SACBladesSOW111009.doc

HSCG38-09-R-J00009

Attachment A

STATEMENT OF WORK

1.0 SCOPE

This Statement of Work (SOW) provides for the purchase and overhaul to like new condition consisting of minor overhaul, major overhaul, and strip and rebuild overhaul of the Main Rotor Blade (MRB), National Stock Number (NSN) 1615-01-158-9679, part number (P/N) 70150-29100-041 and minor overhaul and major overhaul of the Tail Rotor Blade (TRB), NSN 1615-01-158-9678, P/N 70101-31000-046 on an as-needed basis for the Coast Guard’s Aviation Logistics Center (ALC), MH-60 J/T fleet.

The contractor shall provide all necessary parts, material, labor, tooling, repair manuals, test equipment and facilities to evaluate and overhaul MRBs and TRBs for the Coast Guard fleet of MH-60 J/T helicopters, as necessary to conform with the requirements of this Statement of Work (SOW) at the firm-fixed-pricing established in the contract schedule. The contractor shall provide new MRBs and new TRBs at the prices within the delivery schedule indicated in the applicable schedule contained in the contract. The contractor shall provide the data and documentation requirements specified as part of this SOW.

2.0 APPLICABLE DOCUMENTS AND DEFINITIONS

The work shall be in accordance with the original equipment manufacturer’s (OEM) specifications except where noted herein. Naval Air Systems Command depot maintenance manuals A1-867QA-MDB-000, Depot Maintenance with Illustrated Parts Breakdown, Main Rotor Blade Assembly dated January 31, 1995, A1-868QA-MDB-000, Depot Maintenance with Illustrated Parts Breakdown, Tail Rotor Blade Assembly Change 3 dated December 31, 2005, Sikorsky Overhaul and Repair Instruction (ORI) 70100-097, original revision dated May 10, 2001 and Sikorsky ORI 70100-093, original revision dated March 28, 2001 shall be used in the performance of this contract.

The contractor must have access to all needed maintenance, repair and overhaul manuals and performance/test/acceptance criteria and data to ensure that equipment is overhauled/modified, calibrated and operating in accordance with the OEM’s current specifications.

Overhaul – The process of disassembly sufficient to inspect all the operating components and the basic end article. It includes repair, replacement or servicing as necessary followed by reassembly and testing. Upon completion of the overhaul process, the component or end article will be capable of performing its intended service life or tour.

Cannibalized - Items covered in the contract in which integral parts are missing when the components are provided to the contractor for overhaul. Items covered in this contract which are received by the contractor missing consumable components are not considered to be cannibalized.

Modifications - To make basic fundamental changes on items specified in the schedule when required by the Contracting Officer. These modifications will be initiated by OEM service bulletins or ALC engineering changes.

Aircraft on Ground (AOG) - An “AOG” condition, indicating that an otherwise operational aircraft is temporarily grounded awaiting overhaul and return of the part. This condition requires the part be handled as a high priority and that its return be expedited.

3.0 REQUIREMENTS

3.1 The information contained in this SOW is not intended to be all-inclusive or to detract from procedures outlined in the OEM specifications except where noted herein. The contractor shall provide all necessary parts, material, labor, tooling, repair manuals, test equipment and facilities to evaluate and overhaul the MRBs and TRBs for the Coast Guard fleet of MH-60 J/T helicopters. The contractor must have access to all needed maintenance, repair and overhaul manuals and performance/test/acceptance criteria and data to ensure that equipment is overhauled/modified and operating in accordance with the OEM’s current specifications.

The blades shall be overhauled and returned to serviceable condition in accordance with the OEM’s specifications.

3.2 The MRB and TRB are flight critical. Serial numbers for these items are entered into the Coast Guard’s Aviation Computerized Maintenance System (ACMS) for tracking upon receipt at ALC. Upon receipt of blades, the contractor shall notify the Contracting Officer, Medium Recovery Response (MRR) Supply Cell, in writing of the date of receipt, and shall confirm the serial number(s) of the item(s) received and the applicable task order number. Notification by facsimile or email is acceptable: submit to (252) 335-6790, ATTN: Contracting Officer MRR Supply Cell. The Email address will be provided by the Contracting Officer.

