Tab_62_Attach_3_CD_SOW.docx

SECTION C

STATEMENT OF WORK (SOW)

SPE4AX-16-R-0004

BEARINGS (UNRESTRICTED) PROJECT

CUSTOMER DIRECT (CD) SUPPORT

C.1 General

C.1.1 The Defense Logistics Agency (DLA) Aviation is currently supporting consumable requirements for aerospace ball and roller bearings in federal supply class (FSC) 3110 via traditional transactional support processes. Current support includes multiple long-term contracts (LTC), basic ordering agreements (BOA), multiple individual contacts and emergency buys.

C.2 Scope

C.2.1 The scope of effort for this initiative is defined as supply support and associated supply chain management for the population of items listed in Schedule A. The Contractor(s) shall provide supplies and associated supply chain management in support of all DLA customers on a worldwide basis to include foreign military sales (FMS) customers.

C.2.2 The solicitation outlines the following areas of responsibility that the Contractor(s) will be required to execute:

· Demand Planning and Forecasting

· Purchasing, Order Processing and Fulfillment

· Supplier Management

· Finance (contractor-owned inventory)

· Item Management (i.e. stock levels and locations)

· Quality Control and Quality System Management

· Warehouse Management and Operations

· Obsolescence Management

· Packaging and Shipment Preparation

· Distribution and Transportation Management

· Customer Support Services

C.2.3 The contract(s) will be firm fixed-price (FFP), indefinite delivery indefinite quantity (IDIQ) contract(s) with a period of performance of five years. No option periods will be included.

C.3 Contract Transition and Implementation

C.3.1 The total length of the contract implementation / transition is estimated to be 180 days. The implementation / transition period shall begin on the date of contract award and shall end no later than the contract award date plus 180 days.

C.3.2 During implementation, the Contractor(s) shall perform all functions necessary to enable full performance at contract execution. These functions include, but are not limited to, establishing (or modifying) the necessary warehouse infrastructure, business partnerships, supplier agreements, materiel, systems (e.g. electronic data interface (EDI) testing), and customer service necessary to perform the requirements herein.

C.3.3 Existing contract and DLA managed inventory levels shall be provided by the Government to the Contractor(s) within ten days of contract award. Existing DLA managed inventory and contract due-ins, at the item level, will be consumed prior to when the Contractor(s) assume responsibility for filling material requisitions.

C.3.4 In the event DLA has a requirement for material during the contract implementation period as specified herein, DLA may request the Contractor(s) support the DLA transactional buy outside of the proposed contract(s). If the Contractor(s) have the material to support such a transactional purchase, a delivery order will be issued. The production lead-time (PLT) will be negotiated at the time of order. Performance metrics and associated incentives or disincentives will not apply to these orders.

C.3.5 Implementation Reporting

C.3.5.1 The Contractor(s) shall submit incremental status reports to update the Contracting Officer (KO) on its implementation progress during this period. At a minimum, these status reports are to be submitted, in writing to the KO, at the following milestones and corresponding no later than (NLT) timeframes:

5% of Implementation Plan executed – NLT day 30 of implementation period 25% of Implementation Plan executed – NLT day 45 of implementation period 50% of Implementation Plan executed – NLT day 90 of implementation period 75% of Implementation Plan executed – NLT day 120 of implementation period 95% of Implementation Plan executed – NLT day 165 of implementation period

C.3.5.2 These reports must be submitted at a rate reflecting progress and actual completion of events toward implementation (i.e., those chronological events listed in the Contractor’s Implementation Plan as required in Section L of the solicitation) such that the KO can form a reasonable belief that full performance will be achieved by the end of the Implementation Phase and that the corresponding percentage of completion has been achieved as at each milestone.

C.3.5.3 During the last month prior to full execution, the Government reserves the right to request additional implementation status reports, at no additional cost.

C.3.6 Performance Review Boards (PRB)

C.3.6.1 While not solely applicable to contract implementation / transition, PRBs will be held at a minimum of two times after the contract issue date and during the first year of contract performance, and annually thereafter for the remainder of the contract. The intent of the PRBs is to monitor and assess contract performance, to coordinate responses and foster solutions to challenges encountered during and after Contractor implementation.

