Atch1_APPENDIX B REVISED for USAFE F-16.pdf

HQ OGDEN AIR LOGISTICS CENTER

UNITED STATES AIR FORCE

HILL AIR FORCE BASE, UTAH

APPENDIX B

Original Date: 17 Fen 2011

Revised: 17 Feb 2011

Revised by:

PMS: Eric Sepp

OFFICE: OO-ALC/GHBWD

PHONE: 801-777-8466

CONTRACT NO:

PURCHASE REQUEST NUMBER:

ABBREVIATED CONTRACT NUMBER:

SUPPLY INFORMATION

TYPE WORK: STRIP/PAINT AND DROP-IN MAINTENANCE

TYPE OF EQUIPMENT: F-16 AIRCRAFT

TYPE SUPPORT: GFM

TABLE OF CONTENTS

Page

1. Terms Explained

2. Government Furnished Property (GFP/GFM)

3. Contractor Communications Network (CCN) via the Internet and VOLTS/ DAMES

4. Contractor Property Control Records

5. Stock Levels of Government Furnished Material

6. Reorder Points

7. Uniform Material Movement and Issue Priority System

8. Military Standard Requisitions and Issue Procedures (MILSTRIP)

9. Actions Required on Supply Status

10. Production Problems

11. Disposition of Government Property

12. Discrepancies Incident to Shipment

13. Disposition of Condemned Government Property

14. Contractor Reporting

15. Visits

16. Other

17. References

LIST OF ATTACHMENTS

1. Instructions for Preparation of GFM Requisitions (NOT CAV AF)

2. Instructions for Preparation of GFP Turn-In Documents (NOT CAV AF)

3. Requisition Priority Designator Chart

4. Government Furnished Material Authorized for CAV AF

5. Government Furnished Equipment Authorized for CAV AF

6. Contractor Communications Network (CCN) for CAV AF

7. CAV AF GFM Code Reference for Requisitions

PURPOSE STATEMENT

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

Acquisition Regulation (FAR), Part 45.5, which is incorporated by reference and made part of this contract. When the provisions of this appendix conflict with existing FAR, Part 45 or other government directives, the contractor will contact the contracting officer at OO-ALC for guidance.

1. TERMS EXPLAINED: Terms and definitions are included in the regulations referenced in paragraph 17 of this appendix and are supplemented as follows when applicable:

a. Abbreviated Contract Number: An eight position alphanumeric designator that represents the contract number and is used in requisitioning material and reporting transactions in the G009

Government Furnished Material and End Item Transaction Reporting System. The first position is for the ALC and the remaining seven positions are the control number.

b. Administrative Contracting Officer (ACO): A contracting officer assigned the responsibility for post award functions related to the administration of a government contract in the field. The ACO is normally located in the Defense Contract Management Agency (DCMA) office. The ACO is responsible for ensuring the contractor performs in accordance with the terms of the contract.

c. Contractor Communications Network (CCN): Provides the contractor with an electronic means of transmitting (through the Internet) Government Furnished Material and End Item Transaction

Reporting System (G009) or Commercial Asset Visibility Air Force (CAV AF) data transactions and requisitions for supplies.

d. DAASC Automated Message Exchange System (DAMES): The automated system providing the capability to communicate with DAASC through a modem using a standard dedicated telephone line.

e. Defense Automatic Addressing System Center (DAASC): The center for automatic data processing located at Wright-Patterson AFB, Ohio.

f. Government Property (GP): All property owned by or leased to the government, or acquired by the government under the terms of the contract as follows:

(1) Bench Stock: Low cost, high-usage, and non-sensitive consumable material stored in work areas for contract performance. Quantities of such stock shall not exceed that amount normally consumed in a thirty-day period, nor the amount established in the contractor‟s approved property control system (normally used for broken units of issue).

(2) Contractor Acquired Property (CAP): CAP funding is NOT authorized.

(3) Contractor Furnished Property (CFP): Property other than GFP, which is furnished and funded by the contractor as part of the maintenance service provided. Title to all CFP remains with the contractor until consumed.

(4) Government-Furnished Equipment (GFE): An all-inclusive term to define all types of equipment defined in Far, Part 45. It includes facilities, plant equipment, agency peculiar property, and special tooling/special test equipment. For the purpose of annually reporting dollar values on Department of Defense (DoD) property in the custody of contractors (DD Form

1662), items must be categorized according to the specific FAR property definitions.

(5) Government Furnished Material (GFM): Government property furnished to the contractor, which may be incorporated into or attached to an end item to be delivered under a contract, or that may be consumed in the performance of a contract. It includes, but is not limited to, raw and processed material, parts, components, and assemblies.

(6) Material Support Division (MSD) Items: Items that have an ERRC code of C (XD1) or T

(XD2). These items are referred to as line replacement units (LRU) and shop replacement units (SRU) respectively. They are also referred to as an investment, exchangeable, or non-consumable item.

(7) System Support Division (SSD) Items: Items that have an ERRC Code of N (XB3) or P

(XF3). They are also referred to as expense or consumable items.

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

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

i. Virtual On-line Logistics Transaction System (VOLTS): A Windows-based version of DAMES by which users have the capability to communicate with the Air Force via an asynchronous modem over a dial-up line or via the Internet.

