PWS - 70Z03823RB2000006 - Attachment 2.pdf

Performance Work Statement (PWS)

MH-65 Engine Support

70Z03823RB2000006

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PERFORMANCE WORK

STATEMENT

FOR THE MH-65

ENGINE SUPPORT BY THE HOUR

Prepared by:

United States Coast Guard, Aviation Logistics Center, Short Range Recovery Division

1664 Weeksville Road Hangar 75

Elizabeth City, NC 27909

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Table of Contents

1.0 General

1.1 Background

1.2 Scope

1.3 Contracting Officer’s Representative (COR)

2.0 Applicable Documents

2.1 Industry Documents

2.2 Availability of Documents

2.3 Order of Precedence

3.0 Depot Repair/Overhaul

3.1 Provide Depot Repair/Overhaul

3.2 Receipt of Engines, Modules and Engine Components at Depot Repair Facility

3.3 Repair of Faults

3.4 Field Maintenance/Repair

3.5 Modification

3.6 Acceptance Testing

3.7 Time Between Overhaul (TBO)

3.8 Minimum Hours before Scheduled Removal

3.9 Removal for Engine Power Check (EPC) Failure

3.10 Test and Evaluation/No Fault Found

4.0 Asset Management

4.1 Maintain Field Inventory

4.2 USCG Inventory System

4.3 Changes to Field Inventory

4.4 Spare Engine Inventory

4.5 Field Inventory Redistribution (Parts Pooling)

4.6 Parts Catalog

4.7 Special Tools

4.8 Storage of Inventory

5.0 USCG Shipment of Units

5.1 Shipping Repairable Units

5.2 USCG-Directed Shipments

6.0 Contractor Shipment of Assets

6.1 Shipping RFI Assets from Repair Facilities

6.2 Aircraft on Ground (AOG)

6.3 Contractor Shipment Timeframes

7.0 Delivery Requirements

7.1 Government Required Delivery for Priced CLINs

7.2 Government Required Delivery for Not Separately Priced (NSP) CLINs

8.0 Technical, Maintenance and Engineering Support

8.1 Technical Support Representatives

8.2 Technical Support Responsibilities…………………………………………..………….19

8.3 Review USCG Technical Information

8.4 Interface With and Assist the ALC Engine Shop………………………………………………..21

8.5 Technical Representative Deliverables…………………………

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8.6 Engineering Liaison…………………………………………….……………...…..……………22

8.7 Telework

9.0 Training

9.1 Training Requirements

9.2 Regional Training

9.3 Optional Training .................................................................................................................... ….23

10.0 Support Coordination

10.1 Program Management Review (PMR)

11.0 Performance Metrics

11.1 Quality Assurance Surveillance Plan (QASP)

12.0 Escalation of Rates

12.1 SBH Rate Escalation

12.2 Labor Rate Escalation

12.3 Test & Evaluation Inspection Fee/No Fault Found Escalation

12.4 Engine/HMU Overhaul Cost Escalation

13.0 Exclusions from the SBH Pricing

13.1 Excluded Services

13.2 Exceptions

13.3 Teardown/Evaluation Report

13.4 Exclusion Proposal

13.5 Exclusion Processing

14.0 QA

14.1 Contractor’s Quality System

14.2 Responsibility for Inspections and Tests

14.3 Configuration Management Program

14.4 Continuous Enhancement Program

14.5 Product/Engineering Changes

14.6 Service Bulletins

15.0 Records and Reports

15.1 Documentation and Tracking

15.2 Engine/Module Enrollment Form

15.3 Engine Records

15.4 Significant Component History Report (SCHR)

15.5 Component Repair Record (CRR)

15.6 Airworthiness Certification

15.7 Government Property Reports

15.8 Material Inspection and Receiving Report (DD-250)

15.9 Subcontracting Plan and Reports

16.0 Technical Performance Access and Disclosure

16.1 Technical Support Access and Disclosure

16.2 Notification

16.3 Access

16.4 Technical Data

16.5 Data Rights and Confidentiality

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17.0 Government Furnished Data

17.1 SBH Information

17.2 Mission Profile

17.3 Government System Access

17.4 Financial and Criminal Background Check(s)

18.0 Property

18.1 Government Furnished Property

18.2 Contractor Work Space

18.3 Contractor Provided Facilities

18.4 Damage to Supplies, Materials, Equipment and Property

19.0 Aircraft Accidents or Incidents

19.1 Accident or Incident Investigations

19.2 Notice of Incident

19.3 Notice of Modification

20.0 Contractor Requirements

20.1 Insurance Requirements

20.2 Identification of Contractor Employees

20.3 Utilizing Electronic Mail (E-mail)

20.4 Conflict of Interest

20.5 Supervision, Direction, or Control

21.0 Travel

21.1 Travel Policy

21.2 Travel Reimbursement

22.0 Removal or Replacement of Personnel

22.1 Key Personnel

22.2 Non-Key Personnel

22.3 Removing Contractor Employees for Misconduct/Non-Performance/Security Reasons

22.4 Replacement of Personnel

22.5 Evaluation of Requirements upon Removal of Key Personnel

22.6 Proposal of Contractor Employees Previously Removed

23.0 Local Regulations, Instructions and Directives

23.1 Contractor Compliance

23.2 Vehicle Registration

23.3 Parking and Traffic Control

23.4 Tobacco Policy

23.5 Environmental, Safety, And Occupational Health (ESOH)

24.0 Termination/Completion……...……………………………………………………………..48

24.1 Termination/Completion…

24.2 Consumables

24.3 LRUs

24.4 Modules

24.5 Engines

25.0 Reimbursement

25.1 Credit for Engines Paid

25.2 Crediting procedures

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25.3 Repair Assistance

25.4 Engine Return……………………………………………………………………….……..…….49

26.0 List of appendices and attachments

Appendix A - Listing of Contract Acronyms and Definitions

A.1 Acronyms A.2 Contract Definitions

**Remainder of this page left intentionally blank**

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1.0 General

1.1 Background

The United States Coast Guard (USCG) operates a fleet of ninety eight (98) MH-65 helicopters. In