C.3.6.2 If Contractor performance warrants it, the KO may expand the PRBs to semi-annually and shall provide the Contractor written notification no later than 45 days prior to the next scheduled PRB. Less formal in-process meetings, occurring telephonically, are anticipated to occur throughout the contract term, as necessary.

C.3.6.3 PRBs shall alternate between in-person and telephonic (or video, if available) conference meetings with the first PRB being conducted in-person. The Contractor shall host the first PRB at its location (selected to encourage maximum participation from the Government) and the Government will alternate hosting subsequent PRBs.

C.3.6.4 The PRBs will be co-chaired by DLA Aviation and the Contractor(s). The Contractor(s) shall develop an agenda (in accordance with the list of elements below and as approved by the KO) and distribute the agenda to perspective attendees no later than five days before the PRB, in accordance with DD Form 1423, Contract Data Requirements List (CDRL).

C.3.6.5 During the PRB, the Contractor shall provide status of schedules and support goals, any process improvement initiatives and provide status on the following elements:

· Support Overview – to include overall schedule status (i.e. delays, concerns)

· Metric Performance

· Supplier Issues

· Item Support Issues

· Quality Assurance Issues

· Obsolescence / Diminishing Manufacturing Sources and Material Shortages (DMSMS) Issues

· Other Issues or Challenges

· Previous PRB Open Action Items / New Action Items

C.3.6.6 Meeting minutes shall be developed and submitted in accordance with DD Form 1423, CDRL. The Contractor(s) shall submit PRB minutes for approval to the KO within ten days after each PRB. Other program reviews may be conducted as mutually agreed upon between the Government and the Contractor(s). DLA and the Contractor(s) are responsible for tracking and resolving, as appropriate, action items identified during the PRB. Action items shall be assigned aggressive due dates and shall be the first agenda item on subsequent PRBs.

C.3.7 During the transition / implementation period, DLA shall continue to support customer demands via traditional (e.g., pre-award) means except as provided for at C.3.4.

C.4 Logistics Support for Aerospace Ball and Roller Bearings

C.4.1 The Contractor(s) shall perform the necessary supply chain management functions to support worldwide and FMS customers’ requirements through direct shipments to continental United States (CONUS) and outside CONUS (OCONUS) locations within the delivery timeframes identified at Table 1 below and free on board (FOB) origin terms stated herein.

C.4.2 Inspection & Acceptance

C.4.2.1 Origin inspection and acceptance (I&A) is required for all items listed in Schedule A. Materiel needed to support the requirements of this effort will be procured outside of a Government contract. Therefore, the Defense Contract Management Agency (DCMA) personnel will not be able to assess these items during the applicable manufacture, assembly, or final inspection at the supplier’s location. As a result, the following requirements, at a minimum, will apply to each first lot shipment of applicable materiel.

C.4.2.2 DCMA will verify the Contractor’s and / or the item manufacturer’s technical records to establish reasonable assurance the item presented for acceptance meets all technical requirements. The Contractor(s) shall ensure suppliers maintain objective evidence that products were properly manufactured, inspected and meet requirements. Government customers shall have access to said technical and quality records.

C.4.2.3 The following additional requirements apply solely to Critical Safety Items (CSI).

1. The Contractor(s) shall provide the CSI manufacturer’s compliance with AS9100 requirements. Evidence of compliance includes: a) the CSI manufacturer’s Certificate of AS9100 Registration or b) the Contractor’s assessment report of AS9100 compliance showing the relevant dates, scope, limitations, final findings and conclusions and re-examination requirements.

2. The Contractor(s) shall provide mill test report(s) / certificate(s) identifying the material test values and chemical analysis, heat / lot number (if applicable), and lot / batch number (if applicable) traceable to CSI work order(s).

3. The Contractor(s) shall provide special process certificates for processes, inspections and tests conducted external to the supplier identifying the special process provider, certificate number, processes performed, date(s) performed and results.

