Draft SOW C130 Parts Support Equipment and Warehousing IDIQ.docx

6/05/2023

Statement of Work (SOW) For C-130 Foreign Military Sales Parts and Support Equipment Procurement And Parts Warehousing

PR Number

FD2060-23-32262

Date: 5 June 2023

Prepared by:

AFLCMC/WLNI

440 Richard Ray Blvd STE 2F1-A Robins AFB, GA 31098-1670

DISTRIBUTION STATEMENT C: Distribution authorized to U.S. Government agencies and their contractors (Administrative or Operational Use; 30/04/22). Other requests for this document shall be referred to AFLCMC/WLIN, Robins AFB, GA 31098-1670.

Table of Contents

1.0 Description of Services

1.1 Background: The C-130 FMS community is currently limited in the procurement/supply systems for requisitioning parts and support equipment required to sustain their C-130 fleet – mainly the United States Air Force (USAF) supply system or Security Assistance Management Information System (SAMIS). Foreign Military Sales (FMS) has one of the lowest priorities under the USAF supply system and typically requisitions cannot be filled until all requisitions for USAF C-130 requirements are fulfilled. This delay impacts the end-user customer’s aircraft availability due to the failure to provide parts or status in a timely manner. Delays have also adversely affected the C-130 FMS Program Office’s ability to provide timely support and meet the FMS partner nation’s operational tempo and mission requirements. Currently, requisitions from vendors do not include user orientation and familiarization on major equipment acquisitions without requiring an additional task order approval process which can be time consuming or denied. The current requisition process can be cumbersome, time consuming and is ineffective for agile communications and evolving requirements that the FMS support process requires.

1.2 Objective(s): This Statement of Work (SOW) outlines an agile, streamlined procurement contract vehicle to provide the C-130 Foreign Military Sales (FMS) partner nations all required C-130 aircraft parts and support equipment to meet their operational needs. This is a strategic, multi-national Indefinite Delivery, Indefinite Quantity (IDIQ) acquisition contract that will be available to all C-130 FMS partner nations as well as all C-130 Technical Coordination Group (TCG) members. The procurement of major parts and support equipment will also include user operational familiarization to the receiving partner nation by the contractor as well as yearly customer support visits to ensure operational capabilities are met. This effort will also include parts storage and warehousing to allow the contractor to bundle for bulk shipment to the partner nation end user.

1.3 Benefit to US Government (USG): This contract will benefit the USG by providing an agile, streamlined acquisition IDIQ contract for the procurement of C-130 parts and support equipment to allow the FMS partner nations and TCG members to effectively manage all logistics, sustainment and maintenance activities on their C-130 fleet.

2.0 Performance Summary:

3.0 Government Property

3.1 Contractor Responsibility: The Contractor shall be responsible for Government property in their possession in accordance with Federal Acquisition Regulation (FAR), Part 45, and applicable supplements and shall be in compliance with all applicable guidance and clauses listed in the contract/task order.

3.2 Reporting of Government Property: The Contractor shall have a system of internal controls to manage (control, use, preserve, protect, repair, and maintain) Government property in its possession in accordance with FAR 52.245-1, and its property management system shall be adequate to satisfy the requirements of this clause. The contractor shall record receipt and return of all Government furnished property (GFP), as well as the reporting of shipment, consumption, disposal, or transfer to another contract, in the GFP Module in Procurement Integrated Enterprise Environment (PIEE), https://piee.eb.mil, as stipulated by DFARS 252.245-7002. This reporting requirement does not change the liability provisions or other reporting requirements that may exist under the contract. GFP training and guidance is located at the DoD Procurement Toolbox at https://dodprocurementtpplbox.com/.

3.3 Loss of Government Property

3.3.1 Definition of Loss of Government Property: “Loss of Government property” means unintended loss of or damage to Government property including property that cannot be found after a reasonable search, loss due to inadequate storage, loss due to lack of security, theft, damage requiring repair to restore the item to usable condition, or damage that renders the property useless for its intended purpose or Beyond Economical Repair (BER). Loss of Government property does not include manufacturing defects, obsolescence, normal wear and tear, or purposeful destructive testing. Unless otherwise stated in the contract/task order, loss of Government property does not include normal and reasonable inventory adjustments, i.e., losses of low priority consumable material, such as common hardware, as agreed to by the Contractor and the Government Property Administrator.