2004, a major acquisition to modernize the USCG’s MH-65 helicopter was initiated as part of the

Deepwater Project. This project was later subdivided into six (6) discrete segments to increase capability and extend the life expectancy of the MH-65 aircraft. Discrete Segment 1 focused on replacing the MH-65’s engines with the Safran Helicopter Engines USA, Inc. Arriel 2C2CG engines and associated dynamic components. The USCG requires continued Support by the Hour (SBH) to provide comprehensive sustainment for the engines.

1.2 Scope

For the duration of this contract (including option periods, if exercised), the Contractor shall provide all support required for the USCG to operate Arriel 2C2CG engines on a firm fixed price per flight hour basis. That support shall include repair, overhaul, labor (except for labor required for field level maintenance that will be performed by the USCG), parts, modules, special tools, test equipment, and facilities necessary to perform the SBH services set forth herein at the rates specified in the Schedule.

1.2.1 The SBH contract line item numbers (CLINs) in the schedule include the cost for all Contractor sustainment efforts outlined in the Performance Work Statement (PWS) except USCG requested product/engineering changes (Section 14.5), optional service bulletins (Section 14.6.1) and exclusions

(Section 13.0). The USCG is not liable for any charges for these additives unless separately authorized in writing by the Contracting Officer. SBH hourly rates are applied to engine flight hours as defined in

Appendix A (A.2.5) of the PWS.

1.2.2 The Contractor shall maintain engine configuration control. The Contractor shall replace obsolete parts when required with no additional charge to the USCG. Performance metrics are defined in Attachment 2. The support system shall be designed to maximize engine Fully Mission Capable

(FMC) availability rate and reduce failed dispatch rate due to engine failures. The Contractor shall continually review the reliability of each component managed through this contract with the goal of increasing the Mean Time Between Failures (MTBF), availability and dispatch reliability. The

Contractor shall incorporate product improvements developed to improve system performance IAW

(IAW) Section 14.4. The Contractor shall report all performance metrics and the status of on-going continuous improvement efforts at all Program Management Reviews (PMRs) IAW Section 10.1.

1.2.3 The Contractor shall provide ready for issue (RFI) assets to various USCG sites and shall submit all data requirements as specified herein. The SBH rates are in United States dollars (USD) and are fixed rates which will be escalated on March first (1st) during the base period and all option periods (if exercised). Adjustments to the SBH rate for inflation will be made only as described in Section 12.1.

The Contractor is responsible for all shipping costs under this contract and associated task/delivery orders.

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1.2.4 The USCG anticipates issuance of task orders for the SBH effort based on an estimated total yearly engine flight hours of 106,000.

1.2.4.1 Separate no-cost task orders will be issued for tracking purposes when individual engines or modules are returned for depot repair/overhaul. These no-cost task orders are for the convenience of the

Government only and shall not impede the Contractor’s ability to perform required repairs/overhauls in any way. The Contractor shall not stop work on any repairs/overhauls covered by the SBH due to delay in receipt of a no-cost task order.

1.2.4.2 Any requested engineering changes, optional service bulletins, exclusion costs, or any service or supply in support of Arriel 2C2CG engines that requires payment will be approved by the Contracting

Officer and funded either by modification to a previous no cost task/delivery order, or by a new task/delivery order.

1.3 Contracting Officer’s Representative (COR)

The COR is responsible for the technical administration of the contract and is the technical liaison with the Contractor. The COR is not authorized to change the scope of work or specifications as stated in the contract, to make any commitments or otherwise obligate the Government or authorize any changes which affect the contract price, delivery schedule, period of performance or other terms or conditions.

1.3.1 The COR for this contract will be located onsite at the Safran Helicopter Engines facility in

Grand Prairie, Texas, unless otherwise notified in writing by the Contracting Officer.

1.3.1.1 Before removing or replacing the COR, the USCG will make every effort to notify the

Contractor in writing. The replacement of the COR will include a transition period at depot facility in

Grand Prairie, Texas. Safran Helicopter Engines will assist in training key tasks that the COR is involved in as applicable in the industrial process.

1.3.2 The Contracting Officer is the only individual who can legally commit or obligate the

Government for the expenditure of public funds. Technical administration of this contract shall not be construed to authorize revision of the terms and conditions of this contract. Any such revision shall be authorized in writing by the Contracting Officer.

1.3.3 An alternate COR may also be appointed to this contract. In the absence of the primary COR, all responsibilities and functions assigned to the COR shall be the responsibility of the alternate COR.

1.3.4 The COR and alternate COR will be appointed at time of contract award.

2.0 Applicable Documents

2.1 Industry Documents

Industry documents consist of any Original Equipment Manufacturer (OEM) Component Maintenance

Manuals and specifications for the components set forth in the schedule. At a minimum, a list of required applicable technical publications can be found in Attachment 3.

