7._SOW_FINAL__8_08_13.pdf

Attachment # 7

REQUEST FOR QUOTE

NATIONAL AIRCRAFT

RELOCATION, STORAGE, MAINTENANCE & DISPOSAL SERVICES

SOLICITATION NO.: DJM-14-A44-Q-0006

STATEMENT OF WORK

1) INTRODUCTION

The purpose of this Statement of Work is to provide national and international Aircraft relocation, storage, maintenance, and disposal services for the United States Marshals Service (USMS), Asset Forfeiture Division. The national coverage area includes the United States, the Virgin Islands, Puerto Rico, Guam, and the Northern Mariana Islands.

2) DEFINITIONS AND TERMS

a) AIRCRAFT: A machine or device, such as airplane, helicopter, glider, or dirigible, that is capable of atmospheric flight.

b) AIRFRAME AND POWERPLANT (A&P) MECHANIC: Refers to an individual who holds a mechanic certificate issued by the Federal Aviation Administration (FAA). A&P Mechanics perform or supervise maintenance, preventive maintenance, and alteration of aircraft and aircraft systems in accordance with the provisions of Federal Aviation Regulations.

c) "AS IS, WHERE IS": Aircraft will be sold with no warranty or guarantee whatsoever. Aircrafts are to be purchased exactly as they appear at auction. They will be sold based on their appearance only. "As is" is a disclaimer of warranties or representations. "Where is" denotes that the buyer takes the aircraft as found and must remove it from the point of sale. This language shall be noted in all publications and electronic advertisements.

d) CONTRACTING OFFICER (CO): A person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings.

e) CONTRACTING OFFICER'S REPRESENTATIVE (COR): A Government employee who is given the role in the technical monitoring and administrative aspects of a contract. The COR is designated in writing by the CO.

f) COST-REIMBURSABLE LINE ITEM: Contractor shall be reimbursed for the exact amount of the expenditure when approval is given by the COR prior to the expense being incurred. Receipts must be submitted with invoices in order for the COR to approve payment for the cost-reimbursable line item(s).

g) EMERGENCY REPAIRS: Non-routine repairs that are not anticipated usually occur during the relocation process. Repairs may include but are not limited to fixing aircraft shell, engine or other areas necessary to transport to relocation facility.

h) GROUND TRANSPORT: Flat rate that will be paid to the contractor if requested to transport aircraft via ground. All costs including mileage, hours or other additional charges will be incorporated in the flat rate.

i) HANGAR: A fully enclosed structure with substantial/permanent walls, roof, and floor which will allow for storage of aircraft while controlling surface/environmental problems such as standing water, mud, dirt, and dust.

j) HIDDEN COMPARTMENTS: After-market storage locations in an aircraft that the contractor may be required to remove, repair, and/or disassemble.

k) MECHANICAL REPAIRS: Involves the ‘fixing’ or routine action to restore or maintain an airplane so that it performs in its required function or is maintained in its current condition.

l) PERSONAL PROPERTY: Contents remaining in a seized aircraft that are not standard accessories, such as clothing, personal items, supplies, cargo, etc.

m) PILOT/CO-PILOT FLYING RELOCATION RATE: Time of pilot’s/co-pilot’s flying the aircraft between point of origin and point of destination.

n) RELOCATION SERVICES: Movement of an aircraft from one location to another location and all administrative and logistical duties required to prepare an aircraft. To include coordination between all interested parties (COR, USMS district office(s), investigative agencies, current custodians, FAA, etc.).

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o) SUB-CONTRACTOR: Any supplier, distributor, vendor, or firm that furnishes supplies or services to or for a prime contractor or another subcontractor.

p) SUB-TASK ORDER (STO): An order placed by the COR requesting specific services under the contract.

q) TRAVEL: All costs necessary to locate authorized persons to fulfill requirements associated with the relocation of aircraft. Cost include, but are not exclusive to, lodging, transportation, meals & incidental expenses (M&IE) as approved by the COR. All costs are reimbursed; M&IE costs should not exceed GSA per diem rates found on www.GSA.gov.

r) USM-102: United States Marshals Service ‘Seized Property and Evidence Control Form’.

Document provides authorized chain of custody of identified asset along with a description of the asset, custodial information and valuation.

