SOW.doc

HSCG38-14-Q-200030

ADDENDA TO FAR CLAUSE 52.212-4

CONTRACT TERMS AND CONDITIONS--COMMERCIAL ITEMS (SEP 2013)

ADDENDUM A

STATEMENT OF WORK

1.0 BACKGROUND

The United States Coast Guard (USCG) currently operates 102 MH-65 helicopters. The MH-65 helicopter is primarily a Short Range Recovery (SRR) aircraft used by the USCG to perform search and rescue, law enforcement and homeland security missions. The USCG missions require frequent operation at lower altitudes and in salt-laden environments. These environments accelerate corrosion on airframe structures, engines and components of the aircraft.

2.0 SCOPE

The scope of the procurement action is to establish repair services for the MH-65Gimbal: Front Half Gimbal part number 365A32-7110-00, Rear Half Gimbal part number 365A32-7112-00 and Gimbal Ring part number 365A32-7114-01. The original equipment manufacturer (OEM) for the components inclusive of this requirement is Eurocopter S.A.S, France (F0210). New part numbers allocated for the components inclusive of this contract action during period of performance of the contract as a result of component modifications, engineering change quote, service bulletins, or product improvements shall be considered within the scope of the contract and established as add on part numbers to the schedule of parts. A contract modification will be issued to incorporate the add-on part numbers upon agreement by all parties of the negotiated price, delivery, and additional terms and conditions.

3.0 APPLICABLE DOCUMENTS

3.1 Eurocopter Technical Documentation:

3.1.1 MRV, Book 63C 2/3, revision 23, code date 12-29;

3.1.2 MRVB, Book 63 volume 3, WC 63.28.10.882:

3.1.2.1 For the Front Half Gimbal part number 365A32-7110-00: process 365A32.7110.E1 type 9 code date 02-02, including FT 9001, 9500

3.1.2.2 For the Rear Half Gimbal part number 365A32-7112-00: process 365A32.7112E1 type 9 code date 02-02, including 9001 and 9500.

3.1.2.3 For the Gimbal Ring part number 365A32-7114-01: process 365A32.7114E1 type 9 code date 02-02, including Ft90019500.

3.2 Manuals, revisions, modifications, and service bulletins current at time of contract award applicable to the part numbers inclusive of this contract.

3.3 Any documentation or specifications applicable to the gimbal component repair revealed, published, or updated prior to award or during the course of the contract period, shall be considered as being within the scope of this procurement action and may be added to the contract as agreed upon by both parties.

3.4 The USCG does not own data rights to, or distribution authority for, any documentation developed to repair the components covered under this procurement action.

4.0 REQUIREMENTS

4.1 Contractor shall be a certified Federal Aviation Administration (FAA) Part 145 authorized repair center and have experience in effective inspection, testing, troubleshooting, cleaning, and repair of the all components included in this contract.

4.2 Contractor shall provide copies of all certifications (e.g. FAA, OEM, ISO 9000, etc.) to the Contracting Officer. The contractor shall notify the Contracting Officer verbally and in writing, not later than five (5) calendar days should there be a change in certification status, and disclose all facts relevant to the change.

4.3 Repair of all components under this procurement action must be accomplished IAW the specifications set forth in section 3.0 and 5.0 of the SOW. USCG configuration control requires that applicable service bulletins and modifications for all components not previously configured shall not be incorporated without prior written approval from the USCG Contracting Officer.

4.4 The contractor must demonstrate that they have access to, and ability to obtain current specifications, for inspection and repair of all components including Component Maintenance Manuals (CMM), Revisions, service bulletins, modifications, amendments, and drawings as the USCG does not own, nor can it provide this data.

4.5 The contractor is responsible for all necessary functions to perform services requested. This includes, but is not limited to, required tooling, manuals, test equipment, parts, material, engineering services, management, personnel, documentation, preservation, shipping, etc.

4.6 The contractor must provide an uncontrolled copy of the company’s quality manual.

4.7 The contractor must ensure that all service bulletins, modifications, and amendments that have previous been incorporated remain incorporated unless otherwise appropriately superseded and directed by the USCG Contracting Officer.

