SPRTA110R0426.pdf

1447-101 STANDARD FORM 1447 (5-88)

Prescribed by GSA FAR (48 CFR 53.215-1(g))

6.SOLICITATION ISSUE DATE

31 MAR 2011

8. THIS ACQUISITION IS

UNRESTRICTED LABOR SURPLUS AREA CONCERNS

SET ASIDE: % FOR COMBINED SMALL BUSINESS &

LABOR SURPLUS AREA CONCERNS

SMALL BUSINESS Oth Than Full & Open

NAICS CODE: 336412 SIZE STANDARD: 1,000

DATE SIGNED

28. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER)

26. AWARD OF CONTRACT: YOUR OFFER ON SOLICITATION NUMBER

SHOWN IN BLOCK 4 INCLUDING ANY ADDITIONS OR CHANGES WHICH

ARE SET FORTH HEREIN, IS ACCEPTED AS TO ITEMS:

Routine Subject to the terms and conditions stated herein, the Contractor agrees to hold its offered prices firm for 150 days.

Other than full and open competition authority: FAR 6.302-1

The intent of this solicitation is to set up a long term strategic contract with one contractor. The Government either does not have the Rights to the data/drawings needed or Manufacturing Qualification Requirements (MQR) exist and no other source is qualified to compete in the new production of these parts.

SEE LINE ITEM SCHEDULE

22.

AMOUNT

16. AUTHORITY FOR USING OTHER THAN 10 USC 2304 41 USC 253

FULL AND OPEN COMPETITION (c) (1 ) (c) ( )

DATE SIGNED

27. SIGNATURE OF OFFEROR/CONTRACTOR

20.

UNIT

21.

UNIT PRICE

19.

QUANTITY

13. CONTRACTOR OFFEROR CODE FACILITY CODE

11. IF OFFER IS ACCEPTED BY THE GOVERNMENT WITHIN * ___ CALENDAR DAYS (60 CALENDAR

DAYS UNLESS OFFEROR INSERTS A DIFFERENT PERIOD) FROM THE DATE SET FORTH IN BLK 9

ABOVE, THE CONTRACTOR AGREES TO HOLD ITS OFFERED PRICES FIRM FOR THE ITEMS

SOLICITED HEREIN AND TO ACCEPT ANY RESULTING CONTRACT SUBJECT TO THE TERMS AND

CONDITIONS STATED HEREIN. *150

RATING

DO: A1

3. AWARD/EFFECTIVE DATE

SPRTA1

2. CONTRACT NO.

D

CHECK IF REMITTANCE IS DIFFERENT

AND PUT SUCH ADDRESS IN OFFER

17.

ITEM NO.

12. ADMINISTERED BY CODE

Total

SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK: 14 EFT:T

SCD:B

NAME AND TITLE OF SIGNER (TYPE OR PRINT) NAME OF CONTRACTING OFFICER

24. AWARD AMOUNT (FOR GOVT USE ONLY)

23. ACCOUNTING AND APPROPRIATION DATA

SEE SCHEDULE

4. SOLICITATION NUMBER

SPRTA1-10-R-0426

5. SOLICITATION TYPE

SEALED BIDS NEGOTIATED

(IFB) (RFP)

15. PROMPT PAY DISCOUNT

25. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN 1

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND DELIVER ALL ITEMS SETFORTH

OR OTHERWISE IDENTIFIED ABOVE AND ON ANY CONTINUATION SHEETS SUBJECT

THE TERMS AND CONDITIONS SPECIFIED HEREIN.

10. ITEMS TO BE PURCHASED (BRIEF DESCRIPTION)

SUPPLIES SERVICES Aircraft Engine and Engine Parts Manufacturing (including Research and Development)

9.

LATE OFFERS ARE SUBJECT TO LATE PROPOSAL PROVISIONS INCORPORATED HEREIN. ALL OFFERS ARE SUBJECT TO SUCH PROVISIONS, REPRESENTATIONS, CERTIFICATIONS AND SPECIFICATIONS AS ARE ATTACHED OR INCORPORATED BY REFERENCE.

SOLICITATION: SEALED OFFERS WILL BE RECEIVED AT THE ISSUING OFFICE UNTIL

6-MAY-2010 3:00PM

X

18.

SCHEDULE OF SUPPLIES/SERVICES

14. PAYMENT WILL BE MADE BY CODE

(SEE ESP CLAUSE 252.232-7003.)

X

X

7. ISSUED BY CODE

DEFENSE LOGISTICS AGENCY, DLA OKLAHOMA CITY

DLR PROCUREMENT OPS DSCR-ZBA

3001 STAFF DRIVE

TINKER AFB OK 73145-3070

BUYER: Alan Welch/DSCR-ZBB alan.welch@tinker.af.mil Phone: (405) 734- 8109 Fax: (405) 734-8106 No Collect Calls

X

1. THIS CONTRACT IS A RATED ORDER

UNDER DPAS (15 CFR 350)SOLICITATION/CONTRACT

BIDDER/OFFEROR TO COMPLETE BLOCKS 11, 13, 15, 21, 22, & 27.

