SEMA_Section_H

W58RGZ-15-R-0045 Page___of____

SECTION H – SPECIAL INSTRUCTIONS 1

H-1 252.222-7006 RESTRICTIONS ON THE USE OF MANDATORY ARBITRATION 4

AGREEMENTS DEC/2010 5

H-2 952.225-0011 (C3) GOVERNMENT FURNISHED CONTRACTOR SUPPORT 7

MAY/2012 8

H-3 952.225-0004 (C3) COMPLIANCE WITH LAWS AND REGULATIONS 10

DEC/2011 11

H-4 952.225-0013 (C3) CONTRACTOR HEALTH AND SAFETY DEC/2011 13

H-5 952.225-0016 CONTRACTOR DEMOBILIZATION C3) – AFGHANISTAN 15

AUG/2011 16

H-6 952.225-0019 (C3) COMMODITY SHIPPING INSTRUCTIONS 18

(AFGHANISTAN) AUG/2011 19

H-7 952.225-0020 (C3) CONTRACTOR ACCOUNTABILITY AND PERSONNEL 21

RECOVERY (AFGHANISTAN) AUG/2011 22

H-8 AIRCRAFT SERVICE AND MAINTENANCE STANDARDS 24

The Government is the airworthiness authority for the fixed wing Special Electronic 26 Mission Aircraft (SEMA) cited in PWS Appendix C. The US Army Aviation Engineering 27 Directorate (AED), Aviation and Missile Research, Development, and Engineering 28 Center (AMRDEC), Redstone Arsenal, Alabama, will issue airworthiness certification. 29 SEMA servicing and maintenance origins include the following unless otherwise stated 30 by the Government; the contract, OEM manuals and applicable FAA regulations, and 31 FAA approved Airline Transport Association (ATA) Chapter 5 Time Limits and 32 Maintenance Checks. US Army fixed wing Public Use and Commercial Derivative 33 Aircraft (CDA) are not subject to FAA oversight. The contractor shall follow Army 34 guidance and FAA, in case of contradiction or conflict the army direction and guidance 35 takes precedence. 36

H-9 TRANSITION TO MILITARY SUPPORT 38

In the event that the Army should determine that the aircraft shall be supported through 40 the military supply system or by another contractor; the contractor shall provide all 41 necessary data to facilitate the timely transition of logistical support to the Government 42 or to another contractor. 43

H-10 CONTRACT TERM EXTENSION 45

AWARD OF OPTION YEARS 47

In accordance with FAR 52.217-9, the Government may extend the term of this contract 49 by written notice to the contractor at any time prior to the expirations of the current 50 period of performance. The Government may unilaterally exercise the options for 51 CLINs 0001 through 0015. The Government is not obligated to exercise any of the 52 options. 53

Base Year 55 Option 1 56 Option 2 57 Option 3 58 Option 4 59 Option 5 60

H-11 RELATIONSHIP BETWEEN GOVERNMENT, CONTRACTOR, AND 62

CONTRACTOR PERSONNEL 63

a. The Government and the Contractor understand and agree that the services to be 65 delivered under this contract by the Contractor to the Government are non-personal 66 services, and the parties recognize and agree that no employer-employee or master-67 servant relationship exists or will exist between the Government and the Contractor or 68 between the Government and the Contractor's personnel. The Contractor personnel 69 shall be responsible solely to the Contractor who, in turn, shall be accountable to the 70 Government. 71

b. The Government will not exercise any supervision or control over Contractor 72 personnel performing services under this contract. Contractor personnel shall not be 73 placed under the supervision, direction, or evaluation of a Federal office, military or 74 civilian, in connection with performance under this contract. Likewise, Contractor 75 personnel shall not be placed in a position of command, supervision, administration, or 76 control over DA military or civilian personnel, or personnel of other prime contractors, or 77 become an integrated part of the Government organization in connection with 78 performance under this contract. Contractor personnel shall not be used in 79 administration or supervision of military procurement activities. 80

c. Rules, regulations, directive, and requirements that are issued during the contract 82 term by DA Military Command Authorities, under their responsibility for law and order, 83 administration, and security on the installation, shall be applicable to all Contractor 84 personnel or representatives who enter the installation, or travel on Government 85 transportation. This requirement shall not be construed or interpreted to establish any 86 degree of Government control, which is inconsistent with the intent of a non-personal 87 services contract. Contractor personnel or representatives shall be subject to such 88 checks as may be necessary to ensure that their presence on the installation does not 89 violate these requirements. No employee shall be permitted on the installation when 90 such a check reveals that the employee's presence would be detrimental to the security 91 of the installation or the accomplishment of work. When directed by the Contracting 92 Officer, the Contractor shall remove any employee from an assignment to perform 93 services under this contract for reasons of misconduct or breach of security in 94 connection with his or her employment. Under such circumstances, replacement cost 95 shall be a Contractor expense and not reimbursable by the Government. 96

d. Upon completion of their assigned shifts, Contractor employees shall depart the work 98 area and shall not loiter elsewhere on the military installation. 99

e. Contractor and Contractor personnel shall not be eligible, by virtue of performance 101 under this contract, for payment by the Government of entitlements and benefits 102 accorded Federal employees. 103

H-12 ORGANIZATIONAL CONFLICT OF INTEREST 105

a. It is recognized by the parties hereto that the effort to be performed by the contractor 107 under this contract is of such a nature that it may create potential organizational 108 conflicts of interest such as are contemplated by subpart 9.5 of the Federal Acquisition 109 Regulation. It is the intention of the parties that the contractor will not engage in any 110 contractual activities that could cause a conflict of interest with its position under this 111 contract, which may impair its ability to render unbiased advice and recommendations 112 or in which it may have an unfair competitive advantage as a result of the knowledge, 113 information, and experience gained during the performance of this contract. 114

b. The contractor shall be ineligible to participate, in any capacity as a prime contractor, 116 subcontractor at any tier, or consultant to a prime contractor, in Government contracts, 117 subcontracts, or proposals therefore (solicited or unsolicited) that result directly from 118 the contractor's performance of work under this contract. 119

