PWS.doc

PERFORMANCE WORK STATEMENT (PWS)

For

F100-PW-100/200/220/220E/229 No. 1 Mainshaft Bearing

F100-PW-100/200/220/220E No. 2 Mainshaft Bearing

F100-PW-100/200/220/220E No. 3 Mainshaft Bearing

F100-PW-100/200/220/220E/229 No. 4 Mainshaft Bearing

FILE NUMBER: PR # FD2030-15-00216

REV. 3

DATE: 8 August 2016

PREPARING ORGANIZATION:

AFLCMC/LPSAAA

TINKER AFB OK 73145-3030

Table of Contents

4SECTION I: DESCRIPTION OF SERVICES

51.1.

DATA

61.2.

SECURITY

61.3.

QUALITY

71.4.

DELIVERY SCHEDULES

71.5.

CONDEMNATION and OVERHAUL

71.6.

HANDLING

81.7.

INVENTORY

81.8.

PRESERVATION

81.9.

RECEIPT/HANDLING OF PQDR EXHIBITS

81.10.

SAFETY & HEALTH

91.11.

GENERAL WORK REQUIREMENTS

101.12.

SPECIFIC WORK REQUIREMENTS

131.13.

APPLICABLE TECHNICAL ORDERS

141.14.

APPLICABLE DIRECTIVES

151.15.

PPLICABLE DOCUMENTS

161.16.

MISSION ESSENTIAL SERVICES

17SECTION II: SERVICE SUMMARY

172.1.

SERVICE SUMMARY REQUIREMENTS:

182.2.

CONTRACTOR PERFORMANCE EVALUATION:

19SECTION III: GOVERNMENT PROPERTY

20APPENDIX 1

20A1.1

ACRONYMS

22APPENDIX 2

22A2.1

NOTES

23APPENDIX 3

23A3.1

PRODUCT VERIFICATION AUDIT PROCEDURES

23A3.2

TERMS EXPLAINED

24A3.3

RESPONSIBILITIES

24A3.4

AUDIT PROCEDURES

27A3.5

AUDIT RESULTS

SECTION I: DESCRIPTION OF SERVICES

This PWS establishes the minimum work requirements to return of F100 No. 1, No. 2, No. 3, and No.4 Mainshaft Bearings listed below by National Stock Number (NSN) and Part Number (P/N) to a serviceable condition. F100No. 1, No. 2, No. 3, and No.4 Mainshaft Bearings received by the contractor, as set forth in this contract shall be overhauled, modified, tested, prepared for storage and shipped in accordance with (IAW) the requirements in this PWS and the contract.

4000452

4057331

4000352

4056350

4035421

4048700

4056777

4058452

4065349

4059297

4059298

4059299

4061007

4018466

4018467

4082584

4060870

4061549

Contractor employees shall identify themselves as contractor personnel by introducing themselves or being introduced as contractor personnel and displaying distinguishing badges or other visible identification for meetings with Government personnel. In addition, contractor personnel shall appropriately identify themselves as contractor employees in telephone conversations and in formal and informal correspondence.

1.1. DATA

1.1.1. Reporting Requirements

1. Product Quality Deficiency Report (PQDR – SF 368): The contractor shall prepare a PQDR on all design and quality control (material) deficiencies found IAW the procedures of TO 00-35D-54. Applicable portions of TO 00-35D-54 relative to quality defects will apply. The contractor shall hold exhibits of reported deficient items pending disposition from the ACO representative. Report preparation, distribution, holding and tagging of exhibits shall be IAW TO 00-35D-54. The contractor shall furnish an information copy of the SF 368 to USAF F100 Engineering Source Authority listed in TO 2J-F100-13-1 and TO 2J-F100-53-1, WP 600 00.

1. TO System Publication Improvement Report (AFTO Form 22): The contractor shall prepare a PIR when an error or improvement changes the meaning of the instructions or information contained in technical directives and will prevent the adequate performance intended. The contractor shall accomplish a PIR IAW TO 00-5-1 and submit one copy to AFLCMC/LPSAAA. Minor discrepancies of non-technical nature such as improper sequence of pages, typographical errors, transportation errors, misspelled words, etc, shall not be reported. The contractor shall report omissions of pertinent technical data, correction of overhauls procedures in TO’s, or desired changes to TO data shall likewise use the AFTO Form 22.

1. Teardown Deficiency Report (TDR): A TDR shall be accomplished on any PQDR exhibit received for investigation. The report shall be completed IAW the procedures established on DD Form 1423 as set forth in the contract.

