CAVCFMAppB.pdf

HEADQUARTERS

OKLAHOMA CITY AIR LOGISTICS CENTER

TINKER AIR FORCE BASE

APPENDIX B

END ITEM AND GOVERNMENT FURNISHED EQUIPMENT MANAGEMENT

1 August 2006

Contract #: _____________________________ PMS: EP2

PR #: FD2030-07-01532 Ph #: 734-8354

Abbr Contr#: H700_______________

To obtain abbreviated PIIN numbers call:

GFM 559 CBSS/GBLC contracts call 736-3687 (H0)

CFM ACSG contracts call 736-3720 (H7)

CFM EPSG contracts call 734-8210 (H7)

CFM HPSG contracts call 736-2444 (H7)

Fax #: _________________________

Date: 12 May 2007

Type Work: Overhaul/ Workload Type: _________________

Contract Designation is: CFM

TABLE OF CONTENTS

Section Page

1. Terms Explained…………………………………………………………………………. 2

2. Contract Designation of CFM…...………………………………………………… 6

3. Government-Furnished Property ……..…………………………………………………. 6

4. Contractor Property Control Records……………………………………………………. 6

5. Production Problems……………………………………………………………………... 7

6. Disposition of Government Property…………………………………………………….. 7

7. Discrepancies Incident to Shipment……………………………………………………… 8

8. Disposition of Condemned Government Property……………………………………….. 9

9. Contractor Reporting……………………………………………………………………... 9

10. Visits……………………………………………………………………………………... 9

11. Other……………………………………………………………………………………… 9

12. References……………………………………………………………………………….. 9

LIST OF ATTACHMENTS

Attachment Page

1 Contractor Communications Network (CCN)…………………………………………… 11

Appendix B Page 2 of 12

PURPOSE STATEMENT

This Appendix B is part of the contract and provides detailed instructions pertaining to the management and control of government-owned property and instructions/guidance on how the property is obtained, maintained, protected, controlled, accounted for, and disposed of. These instructions expound the general guidance given in the Federal

Acquisition Regulation (FAR), Part 45.5, which is incorporated by reference and made part of this contract. If the provisions of this appendix conflict with existing FAR, Part

45, or other government directives, the contractor will contact the contracting officer at

OC-ALC for guidance.

1. TERMS EXPLAINED: Terms and definitions are included in the regulations referenced as cited in this appendix and are supplemented for clarification and guidance as they apply to this contract as follows:

1.1. Abbreviated Contract Number: An eight position alpha-numeric designator that represents the contract number and is used in tracking contractor transactions and requisitions. The first position is for the ALC and the remaining seven positions are the control number. Procurement Buyer must contact the ALC Contract Repair Office to obtain this number.

1.2. Administrative Contracting Officer (ACO): A contracting officer assigned the responsibility for the post award functions related to the administration of a government contract in the field. The ACO is normally located in the Defense Contract Management

Agency (DCMA) office. The ACO is responsible for ensuring the contractor performs in accordance with the terms of the contract.

1.3. Agency-Peculiar Property (APP): Government-owned property for military operations. It includes end items and integral components of military weapons systems along with related support equipment that are not readily available as commercial items.

It does not include normal government material, special test equipment, special tooling, or facilities; also referred to as military property (FAR Part 45.301).

1.4. Bench Stock: Low cost, high usage, and non-sensitive consumable, material located in work areas for contract performance. Quantities of such stock shall not exceed that amount normally consumed in a 30 day period, or as established in the contractors approved property control system (normally used for broken units of issue).

1.5. Consumable Item: An item that may or may not be subject to repair that is consumed during the repair process. This includes stock listed and non-stock listed items which have an expendability, recoverability, and reparability category (ERRC) of P (XF3) or N (XB3). May also be referred to as expense or stock funded items. Consumable material will be provided as contractor furnished material in support of depot maintenance repair.

Appendix B Page 3 of 12

1.6. Commercial Asset Visibility II (CAV II): is a web-based Government off the shelf

(GOTS) application developed by Navy Supply Information Systems Activity

(NAVSISA). CAV II allows commercial contract repair facilities to report Repair and

GFM transactions on a daily basis. CAV II will be the management control authority

(MCA) for contract repair end items and GFM located at contractor facilities. The connection between CAV II and commercial facilities will be via the internet.

1.7. Contractor Furnished Equipment (CFE): Equipment furnished by the contractor, title to which remains with the contractor.

