Solicitation_Attachment_0018_-_Additional_Terms_and_Conditions.docx

Additional Terms and Conditions

NOTICE TO OFFERORS - FLIGHT SAFETY PARTS REQUIRING ENGINEERING TESTING

(a) The parts being procured under this solicitation are identified as flight safety parts requiring engineering testing. In accordance with the Army policy pertaining to such parts, this procurement is limited to only those sources (1) who have been approved in accordance with AMCOM (previously ATCOM) source approval procedures and (2) whose part has successfully completed all required engineering testing. Notwithstanding the fact that the technical data package may list sources who have not been tested, only those sources listed in Section B are eligible for award.

(b) By submitting an offer/bid/quote, the contractor certifies that (1) parts representative of the parts it will deliver have previously been subjected to and have passed all requisite engineering testing and (2) the critical manufacturing processes that will be used to produce the parts are either unchanged since the representative parts were tested or that changes in critical manufacturing processes have been approved by the Government in accordance with QE-STD-1 or other Government approved standard. The contractor agrees to provide any and all pertinent documentation which the Government deems necessary to show compliance with the foregoing requirements.

(End of Clause)

STATEMENT OF WORK/SPECIFICATIONS - CONTRACTOR SPECIFICATIONS

a. The Contractor, as an independent Contractor, and not as an agent or employee of the Government, shall furnish all services, facilities, labor, parts, materials, equipment, tools and data necessary to accomplish the inspection and Overhaul/Upgrade for the Servo Cylinder; Servo, Cylinder, Assembly; Primary Servo; and Servo Assembly, Coll required to return the items as specified in Section B, to condition code A as defined by Army Regulation 725-50. The input/output configuration shall be as defined in Section B herein . Upon completion of the Overhaul/Upgrade, as applicable, the items shall be packaged as defined in Section D of this contract and shipped to the destination(s) specified in Section F.

b. Prior to commencement of Overhaul/Upgrade for the Servo Cylinder; Servo, Cylinder, Assembly; Primary Servo; and Servo Assembly, Coll, the Contractor shall disassemble and inspect the item to the extent necessary to determine if the total cost of such Overhaul/Upgrade including labor, services, parts and materials. The Contractor shall continue the overhaul/upgrade process on all end items when the total cost to overhaul/upgrade does not exceed:

1. (Servo Cylinder, Output NSN: 1650-01-625-0436) $29,909.55

2. (Servo, Cylinder, Assembly, Output NSN: 1650-01-624-9255) $19,041.28

3. (Primary Servo, Output NSN: 1650-01-625-0164) $18,903.20

4. (Servo Assembly, Coll, Output NSN: 1650-01-624-9557) $15,279.84

The overhaul/upgrade shown in Section B for CLINs 0002AA, 0002AB, 0003AA, 0003AB, 0010AA, 0010AB, 0011AA, 0011AB, 0014AA, 0014AB, 0015AA, 00015AB, 0018AA, 0018AB, 0019AA, and 0019AB are Firm-Fixed-Price (FFP). The Contractor will be required to complete the overhaul/upgrade on all end items regardless of the damage as long as the total cost to overhaul/upgrade does not exceed (Servo Cylinder, Output NSN: 1650-01-625-0436) $29,909.55, (Servo, Cylinder, Assembly, Output NSN: 1650-01-624-9255) $19,041.28, (Primary Servo, Output NSN: 1650-01-625-0164) $18,903.20, and (Servo Assembly, Coll, Output NSN: 1650-01-624-9557) $15,279.84. The Contractor will be required to provide other than certified cost and pricing data and a Report of Discrepancy (ROD) signed by the DCMA QAR to the Procuring Contracting Officer (PCO) to confirm that the total cost to overhaul/upgrade will exceed (Servo Cylinder, Output NSN: 1650-01-625-0436) $29,909.55, (Servo, Cylinder, Assembly, Output NSN: 1650-01-624-9255) $19,041.28, (Primary Servo, Output NSN: 1650-01-625-0164) $18,903.20, and (Servo Assembly, Coll, Output NSN: 1650-01-624-9557) $15,279.84. This data will include at minimum material cost (80% of material cost will be supported by current vendor quotes), labor hours, labor rates, overheads, G&A(s), and profit rate. More information to support the Contractor's price may be requested by the Government. In no event will any asset be scrapped prior to an approved modification by the PCO. No additional funding except for missing parts will be provided to the Contractor to complete the overhaul of the end item. The Government cannot guarantee the condition of the assets sent to the Contractor for overhaul/upgrade.

c. In the event that the total contractor cost to overhaul is determined (approved by PCO) to exceed (Servo Cylinder, Output NSN: 1650-01-625-0436) $29,909.55, (Servo, Cylinder, Assembly, Output NSN: 1650-01-624-9255) $19,041.28, (Primary Servo, Output NSN: 1650-01-625-0164) $18,903.20, and (Servo Assembly, Coll, Output NSN: 1650-01-624-9557) $15,279.84, the Contractor shall scrap such items at the fixed unit price in Section B hereof and make disposition in accordance with (IAW) the Contractor's approved Government property procedures. Such scrapped items shall count toward the quantities ordered hereunder. The Government may, at its discretion, replace any items scrapped by input of additional assets, and said scrap quantities will not count as part of the total maximum quantity.

