Government Property Management for Air Force Base

Appendix B


HEADQUARTERS
OKLAHOMA CITY AIR LOGISTICS CENTER
UNITED STATES AIR FORCE
TINKER AIR FORCE BASE, OKLAHOMA 73145
APPENDIX B


CONTRACT NUMBER: F34601-99-D-0002 PMS: SEE PAGE 2 RFP NUMBER: F34601-98-R-0038/F41608-98-R-0084 OC-ALC/LP-1 ABB CONTRACT NO(s): P0002133, P0002134, P0002162 PHONE NO (405) 736-7855 TYPE: GFM & CAP


GOVERNMENT PROPERTY MANAGEMENT


Type Work: Repair/Overhaul of T56/TF39 Engines, Fuel Accessories and 2LM on T56 and TF39 Engines.


TABLE OF CONTENTS


Paragraph Page - --------- ---- 1. Terms Explained...................................................... 3 2. Government Furnished Material/Property (GFM/GFP)..................... 7 3. Contractor Acquired Property (CAP)................................... 8 4. Contractor Communications Network (CCN).............................. 8 5. Contractor Property Control Records.................................. 9 6. Stock levels of (GFM)................................................ 10 7. Recorder Points...................................................... 11 8. Uniform Material Movement and Issue Priority System (UMMIPS)......... 12 9. Military Standard Requisitions and Issue Procedures (MILSTRIP)....... 12 10. Actions Required on Supply Status Codes.............................. 13 11. Production Problems.................................................. 14 12. Disposition of Government Property................................... 14 13. Discrepancies Incident to Shipment................................... 16 14. Disposition of Condemned Government Property......................... 17 15. Contractor Preservation, Packaging, Packing, and Marking............. 17 16. Contractor Reporting................................................. 18 17 Visits............................................................... 18 18. Other................................................................ 18 19. References........................................................... 19


LIST OF ATTACHMENTS


Instructions for Preparation of Requisitions........................... Atch 1 Instructions for Preparation of Turn-In Documents...................... Atch 2 Government Furnished Material Authorized (or MRL)...................... Atch 3 CCN/G009 Reporting Requirements........................................ Atch 4


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Appendix B


PMS/WORKLOAD MANAGER


T-56 ENGINE EARL RAY
SA-ALC/LPE
COMM: 210-925-7174
DSN: 945-7174


TF-39 ENGINE ELLA SAINE
SA-ALC/LPE
COMM: 210-925-6344
DSN 945-6344


MANAGEMENT CONTROL SA-ALC/LPCC AUTHORITY (MCA) AND BILL VELTEN or LOU MONTGOMERY G009 REPORTING COMM: 210-925-4794
DSN 945-4794


CONTRACTING OFFICER ROBERT W. DRIVER
OC-ALC/LT (SOUTH)
COMM: 210-925-7411
DSN 945-7411


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Appendix B


PURPOSE STATEMENT


This Appendix B is part of the contract and provides detailed instructions pertaining to the management and control of government owned property and instructions/guidance on how the property is obtained, maintained, protected, controlled, accounted for, and disposed of. These instructions expand the general guidance given in the Federal Acquisition Regulation (FAR) Part 45.5, which is incorporated by reference and made part of this contract. If/when the provisions of this appendix conflict with the existing FAR, Part 45, or other government directives, the contractor will contact the Contracting Officer for guidance. A summary of the methodology to be instituted for management and control of property for this workload is as follows:


a. Consumable and reparable/investment direct material will be Government-furnished material (GFM) after contract award. (See Attachment Three (3) for applicable Federal Stock Classes). GFM used in repair of Exhibit Line Items (ELINs) will be requisitioned by the Contractor after contract award.


b. GFM does not include indirect materials, such as: hacksaw blades, lathe tool bits, drill bits, probes, files, masking tape, wiping rags, lighting supplies, gloves, washroom supplies, solvents, office supplies, janitorial supplies, cleaning compounds, and similar items.


c. The Government will supply Base Operating Support (BOS) services (Attachment 1 to this contract) until the lease in furtherance for the Propulsion Business Area (PBA) is executed.


d. The Air Force, Navy, and Coast Guard will retain end-item management responsibilities, to include end-item repair and condemnation forecasting, budgeting, shipment, and condemnation approval. All items listed in this Contract as Exhibit Line Items (ELINs) for repair are considered "end-items" and the Government will retain ownership and furnish these items to the Contractor as GFM for the life of the contract.