3.3 The Coast Guard utilizes a serial number tracking system for safety of flight items and places a high priority on parts integrity within those components. As a result, any part which is determined to be in a serviceable condition shall be reused in the blade from which it was removed, if practical. Part and serial number integrity documentation are required under this contract. The contractor shall perform a visual inspection of the equipment and correct deficiencies found. This shall include replacement of broken parts and the removal of any foreign matter or corrosion. Parts found to be defective shall be replaced with new parts that meet the OEM’s current specifications and drawings.

3.4 Coast Guard aircraft operate primarily in a saltwater environment and are subject to corrosion. Corrosion is expected on equipment to be overhauled under this contract. During inspection and functional test, the presence of corrosion in a blade or component thereof shall constitute reason for a more thorough disassembly and inspection. Should corrosion be found, disassembly shall be made only to the extent necessary to remove corrosion or replace the part(s) 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 shall be accomplished in accordance with the OEM’s current specifications and drawings.

Upon inspection of the blade(s), the contractor shall determine if the overhaul required is to be classified as a minor overhaul, major overhaul, strip and rebuild overhaul or scrap. Examples of these overhauls would include but not limited to:

Main rotor blade minor overhaul – tip block and tip cap corrosion, minor wire mesh corrosion, patch, plug replacements, cuff repair and laminate repair.

Main rotor blade major overhaul – includes all minor overhaul and heater mat replacement and cuff replacement due to high time.

Main rotor blade strip and rebuild overhaul – includes complete stripping of blade to spar and rebuilding blade to serviceable condition along with heater mat.

Tail rotor blade minor overhaul – includes but is not limited to plug replacement, patch, cuff repair and laminate repair.

Tail rotor blade major overhaul – includes all minor overhaul and horn replacement.

Scrap main rotor blade – spar damage, damage beyond overhaul limitations, high time on spar (exceeding 10,500 hours).

Scrap tail rotor blade – excessive water in paddles, spar delaminated, spar damage, damage beyond overhaul limitations and high time on spar (exceeding 16,500 hours).

3.5 The contractor shall notify the Contracting Officer when changes are made to the OEM’s specifications or drawings applicable to equipment to be overhauled under this contract. Such notification shall include the nature of the change and details sufficient for the Coast Guard to evaluate the scope and impact of the change. Prior approval to perform in accordance with revised specifications/drawings must be obtained from the Contracting Officer. The Coast Guard reserves the right to waive any specification.

3.6 Overhauled rotor blades shall be painted with the United States Coast Guard (USCG) high visibility paint scheme. The MRB shall be painted in accordance with (IAW) ORI 70100-093 and the TRB shall be painted IAW ORI 70100-097. All rotor blades shall have the same configuration regarding the position of the paint bands so as to form concentric circles while in flight.

3.7 Once a blade has been restored to an operable condition, the contractor shall remove the unserviceable tag DD FORM 1577-2 from the blade. The Coast Guard metallic bar code shall remain attached and un-obscured with the blade.

4.0 SERVICE BULLETINS, MODIFICATIONS, ENGINEERING CHANGE PROPOSALS (ECPs), LOCAL ENGINEERING CHANGE PROPOSALS (LECPs), TIME COMPLIANCE TECHNICAL ORDERS (TCTO)

4.1 The Contracting Officer shall notify the contractor in writing of items requiring incorporation of a Service Bulletin, Modification, ECP, LECP, or TCTO. Upon receiving such notice, the contractor shall submit within thirty (30) calendar days a firm-fixed-price proposal for an incremental charge to be assessed each time the service bulletin or change is incorporated into a component. The proposal shall contain a breakdown of material and labor costs based upon the firm fixed labor rates and material factors. The incremental charge agreed to for incorporation of a service bulletin shall apply only to those components into which the contractor incorporates a required service bulletin, not those into which the service bulletin has been previously incorporated. Upon agreement of an incremental charge and issuance of a contract modification to reflect this change, the service bulletin shall be incorporated into each subsequent component received at the overhaul facility if the service bulletin has not already been incorporated. When service bulletin incorporation changes the blade part number, the new part number and if required, a NSN will be added to the contract.

5.0 OBSOLETE PARTS OR PROCESSES

5.1 In the event certain parts or processes become obsolete, the contractor shall, within thirty (30) calendar days after receipt of the assembly or component, notify the Contracting Officer and submit (1) rationale and verification of any obsolete part or process, and (2) a written estimate of the effort required to complete the overhaul.

