The intent of the symposium, more specifically, was to discuss how government involvement in contract aircraft repair can impede contract performance as measured by flow days and cost. The government roles under consideration covered a broad spectrum, from the definition of contract requirements to the support of contract execution. Because matters internal to the contractors themselves are out of the scope of this project, the topics of the discussion were limited to only those items that have government involvement and can be addressed in process analysis from the government side, particularly the ALCs

The results from this discussion was a list of common contractor issues---each playing a significant role in determining the flow time, cost and quality of contract PDM activity.

This list of issues formed the foundation of the project study, but because the time and funds for the CAR project are limited, the scope must also be limited. The next task of the team was to develop a strategy to best use the time available to the greatest possible results. To that end, it was necessary to:

• Combine issues where practical
• Omit those that fall outside of the original project scope
• Prioritize the issues in terms of cost and flow day impact
• Identify the issues that are common across all contractors

The issues provided by the contractors in the symposium that were worthwhile and "fixable" fell into two general groups, referred to here as "Direct Flow Issues" and "Indirect Flow Issues."

Direct Flow Issues--these are any problems that arise during normal PDM work that causes a flow day increase and require government assistance to obtain resolution. The issues selected for analysis, that the team designated as "direct flow issues", are:

• Part Needs (stumble-on, critical)
• Engineering Support
• Quality Support
• Over and Above (funding negotiations and approvals)

Indirect Flow Issues--these are issues that create an environment of uncertainty in production flow, and therefore incur a time and dollar cost to the contractor that is ultimately passed on to the government. Issues identified as "indirect flow issues" are:

• Unlevel Workloads
• Wide Bid Ranges
• Organization

b) Exchange vs. full price

Problem: The MILSTRAP system does not respond fast enough to avoid work stoppages due to part shortages. The lead time to check the availability or status of a part takes at least 3 to 5 day and can be as long as 10 to 14 days. In order to reclaim those valuable lost flow days, either the existing system must be modified or a new system must be put in place.

Vision: The optimal solution is to have all required parts anticipated and on-hand when needed by the mechanic. Since many part needs cannot be anticipated, wasted flow time could be eliminated with a system that would provide part availability and/or status within 48 hours of the request. Another remedy would be a contract clause permitting the contractor to procure needed parts when they are unavailable in a time frame to accommodate the schedule. Providing the contractors with one place to get parts--a Contractor Logistics Readiness Center--would also reduce the time required to obtain needed parts.

Problem: The economic order quantities of many parts often require the contractor to place a heavy inventory investment. When a contract quantity is less than that anticipated by the contractor, these inventories become a sunk cost that adds to the contractor’s overhead and ultimately to the government’s price.

Vision: A mechanism is needed in the contracting process to allow the contractor to sell unused inventories to the government.

2. Lack of Consistent Input (Level Work Loads)

Problem: Efficient depot level work depends heavily on a consistent, level workload. Delays and interruptions to this workload incur cost at the facility and manloading levels, as well as inherently adding flow days to the cycle. In addition, a large bid range on contracts requires contractors to anticipate a number of work scenarios. Unanticipated over and above work such as TCTOs also create scheduling problems.

Vision: An increase in the accuracy and dependability of the government’s estimates on quantity, schedule and over & above would translate directly into flow day savings. The only way for programmed work to be performed in an efficient and effective manner is for a stable schedule to be in place.

3. Multiple Tiers of Decision Making Authority

Problem: Many different government agencies are involved with various aspects of the Contract Aircraft Repair process. In unpredictable situations such as work/ no work, over and above, cannibalization and price negotiations, flow days increase as the different government organizations are brought into the process.

Vision: A single representative or point of contact for an aircraft would expedite the decision-making process from the government side. An additional benefit would be that some perhaps inter-related problems with an aircraft during the repair cycle would be handled by the same individual.

Problem: The government places constraints on how much profit a contractor can make on a given contract. While it is true that flow day reduction (and consequently cost reduction) on the part of the contractor increases the probability of winning and retaining contracts, it at the same time reduces revenue and profit. A contractor that is currently filling its capacity with work has no real reason to find ways to out-perform the contract.

Problem: The government provides quality assurance at most work levels, frequently causing delays and even repeated processes for the sake of a "witness" inspection. Because operations are many and government inspectors are few, flow days are increased to accommodate the government inspection requirements.

Vision: Quality requirements should not be eliminated, but rather performed in a manner that does not have an appreciable effect on productivity. Where practical, commercial quality practices should be adapted such as ISO 9000. Contractors should be certified by the government to verify work that is not safety-of-flight related, with the stipulation that an abuse of those responsibilities results in de-certification. Home station inspections--typically performed by the aircraft owners--could be carried out at the contractor’s facility and shorten the aircraft acceptance process.

6. Government Furnished Equipment vs. Contractor Furnished Equipment

Problem: Both GFE and CFE have their advantages and disadvantages, mostly dependent on the contract situation and the assets of the contractor. On one hand, GFE can limit the capability of a contractor that has already invested in equipment. On the other hand, GFE can allow smaller contractors to participate in contract aircraft repair without prohibitive equipment investments.

Vision: All GFE that is available for a contract should be made known and available to the contractor, and the contractor should make the choice whether or not to use the GFE.

Problem: The administration of aircraft repair contracts requires the flow of information from the government to the contractor and from the contractor to the government. This data includes material and equipment needs and availability, schedule information and performance reports. The lack of standards in format and communication makes information transfer a cumbersome process. Untimely information causes inefficiencies in the contract maintenance that can result in increased flow days.

Vision: Develop a set of standards by which contractors and the government can exchange data and reports in an automated fashion. This will make the process more responsive and efficient.

Problem: A source of frequent contract cycle interruption is lack of funds. Not all contractors are able to capitalize the contract effort when funds are unavailable. In addition to normal funding shortfalls, over and above activities--which are largely unanticipated--are not usually funded immediately. The government also requires many labor and material accounts to track expenditures for reporting purposes. This adds constraints to the contractor and inhibits the flexibility of resources.

Vision: Contracts should be funded up front for the entire contract cycle, as far as government budgeting restrictions will allow. Historical PDM activities should be used to predict with greater accuracy the over and above activity. During the contract aircraft repair process, all costs should be captured and assigned to the appropriate costing categories to be used for the government reports after the fact.

9. Common Processes Across Various Contracts

Problem: Contractors frequently engage in contracts from varied customers, whether they be different air wings or different services altogether. Since these customers are to a degree independent from one another, there are often different versions of procedures and requirements for performing the same tasks. These differences can incur a significant cost on contractors, especially when facility requirements are involved.

Vision: Standardization of common procedural practices and requirements where possible would eliminate this added cost to the contractor, which is ultimately passed on to the customer. The standards of real significance would likely be across services.

10. Inapplicable Contract Clauses

Problem: Over time, many standard contract clauses are superseded by other policies or made obsolete by technological advances. Many obsolete clauses remain in current contracts, adding process time to the aircraft flow and cost to the PDM.

Vision: A "hit-list" of inapplicable clauses should be drawn up to be referenced during contract development, or a blanket waiver against these clauses should be put in place to provide relief from the requirements.

11. Exhaustive, Complex CDRLs

Problem: The CDRL in a contract outlines reference material (procedures and specifications) that have a cost and time impact on contract performance. In most cases, these reference materials are necessary to ensure quality and conformity; but many times the same material imposes requirements not intended by the customer. The generic nature of many specifications does not take into consideration limited applications of itself and provide exceptions accordingly.

Vision: Specifications and standardized procedures that are suspect for being non-value-added should be noted for negotiation or elimination from the CDRL. In addition, CDRL’s should avoid "chain" specifications--those in which one specification references another, which references another, and so on.

12. Level of Engineering Capability/Support

PROBLEM: There are several levels of engineering support involved in contract PDM. The contractor has his engineering capability as does the DCMC representatives. However, the major engineering support comes from the ALC. Of course there is also the manufacture engineering support when required. This creates some duplication of effort and sometimes delay the decision making process in effecting repairs to aircraft undergoing PDM.

VISION: A program by which the engineering capability at a contractor facility could be certified to perform some of the government engineering functions thus reducing the interruptions to the schedule. There is a similar delegation of engineering authority in the FAA by use of a Designated Engineering Requirement (DER) license.

Appendix E

E-2. The Contractor Site Visit

C.J. Phillips Director, PEMCO QA Tim Annis WR-ALC/LBP

Terry A. Parker DCMC PEMCO Doris Wood DCMC PEMCO

Ed Humphreys C-130 SPO (MTC) Carol Thomas DCMC PEMCO

Joel Murphy F-15 SPO LFPL Patricia Curry DCMC PEMCO

Bill Landers PEMCO Robert M. Erhart DCMC PEMCO

Jerry Strickler PEMCO Marie Linder DCMC PEMCO

Franklin Kee WR-ALC/LJK Ron Harlow Intergraph

• The implementation of government quality programs can be altered to reduce interruptions to PDM production time.

• Quality inspection points are assigned to approximately 20 percent of work tasks.

• Shifting all quality oversight -- especially testing -- to the contractor would be cost prohibitive.

Appendix F

ALC PERSPECTIVE

In order to capture the ALC perspective of the CAR process, teams were established for "As-Is" modeling of the identified CAR issues. The objective of these "As-Is" sessions was to completely document and detail the steps of the assigned process and to identify any constraints that affect it.

Tuesday, April 9, 8 AM to 2 PM

Jimmy Rogers WR-ALC/FMIC

Flo Crane WR-ALC/LBR

Tammy Phelps WR-ALC/LBR

The part's procurement process for contract aircraft repair can be described as three independent sections:

• Part Requisition--the process by which a parts need and the urgency of that need is made known to the government.
• Part Acquisition--the process by which a part is identified to fill the requirement.
• Part Delivery--the process by which the part identified is delivered to the contractor.

For the purposes of this study, the part requisition and part delivery processes were analyzed. Ideally, part requisition time should be reduced to near real-time, or at worst, a matter of hours, to be considered a truly responsive process. Part delivery time should be reduced to packaging time (if required) plus shipping time. Today, the part requisition process takes 3 to 5 days, and the part delivery process takes shipping time plus packaging time plus 2 to 3 days.

There are several reasons that a part need can arise during PDM activity. One reason is an inaccurate bill of materials (BOM), which is a parts list for the anticipated work to be done. Another reason is unanticipated repair, otherwise known as over and above repair. There is always a price to pay for not having parts on hand when they are needed. Sometimes that price is in flow days, as is the case when the operation needing a part is on the critical path of the schedule; sometimes the price is in production efficiency as schedules must be changed. The most desirable result from change would be to eliminate unanticipated part needs by doing things like increasing the BOM accuracy and forecasting repair needs better, but there will always be some level of unanticipated part needs.

A request received from M024 is passed to D034, which makes a validation check on the request data. After that validation is passed, the request is forwarded to the SOS (Source of Supply) system. Once the request is registered with the SOS system, it is sent back to D034 to validate for a second time the same information validated earlier. Upon successful validation, the request is returned to the SOS system at which time it is available to be filled. All of this request processing would not be a problem in terms of process time was the computer systems carrying out the tasks operating in real time. However, these systems run in overnight batch mode--meaning that each step requires a full day to complete. Two extra days can be added when this process is attempted over a weekend because the systems do not operate on weekends. This constraint on the part requisition process causes a typical response time of 3 to 5 days just to place an order or receive a status.

After a part has been identified to fill a requisition, it must be shipped to the contractor. A requisition is delivered to the warehouse as a DD Form 1348-6, and the warehouse workers fill the 1348-6 by shipping the item identified to the contractor requesting it. Some items are pre-packaged off the shelf, and some are not. Time is required to package those items for delivery that are not already packaged. All items leaving the warehouse (by truck) are logged into a record of shipment.

• Upgrade the parts requisition to process requests in real-time as opposed to overnight batches.

• Find ways to maximize the alternatives available to contractors for procuring parts both commercially and through government sources.

• Allow contractors to purchase all material (CFM) using the government as a purchasing source.

Wednesday, April 10, 8AM-12 AM

Franklin Kee LJK

Margie Tyner LBKA

Charlie Brundage LBPL

Work done on aircraft during PDM can be divided into three categories:

• Planned repair--items that are known about and scheduled for repair before the aircraft arrives at the contractor’s facility.

• Fixed-price over and above repair--items that are not known about before the aircraft arrives at the contractor’s facility, but are common enough to have the repair standardized in procedure and price.

• Negotiated over and above repair--items that are not known about before the aircraft arrives at the contractor’s facility, and are either uncommon or of unpredictable scope requiring negotiation.

As part of the PDM contract, 20 days are allotted for the repairing contractor to perform an inspection of the aircraft. The purpose of this inspection is to uncover items in need of repair that are outside the scope of the PDM. An inspection list is maintained by the government on those items to be inspected. It is estimated that 70-80 percent of unanticipated repair items are discovered during this inspection.

It is the view of the above group of people that the performance of the over and above process seldom impacts the flow days of the aircraft, because: (a) over and above items are almost never on the critical path (can be performed concurrently with PDM) and, (b) the contractor must demonstrate sufficient capacity to perform over and above concurrently with PDM to qualify for the contract.

• Find ways to move as many repairs as possible from the negotiated over and above category to the fixed-price category.

• Provide a checklist to the contractor of suspect parts and aircraft areas to increase the probability of locating repair needs during the "shake down" inspection.

Wednesday, April 10, 1 PM to 4 PM

Hugh Nelson LBRA John McDonald LBRA

Jim Harper LBRA

Engineering support is provided to contractors when technical assistance is needed during the course of PDM activity. For the most part, engineering support requirements do not have a direct impact on the flow time of an aircraft, except when a "stumble-on" repair item is discovered near the end of the PDM schedule.

The discovery of a "stumble-on" repair item triggers three concurrent processes:

• Acquisition of the part(s) needed for the repair.
• Over and Above negotiations to fund the repair (if not fixed-price repair).
• Engineering support for technical guidance (if repair is not in tech manuals).

When any repair is to be done that falls outside the scope of the negotiated PDM contract or has no standardized procedure, an approved procedure is required to ensure that the repair is performed to design specification. Many times, the repair has been standardized and is documented in the technical manuals for the aircraft. In this case, the contractor need only log the occurrence of the repair item back to the ALC and follow the technical manual procedure. When the repair required is not documented in the technical manual, the contractor must seek guidance and approval from the controlling ALC to perform the repair.

Liquidation, Loss and Damage (LLD) is a penalty charged to the contractor for PDM delinquency. It is not designed as a punitive measure, and is of little economic consequence.

• Develop a certification program by which contractor engineers can make engineering dispositions and repair procedures that require only notification instead of approval.
• Review the reparable policy to determine if contractors could make minor part repairs as opposed to submitting a failed part to the repair cycle and having to wait for a replacement.
• Automated discrepancy review (remote teleconferencing)

Thursday, April 11 8 AM

Joel Murphy LFPL Keith Barrett LUHB

Denise Yawn LBPLC Carol Thomas LUJP

Jenny Thompson LKSA Robert Bailey LBPL

Outyear scheduler--long range schedules

Current year scheduler--current year

Both get inputs from the aircraft owners (Guard, Reserve, Air Combat Command, Air Force Special Operations Command, Pacific Air Force, USAF Europe, Air Command Training Center, AFMC). The units have additional inputs.

The Technical Order requirements for an aircraft determines the PDM window.

Drop-In Aircraft--Non-scheduled repair (unprogrammed depot maintenance) that cannot be done in the field or by field personnel

Aircraft PDM cycle

Weapon System Specialties

AFMC directives to fill organic facilities

Contracts

When a PDM schedule is being negotiated, an initial inquiry is sent to both customer and contractor, asking for a recommended delivery schedule. Those two inputs are put together for the schedule, with the customer’s needs taking priority.

The main issues voiced by the contractors at the contractor symposium concerning workloading were:

• Uneven workloading
• Large bid ranges
• TCTOs
• Timeliness of customer requests

• Provide the contractor with a fixed schedule for the current year.
• Solicit PDM bids with a pricing schedule for various quantity ranges.
• Implement a significant monetary reward/penalty for flow days saved/overrun.

Appendix G

CAR FROM THE CUSTOMER’S PERSPECTIVE

On June 4, 1996 a Contract Aircraft Repair (CAR) Customer symposium was held at the Non Commissioned Officers Club at Robins AFB. It was important to gain an understanding of the aircraft owner's (the warfighters) perspective of contract aircraft repair to ensure any recommendation's were in keeping with their goals. The CAR team also needed to get buy-in since some of the recommendations being contemplated would require some commitments on the customers part.

Bobbie Hester HQ AFSOC/LGRF 579-1505

Capt. Robert McCrory HQ AMC/XPQL 576-3471

Maj. Steven Hack HQ AFSOC/XPQL 579-1696

MSgt. Sue Norwood HQ ACC/LGRC 574-7571

CMS Doug McCorkle ANG/135 LGQ 243-6332

Capt. McPartland ANGRC/LGMA 278-8962

Lt. Col. Charles King ANGRC/LG-LL 278-8498

Lt. Col. Jennifer Dieckmann HQ AFRES/LGMA 327-1624

Capt. Spillane HQ AFSOC/LGMW 579-2342

James Harper WR-ALC/LBRA 468-7980

Hugh Nelson WR-ALC/LBRA 468-2716

John McDonald WR-ALC/LBRA 468-2656

Keith Barrett WR_ALC/LUHP 468-1844

Florine Crane WR-ALC/LBRA 468-9884

Denise G. Yawn WR-ALC/LBPLC 468-5175

Melvin Gillis 78ABW/LGTPL 468-3892

Chuck Gibson AFRES/LGM 468-1790

Roy Abbott WR-ALC/RE 468-1274

Cosma O’Bryan WR-ALC/LBR 468-4985

Col. Mansfield WR-ALC/RE 468-1274

Tim Annis WR-ALC/LBPM 468-2080

Col. Siegel WR-ALC/LB 468-2322

Ed Humphreys MTC 468-7205

Mike Denson Intergraph 205-730-3142

Ron Harlow Intergraph 205 730-3125

To stimulate discussion the team shared results of the "AS-IS" model and simulation and outlined the major focus areas for possible improvement for meeting the cost, flowday and customer satisfaction goals.

WORKLOADING--The customer understood the importance of providing a contractor with an economic workload and with establishing a known requirement. This included balancing the workload among all facilities. In fact, the customers expected the ALC to do these things and to get the best value for their repair dollars. It became apparent that the customers weren't concerned about where their aircraft were worked (organic or depot). The CAR team did get some commitment from the customer that they would work with the ALC to identify requirements as far in advance as possible and reduce as much as possible "surprise " workload.

