Q A_15-Q-300065.pdf

Q1: Paragraph 4.2 Unusual Damage Reporting Requirements reads as follows:

When a component is processed for unusual damage evaluation, the contractor shall within 15 calendar days of receipt of the item, submit an inspection condition report explaining the rationale for the pricing exclusion, including photographic evidence as necessary. The report shall also include a price proposal, covering all parts for needed to return the unit to serviceable condition that meets all applicable OEM or TO specifications. The report shall contain the purchase order number, line item number, national stock number (NSN), part number (P/N), nomenclature, and serial number of the component, a listing of the material required, the time needed to complete the work, and a cost breakdown including the cost of each required part and the number of labor hours. The hourly labor rate will be charged at the firm-fixed composite hourly labor rate contained in the Schedule of Supplies/Services.

Referring to the underlined words – is that the Schedule of Supplies/Services does not provide for hourly labor rates. It is, rather, a firm-fixed price schedule. How will you compute the hourly labor rate if we uncover Unusual Damage?

A1: Ideally, Firm Fixed Pricing (FFP) should be sufficient to cover all repairs to the entire assembly.

Occasionally assemblies may be received that are beyond a reasonable scope of repair. The Item manager will make a determination whether to allow Over and Above costs(O&A). It is assumed that firm fixed pricing incorporates parts and labor along with a reasonable profit. Over and above requests need to be broken down to allow the inventory manager to decide whether to provide funding for parts or issue them as Government Furnished Materials (GFM). Depending on the circumstances, the decision may go either way. An O&A increase may be allowed where GFM is supplied at no cost to the vendor. In that instance, only the labor portion would be allowed. This is for additional labor over and above what is already included in the FFP. Usually O&A requests are for parts only as labor has already been figured into the

FFP.

Q2: What paragraph of the SOW is to be priced and entered in the last line in the Schedule of Supplies/Services identified as:

Evaluation Fee NSP EA ______________________________?

A2: An evaluation fee is usually used in place of the FFP repair cost to compensate the vendor for work performed during the teardown of an entire assembly. An example would be: an assembly that is deemed Beyond Economical Repair (BER). The contract would be modified to reflect the evaluation fee for that line item. An Evaluation Fee is a reasonable estimate of the cost of work performed during evaluation.

If an O&A request is refused it is expected that the Evaluation Fee will be the amount the vendor is entitled to collect for that line item. Note: An evaluation fee should include the cost of shipping the item back to

ALC.

An evaluation fee may be quoted for each type of assembly:

Evaluation fee: Trunnion $_________________

Evaluation fee: Landing gear $________________