3.3.2 Reporting Loss of Government Property: The Contractor shall report loss of Government property in the GFP Module located in PIEE, https://piee.eb.mil/piee-landing/.

3.4 Return or Retention of Government Property: All property provided by the Government remains the property of the Government and shall be returned to the Government as directed, but no later than completion of the contract/task order, unless the Procuring Contracting Officer (PCO) directs the Contractor to retain the property for continued use under a successor contract. All Government property shall be returned to the Government in the condition provided unless approved in advance by the PCO. All material generated under the contract/task order becomes the property of the Government and shall be returned to the Government as directed, but no later than completion of the contract/task order, unless the PCO directs the Contractor to retain the material for continued use under a successor contract.

4.0 Technical Requirements:

4.1 C-130 Parts Procurement. The C-130 parts covers a broad range of parts to include avionics Line Replaceable Units (LRUs), engine and hydraulic components, aircraft structural parts, assemblies and sub-assemblies, hardware, and consumables. The primary objectives of the contract are timely processing of requisitions (from requisition receipt to shipment), best value prices, responsive customer support, quality material, and effective program management. For FMS and TCG users to use this contract, a country negotiated Letter of Offer and Acceptance (LOA), case designator, and line item which authorizes the support or procurement effort, as well as all other required data elements, must be provided.

4.1.1 Requisition Process. The Contractor shall institute a parts ordering system whereas the user can easily requisition the required part by identifying the item by its nomenclature, part number, national stock number (NSN) if available, quantity, Technical Order (TO) reference if available and FMS Case and line number and ship to address. The requestor’s name, phone number and email must be included on each requisition. A requisition priority will be assigned by the requisitioning program office to the Contractor based on the criteria listed in paragraph 4.1.2. The parts procurement requisition will be via email directly to the Contractor from our FMS and TCG program offices. In addition, the Contractor shall provide a Point of Contact (POC) and phone number, in case assistance is needed by the requisitioning program office. The Contractor shall ensure all requisitions submitted have all the required information prior to processing. The Contractor shall contact the submitter directly if there is any missing information or if there are additional questions concerning the requisition.

4.1.2 Approved Sources of Supply. The Contractor shall ensure all requisitions are only submitted to an approved USAF Sources of Supply. Approved Sources of Supply can be verified through the use of Commercial and Government Entity Code, or CAGE Code, assigned to that specific part number. Approved suppliers include USAF engineering-approved original equipment manufacturers and their authorized component manufacturer. The Contractor shall be responsible for the authenticity of the parts.

4.1.3 Repaired, Overhauled or Refurbished Parts. Due to parts obsolescence and Diminishing Manufacturing Sources and Material Shortages (DMSMS), the Contractor is allowed to procure repaired/overhauled or refurbished parts as long as the source of supply provides a Certificate of Conformance (CoC) stating that the part has been repaired/overhauled in accordance with the Original Equipment Manufacturer (OEM) standards. Repaired/overhauled parts mainly pertains to avionics LRUs and not structural parts.

4.1.4 Approved Part Numbers. The Contractor shall ensure only USAF-approved part numbers or approved suitable substitutes are requisitioned. Verification of authorized part numbers can be made through the specific USAF technical order Illustrated Parts Breakdown for the aircraft system pertaining to that item or online systems such as D043, Fedlog or Haystack. The Contractor shall notify the requisitioning program office if there are any questions concerning the specific part number(s).

4.1.5 Requisition Priority. The following priority system will be assigned to the Contractor for all parts requisitions.

4.1.5.1 Priority 1 – Aircraft on Ground, Contingency Operations or National Priority on requirements are most critical to the FMS customer’s military operations. They represent requirements that include, but are not limited to, grounded aircraft, contingency operations, and national disasters.

4.1.5.2 Priority 2 - Urgent

Urgent requirements are critical to the FMS customer’s military operations. They represent requirements that may not constitute emergency or immediate operational impacts.

4.1.5.3 Priority 3 - Routine

Routine requirements are less critical to the FMS customer’s military operations. They represent requirements that are not as time sensitive as Priority 1 or 2 requirements.

