Attachment 2 Draft PWS 1Oct2024.pdf

PARTS AND REPAIR

ORDERING SYSTEM

(PROS 7)

PERFORMANCE WORK

STATEMENT (PWS)

AIR FORCE SECURITY ASSISTANCE

COOPERATION DIRECTORATE

01 October 2024

Attachment 1: PWS, dated 01 October 2024

1.0 DESCRIPTION OF SERVICES

1.1 ORGANIZATIONAL SUMMARY

1.2 SCOPE OF WORK

1.3 PRIMARY OBJECTIVES

2.0 GENERAL PROGRAM REQUIREMENTS

2.1 MANAGEMENT

2.2 MEETINGS AND REVIEWS

2.3 ADDITIONAL PROGRAM SPECIFICS

2.4 COMMERCIAL TRANSACTION AND TASK ORDER REQUIREMENTS

2.5 RECEIPT OF COMMERCIAL TRANSACTION

2.6 CONTRACT AWARD AND SHIPMENT OBJECTIVES

2.7 SERVICE CATEGORIES

2.8 VENDOR RFQ/RFP REQUIREMENTS

2.9 VENDOR ON-RAMPING

2.10 DORMANT STATUS

2.11 OFF-RAMPING

2.12 DISTRIBUTOR UTILIZATION

2.13 PARTNERING

2.14 OBSOLESCENCE

2.15 SMALL BUSINESS GOALS

2.16 QUALITY ASSURANCE (QA) MANAGEMENT

2.17 VENDOR PACKAGING, CRATING, AND HANDLING (PC&H)

2.18 TRANSPORTATION

2.19 TECHNICAL DATA

2.20 RISK MANAGEMENT

APPENDIX A – ACRONYMS

APPENDIX B – GLOSSARY

Table of Contents

1.0 DESCRIPTION OF SERVICES

1.1 Organizational Summary

The Air Force Security Assistance and Cooperation (AFSAC) Directorate located at Wright-Patterson Air Force Base, OH manages the Parts and Repair Ordering System (PROS) contract that provides Commercial Buying Services (CBS) for Non-Standard and Difficult to Support Standard Items. The AFSAC PROS contract is a performance-based service acquisition providing supply, maintenance, and task order support services. This tri-service capable contract will support Air Force, Navy, and Army Foreign Military Sales (FMS) customers. Customer service is paramount to the success of the PROS program. It is imperative that all involved parties strive to meet the needs of the FMS customer whenever possible. Successful procurement, repair servicing and task order completion help build and strengthen existing strategic foreign partnerships and bolster the warfighting and defense capabilities of the partner nation and the United States.

1.2 Scope of Work

1.2.1 The PROS program provides FMS defense service support for supply, repair, and task orders to eligible countries in support of their defense articles. Arms Export Control Act (AECA) section 47 (22 U.S.C. 2794) defines the terms “defense article” and “defense service.” The U.S.

Munitions List (22 CFR part 121) designates specific items that fall into these categories as identified in the Security Assistance Management Manual (SAMM) C4.4. The Contractor shall adhere to Logistics Support (SAMM C4.4.3) by operating as the CBS (as defined in SAMM C6.4.4) to support FMS customer requirements for Non-Standard and Difficult to Support Standard Items.

1.2.2 PROS 7 is a single-award Indefinitely Delivery, Indefinite Quantity (IDIQ) contract with Firm Fixed Price (FFP) fill prices that administers Commercial Transactions received from SAMIS, MISIL, and CISIL (SMC). FMS Customers input requisitions through SMC. SMC will pass the requisition to PROS contractor as the CBS. Under the PROS FMS-Commercial Sales Hybrid Construct, a requisition input through SMC will transfer to AFSAC Online (AOL)/Contractor Workbench (CWB) to the Prime Contractor and becomes a Commercial Transaction. The Commercial Transaction is awarded between the PROS Prime Contractor and the successful Vendor after FMS Customer, or FMS Customer agent, source selection/price approval.

1.2.3 The PROS 7 Period of Performance (PoP) consists of a maximum ten-year ordering period followed by a five-year residual close-out performance period. The ten-year ordering period consists of a five-year base period and five one-year unilateral options. The United States Government (USG) reserves the right to exercise the options as set forth in Section B of this contract. The residual performance period begins after the ordering period has ended and is prior to evidence of physical completion on the contract. After evidence of physical completion (FAR

4.803 and 4.804), the contract closeout can begin in accordance with PWS 2.1.2 Contract Data Requirements List (CDRL) (CDRL AXXX).

1.2.4 PROS Prime Contractor (henceforth referred to as Contractor, unless otherwise stated) shall serve as the Source of Supply (SoS) to provide logistics support for defense articles and defense services by contracting through the Department of Defense (DoD), Defense Security Cooperation Agency’s (DSCA) Implementing Agency (IA), AFSAC, to fulfill Commercial Transaction requirements on behalf of eligible foreign countries. DoD procurements for FMS use standard Federal Acquisition Regulation (FAR) contract and contract administration practices except where deviations for FMS are authorized in the Defense Federal Acquisition Regulation Supplement (DFARS). IAs may procure from foreign sources as required to conduct Materiel Standards (MS) acquisitions in accordance with the DFARS under the same acquisition and contract management procedures used for other defense acquisitions. IAs should refrain from entering into such sales arrangements for equipment not in the U.S. inventory unless DSCA and the Strategy, Plans, and Policy Directorate (SPP), and Office of the General Counsel (OGC) have approved an exception.