SCHEDULING--While all customers agreed that reduction in flowdays was desirable, they were also interested in having a greater degree of predictably on output dates. Having a high degree of confidence in the output dates is a tremendous help as they do their mission planning. Consequently, they were very amenable to establishing a firm input schedule if it would enable the contractor to maintain a predictable output schedule. They further committed to working with the ALC at scheduling conferences to establish tail number specific input dates.

PARTS SUPPORT--The customers were in agreement that lack of parts had impacted flow days on their aircraft undergoing depot repair. They supported the CAR team recommendations for improving parts support for the contractors. They did express some concern over allowing contractors to buy critical parts fearing they might get inferior ones in order to meet schedule or hold down costs.

OVER AND ABOVE--The customers recognized over and above was a fact of life for aircraft PDM. They also recognized the need to eliminate it as much as possible and identify the required work as far in advance as possible. There was some discussion about the possibility of putting a customer representative at the contractors plant to assist in making work/no work decisions but most of the customers believe that they didn't have the manpower to do so. The customers did have a desire to have visibility into what items were being worked and what it was costing them. As the discussion continued the consensus was that the ALC was needed to improve the Over and Above process. The customers were receptive to looking at ways they could help reduce the burden of over and above.

ENGINEERING SUPPORT--When asked what they thought about giving the contractor more engineering authority, the customers were universal in their opinion that the ALC should not relinquish it. They seemed to be satisfied with the present process but did want us to explore ways to reduce the negative impact it had on flowdays.

QUALITY--The customers felt strongly that receiving a quality product from the contractor was paramount. Because of the criticality of the work being performed, anything less than first rate quality was unacceptable. Their was some sentiment that quality had generally gone down--not up. The customers insisted that quality needed to be a priority for the contract and that unresponsive contractors needed to be weeded out.

USING BLUE SUIT LABOR--The customers were unanimous in their opinion that we could not consider pushing any work back to the field. Even though it would save costs they are severely limited with manpower resources at the base level.

BREAKING THE PDM INTO MORE FREQUENT YET SMALLER DOWNTIMES--The customers were unconvinced that any change in the current PDM cycle would be beneficial. They preferred less frequent but longer downtimes. Fear was that input preparation costs would outweigh any other potential savings.

1. Predictability of output dates is just as important (if not more) to the customer than reducing cost and flowdays.
2. A QUALITY JOB is a given in their mind!
3. Customers expect the ALCs to get them the most value for their dollars.
4. Generally, customers are not concerned about whether their PDM is performed at an organic facility or at a contractor facility.
5. Customers are willing to "stick to" an input schedule.

Appendix H

COMMERCIAL COMPARISON

On May 16, 1996 the CAR team visited Federal Express Corporation (FedEx) in Memphis, Tennessee to perform a benchmarking analysis.

Federal Express is the world’s largest express transportation company, employing 110,000 people worldwide and earning $9.4 billion in revenue for fiscal year 1995. One of the most important resources FedEx has is a fleet of over 500 aircraft. Eight different airframes comprise this fleet and each aircraft is regularly serviced for maintenance over pre-determined intervals. FedEx has the majority of this work performed on contracts. Although there are some marked differences between FedEx and the Air Force between the types of aircraft and the characteristics of the missions flown, enough similarities exist to draw comparisons for the CAR process.

For comparable PDM activity, FedEx achieves much better performance from its contractors than does the Air Force. For nearly the same cost, FedEx contractors perform similar depot overhauls using only one-fifth the flow days with virtually no schedule slippage’s. The FedEx representative attributed this performance for the most part to a partnership philosophy.

WR-ALC CAR Lean Logistics Team Meeting with:

Tom Bodamer, Federal Express Headquarters, Memphis, TN

Thursday, May 16, 1996

Tom Bodamer, FedEx Ed Humphreys, Modern Technologies Corp.

Tim Annis, WR-ALC Ron Harlow, Intergraph Corp.

Franklin Kee, WR-ALC Mike Denson, Intergraph Corp.

The purpose of this meeting was for the Air Force to gather insight on FedEx’s contracted aircraft repair process. The findings of this study are to be used solely to enhance the efficiency of contracted repair of Air Force aircraft. The Air Force appreciated the candor of FedEx in the discussions regarding how the Air Force could potentially improve the efficiency of its contract aircraft repair process.

FedEx was founded in July 1972 in Little Rock (sending letters), collapsed, and refounded with extended services (sending bulk packages) in Memphis in 1973.

According to Tom Bodamer, FedEx is in the business to ship packages--not aircraft maintenance business. For example, they farm out wheel and brake repair to B F Goodrich presently on a 10-year contract. They find this cheaper than their old way of having internal wheel and brake shops at numerous locations.

FedEx inspection ranges, per plane, average:

• 12K hrs, every 5 years, on airframe routine inspection.
• 20-25K hrs, every 5 years, on airframe actual maintenance.

Cost makeup is dependent on type of work:

• For engines: 70% labor, 30 % material
• For airframe: 70% material, 30% labor

Three Current US maintenance vendors: American Airlines, Tramco, Mobile Aerospace

Some Current Overseas maintenance vendors: Korean Airlines, Varaque, Charles DeGuaelle

FedEx is serious about business process re-engineering. For example, they found that they did nose wheel repair on most of their jobs for a certain "time check" and that the mechanics were having to stop their work to locate a nose wheel or tools, accomplish paper work, etc. They moved a supply of nose wheels, tools, forms, etc. to the point of work for that inspection/repair site which saved substantial time on that endeavor. Tom Bodamer emphasized that they are always looking for ways, on internal and external maintenance, to be more efficient at the lowest level to the highest level. This is just an example of common sense business process re-engineering logic that FedEx employs on a continuing basis.

• ISO Compliant -- Had a lot to do with the receipt of Malcolm Baldridge award.
• ATA 300
• Material Spec 2000

Noteable Quote: "We found Firm Fixed Price [contracts] cuts contractors so close to the bone that they are forced to cut corners. We want a good job at a fair price. We don’t want contractors doing pencil-whipping exercises and skipping lube jobs, etc."--Tom Bodamer, FedEx.

Appendix I

Shop Service Center (SSC)

Shop Service Center (SSC). The SSC concept is becoming the standard material support function for depot maintenance. The SSC is a mini-supply storage area located in the production work area. It is an aggregate of functional components involved in providing material to mechanics, and acts as a trouble shooter for stopping/solving parts problems, if possible, before they happen. Frequently used material is physically located as close to the aircraft undergoing maintenance as practical. Unserviceable end items are also propositioned to expedite repair. The SSC is staffed by maintenance, supply, and contracting personnel to optimize material support. Some of the main responsibilities of the SSC would be:

Appendix J

EXAMPLES FROM C-130 REQUEST FOR PROPOSALS

The program objective is to provide for C-130 Program Depot Maintenance (PDM), Analytical Condition Inspection (ACI), Controlled Interval Extension Inspection (CIE), unscheduled depot level maintenance (UDLM), modification, flight test, and preparation for delivery of C-130 type aircraft in a serviceable and safe but not like new condition.

Reduce and minimize C-130 PDM flowtime to less than 100 days beginning with the fourth and subsequent PDM aircraft in an affordable manner. Minimize the variation between planned and actual aircraft delivery commitments.

Accomplish drop-in maintenance on C-130s without impacting the schedule of PDM aircraft.

Effectively research, requisition, purchase, receive, store, ship, and issue materials in support of PDM and in order to avoid PDM delays, while minimizing the amount of GFM stored by the contractor.

Maximize use of proven, and cost effective alternative maintenance procedures and processes, commercial/industry specifications and standards, and materials in place of government specifications, standards, and Technical Manuals (TO).

Implement and maintain a quality assurance program that tracks scrap and rework, ensures control of U.S. Government property, and material, ensures that work is done in accordance with the contract and applicable technical data, ensures proper calibration of test equipment, ensures appropriate corrective action of nonconforming material, and allows use of contractor’s inspection equipment by the U.S. Government’s representative.

Implement a safety program to protect government resources and personnel.

Compress and accelerate the production schedule.

Implement and maintain a security program to prevent random entry into the contractor's PDM/UDLM facilities by unauthorized personnel, to react to emergency situations, to prevent unauthorized removal of GFM, and to protect government personnel and property.

Implement a corrosion control program that maintains corrosion prevention and control during depot maintenance.

Implement a Hazardous Material Management and Pollution Prevention Program, that integrates all pollution prevention efforts including the flow down requirements to associated contractors, sub-contractors, and vendors that meets the local, state, and federal laws and regulations and complies with all U.S or applicable foreign country environmental requirements as outlined in the RFP.

Use electronic reporting whenever possible.

The management objective is to allow the offeror the maximum flexibility to innovatively manage the program schedule, performance, risks, warranties, subcontracts, and data to produce an aircraft that satisfies the governments requirements. Another objective is to maintain clear government visibility into program schedule, performance, and risk.

The Contractor and the government shall work together in partnership to work and resolve problems and issues.

Appendix J

EXAMPLES FROM C-130 REQUEST FOR PROPOSALS

J-2. EXTRACT FROM SECTION L OF C-130 PDM CONTACT RFP

1.0 Offerors shall submit technical proposals in six (6) hard paper copies separate from the pricing proposal and other portions of the solicitation. The offeror shall also deliver one copy of the proposal on 3.5" 1.44MB HD virus free computer diskettes or a 120MB virus free mini data cartridge tape compatible with the Colorado Backup system. The diskettes shall contain as much of the offeror’s proposal as possible. The diskettes shall have directories for each volume of the proposal and sub-directories as required. Files on the diskettes shall be clearly named and easily identifiable. The files shall be compatible with either a MS Word version 2.0 through 6.0 or a MS Excel version 2.0 through 5.0. The offeror shall make no reference to price in the technical portion of the offeror’s proposal.

1.1 Offerors may submit more than one proposal. The face page of the technical proposal shall identify which requirement is being proposed (e.g., CONUS/Canada, PACAF, USAFE). The offeror shall not duplicate any portion of the technical proposal. If multiple proposals are submitted, any identical information shall be cross referenced in the offeror’s proposals. Technical proposals shall be submitted in six (6) volumes in accordance with the information requested and in the format set forth below. The offeror’s proposal shall be typed, one and a half spaces, with a maximum of twelve characters per inch, on 8-1/2" x 11" bond paper. The total pages submitted shall not exceed 366 pages excluding the following areas which have no page limit: The Safety Plan identified in Volume 5 and Alternatives identified in Volume 6. Environmental information identified in Volume 5 is also excluded from the page count except for the Hazardous Material Management Plan (HMMP) which has a recommended 15 page limitation. The page limits listed for each volume are recommendations only. Pages submitted in excess of the 366 total page count shall be returned to the offeror without being evaluated. The offeror shall submit maps folded to 8-1/2" x 11". Each map will be counted as one page. No narrative shall be submitted on the maps except for identification and size of the facilities or plant layout. Offerors may submit a cover letter not to exceed four pages. Title pages and Table of Contents/ abbreviations shall not include any narratives and will not be considered in the total page count.

1.2 The offeror shall fill in block 5 on all CDRL’s (DD Form 1423) stating the offeror‘s proposal or SOW reference for each CDRL.

1.3 The offeror shall submit a requirements cross reference matrix that cross references the PDM specification, offeror’s SOW, CDRL, Section L, Section M, Attachments 9, 12, 13, and clause H-906 of the RFP; and any other requirements in the offeror’s proposal. If this matrix conflicts with any other requirement, the other reference shall take precedence over this matrix. Section M references in the matrix are for information purposes only. The Government will evaluate proposals solely in conformance with the provisions of Section M of the solicitation. The offeror’s matrix may have additional necessary requirements to fully explain the proposal and to show how all requirements shall be met. The matrix shall have a format similar to the one shown below. A copy of this matrix shall be put in front of Volumes 2,4,5,6, and 7.

PDM SOW OTHER OFFEROR’S

SPEC PARA CLIN CDRL SEC L SEC M REQ PROPOSAL REF

XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXX

2.0 VOLUME 1 shall contain the offeror’s proposal to meet to the Minimum Mandatory Requirements (MMR) as stated in RFP Attachment 12. The offeror shall provide a response to each individual MMR. For the MMRs not listed below, the offeror need only provide affirmation of meeting the requirement or an explanation of when and how the requirement will be met. The MMRs listed below will require the information identified. The recommended Volume 1 page limitation is 25.

2.1 MMR 4 - Submit a brief description of the depaint/paint hangar(s) including environmental controls, electrical wiring, ventilation, fire fighting systems, and number of aircraft that can be painted in the facility per month.

2.2 MMR 5 - Submit a brief description of ramp space to include size, pavement construction, size of shoulders, tie down grids, and clearance.

2.3 MMR 6 - Submit a brief description of ramp and hangar lighting, electricity and compressed air sources that would accommodate multiple shift operation, if needed.

2.4 MMR 7 - Submit a brief description of runways and taxiways as to construction, load bearing capability, length, width, and lighting.

2.5 MMR 8 - Submit a brief description of the control tower including operating radio equipment (type and condition) and qualification of control tower personnel.

2.6 MMR 9 - The offeror’s Safety Plan submitted in Volume 5 of the proposal shall represent a response to this MMR.

2.7 MMR 10 - Submit a brief description of the facilities and procedures used for refueling, defueling, fluid purging, fuel tank maintenance, and fuel cell foam handling, storage, and disposal to include the size of the foam storage area.

2.8 MMR 13 - The offeror’s Hazardous Material Management Plan (HMMP) submitted in Volume 5 of the proposal shall represent a response to this MMR.

9. MMR 19 - Submit a plant layout, showing those areas to be used exclusively for C-130 PDM/Mods/UDLMs and other areas to be used jointly with other programs and display these areas for evaluation purposes. Submit a scale map (1"=400’ or larger folded to 8 1/2" X 11"), showing square footage of the complete facility by individual areas to be used in performance of this contract; this shall include aircraft ramp areas, runways, backshops (heat treat, sealant mixing, shot peening/abrasive blasting, battery storage, and other backshop facilities), fuel servicing, engine run-up area, aircraft washing, aircraft stripping and painting, compass swing area, fuel and oil storage, oxygen storage, office space for government personnel, technical library(s), control tower, GFM storage, AF 2691 and USCG OPNAV 4790 equipment storage, weighing facilities, fuel cell foam storage, and aircraft component storage. Include dimensions in feet and square feet.

2.10 MMR 15 - Submit a list of the support equipment and tooling required to support the projected PDM and UDLM best estimated quantity (BEQ). The list shall be on a 1.44MB high density computer diskette and shall be readable on a Microsoft Excel 5.0 spreadsheet. Shown below is a sample format. Any contractor format will be acceptable as long as the required information is provided. Attachment 7 of the RFP is a reference listing of C-130 support equipment and tools. The quantities shown in Attachment 7 are estimates based on the BEQ of PDM and UDLM aircraft listed in the RFP.

Equipment the offeror

Possesses/has access to: If Applicable:

NSN Current Future Date Atch 7 Part

Part Number (If applicable) Nomenclature Quantity & Quantity Nr. or NSN

3.0 VOLUME 2 shall contain the offeror’s Statement of Work (SOW) and as a minimum contain the requirements listed below. The offeror’s SOW shall be written in contractually binding language. The recommended Volume 2 page limitation is 225.

3.1 The SOW shall include a listing of the appropriate compliance and reference documents which shall properly identify the revision and any tailoring. As a minimum, the offeror’s SOW shall include the compliance documents listed in the RFP, including tailoring. The offeror may propose additional compliance documents. The offeror may obtain information from reference documents, but is not required to comply with any requirement in a reference document. The SOW shall include the following statement or a similar statement under Applicable Documents: "Only those military, federal, and contractor specifications cited, down to and including the equipment/product specifications and their first-tier references shall be mandatory for use. Lower tier references will be for guidance only and will not be contractually binding unless raised to the direct cite level."

3.2 The Statement of Objectives (SOO) provides the Government’s overall objectives. The offeror shall use the SOO and PDM Specification, together with all other applicable portions of this RFP, as the basis for preparing the SOW and shall ensure all aspects of the SOO are addressed. The offeror’s SOW should specify in clear understandable terms the work to be done by the offeror.

3.3 The SOW shall include data requirements in the form of a Contract Data Requirements List (CDRL), including appropriately tailored Data Item Description (DID) references. As a minimum, the SOW shall include the CDRL and DID requirements specified in the RFP. The offeror may include additional data requirements. All data requirements shall be traceable to specific tasks defined in the SOW. Each specific data requirement shall be specified using DD Form 1423, Contract Data Requirements List. The successful offeror shall submit data in accordance with the information specified in the DD Forms 1423.

3.4 Each inspection/maintenance task in the offeror’s SOW shall list the T.O.s, specifications, standards, and manuals that the offeror proposes to use to accomplish that task. (for example, "The contractor shall correct discrepancies in accordance with T.O. 1C-130A-3, Figure 2-170.") Do not duplicate data provided in Volume 5.

3.5 Each applicable paragraph in the offeror’s SOW should be identified as either Basic, Negotiated Over & Above, Fixed Price Over & Above, or overhead, etc.

3.6 The offeror’s SOW shall include the process for identifying aircraft components removed from the aircraft to ensure that they are reinstalled on the same aircraft unless approved by ACO.

3.7 The offeror’s SOW shall include the process for reporting non-conforming hardware to the government and responding to government reports of non-conforming hardware through the Government Industry Data Exchange Program (GIDEP) or some equivalent program.

3.8 The offeror’s SOW shall describe the process used to ensure the Maintenance Data Collection (MDC), TCTO compliance and status, and repair/ replacement data is correctly and fully entered into the Product Performance Sub-system (PPS) module of Reliability & Maintainability Information System (REMIS) and the WR-ALC Program Management Support System (PMSS) on a weekly basis. The TCTO compliance and status data shall be entered into PMSS for each aircraft within 15 days after aircraft has completed work.

3.9 The offeror’s SOW shall describe the process for finding alternatives/ substitutes for deleted Government standards and specifications that may be listed in T.O.s and drawings. The contractor does not always need to replace a deleted specification or standard, but needs to state a process for doing so when required.

3.10 The offeror’s SOW shall describe the process for developing and approving SOWs for UDLM aircraft. This includes Government approval of all technical requirements and negotiation of costs.

3.11 The offeror’s SOW shall describe the process for incorporating PDM specification changes into the offeror’s SOW.

3.12 The offeror shall format the SOW in accordance with reference document MIL-HDBK-245C and as described below:

Section I - Information

Section II - Incoming Processing

Section III - Work Requirements

Section IV - Final Processing

Section V - Data

Section VI - Other

4.0 VOLUME 3 shall contain the offeror’s proposal to meet BASELINE REQUIREMENTS (BR) as stated in RFP Attachment 13. The offeror shall provide a response to each individual BR. For the BRs not listed below, the offeror need only provide affirmation of meeting the requirement or an explanation of when and how the requirement will be met. The BR listed below will require the information identified. The recommended Volume 3 page limitation is 6.