L

SF 1447 (5-88) BACK

NO RESPONSE FOR THE REASONS CHECKED

TYPE OR PRINT NAME AND TITLE OF SIGNER

SIGNATURENAME AND ADDRESS OF FIRM (Include Zip Code)

WE DO NOT DESIRE TO BE RETAINED ON THE MAILING LIST FOR FUTURE PROCUREMENT OF THE TYPE OF

ITEMS INVOLVED

WE DO

OTHER (Specify)

CANNOT COMPLY WITH SPECIFICATIONS

CANNOT COMPLY WITH SPECIFICATIONS CANNOT MEET DELIVERY REQUIREMENT

FOLD

FOLD

SOLICITATION NO. SPRTA110R0426

DUE: 6 MAY 2010 3:00 PM

FROM: AFFIX

STAMP

HERE

TO:

ATTN: Alan Welch/DSCR-ZBB

DEFENSE LOGISTICS AGENCY, DLA OKLAHOMA CITY

DLR PROCUREMENT OPS DSCR-ZBA

3001 STAFF DRIVE

TINKER AFB OK 73145-3070

Request for Proposal SPRTA1-10-R-0426

PART I - THE SCHEDULE

SECTION B

SUPPLIES OR SERVICES AND PRICES/COSTS

Preamble Notes:

1. This solicitation is considered a joint opportunity for world-wide Defense Logistics Agency (DLA) direct supply (to stock) of DLA consumables, United States Air Force (USAF) and Navy Depot Level Repairables (DLRs), and USAF consumables. All items are sole source to Pratt & Whitney (P&W) Military Engines Division.

2. The resulting supply contract will be a fixed price, with price redetermination, multiple year requirements contract (but with a minimal number of fixed price incentive delivery orders for certain selected items). The contract will have a base period of five years and include one five-year option period for potential contract duration of 10 years. Orders may be placed at anytime during an active period of the contract.

3. Decentralized ordering is authorized. Any DLA Inventory Control Point (ICP) or Military Service Activity (MSA) listed below may issue delivery orders to the Contractor for the supplies listed in the Master Price List (MPL) incorporated into the awarded contract. The ordering activities are:

DLA Aviation DLA Land and Maritime DLA Troop Support 448th Supply Chain Management Group, Air Force Global Logistics Support Center (GLSC) Naval Inventory Control Point, Philadelphia, PA (NAVICP) Naval Inventory Control Point, Mechanicsburg, PA (NAVICP) Aviation and Missile Life Cycle Management Command, Redstone Arsenal Huntsville, AL (AMCOM LCMC)

DLA Aviation at Oklahoma City will administer the basic contract; however, each DLA Activity or Service Activity will issue and administer its own delivery orders. Each Center or Agency will assign delivery orders using their respective call order number per Defense Procurement and Acquisition Policy (DPAP):

http://www.acq.osd.mil/dpap/dars/order_code_assignments.html and be responsible for contract administration and closeout of their respective orders. Ordering authority for any additional DLA or MSA may be added by bilateral modification to this contract.

4. Offerors shall identify individual(s) authorized to represent the offeror’s position and commit the offeror in all exchanges between the Government and offeror by including the following information:

NAME:

TITLE:

PHONE:

E-MAIL:

5. Schedule of Supplies and Price: The schedule of supplies can be found in the attached candidate listings, attachments 1 and 2. The data is in Excel spreadsheet format and represents the potential scope of this initiative. The total population of NSNs to be covered by this initiative is estimated at 4,973 with 4,778 identified as DLA consumables, 184 DLRs, and 11 USAF consumables (pending transfer to DLA). The attached candidate listings are for initial contract award and are not to be considered all inclusive for this contract. Items will be added and or removed throughout the life of this contract per the “Add and Delete” clause specified herein.

6. Pricing for the F100 and Other Mature Engines (OME) engine parts under this contract will be in accordance with the applicable Memorandum of Understandings (MOU). The current MOUs with Pratt & Whitney incorporated by reference are “Memorandum of Understanding F100 Negotiated Price List, November 6, 2008, Rev. 101308” and “Memorandum of Understanding Other Mature Engines Negotiated Price List, July 30, 2008, Rev. 090808”. These MOUs pertain to the current F100 and OME Negotiated Price Lists (NPLs) issued, from which NSNs are priced and incorporated into this long term contract. The NPLs shall be revised on an annual basis or at the time price agreement is reached. The pricing methodologies and rates applicable to these MOUs will be negotiated as a part of this requirement and incorporated by reference; therefore, new MOUs are to be expected.

7. Funding will be cited on each delivery order.

8. Required delivery is the production lead-time (PLT) shown in the NPLs for all items on the candidate listings, attachments 1 and 2. The actual delivery time is calculated starting with the date of issuance of a delivery order and ending with the date of acceptance by the Government.

Multiple orders for the same item may occur and will stipulate a delivery date that adheres to the PLT. Additionally, orders for the same item are to be delivered in the order in which they are received by the Contractor unless otherwise negotiated. Delivery of a current order when an existing order for the same item with a past delivery date is open, is not allowed unless approved by the contracting officer from the office where the order was generated.

9. The following applies to all items identified herein:

CAGE: 52661

Inspection and acceptance: Origin FOB: Origin Packaging, Markings, and Transportation Appropriations: To be cited for each item in each delivery order Shipping: Orders may be placed for deliveries to stock or FMS customers as cited in each delivery order Comprehensive Engine Management System (CEMS) Tracking: Applicable CDRLs to be cited in delivery orders if applicable

10. Clauses and provisions in this solicitation will apply to all requirements unless otherwise specified in this document.

11. Performance metrics along with incentive or disincentive percentages, outlined in Section H, Special Contract Requirements of this document, are intended to be a topic of discussions and negotiations. Accordingly, offerors shall propose percentages for the metrics. The Government reserves the right to continue or remove Air Force DLRs from the metrics identified in paragraph 2.1, Inventory Sustainment Metric, at the end of two years from the date of award of this effort.

12. Surge and Sustainment (S&S) NSNs and quantities are identified in Appendix 1 of this document.

The S&S clauses and provisions are cited in Sections I and L. The Government is not obligated to order any of the S&S quantities and the Contractor should not ship such quantities without receipt of an order clearly designated for S&S requirements.