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2.2 Availability of Documents

The Contractor must have access to all applicable documents and obtain current editions of all applicable documents for the entire life of the contract. The USCG does not own nor can it provide the technical documents specified herein.

2.3 Order of Precedence

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

1. USCG specifications and procedures

2. OEM specifications and procedures

2.3.1 IAW Section 8.3, the Contractor shall notify the USCG when differences between USCG specifications and OEM specifications exist. The USCG will review the differences and either correct the issue or inform the Contractor that the differences will remain. The Contractor will not assume any responsibility for the application of USCG specifications and procedures that do not meet the OEM minimum maintenance requirement.

3.0 Depot Repair/Overhaul

3.1 Provide Depot Repair/Overhaul

The Contractor shall perform all necessary depot repairs/overhauls on whole engines and modules. All depot repairs/overhauls shall be performed at a Contractor-designated and OEM-approved depot service center facility. The Contractor shall provide all labor, parts, materials and facilities required for depot repair and maintenance of the covered equipment (as defined at A.2.1) at no additional cost to the

USCG. This includes, but is not limited to on condition maintenance repairable items and consumables.

3.1.1 The Contractor shall perform investigative engine and component testing and/or analysis as required by either party to determine engine or component condition and identify corrective repair actions if required. Equipment determined to be RFI will not be considered an exclusion and is within the scope of the contract.

3.1.2 The Contractor shall maintain an in-house test cell to perform appropriate testing of the engines

IAW the OEM specifications.

3.1.3 The USCG is not responsible for any depot repairs/overhauls. All depot repairs/overhauls performed under this contract shall comply with the specifications set forth in the OEM’s Repair and

Overhaul Manual listed in Attachment 3. The USCG will perform Level 1 and Level 2 maintenance as per the Maintenance Manual/Maintenance Procedure Cards (MPC).

3.1.4 Whole engines will be returned to the Contractor by the USCG when overhaul is required or if requested by the Contractor. The USCG will return individual modules to the Contractor’s depot facility for repair, unless it is determined by the Contractor to be more beneficial for the USCG to return the whole engine for repair. Modules will not be exchanged between engines (cannibalization). Each module will be re-installed on the engine from which it was removed.

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3.2 Receipt of Engines, Modules and Engine Components at Depot Repair Facility

3.2.1 The Contractor shall record the date the engine/module and/or engine components are received at the depot repair facility. The Contractor shall advise the USCG in writing about shipping damages, (including but not limited to missing parts and potential damage due to loose packing) within twenty-four (24) hours of Contracting Officer’s Representative (COR) arrival source inspection. Pictures depicting damage shall accompany the written notification.

3.2.2 Upon receipt of whole engines or engine modules, the Contractor shall immediately notify the

COR so a source inspection can be completed. No work shall proceed without the source inspection. If any engine or module is returned which may lead to an exclusion, the COR shall be notified prior to the item being inducted for work.

3.2.3 Engines/modules and engine components shall be inspected by the Contractor IAW the latest version of the publications listed in Attachment 3.

3.3 Repair of Faults

Components shall be repaired for at least the specific fault for which they were returned. A DD Form

1577-2, Unserviceable (Repairable) Tag-Material, or CG-1577-A (11-90), Unsatisfactory Report Tag, will be attached to each non-ready for issue (NRFI) item describing faults. The Contractor shall perform an inspection and functional tests 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. The

Contractor shall make necessary repairs and/or overhauls/modifications to unserviceable components to return them to serviceable condition. Any defective consumable material removed from a NRFI component will become the property of the Contractor, any line replaceable unit (LRU), or any serviceable piece part from a NRFI asset shall remain property of the USCG. For the purpose of minimizing repair turnaround time, the Contractor may repair any line replaceable unit (LRU) from a

NRFI asset to complete a repair, overhaul and/or modification. The Contractor may repair any removed serviceable piece part to complete a repair and/or modification only. The Contractor may request serviceable parts be used for overhaul replacements when original part is deemed unserviceable (Scrap) only if new replacement serviceable part is unavailable. Prior to installation the Contractor shall contact

COR to provide expected lead time and effect on TAT prior to installation. The Contractor shall inspect and/or test to determine the serviceability of removed repair and piece parts. After appropriate test and/or inspection, any RFI material removed from a NRFI asset may be used in the repair of other failed

USCG assets.

3.4 Field Maintenance/Repair

The USCG will provide limited labor for field Level 1 and 2 maintenance and repair at USCG Air

Stations and ALC. The scope of the maintenance provided by the USCG will be limited to the procedures listed in the Maintenance Manual/MPC(s). The Contractor’s field service personnel may provide supplementary labor at field units when the USCG’s technical ability to accomplish Field

Maintenance has been exhausted. If the USCG requests the assistance of the Technical Service

Representative (TSR), travel will be paid IAW Section 21.0. If the Contractor makes the determination to send their field service personnel, the Contractor shall be responsible for all travel costs. Engine removals prior to completion of field level troubleshooting will require joint approval between the

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Contractor and the COR, with the Contracting Officer having final determination of a removal when a joint determination cannot be made. Inspection and acceptance of field maintenance and field repair will be accomplished at the field unit by USCG personnel as outlined in the latest version of the

Maintenance Manual/MPC.

3.4.1 All repairable parts removed from engines during field maintenance or field repair actions will be returned to the Contractor at the Contractor’s expense. In the event the Contractor does not require return of any residual property, the disposition will be determined by the COR IAW Section 18.1.1.

3.5 Modification

The Contractor shall modify components as necessary as specified in the latest version of the publications listed in Attachment 3.

