Section_J_Attachment_1_-_PWS_Amendment_6.pdf

Solicitation FA8630-14-R-5030 Section J, Attachment 1 - Performance Work Statement

22 July 2015

PERFORMANCE WORK

STATEMENT PARTS AND REPAIR

ORDERING SYSTEM (PROS V)

U.S. AIR FORCE SECURITY

ASSISTANCE COOPERATION

DIRECTORATE

Table of Contents

1.0 Description of Services

1.1 Introduction/History

1.2 Overview of Services

1.3 Service Categories

2.0 Procurement Requirements

2.1 Contract Award Objectives

2.2 Small Business Goals

2.3 Solicitation Requirements

3.0 Requisition Processing Requirements

3.2 Activities Common to Supply and Maintenance

3.3 Requirements Unique to Supply Support

3.4 Requirements Unique to Maintenance Support

3.5 Task Orders

3.6 Electronic Status Reporting

3.7 Communication

3.8 Customer Contact Information

4.0 General Program Requirements

4.1 Quality Assurance (QA) Management

4.2 Warranty

4.3 SDR Processing and Resolution

4.4 Security Requirements

4.5 Contractor Identification

4.7 Invoicing

4.8 Contract Start-Up

4.9 Contract Closeout

4.10 Reviews and Meetings

4.11 Organizational Conflicts of Interest (OCI)

4.12 Government Access to Contractor Facilities

4.13 Public Release of Information

4.14 Language Requirement

5.0 Contract Deliverables

5.1 Contract Data Requirement List (CDRL)

6.0 Service Summary

7.0 Recognized Holidays

Appendix A – Status Codes Appendix B – Acronyms Appendix C – Glossary

1.0 Description of Services

1.1 Introduction/History

The Air Force Security Assistance Cooperation Directorate (AFSAC) is the interface between Department of Defense (DoD) logistics systems and Security Assistance customers. AFSAC is responsible for ensuring comprehensive logistics support for Foreign Military Sales (FMS) customers that own and operate weapon systems of US origin. AFSAC is located at Wright Patterson Air Force Base (WPAFB), Ohio and is a part of the Air Force Life Cycle Management Center (AFLCMC).

Prior to 1990, organic non-standard supply support was unacceptably slow and unreliable to the FMS customer, resulting in a 60% cancellation rate. This high rate was due to the type of materiels being ordered, which were no longer available in the United States Government (USG) inventory system (non-standard). In 1990, the United States Air Force (USAF)/AFSAC developed the Non-standard Item Parts and Repair System (NIPARS) to fulfill the FMS customers’ non-standard requirements. In the mid-1990s, the program was expanded to include “difficult to support” standard items and the name was changed to the Parts & Repair Ordering System (PROS). PROS currently offers support to the USAF, Army, & Navy FMS customers.

PROS is used for the acquisition of non-standard items that are not actively managed in the DoD inventory, or “difficult to support” standard items that the USG Source of Supply (SoS) is unable to support. Providing this type of logistics support for FMS customers creates many challenges. Many PROS requisitions for legacy or customer unique requirements do not have management data available. Some supply items are not catalogued due to low usage rates. Other times, small quantity requests may not justify the administrative cost and time required to support. In other cases, when USG support exists, high USG demand often takes precedence over FMS requirements. Also, PROS eligible items may experience disproportionately large costs because the items are no longer available and new production is required.

1.2 Overview of Services

This Performance Work Statement (PWS) defines the level of effort necessary to successfully conduct all activities associated with PROS. The PROS program provides a contracting vehicle to procure materiel (supply support) and maintenance services (repair support) for non-standard and “difficult to support” standard items. Difficult to support items exist when the FMS customer is given the option of passing standard items to PROS when the USG source determines it is unable to provide support due availability or timeliness. In addition to supply and maintenance, PROS uses task orders to contract for logistical, technical, and other support services.

1.2.1 Scope/Incentives

The PROS V Period of Performance (PoP) will consist of a ten year ordering period and five year closeout period. The ten year ordering period consists of a five year base period and five one-year options. The USG reserves the right to exercise the options(s) as set forth in Section B of this contract and subject to the stated terms and conditions. The PROS contractor

(henceforth known as the contractor unless otherwise stated) will be the USG source for supply/maintenance/task orders for all eligible items under the PROS contract. The primary objectives of the contract are timely processing of requisitions (from requisition receipt to shipment), best value prices, responsive customer support, quality materiel, and effective program management. Objective Performance Incentives (OPIs) will be available to incentivize contractor’s performance.

1.2.2 Requisition Generation

Contractor shall process Part Number (P/N) and/or National Stock Number (NSN) requisitions electronically via USG Information Technology (IT) systems in accordance with (IAW) the Level of Service (LOS) identified in the requisition. The LOS categories are:

Highest Level of Service (HLS), Urgent, and Routine. LOS categories shall be used as a guideline for awarding contracts and negotiating accurate shipment dates. The LOS provides customer the opportunity to select the priority based upon their needs. Electronic requisitions will contain the specific FMS country negotiated Letter of Offer and Acceptance (LOA), case designator, and line item which authorizes the support or procurement effort, as well as all other required data elements. When requisitions are received, contractor shall post a BD status code to Security Assistance Management Information System (SAMIS) within five calendar days.

1.2.3 Levels of Service

1.2.3.1 HLS

HLS requirements are most critical to the FMS customer’s military operations. They represent requirements that include, but are not limited to, grounded aircraft, contingency operations, and national disasters. Requirements in this category will contain a Priority 2, 3, 7, or 8, and an HLS code in the Required Delivery Date (RDD) field in SAMIS.

