Section B Clauses 27 Jun 11.docx

B-2. BANDED PRICING CLINs (X002, X003, X004, X005)

a. CLINs X002 – X005 provide the unit price for flying hour maintenance services and utilize a banded price structure. Prior to the performance period, HQ AETC/A3 will issue an annual program allocation document. This allocation will provide the required flying hours for each flying training course and air frame. An example of the FY13 allocation is shown as follows:

FLYING HOUR PROGRAM

COLUMBUS AFB

PAI

UTE

ASD

Total Hours

FHP – Flying Hour Program, PAI -- Primary Aircraft Inventory, UTE – Utilization, ASD – Average Sortie Duration, PAA – Primary Authorized Aircraft

b. The Government will establish a Firm Fixed Price for the Flying Hour Maintenance Services CLINs by multiplying the negotiated flying hour maintenance unit price for the flying hour band by the median hour multiplier for the band. Using the T-38C IFF allocation above for an example, the fixed price would be found as shown. The maintenance rates per flying hour used below are notional examples for T-38C IFF:

Maintenance Price Per Flying Hour

T-38C IFF – 3,762 falls within Flying Hour Band “D”

Band “D” CLIN Airframe Multiplier Rate Total Monthly (÷12)

X005 T-38C IFF 3,762 $300 $1,128,600 $94,050

c. EXAMPLE: MID YEAR ADJUSTMENTS THAT MOVE THE PAA INTO A DIFFERENT BAND:

Occasionally, the Government may adjust the flying hour allocation during the course of the year. This may be done to factor in changes in student load or the course syllabus. When this occurs and the change results in the cumulative annual allocation moving from one price band into another price band, the Government will notify the contractor of the change and will issue a contract modification that employs the new maintenance unit price per flying hour. The change in price will become effective 30 calendar days after notification of revised flying hours by the contracting officer. This will allow the contractor to make necessary changes to staffing and skills mix required to meet the remainder of the flying training mission. The revised pricing will not impact the rates used earlier in the performance period (the change will not be retro-active). Using the prices in the example above, the following is an example of a change that decreases the T-38C IFF hours 6 months into a 12-month contract performance period.

Notice to Contractor: Due to a change in student loads, the Government must adjust the annual program allocation as follows:

T-38C IFF From 3,762 To: 3,405 Reduced by 357

This change in flying hours results in movement from flying hour band “D,” to Flying Hour band “C”

The price for CLIN X005 is changed to read as follows:

FROM:

X005 T-38C IFF 3,762 $300 $1,128,600 $94,050

To:

X005 T-38C IFF 3,498 $304 $1,063,392 $88,616

Total CLIN Price Changed

d. Should the Government require a cumulative annual quantity of flying hours that falls below the lowest possible flying hour band or above the highest possible flying hour band for any of these Flying Hour Maintenance Services CLINs, the contracting officer will negotiate a unit price and add additional flying hour bands as required.

B-3. TOTAL ACTIVE INVENTORY (AVERAGE POSSESSED) AIRCRAFT CLIN (X008)

a. The number of total active inventory (TAI) aircraft by Mission/Design/Series (MDS)(T-1A, T-6A, T-38C SUPT and T-38C IFF), listed in the PWS, Appendix 3BA, represents the government’s best current estimate of the number of aircraft that the contractor will maintain during the course of this contract. However, subject to the limitations of the general scope and level of workload as described in the Performance Work Statement (PWS) and Appendices, it is understood that a particular aircraft may be replaced by another aircraft of the same type, and the number of aircraft categorized as backup, aerospace vehicle inventory or attrition reserve may change from time to time. Except as outlined in this clause, such changes, within reasonable threshold, are considered to be normal, and neither party shall be entitled to an equitable adjustment simply by virtue of such fluctuations.

b. By MDS, if the number of TAI aircraft increase or decrease by more than the percentage listed in the table below (without a corresponding cumulative increase or decrease in the “AETC Flying Hour/Sortie Allocation” hours) for more than 90 consecutive days, the price shall be adjusted in CLINs X010 in accordance with the “Changes” clause in this contract.

c. The following example is based on the current TAI aircraft by MDS. For purposes of such adjustment, different MDS will be treated separately. Using the Chart below, the following examples of each MDS apply:

Without a corresponding cumulative increase or decrease in flying hours, an increase/decrease of four (4) T-1A aircraft will not justify a price adjustment; however, an increase/decrease of five (5) T-1A aircraft would justify a price adjustment.

Without a corresponding cumulative increase or decrease in flying hours, an increase/decrease of five (5) T-6A aircraft will not justify a price adjustment; however, an increase/decrease of six (6) T-6A aircraft would justify a price adjustment.

Without a corresponding cumulative increase or decrease in flying hours, an increase/decrease of four (4) T-38C SUPT aircraft will not justify a price adjustment; however, an increase/decrease of five (5) T-38C SUPT aircraft would justify a price adjustment.

