STATEMENT_OF_WORK_-_HSCG38-15-Q-200211.doc

HSCG38-15-Q-200211

1.0

BACKGROUND

The United States Coast Guard (USCG) currently operates a fleet of up to 102 MH-65 aircrafts manufactured by Airbus Helicopters between 1980 and 1988. USCG Short Range Recovery (SRR) missions require frequent operation within salt-laden environments and conditions, which accelerates the corrosion rate on the airframe structures and components of the aircraft. Inspection of these aircrafts in accordance with the Original Equipment Manufacturers (OEM) periodic requirements under the USCG specialized Aircraft Computerized Maintenance System (ACMS) historically reveals corrosion damage and operational wear and tear associated with the specific mission profiles and the operational environment of the USCG MH-65 fleet, which is often outside the scope of OEM published repair limits and specifications. These services are necessary for the continued support of the aircraft structures and components ensuring the missions and operational readiness of the USCG fleet of MH-65 aircraft.

2.0

SCOPE

This Statement of Work (SOW) describes the requirements of an enhanced support package consisting of various support services and a continuous improvement program for the USCG SRR aircraft fleet.

Support services under this contract include but are not limited to management of the program, technical support, logistics and supply chain management, Maintenance, Repair, and Overhaul (MRO) support, repair memo responses, additional training, and on-site representation. Management of these efforts will be led by Integrated Product Teams (IPTs) to allow the USCG to ensure the readiness of the MH-65 fleet, to reduce the overall lifecycle cost, to enhance fleet safety, to improve sustainment and logistics support, to identify training and safety improvement opportunities, and to allow for the exchange of information between the members of the various IPTs. These services may be performed at USCG facilities, OEM facilities, and other locations, as necessary. Services will assist with troubleshooting, training, damage evaluation, salvage operations, and technical or logistical support as required by the Contracting Officer’s Representative (COR).

The period of contract performance includes a one-year base period and four one-year option periods, if exercised.

3.0

OEM SUPPORT

Airbus Helicopters, Inc. (AHI) and Airbus Helicopters (AH) are to be collectively considered the OEM Team. The OEM Team will provide technical / engineering and logistics expertise necessary to support the SRR Product Line, the ALC repair shops, and the field units in their effort to maintain the airframe structure, systems, and components of the USCG’s MH-65 fleet in an airworthy condition. These services may be performed at the ALC, the USCG field units, OEM facilities and other locations, as necessary, to assist with this support of the MH-65 aircraft fleet.

3.1 Services 3.1.1 Off Site Support 3.1.1.1 Program Manager The Program Manager will oversee and direct all day-to-day activities related to any USCG project and/or IPT team activity to ensure the success of the overall program. Responsibilities include overall governance, direction of personnel, and implementation of course corrections, as required. Duties focus on project monitoring, team integration, change integration, and corrective action, as required.

3.1.1.2 Design Office Lead (Engineering) The Design Office Lead will be the primary point of contact for the customer to interface with on technical/engineering issues. Responsibilities include ensuring contract compliance with all product design requirements, planning and budgeting for assigned technical programs, and ensuring timely and accurate completion of assigned engineering tasks.

3.1.1.3 MRO Lead (Dynamic Component Repair (DCR), Pubs) The MRO Lead will be the primary point of contact for the customer to interface with on MRO issues. Responsibilities include ensuring contract compliance with all DCR and publication projects, technical assistance with part evolution and supply chain.

3.1.1.4 Logistics The Logistics Lead will be the primary point of contract for the customer to interface with on logistic issues. Responsibilities include managing the purchase and delivery of spare parts including the quotation, tracking and delivery, solving discrepancies, and customer issues.

3.1.1.5 Procurement

The Procurement Lead will work closely with both management and technical experts on the procurement of commodities and services from the purchase through delivery of the final product, which include the review and tracking of all contracts, agreements, and quality checks with subcontractors and vendors.

3.1.1.6 Contracts

The Contracts Lead will monitor and administer this contract during its life cycle (including all delivery orders for associated programs issued under it) and will communicate with the USCG Contracts Officer regularly to resolve issues, report progress, and execute modifications as needed. The Contracts Lead will also work with the Program Manager and all necessary OEM Team internal departments to ensure contract compliance.

3.1.1.7 Finance / Accounting

The Finance and Accounting lead will monitor and interpret financial information on all programs / projects related to this USCG contract. They will further research and report on factors influencing performance of the contract and any budgeting issues related to ongoing programs / projects to management. Finally, they will manage the account payable / receivable systems.