13. The following is the list of applicable North American Industry Classification System (NAICS) industries relevant to this solicitation (page 1, blocks 8 and 10 of this solicitation lists the predominant NAICS for this requirement):

331421 Copper Rolling, Drawing and Extruding 332116 Metal Stamping 332212 Hand and Edge Tool Manufacturing 332322 Sheet Metal Work Manufacturing

332510 Hardware Manufacturing 332612 Spring (Light Gauge) Manufacturing 332618 Other Fabricated Wire Product Manufacturing 332722 Bolt, Nut, Screw, Rivet and Washer Manufacturing 332919 Other Metal Valve and Pipe Fitting Manufacturing 332991 Ball and Roller Bearing Manufacturing 332999 All Other Miscellaneous Fabricated Metal Product Manufacturing 333314 Optical Instrument and Lens Manufacturing 333412 Industrial and Commercial Fan and Blower Manufacturing 333514 Special Die and Tool, Die Set, Jig and Fixture Manufacturing 333515 Cutting Tool and Machine Tool Accessory Manufacturing 333611 Turbine and Turbine Generator Set Unit Manufacturing 333612 Speed Changer, Industrial High-Speed Drive and Gear Manufacturing 333613 Mechanical Power Transmission Equipment Manufacturing 333618 Other Engine Equipment Manufacturing 333911 Pump and Pumping Equipment Manufacturing 333991 Power-Driven Hand Tool Manufacturing 333992 Welding and Soldering Equipment Manufacturing 334412 Bare Printed Circuit Board Manufacturing 334419 Other Electronic Component Manufacturing 334511 Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and

Instrument Manufacturing 334513 Measuring, Displaying, and Controlling Industrial Process Variables 334514 Totalizing Fluid Meter and Counting Device Manufacturing 334515 Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals 335313 Switchgear and Switchboard Apparatus Manufacturing 335931 Current-Carrying Wiring Device Manufacturing 335932 Noncurrent-Carrying Wiring Device Manufacturing 336212 Truck Trailer Manufacturing 336350 Motor Vehicle Transmission and Power Train Parts Manufacturing 336413 Other Aircraft Part and Auxiliary Equipment Manufacturing 339950 Sign Manufacturing 339991 Gasket, Packing, and Sealing Device Manufacturing

Incentive Fees

Item No.

Quantity U/I Unit Price Amount 1 LO To be Determined

Incentive Fees for Performance Metrics Performance criteria include: 1) Inventory Sustainment, 2) On-Time Delivery, 3) Production Lead Time, and 4) Cost Containment as outlined in Section H of this document. These fees will be determined and paid on an annual basis or included in the unit price of the item as applicable.

PART I - THE SCHEDULE

SECTION C

DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

252.211-7005 SUBSTITUTIONS FOR MILITARY OR FEDERAL SPECIFICATIONS AND STANDARDS

(NOV 2005)

(IAW DFARS 211.273-4)

(b) Offerors are encouraged to propose SPI processes in lieu of military or Federal specifications and standards cited in the solicitation. A listing of SPI processes accepted at specific facilities is available via the Internet at http://guidebook.dcma.mil/20/guidebook_process.htm (paragraph 4.2).

(d) (Offeror insert information for each SPI process)

SPI Process: _____________________________________________________

Facility: _________________________________________________________

Military or Federal Specification or Standard: ____________________________

Affected Contract Line Item Number, Subline Item Number, Component, or Element:

PART I - THE SCHEDULE

SECTION D

PACKAGING AND MARKING

The following clauses apply to consumable items:

52.212-9000 CHANGES – MILITARY READINESS (Mar 2001) - DLAD

52.211-9010 SHIPPING LABEL REQUIREMENTS – MIL-STD-129P (May 2006) – DLAD

52.211-9033 PACKAGING AND MARKING REQUIREMENTS (APR 2008) – DLAD

52.246-9008 INSPECTION AND ACCEPTANCE AT ORIGIN (AUG 2007) – DLAD

(a) Inspection and Acceptance are at Origin.

(b) The point of acceptance will be the point of last inspection before shipment unless otherwise indicated by the offeror.

(c) The Offeror shall indicate below the location where supplies will be inspected:

Supplies:

Plant: ___________________________________Cage Code:__________________ Street: __________________________________ City/St/Zip: ______________________________ Applicable to clin(s): __________________________________________________

(d) The Offeror shall indicate below the location where packaging will be inspected:

Packaging:

( ) Same as for supplies or, Plant: __________________________________ Cage Code: ___________________ Street: _________________________________ City/St/Zip: _____________________________ Applicable to clin(s): ___________________________________________________

(e) For CLIN(S) described by manufacturer's name/code and part number:

(1) Contractor must present evidence of performance of all quality assurance requirements specified in the contract and ensure that item will serve its intended purpose by performing examinations and tests to determine (A) completeness of item, (B) absence of rust, contamination, or deterioration, (C) correct identification, (D) absence of any damage, and (E) compliance with preparation for delivery. If the contractor is not the manufacturer of the supplies, evidence must be furnished to establish that the supplies were produced by the manufacturer.

(2) The word "manufacturer" means the actual manufacturer of each CLIN. The Government’s Quality Assurance Representative may require that evidence be furnished establishing the name and address of the plant that manufactures each CLIN to ensure that a domestic product is being supplied.

(f) For CLIN(S) designated as Former Government Surplus (whether described by manufacturer’s name/code and part number, or by Military or Federal specification or drawing), the original package markings of each item shall be verified to previous Government contract number and part number (as specified in DLAD 52.211-9000, Section I of the award). Any deviation from this number shall be cause for rejection of the item.

(g) Additional inspection requirements may be required, based on the evaluation of the surplus offer, by the procuring activity.

Such additional requirements, if necessary, will be identified before the award.

The following clause applies to both consumable and DLR items:

52.247-9012 REQUIREMENTS FOR TREATMENT OF WOOD PACKAGING MATERIAL (WPM) – (Feb 2007) –

DLAD

(a) THIS CLAUSE ONLY APPLIES WHEN WOOD PACKAGING MATERIAL (WPM) WILL BE USED TO MAKE SHIPMENTS

UNDER THIS CONTRACT. AND/OR WHEN WPM IS BEING ACQUIRED UNDER THIS CONTRACT.”