1.8. Contractor Furnished Material (CFM): Material provided by the contractor, as a part of the maintenance service provided. All material with an expendability, recoverability, and reparability category (ERRC) code; N or P (also known as consumables) will be CFM, regardless of the source of supply (SOS), i.e; Defense

Logistics Agency (DLA), General Support Division (GSD) and AF managed items. This material is incorporated into or attached to an end item to be delivered under the contract or may be consumed in the performance of a contract.

1.9. Contractor Furnished Property (CFP): Property other than government-furnished property (GFP), government-furnished material (GFM), or contractor acquired property

(CAP) furnished and funded by the contractor per the terms of the contract, title to which remains with the contractor. .

1.10. Expendability, Recoverability, and Reparability Category (ERRC) Code: The code assigned to an Air Force item which designates the extent of repair for the item.

1.11. Facilities: Industrial property (other than material, tooling, agency-peculiar property, and test equipment) for production, maintenance research, development, or test, including real property and rights therein; buildings, structures, improvements and plant equipment.

1.12. Government-Furnished Equipment (GFE): An all-inclusive term to define all types of equipment defined in FAR, Part 45. It includes facilities, plant equipment, agency peculiar property, special tooling, and special test equipment. For the purpose of annually reporting dollar values on Department of Defense (DoD) property in the custody of contractors (DD Form 1662, DOD Property in the Custody of Contractors), items must be categorized according to the specific FAR property definitions.

1.13. Government-Furnished Property (GFP): All property acquired using government funds and/or in the possession of the government which is subsequently delivered or otherwise made available to the contractor. GFP also includes GFE and GFM (FAR

45.101).

1.14. Government-Furnished Material (GFM): Government property supplied to the contractor, for incorporation into an end item to be delivered under the contract or which

Appendix B Page 4 of 12 may be consumed in the performance of the contract. It includes, but is not limited to, raw and processed material, parts, components, and assemblies. GFM is also referred to as materials and direct materials under the terms of the contract (FAR 45.301).

1.15. Hazardous Material: Any used or unused property, including scrap and waste, that is ignitable, corrosive, reactive, or toxic because of its quality, concentration, physical, chemical, or infectious characteristics. The property can be in a solid, liquid, semi-liquid, or contained gas form and may cause or significantly contribute to an increase in serious illness or mortality or pose a substantial threat or potential hazard to the environment when improperly treated, stored, transported, disposed of, or otherwise managed.

1.16. Hazardous Waste: Any used or unused hazardous material that has no known use and, therefore, must be discarded. This includes hazardous material not otherwise disposed of through plant clearance that the contractor has been authorized, by the plant clearance officer, to dispose of as hazardous waste.

1.17. Julian Date: A method used by the government to track days according to a system usually covering one year and referring the days to a numerical sequence of the calendar year. Example: Julian Date 6133. Number 6 refers to the year 2006, and 133 refers to the one hundred thirty-third day of the year, the twelfth day of May, (May 13, 2006).

1.18. Local Manufacture (LM): The manufacture of items for the government using

GFM and contracted labor.

1.19. Loan Control Officer (LCO): An individual at the prime stock number ALC who has the responsibility for the GFE assets loaned to a contractor, and validates the authorization and tracks the issuance and return of loaned assets.

1.20. Material Support Division (MSD) Items: Items that have an ERRC code of C

(XD1) or T (XD2). These items are referred to as line replacement units (LRU) and shop replacement units (SRU) respectively.

1.21. Plant Clearance Officer: An individual authorized to act on behalf of the ACO on all plant clearance matters concerning the screening, reutilization, redistribution, and marketing of excess government property.

1.22. Procuring Contracting Officer (PCO): The person responsible for entering into a contract on behalf of the government. The PCO will ordinarily be located at the funding

ALC.

1.23. Production Management Specialist (PMS): An individual assigned by the contracting activity to act as liaison for production, supply, and transportation issues.

1.24. Property Control Procedures: A detailed written description of the contractor’s operation for the control, use, and care of property while in the contractor’s possession.

Appendix B Page 5 of 12

1.25. Property Administrator (PA): An individual authorized to act on behalf of the

ACO on all matters concerning the management of government-owned property.

1.26. Property Records: Records that are construed to include all documents reflecting the status of government property.

1.27. Sensitive Property: Property for which the theft, loss, or misplacement could be potentially dangerous to the public safety or community security and which must be subject to exceptional physical security, control, and accountability. The following types of property should be designated as sensitive in the contractor’s property management system: weapons, ammunitions, explosives, narcotics, and dangerous drugs and, if authorized, classified material.