1.1.2. Other Records, Forms and Reports

1.1.2.1. The contractor shall make available to the appropriate ACO representative the required information to enable him to review and/or verify monthly production status reports on end items and to enable him to complete his records or to complete such other reports as may be required.

1.1.2.2. CAV AF End Item Production Report (End Item Activity Report): The report shall be completed IAW the procedures established on DD Form 1423, as set forth in the contract and the Appendix B.

1.1.2.3. CEMS Reporting: The status of all serialized life limited parts must be known at all times. This status is to be reported to CEMS IAW T.O. 00-25-254-1 as required by DD Form 1423. Any questions regarding the reporting requirements are to be directed through the ACO.

1.1.2.4. Completed DD Form 1574 Serviceable Tags are required IAW MIL-STD-129R, paragraph 5.2.21.a.

1.1.2.5. The contractor shall report ALL contractor labor hours (including subcontractor labor hours) required for performance of service

1.1.2.5.1. Reporting inputs will be for the labor executed during the period of performance for each Government fiscal year (FY), which runs 1 October through 30 September. While inputs maybe reported anytime during the FY, all data shall be reported no later than 31 October of each calendar. Contractor may direct questions to the CMRA help desk. Information from the secure site is considered to be proprietary in nature when the direct labor hours and direct dollar hours. At no time will any data be released to the public with the contractor name and number associated with the data.

1.1.3. Technical Data

1.1.3.1. TOs listed in this specification are the basic directives to be used in accomplishing the overhaul requirements of the contract.

1.1.3.2. TO illustrated parts breakdowns (IPBs) listed in this PWS shall be used in the part replacement requirements of the contract. Replacement parts shall conform to the configurations stipulated in the applicable TO IPB as supplemented by other applicable directives and instructions in this PWS. Part replacement shall be confined to those parts determined to be required to produce a Zero Time Bearing or beyond economical overhaul unless otherwise specified.

1.1.3.3. Directives listed in paragraphs 1.11, 1.12, 1.13, 1.14, and 1.15 and instructions provided throughout this PWS should be adhered to obtain the highest possible quality of workmanship and to maintain acceptable quality standards.

1.1.3.4. Instructions listed in this PWS as “Changes” or “Revisions” to a TO represent publication changes to the Technical Order System and shall be complied with. The sub-paragraphs contain the location of changes as designated and the deletion, change or addition of technical information to be accomplished.

1.1.3.5. In the event of a conflict between the instructions in this PWS and the applicable technical directive, the following order of override precedence applies (descending order): 1) this PWS, 2) the end item TO, 3) other technical directives.

1.2. SECURITY

1.2.1. Contractor’s Security Controls: Equipment and materials covered by this PWS are not classified.

1.3. QUALITY

No defective parts shall be delivered to the Government.

1.3.1 The contractor shall provide and utilize an inspection & quality system IAW ISO 9001. The contractor shall investigate, take corrective action if necessary, and reply to user initiated PQDR forwarded to them by the ACO. This applies to all PQDRs submitted against products overhauled by the contractor and/or their subcontractor or vendors. Sufficient priority shall be given to PQDR investigation to allow timely corrective action and to meet requirements of TO 00-35D-54.

1.4. DELIVERY SCHEDULES

1.4.1. The delivery schedules shall be IAW the contract delivery schedules.

1.4.2. The contract shall meet the delivery schedule

1.5. CONDEMNATION and OVERHAUL

1.5.1. Contractor’s Scrap Procedures: The contractor shall prepare and submit to the Government Property Administrator (GPA) for approval, a written plan that sets forth procedures for handling scrap materials. These procedures shall include the requirements stipulated in the Federal Acquisition Regulation (FAR) 45.1, titled “General”. Disposition of condemned parts containing critical alloys and/or precious metals shall by IAW TO 00-25-113, 00-25-113-F100-ENG and FAR 45.6 titled “Reporting, Reutilization, and Disposal”.

1.5.2. Condemnation: The contractor without written approval of the ACO or his representative shall not condemn End Items.

1.5.2.1. End Items determined by the contractor and verified by the ACO to be beyond economical overhaul shall be disposed of as directed by the ACO in writing.

1.5.2.2. Parts, which have been condemned as a result of NDI methods, other inspection methods, or for other reasons, shall be mutilated to the extent necessary to ensure that purchasers of scrap are unable to overhaul the item for possible resale or reuse. All documents and tags pertinent to such condemned parts authorized for transfer to disposal shall bear a certificate to the effect that all required mutilation has been accomplished.

