SOW and ADDENDUM Q-200066.doc

ADDENDUM TO 52.212-1 INSTRUCTIONS TO OFFERORS – COMMERCIAL ITEMS

(MAR 2009)

1.0 PERIOD OF ACCEPTANCE OF OFFERS. Paragraph (c) of the above provision is changed from 30 calendar days to 60 calendar days from the date specified for receipt of offers.

2.0 CERTIFICATION/DOCUMENTATION REQUIREMENTS. Along with the

proposal,offerors shall provide a copy of their Federal Aviation Administration (FAA) or equivalent certification and other documentation that demonstrates their ability to obtain replacment parts, current specifications, manuals, test procedures and other data necessary to perform in accordance with original equipment manufacturer (OEM) specifications.

3.0 NOTICE OF PREAWARD SURVEY.

(a) Offerors are advised that the Government may contact potential contractors to ascertain their capabilities to perform the work specified in this solicitation. In addition to the financial statements and credit rating checks, the Government may visit prospective contractor’s facility. Areas of interest on this survey may include, but are not limited to the following:

(1) performance plans

(2) quality assurance and control plans

(3) personnel recruitment and training plans

(4) production capability

(i) plant facilities, equipment, and labor resources

(ii) purchasing and subcontracting

(iii) performance records and ability to meet delivery schedules.

(b) Offerors are advised that accomplishment of this survey is a part of the evaluation process and is not to be construed as an indication that an offeror will receive or is in the best position to receive the resultant award.

ADDENDUM TO FAR CLAUSE 52.212-4, CONTRACT TERMS AND CONDITIONS –

COMMERCIAL ITEMS (MAR 2009)

STATEMENT OF WORK

1.0 SCOPE. This requirement is for the repair, and/or modification of the components listed in the Schedule. The components are utilized on the U. S. Coast Guard (USCG) HH-65 aircraft fleet. Work under this contract shall be performed at the contractor's facility or USCG-approved subcontractor facility.

2.0 Major Tasks. The contractor shall provide all necessary parts, materials, labor, tooling, test equipment and facilities to evaluate, repair, or modify and test components at the firm-fixed prices listed in the Schedule.

2.1 RRPAIR. Non-RFI components shall be repaired and returned to RFI condition in accordance with the original equipment manufacturer (OEM) minimum functional performance specifications. See paragraph 4.2.1 of the Statement of Work (SOW).

2.2 Technical Support Services. The contractor shall provide technical support services to resolve technical, maintenance, reliability, and other product support issues as specified in paragraph 4.2.2 of the SOW.

2.3 Product Improvement/Engineering Change Proposals. Product Improvement/Engineering Change Proposals may be incorporated as specified in paragraph 4.2.3 of the SOW.

3.0 APPLICABLE DOCUMENTS.

3.1 Government Documents.

3.1.1 None.

3.2 Industry Documents.

3.2.1 Original Equipment Manufacturer (OEM) Component Maintenance Manuals (CMM) and other applicable technical specifications applicable to the repair/modification of the components set forth in the Schedule.

3.3 Order of Precedence. In the event of conflicts between OEM specifications and procedures and USCG specifications and procedures, the order of precedence is as follows:

3.3.1 USCG specifications and procedures.

3.3.2 OEM specifications and procedures.

ADDENDUM TO FAR CLAUSE 52.212-4, CONTRACT TERMS AND CONDITIONS --

COMMERCIAL ITEMS (MAR 2009)

STATEMENT OF WORK – cont’d

4.0 REQUIREMENTS.

4.1 General.

4.1.1 The contractor shall provide all parts, material, labor, tooling, test equipment and facilities needed to evaluate, repair/and/or modify components at the firm-fixed prices specified. The USCG reserves the right to waive any specifications.

4.1.2 The contractor shall maintain Federal Aviation Administration (FAA) certification for repair of components in identified in the Schedule for the entire duration of this contract. The contractor shall provide immediate notification to the Contracting Officer upon loss of required FAA certification.

4.1.3 The contractor must have access to parts and applicable specifications needed to repair/modify components in accordance with the OEM’s current specifications and procedures.

4.1.4 The Government reserves the right to review and modify all inspection, repair/modification and test procedures to make them more suitable to the USCG environment. The contractor shall provide written notification to the Contracting Officer no later than fifteen (15) working days following changes to applicable OEM specifications and procedures. In the event the USCG wishes to incorporate any such change into the contract, a written contract modification will be issued.

4.2 Major Tasks.

4.2.1 REPAIR.

4.2.1.1 Components shall be repaired for the specific fault for which they were returned. A DD Form 1577-2, Unserviceable (Reparable) Tag-Material, or CG-1577-A (11-90), Unsatisfactory Report Tag, will be attached to each non-RFI item describing faults. The contractor shall perform an inspection and correct deficiencies found. This shall include, but is not limited to, replacement of missing or broken parts and the removal of any foreign matter or corrosion.