d. Overhaul/Upgrade shall be accomplished IAW contractor specifications, processes and procedures. The Contractor shall notify the PCO through the cognizant ACO of any change or deviation from the list of specifications, processes and procedures provided by the Contractor with its proposal IAW the clause in Section L entitled, "Identification of Specifications, Processes and Procedures," and attached to this contract.

e. The Overhaul/Upgrade shall comply with the critical characteristics identified as an attachment to the Solicitation/Contract, see Section J, Attachment 0005.

f. Upon receipt of the reparables, containers shall be reviewed for serviceability. Containers shall be considered serviceable unless one or more of the following conditions exist: (1) containers are structurally damaged to include functional damage to the suspension system, cracks or holes to the container hull, hull deformity to the extent the container cannot be closed (or sealed where required), or dents that will interfere with the item envelope; (2) corrosion has progressed to the point where fit, function or the life of the container is affected. Items received without containers or containers determined to be unserviceable shall be processed IAW the Contractor's locally approved Government Property procedures. Components received improperly packaged, damaged with corrosion/deterioration or those with shipping discrepancies shall be reported IAW Data Item A001, Exhibit A.

g. Any Contractor paint facility which is used in the performance of this contract shall comply with the Environmental Protection Agency and Occupational Safety and Health Administration standards for painting as implemented by TM 55-1500-345-23, with change 12, Painting and Marking of Army Aircraft.

h. Data and reports shall be submitted IAW the Contract Data Requirements List, DD Form 1423, Exhibits A-F. Data shall be packaged, packed and marked as necessary to assure safe delivery to the addressees indicated on the DD Form(s) 1423.

i. Product Verification Audit (PVA) shall be conducted IAW CLIN 0001AA and Clause, Product Verification Audit (PVA) Statement of Work, as specified in Attachment 0018 titled “Additional Terms and Conditions” of Section J of the Solicitation/Contract. The Frozen Plan must be prepared IAW DI-MISC-80508, QESTD-2, Data Item A006, Exhibit F, and the Frozen Plan Description and Guidance, Attachment 0011, and approved before the PVA may be conducted.

j. The Army Maintenance Management System - Aviation (TAMMS-A): The Contractor shall prepare TAMMS data IAW DI-SESS-81758, Data Item A005, Exhibit E, and the TAMMS instructions attached to the Solicitation/Contract, see Attachment 0008. The Contractor shall complete the forms and records as specified in DA PAM 735-751 and TB 1-1500-341-01.

k. Reserved.

l. Reserved.

m. Reserved.

n. Reserved.

o. Reserved.

p. Reserved.

q. The Government reserves the right to replace any items scrapped.

r. Reserved.

s. The Contractor shall prepare the Quality Deficiency Report IAW DI-QCIC-80736, Data Item A003, Exhibit C.

t. The Contractor shall prepare the Process Plan Report IAW DI-MISC-80508, QE-STD-2, Data Item A006, Exhibit F, and the Frozen Plan Description and Guidance, Attachment 0011. Also see http://amcomdmz.redstone.army.mil/casl_cmo/casldba.casl_cmo_samsar and select AMCOM Maintenance and Overhaul (M&O) SAR."

u. Shipping Containers

The following shipping containers shall be utilized:

1. (Servo Cylinder, Output NSN: 1650-01-625-0436) 8145-00-540-1762;ZZ= 12 ON BUSHINGS; CAP ENDS

2. (Servo, Cylinder, Assembly, Output NSN: 1650-01-624-9255) Preservation Requirements and Packing Requirements Contained in MIL-STD-2073-1

3. (Primary Servo, Output NSN: 1650-01-625-0164) Preservation Requirements and Packing Requirements Contained in MIL-STD-2073-1

4. (Servo Assembly, Coll, Output NSN: 1650-01-624-9557) 8145-00-449-8424, P/N 13414-090

Packaging requirements IAW instructions attached to the Solicitation/Contract, see Attachment 0001. The Contract must use a method of shipment that provides a procedure so that the package can be tracked in case the shipment is not received by AMCOM.

v. Reserved.

STATEMENT OF WORK/SPECIFICATIONS - GOVERNMENT SPECIFICATIONS

a. The Contractor, as an independent Contractor, and not as an agent or employee of the Government, shall furnish all services, facilities, labor, parts, materials, equipment, tools and data, necessary to accomplish the inspection and overhaul/upgrade required to return the items as specified in Section B, to condition code A as defined by Army Regulation 725-50. The input/output configuration shall be as defined in Section B herein. Upon completion of the overhaul/upgrade for the Pump, Hydraulic, as applicable, the items shall be packaged as defined in each individual delivery order of the contract and shipped to the destination(s) specified in each individual delivery order.

