SPE4AX13D9425_(issued_19Sep13).pdf

CONTINUATION SHEET REFERENCE NO. OF DOCUMENT BEING CONTINUED

SPE4AX-13-D-9425

Page

NAME OF OFFEROR OR CONTRACTOR: SUPPLYCORE, INC. (CAGE 4V314)

50336-101 NSN 7540-01-152-8067

US GOVERNMENT PRINTING OFFICE 1990-262-081

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FAR (48 CFR) 53.110

SECTION A

GENERAL INFORMATION

A.1 OVERVIEW

A.1.1 The Warner Robins Air Logistics Complex (WR-ALC) and Worldwide (WW) Hub & Blade contract herein is an Indefinite Delivery Indefinite Quantity (IDIQ) type contract for supply support and associated supply chain management on a Firm Fixed-Price (FFP) basis resulting from the small business set-aside (SA) portion of solicitation SPM4A2-13-R-0002.

A.1.2 The contract is for a base period of three (3) years with a single, two (2) year option period to be exercised at the discretion of the government. The total contract length is not to exceed five (5) years from the beginning of the ordering period, as set forth at FAR 52.216-

18. The amount stated in box 15G of the SF26 reflects estimated value of the base period only.

A.2 PRICES

This contract is FFP for each contract year, for both schedules of support: industrial customer support at WR-ALC and operational customer support WW & foreign military sales (FMS). See Section B for the awarded prices for each National Stock Number (NSN) applicable to this requirement.

A.3 DELIVERY

A.3.1 Industrial Customer at WR-ALC: Delivery requirements are detailed at C.5.7 and its subparts.

A.3.2 Operational Customer Worldwide: Delivery requirements are detailed at C.6.5 and its subparts.

A.3.3 FMS Customer: Delivery requirements are detailed at C.7.4 and its subparts.

A.4 ITEM DESCRIPTION

The Purchase Order Text files provided at Attachment 5B of the solicitation are hereby incorporated by reference. In addition, Attachment 1 identifies part numbers for each NSN.

A.5 FOB POINT AND INSPECTION & ACCEPTANCE

A.5.1 Industrial Customer at WR-ALC: Delivery orders will be FOB Destination and Inspection & Acceptance is Destination.

A.5.2 Operational Customer Worldwide: Delivery orders will be FOB Origin (requiring the use of Vendor Shipment Module (VSM)) and Inspection & Acceptance varies by NSN. See Attachment 1, “WW & FMS Pricing” tab, column I & A for Destination (D) and Origin (O) requirements. First lot origin inspection is detailed at C.6.2.2 and its subparts herein.

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A.5.3 FMS Customer: Delivery orders will be FOB Origin and Inspection & Acceptance is Origin.

A.6 ADMINISTRATION OF BASIC CONTRACT

Administration of the Basic Contract will be performed by the Defense Contract Management Agency (DCMA) CHICAGO referenced in block 6 of the SF26.

A.7 CONTRACT MINIMUM

The government has reserved funds for the guaranteed contract minimum of $150,644.33; 1% of the estimated annual demand value, as cited at DLAD 52.216-9010 of the solicitation. The solicitation value is updated based on contract pricing.

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SECTION B

SCHEDULE OF SUPPLIES

B.1 Attachment 1, tab “WR-ALC” identifies the five-year FFP for each NSN subject to industrial customer support at WR-ALC.

a. NSN – Self Explanatory

b. NIIN – Self Explanatory

c. Item – Self Explanatory

d. WR-ALC U/P Base Period, Year One – Self Explanatory

e. WR-ALC U/P Base Period, Year Two – Self Explanatory

f. WR-ALC U/P Base Period, Year Three – Self Explanatory

g. WR-ALC U/P Option Period, Year One – Self Explanatory

h. WR-ALC U/P Option Period, Year Two – Self Explanatory

i. Part Number (P/N) – P/N identified for supply by the Contractor

j. UI – Unit of Issue

k. I & A – Inspection & Acceptance requirement; all items supporting the industrial customer at WR-ALC are coded for Destination (D) inspection and acceptance

l. DPAS Pri Rating – Defense Priority and Allocation System (DPAS) Priority Rating

m. DPAS Rating Pro Ind – DPAS Rating Program Identifier

n. Non-Mfr Rule Waiver – Non-Manufacturer Rule Waiver applicable items marked with an

“X”