4.2.1.2 During inspection and functional test, the presence of corrosion in a component shall constitute reason for a more thorough disassembly and inspection. Should corrosion be found, disassembly shall be made to the extent necessary to remove corrosion or replace the part, or parts, affected. Corroded parts shall be replaced, except in those cases where removal of corrosion from a part will not impair efficiency or safe operation of the part. Corrosion removal and treatment of affected areas will be accomplished in accordance with manufacturer's specifications. If not addressed in the manufacturer's specifications, the contractor shall utilize best commercial practices.

4.2.1.3 Parts of a component found to be in a serviceable condition as a result of inspection and functional testing shall be reused. Parts found to be defective shall be replaced with parts meeting the manufacturer’s specifications and drawings. Replacement parts shall be new.

ADDENDUM TO FAR CLAUSE 52.212-4, CONTRACT TERMS AND CONDITIONS --

4.2.1.4 The contractor shall submit a failure data report for each repaired component. This report shall include National Stock Number (NSN), part number (P/N), serial number (S/N), nomenclature, date of repair, contract number, delivery order number, line items number, description of the repaired failure, the Coast Guard’s reported failure, a listing of parts repaired, and a listing of parts replaced. The contractor’s in-house work order may be used to satisfy this requirement if it includes the information requested above. This report shall be attached to the packing slip and shipped with the repaired component.

4.2.1.5 The contractor shall make every effort to develop a repair procedure for component parts when none exists. The contractor shall submit the procedures and proposed price breakdown to the USCG for review and approved prior to implementation. The contractor may be required to coordinate changes with the OEM.

4.2.1.6 If, after visual and functional inspections, an item is found to meet manufacturer’s minimum performance specifications, the contractor will be allowed the firm fixed price for the test and evaluation. The contractor shall prepare a failure data report in these instances, including the USCG’s reported failure. This report shall be included with the returned component.

4.2.2 TECHNICAL SUPPORT SERVICES.

4.2.2.1 Upon receipt of a request for quote for a specific task, the contractor shall prepare and submit a proposal to the Contracting Officer. This proposal shall include a breakdown of hours, materials and other costs associated with performance of the task. The labor rate in the Schedule for technical support services will apply. Specific deliverables will be identified on individual delivery orders.

4.2.2.2 The contractor shall provide up to 10 man-hours per quarter of technical support labor at no additional cost to the Government. In the event that a requested task cannot be completed within 10 man-hours per quarter, the contractor shall immediately notify the Contracting Officer that the task cannot be completed within the allotted timeframe and provide a preliminary estimate of the time and costs required for completion.

4.2.3 PRODUCT IMPROVEMENTS/ENGINEERING CHANGES. The contractor may develop designs and/or processes that will improve the reliability, maintainability, or operational performance of the components being repaired. These may be provided to the Contracting Officer for consideration and approval. A proposal shall also be provided that reflects an incremental charge to be assessed each time the PIP/ECP is incorporated into the component. The proposal shall include a breakdown of labor hours, material, and other costs. The labor rate will be as specified in the Schedule. Upon agreement of the price for incorporation of the change, the Contracting Officer will issue a modification to the contract to authorize and incorporate pricing for the change. The contractor shall not incorporate proposed product improvements or engineering changes prior to receipt of written authorization from the Contracting Officer.

4.2.4 DOCUMENTATION REQUIREMENTS.

4.2.4.1 The contractor shall provide Failure Data Reports as specified in paragraphs 4.2.1.4 and 4.2.1.6 of the SOW.

4.2.4.2 The contractor shall provide two copies of all service bulletins to the Contracting Officer within 10 calendar days of receipt. The Contracting Officer will notify the contractor in writing when incorporation of mandatory or optional service bulletins is required. Within 30 calendar days following receipt of notification from the Contracting Officer, the contractor shall submit a detailed proposal for incorporation of service bulletin(s). This proposal shall include a listing of replacement parts and/or materials required, the time needed to effect the modification, an estimated price breakdown of each part and the number of labor hours required. The USCG will normally incorporate all mandatory service bulletins. The labor rate will be as specified in the Schedule.

4.2.4.3 Within 60 calendar days following contract award, the contractor shall provide an updated copy of all applicable OEM-approved component maintenance manuals (CMMs) for components listed in the Schedule. The CMMs shall reflect the latest procedures used in the repair and/or modification of components. If the contractor determines that current procedures detailed in the CMM should be changed, two copies of recommended changes shall be submitted to the USCG for review and approval. The contractor shall continuously update all applicable CMMs during the life of the contract.