4.2 C-130 Support Equipment Procurement. The C-130 support equipment covers a broad range of items and parts to include general test equipment, specialized test equipment, wrap-around stands, maintenance stands, dollies, slings, hoists, pallets, specialized modular and palletized systems with roll-on/roll-off capabilities, specialized test equipment, tools, and hydraulic and power carts as well as any ancillary ground support equipment. The Contractor shall also ensure all operation manuals/instructions are included with the equipment, as applicable. The Contractor shall ensure the parts ordering system is the same system and process that is identified in paragraph 4.1. If multiple procurements are received by the same requisitioning program office, the Contractor shall coordinate with the requisitioning program office on the option on bundling parts for bulk shipment. The requisitioning program office will have the authority to request separate shipments if there is a delay on filling all requisitions in the bundle.

4.2.1 Equipment Familiarization. The C-130 FMS or TCG program office will identify which support equipment is considered major equipment that requires the user familiarization and customer support visits for up to two years. The Contractor shall ensure the procurement of major equipment will include initial user familiarization from the Source of Supply on the operation of the equipment and yearly customer support visits to ensure the program office end-user customer’s operational requirements are met as well as their contact information (name, phone number and email) in case the program office has any follow-up questions or issues.

4.3 Parts and Equipment Acquisition Timelines. Upon receipt of a user requisition, the Contractor shall have one (1) business day to acknowledge receipt of the requisition back to the requisitioning program office and determine if sufficient information is provided to start procurement action for the specific part or equipment. After acknowledging receipt of the requisition, the Contractor shall have three (3) business days for Priority 1 requisitions, five (5) business days for Priority 2 requisitions and ten (10) business days for Priority 3 requisitions to provide the initial status back to the requisitioning program office on where the requisition is in the acquisition process. If after ten (10) business days from the initial status timeline that a Source of Supply for a requisition is not available, the Contractor shall notify the requestor and a determination will be made to cancel the requisition or to keep the requisition open for further research. Once a Source of Supply is determined and the Contractor has pricing and availability, the Contractor shall notify the user within one (1) business day for Priority 1 and 2 requisitions and five (5) business days for Priority 3 requisitions upon receipt of this information.

4.4 Procurement Requirements. The contractor shall award contracts to vendors to fulfill requisitions while offering best value products and services in a timely manner, meeting small business goals, achieving competition, maintaining quality, and ensuring fair and reasonable pricing.

4.5 Solicitation Requirements. The Contractor shall obtain adequate price competition when soliciting vendor requisitions, as defined by FAR 15.403, FAR Part 6 (Competition Requirements), and the Competition in Contracting Act of 1984. The contractor shall adequately document fair and reasonable price determination In Accordance With (IAW) FAR Part 15.406-3 for all awarded requisitions, regardless of competition achieved. Requisitions for LOA directed sole source are excluded from competition requirement.

4.6 Fair and Reasonable Price Determination. The Contractor shall document fair and reasonable price determination for all awards. For those requisitions that exceed the Truth In Negotiations Act (TINA) threshold ($2,000,000), contractor shall make the certified cost and pricing data available to the Government, unless an exemption applies IAW FAR 15.403-1(b).

4.7 Sales Tax Exemptions. The Contractor shall ensure sales tax exemptions are documented appropriately according to state and federal laws. Where sales tax exemptions exist, contractor shall ensure vendor proposals or quotes received accurately reflect the exemption. If sales tax is applicable, contractor shall itemize these charges in all proposals/quotes.

4.8 Vendor RFQ/RFP Requirements. The Contractor shall ensure the Request for Quotes (RFQs)/Request For Proposals (RFPs) supplied to vendors include all applicable requirements such as, but not limited to terms and conditions, request for one-year warranty, Government Furnished Equipment (GFE)/Government Furnished Property (GFP), transportation requirements, requisition priority (Priority 1, 2 or 3), payment terms, certificate of current cost and pricing data for TINA compliance (when required), and commercial item determination.

4.9 Estimated Ship Date (ESD). Contractor shall provide accurate ESDs at the time of contract award to the requisitioning end user with a narrative message explaining long lead times, new production, ESD slippage, or other significant information that may assist the customer in logistics planning.