1. TERMS IS EXPLAINED: Terms and definitions are included in the regulations referenced in paragraph 19 of this appendix and are supplemented, as follows, when applicable:


a. Abbreviated Contract Number: An eight position alpha numeric designator that represents the contract number and is used in requisitioning material and reporting transactions in the G009 Transaction Reporting System. The first position indicates the ALC with Management Control Authority (MCA) for the contract. The MCA for this contract will be transferring from SA-ALC to OC-ALC sometime in the future. Until the MCA changes, the first position indicator will be a "P". Once the MCA transitions to OC-ALC, the first position will be a "H". The remaining seven positions are the control number. This contract will utilize three (3) Abbreviated Contract Numbers. One for TF-39, one for Air Force T-56, and one for Navy T-56. For financial tracking purposes, the Abbreviated Contract Numbers will change every quarter. Procurement Buyer must contact SA-ALC/FMPW (COMM: 210-925-4861, DSN 945-4861) every quarter to obtain these numbers.


b. Administrative Contracting Officer (ACO): A contracting officer assigned the responsibility for the post award functions related to the administration of a government contract


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Appendix B


in the field. The ACO is normally located in the Defense Contract Management Area Operations (DCMAO) office. The ACO is responsible for ensuring the contractor performs in accordance with the terms of the contract.


c. Agency Peculiar Property (APP): Government owned personal property for military operations. It includes end items and integral components of military weapon systems along with related peculiar support equipment, which are not readily available as a commercial items. It does not include normal government material, special test equipment, special tooling, or facilities. Also referred to as military property.


d. Bench Stock (BS): Low cost, high usage, non-sensitive, consumable material stored in work areas for contract performance. Quantities of such stock shall not exceed that amount normally consumed in a 75-day period, or as established in the contractors approved property control system. (Normally only used for broken units of issue)


e. Contractor Acquired Property (CAP): Property procured, local manufactured or otherwise provided by the contractor for the performance of the contract. Title to which is vested in the government. (FAR Part 45-101) NOTE: MUST BE REPORTED THROUGH THE G009 SYSTEM TO THE ALC AND MUST CONTAIN THE CORRECT COST.


f. Consumable Item: Items not subject to repair, which are consumed in use. However, used items may be reconditioned and used again if still serviceable and safety of flight is not jeopardized. Also, referred to as expense items with an ERRC designator of XB3 and XF3, and ERRC codes of N and P.


g. Contractor Furnished Property (CFP): Property other than GFP and CAP, furnished and financed by the contractor without separate reimbursement per the terms of the contract, title to which remains with the contractor until consumed.


h. Contractor Communications Network (CCN): Provides the contractor with a computerized electronic method of transmitting (through the Internet) Government Furnished Material and End Item Transaction Reporting System (G009) data transactions. The CCN DAASC Automated Message Exchange System (DAMES) portion will still be used to transmit MILSTRIP requisitions and receive data regarding their status. Government Furnished Material and End Item Transaction Reporting System (G009) data transactions and reports of Discrepancies SF Form 364 may also be transmitted using the DAMES portion of CCN.


i. Direct Parts and Materials: Those parts or materials purchased, supplied, manufactured or fabricated by the contractor for the sole purpose of incorporating them into or making them a part of the end product or components thereof covered by this contract.


j. Expendability, Recoverability, Repairability Category (ERRC) Code: The ERRC code is assigned to an Air Force item to determine the extent of repair for that item.