B.2 Attachment 1, tab “WW & FMS” identifies the five-year FFP for each NSN subject to operational customer support WW & FMS customers.

a. NSN – Self Explanatory

b. NIIN – Self Explanatory

c. Item – Self Explanatory

d. WW & FMS U/P Base Period, Year One – Self Explanatory

e. WW & FMS U/P Base Period, Year Two – Self Explanatory

f. WW & FMS U/P Base Period, Year Three – Self Explanatory

g. WW & FMS U/P Option Period, Year One – Self Explanatory

h. WW & FMS U/P Option Period, Year Two – Self Explanatory

i. Part Number (P/N) – P/N identified for supply by the Contractor

j. UI – Unit of Issue

k. I & A – Inspection & Acceptance requirement; NSNs identified with a “D” require

Destination I&A while NSNs identified with an “O” require first lot origin I&A (first lot origin I&A defined at C.6.2.2 below)

l. DPAS Pri Rating – Defense Priority and Allocation System (DPAS) Priority Rating

m. DPAS Rating Pro Ind – DPAS Rating Program Identifier

n. Non-Mfr Rule Waiver – Non-Manufacturer Rule Waiver applicable items marked with an

“X”

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B.3 Attachment 1, tab “S&S” identifies the five-year FFP for each NSN subject to Surge & Sustainment (S&S).

a. NSN – Self Explanatory, NSN with S&S requirements

b. NIIN – Self Explanatory, NIIN with S&S requirements

c. S&S MWR – Monthly Wartime Rate – quantity needed every 30 days upon notification of an S&S requirement

d. U/P Base Period, Year One U/P – Self Explanatory

e. U/P Base Period, Year Two U/P – Self Explanatory

f. U/P Base Period, Year Three U/P – Self Explanatory

g. U/P Option Period, Year One U/P – Self Explanatory

h. U/P Option Period, Year Two U/P – Self Explanatory

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SECTION C

DESCRIPTIONS/SPECIFICATIONS/WORK STATEMENTS

C.1 GENERAL

SupplyCore Inc.’s proposal dated 26 Feb 13 and Final Proposal Revision dated 14 Aug 13 along with Solicitation SPM4A2-13-R-0002 and Amendments 0001 through 0006 are hereby incorporated into the contract.

C.2 SCOPE

The WR-ALC and WW Hub & Blade scope of effort is supply support and associated supply chain management for the items subject to the SA portion of the requirement. The Contractor shall provide supplies and associated supply chain management in support of industrial customers at WR-ALC and WW operational customers and FMS. The schedule of supplies is identified at Attachment 1; future NSNs may be added as they are identified throughout the contract term. NSNs added to the SA portion will include all applicable propeller spare parts that are not sole source to UTC Aerospace Systems (UTAS) and not coded as Critical Safety Items.

C.3 CONTRACT TRANSITION & IMPLEMENTATION

C.3.1 The Transition & Implementation period shall begin on the contract award and end on or before 05 Jun 14.

C.3.2 The Contractor shall perform all functions necessary to support full performance at contract execution and no later than 06 Jun 14. These functions and actions are described in the Contractor’s proposal and solicitation, both incorporated by reference.

C.3.2.1 The Contractor’s internet service provider for use in storefront operations described at C.5 below shall be selected no less than 30 days post award to facilitate and ensure proper connections are available to support the Contractor’s end-point equipment prior to contract execution.

C.3.3 Implementation Reports shall be submitted in accordance with the milestones and timeframes established in the solicitation.

C.4 PERFORMANCE REVIEW BOARDS

Performance Review Boards (PRBs) will be held at the rate and in accordance with the procedures and responsibilities specified in the solicitation, with at least two PRBs being conducted during the transition & implementation period.

C.5 WR-ALC INDUSTRIAL CUSTOMER SUPPORT

C.5.1 The Contractor shall plan and pre-position appropriate levels of their inventory at the WR-ALC storefront in order to support the industrial customer performance requirements identified herein. The Contractor will operate said storefront facility in the 200 square feet of

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government provided space in the C-130 Propeller Shop at the following location:

455 First Street Bldg 140, Gate 125-37B, Room #61

Robins AFB, GA 31098-1624

C.5.2 The space will include lockable (to secure contractor-owned inventory) metal cabinets aligned in two rows with cabinets facing one another. Of the remaining 658 square feet (minus the Contractor’s 200 square feet), the awardee of the unrestricted portion of the solicitation will be provided 370 square feet, DLA will retain 198 square feet, and the remaining 90 square feet will be common area.