3.1.2 On Site Support

3.1.2.1 Technical Representative

3.1.2.1.1 Duties

The OEM Team will provide an on-site Technical Representative to provide technical and engineering expertise necessary to support the SRR Product Line, the ALC repair shops, and the field units in their effort to maintain the airframe structure, the systems, and the components of the USCG’s MH-65 fleet in an airworthy condition. These services may be performed at the ALC, USCG field units, OEM facilities and other locations as necessary to assist with this support of the MH-65 aircraft fleet.

The OEM’s on-site Technical Representative will be located at the USCG ALC facility in Elizabeth City, NC and will perform or coordinate, as a minimum, the following functions:

· Provide technical assistance to the SRR Production Line back shops and field units.

· Assist in the troubleshooting of technical problems related to the operation and maintenance of airframe components / systems.

· Provide data and information needed to resolve technical questions and issues associated with the operation, maintenance, product reliability and the repair of MH-65 structures, airframe systems and components in accordance with OEM specifications or as authorized by the OEM’s design office.

· Provide technical data on component changes and improvements including revised component rejection criteria using the process outlined in Exhibit 2.

· Provide specific information so the customer can operate the MH-65 aircraft in accordance with OEM performance specifications (specifically, the AS366GA Flight Manual and Airworthiness Limitations / PRE).

· Provide technical information to assist the SRR Product Line with timely and appropriate responses to MH-65 aircraft flight safety, ground safety, catastrophic failure issues.

· Assist with planning, salvaging, and shipping of damaged aircrafts, structures and components to the appropriate repair facility.

· Conduct engineering investigations and analyze results to identify root causes and failure modes.

· Determine when critical parts meet the OEM’s specifications for continual use and propose repair solutions when necessary.

· Draft definitions of minor modifications as needed to solve aircraft installation constraints.

· Perform an annual audit of USCG repair capabilities at ALC and provide a report detailing findings and recommendations, if any, at the request of the USCG.

· Provide OEM corrosion prevention plans and/or develop limits for acceptable corrosion. For individual components, provide an OEM determination as to the suitability of the individual component (specific serial number or specific item) to remain in service, be repaired or be scrapped. Cost estimate will be provided by the OEM team based upon USCG training requirements. Tasks will be funded via an individual delivery order.

· Support USCG engineering efforts by providing independently developed small to medium-sized repair memos and engineering studies. The Repair Memo process is outlined in Exhibit 2.

All questions or requests for assistance will be coordinated via the COR, prioritized, and then provided to the on-site Technical Representative. The Technical Representative will, at all times, act in an advisory capacity only and at no time is permitted to deviate from published maintenance procedures or make airworthiness or suitability for flight determinations. If the OEM and USCG published procedures differ, the technical representative shall be required to inform the COR and request further guidance. Recommendations to change maintenance procedures, inspection methods or repair limits are expected to be provided as necessary under the terms of this contract and all responses for such shall be made to the COR.

3.1.2.1.2 Personnel Requirements

To ensure the capability to perform the functions of the position, on-site Technical Representative(s) will possess the following skills and abilities:

· Experience in all airframe components and systems (including engine/airframe interface), installed and utilized on the MH-65 aircraft (or Dolphin-family airframes and airframes with related systems) with the exception of the avionics suite.

· A minimum of five (5) years of experience as a trained field service engineer with a helicopter OEM.

· Experience interpreting OEM drawings as required to support USCG personnel.

· Access to complete and current technical drawings, OEM manuals and maintenance documentation.

· Access to component design and test data in manufacturing process specifications to assist USCG personnel in evaluating component damage and failure, rejection criteria due to cracks, corrosion, wear or other damage, and repair of equipment and modification of components.

· Experience in working with Government / military type contracts / customers.

· Interface directly as needed with OEM technical, engineering, product support and manufacturing elements.

· Remain familiar with USCG directives and publications pertaining to the operation and maintenance of MH-65 airframe components and systems; provide technical assistance related to updating and revision of both U.S. Coast Guard and OEM publications and manuals.

· Computer skills necessary to prepare project documentation, correspondence and other reports in standard Microsoft Office (MS) products.

· Effective communications skills in a written, verbal, and physical aspect regarding topics which are usually of a technical nature.

3.1.2.1.3 Work Hours / Time Off

· The services of the Technical Representative shall be at the fixed price contained in this schedule per working day. The normal workday will be eight hours, Monday through Friday (40 hours per week). After hours contact can be made for AOG or workstop issues.

· The contractor personnel may not exceed thirty (30) days per year of any type of leave (to include vacation, sick, personal, etc). The use of more than ten (10) consecutive days of leave for any reason shall require the prior coordination with the COR. When the contractor’s on-site technical representative takes leave, an alternate POC will be provided to coordinate the services provided to the USCG.

· The schedule prices of the contract include holiday observances in accordance with the U.S. Government’s holiday schedule.

