Exhibit 10.8
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AWARD/CONTRACT 1. THIS CONTRACT IS A RATED ORDER RATING PAGE OF PAGES
UNDER DPAS (15 CFR 350) (greater than) L DX-A3 1 174
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2. CONTRACT (PROC. INST. IDENT.) NO. 3. EFFECTIVE DATE
N00024-95-C-2106 SEE BLOCK 20C
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4. REQUISITION PURCHASE REQUEST/PROJECT NO. N00024-94-NR-91624 4-312F-91624
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5. ISSUED BY N00024
NAVAL SEA SYSTEMS COMMAND
BUYER/SYMBOL: ▇▇▇ ▇▇▇▇▇▇▇ SEA 02215
▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
PHONE: Area Code 703/▇▇▇-▇▇▇▇ Ext 215
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6. ADMINISTERED BY (If other than Item 5) CODE N62793
CRITICALITY DESIGNATOR:
SUPSHIP Newport News
Newport News, VA 23607-2787
PRE-AWARD SURVEY: NONE
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7. NAME AND ADDRESS OF CONTRACTOR (No., street, city, State and ZIP Code)
CEC NO: ▇▇-▇▇▇-▇▇▇▇
Newport News Shipbuilding
▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
TIN NO: 54-03118880
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8. DELIVERY
( ) FOB ORIGIN ( ) OTHER (See below)
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9. DISCOUNT FOR PROMPT PAYMENT
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10. SUBMIT INVOICES (greater than) ITEM 12
(4 copies unless otherwise specified) Via DCAA
TO ADDRESS SHOWN IN Newport New
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CAGE CODE 73689 FACILITY CODE 43689
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11. SHIP TO/MARK FOR CODE
(See Section F of Schedule)
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12. PAYMENT WILL BE MADE BY CODE N00179
Defense Accounting Office
Finance Department Code BSE
Washington, D.C. 20371-5100
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13. AUTHORITY FOR USING OTHER THAN FULL AND OPEN
COMPETITION
10 U.S.C. 2304(c)( 1 ) ( ) 41 U.S.C. 253(c)( )
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14. ACCOUNTING AND APPROPRIATION DATA
See Attachment "A"
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15 A ITEM NO. 15B SUPPLIES/SERVICES 15C QTY 15D UNIT 15E UNIT PRICE
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(See Section B of Schedule)
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15F AMOUNT
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15G. TOTAL AMOUNT OF CONTRACT $2,517,320,000.00
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16. TABLE OF CONTENTS
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X'd SEC. DESCRIPTION PAGE(S)
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PART I - THE SCHEDULE
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X A SOLICITATION/CONTRACT FORM 1
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X B SUPPLIES OR SERVICES AND PRICES/COSTS 2
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X C DESCRIPTION/SPECS/WORK STATEMENT 6
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X D PACKAGING AND MARKING 65
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X E INSPECTION AND ACCEPTANCE 68
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X F DELIVERIES OR PERFORMANCE 71
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X G CONTRACT ADMINISTRATION DATA 74
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X H SPECIAL CONTRACT REQUIREMENTS 75
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PART II - CONTRACT CLAUSES
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X I CONTRACT CLAUSES 135
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PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.
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X J LIST OF ATTACHMENTS
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PART IV - REPRESENTATIONS AND INSTRUCTIONS 174
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K REPRESENTATIONS, CERTIFICATIONS
AND OTHER STATEMENTS OF OFFERORS
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L INSTS., CONDS., AND NOTICES TO OFFERORS
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M EVALUATION FACTORS FOR AWARD
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CONTRACTING OFFICER WILL COMPLETE ITEM 17 OR 18 AS APPLICABLE
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17. ( X ) CONTRACTOR'S NEGOTIATED AGREEMENT
(Contractor is required to sign this document and return 2 copies to issuing
office.) Contractor agrees to furnish and deliver all items or perform all the
services set forth or otherwise identified above and on any continuation sheets
for the consideration stated herein. The rights and obligations of the parties
to this contract shall be subject to and governed by the following documents:
(a) this award/contract, (b) the solicitation, if any, and (c) such provisions,
representations, certifications and specifications as are attached or
incorporated by reference herein. (Attachments are listed herein.)
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18. ( ) AWARD (Contractor is not required to sign this document.)
Your offer on Solicitation Number
including the additions or changes made by you which additions or changes are
set forth in full above, is hereby accepted as to the items listed above and on
any continuation sheets. This award consummates the contract which consists of
the following documents: (a) the Government's solicitation and your offer, and
(b) this award/contract. No further contractual document is necessary.
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19A. NAME AND TITLE OF SIGNER (Type or print)
▇. ▇▇▇▇▇
VICE PRESIDENT
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19B. NAME OF CONTRACTOR 19C. DATE SIGNED
BY ▇. ▇▇▇▇▇ DEC 08 1994
--------------------------------------------------
(Signature of person authorized to sign)
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20A. NAME OF CONTRACTING OFFICER
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Contracting Officer
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20B. UNITED STATES OF AMERICA 20C. DATE SIGNED
BY /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ DEC 08 1994
--------------------------------------------------
(Signature of Contracting Officer)
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NSN 7540-01-152-8069 25-106 STANDARD FORM 26 (REV. 4-85)
N00024-95-C-2106
SCHEDULE
SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS
ITEM SUPPLIES/SERVICES QTY UNIT TARGET PRICE
---- ----------------- --- ---- ------------
0001 CVN-68 (NIMITZ) Class 1 Ship $2,512,474,532
Aircraft Carrier (NUCLEAR)
(CVN 76)
0002 Onboard Repair Parts for 1 Lot
Item 0001. NSP - Price
included in price of
Item 0001.
0003 Data for Items 0001 and
0002. (See DD Form 1423,
Exhibit "A" hereto). NSP -
Price included in price
of Item 0001.
0004 Provisioning Technical
Documentation (PTD) for
Item 0001. See DD Form
1423, Exhibit "C" hereto).
NSP - Price included in
price of Item 0001.
0005 Technical Manual Requirements 1 Lot $ 4,845,468
0006 Data for Item 0005 (See
DD Form 1423, Exhibit "B"
hereto). NSP - Price
included in price of Item
0005.
0007 Provisioned Item Order (PIO). (See General
Requirement C-32).
Total: $2,517,320,000
2
N00024-95-C-2106
SCHEDULE
Items 0001 - 0006
-----------------
TOTAL ITEMS O001 - 0006 TARGET COST:..................$2,060,000,000
TOTAL ITEMS 0001 - 0006 TARGET PROFIT:................$ 457,320,000
--------------
TOTAL ITEMS 0001 - 0006 TARGET PRICE:.................$2,517,320,000
TOTAL ITEMS 0001 - 0006 CEILING PRICE:................$2,884,000,000
(140% of Target Cost)
----
TOTAL ITEMS 0001 - 0006 FACILITIES CAPITAL
COST OF MONEY*:.......................................$ 89,117,100
--------------
SHARING RATIO: 80/20
------------------------------------ under Target Cost
80/20
------------------------------------ over Target Cost
(Govt) (Contractor)
NOTES: (1) The total amount obligated on this contract at the time of
contract award is $2,967,320,000, which represents $2,517,320,000 for the Target
Price of Items 0001 - 0006 and $89,117,100 for the Facilities Capital Cost of
Money* of Items 0001-0006, plus $360,882,900, for payment of compensation
adjustments. See Attachment A.
(2) *The cost of Facilities Capital Cost of Money is not included in
the Target Cost set forth above, but is included in the total amount of the
contract. For the purpose of incentive price revision as provided for in the
clause hereof entitled "Incentive Price Revision (Firm Target)", the term "total
final cost" does not include the allowable cost of Facilities Capital Cost of
Money.
B-1 COMPENSATION (FI) (NAVSEA) (JAN 1990)
(Applicable to Items 0001 - 0006)
The total compensation to be paid the Contractor shall be the sum of the total
final price(s) established in accordance with the "INCENTIVE PRICE REVISION--
FIRM TARGET" (FAR 52.216-16) clause and the amounts payable to or due from the
Contractor pursuant to the contract provisions identified in paragraph (d)(l) of
said clause.
3
N00024-95-C-2106
SCHEDULE
B-2 REFUNDS (SPARES AND SUPPORT EQUIPMENT) (NAVSEA) (SEP 1990)
(a) In the event that the price of a spare part or item of support equipment
delivered under this contract significantly exceeds its intrinsic value, the
Contractor agrees to refund the difference. Refunds will only be made for the
difference between the intrinsic value of the item at the time an agreement on
price was reached and the contract price. Refunds will not be made to recoup the
amount of cost decreases that occur over time due to productivity gains (beyond
economic purchase quantity considerations) or changes in market conditions.
(b) For purposes of this requirement, the intrinsic value of an item is defined
as follows:
(1) If the item is one which is sold or is substantially similar or
functionally equivalent to one that is sold in substantial quantities to the
general public, intrinsic value is the established catalog or market price, plus
the value of any unique requirements, including delivery terms, inspection,
packaging or labeling.
(2) If there is no comparable item sold in substantial quantities to
the general public, intrinsic value is defined as the price an individual would
expect to pay for the item based upon an economic purchase quantity as defined
in FAR 52.207-4, plus the value of any unique requirements, including delivery
terms, inspection, packaging or labeling.
(c) At any time up to two years after delivery of a spare part or item of
support equipment, the Contracting Officer may notify the Contractor that, based
on all information available at the time of the notice, the price of the part or
item apparently exceeds its intrinsic value.
(d) If notified in accordance with paragraph (c) above, the Contractor agrees to
enter into good faith negotiations with the Government to determine if, and in
what amount, the Government is entitled to a refund.
(e) If agreement pursuant to paragraph (d) above cannot be reached, and the
Navy's return of the new or unused item to the Contractor is practical, the
Navy, subject to the Contractor's agreement, may elect to return the item to the
Contractor. Upon return of the item to its original point of Government
acceptance, the Contractor shall refund in full the price paid. If no agreement
pursuant to paragraph (d) above is reached, and
4
N00024-95-C-2l06
SCHEDULE
return of the item by the Navy is impractical, the Contracting Officer may, with
the approval of the Head of the Contracting Activity, issue a Contracting
Officer's final decision on the matter, subject to Contractor appeal as provided
in the "DISPUTES" clause (FAR 52.233-1).
(f) The Contractor will make refunds, as required under this requirement, in
accordance with instructions from the Contracting Officer.
(g) The Contractor shall not be liable for a refund if the Contractor advised
the Contracting Officer in a timely manner that the price it would propose for a
spare part or item of support equipment exceeded its intrinsic value, and with
such advise, specified the estimated proposed price, the estimated intrinsic
value and known alternative sources or item, if any, that can meet the
requirement.
(h) This requirement does not apply to any spare parts or items of support
equipment whose price is determined through adequate price competition. This
requirement also does not apply to any spare part or item of support equipment
with a unit price in excess of $100,000; or in excess of $25,000 if the
Contractor submitted, and certified the currency, accuracy and completeness of,
cost or pricing data applicable to the item.
5
N00024-95-C-2106
SCHEDULE
SECTION C - DESCRIPTION/SPECIFICATION/WORK STATEMENT
PART 1 - CONTRACT LINE ITEM DESCRIPTION
ITEMS 0001 AND 0002 - GENERAL SCOPE OF WORK
The Contractor shall construct Aircraft Carrier CVN-76 at the Contractor's
plant at Newport News, Virginia and shall deliver the vessel complete, including
the installation of materials to be furnished by the Government and the
preparation and furnishing of drawings and other data all in conformity with the
Specifications for Building Aircraft Carrier CVN-68 Class hereinafter referred
to as "these specifications" as applicable to (NAVSEA S9CVN-CK-SBS-010/(U) CVN
76 of 1 JULY 1994 (Attachment C) as modified by Change Packages 1, 2, and 3
(Attachment C), including changes thereof which may be as hereinafter provided.
In addition, the Contractor shall utilize in the construction of CVN-76 the same
technical information developed by the Contractor for CVN74/75 unless changes
are required by these specifications invoked above or otherwise approved in
writing by NAVSEA. Propulsion Plant system changes when approved by NAVSEA shall
be incorporated into the full scale propulsion plant mock-up unless otherwise
approved in writing by NAVSEA. Such changes will then be subject to review by
NAVSEA in the mock-up in accordance with the requirements of these shipbuilding
specifications and General Requirement C-22.
Items 0003 and 0006 - DATA REQUIREMENTS (NAVSEA) (SEP 1992)
The data to be furnished hereunder shall be prepared in accordance with the
Contract Data Requirements List, DD Form 1423, Exhibit(s) "A" and "B", attached
hereto.
ITEM 0004 - PROVISIONING TECHNICAL DOCUMENTATION
The Provisioning Technical Documentation (PTD), except for provisioning
supporting reactor plant components, shall be in accordance with MIL-STD-1552A
and MIL-STD-1561A (dated 17 March 1981), the NAVSEA Provisioning Requirements
Statement (PRS) dated August 1981, and the Contract Data Requirements List, DD
Form 1423, Exhibit "C" hereto. PTD for reactor plant components shall be in
accordance with the shipbuildinq specification.
6
N00024-95-C-2016
SCHEDULE
The Contractor shall attend a Provisioning Guidance Conference to be held
in the Supervisor's office on a mutually agreed to date. At that meeting, the
Contractor shall submit an estimate of the total number of Contractor-furnished
provisionable items to be placed aboard or installed on the vessel. The
Contractor shall also adhere to a schedule for submission of PTD which will be
developed at the Provisioning Guidance Conference and to submit reports titled
"Listing and Status of Provisionable Items" for Contractor furnished equipment
on a monthly basis until 21 months prior to the end of construction of the
vessel and every two weeks thereafter. In the event that the Contractor desires
to utilize his ADP capabilities in lieu of the NAVSHIPS forms, the format of the
ADP report must be acceptable to the Supervisor.
Item 0005 - TECHNICAL MANUAL REQUIREMENTS
With the exception of the effort specifically identified in General Requirement
C-29 as being provided by the Government, the Contractor shall provide all
effort required for the preparation and delivery of technical manuals.
Item 0007
Provisioning supplies to be furnished hereunder will be ordered in contract
modifications issued in accordance with the General Requirement C-32 entitled -
PROVISIONED ITEM ORDER - ALTERNATE I (NAVSEA) (MAY 1993).
Items 0001 - 0007
-----------------
(a) Department of Defense Contract Security Classification Specifications,
DD Form 254, attached hereto, forms a part of this schedule.
(b) The requirements of NAVSEAINST C9210.22B, "Security and Safety of
Nuclear Reactor Plants, Reactor Fuel and Components Containing Plutonium or
Enriched Uranium, Requirements For" are incorporated in this contract.
7
N00024-95-C-2106
SCHEDULE
PART C-2 - GENERAL REQUIREMENTS
The following is a list of General Requirements in Section C-2.
TITLE PAGE
----- ----
C-1 ACCESS TO THE VESSELS (AT)............................................10
C-2 ACCESS TO VESSELS BY NON-U.S. CITIZENS................................10
C-3 AGREEMENT REGARDING ADDITIONAL SPRAY ▇▇▇▇▇▇▇..........................13
C-4 ALLOWANCE LIST SERVICE................................................13
C-5 APPROVAL BY THE GOVERNMENT (AT).......................................13
C-6 ASSIGNMENT AND USE OF NATIONAL STOCK NUMBERS..........................14
C-7 DELETED...............................................................14
C-8 DELETED...............................................................14
C-9 CREW CVN-76...........................................................15
C-10 CVN-68 CLASS PROGRAM INTERACTION......................................17
C-11 DELIVERY OF DATA......................................................18
C-12 DEPARTMENT OF LABOR OCCUPATIONAL SAFETY AND HEALTH
STANDARDS FOR SHIPBUILDING............................................18
C-13 DESIGN BUDGET.........................................................18
C-14 DELETED...............................................................20
C-15 DRAWINGS AND OTHER DATA...............................................21
C-16 DRYDOCKING FACILITIES AND SHIPBUILDING WAYS
CERTIFICATION.........................................................24
C-17 ENGINEERING SERVICES..................................................25
C-18 EXCLUSION OF MERCURY (ELECTRONICS)....................................25
C-19 EXCLUSION OF MERCURY (MACHINERY)......................................26
C-20 GOVERNMENT FURNISHED PROPERTY.........................................28
C-21 GOVERNMENT INSTALLATION OF CRYPTOGRAPHIC EQUIPMENT....................30
C-22 GOVERNMENT REVIEW OF PROPULSION PLANT MOCKUP..........................30
C-23 HEALTH, SAFETY, AND FIRE PROTECTION...................................30
C-24 DELETED...............................................................31
C-25 ON-BOARD REPAIR PARTS (OBRP)..........................................31
C-26 PERMITS AND RESPONSIBILITIES..........................................31
C-27 PLANS AND OTHER DATA..................................................32
C-28 PLANT PROTECTION......................................................32
C-29 PRINTING OF TECHNICAL MANUALS, PUBLICATIONS, CHANGES,
REVISIONS AND AMENDMENTS - ALT I......................................33
C-30 PROTECTION OF THE SHIP DURING ADVERSE ENVIRONMENTAL
CONDITIONS............................................................36
C-31 DELETED...............................................................36
C-32 PROVISIONED ITEM ORDER ALT I..........................................37
C-33 QUALIFICATION OF CONTRACTOR NONDESTRUCTIVE TESTING
(NDT) PERSONNEL.....................................................41
C-34 DELETED...............................................................42
C-35 QUALITY PROGRAM.......................................................43
C-36 OUARTERLY PRODUCTION PROGRESS CONFERENCES.............................46
8
N00024-95-C-2106
SCHEDULE
TITLE PAGE
----- ----
C-37 RADIOLOGICAL CONTROLS AND RADIATION HEALTH PROTECTION.................52
C-38 REACTOR PLANT SPECIAL TOOLING AND TEST EQUIPMENT......................53
C-39 RECORDING AND MAINTAINING DATA FOR REACTOR PLANT WORK.................53
C-40 SHIPYARD PHYSICAL SECURITY............................................54
C-41 SPECIAL AGREEMENT REGARDING SWITCHBOARD SUBCONTRACTS..................54
C-42 STANDARDIZATION.......................................................55
C-43 DELETED...............................................................56
C-44 USE OF JIGS, FIXTURES, MODELS, MOCKUPS OR SIMILAR
NON-RECURRING ITEMS FROM PREVIOUS CVN 68 CLASS
CONSTRUCTION SHIPS...................................................56
C-45 USE OF POWER GRINDERS AND SAWS........................................56
C-46 DELETED...............................................................57
C-47 INVENTION RIGHTS......................................................57
C-48 EXCUSABLE DELAY.......................................................57
C-49 PAYMENT OF INVOICES...................................................57
C-50 PROVISIONS RELATING TO MATERIAL FORMERLY FURNISHED BY
THE GOVERNMENT ON PREVIOUS AIRCRAFT CARRIER CONTRACTS................58
C-51 ACCESS TO THE NAVY SUPPLY SYSTEM......................................58
C-52 CLARIFICATION OF "INSURANCE -- PROPERTY LOSS OR DAMAGE --
LIABILITY TO THIRD PERSONS"..........................................59
C-53 CONTRACT ADJUSTMENT FOR ENERGY SHORTAGE...............................60
C-54 HYDRA SYSTEM..........................................................64
9
N00024-95-C-2106
SCHEDULE
C-1 ACCESS TO THE VESSEL(S) (AT) (NAVSEA) (JAN 1983)
Officers, employees and associates of other prime Contractors with the
Government and their subcontractors, shall, as authorized by the Supervisor,
have, at all reasonable times, admission to the plant, access to the vessel(s)
where and as required, and be permitted, within the plant and on the vessel(s)
to perform and fulfill their respective obligations to the Government. The
Contractor shall make reasonable arrangements with the Government or Contractors
of the Government, as shall have been identified and authorized by the
supervisor to be given admission to the plant and access to the vessel(s) for
office space, work areas, storage or shop areas, or other facilities and
services, necessary for the performance of the respective responsibilities
involved, and reasonable to their performance.
C-2 ACCESS TO VESSELS BY NON-U.S. CITIZENS (NAVSEA) (MAY 1993)
(a) No person not known to be a U.S. citizen shall be eligible for access to
naval vessels, work sites and adjacent areas when said vessels are under
construction, conversion, overhaul, or repair, except upon a finding by
COMNAVSEA or his designated representative that such access should be permitted
in the best interest of the United States. The Contractor shall establish
procedures to comply with this requirement and NAVSEAINST 5500.3 (series) in
effect on the date of this contract or agreement.
(b) If the Contractor desires to employ non-U.S. citizens in the performance of
work under this contract or agreement that requires access as specified in
paragraph (a) of this requirement, approval must be obtained prior to access for
each contract or agreement where such access is required. To request such
approval for non-U.S. citizens of friendly countries, the Contractor shall
submit to the cognizant Contract Administration Office (CAO), an Access Control
Plan (ACP) which shall contain as a minimum, the following information:
(1) Badge or Pass oriented identification, access, and movement control
system for non-U.S. citizen employees with the badge or pass to be worn or
displayed on outer garments at all times while on the Contractor's facilities
and when performing work aboard ship.
(i) Badges must be of such design and appearance that permits easy
recognition to facilitate quick and positive identification.
10
N00024-95-C-2106
SCHEDULE
(ii) Access authorization and limitations for the bearer must be
clearly established and in accordance with applicable security regulations and
instructions.
(iii) A control system, which provides rigid accountability
procedures for handling lost, damaged, forgotten or no longer required badges,
must be established.
(iv) A badge or pass check must be performed at all points of entry
to the Contractor's facilities or by a site supervisor for work performed on
vessels outside the Contractor's plant.
(2) Contractor's plan for ascertaining citizenship and for screening
employees for security risk.
(3) Data reflecting the number, nationality, and positions held by non-
U.S. citizen employees, including procedures to update data as non-U.S. citizen
employee data changes, and pass to ▇▇▇▇▇▇▇▇▇ ▇▇▇.
(4) Contractor's plan for ensuring subcontractor compliance with the
provisions of the Contractor's ACP.
(5) These conditions and controls are intended to serve as guidelines
representing the minimum requirements of an acceptable ACP. They are not meant
to restrict the Contractor in any way from imposing additional controls
necessary to tailor these requirements to a specific facility.
(c) To request approval for non-U.S. citizens of hostile and/or communist-
controlled countries (listed in Department of Defense Industrial Security
Manual, DOD 5220.22-M or available from cognizant CAO), the Contractor shall
include in the ACP the following employee data: name, place of birth,
citizenship (if different from place of birth), date of entry to U.S.,
extenuating circumstances (if any) concerning immigration to U.S., number of
years employed by the Contractor, position, and stated intent concerning U.S.
citizenship. COMNAVSEA or his designated representative will make individual
determinations for desirability of access for above group. Approval of ACP's for
access of non-U.S. citizens of friendly countries will not be delayed for
approval of non-U.S. citizens of hostile communist-controlled countries. Until
approval is received, the Contractor must deny access to vessels for employees
who are non-U.S. citizens of hostile and/or communist-controlled countries.
11
N00024-95-C-2106
SCHEDULE
(d) An ACP which has been approved for specific Master Ship Repair Agreement
(MSRA) or Agreement for Boat Repair (ABR) or Basic Ordering Agreement (BOA), is
valid and applicable to all job orders awarded under that agreement.
(e) The Contractor shall fully comply with approved ACPs. Noncompliance by the
Contractor or subcontractor serves to cancel any authorization previously
granted, in which case the Contractor shall be precluded from the continued use
of non-U.S. citizens on this contract or agreement until such time as the
compliance with an approved ACP is demonstrated and upon a determination by the
CAO that the Government's interests are protected. Further, the Government
reserves the right to cancel previously granted authority when such cancellation
is determined to be in the Government's best interest. Use of non-U.S. citizens,
without an approved ACP or when a previous authorization has been canceled, will
be considered a violation of security regulations. Upon confirmation by the CAO
of such violation, this contract, agreement or any job order issued under this
agreement may be terminated for default in accordance with the clause entitled
"DEFAULT (FIXED-PRICE SUPPLY AND SERVICE)" (FAR 52.249-8), "DEFAULT (FIXED-PRICE
RESEARCH AND DEVELOPMENT)" (FAR 52.249-9) or "TERMINATION (COST REIMBURSEMENT)"
(FAR 52.249-6), as applicable.
(f) Prime Contractors have full responsibility for the proper administration of
the approved ACP for all work performed under this contract or agreement,
regardless of the location of the vessel, and must ensure compliance by all
subcontractors, technical representatives and other persons granted access to
U.S. Navy vessels, adjacent areas, and work sites.
(g) In the event the Contractor does not intend to employ non-U.S. citizens in
the performance of the work under this contract, but has non-U.S. citizen
employees, such employees must be precluded from access to the vessel and its
work site and those shops where work on the vessel's equipment is being
performed. The ACP must spell out how non-U.S. citizens are excluded from access
from contract work areas.
(h) The same restriction as in paragraph (g) above applies to other than non-
U.S. citizens who have access to the Contractor's facilities (e.g., for
accomplishing facility improvements, from foreign crewed vessels within its
facility, etc.).
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N00024-95-C-2106
SCHEDULE
C-3 AGREEMENT REGARDING ADDITIONAL SPRAY ▇▇▇▇▇▇▇
The Contractor shall advise the Supervisor not later than six months prior
to Fast Cruise that the Contractor is ready to survey the ship to determine the
need for additional spray ▇▇▇▇▇▇▇ on flammable liquid piping. Installation of a
maximum of 100 additional ▇▇▇▇▇▇▇, if authorized by a contract modification at
least four months prior to Fast Cruise, will be accepted by the Contractor with
no schedule impact.
C-4 ALLOWANCE LIST SERVICE
(a) The Contractor shall provide fitting out services and shall be
responsible for providing those operating space items specifically included in
Naval Sea Systems Command specifications as set forth in Section C.
(b) The Contractor shall order, fund, receive, inspect, expedite and follow
up on delivery of operating space items for which he is responsible.
(c) The Contractor shall take whatever action is necessary to furnish all
material for which he is responsible prior to completion of construction; the
Contractor shall expedite such shortages until all items required are delivered
to the ship. The Naval Supervising Activity (NSA) will communicate with the
Contractor in regard to the status of or expediting of the shortages for which
the Contractor is responsible.
(d) The Contractor shall submit shortage reports of material not received
for all Contractor furnished operating space fitting out material to the
Supervisor.
C-5 APPROVAL BY THE GOVERNMENT (AT) (NAVSEA) (JAN 1983)
Approval by the Government as required under this contract and applicable
specifications shall not relieve the Contractor of its obligation to comply with
the specifications and with all other requirements of the contract, nor shall it
impose upon the Government any liability it would not have had in the absence of
such approval.