3) HANGAR LOCATION, PERFORMANCE AREA & TRANSITION PERIOD

a) The hangar shall be located in the Central United States (Texas, Oklahoma, Arkansas, Missouri, Kansas or Nebraska). If multiple facilities are proposed they must be located within 50 miles of one another. Substitute custodial facilities will be required for certain aircraft which cannot be moved due to mechanical or FAA issues.

b) The following performance area shall be covered by this contract: All of the United States, its territories and international locations as necessary. International relocations will likely be infrequent.

c) The contractor, including the contractor’s facility, shall be fully equipped and ready to begin performance within 30 calendar days of the award date. The contractor shall begin accepting aircraft at their proposed storage facility within 15 calendar days.

4) HANGAR REQUIREMENTS

The contractor shall provide and operate a facility which fulfills the requirements set forth in this Statement of Work (SOW).

a) Hangar Storage Requirements

i) Hangar shall be a minimum of 50,000 square feet and must be capable of accommodating an aircraft with a height of 30ft. If two or more hangars are proposed, the minimum square footage for the smallest hangar shall be 15,000 square feet. Contractor must also demonstrate adequate space to accomplish various maintenance tasks as set forth by the

SOW.

ii) The contractor must have signed Memorandums of Understanding (MOU), Leasing Agreements, or Certificate of Ownership which will be used to secure the outdoor and indoor storage facilities, when submitting a proposal.

iii) Contractor shall designate an area at each location to store all log books, aircraft case files, and keys. Log books must be stored in secure, fire retardant containers. Case files and keys must be stored in a secure depository.

iv) If additional facilities are required, they must be approved in advance, in writing by the CO.

If the contractor proposes a different facility during the contract term, then the contractor assumes any costs for relocating currently stored aircrafts to the new facility.

b) Physical Security Requirements

i) The contractor shall provide secure indoor and outdoor storage facilities, maintenance, viewing, and sales areas for all USMS assets.

ii) USMS aircrafts shall be segregated from all non-USMS aircraft with a barrier to restrict all unauthorized access indoor and outdoor. An example of an acceptable barrier would include cyclone fencing units. Security tape is not an acceptable barrier.

iii) Indoor and outdoor facilities must have video surveillance. All video(s) or video tapes must be kept for at least ninety (90) days.

http://www.gsa.gov/

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iv) Indoor facility must have motion sensors.

v) All entry points to indoor facility must have alarm contacts.

vi) Hangars must limit both physical and visible access to assets stored and maintained to approved persons.

vii) If there is an overflow and an aircraft(s) needs to be stored outside with tie-downs, all aircraft doors must be locked and all windows must be secured. If requested by the COR, aircraft shall be covered.

viii) The contractor shall provide a detailed physical security plan that should include at minimum:

(1) Facility Locations – state the address of all locations to be utilized under this contract

(2) Facility Requirements – total amount of square footage required for indoor and outdoor facility and how much storage area vendor has available

(3) Physical Security Requirements – describe area where aircraft will be stored, alarm system, video surveillance system, emergency response notification, access points, indoor, and outdoor lighting

(4) Photos – provide photos of the indoor and outdoor facility

(5) Schematic – provide a sketch of the facility and where items are located (parking;

indoor and outdoor storage; and layout of aircraft, doors, security cameras, lighting, fencing, etc)

(6) Preview and Auction Day – facility, resources, standard operating procedures

ix) The perimeter of the entire outdoor storage facility of each hangar shall be secured with a fence or wall at least six (6) feet tall and shall have razor wire or concertina wire attached.