1.5.2.3. The serial number and part number of any life-limited item, which is condemned, must be transmitted to F100 Engineering Source Authority listed in TO 2J-F100-13-1 and TO 2J-F100-53-1, WP 600 00.

1.5.2.4. Overhaul: End Items determined to be beyond economical overhaul shall not be overhauled by the contractor unless authorized in writing by the ACO.

1.6. HANDLING

1.6.1. The contractor shall have physical custody of end items and parts received at their facility and shall be responsible for their constant care during such custody.

1.6.1.1. The receipt and status of all serialized components or accessories, which are tracked in CEMS, must be reported IAW Para 1.1.2.3 of the PWS.

1.7. INVENTORY

1.7.1. Each end item shall be inspected by the contractor upon receipt to determine its condition and to ensure that its item identification corresponds to that shown on the contract schedule. Non-conforming end items shall be reported to the appropriate ACO representative.

1.8. PRESERVATION

1.8.1. Preservation inspection of end items is not required upon receipt. Adequacy of preservation will be determined when the item is placed in work and if found deficient shall be reported to the appropriate ACO representative.

1.8.2. All Government assets shall be stored in an enclosed and covered area and shall be adequately protected against loss by fire, theft, and physical damage by the elements. Government owned items and parts shall not be co-mingled with non-Government owned property.

1.9. RECEIPT/HANDLING OF PQDR EXHIBITS

1.9.1. Any exhibit received for the purpose of an investigation into the cause of a material or a quality deficiency shall be kept separated from normal overhaul assets until the investigation is completed. The contractor shall provide the exhibit receipt date through the ACO with the F100 Engineering Source Authority listed in TO 2J-F100-13-1 and TO 2J-F100-53-1, WP 600 00.

1.10. SAFETY & HEALTH

1.10.1. While performing work under this contract the contractor shall comply with all applicable federal, state and local regulations regarding occupational safety and health. The contractor shall notify the Government Representative (GR), within eight (8) hours of any damage to government property where the dollar value exceeds $500,000.00 and within two workdays, for any damage to government property less than $500,000.00 during the execution of the contract.

1.10.1.1. Mishap notification shall contain, as a minimum, the following information:

1.10.1.1.1. Contract, contract number, Name and Title of Person(s) Reporting

1.10.1.1.2. Date, Time and exact location of accident/incident

1.10.1.1.3. Brief Narrative of accident/incident (Events leading to accident/incident)

1.10.1.1.4. Cause of accident/incident, if known

1.10.1.1.5. Estimated cost of accident/incident (material and labor to replace/repair)

1.10.1.1.6. Nomenclature of equipment and personnel involved in accident/incident

1.10.1.1.7. Corrective actions (taken or proposed)

1.10.1.1.8. Other pertinent information

1.10.1.2 If requested by the designated GR, the contractor shall immediately secure the mishap scene/damaged property and impound pertinent maintenance and training records, until released by the Procuring Safety Office.

1.11. GENERAL WORK REQUIREMENTS

1. The instructions for the overhaul of items stipulated in this PWS shall be performed IAW the applicable T.O.’s and applicable salvage layout (SL) drawings.

1. The contractor shall use protective equipment to protect items from damage as they are processed through the plant. Special protection shall be placed over the machined surfaces of end items.

1. The contractor shall inspect the various disassembled components or part of the end item to determine if further overhaul is needed. Subsequent overhaul shall be accomplished IAW the applicable portion of the applicable technical order and supplementary instructions specified herein.

1. The contractor shall rework all reparable parts so that they are capable of meeting the serviceable requirements of this PWS.

1. The contractor shall continue to use all parts and assemblies determined serviceable and appropriate as a result of inspections and checks, except as specified in this PWS.

1. The contractor shall replace condemned parts of the end item with like serviceable parts listed in the applicable technical order IPB unless otherwise specified in or within this PWS.

1. When overhaul kits are available for the overhaul of an end item, such kits shall be used IAW the applicable technical order and changes thereto or the specific instructions contained in this PWS.

1. Where the contractor is directed to hold an item for AFLCMC disposition by any cited publication herein or be any statement made within this PWS, such items shall be reported to the ACO through the GPA for disposition.

1. Overhaul, to the maximum extent, is desired when such overhaul is economically feasible. The contractor is encouraged to submit new or improved overhaul procedures to the Government whenever practical. Procedures may be submitted on an AFTO Form 22 as specified in this PWS or by any other means authorized under this contract. This does not preclude the contractor’s submission of overhaul procedures, which are not economically feasible, when such overhauls are advantageous to the Government.

