or 252 form. Process changes and improvements that do not require a TO change may be developed and implemented by the Contractor as part of the IA coordinated between the Contractor and the Government Process Engineering Lead.

Government approved process and procedural improvements identified and/or developed during the contract period of performance, along with any direct changes to current Tech Order information shall be retained by the government. Tech Order data changes shall be incorporated into the Government documents annually (IAW CDRL A001).

Technical Requirements for Contractor Facility Repairs For assets repaired at a Contractor facility, the Contractor shall perform all work in accordance with locally developed work instructions and/or manuals, including but not limited to drawings, technical orders, manufacturing operations and tooling instructions that have been determined to be equivalent to the USAF technical data. Review and approval of the Contractor’s Acceptance Test Procedures by the supply chain cognizant engineer will serve as the equivalency determination.

3.4 GFP Management

Upon receiving notification of the award of this contract the Contractor will coordinate with the PCO to enable the assignment of a unique Department of Defense Activity Address Code (DoDAAC). The Contractor will be responsible for managing GFP IAW its approved Property Plan and in compliance with FAR 45.101 and DOD Government Furnished Property Operating Guide. In addition, the Contractor will be required to utilize the CAV- AF system in order to receive, store, remanufacture, and ship GFM back to the AF in support of the PBL availability requirements. A full description of the CAV-AF requirement is found in Attachment 5 of the TRD, CAV-AF Reporting Requirements.

Asset Inventory Baseline Upon award of the PBL contract, the USAF will provide an asset inventory list of USAF managed parts showing all buy contract due-ins, repair contract due–ins, serviceable, unserviceable, suspended, and any Work in Process (WIP) assets on an aggregated world-wide basis.

GFP Shipments and Receipts Upon assignment of a unique DoDAAC and notification from the Contractor, the JTST will develop a schedule to ship unserviceable assets from the Government storage location to the Contractor location.

Following receipt of the GFP, the Contractor will be required to utilize CAV-AF to track and record the number of assets received, condition received, and the date and time the delivery was accepted. If at any time, it is determined that the GFP initially supplied is not in the condition indicated on the AF Asset Inventory List, the Contractor will notify the PCO and request the GFP list be changed accordingly.

Following receipt of the unserviceable property, the Contractor will maintain the status, actions taken to restore property to serviceable condition or dispose of the property IAW provisions contained in Section 3.4.3 – GFP Disposal. The total amount of AF GFP provided to the Contractor shall be reported within 15 calendar days at the end of each fiscal quarter and reconciled quarterly.

At any point during the contract, the Government may request the Contractor to conduct a complete inventory of all GFP on-hand. The Contractor will cooperate with the USAF in conducting joint wall-to-wall inventories in order to account for all GFP assets and resolve any reconciliation discrepancies. The Contractor will be required to manage and maintain accountability of all GFP delivered and accepted.

GFP Disposal All Contractor condemnations and disposal actions of GFP must be authorized by the Government prior to disposal and must be reported at the end of each quarter. The request will be sent to the Government ES and cognizant engineer for review and concurrence. All assets shall be disposed IAW the demilitarization (DEMIL) code assigned by the Equipment Specialist. All disposal actions shall be reported within the CAV-AF system and reconciled at the completion of each quarter.

3.5 Shipping Transportation, Containers/Packaging, and Handling The Contractor shall be responsible for the shipment of serviceable assets. All parts must be packaged IAW associated Special Packaging Instructions (SPIs), available through the Special Packaging Instructions Retrieval & Exchange System (SPIRES)

(https://spires.wpafb.af.mil). The Contractor may choose to reuse existing packaging and accomplish any associated repair of such packaging, or procure new packaging. The Contractor shall be responsible for ensuring that containers are in serviceable (reusable) condition. The cost associated with container repair or replacement is at the Contractor’s expense.

3.6 Program Management

Contractor Responsibilities The Contractor shall:

1) Meet the performance metrics IAW Appendix B,

2) Assign technical representatives to meet program performance requirements if deemed necessary by the Contractor,

3) Assign a PM who shall serve as the main POC and for communication with the

Government and conduct quarterly Program Management Reviews (PMRs) IAW Section 3.7 below,

4) Follow procedures identified in Attachment 5 – CAV AF Reporting Requirements to gain access to CAV AF and provide the AF with asset accountability,

5) Implement corrective action IAW the terms and conditions of this contract,

6) Provide CDRL requirements.

AF Responsibilities The AF will:

1) Collect data, analyze, and report actual and accurate Contractor performance metrics data to the Contractor IAW Appendix B – Performance Metrics,

2) Assign a PCO, PM, and/or assign other personnel required to support the program,

3) Provide the Contractor an updated NIIN demand report at the end of each quarter and/or month to include all Depot and Base usage, and past program (flying hour) for the past three years for each NIIN listed in Attachment 1,

4) Provide the Contractor with the necessary data packages.

3.7 Program Management Reviews

PMRs shall occur quarterly beginning in phase I of the contract. PMR frequency may be adjusted as the program matures. PMRs shall occur no later than 30 working days following the end of each quarter or other time frame as mutually agreed upon between the parties.

