PWS.pdf

DRAFT

PERFORMANCE WORK STATEMEMT (PWS)

AIR FORCE

INDUSTRIAL PRODUCT-SUPPORT VENDOR PROGRAM

Draft PWS

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Contents

1 OVERVIEW

1.1 Definitions

1.2 Background

1.3 Scope of Work

1.4 Expected Outcomes

2 GENERAL INFORMATION

2.1 Safety, Security, Environmental

2.2 Communication

2.3 Meetings

Program Management Reviews ............................................................................................................... 12 2.3.1 Production Planning ................................................................................................................................. 12 2.3.2 Other Meetings as Needed/Required ...................................................................................................... 13 2.3.3

2.4 IPV Transition

2.5 Material Procured During Life of Contract

2.6 Disposal of Non Material Related Items

2.7 Task Order Labor

2.8 Items of Supply

2.9 Schedule of Items (SOI)

2.10 Deliver Material On-Site to the ALCs

2.11 Deliver Material to DLA (Worldwide Demand Orders)

2.12 Receipt and Receiving Responsibilities

2.13 Office and Storage Space

3 MATERIAL SOURCING

3.1 Covered Items of Supply

3.2 Item Additions/Deletions

Addition of Items ...................................................................................................................................... 18 3.2.1 Deletion of Items ...................................................................................................................................... 19 3.2.2

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3.3 Sourcing of Covered Items of Supply

Sourcing Order of Priority ......................................................................................................................... 19 3.3.1 DLA Backup Material ................................................................................................................................ 20 3.3.2 Contractor Generated Backup (For items designated as Government sourced) ..................................... 20 3.3.3

3.4 Technical Specifications and Quality Control Requirements DLA Mandatory-Sourced Items ................................................................................................................ 21 3.4.1 Shelf-Life Management ............................................................................................................................ 22 3.4.2 Procedures the Contractor shall follow for Source Inspection ................................................................. 22 3.4.3

3.5 Nonconforming Items and Returns

DLA-Sourced Nonconforming Items ......................................................................................................... 22 3.5.1 Contractor Sourced Nonconforming Items .............................................................................................. 23 3.5.2 Tracking/Reporting of Nonconforming Items ........................................................................................... 23 3.5.3 Returns ..................................................................................................................................................... 23 3.5.4

3.6 Management of Overflow Material

3.7 Bin-to-Bin Transfers

3.8 Bin Minimum and Maximum Levels

3.9 Demand Analysis and Planning Requirements

3.10 Audit Rights

4 INVENTORY MANAGEMENT

4.1 Point-of-Sale (POS)

Bench Stock Location at Contract Start-Up .............................................................................................. 25 4.1.1 Bench stock Location In Option Periods ................................................................................................... 25 4.1.2

4.2 Kitting

Task Specific Kitting .................................................................................................................................. 26 4.2.1 Kitting Function ........................................................................................................................................ 26 4.2.2

4.3 Bins/Bench Stock Storage Units

Contract Start-Up ..................................................................................................................................... 27 4.3.1

4.4 Packaging for Deliveries to ALC Sites

5 PERFORMANCE METRICS

5.1 Primary Metric: First Pass Acceptance

Measurement ........................................................................................................................................... 28 5.1.1 Exceptions................................................................................................................................................. 28 5.1.2

5.2 Secondary Metric: Mechanic Wait Time (MWT)

Exceptions................................................................................................................................................. 29 5.2.1

6 MANAGEMENT INFORMATION SYSTEM (MIS)

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6.1 Demand Data Exchange (DDE) and Web Based Customer Collaboration (CC)

6.2 Supportability Analysis

Objectives ................................................................................................................................................. 31 6.2.1 Scope ........................................................................................................................................................ 32 6.2.2

6.3 Live Test Demonstration

6.4 Data

Government Provided Information and Data ........................................................................................... 33 6.4.1 Rights in Software ..................................................................................................................................... 33 6.4.2 Limited Rights Technical Data................................................................................................................... 34 6.4.3

7 CONTRACTOR REQUIREMENTS

7.1 Personnel Administration

7.2 Quality Assurance

7.3 Contractor Response Time

7.4 Program Management

Key Personnel Requirements ................................................................................................................... 35 7.4.1 Listing of Contractor Employees ............................................................................................................... 36 7.4.2 Hire Personnel and Form Material Management Structure for Logistics Support ................................... 36 7.4.3 Driving Personally Owned Vehicles (POV) ................................................................................................ 36 7.4.4 Emergency Procedures ............................................................................................................................. 36 7.4.5 Location and Hours of Work ..................................................................................................................... 36 7.4.6 Recognized Federal Holidays .................................................................................................................... 36 7.4.7

7.5 Training

Flight Line Training ................................................................................................................................... 36 7.5.1

7.6 Housekeeping/FOD

Certificate for Foreign Object Damage (FOD) and Dropped Object Prevention (DOP) Certificate........... 37 7.6.1