2. GOVERNMENT FURNISHED PROPERTY (GFP):

a. National Stock Numbers (NSN): Contractor is authorized to requisition GFM as listed on the Attachment

Four to this Appendix B. The contractor will not requisition, procure, nor be provided with, any other materials by the government. All GFM, as government property, will be retained in a secured storage area.

b. GFE, if authorized on this contract, is identified per Attachment Six to this Appendix B. The contractor will comply with the GFE-related clauses in the basic contract. While the GFE is in the possession of the contractor, it is the contractor‟s responsibility to provide routine maintenance and calibration of the GFE to ensure the GFE is returned to the government in the same condition as when provided less normal wear and tear. GFE will not be requisitioned until it is actually required and will be turned in when no longer required.

c. The contractor will requisition the applicable supply management publications through the Contract

Administration Office (CAO). Essential publications are the following:

(1) FEDLOG is a logistical information system. The contractor will provide a CD-ROM reader capable of reading a 4.72-inch compact disk. The CD-ROM reader must conform to High Sierra and ISO 9660

Standards.

(2) DOD 4000.25-1-M, Military Standard Requisitioning and Issue Procedures (MILSTRIP).

(3) DLA Customer Assistance Handbook.

(4) DOD 4161.2-m, DOD Manual for the Performance of Contract Property Administration

(5) AFMCI 21-134, Volumes I and II, Government Furnished Material and End Item Transaction Reporting

System (G009)

(6) Commercial Asset Visibility Air Force (CAVAF) Contractor User‟s Manual (current version)

(7) Other automated sources with information equivalent to that found in the FEDLOG.

NOTES:

(1) ATTACHMENTS TO THIS APPENDIX B ARE APPLICABLE TO THIS CONTRACT ONLY IF

SUCH ATTACHMENTS ARE LISTED ON THE COVER PAGE AND ACCOMPANY THIS

DOCUMENT. OTHERWISE, SUCH ITEMS DO NOT APPLY TO THIS CONTRACT.

(2) THE CONTRACTOR SHALL NOT ORDER GFM MATERIAL FOR ANY OTHER CONTRACT

BY USING REQUISITIONING PROCEDURES.

(3) PURCHASE OF CAP OR USE OF CAP FUNDS IS NOT AUTHORIZED ON THIS CONTRACT.

3. CONTRACTOR COMMUNICATIONS NETWORK (CCN): INTERNET AND VOLTS/DAMES

a. The success of any contract depends upon how fast and efficient communications are passed to the sources of supply (SOS) for MILSTRIP documents transmitted or received, Reports of Discrepancies (ROD‟S) SF

Forms 364 (DAMES), and Government Furnished Material and End Item Transaction Reporting System

(G009) (Internet) or CAV AF transactions to the contract managing ALC.

b. The purpose of the CCN is to improve the flow of supplies to the contractor and to facilitate reporting of

GFM transactions, inventory status, end item production and reporting shipping discrepancies ROD‟s

(SF364). This is accomplished by providing a direct on line (Internet) data and narrative message service interface between the contractor and DOD logistics activities.

c. The specific conditions, hardware specifications and communications interface to support contractor End

Item and/or Government Furnished Material (GFM) reporting requirements through the Internet and/or mainframe to mainframe are identified in Attachment Five for CAV AF Reporting.

d. The G009/CAV AF/GFM interface to the DOD Supply System will be provided by the contractor through the Internet. The Virtual Online Transaction System/DAASC Automated Message Exchange

System (VOLTS/DAMES) software is resident on the Internet and instructions on how to access this file and initial training will be provided by DAASC.

NOTE: CAV AF WEB processing will be the only reporting option until CAV AF XML batch processing e.g. sending XML file via file transfer protocol (FTP) is available.

e. The contractor shall be required to provide the CCN hardware in accordance with Attachment Five for

CAV AF Reporting.

4. CONTRACTOR PROPERTY CONTROL RECORDS:

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

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

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

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

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

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

(5) Contract or project number relating to contract.

(6) Location

(7) Posting references (to include support documentation (i.e., issues, receipts, inventory recording, etc., and dates of transactions)

(8) Disposition

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

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

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

(3) Stock levels and reorder points

(4) Quantity per assembly (QPA) from Material Requirements Listing (MRL) or Technical Order (TO)

(5) Replacement percentage factor (from actual experience or MRL)

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

d. FAR, Subpart 45.505-14 describes the annual report, which gives the acquisition cost of all GP in the contractor‟s custody. Details for completing this report are on the reverse side of DD Form 1662, DOD

Property in the Custody of Contractors. This form is available from the Property Administrator.

e. Other reports may be required in accordance with FAR, Subpart 45.508, 45.6, and the Contract Data

Requirements List (CDRL), DD Form 1423.

f. In addition to the above, a separate record of requisition numbers shall be maintained and shall include the

NSN of the item requisitioned, the unit of issue, the quantity requisitioned, document number, and the date the item was received by the contractor. The record shall be kept current at all times.

5. STOCK LEVELS OF GOVERNMENT FURNISHED MATERIAL (GFM):

a. Initial stock levels of GFM (ERRC N and P) shall be initially computed by the contractor for the first 60 day requirements. A minimum monthly quantity estimate shall be provided if the actual quantity is unknown.

The contractor‟s historical data should be used to establish stock levels, provided the data is not more than

18 months old. If no historical data is available, the contractors shall contact the PMS for assistance in establishing these levels. NOTE: Long lead-time items should use all of the pipeline times allowed plus historical data. Maximum levels may be maintained in these cases.

b. This appendix specifies the maximum stock levels of GFM authorized to be on hand or order at any given time. These levels shall be maintained ONLY in those instances when the contractor‟s usage and/or reorder time experience justifies a need for the maximum levels to prevent production slippage or work stoppage.