Such estimates shall include nomenclature, part number, cost and quantity of replacement parts and total labor hours. The contractor shall verify cost of parts with invoices or catalogs. The contractor’s delivery obligation for the component(s) identified shall be suspended as of the date of notice to the Contracting Officer. The Contracting Officer will (within thirty (30) calendar days after receipt of the contractor’s written estimate) make a written determination as to the disposition of the component. After the Contracting Officer’s disposition instructions, the contractor shall have thirty (30) calendar days for delivery.

6.0 CONDEMNED PARTS AND MATERIAL

6.1 All non-repairable/scrap parts replaced during overhaul/modification including the end item shall be scrapped (rendered unusable to the point they cannot be returned to service) in accordance with the approved Sikorsky Aircraft scrap procedure and the Coast Guard Aviation Logistics Center Instruction 4100.1, Aviation Logistics Center Material Disposal Procedures in the presence of the cognizant Government Inspector.

The contractor will submit a letter to ALC on corporate stationary stating the part or parts have been mutilated. This letter shall include the serial number if applicable, NIIN, part number and quantity and be dated and signed by the Government Inspector.

When ALC has approved a main rotor blade for scrapping, the contractor shall return the tip cap and main rotor blade can to ALC within thirty (30) calendar days.

7.0 REPORTING REQUIREMENTS

7.1 The contractor shall submit monthly production reports to the Supply Cell Leader and Contracting Officer no later than the tenth day of the each month. A production report shall provide the status of contract line items received, being overhauled, or shipped during the monthly reporting period. Any format is acceptable as long as the report provides the following information; nomenclature; part number, national stock number, serial number, delivery order and contract line item number, receipt date at contractors facility, date scheduled to be inducted, date inducted, date scheduled for delivery, total days in work, if the part is late and any comments.

Notification by facsimile or email is acceptable, however email is the preferred method: submit to (252) 335-6790, ATTN: MRR Supply Cell Leader. The email address will be provided by the Contracting Officer at time of award.

7.2 The contractor shall provide a weekly progress summary via telephone or video conference. Progress summaries shall include those elements of section 7.1 of the monthly progress report.

8.0 ACMS COMPONENT REPAIR RECORD (CRR)

8.1 The ACMS is a computerized system used to record maintenance of aircraft components and assemblies. The contractor’s responsibilities with ACMS consist of submission of required forms as outlined herein. All blades are serial number tracked and shipped to the contractor’s facility with a Significant Component History Record (SCHR) and a CRR.

The contractor shall verify the SCHR and CRR and ensure they correspond with the blade part number and serial number. All discrepancies shall be reported to the Contracting Officer prior to performance of work. The contractor shall complete the CRR. The original copy of the CRR shall be mailed to Engineering Services Division (ESD), ACMS Tracking, Bldg. 78, Aviation Logistics Center, Elizabeth City, NC 27909-5001 and a copy shall be shipped with the overhauled assembly. The contractor shall maintain a copy of each complete CRR for a period of ninety (90) days.

9.0 WARRANTY PROGRAM

9.1 In accordance with FAR 52.212-4 Contract Terms and Conditions-Commercial Items (March 2009) the contractor warrants and implies that the items delivered hereunder are merchantable and fit for use for the particular purpose described in this contract.

10.0 PRESERVATION, PACKAGING, AND MARKING

10.1 ASTM STANDARDS

Packaging, handling, shipping, and transportation procedures shall be in accordance with ASTM D3951-98 (Reapproved 2004). If commercial practices cannot adequately protect and preserve the equipment, the contractor shall package, handle, ship and transport equipment in accordance with MIL-STD-2073-1D dated December 15, 1999.

10.2 DURABILITY

The contractor shall ensure that all blades when packed in shipping containers or packaging will be capable of being transported on standard transportation systems, commercial or military carriers. The contractor shall preserve, package, and mark the containers to ensure complete delivery at destination without damage or deterioration of the blades due to the hazards of shipping, handling or storage. The Coast Guard shall replace or repair unusable MRB metal shipping containers when required. The contractor agrees to notify the Contracting Officer of the existence of any damaged and unusable shipping containers.

10.3 PRESERVATION, PACKAGING AND MARKING NONCOMPLIANCE

The contractor will be notified by the Contracting Officer when noncompliances with any of the requirements set forth are noted so that corrective action may be taken. The contractor shall within 24 hours after such notification give the Contracting Officer disposition instructions for such items. If the contractor elects for the Coast Guard to correct the deficiency, the Coast Guard may assess the actual costs for correcting the deficiency. The contractor agrees that the total costs may be deducted from the invoiced amount prior to payment. An estimate of the actual cost to correct the noted deficiencies will be provided to the Coast Guard by the contractor.