1.2.5 Contractor shall adhere to MS (as defined SAMM C4.4.2). It is DoD policy that defense articles sold under FMS programs should reflect favorably upon the USG. Defense articles offered and sold under FMS are new or unused or, because of refurbishment, possess original appearance insofar as possible and, as a minimum, have serviceability standards prescribed for issue to U.S.

Forces. If the customer desires exclusively new equipment, the Commercial Transaction requirement. If the customer wishes to purchase “as is” (no assurance of serviceability), this should be stated in the Commercial Transaction requirement. In addition to full disclosure of any item condition, the customer shall be informed of unusual safety or environmental risks known at the time of sale. Any changes to customer requested condition and/or unusual circumstances, such as safety or environmental risks, shall require customer approval.

1.2.6 Contractor shall support systems that are not used by U.S. Forces, including items that were never adopted by U.S. Forces. Support is provided for these items when mutually satisfactory arrangements are made and implemented LOA with eligible Case and Line. Effort is made to support Non-Standard Items, whether acquired commercially, through FMS, or Non-U.S. Origin when this effort serves U.S. interests (SAMM C4.4.3.2).

1.2.7 Contractor shall adhere to Logistics Support (SAMM C4.4.3). The DoD considers the support of U.S. origin defense articles critical to the success of the Security Assistance (SA) program.

Systems in use with U.S. Forces are supported through the DoD procurement system as a Standard Item. Support items that are stocked, stored, and issued due to common application with end items in use should be provided even though the end items may have been acquired commercially or system support buyout is complete.

1.2.8 Contractor shall adhere to Logistics Support to FMS customer requirements for difficult to support standard items, when DoD organic capability or contractual supportability is not available or timely.

1.2.9 Contractor shall adhere to Section J, Attachment 6, Specifications and Standards.

1.2.10 Contractor shall have Subject Matter Experts (SME) not limited to technical staff, engineering, and logisticians, to identify vendor support that delivers innovative strategies for rapid design, qualification and deployment of sustainment solutions which leverage new manufacturing materials, processes, and components. Contractor shall deliver status report on SME capabilities and innovative strategies (CDRL AXXX).

1.2.11 Contractor shall deliver all data and media generated or received under this contract, as an annual delivery and for contract closeout (CDRL AXXX, CDRL AXXX), in a usable format to USG (CDRL AXXX). Contractor shall deliver all data ordered by the Government from the Data Accession List (DAL) within 5 days. Contractor shall ensure all data and media is accurate, complete, legible, and usable. Data includes, but is not limited to: Commercial Transaction status, task order status, billing, technical data, re-procurement, Help Desk Support, and engineering data/drawings. Appropriately marked, unlimited rights technical data shall be delivered for all Operational, Maintenance, Installation, and Training (OMIT), to include form, fit, and function data (CDRL AXXX).

1.3 Primary Objectives

1.3.1 Contractor shall be the USG CBS for supply, repair, and task orders for all eligible items under the PROS 7 contract. The primary objectives of the contract are Commercial Transaction Transparency, Beyond Economical Repair (BER)/Beyond Physical Repair (BPR) support, accurate and timely communications and information to both PROS PMO and FMS customers, low cancellation rate, and Quality Assurance (QA).

1.3.2 Contractor shall process Part Number (P/N) and/or National Stock Number (NSN) requisitions electronically via USG Information Technology (IT) provided systems. 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 process the requisition through AFSAC Online (AOL)/Contractor Workbench (CWB) to pass to SMC within 2 business days.

1.3.3 The contractor shall set an Estimated Shipment Date (ESD) within 10 calendar days of the date given by the sub vendor. This date shall be entered into the SMC and become the Original Estimated Ship Date (OESD).

1.3.4 For maintenance and repairs, the Estimate Completion Date (ECD) shall be considered the OESD for tracking Test, Tear down, and Inspection (TTI). For repair efforts after TTI, PWS paragraph 1.3.3 applies.

1.3.5 Customer Communications:

1.3.5.1 The contractor shall, utilizing the government provided IT system, inform the FMS customer upon milestone events of the procurement or repair process without the customer requesting information. Examples of these milestones and expected response times are listed below:

Contract Award: FMS Customer should be notified via SMC of contract award along with cost and the OESD of the product/service within three (3) business days of contract award.

Changes to contract: FMS Customer should be notified via SMC of any changes to the price or OESD of the contracted product/service within five (5) business days of the change.

Questions from contractor to FMS customer: Contractor shall automatically notify FMS customer at the 30/60/90 calendar days for any question to the FMS customer that has not received a response.

MICAP Status: Contractor shall provide updates to procurement or repair status for all MICAP procurements at 30/60/90 calendar days intervals.

1.3.5.2 Timely, accurate and meaningful communication with the FMS customer is critical not only to customer satisfaction, but in many instances critical to mission success. Status updates and responses to FMS customer inquiries shall include, at the minimum, if applicable, a thorough explanation of all changes to cost or shipment dates, to include the reason for the change. Canned responses or those that fail to address the FMS customers inquiry will not meet the criteria of “meaningful.”

1.3.6 Fill Fee: Contractor will receive 100% of the program fill fee when shipping the item within three (3) calendar days of the OESD as described in PWS paragraph 1.3.3.

Shipments occurring prior to three (3) calendar days of the OESD will receive a 110% fill fee.

Shipments occurring after 3 calendar days from the OESD shall receive 90% of the fill fee.

