RFPAddendaC-M.doc

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ADDENDA C - STATEMENT OF WORK (SOW)

C-1 Requirement The contractor shall perform inspection and subsequent repair phase services for one or more HC-130H aircraft as directed by the government. The government anticipates a total estimated quantity of fifteen (15) aircraft inducted for these services for the entire 5-year contractual period. Services shall be defined into three distinct efforts: PSI Basic Inspection; Repair Phase and Unscheduled Depot Level Maintenance (UDLM). The inspection effort will be accomplished in accordance with the USCG HC-130H Progressive Structural Inspection (PSI) Basic Specification, Attachment 1 in Section J.

Performance of PSI Basic Inspection and subsequent Repair Phase work, if necessary, shall constitute a baseline overhaul of the Coast Guard’s HC-130(H). It delineates the minimum work requirements for flight test and preparation for delivery by the depot facility, and return of the aircraft to a serviceable but not like new condition.

C-1.1 Inspection Phase - The contractor shall propose a Firm-Fixed-Price (FFP) for the complete PSI Basic Inspection in accordance with the PSI Basic Work Specification, Attachment 1. The primary deliverable of the inspection effort will be the final report of all discrepancies noted. The Government will then make a determination on each discrepancy and authorize the work effort for the Repair Phase to correct discrepancies noted and approved. The price(s) established shall be based on the contractor providing all flight test crews and encompass all required contractor furnished services and supplies except as specifically set forth in 4000 series CLINs. Offerors must be capable of performing the PSI Basic Inspection in order to be eligible for consideration for Center Wing Box Inspection or UDLM work.

C-1.2 Repair Phase - The PSI Basic Work Specification identifies some FFP Over-and-Above (O&A) corrections, and other O&A efforts to be reviewed by a USCG on-site representative for later PCO definitization, further explained in paragraph C-9. Only work authorized by the Contracting Officer or specifically identified in the PSI Basic Work Specification as being mandatory should be accomplished during the Repair Phase effort. Aircraft deficiencies noted on the AFTO 103 that are not covered by the PSI Basic Work Specification shall be included in O&A category under the Repair Phase effort.

C-1.3 Unscheduled Depot Level Maintenance (UDLM) - Other work that lends itself for action during the Repair Phase can be ordered by the Contracting Officer for an aircraft undergoing PSI Basic work. Other work could include, but not be limited to, Time Compliance Technical Orders (TCTOs), aircraft modifications/new equipment installation, Center Wing-Box inspection/repair, and other UDLM requirements. FFP will be used where standard procedures are required and identified, otherwise efforts must be submitted for review, negotiation and approval on a case by case basis. See Addenda H for greater detail.

C-1.4 Minimum Qualifications - As a minimum, the Contractor must possess and maintain, for the life of this contract, a current Federal Aviation Administration certification or equivalent to perform the services specified by this Statement of Work for the life of this contract. Additionally, the contractor must possess access to all required U.S. Air Force Technical Orders specifications, drawings and data to include specific load/stress analysis data, historical load analysis data or equivalent strength analysis data peculiar to the HC-130(H) aircraft as well as any subsequent technical specification revisions issued by the U.S. Air Force. The applicable technical documents are called out at Section 1.9 of the PSI Basic Work Specification. The contractor must have access to all U.S. Air Force maintenance, repair and overhaul manuals and performance/ test/acceptance criteria and data to ensure the aircraft is maintained for eventual operation in accordance with the OEM’s specifications or applicable U.S. Government regulations. The U.S. Coast Guard does not maintain nor can it provide technical documents or directives of another government agency. Additionally, the contractor must possess access to OEM data and drawings, whether by designation as an OEM service center or through a partnering agreement at the contractor’s expense.

C-2 PSI Basic Inspection – 1000 Series CLINs CLIN 1001 (and the corresponding Option Period pricing) is defined as Firm-Fixed-Priced, and shall include all work described as Mandatory (Fixed Priced Basic) in the PSI Basic Work Specification.

C-2.1 A delivery order funding this CLIN will be issued to induct the aircraft based on the extent of work required. The government may determine that Center Wing Box Inspection may be required in conjunction with PSI Basic Inspection and will, if necessary, fund the appropriate CLINs at issuance of the Inspection Phase Delivery Order.

C-2.1.1 The government reserves the right to conduct a pre-induction survey to identify discrepancies. These discrepancies noted will be identified on the order as required within the Basic Inspection phase period and whose firm-fixed prices will be factored into the total Not-To-Exceed amount funded for Fixed Priced Over and Above. Additional pre-induction discrepancies noted by the Government that are not covered by any of the 4000 series CLINs will be annotated on an attachment to the delivery order and factored into the total NTE amount based on the Government's estimate of labor hours required and in accordance with the hourly labor rate specified in the contract.