Minimum stock levels will be maintained as a normal procedure.

c. Computation of stock levels begins when the number of end items to be repaired and in what time frame is determined. Apply the following when this determination is made:

(1) Stock levels are a combination of pipeline time (in months) and stockage objective (in months). Note, however, that pipeline time shall be excluded by the contractor in determining initial stock levels. A stock level is the maximum months of stock authorized to be on hand or on order at any time.

(2) The following elements of information apply as a sample for the computation of stock levels:

CONUS

ERRC ERRC PIPELINE STOCKAGE STOCK

CODE DESIGNATOR TIME OBJECTIVE LEVEL

T XD2 31Days + 45Days = 76 Days (2 ½ Mo.)

N XB3 31Days + 45Days = 76 Days (2 ½ Mo.)

P XF3 31Days + 45Days = 76 Days (2 ½ Mo.)

NOTE: For OVERSEAS requirements, use the following pipeline time:

* To Alaska, Hawaii, South America, Caribbean, North Atlantic 69 Days

** To Northern Europe, Mediterranean, Africa 74 Days

*** To Western Pacific 84 Days

(3) Formula for computing stock levels:

(a) Computing the Monthly Demand Rate (MDR)

1. Divide the number of end items to be repaired/overhauled each year in accordance with the contract by 12 and multiply this by the quantity per end item. Example: the yearly production scheduled quantity is 60 each, and the quantity per end item is 10 each

(60/12=5, 5x10=50).

2. Obtain the replacement percent from the percent column of the contractor‟s replacement history.

Example: the replacement percent for a given item is 50%. Multiply this percent by the MDR computed above to obtain the applicable net MDR (.5x50=25net MDR).

(b) The stock level equals the MDR multiplied by the number of months for stockage objective and pipeline time. Example: For an ERRC Code T item, the stockage objective of 1.5 months, and pipeline time of 1month is multiplied by the MDR of 25 (1.5+1 =2.5, 2.5 X25= 62.5, round to 63 stock level quantity).

(c) For low usage (round up to 1 each), low dollar items (under $30.00 stock-listed price (SLP), a safety level of three each or an equivalent unit of issue will be established and maintained.

6. REORDER POINTS:

a. Reorder for additional GFM will be predicated on future delivery orders.

b. If projected production requirements of contract line items are not received during the first 60 days, no additional GFM will be ordered or procured, and in stock GFM will be maintained for the next 60 days.

c. If projected production requirements of contract line items are not received during the first 129 days, the contractor shall request disposition instructions from the PMS.

d. The reorder point (in months) represents the number of months of stock required to be on hand or on order to support issues/demands during the pipeline time required to requisition and receive replenishment requirements.

e. The reorder point (in months) shall be established as the pipeline time.

f. The reorder point quantity shall be established by multiplying the reorder point by the MDR. Example: for an ERRC Code T (XD2) item, a one month reorder point times 25 MDR equals a reorder point quantity of

25.

g. A reduced pipeline time shall be used whenever the contractor‟s experience reflects pipeline time is less than authorized above. The PMS through the ACO must approve an increase to the authorized pipeline time.

7. UNIFORM MATERIAL MOVEMENT AND ISSUE PRIORTY SYSTEM (UMMIPS):

The contract buying office has assigned a Force Activity Designator (FAD) II to this contract for use in determining the proper requisition priority. Requisition priority is determined by relating the FAD to the

Urgency of Need Designator (UND).

a. On FAD II, only use priority 02, 05, and 12

(1) UND “A” and FAD II equal Priority 02. Use this priority when a work stoppage exists or will exist if material is not received with eight days.

(2) UND “B” and FAD II equal Priority 05. Use this priority when production capability will be impaired if material is not received within normal order and shipping times.

(3) UND “C” and FAD II equal Priority 12. Use this priority when requisitioning initial operating stock and for normal stock replenishment.

b. The objective of proper stock control is to have all requirements planned well in advance where only the lowest priority (12) is used. The use of high priority for stock replenishment is poor stock management and serves to defeat the priority system.

8. MILITARY STANDARD REQUISITION AND ISSUE PROCEDURES (MILSTRIP):

DOD 4000.25-1-M gives detailed guidance on accomplishing MILSTRIP requisitions, modifiers, and follow-up actions. This can be accomplished electronically via VOLTS/DAMES or manually processed by submitting a

DD Form 1348-1 to the PMS. The contractor shall prepare and process requisitions in accordance with regulations, as supplemented by the following:

a. The contractor shall ensure all items and quantities are authorized and the requisitions are properly prepared in accordance with the MILSTRIP format, Attachment One for G009 material or Attachment Seven for

CAV AF material of this Appendix B. A requisition control record will be maintained and document numbers assigned to each day‟s requisitions. Entries will be maintained to indicate date, material requisitioned, material on order, and material received.

b. In the event an item is urgently required to prevent a production slippage or work stoppage, the contractor shall take the following actions:

(1) Requisition the GFM required to relieve the production stoppage, with an advice code of 2C (fill or kill) in card columns 65-66 and priority 02 in card columns 60-61. The requisition quantity should not exceed the quantity required to relieve the production slippage or work stoppage. At the same time, take action to cancel any requisitions, currently on back order, for this item and input a new requisition with the adjusted quantity. NOTE: A normal requisition using code 2L must be submitted first. If unacceptable status is received, then use the advice code 2C.