4.1 BR 13 will be evaluated by the offeror’s response to Section L, Volume 1, paragraph 2.9.

5.0 VOLUME 4 shall contain the offeror’s proposal to meet the EVALUATION CRITERIA in regard to Engineering and Logistics. The recommended Volume 4 page limitation is 30.

5.1 ENGINEERING: The offeror will be evaluated on their ability to provide engineering personnel and services in support of the maintenance requirements contained in the solicitation. To illustrate this capability, submit the following. The recommended Engineering limitation is 20.

a. Explain how engineering responds to requests for engineering assistance and the time required to respond to and answer these requests.

b. A brief description of the procedures, hardware, and software used to comply with and track the reporting requirements of this RFP.

c. A brief description of the personnel qualifications and the process for updating aircraft records and forms.

d. A description of the process used by engineering, planning, and maintenance personnel, including the time required, to access copies of engineering data and technical data.

e. A description of the process that will be used to identify and report engineering data discrepancies and missing engineering data in a timely manner to the government.

f. A description of the process that will be used to identify deviations from engineering data, to approve these deviations, and to report all deviations from engineering data in a timely manner to the government.

g. A description of the process for identifying, authorizing, documenting, and reporting deviations to applicable Air Force technical orders, DOD technical manuals, or commercial manuals. List the number of locations that officially maintained copies of technical data will be kept other than the main technical data library. On the plant layout submitted for Subfactor 1, Aircraft Production, indicate the location of these officially maintained copies.

h. A description of the system used to maintain the configuration control of all technical data associated with this effort to include how new technical data or updates and changes to existing technical data will be received, reviewed, and incorporated into existing technical data. Include the time needed to accomplish this procedure.

i. A description of the process for disseminating technical data for engineering, planning, and maintenance personnel access. In addition, how incorrect and/or incomplete technical data will be identified, documented and reported to include completing AFTO Form 22s. Include the time required to accomplish these actions.

j. A description of the engineering organization. Identify who is responsible for all reporting requirements and maintaining all engineering and technical data. Describe the process/avenue available to engineering personnel that enables them to raise engineering concerns to upper management on issues that may conflict or have an unfavorable influence on production.

5.2 LOGISTICS: The offeror will be evaluated on their ability to effectively research, requisition, purchase, receive, store, ship, and issue materials in support of the maintenance requirements in the solicitation. Submit a description of your parts/material support department to include, as a minimum, the following. The recommended Logistics page limitation is 10.

a. A general description of the parts/material support department’s size and its organizational and physical location within the company.

b. Capability in MILSTRAP requisitioning of parts/materials from the government and your ability to understand and act upon requisition status received.

c. Capability and experience finding and purchasing aircraft parts/materials from commercial sources and your ability to local manufacture assets not readily available from government sources (as limited to expense items per the Appendix B, Supply Information).

d. Procedures for receiving, storing, issuing, and shipping GFM and CAP parts/materials in a sufficient manner to prevent work stoppages in the production areas.

e. For performance outside CONUS, describe your process for shipping and tracking GFM, via your freight forwarder, from the applicable CONUS port of debarkation to your facility. Include procedures to process GFM through customs.

6.0 VOLUME 5 shall contain the offeror’s proposal to meet the EVALUATION CRITERIA in regard to the Production Plan (recommended 40 pages); the HMMP (recommended 15 pages); the Quality Plan (recommended 25 pages; and the Safety Plan (no page limit).

6.1 PRODUCTION: The offeror will be evaluated on their ability to expeditiously acquire the personnel, materials and facilities required to begin work, effectively plan and implement the work requirements contained in the solicitation and their need to subcontract or team with other firms/facilities. Submit a detailed plan which gives a proposed production start date and outlines how you plan to flow the aircraft through your facility in order to meet the proposed delivery schedule. As a minimum the following shall be addressed/ contained in the plan. The recommended Production Plan page limitation is 40.

a. Submit a milestone chart that identifies the steps required to meet the proposed production start date.

b. Show how the aircraft are to be flowed (from arrival to output) through the facility to include the number of flow days required. Identify and sequence the operations necessary to accomplish the maintenance requirements in the offeror’s statement of work and any additional work required by AFTO Form 103. Address your ability to perform major structural repairs and identify any structural components you do not have the capability to work. List the tasks that will always be accomplished in an enclosed hangar. Identify critical paths in the process and flowday milestones for each phase of the various work packages (as a minimum, receipt of aircraft, in-processing, washing/depainting, inspection, determination of material requirements, material requisitioning, correction of defects, painting, out-processing, delivery).

c. Submit a scaled plant layout (1" = 400’) of the facilities (excluding runways) to be used in the performance of this contract. Identify those areas to be used exclusively for this contract and the areas to be shared with other programs. Indicate where and how the aircraft are to be stationed for maintenance/modification both inside hangars (including paint and depaint hangars) and on the ramp which will allow aircraft to be moved without disrupting other aircraft in work, based on the maximum number of PDM and UDLM production aircraft. Provide a contingency plan for weather impacts that could cause a delay in schedule. Show the size, support equipment location, and availability of utilities relative to each work position. The physical location information shall be included on the plant layout specified in Section L, Volume 1, paragraph 2.9.

d. Indicate the number of aircraft that can be worked simultaneously in each portion of the facility (as a minimum, the number of C-130 aircraft that can be washed, stripped, painted, etc.) and describe any backshop capability and/or capacity which exceed the Minimum Mandatory Requirements of the solicitation.

e. Based on scheduled PDM, indicate the number of shifts and days per week to be worked, and the number of personnel by skill and level of experience (journeyman - 3 years or more experience, and semiskilled - less than 3 years experience) to be assigned to each shift.

f. Show how you plan to identify and overcome contingencies (as a minimum, material shortages, induction of drop-in maintenance aircraft, a fluctuation in the number of PDM aircraft inducted, etc.) which may interrupt the normal production flow schedule.

g. Submit Acceleration/Compression plan(s) showing how manpower and facilities will be utilized to compress or accelerate the production schedule if required by the USAF.

h. Indicate the type of work and degree of subcontracting anticipated. If the offeror intends to team with another firm/facility, identify what workload is to be accomplished at each facility. Identify any affect subcontracting and/or teaming will have on the production flow schedule.

i. Submit a brief description of the labor/management relationship and describe how labor grievances are resolved.

6.2 ENVIRONMENTAL: The offeror shall submit the following environmental information: The recommended HMMP page limitation is 15. All other required environmental information is excluded from the page count.

a. A preliminary HMMP in accordance with Aerospace Industries Association, NAS 411 as amended, shall be developed for submission to the contracting officer. This plan shall include but not be limited to the following: how the offeror shall manage the program so as to eliminate, substitute, reduce, control, reuse, and dispose of hazardous materials as defined by 29 CFR section 1910.1000. Offeror shall provide any documentation required to meet federal, state, and local laws. If the offeror is located in a country other than the United States of America, the offeror’s HMMP must be in accordance with NAS 411 unless that country’s requirements are equal to or more restrictive. All offerors proposing in a non U.S. country, shall provide copies of their environmental laws.

b. In addition to the HMMP, the offeror shall provide a plan to comply with the following environmental requirements: 1) For all CONUS/Canada offerors - National Emissions Standard for Hazardous Air Pollutants (NESHAP) effective Jan 1998 and 2) For all overseas offerors - International Standard Organization (ISO) 14000, effective Dec 1996.

6.3 QUALITY SYSTEM: Describe the Quality System by providing the following information in the Quality volume. Excerpts from the offeror’s Quality Plan are acceptable for responses to the information requested below as long as the data is complete for the information requested. The recommended Quality Plan page limitation is 25.

a. Submit a relational matrix that indicates the general relationship between the contractor's quality system procedures/processes and the applicable elements of ANSI/ASQC Q9002-1994. In addition, also include a description of inspection and test records, calibration, scrap and rework tracking, use of government property/material, and use of contractor's inspection equipment.

b. Submit a summary describing contractor's compliance with each element of ANSI/ASQC Q9002-1994, section 4.0.

c. Submit a schedule of quality activities and tasks as they relate to other schedules prepared for work under the proposal.

d. Identify personnel and the organizational relationship of personnel performing the quality function.

(1) Submit qualification and training requirements for quality management/ supervisory personnel and for personnel involved in verification/audit activities.

(2) Submit a plan for recruiting and training personnel required to perform the quality function.

(3) Submit an organizational chart and/or narrative description showing assignment, responsibility, authority, and the interrelationship of all personnel who manage, perform and verify work affecting quality.

6.4 SAFETY PLAN: The offeror will be evaluated on the ability to adequately plan the safety requirements of the solicitation including their ability to prevent fire damage to USAF property. Excerpts from the offeror’s Safety Plan are acceptable for responses to the information requested below as long as the data is complete for the information requested. Submit the following. The Safety plan has no page limits.

a. A copy of the Safety Plan tailored to this program in accordance with reference document Appendix C, WR-ALC/C-130/FY96-26, for the industrial safety program to include hazard reporting procedures, flight safety, system engineering, weapons and explosive safety, storage of explosive items, fire prevention plans and notification procedures to include investigation and reporting of ground and flight mishaps IAW AFI 91-204. The safety plan shall include the qualifications of the safety staff and safety management responsibilities, including an outline of actions to control and prevent damage to Government property or injury to Government personnel, education/training to include safe job procedures, health, and personal protection IAW OSHA safety and health requirements, and the severe weather evacuation plan.

b. Submit procedures for conducting periodic safety inspections including documentation and means for achieving corrective actions.

c. Submit a Foreign Object Damage (FOD) prevention program plan IAW, reference document, Appendix C, that is effective for all phases of the production cycle to include:

(1) Management and technical resources, procedures, controls, etc. needed to assure FOD prevention requirements are met.

(2) Provisions for FOD prevention training, to include as a minimum: maintaining cleanliness of production areas; control of aircraft components, assemblies, tools, fasteners, and materials; tool inventory procedures; spot inspection requirements; and lost tool procedures.

(3) FOD control for flight line operations.

d. Descriptions of safety and fire prevention procedures used when performing fuel system work, fueling, defueling, or purging operations.

7.0 VOLUME 6 shall contain offeror proposed ALTERNATIVES to military specifications and standards, Government regulations, and technical manuals and has no page limits:

7.1 The Government will not accept any alternatives that would have the effect of degrading the Government’s ability to perform maintenance on the aircraft at Government or other contractor facilities.

7.2 MIL SPECS: The offeror may use Military Standards, Specifications, and Handbooks; Federal Standards and Specifications; National Aerospace Standards; and Commercial/Industry Standards and Specifications listed in Attachment 2 to perform maintenance on USAF and USCG C-130 aircraft. The offeror may choose to use an equivalent or alternative document to perform specific maintenance tasks. There are seven (7) Military specifications for aircraft coatings that are compliance documents and no substitutes/alternatives shall be accepted. These specifications are identified in Attachment 2 of the PDM specification.

7.3 The offeror shall use USAF and USCG regulations, manuals, and

instructions listed in Attachment 1 of the PDM specification to perform maintenance on USAF and USCG C-130 aircraft. The offeror may use an equivalent or alternative document to perform specific requirements. For any proposed alternatives to Government specifications, standards, processes, manuals, instructions, regulations, documents, technical orders (T.O.s), etc., the offeror must identify the document/process that would be replaced and submit technical documentation for the proposed alternative. The offeror shall also submit past performance data, cost data, and any other data which can be used to evaluate the proposed equivalent or alternative. Any non-proprietary alternative approved by the Government may be incorporated into Government documentation or technical data as required. Alternatives may not affect the Government’s ability to maintain aircraft, to include future PDM and organizational level maintenance at Government or other contractor facilities, after the aircraft completes maintenance at the offeror’s facility. Proposed alternatives shall be proven and shall not require research, development, and/or testing.

8.0 VOLUME 7 shall contain the offeror’s pricing proposal. There are no page limits. Offeror’s shall submit pricing in four (4) hard paper copies separate from the technical proposals.

8.1 PRICING PROPOSAL: The offeror’s pricing proposal shall be developed in a manner to price as many tasks (offeror’s SOW, PDM specification, CDRLs, and Attachment 9 of RFP) as possible in each Basic PDM CLIN (X001 - X008). If tasks cannot be priced in a Basic PDM CLIN, the offeror shall price the task(s) as a Fixed Price Over & Above CLIN. If the offeror cannot price tasks in either a Basic PDM CLIN or Fixed Price Over & Above CLIN, the offeror shall identify the task and how it shall be priced in the pricing proposal. The pricing proposal shall follow the format shown in attachment 10 and attachment 11 of the RFP and include all CLINs, offeror SOW, and CDRL requirements. CLINS and sub CLINS listed in RFP Attachment 9 may not be further subdivided for pricing purposes.

a. Basic PDM CLINs (X001 - X008): All Basic PDM CLINs shall contain all the access, inspect, clean, test, functional and/or operation checks, desealing, resealing, drilling fitting, deburring, sanding, trimming, rigging, close-up, reinstallation or any and all other activities of a similar nature required to complete each inspection/ maintenance task listed in the PDM specification that occurs on all aircraft associated with each Basic PDM CLIN. Does not include repair or replacement tasks unless accomplished on all aircraft. Does not include inspection/maintenance tasks that do not occur to all aircraft in the Basic PDM CLIN (tasks with occurrence rates of less than 100%).

b. Fixed Price Over & Above CLINs:

1. Attachment 9 of the RFP lists Government proposed Fixed Price Over & Above tasks.

2. All Fixed Price Over & Above CLINs shall be broken down into steps and the man-hours for each step identified in a format similar to the one shown in Attachment 11 of the RFP.

3. If during UDLM multiple Fixed Price Over above CLINs are required and the CLINs have some duplication of effort, then only one Fixed Price Over & Above CLIN shall be utilized. The remainder of the Fixed Price Over & Above tasks shall be incomplete tasks and negotiated with the ACO utilizing the Negotiated Over & Above CLIN identified as less than a complete job.

c. Negotiated hourly rate Over & Above CLINs: Shall be developed by the offeror to cover the Negotiated Over & Above CLINs identified in the RFP and as required by the offeror to fully price the proposal.

Appendix J

EXAMPLES FROM C-130 REQUEST FOR PROPOSALS

J-3. EXTRACT FROM C-130 PDM CONTRACT RFP SECTION "M" INFORMATION

The estimated cost of relocating GFM from its present location at Pemco, Birmingham, AL for the CONUS/Canada requirement or from Airod Sdn, Petaling Jaya, Malaysia for the PACAF requirement, or from Agusta, Brindisi, Italy, to that of the competing firms will be evaluated. The estimated cost of preserving, packaging, packing, marking and shipping GFM will be evaluated as follows: $4,813 per flying hour x flying hours (Special Assignment Airlift Mission (SAAM) transportation rate) x 4 aircraft + $47,326 for Pemco, $25,152 for Airod, or $33,985 for Agusta to cover preserving, packaging, packing and marking costs.

M-901. EVALUATION CRITERIA:

(a) Introduction: This section outlines the basis for evaluating the offerors’ capabilities and proposals submitted in response to the solicitation. The evaluation criteria describe the scope of the evaluation to be performed on each proposal. Section L of the RFP describes the proposal content and format requirements.

(b) Basis for Award: This will be a competitive source selection conducted in accordance with AFFARS Appendix BB and the AFMC FAR Supplement thereto. The Government intends to award one to three contracts to the offeror or offerors whose proposal conforms to the solicitation requirements, who is deemed responsible, and whose proposal is judged, in accordance with the evaluation criteria set forth below, to represent the best value to the Government. Offerors should recognize that subjective judgment on the part of Government evaluators is inherent in the evaluation process. The government reserves the right to:

(1) Award one to three contracts or make no award depending on the quality and/or affordability of proposals received in response to the solicitation.

(2) Award to other than the lowest evaluated cost/price proposal.

(3) Reject proposals that are unrealistic in terms of performance commitments or based on unrealistically high or low cost/price. Such proposals may be deemed to reflect a lack of technical competence, a misunderstanding of the requirement, or an inability to perceive complexity or risks of the requirement.

(4) Consider the "correction potential" throughout the evaluation process when a deficiency is identified.

(5) Require the submission of certified cost and pricing data within a reasonable period of time if adequate competition is not realized.

(6) Make an award without conducting discussions.

(c) Scope of Evaluation: Minimum Mandatory Requirements (MMRs), Baseline Requirements, specific and assessment criteria, cost criteria, and general considerations will be used in evaluation of proposals submitted in response to the solicitation. MMRs represent the absolute lowest threshold acceptable in capacity and capability and will be verified during site surveys. Baseline requirements are necessary for the contractor to successfully accomplish the work specified in the solicitation. Specific criteria relate to important program characteristics. Assessment criteria relate certain aspects of an offeror’s proposal to specific evaluation criteria. Total evaluated cost to the Government is the cost criteria. General considerations are identified below and contribute to the integrated assessment of each proposal.

(1) Each offeror's proposal will be evaluated against the following areas and factors. Area I is more important than Area II. In Area I, Technical, Factor 1 is of the greatest importance with the subfactors being listed in descending order of importance. Factors 2, 3, and 4 are of equal importance. The subfactors under Factor 4 are of equal importance.

AREA I: Technical

Factor 1 - Production

Subfactor 1 - Aircraft Production

Subfactor 2 - Statement of Work

Subfactor 3 - Engineering

Subfactor 4 - Logistics

Factor 2 - Environmental

Factor 3 - Safety

Factor 4 - Quality

Subfactor 1 - Quality System

Subfactor 2 - Personnel

AREA II: Cost/Price

(2) The assessment criteria set forth below are equal in importance. The assessment criteria are:

a. Soundness of Approach - The proposal will be evaluated from the standpoint of adherence to sound practices and a logical approach to accomplishing all requirements set forth in the requirements documents.

b. Understanding of/Compliance with Requirements - The proposal will be evaluated to determine whether the proposed approach demonstrates a complete understanding of the requirements. In addition, the proposal will be evaluated to determine whether the offeror proposes to perform in a manner that does not conflict with the requirements of the solicitation and the proposed result satisfies all minimum requirements.

(3) Total evaluated cost to the Government will be a substantial consideration in the source selection decision.

a. Each offeror’s cost/price information will be evaluated for realism, completeness, and reasonableness. Accepted cost and price analysis techniques (per FAR 15.8 as supplemented) will be used in the evaluation process. Each cost/price proposal will be evaluated to assess:

(1) Cost realism means the costs in an offeror’s proposal are (a) realistic for the work to be performed; (b) reflect a clear understanding of the requirements; and (c) are consistent with the various elements of the offeror’s technical proposal. The offeror’s matrix (reference L-900, paragraph 1.3) and pricing proposal (reference L-900, paragraph 8.0) will be assessed to determine if tasks identified as negotiated hourly rate over and above should be priced in a basic PDM CLIN.