C-2.1.2 CLIN 1001 requires the contractor to furnish all equipment, materials, facilities necessary to perform the services described in the PSI including direct and indirect labor, indirect parts and materials, indirect expenses, warranty costs, data costs, engineering support and all overhead, general and administrative expenses and profit necessary to accomplish the following: preparation, inspection, removal and replacement of items to gain access to the job being performed, testing, functional or operational checks, de-sealing, de-painting, finishing, painting, resealing, cleaning, drilling, fitting, de-burring, trimming, sanding, rigging, lubrication, installation, re-assembly, or any and all activities of similar nature required to perform all the services as described in the PSI Basic Work Specification. Firm-Fixed-Prices also include the unloading/reloading of components/equipment housed with the ferried aircraft, whether these items are unloaded by hand or mechanical means. Work generated by areas in the specification that direct the contractor to proceed with correction of defects shall be funded as part of the Inspection effort when the corrective action is merely cleaning or material removal within the limits specified by the applicable technical order. This effort includes corrosion removal within limits. When more demanding corrective actions are required, work will be funded as Over and Above as detailed in paragraph C-9. Aircraft deficiencies noted on the AFTO 103 that are not covered by the PSI Basic Work Specification shall be considered as “Over and Above”, unless otherwise covered by a Fixed Priced Over and Above CLIN.

C-2.2 General PSI Basic Inspection requirements are as follows:

C-2.2.1 Receive Aircraft – The contractor shall receive the aircraft at the depot facility. Each aircraft shall be inducted for PSI Basic Inspection with aircraft handling, inventory and preservation as delineated in the PSI Work Specification as part of CLIN 1001 and the corresponding option period pricing.

C-2.2.2 Disassembly – The contractor shall disassemble the aircraft only to the extent necessary to perform tasks required in the PSI Work Specification as part of CLIN 1001 and the corresponding option period pricing.

C-2.2.3 Inspection – Each aircraft shall be inspected under CLIN 1001 (and the corresponding option period pricing) in accordance with the PSI Basic Work Specification to identify all discrepancies; defective equipment; defective components; material requirements; and other work requirements necessary to be completed during the Repair Phase. The PSI Basic Evaluation Report forms the basis for the Repair Phase work to be accomplished under CLIN 4000.

C-2.2.4 Component Removal/Reinstallation – Removal and reinstallation of components necessary to complete PSI Basic Inspection shall be accomplished as part of CLIN 1001 (and the corresponding option period pricing) and in accordance with applicable technical orders.

C-2.2.5 Reassemble, Alignment, and Rigging – All reassembly, alignment, and rigging required to complete the PSI Basic shall be accomplished in accordance with applicable maintenance instruction manuals and technical orders.

C-2.2.6 Assembly – The contractor shall perform functional tests on disturbed systems, area inspections for safety and foreign objects shall be performed prior to panel closing as part of CLIN 1001 (and the corresponding option period pricing).

C-2.2.7 Systems Functional Checks – A functional check of all systems required to complete the PSI Basic will be accomplished in accordance with applicable maintenance instruction manuals and technical orders. (As required to accomplish tasks identified in PSI Basic Work Specification as Basic PSI tasks for CLIN 1001 and their corresponding option period pricing).

C-2.2.8 Aircraft Functional Checks – All functional checks, ground checks, pre-flights and post-flights, and all work necessary to ensure aircraft integrity and reliability for flight and delivery in accordance with the specification shall be accomplished in accordance with applicable technical orders. This includes as many pre-flights and post-flights as are required to make the aircraft ready for acceptance. (As required to accomplish tasks identified in PSI BasicWork Specification as Basic PSI tasks for CLIN 1001).

C-2.2.9 Functional Check Flight - Aircraft shall satisfactorily complete a full Functional Check Flight (FCF) in accordance with CGTO 1-C130-6CF with no safety of flight discrepancies prior to paint. The contractor shall provide flight crews and support for as many FCF’s as are required to satisfactorily complete the FCF. The pricing ultimately accepted for award for FCF may be billed only once, regardless of the number of FCF’s required. The Coast Guard reserves the right to provide USCG active duty flight crews to augment or replace the contractor’s flight crews at the government’s discretion.

C-2.3 In addition to standard warranty coverage detailed at paragraph C-15, the contractor shall be responsible for providing warranty maintenance for a five (5) day period subsequent to completion of the product evaluation and final U.S. Government acceptance of the aircraft. Rectification of non-warranty discrepancies discovered during post acceptance shall be negotiated based upon the nature and cause of the malfunction and may be funded as Fixed-Priced Over and Above, or Negotiated Over and Above.

C-3 Administrivia 2000 Series CLINs

CLINs 2001 through 2004 set rates for DLM labor, Engineering labor and the Material Handling charge.

C-3.1 Hourly Labor Rate – The hourly labor rate specified by CLIN 2001 is considered “fully burdened”, inclusive of overhead, routine engineering support, general and administrative (G&A), and profit for the life of this contract. For the purposes of negotiating prices for work designated as Negotiated Over and Above, these fixed hourly labor rates will apply to “hands on” labor hours only. These hours are specifically limited to that labor performed by personnel actually engaged in the direct performance of work required. “Hands on” labor shall not include any labor performed by support or supervisory type personnel, such as, but not limited to: timekeepers, payroll clerks, purchasing, materials handling, routine engineering services, quality control, storing and issuing personnel. Quality control personnel are considered those personnel who apply standards to finished work/products to determine the finished production work is serviceable in all respects. The hourly labor rate does not include costs associated with direct parts or materials.