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N00024-95-C-2106
SCHEDULE
C-6 ASSIGNMENT AND USE OF NATIONAL STOCK NUMBERS (NAVSEA)
(MAY 1993)
To the extent that National Stock Numbers (NSNs) or preliminary NSNs are
assigned by the Government for the identification of parts, pieces, items,
subassemblies or assemblies to be furnished under this contract, the Contractor
shall use such NSNs or preliminary NSNs in the preparation of provisioning
lists, package labels, packing lists, shipping containers and shipping documents
as required by applicable specifications, standards or Data Item Descriptions of
the contract or as required by orders for spare and repair parts. The cognizant
Government Contract Administration Office shall be responsible for providing the
Contractor such NSNs or preliminary NSNs which may be assigned and which are not
already in possession of the Contractor.
C-7 DELETED
C-8 DELETED
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C-9 CREW - CVN 76
(a) A crew furnished by the Government of about three thousand one hundred
and sixty eight (3,168) people referred to hereinafter as the "Crew" will be
present at the Contractor's plant in approximate accordance with the following
quantities and schedule for the vessel:
Schedule for Crew Officers/Enlisted Cumulative
----------------- ----------------- ----------
7 months prior to scheduled
first plant fill* 1/18 1/18
6 months prior to scheduled
first plant fill* 39/268 40/286
4 months prior to scheduled
second plant fill* 24/191 64/477
11 months prior to scheduled
first sea trials* 23/314 87/791
8 months prior to scheduled
first sea trials* 19/260 106/1051
5 months prior to scheduled
first sea trials* 46/1250 152/2301
3 months prior to scheduled
first sea trials* 15/700 167/3001
* Recognizing the lead-time associated with ordering crew members to the
Contractor's plant, the shipbuilder's main events schedule in effect one year in
advance of the prospective reporting dates of each increment will be used to
compute scheduled increment arrival dates. In the event that the schedule
changes after the Navy has issued orders to crew members, the Navy will exert
its reasonable efforts to reschedule personnel reporting dates. In the event
that personnel have reported, the Navy will exert its reasonable efforts to
utilize them, so as to minimize any disruptive effect on the Contractor's work.
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(b) It is contemplated that substantial portions of the vessel outside the
nuclear propulsion plant compartments will be sufficiently completed by the
Contractor prior to fast cruise to permit their transfer to the Government for
such agreed to uses by the Ship's Force, during the interval prior to delivery
of the vessel as will not unduly interfere with the orderly and efficient
completion of remaining Contractor responsible work. Such transfers shall be by
mutual agreement between the Contractor and the Government in accordance with
the procedures of Schedule D. Each transfer shall be by a supplemental agreement
of this contract.
(c) Notwithstanding compartment transfers in accordance with paragraph (b)
of this article, berthing and messing facilities on board the vessel adequate to
accommodate the Crew shall be completed and turned over to the Crew for
occupancy not earlier than six weeks nor later than two weeks prior to Fast
Cruise. During the interval commencing six weeks prior to Fast Cruise and
terminating not later than two weeks prior to Fast Cruise, the Government may
move aboard approximately 25 percent of the Crew each week and the Contractor
will complete and turn over berthing and messing facilities adequate to support
this move aboard phasing.**
(d) Subsequent to the arrival of the fourth increment of the Crew it is
anticipated that the Government may, with members of the Crew, perform certain
defined industrial work tasks not provided for by this contract which shall be
limited to the vessel. These work tasks shall be undertaken in accordance with
Schedule E, only after the Contractor and the Government have executed a priced
supplemental agreement covering applicable Navy Task Order.
(e) The Crew shall have access to the Contractor's plant and to the vessel
at all reasonable times during the periods identified above. The Contractor
agrees to furnish, during the aforesaid periods, suitably furnished office
facilities and conference rooms in accordance with Schedule F for training and
daily meetings of the Crew. The Contractor further agrees that the Crew shall be
permitted to use the equipment, facilities, and services furnished by the
Contractor to the Supervisor.
** The Contractor may accelerate the start of crew move-aboard to support
waterfront scheduling.
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(f) The Nucleus Crew is part of the regularly assigned ship's force and
constitutes the only group of personnel qualified to operate the nuclear
propulsion plant of the vessel. In addition to operating the propulsion plant,
the Nucleus Crew is assigned to assist the Supervisor in his inspections to
insure that construction and checkout of the ship and its equipment meet
contractual requirements, however, the Contractor reserves the right to have the
Supervisor review any discrepancies submitted by the Nucleus Crew to shipyard
personnel.
(g) The Contractor may, for reasonable business necessity, change the
location of the office, training and meeting facilities during the period of
time the Crew is at the Contractor's plant. The Contractor shall give reasonable
notice to the Supervisor and obtain his approval prior to the relocation.
C-10 CVN-68 CLASS PROGRAM INTERACTION
If the Government, subsequent to the date of execution of this contract,
authorizes any change for CVN-74/75 in accordance with the Changes clause of
Contract N00024-88-C-2055 and the Contractor can establish through the
documentation required by the clause of this contract entitled "Documentation of
Request for Equitable Adjustment" that, despite his reasonable efforts to
prevent conflicts, delays, and/or disruptions, such change causes the
Contractor's shipway, berthing, drydock or other facilities to be unavailable
for the ship under this contract and directly results in delays and/or
disruptions to the ship under this contract, then it is agreed that the
Contractor shall be entitled to an equitable adjustment in contract price and/or
delivery in accordance with the Changes clause of this contract.
Nothing in this clause shall be construed or interpreted to limit or
diminish any rights of the Contractor or the Government which may exist under
this contract.
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C-11 DELIVERY OF DATA
Any item of data listed in the DD Form 1423 of this contract which has
previously been delivered to the Government by the Contractor, need not be
resubmitted and delivered hereunder, provided that the Contractor, in writing,
shall timely advise the Contracting Officer of such circumstance, identifying
the DD Form 1423 Line Item and the contract under which the data was submitted
and the place of delivery of such item of data; except, that if the item of data
on the DD Form 1423 of this contract represents a partial revision of previously
delivered data required to reflect the ship, the Contractor shall only be
required to prepare and deliver the required revision as specified in the
applicable DD Form 1423 Line Item.
All data identified on DD Form 1423, Exhibits "A", "B" and "C" shall be
delivered, at the times and to the designation therein specified, via the
Supervisor. The Contractor shall submit to the Supervisor, not later than 180
days after delivery of each vessel, a complete list of data submitted for each
data item identified on DD Form 1423, Exhibits "A", "B", and "C". Those items
not submitted shall also be identified with reasons for non-submittal.
C-12 DEPARTMENT OF LABOR OCCUPATIONAL SAFETY AND HEALTH
STANDARDS FOR SHIPBUILDING (AT) (NAVSEA) (JAN 1990)
Attention of the Contractor is directed to Public Law 91-596, approved December
29, 1970 (84 Stat. 1593, 29 USC 655) known as the "OCCUPATIONAL SAFETY AND
HEALTH ACT OF 1970" and to the "OCCUPATIONAL SAFETY AND HEALTH STANDARDS FOR
SHIPYARD EMPLOYMENT" promulgated thereunder by the Secretary of Labor (29 CFR.
1910 and 1915). These regulations apply to all shipbuilding and related work, as
defined in the regulations. Nothing contained in this contract shall be
construed as relieving the Contractor from any obligations which it may have for
compliance with the aforesaid regulations.
C-13 DESIGN BUDGET
1. Design Budgeting is a process by which the Government schedules the release
of final specifications and provide GFE equipment delivery schedules for the
Design Budgeted Systems and Equipments listed in Schedule "X", after the award
of the contract and after the target cost, target profit, target price, and
ceiling price (hereinafter referred to as the price structure) and ship delivery
schedule have been established.
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2. Schedule "X" and the corresponding Scoping Documents referenced in the
specification have been provided to the Contractor prior to award of this
contract and have been carefully reviewed by the Contractor. The Contractor has
carefully and thoroughly considered the costs and risks associated with the
deferred release of the technical information and GFE deliveries contained in
Schedule "X", and understands both the Design Budget Plans and the potential
variations within the parameters identified in the Scoping Documents referenced
in the specification for each Design Budget Item. Accordingly, the price
structure of the contract reflects the release of the technical information and
GFE deliveries relating to the Design Budgeted Items in accordance with
Schedule "X" and the associated scoping documents for design budgeted items
referenced in the specification.
3. The Contractor certifies that the price for Design Budget Items contained in
the target price of Line Item 0001 is based on information identified in the
Scoping Documents referenced in the Specification. Design Budget items are
listed as follows:
COMBAT SYSTEMS DRAWINGS
NAVY TACTICAL COMPUTER SYSTEM AFLOAT (NTCS-A)
CARRIER INTELLIGENCE CENTER (CVIC)
RADIO COMMUNICATIONS SYSTEM (RCS)
NTCSS (SNAP III/NALCOMIS)
CARRIER TACTICAL SUPPORT CENTER (CV-TSC)
ADVANCED COMBAT DIRECTION SYSTEM (ACDS)
AUXILIARY DETECTION PROCESSOR (SPS-48E EW/
COMMON TRACKER & ADP)
RADAR DISPLAY & DISTRIBUTION SYSTEM (RADDS)
RING LASER GYRO NAVIGATION (RLGN)
SHIP SELF DEFENSE SYSTEM (SSDS)
MARK 7 MOD 4 ARRESTING GEAR
AVIATION DATA MANAGEMENT & CONTROL SYSTEM (ADMACS)
(FORMERLY AIRSYSNET/ISIS)
AVIATION INTERMEDIATE MAINTENANCE SHOP OUTFITTING (AIMD)
NON-CFC 800 TON AIR CONDITIONING & 7 TON REFRIGERATION
PLANTS
HALON XX REPLACEMENT
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In addition, the target price for Line Item 0001 includes the impact, if
any, of deferred delivery of technical information for GFE hardware or software
that is delineated in Schedule "X". Delay in delivery of the technical
information or GFE hardware beyond the dates specified in Schedule "X" will be
subject to mutual resolution by the Contractor and the Government in accordance
with the requirements of the clause of the contract entitled "Changes", or if
mutually agreed to, in accordance with the provisions of this clause.
4. All design budget data deliverables required by Schedule "X" will be
provided by the Government by formal transmittal. Upon receipt, the Contractor
shall promptly review the information provided to determine if the scope of work
identified is consistent with the specific scoping documents referenced in the
specification for each Design Budget Item as agreed to at contract award.
5. In the event that the Contractor demonstrates that the deliverables are not
within the scope of design budget constraints (form, fit and function
characteristics such as weight, power, cable runs, etc....) as specified in the
scoping document, and as agreed to at award, the Contractor shall be entitled to
an equitable adjustment in accordance with the "Changes" clause. These items
must be identified in accordance with Special Contract Requirement H-15
entitled, "Notification of Changes (FT) ALT I" within 30 days of receipt of the
Government transmittal. The Contractor shall, within 45 days of providing
notification, provide a price proposal with the estimated price impact.
C-14 DELETED
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C-15 DRAWINGS AND OTHER DATA
(a) One (1) reproducible copy of working plans, technical manuals for
Government Furnished Equipment, material specifications, and other design data
required for construction of the reactor plant and propulsion control system
will be furnished by the Government to the Contractor for the purpose of this
contract for the following system and/or spaces and equipment:
Reactor coolant system
Reactor coolant maintenance and test system
Coolant pressurizing system
Coolant purification and sampling system
Coolant pressure relief system
Coolant charging system
Coolant discharge system
Coolant valve operating system
Steam generating system
Reactor fill system
Reactor plant fresh water cooling system
Reactor plant discharge storage system
Reactor plant control air system
Reactor compartment boundary closures leakage rate test system
Reactor compartment ventilation and blowdown system
Water treatment system
Primary and secondary liquid shield system
Piping, sounding tubes, etc., passing through the reactor compartment
to serve the reserve feed tanks located under the reactor compartment
and pressurizer shed
Reactor coolant pumping power system
Reactor plant I.C. system
Primary plant control system
Primary plant instrumentation system
Rod control system
Rod position indication system
Reactor protection system
Nuclear instrumentation system
Steam generator water level control system
Radiation monitoring system
Catapult supervisory control system
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Reactor compartment isolation instrumentation system
Reactor safequards system
Calorimetric calibration system
Radiation shielding
Reactor compartment structure, including doors and hatches
Reactor compartment ladders and gratings
Reactor plant foundations for equipment over 50 pounds
Enclosed operating station arrangements
Nucleonics room and secondary sampling station arrangements
Reactor plant handling gear
Radiological controls and marking
Thermal insulation schedule for reactor plant piping and equipment
Reactor compartment machinery arrangement
Arrangements of stowage of reactor plant materials
Steam plant and reactor plant control station arrangement plans
Control panel layouts for steam plant and reactor plant
Reactor Instrument Maintenance System
(b) The drawings, technical manuals, and other design data, including
revisions thereof, identified in paragraph (a) above, have been, are being, and
will be developed for the CVN 68 Class aircraft carriers. Some of such drawings,
technical manuals, and other design data, including revisions thereof, are not
in existence on the date of execution of this contract; they will be provided to
the Contractor in a suitable condition, and in time to support construction. All
the drawings, technical manuals, and other design data, including revisions
thereof, identified in paragraph (a) above, shall be followed and used without
change or deviation, to the extent specified therein, unless a change thereto, a
deviation therefrom, or a waiver thereof is authorized by SEA 08. In the event
any drawing, technical manual, or item of design data, or any revision thereof,
is identified by the Contractor as being in conflict or inconsistent with any
other drawing, technical manual, or item of design data, or any revision
thereof, or with any part of the specification identified in Section C of this
contract, the Contractor shall not proceed with the work affected thereby, but
shall refer any such conflict or inconsistency for resolution to SEA 08.
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(c) The "Notification of Changes" clause of this contract is applicable
to data furnished under Paragraph (a) above.
(d) The release as provided for in the "Notification of Changes" clause
is applicable to the data provided under paragraph (a) above.
(e) (1) The drawings, technical manuals, and other design data provided
to the Contractor under this contract, including revisions thereof, identified
in paragraph (a), (hereinafter sometimes collectively referred to as "data") are
prepared by or for the Government and are to be furnished to the shipbuilder by
the Government under this contract. Some of such data did not exist on the date
of (1) the beginning of the negotiation for or (2) the execution of this
contract. It is anticipated that during the period of performance of this
contract some of such data will be developed and/or revised on the basis of
technical information generated by the Government design contractor, by the
shipbuilder, or by the Government. Data so developed or revised is to be
furnished to the shipbuilder; some of such data may be furnished directly to the
shipbuilder by the Government design Contractor or another Contractor.
(ii) The "Changes" clause of this contract provides, in pertinent part,
for an equitable adjustment to the contract whenever the Contracting Officer
changes the "drawings, design, or specifications" and "such change causes an
increase or decrease in the cost of, or the time required for the performance of
any part of the work under this contract, whether changed or not changed by any
such order ... ". It is understood, however, that not all data furnished to the
Contractor after the date of execution of this contract constitutes a "change"
to which the equitable adjustment provisions of the "Changes" clause apply.
(iii) It is agreed that revisions to non-deviation data shall be
accomplished by the Contractor with no change to target cost, target profit,
ceiling price, or other contract provisions, except when one or more of the
following conditions exists the Contractor shall be entitled to an equitable
adjustment in accordance with the "Changes" clause:
(a) revisions which require ripout or rework.
(b) revisions which require changes to material on order or require
replacement of material.
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(c) revisions which are not timely furnished to the contractor to
support ship construction, which such untimely furnishing results in the
incurrence by the Contractor of additional costs of performance.
(d) revisions which require the Contractor to exceed the requirements
of the specifications.
(f) Drawings, technical manuals, and other design data for the performance
of this contract other than those drawings, technical manuals, and other design
data described in paragraph (a) of this clause shall be subject to the approval
of the Supervisor, in accordance with the drawing procedures delineated in the
specifications except that CVN 68 Class drawings, technical manuals, and other
design data which have been approved by NAVSEA or by the Supervisor of
Shipbuilding, Conversion and Repair, USN, Newport News, Virginia, and which are
used without deviation in the performance of this contract, do not require
further approval. A list of drawings to be so used shall be provided to the
Supervisor prior to such use. Approval of drawings or other data shall not
relieve the Contractor of any responsibility for meeting the requirements of
this contract.
C-16 DRYDOCKING FACILITIES AND SHIPBUILDING WAYS CERTIFICATION (AT) (NAVSEA)
(JAN 1990)
Drydocking facilities and shipbuilding ways employed in the performance of this
contract shall be continuously certified in accordance with MIL-STD-1625C (SH)
Notice 1, and the optional maintenance program described in HDBK-257(SH) dated
31 January 1979.
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C-17 ENGINEERING SERVICES
The Contractor shall be responsible for the proper installation, checkout and
testing of all government furnished equipment and systems, as identified in
C-20, and for making necessary adjustments or alignments to such equipment or
systems, as required by the specifications. The Government will provide
engineering services to support the installation, checkout and testing of such
equipment and systems. These Government furnished services are advisory only,
providing only specialized information regarding the particular equipment or
system to facilitate proper installation, checkout and testing. The timing of
the Government furnished services shall be as mutually agreed to by the
Government and the Contractor. The Government's furnishing of these engineering
services does not relieve the Contractor from its obligations under this clause.
C-18 EXCLUSION OF MERCURY (ELECTRONICS) (NAVSEA) (SEP l990)
(a) Supplies furnished shall contain no free mercury (metallic form) or mercury
compounds (e.g. mercuric oxide and mercuric chloride) without written approval
of the Naval Sea Systems Command (NAVSEA).
Note: The Contractor shall perform a review to the extent necessary to
obtain reasonable assurance that mercury is not being used in the
supplies (e.g. review of drawing parts lists and material lists)
(b) Mercury bearing instruments and equipment (i.e. those instruments and
equipment containing free mercury) shall not be used in the manufacture,
fabrication, assembly testing, etc., of any supplies.
Note: (1) The most probable causes of mercury contamination are direct
connected manometers, mercury vacuum pumps, mercury seals,
mercury-in-glass thermometers, or handling free mercury in the
immediate vicinity of supplies.
(2) The Contractor shall perform a review of his facilities to
provide reasonable assurance that supplies are not in danger of
mercury contamination (e.g. check of instruments and test
equipment).
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SCHEDULE
(3) In case of doubt or question of manufacturing procedures,
equipment, or instruments regarding mercury, contact NAVSEA for
assistance.
(4) In the event of any accident involving mercury contamination or
suspicion of such contamination of supplies, NAVSEA shall be
notified immediately.
(c) The Contractor shall develop the same assurance and confidence of
compliance with the mercury exclusion clause as it does with other specification
requirements (e.g. toxic materials, flammable materials, fragile materials, and
radioactive materials).
(d) The Contractor shall require all subcontractors to comply with the mercury
exclusion requirements.
C-19 EXCLUSION OF MERCURY (MACHINERY) (NAVSEA) (SEP 1990)
(a) The supplies furnished under this contract shall contain no metallic
mercury or mercury compounds and shall be free from mercury contamination (i.e.
during the manufacturing process, tests, or inspections, the supplies offered
shall not have come in direct contact with mercury or any of its compounds nor
with any mercury containing devices employing only a single boundary of
containment. (A single boundary of containment is one which is not backed by a
second seal or barrier to prevent contamination in event of rupture of the
primary seal or barrier.)) Mercury contamination of the supplies will be cause
for rejection of the material.
(b) (1) If there is reasonable cause to suspect the supplies of being
contaminated by mercury, the following test may be used to determine whether
contamination by metallic mercury exists: Enclose the equipment in a
polyethylene bag or close-fitting air-tight container and place in an oven at
125 deg. F(+/-) 5 deg. F for one hour. Sample the trapped air and if mercury
vapor concentration is 0.01 mg/cu meter or more, the material is mercury
contaminated insofar as the requirements of this contract are concerned. Mercury
vapor concentration can be determined with a mercury vapor detector such as a
portable General Electric Vapor Detector (catalog number 8257557G-3), ▇▇▇▇▇▇▇
Instrument Model K-23, or other instruments that have equivalent range and
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SCHEDULE
capabilities. It should be noted that certain vapors such as benzene interfere
with this type of mercury vapor detector and that the detector should never be
zero adjusted in any suspect atmosphere.
(b)(2) If the component would be damaged by heat, or is of such a size or
configuration that it cannot be completely enclosed, a portion of the component,
but not less that 10 percent of the area suspected of being contaminated, may be
enclosed in a close-fitting polyethylene bag or other airtight container for 8
hours at a temperature of 76/o/F [plus] 10/o/F (24/o/C [plus] 5/o/C).
The trapped air then is to be analyzed; if the mercury vapor concentration is
0.01 mg/m/3/ or more, the component is to be considered contaminated.
(b)(3) Some classes of mercury compounds are not volatile at 125/o/F. If
contamination by such a compound is suspected, the Contractor shall contact
NAVSEA to determine the special chemical analysis to be used.
(c) If the inclusion of metallic mercury or mercury compounds is required as a
functional part of the material furnished under this contract, the Contractor
shall obtain written approval from the Naval Sea Systems Command (NAVSEA) before
proceeding with manufacture. The Contractor's request shall explain in detail
the requirements for mercury; identify specifically the parts to contain
mercury; and explain the method of protection against mercury escape. Such a
request will be forwarded to the Government Inspector or Government
Representative with a copy to NAVSEA. Upon approval by NAVSEA, the vendor will
provide a "Warning Plate" as prescribed by NAVSEA which will include a statement
that mercury is a functional part of the item and will include name and location
of that part.
(d) If and to the extent that this contract calls for work to be performed by
the Contractor on a submarine or in the nuclear plant of a surface ship, the
Contractor, in connection with such work, shall not bring into or utilize in the
submarine or nuclear plant of surface ship any equipment, instrument or other
device containing metallic mercury or mercury compounds, unless such equipment,
instrument or device has been approved by NAVSEA or its authorized
representative for use in submarine and/or nuclear plants of surface ships.
(e) These requirements shall be included in all subcontracts hereunder.
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C-20 GOVERNMENT FURNISHED PROPERTY
(a) Except as otherwise provided in the clauses of this section
entitled "Drawings and Other Data", and "Engineering Services", the Government
shall furnish to the Contractor for use under this contract, in accordance with
the clause of Section I entitled "Government Property", only that property
identified in Section C, General Requirement C-38 and Special Contract
Requirement H-27 and that property listed in the following schedules, hereby
incorporated into and made a part of this contract:
(1) Schedule "A" as identified as Part III Section J.
Naval Sea Systems Command Requisition references to any Schedule "A"
other than that described in (a)(l) of this Clause shall be of no force and
effect. Any requirements for the furnishing of material by the Government
appearing in the specifications, plans, drawings, or other data except as
specified in Schedule "A" shall be of no force and effect and are
hereby superseded by the list set forth in Schedule "A". Any and all materials
required for the performance of this contract, except as identified in Section
C, General Requirement C-38 and Special Contract Requirement H-27, which do not
appear in Schedule "A", shall be furnished and installed by the Contractor.
(b) The property furnished by the Government under paragraph (a) (1)
of this clause is for installation or stowage aboard a vessel being constructed
under this contract. None of such property shall be used by the Contractor or a
subcontractor for any purpose other than that for which the property has been
furnished, unless specifically authorized in writing by the Contracting Officer.
Test equipment intended to be provided to the vessel and furnished to the
Contractor for stowage aboard the vessel shall not be used by the Contractor for
any purpose other than for performance of tests required by the specifications.
(c) When pursuant to the clause of Section I entitled "Government
Property", the Contractor is directed or authorized by the Government to effect
repairs or modifications to Government Property, and the Government considers
any of such work to be the responsibility of a third party by reason of a
warranty in favor of the Government or otherwise, the Government shall so inform
the Contractor. In each such case the Contractor agrees to attempt to obtain
full compensation for the performance of such work from such third party. The
term "full compensation" includes reimbursements of costs and may include an
allowance for
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SCHEDULE
reasonable profit. Compensation so obtained shall be in lieu of the equitable
adjustment provided in the "Government Property" clause, provided, however, that
the contract shall be equitably adjusted in accordance with the "Government
Property" clause to the extent that the Contractor is unable to obtain full
compensation from such third party and documents the reasons therefor, or
changes in vessel delivery date are involved, or both.
(d) (i) Paragraph (c) above provides for compensation by third parties
for the repairs or modifications to Government property. The parties agree that
for repairs or modifications to nuclear Government property listed or referenced
in Schedule "A" which the Contractor considers do not involve ship delay or
disruption or a change to any Government contract, the work shall be done under
a Work Authorization issued on a cost-type contract administered and funded for
this purpose by Naval Nuclear Propulsion Program prime contractors.
(ii) Upon acceptance of the Work Authorization, the Contractor will
provide the Contracting Officer a written acknowledgement. The acknowledgement
will state that the Contractor considers (1) no delay in ship delivery will
result and (2) no change in the current negotiated price or amount of any
contract is required as a result of the work covered by the Work Authorization.
The Contracting Officer will then authorize the Contractor to perform the work
based on the use of Work Authorization funding.
(iii) If the Contractor commences the performance of a Work
Authorization as described above and subsequently considers that continuing to
proceed with that Work Authorization would potentially result in delay to ship
delivery or require a change in the current negotiated price of any contract,
the Contractor shall promptly notify the Contracting Officer. Notwithstanding
the provisions of subparagraph (c) above, the Contractor will not be entitled to
a contract change or equitable adjustment for the performance of any work
accomplished as a result of the Work Authorization prior to notifying the
Contracting Officer.
(iv) The authorization procedure identified in (d) (i) above requires
that funding for repairs or modifications to nuclear Government property be
provided by Naval Nuclear Propulsion Program prime contractors. The Contractor
agrees to accept new contracts with Naval Nuclear Propulsion Program prime
contractors or extend the scope of existing contracts to cover repairs to
Government property authorized under (d) (i) above on
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the same terms and conditions as those under Westinghouse subcontract
73-R-Nl40300-S. The fee shall be nine and one half percent (9 1/2%) through
delivery and acceptance of CVN 76. Other changes may be made as mutually agreed
by the parties. Further, the Contractor agrees to negotiate any extension of
such contracts as may be necessary to cover such repairs and modifications
through delivery of the last vessel under this contract.
C-21 GOVERNMENT INSTALLATION OF CRYPTOGRAPHIC EQUIPMENT
The Contractor shall notify the Supervisor in writing of the need for
the Government to install and checkout, on an equipment level, the cryptographic
equipment in the communications center. The foregoing notification shall be
provided seventy (70) calendar days prior to when the communication center can
be made available to the Government. The communication center shall be made
available to the Government on a non-exclusive use basis commencing with the
turnover of the space to the Government.
C-22 GOVERNMENT REVIEW OF PROPULSION PLANT MOCKUP
Government review of the mock-up will be in accordance with Newport
News Shipbuilding Procedure M-149, Revision A-3.
