SOW.pdf

STATEMENT OF WORK

FOR

T-38 WING ASSEMBLY

January 2019

Prepared by:

416 SCMS/GUMBA

6071 Gum Lane Bldg.1223

Hill AFB, Utah

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Table of Contents ACRONYMS ................................................................................................................................ ii

1 PURPOSE AND SCOPE

1.1 Purpose

1.2 Scope

1.2.1 Baseline Technical Data Package (TDP)

1.2.2 Manufacturing Tooling and Process Development

1.2.3 Production Planning, Qualification, and Inspection

2 REQUIREMENTS

2.1 Program Management

2.1.1 Integrated Master Plan/Integrated Master Schedule

2.1.2 Subcontractor Management

2.1.3 Monthly Status Report

2.1.4 Meetings

2.2 General Production Tasks

2.2.1 Task #1: Digital Representations and Production Tooling

2.2.2 Task #2: Production Planning, Qualification, and Inspection

2.2.3 Task #3: -33 Wing Production

2.3 Environmental, Health, and Safety

2.3.1 Environmental Compliance

2.3.2 Hazardous Materials

2.3.3 Ozone Depleting Substances

2.3.4 Health and Safety

3 PERSONNEL QUALIFICATIONS

4 SPECIAL CONSIDERATIONS

4.1 Economic Price Adjustment (EPA)

4.2 Security

4.2.1 Release/Removal of Documentation

4.3 Supply/Support Requirements

4.3.1 Governmental Rights

4.3.2 Government Facilities

4.4 Travel Requirements

4.5 Preservation, Packaging & Marking Requirements

4.5.1 Preparation for Delivery

4.5.2 Hazardous Materials

4.5.3 Applicable Government Packaging Documents

5 REFERENCES AND APPLICABLE DOCUMENTS

ATTACHMENT A– Contract Data Requirements List(CDRL) ATTACHMENT B– CDRL Distribution List ATTACHMENT C– Critical Safety Item (CSI) List ATTACHMENT D– Interchangeability and Replaceability (I&R) List ATTACHMENT E– Analysis Requirements and Guidelines for Non-Conformance Conditions ATTACHMENT F– Master Tool List ii

ACRONYMS

ACO Administrative Contracting Officer AFMC Air Force Material Command AFOSH Air Force Occupational Safety & Health Standards AFTO Air Force Technical Order CDRL Contract Data Requirements List CFR Code of Federal Regulations CSI Critical Safety Item DCMA Defense Contract Management Agency DoD Department of Defense DTA Damage Tolerance Analysis EPA Environmental Protection Agency ESA Engineering Source Authority FAI First Article Inspection FAR Federal Acquisition Regulation FCF Functional Check Flight FPQP First Part Qualification Plan GFE Government Furnished Equipment GFM Government Furnished Material GFS Government Furnished Software HRI Human-Readable Information ICAO International Civil Aviation Organization IFF Introduction to Fighter Fundamentals I&R Interchangeable & Replaceable IMDG International Maritime Dangerous Goods IMP Integrated Master Plan IMS Integrated Master Schedule IUID Item Unique Identification MRB Material Review Board MSDS Material Safety Data Sheets ODS Ozone Depleting Substances OSHA Occupational, Safety, and Health Administration PCO Procuring Contracting Officer PMP Program Management Plan PMR Program Management Reviews POP Performance Oriented Packaging PQP Production Qualification Plan PRR Production Readiness Review SPI Special Packaging Instructions TDP Technical Data Package TIM Technical Interchange Meeting UN United Nations VOC Volatile Organic Compound

1 PURPOSE AND SCOPE

1.1 Purpose

This Statement of Work describes the requirements to produce T-38 Wing Assembly P/N 2- 23000-33, assemblies (hereafter referred to as “-33 Wing”). The requirement of this contract is to produce -33 Wings in accordance with the Technical Data Package (TDP) provided.

The -33 Wing is a one-piece structural unit and consists primarily of 7XXX aluminum components, which include an upper and lower skin, forged spars, and ribs. This is a non-fuel carrying wing and all flaps, ailerons, actuators, leading edges, wingtips, landing gear, and doors are not included with the manufacture of the -33 Wing.

1.2 Scope

1.2.1 Baseline Technical Data Package (TDP)

The -33 Wing TDP shall serve as the engineering baseline. The prime contractor shall produce the -33 Wing utilizing the existing TDP and master tooling for P/N 2-23000-33.