C-4 Reporting Requirements – 3000 Series CLINs

All 3000 series CLINs refer to Reporting Requirements. These reports shall not be separately priced but included in the FFP for inspection (CLIN 1001 or 1002). The contractor shall provide the below listed reports to the Contracting Officer, the On-Site COTR and the HC-130 PDM Manager within the time frames specified at no additional cost to the Government. Copies of each proposed format must accompany the proposal for review. Information/data generated by this contract is considered to be wholly owned by the government and is subject to alteration and dissemination at the government’s discretion. All contractor developed electronic reports must be Microsoft Office 2000 compatible; finalized reports required after aircraft acceptance must be forwarded via compact disc; specific to aircraft tail number. All data generated by work defined by this contract and the Work Specification shall be made available upon request to the Government at no additional cost.

C-4.1 PSI Basic Inspection Report – Required within 45 days of induction outlining the condition of inducted aircraft, including all noted discrepancies (categorized as minor, major, or critical), critical avionics systems/equipment found inoperable and engine trends and analyses. This report shall include a listing of Fixed-Priced Over and Above tasks, proposed Negotiated Over and Above Tasks, and major structural components identified for replacement under the direct material clause of this contract. The report shall bear the endorsement of the on-site USCG representative. This report shall form the basis of the issuance of a Delivery Order funding the actual DLM repair effort. This report shall be based in part on Reported Defect Analysis described in the PSI Basic Work Specification.

C-4.2 Production Status Report – An electronic form that provides the status, on a weekly basis, of Coast Guard HC-130(H) aircraft undergoing PSI Basic. The report shall include the following information:

1. Aircraft Type/Model Series and Bureau Number

2. Contract Number, Delivery Order Number, and Production Sequence Number

3. Work Specification Number/Change/Date

4. Induction Date/ Schedule Out-Date

5. Current Flow Days (measured from Induction Date)

6. Anticipated Total Flow Days at Delivery

7. Total Production Man-hours expended to date for Negotiated Over & Above work

8. Total Production Man-hours authorized to date for Negotiated Over & Above work

9. Stage/Station (i.e., incoming, de-paint, paint, etc.)

10. Status of critical parts

11. Impending parts shortages on time-change items, i.e., landing gear assemblies

12. Specific instance of delay over the course of the reporting week

13. Funds expended by aircraft in the following categories: Materials, Over & Above Labor, and Performance Payments.

14. Funds received by aircraft in the following categories: Materials, Over & Above Labor, and Performance Payments.

15. Current total cost and projected total cost at delivery by aircraft.

C-4.3 Funds and Manpower Expenditure Report – Required monthly, this is a contractor developed electronic report to detail the amount of funds and “Hands-On” labor hours expended for the negotiated Over & Above tasks. The report shall specify the applicable delivery order number, aircraft tail number, and specify the dollar amount of funds expended for labor and material, to-date totals, projected totals, and inclusion of Fixed-Priced items authorized.

C-4.4 Noted But Not Corrected Report (NBNC) – The NBNC report shall be prepared to list only minor organizational and intermediate discrepancies that were discovered during PSI Basic but were not required to be corrected per the PSI Basic Work Specification. A preliminary NBNC report shall be provided along with PSI Basic Evaluation Report, paragraph C-5.1. The completed NBNC report, in hard copy, shall be attached to the aircraft logbook and a copy attached to the Maintenance History Report (MHS). The completed report will also be submitted to the Contracting Officer and the HC-130 PDM Manager no later than thirty (30) days after Government acceptance of each aircraft. The NBNC report shall be a contractor developed electronic form and shall include the following:

1. Aircraft Type/Model Series and Bureau Number

2. Contract Number, Delivery Order Number, and Production Sequence Number

3. Work Specification Number/Change/Date

4. List of Minor Discrepancies including location and description of discrepancy

C-4.5 Maintenance History Summary (MHS) Report – The MHS report shall be prepared to provide the data accumulated during the performance of PSI Basic to permit proper management and updating of contractual and PSI Basic specification requirements. The MHS report shall be submitted to the Contracting Officer, the HC-130 PDM Manager, and the on-site COTR no later than thirty (30) days after Government acceptance of each aircraft. The MHS report shall be a contractor developed electronic form and shall include the following:

1. Aircraft Type/Model Series and Bureau Number

2. Contract Number, Delivery Order Number, and Production Sequence Number

3. Total Aircraft Flight Hours

4. Total Months in service

5. Time Compliance Technical Orders (TCTO) (Incorporated & Not Incorporated) by Number & Title.

6. Special Compliance Orders (SCOs) (Incorporated & Not Incorporated) by Name & Title.

· Accessories/Components Removed for Repair/Replacement to include:

· Part Number/Nomenclature, Reason for Removal, corrective action taken and disposition

· AFTO 103 Additional Workload Request Accomplished to include:

· Brief Description of Work

· Man-Hours Expended for Negotiated Over & Above Tasks

· Part number, Nomenclature

· Surface Conditioning (Strip/Repaint)

· Aircraft Exterior

· Control Surface Wells

· Wheel Wells (main/nose)

· Airframe Load Carrying Structure Repair/Replacement or Alteration

· Corrosion Removal

· Defect(s) Discovered and Corrected

· Critical/Major/Minor

· Brief Description (include part number and nomenclature)

· Man-hours Expended

· Corrective Action

· Induction Date

· In-Process Time (Calendar Days)

· Date of Government Acceptance

· Date Form DD-250 signed

C-4.6 Non-Destructive Inspection (NDI) Summary – NDI Summary shall be submitted for all positive findings of defects discovered as a result of NDI per the PSI Basic Work Specification. The report shall be a contractor developed electronic form containing all elements detail in Appendix A of the PSI Basic Work Specification. The report shall be submitted to the Contracting Officer and the HC-130 PDM Manager no later than thirty (30) days after Government acceptance of each aircraft.