C-23 HEALTH, SAFETY AND FIRE PROTECTION
The Contractor shall take all reasonable precautions in the
performance of the work under this contract to protect the health and safety of
employees and of members of the public and to minimize danger from all hazards
to life and property. The Contractor shall comply with all health, safety, and
fire protection regulations and requirements (including reporting requirements)
of the Government with respect to the risks described in the "Indemnification
Under Public Law 85-804" clause of Section I. In the event the Contractor fails
to comply with such regulations or requirements of the Government, the
Contracting Officer may, without prejudice to any other legal or contractual
rights of the Government, issue an order stopping all or any part of the work
being performed under this contract; thereafter an order for resumption of work
will be issued upon the determination by the Contracting Officer that the
deficiency has been corrected. The Contractor shall make no claims for an
extension of the delivery date of a vessel or for damages or any other
compensation by reason of or in connection with such work stoppage, unless the
Contractor can demonstrate that he was in compliance with such regulations or
requirements of the
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Government. If, after the date of this contract, any of the aforesaid
regulations or requirements are changed by the Government, and if the
Contractor's costs of complying with such regulations and requirements are
thereby increased or decreased, then the contract price shall be equitably
adjusted by reason of such increase or decrease in costs. Any such equitable
adjustment shall be accomplished in the same manner as if the aforesaid changes
had been directed under the "Changes" Clause of Section I.
C-24 DELETED
C-25 ON-BOARD REPAIR PARTS (OBRP)
The Contractor certifies that the proposal for OBRP is based on the
CVN 73 load COSAL as updated to delivery of CVN 73. The Contractor agrees to
provide OBRP for CVN 76 in accordance with the updated incremental COSAL(S)
issued by the Government and the following:
a. A one-time equitable adjustment, based on the following procedure,
shall be included in the final price determined in accordance with paragraph (d)
of the clause of this contract entitled "Incentive Price Revision--Firm Target
(FI) (APR 1984) (DEVIATION - 16 NOV 1992) (NAVSEA 5252.216-9127)". The
adjustment shall be made by determining the net differential in base month cost
of items added or deleted by revisions or changes to the COSAL identified above.
The cost impact on OBRP of changes issued to this contract shall be included in
this one-time adjustment and shall not be incorporated into the adjudicated cost
of individual contract changes.
b. No changes to the OBRP shall be made until and unless the ACO
notifies the Contractor, in writing, that funds adequate to cover said changes
are available. In no event shall the equitable adjustment made pursuant to
paragraph "a" above exceed the amount certified by the ACO as "available" for
this purpose.
C-26 PERMITS AND RESPONSIBILITIES (NAVSEA) (SEP 1990)
The Contractor shall, without additional expense to the Government, be
responsible for obtaining any necessary licenses and permits, and for complying
with any applicable Federal, State, and Municipal laws, codes, and regulations,
in connection with any movement over the public highways of overweight/
overdimensional materials.
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C-27 PLANS AND OTHER DATA (FT) (NAVSEA) (JAN 1983)
Whenever the Department shall so require, the Contractor shall, at the cost of
reproduction, furnish to whomsoever may be designated by the Department
(including other shipbuilding Contractors), copies of working plans (including
reproducibles), selected record plans, indices, material schedules, plan
schedules, purchase specifications and other date relating to the construction
of the vessel. The furnishing of such data shall not constitute any guaranty or
warranty, either express or implied, by the Contractor other than that they are
correct copies of such data.
C-28 PLANT PROTECTION (NAVSEA) (SEP 1990)
(a) The Contractor shall provide for its plant and the work in process under
this contract such safeguards, including personnel, devices, and equipment, as
would constitute reasonable protection under peacetime conditions (in the light
of the size of the plant and the scope of its operations) against all hazards,
including unauthorized entry, malicious mischief, theft, vandalism and fire.
(b) In addition to the foregoing precautions, the Contractor shall provide such
additional safeguards as may be required or approved by the Contracting Officer
for the protection of its plant and the work in process under this contract
against espionage, sabotage, and enemy action. The cost to the Contractor of all
safeguards so required or approved shall, to the extent allocable to this
contract, be reimbursed to the Contractor in the same manner as if the
Contractor has furnished such safeguards pursuant to a change order issued under
the clause of this contract entitled "CHANGES--FIXED-PRICE" (FAR 52.243-1) or
"CHANGES--COST-REIMBURSEMENT" (FAR 52.243-2), as applicable. Such cost shall not
include any allowance on account of overhead expense, except shop overhead
charges incident to the construction or installation of such devices or
equipment.
(c) Upon payment by the Government of the cost to the Contractor of any device
or equipment required or approved under paragraph (b) above, title thereto shall
vest in the Government, and the Contractor shall comply with the instructions of
the Contracting Officer respecting the identification and disposition thereof.
No part or item of any such devices or equipment shall be or become a fixture by
reason of affixation to any realty not owned by the Government.
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C-29 PRINTING OF TECHNICAL MANUALS, PUBLICATIONS, CHANGES, REVISIONS AND
AMENDMENTS - ALTERNATE I (NAVSEA) (MAY 1993)
(a) The printing, duplication, and binding of all technical manuals, books, and
other publications, and changes, amendments, and revisions thereto, including
all copies and portions of such documents which are required to be prepared and
furnished under this contract for review, approval or otherwise, shall be
accomplished in accordance with the issue of "Government Printing and Binding
Regulations", published by the Joint Committee on Printing, Congress of the
United States, as in effect on the date of this contract.
(b) Publications and other printed or duplicated material which (1) are
prepared and carried by equipment manufacturers for regular commercial sale or
use, and (2) require no significant modification for military use or to meet the
requirements of this contract, or (3) are normally supplied for commercial
equipment, shall be provided by the Contractor. Except for material falling
within (1) through (3) of this paragraph, the printing of technical manuals,
publications, changes, revisions, or amendments by the Contractor or
subcontractor is prohibited.
(c) The Contractor shall have the printing and binding of final approved
technical manuals, publications, changes, revisions and amendments thereto, as
required under this contract (whether prepared by the Contractor or a
subcontractor), printed at Government expense by or through the Defense Printing
Service Detachment Office (DPSDO) in the Naval District in which the Contractor
is located, in accordance with the following general procedures:
(1) Prior to preparation of materials for printing (photolithographic
negatives or camera-ready copies) by the Contractor or a subcontractor, the
Contractor shall make arrangements with the DPSDO and with the designated
Contract Administration Office for printing and binding which shall include:
(i) Citation of contract number;
(ii) Security classification of materials to be printed;
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(iii) Establishment of a schedule for printing, including estimated
delivery date to DPSDO;
(iv) Provisions for furnishing photolithographic negatives or
camera-ready copies and art work in the proper sequence for printing;
(v) A check-off list to verify the printing sequence of text pages
and foldouts in the form prescribed by DPSDO;
(vi) Complete printing instructions, which shall specify colors, if
required for specific pages, the trim size, including apron, if required, for
each foldout/in or chart, or other unique requirements;
(vii) Type of binding (sidewire stitch, loose leaf, screw posts,
etc.); and
(viii) Other instructions, as applicable, such as packing
instructions, quantity for each addressee, required delivery schedule, or
delivery instructions. (The Contractor shall provide an address list and
addressed mailing labels for each addressee).
(2) The Contractor shall ship, all transportation charges paid, to
DPSDO or a contract printer designated by DPSDO, the complete set of
photolithographic negatives or camera-ready copies required to be printed in
accordance with the detailed procedures specified by DPSDO. The DPSDO shall sign
the acceptance block of the DD Form 250 for reproducible quality only.
(3) For steam and electrical plant composite diagrams, the Contractor
shall provide an original Mylar print of the diagram to the DPSDO. DPSDO will
prepare the negatives for the composite diagram and return those to the
Contractor for editorial review. DPSDO will correct any errors and print the
corrected composite diagram.
(4) DPSDO will furnish or provide for all supplies and services (including
binders) which are necessary to accomplish the printing and binding.
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(5) DPSDO will pack and ship or provide for packing and shipping of the
printed material to the Contractor and the distribution list furnished by the
Contractor in accordance with the printing order, unless distribution by the
Contractor is otherwise required by the terms of the contract, the
specifications, or otherwise, in which case the printed and bound publications
will be returned to the Contractor for distribution.
(6) DPSDO will pack and ship the material used for printing to the DPSDO,
4th Naval District, for storage.
(d)(1) In establishing the schedule for printing, the Contractor shall
provide for furnishing the photolithographic negatives or camera-ready copies to
DPSDO in time to allow at least the following minimum number of working days
(eight-hour day, five days per week exclusive of Saturdays, Sundays, and
holidays) from date of acceptance of material for printing at DPSDO to date of
shipment of printed material from DPSDO.
Minimum number of working
Printing days required by DPSDO
-------- -------------------------
Up to 200 pages 30
201 pages to 400 pages inclusive 40
401 pages to 600 pages inclusive 50
601 pages and over 60
(2) If DPSDO exceeds the delivery requirements established in accordance
with paragraph (c)(1)(iii), for the item(s) specified, the time shall be
extended by an equivalent number of working days, provided that the Contractor
requests such extensions, in writing, to the Contracting Officer and submits
with its request sufficient evidence to enable the Contracting Officer to
determine the validity of the Contractor's request. If performance of all or
part of the work under this contract is delayed or interrupted by said late
shipment by DPSDO, an adjustment shall be made pursuant to the "GOVERNMENT DELAY
OF WORK" (FAR 52.212-15) clause of the contract.
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(e) The Contractor shall not be responsible for the quality, or quality
control, of printing performed by DPSDO or a printer under contract to DPSDO,
and the Government shall reimburse the Contractor for any costs incurred on
account of replacement of material lost or damaged by DPSDO or a printer under
contract to DPSDO. If such loss or damage of material causes a delay or
interruption of performance of all or any part of the work under this contract,
an adjustment shall be made pursuant to the "GOVERNMENT DELAY OF WORK" clause of
the contract.
(f) The costs of printing, binding, packing and distribution by DPSDO of the
publications and changes described herein (but not the costs of preparing
camera-ready copies and other materials for printing and the costs of
transporting or shipping such materials to DPSDO or a contract printer
designated by DPSDO) shall be borne by the Government.
(g) Procurement of photographic negatives and/or camera-ready copies by the
Contractor is authorized only when the terms of the Joint Committee on Printing
(JCP) Authorization No. 23383 of 25 October 1968 are met.
C-30 PROTECTION OF THE SHIP DURING ADVERSE ENVIRONMENTAL CONDITIONS
The Contractor shall ensure that the ship(s) and all related material at the
Contractor's facilities are protected during conditions of heavy weather, high
winds, heavy snow and icing, high water or similar adverse environmental
conditions. The Contractor shall develop, maintain, and implement as necessary
an "Adverse Environmental Conditions Plan" which prescribes the actions and
procedures and assigns responsibilities for action to be taken in preparation
for and during the period of adverse environmental conditions. The Contractor
shall furnish the plan to the Supervisor and shall make such changes in the plan
as the Supervisor considers necessary to provide for adequate protection of the
ship(s) and the materials and equipment to be installed therein.
C-31 DELETED
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C-32 PROVISIONED ITEMS ORDER - ALTERNATE I (NAVSEA) (MAY 1993)
(Applicable to ITEM 0007)
(a) General. The Contractor agrees that it will furnish the supplies or
services ordered by the Government in accordance with the procedures specified
herein. Orders will be placed by the Contracting Officer, Provisioning Activity
or Administrative Contracting Officer as unilateral or bilateral modifications
to this contract on SF 30, Amendment of Solicitation/Modification of Contract.
Any amounts shown in Section B at time of award for each provisioned line item
are estimated amounts only and are subject to upward or downward adjustment by
the issuing activity. If no amounts are shown, funding will be obligated before
or at time of order issuance. It is understood and agreed that the Government
has no obligation under this contract to issue any orders hereunder.
(b) Priced Orders. For each proposed order, the Contractor agrees that it will
submit a signed SF 1411 (Contract Pricing Proposal) or such other cost or
pricing data as the Contracting Officer may require. Promptly thereafter, the
Contractor and the Contracting Officer shall negotiate the price and delivery
schedule for the proposed order. Upon execution and receipt of the priced order,
the Contractor shall promptly commence the work specified in the order.
(c) Undefinitized Orders. Whenever the Contracting Officer determines that
urgent demands or requirements prevent the issuance of a priced order, he/she
may issue an unpriced order. Such order may be unilateral or bilateral and shall
establish a limitation of Government liability, a maximum ceiling amount, and a
schedule for definitization, as described in subparagraph (e)(2) below. Upon
request the Contractor shall submit a maximum ceiling amount proposal before the
undefinitized order is issued. The maximum ceiling amount is the maximum price
at which the order may be definitized. The Contractor shall begin performing
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the undefinitized order upon receipt, except as provided in paragraph (d) below.
The clause entitled "PRICE CEILING" (DFARS 252.217-7027) shall be included in
any undefinitized order.
(d) Undefinitized Unilateral Orders. (1) For a unilateral undefinitized order,
the Contractor shall within ten calendar days of receipt of the order notify the
Contracting Officer in writing if it takes exception to the ceiling amount
and/or the delivery schedule and shall propose a revised ceiling amount and/or a
revised delivery schedule at that time. For unilateral undefinitized orders to
which the Contractor takes no exception, the Contractor is obligated to perform
just as if it were a fully definitized order.
(2) After receipt of the Contractor's proposal to establish the revised
ceiling amount and/or the revised delivery schedule, the Contracting Officer
shall: (1) adjust the ceiling amount and/or the delivery schedule; (2) advise
the Contractor that the order will be adjusted in a different amount than
proposed by the Contractor; or (3) advise the Contractor that no adjustment will
be made. In the event the Contractor has taken exception to the ceiling amount
and/or the delivery schedule and has submitted a timely proposal in accordance
with the preceding requirement and the Contracting Officer has not accepted the
Contractor's proposal, the Contractor shall not be obligated to perform the
order beyond the point at which it would be entitled to be compensated in an
amount in excess of the Government's limitation of liability contained in the
unilateral order.
(e) Definitization of Undefinitized Orders. (1) The Contractor agrees that
following the issuance of an undefinitized order, it will promptly begin
negotiating with the Contracting Officer the price and terms of a definitive
order that will include: (A) all clauses required by regulation on the date of
the order; (B) all clauses required by law on the date of execution of the
definitive order; and, (C) any other mutually agreeable clauses, terms and
conditions. No later than sixty (60) days after the undefinitized order is
issued, the Contractor agrees to submit a cost proposal with sufficient data to
support the accuracy and derivation of its price; and, when required by FAR,
cost or pricing data, including SF 1411. If additional cost information is
available prior to the conclusion of negotiations, the Contractor shall provide
that information to the Contracting Officer. The price agreed upon shall be set
forth in a bilateral modification to the order. In no event shall the price
exceed the maximum ceiling amount specified in the undefinitized order.
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(2) Each undefinitized order shall contain a schedule for definitization
which shall include a target date for definitization and dates for submission of
a qualifying proposal, beginning of negotiations and, if appropriate, submission
of make-or-buy and subcontracting plans and cost or pricing data. Submission of
a qualifying proposal in accordance with the definitization schedule is a
material element of the order. The schedule shall provide for definitization of
the order by the earlier of:
(i) a specified target date which is not more than 180 days after the
issuance of the undefinitized order. However, up to 180 days after the
Contractor submits a qualifying proposal as defined in DFARS 217.7401; or
(ii) the date on which the amount of funds expended by the Contractor
under the undefinitized order exceed fifty percent (50%) of the order's maximum
ceiling amount, except as provided in subparagraph (f)(3) below.
(3) If agreement on a definitive order is not reached within the time
provided pursuant to subparagraph (e)(2) above, the Contracting Officer may,
with the approval of the Head of the Contracting Activity, determine a
reasonable price in accordance with Subpart 15.8 and Part 31 of the FAR, and
issue a unilateral order subject to Contractor appeal as provided in the
"DISPUTES" clause (FAR 52.233-1). In any event, the Contractor shall proceed
with completion of the order, subject to the "LIMITATION OF GOVERNMENT
LIABILITY" clause (FAR 52.216-24).
(f) Limitation of Government Liability. (1) Each undefinitized order shall set
forth the limitation of Government liability, which shall be the maximum amount
that the Government will be obligated to pay the Contractor for performance of
the order until the order is definitized. The Contractor is not authorized to
make expenditures or incur obligations exceeding the limitation of Government
liability set forth in the order. If such expenditures are made, or if such
obligations are incurred, they will be at the Contractor's sole risk and
expense. Further, the limitation of Government liability shall be the maximum
Government liability if the order is terminated. The "LIMITATION OF GOVERNMENT
LIABILITY" clause shall be included in any undefinitized order.
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(2) Except for undefinitized orders for Foreign Military Sales; purchases
of less than $25,000; special access programs; and Congressionally-mandated
long-lead procurements; and except as otherwise provided in subparagraph (f)(3)
below, the limitation of Government liability shall not exceed fifty percent
(50%) of the ceiling amount of an undefinitized order. In the case of orders
within these excepted categories, however, the procedures set forth herein shall
be followed to the maximum extent practical.
(3) If the Contractor submits a qualifying proposal (as defined in
DFARS 217.7401) to definitize an order before the Contractor has incurred costs
in excess of fifty percent (50%) of the ceiling amount, the Contracting Officer
may increase the limitation of Government liability to up to seventy-five
percent (75%) of the maximum ceiling amount or up to seventy-five percent (75%)
of the price proposed by the Contractor, whichever is less.
(4) If at any time the Contractor believes that its expenditure under
an undefinitized order will exceed the limitation of Government liability, the
Contractor shall so notify the Contracting Officer, in writing, and propose an
appropriate increase in the limitation of Government liability of such order.
Within thirty (30) days of such notice, the Contracting Officer will either (i)
notify the Contractor in writing of such appropriate increase, or (ii) instruct
the Contractor how and to what extent the work shall be continued; provided,
however, that in no event shall the Contractor be obligated to proceed with work
on an undefinitized order beyond the point where its costs incurred plus a
reasonable profit thereon exceed the limitation of Government liability, and
provided also that in no event shall the Government be obligated to pay the
Contractor any amount in excess of the limitation of Government liability
specified in any such order prior to establishment of firm prices.
(g) Initial Spares. The limitations set forth in paragraph (c) and
subparagraphs (e)(2), (f)(2) and (f)(3) do not apply to undefinitized orders
for the purchase of initial spares.
(h) The following Military Standards apply to all orders:
MIL-STD-1561B, Provisioning Procedures, dated 17 November 1984; and
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MIL-STD-1388-2B, DoD Requirements for a
Logistic Support Analysis Record, dated
28 March 1991 and NAVSEA Addendum dated
November 1990.
(i) Terminal Date for Placement of Orders. The Contractor shall not be
obligated to accept any orders placed hereunder beyond 180 days after delivery
of the last end item.
(j) Segregation of Costs. The Contractor shall segregate the costs of
performance of any other work performed by the Contractor.
(k) Ordering. The cognizant ordering activities are designated below:
ITEM ACTIVITY
---- --------
ITEM 0007 SUPSHIP Newport News, VA
C-33 QUALIFICATION OF CONTRACTOR NONDESTRUCTIVE TESTING (NDT)
PERSONNEL (NAVSEA) (MAY 1993)
(a) The Contractor and any NDT subcontractor (as hereinafter defined) shall
utilize for the performance of required Nondestructive Testing (NDT) (which
includes radiography, magnetic particle, liquid penetrant, eddy current,
ultrasonic inspections and visual inspections) only personnel who have been
previously qualified and certified in accordance with MIL-STD-271F(SH) dated 27
June 1986 (including the 1980 edition of SNT-TC-1A). The term "NDT
Subcontractor" is defined to be a first tier subcontractor performing NDT in
conjunction with the production of materials, components, or equipments for the
vessel(s).
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(b) Qualification and Certification of Level III (Examiner) personnel shall be
based on (1) successful completion of appropriate American Society for
Nondestructive Testing Level III Examinations, and (2) successful completion of
specific and practical examinations developed by the Contractor and based on
MIL-STD-271F(SH) and associated fabrication documents. Documentation
pertaining to the qualification and certification of NDT personnel shall be
available to the Contracting Officer for review upon request.
(c) These requirements do not apply with respect to nuclear propulsion plant
systems and other matters under the technical cognizance of SEA 08. Because of
health and safety considerations, such matters will continue to be handled as
directed by SEA 08.
C-34 DELETED
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C-35 QUALITY PROGRAM
The Contractor shall provide and maintain a quality program acceptable to the
Government for supplies and services covered by this Contract. The quality
program shall be in accordance with Military Specification MIL-Q-9858A dated 16
December 1963, except as otherwise provided below:
(a) Reactor Plant Quality Program
(1) The Contractor shall provide and maintain a quality program for
the reactor plant, separate from the quality assurance system for the rest of
this ship, meeting requirements for MIL-Q-9858A EXCEPT AS NOTED BELOW.
(2) The following exceptions and clarifications apply to MIL-Q-9858A
with respect to the reactor plant quality program:
(i) Paragraph 3.6 does not apply.
(ii) The last sentence of paragraph 6.5 does not require a system
for the continuous gathering of data associated with costs and losses in
connection with scrap and rework. However, the Contractor shall furnish such
data in specific cases when requested.
(3) The following additional requirements apply:
(i) The reactor plant quality control organization shall be
independent of the quality control organization responsible for other work, and
also independent of the organization actually performing reactor plant
production work. The reactor plant quality control organization shall also be
responsible for quality control of all Government-furnished reactor plant
equipment from the time of its receipt in the shipyard.
(ii) A reactor plant material control system shall be maintained that
is independent of other shipyard material control systems. Reactor plant
material consists of that material which appears in the non-deviation reactor
plant drawings, which drawings are to be furnished by the Government in
accordance with Section C-2, General Requirement C-15 "Drawings and Other Data".
Reactor Plant Controlled Material (including rejected material) shall be
segregated from other material while it is being stored and handled in the
shipyard. The scope of material designated Reactor Plant Controlled Material
shall be at least
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that specified in NNSD RPCM Procedure A-135. Reactor plant material other than
that defined as Reactor Plant Controlled Material in accordance with Procedure
A-135 shall be controlled in accordance with NNSD RPCM Procedure A-134.
Experience with the quality program may result in the need to add or delete
items from the list of Reactor Plant Controlled Material in order to meet the
intent of MIL-Q-9858A. The Contractor shall inform the procuring activity's
representative of addition or deletion of any reactor plant item from the
Reactor Plant Controlled Material system, and make available to the procuring
activity's representative upon request the technical basis for such additions or
deletions (normally such requests will only be made for deletions), with the
understanding that such additions or deletions are subject to disapproval by the
procuring activity when the additions or deletions do not satisfy the intent of
MIL-Q-9858A.
(iii) Periodic internal audits shall be conducted by the Contractor to
assess the adequacy of individual performance and quality program performance in
providing quality control of reactor plant work, including audits of those areas
of reactor plant work not inspected by reactor plant quality control
organization inspectors. Follow-up audits shall be conducted to assure that the
necessary corrective action, including elimination of the underlying causes of
deficiencies, is taken. The results of the above audits and proposed corrective
action shall be distributed to responsible senior management personnel.
(iv) The reactor plant quality program shall be subject to audit on a
periodic basis by NAVSEA 08 for compliance with the above requirements.
(b) Non-Reactor Plant Quality Program
(1) The quality program requirements of this clause do not extend to
those items covered by MIL-D-1000/2 as set forth in the contract specifications.
(2) The requirements of MIL-Q-9858A shall not apply to
equipment/components except where invoked by applicable equipment/component
specifications referenced in the contract specifications. In the event MIL-Q-
9858A requirements are invoked in the applicable equipment/component
specifications, the following shall apply:
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(i) In cases where two (2) or more potential suppliers, who have
submitted quotations and are otherwise acceptable to the Contractor, have
furnished or are furnishing similar equipment in accordance with the
requirements of MIL-Q-9858A and whose MIL-Q-9858A quality program has been
reviewed and either approved or not disapproved by the Government, MIL-Q-9858A
shall be invoked.
(ii) In cases where a single potential supplier, otherwise
acceptable to the Contractor, has furnished or is furnishing similar equipment
in accordance with the requirements of MIL-Q-9858A and whose MIL-Q-9858A quality
program has been reviewed and either approved or not disapproved by the
Government, MIL-Q-9858A shall be invoked, unless otherwise mutually agreed upon
between the Project Manager and the Contractor. In the event MIL-Q-9858A is not
invoked, the action to be taken by the Contractor to obtain assurance of quality
commensurate to that obtainable by MIL-Q-9858A shall be mutually agreed upon by
the Project Manager and the Contractor. Such action shall include appropriate
combinations of two (2) of the following:
(A) Source survey and evaluation of the supplier's program.
(B) Source inspection.
(C) Objective quality documentation.
(D) Component, subsystem and/or test.
(E) Invoked Military Specification MIL-I-45208A.
(3) The following exceptions and clarifications apply to MIL-Q-9858A with
respect to the non-nuclear plant quality program.
(i) Paragraph 3.6 does not apply.
(ii) The last sentence of paragraph 6.5, does not require a system for
the continuous gathering of data associated with costs and losses in connection
with scrap and rework. However, the Contractor shall furnish such data in
specific cases when requested.
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(c) Inspection System: The inspection system which the Contractor is
required to maintain, as provided in paragraph (f) of the clause of this
Contract entitled "Inspection" shall be in accordance with the requirements of
this clause.
(d) Quality Assurance Management System Meetings
The Contractor agrees to attend quarterly Quality Assurance Management System
Meetings to be held at the Supervisor's office, or, if the Supervisor so elects,
at the Contractor's plant, beginning three months after the effective date of
this contract. The purpose of these meetings is to review the Contractor's
performance to contractual quality program requirements, actions proposed to
correct deficiencies found, if any, progress in correcting the deficiencies
found, if any, and other related matters. The Contractor and the Supervisor
shall agree to a written agenda and the Contractor shall provide copies of all
meeting handouts no later than five (5) working days before the meeting.
(e) Clarifications: MIL-STD-45662, referenced in MIL-Q-9858A Amendment
2 dated March 8, 1985, shall be implemented for all calibrated test and
measurement equipment used for final shipboard test or measurements unless the
equipment is self-checking, normally standardized prior to use, cross-checked by
overlapping ranges or other instruments, or the out-of-tolerance condition does
not adversely affect the test results.
C-36 QUARTERLY PRODUCTION PROGRESS CONFERENCE
The purpose of the Quarterly Production Progress Conference (QPPC) is to
provide a thorough evaluation of the production status and to identify and
resolve problems affecting production schedules, cost, technical and management
problems and timely completion of the ship.
The Contractor shall prepare the recommended Quarterly Production Progress
Conference (QPPC) agenda in writing for this contract. The agenda shall be
forwarded to the Supervisor for review ten working days prior to each
conference. The Contractor shall develop a format in general accordance with
Appendix 9-A of Ship Acquisition Contract Administration Manual to provide for
clarity of presentation for the items listed below. The Contractor agrees to
attend Quarterly Progress Meetings to be held at the discretion of NAVSEA, in
Washington, D.C. at the facilities of the Contractor, or at a mutually agreeable
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facility of a major subcontractor located within the continental United States.