3.1.2.2 Other Representatives as Required (Reserved)

3.1.2.3 Travel

When the OEM Team On-Site Representative’s attendance is required outside of the ALC, where both the USCG and the OEM Team agree that attendance is essential, the travel days will count as billable work days. All travel costs for these meetings will be the responsibility of the OEM Team (e.g. Program Management Reviews) unless requested specifically by the USCG (e.g. visit to a field unit). To allow for advanced planning and minimize costs for all organizations, dates for the meetings will be coordinated as far in advance as possible (minimum of three weeks in advance).

3.2 Meetings

3.2.1 Program Management Reviews (PMR) There will be two (2) face-to-face meetings per calendar year, with one (1) occurring in France and one (1) occurring in the United States. These meetings may occur at different locations as determined by the attendees. The OEM team’s attendees will be the leads for all functions designated in Section 3.1.1 and the on-site representatives will be the lead for all functions designated in Section 3.1.2 of this SOW.

3.2.1.1 Deliverables

The OEM Team will coordinate the logistics meetings for the PMRs. The agendas, attendee lists, meeting minutes, and action items will be produced by the OEM Team in MS Word or MS Excel format. The OEM Team will maintain version control and certify the final minutes in a PDF version.

For all PMRs, the following will be provided by the OEM Team:

3.2.1.1.1 Agenda

The OEM Team will submit a draft version of the agenda to the USCG for comments and approval three (3) weeks prior to the PMR meeting. The final version of the agenda will be submitted to the USCG one (1) week prior to the PMR meeting.

The agenda will include the following topics as a minimum:

· Program management and business development

· Review of action item lists

· Engineering (status of projects)

· Logistics (i.e. supply chain management metrics such as backorders, current status on critical parts, etc.)

· Obsolescence (status of projects)

· Continuous improvement updates

· Other topics as required.

3.2.1.1.2 Attendees List

The OEM Team will provide a meeting attendee list with the names of all those scheduled to participate in the PMR.

3.2.1.1.3 Minutes of Meeting & Action Items The OEM Team will provide a draft of meeting minutes within fifteen (15) business days following the meeting. The minutes generated during the PMRs will be vetted through the attendees and their organizations. Once all parties agree with the language of the minutes, they will become a record of the tasking and/or agreements reached during the PMR.

The OEM Team will provide an updated list showing Action Items (AI) generated and completed during the PMR. This Action Item list will also show items currently open, the due dates, assigned POC, and any status / comments associated with each item. POCs will serve as the lead for these AIs and are expected to meet with other members of the USCG / OEM team, as required, to generate a coordinated solution to the specific AI(s).

3.2.1.2 Travel

Travel will be coordinated and funded by respective organizations. To allow for advanced planning and minimize costs for all organizations, dates for the meetings will be coordinated as far in advance as possible (minimum of three weeks in advance).

3.2.2 IPTs In order to support the USCG mission, the contractor team will host a series of IPTs with the USCG. These IPTs will facilitate regular meetings and communications between team members and subject matter experts (SME) in order to identify, track, and complete projects to meet USCG objectives. The IPT will consist of the OEM Team and USCG.

The OEM will provide the following:

· A clear organizational structure for the program, presented in an IPT format. The current structure and members are included as Exhibit 1. Any change/update to this IPT document will be submitted to the USCG for approval.

· Points of Contact (POC) for all OEM Team members to facilitate an effective, efficient partnership.

· An updated organizational chart assigning and identifying member roles and responsibilities as part of the IPT approach.

· The IPTs identified in Exhibit 1, as well as any IPTs added to Exhibit 1 in the future, will hold regularly scheduled meetings at least twice per month, or as otherwise agreed to by the IPT members.

3.2.2.1 Deliverables

3.2.2.1.1 Agenda

For regular IPT and other meetings, the agenda will include:

· Update on approaching deliverables in the next month from action item list

· Emerging issues 3.2.2.1.2 Trackers

IPT trackers will be updated and submitted to the appropriate members of the IPT team no later than two business days prior to the IPT meeting / telecom. The Tracker will include, but not be limited to, action items, completed items, open items, primary POC, due dates, and any status / comments associated with each item. POCs will serve as the lead for their assigned items and are expected to meet with other members of the IPT team to coordinate a response / solution to the action item.

3.2.3 Travel

Although not expected, any travel associated with the IPT meetings will funded by the respective organizations. To allow for advanced planning and minimize cost for all organizations, dates for the travel will be coordinated as far in advance as possible (minimum of two weeks in advance).

3.2.4

SME

As designated by individual IPTs, members of the various staffs of the OEM Team and the USCG will meet to discuss issues and resolve tasks as assigned by the IPT. These meetings will be planned by the peers between organizations.

