FA811817R0006_revised.pdf

STANDARD FORM 1447 (2/2012)

Prescribed by GSA FAR (48 CFR) 53.215-1(d)

4. SOLICITATION NUMBER

FA8118-17-R-0006

X

X

6.SOLICITATION ISSUE DATE

8. THIS ACQUISITION IS UNRESTRICTED OR SET ASIDE: 100 % FOR

SMALL BUSINESS WOMEN-OWNED SMALL BUSINESS (WOSB)

ELIGIBLE UNDER THE WOSB PROGRAM

HUBZONE SMALL

BUSINESS EDWOSB

SERVICE-DISABLED VETERAN-

OWNED SMALL BUSINESS NAICS CODE: 336413

8(A) SIZE STANDARD: 1250

DATE SIGNED

28. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER)

26. AWARD OF CONTRACT: YOUR OFFER ON SOLICITATION NUMBER

SHOWN IN BLOCK 4 INCLUDING ANY ADDITIONS OR CHANGES WHICH

ARE SET FORTH HEREIN, IS ACCEPTED AS TO ITEMS:

Subject to the terms and conditions stated herein, the Contractor agrees to hold its offered prices firm for 30 days.

SEE LINE ITEM SCHEDULE

22.

AMOUNT

16. AUTHORITY FOR USING OTHER THAN 10 USC 2304 41 USC 253

FULL AND OPEN COMPETITION (c) ( ) (c) ( )

DATE SIGNED

27. SIGNATURE OF OFFEROR/CONTRACTOR

20.

UNIT

21.

UNIT PRICE

19.

QUANTITY

13. CONTRACTOR OFFEROR CODE FACILITY CODE

11. IF OFFER IS ACCEPTED BY THE GOVERNMENT WITHIN * ___ CALENDAR DAYS (60 CALENDAR

DAYS UNLESS OFFEROR INSERTS A DIFFERENT PERIOD) FROM THE DATE SET FORTH IN BLK 9

ABOVE, THE CONTRACTOR AGREES TO HOLD ITS OFFERED PRICES FIRM FOR THE ITEMS

SOLICITED HEREIN AND TO ACCEPT ANY RESULTING CONTRACT SUBJECT TO THE TERMS AND

CONDITIONS STATED HEREIN. *30

RATING

DO: A1

3. AWARD/EFFECTIVE DATE

FA8118

2. CONTRACT NO.

CHECK IF REMITTANCE IS DIFFERENT

AND PUT SUCH ADDRESS IN OFFER

17.

ITEM NO.

12. ADMINISTERED BY CODE

Total

SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK: 14 EFT:T

SCD:B

NAME AND TITLE OF SIGNER (TYPE OR PRINT) NAME OF CONTRACTING OFFICER

24. AWARD AMOUNT (FOR GOVT USE ONLY)

23. ACCOUNTING AND APPROPRIATION DATA

SEE SCHEDULE

5. SOLICITATION TYPE

SEALED BIDS NEGOTIATED

(IFB) (RFP)

15. PROMPT PAY DISCOUNT

25. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND DELIVER ALL ITEMS SETFORTH

OR OTHERWISE IDENTIFIED ABOVE AND ON ANY CONTINUATION SHEETS SUBJECT

THE TERMS AND CONDITIONS SPECIFIED HEREIN.

10. ITEMS TO BE PURCHASED (BRIEF DESCRIPTION)

SUPPLIES SERVICES Other Aircraft Part and Auxiliary Equipment Manufacturing

9.

LATE OFFERS ARE SUBJECT TO LATE PROPOSAL PROVISIONS INCORPORATED HEREIN. ALL OFFERS ARE SUBJECT TO SUCH PROVISIONS, REPRESENTATIONS, CERTIFICATIONS AND SPECIFICATIONS AS ARE ATTACHED OR INCORPORATED BY REFERENCE.

SOLICITATION: OFFERS WILL BE RECEIVED AT THE ISSUING OFFICE UNTIL

23-MAY-2017 3:00PM

18.

SCHEDULE OF SUPPLIES/SERVICES

14. PAYMENT WILL BE MADE BY CODE

(SEE ESP CLAUSE 252.232-7003.)

X

7. ISSUED BY CODE

DEPARTMENT OF THE AIR FORCE, AFSC PZABB

3001 STAFF DR STE 1AC4 99A

TINKER AFB OK 73145-3303

BUYER: Lakiesha Hawkins/AFSC/PZABB lakiesha.hawkins@us.af.mil Phone: (405) 739- 4466 Fax: (000 No Collect Calls

X

1. THIS CONTRACT IS A RATED ORDER

UNDER DPAS (15 CFR 350)SOLICITATION/CONTRACT

BIDDER/OFFEROR TO COMPLETE BLOCKS 11, 13, 15, 21, 22, & 27.

J

SF 1447 (rev 2/2012) BACK

NO RESPONSE FOR THE REASONS CHECKED

TYPE OR PRINT NAME AND TITLE OF SIGNER

SIGNATURENAME AND ADDRESS OF FIRM (Include Zip Code)

WE DO NOT DESIRE TO BE RETAINED ON THE MAILING LIST FOR FUTURE PROCUREMENT OF THE TYPE OF

ITEMS INVOLVED

WE DO

OTHER (Specify)

CANNOT COMPLY WITH SPECIFICATIONS

CANNOT COMPLY WITH SPECIFICATIONS CANNOT MEET DELIVERY REQUIREMENT

FOLD

FOLD

SOLICITATION NO. FA811817R0006

DUE: 23 MAY 2017 3:00 PM

FROM: AFFIX

STAMP

HERE

TO:

ATTN: Lakiesha Hawkins/AFSC/PZABB

DEPARTMENT OF THE AIR FORCE, AFSC PZABB

3001 STAFF DR STE 1AC4 99A

TINKER AFB OK 73145-3303

FA8118-17-R-0006

PART I - THE SCHEDULE

SECTION B

SUPPLIES OR SERVICES AND PRICES/COSTS

a) This is a remanufacture meeting the requirements at FAR 22.1003-6(a)(1).

The contractor shall furnish all material, plant facilities, labor, parts, equipment, and expertise necessary to perform the remanufacture required to restore the piece(s) of equipment to original life expectancy, or nearly so. The contractor shall also accomplish all necessary packing and preservation and packaging. ALL work shall be completed in accordance with the requirements specified herein (including attachments hereto) and at the unit price(s) established at the time of award.