(b) Definition.

Wood packaging material (WPM) means wood pallets, skids, load boards, pallet collars, wooden boxes, reels, dunnage, crates, frame and cleats. The definition excludes materials that have undergone a manufacturing process, such as corrugated fiberboard, plywood, particleboard, veneer, and oriented strand board (OSD).

(c) All Wood Packaging Material(WPM) used to make shipments under DOD contracts and/or acquired by DOD must meet requirements of International Standards for Phytosanitary Measures (ISPM) 15, “Guidelines for Regulating Wood Packaging Materials in International Trade.” DOD shipments inside and outside of the United States must meet ISPM 15 whenever WPM is used to ship DOD cargo.

(1) All WPM shall comply with the official quality control program for heat treatment (HT) or kiln dried heat treatment (KD HT) in accordance with American Lumber Standard Committee, Incorporated (ALSC) Wood Packaging Material Program and WPM Enforcement Regulations (see http://www.alsc.org/).

(2) All WPM shall include certification/quality markings in accordance with the ALSC standard. Markings shall be placed in an unobstructed area that will be readily visible to inspectors. Pallet markings shall be applied to the stringer or block on diagonally opposite sides of the pallet and be contrasting and clearly visible. All containers shall be marked on a side other than the top or bottom, contrasting and clearly visible. All dunnage used in configuring and/or securing the load shall also comply with ISPM 15 and be marked with an ASLC approved DUNNAGE stamp.

(d) Failure to comply with the requirements of this restriction may result in refusal, destruction, or treatment of materials at the point of entry. The Agency reserves the right to recoup from the Contractor any remediation costs incurred by the Government."

PART I - THE SCHEDULE

SECTION E

INSPECTION AND ACCEPTANCE

52.246-2 INSPECTION OF SUPPLIES--FIXED-PRICE (AUG 1996)

(IAW FAR 46.302)

52.246-11 HIGHER-LEVEL CONTRACT QUALITY REQUIREMENT (FEB 1999)

(IAW FAR 46.311, DFARS 246.202-4(1))

The Contractor shall comply with the higher-level quality standard selected below. [If more than one standard is listed, the offeror shall indicate its selection by checking the appropriate block.]*

Title Number Date Tailoring *See Individual Line Item Schedule

(Applicable only if specified in the individual order/call issued hereunder)

52.246-16 RESPONSIBILITY FOR SUPPLIES (APR 1984)

(IAW FAR 46.316)

252.246-7000 MATERIAL INSPECTION AND RECEIVING REPORT (MAR 2008)

(IAW DFARS 246.370)

The following clauses apply to consumable items:

52.246-9019 MATERIAL AND INSPECTION REPORT (APR 2008) – DLAD

52.246-9020 DISTRIBUTION OF MATERIAL INSPECTION AND RECEIVING REPORT (APR 2008) – DLAD

The following clause applies to both consumable and DLR items:

52.246-9043 HIGHER-LEVEL CONTRACT QUALITY REQUIREMENT (NON-MANUFACTURERS)

([JAN] 2009) – DLAD

PART I - THE SCHEDULE

SECTION F

DELIVERIES OR PERFORMANCE

52.211-17 DELIVERY OF EXCESS QUANTITIES (SEP 1989)

(IAW FAR 11.703(b)) (Applicable when fixed-price supplies are furnished)

52.242-15 STOP-WORK ORDER (AUG 1989)

(IAW FAR 42.1305(b)(1)) (Applicable for supplies, services, or research and development)

52.242-17 GOVERNMENT DELAY OF WORK (APR 1984)

(IAW FAR 42.1305(c)) (Applicable to fixed-price for supplies other than commercial or modified-commercial items)

52.247-29 F.O.B. ORIGIN (FEB 2006)

(IAW FAR 47.303-1(c))

52.247-58 LOADING, BLOCKING, AND BRACING OF FREIGHT CAR SHIPMENTS (APR 1984)

(IAW FAR 47.305-15(a)(2))

52.247-60 GUARANTEED SHIPPING CHARACTERISTICS (DEC 1989)

(IAW FAR 47.305-16(b)(1))

(a) The offeror is requested to complete subparagraph (a)(1) of this clause, for each part or component which is packed or packaged separately. This information will be used to determine transportation costs for evaluation purposes. If the offeror does not furnish sufficient data in subparagraph (a)(1) of this clause, to permit determination by the Government of the item shipping costs, evaluation will be based on the shipping characteristics submitted by the offeror whose offer produces the highest transportation costs or in the absence thereof, by the Contracting Officer's best estimate of the actual transportation costs. If the item shipping costs, based on the actual shipping characteristics, exceed the item shipping costs used for evaluation purposes, the Contractor agrees that the contract price shall be reduced by an amount equal to the difference between the transportation costs actually incurred, and the costs which would have been incurred if the evaluated shipping characteristics had been accurate.

(1) To be completed by the offeror:

(i) Type of container: Wood Box [ ], Fiber Box [ ], Barrel [ ], Reel [ ], Drum [ ], Other

(Specify)_________;

(ii) Shipping configuration: Knocked-down [ ], Set-up [ ], Nested [ ], Other (specify)

(iii) Size of container: "____” (Length), x ___" (Width), x ___" (Height) = ___ Cubic Ft;

(iv) Number of items per container ________each;

(v) Gross weight of container and contents ______Lbs

(vi) Palletized/skidded [ ]Yes [ ] No;

(vii) Number of containers per pallet/skid ______;

(viii) Weight of empty pallet bottom/skid and sides ____________Lbs;

(ix) Size of pallet/skid and contents _______ Lbs Cube ________;

(x) Number of containers or pallets/skids per railcar __________*--

Size of railcar _____________ Type of railcar _____________

(xi) Number of containers or pallets/skids per trailer __________*-- Size of trailer______________ Ft Type of trailer______________

*Number of complete units (contract line item) to be shipped in carrier's equipment.