k. Government Furnished Equipment (GFE): An all inclusive term to define all types of equipment defined in FAR Part 45. It includes facilities, plant equipment, agency peculiar property and special tooling. For the purpose of reporting dollar values on the annual DOD


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Appendix B


Property in the Custody of Contractors (DD Form 1662), items must be categorized as to the specific FAR definitions of property.


l. Government Furnished Material (GFM): Government property, sent to the contractor, which 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, assemblies, and small tools and supplies. GFM is also referred to as "materials" and "direct materials" under the terms of the contract (FAR 45.301)


m. Government Furnished Property (GFP): All property in the possession of or acquired by the government and subsequently delivered to or otherwise made available to the contractor. GFP includes the end item to be repaired by the contractor. This also includes Government Furnished (plant) Equipment (GFE), Government Furnished Materials (GFM) and Contractor Acquired Property (CAP) (FAR 45.101)


(1) Special Tooling (ST): 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 (see FAR 45.301) (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 (STE): 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 is 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 (see FAR 45.301) (except foundations and similar improvements necessary for the installation of special test equipment), general or special machine tools, or similar capital items.


(3) Facilities: Industrial property (other than material, tooling, agency peculiar property and test equipment) for production, maintenance, research, development, or test, including real property and rights therein, buildings, structures, improvements, and plant equipment.


n. Government Property (GP): All types of property owned or leased to the Government or acquired by the government under the terms of the contract. Government property includes GFM/GFP and CAP. (FAR 45-101)


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


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Appendix B


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


(3) Material Support Division (MSD) Items: Items that have an ERRC code of N, P, C, T, S, or U. The ERRC is the only way to distinguish reparability. The items use to be referred to as Expense items or Line replacement units/Shop replacement units.


o. Hazardous Material: Any used or unused property, including scrap and waste, that is ignitable, corrosive, reactive or toxic because of its quantity, concentration, or physical, chemical or infectious characteristics. The property can be in a solid, liquid, semi liquid or contained gas form and may cause or significantly contribute to an increase in mortality or serious illness, or pose a substantial threat or potential hazard to human health or the environment when improperly treated, stored, transported, disposed of, or otherwise managed.


p. Loan Agreement: A contractual arrangement that accomplishes the actual loan of government property and contains all of the information concerning the loan. Included are the names or descriptions of the property, purpose of the loan, use of property, the period of the loan, the place from or to which the property is to be delivered or returned, maintenance requirements, if any, and any other provisions considered necessary.


q. Loan Control Officer: An individual at the contract managing ALC who has the responsibility for all Government Furnished Equipment (GFE)/loan items who validates and tracts all contractor GFE requisitions, in accordance with AFM 67-1, Volume 1, Part 1, Chapter 10.


r. Management Control Activity (MCA): DOD component designated activity that initially receives and controls requisitions for Government Furnished Material supplied from the wholesale DOD supply system to support defense contracts or requirements.


s. Material Return Program (MRP): A means by which a contractor identifies excess government furnished material to the source of supply and the source of supply provides disposition information back to the contractor. DOD 4100.37, and DLA Customer Assistance Handbook, pages 3-9 and 3-10.


t. Plant Clearance Officer (PCO): An individual authorized to act on behalf of the ACO on all plant clearance matters concerning the screening, localization, redistribution and marketing of excess Government Property.


u. Procuring Contracting Officer (PCO): The person responsible for entering into a contract on behalf of the government. The PCO will ordinarily be located at the funding Air Logistics Center (ALC).


v. Production Management Specialist (PMS): An individual, at the contracting ALC, assigned to the contract to act as liaison for production, supply and transportation issues.