3.2.4.1 Deliverables

The OEM Team will coordinate the meeting logistics for the SME meetings. The agendas, trip report, and action items will be produced by the OEM Team in MS Word or MS Excel format. The OEM Team will maintain version control and certify the final minutes in a PDF version.

For all SME meetings, the following will be provided by the OEM Team:

3.2.4.1.1 Agenda

The OEM Team will submit a draft version of the agenda to the USCG for comments and approval two (2) weeks prior to the SME meeting. The final version of the agenda will be submitted to the USCG two (2) business days prior to the PMR meeting.

3.2.4.1.2 Trip Report & Action Items

The OEM Team will provide a draft trip report within ten (10) business days following the SME meeting. The trip report will be vetted through the attendees and their organizations. Once all parties agree with the language of the trip report, they will become a record of the tasking and/or agreements reached during the SME meeting.

The OEM Team will provide a list of any action items generated during the SME meeting. This list will include the items opened during the meeting, the due dates, assigned POC, and any status / comments associated with each item. Once approved by the attendees of the SME meetings, the action items will be transferred to the appropriate IPT for completion.

3.2.4.2 Travel

Travel will be coordinated and funded by the USCG. To allow for advanced planning and minimize costs for the USCG, dates for the meetings will be coordinated as far in advance as possible (minimum of three weeks in advance).

3.2.5 Dynamic Component Repair (DCR) Reviews Certified personnel from the OEM Team (France) will visit the ALC once per option period for two weeks (ten full working days) to assist the ALC DCR shop. This will be completed at no additional cost to the USCG.

3.2.5.1 Deliverables

The OEM Team will coordinate the meeting logistics for the DCR reviews. The agendas, trip report, and action items will be produced by the OEM Team in MS Word or MS Excel format. The OEM Team will maintain version control and certify the final minutes in a pdf version.

For all DCR reviews, the following will be provided by the OEM Team:

3.2.5.1.1 Agenda

The OEM Team will submit a draft version of the agenda to the USCG for comments and approval two (2) weeks prior to the DCR meeting. The final version of the agenda will be submitted to the USCG two (2) business days prior to the DCR meeting.

3.2.5.1.2 Trip Report & Action Items

The OEM Team will provide a draft trip report within ten (10) business days following the DCR meeting. The trip report will be vetted through the attendees and their organizations. Once all parties agree with the language of the trip report, they will become a record of the tasking and/or agreements reached during the DCR certification meeting.

The OEM Team will provide a list of any action items generated during the DCR meeting. This list will include the items opened during the meeting, the due dates, assigned POC, and any status / comments associated with each item. Once approved by the attendees of the DCR meetings, the action items will be transferred to the appropriate IPT for completion.

3.2.5.2 Travel

Travel is not to be priced separately and should be priced as part of the contract. To allow for advanced planning and minimize costs, dates for the meetings will be coordinated as far in advance as possible (minimum of three weeks in advance).

3.2.6 Other Meetings (Reserved)

3.3

Reports 3.3.1 Weekly

3.3.1.1 Obsolescence / Logistics

Weekly logistics status reporting will include:

· USCG Critical Item Report (P2/P3 Report)

· Expedited deliveries of future orders when requested and when possible

· Revised delivery schedules in accordance with USCG maintenance, when requested and when possible

· Specific follow-up on expedited parts (Priority 2,3,5,6,12)

· Aircraft on Ground (AOG) and work-stop parts status (Daily status if required)

· Warranty and Mis-manufactured status

3.3.2 Monthly

3.3.2.1 Technical

At a minimum and in addition to the requirements above, the on-site Technical Representative will provide on a monthly basis a status report which will include:

· A list of all questions posed or any additional assistance requested by the USCG and the disposition of those requests.

· Status of any open action items from previous monthly reports.

3.3.2.2 Obsolescence / Logistics

Monthly obsolescence / logistics status reporting will include:

· Monthly back-ordered parts report

· Monthly back-order trend analysis

· Monthly repair status report

3.3.2.3 Program Status Monthly obsolescence / logistics status reporting will include:

· Program Overview

· Upcoming Events

· Project Schedules

· Technical Status

· Unscheduled Maintenance Effort Index (UMEI)

· MH-65 Modifications / Upgrades

· IPT Actions / Concerns

· Logistical Status

· Critical Parts

· Backorders

· Forecasting

· Obsolescence Status

· Evolution of parts

· Impending Obsolescence

3.3.2.4 Technical – Special (Reserved)

3.3.2.5 Logistics – Special (Reserved)

3.3.2.6 Obsolescence - Special (Reserved)

4.0

CONTINUOUS IMPROVEMENT PROGRAMS (CIP)

4.1

Vision

The USCG and the OEM Team will work together to develop a list of potential opportunities for improvement. This list will become a living document for historical purposes showing potential opportunities, actionable tasks to pursue these opportunities, and the current status. These opportunities may be reviewed as leadership changes or other constraints allow pursuit of the opportunity.

