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RETURN BIDS TO: RETOURNER LES SOUMISSIONS À:

Title - Sujet

Bid Receiving - PWGSC / Réception des soumissions - TPSGC 11 Laurier St. / 11, rue Laurier Place du Portage , Phase III Core 0B2 / Noyau 0B2 Gatineau Québec K1A 0S5 Bid Fax: (819) 997-9776

Solicitation No. - N° de l'invitation

Amendment No. - N° modif.

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Client Reference No. - N° de référence du client

Date

W8485-13DL02

2016-04-13

SOLICITATION AMENDMENT MODIFICATION DE L'INVITATION The referenced document is hereby revised; unless otherwise indicated, all other terms and conditions of the Solicitation remain the same.

T56/F404 PROPULSION GRP SUSTAINMENT

GETS Reference No. - N° de référence de SEAG

PW-$$BB-237-25766 File No. - N° de dossier

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Solicitation Closes - L'invitation prend fin at - à 02:00 PM on - le 2016-05-16 F.O.B. - F.A.B. Plant-Usine:

Destination:




Eastern Daylight Saving Time EDT

Other-Autre:

Address Enquiries to: - Adresser toutes questions à:

Buyer Id - Id de l'acheteur

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Ward, Kristen Ce document est par la présente révisé; sauf indication contraire, les modalités de l'invitation demeurent les mêmes.

Time Zone Fuseau horaire

Telephone No. - N° de téléphone

FAX No. - N° de FAX

(873) 469-3886 (

(819) 956-9110

)

Destination - of Goods, Services, and Construction: Destination - des biens, services et construction:

Comments - Commentaires

This document contains a security requirement. See herein. Ce document contient une exigence de sécutrité. Voir ici.

Vendor/Firm Name and Address Raison sociale et adresse du fournisseur/de l'entrepreneur

Instructions: See Herein Instructions: Voir aux présentes

Delivery Required - Livraison exigée

Delivery Offered - Livraison proposée

Vendor/Firm Name and Address Raison sociale et adresse du fournisseur/de l'entrepreneur

Issuing Office - Bureau de distribution

Military Aircraft / Aéronefs Militaires 11 Laurier St. / 11, rue Laurier 8C1, Place du Portage Gatineau Québec K1A 0S5

Telephone No. - N° de téléphone Facsimile No. - N° de télécopieur Name and title of person authorized to sign on behalf of Vendor/Firm (type or print) Nom et titre de la personne autorisée à signer au nom du fournisseur/ de l'entrepreneur (taper ou écrire en caractères d'imprimerie)

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Industrie Documents Location No. de affectée série 1 T56 & F404 Ts&Cs, Para Part 7, Ts&Cs 15 and Annex B BoP Annex B, Item 009

The Services that are not permitted to be invoiced under Annex B, Basis of Payment, item 009: a. The R&O services that must be retained in-house in accordance with Annex A, Para 5.5.2.1; b. OEM Technical Data and Licensing; and c. Shipping as defined in Part 7 Resulting Contract Clauses, paragraph 52.2.

Clause 15 Invoicing Instructions. i) Item 009: Subcontracts. Please clarify the Scope of the Sub-contract work that is permitted under this Basis of Payment Item. For example, if a Bidder is Subcontracting, through a 3rd party provider, the direct work associated with Item 003, is the payment for item 003 covered within the fully loaded rate proposed by the Bidder for this BOP Item, or under Item 009 Subcontract? Our assumption is that this is invoiced under BOP Item 003, with supporting timecard documentation. The same example is applicable to BOP Items 2,4,5,6.

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This question follows questions 32 and 33 from Amd 006, which do not appear to be clearly answered in the final RFP.

Annex B will be clarified and an amendment issued.

