ipl96-13

SUBJECT: Interim Policy Letter (IPL) 96-013 26 Apr 96

EFFECTIVE DATE/IMPLEMENTATION: The AFMCFARS changes included in this IPL were previously published in IPLs 96-003, 96-004, and 96-005. The effective dates for the AFMCFARS changes included herein are the dates of the IPLs where they first appeared. Issuance of this IPL was necessary because when IPLs 96-003, 96-004, and 96-005 were published each included a statement indicating that it would be superseded by AFMCAC 96-2. That AFMCAC is now in the process of being published. However, some of the changes published in those previous IPLs could not be incorporated into the AFMCAC because Parts 10 and 12, while changed substantially at the FAR and DFARS level, have not yet been changed at the AFFARS level. Had the changes herein been incorporated into the AFMCFARS through the AFMCAC, they would have been incorporated into the wrong Parts, given the changes that will soon be made to the AFFARS. The changes herein will remain in effect in the Parts indicated until AFMCAC 96-3 is published. This IPL will be superseded by AFMCAC 96-3. Ensure distribution to all Contracting Officers.

1. This IPL implements the following approved cases:

a. Additions to Configuration Management, AFMCFARS 5310.004(a)(3)(ii)(90) and 5352.210-9000 (Lightning Bolt Case 96-107). This Section C clause allows application of configuration management requirements to replenishment spares or other acquisitions covering modification programs when the requirement is not captured in a SOW tasking. (Supersedes IPL 96-005, paragraph 1.c., Atch 3, dated 8 Dec 95) (Attachment 1)

b. Additions to Delivery Schedule - Unilateral Order, AFMCFARS 5312.104(a) and 5352.212-9004 (Lightning Bolt Case 96-114). These changes add prescription and clause for the delivery or performance schedule when issuing a unilateral order. (Supersedes IPL 96-004, paragraph 1.b., Atch 2, dated 4 Dec 95) (Attachment 2)

c. Additions to Concurrent Delivery Requirements & Accelerated Delivery, AFMCFARS 5312.104(c) & (d), 5352.212-9002 and 5352.212-9003 (Non-Lightning Bolt Case 96-57). This change establishes two clauses which impact the timing of deliveries. The first, AFMCFARS 5352.212-9002, "Concurrent Delivery of Spares, Support Equipment and Technical Data with Prime Mission Equipment (PME)," with prescription at 5312.104(c) establishes and protects the government's rights when the value or use of a line item to be delivered is dependent upon delivery of other line items. The second, AFMCFARS 5352.212-9003, "Accelerated Delivery," with prescription at 5312.104(d), precludes early delivery of items when accelerated delivery would increase government costs for handling, storage, deterioration, or other considerations such as warranty expiration. (Supersedes IPL 96-003, paragraph 1.e., Atch 5, dated 15 Nov 95) (Attachment 2)

d. Additions to Rental of Real Property, AFMCFARS 5312.104(90) and 5352.212-9001 (Lightning Bolt Case 96-61). Clause 5352.212-9001, Rental of Real Property, is used in solicitations and contracts for leased property when rental fees and conditions are subject to specific conditions. (Supersedes IPL 96-003, paragraph 1.f., Atch 6, dated 15 Nov 95) (Attachment 2)

2. If you have any questions, please call me or have your staff call my action officer,

Ms. Chris Shockey, HQ AFMC/PKPB, DSN 787-6757.

/// signed ///

LINDA G. WILLIAMS, SES

Deputy Director of Contracting

Attachments:

1. AFMCFAR Case 96-107

2. AFMCFAR Cases 96-114, 96-57 & 96-61

cc: HQ AFMC/IG/IK

PART 5310--SPECIFICATIONS, STANDARDS, AND OTHER PURCHASE DESCRIPTIONS

5310.004 Selecting specifications or descriptions for use.

(a)(3)(ii)(90) When the requiring activity has stated the need for configuration management in replenishment spares or other acquisitions covering modification programs involving large production runs and the requirement is not captured in a SOW tasking, the contracting officer may insert the clause at 5352.210.9000, Configuration Management, substantially as written, in Section C of all solicitations and contracts involving hardware/software developed or adopted for government use including acquisitions of commercial equipment, modifications, and/or repair/manufacturing.