3.6 Acceptance Testing

Assembly and performance testing shall be performed by the Contractor IAW the latest version of the publications listed in Attachment 3.

3.7 Time Between Overhaul (TBO)

The current TBO of the engine is 3,850 hours and the Hydro-Mechanical Unit (HMU) is 3,600 hours.

No changes will be made to TBO without USCG review and approval of engineering and reliability based data IAW Section 14.4. A contract modification signed by the Contracting Officer will be completed prior to the change of any TBO.

3.8 Minimum Hours before Scheduled Removal

The Contractor shall schedule engine and component inspections as required to maintain serviceable condition IAW latest version of the publications listed in Attachment 3. Engines/modules completing scheduled inspections shall be returned to service with sufficient remaining component life to operate for no less than 650 hours (to be adjusted according to the latest cycle consumption) in order to reach the next scheduled inspection interval. Engine LRUs shall have sufficient time remaining to reach the next

LRU scheduled removal, or access time for that LRU. Engines and HMUs that are returned for repair with 650 hours or less until TBO shall be overhauled prior to returning the engine to the USCG.

3.8.1 Allowed Early Removals

USCG Units may remove engines or HMUs 100 hours prior to the current TBO listed in Section 3.7 if needed, for scheduling purposes; operational commitments; deployment, etc. This would not constitute a premature removal as described in Section 3.8.2 and no additional cost will be incurred by the USCG.

3.8.2 Premature Removals

Premature removals consist of any engine removed for overhaul with more than 100 hours before overhaul requirement IAW the Arriel 2C2CG Maintenance Manual. On a case by case basis, the USCG may remove an engine for overhaul with more than 100 hours until the TBO listed in Section 3.7. The

USCG will coordinate with the Contractor before removal; however the USCG will make the final decision on whether or not to remove the engine based on the needs of the USCG. If the USCG decides to prematurely remove an engine, that engine will be removed from the calculations of any disincentives. The USCG will utilize the following formula to determine the cost of the premature

Page 11 of 54 Attachment 2 removal and will issue a task order to the Contractor for the funding. The Contractor is responsible for notifying the COR prior to inducting an engine or HMU that arrives outside the 100 hour removal window. The Contractor will be liable for any engine or HMU inducted early without prior written permission from the COR or Contracting officer.

Engine Cost = ((X – 100) – Engine TSO or TSN when TSO is not applicable) / (X))*(Engine Overhaul

Cost including USCG discount)

HMU Cost = ((X – 100) – HMU TSO or TSN when TSO is not applicable) / (X))*(HMU Overhaul Cost including USCG Discount)

Where:

X = Component’s Current TBO

For the Base and Option Periods, the Overhaul cost for the Engine and HMU, including the USCG discount, as listed in the Schedule of Services/Supplies

The prices set forth above include adjustments for escalation for the option periods if exercised IAW

Section 12.4.

3.9 Removal for Engine Power Check (EPC) Failure

If an engine is determined to be an EPC failure, the engine may be removed prior to achieving the current TBO as listed in Section 3.7. The Contractor shall determine whether or not returning the whole engine to their facility is more beneficial than returning individual modules, unless the engine has less than 400 hours TBO. Engines with less than 400 hours TBO will be sent to the Contractor for overhaul.

EPC Failed Engines shall be defined as follows:

Any engine with less than or equal to 3,000 hours time since overhaul (TSO) that has three

(3) failing Engine Power Checks (EPC) events (torque (TQ) and/or turbine outlet temperature

(TOT)) within five (5) consecutive EPC events.

Any engine with more than 3,000 hours TSO that has two (2) failing EPC events (TQ and/or

TOT) within three (3) consecutive EPC events.

Any engine regardless of TSO that cannot produce a passing EPC after five (5) attempts, completion of troubleshooting/maintenance intervention IAW USCG MPC 76101.9 and a second series of five (5) attempts. Each series of five (5) attempts will utilize two (2) different EPC profiles (ground, in-flight dual engine, in-flight in training mode).

3.9.1 An attempt is considered to be a single effort to calculate the TOT and TQ margins either automatically through the use of the onboard vehicle engine monitoring display or manually through the use of the appropriate charts. Attempts will be conducted IAW USCG MPC 76102.0 (must be IAW

Flight Manual EPC procedure).

3.9.2 An EPC event is considered any series of not less than one (1) attempt and not more than ten

(10) attempts. After five (5) failed attempts there will be a troubleshooting/maintenance intervention

IAW USCG MPC 76101.9 (must be IAW Flight Manual / Maintenance Manual EPC troubleshooting procedures) and then up to five (5) additional attempts to acquire a passing EPC.

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3.9.3 A failed EPC event is considered to be any time that five (5) attempts using two (2) different profiles (ground, in-flight dual engine, in-flight in training mode) do not produce passing TOT and TQ margins and troubleshooting/maintenance intervention is required. Even if a passing EPC is obtained during the second five (5) attempts the event is considered as one (1) failed EPC event.

3.9.4 A passing EPC event is considered to be any time that passing TOT and TQ margins are obtained within the first five (5) attempts. Successfully obtaining passing TOT and TQ margins during an EPC event do not necessarily mean that the EPC event was a passing event. In the case where the first five (5) attempts failed and troubleshooting/maintenance intervention was performed any subsequent passing attempt during that EPC event will still result in a failed EPC event. Attachment 4 provides a visual depiction of two (2) potential scenarios leading to the classification as a Low

Performing Engine and subsequent early removal from the aircraft.