b. Prior to commencement of overhaul/upgrade for the Pump, Hydraulic, the Contractor shall disassemble and inspect the item to the extent necessary to determine if the total cost of such overhaul including labor, services, parts and materials does not exceed $11,879.20. The Contractor shall continue to overhaul/upgrade process on all end items when the total cost to overhaul/upgrade does not exceed $11,879.20. The overhaul/upgrade shown in Section B for CLINs 0006AA, 0006AB, 0007AA, and 0007AB are Firm-Fixed-Price (FFP). The Contractor will be required to complete the overhaul/upgrade at the (FFP) in the contract when the total repair for each item regardless of the damage as long as the total cost to repair does not exceed $11,879.20. The Contractor will be required to provide other than certified cost and pricing data and a Report of Discrepancy (ROD) signed by the DCMA QAR to the Procuring Contracting Officer (PCO) to confirm that the total cost to overhaul/upgrade will exceed $11,879.20. The data will include at a minimum, material cost, (80% of material cost will be supported by current vendor quotes), labor hours, labor rates, overhead, Q&A, and profit rates. More information to support the contractor's cost may be required by the Government. In no event will any asset be scrapped, prior to receiving a fully executed modification providing approval by the PCO. No additional funding except for missing parts will be provided to the Contractor to complete the repair of the end item. The Government cannot guarantee the condition of the assets sent to the Contractor for overhaul/upgrade.

c. In the event that the total cost to overhaul/upgrade for Pump, Hydraulic is determined and approved by the PCO to exceed $11,879.20, the Contractor shall scrap such assets at the fixed unit price in Section B and make disposition in accordance with (IAW) the Contractor's approved government property procedures. Such scrapped item(s) shall count towards the quantities ordered hereunder. The Government may, at its discretion, replace any items scrapped by input of additional assets, and said scrap quantities will not count as part of the total maximum quantity. Any other parts other than those determined to be scrapped, must be overhauled at the firm fixed price in the awarded contract.

d. Overhaul/Upgrade shall be accomplished IAW Depot Maintenance Work Requirement (DMWR)-1-4320-271 (Attachment 0003), Change #: 1, dated 29 June 2012. The following Maintenance Engineering Orders (MEOs) will also be used in conjunction with the DMWR: B1427, B1680A, B1699, B1757, B1762, B1763, and C4598 (Attachments 0004 - 0010).

e. Reserved.

f. Upon receipt of the reparables, containers shall be reviewed for serviceability. Containers shall be considered serviceable unless one or more of the following conditions exist: (1) containers are structurally damaged to include functional damage to the suspension system, cracks or holes to the container hull, hull deformity to the extent the container cannot be closed (or sealed where required), or dents that will interfere with the item envelope; (2) corrosion has progressed to the point where fit, function or the life of the container is affected. Items received without containers or containers determined to be unserviceable shall be processed IAW the Contractor's locally approved Government Property procedures. Components received improperly packaged, damaged with corrosion/deterioration or those with shipping discrepancies shall be reported IAW data item A001, Exhibit A.

g. Any Contractor paint facility which is used in the performance of this contract shall comply with the Environmental Protection Agency and Occupational Safety and Health Administration standards for painting as implemented by TM 55-1500-345-23, Painting and Marking of Army Aircraft.

h. Data and reports shall be submitted IAW the Contract Data Requirements List, DD Form 1423, Exhibits A-F. Data shall be packaged, packed and marked as necessary to assure safe delivery to the addresses indicated on the DD Form(s) 1423. The DCMA Quality Assurance Representative (QAR) shall provide concurrence on ALL Reports of Discrepancies.

i. Product Verification Audit (PVA): The Contractor shall conduct the PVA in accordance with Section E – PRODUCT VERIFICATION AUDIT – STATEMENT OF WORK as specified in the solicitation/contract.

j. Reserved.

k. Reserved.

l. Reserved.

m. Reserved.

n. Inventory Transactions - The Contractor shall provide a Depot Maintenance Production Report IAW DI-PSSS-81995, Data Item A002, Exhibit B.

o. Reserved.

p. Reserved.

q. Reserved.

r. Reserved.

s. Quality Deficiency Report: The Contractor shall prepare the Quality Deficiency Report IAW DI-QCIC-80736, Data Item A003, Exhibit C.

t. Reserved.

u. Shipping Containers shall be utilized. If containers are not reparable or if assets are not delivered in the approved containers, the containers shall be Contractor Furnished Material. Shipment: The method of shipment must use a procedure so that the package can be tracked in case the shipment is not received by AMCOM.