(2) Completeness - Completeness is evaluated by assessing the level of detail the offeror provides in cost/price information for all RFP requirements (to the extent requested) and assessing the traceability of estimates.

(3) Reasonableness - Reasonableness is evaluated by assessing the acceptability of the offeror's methodology used in developing the cost/price estimates. The existence of adequate price competition may support a determination of reasonableness.

b. Total evaluated cost to the Government will be calculated as described below:

(1) FFP CLINs (Basic) - The total evaluated prices for the basic PDM requirement and all options will be calculated by multiplying the Best Estimated Quantity (BEQ) as specified in Section M-900(b) of the solicitation by the unit price for each FFP CLIN. The specific BEQs are furnished for evaluation purposes only and are not a guarantee of the quantity.

(2) FFP Over and Above (FFP - O&A) CLINs - The total evaluated prices for the basic FFP - O&A CLINs and all options will be calculated by multiplying the estimated occurrence factors, as specified in Attachment 9 of the solicitation, by the unit prices for each FFP - O&A CLIN. The occurrence factors represent the Government’s best current estimate as to the frequency with which the items will be required; however, the specific occurrence factors are furnished for evaluation purposes only and are not a guarantee of the frequency with which the items will actually occur nor do the occurrence factors represent either minimum or maximum quantities.

(3) Hourly Rate Over and Above (HR - O&A) CLINs - The total evaluated prices for the basic HR - O&A CLINs and all options will be calculated by multiplying the estimated total number of man-hours per aircraft, based on historical data, as specified by Section M-900(d) of the solicitation, by the proposed hourly rate by the number of aircraft, i.e., BEQs derived for the Basic PDM CLINs. The estimate of total man-hours per aircraft is furnished for evaluation purposes only and is not a guarantee of the number of man-hours that will actually be required.

(4) Unscheduled Depot Level Maintenance (UDLM) - The total evaluated prices for the basic UDLM and all options will be calculated by multiplying the estimated total number of man-hours per aircraft, based on historical data, by the proposed hourly rate by the estimated number of UDLM aircraft as specified in Section M-900(e) of the solicitation. The occurrence of UDLM aircraft represents the Government’s best estimate based on historical data from the current three contractor facilities; however, the specific number is furnished for evaluation purposes only and is not a guarantee of the number of UDLM aircraft or man-hours to be actually incurred, nor does the estimate represent minimum or maximum quantities.

(5) Unscheduled Depot Level Maintenance - Fixed Price Over and Above (UDLM -FFP - O&A) - The total evaluated prices for the basic UDLM - FFP - O&A and all options will be calculated by multiplying the estimated occurrence factors, as specified in Attachment 9 of the solicitation, by the unit prices for each UDLM - FFP - O&A CLIN. The occurrence factors represent the Government’s best current estimate as to the frequency with which the items will be required; however, the specific occurrence factors are furnished for evaluation purposes only and are not a guarantee of the frequency with which the items will actually occur nor do the occurrence factors represent either minimum or maximum quantities.

c. In addition to the above, the following cost factors will be considered in determining the total evaluated cost to the Government at each competing firm’s location:

(1) The estimated cost of relocating GFM from the current locations (AIROD Sdn Bhd, Petaling Jaya, Malaysia; Agusta, Brindisi, Italy; or PEMCO Aeroplex, Birmingham AL) to that of the competing firms will be evaluated. The estimated cost of preserving, packaging, packing, marking, and shipping GFM from the nearest source to the competing firm will be evaluated as follows: The cost per flying hour (Special Assignment Airlift Mission transportation rate) multiplied by the number of flying hours, multiplied by the number of required flights, plus the cost of preserving, packaging, packing, and marking, plus the aircraft loading expense. This information provided by 78 ABW/LGTP will be listed in Section M of the solicitation for evaluation purposes only.

(2) Ferry cost associated with flying aircraft from home station to the competing firm’s PDM facility will be evaluated. The number of aircraft and corresponding base locations will be specified in Section M. Ferry cost will be computed based upon the cost per flying hour (C-130E/H aircraft listed in AFI 65-503, Table A4-1 and HC-130H aircraft secured from USCG), listed below, multiplied by the number of flying hours to the competing firm’s PDM facility, plus Temporary Duty Expense (TDY) for the crew. This information will be listed in Section M of the solicitation for evaluation purposes only.

MDS Flying Hour Cost

C-130E $1,485

C-130H $1,551

HC-130H $2,281

(3) Startup costs for a U.S. Government contract administration office will be added to the offeror’s proposal if one is not currently established on site. The estimated cost will include lay-in of office equipment, permanent change of station expense, and housing costs for U.S. Government contract administrative personnel.

(4) Any offeror proposing the use of Government facilities offered under a government owned contractor operated (GOCO) arrangement, will have the rental equivalent rate of the facilities for the duration of the arrangement added to their price proposal for evaluation purposes. Any offeror proposing the use of Government facilities under any arrangement that will result in cost savings to the Government will have those savings, for the duration of the arrangement, to the extent the proposed savings are validated by the Government, deducted from their price proposal for evaluation purposes.

(4) General Considerations: General considerations include proposed contract terms and conditions, the results of site surveys, and the extent of small business and small disadvantaged business participation in the performance of the proposed effort. Cumulatively, general considerations are of lesser importance than the cost area, but may play heavily in the decision process. Individually, the general considerations are equally important.

(5) Each proposal will initially be assessed to determine whether or not the most important requirement, the MMRs set forth in Attachment 12 of the solicitation, is satisfied. MMRs will be evaluated on a pass/fail basis. If a proposal fails to satisfy the MMRs, it may be eliminated from the competition without evaluation of the balance of the proposal. Baseline Requirements (BRs) will be evaluated as part of each offeror’s technical proposal. The evaluation of BRs 1 through 6, 9 through 11, and 13 will be included in the color/adjectival and proposal risk rating under Area I: Technical, Factor 1 - Production, Subfactor 1 - Aircraft Production. The evaluation of BRs 7 and 8 will be included in the color/adjectival and proposal risk rating under Area I: Technical, Factor 1 - Production, Subfactor 3 - Engineering. The evaluation of BR 12 will be included in the color/adjectival and proposal risk rating under Area I: Technical, Factor 1 - Production, Subfactor 4 - Logistics. The color/adjectival rating for the areas, factors, and subfactors, depicts how well the offerors’ proposal meets the evaluation standards and solicitation requirements. Proposal risk assesses the risk associated with the offerors’ proposed approach as it relates to accomplishing the requirements of this solicitation. Performance risk assesses the probability of the offeror successfully accomplishing the proposed effort. The Government will conduct a performance risk assessment based on the offerors’ relevant demonstrated present and past performance. In assessing this risk, the Government will use performance data to evaluate the areas and factors listed above including cost. Offerors are to note that in conducting performance risk assessments the Government will use both data provided by the offeror and data obtained from other sources. Within each area and/or factor, except cost, each of the three ratings (color/adjectival, proposal risk, and performance risk) shall be given equal consideration in making an integrated source selection decision. The cost area, which will be evaluated as described in Section M-901 (c), will also receive a performance risk rating which shall be given equal consideration with the evaluated cost.

SECTION M INFORMATION

M-900

DROP IN MAINTENANCE (MANHOURS)

CONUS 1,250 1,250 1,250 1,250 1,250 1,250

10 A/C 10 A/C 10 A/C 10 A/C 10 A/C 3 A/C

PACAF 1,250 , 250 1,250 1,250 1,250 1,250

2 A/C 2A/C 2 A/C 2 A/C 2 A/C 1 A/C

USAFE 1,250 1,250 1,250 1,250 1,250 1,250

2 A/C 2 A/C 2 A/C 2 A/C 2 A/C 1A/C

Appendix J

EXAMPLES FROM C-130 REQUEST FOR PROPOSALS

J-4. MINIMUM MANDATORY REQUIREMENTS (EXTRACT FROM C-130 PDM CONTRACT RFP)

The following Minimum Mandatory Requirements (MMR) are the lowest threshold acceptable in capacity and capability. Failure to demonstrate that all of these MMRs will be met by the offeror may cause the proposal to be rejected. No further evaluation of the remainder of the proposal may be made if the MMRs cannot be met. As stated below, "equivalent" means equal to or more stringent that the stated guidance.

1. All hangars shall be free of obstruction to ensure safety of the aircraft and have a minimum door height of 40 feet with a minimum door width of 140 feet. All facilities where U.S. government property will be stored, worked, maintained, repaired, modified or used shall have an automatic fire suppression system which meets the requirements of AFMCI 91-101, ETL 96-1, NFPA 409 and NFPA 410 or equivalent.

2. Enclosed hangar space for the accomplishment of all major component disassembly and assembly, major structural repairs, alignment and symmetry, and wing joint planarity checks for the highest number of aircraft in-work, plus 3 additional unscheduled depot level maintenance (UDLM) aircraft for the CONUS or Canada requirement and 2 UDLM aircraft for each requirement for PACAF and USAFE. A minimum of 7 feet clearance is required between the aircraft and any obstruction. Temperatures in the hangars shall be controllable between 50 to 100 degrees Fahrenheit. A nose dock hangar is considered an enclosed hangar for maintenance work forward of FS 737, it is not considered an enclosed hangar for maintenance work aft of FS 737.

3. Wash rack with the capacity to maintain wash and rinse water at a temperature of 130 degrees Fahrenheit (plus or minus 10 degrees), to clean aircraft at a rate of 5 per month and maintain a temperature that would not allow the water to freeze for the CONUS or Canada requirement. Wash rack with the capacity to maintain wash and rinse water at a temperature of 130 degrees Fahrenheit (plus or minus 10 degrees), to clean aircraft at a rate of 2 per month for each requirement for PACAF and USAFE and maintain a temperature that would not allow the water to freeze.

4. Enclosed hangar(s) to accomplish complete depaint and paint for 5 aircraft per month for the CONUS or Canada requirement. The hangar for depainting and painting aircraft for the CONUS or Canada requirement must be in compliance with federal, state, local or the country’s existing laws and regulations. Enclosed hangar(s) to accomplish complete depaint and paint for 2 aircraft per month for each requirement for PACAF and USAFE aircraft. The hangar for depainting and painting aircraft for each requirement for PACAF and USAFE aircraft must be in compliance with federal, state, local or the country’s existing laws and regulations. A minimum of 7 feet clearance is required between the aircraft and any obstruction. The paint facility shall be environmentally controlled in accordance with T.O. 1-1-8, AFMCI 91-101 and AFI 32-1024 or equivalent and shall have explosive proof electrical wiring and forced ventilation sufficient to provide 100 linear feet per minute air velocity IAW T.O. 42A-1-1 or equivalent.

5. Ramp space, with tie down grids, to meet the maximum PDM and UDLM production requirements with a minimum of 25 feet clearance between parked aircraft and any obstruction or other aircraft. Ramps including shoulders, shall have a minimum clearance space of 125 feet from the edge of the paved surface outward to any obstruction.

6. Ramp and hangar lighting, electricity, and compressed air IAW AFI 32-1024 and AFI 32-1044 or equivalent.

7. A runway with a minimum length of 5,000 feet and minimum width of 150 feet with lighting parallel to the runway and taxi way in accordance with AFI 32-1024, AFI 32-1044 and AFMCI 91-101 or equivalent.

8. A control tower with radio and airfield control facilities available and staffed by qualified personnel in accordance with AFMCI 91-101 or equivalent.

9. Safety standards, fire fighting capability, structural fire fighting capability, personnel and airfield facilities shall meet the industrial safety requirements of AFMCI 91-101 or existing country laws and regulations if they meet or exceed the requirements of AFMCI 91-101.

10. Refueling, defueling, fluid purging, fuel tank maintenance, and fuel cell foam handling/storage capabilities, equipment and facilities in accordance with T.O.s 1-1-3, 1C-130-2 series handbook or equivalent. A minimum of 1,500 square feet available for storage of foam awaiting replacement and/or installation is required.

11. Reserved.

12. Fuel and oil storage capabilities in accordance with MIL-STD-1518 or equivalent. Minimum total fuel storage capacity is 36,000 gallons for the CONUS or CANADA requirement, 15,000 gallons for the PACAF requirement and 9,000 gallons for the USAFE requirement. Minimum oil, and lubricant requirements per aircraft are:

a. Oil IAW MIL-L-23699 - 20 gallons

b. Lubricant IAW MIL-G-23827G - 3 lbs

13. Capable of handling and disposing ALL hazardous waste associated with the performance of this contract including but not limited to paint, paint residue, sealant residue and fuel cell foam disposal IAW NAS 411 and which also complies with federal, state, local or the country's existing laws and regulations if they are equal to or more stringent than NAS 411.

14. The offeror shall own or have access to back shops with manufacturing capability. The back shops shall contain the capability for sheet metal work, machine shop work, plastic shop work, electrical/electronic work and hydraulic work to support this requirement. Back shops shall be equipped with the normal associated equipment to support PDM and modification of C-130 aircraft in quantities shown in Section B of the RFP. This equipment should consist of lathes, milling machines, screw machines, grinders, drills, heat treating and degreasing equipment, presses, shears, plating and anodizing equipment; and machines for cutting, grinding, and buffing plastics. This equipment shall be capable of manufacturing major C-130 structural components such as: main landing gear beams, longeron end fitting, FS 517 main landing gear beam splice repair fittings, contoured angles, bulkhead end fittings, and all T.O. 1C-130A-3 repair components. (Assembly of parts, testing, tubing manufacturing and manufacture of subassemblies can be performed adjacent to aircraft work area provided space is available for required jigs and fixtures, mockups, test equipment and other required tooling). Plating facilities and equipment shall meet MIL-C-83488, type II, class I, QQ-P-416, and MIL-A-8625 requirements or equivalent. The offeror shall own or have access to the following back shops containing adequate space:

Plastic/fiberglass shop Machine shop

Electrical/electronic shop Hydraulic shop

Tire, wheel, landing gear Plating shop

disassembly and buildup shop Sheet Metal Shop

15. Offeror shall have access to C-130 peculiar ground handling equipment and tools. The offeror must possess or be able to obtain the required equipment in sufficient time to eliminate delays or work stoppages of PDM and UDLM aircraft. (Attachment 7 is a reference listing of C-130 peculiar ground handling equipment and tools. The quantities shown are estimates based on the best estimated quantity of PDM and unscheduled depot level maintenance (UDLM) aircraft.)

16. Battery facility capable of storage, servicing, and handling lead acid and nickel-cadmium batteries in accordance with applicable T.O. 1C-130-2 handbook or equivalent.

17. Weighing facilities IAW T.O. 1-1B-40 or equivalent.

18. N1 and C12 compass calibration/swing capability in accordance with T.O.s 1C-130B-2-8 and 5N3-3-7-1 and MIL-STD-765 or equivalent.

19. Offeror shall possess adequate covered storage space for the following:

a. Aircraft components (flight controls, doors, cargo ramp, cargo door, stabilizers, external fuel tanks, etc.).

b. Enclosed secured control of AF 2691 and USCG equipment in accordance with AFI 21-103 and OPNAV 4790 for the CONUS or CANADA requirement only.

c. On-site space for technical and engineering data; and aircraft records and forms listed in PDM Specification File Number WR/C130/FY96-26.

d. Inside storage space of 20,000 square feet to segregate and control government property.

Appendix J

EXAMPLES FROM C-130 REQUEST FOR PROPOSALS

J-5. BASELINE REQUIREMENTS (EXTRACT FROM C-130 PDM CONTRACT RFP)

BASELINE REQUIREMENTS

The following Baseline Requirements are necessary for the offeror to successfully accomplish this effort. Failure to demonstrate that all of these Baseline Requirements will be met by the offeror will not cause the proposal to be rejected initially. However, they will be evaluated as part of the offeror’s overall technical proposal and could result in the proposal being rejected. These baseline requirements will be made a part of the resultant contract.

1. A UHF radio capable of communicating with a C-130 aircraft during the Functional Check Flight (FCF) portion of the maintenance.

2. Shot peening equipment in accordance with MIL-S-13165 requirements or equivalent and facilities for abrasive blasting in accordance with MIL-STD-1504B or equivalent. Shall be capable of shot peening parts up to 6 ft. long x 4 ft. wide x 4 inches thick.

3. Portable nondestructive inspection equipment, X-ray, eddy current, ultrasonic, magnetic particle, and dye penetrate capability IAW T.O. 1C-130A-36 or equivalent and certified NDI personnel.

4. Sealant mixing facility including sealant mixing machines, storage space, and refrigerator in accordance with T.O.s 1-1-3 and 1C-130A-23 or equivalent.

5. Heat treat facilities and equipment shall meet MIL-H-6088 and MIL-H-6875 (Class A & C only) requirements or equivalent. Shall be capable of heat treating a part with the following maximum dimensions: 6 ft. long x 4 ft. wide x 4 inches thick.

6. Breathing oxygen storage and facilities for handling liquid oxygen IAW T.O. 1C-130B/H-2-10 or equivalent.

7. Offeror shall have the ability to fax 8-1/2" x 14" sketches to WR-ALC, C-130 Engineering. The offeror shall have the ability to view and print engineering data from aperture cards. The offeror shall have the ability to read, view and print CALS Type I image files on 63 or 74 minute CD-ROMs. Image viewing software will be loaded on each CD-ROM. In order for the offeror to print drawings on paper larger than 8.5" x 14" the offeror must have a large format printer that will interface with CALS Type I image files and either the MS Windows 3.1 based image viewing software loaded on each drawing CD-ROM or offeror CALS Type I image file viewing software.

8. Key personnel shall be able to fluently read, interpret, and comprehend engineering and technical data written in English.

9. Have two qualified personnel to perform ground engine run operation IAW AFI 11-218 and T.O. 1C-130B-2-4CL-1 or equivalent. Personnel handling and operating aircraft shall be qualified IAW AFI 11-218, AFI 11-205, and AFR 55-22 or equivalent.

10. Possess the equipment and trained personnel to perform complete aircraft alignment and symmetry checks and wing joint (rainbow and corner fittings) planarity checks.