1. All of the contractor’s operators of special processes, such as X-ray, radiography machines, Fluorescent Penetrate and Magnetic Particle Inspection Equipment, as well as welders and moralizers, shall be qualified and certified for operation IAW applicable military specifications when listed in the PWS.

1. Fit and tolerance limits shall be IAW applicable overhaul TO/contractor’s processes and procedures unless otherwise specified.

1. Fluids, oil, greases and compounds shall conform to and be used as directed in the overhaul TO and instructions contained in this PWS.

1.12. SPECIFIC WORK REQUIREMENTS

1.12.1. REMOVAL

1.12.1.1. N/A

1.12.2. DISASSEMBLY

1.12.2.1. Disassemble F100 No. 1, No. 2, No 3, and No.4 Mainshaft Bearings to the extent necessary to accomplish thorough internal cleaning and complete inspection of all parts and to accomplish the work IAW TO 2J-F100-13-6 WP 304 00, 2J-F100-53-6 WP 012 00, 2J-F100-13-7, WP 201 00 or 2J-F100-53-7, WP 201 00; TO 2-1-111, and applicable salvage layout (SL) drawing

1.12.3. CLEANING

1.12.3.1. F100 No. 1, No. 2, No 3 and No. 4 Mainshaft Bearings shall be cleaned IAW 2J-F100-13-6 WP 201 00, 2J-F100-53-6 WP 304 00, 2J-F100-13-7, WP 201 00 or 2J-F100-53-7, WP 201 00; and TO 2-1-111.

1.12.3.2. The contractor shall ensure that cleaning and preserving materials meet the requirements specified in TO 2J-F100-13-1 or 2J-F100-53-1, TO 2J-F100-13-2 or 2J-F100-53-2, and TO 2-1-111 and that such materials are properly used during application.

1.12.4. INSPECTION

1.12.4.1. Inspection of F100 No. 1, No. 2, No 3 and No. 4 Mainshaft Bearings shall be accomplished IAW TO 2J-F100-13-6, 2J-F100-53-6, 2J-F100-13-7 or 2J-F100-53-7 and the latest revision of applicable SL drawing.

1.12.4.2. Continue to use all parts and assemblies determined serviceable as the result of inspection and check, except those replaced 100% per applicable SL drawing.

1.12.5. CORROSION CONTROL

1.12.5.1. The corrosion control of F100 No. 1, No. 2, No 3 and No. 4 Mainshaft Bearings during overhaul and storage shall be accomplished IAW TO 2-1-111.

1.12.6. MODIFICATION & OVERHAUL

1.12.6.1. Overhaul of F100 No. 1, No. 2, No 3 and No. 4 Mainshaft Bearings shall be accomplished IAW TO 2J-F100-13-6, 2J-F100-53-6, 2J-F100-13-7 or 2J-F100-53-7, the latest revision of applicable SL drawing, and P&W approved vendor process sheets.

1.12.6.2. The contractor shall identify all overhauled F100 No. 1, No. 2, No. 3 and No. 4 Mainshaft Bearings with the contractor’s CAGE IAW MIL-STD-130 and per applicable SL drawing.

1.12.7. FINISHING

1.12.7.1. Finishing of F100 No. 1, No. 2, No. 3 and No. 4 Mainshaft Bearings will be accomplished only to the extent required to zero time each bearing, unless otherwise specified in this appendix. The following requirements must be complied.

SL drawing.

SL drawing.

Refer to paragraph 1.1.2.2 of this PWS.

1.12.8. TEST AND GOVERNMENT ACCEPTANCE

1.12.8.1. Inspect, test and check each overhaul item IAW TO 2-1-111.

1.12.8.2. The Government shall accomplish acceptance.

1.12.9. PRODUCT VERIFICATION AUDIT (PVA)

1.12.9.1. Overhauled items shall be subject to PVA if requested by the government.

1.12.9.2. To perform PVA, the government shall be permitted to select at random such quantities of items as may be necessary to determine quality of workmanship and materials.

1.12.9.3. After notification by the ACO that a PVA is required, the contractor will follow the procedures of Appendix 3 - Product Verification Audit Procedures.

