RFQATTACH.SPE4AK18Q0027.0000.DOC

Version: 30 October 2017

Attachment C-1

Page 1 of 6 Pages

GENERIC STATEMENT OF WORK

FOR CONTRACTOR SUPPORTED

NON LONG-TERM

KITTING EFFORTS

1.0 Scope: This Statement of Work (SOW) defines the requirements for commercial kitting efforts in support of Defense Logistics Agency (DLA) Aviation and our aviation customers. The initiative consists of obtaining Government Furnished Material (GFM) and/or Contractor Furnished Material (CFM) as new consumable component parts, assembling of parts into pre-defined kits, and ensuring availability of all kits required to meet contract delivery requirements. Kit stock/direct vendor delivery locations will be identified on future delivery orders and Contract Line Item Numbers (CLIN) as required. Each kit is assigned a National Stock Number (NSN) and the government or commercial drawing specified in the kit NSN’s Purchase Order Text (POT). This SOW, applicable references, and contract clauses describe the methods for requirements determination, obtaining consumable parts, and the assembly, packaging, labeling, and transportation of kits. In obtaining the component parts, the contractor will utilize Government Furnished Material to the maximum extent possible. The Contractor is required to follow the procedures in Sections 2.0, 2.4.1 through 2.4.3, and 2.5 for sourcing and pricing guidelines. All proposals must be compliant with the solicitation and this SOW. Any exceptions must be addressed in a separate alternate offer.

2.0 Requirements: Sections 2.0 through 2.9 describe the requirements for this SOW. Detailed requirements for component part NSNs, i.e. solicitation attachments and Procurement Item Description (PID) data, are readily accessible via the DLA Aviation-PAAC File Transfer Protocol site at 206.38.37.16, or through the DLA Aviation Kitting website at http://www.dla.mil/Aviation/Offers/Products/PartsKitting.aspx . The contract kit price will consist of the contractor kitting service/tooling/packaging material fees, plus the sum of all component commercial spot buy costs (as approved for purchase as CFM by the Contracting Officer) as priced on Attachment J-3, Pre-Priced Potential Spot Buys (also refer to solicitation CLIN 0001.

· Government Furnished Material will be the primary source of supply for the component part National Stock Numbers that comprise each kit (refer to Attachment J-1, Kit Configuration File). Detailed requirements for CFM component part NSNs are contained in the kit components’ Procurement Item Description (PID) and POT data. Service managed items will be provided as GFM. Only the primary Commercial and Government Entity (CAGE) code and part number will be provided in the kit configurations.

· The contractor will be responsible for the timely ordering of CFM to hold levels of inventory sufficient to meet contract delivery requirements. The contractor will be required to utilize GFM when available and approved on Attachment J-3 Pricing Sheet. If kit components are unavailable as GFM, the contractor may be authorized to procure CFM from approved commercial sources, in accordance with section 2.4.3.

· In preparing the proposal, offerors must fill in the information requested in Attachment J-3 Pricing Sheet of the solicitation (Refer to sections 2.4.3 and 2.5). In addition to the hard copy provided as part of the offeror’s proposal, the completed Excel J-3 Pricing Sheet shall be attached to an email and returned to the DLA Aviation -FAJD Acquisition Specialist.

· The contractor’s information technology systems shall interface with Department of Defense (DoD) systems in an electronic commerce and/or electronic data interchange environment.

2.1 System Interface and Integration: The contractor may need to establish interface capability with DoD Emall as a “Shopper” if required to track GFM stock availability material movement status. In accordance with Federal Acquisition Regulation (FAR) 45.011, Definitions, “Property” as used in this acquisition includes “material”. Note: contractors will not be authorized to requisition parts from the DoD/DLA supply systems.

2.2 Kit Configuration Management: Current kit configurations are identified in Attachment J-1 and in the applicable Government or commercial drawing(s), as cited in the Item Description for each kit. No deviations from the specified kit configurations are allowed unless the Contracting Officer approves in writing (coordination with the Engineering Support Activity (ESA) may be required). Serviced Managed Items are identified in the Kit Configuration. All offers made on a specific kit must be made in accordance with the kit drawing. Any offer with changes, alternate parts, or substitutions will not be accepted.