4.2.4.4 The contractor shall submit Component Maintenance Manual revisions to the USCG within 60 calendar days of receipt.

4.2.4.5 The contractor shall provide Government Property Reports in accordance with Homeland Security (HSAR) Clause 3052.245-70.

4.2.4.6 The contractor shall provide Subcontracting Reports in accordance with Federal Acquisition Regulation (FAR) Clause 52.219-9.

4.3 Pricing Exclusions – Unusual Damage.

4.3.1 Prices do not include components that have been cannibalized or that are severely damaged due to mishandling, water immersion, or crash damage. Because the HH-65 helicopter is used primarily around salt water at low altitude for search and rescue missions, corrosion is to be anticipated and is considered "normal" for the aircraft. Corrosion does not constitute unusual damage.

4.3.2 If the considers a component to be a candidate for exclusion, the Contracting Officer shall be notified within 15 days of receipt of the component. Verbal notification to the Contracting Officer shall be confirmed in writing. This notification shall include:

- Identification of the reason for a pricing exclusion (such as "cannibalized parts");

- A proposal and price breakdown for repair/modification of the component.

4.3.3 The contractor's delivery obligation for the component shall be suspended as the date of notice to the Contracting Officer. The Contracting Officer will make a unilateral written determination (subject to the Disputes Clause, FAR 52.233-1), within 30 days of written notice, as to exclusion validity. The Government retains the right to unilaterally set the price for exclusion items in the event an agreement on price cannot be reached. The contractor's delivery obligation shall resume upon receipt of the Contracting Officer's determination.

ADDENDUM TO FAR CLAUSE 52.212-4, CONTRACT TERMS AND CONDITIONS --

COMMERCIAL ITEMS (MAR 2009)

STATEMENT OF WORK – cont’d

4.3.4 The Government will not be liable for any amount expended by the contractor in excess of the applicable firm fixed price reflected in the schedule unless prior written authorization has been given by the Contracting Officer.

5.0 QUALITY ASSURANCE PROVISIONS.

5.1 Responsibility for Inspections and Tests. The contractor shall establish an inspection system in accordance with Federal Aviation Administration procedures for all components. The USCG reserves the right to review the contractor operation and/or facilities at any time during the period of the contract.

5.2 Inspections. After repair and/or modification is complete, each component shall be inspected/checked in accordance with CMM procedures unless otherwise specified in the contract or in individual delivery orders.

5.3 Testing. No deviations from test requirements are authorized.

5.4 Preliminary Inspection. All parts repaired and/or modified under the provisions of this contract must be airworthy and suitable for installation on USCG aircraft. Each returned component shall be tagged with a DD Form 1574 Serviceable Condition Code Tag, completed in its entirety. The contractor shall furnish a Certificate of Airworthiness in accordance with FAA procedures and a Certificate of Conformance in accordance with FAR Clause 52.246-15 for all components. These forms shall be packaged with each component and copies shall be included with the invoice. FAILURE TO SUBMIT THE APPROPRIATE CERTIFICATES SHALL CONSTITUTE AN IMPROPER INVOICE AND WILL RESULT IN NONPAYMENT.

5.5 Final Inspection and Acceptance. Final inspection and acceptance of material under this contract shall be performed at destination by local Quality Assurance personnel and will consist of count, condition and verification that all required documentation has been provided. ALC considers components RFI upon acceptance. Components determined to be non-RFI upon installation may be returned to the contractor with a Quality Deficiency Report for repair at no additional cost to the USCG.

6.0 SPECIAL INSTRUCTIONS.

6.1 Aircraft on Ground (AOG) Situations. Upon notification from the USCG that an AOG situation exists, the contractor shall make every effort to expedite the repair/modification and initiate shipment within seven (7) calendar days or less. Material shall be shipped by the fastest traceable means, e.g. Air Freight "next day delivery". The shipping container shall be marked on the outside in highly visible lettering "A.O.G." At the time the is notified of an AOG requirement, the shall advise the Contracting Officer if there are additional shipping charges. The Contracting Officer will provide special shipping instructions and authorization for reimbursement in these instances.

7.0 ATTACHMENTS.

7.1 Attachment 1. - Dept of Labor Wage Determination, 10 Pages

ADDITIONAL TERMS AND CONDITIONS

1.0 PERIOD OF PERFORMANCE. The period of contract performance includes a one-year base period and, if exercised, FOUR one-year option periods.

