ENCLOSURE 1 - F Series COI Statement of Work (SOW).pdf

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ENCLOSURE 1

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SECTION A

GENERAL INFORMATION

F Series Engines Performance-Based Supply Chain Management Support

A.1 Overview This solicitation is for award of an engine specific subsumable contract, for holistic performance-based support of the F101, F110, and F118 General Electric (GE) Aircraft Engines.

This subsumable contract will be for a FAR Part 15 multiple year, Requirements-Type contract, and is anticipated to be Firm-Fixed Price with one (1) five-year base period and (1) five-year option period for a total potential contract duration of ten (10) years. Current support of this requirement is performed under the F Series COI (SPE4AX-15-D-9412) with General Electric and expires May 31, 2023.

The Statement of Work (SOW) at Section C herein identifies the Government’s objectives for the F Series COI Follow-On subsumable contract. The Contractor is instructed to provide its proposal that meets the Government’s objectives while providing a holistic solution at a fair and reasonable price.

All terms and conditions of the proposed GE COI SCC umbrella (SPE4AX-18-D-9418) contract apply to this solicitation.

SECTION B

SCHEDULE OF SUPPLIES/SERVICES

There are two attached appendices within the Statement of Work as follows: Appendix A (GE sourced) and Appendix B (DLA sourced). Please provide pricing as outlined in Enclosure 2 of the Letter Request for Proposal (RFP), and in Section C.7 herein. The five-year option will be unpriced with Prospective Price Redetermination.

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Option Period: In accordance with FAR 52.217-9, the Government will notify the Contractor of its intent to exercise the option no later than 180 days prior to the end of the current performance period. At the time of notification, the Government will provide quantities for the stated Option Period and the Contractor shall commence proposal preparation to ensure that Pricing and Delivery is established through bi-lateral contract modification at the time of exercise of the applicable Option Period of Performance.

SECTION C

STATEMENT OF WORK (SOW)

See Attachment 1 – Statement of Work (SOW)

CONTINUATION

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SECTION C

STATEMENT OF WORK

C-1. GENERAL

C.1.1 Defense Logistics Agency (DLA) is currently supporting consumables requirements for the F101, F110, and F118 General Electric (GE) Aircraft Engines, referred to as the “F Series Engines”, via current contract SPE4AX15D9412 (GE F Series Captains of Industry [COI]). Current support includes GE-sourced NIINs and DLA-sourced NIINs as Backup support.

C-2. SCOPE AND OVERVIEW

C.2.1 The Contractor shall provide holistic consumables support to the United States Air Force (USAF) and Foreign Military Sales (FMS) partner countries. The Contractor shall strive to increase F Series engine availability through improving no awaiting consumables1 status, assisting the USAF customer to meet or exceed its War Ready Engine (WRE) allocation requirements, at a reduced overall cost to the Government. Specifically, this contract requires the Contractor to:

(1) Decrease outstanding consumables requirements, and fill requisitions within material availability priorities (except Non-Cooperative Logistics Supply Support Arrangement (CLSSA) demand).

Contractor responsibilities potentially include ordering, guiding, and monitoring consumables utilizing the data sharing and communication processes described in C.4.2.1.5.1, ensuring consumables needed for maintenance are available within delivery standards, and meeting availability requirements of emergent demand consumables thereby reducing costs to the DLA;

(2) Reduce Oklahoma City Air Logistics Center (OC-ALC) and world-wide unfilled orders2 (Non-OC-ALC

USAF and FMS CLSSA (except Non-CLSSA)) for consumable components and pursue zero unfilled orders for world-wide demands for the life of the contract. Throughout the contract term world-wide demand shall refer to all non-OC-ALC USAF and FMS CLSSA requisitions for consumables.

FMS Non-CLSSA requisitions shall be excluded from metrics, but the Contractor shall be responsible to satisfy Non-CLSSA demands no later than the production lead time of record at Appendix A after receipt of the requisition;

(3) Accelerate OC-ALC repair turnaround time and increase engine “time on wing” through enhanced engine repair status monitoring and management support;

(4) Enhance DLA supply chain management activities for DLA-sourced consumables through forecasting of OC-ALC demand associated with DLA-sourced items, monitoring the DLA supply chain, and providing recommendations and backup supply support to ensure available and on-time material delivery for DLA-sourced items.

1 For the purpose of this contract, “consumables” is defined as the set of parts listed in Appendices A and B. Appendix A represents the Contractor-sourced subset of parts and B represents the DLA-sourced subset of parts 2 As defined on contract award date

Additional services may be included as potential future additions to this contract. Pricing for these potential future additions shall be negotiated between DLA and/or USAF as applicable, and the Contractor at a later date.

C.2.2 This contract includes one five-year base period, and one five-year option period, to be exercised at the discretion of the Government. The five-year base period shall be Firm Fixed Price with price redetermination at year three, and the option period is subject to Fixed Price Redetermination with an additional price redetermination at year three of the option. The end-to-end F Series Engines support shall be acquired via a Requirements-type contract with Fixed Prices (FP) and cost and performance incentives and annual reconciliation based on demands. Accordingly, the contract shall also include a mechanism, specifically detailed in the Demand Variation section (C.5.2), to compensate for demand risk. An incentive fee structure shall be created in lieu of a typical incentive fee structure used in a Fixed Price Incentive Fee Contract. The elements used to execute the incentive fee structure and cost sharing applied during the performance of the contract may include retroactive price adjustments, verification, contract price adjustments, and record retention.