This list should be discussed, reviewed and updated during the PMRs as a minimum.

In order to fund preliminary studies relating to these improvement opportunities, USCG will fund studies as stand-alone delivery orders, and may request firm, fixed-price proposal(s) from the OEM Team.

These program(s) and studies will identify opportunities for improvement in the following areas, which may result in the issuance by USCG of individual delivery orders against this contract. Examples include, but are not limited to, the following:

4.1.1 Unscheduled Maintenance Effort Index (UMEI)

The OEM Team will propose component modifications or adjustments to the maintenance, inspection or overhaul of the airframe or any components. Recommendations in this area will focus on reducing the effort by customer maintenance personnel in the field with a goal of optimizing maintenance labor hours per flight hour, and analyses of material & maintenance cost drivers and recommendations to lower life cycle costs.

4.1.2 MH-65 Modifications / Upgrades

The MH-65 Modification / Upgrade project is intended to develop and evaluate potential modifications / upgrades to extend the MH-65’s service life up to the calendar year 2035 and / or 30,000 flight hours. Potential opportunities will include projects to improve the performance, the safety, and the supportability of the MH-65 fleet.

4.1.3 Technical & Obsolescence Studies

Due to continual technical advancements and the obsolescence of aircraft parts, the OEM Team will propose to the USCG potential opportunities for improvements with the MH-65 fleet.

4.2 Funding

Upon full agreement between the OEM team and the USCG on the scope, SOW, and all relevant technical details, the OEM Team will respond to USCG quote requests by providing Rough Order of Magnitude (ROM) quotes for services described above, along with other services not specifically priced in this contract, within five working days of request for simple inquiries (for example, services or spares included in published catalogs) and within 30 working days of request for more complex requests (for example, those involving new services, designs, or research, as well as the items described under the CIP). AHI will notify the USCG immediately when these timelines cannot be met. This effort will be to meet budget cycle limitations from the USCG.

The USCG request will include a significant level of programmatic, technical, and logistical details which will allow the OEM team to provide a thorough draft for the review by the USCG. Once this information is received by the OEM Team, the response process described above will commence.

4.3 Travel

Travel cost associated with the definition of CIP tasks will be coordinated and funded by the respective organizations as agreed to by both the USCG and the OEM team. To allow for advanced planning and minimize costs for all organizations, dates for the meetings will be coordinated as far in advance as possible (minimum of three weeks in advance).

Travel cost associated with the performance of the CIP projects will be estimated in the ROM quotes in response to the USCG request.

5.0

TRAINING

The OEM Team will perform training as requested and tasks will be priced separately. Examples of such training include, but are not limited to:

· Blade Training

· DCR Refresher Training (VDI, NDI, etc.)

· Training specially included with separate tool purchases (MGB Oil Pump Test Stand, etc.)

· ALC Gearbox shop inspection and certification

· On the Job Training to SRR field units, the SRR Product Line, and ALC repair shops. Training may include updated procedures, repair limits, ground support equipment, tooling requirements / inspections and other topics as required.

6.0 LATE DELIVERIES

Consideration may be negotiated for any late deliveries under this contract. This could include monetary decreases to the order, accelerated deliveries on other items, etc. Any possible late delivery must be communicated to the COR and Contracting Officer as soon as practicable. Lack of early and open communications regarding late deliveries can result in negative past performance ratings. Any late delivery where consideration is not negotiated can result in negative past performance ratings.

7.0 DELIVERY SCHEDULE

CLIN 1*

Technical Representative Services Monthly

CLIN 2*

Sustaining Engineering

As specified on individual orders

* Includes respective option contract line item numbers

8.0 F.O.B. POINT

Shipments under this contract shall be F.O.B. destination.

9.0 SHIPPING INSTRUCTIONS

Unless otherwise specified, correspondence, documents, and reports shall be submitted to the following address to the attention of the Contracting Officer.

Data deliverables shall be sent to the attention of the COR, with a copy to the Contracting Officer.