(2) Upon receipt of the denied 2C requisition (status code “CB” from the SOS), and with the approval of the

ACO, the contractor will locally procure the item with funds specified in the contract. NOTE: A

Document modifier will be used to adjust the on order quantity of the original requisition.

c. The contractor will submit all manual requisitions to the PMS at 500 ACSS/GFLA.

d. When material requisitioned is to be shipped to a supplemental station activity address other than the contractor‟s home location, the contractor will enter the supplemental address (EZ station number) in card columns 45-50 and signal code L in card columns 51.

e. Requisition follow-ups, modifiers, cancellations etc., will be routed to applicable routing identifier codes that are identified in the DLA Customer Assistance Handbook.

9. ACTIONS REQUIRED ON SUPPLY STATUS CODES:

a. An Advice code may be entered in card columns 65and 66 of the requisition to provide instructions to the

SOS when such data is considered essential to a supply action. The SOS, to advise the contractor of the action taken, after the requisition was processed, inserts a status code in the same field.

b. Once requisitions are input, there is a continuing need to monitor the returned status codes. This is because each requisition must pass an edit check to ensure the item and quantity is valid under the terms of the contract. Also, some supply status codes may ask the requisitioning unit to revalidate, provide additional information, or further justify the request for the item or quantity requisitioned. Failure to reply can cause the requisition to be canceled.

10. PRODUCTION PROBLEMS:

a. The contractor shall report all potential supply support deficiencies that could cause production slippage or work stoppage to the ACO, PCO, the GFM Manager, and the PMS at the managing ALC. Additional information on report preparation is available in AFMCI 21-134, Volume I. This data will be forwarded to the managing ALC via the VOLTS through the Internet. These reports shall identify the GFM items that are critical or have long procurement lead times and the work stoppage date. If problems are not resolved, the contractor shall report them to the ACO. The ACO will forward all problems to the PCO and the PMS.

b. Contract line items received with missing MSD components: The contractor will immediately process a

Report of Discrepancy (ROD), SF Form 364 and provide the missing item report, including the ROD number, to the ACO with a copy to the 500 ACSS/GFLA PMS. The report will specify the missing items by

NSN. Additional information on report preparation is available in AFR 400-54, Reporting of Item and

Packaging Discrepancies.

11. DISPOSITION OF GOVERNMENT PROPERTY:

a. These instructions apply to all government owned property, or property procured with government funds, which is determined to be excess, by the contracting ALC, for the fulfillment of this contract.

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

(1) Within 90 days prior to contract expiration, the contractor shall submit a letter to the managing ALC requesting retention and eventual transfer of GFM/GFP to the follow-on contract. The letter must contain the following information: noun, NSN, Part Number, ERRC, dollar value, and Quantity on hand to be retained.

(2) If the retention/transfer of GFM is approved the contractor shall submit a “ship in place” document” to the PCO. Copies of transfer documents shall be furnished through the ACO and PCO to the PMS, 500

ACSS/GFLA and/or GFM management office.

(3) If the managing ALC disapproves the retention of the GFM/GFP, disposition instructions will be provided to the contractor. All disposal procedures should be completed within 30 days from receipt of instructions.

(4) If the follow-on contract is awarded to other than the incumbent, the following applies:

(a) The incumbent will provide a listing of all GFM by NSN/PN and Quantity to the PMS and / or GFM management office.

(b) GFM will be packaged and identified in accordance with existing FAR regulations and shipped per instructions of the PMS.

c. In the event this contract or any delivery order placed against this contract is terminated, the disposition instructions for GFM/GFP, determined to be excess, will be provided by the PMS through the PCO.

d. The contractor shall review stock positions on all GFM every 90 days. The contractor will request disposition instructions from the PMS within 30 days following the determination that GFM exceeds projected needs.

(1) If the contractor identifies excess GFM following the stock position review, he will prepare the excess

(document identification code FTE) transaction in accordance with Attachment Two for MILSTRIP

G009 material. The FTE action will result in an FTR response with three options:

(a) Hold and come back in 90 days

(b) Ship to _________ (credit will be given)

(c) Destroy (plant clearance)

Prepare the CAV AF excess GFM transaction in accordance with Attachment Seven, paragraphs 3 and

4.

(2) When the contract is within 60 days of completion, the contractor shall review all requisition control records. All back order requisitions for which a positive supply action has not been received will be cancelled and a new requisition with an advice codes 2C (fill or kill) in card columns 65-66, will be submitted. The new requisition quantity will be limited to the amount required to complete the contract.

(3) The contractor shall obtain disposition instructions from the PMS for unserviceable investment items that are removed from the end item and will not be repaired under the terms of the contract. Unserviceable expense items removed from the end item shall be condemned and disposed of in accordance with paragraph 13 of this appendix.

(4) The contractor shall prepare a listing of excess local purchase (LP), local manufacture (LM), AF managed items coded on the stock list as JCD (deleted), and those items coded N (expense) on the stock list regardless of condition or line item dollar value. The list shall include GFP by NSN, part number, noun, quantity, and dollar value, and the list will be submitted through the ACO to the PMS for disposition instructions.

(5) Serviceable AF stock-listed items with a $50.00 or more total line item (Refer to G009 end-of-month report, Inventory Section, Value of Serviceable Column) will be returned to the funding ALC.

(6) Items valued at less than $50.00 total per line item (Refer to G009 end-of-month report, Inventory

Section, Value of Serviceable Column) shall be disposed of by the contractor using plant clearance procedures.

(7) The contractor shall use DD Form 1348-1 A, DoD Single Line Item Release/Receipt Document, for turn-in of GFP. See Attachment Two for instructions on completing this form for MILSTRIP G009 material or Attachment Seven, paragraphs 3 and 4 for CAV AF GFP turn-in.

e. Directed Disposal:

(1) Contracting ALC representatives, during a visit, may direct on-the-spot disposition of excess material discovered. Representatives of the ALC, the contract administration activity, and the contractor must be in agreement that such items are excess to total contract requirements prior to disposal action.