7.7 DLA Common Access Card (CAC) Holders

Contractor Badge ...................................................................................................................................... 37 7.7.1 Secured Area Badge .................................................................................................................................. 38 7.7.2 Ramp Badge/Flight Line License ............................................................................................................... 38 7.7.3 CAC/Badge Return .................................................................................................................................... 38 7.7.4

8 READINESS

8.1 Surge Pricing

9 DELIVERABLES (REPORTS AND DATA RECEIVED VIA ELECTRONIC

MEANS)

9.1 Monthly Reports

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9.2 Quarterly Reports

9.3 Semi-Annual

9.4 Miscellaneous Reports

10 IPV TRANSITION

10.1 Phase-In Requirements

Data to be provided to Gen III awardee .............................................................................................. 40 10.1.1 Data to be provided by the Gen III awardee to DLA and the AF .......................................................... 40 10.1.2

10.2 Preparation and Staging

10.3 Scheduled Meetings

10.4 Site(s) Activation

10.5 Transition to Automated Bin

10.6 Contract Closeout and Transition to Gen IV

11 COMMUNICATION

12 ON-SITE SECURITY

13 APPENDICES

13.1 Attachment A - SOI

13.2 Attachment B

13.3 Attachment C – Estimated Kitting Threshold & Kit Returns Threshold

13.4 Attachment D

13.5 Attachment E

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1 Overview

1.1 Definitions

1. ALC (Air Logistic Complex) - Located at Tinker AFB, Hill AFB, and Robins AFB;

provides worldwide logistics support for a variety of weapon systems.

2. CAR (Corrective Action Report) - The procedure used in response to a defect.

3. Consumable Part – Parts that are consumed during the maintenance process and become part of the item undergoing repair.

4. COR (Contracting officer Representative) - The individual authorized to represent the

Contracting officer, but does not have authority to commit Government to funds or change the contract. COR is the primary POC for the Contractor and Government. Under no circumstance can the COR add, delete, change, or modify the contract. The COR does not hold a warrant and cannot commit to contract changes.

5. CPARS (Contractor Performance Assessment Reporting System) - Ensures that accurate data on Contractor performance is current and available for use in source selections.

6. CSI (Critical Safety Items) - A part, assembly, or support equipment whose failure could cause loss of life, permanent disability or major injury, loss of a system, or significant equipment damage

7. CTDF (Contract Technical Data File) - The information located in Field “C”, (Technical Guidance Information), Field “D”, (Technical History/Weapons Systems Data), Filed “M”, (Contracting Guidelines), and Field “N”, (Quality Guidance Data), of the CTDF are business sensitive, and will not be disseminated to any person, firm, or entity outside the Contractor’s own entity.

8. DDE (Demand Data Exchange) - Forecast/collaboration data for future requirements

9. Demand - any active (non-cancelled) Sales Order or DHA to include CLSSA FMS but not non-CLSSA.

10. DLA (Defense Logistics Agency) - Provides supplies to the military services and supports their acquisition of weapons, repair parts, and other material.

11. Eaches - Items as counted individually, does not necessarily equate to the unit of issue.

12. FPA (First Pass Acceptance) - Percentage of serviceable condition items (right part, right quantity) available at the time of demand from the mechanic. The primary metric for this contractual effort.

13. GFE (Government Furnished Equipment) - It is equipment that is owned by the government and delivered to, or made available to a Contractor.

14. GFM (Government Furnished Material) – Government material that may be consumed or expended during the performance of a contract, component parts of a higher assembly, or items that lose their individual identity through incorporation into an end-item. Material does not include equipment, special tooling and special test equipment.

15. IPExSP (Integrated Planning Execution Sustainment Process) - Collaborative planning and execution process that will be used at maintenance sites at Hill Air Force Base, Utah, as well as at Robins AFB, Ga. and Tinker AFB, Okla.

16. Kitting - Package or make available a set of materials or parts from which something can be assembled

17. Lead time - Time it takes to procure an item from a supplier

18. LOM (List of Materials) - Specific list of items and associated quantities contained in a kit.

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19. MWT (Mechanic Wait Time) - Measured as the number of hours it takes the Contractor to remedy a FPA failure.

20. Min/Max Levels - The range of stock, identified by ‘eaches’ that shall be retained within identified bin locations.

21. MIS (Management Information System) - Hardware and software systems within an enterprise that provide the information that management needs to run an enterprise.

22. Overhaul - The complete disassembly, cleaning, inspection, repair or replacement of component parts as required, reassembly, and testing of an end item and acceptance test procedures, or other procedures as agreed to by Vendor and the government. All software (i.e. seals, packing, etc.) and certain hardware (bearings, face seals, etc.) are replaced. Excessively worn components are replaced.

23. PAR (Performance Action Report) - It describes new initiatives that improve the quality of their services and highlights metrics that meaningfully gauge their progress against goals.

24. PMR (Program Management Reviews) - A structured program review that is conducted by the Program Manager (PM) with all key Stakeholders.