USCG Aviation Logistics Center

SRR Product Line, Building 75

Elizabeth City, NC 27979-5001

Mark For Contract No. To be assigned Deliverable items shall be shipped to the following address unless otherwise specified:

USCG Aviation Logistics Center

Receiving Section, Building 63

Elizabeth City, NC 27909-5001

Mark For Contract No. To be assigned Delivery Order/Item No. (To be assigned at time of issuance)

10.0 PACKAGING, PRESERVATION AND PACKING

Each deliverable item shall be individually preserved, packaged, and packed in accordance with best commercial practices. However, packaging material shall NOT consist of popcorn, shredded paper, Styrofoam of any type, or peanut style packaging. Items shall be individually packaged and labeled. Labeling shall include the appropriate National Stock Number, Part Number, Nomenclature, Quantity, Contract Number and Delivery Order/Item Number. Labeling data shall be attached to the outside of the shipping container. Bar coding is not required.

11.0 INSPECTION AND ACCEPTANCE

Unless otherwise set for on individual delivery orders, inspection and acceptance of supplies and/or services furnished hereunder shall be performed by the COR at ALC, Elizabeth City, North Carolina.

12.0 INSURANCE REQUIREMENTS

IAW Federal Acquisition Regulation (FAR) 52.228-5 incorporated herein entitled “Insurance-Work on a Government Installation”, the Contractor and each Subcontractor performing work under this contract on a Government installation shall be required to procure and maintain, during the entire period of performance under this contract, the following minimum insurance and shall furnish a certificate thereof (executed by an officer or employee of the insurer authorized to execute such certificates) to the Contracting Officer prior to award of contract. The certificate(s) shall contain an expiration date and an endorsement stating that, “Any cancellation or material change in the coverage adversely affecting the Government’s interest shall not be effective unless the insurer or the Contractor gives advance written notice of cancellation or change to the Contracting Officer”.

a. Workers compensation and employer’s liability. Contractor shall comply with applicable Federal and State Workman’s Compensation laws IAW the State(s) where the work is to be performed on a Government installation and shall provide for at least $100,000 employer’s liability coverage, except in States with exclusive or monopolistic funds that do not permit workers’ compensation to be written by private carriers.

b. General liability. General liability insurance written on the comprehensive form of policy shall provide for bodily injury of at least $500,000 per occurrence.

c. Automobile liability. Automobile liability insurance written on the comprehensive form of policy shall provide for bodily injury of at least $200,000 per person and $500,000 per occurrence and $20,000 per occurrence for property damage.

13.0 SUPERVISION OF CONTRACTOR EMPLOYEES

The Contractor personnel are employees of the Contractor and under the administrative control and supervision of the Contractor. The Contractor, through its personnel, shall perform the tasks prescribed herein. The Contractor shall select, supervise, and exercise control and direction over its employees under this contract. The Contractor shall not supervise, direct, or control the activities of Government personnel or the employee of any other contractor, except any subcontractor employed by the Contractor on this contract/order. The Government shall not exercise any supervision or control over the Contractor in the performance of contractual services under this contract. The Contractor is accountable to the Government for the actions of its personnel.

In performance of this contract, the Contractor’s management responsibilities include, but are not limited to, the following:

· Ensure employees understand the work to be performed on orders to which they are assigned.

· Ensure employees know their management chain and adhere to company policies and exhibit professional conduct to perform in the best interest of the Government.

· Ensure employees adhere to applicable law and regulation governing contractor performance and relationships with the Government.

· Ensure contract employees do not create actual or apparent personal service relationships.

· Assess employee performance regularly and provide feedback to improve overall task performance.

· Ensure high quality results are achieved through task performance.

14.0 PERSONNEL ACCESS

During the life of this contract, the Contractor’s personnel may have access to Government facilities as required. During all operations on Government premises, the Contractor’s personnel shall comply with the rules and regulations governing the conduct of personnel and the operation of the facility. The Government reserves the right to require contractor personnel to “sign-in” upon entry and “sign-out” upon departure from the Government facilities. Certain Government agencies may have security requirements, which necessitate the use of building access passes. No direct charges to any order or order issued under a contract may be made for personnel or facility security clearances.

15.0 TRAVEL

The necessity for travel will be determined by the Contracting Officer in conjunction with the COR.

All travel shall be accomplished by commercial carrier, privately owned automobile, or auto rental and the cost shall be paid by the Contractor. If commercial transportation is not readily available, the Government may furnish transportation. If the government agency furnishing such transportation requires payment, the Contractor shall be responsible for all charges. All USCG directed travel lodging, meals and incidental expenses incurred by the contractor shall be reimbursed based on actual costs in accordance with FAR 31.205-46, Travel Costs.

The contractor’s invoice shall be submitted monthly. Actual paid receipts shall support all travel expenses.

16.0 DELIVERY ORDERS FOR SUSTAINING ENGINEERING SUPPORT

The contractor shall submit a technical and price proposal upon receipt of a SOW for sustaining engineering support. The delivery schedule shall be included, as well as any other pertinent information. After evaluation of the technical/cost proposal by the USCG, a decision will be made whether to negotiate and issue a delivery order. The Contractor is advised that the USCG is under no obligation to procure any of the tasks identified under this contract.