4. The Contractor(s) shall provide Work Order Process Sheets, Operation Sheets, and / or Job Traveler(s) showing:

· The purchase order number, item part number(s), applicable drawing(s) and revision, quantities ordered, and date(s) of manufacture;

· Required manufacturing processes, operations, and workmanship requirements;

· Required in-process inspections / verification points, final inspections / test requirements, and all inspections performed, inspection results (e.g. pass / fail or actual values when specified) with inspector stamps, initials, or electronic signatures and date(s) of inspections;

· If serialization is required, inspection data for each serialized item;

· Raw material certificate information identifying the original mill to enable traceability of the work order to the material source;

· Special process requirements, identification of the special process provider(s), and special process certification information to enable traceability of the work order to special processors

5. If the CSI is an assembly, the Contractor(s) shall provide documented evidence that the constituent parts of the assembly were: 1) manufactured and inspected properly, 2) properly constructed and inspected and 3) tested in accordance with the applicable drawing or acceptance test.

6. The Contractor(s) shall provide any other technical information regarding additional process, operations, inspections or tests performed by the Contractor(s) prior to presenting the CSI for acceptance. Such Contractor(s) activities include actions taken by the Contractor(s) at the CSI supplier’s facility, at a Contractor facility or by a third party facility.

7. The Contractor(s) shall provide a Contractor Certificate of Conformance (COC), specific to the part number(s) and delivery order, certifying that the supplies conform to all applicable drawings and / or specifications and that all other contract, purchase order and quality requirements have been met.

8. If special packaging is required, the Contractor(s) shall ensure the products meet those requirements and that the packaging has not been compromised in a way that could materially affect the items.

9. The following evidence may also be considered, when required in writing, by the KO:

a. Evidence that either: 1) the CSI part numbered item was subject to First Article Inspection (FAI) in accordance with AS9102, or 2) that the supplier successfully manufactured the CSI part numbered item for the Contractor(s) within two years prior to the date of manufacture of the item(s) offered for acceptance.

b. If there were non-conformances on the CSI(s), material review records, “use as is” findings or rework or repair requirements and inspections on reworked or repaired item(s).

C.4.3 Packaging and Marking

C.4.3.1 Packaging shall be in accordance with military standard (MIL-STD) packaging requirements unless otherwise specified on the individual delivery order.

C.4.3.2 The Contractor(s) shall comply with all applicable labeling, marking and documentation requirements specified by MIL-STD-129P, Standard Practice for Military Marking. Military Shipping Labels (MSL) shall be generated from the Vendor Shipment Module (VSM), as detailed at C.4.3.5 below.

C.4.3.3 Radio Frequency Identification (RFID) requirements shall apply consistent to the requirements set forth at Defense Federal Acquisition Regulations Supplement (DFARS) 252.211-7006.

C.4.4 FOB Point and Transportation

C.4.4.1 The shipping terms are FOB origin. The Contractor(s) shall be responsible for all shipment of products in accordance with 49 CFR 170-178, International Maritime Organization – International Maritime Dangerous Goods (IMO-IMDG), International Civil Aviation Organization – International Air Transport Association (ICAO-IATA) and Military Aircraft (MilAir) [Air Force Manual (AFMAN) 24-204]. The Contractor(s) shall be responsible for shipment of materials from its designated facility to the customer within CONUS; to the customer or designated Container Consolidation Points (CCP) or Points of Embarkations (POE) for OCONUS; or to freight forwarders for FMS orders. The Contractor(s) shall email delivery@dla.mil for tentative destination instructions for FMS delivery orders.

C.4.5 VSM

C.4.5.1 The Contractor(s) shall establish a VSM account. To create an account, contact the DLA Distribution New Cumberland, J3 OS Transportation Operations (1-800-456-5507), which will assign a unique User Name and Password to access the website at https://vsm.distribution.dla.mil/. Once assigned an account in VSM, the Contractor(s) will be able to access current open purchase orders. By entering the weight and dimensions of packed, ready to ship orders in VSM, MSLs and carrier documentation will be available to print from the website. Small parcel shipments will be available immediately; freight shipments will be available based on Contractor’s submission to VSM. Contractor(s) will pack according to the mode of transport selected by the Government. Containers shall be loaded, blocked and braced with wood packaging materials (WPM) suitable for overseas transportation.