(b) A Pre-Award Survey and/or Initial Production Evaluation (IPE) may be required. Details are provided in Appendix A, paragraphs 1.2 and 1.3 respectively.

(c) Qualification requirements apply. Interested vendors that have not been previously qualified for this acquisition must submit a Source Approval Request (SAR) package to the Source Development, Small Business Office @ 405-739-7243.

As prescribed in FAR 9.202(e), the contracting officer need not delay a proposed award in order to provide a potential offeror with an opportunity to demonstrate its ability to meet the standards specified for qualification.

(d) This acquisition may involve technology that has a military or space application. The only contractors who may participate are those that are certified and registered with the Defense Logistics Information Service (DLIS) (1-800-352-3572) and have a legitimate business purpose. In order to receive any technical data related to this acquisition, offerors must be registered with Federal Business Opportunities (FedBizOpps) www.FBO.Gov.

Requests for data, drawings, and Technical Orders (TOs) are to be submitted directly to the PCO and/or buyer. The request shall be on company letterhead and include the applicable solicitation number and the specific data needed (e.g. TO number, drawing number). The request must be accompanied by a copy of the current and approved DD Form 2345. The form, including instructions for completing the form, is available at:

http://www.dtic.mil/whs/directives/infomgt/forms/forminfo/forminfopage2220.html The Government is not responsible for incomplete, misdirected, or untimely requests.

(e) Some units of items listed in Section B may, upon disassembly and/or inspection, be determined to be beyond the remanufacture limits specified in the Work Specification and/or Technical Orders. Any cost for work performed by the Contractor prior to determination that such equipment is beyond these limits, shall be included in the unit price(s) of the listed item(s).

(f) Condemned units shall not be counted as production.

(g) END ITEMS BEYOND REMANUFACTURE "Reparable End Items" are defined as end items which can be restored to a serviceable condition, in accordance with applicable requirements. If the contractor estimates that any item is not reparable (i.e. beyond remanufacture), the Contractor shall promptly notify the administrative contracting officer in writing and shall not perform further remanufacture on any such items except at the direction of the administrative contracting officer (ACO). Upon written confirmation from the ACO that a particular item is not reparable, the contractor shall dispose of the unit in the manner directed by the ACO.

(h) Offerors must clearly identify all proposed deviations from the solicitation requirements and/or exceptions to the terms and conditions. Offerors must also provide complete rationale for all proposed deviations and/or exceptions.

See section L, paragraph L-03(b) of INSTRUCTIONS, CONDITIONS, AND NOTICES TO RESPONDENTS FOR PROPOSAL PREPARATION USING LOWEST PRICE TECHNICALLY ACCEPTABLE (LPTA) PROCEDURES.

(i) Failure of the Government to furnish such items in the amounts or quantities described in the Schedule as “estimated” or “maximum” will not entitle the contractor to any equitable adjustment in price under the Government

Property clause of the contract.

Remanufacture of KC-135 Gearbox Assembly

BASIC YEAR

Item No.

Firm Fixed Price Best Estimated Qty

U/I Unit Price Estimated Total Price

16 EA

NSN: 1680-00-340-9352 FL

GEARBOX ASSEMBLY,AI

Fillet Flap Drive Double Angle Gearbox (bearing mounted bevel gears sealed within a housing) provides a double alignment change of the torque tube drives for the fillet flaps.

Staneless Steel,Aluminum,bronz Manufacturer Part Number 81205 5-97039-1 Associated Document(s) Line Item(s)

FD20301600517 0001

Priority: R

Limitations of Liability: Other Than High Value Item

Inspection: Origin Acceptance: Origin Inspection/Acceptance Report: WAWF Quality Assurance: Higher Level Contract Quality Requirements The Contractor shall comply with the standard(s) listed below. (if more than one, check the appropriate standard.)

Title Number Date Tailoring ISO 9001-2008 2008 or equivalent AS9100 9100 or equivalent

Buy American Act/Balance of Payments Program IUID Required: Yes Physical Item Markings:

IAW MIL-STD-130

Transportation From Continental United States CONUS (CONUS) Sources

TYPE / SHIP TO CODE F.O.B.

A TBD ORIGIN

Class I ODS Substance Application/Use Quantity None Type / Ship To PACRN Mark For

A TBD PAA

Type / Ship To Quantity (U/I) *ARO 3 ea every

30 days ARO and repairable assets. Early delivery is acceptable.

_ Req No / Pri

Required Delivery

A TBD 3 EA *30 Calendar Days

Proposed Delivery

Remanufacture of KC-135 Gearbox Assembly

BASIC YEAR

A TBD 3 EA

DATA AND REPORTS

BASIC YEAR

Item No.

DATA

EXHIBIT A

RELATED LINE ITEMS 0001

IN ACCORDANCE WITH THE REQUIREMENTS SET FORTH ON THE DD FORM 1423, ATTACHED AND MADE A PART HEREOF.

ITEM NO. FREQUENCY

* TOTAL NUMBER OF REPORTS

ANTICIPATED

UNIT PRICING PER

REPORT

TOTAL PRICE

A001 Daily TBD $ NSP $ NSP

A002 Monthly 12 $ NSP $ NSP

The award of any or all reports shall be at the sole discretion of the Government. The Government reserves the right to delete from the bid price each line item of data and/or reports that the Government does not desire prior to and after final award.

Associated Document(s) Line Item(s)

FD20301600517 0002

OVER AND ABOVE

BASIC YEAR

Item No.

Firm Fixed Price Quantity U/I Unit Price Total Price 1 LO To be Negotiated To be Negotiated

OVER RE

OVER AND ABOVE

DESCRIPTION

“Over and above work” means work discovered during the course of performing overhaul, maintenance, and repair efforts that is—

(i) Within the general scope of the contract;

(ii) Not covered by the line item(s) for the basic work under the contract; and

(iii) Necessary in order to satisfactorily complete the contract.

OVER AND ABOVE

BASIC YEAR

Over and above work shall be performed IAW the Appendix A, DFARS clause 252.217-7028.

FIXED PRICED ITEMS

At any time during contract performance, when sufficient data becomes available on a repetitive task being performed, either the Contractor or the Contracting Officer (Administrative or Procuring) may request a negotiation to establish a firm-fixed-price for that item for the remaining life of the contract.