The Government may extend the term of this contract through exercising the option by providing written notice to the Contractor within 12 months prior to contract expiration; provided that the Government gives the Contractor a preliminary written notice of its intent to exercise at least one year before the contract expires, all in accordance with the timeframes established at FAR 52.217-9.

C.2.3 Program Overview To meet the performance requirements for Contractor-sourced consumables as defined in Appendix A, the Contractor shall perform some, or all, of the following logistics management functions by applying their Original Equipment Manufacturer (OEM) based engineering and technical expertise to improve: depot maintenance turnaround times, supply support, demand planning, vendor management and readiness, material management, inventory management and warehousing, asset management, Maintenance/Repair/Overhaul (MRO) expertise, master data management, payments and order fulfillment, reliability, engineering support and sustainment elements, obsolescence management, inbound/outbound logistics, packaging, storage, transportation, reclamation, quality management, supply chain risk management, configuration management, and field engineering support.

The Contractor shall support, and be responsible to fulfill, all demand from OC-ALC and DLA world-wide demand. Both the Contractor and DLA shall provide consumables to fulfill demand. DLA and/or the USAF (as outlined in a Memorandum of Understanding (MoU)) shall provide the Contractor with access to USAF System and DLA Systems or data3 to support demand tracking and forecasting.

C.2.4 Summarized Program Overview

3 Note: In regards to any USAF System and/or DLA Systems or data references throughout this document, the terms “USAF System” and/or “DLA Systems or data” refers to the respective systems of file sharing directly, or any associated, relevant, similar, replacement, or future upgraded system required to fulfill the operational intent alluded to in this contract.

GE COI Metrics Matrix OC-ALC Worldwide and FMS CLSSA GE Sourced DLA Sourced GE Sourced DLA Sourced

ORT √ - - -

MA √ - √ -

Backorders √ - √ -

The system of record for all performance metrics specified above will be DLA EBS or USAF systems.

C.2.5 The logistics solution being acquired is a more comprehensive and complete supply chain management program delivering Contractor-sourced and DLA-sourced consumables. The population of items poses significant engineering, technical, diminishing manufacturing sources and raw material acquisition challenges. Real-time access to the engineering expertise, technical data and understanding of the manufacturing processes offered by the Contractor as the Original Equipment Manufacturer (OEM) is essential to successful supply support for F Series Engine maintenance.

C.2.6 The Contractor shall support requisitions for both OC-ALC and DLA world-wide demand by resupplying DLA inventory through the data sharing and communication processes described in C.4.2.1.5.1, that facilitates the Contractor’s supply of material to DLA through push mechanisms and thus, outside of standard delivery order processes. The Contractor shall be able to view the data the Government uses to forecast demand in USAF systems and DLA Systems or data. The Contractor shall be responsible for managing several supply chain management activities, including but not limited to forecasting, acquiring, stocking, and monitoring distribution of consumables to fulfill contract requirements via both onsite and remote operations in accordance with the requirements of this contract. As the USAF is not party to this contract, the Contractor shall pursue a separate MoU with the USAF, to be incorporated as Appendix C herein, to define data requests and associated activities to fulfill the requirements of this contract. To the degree possible, DLA shall work with the Contractor and the USAF to ensure data requests are fulfilled.4

C.2.7 For DLA-sourced consumables, the Contractor shall have several major and related responsibilities. Primarily, the Contractor has a responsibility to monitor DLA’s consumables pipeline and OC-ALC demand rates, and develop recommended adjustments to DLA’s retail allowances at OC- ALC, as well as DLA’s acquisition planning timelines. Recommendations may include considerations for DLA to increase or decrease recommended allowances or existing buy quantities, generate new purchase requests (PRs), or expedite deliveries of current contracts. Initially, the Contractor shall submit these recommended adjustments via Microsoft Excel spreadsheet to DLA’s Administering Contracting Officer (ACO) monthly. The reporting requirement shall focus only on items with recommended pipeline changes and the analysis generating and justifying the recommendations. The Contractor shall utilize engineering management intelligence to inform DLA’s demand forecast for the DLA-sourced

4 Terms in this contract are contingent upon USAF support and becoming a party to the intended MoU; inability of the Contractor and USAF to mutually agree to the intended MoU is subject to potential contract renegotiations.

consumables intended for OC-ALC, monitor DLA’s acquisition pipeline to identify and possibly satisfy any gaps that could impact requirements and maintain responsibility to mitigate “gaps” in DLA supply in the event that DLA’s inventory is insufficient to fulfill demand for DLA-sourced parts. Gaps may be filled via the DLA Backup Support, Section C.4.2.2.3 below.

C.2.8 Government Representatives The Government shall assign a Procuring Contracting Officer (PCO) and Program Manager (PM) to be the primary points of contact for the GE Contracts Manager and Contractor’s Program Manager. All contract changes shall be made via the PCO, or during contract execution, the ACO.

C-3. CONTRACT TRANSITION & IMPLEMENTATION

C.3.1 Government Attrition and Contractor Assumption of Responsibility

C.3.1.1 DLA and/or OC-ALC shall provide inventory, demand, and backorder position data via DLA Systems or data and USAF systems that is required to facilitate Contractor monitoring of the attrition and fulfillment of requisitions and/or orders. The Contractor shall supplement DLA systems data and USAF systems data by leveraging unique engineering and maintenance data to refine the demand forecast. DLA orders processed and due-in as of the date of contract award shall be completed and delivered into Government inventory.