PMRs will be used to review Contractor performance. PMR invitees shall include at a minimum the Government PM, supply chain LMS, Government Contracting Officer, Contractor PM and Production Shop Representative. Government PM will be responsible for establishing and facilitating the PMR to include the location. The Contractor will prepare the agenda and provide to the Government POC.

The following agenda topics may be included, but are not limited to:

1) Open action items

2) Status of contract performance requirements

3) Production schedule review

4) Parts constraints

5) Production constraints

6) CDRL data and reports

7) Quality control

8) Obsolescence / Diminishing Manufacturing Sources and Materiel Shortages (DMSMS) issues

9) Other topics of interest or concern

3.8 Deficiency Reporting Requirement

Quality Management The Contractor shall establish, document and maintain a quality system as a means of ensuring that the end item conforms to specified requirements. The quality system will be IAW contract requirements and adhere to the requirements of ISO 9001.2008, or an equivalent quality system incorporating the following ISO elements: 4.1 Management Responsibility, 4.5 Documentation Control, 4.6 Purchasing, 4.9 Process Control, 4.14 Corrective and Preventive Action, and 4.17 Internal Quality Audits. Any work performed at 550 CMMXS will follow the AF Quality system. Guidelines for resolving all Product Quality Deficiency Reports are outlined below:

Product Quality Deficiency Reports (PQDRs) The Contractor will comply with instructions contained in Technical Order (TO) 00-35D- 54, USAF Deficiency Reporting, Investigation, and Resolution, and the Joint Defense Logistics Agency Directive (DLAD) 4155.24, Product Quality Deficiency Report Program. These documents provide the policy and procedures for reporting, receiving, investigating, and resolving PQDRs. This directive implements FAR requirements for the reporting of product quality deficiency data as required by Public Law 41 C.F.R. 101.

This directive establishes a system for feedback of product quality deficiency data across Military Service, Defense Logistics Agency, and Government Services Administration (GSA) lines in order to conduct reporting, investigation, cause correction, and management of individual product quality deficiencies, as well as to identify problems, trends, and recurring deficiencies. The Contractor will cooperate fully with USAF and DCMA personnel in the investigation of all quality deficiencies. In addition, the Contractor will track all quality deficiency reports for the weapon systems involved in this acquisition.

3.9 Engineering Investigation (EI) Reporting

The Government will independently investigate the majority of EIs. The Government may determine that Contractor investigation services are required. If deemed applicable, the Government shall notify the Contractor of the pending EI.

1) The Government shall coordinate with the Contractor’s quality representative of the applicable pending EI and the Contractor shall provide appropriate shipping instructions to the Government,

2) The Government shall have the discrepant parts shipped to the appropriate facility as soon as possible,

3) The Contractor and Government shall evaluate, test, and analyze if necessary the discrepant parts as required to confirm/non-confirm the stated discrepancy and actual failure mode and ascertain the applicable root cause and corrective action,

4) Government shall witness all EIs that take place at the Depot maintenance facility.

Government and/or DCMA may witness all EIs that take place at the Contractor’s maintenance facility,

5) The Contractor and Government shall determine the results of their findings for the reported discrepancy. The Government will prepare the final report and shall provide disposition,

6) For EI evaluations performed at the Contractor’s maintenance facility, CDRL A001 will apply,

7) For EIs completed at the Depot maintenance facility, the report will be completed by the Government.

3.10 Obsolescence / DMSMS Management

The Contractor shall monitor and manage the loss, or the impending loss, of manufacturers or suppliers of components, assemblies, or materials used in manufacturing of items supplied by the Contractor. The Contractor shall provide a “DMSMS Health Analysis Report” IAW contract CDRL A010. The Contractor shall identify, notify, and recommend the most effective solution for all obsolescence issues, including recommending Class I or II changes.

The Contractor shall provide timely notice to the Government Contracting Officer of any anticipated impacts to cost and/or schedule if a Class I or II ECP to address the issue is required (see 3.3.5 above).

For all components listed in Attachment 1, the Contractor shall be responsible for managing obsolescence / DMSMS problems and, notwithstanding any obsolescence / DMSMS problems, the Contractor shall remain responsible for meeting the performance requirements of this TRD, unless a Class I or II ECP to address the issue is required. The Contractor’s responsibility to manage obsolescence / DMSMS includes continual and ongoing reviews to identify actual and potential obsolescence / DMSMS problems, including the obsolescence / DMSMS of components, assemblies, subassemblies, piece parts, and material (hereafter referred to for purposes of this section only as "parts and/or material").

The Contractor is responsible for Class II ECP costs associated with obtaining a replacement if and when any parts and/or material become obsolete or become subject to DMSMS. The costs for which the Contractor is responsible include, but are not limited to, the costs of investigating part availability, interchangeability and substitutability, locating part replacement, vendor interface, engineering efforts, testing requirements, internal drawing changes, etc. to the point of redesign.