3.9.5 EPC failure engines may be removed from service at the discretion of the USCG and repaired/overhauled within the TSO/required remaining hour parameters set forth in Section 3.8. EPC failure engines with less than 650 hours TBO will be returned to the Contractor for overhaul. For EPC failed engines with more than 650 hours TBO, the COR and the Contractor will make a joint determination as to whether repairing modules or overhauling the engine will be more advantageous to the USCG and the Contractor. The repair and/or overhaul of all engines that are considered to be EPC failures will not be considered exclusions and will be repaired/overhauled as part of the SBH rate.

3.9.6 The Contractor may perform a pre-induction test cell run upon receipt to confirm engine performance. Engines that are returned for EPC failure, but pass performance in the pre-induction test cell run shall be designated RFI and returned to USCG without any intervention. Should the USCG request Contractor intervention on a RFI engine, the Contractor shall provide a Technical

Report/Evaluation along with a proposal outlining the costs necessary to enhance engine performance.

The USCG requested intervention shall be performed outside of the SBH hourly rate. The rate set forth in CLIN 0005 of the schedule and all subsequent option period CLINs shall be used to determine the labor cost.

3.10 Test and Evaluation/No Fault Found

If after visual and functional inspections, an item is found to meet manufacturer’s minimum performance specification as designated by Safran Helicopter Engines’ maintenance manual and requires no parts or labor, the Contractor shall be allowed a firm-fixed price Test and Evaluation fee.

The Test and Evaluation Inspection Fee listed below include adjustments for escalation for the option periods if exercised IAW Section 12.3. The Contractor shall notify the COR to confirm acceptance of no fault found.

For the Base and Option Periods, the fixed price Test and Evaluation Inspection Fee/No Fault Found is listed in the Schedule of Services/Supplies

3.10.1 The Contractor shall notify the Contracting Officer in writing of the applicable material condition.

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4.0 Asset Management

4.1 Maintain Field Inventory

The Contractor shall maintain an inventory of maintenance consumables and LRUs at each location specified in Attachment 9. The Contractor shall determine the inventory levels necessary to provide the most effective and efficient support including maximum engine availability to the USCG. The inventory allowances shall be based on the USCG provided annual allowance review recommendations.

The Contractor shall maintain a First Time Fill Rate of 90% or greater. This value will be calculated on the total parts available at all sites. The Contractor shall maintain field inventory in RFI condition. The

USCG may use the field inventory without prior notification to the Contractor. It is the Contractor’s responsibility to ensure maintenance consumables and LRUs are readily available for use at each location and be able to supply the item within the time frames specified in Section 6.3.

4.1.1 The COR will notify the Contractor if the USCG has developed a need to manage the utilization of any particular part or parts listed in Attachment 5. When this occurs, the Contractor shall not ship or install any USCG managed parts without approval from the COR. The Contractor shall be responsible for shipping items within the time frames specified in Section 6.3, however the time will not start until the COR notifies the Contractor as to where the item should be shipped.

4.2 USCG Inventory System

The Contractor is responsible for managing the field inventory in the USCG Aviation Maintenance

Management Information System (AMMIS) (or similar system). This includes, but is not limited to, receipting for, updating material status, issuing components, and maintaining air station inventory allowances. The Contractor shall copy the designated SRR Item Manager on all correspondence with

Air Stations and notify the designated SRR Item Manager when changes to the allowance list occur.

4.3 Changes to Field Inventory

The Contractor shall ensure that the Field Inventory list in Attachment 5 is current at all times by notifying the Contracting Officer when items are added or deleted. All changes to the field inventory list, will be accomplished by modification to Attachment 5 and may include a request for compensation in line with the current catalog pricing less discount, excluding parts required by mandatory service bulletins. The Contractor shall obtain written approval from the Contracting Officer before approving allowance changes where compensation will be requested.

4.3.1 The USCG will advise the Contractor within fifteen (15) business days when there is a change in the mission status or operational sites being supported. The Contractor should use this information to make changes to the inventory locations and/or inventory levels that will improve the effectiveness and efficiency of support provided to the USCG. The recommended changes are dependent upon the continuing operational requirements for the services provided herein. The Contractor is responsible for all shipping costs to move parts from one location to another, excluding air station relocation, to meet their recommended inventory locations/levels. The balance of assets not required at USCG sites shall be maintained at the USCG’s location of choice including Air Stations or the Aviation Logistic Center

(ALC).

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4.3.2 It is possible that the Arriel 2C2CG engines and LRUs will undergo configuration changes during the life of this contract due to obsolescence and/or other changes. If this occurs, the Contractor shall notify the Contracting Officer in writing, requesting the disposition of any obsolete material within thirty (30) calendar days of the completion of each modification. Disposition instructions for the material will be provided via a modification.

4.4 Spare Engine Inventory

The USCG requires eighteen (18) spare engines at all times. Total spare inventory does not include engines at ALC (up to sixteen (16)) positioned for Programmed Depot Maintenance (PDM) support or engines that have had parts cannibalized IAW Section 4.5. The USCG will determine where spare engines are positioned and how they will be utilized.

4.5 Field Inventory Redistribution (Parts Pooling)

As a contingency, when no RFI engine, module, LRU or maintenance consumable is available, the

USCG may support a part need by redistributing the field inventory from another USCG operating facility (when available) or by cannibalizing parts from available spares. This redistribution/cannibalization may occur without prior notification or approval from the Contractor.