The presentation of the progress report information at the QPPC shall be oral,
supported by graphic aids, and written documentation as necessary. The
Supervisor shall be advised if projection equipment will be required. The report
shall be related to the current Contractor's principal events schedules, and
should contain the following:
(1) Scheduled key events completed and scheduled key events missed
during the previous quarter, with reasons for those missed and action planned to
overcome the delay and recover the Schedule to prevent late delivery of the
ship.
(2) Key events scheduled for the next quarter and a prognosis for
each.
(3) Critical dates of key events which must be met in the next quarter
in order to maintain the delivery date.
(4) Sixty days after award of the contract, the contractor shall
prepare a PERT network showing the paths of key events to be accomplished prior
to delivery. This PERT network shall be updated quarterly. Fragmented PERT
networks of critical systems and/or supporting certain key events shall be
developed by the Contractor in connection with the Contractor's planning effort
and shall be submitted quarterly.
(5) Percentage of completion for labor, material and over-all ship.
(6) The Contractor shall supply a current labor progress curve to
NAVSEA one week prior to the QPPC, showing actual labor progress versus planned
progress.
(7) Status of Contractor Design
---------------------------
(A) Plan Submittal for Government Approval
Number scheduled for initial submittal to date
Number actually submitted
Number approved
Total number of plans
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(B) Plan Issues
-----------
Number scheduled for issue to date
Number actually issued
Number of plans late
Total number of plans
(C) Problems
--------
List of late plans impacting ship schedule
with reason for delinquency
(D) Completion of Tests
-------------------
Total number of tests: Started Completed
------- ---------
Scheduled
Actual
Ahead of schedule
(E) Engineering Hold-ups (Both Government and
--------------------
Contractor Responsible)
1. Number of design hold-ups in effect to date
2. Number of design hold-ups resulting in
delay due to need for GFI
(NOTE: Upon request, a list of drawings
affected and the reason for this
hold-up on each drawing will be
provided).
(8) Contractor Furnished Material
-----------------------------
(A) Components and Material
-----------------------
Total item on MOS
Total item scheduled to be placed (MOS)
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Scheduled MOS item actually placed
Total MOS items delinquent
Estimated Final items on MOS
Percentage of Estimated Final Items
placed to date
(B) Status of Contractor Furnished Material, with
specific reference to those items whose
anticipated delivery will require
rescheduling of principal events.
(9) Government Furnished Material and Information
---------------------------------------------
(A) Government Furnished Material
-----------------------------
A list of those Government Furnished items
for which the promised delivery date is later
than the required-in-yard date and the late
receipt may cause specific principal events
to be missed.
(B) Government Furnished Information (GFI)
--------------------------------------
A listing of outstanding GFI (including
specific data element identification) and the
specific effect on design and/or construction
effort.
(10) Contractor and Government Furnished OBRP
---------------------------------------
SRI "O" OSI TOTAL
--- --- --- -----
Line items required
Line items received
Percentage received
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(11) Technical Manuals--Contractor Furnished
---------------------------------------
(A) Number of Manuals Required-----
(B) Number of Manuals available for use by
SUPSHIP/Ship's Force ------ Includes:
1. Number of Final Manuals Distributed AND
2. Number of Preliminary Manuals submitted to
SOS/Ship-----
NOTES: Excludes Preliminary Manuals for
which Final Manuals have subsequently
been distributed.
(C) Number of Final Manuals which have not been
distributed---------
1. At SOS for approval
2. In process by N.N./Vendor-------
3. At DPSDO for printing
(12) Contract Data Requirements List CDRL DD-1423
--------------------------------------------
Line items scheduled for delivery to date
Line items delivered to date
Line items delinquent
Problem areas identified
(13) Quality Assurance (Non-Nuclear)
-------------------------------
(A) Vendor Evaluation
I. Number of vendor in plant audits this quarter
a. Number with CVN contracts
satisfactory
b. Number with CVN contracts
unsatisfactory
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c. Provide data identifying vendors found
satisfactory, vendors found
unsatisfactory and a brief summary of
findings against each unsatisfactory
vendor.
2. Number of vendors subject to quality
aspect evaluation
(B) Internal Audit Program
1. Number of in-plant (INNS) audits this
quarter
2. Number of unsatisfactory findings per
audit
3. Brief summary of action related to
unsatisfactory findings with respect to
each ship under this contract
(C) Calibration Program
1. Total calibration performed
2. Number of calibrations requiring
correction
3. Percent of calibration requiring
correction
(D) Welding Reject Rate UT RT
1. Long term rate
2. Rate last quarter
3. Rate last month
4. Analysis of significant changes in
data (plus or minus 2%) from one month
to the next, whether an increase or
decrease
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(14) Tank/Compartment Turnover to the Government
-------------------------------------------
(A) Number scheduled for turnover
(B) Number actually turned over
After delivery of the ship, the Contractor shall continue to report
the status of incomplete items to NAVSEA PMS 312, and the Supervisor on a
quarterly basis until final settlement of the contract or as mutually agreed
upon.
This clause does not apply to items under the technical cognizance of
Deputy commander, Nuclear Power Directorate, Naval Sea Systems Command (NAVSEA
08). Production Progress Information will be provided as required by NAVSEA 08.
(15) A meeting of Government and Contractor Business Review Personnel
shall be held on a quarterly basis, following submission of the Contractor's
quarterly Cost Performance Report (CPR) and prior to the quarterly QPPC, to
discuss Cost/Schedule Control System variances and cost experience in relation
to budget and projected end cost. Explanations of the variances should clearly
identify the nature of the problem, the reasons for cost or schedule variance,
impact on the immediate task, impact on the total program and the corrective
action taken. Lastly, in conjunction with the QPPC, the Contractor shall be
responsible for reporting back to, and discussing the summary highlights from
these CPR meetings with the appropriate Government representatives.
C-37 RADIOLOGICAL CONTROLS AND RADIATION HEALTH PROTECTION
Work on or associated with naval nuclear propulsion plants under this
Contract constitutes use of a "utilization facility" in accordance with Sections
91b and 110 of Public Law 83-703, and the Contractor has been authorized to
perform such work by NAVSEA pursuant to NAVSEAINST 9210.12.
The Contractor agrees, therefore, to perform such work in accordance with
procedures which conform to NAVSEA 389-0288 "Radiological Controls for
Shipyards". The provisions of this clause are supplementary to the requirement
in Section C-2, General Requirement C-12 entitled "Department of Labor
Occupational Safety and Health Standards for Shipbuilding".
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C-38 REACTOR PLANT SPECIAL TOOLING AND TEST EQUIPMENT
Whereas the parties of this contract have provided under Contract
N00024-90-E-3501 for the storage, accountability and use of all reactor plant
special tooling and/or special test equipment to which the Government has or
will obtain title under this Contract;
Now, therefore, the parties do agree as follows:
1. All reactor plant special tooling and special test equipment
provided by or acquired for the Government in connection with or under this
Contract which meets the definition contained in the "Schedule" of Contract
N00024-90-E-3501 is hereby transferred to Contract N00024-90-E-3501.
2. The Contractor shall have the right to continue rent free use of
all property transferred from this Contract to Contract N00024-90-E-3501
pursuant to paragraph 1 above, for the performance of work under this
Contract.
3. The Contractor is responsible for scheduling the use of all such
property.
C-39 RECORDING AND MAINTAINING DATA FOR REACTOR PLANT WORK
The Contractor shall record all data and certify by signature the
completion of all actions in connection with the Reactor Plant Work in
accordance with NAVSEAINST 9210.23B. All such data and certification shall
be retained by the Contractor in accordance therewith.
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C-40 SHIPYARD PHYSICAL SECURITY
(a) In furtherance of the responsibility of the Contractor to provide certain
safeguards for its plant and work in process under General Requirement
C-28 "Plant Protection", the Contractor's Shipyard Physical Security Plan,
Rev. 6 dated November 30, 1990 is hereby made a part of this contract. It
identifies the physical security safeguards that the Contractor will maintain
throughout contract performance, and commits the Contractor to make specific
improvements or revisions to shipyard physical security measures responsive to
the standards of the NAVSEA "Physical Security Standards" of 5 September 1984.
(b) It is understood and agreed that any improvements, modifications, or
changes which the Contractor makes to any of its facilities as a result of
the aforementioned shipyard physical security plan are not to be directly
charged to the Government, but are to be capitalized in accordance with the
Contractor's disclosed accounting procedures. In addition, all other shipyard
physical security changes required by this plan, including but not limited to
personnel, equipment, maintenance, etc., are to be charged and accounted for
in accordance with the Contractor's disclosed accounting procedures.
C-41 SPECIAL AGREEMENT REGARDING SWITCHBOARD SUBCONTRACTS
(NAVSEA) (FEB 1991)
(a) The Government has an interest in maintaining a competitive market for
switchboards to be used on U.S. Naval vessels. The requirements of 10 U.S.C.
2507 result in a major component of certain switchboards (i.e. air circuit
breakers) being available from a single domestic source who is also a competitor
for such switchboards. Therefore, the Contractor shall evaluate subcontract
proposals for such switchboards exclusive of air circuit breaker content or on
some other basis that ensures an equitable switchboard competition.
(b) Notwithstanding approval of the Contractor's purchasing system or
the thresholds established in the "Subcontracts" clause the Contractor shall,
in all cases involving subcontracts which contain air circuit breakers for
switchboards, give advance notification to the Contracting Officer and obtain
written consent
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of the Contracting Officer prior to placing any such subcontract. Such advance
notification shall include all information required by the "SUBCONTRACTS (FIXED-
PRICE CONTRACTS)" (FAR 52.244-1) clause.
C-42 STANDARDIZATION
Subject to meeting the requirements of the specifications, to the extent that it
is reasonably practical, feasible and cost effective, the Contractor shall
utilize equipments and components identical to those of the CVN 68 NIMITZ Class
Ships. Where equipments or components are not reasonably available, the
Contractor shall select hull, mechanical, and electrical components in the
following order:
(a) Equipment which meets the requirements of the specifications and is
identical to equipments and components of other Aircraft Carriers.
(b) Equipment which meets the requirements of the specifications and which
appears in NAVSEA Standard Components List for Hull, Mechanical and Electrical
Equipment, NAVSEA S-0300-A-PLL-00-O (standard equipment).
(c) Equipment which meets the requirements of the specifications.
The vessel under this contract shall have the same general arrangement of
fittings, piping, wiring, ship arrangement, and general layout of major
machinery, equipment and systems as other CVN 68 Class vessels unless otherwise
approved by the Naval Sea Systems Command. All shaft tapers, coupling boxes, and
propeller hubs shall be machined to the same templates.
To the greatest extent practicable, the Contractor shall provide for the
interchangeability of components within the propulsion machinery, mechanical
and electrical auxiliaries, interior communications, weapons control, and
electronics equipment.
Among individual components, all similar parts including on-board repair parts,
shall be interchangeable without additional machining or selective assembly and
with a minimum of hand fitting.
The Contractor shall use appropriate procurement techniques to promote this
standardization objective and shall include the substance of this clause in
subcontracts and purchase orders.
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C-43 DELETED
C-44 USE OF JIGS, FIXTURES, MODELS, MOCKUPS OR SIMILAR
NON-RECURRING ITEMS FROM PREVIOUS CVN 68 CLASS CONSTRUCTION
SHIPS
The Contractor shall not be required to duplicate jigs, fixtures, models,
mock-ups, or similar non-recurring items which were required for previous CVN 68
class construction ships and are fit for such use. In like manner for equipment
or components for this contract insofar as such items are of the same design and
built using the same technical information as the equivalent equipment or
components for previous CVN 68 class ships, the Contractor shall not be required
to duplicate special lead unit qualification tests (which term includes shock
tests) required for first units, first units on a contract or order, first ship
of the class, first ship of the contract, or similarly identified units unless
required by the shipbuilding specification for qualification of a new vendor.
C-45 USE OF POWER GRINDERS AND SAWS (NAVSEA) (SEP 1990)
(a) All portable pneumatic grinders or reciprocating saws that are to be used
on reactor plant material or equipment or used within the reactor compartment
shall be equipped with safety lock-off devices. In addition, the Contractor
agrees that all portable pneumatic grinders or reciprocating saws that it
purchases or acquires subsequent to the date of this contract, for use in
performance of this contract in Naval workplace areas shall be equipped with
safety lock-off devices.
(b) A "safety lock-off device" is any operating control which requires positive
action by the operator before the tool can be turned on. The lock-off device
shall automatically and positively lock the throttle in the off position when
the throttle is released. Two consecutive operations by the same hand shall be
required first to disengage the lock-off device and then to turn on the
throttle. The lock-off device shall be integral with the tool, shall not
adversely affect the safety or operating characteristics of the tool, and shall
not be easily removable.
(c) Devices, such as a "dead man control" or "quick-disconnect", which do not
automatically and positively lock the throttle in the off position when the
throttle is released, are not safety lock-off devices.
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C-46 DELETED
C-47 INVENTION RIGHTS
If in the performance of this Contract, the Contractor invents, discovers,
conceives, or first actually reduces to practice a patentable invention, the
entire right, title and interest in said invention shall be assigned to the
Government, subject only to a royalty-free, non-exclusive license in the
Contractor to practice the same. The Contractor will submit annually a report,
including negative reports, of any such patentable inventions.
C-48 EXCUSABLE DELAY
(a) As used in this contract, "excusable delay" means any delay in delivery
beyond the contract delivery date which results from causes described in
paragraph (c) of the clause of this contract entitled "Default", provided such
causes are determined to be beyond the control of and without the fault or
negligence of the Contractor. Upon presentation to the Contracting Officer of
sufficient information or data in support of a written request for excusable
delay, the Contracting Officer will determine the extent of any such excusable
delay and, as appropriate, shall extend the contract delivery date. No
adjustment in the target cost, target price, or ceiling price will be made as a
result of any extension in contract delivery date granted under this clause.
(b) Any dispute arising under this clause shall be determined in accordance
with and subject to the provisions of the "Disputes" clause of this contract.
C-49 PAYMENT OF INVOICES
The parties agree that the Government will promptly make payment upon submission
of invoices by the Contractor in accordance with the provisions of this
contract. Such payment shall be made within the same time intervals from
submission of invoices to receipt of payments by the Contractor as has been the
practice for previous contracts between NAVSEA and Newport News Shipbuilding.
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C-50 PROVISIONS RELATING TO MATERIAL FORMERLY FURNISHED BY THE
GOVERNMENT ON PREVIOUS AIRCRAFT CARRIERS CONTRACTS
Whenever the Contractor is requested or required to provide materials for the
construction of CVN 76 which were provided by the Government as Government
Furnished Material (GFM) on previous aircraft carrier contracts, the Government
agrees that the Contractor can provide those materials to the same criteria that
the Government used when procuring and providing those materials including any
waivers or deviations granted.
C-51 ACCESS TO THE NAVY SUPPLY SYSTEM
(a) Pursuant to the clause of this contract entitled "GOVERNMENT SUPPLY
SOURCES" (FAR 52.251-1) the Contracting Officer hereby authorizes the Contractor
to place orders with the Navy Supply System for materials and equipment or other
supplies necessary to perform the required work. The Contractor shall make
payment on account of materials and equipment and other supplies ordered and/or
received in accordance with the normal requirements of the Naval Supply Systems
Command, but in no event shall payment in full be later than 30 days after
receipt of the NAVSUP Form 1080 provided via the Supervisor to the Contractor
for each order. The Contractor shall pay the Naval Supply System any costs for
materials, equipments, or other supplies obtained including any surcharges
normally charged to any other Naval Supply system user.
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(b) This contract has been priced on the basis that, except as specifically
provided elsewhere in this contract with regards to Government furnished
property, the Contractor shall provide all necessary materials, equipments and
supplies for performance of this contract. If the Contractor uses the Naval
Supply System, it has elected to use the system for its own convenience to meet
its contractual obligations to perform the work under this contract. The Naval
Supply System is considered to be an alternate source or vendor of contractor
furnished material; therefore materials, equipments, or other supplies ordered
and/or obtained from the Naval Supply System are specifically not considered to
be Government furnished material, but are considered to be Contractor furnished
material. The Government makes no representation as to the availability of
materials, equipments, or other supplies for the performance of the work
required under this contract, nor shall unavailability, late delivery, delivery
of non-conforming supplies, higher costs of the Naval Supply System (if any), or
any failure of the Naval Supply System to meet the expectations or requirements
of the Contractor constitute excusable delay or grounds for equitable or any
other adjustment to the contract or relief from the requirement to perform in
accordance with the terms of the contract.
C-52 CLARIFICATION OF "INSURANCE - PROPERTY LOSS OR DAMAGE -
LIABILITY TO THIRD PERSONS" CLAUSE
The following clarification applies to the first "Provided further" provision of
paragraph (a) of Special Contract Requirement H-12, "Insurance--Property Loss of
Damage--Liability to Third Persons":
The risks of loss and damage assumed by the Government addressed in the
second sentence of said paragraph (a) include, but are not limited to,
losses or damages which are consequences of defective workmanship or
defective materials or equipment, or workmanship or materials which do not
conform to the requirements of the contract. The contractor is responsible
for the inspection, repair, replacement, or renewal of such defects
themselves.
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C-53 CONTRACT ADJUSTMENT FOR ENERGY SHORTAGE
In order to mitigate the impact on the Contractor resulting from
substantial interruptions, shortages, reductions, or denials of the following
types of energy supplies, including governmental orders issued because of energy
shortages and which prohibit the use of such energy supplies or regulate hours
or time of work to conserve such supplies (hereinafter referred to as energy
shortages):
(1) Electricity
(2) Fuel Oil
(3) Acetylene Gas
(4) Propane Gas
(5) Coal
(a) An equitable adjustment in the Target Cost (but excluding adjustment
to the Target Profit and Ceiling Price) and contract delivery schedule shall be
made in accordance with the procedures of the "Changes" Clause of this Contract,
except as otherwise provided in this clause, and as set forth below in (c) and
(d) in the event work under this contract is affected by energy shortages due to
causes beyond the control of the Contractor.
(b) Energy shortages shall be deemed to have occurred whenever the
Contractor demonstrates that an energy shortage has occurred and that energy
supplies to the Contractor are or have been insufficient to keep the direct
charge production work force, excluding salaried personnel (hereinafter
referred to as work force), employed on a reasonably productive basis, and that
such energy shortage results in more than three (3) working days of delay as
calculated in (c) and (d) below. "Working days" are Monday thru Friday, but
exclude Contractor recognized holidays.
(c) The number of working days of delay caused by the energy shortages
defined in (b) above shall be determined in the following manner:
(1) At the end of any calendar month in which the Contractor experienced
an energy shortage, establish the total number of working days on
which a reduction by pass-out, lay-off, or equivalent actions
affecting the work force occurred due to such energy shortages.
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(2) At the end of the calendar month involved use the previous fifteen
(15) normal working days which were not affected by the energy
shortage to establish the average manhours incurred per day by the
work force for this contract.
(3) Establish the average manhours incurred per day for the work force for
this contract on those working days affected by an energy shortage
during the calendar month as identified by (c)(1).
(4) The average percent work force reduction for the working days
identified in (c)(l) for this contract shall be determined by
subtracting (c)(3) from (c)(2) and dividing the result by that
established in (c)(2).
(5) At the end of the calendar month involved use the previous fifteen
(15) normal working days identified in (c)(2) above which were not
affected by the energy shortage to establish the average number of
equivalent work force employees (exclusive of overtime) for the total
shipyard.
(6) Establish the average number of equivalent work force employees
passed-out, laid-off or equivalent actions per working day due to
the energy shortage for the total shipyard for the working days
during the calendar month affected by an energy shortage as
identified in (c)(l) above.
(7) The average percent work force reduction for the working days
identified in (c)(l) for the total shipyard shall be determined by
dividing the answer established in (c)(6) by that established in
(c)(5).
(8) The total number of working days of delay occurring in the calendar
month involved shall then be determined by the product of the average
percent work force reduction for either the total shipyard or for this
contract, as determined in (c)(4) and (c)(7), whichever is lesser, and
the total number of working days affected by the energy shortage in
the calendar month as identified in (c)(1).
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(9) The Contractor shall maintain records or reports which show the actual
number or equivalent number of work force employees passed-out, laid-
off or equivalent actions for the total shipyard as a result of an
energy shortage.
The above can be restated as follows:
Number of working days of = (R)(D)
delay for calendar month
where R = average percent work force reduction
as a result of energy shortage.
Either total yard or this contract,
whichever is lesser.
D = Total number of working days for
which reduction of the work force
occurred because of energy shortage
during the calendar month.
(d) No adjustment in the Target Cost or Contract delivery date shall be made
under this clause for any monthly period unless more than three (3) working days
as calculated results from energy shortages in the calendar month involved. If
consecutive working days of delay occur (in excess of three (3) working days)
such that it overlaps calendar months, an adjustment shall be made for the
entire duration of the delay even though three (3) or less working days occurred
in either of the calendar months. The adjustment in target cost for each working
day of delay shall be as follows for the respective calendar years shown:
1995: $ 32,900 2000: $609,100
1996: $172,300 2001: $651,400
1997: $370,100 2002: $539,100
1998: $514,600
1999: $598,400
The contract delivery date shall be adjusted to provide the additional number of
working days determined in (c)(8) if such adjustment is more than three (3)
working days as described in this paragraph.
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(e) It is in the mutual interest of the parties to identify at the
earliest possible time potential energy shortages. Early notification to the
Contracting Officer is necessary in order that timely action may be taken to
minimize the effect of any energy shortage. The Contractor shall give written
notice within ten (10) working days on which the energy shortage first causes
the Contractor to pass-out or lay-off production work force employees and the
Contractor shall not be entitled to an adjustment under this clause due to
energy shortages for any period of time more than ten (10) working days prior
to the date on which the Contractor gives written notice under this clause. The
proposal for adjustment in target cost and delivery schedule, including all
calculations and documentation required in accordance with the provisions of
the contract shall be submitted within forty-five (45) days from the end of the
monthly period affected by an energy shortage which exceeds (3) working days (as
determined by paragraphs (c) and (d) of this clause) or any extension thereof as
the Contracting Officer may-allow. Further, the Contractor will exercise all
reasonable efforts, including exploration into areas of alternate sources of
energy and various methods of conservation of internal shipyard reallocation,
to mitigate the impact of such energy shortages. In the event of notification
of an energy shortage where the lack of energy types described in this clause
would cause any of the Contract work to be adversely impacted or delayed at the
Contractor's plant, the Contracting Officer will use his best efforts to: (1)
provide the necessary priority to enable the Contractor to obtain the shortages
identified, or (2) make such types and amounts of energy available from
Government sources.
(f) Requests for equitable adjustment under this clause shall be in
accordance with Clause H-6 (Documentation of Request for Equitable Adjustment).
(g) The provisions of paragraphs (a) through (f) of this clause shall
not be included in any subcontracts under this contract.
(h) The determination that any delay is not a cause for adjustment
under this clause will not affect or establish the Contractor's right, if any,
to an equitable adjustment in contract delivery schedule for any excusable
delays including those resulting from energy shortages.
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C-54 HYDRA SYSTEM
The contract price is based on the Contractor obtaining the Hydra System in
accordance with the shock requirements of Section 9650-2 of the specifications
at a cost not to exceed $2,733,768. In the event the Hydra System cannot be
obtained at this cost the Contractor shall immediately notify the Government in
writing. In the event the Contractor demonstrates that the actual cost of the
Hydra System exceeds $2,733,768 and complies with all notification requirements
of the contract including Special Contract Requirement H-15 entitled,
"Notification of Changes (FT) Alt I", the Contractor shall be entitled to an
equitable adjustment in accordance with the "Changes" clause.
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SECTION D - PACKAGING AND MARKING
Items 0003, 0004, 0005 and 0006 - All unclassified data shall be prepared for
shipment in accordance with best commercial practice.
Item 0007 - The parts ordered hereunder shall be cleaned, preserved, packaged,
packed and marked in accordance with instructions provided by the Contracting
Officer, provisioning activity or ACO. When not otherwise instructed, spare and
repair parts shall be cleaned, preserved, packaged, packed and marked Level A in
accordance with Military Specification MIL-E-17555H, dated 15 November 1984.
D-1 IDENTIFICATION MARKING OF PARTS (NAVSEA) (MAY 1993)
(a) Identification marking of individual parts within the systems, equipments,
assemblies, subassemblies, components, groups, sets or kits, and of spare and
repair parts shall be done in accordance with applicable specifications and
drawings. To the extent identification marking of such parts is not specified
in applicable specifications or drawings, such marking shall be accomplished in
accordance with the following:
(1) Parts not manufactured to Government specifications shall be
marked in accordance with generally accepted commercial practice.
(2) Parts manufactured to Government specifications shall be marked
as follows:
(i) Electrical Parts - that is, all parts in electrical equipments and
electrical parts when used in equipments which are not electrical in nature
(e.g., electric controls and motors in a hydraulic system) - shall be identified
and marked in accordance with MIL-STD-1285B dated 2 April 1990, or, where
MIL-STD-1285B does not cover such a part, in accordance with MIL-STD-130G dated
11 October 1988. Requirements of MIL-STD-1686b dated 31 December 1992 for
Electrostatic Discharge Control shall be addressed.
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(ii) Electronic Parts - that is, all parts in electronic equipments
and electronic parts when used in equipments which are not electronic in nature
(e.g., electronic fuel controls in some engines) - shall be identified and
marked in accordance with Requirement 67 of MIL-STD-454N dated 30 June 1992.
Requirements of MIL-STD-1686B for Electrostatic Discharge Control shall be
addressed.
(iii) Parts other than electrical or electronic parts (as described
above) shall be identified and marked in accordance with MIL-STD-13OG.
(b) In cases where parts are so small as not to permit identification marking
as provided above, such parts shall be appropriately coded so as to permit ready
identification.
D-2 MARKING AND PACKING LIST(S) (NAVSEA) (MAY 1993)
(a) Marking. Shipments, shipping containers and palletized unit loads shall be
marked in accordance with MIL-STD-129L dated 15 October 1990 with Notice 1 dated
10 January 1992.
(b) Packing List(s). A packing list (DD Form 250 Material Inspection and
Receiving Report may be used) identifying the contents of each shipment,
shipping container or palletized unit load shall be provided by the Contractor
with each shipment in accordance with the above cited MIL-STD. When a contract
line item identified under a single stock number includes an assortment of
related items such as kit or set components, detached parts or accessories,
installation hardware or material, the packing list(s) shall identify the
assorted items.
Where DD Form 1348-1 or DD Form 1348-1A is applicable and an assortment of
related items is included in the shipping container, a packing list identifying
the contents shall be furnished.
(c) Master Packing List. In addition to the requirements in paragraph (b) above,
a master packing list shall be prepared where more than one shipment, shipping
container or palletized unit load comprise the contract line item being shipped.
The master packing list shall be attached to the number one container and so
identified.