(e)(91) Contractual documents for development and production of systems and equipment must include requirements for contractor compliance with MIL-STD-1510, Container Design Retrieval System, Procedures for Use of. Of particular concern are consideration of packaging and transportation requirements during the design of an item; the determination of life cycle costs for an item or system; and (when cost effective) the use of container assets already in the DOD inventory, either in their existing configuration, or with new application modifications. Substantiate with an auditable cost analysis by the contractor or contracting activity, decisions not to use existing container designs or containers identified through the application of MIL-STD-1510. Make these decisions part of the official file.

(e)(92) The requirement for development and production of engineered or specialized containers for an item (MIL-STD-1510) must be a line item on the purchase request and also in the solicitation and contract.

(e)(93) Contractual documents calling for the delivery of hazardous materials as defined by the US Department of Transportation (DOT), will include requirements for contractor compliance with Title 49 of the Code of Federal Regulations (CFR). Mark containers for hazardous materials (other than ammunition or explosives) used to dispense the products to comply with Public Law 91-596, Occupational Safety and Health Act of 1970. The DOT has granted DOD considerable interpretation authority on hazardous materials packaging. AFMC is authorized to issue Certification Equivalency to comply with 49 CFR 173.7(a) which states that the shipments of hazardous materials offered by, or consigned to DOT, must be packaged according to DOT regulations, or in containers of equal or greater strength and efficiency as required by DOD regulations. AFMCR 800-29 implements 49 CFR 173.7(a).

(e)(94) Maximum use shall be made of industrial packaging according to the procedures prescribed in AFR 71-6.

5310.010 Acquiring used or reconditioned material, former Government surplus property, and residual inventory.

(90) See Part 5391 for procedures to be used in acquiring aircraft and related residual, surplus, used or reconditioned material subject to a technical evaluation prior to purchase.

Atch 1

5352.210-9000 Configuration Management

As prescribed in 5310.004(a)(3)(ii)(90), insert the following clause substantially as written in Section C of solicitations and contracts:

(Enter applicable paragraph numbers/appendices/references) of MIL-STD-973 apply as applicable in the configuration management of the items set forth in Section B of this contract/order.

(Enter applicable paragraph numbers/appendices/references) of MIL-STD-961D, Appendix A, apply as applicable for the selection, preparation and modification of program-unique specifications for the items set forth in SECTION B of this contract/order.

Paragraph Title Page

5312.103 Supplies or services. 12.1-1

5312.104 Contract clauses. 12.1-1

Paragraph Title Page

5312.304 Solicitation provision and contract clause. 12.3-1

Atch 2

5312.103 Supplies or services.

(d)(1) Replenishment spare parts contract delivery schedule dates shall be expressed as specific calendar dates in all contractual instruments, unless the file is documented by the PCO with rationale for establishing delivery schedules in terms of time from a specific event (after receipt of award, acceptance of proposal, acceptance of first article, or other event). File documentation is not necessary for contracts which include first article provisions and basic indefinite delivery type contracts (file documentation is required for orders placed against indefinite delivery type contracts). On replenishment spare parts contracts, except as provided for in 5343.102(c), if delivery dates are expressed in the contract as time from a specific event and a modification to the contract is issued subsequent to the occurrence of that event, the delivery dates shall be converted to specific calendar dates with that modification. On replenishment spare parts contracts with first article testing requirements, specific calendar dates for delivery of production items shall be established at the time of first article approval with the issuance of a modification.

(2) In calculating the dates the following applies:

(a) On unilateral awards (acceptance of proposal, unilateral purchase orders), compute by adding the contractor's offered lead-time, plus administrative lead-time to complete the award, and mailing time.