1.2.2 Manufacturing Tooling and Process Development

All tooling and processes must meet technical data requirements. Quality control processes are critical to meeting required delivery schedules and ensuring structural integrity is maintained throughout the manufacturing process.

1.2.3 Production Planning, Qualification, and Inspection

The prime contractor shall use the -33 Wing drawings as the basis for all manufactured and assembled parts. Additionally, the prime contractor shall qualify their manufacturing and fabrication system prior to starting any fabrication/assembly work.

2 REQUIREMENTS

The prime contractor shall produce -33 Wings that are complete and ready for buildup and installation on the T-38 aircraft. The prime contractor shall be responsible for verifying the TDP is complete prior to start of First Article production.

2.1 Program Management

The prime contractor shall provide documentation and communication required to efficiently and effectively manage the contract. All communications pertinent for the execution of this contract shall be flowed to both the Contracting Officer and Program Manager.

2.1.1 Integrated Master Plan/Integrated Master Schedule

The prime contractor shall produce a comprehensive Integrated Master Plan (IMP) [CDRL A001/B001]. The IMP shall include a detailed, fully integrated management approach that identifies how the contractor will accomplish an effort of this size. The prime contractor shall provide an Integrated Master Schedule (IMS) [CDRL A002/B002]. At a minimum, the IMS shall include a detailed timeline of the following:

• Tooling production

• First Article manufacture and inspection

• Material purchase to include long lead items

• Production rate for each fiscal year

• Scheduled audits and acceptance checks

2.1.2 Subcontractor Management

The prime contractor may subcontract with other companies to establish a strong technical capability to meet diverse contract requirements. The prime contractor shall be held fully responsible for all aspects of contract performance and oversight.

2.1.2.1 Small Business Participation

The government has set a minimum overall small business subcontracting requirement (first-tier) of 18% of the total subcontracted amount.

2.1.2.1.1 Small Business Utilization Reporting

The Contractor shall deliver a SB Utilization Report to demonstrate the fulfillment of the SB subcontracting requirement. [CDRL A003/B003]

2.1.3 Monthly Status Report

The prime contractor shall provide a Monthly Status Report [CDRL A004/B004] that covers all program activities for the period. It shall provide a forecast of work to be accomplished during the upcoming month. This report shall include status and progress towards open milestones that are active, or scheduled to become active, according to the delivery schedule. The prime contractor shall identify actions being taken to correct schedule deficiencies. Changes from previous reports shall be highlighted and explained.

Approved IMP and/or IMS updates shall be reflected in this report. The prime contractor shall report any situation requiring immediate action by the Government using the most expedient means (teleconference or e-mail) and document the situation in the Monthly Status Report. The following categories are examples to be included in the monthly report (list is not all-inclusive):

• Pre-Production tool design, tool manufacture, and supply chain identification

• Manufacturing status

• Delivery schedule

• Non-conformance summary and trend analyses

• Corrective action plans

• Risk assessment of production issues (to include mitigation)

2.1.4 Meetings

The Government encourages meetings with the prime contractor to review contract status and address outstanding issues. Whenever feasible, meetings shall be held in conjunction to minimize costs (i.e. Kick-Off Meetings, Program Management Reviews, Technical Interchange Meetings, etc.). Additionally, to ensure effective communication, teleconferences or video teleconferences may be used frequently. All appropriate stakeholders should attend including Government personnel, prime contractor, subcontractors, etc.

2.1.4.1 Kick-Off Meeting

The prime contractor shall attend a Kick-Off Meeting at Hill AFB or an agreed upon location within 60 calendar days of contract award. The purpose of the meeting shall be to review and gather available technical information applicable to the -33 Wing contract and discuss the expected course of the program. The prime contractor shall prepare an agenda for the kick-off meeting [CDRL A005/B005]. The prime contractor shall consult with the Program Manager during the development of the kick-off agenda to ensure Government concerns are addressed. The prime contractor shall provide the meeting minutes after the kick-off meeting [CDRL A006/B006].

2.1.4.2 Program Management Reviews

Program Management Reviews (PMR) shall alternate between Government and prime contractor facilities or at an agreed upon location. PMRs shall be scheduled by the Government quarterly or as tasks warrant. PMRs may be conducted by video teleconference as necessary. The prime contractor shall prepare an agenda for each PMR [CDRL A005/B005]. The prime contractor shall consult with the Program Manager during the development of the PMR agenda to ensure Government concerns are addressed. The prime contractor shall provide the meeting minutes after the PMR [CDRL A006/B006].