c. Except as approved by the Contracting Officer, if the contractor prepares, directly 121 contributes to, or participates in the preparation of any complete or partially complete 122 statement of work, specification, or cost estimate to be used in an acquisition, the 123 contractor shall be ineligible to perform or participate in any capacity as a prime 124 contractor or subcontractor at any tier or as a consultant in any Government contractual 125 effort, which is based on such statement of work, specification, or cost estimate. For any 126 potential conflicts of interest that arise, the contractor shall notify the Contracting Officer 127 in writing and shall identify the nature of the potential conflict. 128

d. The contractor agrees to enter into a written agreement with any firm whose 130 proprietary data is used in connection with performance of the contract, to protect all 131 proprietary information from unauthorized disclosure or use as long as it remains 132 proprietary, to furnish the contracting officer with executed copies of all such 133 agreements, and to refrain from using any proprietary information in supplying to the 134 Government goods or services or for any purpose other than that for which it was 135 furnished. The contractor agrees that any data furnished by the Government to the 136 contractor shall be used only for performance under this contract, and all copies of such 137 data shall be returned to the Government upon completion of this effort. Any data 138 furnished by the Government containing trade secrets or commercial or financial data of 139 other contractors shall be treated as proprietary data. Further, the contractor agrees not 140 to reveal to third parties any data generated and/or reported to the Government in the 141 performance of this effort. These restrictions are not limitations on its use or availability 142 to the U.S. Government or contractor from other sources without restriction. 143

e. For the purpose of this clause, the term "contractor" means the contractor, its 145 subsidiaries divisions, and affiliates, any joint venture involving the contractor, or any 146 entity which the contractor or any successor or assignee of the contractor uses as a 147 prime contractor, subcontractor, or consultant to either the prime contractor or 148 subcontractor under this contract. 149

f. Furthermore, the parties agree that the prime contractor shall ensure that this clause 151 (Organizational Conflict of Interest) is included in all, subcontracts (changing identities 152 of the parties as appropriate), at any level. Subcontractors shall certify that they 153 have no conflict of interest for the work that they will perform prior to receiving a 154 subcontract. 155

H-13 NOTICE OF COLLECTIVE BARGINING AGREEMENT NEGOTIATIONS 157

In addition to the clause entitled "Notice to the Government of Labor Disputes" within 159 Section I, the Contractor shall notify the Contracting Officer thirty days prior to 160 commencement of any collective bargaining agreement negotiations. The Contractor 161 agrees to provide the Contracting Officer a copy of any collective bargaining agreement 162 applicable to employees performing under this contract. 163

H-14 LOCATION AND HOURS OF WORK 165

a. FLEXTIME, BEDOWN BASE (BB) WORKING HOURS, AND HOLIDAY COVERAGE 167

1) The contractor shall be capable of fulfilling Government mission requirements on a 169 24-hour basis, seven (7) days per week, to meet the requirements of the contract 170 worldwide. The assigned Contractor BB and deployed personnel shall flex their 171 time/schedule to support that Government exclusive mission. 172

2) The contractor shall provide personnel to support the PWS requirements. This 174 support includes out of “normal duty” hours, holidays, and/or weekends. The contractor 175 shall schedule employees in conjunction with the BB’s exclusive requirements to 176 provide on-call life cycle services outside typical “normal duty” hours, as required. 177

3) Flextime is a method used to establish these working hours wherein limited 179 manpower may be spread to cover more hours in the 168-hour week than would be 180 available using five 8-hour shifts. It consists of: “Core” (scheduled) hours wherein 181 manpower is scheduled to be on the job; and “On Call” hours wherein manpower 182 responds to both unscheduled requirements and scheduled requirements that happen 183 to be scheduled outside of “core” hours. 184

H-15 DISTINCTIVE ATTIRE AND SAFETY APPAREL 186

Contractor personnel assigned to the BB shall wear distinctive attire to allow easy 188 identification from a distance. This attire shall be of a uniform color for all personnel 189 with the contractor’s name or emblem which clearly identifies the contractor. The 190 contractor shall ensure the use of safety apparel IAW OSHA or other Government 191 regulations/policies. 192

H-16 PROGRAM MANAGEMENT/MANNING 194

The minimum manning support levels will be established by conforming the Contractors 196 proposed management plan to the contract at award. Post contract award Government 197 directed efforts necessitating an increased manning level will be negotiated under the 198 changes clause. 199

H-17 CONTRACTOR OPERATING GOVERNMENT AIRCRAFT 201

Only AR 95-20 approved Contractors are authorized to operate Government aircraft. 203 Contractor personnel are authorized to participate in aircraft flights when such flights are 204 in the best interest of the Government. 205

H-18 CONTRACTOR MILAIR TRAVEL INSTRUCTIONS 207

The contractor is authorized MILAIR Travel IAW US Army Directive 2007-01, DTD 25 209 January 2007, SECRETARY OF THE ARMY POLICY FOR TRAVEL BY 210 DEPARTMENT OF THE ARMY OFFICIALS, Paragraph 5. General Military Travel, h. 211 Contractors Aboard MILAIR. 212 The Contractor may be placed on MILAIR through use of a PCO issued Contractor 214 Identification Memorandum Letter of Authorization (LOA) only. 215

H-19 FLYING HOUR (FH) PROGRAM 217

a. ARMY FLYING HOUR PROGRAM OBJECTIVES: 219

1) Prescribed flying hours in this contract are based upon AR 95-1, Chapter 10, Table 221 10-2 and contract CLIN XX05. The contractor is responsible for providing fleet support 222 for actual flying hours notwithstanding any variance from estimates. 223

2) The Contractor’s CLIN XX05 flying hour price should be calculated based upon the 225 prescribed guidance, but actual flight hours flown may vary over the lifetime of the 226 contract. The prescribed flying hours should not be construed as a guarantee of 227 hours/income. 228

B. CHANGES TO PROGRAM FLYING HOURS 230

If individual RC-12X, MC-12S, EO-5, and RO-6A “Feet” AVG monthly FH’s remain in 232 accordance with AR 95-1 and CLIN XX05 the contractor shall not be entitled to an 233 equitable adjustment to the flying hour rate under the CLIN. The Government and the 234 contractor reserve the right to renegotiate the Baseline Support FH quantities and FH 235 capacities where the fleet actual/anticipated average (AVG) aircraft FH utilization has 236 varied by 50% of the AVG monthly FH’s per aircraft for over six (6) consecutive months. 237