C.5.3 The Contractor will operate its storefront facility during the WR-ALC Prop Shop hours of operation, which are: Monday through Friday, 0700-1545 Eastern Daylight Time (EDT)/Eastern Standard Time (EST).

C.5.3.1 As mission requirements dictate, the Prop Shop may work a Saturday shift. The decision for a Saturday shift is made no later than 1200 (EDT/EST) the Thursday prior to the Saturday shift. The Contractor may be required to man its store front during this Saturday shift and if so required, shall support customer demands in accordance with the performance requirements identified herein.

C.5.4 Inspection & Acceptance Destination inspection and acceptance applies to all delivery orders for all NSNs in the Schedule B Attachment 1 for WR-ALC industrial customer support.

C.5.5 Packaging & Marking Commercial packaging in accordance with ASTM D-3951 applies. The Contractor shall comply with all applicable labeling, marking and documentation requirements specified by MIL-STD-129P, Standard Practice for Military Marking.

C.5.6 FOB Point & Transportation FOB Destination applies to all delivery orders for all NSNs in the Schedule B Attachment 1 for WR-ALC industrial customer support.

C.5.7 Performance Standards The industrial customer at WR-ALC requires availability on demand (AoD) and Backorder Age (BA) performance metrics, detailed below. Delivery order creation and issuance, as used in this section, is defined as the date of the EDI 997 Functional Acknowledgement. The metric “clock” is based on the hours of operation at C.5.3 above.

Industrial Customer Performance Metric

Minimum Performance Standard

AOD (within 24 hours after receipt) 96% AOD (within 48 hours after receipt) 98% BA < 30 Days 70% BA < 60 Days 50% BA < 90 Days 25%

C.5.7.1 AoD calculates materiel available in accordance with the timeframes established

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at the table above in a given month of performance.

C.5.7.1.1 AoD is measured from the time of customer demand/Contractor receipt of order and starts with the Contractor’s EDI 997 functional acknowledgement and is completed upon customer materiel receipt.

C.5.7.1.2 AoD is reported as a percent of orders receipted within 24 hours and within 48 hours.

C.5.7.2 BA tracks those orders not filled within the 48-hour AoD requirements at C.5.7.1 above and calculates age of backorders at delivery.

C.5.7.2.1 The BA timeframe includes order creation/receipt of a delivery order (via EDI

997) to Contractor delivery and receipt by the DLA store front representative.

C.5.7.2.2 BA is measured by order as volume of orders not created/closed within 2 days and includes orders created/still open by the following age buckets: 3-29 days, 30-59 days, 60-89 days, and 90+ days.

C.5.7.3 Reporting The government will provide the Contractor the monthly metric performance report within 15 days from the end of the preceding month. The Contractor is expected to submit all known challenges to calculations on individual delivery orders utilized in the metrics, via email to the Contracting Officer within 10 days. The challenge shall include the rationale and all supporting evidence. The Contracting Officer shall make the final decision to the challenge request within 5 days after receipt to include any final challenges submitted by the Contractor no more than 15 days after the conclusion of the performance period. If the Contractor does not submit a timely challenge, then no adjustment will be made to the monthly or annual/performance period performance metrics.

C.5.7.3.1 Orders that may be excluded from metric reporting may include government-caused delays as the exclusions would be substantiated via the Contractor challenge process.

C.5.7.4 Metric & Recovery Plan If the Contractor fails to meet performance for a particular delivery order(s) and within 5 days after receiving written notice of such from the Contracting Officer, the Contractor shall submit a get well plan for the applicable NSN(s).

The plan will identify the cause(s) of the failure and the specific steps that have been and will be taken to immediately correct the failure. If the Contracting Officer determines the plan is inadequate to address the cause of the failure, the Contracting Officer may require additional remedy action by the Contractor, at no cost to the government.

C.5.7.5 Delivery shall be as specified, except for the Federal holidays indicated below and Warner Robins Energy Days or other base closures. When a scheduled delivery requirement falls on one of these days, delivery will take place on the next business day (in accordance with the hours of operation at C.5.3). If the holiday falls on a Saturday, the holiday is celebrated the preceding Friday. If the holiday falls on a Sunday, the holiday is celebrated the following Monday.