FLIGHT SAFETY PARTS CRITICAL CHARACTERISTICS

MAINTENANCE AND OVERHAUL

QE-STD-2

QE-STD-2

REVISION A

4 OCT 96

FLIGHT SAFETY PARTS

CRITICAL CHARACTERISTICS

MAINTENANCE & OVERHAUL

QE-STD 2

Paragraph Purpose--------------------------------------- 1.0 Scope----------------------------------------- 2.0 References------------------------------------ 3.0 Definitions----------------------------------- 4.0 Policy---------------------------------------- 5.0 Requirements---------------------------------- 6.0 Planning-------------------------------------- 6.1 Plan Content---------------------------------- 6.1.1 Frozen Planning Requirements------------------ 6.1.2 Changes to Frozen Planning-------------------- 6.1.3 Audits---------------------------------------- 6.2 Critical Characteristics---------------------- 6.3 Inspection of Critical Characteristics-------- 6.3.1 Nonconforming Critical Characteristics-------- 6.3.2 Contradictory Critical Characteristics-------- 6.3.3 Delivered Nonconformances--------------------- 6.3.4 Records--------------------------------------- 6.4 Traceability of Records----------------------- 6.4.1 Purchasing Records---------------------------- 6.4.2

1.0 PURPOSE: To establish the minimum level of activity that is required for the Maintenance and Overhaul (M&O) for Flight Safety Parts (FSPs) wherein the M&O affects or involves the Critical Characteristics (CCs) associated with the FSP. Requirements established herein are intended to establish and maintain the integrity of the CCs throughout the M&O process.

2.0 SCOPE: This document is intended to be used in conjunction with other contractually specified quality requirements. This document shall apply to all FSP.

3.0 REFERENCES:

a. ANSI/ASQC B1,B2,B3-1996

b. ISO 10012-1

c. Competition Advocate's Shopping List(CASL)

d. AMCOM Regulation 702-7 (Flight Safety Parts/New Source Testing Program Management)

4.0 DEFINITIONS:

a. Flight Safety Part, (Aircraft and Components): Any part, assembly, or installation containing a critical characteristic(CC) whose failure, malfunction, or absence could cause loss of or serious damage to the aircraft, and/or serious injury or death to the occupants.

b. Flight Safety Part, (Engine): Any part, assembly, or installation containing a CC whose failure, malfunction, or absence could cause an uncommanded engine shut down, and/or an uncontained engine failure resulting in loss of, or serious damage to the aircraft and/or serious injury or death to the occupants.

c. Critical Characteristic: Any feature throughout the life cycle of a FSP, such as dimension, finish, material or assembly, manufacturing or inspection process, installation, operation, field maintenance, or depot overhaul requirement which if nonconforming, missing or degraded could cause the failure or malfunction of the FSP.

d. Approved Source: A manufacturer or vendor who has satisfied, prior to contract award, all AMCOM source approval requirements as set forth in the CASL to include, if applicable, engineering testing requirements (fatigue, endurance, and/or interchangeability).

e. Contractor: Any company or Government owned and operated depot performing M&O for AMCOM.

5.0 POLICY: To maintain the integrity and quality of FSP, components, sub-assemblies, and assemblies undergoing M&O, contractors providing such services are required to adhere to the requirements of this document in its entirety. If a contractor has difficulty in maintaining process control as evident through such things as internal management audits, customer audits, the receipt of quality deficiency reports for parts previously supplied to AMCOM et. al., this will require immediate corrective action for the current contract and could affect the award of future contracts to that contractor.

6.0 REQUIREMENTS: All requirements of this document (para 6.1 - 6.7) shall be complied with by a contractor receiving a contract for M&O of FSP. If a process or processes that involve a CC is subcontracted, this document must be imposed, in its entirety, on the subcontractor performing the work. If, during M&O replacement parts are required that are not identified on the repair parts lists, the contractor will contact the PCO for instructions on how to procure these parts.

6.1 PLANNING:

6.1.1 PLAN CONTENT: Each M&O process affecting a FSP critical characteristic as identified in the Depot Maintenance Work Requirements (DMWR) or other AMCOM authorized M&O procedure must be controlled by detailed procedures outlining each step or parameter of the process along with any required materials, tooling, equipment, or operator certification. All procedures shall be clearly defined and the values of characteristics recorded as applicable. Plans shall clearly define sequence of operation, machine type, and accept/reject limits for the specific process or operation. Critical processes not easily verified shall clearly define process operating parameters with tolerances. Plans shall clearly identify all CCs.

6.1.2 FROZEN PLANNING REQUIREMENTS: The contractor is responsible for developing M&O planning. Review and control of these plans will be the responsibility of the Contractor Control Board (CCB) consisting of qualified personnel equipped with adequate resources to assure development of complete, reliable, and traceable documentation. Parts maintained and overhauled utilizing these plans shall meet all contractual requirements. Plans developed for the M&O of FSP shall be frozen at the time the Product Verification Audit (PVA) is approved by the Government, or when a PVA is not required, prior to induction of the first M&O asset.

Once frozen, plans shall remain frozen throughout the existing contract and all subsequent contracts for M&O of the item unless changes to the planning are made in accordance with this standard. In addition all plans shall be made available to the Government at any time upon request. For future contracts, verification of the currency of this planning will also be required at the time of bid submission if specified in the solicitation.

6.1.3 CHANGES TO FROZEN PLANNING: Frozen M&O planning pertaining to a CC shall not be changed without prior CCB recommendation, justification to AMCOM and receipt of approval by the Procuring Contracting Officer (PCO) except changes occurring as the result of an AMCOM approved Engineering Change Proposal (ECP), or AMCOM Engineering Directive (AED) requires CCB approval only. All changes to frozen planning affecting CCs will be submitted to AMCOM for approval. When the item, CC, or process is accomplished by a subcontractor, the planning shall be reviewed and approved by the contractor, and be subject to the same restrictions as above. Changes to frozen planning not effecting CCs require only CCB approval.