1.2.3.2 Urgent

Urgent requirements are critical to the FMS customer’s military operations. They represent requirements that may not constitute emergency or immediate operational impacts.

Requirements in this category will contain a Priority 2, 3, 7, or 8 in SAMIS.

1.2.3.3 Routine

Routine requirements are less critical to the FMS customer’s military operations. They represent requirements that are not as time sensitive as HLS or Urgent. Requirements in this category will contain a Priority 5, 6, 9, 10, 12, 13, 14, or 15 in SAMIS.

1.2.4 Types of Requisitions

1.2.4.1 NSN Requisition (A01)

Requisitions input by NSN are routed to the applicable USG SoS. When SoS is unable to support, customer is provided with the option of forwarding the requirement to PROS for continued support. These requisitions will contain the USAF Engineering Source Authority (ESA) approved source and Item Unique Identification (IUID) information as required.

Contractor shall only award to the USAF ESA approved source as documented in SAMIS.

When the USAF ESA approved source will not provide a quote, contractor shall process a CA status code and may earn a research fee. In this instance, contractor is authorized to use a distributor only if documented traceability can be provided back to the Original Equipment Manufacturer (OEM) or USAF ESA approved source. When an award is made to a distributor, contractor shall document sequence of events within the pricing memorandum and SAMIS narrative.

1.2.4.2 P/N Requisition (A05)

Requisition input by P/N into SAMIS for action by the contractor. These requisitions will contain narrative information to assist in procurement.

1.2.4.3 Alpha-Numeric Country Code Requisition (A05)

Alpha-Numeric country code requisitions are supported by Foreign Military Financing (FMF) that expires at the conclusion of the fiscal year. Contractor shall not cancel these requisitions without USG concurrence.

1.2.4.4 Maintenance Requisitions (C0R)

1.2.4.4.1 Standard Requisitions

The USG is responsible for inputting standard maintenance requisitions and entering the USAF ESA approved source information in the SAMIS narrative. Contractor shall only award to the USAF ESA approved source as documented in SAMIS. When the USAF ESA approved source will not provide a quote, contractor shall process a CA status code and may earn a research fee. In this instance, contractor is authorized to use a distributor only if documented traceability can be provided back to the OEM or USAF ESA approved source.

When an award is made to a distributor, contractor shall document sequence of events within the pricing memorandum and SAMIS narrative.

1.2.4.4.2 Non-Standard Requisitions

Customers input non-standard C0R requisitions for support of maintenance efforts. These requisitions will contain narrative information concerning the type of effort requested.

1.3 Service Categories

The service categories are Supply, Maintenance, and Task Orders. In support of these, contractor shall perform the following at a minimum: item research, purchasing, quality assurance, and Packaging, Crating, Handling, and Transportation (PCH&T). Determination of the service category is at discretion of the FMS customer and not open to dispute.

1.3.1 Supply Support: Contractor shall be responsible for procurement of materiel, providing Price and Availability (P&A) data, and all efforts associated with supply contract actions.

1.3.2 Maintenance Support: Contractor shall be responsible for procurement of repair efforts, to include Test Teardown and Inspection (TTI), overhaul, upgrade, modification, calibration/testing, and all efforts associated with maintenance contract actions.

1.3.3 Task Order Support: Contractor shall be responsible for all efforts associated with task orders. The contractor may issue task orders on behalf of the customer for studies, analysis, site surveys, installation, familiarization training, and technical services; this list is not all inclusive. Task orders may include minimal materiel items (coordinated with Contracting

Officer) or maintenance support in conjunction with other PROS requirements.

2.0 Procurement Requirements

The contractor shall award contracts to vendors to fulfill requisitions while offering best value products and services in a timely manner, meeting small business goals, achieving competition, maintaining quality, and ensuring fair and reasonable pricing.

2.1 Contract Award Objectives

Contractor shall award contracts to vendors IAW objectives established in Table 2.1.A, but no later than contractor day 150. Contractor days are calendar days minus customer delay calendar days. Contractor shall cancel all requisitions not awarded on contractor day 151 (some exclusions apply; reference Paragraph 2.1.2). Supply requisitions will be measured from receipt of requisition (BD) to contract award (BV). Maintenance requisitions will be measured from receipt of requisition (BD) to contract award for TTI (IV), and then from the Price Quote (PQ) to the contract award for the actual repair (BV).

TABLE 2.1.A – CONTRACT AWARD OBJECTIVES

Level Of Service (LOS)

Supply Contractor Days to Award (BD to BV)

Maintenance Test Teardown and Inspection (TTI) Contractor Days to Award (BD to IV)

Maintenance Contractor Days to Award after PQ for Maintenance (PQ to BV)

HLS 21 Days 24 Days 5 Days

Urgent 40 Days 60 Days 10 Days

Routine 60 Days 80 Days 15 Days

2.1.1 Fill Fees

Fill fees shall be based on contractor’s ability to meet the contract award objectives as listed in Table 2.1.A. For maintenance requisitions, the fill fee will be associated with “Maintenance TTI Contractor Days to Award category” listed above. Delays due to any reasons listed in FAR 52.249-14 will not negatively impact the payment schedule. If contractor does not meet the contract award objectives, fill fee will be IAW Table 2.1.B.