(2) To be completed by the Government after evaluation but before contract award:

(i) Rate used in evaluation * ;

(ii) Tender/Tariff ** ;

(iii) Item *** ;

*Rate **Tender ***Item No

(b) The guaranteed shipping characteristics requested in subparagraph (a)(1) of this clause do not establish actual transportation requirements, which are specified elsewhere in this solicitation. The guaranteed shipping characteristics will be used only for the purpose of evaluating offers and establishing any liability of the successful offeror for increased transportation costs resulting from actual shipping characteristics which differ from those used for evaluation in accordance with paragraph (a) of this clause.

52.247-61 F.O.B. ORIGIN-MINIMUM SIZE OF SHIPMENTS (APR 1984)

(IAW FAR 47.305-16(c))

The following clauses apply to consumable items:

52.211-9020 TIME OF DELIVERY - ACCELERATED (Jun 2008) – DLAD

52.247-9029 SHIPPING INTSTRUCTIONS (APR 2008) – DLAD

52.247-9035 SHIPPING INSTRUCTIONS (DOMESTIC) (OCT 2008) - DLAD

52.247-9038 SHIPPING INSTRUCTION FOR DLA DIRECT ACQUISITIONS (OCT 2008) - DLAD

Freight shipping addresses and scheduling instructions, if applicable, are available DLAD PGI 47.305-10. Contractors will need to schedule a delivery appointment prior to arriving at the depot.

PART I - THE SCHEDULE

SECTION G

CONTRACT ADMINISTRATION DATA

ACCOUNTING AND APPROPRIATION DATA (AUG 1998)

Accounting and Appropriation Chargeable ACRN Funds Citation Amount Chargeable

AA TO BE CITED ON EACH INDIVIDUAL ORDER $0.00

ACRN TOTAL $ 0.00

PART I - THE SCHEDULE

SECTION H

SPECIAL CONTRACT REQUIREMENTS

1.0 SCOPE

This effort will provide worldwide support for National Stock Numbers (NSNs) associated with sole source P&W aircraft engine product lines. Efforts should provide for the best possible supply availability for items covered and provide an interface with Department of Defense (DoD) Systems in an Electronic Commerce/Electronic Data Interchange (EC/EDI) environment, where applicable. The NSNs listed in the candidate listings attached to this solicitation constitute the items to be initially included in this contract; subsequent items may be added to the contract by modification.

1.1 Cancellations

Delivery order cancellations will be sent to the Contractor electronically via the Internet, e.g., electronic mail (e-mail).

Within two working days after receipt for an order cancellation, the Contractor shall inform the Government if there will be any cancellation cost on the order. If no costs were incurred by the Contractor, No Cost Termination for Convenience procedures will apply. If applicable, the Contractor shall provide the Government with the estimated cancellation costs for the order within seven working days of the initial request for cancellation. The Government will respond to the Contractor within five working days advising the intent to cancel or continue with production of the order.

1.2 Price Pending Items

In order to better meet the needs of our customers it is important that our contracts accommodate the broadest possible range of items. It is recognized that costs are incurred pricing items that have minimal or uncertain projected demands; therefore, these items will be included as “To Be Determined (TBD)”. In the event that a demand materializes, it is necessary to quickly price these items utilizing the applicable Memorandum of Understanding (MOU) pricing methodology and delivery schedule.

For items identified as TBD, the Contractor shall provide pricing within 30 days of a request from DLA that a price is required. Upon submittal of a price, the Contractor will provide the required information in accordance with the established pricing methodology identified within the applicable MOU. If the NSN cannot be priced due to obsolescence or sourcing reasons, the NSN may be removed from the contract.

1.3 Collaborative Planning

The Contractor shall participate with the Government in collaborative planning meetings. The Government will identify the population of items that will be discussed during the meeting. The Contractor may recommend items to be discussed and shall be required to disclose any information or records that facilitate the collaborative planning process. The primary tool to facilitate the collaborative planning for DLA managed consumables will be the Supplier Requirements Visibility Application (SRVA). Tools for non-DLA managed items may be identified by the managing organization. The objective of the meetings will be to increase the flow of information between all parties, increase forecasting accuracy, decrease lead-times, and mitigate impacts due to parts obsolescence.

The Government will retain item management responsibilities for all items; however, the Government will benefit from the shared collaborative forecasting process. These open communications will ensure greater accuracy of forecasts and reductions in order excess and parts obsolescence.

2.0 Performance Metrics

A key component of the Strategic Supplier Alliance (SSA) will be the ability to effectively provide management visibility into efficiency and productivity of the contract. This requirement necessitates the creation of a meaningful set of performance measures and metrics that drive enhanced contract performance and continuous process improvement. The metrics for each support category will be listed in the applicable section of this document. The contract metrics will be achieved through a Government and Contractor partnership that will determine appropriate measures based on contract objectives and performance standards.

This partnering shall continue throughout the life of the contract to ensure the metrics remain valid and relevant to Government priorities and Contractor performance. At a minimum, the performance metrics, required level(s) of performance, and any associated incentive or disincentive, will be reviewed prior to exercise of the option period and may be subject to renegotiation prior to option exercise. When applicable to a given metric, performance will be evaluated at the end of each annual performance period to determine the amount of incentive or disincentive for that performance period. Although tracking will start at contract award, the initial performance period start date is to be determined. Each performance period will be one year in duration.

Metrics will be re-evaluated and possibly revised at the beginning of the option period. Both parties will mutually agree to any changes in the metrics; except, the Government reserves the right to unilaterally remove the IS incentive at any time during this contract.

2.1 Inventory Sustainment (IS) Metric

The IS concept is applicable to United States Air Force (USAF) F100 Depot Level Repairables (DLRs) supported by an integrated team approach between the Government and the Contractor to establish and validate requirements.