11. Functional areas shall possess a Personal Computer (PC) to support offeror reporting, aircraft forms and records, aircraft planning, aircraft scheduling, engineering, materials, and contracting organizations. All computers shall be 486DX or superior personal computers with a minimum of 120MB high density Hard Disk, a minimum of 4MB RAM, and have a CD-ROM capable of reading 64-74 minute CDs. The following software shall be loaded on all computers: MS DOS Version 4.0 or higher, and Windows version 3.1 or higher. These computers shall be able to transfer, read, and print MS Word Version 2.0 and higher, MS Excel Version 2.0 or higher, MS Access version 2.0 or ASCII database, and CALS Type I image files. The offeror shall have the ability to send and receive E-mail. The offeror shall have the capability to interface with WR-ALC Program Management Support System (PMSS) and the Reliability & Maintainability Information System (REMIS). The following hardware is required: Printers and VGA color monitors for each computer. REMIS and PMSS access shall require a 9600 Baud modem. The offeror shall meet all PDM Specification, Statement of Objective, and Appendix B (Attachment Six) computer hardware, software, and operation requirements.

12. The capability to comply with transportation of GFM IAW FAR 52.247-55.

13. On-site office space to house approximately 18 US Government personnel requiring an estimated 3,200 Sq. ft. for the CONUS or Canada requirement. On-site office space to house approximately 10 to 12 US Government personnel requiring an estimated 1,500 Sq. ft. for each requirement for PACAF and USAFE. Shall have heat and air conditioning, office furniture, local telephone service, and other utilities/services required for administrative purposes associated with this contract.

Appendix J

EXAMPLES FROM C-130 REQUEST FOR PROPOSALS

J-6: EXTRACT FROM SECTION F AND H CLAUSES C-130 PDM CONTRACT RFP

(1) Input of aircraft will be as set forth in Paragraph (5) below based on Contractor's receipt of notification of award of contract on or before 96 OCT 30. For any slippage in notification of award, there shall be a corresponding slippage in input/output schedule. The "date of input" is defined as the first working day after the calendar day the aircraft is received at the Contractor's facility and shall be recorded by the ACO.

(2) In the event an aircraft arrives at the Contractor's facility earlier than the scheduled input date, the Contractor shall accept said aircraft and shall be permitted to begin work on it. The contract scheduled input date will not be adjusted to reflect the earlier date.

(3) In the event an aircraft arrives at the Contractor's facility later than the schedule input date, the output schedule shall be adjusted on a day for day basis. The period of input will not be extended beyond 97 SEP 30 or such other date subsequently designated as the final date for input resulting from exercise of option.

(4) In the event there is a late arrival which would result in the input of two or more aircraft on the same or consecutive days under the provisions of subparagraphs (1), (2) or (3) above, the input date will be adjusted by establishing the input date of the first aircraft arrival pursuant to the above provisions with the input date of the subsequent aircraft established by spacing inputs two calendar days apart.

(5) Tentative input schedule based on award by date stated in paragraph a(1) above is:

AIRCRAFT SEQUENCE INPUT DATE

1 3 FEB 97

2 3 MAR 97

3 7 APR 97

4 28 APR 97

5 5 MAY 97

6 12 MAY 97

7 19 MAY 97

8 22 MAY 97

9 27 MAY 97

10 2 JUN 97

11 9 JUN 97

12 12 JUN 97

13 16 JUN 97

14 23 JUN 97

15 30 JUN 97

16 7 JUL 97

17 14 JUL 97

18 21 JUL 97

19 28 JUL 97

20 31 JUL 97

21 4 AUG 97

22 11 AUG 97

23 18 AUG 97

24 25 AUG 97

25 28 AUG 97

26 4 SEP 97

27 8 SEP 97

28 15 SEP 97

29 22 SEP 97

30 25 SEP 97

AIRCRAFT SEQUENCE INPUT DATE

NR (PDM) (ON OR ABOUT)

1 3 FEB 97

2 12 MAR 97

3 14 APR 97

4 8 MAY 97

5 31 JUL 97

6 29 SEP 97

AIRCRAFT SEQUENCE INPUT DATE

1 6 FEB 97

2 7 MAR 97

3 15 MAY 97

4 7 AUG 97

5 30 SEP 97

(6) No input of aircraft will occur sooner than 90 days after award of this contract. The Government may begin input of aircraft sooner if mutually agreeable.

(7) The input schedule and quantities for the option periods will be unilaterally established by the Government at time of exercise of any options. The spacing of scheduled inputs will be at least 2 calendar days apart.

(1) The Contractor shall, except as provided in paragraph c below, deliver to the Government complete and acceptable aircraft within the following time after the scheduled actual or, if applicable, adjusted input date under paragraph a. above, whichever is later:

1 130 Calendar Days

2 115 Calendar Days

3 and subsequent *100 Calendar Days (110 CALENDAR

DAYS FOR HC-130H)

*INCLUDES ALL OPTIONS

Note: Flowdays are defined as calendar days from the date the aircraft is input into work until the aircraft is output.

In the event the CONUS and USAFE requirements are awarded combined, the first PDM input for both CONUS and USAFE must be completed in 130 flowdays. The second PDM input for both CONUS and USAFE must be completed in 115 flowdays.

(2) In addition, the following maximum calendar days may be added to the calendar days set forth in paragraph b.(1) above provided the following work/reason applies:

(a) Analytical Condition Inspection (ACI) - 10 days

(b) Controlled Interval Extension (CIE) - 7 days

(d) Engine truss mount replacement per aircraft - 2 days

(f) Remove and replace:

( 1) one sloping longeron - 4 days

( 2) one FS 245-737 chine plate - 3 days

( 3) one cargo ramp chine plate - 2 days

( 4) one flap track - l day

( 5) one flight deck chine plate - 3 days

( 6) one FS 517 or FS 597 MLG beam - 3 days

( 7) one FS 528. 577 or 588 MLG beam - 2 days

( 8) lower bulkhead cap - 2 days

( 9) after 4 MLG beam track replacement - one additional day for each additional track

(10) window or windshield - 1 day

(11) rainbow fitting - 3 days

(12) corner fitting - 1 day

(13) trailing edge panel - 1 day

(14) truss mount attach fitting - 1 day

(15) vertical stabilizer, lower attach angle - 1 day

*The extension possible under paragraph b.(2) above shall be determined through negotiations between the Contractor and the ACO and shall not exceed the maximum number of days as specified in paragraph b.(2) above. Note: The maximum number of days allowable for extensions under paragraph (2) is 15 calendar days regardless of the number of tasks performed.

C: EXTENSIONS

Extensions in delivery time may be authorized by the ACO pursuant to paragraphs c.(1) through c.(4) below. The number of days extension shall be determined by negotiation-and is subject to the limitations set forth in paragraph c.(1) through c.(4) below. Requests for extensions must be submitted in a timely manner to the ACO in the format prescribed by the ACO prior to accomplishment of the specific work requiring the extension.

(1) Within twenty (20) calendar days from date of aircraft input, the Contractor shall complete all necessary inspections and determine the extent of work/material required on the aircraft and submit requirements for work requests with appropriate delivery schedule extensions applicable thereto to the ACO. All needed materials, except for bench stock, shall be identified and requisitioned not later than 20 calendar days from the input of the aircraft. Requests for schedule extensions shall contain sufficient information/rationale documentation to permit evaluation/verification of the validity of the requests without extensive investigative effort. The extension, if appropriate, will be as negotiated between the Contractor and the ACO. Except when extenuating circumstances beyond the contractor's control are evident, as determined by the ACO, failure of the contractor to comply with the requirements of this subparagraph c.(1) will result in the loss of the contractor's entitlement to a delivery time extension or any other contractual adjustment or remedy under this or any other terms of this contract. If the parties fail to agree, the ACO shall unilaterally establish a fair and reasonable extension as appropriate under the circumstances. If the Contractor does not agree with a unilateral extension granted by the ACO, such disagreement shall be a question of fact subject to the Disputes clause.

(2) Schedule extensions may be granted for additional "over and above" work directed by or approved by the ACO or PCO not covered in contractual specifications (e.g., but not limited to, added TCTOs, updated T.O.s or regulations).

(3) Notwithstanding anything to the contrary elsewhere in the contract, when delay in the FCF/ACF is caused by inclement weather or the lack of a Government flight crew, an extension may be granted not to exceed the number of calendar days the inclement weather or lack of Government flight crew prevented performance of the flight test. Request for extensions must be submitted to the ACO within the first six (6) hours of the calendar work day following discovery of the delay condition, otherwise no extension will be granted for either reason under this clause nor will any form of contractual adjustment be made under this or any other terms or conditions of the contract.

(4) When extra days are incurred due to work being stopped on aircraft as a result of GFM shortages. These extensions may be approved provided material has been ordered and appropriate follow-up action has been taken in a timely manner as provided in Appendix B. Information provided to the ACO must substantiate that the GFM shortage has delayed the Contractor's performance by the number of days for which an extension is requested.

d. Revised delivery (output) schedules hereunder shall be set forth in Supplemental Agreement issued by the ACO. The Supplemental Agreement shall reflect the original due out date, revised due out date, and basis for revision.

e. General Information:

(1) Situations Impacting Delivery: Any situation arising during the life of this contract that will have an impact on delivery schedule(s) shall be reported to the ACO immediately.

(2) The Contractor shall have personnel available to receive and accept aircraft which may be input during other than normal working hours. The names and telephone numbers (home and office) of such personnel shall be furnished to the PCO and ACO within 10 days after award of contract.

(IAW AFMCFARS 5392.103(a), and/or 5392.411)

1. Written authorization to proceed on items X012 THROUGH X749 must be received from the Administrative Contracting Officer (ACO) before performance. This authorization to proceed shall be provided by work requests issued by the ACO.

2. The Contractor shall prepare work request proposals for necessary over and above work items in the format and detail prescribed by the ACO, and submit them to the designated Government Quality Assurance Representative. As a minimum, proposals must be identified to the contract, be serially numbered, and specify related changes, if any, to the contract delivery schedule. When applicable to aircraft, they shall be consecutively numbered in a separate series for each aircraft. Upon request of the ACO, the Contractor shall also prepare consolidated work request proposals covering previously approved over and above items. Negotiations will be completed prior to commencement of work whenever practicable, but in no case later than the time of completion of 40% of the work. Failure to agree upon a reasonable price shall be considered a question of fact subject to the "Disputes" clause of the contract. Work request proposals shall be definitized by the use of Standard Form 30.

(c) The prices for over and above fixed-price items do not include any payment for Contractor furnished direct parts and materials which are priced in accordance with PARAGRAPHS (q) AND (h) OF SECTION B-1 THRU B-6.

(d) Fixed-Price Items: Payment shall be at the fixed-price listed for each item.

(e) Fixed Hourly Rate Items: The price negotiated by the ACO shall be based on "hands on" labor hours multiplied by the contract fixed hourly rate. The number of "hands on" labor hours required shall be negotiated between the Contractor and the ACO. "Hands on" labor hours to be used in negotiating fixed hourly rate items are restricted to those defined in paragraph (g) below. The fixed hourly rate includes charges for: "hands on" labor cost; any labor cost not included in the definition of "hands on" labor for which the Contractor accounts as direct labor; burdens; general and administration expenses; and other allowable costs and profit. The fixed hourly rate does not include direct parts and materials.

(f) At any time during contract performance, when sufficient data becomes available on a repetitive task being performed in the fixed hourly rate category, either the Contractor or the Procuring Contracting Officer (PCO) may request a negotiation to establish a firm fixed-price (fixed-price item) for that item for the remaining life of the contract. The ACO shall advise the PCO of all such agreements in order that changes can be incorporated in periodic contract modifications.

(g) For the purposes of negotiating prices for the Fixed Hourly Rate Items, the "hands on" labor hours to which the fixed hourly rate is applied, are limited to only that labor performed by personnel actually engaged in the direct performance of work required. "Hands on" labor shall not include any labor performed by support or supervisory type personnel, such as, but not limited to: timekeepers, payroll clerks, purchasing, materials handling, quality control, storing and issuing personnel. Quality control personnel are considered as those personnel who apply standards to finished work/products to determine that finished production work is serviceable in all respects.

(JAW AFMCFARS 5392.103(e)

The parties hereto recognize that an emergency situation could occur which would require availability of a method for amending the contract in an expeditious action. If and when such a situation occurs, the Contracting Officer shall issue a directive which will make Supplement CONTRACTOR'S COMPRESSION PLAN, dated to attached hereto operative. When said directive is issued, Supplement CONTRACTOR'S COMPRESSION PLAN to Appendix "A" shall become applicable as a work specification. Price, delivery and other terms and conditions shall be negotiated and reflected in an amendment to the contract in the event this paragraph becomes operative. Said directive shall, if time is available, be in writing. If sufficient time is not available to issue a written directive, it may be issued verbally, by telephone or otherwise. Any such verbal directive shall be confirmed at the earliest possible date, in writing.

(IAW a FMCFARS 5392.103(f))

When normal maintenance of the Government-owned facilities provided hereunder or used in the performance hereof requires parts not available in local markets, the Contractor may requisition any of such parts as are available through the Government supply system after written approval is obtained from the Contracting Officer for each such requisition. The Contractor agrees, upon receipt of such parts, to credit this contract therefore at prices specified in current federal supply catalogs. Such credits will be deducted by the Contractor from the invoices submitted under this contract.

(IAW AFMCFARS 5392.103(g)

1. From time-to-time, the Government may request to drop in additional C-130 ACFT Aircraft for emergency repair and maintenance under contract line item X7SO-X910. To the extent feasible, based on contractor's facilities and experience, the contractor shall accept such aircraft for repair and maintenance. Prior authority for such inputs shall be obtained from the Administrative Contracting Officer (ACO). The ACO shall, provided funds are available, authorize such preliminary work sufficient for the contractor to develop and submit an estimate for completion of the required repairs or maintenance. When sufficient funding is available and authorization for completion of the work is received from the Procuring Contracting Officer (PCO), the ACO shall authorize completion of the work by issuance of a funded over and above work request. The over and above rates of the contract shall apply to all such work.

2. Should such work interrupt the normal PDM aircraft flow through the contractor's facility, the contractor will immediately notify the ACO. The ACO shall immediately contact the PCO for advice. If the interruption is approved, an equitable adjustment under the contract shall be negotiated by the ACO and incorporated by modification to the contract.

Appendix J

EXAMPLES FROM C-130 REQUEST FOR PROPOSALS

J-7: EXTRACT SECTION B CLAUSES FROM C-130 PDM CONTRACT RFP

The PDM shall be performed in accordance with Section C and all other terms and conditions of the contract. The total quantity of aircraft and the quantity by Section B-1.(a) line item will be unilaterally determined by the Government within the applicable range specified above and identified at time of award. Prices shall be based on the Government providing all flight test crews.

(a.) The fixed prices for items 0001-0008 encompass all required contractor furnished services and supplies except as specifically set forth in separate item in Section B-1.(c). through B-1.(h.).

The unit price(s) of items 0001-0008 includes all preparation, access, inspection, finishing, close-up, and any and all other tasks that are required to be accomplished 100% for the aircraft assigned to each CLIN. CLINs 0001-0008 shall not include any tasks that are included in a separately priced Fixed Priced Over & Above CLIN. Any task(s) that take 10 man-hours or less shall be included in a Basic CLIN 0001-0008. Tasks of 10 man-hours or less will not be negotiated as Over and Above task(s). All tasks that are not included in a Basic CLIN 0001-0008 or another Fixed Price Over & Above CLIN and that are greater than 10 man-hours shall be over and above (and include all man-hours required to accomplish task) subject to negotiations utilizing the over and above hourly rate. The contractor shall submit a list to the ACO, in a format prescribed by the ACO, of all discrepancies of 10 man-hours or less which were accomplished on each aircraft before tendering to the government.

Fixed Price Over and Above Items

(1) The fixed prices set forth in items 0001-0011 above do not include the following work set forth in items 0012 thru 0699. In the event work is determined to be required under items 0012 thru 0699 below and the Administrative Contracting Officer (ACO) concurs in the requirement, the Contractor shall be directed in writing by the ACO in accordance with the clause hereof entitled "Over and Above Work Procedures" to perform the work required. For the accomplishment of this work, the applicable fixed prices set forth below shall apply. These fixed prices include all charges for direct and indirect labor, indirect parts and materials, all indirect expenses and profit but do not include direct parts and materials.

(2) The prices established for items set forth in section B-1.(c.) include any and all work necessary to accomplish the requirement including but not limited to the following: Removal and replacement of items to gain access to resealing, cleaning, drilling, fitting, deburring, trimming, sanding, rigging, or any and all activities of a similar nature required to perform a complete job. Work specifically excluded within the description of the item and/or set forth as a separate fixed price or hourly rate work request item shall be considered work excluded from that item.

(3) All work accomplished which would otherwise constitute a complete task under items 0012 thru 0699 however is determined not a complete task by the ACO shall be negotiated under item 0701. Failure to agree upon a reasonable price for an incomplete task shall be considered a question of fact subject to the "DISPUTES" clause of the contract.

4. Fixed Price Hourly Rate Over and Above items

(1) The unit prices set forth in Items 0001 thru 0699 do not include the following work set forth in Items 0700 thru 0749. In the event work is determined to be required under Items 0700 thru 0749 and the Administrative Contracting Officer (ACO) concurs in the requirement, the Contractor shall be directed in writing by the ACO in accordance with the clause hereof entitled "Over and Above Work Procedures" to perform the work required. For the accomplishment of this work, the fixed hourly rate of (1) $ (CONUS) (2) $ (PACAF) (3) $ (USAFE) will be used in negotiating a price. The number of direct labor hours required will be negotiated between the Contractor and the ACO. The price shall be the product of the negotiated direct labor hours times the hourly rate established herein. Direct labor is defined in Section H hereof. The fixed hourly rate includes all charges for direct and indirect labor, indirect parts and materials, and all indirect expenses and all profit but does not include direct parts and materials.

0700 ADDITIONAL WORK DIRECTED

BY THE ACO OR THE PCO NOT

COVERED BY THE SPECIFICATION

OR ANY OTHER LINE ITEMS,

TERMS AND CONDITIONS

INCORPORATED IN THIS CONTRACT.

0701 LESS THAN A COMPLETE

JOB FOR ANY ITEM.

(ITEMS 0012-0699)

0702- RESERVED

0749

e.) Fixed Price Hourly Rate Over and Above Items for Unscheduled Depot Level

(1) The prices set forth in Section B-1.(a.) through (d.) above do not include the following work set forth in item 0751. In the event work is required under items 0751 thru 0900, the Contractor shall be directed in writing by the ACO in accordance with clause hereof entitled "Over and Above Work Procedures" to perform the work required. For the accomplishment of this work, the fixed rate of (1) $ (CONUS) (2) $ (PACAF) (3) $ (USAFE) per hour will be used in negotiating a price. The number of direct labor hours required will be negotiated between the contractor and the ACO. The price shall be the product of the negotiated direct labor hours times the hourly rate established herein. Direct labor is defined in Section H hereof. The fixed hourly rate includes all charges for direct and indirect labor, indirect parts and materials, and all other indirect expenses and all profit, but does not include direct parts and materials. Delivery of aircraft input hereunder shall be negotiated between the ACO and the Contractor. The ACO and the Contractor shall insure that work on these aircraft is begun in a timely manner and that shop time is kept to a minimum. The ACO shall not issue work requests hereunder until such time as a contract modification specifying the work to be accomplished and the funds obligated therefor have been received.

