The Navy and the Marine Corps are increasingly using contractors to supplement, or replace, traditional Naval maintenance efforts. Although contracts providing support to fleet squadrons are usually administered by the supported command, NAVAIR is the contracting authority and provides programmatic oversight for most of the Navy/Marine Corps aviation contracts. Contracts directly supporting NAVAIR flying activities are normally administered by NAVAIR. The Defense Contract Management Agency (DCMA) normally administers the contract at any site that is not physically located on a military base.

Contractors are not required to operate in accordance with the same procedures and instructions that govern the Fleet. Federal law and Acquisition Reform policies allow the contractor to use their own company procedures, limited by contractual requirements. Those procedures must meet government approval. The performance of the contractor is monitored by a small Team of government personnel assigned to ensure compliance with the contract.

DFARS 252.228-7001, Ground and Flight Risk The Ground and Flight Risk Clause (GFRC) is included on the majority of aviation contracts by law. This clause provides for the government to pay for damages to government aircraft while the contractor is working on them - the government basically insures the contractor, an expense the government would have to pay. Clearly, as the insurer, it is incumbent on the government to minimize the risk of damage. The new Ground and Flight Risk Clause (GFRC) effective June 2010 replaces the old GFRC (DFARS 252.228-7001) and AFRC (DFARS 252-228-7002).

The contractor flight procedures for Navy contracts must be in accordance with NAVAIR Instruction 3710.1F. CNO has assigned NAVAIR the responsibility of representing the Navy/USMC on aviation contractor issues. AIR-09F represents the Navy in writing this Instruction, and in issuing waivers to the Contractor Flight and Ground Operations instruction.

Although written by DCMA for their contract administration teams, the DCMAI 8210.2 instruction gives great insight into the requirements and procedures involved in contract administration. http://guidebook.dcma.mil/228/DCMAAircraftOperations.htm

Members of the Contract Team

AIR-2.0 representative who works as part of the Program Management team to issue a contract. The PCO "owns" that contract.

Contracting officer who administers the contract - insuring compliance and contract fulfillment. The ACO is often "on site."

The APT's purpose is to ensure all aspects of aircraft safety (flight, ground, & industrial) are adequately addressed. An APT is required by DCMA, and is strongly recommended for Navy/USMC contracts. In DCMA, the GFR, the Aviation Maintenance Manager (or Ground GFR), and the Contract Safety Specialist make up the Aviation Program Team (APT). The GFR heads the APT. In performing their duties, the APT should maintain a close liaison with the ACO and the contractor organization functional offices, particularly the QA, Property, and safety activities. The APT makes critical decisions about the safety and effectiveness of each contractor flight or ground operation. This assures that aircraft are maintained and operated by contractors in accordance with contract requirements and that the aircraft conform to the contractual requirements when delivered to the Government.

The GFR is the government's primary representative with the contractor concerning flight operations. The GFR is responsible for surveillance of those contractor aircraft flight and ground operations involving Government aircraft and other aircraft for which the Government assumes at least some of the risk of loss or damage. GFR duties and responsibilities are described in DCMA INST 8210.1, Chapter 7 (NAVAIRINST 3710.1F).

Prior to assuming GFR duties the GFR appointee shall meet the following requirements:

• A rated US military officer or Government civilian in an aviation position. The term "rated aviation officer" or "rated officer," refers to Army pilots, Air Force pilots and navigators, Navy pilots and Naval Flight Officers (NFOs).
  
• Completion of the DCMA GFR Certification Course
  
• Receipt of a signed GFR Delegation of Authority Letter IAW NAVAIRINST 3710.1F.