C.3.1.2 Preexisting BOs will not be incorporated within backorder metrics. A list of open BOs will be agreed upon by both parties at the start of contract. The Contractor is responsible for filling any open BOs along with new requisitions. The order of fill is determined by business as usual for DLA and new requisitions are not automatically filled first. Any new requisition not filled, will be considered a new

BO.

C.3.2 Program Management Review (PMR)

C.3.2.1 While not solely applicable to contract implementation/transition, PMRs shall be held annually. The intent of the PMRs is to monitor and assess contract performance against contract objectives and defined contract requirements, and to coordinate responses and foster solutions to challenges encountered during and after contract implementation.

C.3.2.2 If Contractor performance warrants it, the PCO may expand the PMRs to semi-annually and shall provide the Contractor written notification no later than 45 days prior to the next scheduled PMR.

If performance warrants it, the PCO or Contractor can reinstate the original PMR requirements at the conclusion of a semi-annual PMR. Less formal in-process meetings, occurring telephonically, are anticipated to occur throughout the contract term, as necessary.

C.3.2.3 PMRs shall be held in-person, if possible, at predetermined locations. The Contractor shall host the first PMR and the Government shall alternate hosting subsequent PMRs.

C.3.2.4 The PMRs shall be co-chaired by DLA Aviation and the Contractor. The Contractor shall develop an agenda (in accordance with the list of elements below and as approved by the PCO) and distribute the agenda to prospective attendees no later than 5 days before the PMR.

C.3.2.5 During the PMR, the Contractor shall provide status of schedules and support goals, any process improvement initiatives, and provide status on the following elements:

(a) Support Overview – to include overall schedule status (Delays, Concerns)

(b) Metric Performance

(c) Supplier Issues

(d) Item Support Issues

(e) Quality/Safety Issues

(f) Obsolescence / DMSMS Issues

(g) Previous PMR Open Action Items/New Action Item

C.3.2.6 The Contractor shall submit PMR minutes for approval by the PCO within 10 days after each PMR. Other Program Reviews may be conducted as mutually agreed between the Government and the Contractor. DLA and the Contractor are mutually responsible for tracking and resolving, as appropriate, action items identified during the PMR. Action items shall be assigned aggressive due dates and shall be the first agenda item on subsequent PMRs.

C-4. HOLISTIC F SERIES ENGINES SUPPORT

C.4.1 Support for OC-ALC Operations The Industrial Customer is defined as any consumables requisition received by DLA, for the Customer: PMXG (component lines) and CMXG, Oklahoma City ALC, DODAACs FB2037, FB2039, and UY9468.

C.4.2 Contractor Support This section defines the tasks the Contractor must perform to satisfy the integrated supply chain management requirements to support the depot maintenance of F Series Engines and components at OC-ALC and world-wide demand. It is imperative that the Contractor executes a disciplined integrated support approach to meet the requirements of maximizing F Series Engines availability for the USAF and FMS customers. The Contractor shall leverage and synchronize existing engineering expertise with supply chain management for increased availability of consumables in Appendix A, facilitate reliability improvements, manage configurations and obsolescence, and reduce overall supply chain costs. All Contractor support processes shall be transparent to the customer, and the customer shall continue to use existing DOD IT consumables ordering and material management systems.

The Contractor shall support MRO activity through integration with OC-ALC support teams, presence in production meetings and material replacement rates reviews to understand demand fluctuations and enable more accurate forecasting. The Contractor shall conduct reviews with OC-ALC production personnel in accordance with existing OC-ALC timelines and the USAF MoU to ensure the consumables bill of material is accurate.

The Contractor intends to integrate Contractor resources into select DLA distribution and OC- ALC repair functions in order to support order response time material availability requirements for consumables outlined in Appendix A. Specifics will be detailed in supporting MoUs. Resources at the engine repair line are for informational purposes and intended to gather feedback to improve processes.

The following graph outlines the roles and responsibilities that each stakeholder is expected to execute in support of this statement of work. Below, steps are detailed in the subsequent sections.

NSN 7540-01-152-8067

US GOVERNMENT PRINTING OFFICE 1990-262-

50336

OPTIONAL FORM 336

(4-86) Sponsored by GSA

C.4.2.1 Contractor-Sourced Supply Activities

It is acknowledged the Contractor electronic/data and physical accesses to Government systems and facilities described, referenced and implied in the C.4.2 subparagraphs below shall be addressed and detailed in the pending DLA/USAF and Contractor MoUs, which are required for successful performance of contract requirements. Once the MoUs are negotiated, preferably prior to contract award, they will be incorporated as contract appendices.

C.4.2.1.1 Demand Forecasting The Contractor shall forecast the consumables specified in the F Series Bill of Materials at Appendix A and B. The Contractor shall utilize commercial systems along with available Government intelligence which may include Government system accesses or file sharing and participation in planning or events to support alignment of consumable forecasts to meet or exceed contract ORT and MA performance requirements.