Contractor may propose other methods.

x) Loss, theft, or damage to any aircraft while in the contractor's custody shall be reported immediately to the COR. Loss/damage to the aircraft shall be replaced (with that of like or equal value) or repaired, within 20 days of notification or as instructed by the COR. Aircraft theft and/or vandalism shall be reported to the local police department and to the COR within 24 hours of incident, and a copy of the police report shall be provided to the COR within 24 hours of receiving report.

xi) USMS COR or COR designee will perform announced and unannounced inspections of facilities, assets, case files, and processes.

c) Staffing and Access Requirements

i) The contractor shall be available, at its storage facility(s), between the hours of 8:30 AM and 5:00 PM, Monday through Friday, excluding Federal Government holidays. Contractor shall provide a point of contact for 24 hours per day, 7 days per week, 365 days per year access.

ii) Access is restricted to the contractor or their authorized employees, the CO/COR or his/her designee, or individuals accompanied by USMS personnel that are approved by the CO/COR. A list of all authorized contractor employees will be given to the COR upon award of this contract.

iii) USMS COR or COR designee will perform quarterly and unannounced inspections of facility, assets, case files, and processes.

iv) The contractor shall maintain a visitor log at each facility. The contractor shall deny any individual who requests access to the storage facility who has not been authorized by the COR (this includes seizing agency personnel). The contractor shall annotate the names of those individuals, and if applicable, the organizations represented, and immediately notify the COR.

v) Any requests for information regarding seized aircraft shall be forwarded to the COR.

vi) Any pilot that will be utilized for the relocation of USMS aircraft during this contract shall also have a background investigation conducted by the USMS. This background investigation applies only to pilots and generally takes 2-4 months to complete. The contractor shall provide the COR with the following:

(1) Completed DOJ-555- Disclosure and Authorization Pertaining to Consumer Reports

Pursuant to the Fair Credit Reporting Act

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(2) Completed OF-306- Declaration for Federal Employment

(3) Clear copies of 2 forms of identification

(4) 2 fingerprint cards

vii) In addition to the pre-employment background screening for pilots, the contractor shall verify proposed pilot(s) type rating.

d) Sub-contractor Storage Facility

i) For any aircraft stored at a sub-contractor's location, it is the responsibility of the contractor to ensure the sub-contractor is adhering to the contract. The contractor will not charge the USMS for inspections of their sub-contractors locations. The contractor will be financially responsible for any damage incurred by the sub-contractor throughout the duration of the storage.

5) AIRCRAFT PRE-CUSTODIAL SERVICES

a) The COR shall provide the contractor a form USM-31 District Request for Relocation of Seized Aircraft.

b) Upon receipt of the USM-31 the contractor shall run a domestic title search. A foreign title search shall only be run upon request from COR. Upon request by COR contractor shall run title searches with multiple vendors.

c) Immediately upon completion, the document shall be sent electronically to the COR for review and determination if the USMS shall proceed with custody.

6) AIRCRAFT RELOCATION SERVICES

a) If it is determined that the USMS will proceed with custody, the COR shall issue a STO for relocation services.

i) In some cases, the aircraft is delivered by the investigative agency to the contractor facility. The COR will issue a STO for storage services only if the investigative agency delivers the aircraft to the contractor.

b) The contractor shall assume sole responsibility, as well as legal and financial liability for the aircraft from relocation until disposal.

c) If the aircraft will be taken into USMS custody but will not be relocated, the contractor shall arrange storage with a sub-contractor.

d) The contractor is responsible for the coordination of each relocation. Throughout this process, the COR shall be kept informed by the contractor. The contractor shall be responsible for the following:

i) Contacting the investigative agency point of contact listed on the USM-31 to inquire about the condition of the aircraft and logbook information

ii) Coordinating the date and time of transfer and relocation with the USMS District Office point of contact

iii) Arranging for an A&P mechanic to inspect the aircraft for flightworthiness prior to relocation

iv) Arranging pilot travel to the location of the aircraft being relocated

v) Obtaining fuel and oil prior to relocation (receipt shall be provided with monthly invoice)

e) If the contractor is unable to secure the aircraft’s door or windows, they shall notify the COR.

f) Contractor shall provide estimate by Contract Line Item Number (CLIN) to relocate (via air or ground transportation, whichever is more feasible) and/or any repairs needed for the aircraft for relocation. Estimate shall include the following, as applicable:

i) Cost for A&P mechanic inspection and flightworthiness determination

ii) Obtaining FAA flight relocation authorization

iii) Flying relocation rate (estimated number of flying hours)

iv) Estimated number of travel hours

v) Ground transport, if applicable (estimated number of hours)

vi) Travel costs for pilot and/or co-pilot

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vii) Cost for fuel/oil

viii) Cost for en route overnight hangar storage

ix) Miscellaneous parts, to include keys, if necessary

x) Mechanic repair fee

xi) Monthly storage cost with square footage of aircraft

g) Upon receipt of estimate, COR shall review and issue STO with applicable CLINs. COR must be notified immediately if there is any change to the estimate to show increase. If relocating via air, Pilot Relocation Authorization letter will be issued by the COR. Relocation and/or repair must occur within the timeframes specified by the COR.