Réponses du Canada

Questions de l’Industrie

T56 & F404 PGS DP Finale - Questions de l’Industrie #1-32 & des réponses de le Canada

Cette modification est lance pour répondre aux questions reçues de l’industrie. Il y aura Q & A supplémentaires lances bientôt pour des questions non inclus dans cette modification. La version française sera publiée dans la prochaine modification.

Modification 006

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T56 & F404 Part 7, Annex B - BoP

Parts 1 to 6 Attachments 3 &4

T56 & F404 Part 7, Annex B - BoP, and Committed Ratio Tab

Annex B, Table 2

Thank you, Canada confirms same. The RFP has been corrected through Amendment #5.

Canada provided an example through Amendment #5.

Can Canada please provide a fully worked example of the Financial Evaluation Scoring? Table 4 1 of the Instructions to Bidders seems to conflict with Basis of Payment information in the Spreadsheet.

Réponses du Canada

Bidders F404 Financial Input tab: Please confirm that the formatting for CLIN # 9 should be “%” and not “$”.

Questions de l’Industrie

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Canada will verify there is no conflict between the Instruction to Bidders and the Basis of Payment. Can Canada please provide clarification on the During the Cost Exploration Phase, the purpose of the Committed Ratio information critical component of a Value for Money provided with the Bidders Proposal? As there determination is visibility into the Price do not seem to be any apparent links between elements. Canada requires the Committed the Bidders’ Committed Ratio and the Ratio to understand how the Contractor weightings on the Financial Evaluation, it is intends to achieve the Contracted unclear as to the purpose of committing the requirements during the Cost Exploration Bidder to a Committed Weighting in execution Phase. of the contract. Yes, Canada confirms same. Can Canada please confirm that the end date for Year 1 is March 31 2017? ‐

Location Industrie Documents No. de affectée série 2 Parts 1 to 6 Bidders Attachments 3 Financial &4 Input and Resultant Rates Tabs 3 Part 4, and Part 4, Table Parts 1 to 6 4-1 and Attachments 3 Bidder's &4 Instruction Tab

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T56 & F404 Part 7, Ts&Cs

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Para 17.1 Liquidated Damages

15 Invoicing Instructions 15.3 g)

15 Invoicing Instructions Monthly Payment Claim 15.3 h)

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No, as stated in the response to Question 1, the cost of OEM Technical arrangements is to be covered under the Contractor's overheads. Annex B will be clarified and an amendment issued. Thank you, the RFP will be corrected and an amendment issued.

Can Canada please confirm that the cost of OEM Technical arrangements will be covered under CLIN 9 Subcontracts, to avoid a third party OEM from having an impact on the Financial Evaluation? “Item 008 Second Line CIS/GFOS) Material Handling Fixed Prices; the sum of all Annex B, Table 1 line item 006 Task Authorizations completed during the reporting period” The last portion of this sentence appears to be an error, possibly repeated from Item 006? Article 15.3.f also appears to have the same error. In Article 15.3 g) both CFM and GSM use the “OEM published price list” as the cost base whereas Annex B Section 3.3 uses the invoiced price. As most materiel will not have an OEM list price available, suggest the base price for CFM should be the invoice price and for GSM the base price should be the CGCM price. Please provide the correct reference as Annex D Para 3.2.8 does not exist.

The correct references are Annex D, Para 3.2.3 and Annex B, Appendix 1, Para 7. The RFP will be corrected and an amendment issued.

Canada will clarify the RFP and issue an amendment to define the process to be used in the instances where there is no OEM price available.

Réponses du Canada

Questions de l’Industrie

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Buyer ID - Id de l'acheteur

Canada confirms same. Thank you, the RFP will be corrected and an amendment issued. Canada confirms same. Thank you, the RFP will be corrected and an amendment issued. Canada confirms that this instruction applies even if the Bidder is not proposing to provide any services under a specific CLIN.

Please confirm the paragraph reference should be as per Table 1.