FMS orders may remain at the Contractor’s facility for an extended period of time (30 days or longer) pending foreign country clearances.

C.4.6 Delivery Requirements / Fill Rate Measurement

C.4.6.1 The Contractor(s) shall be required to meet the Time Definite Delivery (TDD) standards, however the fill rate measurement will be based on ship date rather than delivery receipt date. The Contractor(s) are required to meet a 90% material fill rate for all items.

FILL RATE MEASUREMENTS

CONUS and OCONUS Shipment to CCPs/POE

Delivery Order Category (CAT) Codes

The fill rate metric will assess performance over a 12-month performance period starting with performance on the first delivery order. The first performance period will start at the end of the implementation period, 180 days after contract award and will continue through contract expiration.

Fill Rate is the amount of time measured from receipt of order to shipment. The Contractor(s) are required to meet the TDD standards however the fill rate measurement will be based on ship date rather than delivery receipt date. Monthly fill rates will be computed to assess Contractor performance and identify problems as they occur. The material fill rate percentage is calculated by taking the total number of orders shipped complete within the designated timeframe, divided by the total number of orders received during that same timeframe. Both the monthly and annual performance fill rate will be computed using the following calculation.

FR% = (TRS / TRR) * 100

FR% = Fill Rate (rounded to the nearest tenth) TRS = Total Orders Shipped complete within the designated measurement timeframe TRR = Total Orders Received in a specific performance period

C.4.6.2 Fill rate exceptions will apply to FMS orders and cancelled delivery orders.

C.4.7 TDD Requirements

C.4.7.1 The Contractor(s) shall ensure each order is satisfied within the following TDD requirements.

TDD DELIVERY STANDARDS

CONUS and OCONUS Shipment to CCPs / POEs

High priority CD requirements are identified by Military Standard Requisitioning and Issue Procedures (MILSTRIP) priority designator codes 01, 02, and 03, and routine CD requirements are identified by MILSTRIP priority designator codes 04 through 15.

The Contractor(s) have successfully filled a CONUS demand when, after receipt of an electronic requisition, the customer has received a product at the customer designated site within the specified TDD standards. The Contractor(s) have successfully filled an OCONUS / FMS demand when, after receipt of an electronic requisition, the Contractor has delivered a product to the designated CCP, freight forwarder, or CONUS POE for OCONUS orders within the specified TDD standards.

C.5 Disincentives

C.5.1 Disincentives apply for Contractor performance that fails to meet the Government’s requirements set forth for customer support at C.4.4.1 and C.4.4.3.

C.5.2 The disincentives as shown in this section are measured and applied via contract performance periods as defined at below:

C.5.3 Performance shall be calculated at the conclusion of each performance period and be assessed against the respective delivery measurements at sections C.4.4.1 and C.4.4.3 above.

C.5.4 The disincentives are defined as follows:

*Fill rate performance is rounded to the nearest tenth C.5.5 The disincentive (percentage) will be multiplied by the total value of orders for the performance period to calculate the applied disincentive. DLA will provide quarterly and year-end fill rate percentages for review. In the event the Contractor(s) and DLA fail to agree upon the performance achieved, the Contractor(s) will provide the Contracting Officer written rationale for its performance position within 15 days of receiving DLA’s initial performance report. Should the Contractor(s) and DLA still disagree after 30 days, and if elevation through their respective management teams does not resolve the disagreement, the Contracting Officer may issue a unilateral decision.

C.5.6 Approximately 45 days after the end of each performance period, DLA will combine the calculated annual disincentives from the fill rate performance metrics to determine the disincentive to be collected from the Contractor(s). The Contracting Officer will issue a request for reimbursement to the Contractor(s) for the amount of disincentive. The Contractor(s) will remit payment directly to the Defense Finance and Accounting Service (DFAS) within 30 days of notification.