TABLE 2.1.B - FILL FEE MATRIX

2.1.2 Exception to the 150 Day Cancellation Requirement

If a contract is able to be awarded, but not within 150 contractor days, contractor shall process an X3 status code requesting customer approval to exceed the 150 contractor day cancellation date. Contractor shall document SAMIS with a narrative explanation for the extension, the planned award date, and the customer approval. Contractor shall use this exception only when award is imminent.

CONTRACTOR DAYS

At/Before Contract 1-15 Days Award Objective

Late 16-30 Days Late > 30 Days

Fill Fee Earned 100% 90% 75% 60%

2.2 Small Business Goals

Contractor shall ensure fair and equitable consideration is given to Small Businesses (SB), Small Disadvantaged Businesses (SDB), Women-Owned Small Businesses (WOSB), Veteran-Owned Small Businesses (VOSB), Service-Disabled Veteran-Owned Small Businesses (SDVOSB), and Historically Underutilized Business Zone (HUBZone) businesses during the performance of this contract. Table 2.2.A reflects DoD small business goals. The contractor shall produce and maintain a Small Business Subcontracting Plan IAW CDRL A001 (Small Business Subcontracting Plan). Once approved, the Small Business Subcontracting Plan shall be contractually binding as a Section J attachment. The plan will be used to ensure compliance with Public Laws 95-507, 99-661, 100-180, and 100-656, along with the Federal Acquisition Regulation (FAR) and other acts or regulations that relate to subcontracting with small businesses. Although achieving individual SB goals (SDB, WOSB, VOSB, SDVOSB, and HUBZone) are important, contractor will be measured against their ability to meet the overall SB subcontracting goal. Meeting the overall small business subcontracting goal will be a factor considered for exercising option years. [Contract Data Requirements List (CDRL) A001, Small Business Subcontractor Report, Small Business Subcontracting Plan, DI-MGT-81642]

TABLE 2.2.A - INDIVIDUAL SMALL BUSINESS GOALS

Category Goal

Small Business 36.7% Small Disadvantage Business 5%

Women-Owned Business 5%

Veteran-Owned Small Business 5%

Service Disabled Veteran-Owned Small Business 3%

HUBZone 3%

2.3 Solicitation Requirements

Contractor shall obtain adequate price competition when soliciting vendor requisitions, as defined by FAR 15.403, FAR Part 6 (Competition Requirements), and the Competition in Contracting Act of 1984. The contractor shall adequately document fair and reasonable price determination IAW FAR Part 15.406-3 for all awarded requisitions, regardless of competition achieved. Requisitions for USAF standard items and LOA directed sole source are excluded from competition requirement.

Contractor shall use the following procedures to achieve competition and obtain fair and reasonable pricing:

1. When a requisition is received with documented LOA sole source within SAMIS narrative, contractor shall only obtain a quote from that source.

2. Requisitions received for AF standard items shall only be supported by the USAF ESA approve source(s) provided by the applicable Air Logistics Complex (ALC). If the ALC provides more than one approved source, contractor shall compete among provided sources.

3. When competition is not obtained, the contractor shall document contracting file to reflect all attempts made to compete the requisition and obtain a fair and reasonable price (reference Paragraph 2.3.2).

4. When customer provided a suggested source within the SAMIS narrative, the contractor shall issue a Request For Quote (RFQ) to that source. A suggested source shall not be considered a LOA directed sole source; competition is still required when a suggested source is provided.

5. Unless otherwise approved by the Contracting Officer, all requisitions awarded to vendors shall be Firm Fixed Price (FFP).

6. Consolidate like requirements under a single award when practical.

2.3.1 Contracting File

Contractor shall develop a contracting file which contains all pertinent information for each requisition from receipt of requirement through shipment. The contracting file shall be electronic and searchable. The contractor shall ensure documentation contains detailed analysis supporting award decision IAW FAR 15.406-3. The contractor shall make documentation available to the Contracting Officer or designated representative for surveillance at any time during contract performance. The contractor shall contact the Contracting Officer for assistance when a pricing review is necessary for items over $700,000.

2.3.1.1 Contractor shall submit a Data Accession List (DAL) and provide a vendor list IAW CDRL A002, Data Accession List (DAL), DI-MGMT-81453/A and CDRL A015, Source/Vendor List, Vendor List DI-MGMT-80894A. Contractor shall convey Government Purpose Rights upon the documents provided as part of these CDRLs.

2.3.2 Fair and Reasonable Price Determination

Contractor shall document fair and reasonable price determination for all awards. For those requisitions that exceed the Truth In Negotiations Act (TINA) threshold ($700,000), contractor shall submit certified cost and pricing data, unless an exemption applies IAW FAR 15.403- 1(b), for USG review.

2.3.3 Sales Tax Exemptions

Contractor shall ensure sales tax exemptions are documented appropriately according to state and federal laws. Where sales tax exemptions exist, contractor shall ensure vendor proposals or quotes received accurately reflect the exemption. If sales tax is applicable, contractor shall itemize these charges in all proposals/quotes.

2.3.4 Vendor RFQ/RFP Requirements

Contractor shall ensure the RFQs/Request For Proposals (RFPs) supplied to vendors include all applicable requirements such as, but not limited to terms and conditions, request for one-year warranty, Government Furnished Equipment (GFE)/Government Furnished Property (GFP), transportation requirements, requisition priority (HLS, Urgent, Routine), payment terms, certificate of current cost and pricing data for TINA compliance (when required), and commercial item determination.

3.0 Requisition Processing Requirements

3.1 Contractor Access to USG IT Systems

USG will provide contractor direct access to AFSAC Online and SAMIS. Contractor shall use AFSAC Online for processing all customer requisitions. Contractor shall maintain system compatibility for the duration of the contract.