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New Year’s Day Labor Day Martin Luther King’s Birthday Columbus Day Presidents’ Day Veterans Day Memorial Day Thanksgiving Day Independence Day Christmas Day

The Contractor will be notified no less than five business days in advance of an Energy Day.

C.5.8 Customer Service Representative The Contractor’s Customer Service Representative (CSR) will be located on-site at WR-ALC to communicate with DLA Aviation forward presence personnel and the AF customer regarding all aspects of Contractor support at the storefront.

C.6 WORLDWIDE OPERATIONAL CUSTOMER SUPPORT

C.6.1 The Contractor shall perform the necessary supply chain management functions to support worldwide (i.e. within Continental United States (CONUS) and Outside Continental United States (OCONUS)) operational customers within the requirements identified herein.

C.6.2 Inspection & Acceptance

C.6.2.1 Destination inspection and acceptance applies to the majority of NSNs in the Schedule B Attachment 1 “WW & FMS” (see column “I & A” for “D” designator).

C.6.2.2 First lot origin inspection and acceptance applies to the NSNs in the Schedule B Attachment 1 “WW & FMS” (see column “I & A for “O” designator). Because these origin-inspection-coded items will be procured outside of a government contract, DCMA personnel are unable to assess these items during the applicable manufacture, assembly, or final inspection at the supplier’s location or when inspected by the Contractor upon receipt. As a result, the following requirements, at a minimum, will apply to each first lot shipment of applicable materiel:

C.6.2.2.1 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 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.6.2.2.2 Subsequent delivery orders for material from that inspected lot will issue as destination inspection and acceptance. Once that lot is depleted, another first lot origin inspection will occur.

C.6.3 Packaging & Marking

C.6.3.1 Packaging shall be commercial pack in accordance with ASTM D-3951. The Contractor shall comply with all applicable labeling, marking and documentation

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requirements specified by MIL-STD-129P, Standard Practice for Military Marking. Military Shipping Labels (MSLs) shall be generated from the Vendor Shipment Module (VSM), detailed at C.6.2.4 below.

C.6.3.2 Radio Frequency Identification (RFID) requirements shall apply consistent to the requirements set forth at DFARS 252.211-7006.

C.6.4 FOB Point & Transportation FOB Origin applies to all delivery orders for all NSNs in the Schedule B Attachment 1 for WW operational customer support. The Contractor shall utilize VSM (https://dpms.ddc.dla.mil) or any follow-on government system/process for all operational customer delivery orders.

C.6.5 Delivery The Contractor shall deliver WW operational customer requirements within the On-Time Delivery (OTD) timeframes established at the table below.

Delivery Order Category (CAT)^ Codes Timeframe from Operational

Customer Order Receipt to Contractor Delivery^^

CAT 1

Issue Priority Designator (IPD) 1-3

1 Days^^

CAT 2

IPD 4-8

CAT 3

IPD 9-15

3 Days^^

^Note, the EDI 850 Transaction will pass the Priority Code and Delivery Days, which shall identify the corresponding CAT codes reflected in the table above

^^Contractor delivery is defined at C.6.5.1 below

C.6.5.1 The Contractor has successfully filled an operational demand and met OTD under the contract, when after receipt of a delivery order, the Contractor has submitted the shipment through VSM (to the point where pick-up is scheduled) and delivered the material to the shipment pick-up location, within the delivery timeframes established at the table above.

C.6.5.2 Requisitions and subsequent delivery orders operate on a 24-hour basis. The Contractor’s date of receipt as returned in the EDI 997 shall constitute Day 0 under the OTD metric.

C.6.5.3 OTD performance is measured monthly, via a calendar month and shall track average OTD performance by: NSN, CAT and total (i.e. all delivery orders) calendar month performance. OTD is calculated by dividing the number of applicable (i.e. NSN, CAT or total) delivery orders delivered on-time (as defined at C.6.5.1 above) divided by the total number of applicable (i.e. NSN, CAT or total) delivery orders received.

C.6.5.4 Partial deliveries shall not constitute compliance with the delivery requirement or performance metric identified; however, partial deliveries are required when a partial quantity is available for immediate supply and the order is in backorder status.

https://dpms.ddc.dla.mil/

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C.6.5.5 Canceled delivery orders shall be removed from the monthly metric calculation of OTD performance.

C.6.5.6 Backorder Age (BA) shall track those orders not filled within the delivery terms/OTD requirements at C.6.5 above and calculates age of backorders at delivery.

