Attachment_11_-_Inst_to_Annual_Sortie_Arcft_Adj.docx

ATTACHMENT 11

Instructions to Annual Sortie and Aircraft Inventory Adjustments

B-1. SORTIE ADJUSTMENTS

a. The number of sorties listed in of TABLE B-1 ORDERING PERIOD (OP) ANNUAL SORTIE PROJECTION/ADJUSTMENT TABLE, Column 1, OP SORTIE PROJECTIONS (Non-Binding for estimates only) represent the Government's best estimate (non-binding) of the number of sorties required to be flown during each OP. However, subject to the limitations of the scope and level of workload identified in the Performance Work Statement (PWS) and Appendices, it shall be understood, the 21st Fighter Squadron (21 FS) Luke AFB, AZ Taiwan F-16 aircraft may be replaced by other Taiwan F-16 aircraft. The Taiwan replacement aircraft may be retrofitted or modified to a different configuration. Neither Taiwan nor the service provider (SP) shall be entitled to equitable adjustment simply by virtue of Taiwan aircraft replacements completed within the scope of Sorti Adjustments section B-1.

b. Section B, CLINs X009 – X015 are Government authorized Retrofit CLINs strictly for use on retrofit workload with pre-authorization required from the Government Chief Contracting Officer Representative (COR) or the COR Superintendent. See PWS Section 3-1 for detailed instructions for retrofit authorization requirements.

c. The SP shall be responsible for supporting all flying training requirements for each OP in TABLE B-1 Column 2, OP AFSAT APPROVED SORTIES (Government Unilateral Decision), for the 21 FS.

d. During each OP, TABLE B-1 Column 2, OP AFSAT APPROVED SORTIES (Government Unilateral Decision) and Column 4, AFSAT SORTIE ADJUSTMENT PARAMETERS (+/-7%) will be provided to the SP NLT 60 days prior to the next OP. CO initial notification may be sent by e-mail until TABLE B-1. Columns 2 and 4 are updated by the CO.

e. At the end of each OP, TABLE B-1 Column 2, OP AFSAT APPROVED SORTIES (Government Unilateral Decision) and Column 3, ACTUAL ANNUAL OP 21 FS COMPLETED SORTIES will be reconciled against Column 4, AFSAT SORTIE ADJUSTMENT PARAMETERS (+/-7%) to determine if the adjustment parameters were exceeded. If TABLE B-1 Column 4, AFSAT SORTIE ADJUSTMENT PARAMETERS (+/-7%) is exceeded, the number of sorties exceeded will be identified in Column 5, ACTUAL ADJUSTED SORTIES (Outside the Adjustment Parameters). If the parameter in TABLE B-1 Column 5, ACTUAL ADJUSTED SORTIES (Outside the Adjustment Parameters) is exceeded proceed to paragraph f below.

f. An adjustment to the contract by task order to TABLE B-1 Column 6, OP SORTIE ADJUSTMENT CLIN X005 and Column 7, CONTRACT TASK ORDER NUMBER using the Government accepted SP Sortie Adjustment CLIN X005 Rate in contract Section B to calculate the adjustment price. The cost will be reconciled by the CO and sent to the SP for review/concurrence. SP non-concurrences with adjustments will be addressed to the CO for resolution.

g. The proposal for the SP Sortie Adjustment CLIN X005 Rate in contract Section B shall include projected annual labor rate increases for all affected workers and will follow the Service Contract Labor Standards as amended. The CO accepted Sortie Adjustment CLIN X005 Rate in contract Section B for each OP will not be subject to annual adjustments under the provisions of FAR 52.222-43.

h. EXAMPLE OF SORTIE RECONCILIATION: AFSAT approved sorties for OP 1 of 5 is 2340 sorties. The 21 FS completed 2505 sorties during OP 1 of 5. The TABLE B-1 Column 4, AFSAT SORTIE ADJUSTMENT PARAMETERS (+/-7%) for OP 1 are (+164/-164). The 21 FS exceeded OP 1 of 5 under TABLE B-1 Column 5, OP ADJUSTED SORTIES (Outside the Adjustment Parameters) by +1 sortie.

THE SORTIE ADJUSTMENT FORMULA: The number of completed sorties listed in TABLE B-1 Column 5, OP ADJUSTED SORTIES (Outside the Adjustment Parameters) for OP 1 of 5 (+1 sortie) times the Sortie Adjustment CLIN 0005 rate in contract Section B (Example Only $1,232). +1 sortie times (x) $1,232 = $1,232 payable to the SP by Taiwan. If the sortie adjustment number is a negative number (example only -1 sortie) the example costs would be payable by the SP to Taiwan. This program is an OP annual sortie program.