C.4.2.1.2 Material Resource Planning (MRP) The Contractor shall provide a forecasted demand from demand planning, in combination with an induction schedule to translate to a master schedule. The master schedule shall be based on the induction schedule from the USAF systems and on-hand inventory from DLA Systems or data used to determine the quantities of consumables.

C.4.2.1.3 Sourcing For Contractor-sourced consumables, the Contractor shall forecast, source and supply consumables based on demand planning as required to meet order response time (ORT) and material availability (MA) requirements outlined in this contract.

The Contractor shall acquire material through Government and Contractor approved sources within its supply chain. The Contractor shall ensure all consumables provided by the Contractor meet the Government technical and specification requirements and comply with Contractor quality standards.

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The Contractor shall validate and certify to the Government at the time of proposal that the Contractor is in possession of all necessary technical data to source the consumable requirements.

C.4.2.1.4 Order Management / Requirements The Contractor shall initiate buy recommendations based on the Contractor demand forecast via the SIO process shown below. Upon receipt of the Contractor item and quantity inventory replenishment list, the DLA system will process the Contractor buy recommendation to generate the associated NIIN and quantity due-in in the DLA distribution system and separately, release an order to the Contractor.

This order shall be in the format of a Stock Transport Order (STO) vice a traditional, delivery order. The forecast/buy recommendation sharing and STO creation process requires use of Electronic Data Interchange (EDI) transactions.

C.4.2.1.5 Distribution The Contractor shall plan and acquire the material required to satisfy the requirements for F-Series engine at OC-ALC and for world-wide customers. Appropriate levels of inventory shall be pushed through the data sharing and communication processes described in C.4.2.1.5.1, to the DLA Distribution System. Existing DLA distribution infrastructure shall be utilized to store consumables and materials in support of consumable requirements. Distribution of consumables is defined as movement from DLA storage facilities (DDOO and/or SSCs) to the OC-ALC PLS receiving location. The Contractor shall monitor the performance of distribution based on the terms developed in a MoU with DDOO and DLA-A OC-ALC distribution personnel, incorporated at Appendix D. The Contractor shall be able to monitor requisition and issue data through the DLA Data Systems agreed to in the MoU.

DLA and or the USAF shall provide the Contractor with workspace, at or near the OC-ALC workshop, supporting the F-Series engine related repairs and at other locations as appropriate, for approximately 4-5 Contractor personnel. The Contractor shall be responsible for paying for internet connectivity costs and any monthly recurring charges rendered by the internet provider, excluding any costs to outfit the offices with internet cables, monthly utility costs or other facility related or building maintenance costs.

To support the contract statement of objectives and intent, the contractor shall embedded personnel with OC-ALC repair workspaces.

C.4.2.1.5.1 Outbound Logistics The Contractor shall distribute outbound Contractor-sourced consumables from the Contractor supply chain to the DLA warehouse facility (DDOO). The Contractor shall plan, handle and submit advanced shipment notification for all Contractor- sourced consumables, and utilize Government Bill of Lading (GBL) transportation to deliver consumables. All consumables delivered by the Contractor shall be FOB Origin (Freight on Board), with a title transfer to DLA occurring at point of shipment (FOB Origin). On an exception basis, the Contractor, at its own cost, may utilize commercial transportation means to expedite Contractor-sourced consumable deliveries.

Additionally, in the event that GBL transportation is not available; the Contractor is authorized, but not required, to use commercial transportation to ship Contractor-sourced consumable material. The Contractor is directed to report the incurred transportation charges to the Contracting Officer and provide supporting documentation for the charges. The Contracting Officer will adjust the monthly LOT payment order to reimburse reasonable and justified expended transportation charges. In the event GBL transportation is not available, and the Contractor elects not to use commercial transportation, the event shall be considered an excusable delay, and the Contractor shall not be responsible for late deliveries.

The Contractor shall comply with a data sharing and ordering process in which the Contractor will supply its forecast in order for DLA to generate Stock Transfer Orders (STO) via an EDI transaction to create material due-ins at the applicable DLA depot. The forecast sharing and STO creation process requires use of additional EDI transactions, as specified in Section C.8.

C.4.2.1.5.2 Route Selection / Optimization If DLA or the Contractor determines a requisition involves a critical material requirement, both parties shall work with the Government transportation office to ensure timely delivery.

C.4.2.1.5.3 Inbound Logistics DLA shall receive and subsequently manage material in the DLA Distribution system as well as design, plan, and prepare for consumable distribution. DLA shall also provide access to appropriate DLA systems for the Contractor to obtain a list of receipts, at a frequency agreed to via the incorporated MoU.

C.4.2.1.6 Inventory and Warehouse Management As intended for inclusion in the USAF MoU, the Contractor shall have access to appropriate USAF and DLA systems to monitor and provide oversight and guidance regarding inventory levels and delivery schedules to ensure the Contractor shall satisfy the requirements of this contract.

The Contractor shall have access to consumable-level inventory as it is currently available. As required to fulfill the contractual requirements the Contractor intends to establish a capability to deliver critical emergent consumables in accordance with the USAF MoU. The Contractor onsite representative shall maintain situational awareness of physical location and storage of the Contractor-sourced consumables and DLA-sourced consumables.

The Contractor shall provide onsite oversight and guidance to ensure that the consumables allocation meets the objective of inventory burn down and contract performance targets.