C.6.5.6.1 The BA timeframe includes order creation/receipt of a delivery order (via EDI

997) to Contractor delivery and receipt as defined at C.6.5.1 above.

C.6.5.6.2 BA is measured by order as volume of orders not created/closed within 1 or 3 days (depending on the order CAT) and includes orders created/still open by the following age buckets: 2/4-29 days, 30-59 days, 60-89 days, and 90+ days.

C.6.5.7 Reporting The reporting requirements at C.5.7.3 shall apply.

C.6.5.7.1 Orders may be excluded from metric reporting and may include government-caused delays (e.g. first lot inspections, VSM delays or system downtime) as the exclusions would be substantiated via the Contractor challenge process.

C.6.5.8 Failure to Metric & Recovery Plan The requirements at C.5.7.4 shall apply.

C.6.5.9 Delivery shall be as specified, except for the Federal holidays listed at C.5.7.5 above. When a scheduled delivery requirement falls on one of these days, delivery will take place on the next business day. If the holiday falls on a Saturday, the holiday is celebrated the preceding Friday. If the holiday falls on a Sunday, the holiday is celebrated the following Monday.

C.6.6 Customer Service The Contractor shall provide customer service support to operational customers through a 1-800 number and a central email address to assist customers with varying customer service issues in an expedient manner and minimally, be available during normal business hours (i.e. Monday through Friday, 0730-1700 EDT/EST).

C.7 FOREIGN MILITARY SALES CUSTOMER SUPPORT

C.7.1 Inspection & Acceptance Origin inspection and acceptance applies to all delivery orders for all NSNs in the Schedule B Attachment 1 for FMS customer support.

C.7.2 Packaging & Marking FMS shipments shall be marked as prescribed by MIL-STD- 129P and the Security Assistant Management Manual (SAMM), DoD 5105.38-M.

C.7.3 FOB Point & Transportation FOB Origin applies to all delivery orders for all NSNs in the Schedule B Attachment 1 for FMS customer support. Transportation instructions will be included within delivery orders or may be obtained in accordance with DLAD 52.247-9034.

C.7.4 Delivery The Contractor shall deliver FMS customer requirements within the OTD timeframes established at the table below.

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Delivery Order CAT^ Codes Timeframe from FMS Customer Order Receipt to

Contractor Delivery^^

CAT 1

Issue Priority Designator (IPD) 1-3

CAT 2

IPD 4-8

CAT 3

IPD 9-15

3 Days^^

^Note, the EDI 850 Transaction will pass the Priority Code and Delivery Days, which shall identify the corresponding CAT codes reflected in the table above ^^Contractor delivery/tender is defined at C.7.4.1 below

C.7.4.1 The Contractor has successfully filled an FMS demand and achieved OTD under the contract, when after receipt of a delivery order; the Contractor has delivered/tendered the materiel for source inspection, within the delivery requirement established at the table above. Delivered/Tendered for source inspection is defined as the Contractor contacting the DCMA Quality Assurance Representative for inspection and having documented evidence of such contact, accurately completing the DD250 and having the materiel available for inspection and ready for shipment.

C.7.4.2 Requisitions and subsequent delivery orders operate on a 24-hour basis. The Contractor’s date of receipt as returned in the EDI 997 shall constitute Day 0 under the OTD metric.

C.7.4.3 OTD performance is measured monthly, via a calendar month and shall track average OTD performance by: NSN, CAT and total (i.e. all delivery orders) calendar month performance. OTD is calculated by dividing the number of applicable (i.e. NSN, CAT or total) delivery orders delivered on-time (as defined at C.7.4.1 above) divided by the total number of applicable (i.e. NSN, CAT or total) delivery orders received.

C.7.4.4 The partial delivery requirements at C.6.5.4 shall apply.

C.7.4.5 Canceled delivery orders shall be removed from the monthly metric calculation of OTD performance.

C.7.4.6 Backorder Age (BA) shall track those orders not filled within the delivery terms/OTD requirements at C.7.4 above and calculates age of backorders at delivery.

C.7.4.6.1 The BA timeframe includes order creation/receipt of a delivery order (via EDI

997) to Contractor delivery and receipt as defined at C.7.4.1 above.

C.7.4.6.2 BA is measured by order as volume of orders not created/closed within 1 or 3 days (depending on the order CAT) and includes orders created/still open by the following age buckets: 2/4-29 days, 30-59 days, 60-89 days, and 90+ days.