H-20 AIRCRAFT MISSION CAPABLE (MC) RATE 239

a. The per month, per aircraft, contract MC rate shall be equal to or greater than (>) 241 80% with the reporting period beginning at 0001 on the 16th day of the month and 242 ending at 2400 hours on the 15th day of the following month. 243

b. MC rate is defined as the time that the aircraft as a system is fully mission capable or 245 partial mission capable. MC status data will be the sum of FMC and PMC for purposes 246 of reporting (tracked to the tenth of the hour IAW AR 700-138 and DA PAM 738-751). 247 PWS Appendix R (Maintenance Deviation List) provides information on what constitutes 248 a FMC/PMC condition. 249

c. The monthly MC rate will be electronically calculated by the FFIT database as 251 (Total Hours Available) – (Total Not Mission Capable Hours (Not Mission Capable 252 Supply + Not Mission Capable Maintenance)) ÷ (Total Hours Available – Approved 253 NRT) expressed as: 254

𝑀𝑀𝑀𝑀 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 = (Total Hours Available)−(Not Mission CapableMaintenance+Not Mission Capable Supply)

(Total Hours Available−Approved NRT) 256

H-21 AIRCRAFT NON-REPORTING TIME (NRT) 258

a. NRT requests must be submitted for PCO approval/disapproval. NRT is applicable 260 to the aircraft MC and Readiness Indicator metrics only. The supply chain metric for 261 Perfect Order Fulfillment for Maintenance Action is not to be adjusted by NRT. The 262 request with an “estimated” material listing and anticipated time for repair shall be 263 submitted within three (3) business days. NRT requests not received within the allotted 264 time will result in assignment of NMC from onset of the aircraft grounding condition until 265 receipt of the request by the Government. 266

b. If approved, NRT start time will be the date time group of the NRT request submittal. 268 If multiple part requests have been initiated within 24 hours of the approved start time 269 then the date time group of the last part requested is the NRT start time. If hidden 270 damage is revealed during the NRT repair a follow up NRT request shall be submitted 271 for approval/disapproval. 272

c. NRT will end when all of the PCO approved hours for the required repair have been 274 expended. If the actual repair/supply time is less than the approved NRT estimate then 275 the actual time will be calculated as the NRT within FFIT. Should they exceed the 276 approved estimate a follow up NRT request shall be submitted. 277

d. The NRT hours and MC calculations are a final unilateral decision of the 279 Government and not subject to the “Dispute” clauses of the contract. The following 280 examples are not all inclusive: 281

MAY BE GRANTED NRT MAY NOT BE GRANTED NRT

Acts of God e.g. Storm, Lightning, Hail, Wind, Damage Ground/Flight Ops not IAW GFR Approved Procedures

Pilot Error e.g. Hard landing, Over-torque Engine Supply Vender Shortcomings Maintenance/Services Directed by the Government Contractor Induced Failure, Fault, Defect, Oversight Government Action/Inaction Resulting in Delay Scheduled Aircraft Services Third Party Events Approved by the Government Contractor Administrative Delay Time Actions Due to War or Contingency Non-availability of required equipment

H-22 PERFORMANCE INCENTIVE FEE 284

The Performance Incentive Fee shall be determined in accordance with Contract 286 Attachment XX Incentive Plan. 287

H-23 AIRCRAFT LOGISTICS PERFORMANCE INCENTIVE 289

Three (3) consecutively evaluated logistic performance incentive metrics will be 291 assessed on a quarterly basis. The initial “Gate” metric will be evaluated first with 292 advancement to the next metric if achieved, and accordingly for the third and final 293 metric. Each metric will be calculated within the Governments FFIT database. FFIT will 294 round off percentages only at the third decimal point. For resulting calculations above 295

0.005 round up and calculations below 0.005 round down. Example = 0.841 would be 296 84%. 0.845 would be 85%. The specific procedures for determining award and 297 payment of the performance incentive fee are detailed in the contract Attachment XX, 298 Incentive Plan. 299

a. AIRCRAFT MC RATE INCENTIVE METRIC 301 The per aircraft quarterly contract MC rate forms the “Gate” performance incentive 303 metric to be assessed. This metric will be calculated by the Government FFIT database 304 as follows: 305

1) The aircraft MC rate incentive metric shall be equal to or greater than (>) 80% for a 307 three month reporting period beginning at 0001 on the 16th day of the month and 308 ending at 2400 hours on the 15th day of the third following month. 309

2) The MC rate is the time that the aircraft is fully mission capable, expressed as the 311 sum of FMC and PMC (tracked to the tenth of the hour IAW AR 700-138 and DA PAM 312 738-751). PWS Appendix R (Maintenance Deviation List) provides information on what 313 constitutes a FMC/PMC condition. 314

3) The quarterly MC rate will be electronically calculated by the FFIT database as 316 (Total Hours Available) – (Total Not Mission Capable Hours (Not Mission Capable 317 Supply + Not Mission Capable Maintenance)) ÷ (Total Hours Available – Approved 318 NRT) expressed as: 319

𝑀𝑀𝑀𝑀 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 =

(Total Hours Available) − (Not Mission CapableMaintenance + Not Mission Capable Supply)

(Total Hours Available − Approved NRT)

(EXAMPLE) 324

Total Hours Available = 2136 – (Period Beginning 16 Jan 2015 and ending 15 Apr 2015) 326

Total FMC Hours = 1602 327 Total PMC Hours = 94 328

Total PCO approved NRT Hours = 60 329 Total Not Mission Capable Supply Hours = 210 330

Total Not Mission Capable Maintenance Hours = 230 331

𝑀𝑀𝑀𝑀 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 = (2136)−(230+210)

(2136−60)

= 0.817 333

𝑀𝑀𝑀𝑀 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 = 82% 334

b. AIRCRAFT SUPPLY CHAIN INCENTIVE METRICS 337 A quarterly supply chain metric for perfect order fulfilment (POF) and Inventory 339 Accuracy will be assessed when the per aircraft MC metric rate (80%) has been met. 340