C.4.2.1.6.1 Base Access OC-ALC access clearance requirements shall apply. The Contractor shall comply with all access and security requirements set forth via the USAF for each employee requiring regular base/repair site access. The Contractor shall complete and return applicable forms required for base/repair site access during contract implementation. If required, DLA will assist the Contractor in gaining access to USAF operational sites in performance of requirements as stated is this SOW.

DLA/USAF security officials shall complete a background check for each Contractor employee requiring base/repair site access. Upon contract award, the Contractor shall provide to the PCO or identified Contracting Officer Representative (COR), the personal information for each of these employees including, but not limited to, name, address, date of birth and Social Security Number. The Contractor shall be required to maintain a record of this information and update it throughout the life of the contract.

Contractor personnel security language can be found in Appendix F.

C.4.2.1.7 Performance Analytics As to be included in the USAF MoU, DLA shall facilitate Contractor access to engine flight hour forecast, fleet size, installed / spare engine information, engine repair and removal forecasts, (UER/SER as applicable), engine failure and repair data to include failure mode, life use information, and any factors that impact consumable and repairable part life. The Contractor may use this information to identify opportunities for life extensions, alternative manufacturing and material considerations, repair opportunities and consumable cost reductions, and improved demand forecasting, in support of end-to-end cost reduction.

C.4.2.1.8 Used Material Opportunities The Contractor, DLA, and USAF shall work together on a best effort to identify used material opportunities in the future to improve material availability and reduce cost.

C.4.2.1.9 Obsolescence and DMSMS The Contractor shall implement an obsolescence and DMSMS monitoring program with the intent to identify and notify DLA of current and future obsolescence issues for DLA-sourced consumables. The Contractor shall provide the Government with obsolescence status briefs for all material listed in Appendix A during the regular PMRs.

C.4.2.1.10 Asset Management The Contractor shall support DLA and OC-ALC to manage the entire engine lifecycle, including service schedules, identification, and consumable usage to support improved OC-ALC capabilities and experience as agreed to in the MoU.

C.4.2.1.11 Quality Management The Contractor shall manage quality to ensure that Contractor-sourced consumables are delivered on time and meet required technical specifications.

In addition, the Contractor or its supplier shall maintain a Quality System that addresses the elements of ISO 9001-ANSI/ASQC Q9001, quality system model for Quality Assurance in Design and Development, Production, Installation, and Servicing.

The Contractor’s Quality System must be approved by an ISO 9001 International Registrar.

The Government reserves the right to assess compliance with this requirement, and quality system procedures, planning, and all other documentation, media, and data which comprise the quality system shall be made available to the Government for its review and use. The acceptance of non-conforming supplies is a prerogative of and shall be prescribed by the Government. The Government reserves the right to disapprove the quality system or portions thereof when it fails to meet its intended objectives.

C.4.2.1.12 Supply Chain Risk Management The Contractor shall employ strategies to manage both every day and exceptional risks along the supply chain to reduce vulnerabilities, eliminate counterfeit consumables, and ensure continuity to fulfill contractual metric requirements as outlined in this

C.4.2.1.13 Information Technology The Contractor shall integrate communication between IT systems and databases across the supply chain and including interfaces with DLA and DLA customers to fulfill contractual metric requirements. In support of this effort, the Contractor shall rationalize, standardize, and distribute/share data necessary to fulfill the performance requirements outlined in this contract.

DLA will generate metrics from standard DLA systems for ORT, MA and Backorders. Contractor systems can be used to validate but DLA systems will be the official “scorecard”. To enable more accurate reporting, DLA and the Contractor shall collaborate to clarify any data inconsistencies, and reconcile metrics calculations as specified at C-5 below.

C.4.2.1.14 Configuration Management The Government shall maintain configuration control and change authority for all modifications or changes regarding the consumables acquired under this contract. DLA shall notify the Contractor of any configuration changes implemented by the Services.

Failure for DLA to notify the Contractor of a configuration change may result in the contractor being granted metric relief. If the Contractor should identify configuration control issues, the Contractor shall initiate the configuration control issues in writing to the PCO.

The Contractor may review configuration of F Series Engine items and recommend other known available items that meet or exceed the current application of the item(s) and represent a better value to the Government.

The Contractor shall submit for approval by the PCO all known configuration changes that affect the consumables of the applicable F Series Engines items to include impacted system(s), old and new consumable numbers, and the reason for the proposed change.

The known configuration change may be accompanied by a Request for Equitable Adjustment / ECP and/or unit price adjustment with the corresponding details as required by FAR 15.403-1.

The Contractor shall not supply any item under the contract that incorporates a known departure from technical or contractual requirements unless a request for a deviation, submitted from the Contractor to the PCO, has been approved by the Engineering Support Activity (ESA). Authorized deviations are a temporary departure from the requirements only and do not authorize a change to the item’s configuration baseline. Deviation requests shall be prepared in accordance with DI-CMAN-80640C- Request for Deviation. Guidelines for preparing deviations may also be found in MIL-HDBK-61A, Configuration Management Guidance and ANSI/EIA-649, National Consensus Standard for Configuration Management.

For any ECP developed that impacts a Contractor-sourced consumable, the Contractor shall maintain the sourcing and replacement of that consumable if the consumable remains under supervision of the

DLA. Any configuration changes that require a change in non-GE sources shall satisfy the Contractor quality standards.

DLA shall inform the Contractor of any configuration changes to GE Sourced or DLA-sourced consumables that impact demand forecasting accuracy (lead time, usage, etc.)