1.3.7 Service Summary:

1.3.7.1 Contractor shall be measured against the following criteria in the below Service Summary.

Contractor shall deliver and maintain status if Service Summary (CDRL AXXX)

TABLE 1.3.7.A - SERVICE SUMMARY

PERFORMANCE CRITERIA SURVEILLANCE METHOD

SS-1 Communication Shall respond to customer questions and provide required information IAW PWS paragraph 1.3.5

Sampling reported through SMC, and supported by 100% surveillance

SS-2 Contractor Cancellation Rate

Shall not exceed 20% Cancellation Rate X = Total Cancel (current month) / Total Commercial Transactions (sub 180 days)

Sampling reported through SMC, and supported by 100% surveillance

SS-3 Quality Shall not exceed 1 valid Corrective Action Report (CAR)/month

Sampling reported through SMC, and supported by 100% surveillance

SS-4 Information Accuracy (ESD and Invoicing Accuracy)

Shall not exceed more than (5) invoicing errors per month.

Shall meet delivery of OESD no less than 75% of the time

Sampling reported through SMC, and supported by 100% surveillance

2.0 GENERAL PROGRAM REQUIREMENTS

2.1 Management

2.1.1 Contract Start-Up

Contractor shall ensure smooth start-up to preclude disruption of customer service. Contractor shall be prepared to receive and process requisitions no later than 30 calendar days after contract award.

2.1.2 Contract Closeout

Contractor shall develop and implement a Closeout Plan for USG approval in accordance with FAR 4.804, Closeout of Contract Files. The Contract Closeout shall begin at physical completion (FAR 4.803 and 4.804) of all residual performance, where the Contractor has performed all services, and the USG has accepted these services (CDRL AXXX).

2.1.3 Transition Plan

Contractor shall collect, manage, and store all PROS procurement data and media and document procedures to mark/identify and separate the data for delivery upon contract closeout. At contract closeout, contractor shall transfer, in an orderly manner, all USG provided, and PROS developed data and media to the USG and follow-on contractor as determined by the PROS Program Management Office (PMO). Contractor Transition Plan shall address areas deemed necessary to ensure a seamless transition such as: milestone schedule of major events, transition assistance, transfer of CRM in Microsoft™ Office compatible format, transfer of price notification matrix in Microsoft™ Office compatible format, data transfer (technical and procurement), handling open Commercial Transactions, and resolution of open Supply Discrepancy Reports (SDR) (CDRL

AXXX).

2.1.4 Inspection of services pertains to all information required by or obtained under this contract.

Contractor shall provide this information as requested by the USG and in accordance with FAR 52.246-3 (Inspection of Supplies-Cost Reimbursement) and FAR 52.246-4 (Inspection of Services-Fixed Price).

2.2 Meetings and Reviews

Meetings may be held virtually or in-person at a USG facility, a commercial conference center, or the Contractor facility on a rotational basis, as determined by the USG. Follow- up or out of cycle meetings may be held periodically throughout the duration of PROS 7 to assess performance against the requirements, reinforce partnering principles, and/or address customer support. Attendees at all meetings shall be documented with designated affiliation, to include country represented, USG employee, or Contractor employee. All travel costs shall be incorporated into Fill Prices.

2.2.1 Post-Award Kickoff Meeting

Within ten (10) days of contract award, Contractor shall host a kickoff meeting at a mutually agreed upon facility. Discussion items at this meeting shall include contract and PWS requirements, financial and invoicing procedures, security and system access, transition planning, and QA activities. The kickoff meeting shall be a duration of 4 working days. The specific dates, times, location, attendance, and discussion items for the kickoff meeting shall be set at contract award. Contractor shall provide PROS PMO meeting minutes within five calendar days following such visits (CDRL AXXX).

2.2.2 Business Meeting/Site Visit

Contractor shall, at a minimum, host four business meetings/site visits per year to present and review program status, performance metrics, major open issues, and discuss topics identified by

USG. Meetings shall be conducted quarterly, with each occurrence lasting 2 days. At USG discretion, these meetings may be held virtually or at the Contractor’s facility. Contractor shall produce presentation materials as well as complete and accurate minutes to capture the proceedings (CDRL AXXX). Contractor shall provide PROS PMO meeting minutes within five calendar days following such visits (CDRL AXXX).

2.2.3 Program Management Reviews (PMRs)

2.2.3.1 Contractor shall host two U.S. Air Force Customer PMRs or equivalent meetings per year to present and review program status, performance metrics, major open issues, improvement initiatives, business and marketing opportunities, and discuss topics identified by USG and Customer. Contractor shall provide USG-only briefing and discussions. Customers shall be afforded the opportunity for one-on-one reviews and discussion as part of corrective action for a valid customer complaint with significant impact as determined by the PMO. Meetings will be conducted semi-annually, with each occurrence lasting 2 days. At USG discretion, these meetings may be held virtually, at a USG facility, a commercial conference center, or the Contractor facility. Attendance shall be at USG discretion. Any Contractor costs associated with PMR Meetings shall be incorporated into Fill Prices. Contractor shall produce presentation materials, Data Item Description (DID) compliant Status Reports for USG approval, as well as complete and accurate minutes to capture the proceedings (CDRL AXXX). Contractor shall provide PROS PMO meeting minutes within five calendar days following such visits (CDRL

AXXX).