TABLE B-1. OP/OY ANNUAL SORTIE MANAGEMENT/ADJUSTMENT TABLE (See PWS TABLE 3A-1):

OP

SORTIE

PROJECTIONS

(Non-Binding for estimates Only)

OP AFSAT APPROVED

SORTIES

(Government Unilateral Decision)

ACTUAL

ANNUAL

OP

21 FS

COMPLETED

SORTIES

AFSAT SORTIE

ADJUSTMENT PARAMETERS

(+/-7%)

OP ADJUSTED

SORTIES

(Outside the Adjustment Parameters)

OP SORTIE ADJUSTMENT CLIN X005

COST

CONTRACT

TASK ORDER NUMBER

OP 1 of 5

OP 2 of 5

OP 3 of 5

OP 4 of 5

OP 5 of 5

OY 1

OY 2

B-2. AIRCRAFT OFF-STATION RECOVERY

The SP shall only recover aircraft assigned to the 21 FS anywhere in North America. Costs for recovery of 21 FS aircraft shall be included in the CLIN X001, F-16 Aircraft Maintenance (Contract Basic Service Price). However, travel costs for recovery of aircraft will be included in CLIN X003, Travel.

B-3. PRICE ADJUSTMENT FOR CHANGE IN TOTAL ACTIVE INVENTORY (TAI) AIRCRAFT, WITHOUT A CORRESPONDING INCREASE OR DECREASE IN NUMBER OF SORTIES

a. The number of total active inventory (TAI) aircraft assigned to the 21 FS is listed below in TABLE B-3 Column 2, 21 FS TAI PROJECTIONS (Non-Binding) represents the Government's best estimate (non-binding) of the number of TAI aircraft assigned to the 21 FS as shown for each OP in TABLE B-3. However, subject to the limitations of the scope and level of workload as described in the Performance Work Statement (PWS) and Appendices, it shall be understood, 21 FS aircraft may be replaced by Taiwan F-16 aircraft and these aircraft may be retrofitted or modified to a different configuration. Taiwan F-16 aircraft replacements are considered within the scope of Section B-3 and neither Government nor the SP shall be entitled to equitable adjustment.

b. Section B, CLINs X009 – X015 are Government authorized Retrofit CLINs strictly for use on retrofit workload with pre-authorization from the Government Chief Contracting Officer Representative (COR) or the COR Superintendent. See PWS Section 3-1 for detailed instructions for retrofit CLINS X009 -X015 authorization requirements.

c. The SP shall be responsible for providing aircraft maintenance support for the TAI listed for each OP in TABLE B-3 Column 3, 21 FS ASSIGNED TAI (Binding).

d. During each OP, the TAI and parameter amounts in TABLE B-3 Column 3, 21 FS ASSIGNED TAI (Binding) and Column 4, TAI PARAMETER (-/+ 7.5%) will be provided to the SP NLT 60 days prior to the proceeding OP. CO initial notification may be sent by e-mail until Table B-3 is updated by the CO.

e. If the number of 21 FS TAI aircraft (14 TAI) increase/decrease by more than 7.5%, with a corresponding cumulative increase/decrease in the number of projected sorties (annual sortie plan divided by 14) and the aircraft are assigned to the 21 FS fleet for more than 60 calendar days, then the price shall be adjusted using CLIN X006, TAI Monthly Adjustment Rate, in accordance with FAR 52.243-1 Alt I, Change Clause in section I of this contract. Neither Taiwan nor the Government will reassign possessed 21 FS TAI aircraft just to avoid exceeding the 60 calendar days assigned to the 21 FS in an effort to circumvent the intent of SectionB-3 then re-possess the aircraft in the 21 FS without invoking Section B-3. The TAI price proposed by the SP and accepted by the CO for TAI MONTHLY ADJUSTMENT RATE, CLIN X006, represents the SP’s total price per each aircraft increases/decreases over Table B-3 Column 3, 21 FS ASSIGNED TAI (Binding) for each OP. If additional Taiwan F-16 aircraft are assigned/reassigned to/from the 21 FS for more than 60 calendar days, proceed to paragraph f below.