3.1.1 Contractor Training

USG will provide in person training at the contractor facility prior to contractor receiving requisitions. Contractor personnel shall be fully operational with all requirements complete for inputting transactions (e.g. all DD Form 2875s, AFSAC Online/SAMIS training complete, etc.) 30 calendar days after contract award and prior to receiving any requisitions.

3.2 Activities Common to Supply and Maintenance

Contractor shall perform the following activities common to supply and maintenance requisitions:

3.2.1 Estimated Ship Date (ESD)

Contractor shall provide accurate ESDs at the time of contract award. The ESD must be posted in SAMIS with a narrative message explaining long lead times, new production, ESD slippage, or other significant information that may assist the customer in logistics planning.

3.2.1.1 For supply requisitions, contractor shall negotiate accurate ship dates with their vendors. If there is a delay with the ESD, contractor shall submit a revised ESD. Contractor shall also document SAMIS with a narrative explanation.

3.2.1.2 Maintenance requisitions consist of two phases: TTI phase determines the extent of the repair; the second phase entails the performance of the repair. Contractor shall negotiate accurate completion dates associated with the TTI portion of the contract, and accurate ship dates for the repair effort. If there is a delay with the estimated completion date for the TTI or the ESD, contractor must submit a revised ESD. Contractor shall also document SAMIS with a narrative explanation.

3.2.2 Item Eligibility

Upon receipt of a requisition from customer, contractor shall validate materiel/service being procured is eligible for PROS support by using Table 3.2.A and by researching systems such as HAYSTACK, FEDLOG, WebFLIS, D043, and Logiquest. Additionally, the following shall be addressed:

1. Contractor shall review all narratives input for suggested sources, specific procurement details/instructions, and all other required data (e.g. P/N, NSN, Commercial and Government Entity (CAGE) code, etc.). If required data is not provided, contractor shall process an X2 status code requesting information from customer.

2. All requisitions for Army (B in first position of Document Control Number (DCN)) and Navy (P in first position of DCN) are cleared by the appropriate service prior to passing to SAMIS and shall be treated as non-standard. If the Army or Navy submit a requisition that is determined to be a USAF standard item, support is only to be provided by the AF ESA approved source, unless the Primary Inventory Control Agency (PICA) is another service and the USAF is the Secondary Inventory Control Agency (SICA) (reference Table 3.2.A).

3. PROS eligible items may consist of any P/N or NSN. The contractor shall review all requisitions (Air Force (D), Army (B), and Navy (P)) against Table 3.2.B and notify USG of restricted items, when customer has not first obtained USG approval, or when further guidance is needed. Contractor shall contact the USG via X4 status code and applicable narrative when a restricted item is received. Contractor shall not take any action to procure/repair until instructions are provided by USG within the R4 narrative. Contractor shall proceed as directed within narrative and cancel or solicit a source qualified to support the item, e.g. cleared for classified procurement/repair of the item, and capability to handle hazardous materiel.

4. When Air Force (D) P/N requisitions cross reference to an AF actively managed NSN, the requisition shall be forwarded to the appropriate AF SoS for procurement.

5. When Air Force (D) P/N requisitions cross reference to an alternate P/N that is an AF actively managed NSN, and the customer inputs Transaction Advice Codes 2B, 24, 26, 34, or 39, contractor shall retain the requisition and proceed with procurement of original P/N (reference Table 3.2.C).

6. Standard NSN requisitions passed to PROS from the USG ALC shall be supported by AF ESA approved source(s) provided by the ALC within the received requisition narrative. If the ALC provides more than one AF ESA approved source, contractor shall compete among provided sources (reference Paragraph 2.3).

7. Items with limited shelf-life shall have at least 80% life remaining at the time of shipment.

8. If research results in an Interchangeable/Substitutable (I&S) P/N, contractor shall process a BH status, reflect the P/N change, and continue with procurement.

9. If research results in replacement / alternate P/N as the only means of support & is not catalogued, contractor shall obtain sufficient technical data from vendor & provide to customer for review & determination. Contractor will notify customer of replacement / alternate P/N and associated technical data by processing an X2 status code and SAMIS narrative, and await customer response. If technical data is unavailable, contractor shall advise customer and await response. If customer does not accept replacement / alternate part with or without technical data, the requisition will be CJ cancelled.

TABLE 3.2.A - ELIGIBILITY RESEARCH

Eligibility Determination

Managed by ALC

Acquisition Advice Code

(AAC)

Materiel Management Aggregation Code

(MMAC)

Expendability, Recoverability, Reparability Code (ERRC)

Nonstandard No P, V, Y, L, T, X, F and J1

EX, PU, XA, XG, XL,

XN, XT, XU, XV, XW,

XY and XZ

N or P (maintenance only)

Standard (AF PICA)2 Yes All Others All Others All others

Standard (AF SICA)3 Yes All Others All Others All Others

1If PN/NSN is identified with Acquisition Advice Code (AAC) J and the ALC provided a directed source, that source shall be used. If there is not a directed source, contractor shall treat as non-standard.

2Standard (AF PICA) are eligible for PROS support, contractor shall use AF ESA approved source(s).

3Standard (AF SICA) are eligible for PROS support and shall be openly competed.

TABLE 3.2.B –SERVICE/TYPE RESEARCH

Service/Type Item Details Action Required

Air Force Contractor shall determine nonstandard/standard classification

Contractor validates item eligibility. Standard items directed to PROS will contain USG narrative with approved sources. If item reflects USAF as SICA, no sources are provided.