C.6 Small Business Subcontracting

C.6.1 The Contractor(s), regardless of its business size, shall ensure small business, veteran-owned small business, service-disabled veteran-owned small business (SDVOSB), historically-underutilized business zone (HUBZone) small business, small disadvantaged business (to include 8a designated businesses), and woman-owned small business concerns will have the maximum practicable opportunity to participate in contract performance. In order to assure these businesses have equitable opportunities to compete, the Contractor(s) shall publicize subcontracting opportunities via the Small Business Administration’s (SBA) SUB-Net at http://web.sba.gov/subnet and the DLA Aviation Small Business Programs website at http://www.aviation.dla.mil/userweb/sbo/ and report its small business program support semi-annually. If a large business is selected for award, a subcontracting plan, as required by FAR 19.704, shall be submitted. Upon approval of the plan, the Contractor(s) will be required to report via Electronic Subcontracting Reporting System (eSRS), its compliance to the approved plan.

C.7 Surge and Sustainment (S&S)

C.7.1 Pursuant to DLA Directives (DLAD) 52.217-9006, Surge and Sustainment (S&S) Requirements and 52.217-9007, Surge and Sustainment (S&S) Instructions to Offerors, the Contractor(s) shall plan for surges in demand within its or its suppliers’ production capacities and its own stocking plan. Surge quantities, identified as the Monthly Wartime Rate (MWR) are required every 30 days at S&S execution.

C.7.1.1 The MWR is represented as an exact number and is above and beyond the normal estimated demands of the item.

C.7.1.2 S&S MWR requirements will be validated at time of award and updated by the Contracting Officer no less than annually and subsequently provided to the Contractor(s).

C.7.2 Any order for S&S quantities shall be clearly defined as an S&S order; however, the Contractor(s) shall not ship S&S quantities without written confirmation from the Contracting Officer.

C.7.3 An order or series of orders that exceed the MWR, but are not identified by a delivery order notice that S&S applies, are not S&S requirements.

C.8 Quality Control

C.8.1 The Contractor(s) shall ensure the material conforms to the requirements in the Purchase Order Text (POT) for each item.

C.8.2 The Contractor(s) shall maintain a quality system that meets the requirements of the most recent Internals Organization for Standardization (ISO) 9000 standard (or equal).

C.8.2.1 The Contractor’s quality management system / program shall be designed to promptly detect handling, storage and warehousing conditions that adversely affect performance and quality.

C.9 Obsolescence Management

C.9.1 The Contractor(s) are responsible for managing the obsolescence of the population of items throughout the life of the contract by providing the timely notice and obsolescence briefs identified below.

C.9.1.1 The Contractor(s) shall provide the Government with immediate, written notification of any known manufacturer discontinuations, including a recommendation for and potential substitute or replacement items and substantiation of such recommendation.

C.9.1.2 The Contractor(s) shall provide obsolescence status briefs as a part of the PRBs required under the contract, as identified in C.3.6.5 herein.

C.10 Configuration Control

C.10.1 The Government will maintain configuration control and change authority for all modifications or changes to contract items. The Engineering Support Activity (ESA) for the items may vary and thus, the Contractor(s) shall initiate configuration control issues, in writing, to the Contracting Officer.

C.10.1.1 The Contractor(s) may review configuration items and recommend other known available items that meet or exceed the current application of the item(s) and represent a better value to the Government.

C.10.1.2 The Contractor(s) shall submit for approval to the Contracting Officer all known configuration changes that affect the supply of contract items to include impacted system(s), old and new part numbers, and the reason for the proposed change.

C.10.2 The Contractor(s) shall not supply any item under the contract that incorporates a known departure from technical or contractual requirements unless a request for a deviation, submitted from the Contractor(s)to the Contracting Officer, has been approved by the ESA. Authorized deviations are a temporary departure from the requirements only and do not authorize a change to the item’s configuration baseline.

C.10.2.1 Deviation requests shall be prepared in accordance with DI-CMAN-80640, Request for Deviation. Guidelines for preparing deviations may also be found in MIL-HDBK-61A, Configuration Management Guidance and ANSI / EIA-649, National Consensus Standard for Configuration Management. For all items supplied by the Contractor(s) under the resulting contract(s), deviations, waivers or engineering change proposals are not permitted unless authorized in writing by the Contracting Officer.

C.11 Requisition Processing

C.11.1 Order placement shall be by EDI transmissions in accordance with American National Standards Institute (ANSI) X12 Standards through a registered Value Added Network (VAN). An EDI transmission from the Contracting Officer constitutes a binding order; the Contractor(s) are required to commence performance upon receipt of a binding order. See DLAD 52.204-9001, Electronic Order Transmission.