10.4 MARKING OF SHIPMENTS

Shipments shall be marked in accordance with the current edition of MIL-STD-129P w/Change 4, Military Marking for Shipment and Storage dated September 19, 2007. ALC is a supply depot, material will be stored and transshipped to various users; therefore material must be packed and labeled suitable for shipment via land, air or sea. The following requirements apply:

a) Each individual new or overhauled blade must be individually packed in a separate shipping container; use metal shipping container (Sikorsky P/N SPD70150-500, NSN 8145-01-142-8789) for main rotor blades and a wooden crate for tail rotor blades.

b) Each individual container shall be labeled on the outside with National Stock Number, Bar Code of the National Stock Number, Part Number, Serial Number, Quantity, Nomenclature, Contract Number, Task/Delivery Order Number and Line Item Number.

c) The internal packaging material shall be sufficient to prevent damage during shipment, handling and storage. Preservation protection must be sufficient to prevent corrosion, deterioration or decay during warehouse storage for a period of one year.

d) Packaging material shall NOT consist of the following: popcorn, shredded paper, styrofoam of any type or peanut style packaging.

e) When the contractor is responding to an AOG situation, the outside of the shipping container shall be marked in highly visible lettering at least two inches high, “AOG”.

f) Failure to mark all shipments accordingly may result in return of the shipment at the contractor’s expense.

10.5 MARKINGS OF WARRANTED ITEMS

Pursuant to the requirements of FAR 46.706 (b) (5), the contractor shall stamp or mark the supplies delivered or otherwise furnish notice with the supplies of the existence of the warranty. Markings may be brief but should include:

a) A brief statement that a warranty exists.

b) The substance of the warranty.

c) Its duration.

d) Who to notify if the supplies are found to be defective.

For commercial items, the contractor’s trade practice in warranty marking is acceptable if sufficient information is presented for supply personnel and users to identify warranted supplies.

10.6 MATERIAL INSPECTION AND RECEIVING REPORT

At the time of each delivery for supplies under this contract, the contractor shall prepare and furnish to the Coast Guard a properly completed DD Form 250 Material Inspection and Receiving Report or Commercial Bill of Lading.

The packaging slip shall include the following information: (1) National Stock Number, (2) Part Number, (3) Nomenclature, (4) Serial Number, (5) Contract Number, (6) Task/Delivery Order Number, (7) Line Item Number, and (8) Quantity. One copy of the packaging slip shall be submitted with the shipment and shall be attached to the outside of the shipping carton; one copy shall be sent to the Contracting Officer upon shipment and shall be clearly marked “Information Only”; and one copy shall be attached to the original invoice when submitted to the payment office.

11.0 INSPECTION AND ACCEPTANCE

11.1 USCG INSPECTION AND ACCEPTANCE

Inspection and acceptance shall be preformed by the Defense Contract Management Agency (DCMA) representative at the contractor’s facility. Inspection and Acceptance shall be in accordance with 52.212-4 Contract Terms and Conditions-Commercial Items (Mar 2009). In addition, Inspection and Acceptance shall be performed at destination by ALC’s Quality Assurance representative in accordance with ALCINST 4855.4, Policy and Quality Assurance Procedures for the Receipt Inspection of New, Repaired and Overhauled Items from Vendors dated August 15, 2008.

11.2 AIRWORTHINESS OR CONFORMANCE CERTIFICATION

All aircraft parts shall be ready for issue, regardless if new or overhauled, and must be airworthy and suitable for installation on USCG aircraft.

11.3 REQUIRED CERTIFICATES

The contractor shall furnish a Certificate of Conformance (COC) in accordance with FAR 52.246-15 for each component shipped. The COC shall be affixed to the outside of the shipping container.

11.4 QUALITY DEFICIENCY REPORTING

Overhauled rotor blades found to have deficiencies may be reported on Standard Form SF 368, Product Quality Deficiency Report, to the contractor for investigation or through the contractor’s commercial warranty claim process. The direction for handling discrepancies shall be determined by the Coast Guard Contracting Officer. The contractor shall report all findings of the investigation within thirty (30) calendar days after receipt of the quality deficiency exhibit by the Contracting Officer.