2.1.4.3 Technical Interchange Meetings

The prime contractor shall conduct and support Technical Interchange Meetings (TIM) alternating between Government and prime contractor facilities or at an agreed upon location. The Government and/or prime contractor may schedule a TIM more or less frequently as tasks warrant. The intent of the TIM is to foster the exchange of technical information impacting the -33 Wing contract. TIMs may be conducted by video teleconference as necessary. The prime contractor shall prepare an agenda for each TIM [CDRL A005/B005]. The prime contractor shall consult with the Program Manager during the development of the TIM agenda to ensure Government concerns are addressed. Specific technical information and presentation materials may be requested by the Program Manager as part of the TIM. The prime contractor shall provide the meeting minutes after the TIM [CDRL A006/B006].

2.2 General Production Tasks

2.2.1 Task #1: Digital Representations and Production Tooling

2.2.1.1 Digital Representations of Master Tooling

The prime contractor shall analyze and create accurate, verified, digital representations (e.g. 3D solid models) of Government provided master tooling.

Models shall be created using Siemens NX software and shall be provided to the Government in a format compatible with NX version 11 (or version currently utilized by the Government when the contract is awarded) [CDRL A007/B007]. Models shall contain the complete history and parametric data and be provided to the Government with limited data rights.

2.2.1.2 Digital Representations of the -33 Wing

2.2.1.2.1 Legacy Data Conversion Plan

The prime contractor shall provide a plan [CDRL A008/B008] to interpret legacy data (including loft data and 2-D drawings) provided in the TDP. The plan will also include the contractor’s approach to mitigate interpretation error.

2.2.1.2.2 Creation of 3-D Solid Models

Following the aforementioned plan, the prime contractor shall use the point-to-point loft data to create accurate, verified, digital representations of the -33 Wing outer mold line and inner mold line. These digital representations will be used in conjunction with the 2-D drawings to create accurate, digital representations (e.g.

3-D solid models) of the -33 wing components and assemblies. Models shall be created using Siemens NX software and shall be provided to the Government in a format compatible with NX version 11 (or version currently utilized by the Government when the contract is awarded) [CDRL A009/B009]. Models shall contain the complete history and parametric data and be provided to the Government with limited rights.

2.2.1.3 Production Tooling

The prime contractor shall design and manufacture the production tooling needed to fabricate the -33 Wing. The Government encourages the use of modern innovations in tooling to streamline production of the -33 Wing. Throughout the period of the contract, the prime contractor shall be responsible for maintaining the tooling/fixtures in a usable condition.

2.2.2 Task #2: Production Planning, Qualification, and Inspection

2.2.2.1 Production Qualification

The prime contractor shall provide a Production Qualification Plan (PQP) and the Government will approve the plan prior to producing the -33 Wing First Article detail parts [CDRL A010/B010]. The plan, at a minimum shall address:

• The overall manufacturing process through final assembly to produce up to 4 wing assemblies per month (including but not limited to shop floor layout, wing assembly sequence, number of production lines, ancillary tooling/dollies, etc.)

• Subcontractors in place to support production

• Production capacities at all levels to support the expected delivery rates

• Equipment and facilities to produce the -33 Wing according to expected delivery rates

• Control and certification of materials, parts, assemblies, and services provided by outside vendors in support of this effort

• Tool validation and verification that all tooling is qualified to produce the wing to the TDP requirements on a repeatable basis

• Master and production tooling control

• Process to control and certify the materials, parts and assemblies of all

Critical Safety Items (CSI) and their defined critical characteristics according to AFI 20-106

• List of sources that will provide CSIs

• Process to manufacture the following spars:

− 15% Spar (P/N 3-23242-11/12, forging P/N 2-23296-9) − 44% Spar (P/N 2-23252-15/16, forging P/N 2-23311-7) − 66% Spar (P/N 3-23282-7/8, forging P/N 2-23297-17/18)

• Process to verify and demonstrate interchangeability and replaceability (I&R) with wing components (e.g. ailerons, flaps, leading edges, wingtips) and fuselage in accordance with MIL-I-

2.2.2.1.1 Schedule Risk Assessment

The prime contractor shall perform a risk assessment of the manufacturing/production processes of the -33 Wing and identify factors that could impact the production schedule of the wing. The prime contractor shall provide this analysis, as well as risk mitigation, to the Government prior to production. The analysis will be included in the PQP.