· The contractor shall furnish new/unused parts that conform to the approved configuration requirements/revisions and sources, as cited in the PID/POT. Any requests for waiver, deviations and/or changes shall be submitted to DLA Aviation-PAAC to obtain approval from the ESA. Sources of supply not already listed in the PID/POT must be approved by the ESA.

· A contractor can provide an alternate offer in addition to their compliant offer. The alternate offer must be clearly marked “alternate offer”, and show the original kit component(s) and each component part being offered as an alternate part. All requests for alternate offers must also contain documentation as to the rationale for the request to utilize the alternate part(s).

2.3 Forecasting the Acquisition of Component Parts: The contractor shall manage this kit assembly effort to ensure components specified on Attachment J-3 as spot buys (CFM) are acquired from approved commercial sources in advance of kit need dates. Forecasting of CFM shall be sufficient to ensure that acquisitions for component parts are placed with the appropriate source of supply lead-time away, and kits are assembled and delivered complete to the appropriate DLA storage locations in time to meet the required contract delivery date.

2.4 Ordering and Sourcing of Kit Components: The contractor will be responsible for the timely acquisition of components to hold levels of inventory sufficient to meet contract delivery requirements.

Most components, to include those referenced in 2.4.1, will be provided as GFM unless otherwise specified and approved in Attachment J-3 as spot buys. The contractor shall review the unit of issue (U/I) for each component part to ensure accurate and economical ordering of parts identified as spot buys on Attachment J-3, as the kit requirements (Units Per Assembly) may be different than the standard unit of issue (e.g. U/I equals hundred, kit requires 50 each), and the part may be used in multiple kits.

2.4.1 Mandatory Sourcing: GFM stock positions are determined as of the solicitation date and included in the solicitation. Sourcing and pricing determinations made in accordance with sections 2.4.2.1, 2.4.2.2, and 2.4.3 normally should not change due to changes in stock positions. Without exception, all component NSNs identified as Critical Safety Items (CSIs), Flight Safety Critical Application Parts (FSCAPs), or have a First Article Testing/Production Lot Testing (FAT/PLT) requirement shall be provided to the contractor as GFM. Non-receipt of CSIs, FSCAPs, or components identified as FAT/PLT requirements after 45 days from the date of the delivery order shall be reported to the DLA Aviation Contracting Officer as soon as possible. All other components, unless otherwise specified as commercial spot buys on Attachment J-3, shall be provided by the Government as GFM via material release orders. The contractor will be provided an estimated delivery date for the out of stock parts and the kitting contract delivery date will be adjusted accordingly.

· In the event the units per kit is different than the unit of issue for a CSI, FSCAP, FAT, or PLT component part, the contractor shall cite the original component purchase order number, delivery order number, or contract number on the new packaging label for each kit build.

· The coding of component parts to/from CSI, FSCAP, FAT, or PLT, may change during the term of the contract and impact the sourcing and ordering of the parts. The Contracting Officer will immediately notify the contractor of any additions/deletions/changes of these parts. The award will be modified accordingly. Any changes in price will be in accordance with section 2.4.3.

2.4.2 Government Furnished Property: FAR clause 52.245-1 is applicable. Of special interest:

· The contractor is advised that in accordance with FAR 52.245-1 (b) the contractor shall be responsible and accountable for all Government Property provided under this contract and shall comply with FAR Subpart 45.5, as in effect on the date of this contract. In addition, in accordance with FAR 52.245-1 (f), the contractor shall establish and maintain a program for the use, maintenance, repair, protection and preservation of Government Property in accordance with sound industrial practice and the applicable provisions of Subpart 45.5 of the FAR.