(2) The prices established for items set forth in Section B-1(e.) shall include any and all work necessary to accomplish that requirement including but not limited to the following: Removal and replacement of items to gain access to the job being performed, testing, functional or operating checks, desealing, resealing, cleaning, drilling, fitting, deburring, trimming, sanding, rigging or any and all activities of a similar nature require to perform a complete job. Work specifically excluded within the description of the items and/or set forth as a separate fixed price item shall be considered work excluded from that item.

(f.) The following item 0901 and those that may be established for items 0902 thru 0910 are for Contractor-furnished direct parts and materials applicable to items 0001 thru 0900.

0901 CONTRACTOR-FURNISHED CAP

"EXPENSE" MATERIAL ITEMS

COVERED IN PARAGRAPH 4

OF APPENDIX "B" HEREOF,

THAT ARE DETERMINED TO

BE DIRECT PARTS OR MATERIALS

SHALL BE REIMBURSED TO THE

CONTRACTOR AND SHALL BE

CHARGEABLE TO THIS CONTRACT

ITEM. DRILL, TRIM AND FIT

REQUIRED TO FIT A PART TO

THE END ITEM WILL NOT BE

CHARGED TO THIS CAP ITEM

0902- RESERVED

0910

Option may be exercised on or before the last day of the Basic Contract Period. The Contractor shall furnish and deliver to the U.S. Government Programmed Depot Maintenance (PDM) of C-130 Aircraft. The place of performance for PDM of 23-42 aircraft shall be in the Continental United States (CONUS) or Canada. The place of performance for the PDM of 2-8 aircraft shall be in the PACAF Theater. The PACAF Theater includes the geographical areas of Japan, South Korea, Singapore, the Philippines, Australia, Malaysia, New Zealand, Thailand, Indonesia, and Hong Kong (until 1999). The place of performance for PDM of 2-5 aircraft (USAFE-generated) shall be other than the PACAF theater. Each requirement may be proposed separately or as a combination provided the place of performance requirements can be met. The Government reserves the right to make more than one award from this requirement or no award (See Section M-901).

The PDM shall be performed in accordance with Section C and all other terms and conditions of the contract. The total quantity of aircraft and the quantity by Section B-2.(a) line item will be unilaterally determined by the Government within the applicable range specified above and identified at time of award. Prices shall be based on the Government providing all flight test crews.

(a.) The fixed prices for items 1001-1008 encompass all required contractor furnished services and supplies except as specifically set forth in separate item in Section B-2.(c). through B-2.(h.).

The unit price(s) of items 1001-1008 includes all preparation, access, inspection, finishing, close-up, and any and all other tasks that are required to be accomplished 100% for the aircraft assigned to each CLIN. CLINs 1001-1008 shall not include any tasks that are included in a separately priced Fixed Priced Over & Above CLIN. Any task(s) that take 10 man-hours or less shall be included in a Basic CLIN 1001-1008. Tasks of 10 man-hours or less will not be negotiated as Over and Above task(s). All tasks that are not included in a Basic CLIN 1001-1008 or another Fixed Price Over & Above CLIN and that are greater than 10 man-hours shall be over and above (and include all man-hours required to accomplish task) subject to negotiations utilizing the over and above hourly rate. The contractor shall submit a list to the ACO, in a format prescribed by the ACO, of all discrepancies of 10 man-hours or less which were accomplished on each aircraft before tendering to the government.

(c.) Fixed Price Over and Above Items

(1) The fixed prices set forth in items 1001-1011 above do not include the following work set forth in items 1012 thru 1699. In the event work is determined to be required under items 1012 thru 1699 below and the Administrative Contracting

Officer (ACO) concurs in the requirement, the Contractor shall be directed in writing by the ACO in accordance with the clause hereof entitled "Over and Above Work Procedures" to perform the work required. For the accomplishment of this work, the applicable fixed prices set forth below shall apply. These fixed prices include all charges for direct and indirect labor, indirect parts and materials, all indirect expenses and profit but do not include direct parts and materials.

(2) The prices established for items set forth in section B-2.(c.) include any and all work necessary to accomplish the requirement including but not limited to the following: Removal and replacement of items to gain access to resealing, cleaning, drilling, fitting, deburring, trimming, sanding, rigging, or any and all activities of a similar nature required to perform a complete job. Work specifically excluded within the description of the item and/or set forth as a separate fixed price or hourly rate work request item shall be considered work excluded from that item.

(3) All work accomplished which would otherwise constitute a complete task under items 1012 thru 1699 however is determined not a complete task by the ACO shall be negotiated under item 1701. Failure to agree upon a reasonable price for an incomplete task shall be considered a question of fact subject to the "DISPUTES" clause of the contract.

INSERT HORIZONTAL PAGE

Appendix J

J-9 EXTRACT FROM C-130 PDM CONTRACT APPENDIX B.

HEADQUARTERS

WARNER ROBINS AIR LOGISTICS CENTER

UNITED STATES AIR FORCE

ROBINS AIR FORCE BASE GA 31098

APPENDIX B

CONTRACT NO.

PRODUCTION MANAGER: COSMA M. O'BRYAN WR-ALC/LBRSM

PHONE: (912) 926-4985

PURCHASE REQUEST NO. FD2060-95-13032 DATE 23 OCT 95

ABBREVIATED CONTRACT NO. L0005037 REVISION 1, 11 APR 96

REVISION 2, 13 JUN 96

REVISION 3, 23 JUL 96

TYPE WORK: PROGRAMMED DEPOT MAINTENANCE (PDM)/MODIFICATION

TYPE EQUIPMENT: C-130 AIRCRAFT

CONTENTS

PARAGRAPH PAGE

1. Terms Explained 2

2. Government Furnished Property (GFP) 4

3. Government Furnished Property (GFP) Support 4

4. Contractor-Acquired Property (CAP) 4

5. Contractor-Furnished Property (CFP) 5

6. Contractor Property Control Records 5

7. Stock Levels of Government Furnished Material 5

8. Reorder Points 7

9. Requisitions and Priorities 8

10. Production Problems 9

11. Disposition of Government Property 9

12. Disposition of Condemned Government Property 12

13. Contractor Preservation, Packaging, Packing, Marking 12

14. Transportation 12

15. Contractor Reporting 12

16. Visits 12

17. Other 13

ATTACHMENTS

INSTRUCTIONS FOR PREPARATION OF REQUISITION (MANUAL) ATCH ONE

INSTRUCTIONS FOR PREPARATION OF REQUISITION (MECHANICAL) ATCH TWO

INSTRUCTIONS FOR PREPARATION OF TURN-IN DOCUMENTS ATCH THREE

GOVERNMENT FURNISHED MATERIAL (GFM) AUTHORIZED/FSCs ATCH FOUR A

CONTRACTOR FURNISHED MATERIAL (CFM) ATCH FOUR B

GOVERNMENT FURNISHED EQUIPMENT AUTHORIZED (GFE) ATCH FIVE

CONTRACTOR COMMUNICATION NETWORK (CCN) AND G009 ATCH SIX

REQUEST FOR SUPPLY ASSISTANCE FORMAT ATCH SEVEN

PURPOSE STATEMENT

A. This Appendix B is incorporated into the contract to identify and define the government property to be provided the contractor in support of contract performance and to provide instructions/ guidance on how the property is to be obtained, accounted for, maintained, protected, disposed of and controlled.

B. The contractor shall comply with the provisions of the Federal Acquisition Regulation (FAR), Part 45, in effect on the date of contract award, which is hereby incorporated by reference and made a part of this contract.

C. All GFM shall be maintained in a secured store room. However, if it will improve efficiency and timeliness of repair, the contractor is authorized to move a limited quantity of high-usage, low-cost GFM items from the secured store room to bins located in close proximity to the repair area. The quantity of GFM to be moved shall be authorized by the ACO. Floor stock shall be limited to items costing less than $25 per unit and having a demand rate of at least five per month.

1. TERMS EXPLAINED:

a. Government Property (GP): All property owned by or leased to the Government or acquired by the Government under the terms of a contract. Government property includes both government furnished property and contractor acquired property.

(1) Investment Items: These are non consumable items with an Expendability-Recoverability-Repairability Category (ERRC) Designator of XD1, XD2, ND2, of NF2. (ERRC codes C, T, S, and U are non consumable items.)

(2) Expense Items: These are consumable items with an ERRC Designator of XB3 and XF3. (ERRC codes N and P are consumable items.)

b. Government Furnished Property (GFP): All property in the possession of, or acquired directly by, the Government and subsequently delivered or otherwise made available to the contractor.

(1) Special Tooling: All jigs, dies, fixtures, molds, patterns, taps, gauges, other equipment, and manufacturing aids, and replacements thereof, which are of such a specialized nature that, without substantial modification or alteration, their use is limited to the development or production of particular supplies or parts thereof, or the performance of particular services. The term includes all components of such items but does not include consumable property, test equipment, or buildings, nonserviceable structures (except foundations and similar improvements necessary for the installation of special tooling), general or special machine tools, or similar capital items.

(2) Special Test Equipment: Electrical, electronic, hydraulic, pneumatic, mechanical, or other items or assemblies of equipment which are of such a specialized nature that, without modification or alteration, the use of such items (if they are to be used separately) or assemblies are limited to testing in the development or production of, particular supplies or parts thereof, or in the performance of particular services. The term "special test equipment" includes all components of any assemblies of such equipment but does not include consumable property, special tooling, or buildings, nonserviceable structures (except foundations and similar improvements necessary for the installation of special test equipment), general or special machine tools, or similar capital items.

(3) Agency Peculiar: Personal/agency property peculiar to agency operations that is under the cognizance of an inventory control point. It includes weapons systems, components thereof, and related support equipment, but does not include items that are consumed in the performance of a contract or incorporated in the end items produced under a contract.

(4) Government Furnished Material (GFM): Government property that may be incorporated into or attached to an end item to be delivered under a contract or which may be consumed in the performance of a contract. It includes, but is not limited to, raw and processed material, parts, components, and assemblies.

c. Contractor Acquired Property (CAP): Property procured by the contractor, with money designated for CAP purchases, to prevent a work stoppage, title to which is vested in the

government.

d. Contractor Furnished Property (CFP): Property other than GFP or CAP, which is furnished by the contractor.

e. Management of Items Subject to Repair (MISTR) Contracts: Those contracts for repair of component end items including the repair or modification of recoverable spare or replacement items scheduled on depot level contracts to meet worldwide requirements.

f. Centrally Procured Items: Those items that are procured and controlled by the Government through one or more inventory control points. Such items are identified in the source of supply column of the USAF Federal Supply Catalogues by routing identifier codes designating the source of supply. For example: "FHZ" (OC-ALC), "FPZ" (SA-ALC),"S9E" (DESC), "N32" (NASO).

g. Abbreviated Contract Number: An eight position number that represents the contract number. The abbreviated contract number is to be used in columns 73-80 on the DD Form 1348 MILSTRAP requisitions. The first portion is the funding ALC code and the remaining seven positions are the control number.

h. Excess GFP: GFP that will not be required during the performance of the current contract or that is beyond the stock levels indicated by the formula in Para 7 of this Appendix B.

2. GOVERNMENT FURNISHED PROPERTY:

a. GFM requisitioning by the contractor is limited to authorized FSCs as per Attachment Four.

b. The contractor shall requisition the applicable Federal Supply Catalogs required, specified by the ACO, through his Publication Distribution Officer (PDO). The publication required to accomplish this is:

FEDLOG, Logistical Information System (Compact Disk Media).

3. Government Furnished Property (GFP) Support:

a. Initial GFM Support: The contractor shall requisition initial GFM stock, using the stock level establishment criteria provided in para 7 of this Appendix B as guidance. It must be noted that the pipeline time will be excluded in determining initial stock levels.

b. Follow on GFM Support: The contractor shall requisition authorized GFM items required to maintain appropriate stock levels in accordance with para 9 of this Appendix B.

c. Contractor shall cancel requisitions for materials that have been purchased with CAP funds. Consumption data on CAP material will be tracked in the MRL update process.

4. CONTRACTOR ACQUIRED PROPERTY (CAP):

a. Contractor acquired property consists of those items prescribed as GFM in Attachment Four of this appendix, but is not readily available from normal government sources to meet production schedules. The contractor shall only procure CAP authorized by the ACO using government funds to prevent production slippage or work stoppage. Acquisition shall not normally exceed quantities required for immediate consumption. CAP shall be retained in a secured storage area and treated as GFM.

b. Each month, billings for actual CAP expenditures, supported by invoices, shall be submitted by the contractor to the Contract Administration Office. These expenditures shall be identified by NSN, Cage Code, part number, noun, ERRC, quantity purchased and cost per item. Expenditures for CAP shall be limited to the amount of CAP funds authorized on the contract.

c. Under no circumstances shall the contractor use CAP funds for other than GFM identified in Attachment Four.

d. The contractor shall acquire only CAP that has been developed and produced to meet federal/military standards and specifications or an industry standard adapted by the Department of Defense. The contractor shall contact the ACO if there is doubt as to whether or not proposed CAP meets appropriate standards and specifications.

e. Under no circumstances will investment material or mod kits be obtained unless funds citations for investment material or mods are included in the contract.

5. CONTRACTOR FURNISHED PROPERTY (CFP):

a. The contractor shall provide and finance as Contractor Furnished Property (CFP), without separate reimbursement, all property not specifically authorized in paragraph 2 and 4 of this appendix.

b. The contractor shall provide and maintain a Contractor Communications Network (CCN) IAW Attachment Six of this Appendix "B". Pricing will be inclusive in Data Item A007 (DI-ILSS-81510 IAW Attachment Six of this Appendix "B").

6. CONTRACTOR PROPERTY CONTROL RECORDS:

a. The contractor shall establish property control records (stock record card or mechanized system for each item) and maintain control of government property, including CAP, according to FAR, part 45 and this Appendix B. All property records are to be current at all times.

b. In addition to the elements of data specified in FAR part 45, the ERRC code, stock number, unit of issue, and price of the item shall be recorded and kept current on the contractor's stock record. This data is contained in the ERRC code column of the MRL or FEDLOG, Logistical Information System.

c. The current replacement factors and the reorder point shall be recorded and kept current on the stock record system.

7. STOCK LEVELS OF GOVERNMENT FURNISHED MATERIAL:

a. Stock levels of GFM shall be initially computed based on the first 30 days requirements for ERRC code "T" (XD2) items and the first 60 days requirements for ERRC code "N" (XB3) and ERRC code "P" (XF3) items. The production quantity covered for the year shall be divided by 12 to determine minimum quantity per month. When quantity is not known, a minimum monthly quantity estimate shall be included. If not over 18 months old, prior history may be used to establish stock levels.

b. This Appendix B specifies the maximum stock levels of government furnished material authorized to the contractor. These stock levels are the maximum days of stock that are authorized to be on hand and on order at any one time. These maximum levels are to be maintained only in those instances where contractor's usage and/or pipeline experience justifies a need for the maximum levels to prevent work stoppage/slippages. Minimum levels shall be maintained as a normal procedure and maximum levels shall be maintained only when a specific need exists.

c. Computation of Stock Levels:

(1) Stock levels consist of a combination of pipeline time (in days) and stockage objective (in days). The stock level is the maximum days of stock authorized to be on hand and on order.

(2) The following elements of information are applicable to the computation of stock levels:

(a) Stock levels for expendability, repairability, recoverability, category (ERRC) code "C" ("XD1") items shall be negotiated with and established by the applicable federal supply class (FSC) item manager (IM).

(b) Pipeline time (in days):

ERRC ERRC

Code Designator CONUS OVERSEAS

(1)* (2)** (3)***

T XD2 31 69 74 84

N XB3 31 69 74 84

P XF3 31 69 74 84

(c) Stockage Objective (in days):

ERRC ERRC

Code Designator CONUS OVERSEAS

T XD2 45 45

N XB3 60 90

P XF3 60 90

(d) Total stock levels (in days) (pipeline and stockage objective):

ERRC ERRC

Code Designator CONUS OVERSEAS

(1)* (2)** (3)***

T XD2 76 114 119 129

N XB3 91 159 164 174

P XF3 91 159 164 174

(1)* To Alaska, Hawaii, South America, Caribbean, or North Atlantic

(2)** To Northern Europe, Mediterranean or Africa.

(3)*** To Western Pacific.

(3) Formula for computing stock levels:

(a) Daily demand rate (DDR):

1. Divide monthly production schedule quantity by 30 and multiply this by the quantity per end assembly. Example: Monthly production schedule quantity is 60 each and the quantity per end assembly is 10 each (60 : 30 = 2, 2 x 10 = 20).

2. Obtain this replacement percentage from the MRL percentage column of the material requirement's list. Example: Replacement percentage for a given item is 50 percent. Multiply this percentage times the gross daily demand rate (DDR) (as computed in previous paragraph) to obtain the applicable net DDR (.5 x 20 = 10 net DDR).

(b) Stock Level. The DDR times the total number of days for stockage objective and pipeline time will provide stock level. For example: for an "XD2" item, the stockage objective of 45 days and 31 days pipeline time is multiplied by DDR of 10 (45 + 31 = 76, 76 x 10 = 760 stock level quantity).

8. REORDER POINT:

a. The reorder point (in days) represents the number of days of stock required to be on hand plus items due in to support issues/demands during the pipeline time required to requisition and receive replenishment requirements. Contractor shall record reorder points on stock record cards.

b. The reorder point (in days) shall be established as the combined total of pipeline time plus a safety level of 5 days for CONUS and a safety level of 10 days for overseas. Example: For "XD2" item-31 days pipeline plus 5 days CONUS safety level equals reorder point of 36 days.

c. The order point quantity shall be established by multiplying the reorder point times the DDR. Example: for "XD2" item-36 days reorder point multiplied by 10 DDR equals 360 reorder point quantity.

d. The quantity to be ordered when on-hand plus due-in stocks are reduced to the reorder point shall be established by subtracting the reorder point quantity from the stock level quantity. Example: for "XD2" item-stock level quantity of 760 minus the reorder quantity of 360 = 400 as the reorder quantity.

e. Whenever the computed reorder point won't maintain sufficient assets on hand to support anticipated demands during the pipeline time, the reorder point shall be adjusted to provide sufficient on-hand assets to support anticipated demands/issues through the pipeline time. A reduced pipeline time shall be used whenever contractor experience reflects pipeline time less than that authorized above. However, an increase to the above authorized maximum pipeline time must be approved through the ACO and PCO.