When parts are cannibalized from engines, the engine will change from RFI conditions to NRFI and will no longer be considered an available spare engine until part is available at site where cannibalized engine is located. The USCG will notify the Contractor of all cannibalizations of parts from available spare engines. The USCG will also notify the Contractor of all redistribution of parts from one location to another. The Contractor shall be responsible for the shipment of any items that are redistributed due to a part shortage. If the USCG directs redistribution for their convenience, not due to a parts shortage, the USCG will be responsible for the shipping cost incurred.

4.6 Parts Catalog

The Contractor shall publish a commercial catalog of parts and repairs available to the USCG. These include, but are not limited to, the applicable spare parts and tooling price catalog, and standard repair and exchange program pricing. The Contractor shall provide an electronic copy of all commercial price catalogs and revisions applicable to the Arriel 2C2CG engine used on the USCG fleet no later than fourteen (14) calendar days after date of contract award and no later than fourteen (14) calendar days after publication of updates. The catalog shall be provided to the Contracting Officer.

4.7 Special Tools

The Contractor shall loan, on a case-by-case basis, all special tools not available at a field unit for accomplishment of field maintenance and field repair of the Arriel 2C2GG engines at no additional cost to the USCG. This includes the module containers. Special tools loaned to the USCG must be returned within ten (10) calendar days after receipt of the tooling, excluding the ALC engine shop, which shall notify the Contractor of the planned date of return. Special tools may be transferred from one field unit to another field unit only after the prior action has been closed, another action opened, and approved by

Safran Helicopter Engines. For the avoidance of doubt, there shall be no transfer of title at any time of these special tools between the Contractor and USCG.

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4.7.1 Safran Helicopter Engines shall replace, exchange, or modify any tool identified in Arriel

2C2CG Maintenance Tool Catalog that is updated, modified, deemed obsolete, replaced, or identified as non-conforming at no additional cost to the USCG.

4.7.2 If Safran Helicopter Engines is identified as the sole source calibration vendor for any tool identified in Arriel 2C2CG Maintenance Tool Catalog the specified tools shall be properly calibrated at no additional cost to the USCG.

4.7.3 The Contractor shall be obligated to repair or replace any tool identified in Arriel 2C2CG

Maintenance Tool Catalog when failure was not attributed to USCG negligence. USCG will exhaust current stock prior to requesting repair or replacement.

4.8 Storage of Inventory

The USCG will provide storage (in an environment no less safe than the USCG would have for its own inventory) and storekeeping services for Contractor-owned inventory located at field unit(s). The USCG will maintain and provide parts usage information quarterly to the Contractor via access to AMMIS reporting (or similar system) and annual Business Operations Division (BOD) reporting in June.

5.0 USCG Shipment of Units

5.1 Shipping Repairable Units

The USCG will test and ship repairable assets from USCG air station sites as specified in Section 3.1.4.

All engines will be shipped from USCG Air Stations within fifteen (15) business days from the date of removal from the aircraft to either the Contractor’s facility or to the ALC. Modules will be shipped to the Contractor’s facility within fifteen (15) business days from removal from the engine by the ALC

Engine Shop.

5.1.1 For aircraft that are deployed or away from home station, the NRFI component will be returned as expeditiously as possible to the home unit. The home unit will complete any required testing and ship to either the ALC or the Contractor as specified in Section 3.1.4. These components shall be shipped within fifteen (15) business days of receipt at home unit.

5.2 USCG-Directed Shipments

The USCG will provide a shipping notice advising of USCG-directed shipments between Air Stations

(IAW Section 4.5). As part of its management responsibility, the Contractor shall update inventory records based on the information provided.

5.2.1 The USCG will make every attempt to provide a carrier tracking number on all Engines and

Modules returning to Depot, Grand Prairie, TX. Tracking information will be communicated electronically via email or thru COR.

Page 16 of 54 Attachment 2

6.0 Contractor Shipment of Assets

6.1 Shipping RFI Assets from Repair Facilities

The Contractor shall ship assets as necessary to maintain the minimum field inventory level specified in Attachment 5. Documentation requirements are listed in Section 15.1.

6.2 Aircraft on Ground (AOG)

The USCG's highest priority is an AOG situation. The USCG's need for a RFI asset in an AOG situation shall become the Contractor's highest possible priority. Upon verification from the

COR that an AOG situation exists, the Contractor shall expedite shipment per Section 6.3.1.

Material shall be shipped by the fastest traceable means, i.e., air freight next day delivery.

6.2.1 The shipping container shall be marked with AOG on the outside in highly visible lettering. Additional effort and cost incurred by the Contractor shall not be charged to the

USCG. The required component shall be provided as soon as possible including expedited shipment. Additionally, for any AOG situation created by lack of a part/module, the Contractor and the USCG will investigate the cause of the AOG incident and take action to help avoid future AOGs attributable to the same cause.

6.3 Contractor Shipment Timeframes

The Contractor shall ship RFI assets within the timeframes listed in Section 6.3.1 through 6.3.3. In the event the Contractor is unable to meet the required delivery schedule, the Contractor shall immediately notify the COR. The Contractor shall provide reasons for the delay, positive actions for overcoming the situation, and a firm date when the USCG RFI asset will be shipped.

6.3.1 Priority 2 and 3

RFI assets shall be shipped, using the fastest means possible, no later than twenty-four (24) hours after notification of the requirement via AMMIS (or similar system) or the COR, if notification is received by 4:00 pm Eastern Standard Time (EST), Monday through Friday. If notification is received after 4:00 pm EST on a Friday, the Contractor shall make every effort to ship the item within twenty-four (24) hours but shall ship the item no later than 12:00 pm EST on the next business day.