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(d) Part Identification. All items within the kit, set, installation hardware or
material shall be suitably segregated and identified within the unit pack(s) or
shipping container by part number and/or national stock number. Refer to the
above cited MIL-STD for markinq of assorted (related-unrelated) items.
D-3 MARKING OF REPORTS (NAVSEA) (SEP 1990)
All reports delivered by the Contractor to the Government under this contract
shall prominently show on the cover of the report:
(1) name and business address of the Contractor
(2) contract number
(3) contract dollar amount
(4) whether the contract was competitively or non-competitively
awarded
(5) sponsor:
------------------------------
(Name of Individual Sponsor)
------------------------------
(Name of Requiring Activity)
-----------------------------
(City and State)
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SECTION E - INSPECTION AND ACCEPTANCE
CLIN 0001 and 0002:
-------------------
E-1 INSPECTION AND ACCEPTANCE OF VESSEL(S)
The ship shall be constructed, inspected and accepted at the following location:
Newport News Shipbuilding
▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
The procedures for inspection and acceptance of the ship shall be as set forth
in this Section E and the "INSPECTION" and DELIVERY OF COMPLETED VESSEL" clauses
of this contract.
E-2 PRELIMINARY ACCEPTANCE (AT) (NAVSEA) (JAN 1983)
Upon satisfactory completion of the applicable trial requirements and upon
delivery as provided in Section F of this contract, each vessel shall be
preliminarily accepted.
E-3 FINAL ACCEPTANCE (AT) (NAVSEA) (JAN 1983)
Each vessel shall be finally accepted upon the expiration of its guaranty
period.
E-4 GUARANTY PERIOD (FT) (NAVSEA) (JAN 1990)
(a) As used in this contract, the term "defects" includes any and all defects,
deficiencies, deteriorations, and failure in the vessel(s). There shall be a
guaranty period for each vessel beginning at the time of preliminary acceptance
and ending either eight (8) months after completion of the fitting out period of
the vessel, or ten (10) months after preliminary acceptance, whichever first
occurs, unless extended as provided in paragraph (b) below.
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(b) The guaranty period for each vessel shall be extended by the time during
which such vessel is not available for unrestricted service by reason of any
defects for which the Contracting Officer shall determine the Contractor to be
responsible. During said period the vessel, after being fully equipped and armed
and in all respects complete and ready for service, may be finally tried by and
at the expense of the Government under conditions prescribed by the Secretary of
the Navy. The Contractor may, with approval of the Contracting Officer, have an
engineer on board such vessel during such period. Such engineer shall have every
reasonable opportunity to inspect the working of such vessel in all its parts
but shall have no power to direct or control its operation.
E-5 INSPECTION FACILITIES (FT) (NAVSEA) (JAN 1990)
The facilities to be provided pursuant to paragraph (d) of the clause entitled
"INSPECTION OF SUPPLIES--FIXED-PRICE (FT) (JUL 1985) - ALTERNATE I (JUL 1985)
(DEVIATION 89-915 - 29 JUN 1989" (FAR 52.246-2) shall be equal to those provided
by the Contractor for his use for generally similar purposes, and shall include
offices and related equipment; drafting rooms; convenient parking facilities;
equipment for reproduction of such items as plans, booklets, test memoranda and
allowance lists; and telephones connected to the Contractor's and local
telephone system. Toll charges for the Supervisor's calls will be paid by the
Government. In lieu of providing reproduction equipment, the Contractor may
provide reproduction services to the Supervisor. Assistance shall include
services necessary in testing or handling machinery, equipment, and materials
for the purpose of inspection or test.
E-6 LIMITATION OF CONTRACTOR'S LIABILITY FOR CORRECTION OF DEFECTS (FT) (NAVSEA)
(JAN 1990)
The liability of the Contractor as to any vessel for the correction of defects,
as determined pursuant to the "INSPECTION" and "GUARANTY PERIOD" requirements of
this contract, discovered during the guaranty period (other than defects
resulting from fraud or such gross mistakes as amount to fraud) shall be limited
to $10,000,000 of actual incurred cost.
CLIN 0003 and 0006 - Inspection and acceptance of data Item(s) 0003 and 0006
shall be as specified on the attached Contract Data Requirements List(s), DD
Form 1423s, Exhibits "A" and "B" attached hereto.
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CLIN 0004 - The Government may accept, conditionally accept, or reject the
Provisioning Technical Documentation (PTD) within sixty days after its delivery,
or as specified on the applicable CDRL(s). A notice of conditional acceptance
shall state any corrective action required by the Contractor. If PTD is
rejected, the Contractor may be required, at the option of the Government, to
correct any or all of the PTD. The Contractor shall at no additional cost to the
Government make any necessary changes, modifications or corrections to the PTD.
The Government shall take action on the corrected PTD within sixty (60) days
after receipt of corrected PTD. Government action under this requirement shall
not affect or limit any other rights it may have under this contract.
CLIN 0007 - Inspection and acceptance of parts ordered hereunder shall be as
established in each PIO. Unless otherwise stated in the PIO, parts shall be
inspected and accepted at source by a representative of the Contract
Administration Office.
CLAUSES INCORPORATED BY REFERENCE
FAR
SOURCE TITLE AND DATE
------ --------------
52.246-2 INSPECTION OF SUPPLIES--FIXED PRICE
and Alt. I (JUL 1985) AND ALTERNATE I (JUL 1985)
(Applicable to Item 0007 only)
52.246-4 INSPECTION OF SERVICES--FIXED PRICE
(FEB 1992)
52.246-16 RESPONSIBILITY FOR SUPPLIES (APR 1984)
CLAUSES INCORPORATED IN FULL TEXT
FAR 52.246-11 HIGHER-LEVEL CONTRACT QUALITY REQUIREMENT (GOVERNMENT
SPECIFICATION) (APR 1984)
(a) Definition. "Contract date," as used in this clause, means the date set
forth for bid opening, or, if this is a negotiated contract or a modification,
the effective date of this contract or modification.
(b) The Contractor shall comply with the specifications titled MIL-Q-9858A, in
effect on the contract date, which is hereby incorporated into this contract.
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SECTION F - DELIVERIES OR PERFORMANCE
Items 0001 and 0002
-------------------
(a) The Contractor shall deliver the vessel, complete with on-board
repair parts, to the Government dockside at the Contractor's plant in accordance
with the requirements of this contract, including the requirements of Special
Contract Requirement H-5 entitled "Delivery of Completed Vessel", and in
accordance with the following schedule:
DESIGNATION OF VESSEL REQUIRED DELIVERY DATE
--------------------- ----------------------
CVN-76 December, 2002
The vessel shall be constructed at the Contractor's plant located
at Newport News, Virginia.
The Contractor shall schedule his work on a basis that will permit delivery
of the outfitted ship approximately eight weeks after the builders' (initial)
sea trials and approximately six weeks after the acceptance trial. In this
regard, the Contractor shall submit to the Supervisor of Shipbuilding for
approval a schedule of completion and turn-over of systems, operating spaces and
storerooms to the Ship's Force. This schedule shall provide for necessary
outfitting prior to builders' (initial) sea trials and for completion of all
outfitting prior to delivery.
CLIN 0003 and 0004 - All data to be furnished under this contract shall be
delivered prepaid, unless otherwise specified, to destination(s) at the time(s)
specified in the Contract Data Requirements List(s), DD Form 1423s, Exhibits "A"
and "B" attached hereto.
CLIN 0005 - Technical Manual Requirements shall be in accordance with Contract
Data Requirements List(s), DD Form 1423s, Exhibits "A" and "B" attached hereto.
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CLIN 0007 - Parts shall be delivered in accordance with the delivery schedule
established in each PIO. Unless otherwise stated in the PIO, parts shall be
delivered free of expense to the Government in accordance with instructions
specified in the clause hereof entitled "F.O.B. ORIGIN" (FAR 52.247-29) at or
near the Contractor's plant for shipment at Government expense (normally on
Government bill(s) of lading).
CLAUSES INCORPORATED BY REFERENCE
FAR
SOURCE TITLE AND DATE
------ --------------
52.212-13 STOP-WORK ORDER (AUG 1989)
52.212-15 GOVERNMENT DELAY OF WORK (APR 1984)
52.247-29 F.O.B. ORIGIN (JUN 1988)
52.247-52 CLEARANCE AND DOCUMENTATION REQUIREMENTS--SHIPMENTS TO DOD AIR OR
WATER TERMINAL TRANSSHIPMENT POINTS (APR 1984)
52.247-55 F.O.B. POINT FOR DELIVERY OF GOVERNMENT-FURNISHED
PROPERTY (APR 1984)
52.247-58 LOADING, BLOCKING AND BRACING OF FREIGHT CAR
SHIPMENTS (APR 1984)
52.247-61 F.O.B. ORIGIN--MINIMUM SIZE OF SHIPMENTS (APR
1984)
52.247-65 F.O.B. ORIGIN, PREPAID FREIGHT--SMALL PACKAGE
SHIPMENTS (JAN 1991)
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CLAUSES INCORPORATED IN FULL TEXT
FAR 52.212-9 VARIATION IN QUANTITY (APR 1984)
(a) A variation in the quantity of any item called for by this contract will not
be accepted unless the variation has been caused by conditions of loading,
shipping, or packing, or allowances in manufacturing processes, and then only to
the extent, if any, specified in paragraph (b) below.
(b) The permissible variation shall be limited to:
0% percent increase
0% percent decrease
This increase or decrease shall apply to all items.
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SECTION G-CONTRACT ADMINISTRATION DATA
(a) Enter below the Contractor's address for receipt of payment if such address
is different from the address shown on the SF 26 or SF 33, as applicable.
Newport News Shipbuilding and Dry Dock Company
--------------------------------------------------------------------------------
P.O. Box 79118
--------------------------------------------------------------------------------
Baltimore, Maryland 21279-0118
--------------------------------------------------------------------------------
(b) Enter below the address (street and number, city, county, state and zip
code) of the Contractor's facility which will administer the contract if such
address is different from the address shown on the SF 26 or SF 33, as
applicable.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
PURCHASING OFFICE REPRESENTATIVE: COMMANDER
▇▇▇▇: ▇▇. ▇▇▇ ▇▇▇▇▇▇▇ 02215
NAVAL SEA SYSTEMS COMMAND
▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇ ▇▇ ▇▇▇▇▇-▇▇▇▇
Telephone No. 703/602-75l9
--------------------------------------------------------------------------------
NAME OF OFFEROR OR CONTRACTOR: Newport News Shipbuilding and
Dry Dock Company
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SECTION H - SPECIAL CONTRACT REQUIREMENTS
NUMBER TITLE PAGE
------ ----- ----
H-1 NAVSEA 5252.202-9101 ADDITIONAL DEFINITIONS (FT) ALT II 77
H-2 NAVSEA 5252.228-9104 ADDITIONAL INSURANCE PROVISIONS (FT) 79
H-3 NAVSEA 5252.245-9127 ADDITIONAL PROVISIONS RELATING TO
GOVERNMENT PROPERTY (FT)
H-4 NAVSEA 5252.216-9100 COMPENSATION ADJUSTMENTS (LABOR
AND MATERIAL) (FI) 83
H-5 NAVSEA 5252.246-9128 DELIVERY OF COMPLETED VESSEL (FT) 94
H-6 NAVSEA 5252.233-9103 DOCUMENTATION OF REQUESTS FOR
EQUITABLE ADJUSTMENT (AT) ALT I 97
H-7 NAVSEA 5252.233-9107 EQUITABLE ADJUSTMENTS: WAIVER AND
RELEASE OF CLAIMS (AT) 10
H-8 DELETED 10
H-9 NAVSEA 5252.232-9108 FINAL SETTLEMENT (FT) 10
H-10 NAVSEA 5252.225-9100 FOREIGN SHIPYARD CONSTRUCTION
PROHIBITION (AT) 1C
H-ll NAVSEA 5252.227-9113 GOVERNMENT-INDUSTRY DATA EXCHANGE
PROGRAM 1C
H-12 NAVSEA 5252.228-9105 INSURANCE-PROPERTY LOSS OR
DAMAGE-LIABILITY TO THIRD PERSONS (FT) 1C
H-13 NAVSEA 5252.245-9124 LIENS AND TITLE (FI) lt
H-14 NAVSEA 5252.227-9112 LOGISTIC SUPPORT REQUIREMENT (AT) 1C
H-15 NAVSEA 5252.243-9105 NOTIFICATION OF CHANGES (FT) ALT I lt
H-16 NAVSEA 5252.243-9113 OTHER CHANGE PROPOSALS (FT) ALT I 12
H-17 NAVSEA 5252.232-9105 PAYMENTS (FI)(DEVIATION) 1
H-18 NAVSEA 5252.215-9l06 PRICE ADJUSTMENT FOR CHANGES
IN FEDERAL LAW (FT) 1;
H-19 NAVSEA 5252.227-9100 PROTECTION OF NAVAL NUCLEAR
PROPULSION INFORMATION 1
H-20 DELETED 1:
H-21 NAVSEA 5252.246-9124 SHIPBUILDING SUPPORT OFFICE
SCHEDULES (AT) 1:
H-22 NAVSEA 5252.244-9102 SUBCONTRACTING OF NUCLEAR ENGINEERING
EFFORT (AT) 1:
H-23 NAVSEA 5252.227-9101 TRANSMISSION ABROAD OF EQUIPMENT OR
TECHNICAL DATA RELATING TO THE NUCLEAR
PROPULSION OF NAVAL SHIPS 1
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SECTION H - SPECIAL CONTRACT REQUIREMENTS (CONTINUED)
NUMBER TITLE PAGE
------ ----- ----
H-24 DELETED 1
H-25 NAVSEA 5252.227-9114 UNLIMITED RIGHTS IN TECHNICAL
DATA-NUCLEAR PROPULSION PLANT SYSTEMS 1
H-26 NAVSEA 5252.209-9102 WEIGHT CONTROL 13
H-27 NAVSEA 5252.245-9115 RENT-FREE USE OF GOVERNMENT PROPERTY 13
H-28 NAVSEA 5252.231-9109 PRECONTRACT COSTS 13
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H-1 NAVSEA 5252.202-9l0l ADDITIONAL DEFINITIONS (FT) -
ALTERNATE II (MAY 1993)
As used throughout this contract, the following terms shall have the meanings
set forth below:
(a) DEPARTMENT - means the Department of the Navy.
(b) COMMANDER, NAVAL SEA SYSTEMS COMMAND - means the Commander of the Naval Sea
Systems Command of the Department of the Navy or his duly appointed successor or
duly authorized representative.
(c) NAVSEA 08 - means the Deputy Commander, Nuclear Propulsion Directorate,
Naval Sea Systems Command of the Department of the Navy.
(d) SUPERVISOR - means the cognizant Supervisor of, Shipbuilding, Conversion and
Repair, Department of the Navy.
(e) PROJECT MANAGER (SHAPM)(PMS) - means the PMS 312 Program Manager, or his
duly appointed successor or duly authorized representative, of the Naval Sea
Systems Command of the Department of the Navy.
(f) LEAD SHIPBUILDER, LEAD YARD OR LEAD SHIPYARD - means Newport News
Shipbuilding and Drydock Company in its capacity as Contractor under Contract
No. N00024-67-C-0325 for the construction of the USS NIMITZ (CVN 68).
(g) FOLLOW SHIPBUILDER, FOLLOW YARD OR FOLLOW SHIPYARD - means a prime
contractor performing a contract for the construction of follow ships of the
NIMITZ Class.
(h) LEAD SHIP OR FIRST SHIP OF THE CLASS - means the USS NIMITZ (CVN 68).
(i) FOLLOW SHIP - means any ship of the NIMITZ Class other than the first ship.
(j) ADJUSTMENT IN CONTRACT PRICE - means adjustment in target cost, target
profit, target price and ceiling price or fixed price, as appropriate under the
circumstances and except as otherwise provided in the contract.
(k) DESIGN AGENT - means Newport News Shipbuilding in its capacity as Design
Agent, not in its capacity as shipbuilding contractor.
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(1) NATIONAL STOCK NUMBERS - Whenever the term Federal Item Identification
Number and its acronym FIIN or the term Federal Stock Number and its acronym
FSN appear in the contract, order or their cited specifications and standards,
the terms and acronyms shall be interpreted as National Item Identification
Number (NIIN) and National Stock Number (NSN) respectively which shall be
defined as follows:
1. National Item Identification Number (NIIN). The number assigned to
each approved Item Identification under the Federal Cataloging
Program. It consists of nine numeric characters, the first two of
which are the National Codification Bureau (NCB) Code. The remaining
positions consist of a seven digit non-significant number.
2. National Stock Number (NSN). The National Stock Number (NSN) for an
item of supply consists of the applicable four position Federal Supply
Class (FSC) plus the applicable nine position National Item
Identification Number (NIIN) assigned to the item of supply.
(m) NAVY REORGANIZATION - Pursuant to the reorganization within the Department
of the Navy, effective 1 July 1974, The Naval Sea Systems Command has become the
successor to the Naval Ship Systems Command and the Naval Ordnance Systems
Command. The Naval Ship Systems Command was the successor to the Bureau of
Ships. The Naval Ordnance Systems Command and the Naval Air Systems Command were
the successors to the Bureau of Naval Weapons, which was the successor to the
Bureau of Ordnance and the Bureau of Aeronautics. Accordingly, as appropriate in
view of the foregoing, reference in the contract and in the documents referenced
therein to the Naval Ship Systems Command, the Bureau of Ships, the Naval
Ordnance Systems Command, the Naval Air Systems Command, the Bureau of Naval
Weapons, the Bureau of Ordnance or the Bureau of Aeronautics shall be deemed to
refer to the Naval Sea Systems Command.
(n) REFERENCES TO ARMED SERVICES PROCUREMENT REGULATION OR DEFENSE ACQUISITION
REGULATION - All references in this document to either the Armed Services
Procurement Regulation (ASPR) or the Defense Acquisition Regulation (DAR) shall
be deemed to be references to the appropriate sections of the Federal
Acquisition Regulation (FAR) and the Defense FAR Supplement (DFARS).
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(o) REFERENCES TO THE FEDERAL ACQUISITION REGULATION (FAR) - All references to
the FAR in this contract shall be deemed also to include the Defense PAR
Supplement (DFARS), unless clearly indicated otherwise.
H-2 NAVSEA 5252.228-9104 ADDITIONAL INSURANCE
PROVISIONS (FT) (JAN 1990)
(a) The provisions contained in the standard form of Marine Builder's Risk
(Navy Form - Syndicate) policy referred to in paragraph (a) of the requirement
of this contract entitled "INSURANCE--PROPERTY LOSS OR DAMAGE--LIABILITY TO
THIRD PERSONS"..." with leave to fire guns and torpedoes, but no claim to attach
thereto for loss of or damage to the vessel or machinery unless the accident
results in a total loss of a vessel," shall not include, or be construed as
including, any operation conducted under the "General Scope of Work" and
"Specifications" paragraphs of Section C of this contract; and further, the
operations referred to in these aforesaid paragraphs shall not be deemed to be
"warlike operation" as used in the Collision Liability and Protection and
Indemnity Liabilities (Government Syndicate Form) policy referred to in
paragraph (b) of the requirement of this contract entitled "INSURANCE--PROPERTY
LOSS OR DAMAGE--LIABILITY TO THIRD PERSONS". Further, the Contractor shall not
carry Collision Liability and Protection and Indemnity Liabilities insurance
(Government Syndicate Form) referred to in the first sentence of paragraph (b)
of the requirement of this contract entitled "INSURANCE--PROPERTY LOSS OR
DAMAGE--LIABILITY TO THIRD PERSONS" during the period of the performance of
the underway trials required by this contract, and the Government will
indemnify the Contractor against liability (including expenses incidental
thereto) to third persons which would have been covered by the aforesaid
insurance if the Contractor had carried such insurance during the period stated
above; provided, however, that the Contractor shall not be relieved of any other
obligations required by the aforesaid paragraph (b) of the "INSURANCE--PROPERTY
LOSS OR DAMAGE--LIABILITY TO THIRD PERSONS" requirement.
(b) Notwithstanding any provisions to the contrary in paragraph (a) of the
requirement entitled "INSURANCE-PROPERTY LOSS OR DAMAGE-LIABILITY TO THIRD
PERSONS", the assumption by the Government of the risk of loss of or damage to
the vessels and the materials and equipment therefor provided for by the
aforesaid paragraph (a) of the requirement entitled "INSURANCE-PROPERTY LOSS OR
DAMAGE-LIABILITY TO THIRD PERSONS", shall continue until the expiration of the
guaranty periods of the
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SCHEDULE
vessels, or until completion of all work under this contract, whichever is
later. The Government does not, however, assume the risk of loss of or damage to
any equipment which results from a defect in a part thereof for which the
Contractor is responsible pursuant to the "PRELIMINARY ACCEPTANCE", "GUARANTY
PERIOD", or "INSPECTION OF SUPPLIES--FIXED-PRICE (FT) (JUL 1985) - ALTERNATE I
(JUL 1985) (DEVIATION 89-915 - 29 JUN 1989)" (FAR 52.246-2) requirements of this
contract. The term "equipment" as used in the preceding sentence means the
largest integrated unit (e.g., component, subassembly, or individual system, as
the case may be) furnished by the same supplier who furnished the part causing
the loss or damage.
(c) Any material furnished by the Government under this contract shall be deemed
to be materials or equipment for the vessels within the meaning of the
"INSURANCE-PROPERTY LOSS OR DAMAGE-LIABILITY TO THIRD PERSONS" requirement
hereof.
(d) It is understood that the operation of firing explosive charges to eject
missiles is an operation conducted under the "General Scope of Work" and
"Specifications" paragraphs of Section C of this contract, and accordingly, this
requirement applies to such operations.
(e) The Government's liability under the last sentence of paragraph (a) of this
requirement, paragraph (b) of the requirement of this contract entitled
"INSURANCE-PROPERTY LOSS OR DAMAGE-LIABILITY TO THIRD PERSONS," and the
Collision Liability and Protection and Indemnity Liabilities Insurance forms set
forth in the pamphlet entitled "Standard Forms of Marine Builders Risk (Navy
Form Syndicate) and War Damage Insurance Policies, Referred to in Vessel
Contracts of the Bureau of Ships" dated 23 November 1942, is subject to the
availability of appropriated funds at the time a contingency occurs. Nothing in
this contract shall be construed as implying that the Congress will, at a later
date, appropriate funds sufficient to meet deficiencies.
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H-3 NAVSEA 5252.245-9127 ADDITIONAL PROVISIONS
RELATING TO GOVERNMENT
PROPERTY (FT) (JAN 1990)
(a) The Contracting Officer may increase the amount of property to be furnished
under this contract and the contract shall be equitably adjusted to reflect such
increase in accordance with procedures of the "CHANGES" clause of the contract.
(b)(l) As to all equipments listed in NAVSEA Form 4205/19 or Schedule A, as
applicable, which will be permanently installed or otherwise will be built into
the vessel(s), the AN nomenclature or other model designations given therein are
to indicate only the basic description of equipments to be furnished and do not
indicate the specific model or manufacturer's equipment that will be furnished.
The Government may furnish, without issuing a change under the "CHANGES" clause
of the contract, other equipments bearing nomenclature and model designations
which further define the specific equipment to be furnished and to further
substitute other equipments with different nomenclature or model designations as
long as they are geometrically congruent dimensionally, and mechanically and
electrically interchangeable with the equipment identified in NAVSEA Form
4205/19 or Schedule A, as applicable.
(2) As to all equipments listed in NAVSEA Form 4205/19 or Schedule A, as
applicable, which are portable in nature and require only means for stowage in
the vessel(s), the AN nomenclature or other model designations given therein are
to indicate only the basic description of the equipments to be furnished. The
Government may furnish, without issuing any change under the "CHANGES" clause of
the contract, other equipments bearing different AN nomenclature or other model
designations as long as the equipments furnished are functionally
interchangeable with the equipments specified in NAVSEA Form 4205/19 or Schedule
A, as applicable, and no changes in ship stowage provisions are required.
(c) Unless otherwise specifically directed by the Supervisor, nonreusable crates
and other nonreusable packaging in which Government Property is delivered to the
Contractor shall become the property of the Contractor upon removal of the
packaged or crated material, in which event such crates and other packaging
shall not be subject to the provisions of the clause of this contract entitled
"GOVERNMENT PROPERTY (FIXED-PRICE CONTRACTS) (FT) (DEC 1989) AND ALTERNATE I
(APR 1984)(▇▇▇▇▇▇▇▇▇) (OCT 1993)" (FAR 52.245-2).
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(d) Any packaging or preparation for delivery or for other disposal of
Government Property by the Contractor at the direction or authorization of the
Contracting Officer pursuant to paragraph (i) of the clause of this contract
entitled "GOVERNMENT PROPERTY (FIXED-PRICE CONTRACTS)" shall be provided for by
change order and an appropriate adjustment shall be made in the contract price
in accordance with the clause of the contract entitled "CHANGES".
(e)(l) In addition to the equipments listed on NAVSEA Form 4205/19 or Schedule
A, as applicable, the Government may provide installation and checkout (I&C)
spares. The Contractor shall provide segregated stowage and inventory management
for Government furnished I&C spares. These I&C spares will be pre-positioned by
the Government at the shipyard for use by Contractor or Government personnel for
the installation and checkout of Government Furnished Equipment (GFE). The
Contractor shall maintain these spares in a suitable warehouse accessible 24
hours per day during GFE installation and checkout, in accordance with the ship
construction test program. I&C spares do not include parts to support
installation and checkout of reactor plant equipment. Requirements governing
such reactor plant repair parts, known as Shipyard Load List (SLL) parts, are
defined in the ship specification.
(2) The Contractor shall provide proposed I&C storage, inventory management
and issue procedures for Government review and approval. These procedures shall
address the Contractor's methods for receipt inspection, identification of
damage, control of sensitive material, special environmental capabilities,
security and availability of timely status information. The procedures must take
into consideration any special requirements associated with electronic
components such as electrostatic discharge precautions. The procedures should
reference applicable military or commercial standards used in management of I&C
spares. A list of planned I&C spares, estimated volume, and special requirements
will be provided by the Government to allow for warehouse planning.
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H-4 NAVSEA 5252.216-9100 COMPENSATION ADJUSTMENTS
(LABOR AND MATERIAL) (FI)
(JAN 1990)
(a) General
-------
(1) The contract price(s) agreed to by the parties reflect the price levels
of the base periods identified in paragraph (d) below. It is anticipated that
the Contractor's actual costs may vary from the price levels of the base periods
and the parties desire to provide for adjustment to compensation to reflect such
variations. However, regardless of the actual variations in the costs
experienced during the period of performance, adjustments in compensation
because of such variations shall be computed and effected in accordance with the
procedures specified herein.