C-4.7 Corrosion Inspection (CI) Summary – CI Summary shall be a contractor developed electronic form containing all elements detailed by Appendix B, Corrosion Grid Inspection Report of the PSI Basic Work Specification. The complete report will also be submitted to the Contracting Officer and the HC-130 PDM Manager no later than thirty (30) days after Government acceptance of each aircraft. This report captures corrosion inspected for, detected and repaired by the contractor per the detailed requirements of the PSI Basic Work Specification.

C-4.8 Structural Alteration Report – A structural alteration report, detailing significant structural alteration, shall be a contractor developed electronic form prepared and submitted to the Contracting Officer, the HC-130 PDM Manager and the On-Site Representative no later than thirty (30) days after Government acceptance of each aircraft. A significant structural alteration is defined as (1) replacement of any major structural component with an unused or new production part; (2) interchange of any major structural component with a component from another aircraft with prior service; and (3) modification of the same component. All structural replacement parts must be in compliance with OEM specifications. The Structural Alteration Report shall annotate the part replaced, and the source of the part. The contractor is solely responsible for the integrity of any structural part (s) installed on the aircraft.

C-4.9 FOD Inspection After Induction – Report shall be a contractor developed electronic form prepared and submitted to the Contracting Officer, the HC-130 PDM Manager and the On-Site Representative no later than thirty (30) days after contractor acceptance of each aircraft. The report shall detail discovery of FOD within the aircraft, location of discovery and extent/impact of FOD on specific structural components, suspected source and corrective action taken.

C-5 Repair Phase – 4000 Series CLINs C-5.1 CLIN 4000 is designated for the actual Repair Phase effort. The other 4000 series CLINs establish the firm-fixed-price Over & Aboves (O&A) for standard Repair Phase tasks. The total amount for CLIN 4000 will include the sum of all approved FFP tasks from the PSI Inspection Report. CLIN 4001 will include the total of all endorsed Direct Materials and CLIN 4002 will include the total of all endorsed Negotiated Over and Above tasks from the PSI Inspection Report as endorsed by the USCG on-site representative. Not-to-Exceed funding will be provided for Fixed-Priced Over & Above tasks, Negotiated Over and Above Tasks, and Direct Materials on the Repair Phase Delivery Order as discussed in paragraph C-8.

C-5.2 The 4000 series CLINs shall include any and all work necessary to accomplish the specified tasks including, but not limited to, the following: preparation, inspection, removal and replacement of items to gain access to the job being performed, testing, functional or operational checks, de-sealing, de-painting, finishing, painting, resealing, cleaning, drilling, fitting, de-burring, trimming, sanding, rigging, lubrication, installation, re-assembly, or any and all activities of similar nature required to perform a complete job. Work specifically excluded within the description of the tasks specified by CLINs 4000 through 4199 and/or set forth as a separate work request at any other tasks specified by CLINs 4000 through 4199 shall be considered work excluded from that task. Firm-fixed prices for 4000 series CLINs shall also include all required engineering support to accomplish a particular task. Work specified under 4000 series CLINs shall not apply for the removal and/or reinstallation of aircraft accessories or components (i.e., wings, engines, QECs) for the sole purpose of housing an aircraft.

C-5.2.1 The 4000 series CLINs also include a separate CLIN for Center Wing Box Inspection. If necessary, in conjunction with PSI Basic Inspection, the CLIN for Center Wing Box Inspection will be awarded at the time of issuance of the delivery order. Any other 4000 series tasks known to be required will also be included.

C-5.3 General Repair Phase requirements are as follows:

C-5.3.1 The Government will issue a separate Delivery Order following review of the PSI Basic Inspection Report submitted for each aircraft. The Delivery Order will provide funding and authorization for Repair Phase work to correct all approved discrepancies and any mandatory effort as required by the PSI Basic Work Specification. The Delivery Order will include all funding for parts and materials IAW paragraph C-8, and labor costs for all approved FFP O&As, and negotiated O&As.

C-5.3.2 Government Furnished Material (Attachment 2, Serial Number Tracked Components) – The contractor is solely responsible for the acquisition of materials required for PSI Basic of USCG aircraft with the exception of the Serial Number Tracked Components listed in Attachment 2 and Landing Gear components. The contractor shall provide overhaul services, either through a subcontractor or through its own capabilities, for landing gear removed from the aircraft. Upon completion of the contractual period, any remaining assets will be returned to the Coast Guard in a “ready-for-issue” condition. The Coast Guard may, if necessary and if available, provide one (1) set of nose and main landing gear for the purpose of seeding a rotable pool at the contractor’s facility.