1) The supply chain POF metric rate shall be equal to or greater than (>) 97%. Two 342 separate POF rates will be calculated as a measure of the BB’s number of part 343 requisition’s filled for the FFIT database aircraft maintenance actions (MA) and FFIT 344 database replenishment for Government owned component spares supply, delivered as 345 follows: 346 On Time Delivery – Time from Requisition Start to Requisition Delivered. This time is 348 derived from the PWS Appendix S Urgency of Need Designator (UND) and location 349 tables. Start is the date time group of the requisition entered into the FFIT database. 350 End is the date time group of component/parts received at the BB specified in FFIT. 351 Correct and Complete Item Component/part – Item received is the item requested and 353 as required by the part number or its authorized substitutes. The item is complete with 354 all associated subsystems/assemblies/appliances as specified by the OEM parts listing 355 required to accomplish its function. 356 Correct Quantity – Number of items requisitioned is number of items delivered as 358 requested and consistent with the precise item ordered. 359 Accurate Documentation – Authenticated correspondence indicating the 361 component/part is serviceable (Certificate of Conformance, 8130, etc.). 362 Serviceable Condition – Item Received is not damaged as a result of improper 364 packaging, handling, storage or Transportation. 365 The quarterly POF rate will be electronically calculated by the FFIT database follows: 367

𝑃𝑃𝑃𝑃𝑃𝑃 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 =

(Total Requisitions received that meet all Conditions)

Total Requisitons

(EXAMPLE) 373

Total Requisitions for period = 4750 375 Total Requisitions that meet all five conditions = 4634 376

𝑃𝑃𝑃𝑃𝑃𝑃 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 = 4634

=0.976 378

𝑃𝑃𝑃𝑃𝑃𝑃 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 = 98% 380

2) The supply chain metric Inventory Accuracy metric rate shall be equal to or greater 382 than (>) 97% across the entire contract. The Government will use DI-MGMT-80259, 383 CDRL A018 report as a basis to calculate the inventory accuracy performance metric 384 set. Inventory accuracy will be accomplished using the information in Section II 385 Inventory Adjustment Voucher. Calculation shall be the number of lines as indicated 386 “Item No.” column minus the number of lines indicating a “Quantity Over or Quantity 387 Short” divides number of lines. 388

𝐼𝐼𝐼𝐼𝐼𝐼𝑅𝑅𝐼𝐼𝑅𝑅𝐼𝐼𝐼𝐼𝐼𝐼 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐼𝐼𝑅𝑅𝐴𝐴𝐼𝐼 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 =

𝐼𝐼𝑅𝑅𝑅𝑅𝐼𝐼 𝑁𝑁𝐴𝐴𝐼𝐼𝑁𝑁𝑅𝑅𝐼𝐼 𝑇𝑇𝐼𝐼𝑅𝑅𝑅𝑅𝑇𝑇 + 𝐼𝐼𝐼𝐼 − 𝑄𝑄𝐴𝐴𝑅𝑅𝐼𝐼𝑎𝑎𝑅𝑅𝐼𝐼 𝑃𝑃𝐼𝐼𝑅𝑅𝐼𝐼 𝐼𝐼𝐼𝐼 𝑄𝑄𝐴𝐴𝑅𝑅𝐼𝐼𝑎𝑎𝑅𝑅𝐼𝐼 𝑆𝑆ℎ𝐼𝐼𝐼𝐼𝑅𝑅

𝐼𝐼𝑅𝑅𝑅𝑅𝐼𝐼 𝑁𝑁𝐴𝐴𝐼𝐼𝑁𝑁𝑅𝑅𝐼𝐼 𝑇𝑇𝐼𝐼𝑅𝑅𝑅𝑅𝑇𝑇

Example: 393

Item Number Total = 35785 395 Quantity Over = 327 396 Quantity Short = 383 397

𝐼𝐼𝐼𝐼𝐼𝐼𝑅𝑅𝐼𝐼𝑅𝑅𝐼𝐼𝐼𝐼𝐼𝐼 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐼𝐼𝑅𝑅𝐴𝐴𝐼𝐼 = 35785−(327+ 383)

35785 =0.980 399

𝐼𝐼𝐼𝐼𝐼𝐼𝑅𝑅𝐼𝐼𝑅𝑅𝐼𝐼𝐼𝐼𝐼𝐼 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐼𝐼𝑅𝑅𝐴𝐴𝐼𝐼 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 = 98% 401

c. AIRCRAFT READINESS INDICATORS INCENTIVE METRIC 403 The per aircraft quarterly contract Partial Mission Capable (PMC), Not Mission Capable 405 Maintenance (NMCM), and Not Mission Capable Supply (NMCS) rate metrics from the 406 third and final logistics performance incentive. These three (3) metrics will only be 407 assessed when the preceding aircraft MC and Supply Chain POF incentive metrics 408 have been achieved. These metrics will be calculated by the government as follows: 409

1) The PMC rate incentive metric shall be less than or equal to (<) 5% for a three-411 month reporting period beginning at 0001 hours on the 16th day of the first month and 412 ending at 2400 hours on the 15th day of the third month. 413 The PMC rate is the time that the aircraft is partially mission capable, denoted by a 415 circle red X condition, that places a restriction on the aircraft thus impeding the full 416 mission capability requirements as stated in AR 700-138, Army Logistics Readiness and 417 Sustainability, Table 3-4, Missions and Aircraft, page 29 and 30. 418 PWS Appendix R (Maintenance Deviation List) provides information on what constitutes 420 a PMC condition and describes the system/subsystems that may be inoperative with the 421 corresponding restriction for each aircraft Mission Design Series (MDS) aircraft. Some 422 restrictions are POF UND (PWS Appendix S) time limited and the contractor shall repair 423 the fault within the time indicated or the fault will revert to NMC time. Should the 424 Government elect to fly the aircraft prior to return to an FMC status, the contractual 425 status for that aircraft shall be MC for the complete 24 hour period that coincides with 426 the date of aircraft dispatch. 427 The per aircraft quarterly PMC rate will be electronically calculated by the FFIT 429 database as PMC Hours ÷ (Total Hours Available – Approved NRT) expressed as: 430