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(2) Except as hereinafter provided in paragraph (e)(3), adjustments in
compensation shall be made in respect to each individual vessel for each monthly
period commencing September 1994 and ending with the monthly period in which the
actual delivery of the last vessel to be delivered under the contract occurs or
the monthly period in which the "Post Delivery Date" (see paragraph (a)(3)
below) of the last vessel occurs, whichever is later. For the purpose of this
requirement, a "monthly period" or "monthly period involved" shall mean the
Contractor's normal accounting month.
(3) The "Post Delivery Date" for the purpose of this requirement is defined
as a date eiqht (8) months after the contract delivery date of the applicable
vessel set forth in Section F, "DELIVERIES OR PERFORMANCE".
(b) Pricing of Changes
(1) The costs subject to adjustment under this requirement include the
costs of performance of changes or other work for which the contract price(s)
is(are) subject to equitable adjustment pursuant to the "CHANGES" clause or
pursuant to other requirements of the contract. Accordingly, equitable
adjustments to the contract price(s) shall be determined on the basis of actual
and/or projected direct material costs, direct labor costs and indirect costs
de-escalated to price levels of the base periods identified in paragraph (d)
below. The method of de-escalation shall be the same as that set forth in
paragraph (e) for determining compensation adjustments and base costs.
(2) In the event and to the extent that work authorized under the "CHANGES"
clause results or will result in costs being incurred with respect to a vessel
after the monthly period commencing subsequent to the Post Delivery Date of such
vessel (or, in the case of the last vessel to be delivered, the monthly period
commencing subsequent to the actual delivery date if such date occurs after the
Post Delivery Date), the equitable adjustment for such change shall take account
of such costs at their estimated actual value(s) rather than at the base period
value(s) provided for in paragraph (b)(l) above. The costs included in the
aforementioned equitable adjustment(s) shall be adjusted to preclude payment of
any costs reimbursed under this requirement.
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(c) Cost Subject to Compensation Adjustment
---------------------------------------
(1) For the purpose of this requirement, the total allowable costs in the
following categories shall be subject to monthly compensation adjustment:
a Selected employee benefits
1 FICA (indirect costs)
2 State and Federal Workmen's Compensation
(indirect costs)
3 Unemployment Compensation (indirect costs)
4 Disability (indirect costs)
5 Federally Mandated National Health Program
(indirect costs)
6 Federally Mandated changes to hours of work per
week or per day and changes to the payment of
overtime (indirect and direct costs)
b Selected energy costs (indirect costs)
1 Electricity
2 Fuel oils
(i) Bunker C (No. 6)
(ii) Diesel 260 (No. 2 by gallon and drum)
3 Coke
4 Coal
c Ninety-five percent of indirect costs other than
indirect costs in (c) (1) a and b above
d One hundred percent of direct labor costs
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e One hundred percent of direct material costs
(2) Within 30 days after the end of each monthly period with respect to
each individual vessel, the Contractor shall submit to the Government: (i) a
certified statement of the costs incurred for that vessel during that monthly
period (monthly costs) and (ii) a certified statement of the total cumulative
costs incurred for that vessel from the effective date of the contract to the
end of that monthly period (total costs). The statement of monthly costs shall
separately identify the direct material costs, the direct labor costs and the
indirect costs. With respect to indirect costs, the statement of monthly costs
shall state separately from all other indirect costs (i) the monthly incurred
selected employee benefit costs of the type identified in paragraph (c)(l)a
above, (ii) the monthly incurred selected energy costs of the type identified in
paragraph (c)(l)b above, and (iii) the ninety-five percent of indirect costs
subject to compensation adjustment.
a The monthly selected employee benefit costs for the vessel involved
shall be the product obtained by multiplying the yard-wide total selected
employee benefit costs of the type identified in paragraph (c)(l)a above by the
amount of total overhead dollars, allocated to each vessel for the monthly
period involved and the product shall be divided by yard-wide total overhead
dollars, for the monthly period involved.
b The monthly incurred selected energy costs for the vessel involved
shall be the product obtained by multiplying the yard-wide total selected energy
costs of the type identified in paragraph (c)(l)b above by the amount of general
overhead dollars, allocated to each vessel for the monthly period involved and
the product shall be divided by the total yard-wide general overhead dollars for
the monthly period involved.
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(3) For the purpose of this requirement:
a "Direct material costs", "direct labor costs", and "indirect costs"
shall have the meaning set forth in Part 31 of the Federal Acquisition
Regulation (FAR) and Part 231 of the Department of Defense FAR Supplement
(DFARS) in effect on the effective date of this contract.
b "Monthly costs" and "total costs" shall include only "incurred
costs" and "allowable costs" as those terms are defined in paragraph (f) of the
requirement entitled "PAYMENTS" except that "incurred costs" for material shall
include the full amounts of all ▇▇▇▇▇▇▇▇ received from vendors during the
monthly period involved irrespective of whether the Contractor has paid the full
amount of such ▇▇▇▇▇▇▇▇. Further, on this contract, the imputed cost of
facilities capital shall not be treated as an "incurred cost" and shall be a
separate reimbursement and shall not be included in any target price or ceiling
price and is outside the incentive price revision formula.
(4) The costs identified in this paragraph (c) shall be subject to audit
and inspection by the Contracting Officer in accordance with paragraph (h) of
the requirement entitled "PAYMENTS."
(d) Cost Indices
------------
(1) Selected employee benefits compensation adjustments shall be based on
changes in the monthly average hourly cost of these benefits. For the month
involved, the average hourly cost of the benefits listed in (c)(l)a above shall
be determined by dividing the total costs recorded (including adjustments made
at the end of the accounting year and included in the calculations for the month
of December ) in the Contractor's accounts for the items listed in
(c)(l)a above by the total of direct and indirect labor hours charged to all
product lines and to plant under construction accounts and the result shall be
carried to the same number of decimal places as the index value for the base
period as shown in paragraph (d)(8) below. Monthly average hourly cost is the
index for computing selected employee benefits compensation adjustments under
paragraph (e) below.
(2) Selected energy costs compensation adjustments shall be based on the
following:
a Electricity and fuel oil compensation adjustments shall be based on
changes in the average monthly unit values of those costs. Monthly unit values
for electricity costs and fuel oil costs listed in (c)(l)b above shall be
computed by dividing
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the total usage amount of each such energy cost element during that monthly
period for the Contractor's entire yard into the total purchase cost billed to
the Contractor for the total usage amount of each such energy cost element and
the result shall be carried to the same number of decimal places as the index
values for the base periods as shown in paragraph (d)(8) below. Average monthly
unit values are the indices for computing electricity and fuel oil compensation
adjustments under paragraph (e) below.
b Coke and coal compensation adjustments under paragraph (e) below
shall be based on changes in the following wholesale price indices published
monthly by the Bureau of Labor Statistics (BLS): Coke shall be based on Code
052, Coke (Foundry By-product), and coal on Code 051, Coal.
(3) Compensation adjustments under paragraph (e) below for 95 percent of
the indirect costs other than indirect costs in (c)(l)a, and b above; and direct
labor costs shall be based on changes in the "Indices of Change in Straight-Time
Average Hourly Earnings for Selected Shipyards for Steel Vessel Construction and
All Regions" (MAY 1987 = 100) (herein sometimes called the "Labor Index")
furnished to the Naval Sea Systems Command by the BLS.
(4) Adjustments in compensation under paragraph (e) below for direct
material costs shall be based on the changes in the "Index for Steel Vessel
Contracts" (1982 = 100) (herein sometimes called the "Material Index") furnished
to the Naval Sea Systems Command by the BLS.
(5) In the event that any of the specified indices for the monthly period
involved are unavailable to the Contractor at the close of that monthly period,
compensation adjustments pursuant to this requirement shall be based upon the
average of monthly changes in the applicable indices for the previous four (4)
months for which indices are available. The average of changes so calculated
shall be added to the applicable index for the immediately preceding monthly
period and the sum shall constitute the index for the monthly period involved.
When the applicable index for the monthly period involved has been made
available, the compensation adjustment for that monthly period shall be
recomputed on the basis of such index, and any additional payment to or
repayment by the Contractor required by such recomputation for that monthly
period shall be reflected in any invoice(s) thereafter submitted for payment
under any requirement of this contract until such amount has been paid, offset
or recouped in full.
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(6) In the event that any of the specified indices for any base period or
any monthly period differs from the index previously available for that period,
the compensation adjustment for the applicable monthly period(s) shall be
recomputed on the basis of such revised index and any additional payment to or
repayment by the Contractor required by such recomputation for that monthly
period(s) shall be reflected in any invoice(s) submitted thereafter for payment
under any requirement of this contract until such amount has been paid, offset
or recouped in full.
(7) The Contractor shall be responsible for the calculations involving the
indices provided for in this paragraph, and said calculations shall be subject
to verification by the Government.
(8) For the purpose of computing compensation adjustments under this
requirement, the following are the applicable base period index values (subject
to adjustment as specified in paragraph (d)(6) above):
Description Base Period Index Value
----------- ----------- -----------
Selected employee benefits costs 1993 */hour
Selected energy costs:
Electricity December 1993 0.04515/KWH
Bunker C (No. 6) December 1993 0.34463/gal
Diesel 260 (No. 2) December 1993 0.67406/gal
Diesel 260 (No. 2, drum) December 1993 37.0733/55 gal
Coke December 1993
Coal December 1993
95% of indirect costs other December 1993 118.5
than indirect costs in (c)(1)
a and b above; and direct
labor cost
Direct material cost December 1993 126.0
* Index value for selected employee benefit costs is determined by dividing the
base year total selected employee benefit costs by the base year total labor
hours (direct and indirect) charged to all product lines and to plant under
construction accounts.
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(e) Computation of Compensation Adjustment and Base Cost
(1) For the purpose of computing compensation adjustments under this
requirement, the following computations shall be used for all the categories of
cost specified in paragraph (c)(1).
a For each monthly period commencing prior to the Post Delivery Date
of a vessel, the amount of the applicable category of cost for such vessel
certified on the statement of monthly costs for that monthly period shall be
multiplied by the difference between the value of the applicable index for that
monthly period and the applicable base period index listed in (d)(8) above and
the product thereof shall be divided by the value of the applicable index for
that monthly period and the result, the compensation adjustment for the
applicable category of cost, shall be expressed to the nearest dollar. The
calculation is as follows:
Current Base Current
Month - Period x Month
Index Index Index
------------------------------------------ = Compensation
Current Month Index Adjustment
b For each monthly period commencing (i) subsequent to the Post
Delivery Date of a vessel and (ii) prior to the post or actual delivery date of
the last vessel to be delivered under the contract (whichever date is later),
the value of the applicable index for the monthly period of the Post Delivery
Date of the vessel involved or the value of the applicable index for the monthly
period involved, whichever value is the lesser, shall be the value used in the
computation in (e)(1)a above as the Current Month Index to calculate the
compensation adjustment.
c In the event and to the extent that the contract delivery date for
a vessel is subsequently extended for reasons of Government responsibility or
excusable delay ("excusable delay" means delay for which the Contractor is not
liable as determined by paragraph (c) of the clause of this contract entitled
"DEFAULT (FIXED-PRICE SUPPLY AND SERVICE) (FT) (DEVIATION 89-9l5 - 29 JUN 1989)"
(FAR 52.249-8)), the Post Delivery Date for such vessel shall be deemed to be
extended on a day-for-day basis and if, as a result, the Post Delivery Date is
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extended beyond the monthly period involved, the compensation adjustment for the
monthly period(s) involved shall be recomputed on the basis of the value of the
applicable index for the monthly period(s) involved.
d For any monthly period commencing subsequent to the post or actual
delivery date of the last vessel to be delivered under the contract, whichever
date is the later, there shall be no compensation adjustment.
(2) For the purpose of computing Base Cost, the following shall apply:
a For each monthly period commencing prior to the post or actual
delivery date of the last vessel to be delivered under the contract, whichever
date is later, the compensation adjustments computed under (e)(1) above for all
categories of cost for each vessel shall be totaled and subtracted from Total
Monthly Cost for the same vessel and the resulting difference shall constitute
the Base Cost for such vessel for that monthly period.
b For each monthly period commencing subsequent to the post or
actual delivery date of the last vessel to be delivered under the contract,
whichever date is the later, the Total Monthly Costs for a vessel shall
constitute the Base Cost for such vessel for that monthly period.
(3) No adjustment in compensation under this requirement shall be made for
any monthly period for any vessel in the event that the cumulative sum of the
Base Costs incurred for such vessel(s) for all preceding monthly periods exceeds
the Ceiling Price(s) then set forth in this contract; provided, further, that in
the event that the Ceiling Price(s) thereafter is(are) increased, by
modification to this contract, adjustment in compensation under this requirement
shall be made for each monthly period that the cumulative sum of the Base Costs
incurred for such vessel(s) for all preceding monthly periods does not exceed
such increased Ceiling Price(s).
(4) No adjustment in compensation under this requirement shall be made
for any monthly period for any vessel in the event that the specified indices
for the monthly period involved are unavailable solely as a result of the
failure by the Contractor to submit timely, accurate, and complete information
to the BLS
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necessary for their calculation of the indices. Any amount withheld under the
requirements of this paragraph shall be released following the Contractor's
submission of such information.
(5) The amount of the adjustment in compensation for each individual
vessel determined as above (plus or minus) shall be set forth separately in a
Supplemental Agreement to this contract, which also shall set forth the
computation upon which each adjustment in compensation is based.
(6) In the event that any amount shown in any Supplemental Agreement
pursuant to subparagraph (e)(5) in respect to a vessel is a minus figure, such
amount shall be deducted from any invoice(s) presented for payment under any
requirement of this contract until such amount has been offset or recouped in
full.
(f) Payment of Compensation Adjustment. Payments of amounts of compensation
adjustment under this requirement shall be made for each vessel on the basis of
monthly periods. Except as provided in paragraph (f)(3) below, compensation
adjustment payments shall be made provisionally on a biweekly basis as set forth
in (f)(2) below and then adjusted on a monthly basis as set forth in (f)(1)
below. For the purpose of this paragraph (f): a weekly period is the
Contractor's normal accounting week, and a biweekly period is two consecutive
weekly periods.
(1) After execution of the Supplemental Agreement pursuant to paragraph
(e)(5) of this requirement in respect of a monthly period, and upon submission
of proper invoices, the Contractor shall be paid or there shall be deducted for
each vessel the amount set forth in such Supplemental Agreement, less the sum of
the amounts of the provisional compensation adjustments paid or payable on
account of such vessel pursuant to (f)(2) below for biweekly periods, or any
weeks of biweekly periods, falling in the monthly period to which the
Supplemental Agreement applies. Each Supplemental Agreement shall set forth a
biweekly provisional compensation adjustment amount for each vessel for the
purpose of making provisional compensation adjustment payments pursuant to
paragraph (f)(2) below for biweekly periods ending after execution of such
Supplemental Agreement until the next Supplemental Agreement is executed. The
biweekly provisional compensation adjustment amount for each vessel shall be
determined by dividing the amount of the compensation adjustment for the monthly
period involved set forth in the Supplemental Agreement for each vessel by the
number of weekly
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periods in the monthly period to which the Supplemental Agreement applies. The
quotient shall then be multiplied by two and the product shall be the biweekly
provisional compensation adjustment amount.
(2) At the end of every biweekly period, upon submission of proper
invoices, the Contractor shall be paid on account of each vessel the biweekly
provisional compensation adjustment set forth in the most recently executed
Supplemental Agreement.
(3) Any payment under (f)(1) or (f)(2) above shall be deferred to the
extent that the amount of such payment, when added to the total of all payments
previously paid or payable with respect to such vessel under this requirement
and the "PAYMENTS" requirement (other than payments made pursuant to paragraph
(g) of the "PAYMENTS" requirement), would exceed the total cost limitations
which are then applicable to that vessel under the terms of paragraphs (a)(1)
through (a)(4) of the "PAYMENTS" requirement. Deferred payments of compensation
adjustments shall be paid upon submission of subsequent invoices whenever such
payment, when added to the total of all payments previously made with respect to
such vessel under this requirement and the "PAYMENTS" requirement (other than
payments made pursuant to paragraph (g) of the "PAYMENTS" requirement) would not
exceed the total cost limitations which are then applicable to that vessel under
the terms of paragraphs (a)(1) through (a)(4) of the "PAYMENTS" requirement.
After the close of the monthly period during which the last vessel is actually
delivered, any remaining deferred payments for compensation adjustment shall,
upon submission of proper invoices by the Contractor and upon verification
thereof by the Contracting Officer, be promptly paid.
(4) The Government agrees that any request for approval to make progress
payments more frequently than once every two weeks will include a request for
similar approval of more frequent compensation adjustment payments. Upon
approval by cognizant Government authority, this requirement will be modified
accordingly without additional consideration by the Contractor to the Government
for such modifications.
(g) Separate Reimbursement. (1) No adjustment shall be made in the Target
Cost(s), Target Profit(s), Target Price(s) or Ceiling Price(s) on account of
upwards or downwards adjustments in compensation made in accordance with
paragraph (e) of this requirement, and hence said adjustments will be paid
separately
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and are outside the incentive price revision formula provided for in the clause
hereof entitled "INCENTIVE PRICE REVISION--FIRM TARGET (FI) (APR 1984)
(DEVIATION - 16 NOV 1992) (NAVSEA 5252.216-9127)" (FAR 52.216-16).
(2) The amount currently obligated for payment of compensation adjustments
is set forth in the financial accounting data sheet(s). This amount may be
unilaterally adjusted upward or downward by the Government at any time during
the pendency of the contract. Nothing in the preceding two sentences shall be
construed as relieving the Government from any obligations to reimburse the
Contractor for compensation adjustments as set forth in this requirement.
(h) Disputes. Any dispute arising under this requirement shall be determined in
accordance with and subject to the provisions of the clause of this contract
entitled "DISPUTES" (FAR 52.233-1).
H-5 NAVSEA 5252.246-9128 DELIVERY OF COMPLETED VESSEL (FT) (JAN 1983)
The term "vessel" as used in this requirement refers to each of the vessels to
be constructed and delivered under this contract.
(a) The vessel shall not be presented for acceptance trials (as used in this
requirement acceptance trials means acceptance trials or combined acceptance
trials) until it is determined by the Supervisor that the Contractor has
satisfactorily carried out those parts of the builder's trials for which the
Contractor is responsible, including builder's dock and sea trials, and that the
Contractor has:
(i) Corrected all Contractor responsible deficiencies discovered before
completion of all builder's sea trials, unless otherwise agreed to in writing by
the Contracting Officer; and
(ii) Corrected all Contractor responsible deficiencies discovered after
completion of the builder's sea trials which are determined by the Contracting
Officer to be necessary to avoid an adverse effect on the operational capability
of the vessel.
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(b) The Contractor shall be responsible for scheduling an interval of a minimum
of six (6) weeks between the satisfactory completion of acceptance trials and
delivery of the vessel. During this period, the Contractor shall satisfactorily
correct all Contractor responsible deficiencies, whether discovered before,
during, or after completion of acceptance trials, which are determined by the
Contracting Officer to be necessary to avoid an adverse effect on the
operational capability of the vessel.
(c) Prior to delivery of the vessel, to the extent necessary for tests, crew
training, or operations which the Government is to perform and which do not
require the Government to have control of the entire vessel, the Contractor
shall make parts of the vessel available to the Government; to the extent
necessary for tests, crew training, trials or operations which the Government is
to perform and which require the Government to have control of the entire
vessel, such as alongside training, fast cruise and underway trials, the
Contractor shall make the entire vessel available to the Government at dockside,
at the Contractor's plant, for such periods of time as are necessary for such
trials and operations. During all periods of time when the entire vessel is made
available to the Government, the Contractor shall, as requested by the
Government and required by the specifications, provide technical assistance and
provide assistance necessary to correct defects which develop or are discovered
during trials or operations of the vessel. Following the completion of each such
trial or operation, the Government shall return the vessel to the Contractor at
dockside, at the Contractor's plant, for the correction of defects, if any, and
completion of construction in accordance with the terms of this contract.
(d) Upon satisfactory completion (i) of acceptance trials and (ii) of the
correction of deficiencies as provided in paragraph (b) above, the Contractor
shall deliver the vessel to the Government for preliminary acceptance.
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(e) Following preliminary acceptance, the Government may, during the guaranty
period, make the vessel available to the Contractor, at the Contractor's plant,
(i) for correction of defects noted at the time of preliminary acceptance, or
which are discovered during the guaranty period, and (ii) for the performance of
any additional work required by change orders issued pursuant to the "CHANGES"
clause of this contract prior to preliminary acceptance and not theretofore
performed. If the Government elects to make the vessel(s) available to the
Contractor, at the Contractor's plant, for the accomplishment of the above
described post delivery work, the Contractor agrees to accept the vessel and
perform the work. The Contractor also agrees to consider the accomplishment of
additional work during the post-shakedown availability under a standard
Government contract. If the post-shakedown availability period shall begin
during but extend beyond the expiration of the guaranty period, the Government
may during the extended period leave the vessel at the Contractor's plant or
return the vessel thereto for the correction of defects not previously corrected
and for the performance of any additional work required by change orders issued
pursuant to the "CHANGES" clause of this contract prior to preliminary
acceptance and not theretofore performed.
(f) The Contractor shall exercise reasonable care to protect the vessel at all
times until the delivery of the vessel, and thereafter during such times as the
vessel is at the Contractor's plant during the guaranty period or during the
post-shakedown availability period if the latter shall extend beyond the
expiration of the guaranty period, except for periods of time when the entire
vessel is made available to the Government. During such periods, while the
vessel is at the Contractor's plant, the Contractor shall provide assistance to
protect and service the vessel, and shall effect any correction of defects or
performance of uncompleted work, to the extent permitted or required by the
Government.
(g) In accordance with the inspection requirements of the contract, all actions
of the Government pursuant to this requirement shall be performed in such a
manner as to not unduly delay the work.
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H-6 NAVSEA 5252.233-9103 DOCUMENTATION OF REQUESTS FOR
EQUITABLE ADJUSTMENT (AT) -
ALTERNATE I (MAY 1993)
(a) For the purposes of this requirement, the term "change" includes not only a
change made pursuant to a written order designated as a "change order" but also
(i) an engineering change proposed by the Government or the Contractor pursuant
to the "Other Change Proposals" or other requirements of this contract and (ii)
any act or omission to act on the part of the Government in respect of which a
request is made for equitable adjustment under the "CHANGES" clause or any other
article or requirement of this contract.
(b) Whenever the Contractor requests or proposes an equitable adjustment of
$500,000 or more per vessel in respect of a change made pursuant to a written
order designated as a "change order" or in respect of a proposed engineering
change and whenever the Contractor requests an equitable adjustment in any
amount in respect of any other act or omission to act on the part of the
Government, the proposal supporting such request shall include the following
information for each individual item or element of the request:
(1) A description (i) of the work required by the contract before the
change, which has been deleted by the change, and (ii) of the work deleted by
the change which already has been completed. The description is to include a
list of identifiable components, equipment, and other identifiable property
involved. Also, the status of manufacture, procurement, or installation of such
property is to be indicated. Separate description is to be furnished for design
and production work. Items of identifiable raw material, purchased parts,
components and other identifiable hardware, which are made excess by the change
and which are not to be retained by the Contractor, are to be listed for later
disposition;
(2) Description of work necessary to undo work already completed which has
been deleted by the change;
(3) Description of work which is substituted or added by the change. A list
of identifiable components and equipment (not bulk materials or items) involved,
should be included. Separate descriptions are to be furnished for design work
and production work;
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(4) Description of interference and inefficiencies in performing
the change;
(5) Description of disruption attributable solely to the change; which
description shall include the following information:
(i) Description of each identifiable element of disruption and
how work has been, or may be, disrupted;
(ii) The calendar period of time during which disruption
occurred, or may occur;
(iii) Area(s) of the Contractor's operations where disruption
occurred, or may occur;
(iv) Trade(s) or functions disrupted, with a breakdown of
manhours and material for each trade or function;
(v) Scheduling of trades before, during, and after the period of
disruption insofar as such scheduling may relate to or be affected by the
estimated disruption;
(vi) Description of any measures taken to lessen the disruptive
effect of the change.
(6) Delay in delivery attributable solely to the change;
(7) Other work or increased costs attributable to the change;
(8) Supplementing the foregoing, a narrative statement of the nature of the
alleged Government act or omission, when the alleged Government act or omission
occurred, and the "causal" relationship between the alleged Government act or
omission and the claimed consequences therefor, cross-referenced to the detailed
information provided as required above.
(c) Each proposal submitted in accordance with this requirement shall include a
copy of the Contractor's ship's labor budget at the cost class level in effect
as of the date the event began, the cost incurred at the cost level as of the
same date, and the proposed effect of the change at the cost class level.
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(d) It is recognized that an individual request for equitable adjustment may not
include all of the factors listed in subparagraphs (b)(1) through (b)(8) above,
or that the Contractor may not reasonably be able to furnish complete
information on all of the factors listed in subparagraphs (b)(1) through (b)(8)
above. Accordingly, the Contractor is only required to set forth in its request
for equitable adjustment information with respect to those factors which are
relevant to the individual request for equitable adjustment, or in the level of
detail which is reasonably available to the Contractor.
(e) In addition to any information required under paragraph (b) above, each
proposal submitted in support of a claim for equitable adjustment, under any
requirement of this contract, in an amount which requires certified cost or
pricing data, if requested by the Contracting Officer, shall contain a duly
executed Standard Form (SF) 1411 with respect to each individual claim item. The
information furnished shall be in sufficient detail to permit the Contracting
Officer to cross-reference the claimed increased costs, or delay in delivery, or
both, as appropriate, as set forth in the SF 1411, with the information
submitted pursuant to subparagraphs (b)(l) through (b)(8) hereof.
(f) The certification requirements as set forth in the clause of this contract
entitled "CERTIFICATION OF CLAIMS AND REQUESTS FOR ADJUSTMENT OR RELIEF" (DFARS
252.233-7000) shall be complied with.
(g) Pursuant to 10 U.S.C. 2405, no price adjustment to this contract will be
made for any amount set forth in a claim, request for equitable adjustment, or
demand for payment under this contract (or incurred due to the preparation,
submission, or adjudication of any such claim, request, or demand) arising out
of events occurring more than six (6) years before the submission of the claim,
request, or demand. A claim, request, or demand shall be considered to have been
submitted only when the Contractor has provided the certification required by
section 6(c)(1) of the Contract Disputes Act of 1978 (41 U.S.C. 605(c)(1)) and
the supporting data for the claim, request, or demand.
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H-7 NAVSEA 5252.233-9107 EQUITABLE ADJUSTMENTS: WAIVER AND
RELEASE OF CLAIMS (AT) (JAN l983)
(a) Whenever the Contractor, after receipt of a change made pursuant to the
clause of this contract entitled "CHANGES" or after affirmation of a
constructive change under the "NOTIFICATION OF CHANGES" requirement, submits any
claim for equitable adjustment under the foregoing, such claim shall include all
types of adjustments in the total amounts to which the foregoing entitle the
Contractor, including but not limited to adjustments arising out of delays or
disruptions or both caused by such change.