h) Air transportation shall be made according to FAA Regulations and the aircraft’s manufacturer guidelines. Contractor is responsible obtaining all applicable authorizations, in accordance with FAA regulations, for flight relocations. If relocation via ground transport, contractor shall obtain all necessary Federal, State and Local Government permits.

i) At time of relocation, when custody is transferred from the USMS to the pilot, the pilot shall sign and date the USM-102 form on behalf of the contractor, as having received custody. Upon arrival at the storage facility the contractor shall sign and date the USM-102, as having received custody. The USM-102 shall be sent electronically to the COR within five (5) working days of arrival at facility.

j) Pilot/Co-Pilot rate will begin 60 minutes prior to the departure time recorded in the aircraft’s log book for the relocation flight and end 60 minutes after the arrival time recorded in the aircraft’s log book for the relocation flight. All pilot/co-pilot costs (excluding those items defined in ‘TRAVEL’) will be covered under the hourly rate as defined in the pricing schedule.

k) Contractor may be requested to travel to an offsite location for aircraft and/or facility assessment.

l) The contractor may be directed to provide relocation services to a location other than the contractor’s storage facilities.

m) In the event that an aircraft contains personal property items, the contractor shall notify the COR immediately. Non-seized personal property in the aircraft shall be turned over to the seizing agency.

n) Aircraft logs, if available, shall be properly completed to indicate flight and engine times during the relocation.

o) If log books are unavailable, the contractor shall record the following flight information on a daily basis to include: date of flight, time, pilot’s name, fuel consumed, oil consumed, departure time, arrival time, flight time, and discrepancies (if any), in accordance with hour meter readings.

p) Any repairs needed during relocation or upon arrival at storage facility exceeding $2,500 will require prior approval from the COR before repair is made. Receipts for any repairs shall be provided to the COR with the monthly invoice.

q) In an emergency situation, the COR may authorize relocation/repair services verbally. A STO shall be issued within five (5) working days by the COR.

r) Use of aircraft for personal use is strictly prohibited.

7) INITIAL INTAKE OF AIRCRAFT

The following applies to all aircraft regardless of storage location:

a) Upon arrival at the storage facility, the contractor shall inspect and inventory the seized aircraft.

Its condition shall be recorded on a condition/inventory report which shall be provided by the contractor to the COR. The condition report shall include a complete inventory and description of the logbooks associated with each aircraft. The report shall be sent to the COR electronically within five (5) working days of intake. If a hidden compartment is found the contractor shall notify the COR immediately.

b) Contractor shall provide the square footage measurement of each aircraft (wing to wing, nose to tail) to the COR.

c) The contractor shall thoroughly clean and secure the aircraft. All trash and perishables shall be removed from the aircraft. Disposal of hazardous and flammable materials shall be in accordance with all Federal, State and Local laws.

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d) The contractor shall take digital photographs of each aircraft to include: all four (4) sides of the aircraft, the cockpit, instrument panel, cabin, galley, lavatory, cargo area, any damage and any hidden compartments (COR may request additional detailed photos). One (1) set of digital color photographs (5 megapixel minimum or in a resolution reasonably acceptable to the COR), shall be sent electronically to the COR within five (5) working days of intake.

e) If repairs are needed in order to maintain the current condition of the aircraft, the contractor shall provide three (3) independent estimates for any repair(s) exceeding $2,500.00 (individually or in aggregate). All repairs performed without prior written authorization by the COR will not be reimbursed to the contractor. The written recommendation must be broken down by the estimated labor hours and the estimated price of parts. No mark-up of parts will be permitted, the USMS may indicate “no repairs are to be made” on the delivery documentation. Repair invoice shall be included with the monthly invoice. All mechanical inspections, repairs, parts and labor shall be billed under the mechanical services CLIN.

f) The contractor shall provide initial intake services within five (5) working days of arrival at storage facility.