Table 2 Item 2, Table 3, Item 2 Table 2 Item 3, Table 3, Item 3 Bidders Instruction Tab, Item 11

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Bidders Instructions Para 11 states: “Each rate submitted by the Bidder for CLINs #1 7 and #9 cannot be greater than 5% more than the previous year for the same CLIN.” For fairness purposes, can Canada please confirm that this instruction applies even if the Bidder is not proposing to provide any services under a specific CLIN during Year 1 – due to transition activity? This avoids a potential ‘gaming scenario’ where Bidders could enter an extremely low price for certain items in Year 1, resulting in an unfair advantage in the Financial Evaluation.

Please confirm the paragraph reference should be as per Table 1.

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Part 7, Annex B - BoP

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Canada researched the aftermarket for both the T56 and F404 products. There is an established network of OEM approved and licensed Companies for the T56 whereas there is not an established network of OEM approved and licensed Companies for the F404 propulsion system. Canada reaffirms the response provided to Question 31 on the Draft RFP.

Further to Canada's response to Question 31 in Amd 006 regarding the differences between the T56 and F404 stand up of in house services, in the interest of competition, will Canada consider adjusting the T56 Mandatory requirements to allow for a more competitive environment – along the same lines as the F404? What assessment has Canada made that the strict mandatory requirements of the T56 PGS (compared to the F404 PGS) are indeed supportive of a competitive environment and that multiple viable bidders are ‘up and ready’? In other words, what is the basis of Canada’s position that the T56 requirements, as written, maintain a competitive environment for the T56 PGS? We contend that it does not. Canada’s proposed approach for segregating Second Line CIS/GFOS from 1st Line CIS, while understandable from the perspective of potentially ‘cutting out’ the 2nd Line, is extremely problematic from the perspective of providing Affordability and Best Value for Money to Canada. The CSWs provide both 1st and 2nd Line materiel, and will use shared resources Page 5 de 18

Thank you, the RFP will be corrected and an amendment issued.

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(infrastructure, transportation, handling equipment) in providing these services. Building a ‘best practice’ pricing model is not consistent with carving out a fixed price exclusive to 2nd Line CIS/GFOS that can be simply extracted from the Basis of Payment. Should this be required by Canada, it will only increase the overall Cost to Canada. Since this is not a stand alone activity, building in a mechanism to remove this as a result of a potential ‘future scenario’ will necessitate an over charging to Canada for all materiel until such a ‘future scenario’ manifests. Any subsequent change in this requirement (removal of 2nd Line materiel) should then be negotiated as a Contract Change under the terms and conditions. We suggest that Canada retain Basis of Payment Item 8 as a fixed monthly price, but that this fixed monthly price include “All costs associated with the provision of the CSW, including handling of 1st and 2nd Line CIS/GFOS and all labour associated with manning the CSW”. 1st and 2nd Line CFM would then be folded into the Materiel CLIN. Any subsequent change in this requirement (removal of 2nd Line materiel) should then be ‐

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paragraph 2.1.4.1

paragraph 2.1.4.1

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negotiated as a Contract Change under the terms and conditions. This section requires that “The Contractor must ensure the separation of activities of the CTIP from the AAF. The Contractor must not incorporate CTIP activities into either the initial or the ongoing AAF. This remaining CTIP work must have its own schedule and budget in order to capture all implementation costs separately.” Canada’s Instructions to Bidders requires that cost information not be provided in the Technical Proposal. Does Canada require a separate submission in the Financial Proposal to identify Transition Costs, and are those Transition Costs included in the Financial Evaluation? As none of the BOP line items provides the capability for the Contractor to invoice directly for CTIP activities (with the exception of CLIN 2 Materiel Services Transition), can Canada please confirm that all other costs associated with Transition/Implementation are to be included in overhead rolled up into the Fully Loaded Rates proposed by the Bidder in the Financial Proposal.

Questions de l’Industrie

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Yes, activities in the Contract Transition and Implementation Plan (CTIP) are included in overhead with the exception of Annex A, Section 2, Para 2.1.6.1.