The primary purpose of IS is to ensure an asset is always available when needed. To support this concept, the Government and the Contractor shall participate in Joint Demand Planning (JDP). Authority for approval of requirements projections will reside with the Government. The Contractor shall become responsible for providing required assets on an as needed basis in order to ensure inventory levels are maintained at or above Minimum Inventory Quantities (MIQ). As usage lowers existing stock, the Contractor shall be responsible, based on the previously established requirements, to replenish inventory levels when open delivery orders are in place.

The material support concept documented in this contract consists of the following phases and activities: JDP, Ramp-Up, IS, and Recovery Efforts.

2.11 Joint Demand Planning (JDP)

On a semiannual basis, the Contractor and the Government shall participate in a JDP conference conducted at a site selected by the Government’s Supply Chain Manager. The purpose of the JDP conference is to review the future material support posture of assets. During the JDP, the Government will develop buy requirement projections for each item covered by this agreement.

The Government will provide historical consumption data, future workloads, and inventory status from the systems and data fields. The Government will not be held liable for the accuracy of or decisions made using this data.

The Contractor shall have delivery schedules and supportability recommendations on future demand levels of individual assets based on their technical knowledge of the engine available for the JDP session.

2.12 Initial Ramp-Up Phase

The Government will supply the MIQ and Best Estimated Quantity (BEQ) or annual buy requirement, for each NSN.

Then, the Contractor shall determine a ramp-up plan, if needed, for the MIQ and a date when IS begins. Anytime during the life of the contract sole source parts can be added to the IS profile. If P&W determines an NSN can be declared IS during initial ramp-up, P&W will not be responsible for previous backorder quantities. The Contractor shall provide a ramp-up plan for the newly added parts within 30 calendar days.

At the completion of the ramp-up plan, any NSNs covered by this agreement will transition to support via the IS concept provided an order was placed. NSNs not in a supportable position as a result of the Contractor’s failure to deliver IAW the delivery plan at completion of the ramp-up will automatically transition to support via the IS concept.

BEQ: The projected Government buy requirement on a yearly basis.

MIQ: The minimum inventory quantity established by the Government. The Government reserves the right to adjust the MIQ on an annual basis.

2.13 Inventory Sustainment Declared

Once a NSN is under the IS program, any orders placed will be through this contract utilizing the IS concept. The incentive is a monetary incentive to compensate the Contractor for the additional risk earned based on the criteria outlined hereof for items under the IS concept.

Based on the current inventory posture of each asset subject to this agreement, the Contractor shall coordinate and structure the delivery schedule to ensure the inventory position of the assets remains at or above the MIQ at all times except as in Section 4.5, Recovery Efforts. The Contractor is authorized to deliver up to the quantity of the delivery order at anytime during the effective period of the delivery order.

During any given order period should quality problems arise due to the Contractor’s tender of non-compliant delivery requirements for any particular asset, the Government is not required to purchase the minimum and may unilaterally decrease the delivery requirements below the minimum. As a result of this action, no termination costs may be recovered by the Contractor. For any other actions whereby the Government determines the need to decrease below the minimum, termination costs may be recovered by the Contractor in accordance with the terms and conditions of the contract.

The assets covered by IS will be divided into three variable support categories. These support category variance percentages are applicable to the annual BEQ by supporting the Government’s inventory sustainment objectives.

Each individual NSN is assigned to a category by the Government based upon the fluctuation of the annual buy requirement from year to year. NSNs can only change categories annually at the end of each contract year.

Support categories shall not be adjusted any other time. The variance percentages are set forth by support category as follows:

Category I: Fluctuation of the annual buy requirement is 5% through 15%.

Category II: Fluctuation of the annual buy requirement is greater than 15% through 20%.

Category III: Fluctuation of the annual buy requirement is greater than 20%.

For example, if the annual requirement varies between five percent through fifteen percent, the NSN is assigned to Category I. The Government will provide annual BEQs to the Contractor. In the event additional classifications are desired, they will be established by mutual agreement by the parties on an asset-by-asset basis.

The Contractor is responsible for providing required assets on an as needed basis in order to ensure inventory levels are maintained at or above MIQ levels. As consumption depletes existing stock, the Contractor shall be responsible to replenish Government inventory levels based on the previously established IS variance for each asset’s category and as such, will be entitled to earn a below incentive fee assigned to that NSN, in addition to the unit price assigned to that NSN.

Area Performance Evaluation Area Variance Percentage

Premium Percentage (Contractor Fill-In)

I. Inventory Sustainment

a) Category I 5% - 15% ____%

b) Category II >15% - 20% ____%

c) Category III >20% ____%

A disincentive will be applied if the Contractor allows a stock-out situation to occur (zero Government inventory balance). The disincentive per unit is referenced below, Area II, Pipeline Management. Except as delineated herein, the Contractor shall bear the responsibility to provide support for the assets covered by this agreement ensuring a stock-out situation does not occur. In the event Government requirements exceed the BEQ maximum as set forth per Area I, or as set forth herein, the Contractor shall not be required to ensure the original MIQ is not breached nor be responsible for a stock-out occurrence except as set forth herein unless agreed to by the parties.

Stock-out is defined as a zero Government inventory balance in the Government’s wholesale warehouse. Once this condition occurs, only those assets received in the Government warehouse and documented as received in the D035 Government Data System will be counted as available assets. Assets will be input into the D035 system by the Government within 48 hours of receipt, but assets not input within 48 hours will be considered on-hand stock by the Government. Assets in route from the vendor with DD250, Material Inspection and Receiving Report, documentation normally counted as available assets under IS, will not be counted as available assets until they are physically receipted in the Government warehouse. Each time the Government’s inventory balance reaches zero for a particular item, except as set forth herein, the Government will assess a disincentive (loss of Negotiated Price List {NPL} fee) against subsequent deliveries of that particular item until a positive on-hand stock position is provided by the contractor.