2.2.2.2 First Part Qualification Plan

The prime contractor shall provide a First Part Qualification Plan (FPQP) (CDRL C001) that will detail how each part and assembly of the -33 Wing will be certified for compliance with technical data requirements. The First Article Inspection (FAI) requirements for the parts shall be AS 9102 compliant. The Defense Contract Management Agency (DCMA) will provide oversight of contractor-run FAI at both the prime contractor facility and at any subcontractor facilities.

2.2.2.3 First Article Inspection

The first -33 Wing manufactured on the production line shall be considered as the First Article Wing. The prime contractor shall perform a FAI on this wing, to include all individual parts and subcomponents, per the requirements of FAR Clause 52.209- 4, First Article Approval – Government Testing and Alt I & II. The First Article will be used to validate the manufacturing tooling and processes used to produce the -33 Wing. In addition to end-item inspection of the First Article Wing, the Government with DCMA’s assistance will inspect items throughout production of the First Article. The Government will, at a minimum, verify conformance to the TDP of the - 33 Wing CSI items listed in Attachment C, as well as all Interchangeable & Replaceable (I & R) locations listed in Attachment D. The prime contractor shall ensure that these critical components are made available for inspection before final assembly. The prime contractor shall submit a FAI report containing all supporting documentation and results of all individual parts and the final assembly in the First Article Inspection report [CDRL C002].

Following the FAIs, the prime contractor shall deliver the First Article Wing to a United States Air Force base to be determined by the Government 30 days prior to shipping. After delivery of the wing to the Government facility, the Government is responsible for the following actions at the Government facility:

1) Installation of wing on a T-38 aircraft

2) Mating of the I&R items

3) Operational checks

4) Functional Check Flight (FCF) of aircraft with new wing installed

Prime contractor personnel shall be present throughout installation of the wing to correct deficiencies identified by the Government. If deficiencies are discovered during operational or in-flight checks, the prime contractor shall correct them at the Government facility. If repair is not possible at the Government facility, the prime contractor shall notify the Government through the PCO of the deficiencies. For all deficiencies found (corrected on-site or not), the prime contractor shall record the discrepancy found, the source of the discrepancy, and the actions necessary to correct the discrepancy [CDRL C003].

Final acceptance of the First Article Wing will be based on successful fit check, operational checks, and FCF. After the Government operational checks and FCF are successfully completed, the First Article Wing shall remain permanently installed on the operational T-38 aircraft.

2.2.2.4 Aviation Critical Safety Items

The prime contractor shall comply with policy, procedures and responsibilities outlined by instruction AFI 20-106 Management of Aviation CSIs. CSIs for the -33 Wing are listed in Attachment 1.

2.2.3 Task #3: -33 Wing Production

The prime contractor shall not begin assembly of any production units until final inspection and acceptance of the First Article Wing. The prime contractor is authorized to order material and produce wing sub-assemblies (ribs, spars, etc.) to meet the contract delivery schedule for production units. The following tasks specify the manufacturing and production requirements to produce a -33 Wing. If non-conformances are discovered at Government facility, the prime contractor shall correct them at the Government facility, if possible, in accordance with Government approved dispositions. Non-conformances will be corrected at the expense of the contractor.

2.2.3.1 Production Readiness Review

The prime contractor shall conduct a Production Readiness Review (PRR) with the Government prior to initiating production of the -33 Wing. The purpose of the PRR is to determine if system requirements are fully met in the final production configuration and if production capabilities form a satisfactory basis for proceeding into full-rate production. The prime contractor shall prepare an agenda for the PRR

[CDRL A005/B005]. The prime contractor shall consult with the Program Manager a minimum of 30 calendar days prior to the PRR to schedule the event and ensure Government concerns are addressed. The prime contractor shall provide the meeting minutes after the PRR [CDRL A006/B006]. Deficiencies identified by the Government during the PRR shall be corrected by the prime contractor before proceeding to production.

2.2.3.2 Manufacture -33 Wings

The prime contractor shall produce -33 Wings using the tooling developed in Task #1. Additionally, the prime contractor shall use the process specifications to produce the -33 Wing. These process specifications are referenced in the applicable drawings that comprise the 2-23000-33 TDP.

2.2.3.3 Interchangeability and Replaceability

The -33 Wing contains I&R interfaces as defined in MIL-I-8500. All I&R interfaces/parts are identified in the drawings within the TDP. Interchangeability for all interfaces/parts shall be demonstrated throughout the manufacturing process and will be verified by the Government during acceptance and installation of the First Article -33 Wing on an aircraft.