𝑃𝑃𝑀𝑀𝑀𝑀 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 =

PMC Hours

Total Hours Available − Approved NRT

Example: 434

Total Hours Available = 2136 – (Period Beginning 16 Jan 2015 and ending 15 Apr 2015) 435 Total FMC Hours = 1602 436

Total PMC Hours = 94 437 Total PCO approved NRT Hours = 60 438

Total Not Mission Capable Supply Hours = 210 439 Total Not Mission Capable Maintenance Hours = 230 440

𝑃𝑃𝑀𝑀𝑀𝑀 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 = 94

2136−60 =0.045 442

𝑃𝑃𝑀𝑀𝑀𝑀 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 = 5% 444

2) The NMCM metric rate incentive shall be less than or equal to (<) 10% for a three 446 month reporting period beginning at 0001 hours on the 16th day of the first month and 447 ending at 2400 hours on the 15th day of the third month. 448 The NMCM rate is the time that the aircraft is not mission capable, denoted by a red X 450 condition, that grounds the aircraft for maintenance reasons thus impeding the full or 451 partial mission capability requirements as stated in AR 700-138, Army Logistics 452 Readiness and Sustainability. 453 NMCM time stops/ends when all grounding faults are corrected and the return to service 455 inspection quality checks, Maintenance Operational Check (MOC) are complete and the 456 aircraft is either awaiting flight check, FMC or PMC as indicated above, or lack of a 457 needed repair part stops the work in progress resulting in NMCS. NMCM time will not 458 be charged when the aircraft is awaiting flight check it will be carried MC. Should the 459 aircraft return from flight check with additional discrepancies, deficiencies or faults the 460 status will be NMC or PMC as appropriate. 461 The per aircraft quarterly NMCM rate will be electronically calculated by the FFIT 463 database as PMC Hours ÷ (Total Hours Available – Approved NRT) expressed as: 464

𝑁𝑁𝑀𝑀𝑀𝑀𝑀𝑀 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 =

NMCM Hours

Total Hours Available − Approved NRT

Example: 468

Total Hours Available = 2136 – (Period Beginning 16 Jan 2015 and ending 15 Apr 2015) 469 Total FMC Hours = 1602 470

Total PMC Hours = 94 471 Total PCO approved NRT Hours = 60 472

Total Not Mission Capable Supply Hours = 210 473 Total Not Mission Capable Maintenance Hours = 230 474

𝑁𝑁𝑀𝑀𝑀𝑀𝑀𝑀 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 = 230

2136−60 =0.111 476

𝑁𝑁𝑀𝑀𝑀𝑀𝑀𝑀 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 = 11% 478

3) The NMCS metric rate incentive shall be less than or equal to (<) 10% for a three 480 month reporting period beginning at 0001 hours on the 16th day of the first month and 481 ending at 2400 hours on the 15th day of the third month. 482 The NMCS rate is the time that the aircraft is not mission capable, denoted by a red X 484 condition, that grounds the aircraft for work stoppage due to a component/part supply 485 reason thus impeding the full or partial mission capability requirements as stated in AR 486 700-138, Army Logistics Readiness and Sustainability. 487 NMCS time stops/ends when all required component/parts are received. The aircraft 489 reverts to NMCM until the component/parts are replaced and the return to service 490 inspection quality checks, Maintenance Operational Check (MOC) are complete and the 491 aircraft is either awaiting flight check, FMC or PMC as indicated above. NMCM time will 492 not be charged when the aircraft is awaiting flight check it will be carried MC. Should 493 the aircraft return from flight check with additional discrepancies, deficiencies or faults 494 the status will be NMC or PMC as appropriate. 495 The per aircraft quarterly NMCS rate will be electronically calculated by the FFIT 497 database as NMCS Hours ÷ (Total Hours Available – Approved NRT) expressed as: 498

𝑁𝑁𝑀𝑀𝑀𝑀𝑆𝑆 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 =

NMCS Hours

Total Hours Available − Approved NRT

Example: 502

Total Hours Available = 2136 – (Period Beginning 16 Jan 2015 and ending 15 Apr 2015) 503 Total FMC Hours = 1602 504

Total PMC Hours = 94 505 Total PCO approved NRT Hours = 60 506

Total Not Mission Capable Supply Hours = 210 507 Total Not Mission Capable Maintenance Hours = 230 508

𝑁𝑁𝑀𝑀𝑀𝑀𝑆𝑆 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 = 210

2136−60 =0.101 510

𝑁𝑁𝑀𝑀𝑀𝑀𝑆𝑆 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 = 10% 512

H-24 FIXED WING FLEET INFORMATION TRACKER (FFIT) 514

FFIT data input and training is covered in Appendix F. The training will include 516 information on Business Practices as well as information on calculations for 517 performance metrics. 518 FFIT Business Practice will indicate that data entry will be to the tenth of the hour for 520 MA and supply requisitions (IAW DA PAM 738-751). 521

FFIT will be utilized to determine aircraft MC rate. There will be an MC rate (no NRT 523 adjustments and not associated with the performance metrics) and a “Contract adjusted 524 MC rate” (includes adjustment for NRT). FFIT Business Practice will include process of 525 subtracting approved NRT time and finalizing the “Contract adjusted MC Rate” for the 526 purposes of CLIN 2 payment. 527 FFIT Business Practice will include a requirement to upload approved NRT request into 529 FFIT and associate the NRT to a specific Maintenance Action (MA) for the specific 530 aircraft and incident. 531 FFIT Business Practice will include monitoring of MAs and supply requisitions to monitor 533 for reduced payment for PMC greater than 124 hour. Additionally FFIT Business 534 Practice will include monitoring of MAs and supply requisitions for minor 535 fault/deficiencies/discrepancy that are greater than 45 days to determine input for CLIN 536 X001. 537