4.8 The contractor must have and provide the facilities, management, tooling, manuals, test equipment, parts, materials, documentation, and personnel to repair the components included in this contract. The contractor will be responsible to procure and furnish all replacement parts required for the repair of the components for this requirements contract.

5.0 REPAIR

5.1 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.

5.1.1 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 parts affected. Corroded parts shall be replaced, except 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 utilized best commercial practices.

5.1.2 Low altitude flight over salt water contributes to greater corrosion damage in CG components than that experienced in commercial aircraft components. The contractor shall consider the presence and effects of corrosion to be "normal" in this case and provide for correction and removal of corrosion in the firm fixed repair price.

5.1.3 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.

5.1.4 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 item number, description of the repaired failure, the Coast Guard’s reported failure, a listing of parts repaired, and a listing of parts replaced. REPORT SHALL ALSO INCLUDE SERVICE BULLETINS PREVIOUSLY INCORPORATED AND SERVICE BULLETINS PERFORMED DURING COURSE OF CURRENT REPAIR. 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 reworked component.

5.1.5 SCHR: Records the maintenance history of serial number tracked components. The report remain with it corresponding part until the repaired part is returned to the Coast Guard or, if applicable, annotated “scrapped” and returned to the Contracting Officer. All scrapped parts are to be returned to ALC.

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

5.2 Test and Evaluation/No Fault Found/Beyond Economical Repair (BER) Items.

5.2.1 If, after visual and functional inspection, an item is found to meet manufacturer's minimum performance specifications and requires no parts or labor, or the part has been deemed BER by the Contracting Officer the contractor will be allowed the firm-fixed price reflected in the Schedule for Test/Evaluation. A report, identical to failure data report described in Para. 5.1.4, shall be prepared and included with the all returned components, indicating the Coast Guard's reported failure and the fact that no fault was found or why the part was deemed BER. The parts that are deemed BER will be marked accordingly and returned to ALC.

5.3 Service Bulletins.

The Contracting Officer shall notify the contractor, in writing, when incorporation of a service bulletin is required. Within 30 calendar days following receipt of this notice, the contractor shall submit, to the Contracting Officer, a detailed quote for charges that would apply each time that the service bulletin is incorporated into a component. The hourly rate set forth in the Schedule for the applicable performance period shall be utilized for developing proposed labor costs.

5.4 Technical Support Services.

5.4.1 Upon receipt of a request for quote for a specific task, the contractor shall prepare and submit a quote to the Contracting Officer. This quote 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.

5.4.2 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 time frame and provide a preliminary estimate of the time and costs required for completion.

5.5 Product Improvements/Engineering Changes. The contractor may develop designs and/or processes that will improve the reliability, maintainability, or operation performance of the components being repaired. These may be provided to the Contracting Officer for consideration and approval. A quote shall also be provided that reflects an incremental charge to be assessed each time the PIP/ECP is incorporated into the component. The quote 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.

5.6 Documentation Requirements.

5.6.1 The contractor shall provide Failure Data Reports as specified in paragraph 5.1.4 of the SOW.

5.6.2 For service bulletins not listed in the schedule, 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 quote for incorporation of service bulletin(s). This quote 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.

5.6.3 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 maintained at the repair facility during the life of the contract.

5.6.4 The Contractor shall submit summary listings of all replacement parts utilized in the repair of each component. The replacement parts listing shall include the delivery order number, contractor’s work order number, component serial number, nomenclature, replacement parts listed in numerical order and quantity of each used. This listing shall be submitted quarterly to Aviation Logistic Center, Attn: SRR Product Line, M/F: Contract TBD, Elizabeth City, NC 27909-5001.

5.6.5 The Contractor shall provide Government Property Reports in accordance with Homeland Security Acquisition Regulation (HSAR) Clause 3052.245-70.

5.7 Government Furnished Property

5.7.1 The Government reserves the right to provide separately priced replacement parts as Government-furnished property (GFP) on an as-needed basis as determined by the Contracting Officer.

5.8 Pricing Exclusions – Unusual Damage.

5.8.1 Prices do not include components that have been cannibalized or that are severely damaged due to mishandling, water immersion, or crash damage. Because the SRR 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.