Fixed priced items shall be defined as they are negotiated.

Associated Document(s) Line Item(s)

FD20301600517 0004

Remanufacture of KC-135 Gearbox Assembly

OPTION YEAR I

Item No.

Firm Fixed Price Best Estimated Qty

U/I Unit Price Estimated Total Price

16 EA

NSN: 1680-00-340-9352 FL

GEARBOX ASSEMBLY,AI

Fillet Flap Drive Double Angle Gearbox (bearing mounted bevel gears sealed within a housing) provides a double alignment change of the torque tube drives for the fillet flaps.

Staneless Steel,Aluminum,bronz Manufacturer Part Number 81205 5-97039-1 Associated Document(s) Line Item(s)

FD20301600517 0001

Priority: R

Limitations of Liability: Other Than High Value Item

Inspection: Origin Acceptance: Origin Inspection/Acceptance Report: WAWF Quality Assurance: Higher Level Contract Quality Requirements The Contractor shall comply with the standard(s) listed below. (if more than one, check the appropriate standard.)

Title Number Date Tailoring

IUID Required: Yes Physical Item Markings:

IAW MIL-STD-130

Remanufacture of KC-135 Gearbox Assembly

OPTION YEAR I

Transportation From Continental United States CONUS (CONUS) Sources

TYPE / SHIP TO CODE F.O.B.

A TBD ORIGIN

Class I ODS Substance Application/Use Quantity None Type / Ship To PACRN Mark For

A TBD PAA

Type / Ship To Quantity (U/I) *ARO 3 ea every

30 days ARO and repairable assets.

Early delivery is acceptable.

_ Req No / Pri

Required Delivery

A TBD 3 EA *30 Calendar Days

Proposed Delivery

A TBD 3 EA

DATA AND REPORTS

OPTION YEAR I

Item No.

DATA RE

EXHIBIT B

RELATED LINE ITEMS 1001

IN ACCORDANCE WITH THE REQUIREMENTS SET FORTH ON THE DD FORM 1423, ATTACHED AND MADE A PART HEREOF.

ITEM NO. FREQUENCY

* TOTAL NUMBER OF REPORTS

ANTICIPATED

UNIT PRICING PER

REPORT

TOTAL PRICE

B001 Daily TBD $ NSP $ NSP

B002 Monthly 12 $ NSP $ NSP

The award of any or all reports shall be at the sole discretion of the Government. The Government reserves the right to delete from the bid price each line item of data and/or reports that the Government does not desire prior to and after final award.

Associated Document(s) Line Item(s)

FD20301600517 0003

Exhibit: B

OVER AND ABOVE

OPTION YEAR I

Item No.

Firm Fixed Price Quantity U/I Unit Price Total Price 1 LO To be Negotiated To be Negotiated

OVER

OVER AND ABOVE

DESCRIPTION

“Over and above work” means work discovered during the course of performing overhaul, maintenance, and repair efforts that is—

(i) Within the general scope of the contract;

(ii) Not covered by the line item(s) for the basic work under the contract; and

(iii) Necessary in order to satisfactorily complete the contract.

Over and above work shall be performed IAW the Appendix A, DFARS clause 252.217-7028.

FIXED PRICED ITEMS

At any time during contract performance, when sufficient data becomes available on a repetitive task being performed, either the Contractor or the Contracting Officer (Administrative or Procuring) may request a negotiation to establish a firm-fixed-price for that item for the remaining life of the contract.

Fixed priced items shall be defined as they are negotiated.

Associated Document(s) Line Item(s)

FD20301600517 0004

Remanufacture of KC-135 Gearbox Assembly

OPTION YEAR II

Item No.

Firm Fixed Price Best Estimated Qty

U/I Unit Price Estimated Total Price

16 EA

NSN: 1680-00-340-9352 FL

GEARBOX ASSEMBLY,AI

Fillet Flap Drive Double Angle Gearbox (bearing mounted bevel gears sealed within a housing) provides a double alignment change of the torque tube drives for the fillet flaps.

Staneless Steel,Aluminum,bronz Manufacturer Part Number 81205 5-97039-1 Associated Document(s) Line Item(s)

FD20301600517 0001

Priority: R

Limitations of Liability: Other Than High Value Item

Inspection: Origin Acceptance: Origin Inspection/Acceptance Report: WAWF

Remanufacture of KC-135 Gearbox Assembly

OPTION YEAR II

Quality Assurance: Higher Level Contract Quality Requirements The Contractor shall comply with the standard(s) listed below. (if more than one, check the appropriate standard.)

Title Number Date Tailoring

IUID Required: Yes Physical Item Markings:

IAW MIL-STD-130

Transportation From Continental United States CONUS (CONUS) Sources

TYPE / SHIP TO CODE F.O.B.

A TBD ORIGIN

Class I ODS Substance Application/Use Quantity None Type / Ship To PACRN Mark For

A TBD PAA

Type / Ship To Quantity (U/I) *ARO 3 ea every

30 days ARO and repairable assets.

Early delivery is acceptable.

_ Req No / Pri

Required Delivery

A TBD 3 EA *30 Calendar Days

Proposed Delivery

A TBD 3 EA

DATA AND REPORTS

OPTION YEAR II

Item No.

DATA

EXHIBIT C

RELATED LINE ITEMS 2001

IN ACCORDANCE WITH THE REQUIREMENTS SET FORTH ON THE DD FORM 1423, ATTACHED AND MADE A PART HEREOF.

ITEM NO. FREQUENCY

* TOTAL NUMBER OF REPORTS

ANTICIPATED

UNIT PRICING PER

REPORT

TOTAL PRICE

C001 Daily TBD $ NSP $ NSP

C002 Monthly 12 $ NSP $ NSP

DATA AND REPORTS

OPTION YEAR II

The award of any or all reports shall be at the sole discretion of the Government. The Government reserves the right to delete from the bid price each line item of data and/or reports that the Government does not desire prior to and after final award.

Associated Document(s) Line Item(s)

FD20301600517 0003

Exhibit: C

OVER AND ABOVE

OPTION YEAR II

Item No.

Firm Fixed Price Quantity U/I Unit Price Total Price 1 LO To be Negotiated To be Negotiated

OVER

OVER AND ABOVE

DESCRIPTION

“Over and above work” means work discovered during the course of performing overhaul, maintenance, and repair efforts that is—

(i) Within the general scope of the contract;

(ii) Not covered by the line item(s) for the basic work under the contract; and

(iii) Necessary in order to satisfactorily complete the contract.