C.4.2.1.15 Critical Safety Items (CSI) CSIs are identified by the Government at Appendix A. The Contractor shall utilize its established Quality System for management and control of CSIs that are classified as Flight Safety Parts (FSP).

C.4.2.1.16 First Article Testing (FAT) It is the intent to have FAT requirements for items listed in the F Series Engines BoM waived. Waiver documentation will be completed prior to contract award. In the event of a quality or conformance issue during execution of these items, the Contractor may be required to perform FAT on a case-by-case basis. FAT, First Article Inspection or any other type of DLA required testing may be cause for an equitable adjustment to the contract for the impacted item. FAT requirements specified for items added in subsequent phases will be addressed at the time of the contract add action and subject to bilateral modification.

C.4.2.1.17 Performance Management The Contractor shall implement requisite operational and contract metrics and performance management practices (e.g., reporting, monitoring of performance, etc.) to ensure successful management and completion of contract requirements. While primarily intended for internal purposes, the metrics and performance management practices shall be shared with DLA and/or OC-ALC, as appropriate, to ensure DLA and OC-ALC resources are aware and aligned with the performance management requirements.

C.4.2.1.18 Customer Relationship Management The Contractor shall interface with the Government to facilitate improved forecasting, maintenance and production planning, material procurement to prevent work stoppages, shipment of required consumables to the Government, and resolution of engineering and technical problems.

The Contractor shall interface with the Government and the respective DLA Aviation personnel at the customer site. The Contractor shall monitor consumable requirements as they develop and ensure that the customer’s support requirements are satisfied. A key requirement for the Contractor is the ability to work with the various Government repair and supporting activities and shall involve attendance at production and supply planning meetings with USAF Maintenance Planners and DLA Aviation Forward Presence Personnel on an as needed basis. Therefore, the Contractor shall, as it deems necessary to satisfy the requirements of this contract, team with and establish long-term relationships and agreements with activities that are to be supported. DLA shall assist the Contractor in establishing agreements and teaming arrangements when appropriate and requested by the Contractor.

C.4.2.1.19 Program Management The Contractor shall provide a program manager (PM) who has the authority and necessary staff to accomplish program performance requirements. Responsibilities of the PM including, but are not limited to:

(a) The PM shall schedule and support, at a minimum, annual program review meetings with DLA.

(b) The PM shall coordinate program requirements and information with the DLA.

(c) The PM shall ensure timely resolution of business and technical problems.

(d) The PM shall implement corrective action in accordance with the terms and conditions of this

C.4.2.2 DLA-Sourced Supply Support Activities

The Contractor shall provide a suite of support services to ensure no line stoppages at OC-ALC due to a shortage in DLA-sourced supply.

C.4.2.2.1 Demand Forecasting Support The Contractor shall monitor the DLA pipeline to identify any potential consumables gaps or material sourcing concerns. The Contractor shall notify DLA of gaps in asset position for DLA-sourced consumables on an as needed basis through demand planning communications. DLA shall provide the Contractor with access to DLA Systems or flat files in support of this function.

C.4.2.2.2 Obsolescence and DMSMS The Contractor shall support an obsolescence and DMSMS monitoring program with the intent to identify and notify DLA of current and future obsolescence issues.

The Contractor shall assist the DLA in mitigating obsolescence and Diminishing Manufacturing Sources and Material Shortages (DMSMS) occurrences for the population of items covered under this contract.

The Contractor is responsible for managing and resolving obsolescence and DMSMS challenges applicable to the population of items throughout the life of the contract by providing the timely notice, briefs and recommended solutions. Obsolescence management includes ongoing review and identification of actual and potential obsolescence issues, including obsolescence of consumables and material to support the repair of engines or components.

Obsolescence responsibilities of the Contractor shall include, but are not limited to, Life of Type buys, bridge buys, sourcing replacement consumables from secondary suppliers, and finding or developing new suppliers. Class I ECP redesigns (non-recurring and recurring engineering) for obsolescence are neither included nor required in this contract. The Contractor will not be held accountable for failure to implement ECPs that address obsolescence provided the Contractor has exhausted and documented all efforts made to provide support during transition to the replacement part. Any exceptions shall be reviewed on a case-by-case basis. All non-recurring engineering (NRE) and recurring engineering costs for Class I changes due to obsolescence shall be paid for under separate ECP and subject to availability of funding in consultation and support to USN/USMC and DLA, as appropriate.

Obsolescence and DMSMS briefings shall include recommended solutions and workarounds to maintain support. If a fully developed solution has not been developed, the briefings shall include a timeline including Milestones and interface / approval requirements with Government personnel.

The Contractor shall provide the Government with immediate, written notification of any known manufacturer discontinuations, including a recommendation for and potential substitute of replacement items and substantiation of such recommendations.

The final decision making authority for the recommended solution shall remain with the Government.

All approval on engineering changes shall be administered and executed through bilateral modification by the PCO.

C.4.2.2.3 DLA Back-up

Leveraging the Contractor’s end-to-end supply chain and engineering insight, the Contractor is encouraged to take proactive actions to monitor the DLA Back-up material supply under Appendix B. In the event that DLA’s existing inventory and pipeline are insufficient or inadequate to fulfill demand within established service levels, the Contractor may support by notifying the PCO of potential gaps in DLA-sourced supply. The Contractor may support DLA via Spot Buy as specified in Section C.3.2.2.