g) The contractor shall establish/maintain a separate case file for each aircraft under this SOW. The case file shall be available for review by the COR. All case files shall be retained for the duration of the contract. Each case file shall include, at a minimum:

i) Condition/Inventory Report

ii) Signed USM-102

iii) All documentation related to aircraft condition, STOs, repairs, storage, and disposal

iv) All correspondence related to aircraft

v) All maintenance documentation

vi) Digital photos

vii) Title Searches

8) STORAGE OF AIRCRAFT

a) The contractor shall provide evidence that it has complied with all laws and ordinances associated with aircraft storage. Applicable permits shall be kept current throughout the term of the contract.

b) The contractor shall provide an orderly and clean indoor storage facility and the outdoor storage facility shall be controlled in such a manner as to eliminate standing water and mud.

c) All aircraft must be stored in a hangar. Outdoor storage of aircrafts with tie-downs shall only be utilized in case of overflow, upon request/approval by COR.

d) The contractor shall not store or sell any personal property under this contract.

9) MAINTENANCE OF AIRCRAFT

a) Desiccant packs and moisture indicators are to be installed per manufacture guidelines.

b) Based on inspection, contractor shall provide a preliminary estimate of the required maintenance for each aircraft broken down by CLIN to the COR.

c) Upon receipt of estimate, COR shall review and issue STO with applicable CLINs. The STO shall instruct the contractor to perform maintenance (monthly, quarterly, semi-annually and/or annually) per manufacturer recommendations, preserve or de-preserve the aircraft.

i) Operational maintenance: Contractor will maintain aircraft in an operating condition in which its principle operating systems are maintained in functioning condition in accordance with manufacturer’s recommendations.

ii) Long-term preservation: Contractor will preserve aircraft’s principal operating systems in accordance with manufacturer’s recommendations.

iii) De-preservation: Contractor may be instructed to de-preserve aircraft in accordance with manufacturer recommendations.

d) All maintenance performed by the contractor shall be annotated in the aircraft log books in accordance with governing regulations. If aircraft log books are unavailable, the contractor shall document all work performed in accordance with industry standards.

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e) If an aircraft is stored at a sub-contractor storage facility, all maintenance and any repairs shall be billed under mechanical services.

f) All repairs performed without the prior issuance of a STO by the COR will not be reimbursed to the contractor. Original receipts must be included with the monthly invoice for payment.

g) Hidden Compartment Removal: Contractor shall provide the ability to remove/ disassemble hidden compartments from aircraft.

h) Keys: All aircraft must have keys. If the aircraft is unable to be secured and requires a new lock and/or keys, prior COR approval is required.

10) DISPOSAL OF AIRCRAFT

a) The COR shall determine the method for disposal for all USMS aircrafts. The contractor shall receive written instructions for the disposal of all aircrafts via a STO. Disposal methods include, but are not limited to, the following:

i) Disposal via Online Auction (primary method of disposal)

ii) Sealed Bid Sale

iii) Disposal via Live Auction

iv) Internet Sale by USMS Third Party Vendor

v) Salvage/Scrap

vi) Destruction/Crushing

vii) Official Use by an Authorized Agency

viii) Release to Lien Holder, Claimant, or Owner

b) Upon receipt of the disposal STO and a form USM-31A District Request for Disposal of Forfeited Aircraft, the contractor shall run a domestic title search. A foreign title search shall only be run upon request from COR. Upon request by COR contractor shall run title searches with multiple vendors. As appropriate, the contractor may be asked to submit a detailed marketing plan.

c) Upon receipt of the disposal STO and USM-31A, the contractor shall check and/or add engine fluids, check the tire pressure and add air, if necessary, check the battery, de-preserve the aircraft, if necessary, as well as wash the exterior and vacuum the interior of all aircraft to be sold (except salvage/scrap or destruction). If needed, fuel/oil shall be added to all aircraft prior to sale (this expense shall be included in the commission rate and shall not be invoiced separately).

d) Once written authority for disposal is received via the STO, the contractor’s responsibility to finalize the release shall include, but is not limited to:

i) Verify identification of persons requesting aircraft and obtain signatures

ii) Identification/confirmation of documents authorizing release of property (documents issued by USMS)

e) The following persons shall be prohibited from purchasing property through the U.S. Department of Justice Asset Forfeiture Program and are also, therefore, barred from placing bids to buy such property:

U.S. Department of Justice employees, including U.S. Marshals Service employees, as further restricted below;

i) Employees of the Asset Forfeiture Division, U.S. Marshals Service, and other U.S.