6.3.2 Priority 5 and 6

Assets shall be delivered no later than five (5) calendar days after notification of the requirement via AMMIS (or similar system) or the COR.

6.3.3 Priority 12 and 13

Assets shall be delivered no later than fifteen (15) calendar days after notification of the requirement via AMMIS (or similar system) or the COR.

Page 17 of 54 Attachment 2

7.0 Delivery Requirements

7.1 Government Required Delivery for Priced CLINs

The following table shows the required delivery for each priced CLIN listed in the schedule. Early deliveries, when appropriate, are desired and acceptable. The required delivery dates remain the same for all respective option period CLINs.

CLIN Item Description

IAW PWS

Section

Due No Later Than (NLT):

0001 H65 SBH

September 01 – February 28

(February 29 Opt. Period One)

Multiple

Continuously throughout the contract.

0002 H65 SBH

March 01 – August 31 Multiple

Continuously throughout the contract.

Technical and Maintenance

Support

8.0 Continuously throughout the contract.

0004 Optional Training 9.3 As Required.

0005 Exclusion Proposal Labor Rate 13.4

Notify USCG immediately upon finding possible exclusion.

Proposal due within twenty (20) calendar days after notification.

Product /Engineering Change

Proposal 14.5

Proposal due within thirty (30) business days after notification that there is a need for a

Product/Engineering Change Proposal.

0007 Optional Service Bulletins 14.6.1

Proposal due within thirty (30) calendar days after notification that USCG requires incorporation of an optional service bulletin.

0008 Travel 21.0 As Required.

Other services/supplies required in support of Arriel 2C2CG engines

1.2.4.2 As negotiated on individual task/delivery orders.

Test & Evaluation Inspection

Fee/No Fault Found 3.10

Notify USCG to confirm acceptance of no fault found.

**Remainder of this page left intentionally blank**

Page 18 of 54 Attachment 2

7.2 Government Required Delivery for Not Separately Priced (NSP) CLINs

NSP CLINs represent items that are provided by the Contractor to the USCG at no additional cost. The following table shows the required delivery for each NSP CLIN listed in the schedule. Early deliveries, when appropriate, are desired and acceptable. The required delivery dates and CLIN numbers remain the same throughout the contract period of performance.

CLIN Item Description

IAW

PWS

Section

Due NLT

NSP01 Parts Catalog 4.6

NLT fourteen (14) calendar days after award and/or NLT fourteen (14) calendar days after publication of updates.

NSP02

Contractor Shipment of

Assets 6.0

Shipped NLT twenty-four (24) hours for

Priority 2 and 3.

Delivered NLT five (5) calendar days for

Priority 5 and 6.

Delivered NLT fifteen (15) calendar days for Priority 12 and 13.

NSP03 Monthly Activity Report 8.5.1 NLT the 5th of each month.

NSP04 Trip Reports 8.5.2 NLT ten (10) calendar days following trip completion.

NSP05

Engineering

Liaison/Technical Support

8.5 As Required.

NSP06 Regional Training Sessions 9.2 Four (4) Sessions per period of performance.

NSP07

PMR Meeting and Agenda

Minutes 10.1

Agenda – Seven (7) business days prior to scheduled meeting.

Meeting Minutes – Fifteen (15) business days after meeting.

NSP08

Teardown/Evaluation

Report 13.3

Shall be submitted with Exclusion

Proposal (CLIN 0005).

NSP09

Configuration Management

Report 14.3

As Required.

NSP10 Service Bulletins 14.6 NLT ten (10) calendar days after receipt.

NSP11

Component Repair Record

(CRR)

15.5

NLT five (5) business days following completion of the repair/overhaul/ modification effort.

NSP12

Government Property

Reports

15.7 No later than the 15th of each month.

NSP13 Subcontracting Plan 15.9 Due one (1) month after receipt of intent to exercise an Option Period.

NSP14 Technical Publications 16.4 NLT ten (10) calendar days after date of publication of updates.

Page 19 of 54 Attachment 2

NSP15

Financial and Criminal

Background Checks

17.4 As Required.

NSP16

Report of Lost or Damaged

Property 18.4

NLT ten (10) calendar days after the event.

NSP17 Insurance Certification 20.1 Within ten (10) days of contract award.

8.0 Technical Support Representative

8.1 Technical Support Representative

The Contractor shall provide technical support to the USCG in order to maintain the operational readiness of the USCG SRR aircraft utilizing the Arriel 2C2CG engines at the price specified in CLIN

0003 and all subsequent option period CLINs. The technical support functions will be provided at both the Safran Helicopter Engines USA facility in Grand Prairie, Texas and at ALC in Elizabeth City, North

Carolina. Representatives providing support will act in an advisory capacity only and are not authorized to deviate from or modify published maintenance procedures. Recommendations for changes to established USCG procedures are encouraged and will be made through the COR or the alternate COR.

Both the representative providing technical support and the representative providing maintenance support has the authority to recommend whole engines are returned to the Contractor for analysis and/or repair.

8.1.1 When talking directly with a field unit, any Contractor personnel shall be limited to providing technical information, maintenance and troubleshooting assistance only and shall not make airworthiness determinations, recommendations for operational capability or suitability for further flight.