The Contractor may seek to add DLA Back-up items to Appendix A (GE Sourced) by first discussing with the PCO, and if agreed upon, providing a proposal thereafter as a future add. Conversely, items currently under Appendix A may transition to Appendix B under a case-by-case basis.

C.4.2.3 Field Service Representatives GE will provide on-site qualified Field Service Representatives (FSR) to support engine operations covered by the GE F Series COI. FSRs may be required on any USAF base, both CONUS and OCONUS, as directed by the propulsion program office at Oklahoma City Air Logistics Complex located at Tinker Air Force Base, OK. The scope of F series engine support that these Field Service Representatives shall provide includes, but is not limited to, the following:

a) Assistance in the interpretation and use of Technical Data

b) Technical consultation in engine operation and maintenance

c) Training on the proper methods and equipment to operate/maintain F Series engines

d) Provide informal on-the-job training to all maintenance personnel covering all phases of maintenance and operation, operational checkout, system analysis, and system/subsystem replacement/adjustment/services pertinent to the F Series engines and ancillary test equipment when requested by local management

e) Identify and provide instructions in the operation and use of material handling equipment and special tools associated with and related to the equipment systems

f) Render technical assistance to resolve difficult or unusual maintenance problems

g) Assist in analysis of maintenance difficulties and in establishing maintenance and inspection procedures to improve the quality of maintenance.

h) Assist in preparation of deficiency reports

i) Provide guidance to pilots on peculiarities and characteristics of the F Series engines

j) Provide technical assistance in the interpretation of USAF technical orders, manuals, engineering drawings, and schematics, which pertain to the F Series engines

Such technical support and assistance from GE shall be at no additional cost to the U.S. Government.

C-5. DELIVERY REQUIREMENTS AND PERFORMANCE METRICS

C.5.1 Delivery Metrics

The contract shall use Order Response Time, Material Availability, and Backorder metrics to evaluate contract performance. The total incentive pool will be #% of adjusted costs as described herein divided across the performance metrics. The total disincentive pool will be #% divided across the performance metrics. Incentives and disincentives will be applied at the conclusion of each performance period.

A requisition is defined as an order for a single NIIN or part number and may be for multiple quantities of a single NIIN or part number.

DLA will provide Contractor metric data on a monthly basis as well as more frequently in an ad hoc basis at the Contractor’s request.

At the end of each performance period, the demand variation reconciliation processes will be utilized to update the total cost for that performance period. Metric performance and associated incentives and disincentives shall be calculated within 30 days of completion of this cost update. The resulting incentives or disincentives percentage will be applied to the updated cost and paid or offset in the next monthly contract payment.

The Contractor may request metric relief for the respective performance period for items out of the Contractor control and/or DLA’s failure to implement their responsibilities. For each request for metric relief, the Contractor will provide DLA with rationale for metric relief as part of a monthly CDRL. DLA will review the request on a case-by-case basis and provide Contractor written notice of acceptance or rejection (with rationale) for granting metric relief. A metric relief table is provided at Appendix H.

The Government shall provide the Contractor monthly performance and backorder reports, no later than the 10th day of the following month, as well as more frequently on an ad hoc basis per the Contractor’s request. Reports shall include performance calculations to date for all metrics and applicable information for each performance metric to include the NSN list, requisition date, requisition fill date, open delivery orders, open backorders, closed backorders, and backorder age. The definition of each metric shall remain static unless revised by both parties.

C.5.1.1 Order Response Time Metric

The order response time (ORT) metric shall evaluate demand at OC-ALC for all material covered in the BOM and are GE Sourced, Appendix A. DLA-sourced material will be excluded from this metric. ORT can be considered “local material availability,” a pass/fail measure. Accordingly, to be successful the material has to be at DLA-A SSCs or at DDOO Wholesale storage facilities when the material is ordered.

Performance will be captured through the AF and DLA requisition fulfillment systems and is measured in the workload management utility program known as COPA that is maintained by DLA functional experts.

ORT is a percentage of successfully fulfilled requisitions and will be measured as follows:

ORTCP% = (TNRF/TNNR)*100

ORTCP% = ORT Completion Percentage

TNRF = Total Number of OC-ALC Requisitions Fulfilled Per Contract Year TNNR =

Total Number of OC-ALC Requisitions Per Contract Year

Local Delivery Performance The local delivery performance time associated with ORT is USAF receipt of contract consumables within 48 hours. A requisition shall be considered fulfilled upon delivery of a requisition from a DLA-A SSC or the DDOO Wholesale storage facility to the USAF designated receiving point within 48 hours, as documented in DSS and EBS. DLA- A will provide the local delivery performance metric on a monthly basis. This metric will be monitored, but not subject to specific incentives or disincentives. The 48-hour delivery is critical to the success of the USAF mission and will be a joint effort between the Contractor, DLA Distribution and DLA Aviation and subject to the terms in the MoU.