Marshals Service employees directly involved with the Asset Forfeiture Program, and their immediate family members, defined as any persons residing in the same household as the employee, whether or not related by blood or marriage; spouses; parents; parents‐in‐law;

grandparents; siblings; aunts and uncles; first cousins; and all their spouses;

ii) Employees of any state or local governmental agency who, directly or indirectly, perform duties associated with the seizure and forfeiture of property by the U.S. Department of Justice, and/or which participates in the U.S. Department of Justice Equitable Sharing Program;

iii) Contractors, sub‐contractors and the employees of contractors and sub‐contractors of the Asset Forfeiture Division, U.S. Marshals Service, who provide contract/management services for personal and real properties and complex assets;

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iv) Anyone acting in concert with or on behalf of any of the above persons.

Special circumstances may rebut the presumption, i.e., supersede the above determination, that someone is or is not a prohibited purchaser in one or more of the above categories, as determined by the USMS and the relevant U.S. Attorney’s Office (USAO), with the concurrence of its Ethics Officer, Office of General Counsel.

Advertising for Contractor Auctions

a) The contractor is required to advertise for all contractor held auctions.

i) The contractor is required to advertise assets for sale prior to the auction.

ii) Contractor shall clearly state in all advertisements that all forfeited aircraft are sold “AS IS, WHERE IS”.

iii) Contractor SHALL NOT DISCLOSE CATS ID number in any advertisement.

iv) The contractor shall advertise in at least one (1) national internet based aircraft auction web-site.

v) Contractor shall advertise all sales via contractor operated Internet website.

vi) Contractor shall send COR the link to their website for additional posting of advertisement on the USMS website.

Viewing Period for Contractor Auctions

a) The contractor is required to allow the public to view and access the aircraft prior to the day of auction.

i) The contractor, prior to viewing day, shall prepare the property for sale.

ii) Viewing day shall be for an 8 hour period on the day prior to the sale. The contractor may also hold an additional viewing period on the day of sale prior to auction.

iii) Adequate security during the viewing day shall be the responsibility of the contractor.

iv) The contractor shall not charge any admission or entry fees, or charge for a sales list.

v) The viewing area shall be segregated from the remainder of the storage facility. The sale aircraft shall be pulled out of the hangar for viewing and the hangar closed to prevent unauthorized access and viewing of the non-forfeited aircraft.

vi) Aircraft offered for sale shall be unlocked for inspection.

vii) Contractor shall start aircraft engines upon request.

viii) If available, all logbooks and maintenance records shall be made accessible during the viewing period.

Procedures for Contractor Auctions

a) The following procedures shall be followed for all sales conducted by the contractor. Sale methods include but are not limited to disposal via online auction, sealed bid sale and disposal via live auction.

i) Auctions are expected to be held at the CORs discretion. Unless otherwise directed by the

COR, the disposal via online auction method shall be utilized.

ii) The contractor shall conduct all sales in accordance with all applicable Federal, State and

Local laws, regulations, and ordinances.

iii) The USMS reserves the right to remove any aircraft from the storage facility or auction at any time prior to sale.

iv) Sales terms and conditions shall fully define bid process, bid deposit, pick up process and sales proceeds close out process.

v) Under no circumstances will public bidders be charged a Processing Fee, Admission Fee, or any other charges or fees, other than the bid price tendered by the winning bidder.