C.11.2 In general, the process will work as follows. The Government customer submits a requisition, requisition follow-up or requisition cancellation to DLA. The requirement is then forwarded to the Contractor(s) via a delivery order issued from the DLA procurement system that will format (i.e. translate) the Government requisition into the appropriate EDI transaction set.

C.11.3 The following three EDI transactions are required for the purpose of transmitting delivery orders and tracking Contractor performance:

850 Purchase / Delivery Order 856 Shipment Notice Manifest 997 Functional Acknowledgement

C.11.3.1 The 850 is processed through the issuing DLA Supply Chain; the 856 identifies the order shipment date and the total quantity; and the 997 indicates the Contractor(s) received the order, thus establishing the order date.

C.11.4 The Contractor(s) are required to use (or upgrade to) the latest EDI transactions, as they become available.

C.12 Contractor Reporting Requirements List

C.12.1 The following is a list of the Contractor(s) reporting requirements required for submission to the Contracting Officer.

(submitted to the Contracting Officer) Reference Location

1. Implementation Report Indicate the applicable percentage of completion and identify how said percent was achieved based on completed tasks identified in the Contractor’s Implementation Plan Submitted at identified percentages of Milestone completion (or more frequently, when requested by the Contracting Officer)

C.3.5

2. Small Business Support Report shall identify subcontracting dollars and percent of subcontract dollars by small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantages business (to include 8a), and woman-owned small business Semi-annually – no later than 14 days from the reporting period’s end

C.6.1

(submitted to the Contracting Officer) Reference Location

3. Performance Review Boards (PRBs)

PRB; 10 Days after each

PRB

C.3.6.4

C.3.6.6

4. Contract Closeout Inventory

the month beginning 12 months prior to contract expiration

C.14.1

5. Contract Closeout Materiel Forecast Materiel forecast data by NSN, indicating anticipated quantity demands, by month, for the next 12 months Monthly, on the first of each month beginning 90 days prior to contract close-out

C.14.1.2

6. Contract Supplier Report

to contract expiration C.14.2

C.12.2 All reports shall contain, at a minimum, the elements identified above and be submitted in a Microsoft Excel format (for raw data) and Microsoft PowerPoint or Word (for charts pertaining to raw data), unless otherwise directed by the Contracting Officer.

C.13 Contractor Performance Assessment Reporting System (CPARS)

C.13.1 The contract(s) awarded are subject to CPARS reporting in accordance with FAR 42.1502.

C.14 Contract Closeout and Exit

C.14.1 Contract closeout is the period before the expiration of the contract on its own terms or execution of one of the termination clauses in the contract. Other than in the event of termination, contract closeout shall begin 12 months prior to the final expiration of the contract. Beginning on the first day of each month during contract close-out, the Contractor(s) shall provide an inventory listing to the Contracting Officer to include on-hand assets, due-ins and orders / quantities processed out, by item, in accordance with DD Form 1423, CDRL.

C.14.1.1 DLA reserves the right of first refusal to buy back all or part of residual stock and place delivery orders for materiel to cover logistical support for the period necessary for DLA to resume management or transfer management to another follow-on contract.

C.14.1.2 DLA will consider the procurement and administrative lead times (ALT and PLT) to obtain parts in addition to asset balances and forecasted demand in determining whether or not to place these types of buy-back orders. Throughout contract closeout, the Contractor(s) shall provide the Contracting Officer its materiel forecast data for this analysis and determination. The initial data set shall be provided to the Contracting Officer 90 days prior to commencement of contract closeout with following submissions provided on the first of each month during closeout, along with inventory levels and due-ins as requested at C.14.1 above and DD Form 1423, CDRL.

C.14.2 In addition to the forecasting data, no less than 90 days prior to contract expiration, the Contractor(s) shall provide a materiel sourcing report for all procurements completed during the contract term. The report shall identify the NSN, part number, supplier name, Contractor and Governmental Entity (CAGE) code (if applicable), quantities procured and date of purchase in accordance with DD Form 1423, CDRL.