(2) The PMS will give the contractor, in writing, all NSN/PN‟s and quantities to be eliminated from stock.

f. The contractor shall assure that all excess reparable contracted end items being returned to the AF have the note “Contract excess” entered on the DD1348-1A (shipping document) to preclude ALC recording of such excess as additional reparable generations. The contractor shall insure that excess contracted end items are returned to the contracting ALC unless another address is specified by the ACO.

g. Package and Shipment of Expense Items:

(1) Expense items still in their original package shall be shipped as is.

(2) All remaining expense items shall be packaged “Level A” and shipped “Level C” in accordance with

MIL-STD 2073-1C, “DOD Material, Procedures for Development and Application of Packaging

Requirements.” (Part 1 of 2 Parts)

(3) The contractor may use commercial packaging if equal to or better than MIL-STD 2073-1C.

(4) The contractor should refer to the basic contract for cost of packaging and shipping.

12. DISCREPANCIES INCIDENT TO SHIPMENT:

a. The following are the most common discrepancies: Items that are misidentified or have variations in quantity, items in dubious condition, non-requisitioned items, lost/damaged parcel post, or items with excessive packaging. These discrepancies will be reported on SF Form 364, Report of Discrepancy (ROD)

(ref AFR 400-54). A ROD can also be submitted through the VOLTS via the Internet. The completed form will be forwarded through to CAO/QA activity for corrective action. The items received and reported on SF

Form364 as overages will be processed according to the disposition of excess GFM criteria specified in this appendix. Transportation discrepancies are reported on SF Form 364, in accordance with AFJI 24-228.

b. Misdirected shipments of GFM shall be immediately reported to the Property Administrator (PA) by telephone, with a follow-up in writing, within three workdays. The PA will issue appropriate disposition instructions for the misdirected items. Excess items received by the contractor will not be receipted into the

G009 system until the Report of Discrepancy has been completed and instructions provided.

13. DISPOSITION OF CONDEMNED GOVERNMENT PROPERTY:

a. Unserviceable GFM (ERRC code N & P items) shall be condemned and disposed of at the contractor facility in accordance with the terms of this contract and/or government approved scrap procedures.

b. Disposition instructions for all ERRC code C & T items, such as critical, MSD, and save list items that are condemned during the performance of this contract, shall be requested through the PCO from the ALC.

c. The contractor shall submit a listing of “condemned ST/STE” to the contracting ALC. The listing shall identify the condemned items by NSN, PN, noun and quantity and shall be submitted together with a letter of transmittal titled, “Request for Disposition of ST/STE condemned on Contract Number _______.”

Disposition instructions will be provided by the contract managing ALC.

14. CONTRACTOR REPORTING:

a. The G009 system was implemented to support all DMAG repair contracts as they generate. The contractor will report in accordance with Data Item Description (DI-ALSS-81533C) Instructions pertaining to G009 reporting that are contained in AFMCI 21-134 Vols. I and II.

b. The CAV AF system was implemented to support all DMAG repair contracts as the Working Capital Fund is dissolved. The contractor will report in accordance with Data Item Description (DI-MGMT-81634A)

Instructions pertaining to CAV AF reporting that are contained in Commercial Asset Visibility Air Force

Contractor User‟s Manual, Version 7.0 or higher.

c. The contractor submits GFM/End Item Transactions through the G009 and/or CAV AF to the funding ALC as required. The G009/CAV AF compiles a monthly summary status report for GFM and End Items. The

GFM reporting is an integral component of an industrialized contract maintenance program. To effectively manage under such a concept, it is essential that specific attention be focused on the inconsistencies in contractual provisions, reporting dates and validity of the data obtained. Continuous surveillance is necessary to ensure timely reporting and accuracy of data.

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

16. OTHER:

a. The contractor shall not obtain GFP or purchase CAP material through the utilization of requisition codes or

CAP funds assigned exclusively for this contract for any other contracts.

b. The contractor shall not transfer GFP charged to this contract to any other contract, contractor, or activity without the advance approval of the PCO and 500ACSS/GFLA through the ACO.

17. REFERENCES:

1. Federal Acquisition Regulation (FAR), Part 45, Management of Government Property in the Possession of

Contractors (current version).

2. Defense Federal Acquisition Regulation Supplement (DFARS), Subpart 245.5, Management of Government

Property in the Possession of Contractors (current version).

3. Federal Acquisition Regulation (FAR) Part 52, Solicitation Provisions and Contract Clauses.

4. AFMCI 21-134, Vols. I and II, Government Furnished Material and End Item Transaction Reporting System

(G009).

5. AFJMAN 21-215, Reporting of Supply Discrepancies.

6. AFMAM 23-110, USAF Supply Manual

7. DLA Customer Assistance Handbook

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

Attachment One

INSTRUCTIONS FOR PREPARING GFM/GFE REQUISITIONS FOR MILSTRIP

(NOT APPLICABLE FOR CAV AF REQUISITIONS)

AUTOMATED: VOLTS/DAMES VIA CCN or any other DAASC requisitioning vehicle.

Card Columns 1-3 Enter the appropriate three-position code: (Document Identifier)

NOTE: Card Column 2 is a numeric zero.