Unless authorized in advance by the COR, the public bidders will not be charged a Buyer’s Premium Fee. If a Buyer’s Premium Fee is approved by the COR than no commission shall be billed for those assets.

vi) The COR will notify the contractor with the minimum acceptable bid, in writing.

vii) The contractor shall determine, with COR concurrence, the best method of bid deposit collection. If deposit is not collected at registration, contractor must provide free storage if

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the aircraft is sold, but sale is not finalized. Forfeited bid deposits shall be given to the

USMS.

viii) USMS representative will approve/disapprove bids either in person, via telephone or via email.

ix) The USMS will supply the FAA Aircraft Bill of Sale for each aircraft sold. The contractor is responsible for completion of the FAA Aircraft Bill of Sale on the day of the auction. This document shall be issued to the purchaser upon full payment of the aircraft. The contractor will not be responsible for registering an aircraft with the FAA.

x) The contractor shall provide all keys, logbooks and maintenance records to the purchaser for each aircraft sold.

xi) The contractor shall not charge the Government for storage of aircraft sold at auction commencing on the day after the auction. The USMS will cease paying storage expenses beginning on the day after payment is received.

xii) The contractor shall not charge the Government any sales fees, commission, etc., for an aircraft which is not sold.

xiii) The contractor shall issue a receipt to the purchaser(s) for money received, which will indicate the purchaser's name, address, date, aircraft selling price, and a description of the aircraft to include; Tail #, year, make, model, and serial number.

xiv) The contractor shall receive and be responsible for all money collected during the auction.

The USMS will not be responsible for money that is lost, stolen, received in error, or misapplied while in the hands of the contractor.

xv) The contractor shall submit gross sales proceeds and sales documents to the COR within five (5) business days of the auction via certified check, cashier’s check, money order or Electronic Funds Transfer (EFT). All gross sales proceeds are property of the USMS and shall not be used by the contractor.

xvi) Within five (5) working days the contractor shall submit to the COR post- auction sales results, which shall include the District Office, asset description, name of purchaser and sales price.

xvii) The sales commission percentage shall be applied to each asset in accordance with the CLIN. Only one commission rate will be applied to each asset.

Disposal via Sale

a) Disposal via Online Auction

i) Contractor shall have the ability to sell aircraft via on-line auction.

ii) The contractor shall post the sales terms and conditions for USMS auctions, and USMS

Forfeited Property Sales Certification on their website where it can be viewed by prospective buyers.

iii) In order for prospective buyers to bid appropriately the following information shall be posted during an online auction for each aircraft being sold:

i) Viewing date/time

ii) Bid opening date/time

iii) Bid closing date/time

iv) Minimum acceptable bid (Determined by COR)

v) Bid Deposit (Determined by COR)

vi) Tail #, Serial #, Year, Make, Model of aircraft

vii) Color photographs of the aircraft

vii) Airframe information

viii) Engine information

ix) Radio information

x) Interior information

xi) Sales Terms and Conditions

xii) Statement that all forfeited aircraft are sold “AS IS, WHERE IS”

xiii) Payment process

b) Sealed Bid Sale

i) Contractor may be required to conduct sealed bid sales for forfeited aircraft.

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ii) The contractor shall create a bid invitation that shall include the following;

i) Viewing date/time

ii) Bid closing date/time

iii) Bid opening date/time

iv) Minimum acceptable bid (Determined by COR)

v) Bid Deposit (Determined by COR)

vi) Tail #, Serial #, Year, Make, Model of aircraft

vii) Airframe information

viii) Engine information

ix) Radio information

x) Interior information

xi) Mailing address

xii) Sales Terms and Conditions

xiii) Statement that all forfeited aircraft are sold “AS IS, WHERE IS”

xiv) Payment process

xv) Name, address, telephone number, and signature of purchaser

xvi) Bid amount

iii) Contractor shall open all sealed bids publicly and announce the apparent highest bidder.

iv) The contractor shall video and audio record all bid openings and shall provide recordings to the COR upon request. All recordings shall be kept by the contractor for a period of two-and-a-half (2.5) years after the auction.

c) Disposal via Live Auction

i) If an alternate sale location is proposed by the contractor, it must be approved prior in writing by the COR. All expenses and liability (including security requirements) associated with using an alternate sale location is the responsibility of the contractor.

ii) Auctions must be conducted by an auctioneer. The auctioneer must be licensed (if applicable by state and/or municipality) and a Member of the National Auctioneers Association or the Certified Auctioneers Institute. It is the responsibility of the contractor to ensure the auctioneer has the applicable licensing and/or permits according to state and local laws for the duration of the contract.

iii) All forfeited aircraft are sold “AS IS, WHERE IS” and an announcement will be made at each auction.