25. Point of Sale (POS) - The point at which the Government makes a payment to the Contractor in exchange for goods or after provision of a service.

26. POP (Period of Performance) - Deliverables and timeline a vendor must execute in performance of specified work for a client.

27. POT (Purchase Order Text) - A text describing the material in more detail

28. PQDR (Product Quality Deficiency Report) - The SF 368 form or format used to record and transmit product quality deficiency data.

29. QASP (Quality Assurance Surveillance Plan) - Government developed and applied document used to make sure the systematic quality assurance methods are used in the administration of the Performance Based Service Contract (PBSC) standards included in this contract and in subsequent task orders.

30. QML (Qualified Manufacturers List) - A list of manufacturers whose production lines have been certified and qualified by the Defense Logistics Agency for the production of devices used in military or space applications.

31. QPL (Qualified Products List) - contains qualification information regarding products and manufacturers as compiled and maintained by the individual Qualifying Activities

(QA)

32. QSL (Qualified Suppliers List) – A list of pre-qualified sources for certain electronic components that are purchased and managed by the Defense Logistics Agency.

33. Repair - Testing and inspections of the End Item to determine overall condition, disassembly of the End Item to the extent necessary to correct deficiencies, and final testing of the End Item. In accordance with acceptance test procedures, or other procedures as agreed to by Vendor and the government. All disturbed software (i.e.

seals, packing, etc.) will be replaced. Replaced component parts will be new, meet new part tolerances and limits.

34. SOI (Schedule of Items) - The specific set of items supported by the IPV program at any given time.

35. SL (Shelf-life) - The total period of time beginning with the date of manufacture, date of cure (for elastomeric and rubber products only), date of assembly, or date of pack (subsistence only), and terminated by the date by which an item must be used (expiration

8 | P a g e date) or subjected to inspection, test, restoration, or disposal action; or after inspection/laboratory test/restorative action that an item may remain in the combined wholesale (including manufacture's) and retail storage systems and still be suitable for issue or use by the end user. Shelf-life is not to be confused with service-life

36. SLC (Shelf-Life Code) - A one-position code assigned to identify the period of time beginning with the date of manufacture, cure, assembly, or pack and terminated by the date by which an item must be used (expiration date) or subjected to inspection, test, restoration, or disposal action. (DoD 4140.1-R). Attachment F provides a complete listing of shelf-life codes cross-referencing to the period of allowed storage time expressed in months/quarters and years

37. SOS (Source of Supply) - Any Federal Government organization (DoD or non-DoD) exercising control of materiel and to which requisitions are directed

38. U/I (Unit of Issue) - Denotes the means by which DoD buys and issues materiel to end-users and/or customers

39. Work station - the specific location where a mechanic task is being performed.

1.2 Background

The Industrial Product - Support Vendor (IPV) Contractor shall manage a comprehensive program for support of consumable spare parts (bench stock) required for programmed depot maintenance at the three Air Logistics Complexes (ALCs) located at Hill AFB, Ogden, UT;

Tinker AFB, Oklahoma City, OK; and Robins AFB, Warner Robins GA. Additionally, this acquisition provides for support of DLA worldwide demand requirements for items designated as commercially sourced.

The consumable spare parts are generally Class IX repair parts and are required for maintenance of military weapons systems and equipment at the designated ALC sites. The Contractor shall be responsible for obtaining material from individual vendors or the Government to provide all the materials identified in the Schedule of Items (SOI).

The Generation III Air Force IPV contract will encompass approximately 36,000 hardware National Stock Numbers (NSNs). There are approximately 860 bench stock locations (BSLs) in approximately 121 buildings, with approximately 211,000 bins across all three ALCs.

Attachment A provides a listing of the SOI that requires support at the onset of this contract.

Additions and deletions may be made to the SOI, month-to-month, after award based on changes in workload at each ALC.

1.3 Scope of Work

Under this PWS, the Contractor will be responsible for cradle to grave bench stock support solutions, must plan for sufficient inventory to support demand, and provide uninterrupted support. The IPV Contractor will be required to use best commercial business practices, coupled with sourcing of supplies from designated vendor or Government sourcing channels to furnish cost efficient, integrated supply chain management of consumable spare parts required by the Air Force for maintenance, overhaul and repair of various weapons systems and other military equipment. The broad range of supply chain management and integration tasks for consumable spare parts required by this contract includes:

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• Material Sourcing – Section 3 o Acquisition, receiving, inventory control, and delivery of items to the end user including QSL/QML material (designated items) o Supporting DLA stock buys as needed o Capturing and loading Demand History Adjustments (DHA) into the DLA system so that DLA may record the DLA Backup activity

• Inventory Management – Section 4 o Supply chain and material management including bench stock location management and material shelf life management o Kitting o Supporting AF right-sizing efforts and elimination of bins as necessary

• Performance Metrics and Reporting – Section 5 o Planning and supportability analysis; providing supportability information and all reporting functions and monthly reports as specified in Section 9

• Management Information Systems – Section 6 o Implementing a management information system to support all transactions and provide management data reports, contract data, and invoice/billing requirements to DLA and the AF as specified o Systems and process integration with the AF automated vending solution along with adapting bin filling practices to fit the automated vending solution as the AF will transition from Vidmar type open bins to automated bins through the life of the contract.