Over and above work shall be performed IAW the Appendix A, DFARS clause 252.217-7028.

FIXED PRICED ITEMS

At any time during contract performance, when sufficient data becomes available on a repetitive task being performed, either the Contractor or the Contracting Officer (Administrative or Procuring) may request a negotiation to establish a firm-fixed-price for that item for the remaining life of the contract.

Fixed priced items shall be defined as they are negotiated.

Associated Document(s) Line Item(s)

FD20301600517 0004

Remanufacture of KC-135 Gearbox Assembly

OPTION YEAR III

Item No.

Firm Fixed Price Best Estimated Qty

U/I Unit Price Estimated Total Price

16 EA

NSN: 1680-00-340-9352 FL

GEARBOX ASSEMBLY,AI

Remanufacture of KC-135 Gearbox Assembly

OPTION YEAR III

Fillet Flap Drive Double Angle Gearbox (bearing mounted bevel gears sealed within a housing) provides a double alignment change of the torque tube drives for the fillet flaps.

Staneless Steel,Aluminum,bronz Manufacturer Part Number 81205 5-97039-1 Associated Document(s) Line Item(s)

FD20301600517 0001

Priority: R

Limitations of Liability: Other Than High Value Item

Inspection: Origin Acceptance: Origin Inspection/Acceptance Report: WAWF Quality Assurance: Higher Level Contract Quality Requirements The Contractor shall comply with the standard(s) listed below. (if more than one, check the appropriate standard.)

Title Number Date Tailoring

IUID Required: Yes Physical Item Markings:

IAW MIL-STD-130

Transportation From Continental United States CONUS (CONUS) Sources

TYPE / SHIP TO CODE F.O.B.

A TBD ORIGIN

Class I ODS Substance Application/Use Quantity None Type / Ship To PACRN Mark For

A TBD PAA

Type / Ship To Quantity (U/I) *ARO 3 ea every

30 days ARO and repairable assets.

Early delivery is acceptable.

_ Req No / Pri

Required Delivery

A TBD 3 EA *30 Calendar Days

Proposed Delivery

A TBD 3 EA

DATA AND REPORTS

OPTION YEAR III

Item No.

DATA

DATA AND REPORTS

OPTION YEAR III

EXHIBIT D

RELATED LINE ITEMS 3001

IN ACCORDANCE WITH THE REQUIREMENTS SET FORTH ON THE DD FORM 1423, ATTACHED AND MADE A PART HEREOF.

ITEM NO. FREQUENCY

* TOTAL NUMBER OF REPORTS

ANTICIPATED

UNIT PRICING PER

REPORT

TOTAL PRICE

D001 Daily TBD $ NSP $ NSP

D002 Monthly 12 $ NSP $ NSP

The award of any or all reports shall be at the sole discretion of the Government. The Government reserves the right to delete from the bid price each line item of data and/or reports that the Government does not desire prior to and after final award.

Associated Document(s) Line Item(s)

FD20301600517 0003

Exhibit: D

OVER AND ABOVE

OPTION YEAR III

Item No.

Firm Fixed Price Quantity U/I Unit Price Total Price 1 LO To be Negotiated To be Negotiated

OVER

OVER AND ABOVE

DESCRIPTION

“Over and above work” means work discovered during the course of performing overhaul, maintenance, and repair efforts that is—

(i) Within the general scope of the contract;

(ii) Not covered by the line item(s) for the basic work under the contract; and

(iii) Necessary in order to satisfactorily complete the contract.

Over and above work shall be performed IAW the Appendix A, DFARS clause 252.217-7028.

FIXED PRICED ITEMS

At any time during contract performance, when sufficient data becomes available on a repetitive task being performed, either the Contractor or the Contracting Officer (Administrative or Procuring) may request a negotiation to establish a firm-fixed-price for that item for the remaining life of the contract.

Fixed priced items shall be defined as they are negotiated.

Associated Document(s) Line Item(s)

FD20301600517 0004

Remanufacture of KC-135 Gearbox Assembly

OPTION YEAR IV

Item No.

Firm Fixed Price Best Estimated Qty

U/I Unit Price Estimated Total Price

16 EA

NSN: 1680-00-340-9352 FL

GEARBOX ASSEMBLY,AI

Fillet Flap Drive Double Angle Gearbox (bearing mounted bevel gears sealed within a housing) provides a double alignment change of the torque tube drives for the fillet flaps.

Staneless Steel,Aluminum,bronz Manufacturer Part Number 81205 5-97039-1 Associated Document(s) Line Item(s)

FD20301600517 0001

Priority: R

Limitations of Liability: Other Than High Value Item

Inspection: Origin Acceptance: Origin Inspection/Acceptance Report: WAWF Quality Assurance: Higher Level Contract Quality Requirements The Contractor shall comply with the standard(s) listed below. (if more than one, check the appropriate standard.)

Title Number Date Tailoring

IUID Required: Yes Physical Item Markings:

IAW MIL-STD-130

Transportation From Continental United States CONUS (CONUS) Sources

TYPE / SHIP TO CODE F.O.B.

A TBD ORIGIN

Class I ODS Substance Application/Use Quantity None Type / Ship To PACRN Mark For

A TBD PAA

Type / Ship To Quantity (U/I) *ARO 3 ea every

30 days ARO and repairable assets.

Early delivery is acceptable.

_ Req No / Pri

Required Delivery

A TBD 3 EA *30 Calendar Days

Proposed Delivery

A TBD 3 EA

DATA AND REPORTS

OPTION IV

Item No.

DATA

EXHIBIT E

RELATED LINE ITEMS 4001

IN ACCORDANCE WITH THE REQUIREMENTS SET FORTH ON THE DD FORM 1423, ATTACHED AND MADE A PART HEREOF.

ITEM NO. FREQUENCY

* TOTAL NUMBER OF REPORTS

ANTICIPATED

UNIT PRICING PER

REPORT

TOTAL PRICE

E001 Daily TBD $ NSP $ NSP

E002 Monthly 12 $ NSP $ NSP

The award of any or all reports shall be at the sole discretion of the Government. The Government reserves the right to delete from the bid price each line item of data and/or reports that the Government does not desire prior to and after final award.