8.2 Technical Support Representative (TSR) Responsibilities

A dedicated Safran Helicopter Engines Level Three qualified TSR for the USCG will be stationed on site at ALC in Elizabeth City, NC to assist with PDM support. This position will work within the SRR

Product Line Engineering Cell and shall work a minimum of eight (8) hours per day, Monday through

Friday and adhere to the ALC core Business hours while residing in the SRR office space. The use of any planned personal leave for any reason shall require a two (2) week notification to the COR. When the Contractor’s TSR takes leave or is on sick leave, an alternate point of contact shall be provided to coordinate the services provided to the USCG. The USCG requires that this position be vacant for no more than thirty (30) calendar days per year due to the personal leave or sick leave. The USCG reserves the right to have the Contractor provide a temporary replacement, on site at ALC, for any and all days over the thirty (30) calendar days that the position is vacant, at no additional cost to the USCG. The

Contractor’s annual training required to maintain certifications for this position (i.e., Level III training), up to ten (10) business days per year, will not count against the thirty (30) day requirement.

8.2.1 Technical Support

The TSR will assist the USCG COR to provide technical support to the ALC and field units in resolving technical, maintenance, product reliability and logistical support problems relating to the Arriel 2C2CG engines. Assistance shall be available to respond and provide responses to requests from USCG field personnel twenty-four (24) hours per day, seven (7) days per week. In the event that the TSR will be unavailable due to vacation, sick leave, personal leave, training, etc., the Contractor shall notify the

Page 20 of 54 Attachment 2

USCG immediately and provide the name of an alternate contact for technical questions during the representative’s absence.

8.2.2 Coordinate Troubleshooting Services

The TSR will assist in the troubleshooting of technical problems relating to the operation of the Arriel engines and components. This will require detailed technical communications directly with USCG engineering, the COR, and technical and maintenance personnel at all levels. It also requires direct communications with Arriel support groups and all necessary parts of the Safran Helicopter Engines organization.

8.2.2.1 When talking directly with a field unit, any Contractor personnel shall be limited to providing technical information, maintenance and troubleshooting assistance only and shall not make airworthiness determinations, recommendations for operational capability or suitability for further flight.

8.2.2.2 If assistance cannot be provided during the initial contact (typically via telephone) or within one

(1) hour from receiving the contact, the Contractor shall notify the COR and provide an estimate for how long it will take to conduct the necessary research to determine the answer. The Contractor shall notify the COR (via phone and/or e-mail) of all calls for technical assistance and provide input as to reason for the call and recommended course of action.

8.2.2.3 When required, coordinate travel of Safran Helicopter Engines personnel to various USCG operating units within the United States (U.S.), its possessions and other locations to assist with troubleshooting, damage evaluation, salvage operations, engineering support, logistical support, training or other assistance. The USCG will make available temporary office space and telephone service for

Contractor personnel at applicable field units that are USCG owned and/or operated sites as necessary and at no charge to the Contractor.

8.2.2.4 When needed at an alternate field unit, the Contractor’s representative shall arrive at the field unit within forty-eight (48) hours at the Contractor’s discretion or, if requested by the COR, when the field unit’s technical ability to accomplish field maintenance has been exhausted.

8.2.3 Evaluate Component Damage and Failures

Using OEM data, determine component rejection criteria for service related damage and for repair/modification of equipment and components.

8.3 Review USCG Technical Information

Assist with updating and revision of USCG directives, publications, and policies pertaining to the maintenance and support of the Arriel engines. The TSR shall be familiar with USCG directives, publications and policies pertaining to the maintenance and support of the Arriel engines. The TSR shall review all USCG field level engine MPCs and depot level engine MPCs to ensure compliance with

Safran Helicopter Engines manuals and procedures. The TSR will review USCG MPC involving engines at least once annually. The TSR should develop a schedule for review and provide notice to the

COR in the monthly report of which MPCs were reviewed.

Page 21 of 54 Attachment 2

8.4 Interface With and Assist the ALC Engine Shop

The TSR shall visit the ALC Engine shop at least once a day and as needed after that to answer maintenance questions, provide guidance for maintenance procedures and serve as a conduit for technical information from Safran Helicopter Engines USA.

8.4.1 Perform Engine Repairs

When mutually agreed by the COR and the Contractor to be more advantageous than shipping the engine back to Safran Helicopter Engines USA, the TSR shall perform engine repairs which are currently outside the capability or responsibility of the USCG mechanics (i.e., Level III repairs) at ALC.

These repairs will not interfere with product line requirements. The TSR shall perform other maintenance procedures and/or troubleshooting on the engines at the request of the COR.

8.4.1.1 Either the USCG or the Contractor can request the TSR travel to field units to assist with troubleshooting efforts. The USCG will only request the support when funds are available to reimburse the cost of travel. The USCG will provide the travel funding on a task order. No travel shall occur prior to receipt of a funded task order. All travel will be reimbursed IAW Section 21.0. If the Contractor determines it is in their best interest to have the TSR travel to a field unit to support troubleshooting efforts, the Contractor may request the support in writing to the Contracting Officer and state that the travel will be at no cost to the USCG.

8.4.2 Support SRR PDM Line

The TSR shall assist the ALC SRR technical services with troubleshooting and maintaining engines on aircraft in the PDM process, during the test flight phase or while being prepared for delivery to operational units. Note: Safran Helicopter Engines employees shall not perform maintenance functions that are not listed within Safran Helicopter Engines documents.

8.4.3 Perform Assurance Checks

The TSR shall assist the ALC SRR production by providing assurance checks for engines installed during the PDM process to include but not be limited to wire harness routing,…