2.2.3.2 Contractor shall host up to two U.S. Navy Customer PMRs or equivalent meetings per year to present and review program status, performance metrics, major open issues, improvement initiatives, discuss business and marketing opportunities, and discuss topics identified by USG and Customer. Contractor shall provide USG-only briefing and discussions. Customers shall be afforded the opportunity for one-on-one reviews and discussion as part of corrective action for a valid customer complaint with significant impact as determined by the PMO. Meetings will be conducted semi-annually, with each occurrence lasting 2 days. At USG discretion, these meetings may be held virtually, at a USG facility, a commercial conference center, or the Contractor facility. Attendance shall be at USG discretion. Any Contractor costs associated with PMR Meetings shall be incorporated into Fill Prices. Contractor shall produce presentation materials, Data Item Description (DID) compliant Status Reports for USG approval, as well as complete and accurate minutes to capture the proceedings (CDRL AXXX). Contractor shall provide PROS PMO meeting minutes within five calendar days following such visits (CDRL

AXXX).

2.2.3.3 Contractor shall host up to two U.S. Army Customer PMRs or equivalent meetings per year to present and review program status, performance metrics, major open issues, improvement initiatives, discuss business and marketing opportunities, and discuss topics identified by USG and Customer. Contractor shall provide USG-only briefing and discussions. Customers shall be afforded the opportunity for one-on-one reviews and discussion as part of corrective action for a valid customer complaint with significant impact as determined by the PMO. Meetings will be conducted semi-annually, with each occurrence lasting 2 days. At USG discretion, these meetings may be held virtually, at a USG facility, a commercial conference center, or the Contractor facility. Attendance shall be at USG discretion. Any Contractor costs associated with PMR Meetings shall be incorporated into Fill Prices. Contractor shall produce presentation materials, Data Item Description (DID) compliant Status Reports for USG approval, as well as complete and accurate minutes to capture the proceedings (CDRL AXXX). Contractor shall provide PROS PMO meeting minutes within five calendar days following such visits (CDRL

AXXX).

2.2.4 Contractor shall participate in weekly virtual meetings with the USG to discuss program status and address any open issues. Contractor shall provide any information, reports, metrics, or other material necessary to facilitate discussion and shall produce minutes of that discussion.

Contractor shall provide PROS PMO meeting minutes within five calendar days following such visits (CDRL AXXX).

2.2.5 Contractor shall support the USG at and attend World Wide Reviews (WWR) or other equivalent meetings at various CONUS locations at USG discretion. Contractor shall answer questions from and provide information to USG and FMS customers on PROS support specific to aircraft platforms including, but not limited to the F-16, F-15, C-130, and Proven Aircraft.

Contractor shall support and attend up to four reviews per year, one for each aircraft review, lasting no more than five days each (CDRL AXXX).

Contractor shall provide PROS PMO meeting minutes within five calendar days following such visits (CDRL AXXX).

2.2.5.1 Visits with Foreign Customers

2.2.5.1.1 All PROS formal and informal CONUS visits or meetings between Contractor employees and foreign customers, Foreign Liaison Officers (FLOs) and USG Country Teams shall be attended by and coordinated through PROS PMO. Contractor shall provide PROS PMO meeting minutes within five calendar days following such visits (CDRL AXXX).

2.2.5.1.1 Foreign customer, FLO, and USG Country Team visits to contractor facilities shall be at PROS PMO discretion. All requests for such visits shall be approved through PROS PMO no less than 30 calendar days prior to departure. The visit request shall include date, time, duration, topics to be discussed, and names of attendees. Notification of pending customer visit requests and clearance verification shall be formally documented and coordinated with PROS PMO. For both formal and informal visits, contractor shall provide PROS PMO meeting minutes within five calendar days following such visits (v).

2.3 Additional Program Specifics

2.3.1 Marketing

Contractor shall submit for USG approval a re-brand of PROS 7 nomenclature with acronym, design, and marketing materials (CDRL AXXX). The Contractor shall not utilize the approved marketing items beyond the period of performance. The Contractor shall identify themselves as “(Prime Contractor Name) is the Prime Contractor for the PROS 7 Program” in all such items, as well as in all emails and meetings including those not associated with marketing efforts. To avoid confusion, Contractor shall not use any symbolism or slogans associated with previous PROS efforts.

Example below:

“ABC Company is the Prime Contractor for the PROS 7 Program.”

2.3.2 Contractor shall support Vendor participation and on-ramping to meet or exceed Contract Competition Index (CCI) requirement for all Commercial Transactions and Task Orders for Services.

2.3.2.1 Contractor shall develop Customer and Vendor specific marketing materials for distribution at trade shows, conferences, seminars, etc. to streamline Vendor on-ramping and Customer acquisition/involvement.

2.3.2.2 PROS PMO reserves the right to review and approve any PROS Contractor marketing materials, promotional materials, news releases, and related webpage content (not including creative design).

2.3.3 PROS Website

2.3.3.1 Contractor shall develop, host, update, and archive a PROS website for the purposes of informing our customers, stakeholders, and the general public of the attributes and procedures for PROS. Contractor shall have a fully operational website within 80 calendar day of contract award in accordance with PWS 2.1. Best Practices shall be utilized to increase search engine rankings to drive impressions and clicked through link traffic to the website.

2.3.3.2 Contractor shall develop and maintain a current, publicly available website accessible via the Internet throughout the term of PROS. Contractor shall make their PROS webpage Rehabilitation Act Section 508 compliant in accordance with FAR 39.203. Reference Code of Federal Regulations, Title 36, Chapter 11, Part 1194, Appendix A

2.3.3.3 Contractor PROS webpage shall include, but not be limited to, the following:

2.3.3.3.1 Secure Login Capability for user specific accounts in the following categories with distinct roles and permissions: USG/Contractor, Vendor, and Customer

2.3.3.3.2 PROS Contract Overview shall be publicly published

2.3.3.3.3 Key Personnel Point of Contact (POC) information

2.3.3.3.4 (Names, Titles, Phone Numbers, E-mail Addresses) shall be publicly published

2.3.3.3.5 Contractor Key Personnel POC information (Names, Titles, Phone Numbers, E-mail

Addresses) shall be publicly published

2.3.3.3.6 Vendor On-Ramping process, education, and guided video tutorial to include Contractor

POC shall be publicly published

2.3.3.3.7 A section for FMS customers to review vendors and provide a rating of service received from the sub vendor. This information should only be viewable by any individual authorized to purchase through the PROS 7 contract, the PROS PMO and the contractor.