• Specific Contractor Requirements – Section 7 o Dedicated customer service o Implement a Quality Control Plan addressing ramp up time and normal performance time that ensures parts meet specifications o Submitting contract closeout specific reports at end of contract to make sure key areas are maintained, including, but not limited to: personnel, order placement & receipt from DLA & Suppliers, distribution assessment / warehouse organization, etc.

The scope of this effort requires the Contractor to provide uninterrupted support despite changes in the Air Force’s requirements for consumable spare parts, production line configurations, or bench stock locations change.

1.4 Expected Outcomes

This PWS and contract are designed to support the key objectives of the IPV Program, which include the following:

• The Contractor will provide supply support to Air Force industrial operations through a Contractor-owned and managed inventory, up to placement in the bin.

• The Contractor will be responsible for cradle to grave bench stock support solutions, must plan for sufficient inventory to support demand, and provide uninterrupted support.

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- The Contractor is responsible for maintaining appropriate bench stock inventories.

- The Contractor will be responsible for acknowledging production requirements and making adjustments to support these plans and adjust to real-time situational changes to meet variable demand. Material may be added to and removed from the SOI on a monthly basis based on established criteria, Air Force requirements, and Contracting Officer authorization.

- It will be the Contractor’s responsibility to obtain from the Air Force the production and supply planning factors and maintain the proper bench stock levels to support the First Pass Acceptance (FPA) objective, as defined in the Performance Metrics section of this PWS.

- The Contractor will perform to a 99.5% FPA with the ability to maintain a Mechanic Wait Time (MWT) of 24 hours, with up to 5% of the overall bench stock locations requiring an 8 hour MWT. (Example 860 Total BSLs X 5% = 43 BSLs).

• The Contractor will utilize both the Government and the Contractor’s supply chains to achieve maximum efficiency in day-to-day supply support for specific ALC site(s). The Schedule of Items (SOI) will identify items that are to be normally sourced via Government or Contractor supply channels. The Contractor will buy, and own (until bin placement), both DLA and commercial material.

• In the event the Government is unable to acquire material through its normal supply channels, the Contractor will fill a backup role (DLA Backup) by using its supplier network to acquire approved material in a timely manner to meet mission requirements at the ALC sites. Some restrictions apply; see section 3.4.

• The requirement is derived, in part, through bench stock specific locations and the

Contractor’s solution cannot impede Production’s ability to perform (e.g. will not take the mechanic away from the work station). Any change in bench stock location, at each ALC, will be initiated by the Air Force and coordinated with the Contracting Officer.

• The Contractor shall accept returns in situations where material is quality deficient.

• The Contractor will develop an accurate accountability of material in the bins at the beginning of the Gen III contract.

• For the transition from the Generation II contract to the Generation III contract, the Contractor shall be responsible for providing a transition plan in accordance with Section 10.

• The Contractor shall be responsible for coordinating with the Air Force to establish appropriate levels of material within the bins. The levels established within the bins will allow for uninterrupted support to the mechanic during the transition period. This includes the initial transition period and the transition to automated bins.

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• The Contractor shall reduce the inventory investment by the customer and DLA through the elimination of excess inventory and maintaining only that inventory necessary to meet the contract first pass acceptance metric and carry out the mission of the customer.

• Through sound commercial supply chain management practices, the Contractor shall enable the customer to reduce the time required to accomplish their maintenance, repair and overhaul of weapons systems and related missions.

• The Contractor shall establish the capability to take timely actions in response to the customer’s requests for material as set forth in this contract. The Contractor will use DLA Backup procedures as necessary; see section 3.3.2.

• The Contractor shall utilize and maintain an accurate, efficient and unified management information system (MIS) that will integrate with existing government systems, and will be capable of modification to integrate with new government systems.

• The Contractor shall provide real time supply data/status, provide management data reports, and process Electronic Data Interchange (EDI) transactions. All data produced by the Contractor shall be provided to the Government (DLA/AF), and the data and the system that records / produces the data shall be accessible to the Government. All data provided to the Government shall not be considered proprietary and shall be considered a deliverable to the Government under this contract.

• Contractor shall be responsible for managing inventory if the bin will not accommodate entire unit of issue. (i.e. “sublocated” or “excess” inventory locations).

• The Contractor shall manage an effective balance between sourcing from the Contractor's supply chain and government sources to achieve maximum efficiency in supply support for both specific site customer and worldwide demand while supporting the socio-economic goals of Congress, the Department of Defense (DOD) and DLA.

• The Contractor is responsible to provide staffing sufficient to manage the transition requirements from Gen II to Gen III along with appropriate staffing levels to manage the expected outcomes of the program.