Property clauses are applicable and shall be provided in both the solicitation and award. Contractors are required to submit with their quote either evidence of a Defense Contract Management Agency (DCMA) approved Government Property Control System or evidence that their proposed system is currently under DCMA review. All contractors are required to have a DCMA approved Government Property Control System in place prior to time of award to be eligible for the award. Contractors seeking to do business with DLA Aviation/FAJD should contact their cognizant DCMA Property Administrator for guidance. The following guidance is located in the FTP directory on the DLA Aviation Kitting website: http://www.dla.mil/Aviation/Offers/Products/PartsKitting.aspx

· , Property Control Guidelines, sample plan for the Procedures for Control of Government Furnished Property and a hyper link to the DoD Manual of the Performance of Contract Property Administration.

· Unless approved in advance by the Contracting Officer, the contractor shall supply only new and unused parts that are not Government surplus parts. Abandoned GFM does not qualify as Government Surplus Material.

· The contractor is required to report all incidences of GFM shortages or GFM discrepant material to the Post-Award Administrator as soon as possible. However, shortages will not be reported until 45 days after receipt of a delivery order to allow sufficient time to receive all releases of GFM from various storage locations. The Post-Award Administrator will provide disposition instructions to the contractor within 30 days of receiving the contractor’s report.

· The contractor is required to report excess GFM to the Contracting Officer as soon as the last shipment of kits for the contract year is delivered to the Government. The Contracting Officer will provide disposition instructions to the contractor within 30 days of receiving the contractor’s report.

2.4.3 Commercial Spot Buys: Any part identified and approved for a commercial spot buy on Attachment J-3 must be purchased in accordance with the PID/POT from an ESA approved source. Material purchased must be new and unused. The technical configuration of the components purchased must comply with the item description data which is accessible via the DLA Aviation -PAAC website.

· Attachment J-3 identifies all non-CSI, non-FSCAP, non-FAT, and non-PLT parts and quantities being considered for commercial spot buys as CFM. Provide your price per unit of measure (UM) to the Government for all parts and associated quantities identified in Attachment J-3 as commercial spot buys (Labor, Overhead, G&A, and Profit are entered separately in the Service Fee portion of Attachment J-3).

· Parts pricing shall reflect the actual invoice price quoted (per UM) from your supplier

· The total tooling charge from your supplier shall be provided for each applicable part Note: In most cases, the Government does not accept price adjustments on firm-fixed price procurements. In extreme circumstances where a price adjustment may be justified, a price adjustment request may be forwarded to the post-award Contracting Officer for review. Approval may be granted if it is in the best interest of the Government.

2.5 Assembly, Packaging, and Marking: The contractor shall comply with the kit preservation, packaging, packing, and marking requirements specified in the contract. The contractor shall ensure the kits are assembled and each kit placed in one (1) box/container where possible. In the event that more than one container is required, the outer box must provide appropriate labeling and marking to identify the kit and sub-kit NSNs. The contractor shall be responsible for assembling, packaging and marking sub-kits within a kit when sub-kit requirements are specified in Attachment J-1 or in the Government or Commercial drawing. Sub-kit identification numbers and the special instructions pertaining to assembling sub-kits will be provided when the service customer specifies sub-kit requirements. Each boxed kit must contain a Kit List, consisting of component part NSN, part number, and quantity per kit at a minimum. The kit contents must be cushioned as necessary to prevent movement and damage and shall comply with the kit preservation, packaging, packing, and marking requirements specified in the contract and/or marked and bar coded per MIL-STD-129, Revision P.

All CSI, FSCAP, FAT, or PLT components must remain it its original packaging to positively identify the original contract, manufacturer, CAGE code, and part number in order to provide traceability of the item.

When ANY Government furnished material is in a unit of issue other than each and the required unit per assembly is less than the total packaged, then the package must be opened and the applicable amount put into a new package. The new package must be labeled with the NSN, the original contract number, manufacturer, CAGE, part number, and any shelf life information from the original package plus the new package quantity.

Packaging, marking, and labeling material costs shall be entered in Attachment J-3 as a total amount for the project.

2.6 The Quality Matrix Report: Attachment J-2 includes quality headers that specify the inspection requirement, quality assurance provisions, first article testing, product verification testing and other specific quality requirements for each component NSN. An appendix to the quality headers is also available, which designates contract clauses that apply to each quality requirement and provides references and handbooks that decode the various quality codes. The report provides information to supplement the requirements stated in the Item Description. Contact the Post-Award Administrator for clarification of any apparent discrepancies that may exist between the Item Description and the Quality Matrix.