2.2.3.4 Quality Assurance

Quality control processes are critical to meeting delivery schedule requirements. The prime contractor shall be AS 9100 compliant or equivalent. Subcontractors supporting production of the -33 Wing shall also be AS 9100 compliant or equivalent.

2.2.3.4.1 Quality Assurance Plan

The prime contractor shall provide the Government a Quality Assurance Plan [CDRL A011/B011]. The Quality Assurance Plan shall define the quality control processes used by the prime contractor to ensure dimensional accuracy, material selection, and assembly of the -33 Wing meets specifications and matches the configuration baseline. The Quality Assurance Plan shall address how non- conformances and Product Quality Deficiency Reports (PQDRs) are to be handled.

2.2.3.4.1.1 Non-Conforming Product

The prime contractor shall develop a Material Review Board (MRB) process for handling non-conforming products found during manufacture and production. The prime contractor shall present this process to the Government for approval prior to use as part of the Quality Assurance Plan. At a minimum, the MRB process shall address the following:

• Process to identify, analyze, disposition, and repair non-conforming conditions

• Cause and corrective action process

• Process to manage, track, and document non-conformances

• Interface with DCMA and the USAF Engineering Source Authority

(ESA)

Analysis tools, methods, and software must comply with those presented in the Analysis Requirements and Guidelines for Non-Conformance Conditions (Attachment E).

The 416th SCMS is the ESA for disposition of all non-conforming products under this effort. The 416th SCMS may delegate limited DCMA oversight and authority for disposition of non-conforming product. DCMA may delegate limited contractor authority, with 416th SCMS concurrence, based on a demonstrated level of expertise during the program.

MRB dispositions submitted for Government approval will have an initial response within 5 business days of receipt. These reports shall describe each non-conforming product, the repair disposition taken by the contractor, and the substantiating analysis and rationale (Ref. Attachment E). The 416th may delegate engineering authority to the prime contractor based on demonstrated level of expertise during the program. The Government may suspend the prime contractor’s engineering authority if monthly reports fail to demonstrate continued engineering discipline and adequate repair methodology.

The prime contractor shall record all non-conforming products on Air Force Technical Order (AFTO) Form 95 [CDRL A012/B012]. The ESA will provide guidance on format and content. The AFTO 95 shall be electronically provided to the Contracting Officer and enclosed with each -33 Wing shipment.

2.2.3.4.1.2 Product Quality Deficiency Reporting

The prime contractor shall develop and maintain a PQDR review process to address any deficiencies found in delivered and accepted wings. The PQDR review process shall be conducted using TO 00-35D-54 as a guideline and include, as a minimum, prime contractor root cause analyses of the deficiencies. The prime contractor will be responsible for required correction action on delivered and undelivered hardware. PQDR information shall be updated in the Quality Assurance Plan.

2.2.3.4.2 Subcontractor Quality Requirements

The prime contractor is responsible for all subcontractors to meet the prime contractor’s quality system requirements. The prime contractor shall show subcontractor compliance with the prime contractor’s quality system requirements to the Government. The means of verification shall include audits of the quality system compliance as well as physical on-site audits of the subcontractor processes, procedures, records, facilities, etc.

2.2.3.4.3 Quality Audits

The prime contractor and subcontractor are subject to independent Government or Government directed audits at any time during production to ensure quality procedures and processes are followed.

2.2.3.5 Serial Number Control

The prime contractor shall use serial numbers to control and provide traceability for the -33 Wing assembly. To prevent overlap with previously assigned serial numbers, the prime contractor shall assign serial numbers as identified by the Government.

2.2.3.6 Item Unique Identification (IUID) Requirements

Per DFAR 252.211-7003, IUID shall be applied to the end item (P/N 2-23000-33) and all applicable parts in accordance with MIL-STD-130N. IUID markings must meet requirements of the TDP (Drawings 200733803 and 200925111). The IUID of the end item (P/N 2-23000-33) shall be accompanied by a Human-Readable Information (HRI) marking of 16 alphanumeric characters which includes the vendor CAGE of the prime contractor and a unique 4-digit number starting with a Government assigned serial number. IUID markings shall be accomplished in a manner that will not adversely affect the items required function.

2.3 Environmental, Health, and Safety

The prime contractor shall determine and implement actions necessary to ensure environmental, health, safety policies, regulations, and laws are adhered. Engineering solutions submitted to the Air Force shall require consideration of the impact to the environment and to the worker’s health and safety. Compliance to appropriate Environmental Protection Agency (EPA), Occupational Safety and Health Administration (OSHA), and local Government and state regulations is required.