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Appendix B


w. Property Control Procedures: A detailed written description of the contractors operation for the control, use, and care of property while in the contractors possession.


x. Property Administrator (PA): An individual authorized to act on behalf of the ACO on all matters concerning the management of Government owned property.


y. Property Records: Records that include all documentation concerning Government Property.


z. Sensitive Property: Property for which the theft, loss or misplacement could be potentially dangerous to the public safety or community security, and which must be subject to exceptional physical security, control and accountability. The following types of property should be designated as "sensitive" in the contractors property management system: weapons, ammunitions, explosives, narcotics, and dangerous drugs.


2. GOVERNMENT FURNISHED MATERIAL/PROPERTY: (GFM/GFP)


a. Federal Stock Classes (FSC): Contractor requisition/procurement of GFP is limited to FSCs authorized as listed on Attachment 3 of this appendix. GFM identified in Attachment 3 of this appendix includes direct parts and materials. The contractor will not requisition, procure, nor be provided with, any other materials by the Government; however, if the material is not available, the contractor will provide said material as CFM in accordance with Clause H-917 of this contract and this appendix, as appropriate.


(1) Expense (ERRC Code N and P) and Investment/MSD (ERRC Code C, T, S, and U) - material used in repair of exhibit line items (end-items) will be utilized for the contract.


(2) GFE, as authorized on this contract, is identified in Attachments 2 and 3 to this contract. The contractor will comply with the GFE-related clauses in the contract. While the GFE is in the possession of the contractor, it is the contractor's responsibility to provide routine maintenance and calibration of the GFE to ensure the GFE is returned to the Government in the same condition as when provided, less normal wear and tear. GFE is provided for the accomplishment of the T56 engine workload for the United States Navy and USAF and TF39 USAF engine workloads. The T56 Navy GFE is the property of the US Navy and will accompany the Navy T56 workload if it is reassigned to another repair source.


NOTE: GFM IDENTIFIED ON ATTACHMENT THREE OF THIS APPENDIX INCLUDES DIRECT PARTS AND MATERIALS AND HAS BEEN AUTHORIZED.


b. The contractor will requisition the applicable supply management publications through the Contract Administration Office (CAO) who will establish an account with the local Publications Distributions Office (PDO) for the contractor. Essential publications are:


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Appendix B


(1) FEDLOG, logistical information system or equivalent DOD publications. The contractor will provide a CD-ROM reader capable of reading a 4.72-inch compact disk. The CD-ROM reader must conform to High Sierra and ISO 9660 Standards.


(2) DODM 4000.25 Military Standard Requisitioning and Issue Procedures (MILSTRIP).


(3) DLA Customer Assistance Handbook.


(4) DD FORMS 1348-1A (FOUR PART)


(5) AFMAN 23-110, Volume 2, CD-ROM Version.


NOTE: THE CONTRACTOR SHALL NOT ORDER GFM OR PURCHASE CAP MATERIAL FOR ANY OTHER
CONTRACT BY USING REQUISITIONING PROCEDURES OR CAP FUNDS ASSIGNED TO THIS
CONTRACT.


c. Initial GFP Support: The contractor shall requisition initial GFP stock, using the stock level establishment criteria provided in paragraph 6 of this Appendix B as guidance. It must be noted that the pipeline time will be excluded in determining initial stock levels.


d. Follow-on GFP Support: The contractor shall requisition authorized GFP items required to maintain stock levels, in accordance with paragraph 9 of this Appendix B.


3. CONTRACTOR ACQUIRED PROPERTY (CAP):


a. Contractor Acquired Property are items prescribed as authorized GFM in Attachment three of this appendix. The contractor is authorized, subject to the obligation of adequate funds, to acquire CAP EOQ material items (ERRCs other than T, C, S, U) without additional written approval when GFM is not or will not be available in sufficient time to produce ordered ELINs. Acquisition will not normally exceed quantities required for immediate consumption. CAP will be retained in a secured storage area and treated as GFM (to include reporting all CAP transactions through the G009 system). The contractor shall insure that quantities obtained with CAP funds are canceled from requisitioning backorders to prevent accumulation of GFM in excess of stock levels authorized. In addition, the contractor will process the receipt of CAP material through the G009. Transaction Reporting System using the actual cost of the material. This cost must agree with the billing submitted to the ACO for payment.


b. Each month, billings for actual CAP expenditures, supported by invoices, shall be submitted by the contractor to the Contract Administration Office (CAO). 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 this contract.


c. The contractor will not use CAP funds for other than GFM identified in Attachment three without prior written permission of the PMS/ES.