Navy/Army Considered nonstandard unless item is AF managed

Navy/Army screens for eligibility prior to submission

Military Defense Equipment (MDE) Restricted Contractor notifies USG using X4 status code

Significant Military Equipment (SME) Restricted Contractor notifies USG using X4 status code

Hazardous Restricted (as defined in Federal Standard 313C)

Contractor notifies USG using X4 status code

Explosive Restricted Contractor notifies USG using X4 status code

Classified Restricted Contractor notifies USG using X4 status code

Night Vision Goggles / Intensifier Tubes Restricted Contractor notifies USG using X4 status code

Munitions Restricted Contractor notifies USG using X4 status code

Cartridge Actuated Devices (CAD) / Propellant Actuated Devices (PAD)

Restricted Contractor notifies USG using X4 status code

Ozone Depleting Agents Restricted Contractor notifies USG using X4 status code

Military CAGE only for standard items Restricted Rejected to country Foreign CAGE only Restricted to only use vendors with US CAGE codes Contractor can support using US CAGE code

Government Furnished Equipment Contractor shall determine if GFE required prior to contract award

Contractor notifies USG using X4 status code & requests approval to continue procurement / repair

3.2.2.1 Non-Standard Item: An item not currently managed by USAF, as seen in Table 3.2.A. Contractor shall ensure items meet all other identified eligibility criteria IAW Table 3.2.B and take appropriate action. The contractor shall compete all non-standard requisitions. Source qualification for non-standard items shall be accomplished IAW Paragraph 4.1.5.

3.2.2.2 Standard Item: An item currently managed by USAF, as seen in Table 3.2.A and has the USAF as the PICA. If research identifies USAF as the SICA and Army or Navy is the PICA, contractor shall continue support using a qualified source. Source qualification for standard items shall not be accomplished under this contract. AF standard items shall only be supported by USAF ESA approved source(s) provided by the ALC.

3.2.2.2.1 For AF standard item requisitions, contractor shall only use current ESA qualification requirements and qualified source(s) provided by applicable ALC. If customer submits a sole source LOA which contains a different source than USAF ESA approved source, contractor shall notify USG by processing an X4 status code/narrative in SAMIS.

USG will make determination if source identified in LOA is qualified and able to be used for support. USG will provide response within R4 status code/narrative, contractor shall proceed accordingly.

3.2.2.2.2 When item cross references to a Defense Logistics Agency (DLA), Federal Aviation Administration (FAA), or General Services Administration (GSA) standard item, contractor shall use systems such as HAYSTACK, FEDLOG, WebFLIS, and/or Logiquest to find a source(s) with documented traceability to OEM, and proceed with procurement.

3.2.3 IUID

The contractor shall use MIL-STD-130N, change 1 criteria and DFARS 252.211-7003 Item Unique Identification and Valuation (DEC 2013) to determine if IUID is applicable for standard item supply support requirements; IUID does not apply to maintenance or non-standard supply requirements at this time. When ALC provides USAF ESA approved source, SAMIS narrative will reflect information concerning the IUID applicability. When IUID is required and the source is not able to comply, contractor shall process a CY status code.

3.2.4 Requisition Transaction Advice Codes

Contractor shall follow instructions for certain requisition transaction advice codes as seen in Table 3.2.C.

TABLE 3.2.C - REQUISITION TRANSACTION ADVICE CODES

Item Type Transaction Advice

Code(s) Explanation

Non-standard 2B, 24, 26, 34 and 39 • Only requested item will suffice, do not substitute.

• Contractor shall compete and use qualified source.

Standard 2B, 24, 26, 34 and 39 • Only requested item will suffice, do not substitute.

• If NSN contains more than one P/N, contractor shall continue with support using only FEDLOG/Haystack sources.

• If NSN is AF managed and contains only one P/N, contractor shall CY cancel requisition to the managing ALC.

• If NSN is not managed by AF and contains only one P/N, contractor shall continue support using FEDLOG/Haystack or qualified source.

Non-standard or Standard 6P • Represents new and unused materiel. Contractor may offer materiel in another condition, but customer must accept prior to contract award. If new and unused is not accepted by customer, requisition shall be cancelled.

3.2.5 Price Quote (PQ)/Price Revision (PR)

3.2.5.1 Price Quote (PQ): PQ shall be FFP. Contractor shall ensure all costs (vendor materiel, estimated vendor PCH&T, and contractor fill fee) have been included in the price to avoid any price adjustments after contract award. For unscheduled maintenance requisitions, the prime contractor may include PCH&T costs in the quote. For any costs added by contractor, profit is not allowed. Contractor shall provide quote by posting a PQ status code and associated price of materiel/service in SAMIS. Customer price approval must be obtained IAW Table 3.2.D. Quotes shall be valid for 60 calendar days and available for customer approval for 60 calendar days or as offered by vendor. In rare instances, quote validity may be less than 60 calendar days. In these cases contractor shall notify customer to expedite approval.

3.2.5.2 Price Revision (PR): The following list (not all inclusive) describes situations when contractor shall submit a PR:

1. Changes in requisition quantities

2. Vendor transportation costs vary from original quote (PQ)

3. Prime contractor unscheduled maintenance transportation costs vary from original quote

(PQ)

4. Vendor offers Minimum Order Quantity (MOQ)

Customer approval may be required depending on the price revision value defined in Table 3.2.D. Unanticipated costs shall be billed as actuals, profit is not allowed.