9. REQUISITIONS AND PRIORITIES: The contractor shall prepare and process requisitions in accordance with DOD 4000.25-1-M, as supplemented by the following:

a. The contractor, in coordination with the ACO, shall ensure that all items and quantities are authorized and the requisitions are properly prepared in accordance with Military Standard Requisitions and Issue Procedures (MILSTRAP). A requisition control record shall be maintained and document numbers assigned to each day's requisition in accordance with DOD 4000.25-1-M. Entries shall be maintained to indicate date, material requisitioned, material on order, and material received.

b. When the stock level reaches the reorder point on his property control records, the contractor shall submit requisitions for a sufficient quantity to maintain the stock levels.

c. In the event an item is urgently required to prevent a production slippage or work stoppage, the contractor shall submit a requisition. Upon receipt of back order status of such requisition, the contractor, upon approval of the ACO, shall locally procure with funds specified in the contract, a quantity not to exceed the quantity required to relieve the production stoppage. Contractor shall cancel previous requisitions in accordance with paragraph 3.

d. The contractor shall submit all requisitions to WR-ALC.

e. FAD III is assigned to this contract. The contractor shall enter the appropriate priority designator in columns 60-61 of requisition. The appropriate priority designator for FAD III is determined by relating the urgency of need designator (UND) to the assigned FAD III as illustrated in AFM 67-1, Volume I, Part 1, Chapter 24, Attachment A-1. Requisitioning priorities shall be established by the contractor using the following urgency of need formula:

(1) MICAP with assigned FAD III, the priority is 02. To be used when a work stoppage exists or will exist if the material is not received within five days for CONUS and ten days for overseas

(2) UND "A" with assigned FAD III, the priority is 03. To be used when a work stoppage exists or will exist if material is not received within ten days for CONUS and 21 days for overseas.

(3) UND "B" with assigned FAD III, the priority is 06. To be used when production capability will be impaired, if material is not received within normal order and shipping times.

(4) UND "C" with assigned FAD III, the priority is 13. To be used in requisitioning initial operating stock required for scheduled contractual commitments and for stock replenishment.

f. Requisitions shall be prepared per instructions on attachments one and two to this Appendix B.

g. Requisition follow-ups, modifiers, cancellations, etc., shall be routed to F2M Routing Identifier Code.

h. Shelf life items shall be requisitioned using advice code 2G.

i. Requisition Status Codes:

(1) Requisition status codes are utilized by supply sources/inventory control points to relay information back to the requisitioning activity. These individual status codes apply to specific requisition document numbers and are not intended to supersede the general requisition routing policy contained in this Appendix B.

(2) The contractor shall utilize the requisition status codes specified in

DOD 4000.25-1-M.

(3) The contractor shall monitor their GFM requisition status to ensure that the estimated delivery dates are compatible with the production schedule.

j. MILSTRAP Shipment Status Cards: Shipment Status Cards (identified by "AS" in CC 1 and 2) are provided to the maintenance contractors by the FSC IM to advise the shipment status of material requisitioned by the contractor. "AS" shipment codes are found in AFM 67-1, Volume I, Part Four, Chapter 1. In addition, shipment status cards are forwarded to the maintenance contractors to advise that reparable end items are being shipped to the contractor for repair.

k. Back Order Validation: Listing of contractor requisitions on back order for ALC managed items that are not available for issue shall be forwarded semi-annually through the PCO to the contractor by the ALCs. Letters of transmittal for these listings shall contain instructions for the contractor's validation or cancellation of back orders.

10. PRODUCTION PROBLEMS: The contractor shall report supply support deficiencies that are causing or may cause production slippage or work stoppage. When applicable, report shall include a list of specific items that are in critical supply status or which have excessively long procurement lead time. For the purpose of resolving supply support/production problems either as listed on the report or as they occur, the contractor shall report them to the ACO. The ACO will forward problems beyond his capabilities to WR-ALC/PCO who in turn will forward any and all problems to WR-ALC/LBRA, phone (912) 926-9884. The contractor shall provide copies of all correspondence to the ACO. A sample of the report format is shown in Attachment Seven to this Appendix B.

11. DISPOSITION OF GOVERNMENT PROPERTY:

a. These instructions apply to all property furnished by or procured with funds of the USAF that are excess to the contractor for fulfillment of the contract.

b. The contractor shall return unserviceable RSD items removed from the aircraft to the source of repair as listed in Reparable Item Movement Control System (RIMCS) per attachment 3. If there are questions about the requirement, contact WR-ALC/LBRA.

c. Unserviceable expense items shall be administratively condemned and disposed of in accordance with Paragraph 12 of this Appendix B.

d. In the event a follow-on contract is to be awarded, only the GFE listed on Attachment Five may be retained. Existing GFP may be retained only to the extent required to support the current contract and the follow-on contract. At no time shall GFP exceed the quantities called for by the formula outlined in Para 7 of this Appendix B. Approval from WR-ALC is required to retain stock for follow-on contracts. The contractor shall inventory existing stock and prepare a list of items to be retained. The list shall identify stock by noun, NSN, P/N and quantity on hand and shall be submitted to WR-ALC as an attachment to the request to retain and transfer. Transfer of GFP, once approved, shall be accomplished as a "ship-in-place" transaction. Copies of transfer documents shall be furnished through the ACO and PCO. The contractor shall make sure that the government receives consideration for the continued use of all GFP transferred from one contract to another.

e. In the event this contract is terminated, disposition of material determined excess to the needs of this contract shall be in accordance with Appendix B paragraph 11e.

f. The contractor shall review stock positions on all XD1 and XD2 items every 30 days and all XB3 and XF3 items every 60 days until contract completion or termination. Concurrently, he shall identify and immediately process items exceeding requirements to support the remaining contract work load. Disposition action on this material shall be initiated by the contractor as it occurs, but no later than 30 days following determination of excess. When contract is within 60 days of completion, requisitions on back order for which positive supply status has not been received, shall be canceled and new requisitions submitted on a fill or kill basis with Advice Code "2C" in Columns 65-66 of the requisitions. The quantity on the new requisition shall be limited to that required to complete the contract. NOTE: Advice code 2c, fill or kill, does not automatically kill previously submitted requisitions for the same item.

g. Disposition of contractor excesses shall be in accordance with the following guidance:

(1) The contractor shall prepare a listing of material by P/N, NSN, quantity, and dollar value considered excess to the contract and submit it through the ACO and the appropriate ALC for disposition instructions. This shall include all excess local purchase (LP), local manufacture (LM), Air Force managed source of supply items coded in stock list as "JCD" (deleted), and items coded "N" (disposal) in stock list, regardless of condition or line item dollar value.

(2) Serviceable CP/AF stocklisted items of $50.00 or more line item value, except DLA/OSSF items, shall be shipped to the ALC assigned management for the Federal Supply Class of the items. DLA/OSSF items of the same value shall be shipped to whichever of the following ALCs is nearest to the shipping point.

(b) San Antonio ALC, Kelly AFB TX 78241-5999 MARK FOR: FB2059

(d) Ogden ALC, Hill AFB UT 84401-5999 MARK FOR: FB2029

(3) Such excesses having a line item dollar value of less than $50.00 shall be disposed of by the contractor through plant clearance procedures.

h. Directed Disposal:

(1) WR-ALC representatives, may direct the disposition of excesses discovered. Representatives of WR-ALC, the contract administration activity, and the contractor, must be in agreement that such items are excess to total contract requirements prior to disposal action.

(2) The contractor shall be instructed in writing as to the items and quantities to be eliminated from stock.

i. Complete DD Form 1348-1 (as specified in Attachment Three).

j. Action to be taken in disposing of property received which is not acceptable, identifiable, or related to support of the contract are:

(1) Property received against a contractor requisition other than that ordered, or that is not identifiable as an acceptable interchangeable or substitute item, shall be reported on Standard Form 364, (Report of Item Discrepancy) according to discrepancy reporting as prescribed in AFR 400-54. The completed SF 364 shall be forwarded to the shipping activity for corrective action to prevent recurrence. The items received and reported on SF 364 shall be processed according to the disposition of excess government property criteria specified in the following portions of this paragraph. When the shipping activity is an Air Logistics Center (ALC), the focal point for receipt/control of SF 364 is the "DSQ" Quality Management Division.

(2) Property received by a contractor and recognized as misdirected, shall be rerouted to the correct location if known by the contractor. If the correct location cannot be identified, disposition action shall be taken according to the disposition of excess government property criteria specified in the following portions of this paragraph. A discrepancy report, SF 364, shall be prepared and forwarded to the shipping activity for corrective action to prevent recurrence.

k. Property received or shipped by a contractor under the following conditions shall be returned, using DD Form 1348-1. A "Y" code shall be inserted in Column 56 to assure proper crediting:

(1) When the Inventory Management Specialist/ACO directs the contractor to ship defective items under warranty to the manufacturer for the correction of the defect or replacement of the item per AFM 67-1, Volume I, Part One, Chapter 10, Section J.

(2) When quantities received are greater than quantity ordered.

(3) When items are received in error.

(4) When items have a latent defect when issued to the contractor.

1. When items are turned in to satisfy IM requirements elsewhere.

12. DISPOSITION OF CONDEMNED GOVERNMENT PROPERTY: The contractor shall process to plant clearance for disposal, as directed by FAR section 45.6, all items condemned during the performance of this contract. These items shall be processed within 30 days from date of condemnation.

13. CONTRACTOR PRESERVATION, PACKAGING, PACKING, MARKING:

a. Reparable, excess and residual parts shall be packaged as prescribed in ASTM 3951, Standard Practice for Commercial Packaging, to afford adequate protection to prevent deterioration due to rust, corrosion or physical damage. Unless otherwise specified, the quantity per unit pack shall be one. For hazardous paint related items, a Material Safety Data Sheet (available from paint vendor) is required. Hazardous materials other than paint related shall be shipped in accordance with Title 49 of the Code of Federal Regulations.

b. The contractor shall also comply with the identification marking instructions specified in paragraph 11.

c. GFM items in their original package shall be shipped as is. All remaining items to be returned shall be packaged as prescribed in ASTM 3951, Standard Practice for Commercial Packaging, to prevent deterioration due to rust, corrosion or physical damage. Unless otherwise specified, the quantity per unit pack shall be one. All items shall be identified with appropriate NSN/Part Number.

14. TRANSPORTATION: The contractor shall comply with FAR 52.247-55.

15. CONTRACT REPORTING: Reports required shall be identified and listed on DD Form 1423 (Contract Data Requirements List).

16. VISITS: Surveillance visits shall be made by the PCO/ACO or their representatives, when such visits are considered necessary, particularly in relation to contract material control and production schedules.

17. OTHER:

a. The contractor shall not order GFM or purchase CAP material for any other contract, utilizing the requisition codes or CAP funds assigned to this contract.

c. The Government reserves the right to withdraw any Government property in the possession of the contractor to supply other urgent USAF requirements. Warner Robins ALC/LBRA will be the approval office for directed shipments of expense material prior to movement of material. If any item so removed by the Government is still required to complete the contract, the contractor shall take appropriate action to replace the removed item.

d. If it becomes evident, during the last six months of the contract, that an option shall most probably be exercised, the PCO will notify the contractor through the ACO to maintain stock levels necessary to meet the option workload.

e. Fuel, oil and lubricants shall be furnished by the Government. The contractor shall submit quarterly fuel requirements to SA-ALC/SFRF, 1014 Billy Mitchell Blvd, Suite 1, Kelly AFB TX 78241-5603 (Phone 210-925-8891). Requirements forecasts shall be submitted on AF Form 207 IAW the instructions contained in AFM 67-1, Vol I, Part 3, Section H, Paragraph 167.

18. All references called out in this Appendix B are listed as follows:

AF Pamphlet 72-5 FAR 45

AFM 67-1, Vol I FAR 52.247-55

AFR 400-54 FEDLOG

DI-ILSS-81510 MILSTRAP

DOD 4000.25-1-M

APPENDIX B

ATTACHMENT ONE

INSTRUCTIONS FOR PREPARATION OF MANUAL GFM REQUISITIONS

DD FORM 1348-6

Card Column 1-3 Document Identifier. Enter one of the following 3-digit codes.

For Domestic Shipment For Overseas Shipment

WS/NSN/NATO Stock No AOA AO1

W/Part No. AOB AO2

W/Other AOD AO4

W/Written Data AOE AO5

Card Columns 4-6 Routing Identifiers - F2M

Card Column 7 Media & Status Code

Code Media & Status Code

S 100% Supply and Shipment Status to requisitioner by transceiver.

T 100% Supply and Shipment Status to requisitioner by mail.

U 100 percent Supply and Shipment Status to supplementary address by transceiver.

V 100 percent Supply and Shipment Status to supplementary address by mail.

Card Columns 8-22 Stock Number. Enter 13 digit National Stock Number (NSN) when applicable. When manufacturer's part number applies: Enter manufacturer's five digit code. Leave unused space blank. NOTE: If the manufacturer's part number exceeds 10 digits, entire manufacturer's code; part number and T.O., figure and index number must be entered in the remark's block.

Card Columns 23-24 Unit of Issue. Enter unit of issue. (Example: EA for each or FT for feet.)

Card Columns 25-29 Quantity. Enter quantity required and prefix with zeros to fill the field. If quantity exceeds 99,999, prepare additional requisitions as required.

Card Columns 30-43 Document Number. Enter EZ (Contractor's Activity Address Code). If any questions, contact ACO for clarification. Enter last numeric digit of calendar year in which document originated. Enter numeric consecutive day of the calendar year (i.e. Julian date). Example: 4001 is 1 Jan 84). Enter four digit serial number assigned to requisition. Serial numbers shall be assigned by requisitioner and shall not be duplicated on any one day. Serial numbers must have an "M" in the first position.

Card Columns 44 Demand Code. Enter the appropriate demand code as follows:

(a) An "R" shall be used if it is a recurring demand (a demand to replenish material used on a day-to-day basis).

(b) An "N" shall be used if it is a non recurring demand (a demand made on a "one-time" basis).

(c) An "O" shall be used if a requisitioning activity is submitting requisitions for substitute items which are acceptable in lieu of previously requisitioned but delayed items.

Card Columns 45-50 Supplementary Address. Enter Y plus the last digit of the contract year plus the last four digits of the contract number or the order to a basic ordering agreement when shipment is to be made to the requisitioner. Enter Activity Address Code of recipient if material is being shipped to other than the requisitioner.

Card Columns 51 Signal Code. Enter applicable signal code as follows:

"C" - Ship to requisitioner. Bill to activity designated in CC 52.

"L" - Ship to supplementary addressee. Bill to activity designated in CC2. Requisitions for special support items (loaned equipment).

"D" - No billing required. Ship to requisitioner.

"M" - No billing required. Ship to supplementary address.

Card Columns 52-53 Fund Code. Enter "LR", code for Warner Robins ALC Industrial Fund.

Card Columns 54-56 Distribution - Enter "L86".

Card Columns 57-59 Project Code. Leave blank when no project code assigned.

Card Columns 60-61 Priority Code.

Card Columns 62-64 Required Delivery Date. Must Fill (Julian Date)

Card Columns 65-66 Advice Code. Leave blank or enter appropriate advice code.

2A Item not locally obtainable through manufacture, fabrication, or procurement.

2B Requested item only will suffice. Do not substitute/inter-change. Also applies to "obsolete" items previously rejected with status code CJ.

2C Do not back order. Reject unfilled quantity not available to meet standard delivery.

2D Furnish exact quantity requested.

2J Do not substitute or back order any unfilled quantities.

2L Quantity reflected in quantity field exceeds normal demands; however, this is a confirmed valid requirement.

Card Columns 67-72 Leave blank.

Card Columns 73-80 Abbreviated Contract Number. Enter abbreviated contract number assigned to the contract.

APPENDIX B

ATTACHMENT TWO

INSTRUCTIONS FOR PREPARATION OF MECHANIZED GFM REQUISITIONS

DD FORM 1348M

Card Columns 1-3 Document Identifier. Enter one of the following 3 digit codes:

For Domestic Shipment For Overseas Shipment

WS/NSN/NATO Stock No AOA AO1

Card Columns 4-6 Routing Identifiers F2M

Card Column 7 Media & Status Code

Code Definition

S 100% Supply and Shipment Status to requisitioner by transceiver.

T 100% Supply and Shipment Status to requisitioner by mailer.

V 100% Supply and Shipment Status to supplementary address by mail.

Card Columns 8-22 Stock Number. Enter 13 or 15 Digit National Stock Number (NSN).

Card Columns 23-24 Unit of Issue. Enter the two letter abbreviation. (Example: EA for each, FT for feet).

Card Columns 25-29 Quantity. Enter quantity required and prefix with zeros to fill the field. If quantity exceeds 99,999, prepare additional requisitions as required.

Card Columns 30-43 Document Number.

a. Columns 30-35 enter contractor's activity address code (EZ_____).

b. Column 36 enter last numeric digit of calendar year in which document originated. Example, 1981 enter "1".

c. Columns 37-39 enter numeric consecutive day of the calendar year, i.e., Julian date. Example, 0001 is 1 January.

d. Column 40 enter "M".

e. Columns 41-43 enter a three digit serial number assigned to each requisition. Serial number shall be assigned by requisitioner and shall not be duplicated on any one day.

Card Columns 44 Demand Code. Enter the appropriate demand from the following:

a. Enter "R" if the demand is recurring (a demand to replenish material used on a day-to-day basis).

b. Enter "N" if the demand is non recurring (a demand made on a "one-time" basis).

c. Enter "O" if submitting requisitions for substitute items which are acceptable in lieu of previously requisitioned but delayed items.

Card Columns 45-50 Supplementary Address.

a. Enter activity address code (EZ______) of recipient if material is to be shipped to other than the requisitioner.

b. If not used as supplementary address, enter in:

Column 45 Enter Y.

Column 46 Enter the last digit of the contract year.

Columns 47-50 The last four digits of the contract number or order number to a basic ordering agreement.

Card Columns 51 Signal Code. Enter applicable signal code as follows:

"C" - Ship to requisitioner. Bill to activity designated in card column 52.

"L" - Ship to supplementary addressee. Bill to activity designated in card column 52. Requisitions for special support items (loaned equipment) will be signal code "D", no billing required ship to requisitioner, or "M", no billing required ship to supplementary address.

Card Columns 52-53 Fund Code. Enter "LR". (code for Warner Robins ALC Industrial Fund.)

Card Columns 54-56 Distribution Code - L86 (Columns 54-56 shall be blank for government furnished equipment).

Card Column 52-55 Leave blank. For requisitions for special support items.

Card Column 56 Enter "K" for requisitions for special support items (loaned equipment).