1.28. Special Tooling (ST): All jigs, dies, fixtures, molds, patterns, taps, gauges, other equipment, and manufacturing aids, and replacements thereof, which are of such a specialized nature that, without substantial modification or alteration, their use is limited to the development or production of particular supplies or parts thereof, or the performance of particular services. The term includes all components of such items but does not include consumable property, test equipment, or buildings, non-serviceable structures (see FAR 45.301) (except foundations and similar improvements necessary for the installation of special tooling), general or special machine tools, or similar capital items.

1.29. Special Test Equipment (STE): Electrical, electronic, hydraulic, pneumatic, mechanical, or other items or assemblies of equipment which are of such a specialized nature that, without modification or alteration, the use of such items (if they are to be used separately) or assemblies is limited to testing in the development or production of particular supplies or parts thereof, or in the performance of particular services. The term special test equipment includes all components of any assemblies of such equipment but does not include consumable property, special tooling, or buildings, non-serviceable structures (see FAR 45.301, except foundations and similar improvements necessary for the installation of special test equipment), general or special machine tools, or similar capital items.

2. CONTRACT DESIGNATION as CFM:

2.1. Current AF direction is to pursue performance based contracts using a CFM concept.

This requires the contractor to provide all needed material as part of the cost of repair.

This material is defined as material which is incorporated into an end item to be delivered under the contract or which may be consumed in the performance of the contract.

Includes, but is not limited to, raw and processed material, parts, components, and assemblies.

Appendix B Page 6 of 12

2.2. This contract has been designated as a CFM contract as indicated on the cover of this appendix and as detailed in the basic contract. Under the terms of CFM, no material defined as GFM is to be provided to the contractor except line items on the contract which are subject to repair.

3. GOVERNMENT-FURNISHED PROPERTY:

3.1. Contractor requisition/procurement of GFP is limited to only the GFE NSN/Part

Number and quantities authorized as listed on the attachment(s) to this Appendix B.

3.2. For authorization of GFE on this contract, the PMS is to contact the ALC Loan

Control Officer (LCO), Doris McCall, 559 th

CBSS/GBMAC for government loan property authorization. The contractor shall comply with the GFE-related clauses in the basic contract. While the GFE is in the possession of the contractor, it is the contractor’s responsibility to provide routine maintenance and calibration of the GFE to ensure the

GFE is returned to the government in the same condition as when provided, less normal wear and tear. GFE will not be requisitioned until it is actually required and will be turned in when no longer required.

4. CONTRACTOR PROPERTY CONTROL RECORDS:

4.1. The official property records are described in FAR, subpart 45.505. The contractor shall establish a property control record for each line item. Property records shall be kept current at all times, and an audit trail shall be maintained from property acquisition to consumption in use or final disposition. Property accounting records, including debit and credit support documentation, are considered part of the official government contract records.

4.2. FAR 45.505-1 states the basic information required on all material records, whether mechanized or manual, as follows:

(1) Name, description, and National Stock Number (NSN)

(2) Quantity received (or fabricated in house), issued, on hand, and on order.

(3) Unit of Issue (each, feet, etc.)

(4) Unit price (from receipt document or stock list data)

(5) Contract or project number relating to contract

(6) Location

(9) Posting references (to include but not limited to support documentation such as issues, receipts, inventory recording and dates of transactions)

(10) Disposition

4.3. In addition to FAR requirements, the following data is required to enable requirements planning and stock control:

(1) Quantity due in (on order or being fabricated)

Appendix B Page 7 of 12

(2) Expendability, recoverability, reparability category (ERRC) code

(3) Commercial and Government Entity (CAGE) code number

4.4. FAR Subpart 45.505-14 describes the annual report, which gives the acquisition cost of all Government property in the contractor’s possession. Details for completing this report are on the reverse side of DD Form 1662, DoD Property in the Custody of

Contractors. This form is available from the Property Administrator.

4.5. In addition to the above, a separate record of requisition numbers shall be maintained and shall include the NSN of the item requisitioned, the unit of issue, quantity, document number, and the date the item was received by the contractor. This record shall be kept current at all times. Other reports may be required in accordance with FAR, Subpart

45.508, 45.6, and the Contract Data Requirements List (CDRL), DD Form 1423.