6.2 AUDITS: Contractors are to perform self-audits of their frozen planning when that planning applies to CCs produced or verified in house. At a minimum, audits will be performed at the start of each M&O contract, annually, and when process changes occur. It is incumbent upon the contractor to assure that subcontractors accomplish self-audits, and maintain records verifying their vendors are in full compliance with the audit requirement. All audit findings will be recorded and corrective action will be documented.

6.3 CRITICAL CHARACTERISTICS:

6.3.1 INSPECTION OF CRITICAL CHARACTERISTICS: All CCs which can be nondestructively inspected/tested shall be subjected to 100 percent inspection by the contractor or subcontractor; however, assemblies containing CCs need only be disassembled to the extent required by the statement of work to return the assemblies to a serviceable condition, in these cases inspection of CCs is not necessary. CCs which require destructive testing are to be tested on a lot or batch basis, with no skip lots allowed. All completed work instructions shall identify the FSP part number, serial or lot number, and characteristic inspected. Critical characteristics shall be identified on the work instructions in such a manner as to draw attention to them. Work instructions shall reflect the exact readings or dimensions, date of inspection, identity of inspector, and any required inspection certification. These requirements are in addition to other contractual requirements.

6.3.2 NONCONFORMING CRITICAL CHARACTERISTICS: Nonconformances of CCs shall not be dispositioned "use as is" or "repair" through contractor actions. Rework to DMWR or other AMCOM approved procedures are acceptable. Waivers or deviations may be requested as specified in the contract. Request for waivers/deviations of CCs shall be classified as critical and will be forwarded to AMCOM for approval/disapproval.

6.3.3 CONTRADICTORY CRITICAL CHARACTERISTICS: Contradictions between the DMWR or other AMCOM approved procedures shall be brought to the attention of the PCO immediately and any work pertaining to the CC in question shall be stopped until a written resolution to the contradiction is issued to the contractor from the PCO.

6.3.4 DELIVERED NONCONFORMANCES: Contractors shall notify the PCO immediately of any discovered Nonconformances that may exist in previously delivered FSP. Notification is required whether the characteristic in question has been classified as a CC or not. Notification shall include a description of the suspected nonconformance, contract number, part number, and affected serial numbers, or lot number (when applicable).

6.4 RECORDS:

6.4.1 TRACEABILITY OF RECORDS: All records relating to FSP shall be traceable to the date and place of M&O. Records shall provide the degree of traceability required to enable subsequent verification of all aspects of material, manufacture, special process, personnel certification, variability control charts (if applicable), assembly and inspection of CCs. Special processes include but are not limited to heat treat, shotpeening, and nondestructive testing.

6.4.2 PURCHASING RECORDS: All purchase orders for subcontracted products or processes that contain CCs must clearly identify the CC and reference this STD and if applicable QE-STD 1 for compliance. All documents and referenced data for FSP shall be available for review by the Government to determine compliance.

6.4.3 RETENTION OF RECORDS: The contractor shall retain copies of all records generated pursuant to this standard and make these records available to the Government upon request. Records shall be retained for a period of five years past after the contractor ceases the M&O process of the part for which this standard applies. At the end of this period or in the event of relocation or shutdown, all records shall be offered to the PCO prior to disposal.

6.5 CERTIFICATION OF PERSONNEL: Contractor personnel performing work or having inspection responsibilities pertaining to CCs, shall be certified to the appropriate professional level as outlined in the applicable national standards, best commercial practices, or as contractually required. A system for tracking personnel certification shall be an element in the contractor internal audit program to assure all certifications are maintained in a current status.

6.6 MEASUREMENT & TEST EQUIPMENT (M&TE):

6.6.1 CALIBRATION: Calibration of inspection equipment shall be in accordance with contractual requirements. All aspects of the supplier's calibration confirmation system shall be subject to Government verification at unscheduled intervals. The supplier's M&TE shall be made available for use by the Government, as needed. All measuring equipment that is used to measure CCs shall be monitored for effectiveness and reproducibility. A recommended method is provided in ISO 10012-1.

6.6.2 TOLERANCE: Measurement and Test Equipment (M&TE) used to inspect FSPs must be discriminate to within 10 percent of the total tolerance for the feature being inspected except as follows. For tolerances less than .001, M&TE must be discriminate to 20 percent.

6.7 GOVERNMENT FURNISHED MATERIAL: When material is furnished by the Government, the contractor's procedures shall include, as a minimum, the following:

a. Examination upon receipt to detect damage in transit.

b. Inspection for completeness and proper type.

c. Periodic inspection and precautions to assure adequate storage conditions are maintained, and to guard against damage from handling and deterioration during storage.

d. Functional testing, either prior to or after installation, or both, as required by contract to determine satisfactory operation.

e. Identification and protection from improper use or disposition.

f. Verification of quantity.

g. Damaged/nonconforming Government Furnished Material shall be identified as such and is to be segregated in a secure controlled area pending Government disposition instructions.