1.12.10. TECHNICAL PUBLICATION COMPLIANCE

1.12.10.1. Compliance with all TO’s, Directives, Government Specifications, Drawings, etc., listed herein is mandatory, unless otherwise specified in this PWS, when:

1.12.10.2. For solicitation purposes, the contractor may contact USAF F100 Engineering Source Authority listed in TO 2J-F100-13-1, and TO 2J-F100-53-1 WP 600 00, for Instructions for viewing or purchasing technical data required for maintenance of this contract. Upon contract award, the contractor shall establish and maintain a TO distribution account IAW TO 00-5-1; and be placed on initial distribution for one copy each of the TOs and TCTOs listed in this PWS. The contractor shall contact 536 ACSS/GFEA-TOMA, 405-734-8693 within five (5) working days after contract award for guidance in obtaining a TODO account. Once the contractor’s TODO account is in operation, the contractor shall maintain all TOs and TCTOs and other technical directives listed in the PWS in an updated and current status IAW TO 00-5-1. The contractor is required to comply with the latest dated TO; TCTO and other technical directives issued and will be contractually covered during the time the work is accomplished. For example, an item already in work will continue to be worked under the existing contractual scope of work until such time that the latest TO revisions can be negotiated as to price and scheduled incorporation. The contractor shall submit a monthly review of changes to TOs, TCTOs, and other applicable directives received during that period. However, if a change is received that has a cost impact greater then 10% and/or is critical to safety of flight, the contractor shall notify the ACO within ten (10) days of receipt of that change and also shall provide the cost impact with his backup data. The contractor shall not begin working with new publication until authorization has been granted by the ACO/PCO.

1.12.10.3. Copies of other Air Force publications required in the performance of work outlined in this PWS will be requisitioned through the ACO. Submit requests to appropriate ACO representative for review. TO 00-5-1 are provided in explanation of the Technical Order System and for pertinent distribution, requisition and storage information.

1.12.10.4. In the event follow-on to this contract is awarded, the “Package File” at the contract facility as of the end of the previous contract will be applicable to the follow-on contract and will be updated through amendments to the new PWS of the new contract. This procedure will ensure continuity of the publication data from one contract to another.

1.13. APPLICABLE TECHNICAL ORDERS

This is a preliminary list of Technical Orders. The contractor is responsible for ensuring they are using the latest edition.

AF TECH ORDER SYSTEM

TIME COMPLIANCE TECH ORDER SYSTEM

PREV MAINT PROG

MAINT DATA COLLECTION SYS

SYS MANUAL COMPREHENSIVE ENGINE MGT. SYS. (CEMS)

MATERIAL DEF REPORT & INVEST SYSTEM

NONDESTRUCTIVE INSP. METHODS

1.14. APPLICABLE DIRECTIVES

MIL-STD-129R

INTERNATIONAL ORGANIZATION FOR STANDARDIZATION (ISO)

PPLICABLE DOCUMENTS

1.14.1. LPF-QAR-001: “GENERAL QUALITY ASSURANCE DOCUMENTS FOR F100 ENGINE FC/DC BREAKOUT COMPONENTS”

1.14.2. LPF-QAR-002: “CHANGE PROCEDURES FOR PROCESS ORDERS”

1.14.3. LPF-QAR-004: “LPFR QUALITY ASSURANCE REQUIREMENTS FOR F100 ENGINE COMPONENTS”

1.14.4. LPF-QAR-006: “LPFR QUALITY ASSURANCE REQUIREMENTS FOR PRODUCT VERIFICATION AUDIT (PVA) TEST PLANS AND REPORTS

1.14.5. LPF-QPR-016: “LPFR QUALITY PLAN REQUIREMENTS FOR DURABILITY CRITICAL PARTS

1.14.6. LPF-QPR-018: “LPFR QUALITY PLAN REQUIREMENTS FOR NONDESTRUCTIVE INSPECTION”

1.14.7. LPF-QR-001: “BASIC TECHNICAL DATA REQUIREMENTS FOR FRACTURE CRITICAL AND DURABILITY CRITICAL PARTS”

1.14.8. LPF-QR-002: “CONDITIONS OF WAIVER FOR FRACTURE CRITICAL AND DURABILITY CRITICAL PARTS”

1.14.9. EI FOR RQR-1: “GENERIC ENGINEERING INSTRUCTIONS FOR OVERHAUL OF F100 PARTS IN RQR-1

MISSION ESSENTIAL SERVICES

The contractor shall prepare for the continuation of essential DoD services during crisis IAW Defense Federal Acquisition Regulation (DFAR) 252.237-7023. In a state of emergency, if the Government deems necessary, the contractor shall provide all services necessary to ensure mission accomplishment. On occasion, services may be required to support an activation, or exercise of contingency plans outside normal duty hours. IAW DFARS 252.237-7023, the contractor shall develop a contingency plan and furnish a copy to the PCO for those tasks identified as essential to provide reasonable assurance of continuation during crisis conditions.