3.2.6 Quantity Adjustment

Contractor shall respond to a one time only SAMIS narrative request from customer for quantity change prior to PQ (for no additional fee). Contractor shall solicit for a new quote and inform customer through SAMIS narrative of revised quantity. Upon receipt of quote, contractor shall process a PQ signifying adjusted quantity. If request for quantity change is received after PQ, contractor shall instruct customer to cancel and resubmit for correct quantity. If customer chooses to cancel, contractor shall earn a cancellation fee.

3.2.7 MOQ

Contractor shall provide information to customer via X2 message requesting approval for MOQ buy, to include associated price (not official quote), or request customer submit an AC cancellation. If customer rejects MOQ buy or if X2 timeframe (90 calendar days) is exceeded, SAMIS generates an auto cancellation (AC4) request and contractor shall process cancellation. If customer accepts MOQ requisition and cancels after PQ has been posted in SAMIS, cancellation fee charged to customer shall be associated with the accepted MOQ quote.

3.2.8 Not To Exceed (NTE)

Customer may provide NTE value at time of requisition input. NTE value shall only account for materiel value. If quote is received within the NTE value, contractor is not required to obtain customer price approval (X5). If quote is received and exceeds the NTE value, contractor shall obtain customer price approval (X5). Contractor shall not proceed with award until financial approval (OK) is received via SAMIS.

3.2.9 Price Determination

To preclude unexpected cost or price increases to customer, contractor shall obtain concurrence from customer prior to award IAW Table 3.2.D.

TABLE 3.2.D -- PRICE DETERMINATION

IF AND

Supply requisition is between $3,000 and $150,000 Exceeds last procurement price by 50% or more from any source (e.g., USG Data Systems, D043, contractor generated data); adjusted to reflect current year dollars

Supply requisition is greater than $150,000

Maintenance requisition is greater than $100,000

Supply requisition is greater than $3,000 No procurement history exists

Price revision is submitted for a Supply requisition above $3,000

Price revision exceeds previously approved PQ by 15% or more

Price revision is submitted for maintenance requisition that exceeds previously approved PQ by 15% or more Maintenance requisition; Beyond Economical Repair (BER) - If estimated cost of a maintenance requisition, including labor and material, is determined to be greater than 75% of a new and current acquisition item cost

Supply/Maintenance requisition incur termination costs due to customer cancellation after contract award PQ exceeds customer submitted NTE value

3.2.10 Expedite

3.2.10.1 Expediting requisitions prior to contract award (before IV/BV): When customer requests a change in the priority of their requisition by processing an AM transaction and indicating the new desired LOS, contractor shall confirm modification with a BK status code or reject with a B2 status code. Contractor's fill fee will be adjusted to reflect the new LOS.

3.2.10.2 Expediting requisitions after contract award for urgent and routine requisitions (after IV/BV): When customer submits an AM transaction with narrative explanation requesting contractor improve the estimated completion date for TTI or ESD for the actual repair or supply effort, and contractor can improve the ESD, contractor shall confirm the transaction with a BK status code and post the improved ESD within 10 calendar days. If ESD cannot be improved, contractor shall reject transaction with a B2 status code and post a narrative explanation within 10 calendar days. An expedite fee shall be assessed in addition to the applicable fill fee, regardless of the outcome. USG may determine, however, that an Expedite Fee cannot be earned if the above timeframes are not met. NOTE: Customers will not be permitted to request Expedites for requisitions in the HLS category. Contractor shall treat HLS requirements in the most expeditious manner possible from receipt of requisition (BD) through shipment (AS3).

3.2.11 Request for USG Technical Assistance

3.2.11.1 A current, signed and certified copy of the MILITARILY CRITICAL TECHNICAL DATA AGREEMENT, DD Form 2345 will be required by the ALC prior to honoring any requests for technical data related to PROS requisitions. The contractor shall send all requests for Technical Orders or other technical data such as drawings or schematics with signed DD2345 to USG; USG will coordinate and forward request to the applicable ALC.

3.2.11.2 The contractor shall direct requests for technical assistance on specific end items to the applicable Technical Coordination Group (TCG).

3.2.12 Support During Contingency Efforts

If a customer has been assigned a contingency project code by Defense Security Cooperation Agency (DSCA), the customer will process an AM transaction to notify contractor and, if required, provide any priority designator code changes. Contractor shall surge efforts to ensure identified requisitions are worked expeditiously but without impact to other customers’ requirements. Contractor may assess a Contingency Operations Fee and shall inform customer prior to proceeding with requisition processing.

3.2.13 Cancellations

3.2.13.1 Contractor Initiated Cancellations - Research Fee Earned Contractor shall cancel requirements which cross-reference to standard NSNs or due to inability to locate a qualified source. When customer submits a requisition with missing or inaccurate data, contractor shall make all attempts to obtain required information from customer by submitting an X2 status code requesting clarification, prior to cancelling the requisition.

3.2.13.1.1 CY Cancellation: When an A05 P/N requisition cross-references to an actively managed standard AF NSN, as described in Paragraph 3.2.2, contractor shall pass the requisition to the appropriate AF SoS using a CY cancellation code to include the NSN information within SAMIS narrative. Contractor may earn a research fee.

3.2.13.1.2 CJ Cancellation: When an A01 NSN requisition, or acceptable substitute, cross-references to an actively managed standard AF NSN, as described in Paragraph 3.2.2, contractor shall pass the requisition to appropriate AF SoS using a CJ cancellation code to include the NSN information within SAMIS narrative. Contractor may earn a research fee.