On-hand stock is defined as the available assets in the Government warehouse less valid open requisitions in the D035 system. On-hand stock will be measured at the end of each day as reported the next morning by the D035 system update. In the event that the D035 system cannot provide a daily report, manual inventory status will be established by the responsible USAF Item Manager (IM).

The disincentive (loss of NPL fee) for stock-out will be calculated as the NPL price multiplied by NPL fee percentage divided by (1+NPL fee percentage). For example, if the unit production cost is $8.55 and NPL fee percentage is 17%, then the NPL (contract) price is $10.00. Then the decrement is equal to the NPL price multiplied by .17 divided by (1+.17); [NPL price x NPL fee %)/(1+.17)= loss of NPL fee]. In this example, the Contractor would lose $1.45 per unit. This calculation results in the stock-out adjusted fee (disincentive). Upon calculation of all stock-out situations for the evaluation period on an asset-by-asset basis, the total dollars calculated in this area will be subtracted from the total incentive fee earned in Area I, Inventory Sustainment.

Area Performance Evaluation Area Disincentive

II. Pipeline Management

a) Stock-Out Loss of NPL Fee

2.14 Recovery Efforts

In no event will the Contractor be liable to maintain the MIQ or ensure no stock-outs if demand in any month is greater than 17% of the BEQ. In the event actual monthly consumption in any two consecutive months exceeds 25% of the BEQ, the Contractor shall not be liable for MIQ or stock-out violations relative to that particular asset.

In the event projected demand will exceed the BEQ (plus variance), the Contractor shall not be held liable for the additional requirements. In the event the Contractor cannot support the additional requirements, the Government may elect to fulfill the requirement using any portion of the quantity in inventory. Should this action result in a breach of MIQ or stock-out, the Contractor shall not be held liable to the extent assets were used by the Government to fulfill the additional requirement.

2.2 On-Time Delivery (OTD) Metric

This metric will only be used when the Contractor’s OTD rate falls below the rate of 93%. Then for any order wherein the contractor fails to meet the established delivery schedule, the unit price for delinquent items will be reduced by 0.2% for all orders delivered that month. If delivery does not occur on or before the delivery schedule set forth in Schedule B, the price will be further adjusted as set forth in this provision. This metric does not apply to any items already incentivized under IS.

2.3 Production Lead Time (PLT) Improvement Metric

The Government and the Contractor may collectively agree on a subset of items to incentivize decreased PLT. An average baseline PLT for the subset will be negotiated. Annually, the actual PLT change will be calculated based on completed delivery orders during the previous performance period. An incentive premium will be applied to orders in the current performance period. The incentive premium of ____% will be applied to the unit price of the selected item and calculated based on ____ % change in PLT (Contractor fill-ins). The incentive premium ceiling is ____% (Contractor fill-in). All fractions of percentage increase/decrease in PLT will be rounded down to the next whole percentage number (i.e. a change of 1.6% will be rounded down to 1%). This premium applies only to the subset of consumable items agreed to by the parties; no other items are included under this provision. This metric does not apply to any items already incentivized under IS.

2.4 Cost Containment Metric

Prices for the basic period of the contract will be established prior to contract award. Prices for future pricing periods will be subject to the following provision. The contractor is incentivized to contain costs within the long term forecast rate for the Producer Price Index (PPI) applicable to the North American Industry Classification System (NAICS) code of that item. For example, NAICS 336412, Aircraft Engines & Engine Parts, applies to NSN 2840-01-205-1308.

The price in the last year of the current period in affect will be used to develop Maximum Target Prices (MTPs) for the years of the next pricing period. The MTPs will be calculated by applying the applicable escalation rates from Index PPI336412, Aircraft Engines & Engine Parts. The resulting MTPs will then be used as a benchmark from which to apply incentive or disincentive. Should the actual negotiated prices be less than the MTPs, the contractor will be entitled to an incentive of ___% (Contractor Fill-in) of the difference. The incentive will be applied to the negotiated prices and the resulting incentive price will be the price included in the contract for the applicable year. Likewise, should the negotiated prices be greater than the MTPs, the contractor will receive a disincentive of ___% (Contractor Fill-in) of the difference. The disincentive will be applied to the negotiated prices and the resulting disincentive prices will be the prices included in the contract for the applicable year. Subsequent pricing periods will use the same methodology; however, the incentive/disincentive will be removed from the price in effect before applying the escalation rates for the next pricing period. This metric will apply only to consumable and DLR NSNs that are specifically identified as covered by this metric in the contract.

The Contractor shall look for cost reductions of up to ten percent in areas of material costs as well as overall costs.

Discussions shall be held with the Government about strategies for the Contractor to obtain the maximum impact on cost reductions and to outline their efforts for any areas where costs can be reduced. The inclusion of a cost reduction and shared savings incentive clause will be discussed as a method to achieve this goal.

3.0 Packaging and Marking Requirements (Consumable Items)

(a) Unless stated otherwise, commercial packaging in accordance with ASTM-D-3951 is required for CONUS shipments from the contractor directly to the customer. Commercial packaging and marking is not sufficient for vendor shipments requiring movement through the Defense Transportation System (also referred to as the Military Distribution System or DLA Depot) as the shipment could ultimately be moved via Military Air.

(b) Higher level packaging in accordance with MIL-STD-2073 is mandatory for all shipments that meet the below criteria:

Movement through the Defense Transportation System including shipments to a Military distribution facility or depot OCONUS shipments FMS shipments Hazardous material, as cited in the AID or in the Quality Requirements Matrix.