Prototype and production quantities of items designed/developed/modified under this contract may also be purchased via this contract. Prices for prototype/production items will be negotiated prior to issuance of the delivery order. Acceptance procedures and any other special instructions will be addressed on each individual delivery order.

17.0 RIGHTS IN DATA

It is anticipated that performance of this contract may require development work. Data first produced in the performance of this contract shall be labeled with the following legend, unless otherwise agreed to by USCG and the OEM Team for individual delivery orders:

Distribution is authorized to DHS/CG/DOD and contractors working on their behalf. Release of this document to any other OEMs or contractors not working on Airbus-related programs requires prior approval of the OEM team.

18.0 QUALITY ASSURANCE SURVEILLANCE PLAN

The Government reserves the right to use a Quality Assurance Surveillance Plan (QASP) to evaluate contractor performance. Furthermore, the Government may, at its discretion, periodically review and revise the QASP during the life of the contract. Changes to the QASP may be either unilateral or bilateral and will not entitle the contractor to any equitable adjustment or any other compensation.

19.0 CONTRACTOR ACCESS

The Contractor shall only access those areas of USCG information technology resources (e.g. computer equipment, networking equipment, telecommunications equipment, cabling, network drives, computer drives, network software, computer software, software programs, intranet sites, internet sites) explicitly stated in this contract and/or approved by the COR in writing as necessary for performance of work under this contract. Any attempts by Contractor personnel to gain access to any information technology resources not explicitly authorized by the COR is strictly prohibited. In the event of violation of this provision, employees may be subject to the immediate removal IAW section 22. Contractor access to USCG networks from a remote location is a temporary privilege for the mutual convenience it offers while the Contractor performs business for the USCG. It is not a right, a guarantee, a condition of the contract, nor is it Government Furnished Equipment (GFE). Contractor access will be terminated for unauthorized use. The Contractor agrees to hold the USCG harmless and the Contractor will not request additional time or money under the contract for delay resulting from unauthorized use.

20.0 BACKGROUND CHECK(S) / CAC ACCESS

20.1 Financial and Criminal Background Checks(s)

Contractor employees that will perform work at a Government facility and those who will have access to AMMIS or other USCG systems shall have a Financial and Criminal Background check conducted. These employees are required to complete the following steps prior to commencement of performance:

· Have an investigation completed at a National Agency Check with Inquiries (NACI) level or higher and obtain fingerprints.

· Complete an e-QIP online SF-85 form.

· Complete Form OF-306, Declaration for Federal Employment.

· Complete Department of Homeland Security (DHS) Credit Release Form DHS 11000-9.

· Complete and pass Information System Security (ISS) Training and sign the Automated Information Systems (AIS) User Acknowledge Form. By signing this agreement, the individual will be acknowledging their responsibility to properly use and safeguard all USCG information technology resources and related information.

20.2 ISS – Contractor Background Checks

In order to obtain a Government computer account and Government issued Common Access Card (CAC), the Contractor employee shall have an investigation completed at a NACI level or higher. In addition to a NACI, the following investigations will meet or exceed the USCG's requirements:

· Single Scope Background Investigation (SSBI).

· Single Scope Background Investigation - Periodic Reinvestigation (SSBI-PR).

· Phased Periodic Reinvestigation (PPR) (equivalent to an SSBI-PR).

· Access NACI (ANACI.)

· National Agency Check with Local Agency and Credit Checks (NACLC).

· Periodic Reinvestigation-Secret (PRS).

· Periodic Reinvestigation (PRI).

· Minimum Background Investigation (MBI).

· Limited Background Investigation (LBI).

· Background Investigation (BI).

· Child Care NACI (CNACI).

20.3 Previous Investigations

If the Contractor employee has had one (1) of the previously mentioned investigations completed with no negative findings, then this shall be verified by the Contractor on company letterhead and emailed to ALC-ContractorBI@uscg.mil with the subject line "Background Check Verification". A template for this document is available from the Contracting Officer. If the Contractor employee does not have a previous investigation that meets the criteria listed above, then the following shall be completed:

20.4 Initiating New Background Checks

Send an email to ALC-ContractorBI@uscg.mil with the subject line "Initiate Background Check". The body of the email shall contain the following information:

a) SSN

b) Full Name, First, Middle and Last

c) Applicant's Email Address

d) Contractor Program Manager Email Address

e) Date of Birth

f) City of birth

g) County of birth

h) State of birth

i) Country of birth

j) Contract Number

k) Contract Expiration Date

This information will be used to set up an account for the applicant in the Office of Personnel Management's (OPM) e-QIP system. E-QIP is an online system used to submit required information for background checks. Once the account has been set up, an email will be sent to the applicant's address which will contain a link to the e-QIP system. The applicant will then need to go to this link and follow the prompts to complete an online SF-85 form. The e-QIP link is available via the internet and can be accessed anywhere a normal website is accessed. Once the applicant has completed the online form, they will be directed to print two (2) signature sheets. These signature sheets shall be printed and signed by the applicant and submitted to ALC as explained in section 20.3.