3.2.13.1.3 Obsolescence: When the OEM/OEM approved source identifies an item as obsolete (no stock or replacement exists), contractor shall maintain supporting documentation from the OEM. Contractor shall notify customer through SAMIS narrative that item is no longer available and process a CJ cancellation code. Contractor shall provide option of task order support if reverse-engineering capability exists. Contractor may assess a research fee.

3.2.13.1.4 GY Cancellation: When a C0R requisition cross-references to an actively managed standard AF repair and AF maintenance capability exists, contractor shall obtain disposition instructions from customer and process a GY cancellation code. Contractor may assess a research fee.

3.2.13.1.5 D3 Cancellation

3.2.13.1.5.1 When customer fails to respond to an X2 status code prior to posting quote, SAMIS will generate an auto cancellation (AC4) request on day 91. Contractor shall accept cancellation by processing a D3 cancellation code within 14 calendar days. If customer response is insufficient, contractor shall process another X2 seeking further clarification from customer. Ultimately, if customer cannot provide sufficient information, contractor shall process an X4 requesting USG assistance. If USG confirms appropriate efforts were made by contractor, USG will generate an AC3. Contractor shall accept cancellation by processing a D3 cancellation code within 14 calendar days. Contractor may assess a research fee.

3.2.13.1.5.2 When customer fails to respond to an XH request for warranty approval prior to a quote being posted, SAMIS will generate an auto cancellation (AC4) request on day 61.

Contractor shall accept cancellation by processing a D3 cancellation code within 14 calendar days. Contractor may assess a research fee.

3.2.13.1.6 CA Cancellation: When USAF ESA approved source for a standard item fails to respond to a request for quote within 150 calendar days, contractor shall process a CA cancellation code on contractor day 151. Contractor may assess a research fee.

3.2.13.1.7 CU Cancellation: When a requisition is received with the same non-standard NSN or P/N previously CG cancelled, contractor shall attempt to locate a qualified source & document actions taken. In the event a qualified source cannot be located, contractor shall cancel the requisition by processing a CU cancellation code. Contractor may assess a research fee.

3.2.13.2 Contractor Initiated Cancellations - No Fee Earned

3.2.13.2.1 When contractor is unable to award contract due to inability to locate a qualified source (although all required information has been provided by customer), contractor shall process a CG cancellation on contractor day 151. No research fee is earned.

3.2.13.3 USG Initiated Cancellations

The below paragraphs describe when the USG will process an automatic cancellation request, resulting in research/cancellation fees. Contractor must respond to the cancellations (AC4s) within 14 calendar days.

3.2.13.3.1 X2 (Request Additional Information) Cancellation

If customer does not respond to X2 status code/narrative within 90 calendar days, SAMIS will generate an auto cancellation (AC4) request on day 91. Contractor shall respond to the cancellation request within 14 calendar days after receipt as follows:

1. Post D3 status code if requisition does not contain a quote; research fee applies.

2. Post BQ status code if requisition contains a quote; cancellation fee applies.

3. Post X6 status code if requisition is on contract advising customer of termination costs.

4. Post B8 status code to deny cancellation if customer’s response is received at the same time as the AC4 cancellation request.

3.2.13.3.2 X5 (Request Customer Price Approval) Cancellation

If customer does not respond to the X5 status code/narrative within 60 calendar days, SAMIS will generate an auto cancellation (AC4) request on day 61. Contractor shall respond to the cancellation request within 14 calendar days of receipt as follows:

1. Post BQ status code if requisition contains a quote; cancellation fee applies.

2. Post X6 status code if requisition is on contract advising customer of termination costs.

3. Post B8 status code to deny cancellation if customer’s response is received at the same time as the AC4 cancellation request.

3.2.13.3.3.1 X6 (Request Customer Approval of Termination Costs) Cancellation

3.2.13.3.3.2 Supply/Maintenance – After Contract Award

In response to cancellation request after contract award, contractor shall advise vendor and request termination costs. Contractor shall request customer disposition instructions (maintenance requisitions only) and communicate total costs incurred for termination (vendor costs, contractor cancellation fee, and vendor transportation charges) using the X6 status code and SAMIS narrative. Customer has 30 calendar days to respond. If no response is received, SAMIS will generate an R6 status code/narrative on day 31. Contractor shall respond to the initial cancellation request within 14 calendar days of receipt as follows:

1. Post B4 status code to accept cancellation, proceed with vendor contract termination, and ship materiel back to country (only applies to maintenance requisitions).

2. Post B8 status code to reject cancellation if termination costs are equal to or exceed PQ posted in SAMIS; contractor shall advise customer in narrative and proceed with procurement.

3.2.13.3.4 X8 (Request Customer Ship Asset) Cancellation

Contractor shall request customer ship asset to warehouse or vendor by processing an X8 status code and narrative. Customer has 120 calendar days to comply with the request. If customer fails to comply, SAMIS will generate an auto cancellation (AC4) request on day 121.

Contractor shall respond to the cancellation request within 14 calendar days of receipt as follows:

1. Post B8 status code to reject cancellation if materiel has been received or proof of shipment provided after the AC4 cancellation has processed.

2. Post BQ status code to accept cancellation if materiel is not received or proof of shipment has not been provided.

If materiel arrives after the cancellation has been accepted, contractor shall generate an XDW freight transaction.

3.2.13.3.5 X9 Delay – (Request Customer Disposition Instructions) Cancellation If customer does not respond to the X9 status code/narrative within 30 calendar days, SAMIS will generate an auto cancellation (AC4) request on day 31 with narrative directing contractor to process a B4 status code and ship asset back to customer. Contractor shall process B4 status code, proceed with termination, and ship the asset back to customer.