BAR CODE MARKINGS

Bar Code Markings are required in accordance with the latest revision of MIL-STD-129 and ISO/IEC 16388 - Information Technology - Automatic Identification and Data Capture Techniques - Bar Code Symbology Specification - Code 39. Automatic Identification and Data Capture Techniques - Bar Code Symbology Specification - Code 39.

(End of clause)

PRODUCT VERIFICATION AUDIT (PVA) STATEMENT OF WORK

Purpose: The purpose of this PVA SOW is to provide guidance to the contractor in the preparation for and execution of the PVA. The primary concept of the PVA is to validate that the contractor's overhaul processes and procedures comply with contract technical requirements. The PVA candidate(s) are used to evaluate that the contractor processes and procedures are adequate to ensure component integrity.

(a) The Contractor shall perform overhaul and present for acceptance THREE units of Lot/Item 0002AA, as specified in this contract. This clause does not supersede instructions contained in depot overhaul work requirements, commercial overhaul manuals, or other applicable documents. It does not relieve the contractor from maintaining a quality system that will assure overhauled items conform to contractual requirements. Contractors may request to delay scheduled PVAs in frequency or waive PVA requirements of selected items in cases where accumulated objective evidence indicates that a consistent quality item is being delivered. The Command's actions will be based on the overall performance history, failure impact, supply impact, length of program, and nonscheduled PVAs accomplished by the AMRDEC Engineering Directorate (ED). Like or similar items may be grouped for these purposes provided concurrence is obtained from AMRDEC ED. The contractor may be directed by the Contracting Officer (CO) to increase or decrease the scope of a PVA pursuant to the "Changes" clause of the contract.

(b) The Contractor shall:

(1) With the concurrence of the cognizant government quality element and AMCOM, schedule and perform PVA as required by the terms of the contract or as otherwise required.

(2) Notify AMCOM through the cognizant government quality assurance element, with information copy to the AMRDEC ED, ATTN: QSContracts@amrdec.army.mil, of the date the PVA candidates will be available. Notification shall be provided at least 20 working days prior to the selected date if facilities are within the Continental United States. If facilities are outside the Continental United States, notification shall be provided at least 95 working days prior to the selected date to allow sufficient time for travelers to gain theater clearance.

(3) Provide technical personnel, tooling, measuring and test equipment, work area, forms, and clerical assistance, as required, to perform the PVA. If test cell or other specialized equipment is required; notification of readiness for PVA shall include the availability of these.

(c) The initial PVA will be performed on one of the first three (3) items overhauled. The PVA candidate will be selected by the AMRDEC PVA Team Chairman at random from the three (3) tendered for acceptance to the Government. For reoccurring audits, if any, the audit candidate will be selected by the PVA Team Chairman from all completed items currently available.

(d) The item selected for PVA will be inspected for adherence to preservation, packaging, packing, and marking requirements prior to removal from the shipping container. A visual inspection and functional test will be performed prior to disassembly.

(e) The PVA Team will review the shop travelers, production processes, procedures, tooling, and equipment used to overhaul the item being audited for adequacy and conformance to the contractual requirements. The PVA will include verification through objective evidence that all of the inspection, testing, measuring and diagnostic equipment used in the inspection/test of the PVA candidate are maintained in accordance with applicable calibration standards.

(f) Disassembly will be performed in an area accessible only to audit personnel. Normally, audit participation will be limited to specified production and quality assurance personnel of the contractor activity, the cognizant government Quality Assurance Representative (QAR), and the AMRDEC PVA Team Chairman and team personnel.

(g) Visual inspection, dimensional checks (such as backlash, end clearance, running clearance, etc.) and nondestructive testing are accomplished during and after disassembly IAW applicable technical directives. Findings are recorded for comparison with historical data and conformance evaluation. A 100% inspection (or as set forth in relevant specifications) of all physical characteristics, to include but not limited to, any dimensions, certifications for materials, processes and/or procedures, as well as any other requirements which may be set forth by other applicable specifications, or in any procurement packages, technical drawings. Depot Maintenance Work Requirements (DMWRs), Maintenance Engineering Orders (MEOs), and/or any other special/functional testing as set forth in this contract.

(h) Applicable accessories and components will be functionally tested and inspected to contractual/work specifications. The PVA team will review subcontractor certifications for testing and inspections. At the request of the PVA Team Chairman, processes (such as shotpeening, heat treating, etc.) performed by subcontractors will also be audited. Contractor shall be able to demonstrate that all testing, inspection procedures, and acceptance methods are documented in the appropriate area of the overhaul documents, and are approved and controlled by management.

(i) The PVA item shall be reassembled and functionally tested IAW applicable specifications and made ready for government acceptance including preservation, packing, packaging, marking, and update of historical records and all applicable documentation.