4.10 Price Quote/Price Revision

4.10.1 Price Quote. Price Quotes shall be Firm Fixed Price (FFP). Contractor shall ensure all costs have been included in the price to avoid any price adjustments after contract award. Customer price approval must be obtained prior to vendor award. Quotes shall be valid for 60 calendar days and available for customer approval for 60 calendar days or as offered by vendor. In rare instances, quote validity may be less than 60 calendar days. In these cases, Contractor shall notify customer to expedite approval.

4.10.2 Price Revision. The following list (not all inclusive) describes situations when contractor shall submit a price revision:

· Changes in requisition quantities

· Vendor transportation costs vary from original quote

4.10.3 Financial Approval. Contractor shall not proceed with vendor award until financial approval is received from the requisitioning program office.

4.10.4 Price Determination. To preclude unexpected cost or price increases to customer, contractor shall obtain concurrence from customer prior to award.

4.11 Communication

4.11.1 Customer Communication. If the FMS/TCG is placing requisitions on behalf of their foreign partner, the Contractor shall not communicate directly with the foreign partner unless previously approved by the FMS/TCG program manager.

4.11.2 Priority 1 Requirements: Contractor shall treat Priority 1 requirements in the most expeditious manner possible from receipt of requisition through shipment, to include resolution of Supply Discrepancy Reports (SDRs). The contractor shall closely manage every phase and detail of the procurement process and at a minimum shall:

1. Acknowledge receipt of requisition.

2. Notify customer when research/solicitation phase begins.

3. Notify customer when quote is received. Contractor shall offer quote with best ESD; fair and reasonable price determination shall be documented.

4. Notify customer of status when vendor contract is awarded.

5. Notify customer when significant change occurs (e.g. parts delays, manufacturing issues, etc.).

6. Provide response to customer questions within 5 business days. If contractor is unable to provide a complete response, contractor shall provide customer with interim explanation and a get-well date; contractor shall track and provide final response for all interim responses.

4.11.3 Urgent and Routine Requirements The contractor at a minimum shall:

1. Acknowledge receipt of requisition.

2. Notify customer when research/solicitation phase begins.

3. Notify customer when quote is received. Contractor shall offer quote with best ESD; fair and reasonable price determination shall be documented.

4. Notify customer of status when vendor contract is awarded.

5. Notify customer when significant change occurs (e.g. parts delays, manufacturing issues, etc.).

6. Provide response to customer questions within 10 business days. If contractor is unable to provide a complete response, contractor shall provide customer with interim explanation and a get-well date; contractor shall track and provide final response for all interim responses.

4.15 Travel: Travel may be required on a limited basis for this effort. Travel requests for contractor/subcontractor personnel shall be submitted for approval to the Contracting Officer prior to costs being incurred and a minimum of ten business days in advance of departure. Receipts must be presented with the invoice for reimbursement of actual travel costs. Travel by Contractor personnel shall be conducted IAW Federal Acquisition Regulation (FAR) 31.205- 46, Travel Costs. https://www.acquisition.gov/content/31205-46- travel-costs.

4.16 Contract Data Requirements List (CDRL): Utilization of CDRLs shall be identified at the task order level.

Reference(s)

5.9.3

D005

MSR Report 5.11.2

4.16.1 Quality of CDRL Deliverable: There shall be no more than one (1) rejection of any deliverable. There shall be no more than one (1) total rejection(s) of deliverables per quarter. The Government will reject a deliverable if one (1) or more technical errors or two (2) or more minor errors are found within the deliverable. A technical error is defined as the format not being in accordance with the CDRL or the content not being accurate and complete in accordance with the CDRL, SOW or contract/task order. A minor error is exemplified by a typographical error, a grammatical error, etc. The rejected deliverable shall be corrected and resubmitted within five (5) business days of notification of Government rejection in accordance with the associated DD Form 1423 instructions/requirements.

4.16.2 Receipt of CDRL Deliverable: CDRL deliverables may be submitted via Wide Area Workflow (WAWF) and submitted directly to the Multi-Functional Team (MFT) member identified on the CDRL. There shall be no more than one (1) late submission of deliverables per quarter. The Contractor shall notify the Government if the delivery of any data/document will not meet the scheduled delivery date and negotiate a revised delivery date. The data/document shall be delivered by the revised delivery date acceptable to the Government.