5.8.2 If the Contractor 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 quote and a price breakdown for repair/modification of the component shall be provided to the Contracting Officer.

5.8.3 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.

5.8.4 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.

6.0 QUALITY ASSURANCE PROVISIONS.

6.1 The contractor shall perform all inspections, tests, and checks as required to demonstrate that the supplies and/or services provided under the contract conform to the contract requirements listed herein.

6.2 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.

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

6.4 Testing. No deviations from test requirements are authorized.

6.5 Preliminary Inspection. All parts repaired under the provisions of this contract must be airworthy and suitable for installation on USCG aircraft. 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. FAILURE TO SUBMIT THE APPROPRIATE CERTIFICATES SHALL RESULT IN NONPAYMENT OF INVOICE.

6.6 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.

7.0 USCG ASSET COMPUTERIZED MAINTENANCE SYSTEM (ACMS) REQUIREMENTS

7.1 The ACMS used by the USCG is designed to capture, store, and report asset maintenance information. The contractor shall comply with all USCG ACMS documentation requirements.

7.2 Components are serial tracked under USCG ACMS. This tracking provides historical records of repairs, flight times, cycles, item location, status, and an effective method of configuration control. Components that are serial number tracked under USCG ACMS should, at the time of receipt, have a blank Component Repair Record (CRR), and a current Significant Component History Report (SCHR) attached to the component.

7.3 The Contractor shall verify the data included in the SCHR and CRR attached to the component correspond with the NSN, part number, and S/N of the component received. Promptly report discrepancies to the USCG Contracting Officer prior to performing any work.

7.4 The original CRR which includes pre-printed nomenclature, CEI number, serial number, part number and current “appropriate maintenance procedures” will be supplied with the part and must be returned with the part. The following areas of the CRR must be correctly documented: Narrative summary of work performed (cannot include references to an offsite database), facility performing work, facility work order number, date work performed. Mark “appropriate maintenance procedures” completed during rework/overhaul and authorizing signature. If unsure about which “appropriate maintenance procedures” was completed contact your government representative for clarification. Any original CRR returned not properly completed will not be accepted by the government until a properly completed CRR is received.

The information provided in the CRR will be used by the USCG to update the component SCHRs.

7.5 The contractor shall provide two copies of the completed CRR as follows:

7.5.1 One copy of the CRR shall remain with the material and is to be returned with the component upon completion of the repair.

7.5.2 A second copy of the CRR shall be mailed to:

COMMANDING OFFICER

ATTN: ACMS

AVIATION LOGISTIC CENTER

1664 WEEKSVILLE ROAD BLDG 63

ELIZABETH CITY, NC 27909-5001

7.6 The CRR is considered a deliverable under the contract, and noncompliance with instructions here in, will result in the delay or nonpayment of the invoice.

8.0 SPECIAL INSTRUCTIONS.

8.1 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 with 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 contractor is notified of an AOG requirement, the Contractor shall advise the Contracting Officer if there are additional shipping charges. The Contracting Officer will provided special shipping instructions and authorization for reimbursement in these instances.

ADDENDA TO FAR CLAUSE 52.212-4

CONTRACT TERMS AND CONDITIONS--COMMERCIAL ITEMS (SEP 2013)

ADDENDUM B

ADDITIONAL TERMS AND CONDITIONS

9.0

Contract Information

9.1

Delivery Requirements

All components received by the contractor shall be inspected, repaired, and functionally tested, in accordance with contract requirements, and returned to the USCG in serviceable RFI condition or as otherwise directed by the USCG Contracting Officer.

The USCG requires delivery as follows:

Desired Delivery of Repaired Components: No later than 30 calendar days after receipt of delivery order and component.

Required Delivery of Repaired Components: No later than 60 calendar days after receipt of delivery order and component.

Earlier deliveries are desired and acceptable.

SCHR - 1 copy shipped with component; 1 copy retained by contractor for 90 calendar days after shipment

CRR - Original and copy (2) packaged with repaired component; 1 copy within 5 workdays after issuance of Certificate of Conformance; 1 copy attached to invoice; 1 copy retained by contractor for 90 calendar days after shipment

PIP/ECP/Service Bulletin Quotes - NLT 30 calendar days after notification by Contracting Officer

Failure Data Report - Include one copy with component and attach one copy to invoice.