C-5.3.2.1 Requests for any of the Serial Number Tracked Components listed on Attachment 2 shall be submitted to the Contracting Officer through the USCG on-site representative as soon as the need is known or anticipated. The request shall include the applicable delivery order number, tail number, part number(s) required, and shall include a required date of delivery. Delays in receiving government furnished material/equipment does not automatically result in an adjustment to the delivery schedule of an aircraft. In no case shall a request for Government Furnished Material be submitted less than fourteen (14) calendar days prior to the required date of delivery. In no case shall an acceptable required date of delivery be less than fourteen (14) calendar days in the future from the request of any/all GFM.

C-5.3.3 Component Replacement/Repair Capability - When delivery of a component not listed on Attachment 2 is anticipated to adversely affect the aircraft production or delivery schedule, and where the capability exists, the Contractor shall request authority to repair/overhaul or request assistance in obtaining the component from the Contracting Officer through the on-site USCG representative.

C-5.3.3.1 In the event the contractor is unable to secure materials or replacement parts such that the scheduled out-date of the aircraft will NOT be impacted, the contractor shall so notify the Contracting Officer through the on-site USCG representative. Notification may be accomplished electronically and must include an identification of the item(s) needed, applicable part numbers, required date of delivery, a description of efforts made to secure the item(s) with proposed lead-times from other sources, and an endorsement from the on-site USCG representative. In no case shall a request for Government Furnished Material be submitted less than fourteen (14) calendar days prior to the required date of delivery. In no case shall an acceptable required date of delivery be less than fourteen (14) calendar days in the future from the request of any/all GFM.

C-5.3.4 The Contractor shall acknowledge actual receipt of any GFM provided. Delivery is considered complete when any GFM is received at the Contractor’s dock.

C-5.4 Airframe Structural Repair (including corrosion damage) – Unless otherwise identified as Fixed-Price Basic by the PSI Basic Work Specification, airframe structure, which was damaged prior to arrival at the contractor’s facility, shall be repaired and/or replaced as either a fixed-priced over and above task specified at CLINs 4000 through 4199 or as a Negotiated Over and Above task. Direct man-hours to be included in repair or replacement are those required to dissemble, remove damaged material/structure, prepare replacement material and parts for installation, prepare damaged area for installation of new or repair material and/or parts, and reassemble. Airframe structure damaged after induction into PSI Basic due to contractor negligence or error shall be repaired and/or replaced at no additional cost to the Government.

C-5.5 Disposition of Parts Determined “Beyond Economical Repair” (BER). Items/parts/components determined by the Contractor and the on-site USCG representative as BER shall be identified and notification provided to the Contracting Officer through the on-site USCG representative. Disposition instructions will be provided via delivery order modification. Pending receipt of disposition instructions, BER items/part/components shall be stored at the Contractor’s facility separated from “Ready for Issue (RFI)” items. Electronic notification is acceptable.

C-5.5.1 Condemned Aircraft. In the event an aircraft’s condition is severe as to warrant a Beyond Economical Repair recommendation by the Contractor, such determination will be forwarded to the Contracting Officer and coordinated through the on-site USCG representative. Formal disposition instructions will be forwarded by modification from the Contracting Officer. As a minimum, work funded, but not accomplished shall be credited to the government at final billing.

C-6 Unscheduled Depot Level Maintenance (UDLM) C-6.1 The contractor is advised that Unscheduled Depot Level Maintenance (UDLM) or “Drop In” work may be required on short notice. Such efforts could include Time Compliance Technical Orders (TCTOs), installation of aircraft modifications/new equipment, drop-in heavy maintenance, and center-wing box inspection. The type and quantity of aircraft will be determined as requirements are generated. When a UDLM is identified by the Government, the Contractor will be provided a UDLM Work Specification and requested to submit a work request proposal. The contractor’s proposal shall include the number of labor hours required to accomplish the necessary tasks. The number of direct labor hours required, delivery input, and completion date of the work required will be negotiated between the Contracting Officer and the Contractor based on the UDLM specification provided, using the firm-fixed hourly labor rate specified in the contract and any of the Fixed Priced Over and Above CLINs as applicable. CLIN 5000 will be utilized for any Government required UDLM. See Addenda H for greater detail.

C-6.1.1 In the event that Center Wing Box Inspection services are required under this UDLM clause, the government will notify awardee(s) to ascertain capability to accept and perform additional work. The government will determine, based on an assessment of present and future capability, if the additional work represents a performance risk for work currently being performed. In the event the contractor cannot accept the additional work, the Government reserves the right to obtain UDLM from another source to satisfy the Government's needs. If the contractor and the Government determine that UDLM work poses little or no performance risk to current work, no UDLM proposal is required; the government will exercise CLINs 5000 and 5001 at issuance of the delivery order for this work. Note: Based on the discrepancies resulting from the Center Wing Box Inspection, the government will make a determination of the extent of further work required. Additional funding for correction of discrepancies will be provided by formal modification executed by the Contracting Officer.