C.7.4.7 Reporting The Contractor shall provide the government the monthly metric performance report within 15 days from the end of the preceding month. The government may request supporting information to the calculations on individual delivery orders within

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10 days. If no supporting data is requested, the monthly or annual performance data shall remain unchanged.

C.7.4.7.1 Orders that may be excluded from metric reporting may include government-caused delays as exclusions would be substantiated via the Contractor challenge process.

C.7.5 Customer Service FMS customers shall be supported via the same customer support structure at C.6.6.

C.8 INCENTIVES & DISINCENTIVES

C.8.1 The incentives and disincentives as shown in this section are measured and applied via contract performance periods as defined at the table below:

Performance Period Measured Timeframe of Contractor Performance

Performance Period 1 Day 181 after award through 30 Jun 2015 Performance Period 2 01 Jul 2015 through 30 Jun 2016 Performance Period 3 01 Jul 2016 through 30 Jun 2017 Performance Period 4 01 Jul 2017 through 30 Jun 2018

C.8.2 Performance to Industrial and Operational customers shall be calculated separately at the conclusion of each performance period and be assessed against the respective delivery measurements at sections C.5.7 and C.6.5 above. FMS performance is not subject to incentive or disincentives. However, FMS orders shall be supported in accordance with the delivery requirements specified at C.7.4 above.

C.8.2.1 Any incentive or disincentive earned is applied to the WR-ALC and/or Operational & FMS unit prices for the following performance period.

C.8.2.2 NSNs added to the contract during a performance period will be included in the incentive and disincentive calculation, once a full production lead time has passed or earlier, as may be negotiated by the parties. The date when the orders begin to be included shall be specified in the modification adding the items.

C.8.3 The following incentive or disincentive point tables will be utilized for industrial customer performance at WR-ALC.

Point Table 1 Point Table 2 Availability on Demand (within 24 hours)

Points Availability on Demand (within 48 hours)

Points

>98.0% 10 >99.5% 10 96.5-97.9% 5 98.5-99.4% 5 96.0-96.4% 0 98.0-98.4% 0 94.0-95.9% -5 96.0-97.9% -5 92.0-93.9% -10 94.0-95.9% -10 <92.0% -20 <94% -20

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*AOD (w/in 24) is rounded to the nearest tenth *AOD (w/in 48) is rounded to the nearest tenth

C.8.3.1 The points earned in each industrial performance AoD metric category above will be summed and aligned to one of the incentive or disincentive percent figures at the table below. The percent increase or decrease shall be applied to the Schedule B Attachment 1 “WR-ALC” unit price.

Industrial Performance

Points Incentive (+) or Disincentive (-)

>20 4.5% 15 to 19 3% 6 to 14 1.5% 0 to 5 0

-1 to -10 -2% -11 to -30 -4%

<-31 -6%

C.8.3.1.1 Any incentive earned shall be void if the BA is >180 days for 15% (or more) of orders during the performance period.

C.8.3.1.2 Any incentive earned may be reduced at the discretion of the Contracting Officer for quality deficiency reports for items delivered under the contract during the reporting period. The Contracting Officer will assess the frequency of quality deficiencies, the criticality of the parts with deficiencies, the supply status, and the impact of the deficiency on the customer and mission.

C.8.4 The Disincentives at the tables below shall apply to operational customer OTD and BA performance.

OTD Performance* OTD Disincentive 89.0% - 89.9% -1% 88.0% - 88.9% -2% 87.0% - 87.9% -3% 86.0% - 86.9% -4% Below 85.9% -5%

*OTD performance is rounded to the nearest tenth

Backorder Age BA Disincentive 70% > 30 Days -1% 50% > 60 Days -2% 25% > 90 Days -3% 15% > 180 Days -5%

C.8.4.1 The BA disincentive is an additional disincentive based on age of the backorders failing to meet 90% OTD. Only a single BA disincentive may apply. If BA performance results in multiple BA disincentives, the greater of the disincentives shall be applied.

C.8.4.2 The percent decrease(s) shall be applied to the Schedule B Attachment 1 “WW &

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FMS” unit price.

C.8.5 Incentives or Disincentives are not compounded each performance period.

C.9 SURGE & SUSTAINMENT

C.9.1 The awardee’s S&S proposal, to include the Capability Assessment Plan is incorporated into the subject award by reference.

C.9.2 S&S NSNs and pricing are identified at the Schedule B Attachment 1, tab “S&S.”

