Attach_10_SOW_Appendix_A.pdf

STATEMENT OF WORK (SOW)

For

F100-PW-229 Combustion Chamber

PR # FD2030-17-01408

REV. 0

DATE: 2/9/17

PREPARING ORGANIZATION:

AFLCMC/LPE

TINKER AFB OK 73145-3030

FD2030-17-01408 Page 2 of 21

TABLE OF CONTENTS Page

TABLE OF CONTENTS

SECTION I

SCOPE

SECTION II

APPLICABLE

DOCUMENTS

SECTION III

WORK

REQUIREMENTS

APPENDIX 1

ACRONYMS

APPENDIX 2

NOTES

APPENDIX 3

PRODUCT VERIFICATION AUDIT PROCEDURES

FD2030-17-01408 Page 3 of 21

SECTION I

SCOPE

1.0 GENERAL

This Statement of Work (SOW) establishes the minimum work requirements to return F100-PW-

229 Combustion Chamber listed below by National Stock Number (NSN) and Part Number (P/N) to a serviceable, like new condition. F100-PW-229 Combustion Chambers received by the contractor, as set forth in this contract shall be remanufactured, modified, tested, prepared for storage and shipped in accordance with (IAW) the requirements in this SOW and the contract.

NOUN PART NUMBER NSN APPLICABLE T.O.

Combustion Chamber 4083194 2840-01-448-6990NZ 2J-F100-53-7

Combustion Chamber 4086420-01 2840-01-448-6990NZ 2J-F100-53-7

1.1 DATA

1.1.1 Reporting Requirements

1.1.1.1 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 written correspondence.

1.1.1.2 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-F100-53-1, WP 600 00.

1.1.1.3 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/ENR. 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 remanufacture procedures in TOs, or desired changes to TO data shall likewise use the AFTO Form 22.

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1.1.1.4 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 other such 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 2.

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 TO 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.

1.1.3 Technical Data

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

1.1.3.2 TO illustrated parts breakdowns (IPBs) listed in this SOW 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 SOW. Part replacement shall be confined to those parts determined to be required to produce a zero time serviceable end item.

1.1.3.3 Instructions listed in this SOW 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.

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

FD2030-17-01408 Page 5 of 21

1.2 SECURITY

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

1.3 QUALITY

1.3.1 The contractor shall provide and utilize an inspection/quality system IAW ISO – 9001 along with a quality plan crafted specifically for parts listed in section 1.0 of this SOW.

1.3.2 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 remanufactured by the contractor and/or their subcontractor or vendors.

Priority shall be given to PQDR investigation to meet requirements of TO 00-35D-54 and the CDRL.

1.4 DELIVERY SCHEDULES

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

1.5 CONDEMNATION AND REMANUFACTURE

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 be 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 shall not condemn End Items without written approval of the ACO or his representative.

1.5.2.1 End Items determined by the contractor and verified by the ACO to be beyond economical remanufacture 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 remanufacture the item or indentured parts 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 and meet DEMIL directive requirements.

FD2030-17-01408 Page 6 of 21

1.5.2.3 The serial number and part number of any life-limited item, which is condemned, must be condemned IAW CEMS CDRL.

1.5.3 Remanufacture: End Items determined to be beyond economical remanufacture shall not be remanufactured 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 1.1.2.2 of the SOW and CDRL.

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 remanufacture 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-F100-53-1, WP

600 00.

1.10 SAFETY AND HEALTH

FD2030-17-01408 Page 7 of 21

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 during the execution of the contract.

1.10.1.1 Mishap notifications 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, if known

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 repair/replace)

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 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.

FD2030-17-01408 Page 8 of 21

SECTION II

APPLICABLE DOCUMENTS

2.1 Technical Publication Compliance

2.1.1 Compliance with all TOs, Directives, Government Specifications, Drawings, etc., listed herein is mandatory, unless otherwise specified in this SOW, when:

2.1.1.1 They have not been previously accomplished

2.1.1.2 They are pertinent to the end item.

2.1.1.3 They prescribe Air Force Policies, use of materials and procedures for remanufacture.

2.1 For solicitation purposes, the contractor may contact USAF F100 Engineering Source

Authority 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 SOW. The contractor shall contact the TOMA office at AFLCMC/LPSAA.TOMA@us.af.mil 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 SOW 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 than 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 within 30 days of receipt of the change. If evaluation of the cost impact will require more than 30 days, the contractor shall request an exception from the ACO/PCO. These exceptions will be handled on a case by case basis. The contractor shall not begin working with new publication until authorization has been granted by the ACO/PCO.