SECTION II: SERVICE SUMMARY

The contractor service requirements are summarized into performance objectives that relate directly to the mission essential items. The performance threshold describes the minimum acceptable levels of service for each requirement. The contractor shall be aware that the absence contract requirement from the service summary does not detract from its enforceability nor limit the rights or remedies of the government under any other provision of the contract. The government will use the surveillance methods contained in the Surveillance Plan to evaluate the Contractor’s performance for the performance objectives listed below. In the event the performance objective is not met, the Contractor will be given a reasonable time after notification to correct the unacceptable performance, if such correction is possible. The Contractor shall immediately take corrective action in accordance with the performance threshold(s). In cases where the Contractor fails to implement corrective action, the PCO will take appropriate measures.

NOTE: For those requirements listed in Section II, Service Summary, the Surveillance Plan will follow the methods of surveillance specified in the Surveillance Plan. The Surveillance Plan is authorization for the Government’s PCO to participate in the administration of this contract.

1.15. SERVICE SUMMARY REQUIREMENTS:

The contractor shall ensure the performance objectives and performance thresholds identified in table 2-1 of this PWS is achieved as follows:

No defective parts shall be delivered to the Government.

The delivery schedules shall be IAW the contract delivery schedules

1.16. CONTRACTOR PERFORMANCE EVALUATION:

1.16.1. The contractor shall be aware that the evaluation of performance will occur when the Program Manager evaluates the services of the contractor to determine whether or not it meets the performance measures of the contract.

1.16.1.1. SS-1: The contractor’s failure to meet the requirements for this item shall result in the possibility of a poor rating under the Contractor Performance Assessment Review (CPAR) and remedies as allowed under Federal Acquisition Regulation (FAR) 52.246-4 Inspection of Services-Fixed Price.

1.16.1.2. SS-2: The contractor’s failure to meet this requirement shall result in a negative CPAR rating and remedies as allowed under FAR 52.246-4 Inspection of Services-Fixed Price.

SECTION III: GOVERNMENT PROPERTY

3.1

GOVERNMENT PROPERTY

3.1.1 Contractor shall furnish all material, support equipment, tools, test equipment and services. Government Furnish Material shall not be provided.

NOTE: For those requirements listed in Section II, Service Summary, the Surveillance Plan will follow the methods of surveillance specified in the Surveillance Plan. The Surveillance Plan is authorization for the Government’s PCO to participate in the administration of this contract.

APPENDIX 1

1.1 ACRONYMS

ACO

Administrative Contracting Officer

CAGE

Contractor and Government Entity

CEMS

Comprehensive Engine Management System

FAR

Federal Acquisition Regulation

GFM

Government Furnished Material

GPA

Government Property Administrator

IAW

In Accordance With

PCO

Procurement Contracting Officer

PQDR

Product Quality Deficiency Report

QCD

Quality Control Deficiency

APPENDIX 2

A2.1 NOTES

The contractor must use OEM approved sources for special/major processes, including magnetic particle inspection (MPI), eddy current inspection, silver plating, and fluorescent penetrant inspection (FPI).

APPENDIX 3

A3.1 PRODUCT VERIFICATION AUDIT PROCEDURES

A3.1.1 This attachment contains procedures and instructions for contractual accomplishment of Product Verification Audits (PVAs). This attachment does not supersede instructions contained in the contract overhaul work requirements or other contractual provisions. In instances of conflict, the latter applies. The contractual issuance of this attachment and performance of PVAs does not relieve the contractor of the responsibility for maintaining a Quality Control System that will assure productions of items that conform to contractual requirements. PVAs are management tools used to independently evaluate and validate the conformance of an overhauled item and contractor compliance to contractual requirements as well as the adequacy of the Government's contractually stipulated requirements.

A3.2 TERMS EXPLAINED

A3.2.1 PVA. The physical examination, functional testing and complete disassembly of an item to determine conformance to contractual requirements as well as adequacy of the contractual requirements which may require in excess of the original contractor overhaul effort. The audit includes correction of defects, reassembly, retesting, repackaging, remarking, update of records and correction of contractual requirements as required.