H-25 REDUCED PAYMENTS 539

a. MANNING 541

The contractor will be responsible for maintaining manning levels based on the 543 contractor’s conformed proposal. Should the contractor’s manning levels fall below the 544 proposed and accepted contractual level for more than 40 working days at a BB, the 545 contractor shall provide a get well plan to address manning deficiencies. The 546 Government will assess a reduced payment against this deficiency on the 41st day of 547 the vacancy based on the B-1 proposal. (Whatever highest labor rate is X 8 hrs. for 548 duration of vacancy) 549

b. MONTHLY AIRCRAFT MISSION CAPABLE RATE 551

If the contractor does not meet the MC percentage rate, there will be a reduction in 553 payment. The rate will be $1000.00 per day per aircraft for each day not meeting the 554 MC percentage rate. The total reduced payment for the month will not exceed the 555 monthly FFP CLIN 0001rate for the aircraft. 556

c. MINOR FAULT/DEFICIENCIES/DISCREPANCIES 558 Failure to correct minor fault/deficiencies/discrepancy shall result in the contractor 560 reducing his monthly invoice price for Base Operations Support (CLIN X001) at a rate of 561 $250.00 per week per minor discrepancy for weeks during the reporting period that 562 each minor discrepancy remains uncorrected for a period exceeding 45 days. Reduced 563 payments shall be invoked for each reporting period for minor discrepancies that 564 continue to remain on the aircraft log over 45 days. For the purpose of computing 565 reduced payments, a full week will be defined as a calendar period beginning on a 566 Sunday and ending on the subsequent Saturday beyond 45 days that an uncorrected 567 minor discrepancy exists as reported on the aircraft logbook. Partial weeks will be 568 rounded to zero if equal to or less than 4/7ths of a full week and will be rounded up to 569 one full week if the partial week is greater than 4/7ths of a full week. 570

H-26 GOVERNMENT FURNISHED PROPERTY (GFP) 572

IAW FAR 52-245-1(d)(2)(iii) complementary but not all inclusive aircraft ancillary 574 equipment and property furnished in an “as-is” “where-is” condition by the Government 575 at contract award exist to limit the contractor's initial investment in the equipment 576 necessary to comply with this contract. The contractor will be given the opportunity to 577 inspect and accept GFP provided in attachment XXXX Contractor Authorized Stockage 578 List during contract transition. Once the GFP item(s) are selected and accepted FAR 579 52-245-1(d)(2)(iii) will remain in force for those items until contract completion or 580 termination. 581 H-27 OVER AND ABOVE (O&A) WORK (CLINs XX04, XX05, XX06, XX07, XX08) 583

a. The Government may request and the contractor may be required to perform Over 585 and Above (O&A) effort for aircraft maintenance, repair, servicing, component 586 replacement, pilot labor, and movement of aircraft associated with the following: fault 587 correction, damage repair, defective material replacement (other than normal “wear and 588 tear”) resulting from “acts of God,” Government action or inaction, accidents, incidents 589 or war when the aircraft, platforms, or aircraft systems are NOT under the contractor’s 590 control. The request shall be generated by the Procuring Contracting Officer (PCO) or 591 Administrative Contracting Officer (ACO) via written notification to the contractor 592 identifying the requirement. The Contractor agrees to submit a proposal in response to 593 the Government’s request as outlined below. This effort also includes travel, per diem, 594 and deployments. 595

b. The following CLINs have been established for O&A effort. In order to streamline the 597 listing of CLINs, “XX” refers to the Fiscal Year (e.g. 18, 19, 20, etc.) and the digits 598 following the “XX” specify the CLIN number (e.g. 01, 02, 03, etc.). 599 CLIN Contract Type Description 601 XX04 Cost-Plus-Fixed-Fee Completion O&A Unscheduled General and Heavy 603 Maintenance, Technical Directives, Pilot 604 Labor 605 XX05 Cost Reimbursement – No Fee O&A Unscheduled General and Heavy 607 Maintenance, Technical Directives, 608 Materials and Parts 609 XX06 Cost-Plus-Fixed-Fee Completion O&A Labor for Engine Repairs, 611

Propeller Repairs, Engine Overhaul 612

O&A, and Hot Section Inspection O&A 613 XX07 Cost-Plus-Fixed-Fee Completion O&A Materials and Parts for Engine 615

Repairs, Propeller Repairs, Engine 616 Overhaul O&A, and Hot Section 617 Inspection O&A 618

XX08 Cost Reimbursement – No Fee O&A Travel/Per Diem and Deployments 620

c. Work Procedures for O&A Efforts. In accordance with DFARS 252.217-7028, “Over 622 and Above Work,” in Section I, the following procedures are established for O&A effort 623 to be performed under this contract: 624

(1) The contractor shall submit a separate work request (WR) for work to be performed 626 under the individual O&A CLINs set forth in subparagraph b above. The WRs shall 627 contain, as a minimum, the following information: aircraft identification; date prepared; 628 work request number; fault or discrepancy; date of discovery; work area; work zone (as 629 applicable); fuselage/wing station (as applicable); water line (as applicable); butt line (as 630 applicable); CLIN/Sub CLIN; CLIN unit of issue; narrative description of fault or 631 discrepancy; proposed man-hours; part numbers and quantities; area affected in inches 632 (as applicable); proposed corrective action with criteria for performance (i.e., technical 633 publication paragraph); operations breakdown with number of man-hours per step when 634 proposed man-hours are eight (8) or more; labor, cost breakout by materials, other 635 direct costs, all indirect costs, repair schedule, and estimated completion date. The 636 contractor shall submit the WRs to the contract site representative for review. The 637 WRs shall become part of the aircraft records at time of delivery. 638

(2) The contractor site representative shall review each WR to validate the defect 640 classification. For all O&A maintenance activities, the contractor site representative 641 shall assign an “airworthy” or “not airworthy” designator for each WR. 642

(3) The contractor site representative shall determine funding responsibility IAW 644 contract terms and assign disposition of the WR as “USG,” “the contractor,” “noted 645 but not corrected (NBNC),” or “subcontractor.” 646

(4) The contractor site representative shall forward all WRs with a disposition of 648 “USG” to the DCMA Quality Assurance Representative (QAR) for review. In the 649 event the DCMA QAR requires technical assistance, the DCMA QAR will forward 650 the WR to the FW PO Program Integrator. The FW PO will prepare a 651 recommendation to the DCMA QAR for the “USG” WR that provides technical 652 rationale for each item identified in the WR. The DCMA QAR will maintain close 653 coordination with the FW PO Program Integrator on any O&A issues or questions. 654