Bidders are not required to submit cost information relating to Transition as part of the Financial Evaluation. Annex A, Para 2.1.4.1 will be clarified and an amendment issued.

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Parts 1 to 6 Attachment 2 - T56 Technical Evaluation

Appendix 8 Wing Facility Support

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Buyer ID - Id de l'acheteur

Yes, Canada confirms same. Annex B will be clarified and an amendment issued.

Based on our assessment of the quantity of material required to meet the CSW delivery requirement, the need to control access to material under the Contractor’s control, plus environmental and safety considerations, it is difficult to see how the Canada provided infrastructure will accommodate the space needed for inventory storage at the MOBs. Can Canada confirm that costs associated with off site warehousing/storage and transportation are allowable to be included into Basis of Payment Item 8 and Basis of Payment Item 7 (as applicable)? Can Canada provide its rationale for the absence of any Technical Rated Scoring in the Basis of Selection for the T56 PGS and F404 PGS? While the use of only Mandatory Technical Requirements would be understandable if Canada were procuring stationary or finished goods, the absence of any Technical Rated Scoring in a complex ISS delivery model appears unprecedented. Does Canada not value on type experience in delivery of these ISS services for highly complex, safety critical systems?

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Canada has considered this question and there will be no associated change to the RFP.

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Regarding Q.a), the interpretation of allowable Direct Labour charges for Third Line maintenance is provided through the reference to Annex A, Paras 5.5.2 and 5.5.3.8 in Annex B, item 001. Regarding Q.b), please refer to Canada's response to Question 1.

The Draft RFP contained the following specific Interpretations in Section 2 of the Basis of Payment: 2.1. The direct labour rates of line items 1 to 7 are for labour performed in accordance with (IAW) the applicable maintenance manual, as identified in Appendix 1 to the PWS Annex A, including, but not limited to, the following services: a) Removal from Shipping Container; b) Receipt and induction processing; c) Disassembly; d) Cleaning; e) Detailed parts inspection, including non destructive testing (NDT) and dimensional checks; f) For Repair or Overhaul of components, replacement of routable components, (filters, washers, seals, etc.) identified in the applicable Overhaul manual; g) Replacement of Petroleum Oils Lubricants (POL) as directed in applicable maintenance manual; h) Reassembly; i) Service after test; j) Certification of work; and k) Re install in shipping container. Page 9 de 18

Réponses du Canada

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2.2. Components that are subcontracted for Repair or Overhaul are subject to applicable subcontractor mark up.

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Q.b) Can Canada confirm that only components that are subcontracted for Repair and/or Overhaul are subject to the mark up identified in CLIN 9, and that all other Subcontracts are excluded from CLIN 9? If not, can Canada provide an explicit list of Subcontracts that are included within CLIN 9? For example: - Components that are subcontracted for R&O; - OEM TAA/Licensing/Data support for the FLMA’s; and - Routine Sub-contract work (Specialized Processes) associated with in house R&O.

Q.a) The Final RFP is silent on these interpretations. Are these interpretations still valid? If not, can Canada please provide the applicable Interpretations for allowable Direct labour rates for CLIN 1 of the Basis of Payment, to ensure a common interpretation is used by all Bidders.

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Please explain your distinction between “Demonstrate capability” and “Be capable” throughout the Transition Requirements.

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Although the draft RFP posted in November 2015 had mixed terminology, Annex A, Table 1, as currently posted on Buy & Sell consistently uses the “demonstrate capability” qualifier. In order to dismiss any potential confusion, there was no intended distinction between “demonstrating capability” and “being capable”. Assessment of a transition milestone will require that the Contractor demonstrate that it is indeed capable to fulfill the requirement in accordance with the Contract.