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

FD2030-17-01408 Page 9 of 21

2.1.2 In the event a 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 SOW of the new contract. This procedure will ensure continuity of the publication data from one contract to another.

2.2 APPLICABLE TECHNICAL ORDERS

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

TECH ORDER BASIC CG CHANGE

NUMBER DATE NO DATE SHORT TITLE

00-5-1 14 JUNE 16 0 14 JUNE 16 AF TECH ORDER SYSTEM

00-5-15 22 SEPT 14 1 11 JULY 16 TIME COMPLIANCE TECH

ORDER SYSTEM

00-20-1 11 JULY 16 0 11 JULY 16 PREV MAINT PROG

00-20-2 15 MAR 16 0 15 MAR 16 MAINT DATA COLLECTION SYS

00-20-3 15 AUG 15 0 15 AUG 15 MAINT PROC OF REPARABLE

PROP

00-25-113 30 APR 95 CRITICAL ALLOY AND

PRECIOUS METAL

00-25-113-F100-

ENG

1 FEB 07 50 15 DEC 14 CRITICAL ALLOY AND

PRECIOUS METAL

00-35D-54 1 SEPT 15 0 1 SEPT 15 MATERIAL DEF REPORT &

INVEST SYSTEM

33B-1-1 15 JUN 07 0 15 OCT 16 NONDESTRUCTIVE INSP.

METHODS

2-1-111 15 FEB 90 66 15 DEC 16 STAND MAINT PROCEDURES

2J-F100-9 1 NOV 95 60 15 SEPT 16 NONDESTRUCTIVE INSPECTION

2J-F100-94 1 MAY 92 59 15 SEPT 16 IPB SUPPORT

EQUIPMENT

2J-F100- 53-1 15 FEB 07 12 1 SEPT 16 MAINT INSTR-DEPOT

2J-F100- 53-2 15 FEB 07 16 15 DEC 16 MAINT INSTR – DEPOT OCM

2J-F100- 53-7 15 FEB 07 15 15 DEC 16 CORE MODULE

2J-F100- 54 15 APR 09 41 15 SEPT 16 IPB

FD2030-17-01408 Page 10 of 21

2.3 APPLICABLE DIRECTIVES

MILITARY STANDARDS CHANGE DATE TITLE

MIL-STD-129R

18 FEB 14 U.S. MILITARY MARKING FOR

SHIPMENT AND STORAGE

MIL-STD-130N 16 NOV 12 ID MARKING OF U.S. MILITARY

PROP.

INTERNATIONAL ORGANIZATION FOR STANDARDIZATION (ISO)

ISO - 9001 15 SEPT 15 QUALITY MANAGEMENT

SYSTEMS – REQUIREMENTS –

THIRD EDITION

FD2030-17-01408 Page 11 of 21

SECTION III

WORK REQUIREMENTS

3.1 GENERAL WORK REQUIREMENTS

3.1.1 The instructions for the remanufacture of items stipulated in this SOW shall be performed IAW the applicable TOs and the below exceptions.

3.1.1.1 The contractor is authorized to use its own tooling, which is similar to OEM

(Original Equipment Manufacturer) tooling.

3.1.1.2 The contractor is authorized to process and inspect per part drawing and part QAD (Quality Assurance Document). If the part has been re-identified and there is no QAD for the current part number, the part’s previously applicable QAD can be used.

3.1.1.3 The contractor is authorized to Service Repair (SR) SR 00QC074, SR

98QC333, SR 01QC063B, SR01NC367, Engineering Change (EC) EC

96QA097, and AFMC 252 #51MOCGBEARC5298R.

3.1.2 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.

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

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

3.1.5 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 SOW.

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

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3.1.7 When kits are available for the remanufacture of an end item, such kits shall be

IAW the applicable technical order and changes thereto or the specific instructions contained in this SOW.

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

3.1.9 Remanufacture, to the maximum extent, is desired when such remanufacture is economically feasible. The contractor is encouraged to submit new or improved remanufacture procedures to the Government whenever practical.

Procedures may be submitted on an AFTO Form 22 as specified in this SOW or by any other means authorized under this contract. This does not preclude the contractor’s submission of remanufacture procedures, which are not economically feasible, when such remanufactures are advantageous to the

Government.

3.1.10 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 moralizers, PMEL, etc., shall be qualified and certified for operation IAW applicable military specifications when listed in the

SOW.