2.3.1 Environmental Compliance

Chemical and material products shall meet performance specifications and shall not violate the environmental requirements of any applicable local, state, or federal entity.

The prime contractor may be required to design or redesign, develop, document, and verify processes and materials used to produce the -33 Wing are environmentally compliant. Applicable pollution requirements may include a substance's toxicity, biodegradability, and Volatile Organic Compound (VOC) content. It shall be the prime contractor's responsibility to ensure project compliance with environmental regulations, ordinances, and statutes of any sovereign governing the prime contractor. Further, it shall be the prime contractor's responsibility to ensure waste products generated in assigned efforts are disposed of in a safe manner, complying with applicable regulations. In no event shall the Government be liable for the contractor's failure to comply with applicable environmental requirements. The contractor agrees to hold harmless the United States should the contractor violate any environmental regulation, ordinance, or statute. In the case where more than one environmental requirement is present, the contractor shall comply with the stricter requirement. Should there be a conflict between environmental regulations, ordinances, and statutes and the contract's specifications, the contractor shall, in writing, contact the contracting officer for a written resolution. Any adjustment in the specifications or contract terms by the contractor without such a resolution shall be at the contractor’s risk and expense.

2.3.2 Hazardous Materials

The use of hazardous or corrosive materials in the performance of any Task should be avoided. The use of hazardous or corrosive materials shall be reduced by elimination, substitution, or minimization using guidance as provided by the Government. If the use of hazardous materials cannot be avoided, the contractor shall identify such requirements to the Government before proceeding and shall justify the requirements in regular status reports.

2.3.3 Ozone Depleting Substances

Class I Ozone Depleting Substances (ODS) shall not be used in the performance of this contract, unless prior approval is granted from the Air Force. Class I ODS shall not be delivered as a result of this contract. The contractor shall make every effort to eliminate or reduce Class I ODS usage in hardware or processes relating to manufacturing and production of the -33 Wing and all subcomponents.

2.3.4 Health and Safety

The contractor shall ensure Air Force Occupational Safety & Health Standards and other applicable safety and health standards (i.e., Occupational Safety and Health Administration [OSHA] standards) are included in specifications.

3 PERSONNEL QUALIFICATIONS

The prime contractor shall employ experienced program managers, project technical managers, engineers, technicians, professional support staff, etc. to perform the specific responsibilities delineated in this Statement of Work. Through Program Management Reviews, the prime contractor shall notify the Government of any change of assignment or employment status of the Program Manager, Project Technical Manager(s), or other key personnel such as lead engineers.

Engineers shall have engineering degrees provided by an accredited school of engineering.

4 SPECIAL CONSIDERATIONS

4.1 Economic Price Adjustment (EPA)

A price adjustment may be generated using the methodology in this instruction and forecasts of the Producer Price Index, Aluminum Sheet Plate & Foil (PPI 1331315) from Global Insight. The Government reserves the right, at its sole discretion, to select alternative indexes, or combination of indexes, in the event the stated indexes are not available or do not adequately reflect market conditions for the material on this contract. FY 19 is the base year for determining unit prices for the forecast years.

For this EPA instruction, offerors are required to provide the “Total Cost Proposed for Aluminum Parts per Unit Plus Related Burdens less Profit” for all ordering years at each potential ordering quantity. For purposes of this instruction, the definition of “aluminum parts,” or parts whose prices are subject to adjustment under this instruction, is the total cost for items that are either 100% aluminum such as aluminum raw stock, or purchased/subcontracted items for which the material composition of the part is so predominately aluminum, that it should appropriately be classified as an “aluminum part.”

The government will use the “Total Cost Proposed For Aluminum Parts Per Unit Plus Related Burdens less Profit” amounts for making contract price adjustments under the EPA instruction. The offeror shall submit and the government will review the offeror’s amount and basis of aluminum parts subject to this instruction as part of the offeror’s initial proposal.

This cost will not be modified after award, except by mutual agreement. This cost will serve as the basis for applicable adjustments under this EPA instruction as described herein.