2.3.3.3.8 List and website links for all Contract Vendors shall be publicly published and utilize best practices to increase search engine rankings. Controlled access through secure login capability shall be provided to view Contract Vendors listed by NAICS, FSCs, capabilities, customer reviews (PWS 2.2.2.2), and shall include a link to Vendor website. Contractor and/or Vendor shall have ability to continually update the vendor’s information for accuracy at all times. The Contractor shall utilize NAICS and all Vendor information to report on the breadth and depth of capabilities while pursuing growth in areas of needed competition and capabilities.

2.3.3.3.9 List of Vendors not eligible for solicitations and awards due to Dormant Status or Off- Ramped,

2.3.3.3.10 General overview of the attributes of PROS Contractor capabilities

2.3.3.3.11 PROS Training, Ordering Guides and Procedures, and Video Tutorials for USG, Contractor, Customer, and Vendor (CDRL AXXX)

2.3.3.3.12 PROS live metrics generation for work in progress and work complete

2.3.3.3.13 PROS related marketing materials, press releases, and earned media shall be publicly published Links to other required websites as determined by the Prime and requested by the

USG

2.3.3.3.14 Help Desk POC

2.3.3.3.15 Frequently Asked Questions

2.3.3.4 Contractor shall deliver all information and content captured on the website during the performance of this contract. (CDRL AXXX)

2.3.4 Security Requirements

2.3.4.1 Clearance Requirements: All Contractor personnel using USG Unclassified automated information systems (e.g. SAMIS, MISIL, CISIL, WebSDR, SDR-Automation, and AFSAC Online) shall obtain and maintain a Tier 1 Background Investigation, at a minimum.

Contractor shall obtain and maintain required clearances for the entire period of contract performance. Contractor shall ensure employees performing duties under this contract are submitted for periodic re-investigations as required by DoD and Air Force personnel security program requirements. Initial clearances and periodic re-investigations will be conducted at no additional cost to the Government. Contractor shall provide clearance status of all employees, as part of semi-annual PMRs (CDRL AXXX).

2.3.4.2 National Industrial Security Program Operating Manual (NISPOM)

2.3.4.2.1 Contractor shall comply with appropriate USG regulations and directives contained in the latest version of DOD 5220.22M, NISPOM.

2.3.4.2.2 USG System Access Requests

2.3.4.2.3 Prior to being granted access to USG systems, Contractor shall submit a DD Form 2875

(System Authorization Access Request) for each employee. The DD 2875 requires a favorable Tier 1 Investigation and USG supervisor concurrence. Additionally, Contractor personnel shall complete all USG required security training. This includes either the DoD IAA Cyber Awareness Challenge (Course ZZ133098) available on the Air Force myLearning Training System website at https://lms-jets.cce.af.mil/ or the Cyber Awareness Challenge course for Department of Defense Employees available on the DoD Cyber Exchange website at https://public.cyber.mil/training/cyber-awareness- challenge/ NOTE: myLearning is a CAC-enabled secure website.

2.3.5 Foreign Ownership, Control, or Influence (FOCI)

Contractor shall comply with the FOCI guidelines contained in DOD 5220.22-M, NISPOM.

2.3.6 Classified Material

https://public.cyber.mil/training/cyber-awareness-%20challenge/

Contractor shall ensure classified material is processed IAW appropriate USG regulations and directives. Contractor shall ensure immediate reporting to USG of any unexpected receipt of classified data, Commercial Transactions and/or repairable items. There is no Contractor requirement to store classified material on this contract.

2.3.6.1 Security Issue Reporting

Contractor shall immediately report to their Defense Security Service (DSS) representative any security issue and provide full cooperation with the DSS and USG in any security investigation required.

2.3.6.1.1 Contractor shall consult USG prior to any non-US citizen being placed on any Contractor working position with access to specific FMS customer program information. USG will determine if access will be granted.

2.3.7 Customer Data Handling

Contractor shall consider all customer information data as “Controlled Unclassified Information.” Contractor shall ensure no country information is referenced within another country’s documents, briefings, messages, and/or communications. Contractor shall notify the PMO for any instances of misdirected messages or communications.

2.3.8 Operations Security

Contractor personnel shall be thoroughly familiar with Operations Security (OPSEC) strategies and methods. OPSEC requirements are stipulated in an effort to reduce program vulnerability from successful adversary collection and exploitation of critical information. Contractor shall employ sound OPSEC principles and procedures in the performance of their duties and responsibilities and apply OPSEC in their management of this contract IAW DOD and Air Force OPSEC publications. Contractor shall produce and maintain an OPSEC Plan (CDRL AXXX).

2.3.9 Contractor Identification

Contractor employees shall identify as contractors by introducing themselves as Contractor personnel and displaying distinguishing badges or other visible identification for meetings with USG and customers. In addition, Contractor personnel shall appropriately identify themselves as Contractor employees in telephone conversations and in written correspondence.