(5) In accordance with DCMA and FAR policy, the DCMA QAR will validate the 656 WRs as "Accept" or "Reject." The DCMA QAR will sign and date the rejected WRs 657 and return those WRs to the contractor site representative detailing the rationale for 658 rejection on each WR. The DCMA QAR will also sign and date the WRs that have 659 been accepted as the USG’s responsibility and forward the WRs to the DCMA 660 Industrial Specialist (IS). 661

(6) If an agreement cannot be reached with the DCMA QAR in a timely manner as 663 to the disposition of the WR, the contractor site representative will elevate the issue 664 to the ACO and FW PO for resolution. 665

(7) DCMA IS is authorized to negotiate on the ACO's behalf. The DCMA IS will 667 maintain close coordination with the FW PO Program Integrator and ACO to assure 668 that adequate funds are available. The DCMA IS will not approve WRs that exceed 669 100 percent of the authorization to proceed (ATP) funding level. When there is 670 insufficient funding for a WR to be approved, the DCMA IS will not authorize the 671 contractor to commence any O&A work until the ACO has notified the DCMA IS that 672 the ATP funding level has been increased. The contractor is not authorized to 673 commence performance until a revised ATP is issued documenting that adequate 674 funds are available. The contractor shall notify the ACO in writing when total 675 expenditures of USG authorized WRs reach 75 percent of funding stated on the 676 ATP. The contractor shall not exceed 100 percent of the ATP funding level unless 677 and until the ATP is expressly revised by the ACO. 678

(8) Upon receipt of USG accepted WRs from the DCMA QAR, the DCMA IS will 680 begin negotiations of the estimated labor hours and required material with the 681 contractor. During negotiations, if the DCMA IS and the contractor site 682 representative are unable to reach an agreement in a timely manner or reach an 683 impasse, the DCMA IS will elevate the negotiations to the ACO for settlement. The 684 DCMA IS will document the mutually agreed upon labor hours/material costs on the 685 WR, approve the WR, and forward the WR to the contractor site representative. 686 This authorizes the contractor to commence work. 687

(9) The DCMA IS will ensure all WRs are returned to the contractor site 689 representative in a timely manner in order to not unduly delay the contractor. 690 NOTE: The steps in subparagraphs 10 through 13 below may be accomplished in 692 conjunction with any of the process steps in subparagraphs 1 through 9 above prior 693 to commencing work. Facility processes may vary. 694

(10) The contractor site representative shall forward ALL other dispositioned WRs 696 to the DCMA QAR for technical, Safety of Flight (SOF), and hold point review. 697 These WRs shall contain any related repair instructions provided. 698

(11) The DCMA QAR will review each WR for SOF and Government quality 700 assurance inspection criteria. The DCMA QAR will insert hold points and ensure 701 WRs related to the SOF platform list are marked with SOF per DCMA SOF policy. 702

(12) The DCMA QAR will ensure all WRs are returned to the contractor site 704 representative in a timely manner in order to not unduly delay the contractor. 705

(13) The contractor site representative shall ensure a final “noted but not corrected” 707 (NBNC) list is added to the aircraft records at time of delivery. The contractor site 708 representative shall provide a copy of the list of heavy maintenance WRs to the FW 709 PO Heavy Maintenance Group. Any DCMA in-process inspections are input into the 710 workflow by the contractor with notification to DCMA QAR. 711

d. Non-Reportable Time (NRT): Nothing in these work procedures prohibits the 713 contractor from submitting NRT requests IAW contractual terms when the 714 contractor believes Government-caused delays warrant such action. 715

e. Contract Definitization: As required by DFARS 252.217-7028, estimated target 717 prices calculated for WRs against the O&A CLINs shall be definitized by an 718 administrative contract modification. A properly completed and approved WR shall 719 constitute the contractor's definitization proposal. Multiple approved WRs may be 720 consolidated into one proposal. Upon receipt of a definitization proposal, the ACO 721 shall review the proposal for adequacy. The number of direct ("hands on") labor 722 hours required will be negotiated between the contractor and the PCO. Direct ("hands 723 on") labor hours are the labor hours performed by personnel actually engaged in the 724 direct performance of work required. Direct labor does not include any labor performed 725 by support or supervisory personnel, such as timekeepers, payroll clerks, purchasing, 726 material handling, quality control, storing, and issuing personnel. Quality control 727 personnel are those persons who apply standards to finished work or products to 728 determine that finished production work is serviceable in all respects. Direct parts and 729 materials, and travel and per diem (authorized in advance by the Government), required 730 to perform the O&A work shall be reimbursed under the applicable CLINs. Failure to 731 agree upon total allowable, allocable price shall be subject to the "Disputes" clause of 732 this contract. The ACO will prepare and execute a bilateral contract modification for 733 approved, definitized Work Requests, and forward a copy of the fully executed 734 modification to the contractor, the PCO, and to the FW PO. 735

f. Work Procedures for Deployments: When initial deployment is required under the 737 O&A CLIN, the FW PO shall promptly notify the PCO and the contractor of the technical 738 requirement to proceed for initial deployment. When subsequent recurring deployments 739 are required under the O&A CLIN, the FW PO shall promptly notify the ACO and the 740 contractor of the technical requirement to proceed for the follow-on deployments. The 741 PCO will issue an ATP and establish a limitation on funds to be expended for the initial 742 deployments. The ACO will issue an ATP and establish a limitation on funds to be 743 expended for the recurring deployments. Upon receipt of the authorization from either 744 the PCO or the ACO, the contractor shall proceed with performance as provided by the 745 WR authorization and contract terms. The contractor shall not proceed without this 746 authorization for initial deployment and recurring deployments. The ACO shall 747 coordinate with the FW PO on any WRs for recurring deployments. The contractor shall 748 not exceed the approved level of effort for any WR for deployments unless and until the 749 authorization to proceed is expressly modified by the PCO for the initial deployment and 750 the ACO for recurring deployments. 751