• The Contractor shall support all meetings and telecons, provide briefings as requested, and answerer applicable questions as required by the DLA COR, the contracting officer, and the customer. Meetings may include, but not be limited to, Depot Repair Enhancement Program (DREP) meetings, weekly production meetings, and other supportability meetings, as appropriate to gather data concerning real-time parts demand fluctuations and production inputs due to parts supportability issues.

2 General Information

2.1 Safety, Security, Environmental

The Contractor shall be knowledgeable of and comply with all applicable federal, state and local

12 | P a g e laws, regulations, instructions and requirements regarding environmental protection and occupational safety and health. The Contractor shall comply with any laws, instructions or regulation changes during the term of this contract.

2.2 Communication

Ongoing open communication is the key to the successful performance of the contract.

Throughout the term of the contract, the Contractor shall maintain regular communication with the Air Force, the Contracting Officer, the Contracting Officer’s Representative (COR), and DLA. The COR at each site is the primary Government channel for information flowing from the Air Force, but the communication avenues will include Air Force production personnel, complex IPV representatives, and MXSG Point of Use section. The Contractor will be required to participate in the production planning process. It is the responsibility of the Contractor to provide required, detailed information to the Air Force and DLA contracting officer regarding support issues, propose remedies and estimated completion dates for each issue. This shall be an ongoing process until each issue is resolved.

2.3 Meetings

Program Management Reviews 2.3.1 The Contractor shall host Program Management Reviews (PMR) in coordination with DLA and the Air Force. The objective of the PMR is to discuss Contractor performance, obtain performance feedback from the Government, and to provide the Contractor an additional opportunity for continuous process improvement through proactive efforts of all parties. The initial PMR will convene approximately 90 days after full performance of the contract.

Subsequent PMRs within the base period will be held on a quarterly basis or more frequently at the request of the Contracting Officer following the first PMR and will provide a review of the minutes from the last PMR, review the to-date program metrics, and address problems or issues with the program. For option periods following the base period, PMRs shall be held approximately every 120 days or more frequently at the request of the Contracting Officer.

The location, date and time of each PMR will be mutually agreed upon by DLA, the Air Force, and the Contractor at least fifteen (15) days prior to the PMR. PMRs will be located in the vicinity of Warner Robins, GA, Oklahoma City, OK, Ogden, UT, and/or a location near the Contractor. At a minimum, Contractor attendees at the PMRs shall include the Program Manager and the hosting Site Manager or their designated representatives.

Meeting agendas shall be provided to all attendees 10 business days in advance of all scheduled meetings and minutes provided within 10 business days after each meeting.

Production Planning 2.3.2 The Contractor shall be fully integrated into various AF production planning processes in order to demand plan appropriately and be synchronized with the customers work requirements. The Contractor will be required to attend production planning meetings and will be responsible for briefings at the Air Force or DLA request. Below is an estimate of number and frequency of meetings the Contractor may be required to attend.

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Meetings held at Robins AFB include, but are not limited to:

Eleven (11) weekly meetings Three (3) monthly meetings

Meetings held at Tinker AFB include, but are not limited to:

Four (4) weekly meetings Four (4) meetings every three (3) weeks

Meetings held at Hill AFB include, but are not limited to:

Three (3) weekly meetings

Other Meetings as Needed/Required 2.3.3 In the event the Contractor would like to participate in additional meetings that are not contractually required to better support and refine planning efforts, request to participate shall be coordinated with the Contracting Officer or Contracting Officer Representative. Additionally, there may be instances where Contractor participation in other meetings may be required.

Examples may be a high priority unforeseen maintenance support requirement or for the Contractor to brief status. If the Contracting Officer or Contracting Officer Representative determines attendance meets the objectives of the contract, the Contractor shall be permitted to attend.

The Contractor may want to participate in other production type meetings to better support and refine their planning efforts. The Contractor will coordinate with the Contracting Officer or Contracting Officer Representative in order to participate in these meetings. Additionally, there may be instances where Contractor participation in other meetings may be required. Examples may be a high priority unforeseen maintenance support requirement or for the Contractor to brief status. If it is determined to be in the Contractor’s best interest to participate, the Contracting Officer or Contracting Officer Representative will coordinate with the Contractor.

2.4 IPV Transition

Within fifteen (15) days after date of contract award, at a time and place convenient to the Contractor and DLA, a meeting shall be convened to review the Contract Implementation Plan and to finalize an agenda for the formal Contract Implementation Plan meetings at the ALC site(s). Following this preliminary implementation meeting, but no later than thirty (30) days after date of contract award, a formal Contract Implementation Plan meeting shall be held at one of the ALCs with participation by the Contractor, DLA, and the Air Force, to confirm all aspects of the final Implementation Plan. Subsequent Site meetings held at the remaining two ALCs will be held within every fifteen (15) days thereafter. All outstanding issues resulting from the Site Activation Meetings shall be resolved within sixty (60) days of contract award, and any changes to the Implementation Plan(s) shall be formalized and incorporated into the contract by modification.