A0A - Requisitioning by NSN/NATO stock number (CONUS)

A01 - Requisitioning by NSN/NATO stock number (Overseas)

Card Columns 4-6 Enter “F4M”. (Routing Identifier)

Card Column 7 Enter “S” (If Automated) or “T” (If Manual Reporting). (Media and Status Code)

Card Columns 8-22 Enter the NSN or NSN/Material Management Aggregation Code (MMAC).

Card Columns 23-24 Enter the two-position code. (i.e., ea = each, ft = foot). (Unit of Issue)

Card Columns 25-29 Enter the quantity required and prefix with zeros to fill the field. If quantity exceeds

99,999, prepare additional requisitions. (Quantity)

Card Columns 30-35 Enter your EZ number.

Card Column 36 Enter the last digit of the calendar year.

Card Columns 37-39 Enter the Julian date.

Card Column 40 Enter “M”.

Card Columns 41-43 Enter a three-digit serial number. Number the requisitions consecutively.

NOTE: Columns 30-43 make up the Document Number. Do not use the same document number twice on the same day.

Card Column 44 Enter “R” if a recurring demand or “N” if nonrecurring. (Demand Code)

Card Columns 45-50 Enter “Y” in card column 45, last digit of the contract year in card column 46, and the last four digits of the contract number in card column 47-50. (Supplementary

Address)

Card Column 51 Enter “C”. (Signal Code)

Card Columns 52-53 Enter “GR” for OO-ALC (Fund Code)

Card Columns 54-56 Enter “G88”. (Distribution Code)

Card Columns 57-59 Project Code: Leave Blank

Card Columns 60-61 Enter the appropriate priority (See Attachment Three of this appendix). (Priority

Code)

Card Columns 62-64 Enter the Julian Date by which the material is required. (Must be filled)

(Required Delivery Date)

Card Columns 65-66 Enter the appropriate code located in DLA Customer Assistance Handbook

(i.e. 2L, 2B, 2C). (Advice Code)

Card Columns 67-71 Leave Blank

Card Column 72 For the issue of Expense items enter a Material Management Code of “F”. This indicates that the item is a consumable asset and will be charged a standard price to the contract. For ERRC “T” Exchangeable or replenishment items, use Material

Management Code “J”.

IMPORTANT NOTE: To receive the exchange price, a reparable ERRC “T” asset must be turned in within 60 days of establishing a serviceable ERRC “T” GFM requisition. Conversely, when there is no reparable asset to turn in, use code “F” in card column 72.

Card Columns 73-80 Enter the G009 Abbreviated Contract Number (i.e. G000__ __ __ __). (Contract

Identification)

Attachment Two

INSTRUCTIONS FOR PREPARING SHIPPING

DOCUMENT FOR GFP TURN –IN

FOR MILSTRIP

(NOT APPLICABLE FOR CAV AF REQUISITIONS)

Use DD Form 1348-1A (four-part). DO NOT USE DD FORM 1149.

Card Columns 1-4 Enter the appropriate four position code which applies (See page 14 of this attachment for a listing of Document Identifiers).

Card Column 5 Enter the ALC code for items supplied by the ALC

CODE ALC/AGENCY

G OO-ALC

H OC-ALC

L WR-ALC

Card Column 6 Enter “Z” for ALC-supplied items.

Card Columns 7 Enter “F” for expendable supply item (GFM) or “G” for equipment/recoverable item

(GFE)

Card Column 8-22 Enter the National Stock Number of item being returned

Card Column 23-24 Enter the two position code for the Unit of Issue (1.e., ea = each, ft = foot).

Card Column 25-29 Enter the Quantity of items returned and prefix with zeros to fill the field

Card Column 30-43 Enter the Document Number:

Card Columns 30-35 Enter contractors Activity Address Code (EZ#)

Card Column 36 Enter last digit of calendar year.

Card Columns 37-39 Enter the Julian date.

Card Column 40-43 Enter a four digit serial number. Number the turn-ins consecutively. DO NOT USE THE SAME NUMBER

TWICE ON THE SAME DAY.

Card Column 44 Leave Blank

Card Column 45 Enter “Y”

Card Column 46 Enter the last digit of the contract year.

Card Column 47-50 Enter the last four digits of the contract number.

Card Column 51 Enter “C”

Card Column 52-53 Fund Code “GR”

Card Column 54 Distribution Code R

Card Column 55 Leave Blank

Card Column 56 Enter “Y” if one of the following exist:

(1) Turn-in is because the item had a latent defect when received.

(2) Turn-in is because more material was received than requisitioned.

(3) Turn-in is because the item received is not what was ordered.

(4) Turn-in is serviceable GFM issued for testing purposes.

(5) The item manager directs turn-in.

Enter a “K” if the item being returned was originally requisitioned for loan/bailment.

If one of the above conditions does not exist, leave column 56 BLANK

Card Columns 57-65 Leave Blank

Card Column 66 Enter “R”.

Card Columns 67-69 Leave Blank

Card Column 70 Enter A

Card Column 71 Enter “A” for serviceable. Enter “F” for unserviceable.

Card Column 72 Enter the appropriate Material Management Code:

“F” When returning serviceable GFM requisitioned as Initial Issue

“L” When returning GFE

“J” When returning GFM that is unserviceable Material Support Division (MSD) material (ERRC “T”, Budget code 8, unserviceable item).

“P” When returning “D” coded material

Card Columns 73-80 Leave Blank

DOCUMENT INDENTIFIERS AND MANAGEMENT CODES

FOR TURN-INS ON DD FORM 1348-1A

DOC ID MGMT CODE

COL 1-4 COL 72 EXPLANATION

D6LB A Assembly, End Item. Treated as a purchase;

the AF will receive a bill from the contractor.