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Industrie Documents No. de affectée série 21 Part 7, Annex A – F404 Performance Work Statement "The Contractor may submit recommendations to transfer, either on a temporary or permanent basis, Second Level maintenance activities to either the Contractor’s facility (Third Line) or to a different MOB based on sound business case analyses." Would this philosophy also include business cases for transferring Third Level maintenance activities to one or both MOB's and would all of the maintenance activity controlled by the Contractor at Second Line facilities considered to be "in-house" capability?

para 5.5.3.9

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Questions de l’Industrie

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Yes, the maintenance activities controlled by the Contractor at Second Line is considered "in-house" capability.

Yes, this philosophy includes similar business cases. The Contractor is encouraged to make recommendations that will improve Canada's Value for Money, Performance, Flexibility and/or Economic Benefits through the Value Change Proposal process defined in Annex D. The Contractor is to be mindful however, that the recommendation is subject to review and approval by Canada; and the ability of 2nd line Canada personnel to perform Third Level maintenance activities is limited by the Aircraft Maintenance Squadron accreditations under the TAA as Aircraft Maintenance Organizations for 2nd line maintenance, and by the task-specific authorizations granted to 2nd line technicians.

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Part 7, Annex Amendment D, F404 PfMS 1 2.3.3.3.1 / /2.3.4.3.2

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First Line Replacement Parts (FLRPs). Please provide a complete list of all FLRU’s. We have not received requested Technical Data and Documentation.

Please explain the rationale for including inflation in the first of these second Scoring calculations but not tin the second.

2.3.3.3.1 ...the contractor will be granted a pass if the annual reduction, excluding inflation, in M$/EFH is a positive value. 2.3.4.3.2 Contractor will receive a Pass rating if the Price for the Goods and Services over a Performance Period is lower than the prior Performance Period, including inflation.

First Line Maintenance Proficiency and Second Line Maintenance Proficiency - Will Canada consider Training Options at the Contractor's facility?

Questions de l’Industrie

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In formulating the Affordability assessment, Canada ensured the risk transfer to the Contractor was manageable and fair. During the Cost Containment phase, it is recognized that sustainment costs will be declining due to the reduction in operational aircraft. Canada therefore opted to have the Contractor's affordability assessment include the inflationary component, which is factored into the overall price for goods and services. The complete list of First Line Repairable Units can be found in Part 7, Appendix 1.

Yes, Canada would consider recommendations for Training that could be fulfilled at the Contractor's facility.

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Parts 1 to 6 Attachment 12 - F404 Historical Data

Location Industrie Documents No. de affectée série 25 Part 7, Annex Amendment D, F404 PfMS 1 5.1 Maintenance Cost per Engine Flying Hour ($M/EFH) – Under Exclusions

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An aim of the Cost Exploration Phase is to generate maintenance data on matters such as Second Line productivity and material replacement rates. Industry will use this data to generate the baseline M$/EFH and productivity metrics that will be used during the Cost Reduction Phase, and in turn, to identify and target areas for improvement.

“The cost of augmentation labour supplied by the Contractor as a direct consequence of the Royal Canadian Air Force (RCAF) not furnishing the labour commitments made in Canada’s Input to the Annual Activity Forecast (AAF) in accordance with Annex A, Para 3.4.2.1”. However, there is no similar exclusion for equally important other factors – productivity and errors. The Contractor has internal metrics to measure technician and team productivity to ensure work accomplished meets acceptable company standards and to implement appropriate measures. Errors in maintenance activities can and will occur, but these often require maintenance actions to be repeated, additional materials to be consumed, costs to increase, and as in the case of productivity, corrective measures can normally be implemented, but they are not instantaneous. How does the GOC plan to deal with what should be additional Cost Exclusions? We are experiencing some challenges interpreting the Historical Data provided by Canada. We will provide one example to illustrate dozens of examples of what appear to be inconsistencies in the data which render our

Some of the differences in the data are caused by anomalies that result in data being picked up by one algorithm and not the other. These differences are considered minor and are manageable.