(b) On orders under indefinite delivery and indefinite quantity contracts, compute by adding the contract stated delivery period, plus administrative lead-time to complete the award, and mailing time.

(c) Standard administrative lead-times may be established locally or may be estimated by the contracting officer on each individual procurement. A standard mailing time of five days shall be used.

5312.104 Contract clauses.

(a) The contracting officer may insert the clause at 5352.212-9004, Delivery Schedule - Unilateral Order, in Section F, "Deliveries or Performance," of solicitations and contracts which provide for unilateral orders to be issued by the government and a firm delivery schedule/completion date has not been established.

(c) Concurrent Acceptance. The contracting officer shall insert a clause substantially the same as 5352.212-9002, "Concurrent Delivery of Spares, Support Equipment and Technical Data, with Prime Mission Equipment", in Section F of solicitations and contracts, if the government requires concurrent or prior delivery of specific contract line items or subline items before acceptance of a contract line item or items for prime mission equipment can be deemed final.

(d) Accelerated Delivery. The contracting officer shall insert a clause substantially the same as 5352.212-9003, "Accelerated Delivery Prohibited", in Section F of solicitations and contracts, if line item prices have been established based upon a specific delivery schedule or if government costs for storage, handling, deterioration, or other considerations such as warranty expiration, preclude early acceptance of contract deliverables.

(90) The CO may insert the contract clause substantially as set forth at 5352.212-9001, Rental of Real Property, in Section I of solicitations and contracts when a lease is contemplated and the item(s) to be leased must meet condition or operating requirements.

5352.212-9001 Rental Of Real Property

As prescribed at 5312.104(90), insert the following clause in Section I of solicitations and contracts, substantially as follows:

The Government agrees to pay rent for the property specified herein. In the case of property rented at a monthly rate, the rent shall begin with respect to such property at the beginning of the term of this lease or upon the date of delivery of such property to the Government, whichever is later, and shall continue to the date on which this lease expires or is terminated with respect to said property; and rent accruing during the month of delivery of any property and the month of return of any property to the contractor shall be prorated on the basis of a thirty-day month. No rent shall accrue with respect to any property furnished by the contractor which the Contracting Officer (CO) determines is not of satisfactory quality or in good operating condition, unless and until such property is replaced or the defects are corrected. No rent shall accrue with respect to any property during any period when such property is unusable as a result of the failure of the contractor to render services in connection with operation and maintenance of the equipment as hereinafter required.

5352.212-9002 Concurrent Delivery of Spares, Support Equipment and Technical Data, with Prime Mission Equipment

As prescribed in 5312.104(c), insert the following clause in Section F of solicitations and contracts:

Notwithstanding government acceptance, delivery of prime equipment and/or training equipment will not be considered complete and eligible for final payment unless (insert applicable clins for required support equipment, spare parts, technical manuals, and technical documentation) required for concurrent or prior delivery have been delivered and accepted as stipulated in the contract.

5352.212-9003 Accelerated Delivery Prohibited

As prescribed in 5312.104(d), insert the following clause in Section F of solicitations and contracts:

The contractor is prohibited from exceeding the delivery rate or accelerating delivery of line items or subline items under this contract by more than (insert number) days prior to the time set forth in Section F. This shall not be construed, however, as a waiver of the contractor's responsibility to meet the schedule requirements or to perform any of its obligations under this contract.

5352.212-9004 Delivery Schedule -- Unilateral Order

As prescribed at 5312.104(a) insert the following clause in Section F of solicitation and contract:

The government's desired delivery/completion schedule will be established in each order issued under this contract. The delivery schedule/completion date shall be subject to acceptance or modification as follows:

(a) If the contractor does not propose a different delivery/completion schedule to the contracting officer within ____ days from the issue date of the order, the order shall become a firm contractual obligation.

(b) If the contractor proposes a different delivery/completion schedule to the contracting officer within ____ days from the issue date of the order, the contractor and government shall promptly enter into negotiations to establish a mutually acceptable schedule. The negotiated, firm schedule shall be incorporated into the order by supplemental agreement.