f. TAI adjustments due to increases/decreases in the number of aircraft assigned (if Table B-3 Column 4, TAI PARAMETER (-/+ 7.5%) is exceeded for over 60 calendar days) represent workload changes. Workload consists of variations in preflight, thru-flight, and basic post-flight inspections; ground handling; servicing; washes; calendar inspections; Time Compliance Technical order (TCTO) and one-time inspection requirements; aircraft repairs and transfer/acceptance inspections etc. A TAI adjustment to the contract will be a Task Order to Table B-3 Column 6, OP TAI MONTHLY ADJUSTMENT CLIN X006 COST and Column 7, CONTRACT TASK ORDER NUMBER using the Government accepted SP TAI Monthly Adjustment Rate, CLIN X006 in contract Section B to calculate the adjustment price. The CO will provide the task order and change TABLE B-3 Column 3, 21 FS ASSIGNED TAI (Binding) to the updated number. Table B-3 Column 6, OP TAI MONTHLY ADJUSTMENT CLIN X006 COST amount will be reconciled between the CO and the SP.

g. Section B, SP TAI Monthly Adjustment Rates, accepted by the CO, will include the projected annual labor rate increases for all affected workers and will follow the Service Contract Labor Standards as amended. SP TAI Monthly Adjustment Rates for each OP will not be subject to annual adjustments under the provisions of FAR 52.222-43.

h. EXAMPLE OF TAI RECONCILIATION: AFSAT approved TAI for OP 1 of 5 is 14 aircraft. The 21 FS received an additional one (1) aircraft from Taiwan (15 TAI) for the final 3 months of OP 1 of 5. The TAI adjustment parameter for OP 1 of 5 is (+1/-1) aircraft for more than 60 calendar days. The 21 FS exceeded OP 1 of 5, Column 4, TAI PARAMETER (-/+ 7.5%) by +1 sortie for over 60 calendar days.

The formula: the number of TAI aircraft outside the parameter of Table B-3 Column 4, TAI PARAMETER (-/+7.5%) for more than 60 calendar days (+1 aircraft for 3 months). The 3 months (possession months) will be multiplied by the contract Section B CLIN X005 TAI Monthly Adjustment Rate (example only: $1,232) for the corresponding OP.

The calculation: +3 months x $1,232 = $3,696 is payable to the SP by Government. If the sortie number is a negative number (Example Only: -1 sortie for the same period of 3 months) the same cost would be payable by the SP to the Government. The TAI adjustment is a monthly adjustment beginning with the date an aircraft is assigned to the 21 FS.

TABLE B-3. TOTAL AIRCRAFT INVENTORY ADJUSTMENT TABLE (See PWS Table 3A-3):

ORDERING PERIODS

21 FS

TAI

PROJECTIONS

(Non-Binding)

21 FS

ASSIGNED TAI

(Binding)

TAI PARAMETER

(-/+ 7.5%)

ADJUSTED

TAI

(Outside the Adjustment Parameters)

OP

TAI MONTHLY

ADJUSTMENTCLIN X006

COST

CONTRACT

TASK ORDER NUMBER

B-4. TAIWAN F-16 AIRCRAFT TRANSFER AND ACCEPTANCE COST DETERMINATION

(Refer to PWS paragraphs 3.1.11, Aircraft Acceptance and Transfer Inspection Program.)

a. Monthly Cost. When the number of assigned Taiwan 21 FS F-16s exceeds the TAI (See table B-3) for at least 30 calendar days but less than 60 calendar days and is the result of an F-16 transfer or acceptance, the monthly cost per aircraft exceeding TAI paid to the SP for the transfer or acceptance will be calculated as follows:

Monthly CLIN X008 Firm Fixed Price for the first two pricing years and CLIN X016 for the remaing years, divided by TAI, equals transfer or acceptance monthly cost times number of aircraft exceeding TAI Example: $500,000/14 = $35,714.29 (monthly cost per aircraft exceeding TAI) Number of aircraft exceeding 14 TAI = 2 $35,714.29 x 2 = $71,428.57 (total monthly cost of aircraft exceeding TAI)

b. Daily Cost. After exceeding TAI for 30 calendar days but less than 60 calendar days, the daily cost per aircraft exceeding TAI paid to the SP as a result of an F-16 transfer or acceptance will be calculated as follows:

Monthly transfer or acceptance cost per aircraft exceeding TAI (see paragraph B-4a.) divided by the number of days in the affected month (up to 29 days) equals the daily transfer or acceptance cost rate times number of aircraft exceeding TAI.

Example: $500,000/14 = $35,714.29 (monthly cost per aircraft exceeding TAI)

c. After 60 calendar the TAI Adjustment Section B-3 takes precedence over Section B-4.

B-5. SP VEHICLES

The SP is responsible for providing vehicles for this contract as stated in the PWS. The cost for vehicles proposed to support each contract ordering period shall include G&A and profit. This cost shall be included in Section B, CLIN X001, F-16 Aircraft Maintenance.