Associated Document(s) Line Item(s)

FD20301600517 0003

Exhibit: E

OVER AND ABOVE

OPTION IV

Item No.

Firm Fixed Price Best Estimated Qty

U/I Unit Price Total Price

1 LO To be Negotiated To be Negotiated

OVER

OVER AND ABOVE

DESCRIPTION

“Over and above work” means work discovered during the course of performing overhaul, maintenance, and repair efforts that is—

(i) Within the general scope of the contract;

(ii) Not covered by the line item(s) for the basic work under the contract; and

(iii) Necessary in order to satisfactorily complete the contract.

Over and above work shall be performed IAW the Appendix A, DFARS clause 252.217-7028.

FIXED PRICED ITEMS

OVER AND ABOVE

OPTION IV

At any time during contract performance, when sufficient data becomes available on a repetitive task being performed, either the Contractor or the Contracting Officer (Administrative or Procuring) may request a negotiation to establish a firm-fixed-price for that item for the remaining life of the contract.

Fixed priced items shall be defined as they are negotiated.

Associated Document(s) Line Item(s)

FD20301600517 0004

SHIP TO / PLACE OF PERFORMANCE

TYPE/CODE: A TBD

TO BE DETERMINED 00000-0000

MARK FOR: (See Individual Line Item) REQUISITION NUMBER: (See Individual Line Item) REQUISITION PRIORITY: (See Individual Line Item)

AWARD NUMBER:

Shipping Instructions: The contractor shall contact the Production Management Specialist (PMS), Dylan Brady, by phone at (405) 582-5970 or by email to dylan.brady@us.af.mil to obtain shipping instructions.

Instructions shall be requested prior to any shipments of serviceable assets and after Government QAR approval is obtained. Assets should be "Marked For" Account 09, Serviceable Stock, unless otherwise notified.

The contractor shall within two (2) working days of shipment provide the PMS with proof of shipment (i.e. WAWF).

PART II - CONTRACT CLAUSES

SECTION I

CONTRACT CLAUSES

52.203-17 CONTRACTOR EMPLOYEE WHISTLEBLOWER RIGHTS AND REQUIREMENT TO INFORM

EMPLOYEES OF WHISTLEBLOWER RIGHTS (APR 2014)

(IAW FAR 3.908-9)

(Applicable to solicitations and contracts that exceed the simplified acquisition threshold)

52.222-3 CONVICT LABOR (JUN 2003)

(IAW FAR 22.202)

(Applicable when performance is in the U.S., Puerto Rico, Northern Mariana Islands, American Samoa, Guam, or the U.S. Virgin Islands, unless subject to the Walsh-Healey Public Contracts Act, purchase is from Federal Prisons Industries, Inc., or purchase is from any State prison of finished supplies that may be secured in the open market/existing stocks, as distinguished from supplies requiring special fabrication, and exceeds the micro-purchase threshold)

252.231-7000 SUPPLEMENTAL COST PRINCIPLES (DEC 1991)

(IAW DFARS 231.100-70)

(Applicable over $500,000)

PART III - LIST OF DOCUMENTS, EXHIBITS, AND OTHER ATTACHMENTS

SECTION J

LIST OF ATTACHMENTS

Form Number Description/File Name Date Number of Pages CAV_AF.pdf

CAVAF SOW

23OCT2015

CDRLS.pdf

CDRLS

23OCT2015

DID_81634C.pdf

DID

23OCT2015

DID_81995.pdf

DID_81995

23OCT2015

Packaging.pdf Packaging

23OCT2015

TRNSPDATA_REPORT.pdf Transportaion

23OCT2015

SGFP.pdf Scheduled Government Furnished Property

23OCT2015

1925665_ATTACH.pdf Tagging Instructions

UNDATED 7

Changes_to_TO.pdf Changes to TO

UNDATED 1

SOW.pdf Statement of Work

31MAR2017

PART IV - REPRESENTATIONS AND INSTRUCTIONS

SECTION K

REPRESENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS

OF OFFERORS OR RESPONDENTS

52.225-25 PROHIBITION ON CONTRACTING WITH ENTITIES ENGAGING IN CERTAIN

ACTIVITIES OR TRANSACTIONS RELATING TO IRAN--REPRESENTATION AND

CERTIFICATIONS (OCT 2015)

(IAW FAR 25.1103(e))

(Applicable to all solicitations)

PART IV - REPRESENTATIONS AND INSTRUCTIONS

SECTION L

INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS OR RESPONDENTS

52.215-22 LIMITATIONS ON PASS-THROUGH CHARGES--IDENTIFICATION OF

SUBCONTRACT EFFORT (OCT 2009)

(IAW FAR 15.408(n)(1))

(Applicable to solicitations containing the clause at 52.215-23, Limitations on Pass-Through Charges)

Section L - Instructions, Conditions, and Notices to Offerors

12. Program Structure and Objective

1.1. The Government plans to award a single contract for the Remanufacture of the KC-135 Gearbox Assembly. This requirements type contract will include 1 basic year and 4 one-year options.

1.2. Budget/Funding Information

Funding will be obligated on individual delivery orders for the Firm-Fixed-Price (FFP) Contract Line Item Numbers (CLINs), including any necessary Over and Above costs.

2.1 General Instructions.

2.1.1. This source selection will utilize Lowest Priced Technically Acceptable source selection procedures. Contract award will be made to the offeror who is technically acceptable with lowest evaluated price. This section of the Instructions to Offerors (ITO) provides general guidance for preparing proposals as well as specific instructions on the format and content of the proposal. The offeror’s proposal must include all data and information requested by the ITO and must be submitted in accordance with these instructions. Any Offeror who submits an incomplete package may be considered ineligible for award.

The offer shall be compliant with the requirements as stated in the Statement of Work. Non-conformance with the instructions provided in the ITO may result in an unfavorable proposal evaluation.

2.1.2. The proposal shall be clear, concise, and shall include sufficient detail for effective evaluation and for substantiating the validity of stated claims. The proposal should not simply rephrase or restate the Government's requirements, but rather shall provide convincing rationale to address how the offeror intends to meet these requirements. Offerors shall assume that the Government has no prior knowledge of their facilities and experience, and will base its evaluation on the information presented in the offeror’s proposal.

2.1.3. Elaborate brochures, documentation, binding, detailed artwork, or other embellishments are unnecessary and are not desired.