Without a corresponding cumulative increase or decrease in flying hours, an increase/decrease of two (2) T-38C IFF aircraft will not justify a price adjustment; however, an increase/decrease of three (3) T-38C IFF aircraft would justify a price adjustment

The following example is based on the current TAI aircraft by MDS. For purposes of such adjustment, each MDS (T-1A, T-6A, T-38C SUPT and T-38C IFF) will be treated separately. That is, for example, (without a corresponding cumulative increase or decrease in the “AETC Flying Hour/Sortie Allocation” hours) an increase or decrease of four (4) T-38C SUPT aircraft for more than ninety consecutive days would not justify an adjustment. However, an increase or decrease of five (5) T-38C SUPT aircraft for more than 90 consecutive days would justify an adjustment. If three (3) T38C SUPT aircraft are received in Jan and two (2) additional T38C SUPT aircraft are received in Feb, an adjustment for five (5) aircraft would be authorized when the percentage threshold is exceeded for more than 90 consecutive days. In this case, reimbursement would begin in May (retroactive to Feb). The adjustment includes the cumulative increase or decrease by MDS retroactive to the date the TAI aircraft first exceeded the threshold from the TAI numbers listed in the PWS, Appendix 3BA for that fiscal year. The MDS TAI listed in the PWS, Appendix 3BA, will be adjusted under two conditions: 1) To reflect aircraft changes driven by flying hour adjustments and, 2) As a result of TAI aircraft increase or decrease by more than the percentage of TAI listed in the table above without a corresponding cumulative increase or decrease in the “AETC Flying Hour/Sortie Allocation” hours). Any of these adjustments will establish a new TAI baseline and will be entered in the PWS, Appendix 3BA.

* Number of aircraft by percentage not affecting change (rounded down to nearest whole number) **+/- Number of aircraft affecting change (rounded up to nearest whole number)

B-4. WEEKEND/HOLIDAY FLYING CLIN (X009)

a. Performance under this contract is based upon a student flying program that will normally be accomplished Monday through Friday, to include Weekend and Holiday launch/ recovery of cross-country aircraft (see PWS and additional support requirements specified in PWS to be included in contract cost). It is recognized that conditions such as adverse weather may prevent the Government from meeting the AETC Flying Hour/Sortie Allocation schedule; therefore, additional student flying days will be required on Saturday, Sunday or holidays and will be contractually covered under CLIN X009 (see PWS paragraph 3.1.3.4.1.).

b. After the ACO notifies the contractor of any weekend/holiday flying requirements, the contractor shall submit a proposal to the ACO prior to commencing any work under this CLIN. The estimate will be negotiated for reasonableness (position classification being utilized, number of employees within each classification and anticipated labor hours) prior to the ACO authorizing the weekend/holiday flying. The negotiated price shall not be exceeded unless approved by a contracting officer. This estimate will be finalized upon submission of an invoice for the weekend/holiday flying. The invoice will be based on the actual labor hours utilized and actual labor rates paid (regular, overtime or premium pay) for weekend flying operations only. No overhead, G&A, or profit will be paid. No fringe benefits will be paid with the exception of FICA and Worker’s Compensation Insurance.

B-5. COST REIMBURSABLE CLINs (X009, X010, X011)

Effort required and performed under the cost reimbursable contract line items in support of this contract will be requested and executed by the Administrative Contracting Officer (ACO). After performance, purchase and/or payment by the service provider, the Government shall reimburse the actual costs incurred. No overhead, G&A or profit will be paid for work performed under cost reimbursable line items; no fringe benefits will be paid with the exception of FICA and Worker’s Compensation Insurance, as applicable. Accounting and reimbursement for these efforts shall be consistent with authorized accounting standards and bookkeeping procedures. Vouchers shall be submitted using a separate invoice, which shall detail all items for which reimbursement is claimed. Costs on these vouchers may be audited by the cognizant audit agency.

B-6. MOBILIZATION.

For the basic contract period only, mobilization costs are defined as all costs expended pursuant to responsibility for each function under this contract within the mobilization period. A firm, fixed price will be entered on CLIN 0012.

B-7. CONTRACT CHANGEOVER.

Any costs associated with finalizing the contract after the end of the final contract period (after successor service provider changeover) shall be included in your proposed price for CLIN 0012. If award is made to the incumbent service provider, this cost will be inapplicable.

B-8. WAGE PASS THROUGH ADJUSTMENT COSTS

a. This contract is subject to the requirements of the Service Contract Act as amended, and attention is invited to the obligations of the contractor under Section 4(c) of the amended Service Contract Act. Any questions regarding the extent to these obligations should be addressed to the Department of Labor.

b. All wage pass through costs will be processed utilizing the hours reimbursable method in accordance with FAR 52.222-43, Fair Labor Standards Act and Service Contract Act – Price Adjustment (Multiple Year and Option Contracts). The addition of a “not to exceed” amount wage adjustment line item will be added by modification to the basic contract. The contractor will be required to submit on a monthly basis an itemized billing and to certify to its accuracy. Labor categories shown on the billing shall be covered by the Service Contract Act (Department of labor Wage Determination) or a conformable wage agreement in writing in the basic contract. Salaries of project managers, non-working supervisors, and other indirect salaried employees are excluded.

B-9. Collective Bargaining Agreements

Title 29, Part 4 of the Code of Federal Regulations (CFR), paragraph 4.163(a), section 4(c) of the Service Contract Act provides that no “contractor or subcontractor under a contract, which succeeds a contract subject to this Act and under which substantially the same services are furnished, shall pay any service employee under such contract less than the wages and fringe benefits, including accrued wages and fringe benefits, and any prospective increase in wages and fringe benefits provided for in a collective bargaining agreement as a result of arm’s-length negotiations, to which such service employees would have been entitled if they were employed under the predecessor contract… The obligation of the successor contractor is limited to the wage and fringe benefit requirements of the predecessor’s collective bargaining agreement and does not extend to other items such as seniority, grievance procedures, work rules, overtime, etc.” (See referred section of CFR for further information).