3.2.13.3.6 XH (Request Customer Approval of Warranty Terms and Conditions) Cancellation Contractor shall advise customer with an XH status code/narrative when a non-standard warranty (other than one year) is offered. Customer has 30 calendar days to respond. If no response is received, SAMIS will generate an auto cancellation (AC4) request on day 31.

Contractor shall respond to the cancellation request within 14 calendar days of receipt as follows:

1. Post D3 status code if requisition does not contain a quote; contractor may assess a research fee.

2. Post BQ status code if requisition contains a quote; contractor may assess a cancellation fee.

3.2.13.4 USG Assisted Cancellations

There are instances when the contractor may request assistance in cancelling a requisition.

Contractor shall ensure all other avenues for cancellation have been considered. Contractor shall process an X4 status code requesting USG assistance and provide narrative explanation for the request. USG will review and approve on a case-by-case basis. If approved, USG will provide a cancellation (AC3) and respond to the X4 status code. The contractor shall respond with a BQ cancellation code within 14 calendar days.

3.2.13.5 Customer Initiated Cancellations

Contractor shall accept customer cancellation requests (AC1) prior to and after contract award;

research, termination, and cancellation fees may apply. Contractor shall respond to customer cancellation requests within 14 calendar days.

3.2.13.5.1 Contractor may assess a cancellation fee against supply and maintenance requisitions if customer initiates a cancellation after a quote has been processed in SAMIS.

If the customer’s case/line has insufficient funds to cover the provided quote, customer may request an extension to the quote validity timeframe. Extension is at sole discretion of contractor. If extension is not granted, the contractor shall process cancellation.

3.2.13.5.2 Contractor may assess a research fee for cancellations after solicitation phase (BZ) has been initiated, but before a quote (PQ) has been processed in SAMIS.

3.2.13.5.3 Contractor may assess a cancellation fee on package buy requisitions when customer cancels an entire package buy after a quote has been processed in SAMIS.

3.2.13.5.4 Termination charges shall be assessed when customer cancels a requisition (including task orders) after contract award has been processed in SAMIS. Termination costs will be reimbursed IAW FAR 52.249-2 Termination for Convenience of the Government (Fixed-Price) and FAR 52.249-6 Termination (Cost Reimbursement). Contractor shall take immediate action to mitigate/minimize termination costs upon cancellation notification from customer. Contractor shall negotiate termination costs which will be subject to customer approval. Customer may decide to continue procurement and request contractor reject.

3.2.13.5.4.1 Cancellation and termination charges combined shall not exceed charges for materiel on contract plus the cancellation fee.

3.2.14 Contractor shall abide by all End-Use Monitoring policies and regulations in AFMAN 23- 110 and Security Assistance Management Manual (SAMM) DOD 5105.38-M, Chapter 8.

3.3 Requirements Unique to Supply Support

3.3.1 Package Buys

Package buys shall be treated as a routine supply requisition and constitutes a single buy. The number of line items identified in the narrative of the requisition may range from two to ten;

all items must be available and purchased from a single vendor. All package buys will reflect PKGBUY in the stock number field and a unit of issue of PK. Standard items and maintenance requirements are excluded from package buys. The contractor shall review all package buy requisitions. If any discrepancies exist, contractor shall notify the customer and request clarification via an X2 message. If a single item within the package buy is not available from the identified source or if an item is determined to be standard, the item shall be removed and customer notified within 7 calendar days. Customers are not permitted to adjust any line item within the package buy after a quote has been processed in SAMIS. The fill fee will be based on the sum total of line item materiel costs.

3.3.2 P&A

Contractor shall provide P&A data for supply requisitions via X5 status code no later than 90 contractor days after receipt of request or process a no fee cancellation (NF) to complete the requisition. P&A shall be valid for 60 calendar days, or as dictated by the vendor. Contractor shall inform customer via SAMIS narrative of the vendor price, fill-fee, program fee, and estimated availability date. Upon customer’s acceptance of P&A, customer will provide a replacement procurement requisition and cross reference the P&A requisition number in SAMIS narrative. Contractor shall no-fee (BQ/NF) cancel the original P&A requisition after a PQ status code has been established on the replacement requisition. If customer response is not received within 60 calendar days of P&A notification, SAMIS will generate an auto cancellation (AC4) request on day 61. Contractor shall accept cancellation by processing a

BQ cancellation code and submit interim payment request for P&A fee within 30 calendar days.

3.4 Requirements Unique to Maintenance Support

The USG is responsible for inputting standard repair requisitions; the customer is responsible for inputting non-standard repair requisitions. Contractor shall maintain documentation, which may include photos (excludes classified items) of quantity and condition of materiel when received from customer. Contractor shall track all shipments from and to all locations using XD transactions. All documentation concerning the maintenance effort, including but not limited to nonproprietary test and fault data, and final test data shall be retained in contractor’s documentation and provided upon request. Contractor shall provide the following maintenance activities as required:

3.4.1 Maintenance/Repair Quote

TTI determines the scope of the repair effort. Contractor shall provide customer a quote for TTI (IQ) on all maintenance requisitions. Upon completion of TTI, contractor shall provide a quote (PQ) for repair, overhaul, modification, upgrade, test, or calibration of an item to the customer.

3.4.2 Shipment of Maintenance Items

Contractor shall advise customer when a repair contract has been awarded (IV/BV) and direct the customer to ship materiel by processing an X8 status code.