Once yearly on the anniversary of the award of the basic contract (or more often at the sole discretion of the Government), the Contractor shall compare the average of the forecasts of the indices for the most recent year and inform the Government of the result in writing. The contractor may request adjustments more often; however, these out of cycle adjustments will be made at the government’s sole discretion. If the absolute value of the change is less than 5.0% of the baseline year, then no adjustment will be made. If the index has increased or decreased more than or equal to 5.0% of the baseline year, then an adjustment will be triggered as follows:

• The percentage change increase or decrease will be multiplied by the “Total Cost Proposed for Aluminum Parts per Unit Plus Related Burdens less Profit” andadded or subtracted to the offeror’s unit prices on the basic contract via unilateral modification.

• The index used in the adjustment will then become the base year index for purposes of making future year adjustments.

FOR EXAMPLE:

Base Year Index: 100 Current Year Index: 110 Total Cost Proposed For Aluminum Parts per Unit Plus Related Burdens less Profit:

$100,000 Total Price Per Unit: $1,000,000

(110 Next Year Index − 100 Base Year Index) / 100 Base Year Index = 10% Absolute Value (10%) >= 5% Threshold for making an adjustment; therefore, an adjustment will be made 10% adjustment percentage × $100,000 Total Cost Proposed For Aluminum Parts per Unit

Plus Related Burdens less Profit = $10,000 $10,000 Upward Adjustment + $1,000,000 Total Price Per Unit = $1,010,000 Adjusted Price New Baseline Index: 110

The adjustments will be subject to the following restrictions:

• The adjustment will not apply to orders issued prior to the effective date of the adjustment in aluminum prices.

• The government is not obligated to make adjustments above 10 percentage points of the originally established unit prices; however, the government may in its sole discretion on a case-by-case basis exercise any increase, the cumulative aggregate of which exceeds 10 percentage points of the originally established unit prices.

• Failure to notify the contracting officer in writing of an adjustment within 30 daysof the anniversary of the contract will:

− Upward Adjustment: lead to a forfeiture of the adjustment until the next anniversary or government dictated review date.

− Downward Adjustment: lead to a retroactive adjustment of all orders awarded since the anniversary or government dictated review date when the adjustment should have been made in addition to the current adjustment. If orders have been completed in the intervening time, downward adjustments may be made to current orders or a claim may be issued.

− Exceptions to the above will be at the government’s sole discretion.

The Contracting Officer may examine the Contractor’s books, records, and other supporting data relevant to the aluminum prices during all reasonable times until the end of 3 years after the date of final payment under this contract or the time periods specified in Subpart 4.7 of the Federal Acquisition Regulation (FAR), whichever is earlier.

4.2 Security

4.2.1 Release/Removal of Documentation

The prime contractor shall not release, remove, or alter documentation, data, or reports generated by or through use of any Government systems. All requests for information shall be forwarded to the Government PCO.

4.3 Supply/Support Requirements

4.3.1 Governmental Rights

Products developed under this contract shall be considered Government work and prime contractor shall have no licensing rights/claims.

4.3.1.1 Limited Government Rights

The Government shall have limited rights to items, components, systems, processes, computer software, and technical data developed by the prime contractor, under this contract. Software procured by the prime contractor shall have the licensing agreement(s) passed through to the Government. Systems developed or procured under this contract are Government property and shall be delivered as specified by Task.

4.3.1.2 Contractor Developed Items

The prime contractor shall identify and receive written Government approval from the Government contracting officer (ACO/PCO), prior to committing to the use of prime contractor developed items, components, processes, computer software, or technical data which they:

• Intend to deliver with Limited Rights

• Intend to deliver with Government Purpose License Rights

• Intend to deliver with Specifically Negotiated Rights

• Have not yet determined if such rights should apply

4.3.2 Government Facilities

Prime contractor personnel shall comply with Air Force facility requirements before being allowed access to Government facilities as appropriate to accomplish specified tasks such as First Article Wing Installation and PMRs.

4.4 Travel Requirements

The prime contractor may be required to travel to Air Force installations or other locations to observe, conduct tests and/or ensure compatibility of configuration changes. In addition, as required by individual Task, the prime contractor shall attend program meetings, technical interchange meetings, technical reviews, audits, and First Article Inspections. Travel costs shall not be separately priced and should be included in the wing price.

4.5 Preservation, Packaging & Marking Requirements

The contractor shall be responsible for the preservation, packaging, and marking of all items delivered under the terms of this contract. Packaging procedures will be established in accordance with AFMCI 24-201 (paragraph 3.7) and MIL-STD-2073-1 (current revision).

Wings ready for delivery shall be packaged IAW Special Packaging Instruction (SPI) F00- 763-1421 Rev H, effective date Jan 09.