5.0 General Information

5.1 Quality Assurance (QA) Management

5.1.1 Standard items. The Contractor shall ensure conformance to design drawings, specifications, and approved sources provided by USG for supply and maintenance requisitions. Contractor shall provide a Certification of Conformity (CoC) for all material and maintenance delivered under this contract.

5.1.2 Non-standard items. Non-standard items are items that are no longer actively managed by the USAF Supply System. The Contractor shall notify USAF engineering on any requisitions for non-standard items to ensure conformance to design specifications, e.g. commercial, federal, or OEM. Contractor shall provide a Certification of Conformity (CoC) for all material and maintenance delivered under this contract. Contractor shall remain fully committed to providing each customer with supply items that prevent defects and preserve safety, suitability, and system effectiveness while meeting USG and/or commercial specifications and standards.

5.1.3 Quality Assurance Program Plan (QAPP). Contractor shall develop and execute a QA Program IAW the approved QAPP. Subsequent revisions to the QAPP shall be forwarded to USG. The contractor shall make the QAPP available for USG 30 days after contract award. At a minimum, the following areas shall be addressed in the QAPP: Process for contractor to attain and maintain certification to ISO 9000 or equivalent industry quality standards.

1. Process for quality records and data management

2. Conformance with FAR and supplements

3. Standard terms and conditions

4. QA orientation

5. Process of conducting surveillance/audits

6. Communication and customer relations

7. Procurement processes

8. Vendor qualification process

9. Process of verifying incoming/outgoing material, proper packaging, and accuracy of shipping documentation (as applicable)

(CDRL A001, B001, C001, D001, E001 Quality Assurance Program Plan, DI-QCIC-81794A)

5.1.4 Certificate of Conformance (CoC). The CoC is documented affirmation that the item or repair provided conforms to the following: drawings, specifications, approved instructions, industry standards or approvals, aviation regulations, company standards, government approvals, OEM traceability, etc. The COC shall be signed by a person ‘authorized’ by the manufacturer to do so. Contractor shall provide a CoC for each item and repair supplied. When applicable, the CoC shall reflect the serial number. If material does not contain a serial number, contractor shall provide the lot or batch number, or other identification markings associated with material. The warranty period shall also be reflected on the CoC. It is implied that the representative has firsthand knowledge or supporting documentation available that affirms that the contract item or repair is conforming in all respects. For the purpose of this contract, the CoC is considered to be the equivalent of a DD Form 250.

5.1.4.1 Contractor shall provide a copy of the CoC with each shipment, maintain an electronic copy within their interim payment request file, and include a copy with electronic interim payment request file provided to the USG. Failure to provide the CoC within the interim payment request package will result in the payment being withheld.

5.1.4.2 In most cases, the CoC will satisfy documentation requirements for acceptance, however depending on vendor location and specific customer import regulations, a USG signed DD250 may be required. In these cases, and upon request by the USG, contractor shall fill out a DD250 and submit to the USG for signature.

5.2 Award to Qualified Sources. Contractor shall award requisitions only to qualified sources not currently debarred or suspended by the USG. Criteria for a qualified source may include but is not limited to: designated OEM approved source, Federal Aviation Administration (FAA)/ Joint Aviation Authorities (JAA) approved source, assigned US CAGE Code, possession of ISO 9000 certification or compatibility, and capability to handle classified material. Regardless of awarded source, the contractor shall be required to obtain and maintain OEM (or approved, qualified source) traceability documentation; successful completion of First Article Testing will also satisfy traceability documentation requirements.

5.3 Quality of Data. Contractor shall ensure all data is accurate, legible, and complete. Data includes, but is not limited to, supply status, billing, technical, re-procurement, and engineering/drawings. Contractor shall contact customer or USG for instructions if data necessary to procure items or perform maintenance is not available.