iv) The contractor shall post the Sales Terms and Conditions for USMS auctions and the USMS Forfeited Property Sales Certification in a public area where they can be viewed by prospective buyers.

v) Adequate security during the auction day shall be the responsibility of the contractor.

vi) The contractor shall video and audio record all auctions and shall provide recordings to the

COR upon request. All recordings shall be kept by the contractor for a period of two-and-a-half (2.5) years after the auction.

d) Internet Sale by a USMS Third Party Vendor

i) Contractor is not required to advertise for this sale

ii) Contractor may be required by COR to facilitate sales through other sources, one of which may be Internet sales by a third party vendor. If required, COR may request contractor to provide Daily Sales Facilitation services to include the following: make aircraft and logbooks readily available/accessible to the public; provide knowledgeable representative to answer potential buyer questions; provide these services for an 8 hour period as determined by the COR (maximum 2 days); provide adequate security during the viewing period.

iii) Upon completion of the sale the COR will notify the contractor to release the aircraft to the purchaser.

e) Disposal Documents Required: Upon disposal via auction, Internet sales by contractor, sealed bid sale, and Internet sales by a third party vendor, the contractor shall execute the following documents:

i) FAA Aircraft Bill of Sale

ii) Complete and send the Certificate of Aircraft Registration to FAA

iii) USMS Forfeited Property Sales Certification

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iv) All keys and any and all logbooks and maintenance records shall be provided to the purchaser

Disposal to Licensed Salvage/Scrap Dealers

a) The contractor shall dispose of aircraft using this method as determined in writing by the COR, as soon as possible, but no later than fifteen (15) calendar days after notification by the COR.

b) A Bill of Sale shall be issued by the contractor and shall contain wording “aircraft is being sold for scrap purposes only and is not to be re-registered as an operating aircraft”.

c) The contractor shall be responsible for determining the applicable laws for conducting salvage/scrap sales and shall prepare all applicable paperwork.

d) Disposal Documents Required: Upon disposal via licensed salvage/scrap dealers, the contractor shall execute the following documents:

i) USMS Bill of Sale

Destruction/Crushing

a) A letter of destruction shall be provided by the contractor to the COR for this disposal action. The letter shall indicate the reasoning behind their recommendation for the destruction of an aircraft.

b) Contractor may be required to dispose of aircraft via destruction/crushing, as directed by the COR via the STO.

c) This action shall be completed within thirty (30) calendar days of instruction and contractor is responsible for making arrangements.

d) USMS representative will attend destruction/crushing in person.

e) Event must be videotaped or photographed by the contractor.

f) Disposal Documents Required: Upon disposal via destruction/crushing, the contractor shall execute the following documents:

i) Certificate of Destruction

Official Use by an Authorized Agency

a) Contractor may be instructed to release aircraft to another authorized agency as directed by the

COR.

b) Disposal Documents Required: Upon disposal via official use by an authorized agency, the contractor shall execute the following documents:

i) USM-102

ii) All keys and any and all logbooks and maintenance records

Release to Lien Holder, Claimant or Owner

a) Contractor may be instructed to release aircraft to a third party as directed by the COR.

b) Contractor may also be requested by the COR to transport an aircraft via air or ground for a return relocation to a designated location.

c) Disposal Documents Required: Upon disposal via release to lien holder, claimant, or owner, the contractor shall execute the following documents:

i) USM-102

ii) All keys and any and all logbooks and maintenance records

11) MISCELLANEOUS DISPOSAL TYPE

a) Disposal of Government-Owned Aircraft

i) The Government shall have the right to dispose of USMS government-owned aircraft under this contract.

ii) The contractor shall perform the normal sales preparation on the USMS aircraft as performed on forfeited aircraft and shall release the aircraft in the same manner.

iii) The sales commission shall be computed at the same rate. However, the sales commission for government owned aircraft only shall be taken directly from the proceeds of the sale.

iv) If the aircraft is flown to one of the storage facilities under this contract, no storage fees may be charged on USMS aircraft during the sales process. The USMS will pay storage at

NATIONAL AIRCRAFT

the contract rate commencing one week after the auction day. Storage expenses for government-owned aircraft shall be invoiced separately and not under this contract.