4.5.1 Preparation for Delivery

Preparation for delivery is contained on AFMC Form 158.

4.5.2 Hazardous Materials

Hazardous materials that require Performance Oriented Packaging (POP) shall be packaged and appropriately marked (UN container markings and hazardous commodities markings) in accordance with the following regulations: International Civil Aviation Organization (ICAO), International Maritime Dangerous Goods (IMDG) Code, Annex 1, 29 CFR, Department of Transportation Final Rule, HM-181 of the Federal Register, 21 December 1990 of 49 CFR, and MIL-STD-129. Material Safety Data Sheets (MSDS) are required for known hazardous items and applicable items shown in FED-STD-313, Tables I and II. The symbol used to certify compliance with UN POP requirements shall be properly registered with the US Department of Transportation. A copy of the prime contractor’s Test Report and signed certification that the package configuration meets both CFR and UN requirements shall be made available to the procuring contract office, as required, prior to acceptance or shipment of any portion of the product IAW CDRL requirements (Reference AFMC Form 158). If it is found there are no hazardous materials in this acquisition, this particular paragraph is invalid.

4.5.3 Applicable Government Packaging Documents

AFMCI 24-201 AFMC PACKAGING AND MATERIALS, HANDLING

POLICIES AND PROCEDURES

MIL-STD-2073-1 STANDARD PRACTICE, MILITARY MARKING FOR

SHIPMENT AND STORAGE

MIL-STD-129 STANDARD PRACTICE, MILITARY MARKING FOR

SHIPMENT AND STORAGE

ICAO INTERNATIONAL CIVILAVIATION ORGANIZATION

IMDG, Annex 1 INTERNATIONAL MARITIME DANGEROUS GOODS CODE

29 CFR OCCUPATIONAL SAFETY AND HEALTH

ADMINSTRATION, LABOR

49 CFR DEPARTMENT OF TRANSPORTATION FINAL RULE, HM –

181 OF THE FEDERAL REGISTER, 21 DECEMBER 1990

MIL-STD-130 IDENTIFICATION MARKINGS OF U.S.

MILITARYPROPERTY

5 REFERENCES AND APPLICABLE DOCUMENTS

The following list of Government and industry specifications, standards, and other documents below are for reference.

AFI 20-106 Management of Aviation Critical Safety Items JSSG-2006 Joint Service Specification Guide, Aircraft Structures MIL-HDBK-

61A (SE) Configuration Management Guidance MIL-HDBK-505 Handbook for Definitions of Item Levels, Item Exchangeability, Models, and Terms MIL-STD-3018 Parts Management MIL-HDBK-729 Corrosion and Corrosion Prevention, Metals MIL-STD-1568D Material and Processes for Corrosion Prevention and Control in

Aerospace Weapon Systems MIL-STD-129R Military Marking for Shipment and Storage MIL-STD-130N Identification Marking of Military Property

MIL-STD-1916 Department of Defense Test Method Standard (DoD Preferred Methods for Acceptance of Product)

MIL-STD-2073-1 Standard Practice for Military Packaging MIL-I-8500D Interchangeability and Replaceability of Component Parts for

Aerospace Vehicles

H4-1 (and H4-2) Federal Supply Code for Manufacturers Cataloging Handbook 00-5-1 Air Force Technical Order System

00-5-3 AF Technical Manual Acquisition Procedures 1T-38C-2-1 Org. Maintenance Aircraft General T-38C Aircraft 1T-38C-2-3 Org. Maintenance Flight Control Systems T-38C Aircraft 1T-38C-2-4 Org. Maintenance Pneudraulic Systems T-38C Aircraft 1T-38C-2-8 Org. Maintenance Landing Gear Systems T-38C Aircraft 1T-38C-3 Structural Repair T-38C Aircraft

1T-38C-4-1 Illustrated Parts Breakdown General Airplane T-38C Aircraft 1T-38C-36 Nondestructive Inspection T-38C Aircraft

AS 9100 Quality Management Systems – Aerospace – Requirements AS 9102 Aerospace, First Article Inspection Requirements

AS 9132 Data Matrix Quality Requirements for Parts Marking ISO 9001:2000 Quality Management Systems – Requirements

PPI 1331315 Producer Price Index, Aluminum Sheet Plate & Foil (PPI 1331315 from Global Insight

TO 00-35D-54 Technical Manual USAF Deficiency Reporting, Investigation, and Resolution

5 REFERENCES AND APPLICABLE DOCUMENTS