D6LC C End Item from conversion/modification. No credit is provided.

D6LK D Disassembly. Treated as a purchase. The AF will receive a bill from the contractor.

D6LE E Reclamation. No credit is provided.

D6HF F GFM. Credit is based on credit indicator and condition code of the item.

D6HG G Government-furnished aircraft equipment.

Credit based on credit indicator and condition of the item.

D4MC H End item from repair/test. Treated as a purchase.

The AF will receive a bill from the contractor.

D6RJ J Exchange Item. Customer will/has turned in an unserviceable item for a serviceable item.

Credit is based on the credit indicator and condition code of the item.

D6NL L Loan, bailment, or lease. No credit is provided.

Return of loan item.

D6HP P or Blank Material received without documentation. No credit is provided.

D7LB A Assembly, bits, and pieces. Customer billed at standard price.

D7LC C End item for conversion/modification. No bill is created. Does not hit the Free Issue General

Ledger Account.

D7LK D Disassembly. Customer is billed at standard price.

D7LE E Reclamation. No bill is created. Treated as a condemnation.

D7HF F GFM. Customer billed at standard price.

D7HG G Government-furnished aircraft equipment.

Customer is billed at standard price.

DOC ID MGMT CODE

COL 1-4 COL 72 EXPLANATION

D7MC H End item from repair/test. No bill created.

D7RJ J Exchange Item. Customer is billed at standard price.

D7NL L Loan, bailment, or lease. No bill is created.

Attachment Three

REQUISITION PRIORITY DESIGNATORS

NOTE: “A” To be used when a work stoppage exists or will exist if material is not received

Within eight days.

“B” To be used when production capability will be impaired if material is not received within normal order and shipping times.

“C” To be used in requisitioning initial operating stock required for scheduled contractual commitments and for stock replenishments.

URGENCY OF NEED DESIGNATORS

Cannot Perform Mission Firm Future

Mission or Capability or Requirement/

Contract Contract Commit- Stock

Commitment ment is impaired Replenishment

(A) (B) (C)

1 4 11

2 5 12

3 6 13

7 9 14

8 10 15

REQUISITION PRIORITY DESIGNATOR

Force

Activity

Designator

(FAD)

I

Force II

Activity

Designator

III

(FAD)

IV

V

Attachment Four

GOVERNMENT FURNISHED MATERIAL (GFM) AUTHORIZED

Specific AF managed ERRC T and AF managed ERRC N and P material items listed below shall be authorized as government furnished material (GFM) for the contractor to requisition through standard procedures contained in this appendix. The listing is based on the Material Requirements Listing (MRL) approved and provided by the

Equipment Specialist (ES), Program Manager and coordinated with the PMS to be requisitioned for this contract and is listed below by ERRC, SOS, Budget Code, National Stock Number (NSN), Noun, and Quantity.

Non-AF managed consumable material items, ERRC code N or P, SHALL NOT be authorized as GFM and will be provided by the contractor as Contractor Furnished Material (CFM). In special cases, a written waiver may be submitted by the Product Directorate PMS through the Contract Repair Office for non-AF managed material.

Waivers must have a final approval from the ALC senior management and authorization from HQ AFMC/A4.

Any changes: additions, deletions, modification to the NSNs listed on the authorized GFM listing shall require a contract modification to this appendix.

Attachment Five

CONTRACTOR COMMUNICATIONS NETWORK (CCN)

FOR

GOVERNMENT FURNISHED MATERIAL AND END ITEM PRODUCTION

REPORTING VIA THE COMMERCIAL ASSET VISIBILITY AIR FORCE (CAV AF) SYSTEM

1. GENERAL:

1.1 The purpose of this attachment is to provide the specific conditions, hardware specifications and communications interface to support contractor GFM and /or End Item reporting requirements and supply requisitions.

2. HOST LOCATIONS:

2.1 A WEB Server located at Multimax Corporation in Beavercreek, OH will act as a host for CAV

AF on-line transaction processing. The contractor shall be required to complete a DD Form 2875 for security access prior to gaining access to the CAV AF Internet system. Mail the completed DD Form

2875 to 418 SCMS/GUBAA, Attn: Sherry Anderson, 6009 Wardleigh Road, Bldg 1209, Hill AFB, UT 84056-5838 or FAX to 801-777-5692. An email address must be provided for timely return of access ID. NOTE: CAV AF WEB processing will be the only reporting option until CAV AF

XML batch processing e.g. sending XML file via file transfer protocol (FTP) is available.

2.2 The Web address for on-line CAV AF access is: https://www.cavaf.com/cavweb

2.3 The Defense Logistics Agency/ Defense Automatic Addressing System Center (DLA/DAASC) front-end computer at Wright Patterson Air Force Base (WPAFB), Ohio will act as host for GFM requisitions and MILSTRIP Status processed through CAV AF as batch End-of-Day (EOD) and

Beginning-of-Day (BOD) transactions.

3. TECHNICAL CONSIDERATIONS:

3.1 The contractor shall provide the following hardware and software, at a minimum, to meet the specifications indicated:

3.1.1 A personal Computer (PC) and Monitor.

3.1.2 PC must have an operating system and web browser tool capable of accessing and processing transactions over the Internet.

3.1.3 A printer connected to the PC for printing CAV AF documents as needed.

3.1.4 A phone line or compatible access to connect PC to the Internet.

4. RESPONSIBILITY OF CONTRACTOR:

4.1 The contractor shall be responsible for the maintenance of the hardware and supplies (paper, ink, printer cartridges, extra disks, etc.) to keep the PC system operational and compatible with the host computer.