(b) Further, the Contractor agrees (except as the parties may otherwise agree)
that, if required by the Contracting Officer, it will execute a release, in form
and substance satisfactory to the Contracting Officer, as part of the
supplemental agreement setting forth the aforesaid equitable adjustment, and
that such release shall discharge the Government, its officers, agents and
employees, from any further claims including but not limited to further claims
arising out of delays or disruptions or both, caused by the aforesaid change.
H-8 DELETED
H-9 NAVSEA 5252.232-9108 FINAL SETTLEMENT (FT) (JAN 1983)
Upon final acceptance of the vessel(s), or in the event of the termination of
this contract on such terms that none of the vessel(s) is to be completed, then
upon such termination, the Contractor shall be entitled to receive the balance
owing to it under this contract, such payment to be made promptly after the
amount of such balance shall have been determined. The Contractor and each
assignee under an assignment in effect at the time of final settlement shall
execute and deliver at the time of and as a condition precedent to final
payment, a release in form and substance satisfactory to and containing such
exemptions as may be found appropriate by the Contracting Officer, discharging
the Government, its officers, agents and employees of and from liabilities,
obligations and claims arising under this contract. The Contracting Officer may
authorize partial payments on account of any such balance to be made in advance
of final settlement. If this contract shall have been terminated in whole or in
part, any such release shall also contain a release of all claims against the
Government arising out of or by virtue of such termination.
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H-10 NAVSEA 5252.225-9100 FOREIGN SHIPYARD CONSTRUCTION
PROHIBITION (AT) (JAN 1983)
Neither the vessel nor the hull, midbody, or other major fixed structural
component of the vessel shall be constructed in a foreign shipyard.
H-11 NSVSEA 5252.227-9113 GOVERNMENT-INDUSTRY DATA EXCHANGE
PROGRAM (MAY 1993)
(a) The Contractor shall participate in the appropriate interchange of the
Government-Industry Data Exchange Program (GIDEP) in accordance with MIL-STD-
1556B dated 24 February 1986. Data entered is retained by the program and
provided to qualified participants. Compliance with this requirement shall not
relieve the Contractor from complying with any other requirement of the
contract.
(b) The Contractor agrees to insert paragraph (a) of this requirement in any
subcontract hereunder exceeding $500,000.00. When so inserted, the word
"Contractor" shall be changed to "Subcontractor".
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H-12 NAVSEA 5252.228-9100 INSURANCE-PROPERTY LOSS OR DAMAGE-
LIABILITY TO THIRD PERSONS (FT) (JAN 1990)
(a) The Contractor shall not, unless otherwise directed or approved in writing
by the Department, carry or incur the expense of any insurance against any form
of loss of or damage to the vessels or to the materials or equipment therefor to
which the Government has acquired title or which have been furnished by the
Government for installation by the Contractor. The Government assumes the risks
of loss of and damage to the vessels and such materials and equipment which
would have been assumed by the underwriters if the Contractor had procured and
maintained throughout the term of this contract, on behalf of itself and the
Government, insurance with respect to the vessels and such materials and
equipment for full value against pre-keel and post-keel laying risks (i) under
the forms of Marine Builders Risk (Navy Form-Syndicate) policy, including the
rider attached to the "Free of Capture and Seizure" clause thereof, and War
Damage policy, both as set forth in the pamphlet entitled "Standard Forms of
Marine Builders Risk (Navy Form-Syndicate) and War Damage Insurance Policies
referred to in Vessel Contracts to the Bureau of Ships," dated 23 November 1942,
or (ii) under any other policy forms which the Assistant Secretary of the Navy
(R,D&A), Insurance Office shall determine were customarily carried or would have
been customarily carried by the Contractor in the absence of the foregoing
requirement that the Contractor not carry or incur the expense of insurance,
provided, that the Government does not assume any risk with respect to loss or
damage compensated for by insurance or otherwise or resulting from risks with
respect to which the Contractor has failed to procure or maintain insurance, if
available, as required or approved by the Department; provided, further, that
under the above identified policies or under this requirement the Government
does not assume any risk with respect to, and will not pay for any costs of the
Contractor for the inspection, repair, replacement, or renewal of any defects
themselves in the vessel(s) or such materials and equipment due to (A) defective
workmanship, or defective materials or equipment performed by or furnished by
the Contractor or its subcontractors or, (B) workmanship, or materials or
equipment performed by or furnished by the Contractor or its subcontractors
which do(es) not conform to the requirements of the contract, whether or not any
such defect is latent or whether or not any such non-conformance is the result
of negligence; provided, further, that under the above identified policies or
under this requirement the Government does
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not assume the risk of and will not pay for the costs of any loss, damage,
liability or expense caused by, resulting from, or incurred as a consequence of
delay or disruption of any type whatsoever. No requirement of this contract
shall operate to subject the Contractor to a liability for which the Government
has assumed the risk hereunder. Notwithstanding the foregoing, the Contractor
shall bear the first $10,000 of loss or damage from each occurrence or incident
the risk of which the Government otherwise would have assumed under the
requirements of this paragraph.
(b) Unless otherwise directed by the Department, the Contractor shall procure
and thereafter maintain with respect to each of the vessels Collision Liability
and Protection and Indemnity Liabilities Insurance (Government-Syndicate Form),
as set forth in the aforesaid 23 November 1942 pamphlet, if available, in an
amount equal to (i) eighty percent (80%) of the sum of the target price of the
vessel and an amount estimated by the Department to represent the value of
materials and equipment furnished by the Government for installation by the
Contractor, or (ii) Two Million Dollars ($2,000,000), whichever shall be less.
The Government will indemnify the Contractor against liabilities (including
expenses incidental thereto) to third persons which, but for the limitation on
amount specified in this paragraph, would have been covered by such Collision
Liability and Protection and Indemnity Liabilities Insurance, and which are not
compensated for by insurance or otherwise, provided such liabilities are
represented by final judgments or by settlements approved in writing by the
Department. The Contractor shall not, however, be so indemnified against
liabilities with respect to which the Contractor has failed to procure or
maintain insurance, if available, as required or approved by the Department. The
Contractor shall promptly notify the Department of each suit or action filed and
each claim made against which the Contractor may be entitled to indemnification
under this paragraph. The Contractor shall furnish the Department with copies of
all papers received with respect to each suit, action or claim and, if requested
by the Department, shall authorize representatives of the Government to settle,
or direct or take charge of the defense of, such suit, action or claim. In the
absence of such request, the Contractor shall diligently proceed with such
defense. The Government's liability under this paragraph(b) and the Collision
Liability and Protection and Indemnity Liabilities Insurance forms set forth in
the pamphlet entitled "Standard Forms of Marine Builders Risk (Navy Form
Syndicate) and War Damage Insurance Policies, referred to in Vessel Contracts of
the Bureau
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of Ships, dated 23 November 1942, is subject to the availability of appropriated
funds at the time a contingency occurs. Nothing in this contract shall be
construed as implying that the Congress will, at a later date, appropriate funds
sufficient to meet deficiencies.
(c) The cost of the insurance required by paragraph (b) of this requirement is
included in the target price and the cost of all other insurance which may be
required or approved pursuant to this clause will be considered allowable costs
under this contract. If the Department should require or approve the
cancellation of any such insurance, the Contractor will promptly pay to the
Government the amount of all unearned premiums refunded to the Contractor, but
only to the extent that such premiums shall have been reimbursed to the
Contractor by the Government or included in the pricing structure of the
contract (firm fixed price or incentive type arrangement, as applicable).
(d) All insurance which is or may be required or approved pursuant to this
requirement shall be in such form, in such amounts, for such periods of time,
and with such insurers as the Department may from time to time require or
approve, provided the Contractor shall be named as an insured and shall be
entitled to payment of any loss or damage as its interests may appear. The
policies or certificates of insurance shall be deposited with the Assistant
Secretary of the Navy (R,D&A), Insurance Office, or as the Department may
otherwise direct.
(e) In the event of loss of or damage to any of the vessels or any of
the materials or equipment therefor which may result in a claim against the
Government under the insurance requirements of this contract, the Contractor
promptly shall notify the Contracting Officer of such loss or damages, and the
Contracting Officer may, without prejudice to any other right of the Government,
either:
(i) Order the Contractor to proceed with replacement or repair in which
event the Contractor shall effect such replacement or repair. The Contractor
shall submit to the Contracting Officer a request for reimbursement of the cost
of such replacement or repair together with such supporting documentation as the
Contracting Officer may reasonably require, and shall identify such request as
being submitted under this insurance requirement. If the Government determines
that the risk of such loss or damages is within the scope of the risks assumed
by the Government under this requirement, the Government will reimburse the
Contractor for the reasonable, allowable cost
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of such replacement or repair, plus a reasonable profit, less the deductible
amount specified in paragraph (a) of this requirement. Payments by the
Government to the Contractor under this insurance requirement are outside the
scope of and shall not affect the pricing structure of the contract (firm fixed
price or incentive type arrangement, as applicable), and are additional to the
compensation otherwise payable to the Contractor under this contract; or
(ii) In the event the Contracting Officer decides that the loss or damage
shall not be replaced or repaired,
(A) Modify the contract appropriately consistent with the reduced
requirements reflected by the unreplaced or unrepaired loss or damage, or
(B) Terminate the construction of any part or all of the vessel(s)
under the clause of this contract entitled "TERMINATION FOR CONVENIENCE OF THE
GOVERNMENT (FIXED-PRICE)" (FAR 52.249-2).
(f) The coverage provided by this requirement is extended geographically to
include material or equipment to which the Government has acquired title or
which has been furnished by the Government and is located in the following
contractor facilities or in transit between facilities:
Newport News Shipbuilding Newport News Shipbuilding
▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ Office
Newport News, Virginia ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇ #▇, ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
The Contractor may request the Contracting Officer to extend the geographical
coverage of this requirement to newly acquired or leased facilities which are to
be used in the performance of this contract.
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H-13 NAVSEA 5252.245-9124 LIENS AND TITLE (FI) (JAN 1990)
(a) Any and all partial payments made hereunder on account of the vessels and
the materials and equipment therefor shall be secured, when made, by a lien in
favor of the Government upon such material and equipment on account of all
payments so made, except to the extent that the Government, by virtue of any
other requirement of this contract, or otherwise, shall have valid title to such
material and equipment as against other creditors of the Contractor. If such
property is not identified by marking or segregating, the Government shall be
deemed to have a lien upon a proportionate part of any mass of property with
which such property is commingled. Any lien provided for by virtue of this
requirement is paramount to all other liens under the provisions of an Act
approved 22 August 1911 (Pub. Law No. 41, 62d Cong., 37 Stat. 32; 10 U.S.C.
Sec 7521). Upon completion and delivery of the vessels, said lien shall be
discharged as to any materials and equipment which have not been included in
the vessels and which are no longer required therefor.
(b) The Contractor shall immediately discharge or cause to be discharged any
lien or rights in rem of any kind, other than in favor of the Government, which
at any time exists or rises with respect to the machinery, fittings, equipment
or materials for the vessels. If any such lien or right in rem is not
immediately discharged, the Government may discharge or cause to be discharged
said lien or right in rem at the expense of the contractor.
(c) Title to the vessels under construction shall be in the Government and
title to all materials and equipment acquired for each vessel shall vest in the
Government upon delivery thereof to the plant of the Contractor or other place
of storage selected by the Contractor, whichever of said events shall first
occur; provided, that the Supervisor may, by written direction, require that
title shall vest in the Government upon delivery of such materials and equipment
to the carrier for transportation to the plant of the Contractor or other place
of storage selected by the Contractor. The amount of any freight charges,
transportation, taxes or other costs which would have been paid by the
Contractor, either directly or as an element of any subcontract cost, and which
the Contractor shall not be required to pay as a result of such earlier vesting
of title and any use of Government bills of lading, shall be determined and
treated as though resulting from a change order and the contract price reduced
accordingly. Upon completion of the contract, or at such earlier date as may be
fixed by the Contracting Officer, the Contractor
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shall submit, in a form acceptable to the Contracting Officer, inventory
schedules covering all items of property not consumed in the performance of this
contract (including any resulting scrap) or not theretofore delivered to the
Government. The Contractor shall deliver or make such other disposal of such
property as may be directed or authorized by the Contracting Officer. The
Contracting Officer, in lieu of directing or authorizing delivery or disposal of
such property, may authorize the Contractor to take title to all or any part of
such property, except for materials and equipment which were furnished by the
Government and except for models, mockups, plans and other items which the
Contractor is expressly required to construct, prepare or furnish to the
Government (all of which shall remain the property of the Government). In the
event the Contracting Officer authorizes the Contractor to take title to all or
any part of such property, the Contractor shall credit the cost incurred in the
performance of this contract by an amount equal to the fair market value of such
property. In the event the Contracting Officer directs or authorizes the
delivery or disposal of such property, any costs incurred by the Contractor in
delivering or disposing of such property shall be included in the total final
costs incurred or to be incurred and shall be included in the total final price
determined pursuant to the clause of this contract entitled "INCENTIVE PRICE
REVISION--FIRM TARGET (FI) (APR 1984) (DEVIATION - 16 NOV 1992) (NAVSEA
5252.216-9l27)" (FAR 52.216-16). Recoverable scrap from such property shall be
reported in accordance with such procedure and in such form as the Contracting
Officer may direct. The net proceeds of any such disposal shall be credited to
the Government and shall be paid in such manner as the Contracting Officer may
direct. For the purpose of this requirement, "net proceeds" means actual amount
collected from such sale of disposal less sales, collection fees and other
reasonable related expenses.
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H-14 NAVSEA 5252.227-9112 LOGISTIC SUPPORT REQUIREMENT (AT)
(JAN 1990)
(a) This requirement applies whenever the contract specifications, by reference
to a Military Specification or otherwise, specify repair parts or stock
components (hereinafter called "repair parts") for a ship component or item of
equipment.
(b) With respect to ship components or equipments manufactured other than in
the United States or Canada, the Contractor agrees that, in addition to any
other data required by this contract, it will furnish under this contract
sufficient data so that the repair parts can be reproduced in the United States
or Canada unless the suppliers of the ship components or equipments shall have
made arrangements satisfactory to the Contractor and approved by the Contracting
Officer for the manufacturing of repair parts in the United States or Canada.
For the purpose of this requirement, "sufficient data" shall mean detail
drawings and other technical information sufficiently extensive in detail to
show design, construction, dimensions, and operation or function, manufacturing
methods or processes, treatment or chemical composition of materials, plant
layout and tooling. All data shall be in the English language and according to
the United States system of weights and measures, and drawings for components,
assemblies, subassemblies and parts protected by U.S. patents shall contain a
prominent notation to that effect fully identifying the patent or patents
involved, and bearing the number of this contract.
(c) In order to satisfy the requirements of paragraph (b), above, unless the
supplier of the ship components or equipments shall have made arrangements,
satisfactory to the Contractor and approved by the Contracting Officer, for the
manufacture of such repair parts in the United States or Canada, the Contractor
shall include in all subcontracts for the purchase of ship components or
equipments from foreign sources a clause, acceptable to the Contracting Officer,
granting to the United States Government for a period of seven (7) years,
"Government Purpose License Rights" (GPLR) (as defined in paragraph (a)(14) of
the clause of this contract entitled "RIGHTS IN TECHNICAL DATA AND COMPUTER
SOFTWARE" (DFARS 252.227-7013) in all technical data necessary to manufacture
spare and repair parts for such components or equipments.
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H-15 NAVSEA 5252.243-9105 NOTIFICATION OF CHANGES (FT) -
ALTERNATE I (▇▇▇ 1983)
(a) Definitions. As used in this requirement, the term "Contracting Officer"
does not include any representative of the Contracting Officer whether or not
such representative is acting within the scope of his authority nor does it
include any other individuals or activities that in any way communicate with the
Contractor. As used in this requirement, the term "conduct" includes both
actions and failures to act, and includes the furnishing of, or the failure to
furnish, any item under any provision of this contract.
(b) Notice. The primary purpose of this requirement is to obtain prompt
reporting of any conduct which the Contractor considers would constitute or
would require a change to this contract. The parties acknowledge that proper
administration of this contract requires that potential changes be identified
and resolved as they arise. Therefore, except for changes identified as such in
writing and signed by the Contracting Officer, the Contractor shall notify the
Contracting Officer of any conduct which the Contractor considers would
constitute or would require a change to this contract. Such notice shall be
provided promptly, and in any event within thirty (30) calendar days from the
date the Contractor identifies any such conduct. The Notice shall be written and
shall state, on the basis of the most accurate information available to the
Contractor:
(i) The date, nature, and circumstances of the conduct regarded
as a change;
(ii) The name, function, and activity of the individuals directly
involved in or knowledgeable about such conduct;
(iii) The identification of any documents and the substance of any oral
communication involved in such conduct;
(iv) The particular elements of contract performance for which the
Contractor might seek an equitable adjustment under this requirement, including:
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(1) What ship(s) have been or might be affected by the potential
change;
(2) To the extent practicable, labor or materials or both which have
been or might be added, deleted, or wasted by the potential
change;
(3) To the extent practicable, the Contractor's preliminary order of
magnitude estimate of cost and schedule effect of the potential
change; and
(4) What and in what manner are the particular technical requirements
or contract requirements regarded as changed.
(c) Continued Performance. Except as provided in paragraph (f) below, following
submission of notice, the Contractor shall take no action to implement a
potential change until advised by the Contracting Officer in writing as provided
in (d) below, unless the potential change was previously directed by the
Contracting Officer, in which case the Contractor shall conform therewith.
Nothing in this paragraph (c) shall excuse the Contractor from proceeding with
contract work other than implementation of the potential change or from
proceeding in accordance with directions issued by the Contracting Officer.
(d) Government Response. The Contracting Officer shall promptly, and in any
event within twenty-one (21) calendar days after receipt of Notice, respond
thereto in writing. In such response, the Contracting Officer shall either:
(i) Confirm that the conduct of which the Contractor gave notice would
constitute a change, and when necessary, direct the mode of further performance,
or;
(ii) Countermand any conduct regarded by the Contractor as a change, or;
(iii) Deny that the conduct of which the Contractor gave notice would
constitute a change and, when necessary, direct the mode of further performance,
or;
(iv) In the event the Contractor's notice information is inadequate to
make a decision under (i), (ii) or (iii) above, advise the Contractor what
additional information is required. Failure of the Government to respond within
the time required above shall be deemed a countermand under (d)(ii).
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(e) Equitable Adjustments. Equitable adjustments for changes confirmed or
countermanded by the Contracting Officer shall be made in accordance with the
clause of this contract entitled "CHANGES", or any other requirement of this
contract which provides for an equitable adjustment.
(f) Special Procedures. Paragraph (c) provides that the Contractor is to take no
action to implement a potential change pending the Contracting Officer's
response to the Contractor's notice of the potential change, except where
specifically directed by the Contracting Officer. In special situations,
however, where
(1) The circumstances do not allow sufficient time to notify the
Contracting Officer of the facts prior to the need to proceed with the work,
and;
(2) The work must proceed to avoid hazards to personnel or property or to
avoid additional cost to the Government, the Contractor may proceed with work in
accordance with the potential change. In such special situations, the Contractor
shall advise the Contracting Officer in writing within ten (10) days of the
conduct giving rise to the potential change that the Contractor has proceeded
and shall describe the nature of the special situation which required proceeding
prior to notification. Within thirty (30) calendar days of the conduct giving
rise to the potential change, the Contractor shall provide notice as required in
(b) above. The Contracting Officer shall respond as set forth in (d) above. If
the Contracting Officer determines that the conduct constitutes a change and
countermands it, the Contractor shall be entitled to an equitable adjustment for
performance in accordance with that change prior to the countermand including
performance resulting from the countermand.
(g) When the Contractor identifies any conduct which may result in delay to
delivery of the ship(s), the Contractor shall promptly so inform the Contracting
Officer thereof prior to providing the notice required by paragraph (b) above.
(h) Despite good faith best efforts, occasions may arise in which the Contractor
does not provide notice within the time periods specified in paragraphs (b) and
(f) above. Accordingly, prior to the end of the first and third quarters of each
calendar year through the period of performance of this contract, beginning with
the third quarter of 1995, the Contractor shall deliver to the Government an
executed bilateral contract modification, in the format set forth in Exhibit "A"
to this
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requirement, covering the six month period of time ending with the second and
fourth quarters, respectively, of the preceding year, with such specific
exceptions, if any, as are identified by the Contractor. If the Contractor cites
specific exceptions to the release, the Contractor shall concurrently provide
the Contracting Officer with notice, containing the information set forth in
paragraph (b) of this requirement, for each item excepted from the release.
However, the release required by this requirement shall not make unallowable any
costs which are otherwise allowable under any other requirement of this
contract.
Within sixty (60) days of receipt of the release, the Contracting Officer
shall sign and return a copy of the release to the Contractor. If the
Contracting Officer fails to execute and return the release within the required
time, then the release shall be deemed to be void and of no effect for the
period involved.
(i) If the release in accordance with paragraph (h) above is not provided to the
Government by the Contractor in the time required, the Contracting Officer may
execute the release as set forth in Exhibit "A" and send it to the Contractor.
If the Contractor fails to execute the release and return it to the Government
(with any specific exceptions) within sixty (60) days of receipt thereof, the
required release shall then be deemed effective as if signed by the Contractor.
Exhibit A to the Requirement entitled "NOTIFICATION OF CHANGES"
---------------------------------------------------------------
This modification reflects the agreement of the parties to the mutual full and
final releases for the consequences of that conduct (as conduct is defined in
the requirement entitled "NOTIFICATION OF CHANGES"), described below, except the
conduct identified in Attachment A hereto is excluded and not covered by the
terms of this release.
1. Except for the conduct listed in Attachment A by either party, neither the
Contractor nor the Government shall be entitled to any equitable adjustment or
to money damages and/or other relief for any conduct, as specified below.
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2. In consideration of the foregoing the parties hereby agree to the following
release:
a. The Government, for itself, its assigns, vendors, suppliers, and
contractors, hereby remises, releases, and forever discharges the Contractor,
its officers, agents and employees from any and all entitlement of the
Government to equitable adjustment of the contract price and delivery schedule
due to conduct under this contract, which occurred on or before *.
b. The Contractor, for itself, its successors, assigns, vendors, suppliers,
and subcontractors, hereby remises, releases and forever discharges the
Government, its officers, agents and employees from (i) any and all entitlement
of the Contractor to equitable adjustment of the contract cost and fee and/or
delivery schedule of this contract or of any other Government contract (with
this or any other Contractor) or any contract between the Contractor and any
third party by reason of any conduct which increases the Contractor's cost or
time of performance of work under this contract and meets the following
conditions (1) known to the Contractor, (2) occurred on or before * and (3) the
Contractor failed to give notice prior to date of this release, and (ii) any and
all liabilities to the Contractor for money damages and/or other relief for the
impact of any such conduct, upon this contract or any other Government contract
(with this or any other Contractor) or any contract between the Contractor and
any third party.
* - Insert the date of the last day of the applicable period.
H-16 NAVSEA 5252.243-9113 OTHER CHANGE PROPOSALS (FT) -
ALTERNATE I (JAN 1990)
(a) The Contracting Officer, in addition to proposing engineering changes
pursuant to other requirements of this contract, and in addition to issuing
changes pursuant to the clause of this contract entitled "CHANGES", may propose
other changes within the general scope of this contract as set forth below.
Within forty-five (45) days from the date of receipt of any such proposed
change, or within such further time as the Contracting Officer may allow, the
Contractor shall submit the proposed scope of work, plans and sketches, and its
estimate of: (A) the cost, (B) the weight and moment effect, (C) effect on
delivery dates of the vessel(s), and (D) status of work on the vessels affected
by the proposed change. The proposed scope of work and estimate of cost shall be
in such form and supported by such reasonably detailed information as the
Contracting Officer
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may require. Within sixty (60) days from the date of receipt of the Contractor's
estimate, the Contractor agrees to either (A) enter into a supplemental
agreement covering the estimate as submitted, or (B) if the estimate as
submitted is not satisfactory to the Contracting Officer, enter into
negotiations in good faith leading to the execution of a bilateral supplemental
agreement. In either case, the supplemental agreement shall cover an equitable
adjustment in the contract price, including an equitable adjustment for the
preparatory work set forth above, scope, and all other necessary equitable
adjustments. The Contractor's estimate referred to in this subparagraph shall be
a firm offer for sixty (60) days from and after the receipt thereof by the
Contracting Officer having cognizance thereof, unless such period of time is
extended by mutual consent.
(b) Pending execution of a bilateral agreement or the direction of the
Contracting Officer pursuant to the "CHANGES" clause, the Contractor shall
proceed diligently with contract performance without regard to the effect of any
such proposed change.
(c) In the event that a change proposed by the Contracting Officer is not
incorporated into the contract, the work done by the Contractor in preparing the
estimate in accordance with subparagraph (a) above shall be treated as if
ordered by the Contracting Officer under the "CHANGES" clause. The Contractor
shall be entitled to an equitable adjustment in the contract price for the
effort required under subparagraph (a), but the Contractor shall not be entitled
to any adjustment in delivery date. Failure to agree to such equitable
adjustment in the contract price shall be a dispute within the meaning of the
clause of this contract entitled "DISPUTES" (FAR 52.233-1).
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H-17 NAVSEA 5252.232-9105 PAYMENTS (FI) (JAN 1990)
(DEVIATION) (DEC 1994)
(a) Computation of Payments.
(1) Until such time as physical progress in the performance of the work on
a vessel is twenty-five percent (25%) complete, the Government, upon submission
by the Contractor of invoices certified by the Contractor as hereinafter
provided, will promptly make payments, on account of the total contract price,
at ninety-five percent (95%) of the amount determined by multiplying the
allocated total contract price of such vessel by the percentage of physical
progress in the performance of work on such vessel as certified by the
Contractor subject to the approval of the Supervisor; provided, that no such
payment shall be made in an amount which when added to the total of all payments
previously made with respect to such vessel under (i) paragraph (a) of this
clause and (ii) the "COMPENSATION ADJUSTMENTS (LABOR AND MATERIAL)" clause
exceeds one hundred fourteen percent (114%) of the allowable costs certified by
the Contractor on the related invoice to have been incurred in the performance
of work on such vessel.
(2) After the percentage of physical progress in the performance of work
on a vessel has reached twenty-five percent (25%) and until such time as
physical progress in the performance of work on a vessel is fifty percent (50%)
complete, the Government, upon submission by the Contractor of invoices
certified by the Contractor as hereinafter provided, will promptly make
payments, on account of the total contract price, of ninety-seven percent (97%)
of the amount determined by multiplying the allocated total contract price of
such vessel by the percentage of physical progress in the performance of work on
such vessel as certified by the Contractor subject to the approval of the
Supervisor; provided, that no such payment shall be made in an amount which when
added to the total of all payments made previously with respect to such vessel
under (i) paragraph (a) of this clause and (ii) the "COMPENSATION ADJUSTMENTS
(LABOR AND MATERIAL)" clause exceeds one hundred fifteen percent (115%) of the
allowable costs certified by the Contractor on the related invoice to have been
incurred in the performance of work on such vessel.