C-6.2 Aircraft delivery and associated work request will not occur prior to issuance of a delivery order specifying work to be done and funds obligated. Within the final negotiated price, the contractor shall provide all services, indirect materials, and all engineering necessary to accomplish a complete job in accordance with the Government UDLM specification or work request and applicable technical orders. The Contractor shall be responsible for initiating a written request to the Contracting Officer for authorization to proceed with any work necessary, but not defined in the UDLM Work Specification, as soon as the need for such work becomes known.

C-6.3 Work request proposals shall include: all preparation, inspection, removal and replacement of items to gain access to the job being performed, testing, functional or operational checks, de-sealing, de-painting, finishing, painting, resealing, cleaning, drilling, fitting, de-burring, trimming, sanding, rigging, lubrication, installation, re-assembly, or any and all activities of similar nature required to perform the specific work identified by the UDLM Work Specification or work request and applicable technical orders.

C-6.4 Series 5001 CLINS establish the firm-fixed-prices for known, standard UDLM tasks. The FFP specified for these tasks shall include any and all work necessary to accomplish the requirement including but not limited to: preparation, inspection, removal and replacement of items to gain access to the job being performed, testing, functional or operational checks, de-sealing, de-painting, finishing, painting, resealing, cleaning, drilling, fitting, de-burring, trimming, sanding, rigging, lubrication, installation, re-assembly, or any and all activities of similar nature required to perform a complete job. In the event that less than a complete task specified by CLINs 5001 through 5050 is required to be performed, a final price will be negotiated based on work performed in accordance with the Firm-Fixed-Priced hourly labor rate. Firm-fixed prices for 5000 series CLINs shall also include all required engineering support to accomplish a particular task.

C-7 On-Site Technical Representative C-7.1 The Coast Guard intends to establish one or more on-site technical representatives. The contractor shall provide suitable office space within reasonable proximity to Coast Guard aircraft, including appropriate office furniture and a land-based telephone with local and long-distance capability. The contractor shall also provide network services including by not limited to electronic mail and internet access. The Coast Guard will provide computer equipment and a cellular telephone. The on-site representative does not have the authority to bind the Government. The on-site representative's purpose is to interpret work specification requirements, liaison between the contractor and the Government and recommend/endorse additional work requirements for the COTR, who will be physically stationed at ARSC, Elizabeth City, NC.

C-7.1.1 The contractor shall designate one individual tasked as a point of contact for interaction with the USCG COTR. This individual will be responsible for final review all documentation/invoices submitted to the COTR/Contracting Officer. Inaccurate documents submitted to either the COTR/Contracting Officer shall be rejected and returned to the individual designated as the contractor point of contact. It is not the responsibility of the COTR to correct contractor-generated documents.

C-8 Contractor Furnished Parts and Materials C-8.1 The Firm-Fixed-Prices established for CLIN 1001, and the FFP O&As listed under the 4000 and 5000 series shall not include direct parts and materials. Each Delivery Order issued under CLIN 4000 or 5000 shall include a Not-to-Exceed limit for Contractor-furnished direct Materials based on the information contained in the PSI Inspection report. The contractor shall be reimbursed for contractor-furnished direct parts and materials at cost, plus the fixed material handling cost percentage specified by CLIN 2003.

C-8.1.1 Contractor-furnished direct material costs must be supported by documentation of a competitive pricing process. Any agreements with material suppliers must be supported with documentation supporting price reasonableness for all direct materials purchased. The Government will reimburse the contractor only for the material handling fees provided by this contract for all direct materials purchased. The Government will not reimburse the contractor for handling fees or royalties to their suppliers. Additionally, the Government reserves the right to review any costs associated with this effort and may require documentation of a competitive pricing process to support any invoices submitted for direct material cost and may reject invoices deemed unreasonable. Contractor-furnished direct material is defined as material that is installed and remains installed on the aircraft. These procedures for reimbursement of direct material costs shall govern the process for the PSI Basic Inspection, the Repair Phase functions and UDLM work for the entire contractual period.

C-8.1.2 Indirect material is defined as material used to perform depot maintenance but that is not installed and/or does not remain installed on the aircraft. For example, Paint is direct material; stripper is indirect material. Acquisition costs of indirect parts/materials will not be reimbursed to the contractor as part of direct materials.

C-8.1.3 Drill, trim and fit required to fit a part to the end item will be reimbursed as part of the designated CLIN or task.

C-8.1.4 Approved and completed material costs must be invoiced within 60 days of completion of those specific tasks.

C-9 Negotiated Tasks.

C-9.1 Submission of Post Inspection Over and Above Discrepancies. Work determined to be outside the specific requirements of the PSI Basic Inspection as specified by the Work Specification or work not designated as an FFP O&A line item shall be addressed as a Negotiated Over and Above Task. Prior to submission to the contractor’s internal planning and estimating, documentation of this type work must be submitted to the on-site USCG representative for an endorsement of the need to execute the documented work. Work determined by the USCG representative to be unnecessary during the repair phase effort shall be documented on the Noted But Not Corrected Report, detailed at paragraph C-4.4. Discrepancies reviewed and endorsed by the USCG representative as necessary may then be submitted for formal planning and estimating to the contractor’s planning staff. Planning/estimating endorsed tasks shall not require more than 5 business days for approval from the date of endorsement. Discrepancies noted as Over and Above shall be submitted to the USCG representative in Microsoft Excel format and must provide a detailed description of the necessary work, inclusive of labor hours required and direct materials, aircraft tail number and specify related changes, if any to the delivery schedule. For the accomplishment of this work, the contractor’s firm-fixed price hourly labor rate will be used to negotiate a final firm-fixed price. The Fixed-Priced hourly labor rate shall apply to “Hands on” labor only; that labor performed by personnel actually engaged in the direct performance of the work required. Additional labor hours for administrative functions will not be authorized