H-28 ELECTIVE IMPROVEMENTS OPTIONS (CLINS XX09,XX10,XX12) 753

a. Option CLINs XX09, XX10, XX11, and XX12 provide a vehicle for the Government to 755 procure any one of the three types of elective improvement efforts delineated below. 756 The option CLINs for elective improvements may be exercised one or more times during 757 the period of time when the contractor is performing life cycle services support on CLINs 758 XX01 through XX003. Each time an option CLIN for an elective improvement is 759 exercised, a unique contract subline item number (SLIN) shall be assigned by the 760 Government. 761

(1) Firm-Fixed-Price (FFP) Elective Improvements As directed by the PCO, the 763 contractor shall perform individual or fleet wide aircraft improvements such as those that 764 enhance functionality, add utility, improve appearance, or customization. These 765 improvements exist, and are known, proven, FAA/Government tested, certified, 766 airworthiness or STC approved for installation. These are “after-market” type, form-fit 767 improvements. Examples may include: customized avionics packages; custom 768 seat/seating/seat covering; VIP custom cabin communications and WIFI; enhanced 769 passenger cabin furnishings; crew cabin oxygen mask or smoke goggle systems; 770 customized crewmember survival gear; connected panel devices for data 771 communication; hand-held GPS devices; and portable oxygen devices for passengers. 772

(2) Cost-Plus-Fixed-Fee (CPFF) Elective Improvements As directed by the PCO, 774 the contractor shall perform aircraft improvements that correct obsolescence issues, 775 enhance functionality, or provide additional functionality. Existing improvements 776 that are known, proven, FAA/Government tested, certified, Government 777 airworthiness or FAA supplemental type certification (STC) approved for installation. 778 These are “after-market” type, “form-fit” improvements that may require minor 779 engineering efforts and/or structural modifications to the aircraft. Examples may 780 include: new technology avionics packages and navigation systems to meet 781 FAA/ICAO requirements; engine exhaust and wingtip strake kits to reduce drag; 782 new technology “ozone” friendly AC system compressors to meet EPA 783 requirements. 784

(3) Cost-Plus-Incentive-Fee (CPIF) Elective Improvements As directed by the 786 PCO, the contractor shall perform fleet wide aircraft improvements that do NOT 787 currently exist and generally require development, design, testing, prototyping, and 788 airframe integration. These improvements are not yet approved, airworthiness 789 released, or certified by the FAA or Government. These are complex aircraft 790 avionics and platform avionics, engine/propeller aircraft support equipment, or 791 safety of flight type component/structural enhancements. These improvements may 792 require limited to major engineering efforts and/or structural modifications to the 793 aircraft. Examples may include: new technology cockpits; aircraft safety equipment 794 suites; increased performance engines/propellers; militarized radar; and upgraded 795 avionics suites. 796

(4) Fixed Price Incentive Firm (FPIF) Elective Improvements As directed by the 798

PCO, 799

b. The following Option CLINs have been established for the Elective Improvements 801 effort. In order to streamline the listing of CLINs, “XX” refers to the Fiscal Year (e.g. 18, 802 19, 20, etc.) and the digits following the “XX” specify the CLIN number (e.g. 01, 02, 03, 803 etc.). 804 Option 806 CLIN Contract Type Description 807 XX09 FFP Elective Improvements Materials and Parts Only (labor will be 809 base operations labor under CLIN XX01) 810 required to perform the types of effort 811 identified in Clause H-__, subparagraph 812 a (1) above. 813 XX10 FFP Elective Improvements Heavy maintenance labor and 815 materials/parts required to perform the 816 types of effort identified in Clause H-__, 817 subparagraph a (1) above. 818

XX11 CPFF Elective Improvements Labor and materials/parts required to 820 perform the types of effort identified in 821

Clause H-__, subparagraph a (2) above. 822 XX12 CPIF Elective Improvements Labor and materials/parts required to 824 perform the types of effort identified in 825

Clause H-__, subparagraph a(3) above. 826

c. Exercise of Elective Improvements Options: The PCO will notify the contractor via 828 letter of the Government’s decision to exercise an option for performance of an elective 829 improvement effort. Attached to the PCO letter will be a statement of objectives (SOO), 830 a statement of work (SOW) or a performance work statement (PWS) which adequately 831 defines the Government’s technical requirements and the tasks to be performed by the 832 contractor. This SOO, SOW or PWS prepared by the Government will replicate 833 Section 7.0 of the PWS, Contract Attachment 001. The contractor shall submit an 834 engineering change proposal (ECP) along with a more definitive SOW (if a SOO is 835 provided by the Government) after written request by the PCO. The proposal shall 836 include all data i.e. drawings, schematics, OEM data etc. sufficient to perform a 837 technical evaluation, audit (if required), and negotiations and shall contain certified cost 838 or pricing data, if required. The parties shall promptly negotiate a settlement agreement 839 and the contract will be modified subsequently to reflect that agreement. However, in 840 the event negotiation of a definitive contract is not possible in sufficient time to meet 841 schedule and/or program requirements, the Government may request the contractor to 842 submit a not-to-exceed amount in order for the Government to exercise the option prior 843 to receipt of the contractor’s proposal and/or completion of negotiations. Negotiation of 844 the NTE definitization proposal shall be on a downward basis only. The final definitized 845 price shall not, in any event, exceed the undifinitized NTE price. 846

H-29 52.243-4000 ENG CHG PROPOSAL, VALUE ENG CHG PROPOSAL, 848

REQUEST FOR DEVIATION, MAR/2011 849

REQUEST FOR VARIANCE, ENG RELEASE RECORDS, NOTICE OF REVISION, & 851

SPECIFICATION CHG NOTICE PREPARATION AND SUBMISSION INSTRUCTIONS 852

1. Contractor initiated Engineering Change Proposals (ECPs), Value Engineering 854 Change Proposals (VECPs), Request for Deviations (RFDs), and Request for Variance 855 (RFVs), collectively referred to as "proposals", shall be prepared, submitted and 856 distributed in accordance with paragraphs 2, 3 and 4 below except as specified in 857 paragraph 5 below. 858 2 . Format. 860

a. Class 1 ECPs require the "Long Form Procedure" for documenting the change and 862 describing the effects of the change on the suitability and supportability of the 863 Configuration Item (CI). Class I ECPs should be limited to those that are necessary or 864 offer significant benefit to the Government.