2.1.4. The proposal acceptance period is specified in Section A of the model contract/solicitation. By signing the Request for Proposal, the offeror shall make a clear statement in Section A of the proposal documentation volume that the proposal is valid until this date.

2.1.5. In accordance with FAR Subpart 4.8 (Government Contract Files), the Government will retain one copy of all unsuccessful proposals. Unless the offeror requests otherwise, the Government will destroy extra copies of such unsuccessful proposals.

2.2. General Information

2.2.1. Point of Contact

The procurement contracting officer (PCO) or buyer is the Sole point of contact for this acquisition. Address any questions or concerns you may have to the buyer or PCO. Written requests for clarification may be emailed to the buyer at the address cited in Section A of the contract/solicitation at lakiesha.hawkins@us.af.mil or the PCO at kyle.newcomb@us.af.mil.

2.2.2. Debriefings

The CO will promptly notify offerors of any decision to exclude them from the competitive range, whereupon they may request and receive a debriefing in accordance with FAR 15.505. Offerors excluded from the competitive range may request a pre-award debriefing or they may choose to wait until after the source selection decision to request a post-award debriefing.

However, offerors excluded from the competitive range are entitled to no more than one debriefing for each proposal. The CO will notify unsuccessful offerors in accordance with FAR 15.503. Upon such notification, unsuccessful offerors may request and receive a debriefing. Offerors desiring a debriefing must make their request in accordance with the requirements of FAR

15.505 or 15.506, as applicable.

2.2.3. Discrepancies

If an offeror believes that the requirements in these instructions contain an error, omission, or are otherwise unsound, the offeror shall immediately notify the CO in writing with supporting rationale as well as the remedies the offeror is asking the CO to consider as related to the omission or error. The offeror is reminded that the Government reserves the right to award this effort based on the initial proposal, as received, without discussions. This reservation includes matters of additional or substitute pages of the initial proposal.

2.2.4. Electronic Reference Documents

All referenced documents for this solicitation are available on the Federal Business Opportunities (FedBizOpps) web site at http://www.fbo.gov. Potential Offerors are encouraged to subscribe for real-time e-mail notifications when information has been posted to the website for this solicitation.

2.2.5. Amendments to Solicitation

If this RFP is amended, all terms and conditions that are not amended remain unchanged and in full force and effect. Offerors shall acknowledge receipt of any amendment and provide confirmation upon submission of the offeror’s proposal. Any unacknowledged amendments in the offeror’s proposal are subject to solicitation provision FAR 52.212-1(f).

2.2.6. Submission, Modification, Revision, and Withdrawal of Proposals Proposals and modifications to proposals shall be submitted in sealed envelopes or packages for paper media or through electronic media (as discussed in paragraph 2.4) addressed to the CO at the address shown in Section A of the model contract/solicitation, and showing the time and date specified for receipt, the solicitation number, and the name and address of the offeror.

2.3. Organization/Number of Copies/Page Limits

2.3.1. The offeror’s proposal must show solicitation number, name, address, and telephone and facsimile numbers of the offeror and electronic e-mail address if available.

2.3.2. A Team List of the offeror’s primary Point of Contacts shall be submitted with the proposal.

2.3.3. Page limits for Factor 2 Price, and Contract Documentation are unlimited.

2.4. Electronic Offers

Offers may be submitted electronically via fax or e-mail to the Buyer/Contracting Officer. Submission via e-mail is preferred.

If submission is via e-mail, the Contracting Officer’s e-mail inbox is the only acceptable point of receipt. No other US Government point of entry will be acceptable, including e-mail servers. Therefore, it is the offeror’s responsibility to ensure that their proposal is submitted in such a way as to allow adequate time for the offer to reach the Contracting Officer’s e-mail inbox no later than the hour and date specified for receipt of offers.

Unless otherwise directed elsewhere in this solicitation, offers submitted via e-mail may be submitted in one or more of the following file formats: .pdf, .doc/.docx or other format compatible with MS Word, .xls/.xlsx or other format compatible with MS Excel, .tif, .jpeg. Any other file format is not acceptable. If necessary, individual files may be combined and submitted using a “compressed folder” or .zip format.

2.6. Pricing Information

All pricing information shall be addressed ONLY in the Price Proposal.

2.7. Distribution

If offerors choose to submit a hard copy of the proposal, it shall be addressed to the Contracting Officer and mailed to:

DEPARTMENT OF THE AIR FORCE

AFSC/PZABB: ATTN: LAKIESHA HAWKINS

3001 Staff Drive, Ste 1AC4 99A

Tinker AFB OK 73145-3020

Telephone: 405-739-4466

Lakiesha.hawkins@us.af.mil

3.0. Factor 1 - Technical

A formal technical proposal or volume is not required. Offerors shall propose in accordance with requirements in the Supplies or Services and Prices/Costs Section of the RFP - NSNs/P/Ns, Delivery, Contract Data Requirements List (CDRLs), and all attachments herein. All the requirements specified in the solicitation are mandatory. By your proposal submission you are representing that your firm will perform all the requirements specified in the solicitation.

4.0 Factor 2 - Price

4.1. In the price proposal, the Offeror shall provide the following information in addition to the pricing in Supplies or Services and Prices/Cost Section (Part B) of the solicitation. These instructions are to assist you in submitting information required to evaluate the reasonableness of your proposed cost/price. Compliance with these instructions is mandatory and failure to comply may result in rejection of your proposal.

4.2. General Instructions

Information beyond that required by this instruction shall not be submitted, unless you consider it essential to document or support your cost/price position.

4.2.1. Price Reasonableness and Balance

Offeror’s proposal will be evaluated for reasonableness and balance. Offers should be sufficiently detailed to demonstrate their reasonableness. The burden of proof for credibility of proposed prices rests with the offeror. Additionally, unbalanced pricing may pose an unacceptable risk to the Government and may be a reason to reject an offeror’s proposal.

4.2.2 Price Realism

Offeror’s proposal will be evaluated for price realism. Proposals should contain sufficient detail to demonstrate the offeror’s understanding of the requirement.