11.5 NOTIFICATION REQUIREMENTS FOR NONCOMPLIANCE

If the contractor cannot certify as required in Section 11.2, he shall immediately and prior to any work being initiated, notify the Contracting Officer.

11.6 QUALITY CONTROL AND QUALITY ASSURANCE

The contractor shall be ISO 9001/14001 Certified during the entire period of performance. A copy of the ISO certificate shall be submitted with the offer.

11.7 NAVAL INVENTORY CONTROL POINT (NAVICP) CERTIFIED

The MRBs and TRBs are critical safety items (CSI) and only Navy approved sources of supply can be authorized to manufacture or overhaul these items. The contractor must be NAVICP certified.

12.0 DELIVERY SCHEDULE

12.1 The Coast Guard requires delivery of overhauled items no later than ninety (90) calendar days after induction of the material at the contractor’s overhaul facility. The contractor guarantees completion and delivery of at least six (6) each overhauled main rotor blades and five (5) each overhauled tail rotor blades per month. Strip and rebuild blades will be delivered not later than one hundred and eighty (180) calendar days after induction. For the options periods, if exercised, the contractor shall deliver all overhauled blades at the same delivery rate and schedule as the base year of this agreement. New purchased blades will be delivered as per the negotiated schedule.

The Coast Guard desires early deliveries therefore early shipments are encouraged as long as no additional costs are incurred by the Coast Guard. All requests for time extensions shall be in writing and shall include substantiation of the need for such time extension(s) in accordance with FAR 52.212-4 (f) Excusable delays. If nonperformance is not covered by an excusable delay the contractor and the Contracting Officer shall negotiate the consideration for the approval of the extended delivery date at which time a modification to the task order will be issued to reflect the consideration and the extension.

12.2 URGENT REQUIREMENTS

Aircraft on Ground (AOG) status necessitates a special schedule. In the event an AOG status occurs as a result of a lack of any of the components specified in the Schedule, within 24 hours of request by the Coast Guard, the contractor shall provide a response regarding availability of units and requirements to expedite shipment. The Contracting Officer may issue a task order modification authorizing additional funding as agreed to by the Coast Guard and the contractor necessary to accomplish the expedited overhaul. Material shall be shipped by the fastest traceable means, i.e., air freight, next day delivery. The shipping container shall be marked on the outside, in a highly visible method in letters at least 2 inches high, “AOG”. Expedited shipping charges for AOG situations will be paid by the USCG. An AOG situation may require that the contractor ship directly to the USCG field unit.

13.0 DELIVERY OF REPORTS

The original copy of ACMS CRR shall be mailed to Engineering Services Division (ESD), ACMS Tracking, USCG Aviation Logistics Center, Bldg. 78, Elizabeth City, NC 27909-5001 and a copy shall be shipped with the overhauled assembly. Evaluations and reports, not otherwise specified, shall be shipped within the time limits and to the address in Section 15.1.

14.0 GOVERNMENT FURNISHED PROPERTY

Not applicable at this time.

15.0 CONTRACT ADMINSTRATION DATA

15.1 Correspondence

All reports and correspondence shall be directed to the Contracting Officer at the following address:

Invoices are to be sent to the following address:

Contracting Officer

USCG Aviation Logistics Center

Attn: MRR Supply Cell, Bldg 79

1664 Weeksville Road

Elizabeth City, NC 27909-5001 Chief, Fiscal Branch

USCG Aviation Logistics Center

Bldg. 63

Elizabeth City, NC 27909-5001

15.2 Point of Contact

All questions pertaining to contractual issues shall be addressed to the individual specified in Block 7 of the Standard Form (SF) 1449, page one (1) of this document.

15.3 Ordering

The following activity is the only one authorized to place delivery orders against this contract.

Contracting Officer

USCG Aviation Logistics Center

Elizabeth City, NC 27909-5001

15.4 Invoicing Instructions

a. Individual invoices must be accompanied by the DD Form 250, MIRR.

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

Chief, Fiscal Branch

Bldg. 63

USCG, Aviation Logistics Center

Elizabeth City, NC 27909-5001

MARK FOR: __________________________________________

(Applicable Contract No.)

c. One copy of the original invoice shall be submitted to the Contracting Officer at the mailing address, FAX number, or electronically (in PDF format) to the email address cited in the Contracting Officers appointment letter.