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

3.1.12 Fluids, oil, greases and compounds shall conform to and be used as directed in the remanufacture TO and instructions contained in this SOW.

3.2 SPECIFIC WORK REQUIREMENTS

3.2.1 Removal

3.2.1.1 Not Applicable.

3.2.2 Disassembly

3.2.2.1 Not Applicable.

3.2.3 Cleaning

3.2.3.1 F100-PW-229 Combustion Chamber shall be cleaned IAW TO 2J-F100-53-

7 WP 201.

3.2.3.2 The contractor shall ensure that cleaning and preserving materials meet the

FD2030-17-01408 Page 13 of 21 requirements specified in TO 2J-F100-53-1, TO 2J-F100-53-2 WP 005 , or

TO 2-1-111 and that such materials are properly used during application.

3.2.4 Inspection

3.2.4.1 Inspection of F100-PW-229 Combustion Chambers shall be accomplished

IAW 2J-F100-53-7 WP 388 00.

3.2.5 Corrosion Control

3.2.5.1 The corrosion control of F100-PW-229 Combustion Chambers during remanufacture and storage shall be accomplished IAW TO 2-1-111.

3.2.6 Remanufacture

3.2.6.1 Remanufacture of F100-PW-229 Combustion Chambers shall be accomplished IAW 2J-F100-53-7 WP 488 00.

3.2.6.2 The contractor shall identify all remanufactured F100-PW-229 Combustion

Chambers with the contractor’s CAGE IAW MIL-STD-130N.

3.2.7 Installation

3.2.7.1 Not applicable.

3.2.8 Test And Government Acceptance

3.2.8.1 Inspect, test and check each remanufactured item IAW TO 2-1-111.

3.2.8.2 The Government shall accomplish acceptance.

3.2.9 Product Verification Audit (PVA)

3.2.9.1 Remanufactured items shall be subject to PVA if requested by the government.

3.2.9.2 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.

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

Procedures.

FD2030-17-01408 Page 14 of 21

APPENDIX 1

A1.1 ACRONYMS

ACO Administrative Contracting Officer

AFMC Air Force Material Command

ALC Air Logistics Center

CAGE Contractor and Government Entity

CAO Contract Administration Office

CEMS Comprehensive Engine Management System

DOD Department of Defense

EC Engineering Change

ESA Engineering Source Authority

FAR Federal Acquisition Regulation

GFM Government Furnished Material

GFP Government Furnished Property

GPA Government Property Administrator

IAW In Accordance With

IPB Illustrated Parts Breakdown

MRB Material Review Board

NDI Nondestructive Inspection

OC-ALC Oklahoma City Air Logistics Center

OEM Original Equipment Manufacturer

PCO Procurement Contracting Officer

PIR Publication Improvement Report

PQDR Product Quality Deficiency Report

PVA Product Verification Audit

QAD Quality Assurance Document

QAR Quality Assurance Representative

QCD Quality Control Deficiency

SL: Salvage Layout

SR Service Repair

TO Technical Order

USAF United States Air Force

WP Work Package

FD2030-17-01408 Page 15 of 21

APPENDIX 2

A2.1 NOTES

A2.1.1 The contractor is authorized to establish and convene a Material Review Board (MRB) to evaluate and determine disposition on non-conforming material or parts. Board members shall consist of representatives from the Contractor’s Quality Production

Control, Engineering (Industrial, Product Support or Design) and the Government

QAR. The MRB shall be convened when the contractor identifies non-conformance of material or parts during and after assembly. The MRB is not authorized to violate any

TO limit. When MRB action is required on material or parts during and after assembly, the contractor shall provide information, to include part number, serial number and statement of non-conformance and corrective action taken, to AFLCMC/LPSA via email within (5) working days after approval of the MRB.

FD2030-17-01408 Page 16 of 21

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 remanufacture 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 a remanufactured 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 remanufacture 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 Remanufacture Work Requirement. Any contract instrument, TO, drawing, specification or directive which contains instructions and requirements for remanufacture 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:

FD2030-17-01408 Page 17 of 21

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 further 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

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.

FD2030-17-01408 Page 18 of 21

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

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 A3.2.4.

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 A3.4.3.2 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

FD2030-17-01408 Page 19 of 21 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 A3.4.4.6 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 remanufacture 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

FD2030-17-01408 Page 20 of 21 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 remanufacture 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 A3.5.1.10 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.

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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."