4.2.3. Pricing Information Requirements

FAR part 15 applies. In accordance with FAR 15.403-3-1(b), prices based on adequate price competition do not require submission of cost or pricing data. In accordance with FAR 15.403-3(a), however, information other than cost or pricing data may be required to support price reasonableness. FAR 15.403-3(a)(1) provides for obtaining information other than cost or pricing data if needed to determine price reasonableness. Therefore, the FAR does not preclude the requirement for obtaining other than cost or pricing data under certain circumstances and the Government reserves the right to obtain data as appropriate.

Should the CO determine proposed prices to appear unreasonable or the possibility that an Offeror does not fully understand the requirement, the Offerors may be required to support price reasonableness via other than cost or pricing data. If, after receipt of proposals, the CO determines that there is insufficient information available to determine price reasonableness and none of the exceptions in FAR 15.403-1 apply, the offeror shall be required to submit cost or pricing data.

4.2.4. Rounding

All dollar amounts shall be rounded to the nearest penny.

5.0. Contract Documentation

5.1. Model Contract/Representations and Certifications

The purpose of this section is to provide information to the Government for preparing the contract document and supporting file.

The offeror's proposal shall include a signed copy of the Model Contract, and Sections A through K.

5.1.1. Solicitation/Contract Form (Section A)

Completion of blocks 13 and signature and date for block 27 of the SF1447. Signature by the offeror on the SF1447 constitutes an offer, which the Government may accept.

5.1.2. Supplies or Services and Costs/Prices (Section B)

Completed pricing information in Section B of the model contract.

5.1.3. Contract Clauses (Section I)

The offeror shall provide required information to complete clauses as required.

5.1.4. Representations, Certifications, and other Statements of Offerors (Section K) The offeror has completed the annual representations and certification electronically via the ORCA website at http://orca.bpn.gov. After reviewing the ORCA database information, the offeror verifies by submission of this offer that the representation and certifications currently posted electronically at DFARS 252.204-7007, Alternate A, Annual Representations and Certifications are correct, or changes have been identified.

5.2. Exceptions to Solicitation Requirements

Offerors are required to meet all solicitation requirements, such as terms and conditions, representations and certifications, and technical requirements, in addition to those identified as evaluation factors or subfactors. Failure to meet a requirement may result in an offer being ineligible for award. Offerors must clearly identify any exception to the solicitation terms and conditions and provide complete accompanying rationale. Each exception shall be specifically related to each paragraph and/or specific part of the solicitation to which the exception is taken. Provide rationale in support of the exception and fully explain its impact, if any, on the performance, schedule, cost, and specific requirements of the solicitation. This information shall be provided in the format and content of Table 5.2. Offerors are cautioned the Government could determine any identified exceptions to be unacceptable, which would make the proposal ineligible for award.

Table 5.2 - Solicitation Exceptions

Solicitation Document

Page/ Paragraph

Requirement/ Portion

Rationale

SOO, SOW, SPEC, Model Contract, ITO, etc.

Applicable Page and Paragraph Numbers

Identify the requirement or portion to which exception is taken

Describe why the requirement can/will not be met

5.3. Other Information Required

5.3.1. Ombudsman

An Ombudsman has been appointed to hear concerns from offerors or potential offerors during the proposal development phase of this acquisition. The Ombudsman for this acquisition is OC-ALC/PKC. This does not diminish the authority of the program director or CO, but communicates offeror concerns, issues, disagreements and recommendations to the appropriate Government personnel. When requested, the Ombudsman shall maintain strict confidentiality as to the source of the concern. The Ombudsman does not participate in the evaluation of proposals or in the source selection process; interested parties are invited to call OC-ALC/PKC at 405-736-3273.

5.3.2. Authorized Offeror Personnel

Provide the name, title, and telephone number of the company/division point of contact regarding decisions made with respect to your proposal and who can obligate your company contractually. Also, identify those individuals authorized to negotiate with the Government.

5.3.3. Government Offices

Provide the mailing address, telephone and fax numbers and facility codes for the cognizant Contract Administration Office, DCAA, and Government Paying Office. Also, provide the name and telephone and fax number for the Administrative Contracting Officer (ACO).

5.3.4. Company/Division Address, Identifying Codes, and Applicable Designations Provide company/division's street address, county and facility code; CAGE code; DUNS code; TIN; size of business (large or small); and labor surplus area designation. This same information must be provided if the work for this contract will be performed at any other location(s). List all locations where work is to be performed and indicate whether such facility is a division, affiliate, or subcontractor, and the percentage of work to be performed at each location.

5.3.5. Attachments to the Model Contract

The model contract shall include the attachments listed in Section J.

PART IV - REPRESENTATIONS AND INSTRUCTIONS

SECTION M

EVALUATION FACTORS FOR AWARD

Section M - Evaluation Factors for Award

1.0. Source Selection (SS)

1.1. Basis for Contract Award

This acquisition will utilize Lowest Priced Technically Acceptable (LPTA) Source Selection procedures. Technical tradeoffs will not be made, and no additional credit will be given for exceeding acceptability. Award will be made to the offeror who is rated “acceptable” in Factor 1 Technical, has the lowest evaluated cost or price, and whose proposal conforms to the solicitation requirements (to include all stated terms, conditions, representations, and certifications). The Government reserves the right to award without discussions. Therefore, each initial offer should contain the offeror’s best terms from a price and technical standpoint. However, the Government reserves the right to conduct discussions if determined necessary by the Contracting Officer.

1.1.1. The SSA will base the source selection decision on an integrated assessment of proposals against all source selection criteria in the solicitation (described below). While the Government Source Selection Evaluation Board (SSEB) and the SSA will strive for maximum objectivity, the Source Selection process, by its nature, is subjective and, therefore, professional judgment is implicit throughout the entire process.

1.1.2. This source selection is conducted in accordance with Federal Acquisition Regulation (FAR) Part 15.3, Contracting by Negotiation, as supplemented by the Defense Federal Acquisition Regulation Supplement (DFARS), the Air Force Federal Acquisition Regulation Supplement (AFFARS), DoD Source Selection Procedures 04 Mar 2011, and Air Force Mandatory Procedures 5315.3. These regulations are available electronically at the Air Force (AF) FARSite, http://farsite.hill.af.mil.

1.2. Number of Contracts to be Awarded:

The Government intends to select one contractor for this acquisition. However, the Government reserves the right not to award a contract at all, depending on the quality of the proposals and prices submitted and the availability of funds.