5. PRODUCTION PROBLEMS:

5.1. The contractor shall report all potential supply support deficiencies that could cause a production slippage or work stoppage to the ACO, PCO, and PMS at the managing ALC.

If problems are not resolved, the contractor shall report them to the ACO, PCO and PMS.

6. DISPOSITION OF GOVERNMENT PROPERTY:

6.1. These instructions apply to all government owned property. Within 90 days prior to contract expiration, the contractor shall submit a letter to the managing ALC requesting disposition instructions in the transfer of GFE. A listing identifying GFP shall include the NSN, part number/CAGE, noun, quantity, and dollar value, and the list will be submitted through the ACO to the PMS for disposition instructions.

6.2. If a follow-on contract is being awarded or, is in the negotiation or solicitation stage, the existing GFP may be retained to the extent required to support the current contract and/or the follow-on contract.

6.6. Package and Shipment of Items:

6.6.1. Items still in their original package shall be shipped as is.

6.6.2. All remaining items shall be packaged Level A and shipped Level B military in accordance with the latest version of MIL-STD 2073-1.

6.6.3. The contractor should refer to the basic contract for cost of packaging and shipping.

7. DISCREPANCIES INCIDENT TO SHIPMENT:

Appendix B Page 8 of 12

7.1. There are transportation and item discrepancies, each having different reporting requirements. Detailed information for each report is in the pertinent service publications.

7.2. The most common discrepancies are those item transactions which are misidentified, have variations in quantity, dubious condition, non-requisitioned items, lost/damaged parcel post or excessive packaging. These discrepancies will be reported on SF 364, Supply Discrepancy Report (SDR) formerly Report of Discrepancy (ROD) in accordance with AFJMAN 23-215, Reporting of Supply Discrepancies. The completed form will be forwarded through the CAO and Quality Assurance (QA) activity for corrective action.

The items received and reported on SF 364, as overages will be processed according to the disposition of excess GFM criteria specified in this appendix.

7.3. Transportation discrepancies, such as shipment astray, shortages, pilferage, theft, damage, vandalism, overages, or entire shipment not received, are also reported on

SF364.

7.4. Contract line items received with missing components (missing on induction, MOI) the contractor shall process a SDR (SF Form 364) immediately upon discovery in accordance with AFJMAN 23-215 and provide a copy of submitted MOI SDR form to the ACO with in 2 days of discovery.

7.5. Misdirected shipments of GFP shall be immediately reported by telephone to the

Property Administrator (PA) followed by written notification within three work days.

The PA will issue appropriate disposition instructions for the misdirected items.

Misdirected items received by the contractor which are not part of this contract will not be receipted into CAV II.

7.6. Overages, shortages, and misidentified items which are part of this contract and received by the contractor shall be reported into CAV II with the actual received quantity and with the correct NSN. An SDR shall be processed in accordance with standard procedures identified above for these overages, shortages, and misidentified items.

8. DISPOSITION OF CONDEMNED GOVERNMENT PROPERTY:

8.1. The contractor shall submit a list of condemned Special Tooling/Special Test

Equipment (ERRC S & U) to the contracting ALC PCO and PMS. The listing shall identify the condemned items by NSN, PN, noun and quantity; and shall be submitted together with a letter of transmittal titled Request for Disposition of ST/STE condemned on Contract Number ________________ Attn: Loan Control Officer, LCO, Doris

McCall, 559 CBSS/GBMAC. Disposition instructions will be provided by the contract managing ALC.

9. CONTRACTOR REPORTING:

Appendix B Page 9 of 12

9.1. The contractor shall comply with DD Form 1423-1, Contract Data Requirements

List, regarding the CAV II Reporting (DI-MGMT-81634A).

10. VISITS:

10.1. Surveillance visits will be made by the ACO and/or the contracting ALC representatives when such visits are considered necessary, particularly in relation to contract material control and production schedules.

11. OTHER:

11.1. The contractor shall not obtain GFP through the utilization of requisition codes assigned exclusively to this contract for any other contracts.

11.2. The contractor shall not transfer GFP charged to this contract to any other contract, contractor, or activity without the advance approval of the PMS through the PCO.

11.3. The government reserves the right to withdraw any GFP in possession of the contractor to supply other urgent USAF requirements. If any item so removed by the government is still required to complete the contract, the contractor shall take appropriate action to replace the removed item.

11.4. When, during the last six months of the contract, it becomes evident that an option shall most probably be exercised, the PCO will notify the contractor through the ACO to maintain stock levels necessary to meet the option workload.