(j) Conduct of the PVA will be planned in a manner that adequately allows examination/audit of all procedures involved. Each step in the process shall be analyzed to determine compliance to specifications. It may not be logical or possible, due to time constraints, to track the same item throughout the PVA; therefore, at the AMRDEC PVA Team Chairman's discretion, examination of representative assemblies amy be used as evidence of compliance to specification requirements. The AMRDEC PVA Team Chairman will determine the scope and detail of the PVA process. The AMRDEC PVA Team Chairman may delegate follow-up actions to the government QAR, when it is determined to be prudent to the PVA.

(k) During the course of the PVA, the PVA Team Chairman may request progress meetings to provide status to the contractor. After the PVA is completed, the AMRDEC PVA Team Chairman will conduct an exit critique attended by all concerned contractor personnel and the cognizant government QAR. The context of the audit findings and corrective actions will be discussed and any disputes will be resolved. Findings, classifications, and corrective actions will be discussed and determinations made as to cause of defect established (i.e., workmanship, tooling, technical requirements, etc.). The contractor's management personnel shall take immediate action to correct and preclude recurrence of all defects attributable to failure to comply with requirements.

(l) All defects will be recorded on the AMRDEC PVA Audit Finding Record by the PVA Team. The PVA Team Chairman will provide copies of each Finding to the contractor quality assurance element and the cognizant government QAR. This will allow immediate actions to begin in the resolution of the defect. Corrective actions as well as actions taken to prevent recurrence shall also be documented on this form by the contractor. The form shall be signed, as a minimum, by the contractor's quality manager or designated representative and the AMRDEC PVA Team Chairman. Further actions outlined below pertain to specific actions required by the contractor depending on the classification of the defects.

1. Observation: In the event an observation Finding is discovered, the contractor is not required to provide a written response, but it is encouraged to do so.

2. Minor: In the event a minor defect is discovered, the following actions shall be taken:

a. The contractor shall isolate the cause of the defect and initiate corrective actions.

b. All minor defects shall require a written response addressing corrective actions taken and actions taken to prevent recurrence.

c. In the event a minor defect is a recurring deficiency, regardless of weapon system or date when original discrepancy was noted, it will be written into the report as a minor defect, but the corrective actions required below for a major defect will apply.

3. Major: In the event a major defect is discovered, the following actions shall be taken:

a. The contractor shall halt any work in progress at the responsible station until corrective action is acceptable to the PVA Chairman.

b. The contractor shall provide the QAR information reflecting the total quantity shipped, if any, and to what destination pertaining to any item that could contain the identified defect.

c. The contractor shall determine impact of the defect on products previously delivered under this contract, if any, and initiate corrective action to address those units at no additional cost to AMCOM.

d. The contractor shall isolate the cause of the defect and initiate corrective actions. All findings shall require an in-depth written response outlining corrective actions to prevent recurrence.

4. Critical: In the event a critical defect is discovered, the following actions shall be taken:

a. All actions outlined in paragraph 3 above shall be completed.

b. Upon request, the contractor shall provide the AMRDEC Aviation Engineering Directorate technical information necessary for the issuance of a Safety of Flight Message or Aviation Safety Action Message to the field (if necessary).

c. Government acceptance/release of product will cease immediately until corrective actions are acceptable to the contracting officer.

NOTE: Systemic quality and overhaul process discrepancies that affect the outcome of product(s) outside the scope of the PVA will require the cognizant QAR to issue a Corrective Action Request.

(m). Upon completion of the disassembly and testing portion of the selected PVA candidate, without finding any critical or major defects, the other two completed candidates will be released as PVA candidates. In the event that a critical or major defect is found in the audit candidate, the contractor shall satisfy the PVA Team Chairman that such a defect does not exist in the other 2 PVA candidates prior to acceptance, and effective corrective action has been initiated to preclude reoccurrence of the defect.

(n). The contractor shall prepare and forward, through the cognizant government quality element, finalized audit reports within ten (10) working days after completion of the PVA to Commander, U.S. Army Research Development and Engineering Command, ATTN: QSContracts@amrdec.army.mil, Redstone Arsenal, AL 35898-5000 and the Acquisition Center address as shown on Order 0001. (In the event reorganization changes this address, the contractor will be notified of the new, correct address by the CO). The report shall include:

Objections, accompanied with explanations, on any audit finding(s) shall be specifically annotated and forwarded to AMCOM for resolution. Objection by the contractor as to the existence of a defect or as to its classification will be resolved by the PVA Chairman. Further non-concurrence will be referred to the PCO for final resolution IAW the clause entitled "Disputes" as stated in the contract.

(o) The AMRDEC PVA Chairman will acknowledge receipt of the Final Audit Report and complete the following within 10 working days of receipt:

(p) The PVA unit is to be representative of the deliverable quantity. The Contractor shall overhaul both the PVA item and the contractual quantity at the same facility. In the event that there is a change to the process planning (i.e. changes in process sources, parts sources, or location where work is to be performed) after approval of the Final Audit Report, the contractor is required to provide notification of such changes to the CO, so that a determination can be made whether a new PVA is warranted. Notification is required 10 business days prior to shipment of the next delivery.