20.5 Obtain Fingerprints

The applicant shall be fingerprinted at one (1) of the following locations:

· Elizabeth City USCG, Building 35. This office will only conduct fingerprints on Wednesdays between 0800 and 1130. The applicant will need to provide their driver's license or a Government issued identification (ID). The fingerprints will be electronically submitted to the USCG Security Center.

· USCG Security Center, 1441 Crossways Blvd. Suite 102, Chesapeake, VA. Fingerprints are conducted Tuesdays and Thursdays between 0900 and 1500. The applicant will need to provide an ID as described above. The fingerprints will be electronically submitted to the USCG Security Center.

· Local Sheriff’s Office. The applicant will need to provide an ID as described above and will need to inform the deputy that the fingerprints are being conducted for a USCG security background check. The applicant will need to request two (2) copies of their fingerprints which will be provided to them on FD-258 fingerprint cards. These cards shall be submitted to ALC as explained in section 20.3.

20.6 Required Forms

The following required forms shall be completed:

· Form OF-306, Declaration for Federal Employment. Only blocks 1, 8, 9, 10, 11, 12, 13, 16 and 17a need to be completed.

· DHS Credit Release Form (DHS 11000-9).

20.7 Submitting Required Documentation

Once these steps have been completed, the two (2) signature sheets, OF-306 and the DHS 11000-9 may be scanned and emailed to ALC-ContractorBI@uscg.mil with the subject line "Completed Security Package". These documents cannot be combined into one (1) attachment. They should be scanned and attached as four (4) separate documents. The fingerprint cards cannot be accepted as a scanned document. If the applicant obtained their fingerprints at the Sheriff's Office, the fingerprint cards shall be delivered to the Standards and Security Branch in the Information Systems Division (ISD), Building 63, ALC.

20.8 Final Steps

After the required documents have been received, the USCG will compile them in e-QIP and submit them to the USCG Security Center. At this point, no further action can take place to process the computer account and CAC until ALC receives a favorable fingerprint report back from the USCG Security Center. The expected wait time is three (3) to four (4) weeks.

When the USCG receives notification of a favorable fingerprint check, notification will be provided to the Contractor’s Program Manager and the applicant will be requested to report to the Standards and Security Branch in ISD, Building 63, ALC. The applicant will then be required to complete and pass ISS Training and sign the AIS User Acknowledge Form. The ISS Training will be made available to the applicant on workstations located in the Standards and Security office area at ALC. For Contractor employees not physically located at ALC, the COR will coordinate with the Standards and Security Branch to determine how to complete the required briefing and ISS training. Once the applicant has successfully completed the ISS training and signed the AIS form, a request will be submitted to the USCG’s Centralized Service Desk St. Louis, Missouri to request the applicant's computer account be created. The process shall also be completed before a Government CAC is issued.

21.0 GOVERNMENT FURNISHED FACILITIES:

The following government furnished items will be provided for USCG business use only:

Suitable office space, furniture, supplies, Telephone, internet and facsimile services.

22.0 REMOVAL AND REPLACEMENT OF PERSONNEL

The contractor shall have the right to remove or replace personnel assigned and to substitute other qualified personnel in lieu thereof, provided that written notice of such actions is provided to the Contracting Officer, a minimum of thirty days prior to the effective date.

The Contracting Officer may direct the removal of contractor employees of the Contractor, including employees of a subcontractor at any tier, who are deemed incompetent, careless, insubordinate, unsuitable, a security risk or otherwise objectionable. Any delays in or increased costs of performance resulting from the Contracting Officer’s direction under this paragraph shall not be considered to be excusable delay or beyond the control and without the fault or negligence of the Contractor, and shall not be grounds for an equitable adjustment.

The contractor shall be permitted a break in services rendered for a period not to exceed 30 days, whether the requirement for removal or replacement of personnel is at the request of the Government or the contractor.

All costs incurred with removal and replacement of personnel will be a contractor’s expense.

23.0 INSTRUCTIONS, POLICY, AND PROCEDURES

Contractor personnel must follow all USCG instructions, policies, and procedures.

24.0 ADDITIONAL SUPPORT

Additional contractor support may be ordered under this contract as the needs arise.