5.5.1 One Year Warranty. Contractor shall attempt to obtain a one-year warranty on materials and workmanship that is at least the same terms offered to the general public or other customers in customary commercial practice. If a one-year warranty cannot be obtained, contractor shall notify customer and must receive approval prior to award. Contractor shall track and maintain warranty information. Contractor shall provide a copy of warranty to USG with the electronic interim payment request package. Warranty timeframe begins when the title transfers from vendor to customer at initial point of shipment which will be at the vendor’s loading facility. If vendor requires exhibit to be at its facility (versus USG turn-in point) within specified warranty timeframe and turn-in date will occur in less than 180 days, contractor shall notify customer. For latent defects, the warranty timeframe is governed by the latest version of Defense Logistics Manual (DLM) 4000.25. Contractor shall be liable for any warranty time lost due to contractor’s quality inspection (not applicable to Defense Travel System shipments).

5.5.2 Documentation. Contractor shall provide a copy of warranty to customer. Warranty documentation shall be placed within the package used to ship item(s). If warranty documentation is received after shipment, Contractor shall send a copy of warranty to customer and retain a copy.

5.5.3 Component/Part Deficiency Reporting. The FMS/TCG program office will report any discrepancies on the procured components/parts IAW T.O. 00-35D-54. The FMS/TCG program office will notify the Contractor of the discrepancy and work with the Contractor on resolution. Reportable discrepancies are those that are attributed to non-conformance to applicable specifications, drawings, standards, agreements, technical orders, work packages, etc, resulting from workmanship or incomplete/incorrect processes during manufacture, repair, modification or maintenance.

5.6 Security Requirements

5.6.1 USG System Access Requests. Prior to being granted access to USG systems, Contractor shall submit a DD Form 2875 (System Authorization Access Request) for each employee. The DD 2875 requires a favorable Tier 1 Investigation and USG contracting officer concurrence. Additionally, the contractor shall complete all USG required security training. This includes either the DoD IAA Cyber Awareness v2.0 (Course ZZ133098) available on the Advanced Distributed Learning Service (ADLS) website at https://golearn.csd.disa.mil or the Cyber Awareness Challenge course for Department of Defense Employees available on the Defense Information Systems Agency (DISA) website at http://iase.disa.mil/eta/cyberchallenge/launchPage.htm.

5.6.2 Non-US Citizens. Contractor shall consult USG contracting officer prior to any non-US citizen being placed on any position with access to specific customer program information. USG contracting officer will determine if access will be granted.

5.6.3 Customer Data Handling. Contractor shall consider all customer information data as “Unclassified Controlled Information.” Contractor shall ensure no country information is referenced within another country’s messages, communications, narratives, briefings, etc.

5.7 Packing, Crating, Handling and Transportation (PCH&T)

5.7.1 Packaging/Crating. Unless otherwise directed by USG contracting officer, the Contractor shall package USG material for favorable warehouse conditions (level A/B) as referenced in MIL-STD 2073-1E, Change 1, Paragraphs 3.10 and 5.3, Standard Practice for Military Packaging. Packaging requirements are also dictated by mode of transportation used such as USPS, FEDEX, UPS, or other small package services. For hazardous materials, performance-oriented packaging shall be accomplished in accordance with AFJI 24-210. Packaging is also dictated by shipment mode. For movement by commercial air, the International Air Transport Association (IATA) Dangerous Goods Regulation applies (www.iata.org/whatwedo/cargo/dgr/Pages/index.aspx); for ocean movement, the United Nations International Maritime Dangerous Goods (IMDG) Code applies (www.imo.org/OurWork/Safety/Cargoes/Pages/DangerousGoods.aspx). At Contractor’s discretion, photographic documentation (excludes classified items) of material can be maintained to include: container condition, outer/inner packaging, contents, quantity, size, weight. Documentation will aid contractor’s recommendation to USG of SDR validity.

5.7.2 Handling/Marking. Contractor shall implement and use procedures for shipping labels IAW DOD 4500-9-R, DTR, Part II, Cargo Movement, Appendix E. Contractor shall ensure numerical Level of Service priority is identified on all shipment documents. Containers shall be marked IAW MIL-STD-129R, Chapter 4. For items requiring Item Unique Identification (IUID), contractor shall mark per MIL-STD-130N, Change 1. The IUID policy, with associated guidance is available at http://www.acq.osd.mil/dpap/pdi/uid/.