Card Columns 57-59 (Project Code) leave blank when no project code assigned.

Card Columns 60-61 Priority Code.

a. Enter 03 if a work stoppage exists or will exist within eight (8) days.

b. Enter 06 if a work stoppage is not involved, but contractor's ability to meet contract commitment is in jeopardy due to non-availability of an item.

c. Enter 13 if item requested is for routine stock replenishment.

Card Columns 62-64 Required Delivery Date. Must Fill (Julian Date)

Card Columns 65-66 Advice Code. Leave blank or enter appropriate advice code. Enter advice code as follows:

2A Item not locally obtainable through manufacture, fabrication, or procurement.

2B Only requested item will suffice. Do not substitute/inter- change. Also applies to "obsolete" items previously rejected with status code CJ.

2C Do not back order. Reject unfilled quantity not available to meet standard delivery.

2D Furnish exact quantity requested.

2J Do not substitute or back order any unfilled quantities.

Card Columns 67-72 Blank

Card Columns 73-80 Abbreviated Contract Number. Enter abbreviated Contract Number assigned to the contract. (Reference cover page to Appendix B.)

APPENDIX B

ATTACHMENT THREE

INSTRUCTIONS FOR PREPARATION OF SHIPPING

DOCUMENT FOR GFM TURN-IN

MANUAL

DD Form 1348-1 is the only authorized return document. DO NOT USE DD Form 1149!"

Card Columns 1-3 Document Identifier - Enter D6.

Card Columns 4-6 Routing Identifier.

a. In column 4 - enter "F".

b. In column 5 - enter the item manager ALC for items supplied by the ALC or the nearest geographical ALC for DLA/OSSF items.

Code ALC

F Sacramento

G Ogden

H Oklahoma

L Warner Robins

P San Antonio

c. In column 6, enter "Z" for items supplied by the ALC or "B" for DLA/OSSF items.

Card Column 7 Status Code - "F" for (GFM) "G" for (GFE).

Card Columns 8-22 Stock Number - Enter National Stock Number of item being returned.

Card Columns 23-24 Unit of Issue - Enter the two-letter abbreviation as shown in the catalog or stocklist. Example: EA for each, FT for feet.

Card Columns 25-29 Quantity - (Must Fill) If card column 72 is "J", then "Quantity" shall be one. If card column 72 is other than "J", then "Quantity shall be the quantity being returned.

Card Columns 30-43 Document Number

a. Columns 30-35 - Enter contractor's activity address code (EZ ).

b. Column 36 - Enter the last numeric digit of the calendar year in which the document originated. Example: 1995 enter (5).

c. Columns 37-39 - Enter the numeric consecutive day of the calendar year, i.e., Julian date. Example 23 March is 082.

d. Columns 40-43 - Enter a four-digit serial number assigned to each turn-in. The serial number will be assigned by the contractor returning the item and is not to be duplicated on any one day.

Card Column 44 Demand Code - Leave blank.

Card Column 45 Enter Code "Y".

Card Column 46 Enter last digit of the contract year identified in the contract number.

Card Columns 47-50 Enter the last four digits of the contract number. If the turn-in is against a basic ordering agreement, enter the same funding ALC that was used when the material was requisitioned.

Card Column 51 Signal Code. Enter "C".

Card Columns 52-53 Fund Code - (Must Fill) Enter "LR".

Card Column 54 Distribution - Enter "L".

Card Column 55 Leave blank.

Card Column 56

a. Enter a "Y" in column 56 if one of the following conditions exists:

(1) If the turn-in is because more material was received than the quantity that was requisitioned.

(2) If the turn-in is because the item had a latent defect when received.

(3) If the turn-in is because the item received is not what was ordered.

(4) If the turn-in is serviceable GFM issued for testing purposes under unsatisfactory report.

(5) If the turn-in is directed by the item manager to satisfy a requirement elsewhere.

b. Enter a "K" in column 56 if the item being returned was originally requisitioned for loan/bailment.

c. If one of the above conditions does not exist, leave column 56 blank.

Card Columns 57-59 Project -Leave blank.

Card Columns 60-61 Priority - Leave blank unless directed otherwise by the contracting officer.

Card Columns 62-65 Leave blank.

Card Column 66 Enter R.

Card Column 67-69 Leave blank.

Card Column 70 Ownership Purpose- Enter "A".

Card Column 71 Condition Code - Enter applicable condition code such as "A" for serviceable, "F" for unserviceable (reparable), etc.

Card Column 72 "Management code - (Must Fill)

Enter "F" when returning serviceable GFM

Enter "L" when returning GFE"

Enter "J" when returning GFM that is unserviceable Reparable Support Division (RSD) material (Budget Code 8 and ERRC "T").

Card Columns 73-80 Leave blank.

APPENDIX B

ATTACHMENT FOUR A

GOVERNMENT FURNISHED MATERIAL (GFM) AUTHORIZED/FSCs

1. The following Federal Supply Classes (FSC's) are authorized as GFM.

1560 1610 1620 1630 1650 1660 1670 1680 2620 2840 2915

2925 2935 2945 2995 3020 3110 3120 3130 4010 4020 4030

4710 4720 4730 4810 4820 5305 5306 5307 5310 5315 5320

5325 5330 5340 5345 5350 5360 5365 5530 5821 5826 5831

5841 5895 5905 5920 5925 5930 5935 5940 5945 5950 5960

5961 5970 5975 5985 5995 5999 6110 6615 6620 6625 6680

6685

on an exception basis by WR-ALC/LBRA. 2. Any non-stocklisted items required should be local manufactured or bought using CAP procedures.

3. Any other specific items required in the performance of this contract for which the FSC is not listed in this attachment, may be ordered by the contractor as GFM and will be approved/ disapproved for release.

APPENDIX B

ATTACHMENT FOUR B

CONTRACTOR FURNISHED MATERIAL (CFM)

The following FSCs are designated as Contractor Furnished Material (CFM) which is expense material to be provided by the contractor as a part of the maintenance service performed. This material is incorporated into or attached to an aircraft to be delivered under the contract or may be consumed in the performance of the contract. CFM is not to be confused with CAP which is purchased by the contractor for the government, using government funds.

6135 6140 6810 6830 6850 8010

8030 8040 8135 9150 9330 9510

9515 9535 9540

APPENDIX B

ATTACHMENT FIVE

GOVERNMENT FURNISHED EQUIPMENT AUTHORIZED (GFE)

The following items are required and will be furnished as loan equipment upon requisition.

NSN PN Description Qty

4920-00-245-4033 607330-9-1 Test Set, Press 1

6110-00-601-2985 SE1076 Distribution Box 1

6625-01-035-0257 361-015-001 Test Set, Fuel System 2

6695-01-101-5691YD 2702701-1A Sampler, Liquid 1

APPENDIX B

ATTACHMENT SIX

CONTRACTOR COMMUNICATIONS NETWORK (CCN) AND G009

1. GENERAL:

1.1 The purpose of this attachment is to provide the specific conditions, hardware specifications, software criteria and communications interface to support contractor Government Furnished Material (GFM) requirements. This system will remotely interface with the Defense Logistics Agency (DLA)/ Defense Automatic Addressing System Center (DAASC) front-end computer, located at Gentile AFS, Ohio.

1.2 The DLA/DAASC front-end computer at Gentile AFS, Ohio will act as host for all CCN and G009 transactions. The contractor shall be required to sign a DAAS Automated Message Exchange System (DAMES) customer license agreement that will be furnished by DAASC.

1.3 The contractor terminal, using the dedicated telephone line provided by the contractor and the software provided by WR-ALC and DAASC, will dial-up the DAASC computer to initiate the transmitting or receiving of GFM related information.

2. BACKGROUND: The CCN/G009 system software provides Air Force contractors having aircraft and equipment repair contracts the capability to electronically process supply requisitions, End Item Transaction Reporting and GFM reporting requirements as required in support of their contracts.

3. TECHNICAL CONSIDERATIONS: The contractor shall provide the following hardware to meet the specifications indicated:

3.1 Personal Computer Hardware

3.1.1 IBM PC, XT, AT or PS/2 Personal computer or IBM compatible

3.1.2 256K minimum RAM.

3.1.3 20 MB Hard Disk Drive.

3.1.4 DOS Version 3.0 or higher. Version of DOS and BASIC Interpreter must be compatible.

3.1.5 BASIC Interpreter: BASIC or GW-BASIC Version 3.2 or higher or Q-BASIC if DOS is 5.0.

3.1.6 Monitor (color or monochrome).

3.1.7 Printer (configured at LPT1:).

3.2 Dames Asynchronous System Requirements.

3.2.1 Hayes Auto-dial model or Hayes compatible.

3.2.2 1200 baud capability minimum.

3.2.3 Modem must be capable of understanding the Hayes AT command set.

3.2.4 Modem must be connected via direct dial telephone circuit.

3.2.5 Asynchronous communications port (Configured as COM1 or COM2).

3.3 Dames Bisynchronous System Requirements (Optional if approved by DAASC).

3.3.1 AST-3780 RJE Package (from AST Research Inc.) (This is a communications board that fits inside the PC in an expansion slot).

3.3.2 External Bell 201-C or compatible modem for 2400 baud communications.

4. Responsibility of Contractor:

4.1 Capability for direct dial telephone line hook-up for the system Data Transmission shall be provided by the contractor with no call waiting or other line interruption features.

4.2 The contractor will receive DAMES software from DAASC. Immediately upon receipt, the contractor shall install the software and make electronic connectivity with DAASC.

4.3 The installation of the GFM software will be assisted by personnel from WR-ALC.

4.4 Initial training on the use of the GFM software will be provided by WR-ALC/FMLMC. Follow-up training shall be the responsibility of the contractor.

4.5 The contractor is responsible for the maintenance of the hardware and for providing supplies (paper, ink, ribbon, extra disks).

4.6 It is the contractor responsibility to keep the system operational and compatible with the DAASC host computer.

4.7 The contractor shall use the CCN/G009 system for all material requisitions and all GFM/production reporting, as appropriate (DI-ILSS-81510, Government Furnished Material Transaction Report).

4.8 System failures that cannot be corrected within 24 hours shall be reported within 24 hours to WR-ALC/FMLMC, phone 912-926-2504 or FAX 912-926-4241.

APPENDIX B

ATTACHMENT SEVEN

REQUEST FOR SUPPLY ASSISTANCE FORMAT

MEMORANDUM FOR WR-ALC/LBRA

FROM: Name of Contractor

Location

Contract Number

SUBJECT: Request for Supply Assistance

1. The following list reflects all items presently critical to the production of C-130 aircraft S/N__________.

REQUISITION CURRENT NEED LBRA

NSN NUMBER STATUS DATE REPLY

Leave

Blank

REMARKS

2. Point of contact is ___________________________(Name and Telephone number).

TIM ANNIS (TEAM LEAD), WR-ALC/LBP

JIMMY A. ROGERS, WR-ALC/FMLMC

Joel is the branch supervisor of the F-15 Production Division’s logistics support team. He has 10 years experience in depot aircraft repair. He has a Bachelor of Industrial Engineering degree from Georgia Institute of Technology. Mr. Murphy’s 38 years of government experience has been associated with the support areas of the depot maintenance operations. Seven years were spent in the workloading, four years in the plant management division, two years in quality assurance, and fifteen years providing industrial engineering support to the depot maintenance organization.

Ms. Maddux is a Contract Specialist assigned to the Technical Assessment Group of the Aircraft Program Management Office (APMO) in Marietta, Georgia. She has over eight years of experience in Department of Defense procurement as a buyer, contract administrator, Contracting Officer and Administrative Contracting Officer. Ms. Maddux has worked on such programs as spares, modification, and repair effort on the KC-135 program, construction administration and services buying at an overseas Air Force Base, and contract administration of a wide variety of aircraft overhaul and maintenance contracts administered by DCMC. Her wide range of experience in administering aircraft overhaul, modification and repair contracts for DCMC enabled her to provide valuable input to the CAR team.

Mr. Harlow brings 20-years experience in DOD maintenance and logistics program management to the CAR study. His past assignments included managing the NAVSEA ShipALT Maintenance System Upgrades Program, US Navy; Maintenance and Logistics Information Systems Program, Ingalls Shipbuilding; Electronic Maintenance Systems Program, and Automated Publications Production System, U.S. Army . His strong techniques in facilitating the CAR team effort allowed the team to maintain a steady focus on the CAR objectives.

Mike Denson is a re-engineering consultant for Intergraph Corporation. Mike has ten years of professional experience in manufacturing engineering, computer programming and consulting. Mr. Denson’s ability to grasp new and innovative concepts helped the team "think out of the box".

Ed Humphreys is a Principal Analyst with Modern Technologies Corporation supporting the C-130 System Program Office with maintenance and logistics expertise in implementing Integrated Weapon System Management (IWSM). He is a retired USAF Colonel with over 28 years experience in all levels of aircraft maintenance (both military and FAA certified organizations) and logistics management. He gained wholesale depot level maintenance experience while working at various functions in the Warner Robins Air Logistics Center. He has commanded squadron and group level fighter, tanker and support aircraft maintenance and logistics organizations in both the CONUS and overseas locations. His extensive field level background provided the CAR team an excellent field level customer perspective and an executive level perspective in the study.

SD-2, Buying Commercial & Nondevelopmental Items: A Handbook, Office of the Under Secretary of Defense for Acquisition and Technology, April 1996,.

Reengineering the Corporation: A Manifesto for Business Revolution, Michael Hammer & James Champy, Harper Collins Publishers Inc., NY, 1994.

Report on Policy Regarding Performance of Depot-Level Maintenance and Repair for the Department of Defense, Office of the Secretary of Defense, March 1996.

Policy Regarding Performance of Depot-Level Maintenance and Repair for the Department of Defense, Office of the Secretary of Defense, March 1996.

Improving the Combat Edge Through Outsourcing, Office of the Secretary of Defense, March 1996.

Final Report, Air Force Material Command (AFMC) Reengineering Initiative #14, Increased Reliance on the Defense Contract Management Command (DCMC), HQ AFMC/DR, 6 May 1996.

General Desktop Procedures Manual, Airframe Vendor Management Department, Federal Express Corporation, 16 April 1996.

C-141 Parts Availability Reengineering Final Report, Intergraph Corporation, October 1995.

USAF Baseline Lean Logistics Master Plan and Road Map, Version 4.0, HQ USAF/LGM-2, 31 January 1995.

ABW Air Base Wing

ACC Air Combat Command

ACI Analytical Condition Inspection

ACO Administrative Contracting Officer

ACRN Accounting Classification Reference Number

AMC Air Mobility Command

ANG Air National Guard

APMO Aircraft Program Management Office

AFI Air Force Instruction

AFM Air Force Manual

AFMC Air Force Material Command

AFR Air Force Regulation

AFSOC Air Force Special Operations Command

AFTO Air Force Technical Order

ALC Air Logistics Center

AUR Actual Repair Cost

AWP Awaiting Parts

BEQ Best Estimated Quantity

BOM Bill of Material

BR Baseline Requirements

BRAC Base Realignment and Closure

CAR Contract Aircraft Repair

CAO Contracting Administrative Officer

CAP Contractor Acquired Property

CAS Contract Administration Services

CBD Commercial Business Daily

CDRL Contractor Deliverable Requirements List

CFE Contractor Furnished Equipment

CFM Contractor Furnished Material

CFP Contractor Furnished Property

CFT Contract Field Team

CIE Controlled Interval Inspection

CLIN Contract Line Item Number

CLS Contractor Logistics Support

CMRB Contractor Maintenance Review Board

CCN Contractor Communications Network

COAL Customer Order Acceptance List

CONUS Continental United States

DAASC Defense Automatic Addressing System Center

DER Designated Engineering Representative

DDR Daily Demand Rate

DFT Depot Field Team

DID Data Item Description

DLA Defense Logistics Agency

DLSP Defense Logistics Strategic Plan

DMBA Depot Maintenance Business Area

DCMC Defense Contract Management Command

DOD Department of Defense

EDD Estimated Delivery Date

ECP Engineering Change Proposal

ERRC Expendability-Recoverability-Repairability Category

FAA Federal Aviation Administration

FAR Federal Acquisition Regulation

FCF Functional Check Flight

FFP Firm Fixed Price

FOD Foreign Object Damage

FSC Federal Stock Class

GIDEP Government Industry Data Exchange Program

GFP Government Furnished Property

GFE Government Furnished Equipment

GFM Government Furnished Material

GOCO Government Owned Contractor Operated

HAZMAT Hazardous material

HGI "How Goes It"

HMMP Hazardous Material Management Plan

IAW In Accordance With

ICS Interim Contractor Support

IDEF0 Integrated Definition model level 0

IDEF3 Integrated Definition model level 3

IM Item Management

IPT Integrated Product Team

IS Industrial Specialist

IWSM Integrated Weapon System Support

JCS Joint Chiefs of Staff

KSBI Knowledge Based Systems, Inc.

LP Local Purchase

LLD Liquidation, Loss, and Damage

MAJCOM Major Command

MDS Mission Design Series

MICAP Mission Capability

MILSTRAP Military Standard Requisitions and Issue Procedures

MISTR Management of Items Subject To Repair

MLG Main Landing Gear

MMR Minimum Mandatory Requirements

MOA Memorandum of Agreement

MRL Material Requirements List

MRRB Material Requirements Review Board

NESHAP National Emissions Standard for Hazardous Air

NDI Non-Destructive Inspection

NSN National Stock Number

O&A Over and Above

O&I Organizational & Intermediate

OACIS Over and Above Centralized Information System

OC-ALC Oklahoma City ALC, Tinker AFB OK

OMEI Other Major End Item

OO-ALC Ogden ALC, Hill AFB UT

OSHA Office of Safety and Health Administration

PACAF Pacific Air Forces

PCO Procuring Contracting Officer

PDO Publications Distribution Officer

PDM Programmed Depot Maintenance

PMS Production Management Specialist

PMSS Program Management Support System

PR Purchase Request

QAR Quality Assurance Representative

QDR Quality Deficiency Report

REMIS Reliability & Maintainability Information System

RIMCS Reparable Item Movement Control System

RFP Request for Proposal

RSD Readiness Spares Division

RSD Readiness Base Levels

SAAM Special Assignment Airlift Mission

SOO Statement Of Objective

SOW Statement of Work

SPO System Program Office

SPD System Program Director

SSC Shop Support Center

T & M Time and Material

TCTO Time Compliance Technical Orders

TDY Temporary Duty

TO Technical Order

UDLM Unscheduled Depot Level Maintenance

UND Urgency of Need Designator

USP Unit Sales Price

UR Unsatisfactory Report

USAF United States Air Force

USAFE United States Air Force in Europe

USCG United States Coast Guard