12. REFERENCES:

12.1. Federal Acquisition Regulation (FAR), Part 45, Management of Government

Property in the Possession of Contractors (current version).

12.2. Defense Federal Acquisition Regulation Supplement (DFARS), Subpart 245.5, Management of Government Property in the Possession of Contractors (current version).

12.3. Federal Acquisition Regulation (FAR), Part 52, Solicitation Provisions and

Contract Clauses.

12.4. Commercial Asset Visibility (CAV II), version 6.0 or higher User Manual.

12.5. AFJMAN 23-215, Reporting of Supply Discrepancies.

12.6. AFMAN 23-110, USAF Supply Manual.

Appendix B Page 10 of 12

12.7. FEDLOG is a logistical information system. The contractor will provide a CD-

ROM reader capable of reading a 4.72 inch compact disk. The CD-ROM reader must conform to High Sierra and ISO 9660 Standards.

12.8. DLA Customer Assistance Handbook.

12.9. Other DoD and military service directives; if specifically referenced in the contract, special clauses or appendices.

ATTACHMENT 1

CONTRACTOR COMMUNICATIONS NETWORK (CCN)

1. GENERAL INFORMATION:

1.1. The purpose of this attachment is to provide the specific conditions, hardware specifications, and communications interface to support contractor End Item reporting requirements. Through the CCN Air Force contractors, with aircraft, engine or

Appendix B Page 11 of 12 equipment repair contracts, have the capability to electronically process End Item transactions.

1.2. Initial CAV II training will be provided by the contracting ALC. Any follow up training will be the responsibility of the contractor.

2. WEB SITE:

2.1. CAV II web site accessed through the internet will be used to submit all End Item transactions. The contractor shall be required to complete a System Authorization Access

Request (SAAR), DD Form 2875, prior to CAV II.

2.2. The Web address for Online CAV II access is: https://cavaf.com/cavweb

3. TECHNICAL CONSIDERATIONS:

3.1. CAV Version 6.0 is designed to be accessible using Microsoft Internet Explorer (IE6) v6.0 or higher or Netscape 4.75 or higher on a Windows 2000 or XP platform. IE6 is suggested and contains the required 128-bit encryption capability, and DoD certification.

The following hardware is suggested as a minimum to adequately support CAV reporting with a minimum system requirement using Windows 2000 or XP:

IBM compatible PC (1.5 GHZ Pentium)

512 MB RAM

20 GB hard drive

LCD monitor

56 K BPS or faster data transmission modem, or connection to WAN/LAN

Laser Printer with 300 DPI resolution, (must support true type font)

3.2. The following software is required to accomplish CAV Web-based reporting:

Operating System: Windows 2000 or Windows XP

Web Browser: Internet Explorer, version 6.0 (preferred), or Netscape version 4.75

(or higher) is also compatible, but not recommended for Air Force use.

3.3. CAV II Web-based software will reside on the AF mid-tier server. CAV II software changes will be made at the mid-tier server and they will be available to the repair vendor upon log-on to the CAV system. Changes to CAV software by the commercial repair vendors are not authorized.

4. CONTRACTOR RESPONSIBILITY:

4.1. The contractor shall be responsible for the maintenance of the hardware and supplies

(paper, ink, ribbons, extra disks, etc) to keep the PC system operational and compatible with the host computer.

https://g009.ogden.disa.mil/

Appendix B Page 12 of 12

4.2. The contractor shall use the CCN/CAV II Reporting System to report all GFM and end item transactions. These transactions shall be entered into CAV II on a real time basis or as changes generate, but not later than 24 hours from the date of occurrence.

4.3. System failures that cannot be corrected within 24 hours shall be reported to the contracting ALC by the fastest means possible.

5. SYSTEM AUTHORIZATION ACCESS REQUEST (SAAR):

5.1. The SAAR, DD Form 2875, shall be completed by the contractor and submitted by

FAX or electronically to the managing ALC CAV II POC.

Form2875

5.2. OC-ALC CAV II POC is the Contract Repair Office, 559 CBSS/GBLC, FAX (405)

736-5308. Mailing address is:

559 CBSS/GBLC

ATTN: CAV II System Administrator

3001 Staff Drive, Ste 2AI 67A

Tinker AFB, OK 73145-3045

5.3. The user ID on the Internet will be standard for all users. NOTE: Use lower case letters. The user id and initial password will normally be emailed

5.4. Users will be required to change this password following your initial entry to the system.