4.2 The contractor shall use the CCN/CAV AF Reporting System to report all GFM and End Item

Transactions. These transactions shall be entered into CAV AF on a real time basis or as changes generate, but not later than 24 hours from the date of occurrence.

https://www.cavaf.com/cavweb

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

4.4 Initial training, if needed, will be provided by the contracting ALC. Follow-up training shall be the responsibility of the contractor.

Attachment Six

GOVERNMENT FURNISHED EQUIPMENT (GFE) AUTHORIZED

Specific GFE has been authorized by the Equipment Specialist (ES) and coordinated with the PMS to be requisitioned for this contract and is listed below by National Stock Number (NSN) and quantity.

NSN Quantity DoDAAC Unit Cost

CL-341.80 DFS-5 1 EZ1297 $23,344

CL-341.80 DTK-5 1 EZ1297 $12,128

CL-341.80 RK-5 1 EZ1297 $21,324

CL-341.80 RTDK-5 1 EZ1297 $22,614

TEK-6036; NDI

Standard

1 EZ1297 $801

1730-00-631-6419 2

1730-01-301-3127 1

1740-00-713-5908 3

1730-01-189-4164 1

Attachment Seven

CAV AF GFM CODE REFERENCE

1. General Information:

1.1. The CAV AF GFM menu is used by the contractor to Requisition and Ship GFM which has been authorized on the Authorized GFM Listing, (Attachment 5). Requisitions enter the supply system in standard MILSTRIP format and are edited against the contract GFM Allowance table for the NIIN and quantity before being passed to DAASC at the end of each day.

1.2. The CAV AF GFM menu also provides a number of reports to allow the contractor to track activity and view supply status in the CAV GFM environment.

2. GFM Requisition Codes: A0A Requisition

Document Type – leave default value of „A0A‟ for CONUS or „A01‟ for overseas shipment

Fund Code - CDM Fund Code assigned to contracting Air Logistics Center:

OO-ALC – „GD‟ MSD for material

OC-ALC – „HD‟ MSD for material

WR-ALC – „LD‟ MSD for material

RI To - Routing Identifier of SOS to which the document is being submitted

Distribution Code – „C99‟ Required

Media Status – „0‟ (100% supply and shipment status to Distribution Code) unless otherwise directed

Project Code – Blank unless directed by contracting ALC

Quantity – enter quantity being requisitioned

IPD (Issue Priority Designator) – „06‟ or as directed by contracting ALC

Demand Code – leave default value „R‟ unless otherwise directed

Required Delivery Date – Input your required delivery date

Supp Add – For Air Force managed MSD material (other than Budget Code 9), leave blank if shipment is to requisitioner and use Signal Code „C‟ (ship to requisitioner, bill to fund code)

For Air Force managed MSD material (other than Budget Code 9), enter DODAAC of subcontractor to receive shipment and use Signal Code „L‟ (ship to supplementary address, bill to fund code).

Advice Code – Enter the appropriate code else leave blank

Signal Code – „B‟, „C‟, or „L‟ as required by type of material and activity receiving shipment as detailed in Supp Add above

RI From – „FC2‟ Required

3. GFM Shipment Codes: A5 Material Release

Shipping Doc Nr – shipping document number consisting of the contractor‟s 6-digit „EZ‟

DODAAC, 4-digit Julian date, and 4-digit serial number

FSC – FSC from NIIN

DOD U/I – Unit of Issue

MMAC – MMAC as needed from NIIN

SFX – Leave blank

Document Type – „A5A‟ for shipping Condition Code „A‟ and „F‟ material. Change to

„A5J‟ for shipment of condemned Condition Code „H‟ material

Fund Code – CDM Fund Code assigned to contracting Air Logistics Center used in the original GFM requisition:

OO-ALC – „GD‟ MSD for material

OC-ALC – „HD‟ MSD for material

WR-ALC – „LD‟ MSD for material

RI To – Routing Identifier of activity to receive shipment

Distribution Code – „C99‟ Required

Media Status – recommend „Y‟ (exception supply/shipment status to Distribution Code) unless otherwise directed

Project Code – Blank unless directed by contracting ALC

A5 Quantity – quantity to be shipped

IPD – „13‟ or as directed by contracting ALC

Demand Code – leave default value „R‟ unless otherwise directed

Required Delivery Date – leave at default value unless otherwise directed.

Supp Add –DODAAC of „ship to‟ activity

Signal Code – „M‟ (ship to Supp Add, no billing require)

RI From – 3-digit routing identifier assigned to the shipping contractor (e.g., „EIE‟)

Condition Code – „A‟, „F‟, or „H‟ as appropriate.

Remaining fields may remain blank unless directed otherwise.

4. DD Form 1348 Codes:

Ship To DODAAC – DODAAC of the activity to which the material is being shipped.

DODAAC will appear in the Supp Add field of the DD Form 1348.

Project Cd – project code as assigned in contract or as otherwise directed.

Mark For – the name of the activity to which the material is being shipped.

Signal Cd – Signal Code „M‟ (ship to Supp Add, no billing required).

Ship To Document – defaults to the RCDN of material being shipped. When using the

Bulk Shipment function the default will be the lead RCDN being shipped. Use default values unless otherwise directed.

Fund Cd – CDM Fund Code assigned to contracting Air Logistics Center or as otherwise directed:

OO-ALC – „GD‟

OC-ALC – „HD‟

WR-ALC – „LD‟

DD1348 Date – defaults to current date. Change to date of actual shipment if different.

Remaining fields may remain blank unless directed otherwise.