The contractor should attempt to capture as many discrepancies as possible for inclusion in the 45-day PSI Inspection report. The Repair Phase delivery order will provide Not to Exceed (NTE) funding for work designated as Negotiated Over and Above; additional funding may be applied by modification as necessary.

C-9.2 At any time during contract performance, when sufficient data becomes available on a repetitive task being performed in this category, the Contractor or Contracting Officer may initiate negotiations to establish a Firm-Fixed-Price for that task for the remaining life of the contract.

C-10 Notification of Ready Aircraft Upon final inspection by the USCG on-site representative and the contractor’s internal Quality Assurance Personnel, notification of ready aircraft shall be forwarded to the Contracting Officer through the on-site USCG representative with a copy to the Government Task Leader. Final inspection shall ensure all discrepancies are noted, corrected and complete, all access panels have been closed, all systems and functional checks have been accomplished and the aircraft is ready for flight.

C-10.1 Final Government Acceptance. Upon completion of the FCF inspection, USCG aircrews will perform an acceptance flight. Upon successful completion of the acceptance flight, with no discrepancies, the USCG aircrew will communicate to the USCG on-site representative that acceptance can occur. The on-site representative will communicate his endorsement to the COTR, who is responsible for DD Form 250 signature. Acceptance on the DD Form 250 will occur only after the USCG flight crew departs, cycles the landing gear, completes a touch and go, and notifies the USCG representative by radio that all systems function properly. In the event discrepancies are discovered during the acceptance flight, the aircrew will return to the contractor’s facility for repair. Defects determined to be as a direct result of work accomplished by the contractor, (endorsed by the USCG representative) shall be resolved as no additional cost to the government. Costs associated with defects that are not directly related to work accomplished by the contractor shall be negotiated in accordance with the labor rate found in Addenda B for the specific contract period.

C-11 Applicable Documents C-11.1 The following documents are referenced for the performance of this effort. Requests for these documents must be forwarded to the Contracting Officer.

· USCG Aircraft Painting, ARSC Engineering Specification 13081.8A, dated 8 July 1996.

· USCG Aircraft Paint Removal Processes for Various NDI Techniques, ARSC Engineering Specification 13081.9 dated 18 January 1996.

· C-130 Paint and Detail Marking, USCG ARSC Drawing 300-14-2, Revision R, dated 25 July 2001.

· Contractor’s Flight and Ground Operations”, Air Force Regulation 55-22, Army Regulation 95-20, NAVAIR Instruction 3710.1C, and Defense Logistics Agency Manual 8210.

C-11.2 Source of Documents – The contractor shall maintain certification with Defense Logistics Support Center for the life of this contract in order to obtain necessary U.S. Air Force Technical Order specified by the PSI Work Specification. Requests for U.S. Coast Guard specific documents specified by the PSI Work Specification shall be directed to the Contracting Officer, as required. The Coast Guard will not provide technical documents which are not specifically maintained by the USCG. The contractor is required to complete and submit all required documentation for security clearances and approval to the maintenance organization of any technical documents specified by the RFP and resulting contract.

C-12 Reserved.

C-13 Engineering C-13.1 The Contractor shall have and maintain for the life of this contract, qualified engineer(s) on staff and provide all engineering support services and engineering authority required to support the work requirements of the PSI Basic Work Specification. A minimum of one full-time engineer available on-site with a B.S. degree in mechanical or aeronautical aerospace engineering or equivalent is required. The engineer shall also have at least five (5) years of aircraft major overhaul maintenance and repair experience on large aircraft with an empty weight over 75,000 pounds. The engineer shall be able to read and interpret engineering and technical data. The engineer shall have a U.S. Federal Aviation Administration (FAA) Designated Engineering Representative Certification or international equivalent. The contractor shall maintain design responsibilities for non-standard repairs with final approval resting with the Government.

C-13.1.2 Any waivers/deviations from the specifics of the PSI Basic Work Specification and/or the technical orders specified by the Work Specification shall be referred to the USCG Contracting Officer and the COTR/Government Task Leader for approval prior to beginning any work or repair. The contractor may utilize AFTO Form 202 for proposed engineering changes. Within the fixed priced basic inspection, the Contractor shall provide engineering support that is inclusive of, but not limited to the following: determination of serviceability, installed structure compliance to drawings, and determination of flight critical/continued service for previously installed repairs. Changes/deviations can be approved only by the Contracting Officer.

C-13.2 Unusual Engineering Support – The Contractor may be requested to provide engineering support for unusual or extraordinary circumstances. In the event the Contractor or the Coast Guard identifies an unusual, non-standard repair requirement, the Coast Guard will request in writing, engineering support to provide resolution for such occurrences. The fixed-priced engineering hourly labor rate, specified at CLIN 2002 shall apply for this support. This rate includes all applicable burdens, including those associated with engineering support personnel.