A3.2.2 Cognizant Quality Assurance Element. The DOD contract administration service element having direct responsibility for implementing the Government Quality Assurance Program at the contractor's plant.

A3.2.3 Overhaul Work Requirement. Any contract instrument, TO, drawing, specification or directive which contains instructions and requirements for overhaul and rehabilitation of a reparable/unserviceable item.

A3.2.4 Procedural Deficiency. A deficiency which is noted during the audit and which results from either:

A3.2.4.1 Failure by contractor to establish processes/procedures in conformity with contractual requirements; or, A3.2.4.2 Failure by contractor to follow established processes or procedures.

A3.3 RESPONSIBILITIES

A3.3.1 The contractor shall:

A3.3.1.1 Perform audit functions under the surveillance of the cognizant DoD CAO and Air Logistics Center (ALC) representative(s).

A3.3.1.2 Provide technical personnel, tooling, measuring/test equipment, work areas, forms and clerical assistance, as required, to perform the PVA.

A3.3.2 The cognizant DOD QAR shall:

A3.3.2.1 Be designated as audit team chairman, unless otherwise directed by the Procuring Contracting Officer (PCO).

A3.3.2.2 Schedule the product verification audit and select the item(s) to be audited.

A3.3.2.3 Notify the PCO and the contractor when the PVA will begin. Notification shall be provided at least 15 working days prior to the audit date. Scheduled audits may be waived by the PCO on a case-by-case basis.

A3.4 AUDIT PROCEDURES

A3.4.1 Classifying Defects. Defects observed in the audited item(s) will be classified according to the following:

A3.4.1.1 Category I - Critical Defect. Defect that judgment and experience indicates likely to result in hazardous/unsafe conditions for individuals using, maintaining or depending upon the product; or a defect that judgment and experience indicates is likely to prevent performance of the tactical function of a major end item such as an aircraft, engine communication system, surveillance system or major part thereof. Critical defects are furthered identified as follows:

A3.4.1.1.1 Category IA - Defect attributable to the contractor's failure to comply with contractual requirements.

A3.4.1.1.2 Category IB - Defect not attributable to contractor's failure to comply with contractual requirements such as a design deficiency, inadequate or omitted requirement or defective Government Furnished Property (GFP).

A3.4.1.2 Category II - Major Defect. Defect other than critical that is likely to result in failure or reduce materially the usability of unit or product for its intended purpose. Major defects are further identified as follows:

A3.4.1.2.1 Category IIA - Defect attributable to the contractor's failure to comply with contractual requirements.

A3.4.1.2.2 Category IIB - Defect not attributable to contractor's failure to comply with contractual requirements such as a design deficiency, inadequate or omitted requirements or defective GFP.

A3.4.1.3 Category III - Minor Defect. Defect that is not likely to reduce materially the usability of the unit or product for its intended purposes or is a departure from established standards having little bearing on the effective use or operation of the unit. Minor defects are further identified as follows:

A3.4.1.3.1 Category IIIA - Defect attributable to the contractor's failure to comply with contractual requirements.

A3.4.1.3.2 Category IIIB - Defect not attributable to the contractor.

A3.4.1.4 Category IV - Defect caused during accomplishment of the audit disassembly or inspection process which would not have occurred had the contractor exercised proper care of the audit item, i.e., improper handling, improper disassembly technique.

A3.4.1.5 Procedural Defect - Reference paragraph 2d.

A3.4.2 Scheduling/Frequency

A3.4.2.1 During the initial production phase, one of the first five items may be audited. The frequency for performing subsequent audits will be as specified in the schedule of the contract or by the PCO.

A3.4.2.2 The contractor may be directed by the PCO to extend or increase the frequency of the audits or to increase or decrease the scope thereof pursuant to the "changes" clause of the contract.

A3.4.2.3 Like or similar items may be grouped for audit purposes when the concurrence of the PCO or his designated representative has been obtained.

A3.4.3 Inspection and Test

A3.4.3.1 Audit candidates shall be randomly selected by the cognizant DOD QAR from all items currently available. It shall be the responsibility of the ACO to assure that an adequate number of items from which a random selection can be made are on hand at the time of the audit. Selection, except as specified in paragraph c (2) below, shall be made from items which have been accepted by the Government but have not been shipped.

