The Contractor shall return repairables to a serviceable (RFI) condition IAW applicable repair procedures by utilizing licensed FAA repair stations for off-site repair or overhaul of commercial parts. All replacement parts and materials shall be new or repaired, refurbished or overhauled to a serviceable (RFI) condition, provided the repair or overhaul cost does not exceed 80% of the replacement cost.
Contractor-acquired Material. The contractor is considered a competitive source (vendor) for material required for the performance of this contract. Material acquired by the Contractor shall meet the requirements for certification and quality required by the PWS. The Contractor shall procure parts and material at the most advantageous prices available with due regard to securing prompt delivery of quality materials, and take all cash and trade discounts, rebates, allowances, credits, commissions, and other amounts which have been accrued to the benefit of the Contractor, or would have accrued except for the fault or neglect of the Contractor.
Time between Overhaul (TBO) Components. TBO components shall have sufficient time remaining to allow the component to operate to the component’s next scheduled overhaul or inspection.
Repair / Refurbishment. Components inducted for repair / refurbishment prior to reaching their scheduled TBO, shall be repaired / refurbished in accordance with the component manufacturer's specifications, and be capable of operating to the next scheduled TBO or inspection (if applicable) provided the repair/refurbishment cost does not exceed 80% of the replacement cost.
Serviceable Parts. Serviceable parts used to repair, refurbish or overhaul TBO components shall have sufficient time remaining to allow the component to operate to the component’s next scheduled overhaul or inspection.
Overhaul. Components with established TBOs shall be overhauled in accordance with all applicable SA, component manufacturer's specifications and Service-specific requirements. TBO components shall be capable of operating to the next scheduled overhaul and may exceed the manufacturer's established TBO only upon approval of the PMA/PMO.
Time-to-Continue (TTC) Engine Components. Components removed from engines during overhaul due to insufficient time/cycles remaining, shall be retained by the Contractor for future Government engine repairs. Components that cannot be utilized for Government repair shall be scrapped IAW paragraph 7.4.
Beyond Economical Repair (BER) Components. Government-owned components whose repair costs would exceed 80% of their replacement cost are considered to be BER. The Contractor shall identify BER components and develop replacement recommendations based upon current inventory objectives, availability, and procurement lead-time. The results shall be presented to the PMA/PMO via the ACO for review and disposition instructions (replace, repair, scrap, etc) described in Section 7.4.
Beyond Economical Repair (BER) Support Equipment (SE). The Contractor shall replace all GFE valued below $1,000 that is no longer repairable. The Government will replace GFE valued above $1,000, which has been determined to be BER by the OSGR and the Contractor, when authorized by the PMA/PMO, unless the damage/loss was due to Contractor negligence.
7.4 Disposal of Excess Government Property
Disposal of GFP will be accomplished in accordance with the applicable provisions of the Government Property Clause as well as Federal Acquisition Regulation 52.245-1, DFARS 245.607-1 and DFARS 245.610-3. The Contractor shall scrap, salvage, or otherwise dispose of any Government furnished or Government owned material, which cannot be restored to serviceable use, or is not returned to the Government. The contractor shall bear the cost of handling, storage, and disposal of such material. Any monies received from sale or disposal, which exceed the handling, storage, and disposal costs, shall be credited to the price of the contract. The contractor shall report all sales and scrapping of Government property each month of occurrence IAW Report/CDRL A037; no monthly report required when no sales or scrapping occur
7.5 Diminishing Manufacturing Sources and Material Shortages (DMSMS).
The Contractor shall manage DMSMS issues that may result in parts obsolescence or supplier mortality for life cycle support of the C-12. The Contractor shall identify all systems, components, parts and material that can no longer be obtained or cost-effectively be supported, including those where the cost to maintain the item will exceed the cost of an equivalent or recently produced and certified item. The Contractor shall give the Government immediate notice of items that are becoming logistically non-supportable and what has or is being done to remedy the situation IAW Report/CDRL A010 and A024.
7.5.1 DMSMS Program. The Contractor shall institute a DMSMS program to proactively manage, minimize and mitigate DMSMS risks in order to provide cost-effective support solutions. The program shall include predictive forecasting strategies; parts list screening and monitoring; a process to manage sub-tier suppliers' DMSMS; and methodologies for tracking, reporting and mitigating DMSMS. Government notification shall be made IAW Report/CDRL A024.
7.5.2 Adverse Trends and Analysis. The Contractor shall track and analyze systems, components and parts in order to identify adverse supply and reliability trends and shall take action to improve both. The Contractor shall report trend analyses and improvement actions, to include pending and previously reported actions, updated actions and close-out actions IAW Report/CDRL A010.