2.3.10 Invoicing

2.3.10.1 Invoicing Responsibility

Contractor has financial responsibility to promptly transfer funds to pay Vendors. The due date for making invoice payments by the Contractor to the Vendor is the later of the following two events (CDRL AXXX):

2.3.10.1.1 The 30th day after the Contractor receives a proper invoice from the Vendor.

2.3.10.1.2 The 30th day after Government acceptance of final shipment for supplies delivered to

Customer, as evidenced at FMS Freight Forwarder by Commercial Shipping document/packing list (FAR 46.501) and Certificate of Conformance (FAR 46.504), or of services performed. The USG will electronically process invoice payments to the Contractor via the process described in the following sections and Contractor shall perform in accordance with PWS

2.3.10.2 Invoice Submissions and FAR 52.232-25 Prompt Payment (CDRL AXXX).

2.3.10.2.1 Contractor shall electronically submit invoices within 7 days after receipt of the vendor invoice or Government acceptance of final shipment for supplies delivered to Customer, as evidenced at FMS Freight Forwarder by Commercial Shipping document/packing list (FAR 46.501) and Certificate of Conformance (FAR 46.504), or of services performed, whichever is later.

2.3.10.2.2 Contractor shall submit invoices IAW the following schedule:

2.3.10.2.2.1 Navy invoices: First USG workday of the week.

2.3.10.2.2.2 Army invoices: Second USG workday of the week.

2.3.10.2.2.3 Air Force invoices: Last USG workday of the week.

2.3.10.2.3 Contractor shall deliver accurate and complete invoices IAW FAR 52.232-25 Prompt Payment. Contractor shall execute in accordance with approved C Plan. Non-conforming invoices submitted shall be rejected in their entirety and the USG will document for corrective action reports. Contractor shall assist USG to adjudicate USG IT System-generated errors.

2.3.10.2.4 Contractor shall provide Financial Management (FM) reports to support the collection of financial metrics related to invoices. FM reports shall be electronic .pdf files which are searchable (CDRL AXXX).

2.3.10.2.5 Contractor shall deliver the following reports:

2.3.10.2.5.1 Volume of Acceptances - Provide a count each quarter of total electronic Commercial

Transactions acceptances administered by SMC.

2.3.10.2.5.2 Timeliness of Acceptance - For each Commercial Transaction invoice received by and electronically administered by SMC and acted on (accepted or rejected) during the quarter the Contractor shall provide the Commercial Transaction number (DCN), shipment (or other identifying) number, Contractor submittal date, and acceptance date/rejection date.

2.3.10.2.5.3 Aging of Acceptance Documents - For each Commercial Transaction invoice received by and electronically administered by SMC during the quarter, but not acted on (not rejected, accepted, or recalled by the Contractor) the Contractor shall provide the Commercial Transaction number (DCN), shipment (or other identifying) number, Contractor submittal date, and acceptance date/rejection date.

2.3.10.2.5.4 Invoices Received Electronically - Provide the number of electronic invoices received by and electronically administered by SMC for the quarter.

2.3.10.2.5.5 Time from Vendor submittal until payment and time from Contractor submittal until payment – for invoices received by and electronically administered by SMC the Contractor shall provide the Commercial Transaction number (DCN), shipment (or other identifying) number, Contractor submittal date, and acceptance date/rejection date.

2.3.10.2.5.6 Percent of Payment Requests Paid within the Prompt Payment Act Timeframe - The number of invoices received by and electronically administered by SMC paid within the Prompt Payment Act time frame divided by the total number of invoices paid within the reporting period.

2.3.10.3 Invoice Content (CDRL AXXX)

2.3.10.3.1 Payment to Contractor for an awarded Commercial Transaction typically consists of:

2.3.10.3.1.1 Fixed Price Invoice of materiel for supply items and repair services, to include 30 days storage.

2.3.10.3.1.2 Applicable fill prices.

2.3.10.3.2 The cost of vendor materiel is a Commercial Transaction and shall be charged as a Fixed

Price Invoice with supporting documentation. Contractor shall invoice electronically to SMC, for reimbursement, the vendor FFP cost of materiel or actual cost not to exceed the awarded FFP. Contractor shall not earn profit on materiel cost or apply any Contractor costs such as G&A.

2.3.10.3.3 Contractor shall invoice within 30 days of shipment for each Commercial Transaction filled and include the Commercial Transaction number, Commercial Shipping document/packing list (FAR 46.501), Certificate of Conformance (CoC) (FAR 46.504), and proof of shipment.

2.3.10.3.4 Contractor will be paid an FFP fill price, IAW the established price determination in Section B (Schedule), for each Commercial Transaction awarded to compensate for all work performed. The Contractor shall ensure that fill prices include all costs associated with the acquisition of the supply/repair Commercial Transaction IAW Section J Attachment 5 Pricing Matrix (except those costs specifically provided for elsewhere in the contract line items).

Contractor shall only receive one fill price per Commercial Transaction (i.e. CLIN X001, CLIN X002, or CLIN X003).

2.3.10.3.5 Contractor invoices shall include a copy of individual vendor Fixed Price Invoices and associated backup documentation to determine allowability, reasonableness, and allocability (FAR Subpart 31.2) for each Commercial Transaction in an electronic format.

2.3.10.3.6 Contractor shall prepare invoices IAW the CLIN structure.

2.3.10.4 Invoicing When No Materiel/Repair Service Provided

When no materiel or repair service is provided, Contractor shall invoice for only the service performed (e.g., Research/Price and Availability (P&A), cancellation price, and when applicable termination and/or disposal charges) within 30 days (CDRL AXXX).