5.7.2.1 IUID. The contractor shall use MIL-STD-130N, change 1 criterion and DFARS 252.211-7003 Item Unique Identification and Valuation (DEC 2013) to determine if IUID is applicable for standard item supply support requirements; IUID does not apply to maintenance or non-standard supply requirements at this time.

5.7.3 Temporary Storage. Contractor shall ensure secure temporary storage for all assets accepted at the contractor’s facility. Contractor shall immediately research such shipments and take appropriate actions to secure and safeguard material.

5.7.4 Electro-Static Discharge (ESD) Handling. Contractor shall be equipped to handle ESD-sensitive material.

5.8 Transportation

5.8.1 Contractor shall maintain in-transit visibility of all shipments and comply with special shipping instructions contained in requisition or directions provided by USG. Contractor shall ensure appropriate level of material verification and inspection is accomplished upon receipt at repair location and/or shipment to customer; contractor shall not charge customer for additional quality inspections.

5.8.2 When appropriate, and not causing a delay, contractor shall consolidate items into larger shipments as a cost saving advantage to customer. Contractor shall follow Consolidation guidelines as outlined in DOD 4000.25-1-M C6.17. Contractor shall maintain proof of shipment records for all material shipped.

5.8.3 If Defense Travel System (DTS) shipments are utilized, DTS shipments shall be IAW AFMAN 16-101, Chapter 6 and DOD 4500.9-R Defense Transportation Regulation (DTR), Part II, Cargo Movement, Appendix E. If DTS mode of shipment is identified within requisition, the material shall be stored while awaiting customer approval to move through DTS.

5.8.4 Export guidance regarding the above requirements can be located in DOD 5105.38-M, Security Assistance Management Manual, Table C7.T8, Export Documentation Requirements. Exports of hardware controlled by International Traffic in Arms Regulations (ITAR), regardless of type of approval (e.g. license, agreement, or exemption), require filing of export information with Bureau of Customs and Border Protection using Automated Export System (AES). Information about the AES is available at the following websites: www.pmdtc.org and www.cbp.gov/xp/cgov/export/aes/.

5.9 Invoicing

5.9.1 Invoicing Responsibility. Contractor has financial responsibility to promptly transfer funds reimbursed by USG to pay vendors within a reasonable timeframe and in a similar manner that USG pays contractor. Contractor shall fulfill this responsibility as described below and IAW FAR 52.232-25 Prompt Payment.

5.9.2 Interim Payment Request Process. Payment to contractor for an awarded requisition typically consists of:

· Cost of material for supply items and maintenance services

· PCH&T and storage charges incurred by vendor

5.9.3 Invoicing Prepayments. Under certain conditions where the vendor requires payment prior to shipment of an order, contractor shall submit an interim payment request USG only for the amount allowable IAW FAR 52.216-7, Allowable Cost and Payment. Contractor shall ensure the following is included at the time of interim payment request IAW paragraph 5.9.2:

· Signed Prepayment request form

· Copy of contractor's check, wire transfer, or credit card receipt

· Copy of contractor's purchase order

· Documentation of prepayment requirement (either vendor or contractor) (CDRL A002, B002, C002, D002, E002 Contract Invoicing and Payment Report, Interim Payment Request, DI-MGMT-81651)

(CDRL D005, Phase-Out Transition Plan, Transition Closeout Plan DI-MGMT-81945)

(CDRL A003, B003, C003, D003, E003, Agenda, DI-ADMN-81249C) (CDRL A004, B004, C004, D004, E004, Minutes, DI-ADMN-81250C)

5.11.2 Monthly Status Reports (MSR). The Contractor shall provide an MSR by the fifth business day of every month. The monthly reporting period starts on the first calendar day of the month and ends on the last calendar day of the month. The MSR shall include:

· Number of requisitions by Priority category received for the monthly reporting period

· Number of requisitions by Priority category filled for the monthly reporting period

· Number of requisitions delivered by Priority category for the monthly reporting period

· Updated GFP list currently warehoused

· Any programmatic issues/concerns that need to be addressed

(CDRL A006, B006, C006, D006, E006, Monthly Status Report, DI- MGMT-80368A)

6.0 Appendices

6.1 Appendix A: References

as amended through January 1, 2004

Entire

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