2.7 Reports: If the Contractor is required to furnish cost, funding, or performance reports, the Contracting Officer or an authorized representative of the Contracting Officer shall have the right to examine the supporting records and materials, for the purpose of evaluating:

· The effectiveness of the Contractor's policies and procedures to produce data compatible with the objectives of these reports; and

· The data reported.

2.7.1 Critical Safety Item Report: A cumulative Excel spreadsheet report of all CSI, FSCAP, FAT, and PLT components received as GFM during the previous month containing: NSN and/or part number, quantity, and document number will be provided to DLA Aviation -PAAC by the 10th calendar day of each month. The contractor is required to include the contract number/delivery order/purchase order number in this report to ensure traceability of these components to specific kit builds.

2.7.2 Commercial Spot Buy Report: A report of all CFM purchased containing: NSN and/or part number, quantity, cost, and source (Commercial and Government Entity code and company name). Invoices may be requested by the Government.

2.7.3 GFM Shortage Report: A cumulative Excel spreadsheet report of all GFM shortages per delivery order containing: the award number, award date, kit contract delivery date, component NSN, quantity required, quantity received, SL document number, and the quantity short. In addition, the contractor shall provide a DD Form 1348 or DD Form 250 for each component NSN on the report. The Contracting Officer will respond within 7 business days with the status.

2.8 Completing Attachment J-3 Pricing Worksheet:

Cost and pricing data shall be sufficiently detailed for the Source Selection and Cost and Pricing Teams to clearly identify the offeror’s actual price they will pay to their suppliers for CFM and any applicable tooling costs, as well as the packaging/labeling materials and Service Fee direct/indirect costs. The J-3 Pricing Workbook contains two spreadsheets Tab 1) J-3 Pricing Sheet and Tab 2) Service Fee Pricing Sheet. Offerors are required to fill in the areas highlighted in Green background within each pricing worksheet.

· Tab 1 “Unit Cost (UM)”: Enter CFM costs for items identified as spot buys (Refer to section 2.4.3): This shall reflect the actual buy price of each part per unit of measure, not to include any additional costs for purchasing or profit, etc. Purchasing, profit, etc will be included in Tab 2.

· Tab 1 “Days Until Available (Days ARO)” (After Receipt of Order): Enter the number of days for you to receive the CFM from your suppliers from the date you place the order.

· Tab 1 “Mfg CAGE Code”: Enter the CAGE code of the manufacturer of the part you are quoting from your supplier.

· Tab 1 “Dealer’s CAGE Code”: Enter the CAGE code of the supplier of the part if different than the manufacturer.

· Tab 1 “Tooling Cost” (Refer to section 2.4.3): If special tooling is required in the manufacturing of CFM, then this cost will be entered in the Tab 1 for each applicable part.

· Tab 1 “Total Packaging/Labeling Materials Price per Kit CLIN” (Refer to section 2.5): This shall reflect the costs of the containers/packaging, packing materials, labels and marking materials associated with the assembly of components into kits/sub kits for the total contract kit quantity per kit NSN/Kit CLIN.

· Tab 1 “Estimated Kit Delivery Date”: Enter the Estimated date that each kit will be complete and available for shipment to the designated storage location

· Enter your company name in the Tab 1 block titled “ Pricing Sheet Submitted by”

· Tab 1 “Total Service Fee per Kit CLIN”: Click on the Hyperlink to Tab 2 or go to the Service Fee Pricing Sheet for entering data for each kit CLIN.

· Tab 2 requires the overall Direct Labor, Company Overhead, G&A, and Profit dollars for this project that you have calculated using your methodology approved during your last DCAA audit or from worksheets/records that can be made available for a DCAA audit. These amounts will be entered automatically into the Tab 1.

· You can click on the hyperlink to Tab 1 or go to the J-3 Pricing Sheet when you are done.

2.9 SPTV Monthly Snapshot:

The SPTV Monthly Snapshot is to be filled out IAW the instructions on the Vendor Instructions tab.