(c) Materials not considered as HAZMAT for CONUS or OCONUS commercial air shipments may be considered HAZMAT for MILAIR shipments OCONUS. As such, contractors/shippers shall ensure that material meeting HAZMAT definitions in DLAI 4145.3, Preparing Hazardous Materials for Military Air Shipment, is packaged in accordance with that instruction when the consignee is OCONUS and the shipment will be moved through the Defense Transportation System. DLAI 4145.3 is available on the internet at:

www.dscc.dla.mil/downloads/packaging/dlai4145_3.pdf

(d) All items shall be marked in accordance with MIL-STD-129P. Hazardous items and shelf life items, as cited in the AID or in the Quality Requirements Matrix, shall be marked in accordance with MIL-STD-129P and the appropriate clauses cited in the appendix to the matrix and the contract. The contractor is required to package material in accordance with Quantity Unit Pack (QUP), specified in MIL-STD-2073 and the Unit of Issue (UI), specified in each delivery order. A packing slip shall be located in a plastic pouch on the outside of the package.

For HAZMAT destined OCONUS, a hard copy of the Material Safety Data Sheet (MSDS) must also be included.

(e) In the event of deployments, this clause may be invoked when shipments originally destined for a CONUS location are diverted to OCONUS destinations thereby necessitating movement of the material through the Defense

Transportation System. In such an event, contractors will be notified by the Contracting Officer and an equitable adjustment will be made in the contract price as deemed appropriate.

NOTE: Applicable to negotiated solicitations. Offers that do not comply with the packaging and marking requirements as specified in Section D of this solicitation may be subject to rejection as being technically unacceptable.

4.0 Palletization for MIL-STD-2073 in Accordance with MD00100452, Revision B (Consumable Items)

(a) Palletization.

(1) When the total number of containers going to the same destination is 250 pounds or greater (excluding pallet) or a volume of 20 cubic feet or greater, then palletization IAW MIL-STD-147 is required.

(2) When the total number of containers going to the same destination is less than 250 pounds (excluding pallet) and is less than 20 cubic feet, then palletization is not required IAW MIL-STD-147.

(3) Except as otherwise provided in this clause, shipping containers shall be palletized IAW the guidance cited in MIL-STD-147. Special palletization instructions may be further specified under other preparation for delivery instructions in this order/contract. In the case of any inconsistency between such special palletization instructions in the requirements cited in this clause, the special palletization instructions shall take precedence.

(4) Pallets required for use, shall comply with ANSI/MH1, Part No. MH1/9-02SW4048. This part number shall be used for Level A packaging when the total weight is less than 1500 lbs. evenly distributed. This part number shall be used for Level B packaging when the total weight is greater than 1500 lbs., but less than 3000 lbs. evenly distributed.

***NOTE*** Use of nonstandard commercial pallets is forbidden unless cited in the contract/purchase order.

(i) The following commercial heat treatment process has been approved by the American Lumber Standards Committee (ALSC) and is required for all Non-Manufactured Wood Packaging Material (NMWPM) entering a European country or destined for a Container Consolidation Point (CCP) or an aerial or water port of embarkation: All wooden pallets and wood containers produced entirely or in part of non-manufactured softwood species shall be constructed from Heat Treated (HT to 56 degrees Centigrade for 30 minutes) coniferous material and certified accordingly by an accredited agency recognized by the American Lumber Standards Committee (ALSC) in accordance with Non-manufactured Wood Packing Policy and Non-manufactured Wood Packing Enforcement Regulations both dated May 30, 2001. All wooden pallets and containers produced entirely of non-manufactured hardwood species shall be identified by a permanent marking of "NC," 1.25 inches or greater in height, accompanied by the CAGE code of the contracted manufacturer and the month and year of the contract. On pallets, the marking shall be applied to the stringer or block on opposite sides and ends of the pallet and be contrasting and clearly visible.

On containers, the marking shall be applied on a side other than the top or bottom, contrasting and clearly visible.

(ii) Oak and chestnut wood shall be bark free and square edged so that none of the natural rounded surface tissues remain, or be bark free and have a moisture content no greater than 20%. The contractor is responsible for performing an inspection of each shipment to assure compliance with this requirement.

(5) Unless otherwise specified in the contract or purchase order hazardous material containers, except cylinders and 55 gallon drums (see paragraph 5(i) thru (iv), shall be palletized IAW Load Type VI of MIL-STD-147. Pallets used shall be as cited above. "Hazardous Material" for the purpose of this clause, means any material considered hazardous under the Department of Transportation Hazardous Material Regulations, 49 CFR 171-79, IATA, IACO, IMDG, unless otherwise specified.

***NOTE*** Shrink wrap is not authorized for use with Hazardous Materials.

(i) 55 gallon drums for domestic delivery shall be palletized 3 per pallet IAW with load type 3a bonding method G (stretch wrap) or 4 per pallet IAW load type VI of MIL-STD-147 (placing an inverted wood cap under and over the load secured by metal strapping).

(ii) 55 gallon drums for export delivery shall be palletized 4 per pallet IAW load type VI of MIL-STD-147 (placing an inverted woodcap under and over the load secured by metal strapping).

(iii) Cylinders for domestic delivery shall be palletized vertically IAW load type IX of MIL-STD-147 or horizontally using metal strapping IAW MIL-STD-147 bonding method D (figure 36) and notched wood spacers (storage aid #25, figure 50) to assure the stability of the load.

(iv) Cylinders for export delivery shall be Palletized (vertically) IAW load type IX of MIL-STD-147.

(6) The use of stretch-wrap, shrink film or nometallic strapping for bonding is not auhorized for "Export Shipments".

(7) Stretch-wrap, when utilized, shall be accomplished mechanically with a (machine or hand held tool that based on the weight of items being palletized, maintains sufficient tension to assure secure bonding of the items to the pallet during transportation).

(8) Unless otherwise specified in the contract or Purchase Order, all polyethylene/plastic containers for domestic delivery with or without fiberboard over pack shall be palletized IAW load type 3a bonding method G (stretch wrap) or IAW Load "Type VI of MIL-STD-147 to ensure stacking support during…