2.3.10.4.1 Contractor may invoice for Vendor FFP Disposal Charge, for customer directed materiel disposal. Contractor shall present Vendor FFP Disposal Charge in the Customer BVDM for all repairs.

2.3.10.4.1.1 Disposal Charge (DC1) equals Disposal Cost (DC2) minus Scrap Value (SV):

DC1=DC2-SV.

2.3.10.4.1.2 If Scrap Value exceeds Disposal Cost (DC2), then Disposal Charge (DC1) may be invoiced and Contractor shall return any Scrap Value (SV) that exceeds the Disposal Charge (DC1) to the Customer.

2.3.10.4.1.3 Contractor shall provide supporting documentation for the determination of Scrap Value as approved in QA Plan. Scrap, FAR 2.101, means personal property that has no value except its basic metallic, mineral, or organic content.

2.3.11 Organizational Conflicts of Interest (OCI)

Contractor shall resolve potential OCI issues to mitigate impacts on PROS. "Contractor" includes parent company, subsidiaries, affiliates, and entities under control of the Contractor.

When a potential OCI is identified, Contractor shall provide a comprehensive OCI Risk/Issue/Concern Plan providing all required details, along with mitigation plan for approval by the USG prior to proceeding on any award. Contractor shall comply with FAR Subpart 9.5.

(CDRL AXXX)

2.3.12 Proprietary Data

Contractor shall, if granted access to proprietary information of other contractors and Vendors in performing services for the USG, manage and protect proprietary data from unauthorized use or disclosure in accordance with the USG Approved QA Plan (CDRL AXXX). Furthermore, Contractor shall not use data obtained to supply a system or components thereof to the USG outside this contract, nor shall they use such data in supplying parts or performing for the DoD in additional audits, studies, or evaluations. These limitations do not apply if Contractor obtains permission or rights to use proprietary information from the owner(s) of such information.

Contractor shall obtain authorization to use or have access to proprietary technical data as required for the performance of this contract. Contractor shall manage proprietary data and deliver data appropriately marked (CDRL AXXX). Contractor shall only request the minimum Vendor data necessary to fulfill the Commercial Transaction, competing the Best Value Decision Matrix categories for the Customer Decision Authority, and in accordance with the Contractor’s Purchasing System as Approved by the USG.

2.3.13 Employee Agreements

Contractor shall obtain from each employee a written agreement providing that said employee shall not, during employment by the Contractor or thereafter, disclose to others or use for the employee's own benefit any trade secrets, confidential information, or proprietary data received in connection with work under this contract.

2.3.13.1 Contractor, to include parent company, subsidiaries, affiliates, and entities under their control, are prohibited from bidding on Commercial Transactions.

2.3.14 USG Access to Contractor Facilities

The Contracting Officer, Contracting Officer Representative (COR), and other USG personnel, authorized in writing by the Contracting Officer, shall have access to Contractor facilities to perform surveillance, periodically check operations, inspect facilities, and perform necessary liaison functions between customer and Contractor. The Contractor shall make working space, a meeting room, and network connectivity available to USG personnel during these visits.

2.3.15 Public Release of Information

Information in any form concerning the existence, characteristics, potentialities, or capabilities of the PROS program (classified/unclassified) proposed for publication or release to the public through any medium, whether such information is prepared as an official or personal enterprise, must be submitted through USG channels for review and clearance. Contractor shall submit to the USG, all information fitting the above criteria for review prior to the public presentation.

Note: Approval/Denial of release of information will be handled in accordance with DAFI 61- 201.

2.3.16 Language Requirement

Contractor shall conduct all communications with vendor, customer, and/or USG in English. As all contractor documentation is subject to USG review, the Contractor shall ensure all procurement-related and PROS contract documentation is in English.

2.3.17 Contract Deliverables

2.3.17.1 Contract Data Requirement List (CDRL)

The Contracting Officer may unilaterally change the place of delivery and technical office for any CDRL, designated as exhibits or attachments hereto, at no change in contract price, notwithstanding the provisions of the clause hereof entitled "Changes.” DD Form 1423 is the standard format for identifying potential data requirements in a solicitation, and deliverable data items in a contract.

2.3.17.2 CDRL Changes

The Contracting Officer may unilaterally increase or decrease the number of addressees and/or increase or decrease the number of copies (regular or reproducible) specified for any addressee of any data item of said exhibits or attachments hereto, at no change in contract price, provided that the increase in the total number of copies (regular and reproducible) for an individual line item of data shall not be greater than one hundred percent (100%) of the total number of copies (regular and reproducible) initially specified in said exhibits or attachments nor shall the decrease in the total number of copies (regular and reproducible) for an individual line item of data be greater than fifty percent (50%) of the total number of copies (regular and reproducible) initially specified in said exhibits and attachments. In the event of an increase greater than 100% or a decrease greater than 50% the parties will negotiate any equitable adjustments IAW the changes- fixed-price clause (FAR 52.243-1) or changes-cost-reimbursement clause (FAR 52.243- 2).

2.3.18 Recognized Holidays

The following Federal holidays are observed by the USG and are provided for Contractor planning purposes concerning communication with USG employees: New Year’s Day, Martin Luther King Day, Presidents Day, Memorial Day, Juneteenth, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving, and Christmas. If a holiday falls on a Saturday, it is observed the previous Friday. If the holiday falls on a Sunday, it is observed the following Monday. An up-to-date listing of Federal holidays is available at the U.S. Office of Personnel Management website at https://www.opm.gov/policy-data- oversight/pay-leave/federal-holidays/.