Replacement Part Listings - Due 15 Jan, 15 April, 15 July and 15 Oct for the previous calendar quarter.

Certificate of Conformance/Certificate of Airworthiness/FAA Airworthiness Form 8130-3 or other FAA authorized form - Include two copies with component.

Government Property Reports – Due NLT 15 Sep of each calendar year.

OEM-approved CMMs – NLT 60 calendar days following contract award.

9.2

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; therefore, no additional charges for shipping will be allowed unless indicated by a bilateral modification to the individual delivery order.

9.3

Period of Performance

The period of contract performance includes one (1) one-year base period and, if exercised, four (4) one-year option periods.

9.4

Environmental Requirements

All parts must be thoroughly cleaned IAW applicable CMMs or FAA Advisory Circular 43-205, Guidance for Selecting Chemical Agents and Processes for Depainting and General Cleaning of Aircraft and Aviation Products, to ensure they are as free as practicable of all hazardous dust to include hexavalent chromium, cadmium, lead, etc., prior to being returned to ALC. ALC may take random samples of parts to ensure they are free as practicable of all hazards. Information on these hazards can be found in Occupational Safety and Health Standards 1910.1025 (lead), 1910.1026 (Hexavalent Chromium) and 1910.1027 (Cadmium).

9.5

Shipping Instructions

Unless otherwise specified on individual delivery orders issued hereunder, deliverable items shall be shipped to the following address:

USCG ALC

Receiving Section, Bldg. 63

Elizabeth City, NC 27909-5001

Contract No.

(To be assigned at time of issuance)

Delivery Order No. ______________________________

(To be assigned at time of issuance)

9.6

Packaging and Preservation

Packaging and preservation shall include the following information:

· Material will be stored and transshipped, to various users; therefore, material must be packed and labeled suitable for shipment via land, air or sea.

· Each individual item or unit must be individually packed in a separate box, carton, or crate.

· 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 (1) year.

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

9.7

Marking Instructions

All shipping containers/packages shall be marked for delivery IAW the contract or delivery order. All components, which require special care during packing, handling or shipping shall be identified and marked appropriately. The exterior of the package or shipping container shall be legibly marked with the following information in such a manner that the marking shall not be rendered illegible when opened.

· NSN

· Part Number

· Nomenclature

· Serial Number

· Contract Number

· Delivery Order/Line Item Number

· Contractor’s Name and Address

9.8

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. 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. Markings may be brief, but should include the information below:

· A brief statement that a warranty exists

· The substance of the warranty

· The duration of the warranty

· Who to notify if the supplies are found to be defective

9.9

Inspection and Acceptance

Inspection and acceptance shall be performed at destination by USCG personnel for count, condition and proper completed documentation. Inspection and acceptance deficiencies may delay or cause rejection of invoice payments. Equipment found to have operational deficiencies will be reported on standard form "SF 368", Product Quality Deficiency Report, to the contractor for investigation. The contractor shall report findings of the investigation to the Contracting Officer, within thirty (30) calendar days after receipt of quality deficient exhibit.

9.9.1 Contractors shall provide a Certificate of Conformance signed by the contractor's authorized representative in accordance with FAR 52.246-15.

10.0

Invoicing

10.1 Invoicing Instructions

Unless otherwise specified in the schedule or on individual delivery orders issues under this contract, the contractor’s invoice shall be submitted IAW FAR 52.212-4 to the designated billing office for payment as noted below. The Contractor is HIGHLY encouraged to submit invoices electronically to ALC-Fiscal@uscg.mil.

Chief, Fiscal Branch

USCG ALC

Fiscal Branch, Bldg. 63

1664 Weeksville Road

Elizabeth City, NC 27909

Contract no. (To be assigned at time of issuance

Delivery Order no. (To be assigned at time of issuance)

10.2

Payment Information

All payments will be made electronically IAW FAR 52.232-33. The contractor may submit invoice five (5) days after shipment of items. The invoice will not be approved until all items have been receipted.