2.5 Material Procured During Life of Contract

In the event that the Contractor procures and charges the Air Force for supplies/vehicles/equipment, etc., to perform contractual requirements for the Air Force via a contract modification, or any other means with authorization from the DLA Contracting Officer;

14 | P a g e the supplies/vehicles/equipment, etc., transition to Air Force owned Government Furnished Equipment (GFE). All GFE is subject to the terms and conditions of this PWS, contract, and applicable clauses. The Contractor’s liability for Loss, Theft, Damage, or Destruction to GFE shall begin when the Contractor receives the GFE. The Contractor shall remain liable for this GFE until returned to the Government.

2.6 Disposal of Non Material Related Items

In order to minimize any Foreign Object Damage (FOD) created by non-material related items, the Contractor shall dispose of non-material items such as cartons, boxes, packaging ancillary to bench stock items in proper Government refuse containers or recycling containers as required by the Maintenance organization.

2.7 Task Order Labor

There may be a need for temporary task order labor to support performance for this contract and/or Air Force requirements. Task Order Labor is a contractual provision that is used for temporary increased level of efforts in the IPV program at the three ALCs. Temporary is hereby defined as an increased level of effort not to last longer than twelve months in duration. Task Order Labor shall not be requested, or issued, on a consecutive or recurring basis for the same level of effort in an attempt to circumvent the temporary nature of Task Order Labor. Task Order Labor shall be within the scope of the contract, issued for a defined period of performance, and be within the maximum dollar value of the contract.

The request for Task Order Labor shall be initiated by the Contractor or the Air Force Customer, routed through DLA COR office that will, in turn, route it to the DLA Aviation Contracting Officer for coordination with the Contractor. All requests for Task Order Labor shall provide a detailed description of the work to be performed, location of the work to be performed, and the period of performance of the work to be performed. The Contracting Officer shall request a formal proposal from the Contractor and execute a formal contract modification for every instance of Task Order Labor.

2.8 Items of Supply

Items of supply will be provided in two ways: (1) to customer sites and (2) to DLA Depots in support of worldwide requirements

2.9 Schedule of Items (SOI)

The SOI is the list of replenishment parts and industrial hardware developed by the government and required for the support of the customers’ maintenance mission, overhaul, and repair of its weapons systems and related equipment. The required material to be provided by this contract can be identified by the National Stock Number (NSN), part-number and manufacturer’s code, drawing, or nomenclature. There are approximately 36,000 items within the scope of this contract. The SOI is segmented; approximately 70% of the SOI items are identified as DLA sourced and the remaining 30% are identified as commercially sourced items. Additional items that meet the definition of bench stock/consumable material may fall within the scope of this contract in the future. The SOI is subdivided into the following categories:

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1. DLA Sourced Items: Items that are required to be sourced via government source of supply.

This includes categories such as CSI, FAT, etc. These items may be eligible for transition to commercial sourced if a 10% cost savings over the Standard Unit Price (SUP) is realized.

2. Commercial Sourced Items: Items that are sourced by the IPV contractor. A core list of items will be identified and priced as part of the solicitation. Commercial items may be eligible for world-wide support if the total of the 3 ALCs account for more than 50% of the demand.

To the extent that the Contractor is not required to use government sources of supply, the Contractor shall qualify its network of manufacturers under its source selection process, and such suppliers otherwise must meet all requirements for qualification as a source of supply under government contracts (such as Qualified Products List, qualified suppliers list or other quality control demonstration), and the suppliers are not cited on the list of parties excluded from Federal Procurement or Non- Procurement Programs (EPLS) website at https://www.sam.gov/portal/public/SAM/, within 24 hours prior to delivery of material.

2.10 Deliver Material On-Site to the ALCs

To achieve optimum performance at the customer site, for covered items that are vendor sourced, the Contractor shall employ customary methods of logistics support, including but not limited to, best commercial practices, analysis of customers' needs and planning, and the maintenance of information systems for purchasing, quality control, inventory control, and distribution.

The Contractor shall establish a process ensuring a flow of replenishment parts and industrial hardware to the customer-site work area. As the Contractor assumes responsibility for support of specific replenishment parts and industrial hardware, the Contractor shall maintain the inventory at such levels any and all such materials are available to the mechanics or mechanics at or near the work center, when the mechanics require such replenishment parts or industrial hardware for the maintenance, overhaul or repair of military weapons systems or other related military equipment.

The Contractor shall maintain purchasing records as are necessary for the proper administration of provisions of the contract that bear on the element of price. The Contractor shall establish processes that will maintain levels that ensure the required number to ensure that the required number of parts will be available to the mechanic each time they attempt to draw parts from the bin.