2.0 PLACE OF PERFORMANCE. The Government will ship components, freight prepaid, to the 's facility within the United States (except Alaska and Hawaii) to the location specified below:

(City, County, State, Zip Code)

In the event that the 's facility is located outside the contiguous states, the District of Columbia or Canada, the f.o.b. point for Government delivery of Government-furnished property shall be a location in the United States (excluding Alaska and Hawaii) specified by the below:

(City, County, State, Zip Code)

3.0 CONTRACTOR VERIFICATION OF RECEIPT OF COMPONENTS. Within five (5) calendar days following receipt of component(s), the contractor shall provide written notification of the following to the Contracting Officer:

(a) date of receipt of component(s);

(b) confirmation of serial number(s) received; and

(c) applicable delivery order and line item number

Notification via facsimile is acceptable. FAX: (252) 334-5240

4.0 F.O.B. POINT. The f.o.b. point for shipments under this contract is f.o.b. destination. Prices in the Schedule include all applicable customs, duties, taxes, and shipping charges.

ADDENDUM TO FAR CLAUSE 52.212-4, CONTRACT TERMS AND CONDITIONS --

ADDITIONAL TERMS AND CONDITIONS

5.0 DELIVERY SCHEDULE. NOTE: Early deliveries are desired and acceptable.

5.1 Government Required Delivery:

Line items 1- 2 and all respective option line items - No later than (NLT) 60 calendar days after receipt of delivery order and component.

Line items 3-5 and all respective option line items: Unusual Damage, Technical Support and Product Improvement/Engineering Change Proposals - to be determined on individual delivery orders as required utilizing the labor rate shown in the applicable line item.

Line item 6 and all respective option line items: Service Bulletins due NLT 10 calendar days after receipt.

Line item 7 and all respective option line items: Failure Data Reports must be included (one copy) with component.

Line item 8 and all respective option line items: Contractor Verification of Receipt of Components due NLT five (5) calendar days following receipt of component.

Line item 9 and all respective option line items: OEM-approved CMMs due 30 April for the semi-annual period ending 31 March and due 30 October for the semi-annual period ending 30 September for each calendar period of contract performance. A final report is due at contract completion.

Line item 10 and all respective option line items: CMM revisions due NLT 60 calendar days following contract award.

Line item 11 and all respective option line items: Government Property Report due NLT 15 September of each calendar year.

Line item 12 and all respective option line items: Subcontracting Report due annually on 30 October for the 12-month period ending 30 September for each year of contract performance.

ADDITIONAL TERMS AND CONDITIONS – cont’d

5.2 Reserved

5.3 Packaging Instructions:

5.3.1 The USCG Aviation Logistics Center is a supply depot; therefore, material will be stored and transshipped to various users. The container shall be packed and labeled suitable for shipment via land, air, or to sea. Packaging material shall NOT consist of the following material: popcorn, shredded paper, Styrofoam of any type or peanut packaging. Each part shall be individually packed in a separate envelope, box, carton or crate. If crate is used, material must be packaged in such a way that material does not come in contact directly with wood to avoid wood splinters from penetrating material. Each individual container shall be labeled on the inside with National Stock Number, Part Number, Serial Number, Quantity, Nomenclature, Purchase Order Number, and Purchase Order Line Item Number. Packing List and Certification/Documentation shall be placed on the outside of individual containers. The internal packing material shall be sufficient to prevent damage during shipment, handling and storage. Preservation and protection shall be provided to prevent corrosion, deterioration, or decay during warehouse storage for a period of one year.

5.4 Marking Instructions.

Each individual shipping container shall be legibly stenciled in 1/2-inch (minimum) letters on the outside with the following information:

Nomenclature (model or type and item name)

Serial number

National Stock Number

Contract number

Delivery Order/Item number

Consignee's name and address

ADDENDUM TO FAR CLAUSE 52.212-4, CONTRACT TERMS AND CONDITIONS --

COMMERCIAL ITEMS (MAR 2009)

ADDITIONAL TERMS AND CONDITIONS – cont’d

5.5 Shipping Instructions.

Deliverable items shall be shipped to the following address:

USCG Aviation Logistics Center

Receiving Section, Building 63

Elizabeth City, NC 27909-5001

Mark For: Contract No. _______________________________ (to be assigned at time of award)

(to be assigned at time of issuance)

Documents, reports and correspondence shall be submitted to the following address:

USCG Aviation Logistics Center

Short Range Recovery (SRR) Elizabeth City, NC 27909-5001

Mark For: Contract No. _______________________________ (to be assigned at time of award)

(to be assigned at time of issuance)

5.6 Invoicing Instructions.

The original and three (3) copies of the’s Invoice shall be submitted to the designated billing office for payment as follows:

Chief Fiscal Branch

Building 63

USCG, Aviation Logistics Center

Elizabeth City, NC 27909-5001

Mark For: Contract No. _____________________________

(to be assigned at time of award)

Delivery Order No. ______________________________

(assigned upon issuance)

NOTE: Failure to cite both contract number and applicable delivery order number may result in rejection and return of invoice.

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