1.3. Correction Potential of Proposals:

The Government will consider throughout the evaluation, the “correction potential” of any proposal aspect evaluated as “unacceptable”. The judgment of such “correction potential” is within the sole discretion of the Government. If an aspect of an Offeror's proposal not meeting the Government's requirements is not considered correctable or if the amount and/or complexity of the corrections needed to meet the Government requirement requires a major proposal revision, the Offeror may be eliminated from the competitive range.

1.4. Rejection of Offers

The Government may reject any evaluated proposal that fails to adequately address a significant portion of the requirement or contract terms and conditions. This may include rejection of a proposal that does not demonstrate an adequate understanding of the contract/program requirements and/or displays a fundamental lack of competence or failure to comprehend the complexity and risk of the program. All aspects/volumes of the proposals may be reviewed to ensure adequate resources to perform the proposed technical approach.

1.5. Competitive Range Determination

During the evaluation process multiple competitive range determinations may be made that eliminate Offerors from the competition IAW FAR 15.505. A competitive range determination may eliminate Offerors based on their initial proposal evaluation results, after discussions (if necessary), prior to issuance of the Final Proposal Revision (FPR) request, or for efficiency. If Offerors are excluded from the competitive range they may request a debriefing IAW FAR 15.505.

1.6. Discussions

The Government intends to award without discussions, but reserves the right to conduct discussions if necessary. Therefore, it is imperative that Offerors submit their best terms initially. However, if during the evaluation period it is determined to be in the best interest of the Government to hold discussions, Offeror responses to Evaluation Notices (ENs) and the FPR will be considered in making the Source Selection decision. If a Request for FPR is issued, Offeror responses to ENs for Volume I (Technical), Volume II (Price), and Volume III (Contract Documentation) must be incorporated in the FPR in order to be considered in the final evaluation. Failure to include EN responses in the FPR may result in a final “unacceptable” technical rating, or otherwise make your company ineligible for award.

1.7 Solicitation Requirements (Terms and Conditions)

Offerors are required to meet all solicitation requirements, such as terms and conditions, representations and certifications, and Statement of Work (SOW) requirements, in addition to those identified as factors and subfactors. Failure to comply with the terms and conditions of the solicitation may result in the Offeror being ineligible for award. Offerors must clearly identify any exception to the solicitation terms and conditions and must provide complete supporting rationale. The Government reserves the right to determine any such exceptions unacceptable, and the proposal, therefore, ineligible for award.

2.0. Evaluation Factors

2.1.1. Evaluation factors used to evaluate each proposal:

Award will be made to the offeror proposing the combination most advantageous to the Government based upon an integrated assessment of the evaluation factors described below.

Factor 1: Technical Factor 2: Price

2.1.2. Evaluation Methodology:

The Government will evaluate all factors concurrently for all proposals. Initial ratings and evaluated price will be established for each offeror. Only those offerors determined to be technically acceptable, either initially, or as a result of discussions will be considered for award. Award will be made to the lowest evaluated priced proposal meeting the acceptability standards for Factor 1 Technical, who has been determined responsible IAW FAR Part 9, as supplemented, and whose proposal conforms to the solicitation requirements (to include all stated terms, conditions, representations, and certifications).

2.2. Factor 1 – Technical

Technical proposals are not required. By submission of its offer, the offeror accedes to all solicitation requirements, including terms and conditions, representations and certifications, and technical requirements. Failure to meet a requirement may result in an offer being determined unacceptable. To be acceptable, the Offeror must be a qualified source in accordance with FAR 52.209-1. The technical ratings are defined as follows:

Rating Description Acceptable Proposal clearly meets the minimum requirements of the solicitation.

Unacceptable Proposal does not clearly meet the minimum requirements of the solicitation.

2.3. Factor 2 –Price

Price proposals will be evaluated for (1) completeness, (2) reasonableness, (3) price realism, (4) unbalanced pricing, and (5) Total Evaluated Price. Offerors whose price is determined to be incomplete, unreasonable, or unrealistic will not be considered for award. Additionally, an offeror’s price may be rejected, if it contains unbalanced pricing to the extent it poses an unacceptable risk to the Government.

2.3.1. Completeness

Proposals will be reviewed for completeness. Incomplete proposals will be considered unawardable.

2.3.2. Price Reasonableness

The proposed prices will be evaluated for reasonableness. Reasonableness must represent a price to the Government a prudent person would pay in the conduct of competitive business. Normally, price reasonableness is established through adequate price competition, but may also be determined through price analysis techniques as described in FAR 15.404.

2.3.3. Price Realism

Proposed prices will be evaluated for price realism. To be realistic, the proposed price must demonstrate an adequate understanding of the requirement, and must ensure the price does not pose a risk to performance. Unrealistic prices may be grounds for eliminating a proposal from the competition based on an apparent lack of adequate understanding of the requirement or failure to comprehend the complexity and risks of the program. To evaluate price realism, the Government may use one or more of the the price analysis techniques described in FAR 15.404. The Government may also use other evaluation techniques, as needed. Offerors are cautioned to not use underbidding as a pricing strategy with the intention of recovering under-bid costs after contract award via Requests for Equitable Adjustments (REAs) or other devices.

2.3.4. Unbalanced pricing

Offerors’ proposals will be reviewed for unbalanced pricing. The Government will evaluate any supporting information provided by the Offeror explaining variances that appear unbalanced. Evaluated offers that are determined to be unbalanced may be deemed ineligible for award by the Contracting Officer if a determination is made that lack of balance poses an unacceptable risk to the Government. Unbalanced pricing exists when, despite an acceptable total price, the price of one or more line items is significantly over or understated as demonstrated by application of price analysis techniques, such that:

13. There is reasonable doubt the offer would result in the lowest overall cost to the Government, even though it is the lowest priced Offeror; or

14. The offer is so grossly unbalanced; its acceptance would be tantamount to allowing an advanced payment.

2.3.5. Data Other than Certified Pricing Data

If requested by the CO, data other than certified pricing data shall be evaluated to support a determination of reasonable and balanced pricing. This information will only be requested if all other sources have been insufficient to support a determination of reasonable and/or balanced pricing.

2.3.6. Total Evaluated Price (TEP):

Pricing proposals will be reviewed for compliance with Section L pricing instructions. The TEP will be calculated as the sum of the total proposed prices for all separately priced line items (including sub line items). The total proposed price for all options will be added to the total proposed price for the basic requirement as a part of the TEP calculation.