The Contractor shall be responsible for the inventory management of all parts needed for the bins including inventory, ordering, receipt, and replenishment. The Contractor support of bench stock bins shall include: recurring visual inspection of each bin to ensure appropriate levels of material are maintained as well as verifying that bin stock is not above the allowable bin quantity, identification and replenishment of low and empty bins, providing parts status, and coordination with DLA / AF personnel for adding and deleting items from the bench stock.

The receiving function includes offloading of freight, including proper handling, inspection (kind, count, condition visual inspection) checking packaging, markings, and reporting discrepancies of all incoming material and routing that material to the end user. Proper

16 | P a g e identification and classification of material may require in-depth research. The Contractor is responsible for maintaining shipping documentation, required certifications and ensuring required government source inspection was performed or waived by the government quality control personnel prior to delivery to the end user.

The IPV Contractor shall transport parts from the Contractor warehouse to shop floor(s) in a manner consistent with best commercial practices, safeguarding the condition of the common hardware at the time of inspection and acceptance. The IPV Contractor shall be indemnified against full loss and/or damage of common hardware delivered to the shop floor.

The Government will perform random audits of the bins to validate material delivery as well as kind, count, and condition (KCC).

The Contractor shall be responsible for labeling (bar-coding/identifying) all material storage units (bins, carousels, VIDMARs) for all bins supported under the contract and ensuring what is in the bin matches the label. During ramp-up of newly priced vendor sourced items, the Contractor shall code the requisitions to the Government source of supply as “non-recurring”.

The Contractor shall be responsible for managing inventory if the bin will not accommodate an entire unit of issue. Currently, under Gen II this material, called ‘sub-located’ or ‘excess’, is owned by the AF and is managed by the Gen II Contractor. Under the Gen III strategy, the Gen III Contractor will own and manage any material outside of the bin. This includes instances where the Contractor orders replenishment items and, based on the unit of issue, the replenishment stock will not fit in the bin. The expectation is for the Contractor to fill the bin to the required level (AF owned – in the bin) and the Contractor own and manage (Contractor owned – outside the bin) the ‘overflow’ from replenishment that does not fit in the bin. Annual reconciliation of inventory will include any open packages that have not been fully utilized. See section 3.6 on Management of Overflow Material.

2.11 Deliver Material to DLA (Worldwide Demand Orders)

For items designated in the schedule as worldwide demand items, the Contractor will deliver ordered items to the DLA Supply Depot(s) or other DLA locations, within the continental United States, excluding Alaska and Hawaii, in strict accordance with the delivery orders issued. Any orders issued that specify delivery to other than a DLA distribution location may be rejected by the Contractor after notice to the contracting officer. Such notice must be made within 10 business days of the date of the order. Supplies covered by delivery orders (DO) shall be sourced through the Contractor's commercial supply chain. All delivery orders will be sent electronically.

The Contractor may stipulate a minimum order quantity and /or minimum dollar value per order.

Delivery times will be negotiated by line item at the time of addition to the contract.

Inspection/acceptance requirements will be noted on each delivery order. Inspection/acceptance of items will be designated as either destination or source inspection and acceptance. All inspection requirements will be included in the technical specifications and quality provisions data that will be provided by the government.

All deliveries will be packaged, marked and bar coded in accordance with the specifications of the solicitation/contract. Commercial packaging must be adequate to ensure that all supplies are

17 | P a g e delivered without damages and to withstand normal government storage without degradation of the items furnished. The applicable Warranty provisions are noted in the solicitation.

a. Delivery Order/Modification Distribution: Vendors will receive notice of the awards via posting on the DLA Internet Bid Board System (DIBBS) at https://www.dibbs.bsm.dla.mil. Delivery orders will be available for viewing on the DIBBS Website.

b. Registration is required to receive a DIBBS logon account and password. If your company experiences difficulties while in DIBBS, contact DibbsBSM@dla.mil.

2.12 Receipt and Receiving Responsibilities

The Contractor shall perform visual and physical examination, identification and receipt of a wide variety of material and parts. The Contractor shall conduct a kind, count, and condition (KCC) visual inspection.

Upon completion of the day’s receipts, the Contractor will retain the receipted material in their receiving location and provide the COR (via email) an excel file of the daily receipt report, which is a log that will contain the following data fields for each delivery: NSN, nomenclature, document number, quantity, bin number, unit of issue, unit price and source. These fields will be completed by the Contractor. The log will also contain the following column titles: selected, counted quantity, and problem to be completed by the government representative. The government representative will conduct a daily receipt sampling after which the Contractor may deliver the material to the customer’s bins. Any material receipted by the Contractor after that day’s log has been generated, will be included on the next day’s log and the material will remain in the Contractor receiving area to be included in the next day’s sampling. Note: Only work stoppage deliveries, upon approval by the COR or designee, may be delivered to the shop without waiting for the day’s sampling to be performed. The Contractor shall receive, maintain, and/or provide copies of purchasing and receipt documentation to the DLA contracting officer upon request.