2.4 Commercial Transaction and Task Order Requirements

2.4.1 Customer Decision Authority (CDA) Commercial Transaction Overview

Contractor shall receive Part Number (P/N) or National Stock Number (NSN) Commercial Transactions and Task Orders electronically via USG Information Technology (IT) systems and execute Commercial Transaction or Task Order award in accordance with (IAW) the Customer Decision Authority (CDA) requirements. After 90 days out for bid, when only a single offer is received and the contractor cannot establish fair and reasonable pricing, the Contractor shall, utilizing the USG IT system, request a purchase decision and authorization from the FMS customer. The FMS customer can accept and authorize the purchase or elect to wait the entire 180 day bid cycle or cancel the requisition.

https://www.opm.gov/policy-data-oversight/pay-leave/federal-holidays/ https://www.opm.gov/policy-data-oversight/pay-leave/federal-holidays/ https://www.opm.gov/policy-data-oversight/pay-leave/federal-holidays/

Contractor shall obtain price approval by Customer direction. Contractor shall promote competition, to gain Adequate Price Competition (FAR 15.403-1(b)(1)), and if only one offer is received then the Contractor shall act in accordance with DFARS 215.371, Only One Offer, and all supporting Procedures, Guidance, and Information (PGI) to document the record.

2.4.2 Solicitation Requirements

Contractor shall execute all solicitations and Commercial Transactions in accordance with the Contractor Purchasing System (CPS) as approved by DCMA, the QAP as approved by the USG, and all applicable FAR and DFARS provisions where the Contractor is utilizing the rules in place for a Contracting Officer. Contractor shall obtain adequate price competition when soliciting vendor Commercial Transactions, as defined by FAR 15.403-1(c)(1), FAR Part 6 (Competition Requirements), and the Competition in Contracting Act of 1984. Contractor shall provide fair and reasonable support for all actions and provide QA process and utilize approved CPS to support procurement processes. Contractor shall utilize the FAR as a guide and identify the FAR Part being utilized in the competitive solicitation. For example, Contractor may utilize FAR 13 for SAP, Micro, and BPA to award FFP. Contractor shall adequately document fair and reasonable price determination IAW FAR 15.406-3 for all awarded Commercial Transactions, regardless of competition achieved. If only one offer is received, Contractor shall execute in accordance with Only One Offer, DFARS 215.371, and all supporting Procedures, Guidance, and Information (PGI). Commercial Transactions for USAF standard items and LOA directed sole source are excluded from competition requirement.

2.4.2.1 Contractor shall:

2.4.2.1.1 Only obtain a quote from the specified source when a Commercial Transaction or Task

Order is received with documented LOA sole source or customer provides within SMC narrative.

2.4.2.1.2 Only utilize USAF ESA approved source(s) provided by the applicable Air Logistics Complex (ALC) for Commercial Transactions received for AF standard items. Contractor shall attempt competition among provided sources if the ALC provides more than one approved source.

2.4.2.1.3 Document contracting file to reflect all attempts made to compete the Commercial Transaction and obtain a fair and reasonable price when competition is not obtained.

2.4.2.1.4 Issue a Request for Quote (RFQ) when Customer provides a suggested source (in addition to the required Commercial and Government Entity (CAGE) code field) within the SMC narrative, if the source is qualified. A suggested source shall not be considered an LOA directed sole source; competition is still required when a suggested source is provided.

2.4.2.1.5 Award all Commercial Transactions to Vendors as Firm Fixed Price (FFP), unless otherwise approved by the Contracting Officer.

2.4.2.1.6 Consolidate like requirements under a single award when practical.

2.4.2.1.7 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.

2.4.3 Contracting File

Contractor shall develop a contracting file, as the Official Record, which contains all pertinent information for each Commercial Transaction from receipt of requirement through shipment or cancellation. The contracting file shall be automated, electronic .pdf file which is searchable and available upon request. 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 may contact the Contracting Officer for assistance when a pricing review is necessary for items over $2,000,000.00.

2.4.3.1 Contractor shall submit a Data Accession List (DAL) (CDRL XXXX) and Vendor List

(CDRL XXXX).

2.4.3.2 Fair and Reasonable Price Determination

Contractor shall document fair and reasonable price determination for all awards. For those Commercial Transactions that exceed the Truth In Negotiations Act (TINA) threshold ($2,000,000.00), Contractor shall make the certified cost and pricing data available to the USG, unless an exception applies IAW FAR 15.403- 1(b).

2.4.3.3 Electronic File Reports (EFR): Non-Competitive Award

The Contractor shall automatically manage EFRs for all non- competitively awarded actions and deliver EFR notifications to the Customer. EFRs shall encompass the lifecycle of the Commercial Transaction. Lifecycle includes from Commercial Transaction requirement receipt to physical performance complete and closeout IAW FAR Subpart 4.8. The Contractor shall provide market research analysis to support why competition was not achieved and what efforts were taken to achieve competition. The Contractor shall support market research analysis with the digital marketing data of the solicitation at a minimum: Impressions, Unique Impressions, Click Through, Expanded Details, Link Clinks, and Analysis of Alternatives.

2.4.3.4 Electronic File Reports: Competitive Awards

The Contractor shall automatically manage EFRs for all competitively awarded actions and include the lifecycle of the Commercial Transaction.

Lifecycle includes from Commercial Transaction requirement receipt to physical performance complete and closeout IAW FAR Subpart 4.8. The Contractor shall support market research analysis with the digital marketing data of the solicitation at a minimum: Impressions, Unique Impressions, Click Through, Expanded Details, Link Clinks, and Analysis of Alternatives.

2.4.3.4.1 The EFR shall contain the Document Control Number (DCN), all…