The ORT metric will be measured, Incentivized and Disincentivized as outlined in the following table and described below:

Increment above ORT "whole number"

ORT %

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

100 3.50% na na na na na na na na na na

99 3.24% 3.26% 3.29% 3.32% 3.34% 3.37% 3.40% 3.42% 3.45% 3.47% 3.50% 98 2.98% 3.00% 3.03% 3.05% 3.08% 3.11% 3.13% 3.16% 3.19% 3.21% 3.24% 97 2.63% 2.66% 2.70% 2.73% 2.77% 2.80% 2.84% 2.87% 2.91% 2.94% 2.98% 96 2.28% 2.31% 2.35% 2.38% 2.42% 2.45% 2.49% 2.52% 2.56% 2.59% 2.63% 95 1.75% 1.80% 1.86% 1.91% 1.96% 2.01% 2.07% 2.12% 2.17% 2.22% 2.28% 94 0.88% 0.96% 1.05% 1.14% 1.23% 1.31% 1.40% 1.49% 1.58% 1.66% 1.75% 93 0.00%

No Incentive or Disincentive 92 0.00% 91 -0.50% -0.45% -0.40% -0.35% -0.30% -0.25% -0.20% -0.15% -0.10% -0.05% 0.00% 90 -1.00% -0.95% -0.90% -0.85% -0.80% -0.75% -0.70% -0.65% -0.60% -0.55% -0.50%

90 or below -1.00% -1.0% -1.0% -1.0% -1.0% -1.0% -1.0% -1.0% -1.0% -1.0% -1.0% **Actual percentages are TBD

ORT will be calculated for the entire contract performance period. If ORT falls between 92 % and 93.9%, no incentives or disincentives will be earned. This acceptable performance range is consistent with DLA’s current performance for this population of items. Performance will be rounded to the nearest 0.1% (tenth) in accordance with standard rounding procedures of 0.05 or above rounded up.

ORT incentives and disincentives will be measured against contract cost for the recently completed performance period. The cost for that performance period will be determined after the demand variation calculations as defined at C.5.2 are completed and any adjustments made.

The incentive pool for the ORT metric will be TBD% of the reconciled contract costs (before profit).

If ORT achieved is 94% or higher, the percentages in the table will be multiplied by the reconciled contract cost and the incentive earned will be added to the next monthly payment to the Contractor.

The disincentive pool for the ORT metric will be TBD% of reconciled contract costs (before profit). If ORT achieved is 91.94% or lower, the percentages in the table will be multiplied by the reconciled contract cost and the disincentive amount subtracted from the next monthly payment to the Contractor.

C.5.1.2 Material Availability Metric

DLA shall evaluate Contractor performance for world-wide (excluding Non CLSSA) demand through a material availability (MA) metric. The delivery requirement is for the Contractor to provide Contractor-sourced material (Appendix A) to enable DLA to fulfill all worldwide requisitions for this material. DLA-sourced material will be excluded from this metric. Partial fulfillment of a requisition is considered incomplete.

Material availability is the number of filled requisitions divided by the total number of requisitions during the performance period. The material availability metric is measured as a percentage and will be provided from DLA’s EBS system on a monthly basis.

The MA metric will be measured, Incentivized and Disincentivized as outlined in the following table and described below:

Increment above MA "whole number"

MA %

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

100 2.50% na na na na na na na na na na

99 2.35% 2.37% 2.38% 2.40% 2.41% 2.43% 2.44% 2.46% 2.47% 2.49% 2.50% 98 2.19% 2.20% 2.22% 2.24% 2.25% 2.27% 2.29% 2.30% 2.32% 2.33% 2.35% 97 2.04% 2.05% 2.07% 2.08% 2.10% 2.11% 2.13% 2.14% 2.16% 2.17% 2.19% 96 1.88% 1.89% 1.91% 1.92% 1.94% 1.96% 1.97% 1.99% 2.01% 2.02% 2.04% 95 1.63% 1.65% 1.68% 1.70% 1.73% 1.75% 1.78% 1.80% 1.83% 1.85% 1.88% 94 1.25% 1.29% 1.33% 1.36% 1.40% 1.44% 1.48% 1.51% 1.55% 1.59% 1.63% 93 0.63% 0.69% 0.75% 0.81% 0.88% 0.94% 1.00% 1.06% 1.13% 1.19% 1.25% 92 0.0%

No Incentive or Disincentive 91 0.0% 90 -0.50% -0.45% -0.40% -0.35% -0.30% -0.25% -0.20% -0.15% -0.10% -0.05% 0.00% 89 -1.00% -0.95% -0.90% -0.85% -0.80% -0.75% -0.70% -0.65% -0.60% -0.55% -0.50%

89 or Below -1.00% -1.0% -1.0% -1.0% -1.0% -1.0% -1.0% -1.0% -1.0% -1.0% -1.0% **Actual percentages are TBD

MA will be calculated for the entire contract performance period. If MA falls between 91% and 92.9%, no incentives or disincentives will be earned. This acceptable performance range is consistent with DLA’s current performance for this population of items. Performance will be rounded to the nearest 0.1% (tenth) in accordance with standard rounding procedures of 0.05 or above rounded up.

MA incentives and disincentives will be measured against contract cost for the recently completed performance period. The cost for that performance period will be determined after the demand variation calculations as defined at C.5.2 are completed and any adjustments made.

The incentive pool for the MA metric will be TBD% of the reconciled contract costs (before profit). If MA achieved is 93% or higher, the percentages in the table will be multiplied by the reconciled contract cost and the incentive amount added to the next monthly payment to the Contractor.

The disincentive pool for the MA metric will be TBD% of reconciled contract costs (before profit).