C.10 Priced on Demand Items

C.10.1 Priced on Demand Items (PODIs) fall in two Categories: (A) NSNs that do not have projected demands during the base period of the Hub & Blade contract; and (B) items awarded to Surplus suppliers where available acceptable surplus is less than the projected quantities over the life of this acquisition. Category A PODIs are incorporated at Attachment

2. A single Category B PODI has been awarded to a surplus contractor, identified at Attachment 2.

C.10.2 Unit Prices for each Category A PODI will be negotiated once DLA receives a customer requisition for the item. Unit Prices for the Category B PODI will be negotiated after requisitioned quantities exceed the awarded surplus material. The process is as follows:

C.10.2.1 Upon receipt of a requisition, DLA will notify the Contractor of the NSN and quantity. Projected future demand quantity, if known, will also be provided.

C.10.2.2 The Contractor will provide a price quote within 30-days after receiving the notification of the demand. The Contractor shall provide data other than cost or price data equivalent to the level and detail of data required and submitted at the time of the solicitation proposal submission. Prices received for the Category B PODI shall not exceed the final proposal revision price. The service fee proposed shall be consistent with the service fee applied to the NSNs awarded at the Schedule B Attachment 1. The Contractor shall notify the government within two (2) business days if a quote cannot be submitted within the 30-day timeframe. On a case-by-case basis, the Contracting Officer may allow the Contractor an extension to the 30-day quoting period.

C.10.2.3 The Contractor will provide with its price quote a proposed delivery schedule to satisfy the requisition. The negotiated delivery will be considered the full production lead-time (PLT). Subsequent orders for the item will be subject to the performance and delivery requirements for industrial customers, operational customers and FMS customers at sections C.5.7, C.6.5 and C.7.4, respectively.

C.10.2.4 The Contractor and DLA will conclude negotiations for the unit price and PLT within 15 business days of the government’s receipt of the Contractor quote. If negotiations are successful, the item will be deleted from Attachment 2 and added with its price and PLT to Attachment 1.

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C.10.2.5 The government may solicit and award the requirement outside the contract: (a) if the Contractor fails to submit a quotation in accordance with section C.10.2.2 or (b) if negotiations are unsuccessful. If the requirement is satisfied outside the Hub & Blade contract herein, the government will delete the item unilaterally from the contract.

C.11 QUALITY CONTROL & QUALITY MANAGEMENT SYSTEM

C.11.1 The Contractor shall ensure the material conforms to the requirements at the Purchase Order Text (POT), incorporated by reference to solicitation Attachment 5B.

C.11.2 The Contractor shall maintain a quality system that meets the requirements of the most recent AS9120.

C.12 OBSOLESCENCE MANAGEMENT

The Contractor is responsible for managing obsolescence of the population of items throughout the life of the contract by providing the timely notice and obsolescence briefs identified in the solicitation.

C.13 CONFIGURATION CONTROL

The government will maintain configuration control and change authority for all modifications or changes regarding the population of items subject to award. The Engineering Support Activity (ESA) for the items may vary and thus, the Contractor shall initiate configuration control issues, to include any deviation requests (DI-CMAN-80640C-Request for Deviation), in writing, to the Contracting Officer.

C.14 ADDITION/DELETION OF ITEMS

C.14.1 New items may be added to the contract through bilateral modification with negotiated prices. New items may include replacement items due to obsolescence or newly-assigned/identified items subject to the Hub & Blade Program scope. The government will initiate the add-on process by submission of a list of items considered for addition (to the contract) to the Contractor. Within 45 days of the government’s submission of add-on candidates, the Contractor shall provide an informal breakdown of all costs proposed, consistent with the requirement for pricing items at the initial contract award. Depending on the requirement for inclusion of additional items, the Contractor may be required to submit certified cost or pricing data in accordance with FAR 15.403.

C.14.2 The government may unilaterally delete items that were available from only one manufacturer at the time of award if an alternate source becomes available during the contract term. The government will provide a 30 day advance notice to the Contractor prior to deleting said items, but may establish a time period in excess of said 30 days for the Contractor to minimize or deplete remaining inventory through standard delivery order support. The government may also unilaterally delete PODIs pursuant to C.10.2.5. Item deletions for any other reason will be made through bilateral agreement.