C-14 Production Evaluation

C-14.1 At any time prior to government acceptance, aircraft may be subject to a product evaluation by the U.S. Coast Guard and/or personnel designated by the USCG. The extent of this evaluation and personnel performing such evaluation will be determined by the Contracting Officer in collaboration with applicable U.S. Government offices. This evaluation(s) shall be accomplished utilizing the applicable specifications contained in this contract. The Contractor will be expected to support this evaluation and payment thereof shall be accomplished in accordance with the established terms and conditions of the contract. During performance of the production evaluation, the contractor may be directed to perform disassembly, set-up, tests, reassembly, etc., to allow determination of conformance to contractual requirements. Disassembly and/or component removal and reassembly and/or component reinstallation required by the USCG may be performed by contractor’s own personnel to the extent required by the U.S. Government evaluation team personnel and under the surveillance of the evaluation team. The Contractor shall document all removals, reinstallations, tests, operations or other work. Any discrepancies discovered will be immediately brought to the attention of the USCG personnel present.

C-15 Post PSI Basic Inspection Upon completion of PSI Basic and acceptance by the Government, the Coast Guard will perform a Post PSI Basic inspection. This inspection is pertinent and directly related to work accomplished by the contractor and paid for by the Government as part of the total PSI Basic DLM program. In addition to any expressed warranty terms specified, the Contractor shall be responsible for costs incurred by the Government for correction of deficiencies discovered during the Post PSI Basic Inspection. Tasks determined to have been accomplished in a deficient manner will result in a reduction in either the firm-fixed or negotiated prices established for those tasks identified. This could result in a either a partial or total credit to the total delivery order amount for those tasks identified as deficient and corrected by the government. In the event that specific tasks have been previously invoiced and paid, the contractor will be notified that a partial or complete credit for those tasks must be reflected on the final invoice. The Contractor may, at his own expense, provide a technical representative to witness the Post PSI Basic Inspection. The USCG may request to perform this inspection at the contractor’s facility using USCG personnel or USCG contracted-support personnel.

C-16 Summary C-16.1 The contractor shall provide security forces and equipment, which can prevent random entry to the contractor’s depot facilities by unauthorized personnel, to protect U.S. Government personnel and property. The contractor is also responsible for preventing malicious acts or damages to USCG assets by contractor employees.

C-16.2 Special instructions, which come due during the time the aircraft is at the contractor’s depot facility, shall be accomplished.

C-16.3 Logbooks shall be updated by the contractor.

C-16.4 The contractor shall comply with reporting requirements as delineated in this Statement of Work.

C-16.5 All materials in support of the PSI Basic specification, including repairable/replacement material, shall be obtained/furnished by the contractor except those items listed on Attachment 2, Serial Number Tracked Items.

C-16.6 The contractor will notify and coordinate with the Coast Guard the procurement of any ACMS serial number tracked components requiring replacement.

C-16.7 The contractor shall prepare a DD Form 250 at the completion of a successful Functional Check Flight and after paint for tasks accomplished.

C-16.8 Unless a deviation/waiver has been granted by the Contracting Officer, final billing for all costs pertinent to PSI Basic must be received within sixty (60) days of aircraft acceptance.

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ADDENDA D – PACKAGING AND MARKING

D.1 Technical Data Packaging Technical Data and Information shall be packed and packaged for domestic shipment in accordance with best commercial practices. The package or envelope should be clearly marked with any special markings specified in this contract (or delivery order), e.g., Contract Number, CLIN, and document title must be on the outside of the package.

ADDENDA E – INSPECTION AND ACCEPTANCE

E-1 The following Federal Acquisition Regulation (FAR) clauses apply to this solicitation/contract and are incorporated by reference:

52.246-4 Inspection of Services - Fixed Price (Aug 1996)

52.246-6 Inspection - Time and Material and Labor-Hour (May 2001)

52.246-11 Higher-Level Contract Quality Requirement (Feb 1999) "ISO 9000 or greater" 52.246-15 Certificate of Conformance (Apr 1984)

E-2 Inspection and Acceptance Inspection and acceptance shall be at Source. See also the Statement of Work for further information.

ADDENDA F – DELIVERIES OR PERFORMANCE

F-1 The following Federal Acquisition Regulation (FAR) clauses apply to this solicitation/contract and are incorporated by reference:

52.242-15 Stop-Work Order (Aug 1989)

52.247-30

F.o.b Origin Contractor's Facility (Feb 2006) F.2 Period of Performance/Place of Performance Period of performance is defined as the one-year base period, executed at time of award, and the four one-year option periods. Exercise of any option period is the unilateral right of the government. Period of performance shall not exceed five years. Performance will take place at the contractor’s facility.

F-3 Delivery Schedule and Inductions F-3.1 The actual induction date for an aircraft will be annotated on the delivery order pertinent to that aircraft. The contractor can expect one or more aircraft, in work simultaneously, dependent on the contractor’s capability, on-going satisfactory performance, contractor’s ability to meet current schedule and other factors.