A3.4.3.2 The first five items of the initial production phase shall be set aside after having been tendered by the contractor as in conformity with the contract and inspected by the Government and not rejected for failure to comply with contractual requirements. Upon completing the testing and disassembly portion of the audit of the selected candidate and if no Category I or II defects are found during the audit, the other four items will be accepted by the Government. In any Category I or II defect is found in the audit candidate, the contractor shall satisfy the Government that such defect does not exist in the other four items prior to Government acceptance thereof. The audit candidate shall be accepted by the Government upon compliance with paragraph 4d (6) below.

A3.4.3.3 The items selected for audit shall be inspected for adherence to preservation, packing, packaging and marking requirements prior to removal from the shipping container. A visual inspection and functional test shall be performed prior to disassembly.

A3.4.3.4 Disassembly shall be performed in a secure area accessible only to audit participants. Normally, audit participation will be limited to specified contractor production and quality control personnel, the cognizant DOD QAR and ALC personnel.

A3.4.3.5 Visual inspection, dimensional checks (such as backlash, end clearance and running clearance) and non-destructive testing will be accomplished during and after disassembly IAW applicable technical directives. Audit findings will be recorded for comparison with contractual requirements and the contractor's production/inspection records. Measuring and test equipment shall be reviewed for current calibration prior to use.

A3.4.3.6 Applicable accessories and components will be functionally tested and inspected to contractual specifications. This action may require disassembly in excess of the original contractor effort as determined necessary by the Government.

A3.4.4 Corrective Actions

A3.4.4.1 In the event a critical or major defect is observed, Government acceptance of further production will be withheld until the Government has either inspected other items for the observed defect(s) or has received suitable evidence from the contractor that the cause of such defect(s) has been corrected and the defect does not exist in other items. In the case where there is a probability of such defect existing in previously shipped items, the contractor will promptly advise the Government of the identity and destination of such previously shipped items.

A3.4.4.2 When Category IA, IIA or IIIA defects are found, the contractor shall implement measures in the overhaul process which will preclude recurrence.

A3.4.4.3 When Category IB, IIB or IIIB defects are found, actions will be taken as directed by the Government pursuant to the contract.

A3.4.4.4 When Category IV defects are noted, the contractor shall take those actions necessary to preclude recurrence.

A3.4.4.5 When Procedural Deficiencies are noted, the contractor shall take those actions necessary to correct the procedures or operations concerned.

A3.4.4.6 Upon completion of the audit, all defects attributable to failure to comply with contractual requirements or attributable to the performance of the PVA shall be corrected. All noted defects shall be corrected and the item assembled and functionally tested IAW applicable overhaul specifications including preservation, packing, packaging, marking and update of records.

A3.4.4.7 After the audit is completed, the DOD QAR shall conduct a critique attended by contractor personnel and ALC representative(s). Findings, classifications and corrective actions shall be discussed and determination of defect cause(s) established (e.g. workmanship, tooling, technical requirements, etc.). The contractor shall take immediate action to correct and preclude recurrence of all defects or deficiencies attributable to failure to comply with contractual requirements, subject to the provisions of paragraph 5j below.

A3.5 AUDIT RESULTS

A3.5.1 The quality office of the CAO activity shall prepare and forward to the responsible PCO the finalized audit findings within 10 working days after completion of the audit. Finalized findings will contain the following information:

A3.5.1.1 Name and address of the contractor.

A3.5.1.2 Contract number.

A3.5.1.3 Descriptive noun, Federal Stock Number, part number and serial number of the item audited.

A3.5.1.4 Summary of total defects.

A3.5.1.4.1 Category IA

A3.5.1.4.2 Category IB

A3.5.1.4.3 Category IIA

A3.5.1.4.4 Category IIB

A3.5.1.4.5 Category IIIA

A3.5.1.4.6 Category IIIB

A3.5.1.4.7 Category IV

A3.5.1.5 A complete listing of audit findings.

A3.5.1.6 A description of defects listed by category (commencing with critical). The defective item will be identified by part number and standard nomenclature.

A3.5.1.7 Cause(s) for each noted defect.

A3.5.1.8 Corrective action(s) taken on each classified defect attributable to failure to comply with contractual requirements, or a projected target date for completion when not otherwise immediately corrected.

A3.5.1.9 Procedural deficiencies noted and the corrective actions applied.

A3.5.1.10 The signature of the DOD QA participants, contractor management personnel and ALC representative(s). Non-concurrence with the findings shall be specifically annotated in the vicinity of the applicable signatures. Non-concurrence by the contractor as to the existence or classification of a defect or as to whether or not a defect is attributable to failure to comply with contractual requirements shall be subject to the procedures set forth in the clause entitled "Dispute."

FD2030-15-00216

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