(q) The PVA candidates shall be shipped IAW contract delivery schedules or released to supply activity upon acceptance of the Final Audit Report. The Contractor SHALL NOT retain the PVA item approved under this contract to serve as the manufacturing standard of acceptance.

(r) If the Contractor fails to deliver any PVA on time, or the Contracting Officer disapproves any PVA, the Contractor shall be deemed to have failed to make delivery within the meaning of the Default clause of this contract.

(s) Before PVA approval, the acquisition of materials or components for, or the commencement of overhaul of, the balance of the contract quantity is at the sole risk of the Contractor. Before PVA approval, the costs thereof shall not be allocable to this contract for (1) Progress payments, or (2) termination settlements if the contract is terminated for the convenience of the Government.

(t) In cases where this PVA is a part of the Source Approval Request (SAR) process, the process planning will be considered approved upon receipt of an approval memorandum from AMRDEC Aviation Engineering Directorate (AED). If the component is a Critical Safety Item (CSI), see those specific contract clauses for other requirements that may also be audited during the PVA. PVA approval is contingent on contractor submission and AED approval of changes to manufacturing planning, to correct defects identified during PVA.

(u) Unless otherwise specified in this contract, any end item destroyed or exceeds reparable limits during the PVA process is not to be considered as part of the contract quantity. The full quantity of acceptable and serviceable items must be delivered.

CALIBRATION

The calibration of Test, Measurement and Diagnostic Equipment shall be in accordance with American National Standards Institute/National Conference of Standards Laboratories (ANSI/NCSL) Z540-3-2006 (General Requirements for Calibration Laboratories and Measuring and Test Equipment) or ISO 10012:2003 (Quality Assurance Requirements for Measuring Equipment). Terminology shall be as defined by International Organization for Standardization (ISO) 8402, Quality Management and Quality Assurance - Vocabulary.

FLIGHT SAFETY PART SUPPLIER INTERFACE AND OVERSIGHT PROGRAM REQUIREMENTS

This contract is for a Flight Safety part (FSP) and requires special controls as identified in Quality Engineering Standard (QE-STD-1).

In addition to the QE-STD-1 requirements, the contractor shall comply with the following:

a. The Contractor shall prepare manufacturing planning documentation in accordance with paragraph 6.1 of QE-STD-1 and DI-MISC-80508A. Any Contractor recommended changes to the manufacturing planning documentation which affect critical characteristics shall be approved by the Government. The Contractor shall not implement any process changes which affect critical characteristics without prior Government approval.

b. Written notification shall be given to the Procuring Contracting Officer (PCO) as soon as possible but at least 30 days prior to first delivery indicating the time frame when the parts being procured under this contract will be actively in production in order that a Supplier Interface and Oversight Program (SIOP) on-site review can be scheduled if such a review is determined by the Government to be necessary. The Contractor will cooperate with and allow the Government to conduct a SIOP on-site review (1-3 days typically) while the parts are actively in production. This review may also require site visits to critical process subcontractors. The purpose of the SIOP on-site review is to thoroughly review manufacturing processes and documentation for FSP and provide feed-back and direction regarding the FSP program.

NOTE: Some of the personnel that support the SIOP program (e.g. evaluate manufacturing planning and participate in the SIOP onsite reviews) are employees of the U.S. Army Aviation and Missile Command (AMCOM) programmatic and technical services support contractors employed under the AMCOM Express Program. AMCOM's Directorate for Aviation Engineering (AMRDEC) will, within thirty days of contract award, identify the programmatic and technical services support contractors who may be involved with this contract and may require access to your company's proprietary data (e.g., frozen manufacturing planning) and facilities in performing their duties. Since these contractor personnel are not Federal employees, they will be allowed access only if a Non-Disclosure Agreement (NDA) between their employer and your company has been established. A standard NDA will accompany the AMRDEC notification. If a NDA with the identified support contractor has not been entered into by your company, sign and submit the NDA with the frozen manufacturing planning to the PCO within thirty days of contract award. If there are objections to the NDA or the terms or conditions thereof, contact, in writing, the PCO within 10 days of receipt of the AMRDEC notification so as to allow sufficient time for a mutually acceptable arrangement be reached.

DELIVERY SCHEDULE

(a) The Contractor agrees to accept the MINIMUM quantity of reparables immediately upon issuance of a contract/delivery order(s).

Input of the reparables by the Government and output of the completed items as specified in Section B, shall be accomplished in accordance with the following schedule:

The Government reserves the right to award under either the required delivery schedule or the proposed delivery schedule, when an offeror offers an earlier delivery schedule than required above. If the offeror proposes no other delivery schedule, the required delivery schedule above will apply.

The delivery schedule for all data and reports is as specified on the DD Form 1423, Exhibit A.

DELIVERY OF ADDITIONAL QUANTITIES

Additional quantities of Item 0002 up to the maximum quantity specified in Section B, if and when ordered in accordance with delivery order procedures, shall be delivered at a maximum monthly rate of 20 each per month commencing 261 days after receipt of reparables.

Additional quantities of Item 0006 up to the maximum…