2.13 Office and Storage Space

Available on base office and storage space is listed in Attachment __ (TBD). The Contractor may choose to obtain off-site office and storage space, appropriately furnished and staffed to meet the performance requirements of the contract. All costs associated with off-site space shall be borne by the Contractor and be included in the price proposal requirements of the contract.

3 Material Sourcing

3.1 Covered Items of Supply

High volume, recurring use items with at least 4 demands per year and with a unit cost below $250 are the primary focus of the support required under this PWS. However, applications such as kitting may require low volume use items which are deemed essential to the successful accomplishment of the Air Force’s mission. These kits contain a number of designated consumable spare parts provided in a single container. The types of items the Contractor will be required to provide are consumable spare parts that are normally stored at or near the point of use where mechanics are employed in the maintenance, overhaul and repair of weapons systems and related military equipment. The Contractor will convert the items to ‘eaches’ to support the

18 | P a g e schedule of items, regardless of the DLA unit of issue. Items covered by this PWS are generally cataloged under, but are not limited to, the following Federal Supply Classes (FSCs): 1005, 1010, 1015, 1025, 1240, 1280, 1290, 1377, 1560, 1620, 1630, 1650, 1660, 1670, 1680, 1730, 2090, 2510, 2520, 2530, 2540, 2590, 2610, 2640, 2805, 2815, 2835, 2840, 2910, 2915, 2920, 2930, 2940, 2990, 3010, 3020, 3030, 3040, 3110, 3120, 3130, 3439, 3455, 3820, 3830, 3940, 4010, 4020, 4030, 4130, 4140, 4210, 4240, 4310, 4320, 4330, 4540, 4710, 4720, 4730, 4810, 4820, 4910, 4930, 5110, 5120, 5130, 4133, 5136, 5305, 5306, 5307, 5310, 5315, 5320, 5325, 5330, 5335, 5331, 5339, 5340, 5344, 5345, 5350, 5355, 5360, 5364, 5365, 5420, 5640, 5805, 5905, 5906, 5910, 5920, 5925, 5930, 5935, 5940, 5945, 5950, 5960, 5961, 5962, 5970, 5975, 5977, 5980, 5985, 5990, 5995, 5999, 6105, 6110, 6115, 6130, 6135, 6140, 6145, 6150, 6160, 6210, 6220, 6230, 6240, 6250, 6260, 6310, 6350, 6365, 6510, 6515, 6530, 6545, 6620, 6625, 6635, 6640, 6645, 6650, 6680, 6685, 6695, 6810, 6830, 6850, 6930, 7240, 7340, 7350, 7510, 7530, 7690, 7920, 8010, 8030, 8115, 8125, 8140, 8305, 9150, 9160, 9320, 9330, 9340, 9390, 9505, 9510, 9515, 9520, 9525, 9530, 9535, 9540.

3.2 Item Additions/Deletions

From time to time, items may be added to, or deleted from, this contract, as the requirements of the customer dictates. These items may be spare parts cataloged under the FSCs listed in this contract which were not identified at the date of contract, but since have been determined to be items having application to the maintenance mission of the DLA customer. Alternatively, these items may be new spare parts resulting from modifications and upgrades to specifications, or to the design of a particular weapons system. The Contractor shall incorporate added items by adjustments to its management information system along with any other requirements data for integration into the Contractor’s supplier management process. Conversely, items may be deleted from the contract because they no longer are required or they have otherwise become obsolete.

With respect to any item added to this contract, the Contractor must furnish an item, which is in strict accordance with the technical requirements specified in the government technical data and quality provisions as designated by the specific National Stock Number (NSN). All additions, deletions, or changes for items using automated bin solutions shall be coordinated with MSXG Point of Use Section.

DLA items sourced by the Contractor, but later deleted from the SOI through no fault of the Contractor, shall be subject to a DLA buyback of material which is limited to 1.5 months of demand averaged over last 6 months. This applies only to unopened items in their original packaging. Demand analysis will be determined utilizing Contractor ordering history captured in the DLA Enterprise Business System. There will be no DLA buyback of SOI items identified as Commercially Sourced Items (commercial items purchased by the Contractor) that are deleted.

Additions of items shall be by supplemental agreement. Deletions shall be by unilateral modification.

Addition of Items 3.2.1 Within ten (10) days after the Contractor’s receipt of the contracting officer’s instruction that an item be added to the contract, the Contractor shall commence replenishment to include: establish the item in the Contractor’s information system, obtain the storage bin, and initiate a material order. Unusually large numbers of items being added at one time may require additional time to

19 | P a g e first purchase bins. The Contractor will initially source the item from DLA. Subsequently, the item may become a candidate for vendor sourcing. Items not available from DLA to meet the bin requirement are subject to the DLA backup process.

Deletion of Items 3.2.2 Within 5 days after notice from the Contracting Officer or Contracting Officer Representative to delete the bins, the Contractor will suspend replenishment and visibly identify the bins being deleted. The Contractor will cancel all due-in shipments. Any due-ins that cannot be cancelled will be received and should be processed for immediate return, as appropriate.