OPTIONAL FORM 336 (4-86)

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C.15 REQUISITION PROCESSING

C.15.1 Order placement shall be by EDI transmissions in accordance with ANSI X12 Standards through a registered Value Added Network (VAN). An EDI transmission from the Contracting Officer constitutes a binding order; the Contractor is required to commence performance upon receipt of a binding order.

C.15.2 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.15.3 The Contractor is required to use (or upgrade to) the latest EDI transactions, as they become available.

C.16 CONTRACTOR REPORTING REQUIREMENTS LIST

Following is a list of the Contractor reporting requirements for submission to the Contracting Officer.

Report Name Report Definition Report Frequency (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.3.3 and

RFP C.3.4

2. Contractor Personnel

Report identifying name, address, date of birth and Social Security Number of Contractor personnel accessing WR-ALC in performance of contract and updated, when personnel information changes or new personnel are added to WR-ALC schedule of support

No more than 60 days after award and as needed throughout contract term

RFP

C.4.1.1.1.1

3. FMS Performance Report identifying Contractor performance to terms at C.7.4 and its subparts

Monthly - no later than 15 days from the reporting period’s end

C.7.4.7

4. Contract Closeout Inventory

Report shall identify the Contractor’s on-hand inventory balances and due-ins by NSN

Monthly, on the 1st of the month beginning 12 months prior to contract expiration

C.17

5. Contract Closeout Materiel Forecast

Materiel forecast data by NSN, indicating anticipated quantity demands, by month, for the next 12 months

Monthly, on the 1st of each month beginning 90 days prior to contract close-out

C.17.2

6. Contract Supplier Report

Report shall identify the NSN, part number, supplier name, Contractor and Governmental Entity (CAGE) code (if applicable), quantity procured, and date of purchase for all materiel purchases during the contract term

Once, submitted no less than 90 days prior to contract expiration

C.17.4

OPTIONAL FORM 336 (4-86)

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FAR (48 CFR) 53.110

C.16.1 Report Format All reports shall contain the minimum elements identified at C.16 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.16.2 Additional reporting elements may be required by the Contracting Officer and shall be provided at no additional cost to the Government.

C.17 CONTRACT CLOSEOUT & EXIT

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 twelve (12) months prior to the final expiration of the contract. Beginning on the 1st of each month during contract close-out, the Contractor shall provide an inventory listing to include on-hand assets and due-ins, by NSN.

C.17.1 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 Hub & Blade contract.

C.17.2 DLA will consider the procurement and administrative lead times 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 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 1st of each month during closeout, along with inventory levels and due-ins as requested at C.16 above.

C.17.3 Materiel not selected for purchase by the government and not attrited by the Contractor under normal contract support during the closeout period may be sold in the commercial marketplace and/or proposed for sale directly to any follow-on contractor in accordance with the Contractor’s independent business decisions.

C.17.4 In addition to the forecasting data, no less than 90 days prior to contract expiration, the Contractor shall provide a materiel sourcing report for all procurements completed during the contract term. The report shall identify the NSN, part number, supplier name, Commercial and Governmental Entity (CAGE) code (if applicable), quantity procured, and date of purchase.

OPTIONAL FORM 336 (4-86)

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FAR (48 CFR) 53.110

SECTION I

CONTRACT CLAUSES

The clauses and provisions at Section I of solicitation SPM4A2-13-R-0002 are incorporated by reference.

The following clauses were added via Amendment 0005 (the “B” superscript designates the clause applies to both customer schedules of support, WR-ALC and WW & FMS):

DLAD 52.211-9003B CONDITIONS FOR EVALUATION OF OFFERS OF GOVERNMENT SURPLUS

MATERIAL (AUG 2008)

FAR 52.215-16B FACILITIES CAPITAL COST OF MONEY (JUN 2003)

DFARS 252.225-7008B RESTRICTION ON ACQUISITION OF SPECIALITY METALS (MAR 2013)

FAR 52.246-23B LIMITATION OF LIABILITY (FEB 1997)

FAR 52.246-25B LIMITATION OF LIABILITY – SERVICES (FEB 1997)

DLAD 52.246-9095B QUALITY ASSURANCE PROVISION FOR APPROVED GOVERNMENT

SURPLUS MATERIAL AND QUALITY ASSURANCE PROVISION (NOV 2012)

OPTIONAL FORM 336 (4-86)

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FAR (48 CFR) 53.110

SECTION J

LIST OF ATTACHMENTS

Attachment 1 Schedule B Contract Pricing Attachment 2 Priced on Demand Items