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Two examples: 1) WUC DCAC: There is a difference of 4 in the Sum of the Corrective, Time Expired Same Serial Number and Other Removals, and the Sum of the Total Removals; and 2) WUC BGA: There is a difference of 18 in the sum of the Corrective Removals plus the On AC Repairs, and the sum of the Failures.

analysis suspect but we are hoping can be cleared up through explanation or perhaps a discussion with the TA. In the Historical Maintenance FLMA spreadsheet the totals will illustrate the issues we are having. Corrective Removals = 3122; Total Removals = 3493, but if Expired Removals, Serial Numbers & Other Removals are added to Corrective Removals this total is different - now 3497 (not a major difference but others are more significant). The Failure column sums to 6414, but adding Corrective Removals and On Aircraft Repairs yields 6432? However, the biggest challenge is in correlating the 3122 Corrective Removals to 2449 Repairs at 1st, 2nd and 3rd Line; 1482 NFF's; and 65 Scraps for a Total of 3996 Maintenance Actions against 3122 Corrective Removals? A specific example is the Fan Module in 2013/14. 49 Total Removals yielded 32 Failures, 8 Scraps, 11 2nd Line Repairs, 60 3rd Line Repairs, and 5 NFF's. This totals 84 repair outcomes from 32 failures? Virtually every line item yields similar anomalies.

Other differences are caused by items held in Repairable Reserve (RR). These differences are considered normal in that they reflect production queueing. In the case of the Fan Module example, the 32 failures is the sum of 32 Corrective Removals and 0 On AC Repairs. It does not include the 13 Time Expired items. If one includes the Time Expired items, the difference in that Year is reduced from 52 to 35. A difference between the repair volume and the failures is normal for 3rd line repairable items that can be held in RR and, for example, processed in bulk to reduce setup cost. In contrast, if one were to consider the data for the previous years, one would find the inverse (more Failures

Réponses du Canada

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Please provide a breakdown of repair material costs by FLMA and FLRU per year for the last 10 years.

Please explain rationale for deletion of Contractor’s use of/access to PIF reports/database in numerous instances.

Please confirm that "Non FLMA s and FLRUs" = FLRPs?

Questions de l’Industrie

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Yes, items supplied at First Line that are not First Line Major Assemblies (FLMAs) or First Line Repairable Units (FLRUs), are First Line Replacement Parts (FLRPs). The reason for removal of the PreInstallation Failure (PIF) database is that the Technical Authority (TA) does not have access to the PIF database; PIFs are sent by the Units to the Directorate of Aerospace Procurement, who in turn routes individual PIFs to the appropriate TA. The TA will provide the Contractor with PIF data. This data will not be provided. Where required, Industry is expected to use their product knowledge to generate estimates.

and Time Expired items than 3rd Line repairs).

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Part 7, Annex A, Appendix 4 - T56 CDRLs & DIDs

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Para 10.12.a. states, "Describe the responsibility and authority of each organizational unit, the role of subcontractors, and identify key positions or individuals and their roles and responsibilities in the execution of Training Support Services." Question: Should this read, "...in the execution of Publications and Technical Data Management Support Services.”: As Para 10.8.a. already asks for the individuals and their roles for

Please advise what OEM Technical Data licenses the GOC has for systems such as the APU, AMAD, GCU, and other Accessories. Since MTU Canada is the Global Centre of Excellence for MTU Aero Engines' LRU and Accessory business worldwide, and we have a proven track record of investing in new capabilities in our ARC- Accessory Repair Centre, these Licenses and associated Technical Data Packages are vital enabling elements. 4.4 List of Data Item #11 - Material Support Process Contract Manual lists CDRL-DID # AW - 005. Deliverables - Question: Should this read AW-004? Table 4.4.1, Pg 5/66

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Thank you, the RFP will be corrected and an amendment issued.

No, Data Item #11 indicates the correct CDRL-DID.

Canada will not provide OEM Technical Data licenses to the Contractor.

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Training Services. Please clarify.

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