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Appendix B


d. The contractor shall acquire only CAP which has been developed and produced to meet federal/military standards and specifications, or an industry standard adopted 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


4. CONTRACTOR COMMUNICATIONS NETWORK (CCN): INTERNET AND DAMES


a. The success of any contract depends upon how fast and efficient communications are passed. They are passed to the sources of supply (SOS) for MILSTRIP documents, Reports of Discrepancies (ROD's), SF Forms 364, DAMES, Government Furnished Material, and End Item Transactions. They are received through the G009 reporting system to the contract managing ALC.


b. The purpose of the CCN is to improve the flow of supplies to the contractor and to facilitate reporting of GFM transactions, inventory status, end item production, and reporting shipping discrepancies ROD's (SF Forms 364). This is accomplished by providing a direct on line interface between the contractor and DOD logistics activities.


c. The G009/GFM interface to the DoD supply system will be provided by the contractor through the Internet. The DAASC Automated Message Exchange System (DAMES) software will be provided by Defense Automated Addressing System Center (DAASC).


d. DAMES software installation will be accomplished by the contractor. Initial MILSTRIP/GFM training will be provided by the contract managing ALC, the cost will be borne by the government. Any retraining required by the contractor may result in travel to the managing ALC; the cost will be borne by the contractor.


e. The contractor shall be required to provide the CCN hardware in accordance with Attachment Four. The hardware upkeep, maintenance and operational cost (including personnel) shall be borne by the contractor. SA-ALC/LPCC, (210) 925-4794, will be advised of system failures which cannot be corrected within 24 hours.


5. CONTRACTOR PROPERTY CONTROL RECORDS:


a. The official property records are described in FAR subpart 45.505. The contractor shall establish a property control record for each line item. Property records shall be current at all times. Property records are to be kept current and an audit trail maintained from property acquisition to consumption in use or final disposition. Property accounting records, including debit and credit support documentation, and are considered part of the official government contract records.


b. FAR 45.505-1 states that the following basic information is required on all material records, whether mechanized or manual:


(1) Name, description and National Stock Number (NSN)


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Appendix B


(2) Quantity received (or fabricated in house), issued, on hand and on order.


(3) Unit of measure (each, feet, etc).


(4) Unit price (from receipt document or stock list data).


(5) Contract or project number relating to contract.


(6) Location.


(7) Posting references (to include support documentation i.e. issues, receipts, inventory recording etc, and dates of transactions).


(8) Disposition.


c. In addition to FAR requirements, the following data is required to enable requirements planning and stock control:


(1) Quantity due in (on order or being fabricated).


(2) Expendability, reparability, recoverability category (ERRC) code.


(3) Stock levels and reorder points.


(4) Quantity per assembly (QPA) from Material Requirements List (MRL) or Technical Order (TO).


(5) Replacement percentage factor (from MRL or actual experience).


(6) Commercial and Government Entity (CAGE) code number.


d. FAR Subpart 45.505-14 describes the annual report which gives the acquisition cost of all government property in the contractors custody. Details for completing this report are on the reverse of DD Form 1662, DOD Property in the Custody of Contractors. This form is available from the property administrator.


e. Other reports may be required in accordance with FAR Subpart 45.508, 45.6 and the Contract Data Requirements List (CDRL) DD Form 1423.


e. In addition to the above, a separate record of requisition numbers
shall be maintained and shall include the NSN of the item
requisitioned, the unit of issue, the quantity requisitioned, the
document number, and the date the item was received by the contractor.
The record shall be current at all ti ...