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(3) After the percentage of physical progress in the performance of work
on a vessel has reached fifty percent (50%) and until such time as physical
progress in the performance of work on a vessel is seventy-five percent (7S%)
complete, the Government, upon submission by the Contractor of invoices
certified by the Contractor as hereinafter provided, will promptly make
payments, on account of the total contract price, of ninety-eight and one half
percent (98.5%) of the amount determined by multiplying the allocated total
contract price of such vessel by the percentage of physical progress in the
performance of work on such vessel as certified by the Contractor subject to the
approval of the Supervisor; provided, that no such payment shall be made in an
amount which when added to the total of all payments made previously with
respect to such vessel under (i) paragraph (a) of this clause and (ii) the
"COMPENSATION ADJUSTMENTS (LABOR AND MATERIAL)" clause exceeds one hundred
sixteen percent (116%) of the allowable costs certified by the Contractor on the
related invoice to have been incurred in the performance of work on such vessel.
(4) After the percentage of physical progress in the performance of work
on a vessel has reached seventy-five percent (75%), the Government, upon
submission by the Contractor of invoices certified by the Contractor as
hereinafter provided, will promptly make payments, on account of the total
contract price, of ninety nine and one quarter percent (99.25%) of the amount
determined by multiplying the allocated total contract price of such vessel by
the percentage of physical progress in the performance of work on such vessel as
certified by the Contractor subject to the approval of the Supervisor; provided,
that no such payment shall be made in an amount which when added to the total of
all payments made previously with respect to such vessel under (i) paragraph (a)
of this clause and (ii) the "COMPENSATION ADJUSTMENTS (LABOR AND MATERIAL)"
clause exceeds one hundred seventeen and one quarter percent (117.25%) of the
allowable costs certified by the Contractor on the related invoice to have been
incurred in the performance of work on such vessel.
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(b) Billing Price.
(1) For the purpose of this clause, until the establishment of the total
final price in accordance with paragraph (d) of the "INCENTIVE PRICE REVISION
(FIRM TARGET)" clause, the term "total contract price" means the billing price;
initially the billing price shall be the initial total contract target price,
and thereafter the billing price shall be revised as provided in paragraph
(b)(2) below. After establishment of the total final price in accordance with
paragraph (d) of the "INCENTIVE PRICE REVISION (FIRM TARGET)" clause, the
billing price shall be the total final price so established.
(2) Within fifteen (15) days after each calendar quarter the Contractor
shall submit in writing a proposed revised billing price which shall be
established as follows:
(i) The Contractor shall certify to the Contracting Officer the
percentage of physical progress in the performance of the contract as a whole as
of the end of the calendar quarter. Such percentage of physical progress shall
be expressed as a decimal carried to four decimal places and shall be subject to
the approval of the Supervisor.
(ii) The revised billing price shall be the sum of a projected
final cost, and a projected profit, computed as follows:
(A) A projected final cost shall be computed by (i) determining
the cumulative sum of the base costs as of the end of the calendar quarter,
established in accordance with the "COMPENSATION ADJUSTMENTS (LABOR AND
MATERIAL)" clause, and (ii) dividing the sum thereof by the percentage of
physical progress certified and approved as set forth in subparagraph (i) above.
(B) A projected profit shall be determined by applying to the
projected final cost the incentive formula set forth in paragraph (d)(2) of the
"INCENTIVE PRICE REVISION (FIRM TARGET)" clause, provided, that in no event
shall the revised billing price exceed the ceiling price of the contract.
(iii) The revised billing price determined as stated above shall be
set forth separately in a supplemental agreement to this contract, which also
shall set forth the computations upon which the revision of the billing price is
based.
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(iv) Any revision of the billing prices shall not affect the
determination of the total final price under paragraph (d) of the "INCENTIVE
PRICE REVISION (FIRM TARGET)" clause. After execution of the contract
modification referred to in subparagraph (d)(3) of said clause, the total amount
paid or to be paid on all invoices or vouchers shall be adjusted to reflect the
total final price, and any additional payments, refunds, or credits resulting
therefrom shall be promptly made.
(c) Allocated Total Contract Price of Each Vessel. For the purpose
of this clause, the allocated total contract price of each vessel shall be
established by multiplying the total contract price by a percentage, expressed
as a decimal carried to four decimal places, equal to that fraction whose
numerator is the original unit target price of the vessel and whose denominator
is the original total target price. The resulting dollar amount shall be rounded
to the nearest one hundred thousand dollar ($100,000), upward or downward;
provided that in no event shall the sum of the allocated total contract price of
the vessel exceed the total contract price. The aforesaid percentages of each
vessel shall be revised, by contract modification, in the event that either:
(i) Equitable adjustments to the unit target price of the vessel result in
unit target price of a substantially different proportion to the total target
price than previously provided for under this subparagraph (c) or
(ii) Incurred costs indicate that a revision to the percentages is
appropriate, provided, however, any such revision shall not be made more
frequently than at the end of a calendar quarter unless the total contract price
is limited to the contract ceiling price and the contract ceiling price is
adjusted during a calendar quarter.
(d) Invoices. Invoices may be submitted every two weeks, but not more
frequently; provided, however, that if after contract award more frequent
progress payments are approved by cognizant Government authority, this provision
shall be modified accordingly without additional consideration by the Contractor
to the Government for such modification. No payment will be required to be made
upon invoices aggregating less than five thousand dollars ($5,000). The
Contractor shall certify on each invoice:
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(1) The percentage of physical progress in the performance of work on the
vessel as a decimal carried to four places; and
(2) The allowable costs incurred in the performance of the work on the
vessel as of the date the invoice is submitted. Such certification shall provide
for cost category reporting in accordance with the Contractor's normal
accounting system and shall be broken down into direct material, direct labor
and indirect costs.
(e) Physical Progress and Weighting Factors.
(1) Within sixty (60) days after contract award the Contractor shall
submit a progressing system description for review and approval by the
Contracting Officer. Upon approval of such system, progress payments shall be in
accordance with the approved system. Subsequent revisions to the approved system
shall be submitted to the Contracting Officer for approval prior to
implementation.
(2) The mutually agreed upon weighting factors for the categories of labor
and material for each vessel are set forth in Attachment D to this contract. The
weighting factors shall be revised quarterly concurrent with the billing price
revisions specified in paragraph (b). Notwithstanding the above, revision of
weighting factors may be requested by either party when factual data indicate
that the weighting factors then in use are no longer representative of the
actual labor and material distribution. Revisions of weighting factors shall be
supported by detailed de-escalated (estimated final) direct material, direct
labor and indirect costs and additional data concerning the cause of the change
in the weighting factors. Any change in the weighting factors shall be set forth
in a supplemental agreement to this contract.
(f) Incurred Costs. For the purpose of this clause "incurred costs"
are those costs identified through the use of the accrual method of accounting,
as supported by the records maintained by the Contractor and which are allowable
in accordance with Part 31 of the Federal Acquisition Regulation in effect on
the effective date of this contract and include only:
(1) Costs for items or services purchased directly for the contract
which are paid as well as incurred, as shown by payment made by cash, check, or
other form of actual payment; and
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(2) Costs incurred, but not necessarily paid, for materials issued
from the Contractor's stores inventory and placed in the production process for
use on the contract, for direct labor, for direct travel, for other direct in-
house costs and for properly allocable and allowable overhead (indirect) costs,
all as shown by records maintained by the Contractor for the purpose of
obtaining payment under Government contracts, provided that the Contractor is
not delinquent in payment of costs of contract performance in the ordinary
course of business; and
(3) With respect to allocated and allowable costs of pension
contributions, when pension contributions are paid by the Contractor to the
retirement fund less frequently than quarterly, accruals of the costs of these
pension contributions shall be excluded from Contractor's incurred costs until
such costs are paid. If pension contributions are paid on a quarterly or more
frequent basis, accruals of such costs may be included in the Contractor's
incurred costs, provided that the pension contributions are paid to the
retirement fund within thirty (30) days after the close of the period covered by
the payment. If payments are not paid within such thirty (30) day period,
pension contributions shall be excluded from the Contractor's incurred cost
until payment therefor has been made.
(4) Incurred costs shall not include any costs which are required under
any provision of this contract (other than the "COMPENSATION ADJUSTMENT (LABOR
AND MATERIAL)" clause) to be reimbursed or paid by the Government to the
Contractor or by the Contractor to the Government other than through an
equitable adjustment in the contract price. If an overpayment is made relative
to this paragraph (f), interest shall be charged at the prevailing per annum
rate established by the Secretary of the Treasury, pursuant to Public Law 92-41,
from the date such overpayment is made (date of Government check) until the date
the overpayment is fully recovered.
(g) Retentions.
(1) Upon preliminary acceptance of each vessel and upon the
submission of properly certified invoices, the Government will pay to the
Contractor the amount withheld under paragraph (a) of this clause in respect of
that vessel in excess of a performance reserve in the amount of $5,000,000 per
vessel. If at any time it shall appear to the Government that the amount of
performance reserve may be insufficient to meet the cost to the Government of
finishing any unfinished work under the
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contract for which the Contractor is responsible, or of correcting defects for
which the Contractor is responsible which are discovered prior to preliminary
acceptance or during the guaranty period of any vessel, the Government may, in
making payments under this clause, deduct or withhold such additional amounts as
it may determine to be necessary to render such reserve adequate; provided, that
any additional amounts deducted or withheld on account of defects which are
discovered during the guaranty period of the vessel shall not exceed the limit
of the Contractor's liability as set forth in the clause entitled "LIMITATION OF
CONTRACTOR'S LIABILITY FOR CORRECTION OF DEFECTS", reduced by the amounts of the
cost incurred by the Contractor for work on such vessel because of Contractor
responsible deficiencies which are discovered during the guaranty period of the
vessel. The performance reserve will be paid six (6) months after completion of
the fitting out period of the vessel, or eight months after preliminary
acceptance, whichever first occurs, less an amount mutually agreed upon for work
not performed, if any.
(2) The Government may, in its discretion, make payments prior to final
settlement on account of the reserve established under this clause, subject to
such conditions precedent as the Contracting Officer may prescribe.
(3) The Government shall, at the time of final settlement, in accordance
with the provisions of the clause entitled "FINAL SETTLEMENT", pay the
Contractor the balance owing to it under the contract promptly after the amount
of such balance shall have been determined.
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(h) Certifications and Audits. At any time or times prior to final payment
under this contract, the Contracting Officer may have any invoices and
statements or certifications of costs audited. The Contracting Officer may
require the Contractor to submit, or make available for examination by the
Contracting Officer or his designated representative, the supporting
documentation upon which invoices, statements, or certifications of costs are
based. Each payment theretofore made shall be subject to reduction as necessary
to reflect the exclusion of amounts included in the invoices or statements or
certifications of costs which are found by the Contracting Officer, on the basis
of such audit, not to constitute allowable costs. Any payment may be reduced for
overpayments, or increased for underpayments on preceding invoices.
(i) Contract facilities capital cost of money shall be invoiced every
two weeks on an interim basis, using the latest available cost of money factor.
At the end of each calendar year, an adjustment will be made to the interim
▇▇▇▇▇▇▇▇ based on the actual cost of money factors applicable to that year.
The cost of money is not included in incurred cost and shall be a separate
reimbursement and shall not be included in any target price or ceiling price
and is outside the incentive price revision formula provided for in the clause
hereof entitled "Incentive Price Revision (Firm Target)".
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H-18 NAVSEA 5252.215-9106 PRICE ADJUSTMENT FOR CHANGES IN
FEDERAL LAW (FT) (JAN 1990)
(a) Definitions
(1) For the purpose of this requirement:
(i) The term "Currently Applicable Federal Laws" is defined to mean
and include only the statutes listed below, amendments thereto, and regulations
thereunder, promulgated by Federal authorities as in effect on November 17,
1994.
(A) Contract Work Hours and Safety Standards Act
(B) Occupational Safety and Health Act of 1970
(C) Atomic Energy Act of 1954
(D) National Environmental Policy Act of 1969
(E) Clean Air Act and the following amendments thereto:
(1) Clean Air Act Amendments of 1966;
(2) Clean Air Act Amendments of 1970; and
(3) Clean Air Act Amendments of 1977; and
(4) Clean Air Act Amendments of 1990.
(F) Federal Water Pollution Control Act Amendments of 1972 and
the following amendments thereto:
(1) Clean Water Act of 1977; and
(2) Water Quality Act of 1987; and
(3) Oil Pollution Act of 1990
(G) Refuse Act of 1899
(H) Noise Control Act of 1972
(I) Toxic Substances Control Act
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(J) Solid Waste Disposal Act and the following amendments
thereto:
(1) Resource Conservation and Recovery Act of 1976;
(2) Solid Waste Disposal Act Amendments of 1980; and
(3) Hazardous and Solid Waste
Amendments of 1984.
(K) Marine Protection, Research and Sanctuaries
Act of 1972
(L) Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 and
the following amendment thereto:
(1) Superfund Amendments and
Reauthorization Act of 1986.
(M) Act to Prevent Pollution from Ships (1980)
(N) Hazardous Materials Transportation
Act and the following amendment thereto:
(1) Hazardous Materials Transportation
Act Amendments of 1976
(O) Emergency Planning and Community Right to
Know Act of 1986.
(ii) The term "New Federal Law" is defined to mean a new Federal
Statute enacted subsequent to November 17, 1994 pertaining to (1) workplace
conditions affecting employees or the public, or (2) environmental standards and
requirements, and regulations thereunder promulgated by Federal authorities.
(iii) The term "change" shall be deemed to mean the amendment or
repeal of any Currently Applicable Federal Law or New Federal Law or regulations
promulgated thereunder by Federal authorities.
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(b) If, at any time after the effective date of this contract, a New Federal
Law is enacted or a change is made to a Currently Applicable Federal Law or a
New Federal Law or regulations thereunder promulgated by Federal authorities,
and compliance with such new law or change directly results in an increase or
decrease in the Contractor's cost of performance of this contract, the contract
price(s) shall be adjusted as provided in paragraph (c) below. No such
adjustment shall be made for contract costs incurred or projected to be incurred
during the two (2) year period after the effective date of this contract.
(c) The price adjustment provided for in paragraph (b) above shall be made, in
the same amount, in each of the Target Cost(s), the Target Price(s), and the
Ceiling Price(s) or Fixed Price(s) of this contract, as appropriate, and shall
include only the properly allowable and allocable direct and indirect costs of
additional labor and materials directly resulting from compliance with the new
law or with the change, but shall not include:
(i) Costs of delay, disruption, or acceleration of performance;
(ii) Increases or decreases in prices charged by subcontractors or
suppliers; or
(iii) Costs of additional facilities or of any portion thereof
constructed or acquired after November 17, 1994 unless such
additional facilities or the portion thereof have been
constructed or acquired by the Contractor solely in order to
comply with a New Federal law or a change in Currently Applicable
Federal Laws or New Federal Laws, or regulations thereunder
promulgated by Federal authorities.
The price adjustment shall consider and exclude any tax, depreciation, or other
special allowances provided to the Contractor in the New Federal Law or change
for compliance therewith. No adjustment shall be made in the Profit or Delivery
Schedule of the contract, provided, however, that the Contractor's right, if
any, to extension of the delivery schedule under any other requirement of this
contract shall not be prejudiced thereby. No adjustment shall be made unless a
New Federal Law or a change directly causes an increase or decrease in the
Contractor's cost of performance of this contract in excess of $125,000 per
ship.
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(d) The Contractor shall promptly notify the Contracting Officer, in writing,
of the enactment of New Federal Laws or of a change that reasonably may be
expected to result in an adjustment under the provisions of this requirement.
(e) Requests for price adjustments hereunder shall be made in accordance
with the procedures of the requirement entitled "DOCUMENTATION OF REQUESTS FOR
EQUITABLE ADJUSTMENT".
H-19 NAVSEA 5252.227-9100 PROTECTION OF NAVAL NUCLEAR
PROPULSION INFORMATION (JAN 1986)
(a) During the performance of this contract Naval Nuclear Propulsion
Information (NNPI) may be developed or used. Naval Nuclear Propulsion
Information is defined as that information and/or hardware concerning the
design, arrangement, development, manufacturing, testing, operation,
administration, training, maintenance, and repair of the propulsion plans of
Naval Nuclear Powered Ships including the associated shipboard and shore-based
nuclear support facilities. Appropriate safeguards must be proposed by the
Contractor and approved by the Contracting Officer for Security for the
safeguarding from actual, potential or inadvertent release by the Contractor, or
any subcontractor, of any Naval Nuclear Propulsion Information in any form,
classified or unclassified. Such safeguards shall ensure that only Governmental
and Contractor parties, including
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subcontractors, that have an established need-to-know, have access in order to
perform work under this contract, and then only under conditions which assure
that the information is properly protected. Access by foreign nationals or
immigrant aliens is not permitted. A foreign national or immigrant alien is
defined as a person not a United States citizen or a United States National.
United States citizens representing a foreign government, foreign private
interest or other foreign nationals, are considered to be foreign nationals for
industrial security purposes and the purpose of this restriction. In addition,
any and all issue or release of such information beyond such necessary parties,
whether or not ordered through an administrative or judicial tribunal, shall be
brought to the attention of the Contracting Officer for Security.
(b) The Contracting Officer for Security shall be immediately notified of any
litigation, subpoenas, or requests which either seek or may result in the
release of Naval Nuclear Propulsion Information.
(c) In the event that a court or administrative order makes immediate review by
the Contracting Officer for security impractical, the Contractor agrees to take
all necessary steps to notify the court or administrative body of the Navy's
interest in controlling the release of such information through review and
concurrence in any release.
(d) The Contracting Agency reserves the right to audit contractor facilities
for compliance with the above restrictions.
(e) Exceptions to these requirements may only be obtained with prior approval
from the Commander, Naval Sea Systems Command (Contact SEA 09T1).
H-20 DELETED
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H-21 NAVSEA 52S2.246-9124 SHIPBUILDING SUPPORT OFFICE
SCHEDULES (AT) (JAN 1983)
The U.S. Navy Shipbuilding Support Office, which is responsible within the
Department for providing central scheduling for ship programs, may, but shall
not be obligated to, promulgate from time to time Master Program Schedules and
other documents relating to the design, material procurement for, and orderly
erection of the vessel(s). Such schedules and documents, if promulgated, are
intended to facilitate integration of all work required in connection with the
vessels, and other vessels, if any, in the same ship program and to serve as a
planning aid for the Contractor and its agents, but such schedules and documents
shall not alter or increase the obligations of the Government and the use
thereof or adherence thereto is not a requirement of this contract. Neither the
promulgation of such schedules and documents nor any use thereof by the
Contractor or its agent shall in any way relieve the Contractor of its
obligation to complete and deliver the vessel(s) by the date and in accordance
with the other requirements set forth in this contract or affect responsibility
for any delays.
H-22 NAVSEA 5252.244-9102 SUBCONTRACTING OF NUCLEAR
ENGINEERING EFFORT (SEP 1990)
(a) The Contractor and the Navy intend that all nuclear engineering effort
under this contract be performed by employees of the Contractor or persons under
the supervision of employees of the Contractor at the Contractor's facilities or
at the construction site. If, however, the Contractor considers that
subcontracting some nuclear engineering effort, which will not be under the
supervision of employees of the Contractor at the Contractor's facilities or at
the construction site, is necessary to meet the Contractor's contractual
requirements, then notwithstanding and in addition to any other requirement of
this contract, the Contractor shall submit a written request for technical
approval to NAVSEA 08. The request to subcontract nuclear engineering effort
shall state the reasons why the subcontracting is necessary, why the effort
cannot be performed by the Contractor's personnel or persons under the
supervision of employees of the Contractor at the Contractor's facilities or at
the construction site, the expected number of man/hours, cost and nature of the
subcontracted effort, period of performance, and the name and qualifications of
the vendor to perform the subcontracted effort. NAVSEA 08 shall approve or
disapprove the request in writing. The Contractor agrees not to subcontract any
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nuclear engineering effort which will not be under the supervision of employees
of the Contractor at the Contractor's facilities or at the construction site
without obtaining the express written technical approval of NAVSEA 08.
(b) For the purpose of this requirement, the term "nuclear engineering effort"
includes engineering, drafting, and related technical support effort under
NAVSEA 08 technical cognizance.
H-23 NAVSEA 5252.227-9101 TRANSMISSION ABROAD OF EQUIPMENT OR
TECHNICAL DATA RELATING TO THE
NUCLEAR PROPULSION OF NAVAL SHIPS
(SEP 1990)
(a) The supplies specified to be delivered under this contract relate to the
nuclear propulsion of naval ships.
(b) Equipment and technical data defined as Naval Nuclear Propulsion
information (NNPI) under NAVSEAINST 5511.32A shall not be disclosed to foreign
nationals.
(c) For other than equipment and technical data defined as NNPI in paragraph
(b) above, except with the prior written consent of the Contracting Officer, or
his designated representative, the Contractor shall not, at any time during or
after the performance of this contract, transmit or authorize the transmittal of
any equipment or technical data, as defined in paragraph (d) below, (1) outside
the United States, or (2) irrespective of location, (i) to any foreign national,
not working on this contract or any subcontract hereunder (ii) to any foreign
organization (including foreign subsidiaries and affiliates of the Contractor),
(iii) to any foreign Government, or (iv) to any international organization.
(d) As used in this requirement, the following terms shall have the following
definitions:
(1) "United States" means the States, the District of Columbia, Puerto
Rico, American Samoa, the Virgin Islands, Guam, and any areas subject to the
complete sovereignty of the United States;
(2) "equipment" means all supplies of the kind specified to be
delivered under this contract, all component parts thereof, and all models of
such supplies and component parts; but "equipment" does not include standard
commercial supplies and component parts, and models thereof;
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(3) "technical data" means all professional, scientific, or technical
information and data produced or prepared for the performance of this contract,
or on or for the operation, maintenance, evaluation, or testing of any contract
item, whether or not the information and data were specified to be delivered
under this contract including, without limitation, all writings, sound
recordings, pictorial reproductions, and drawings or other graphical
representations; but "technical data" does not include such information and data
on standard commercial supplies and component parts to the extent that the
information and data do not relate to the use, operation, maintenance,
evaluation and testing of such supplies and component parts in or in connection
with any item, or component parts thereof, specified to be delivered under this
contract.
(e) The Contractor agrees to insert in all subcontracts under this contract
provisions which shall conform substantially to the language of this
requirement, including this paragraph (e).
(f) Notwithstanding any other provisions of this requirement, this requirement
shall not apply (1) where the transmittal or authorization for the transmittal
of equipment or technical data is to be made pursuant to a contract or agreement
to which the United States is a party; and (2) where the transmittal is to be of
equipment or technical data which the Contracting Officer, or his designated
representative, has declared in writing to the Contractor to be thereafter
exempt from this requirement.
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H-24 DELETED
H-25 NAVSEA 5252.227-9114 UNLIMITED RIGHTS IN TECHNICAL
DATA-NUCLEAR PROPULSION PLANT
SYSTEMS (SEP 1990)
(a) Pursuant to subparagraph (b)(1) of the clause entitled "RIGHTS IN TECHNICAL
DATA AND COMPUTER SOFTWARE" (DFARS 252.227-7013), it is agreed that all
technical data pertaining to nuclear propulsion plant systems under the
technical cognizance of the Deputy Commander, Nuclear Propulsion Directorate,
Naval Sea Systems Command (SEA 08), which is specified to be delivered pursuant
to this contract, shall be delivered with unlimited rights, provided, however,
that nothing in the clause shall be deemed to require any subcontractor of any
tier under this contract to deliver or furnish with unlimited rights any
technical data which he is entitled to deliver with limited rights pursuant to
said "RIGHTS IN TECHNICAL DATA AND COMPUTER SOFTWARE" clause.
(b) It is further agreed that promptly after delivery of the vessel, or after
any termination of all work under this contract, the Contractor shall submit a
letter report to the Nuclear Propulsion Directorate, Naval Sea Systems Command
(SEA 08) listing and providing a brief description of all items of technical
data pertaining to the reactor plant(s) of the vessel(s) developed or prepared
under this contract which were not specified to be delivered pursuant to this
contract. The Contractor shall furnish in the Contractor's format and at the
cost of reproduction, with unlimited rights, copies of items of technical data
so reported or which should have been reported, as the Government may require in
writing from time to time and at any time. However, nothing in this requirement
shall require the Contractor to retain any item of such technical data beyond
the period provided for in this contract, including the specifications, and
other documents incorporated by reference, applicable to the item or type of
technical data involved.
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H-26 NAVSEA 5252.209-9102 WEIGHT CONTROL (SEP 1990)
(a) In accordance with the procedures set forth in Section 9290-1 of the
Specifications, the Contractor shall enter into an agreement with the Government
as to the Accepted Weight Estimate (AWE) for the ship under this contract, and
such agreement shall be set forth in a Supplemental Agreement. The AWE values
for combat load displacement and vertical center of gravity above bottom of
keel. (KG) are the baseline for measuring Contractor responsibility within the
meaning of this clause. The aforementioned AWE values shall be equal to or less
than the following Not-to-Exceed (NTE) values:
Contractor Responsible Combat Load Displacement 99.830 long tons
Contractor Responsible KG 46.92 feet
It is further agreed that the foregoing NTE values for the Combat Load condition
include all adjustments required as a result of the effects of the
specifications noted in Section C of the contract.
In addition, it is agreed that the trim and list tolerances for the combat load
condition are as follows:
Trim 24 inches forward or aft
List 0.50 degrees port or starboard
(b) The net weight and moment effect of every change incorporated into this
contract shall be agreed upon and set forth in the Supplemental Agreement.
(c) One month prior to the date of performance of the inclining experiment, the
net weight and moment differences to Government Furnished Material (GFM) since
the AWE, that were beyond the control of the Contractor, excluding effect of
contract changes, shall be agreed upon and set forth in a Supplemental
Agreement. All weight and moment differences to GFM resulting from the
correction of data for which accurate information was available prior to the AWE
or from the relocation of GFM at the discretion of the Contractor are considered
to be within the control of the Contractor.
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(d) If the Contractor proposes changes in the contract plans or specifications
solely for the purpose of meeting the values of displacement, KG, trim, or list
as set forth in paragraph (a) above, and if the Contracting Officer approves,
the parties shall enter into a Supplemental Agreement implementing such changes
and such Supplemental Agreement shall adjust the contract price and delivery
schedule pursuant to the "Changes" clause except that no increase in the cost of
or time for performance of the contract shall be considered in arriving at the
adjustment for such changes. Any Supplemental Agreements issued pursuant to this
paragraph shall reflect the weight and moment effect of the changes and shall be
reported as required for other contract modifications. However, the net weight
and moment effect of any changes made under this paragraph shall not be
considered in calculating the Contractor responsible values under paragraph (e)
below. Notwithstanding the foregoing, when Value Engineering proposals initiated
and recommended by the Contractor are authorized by contract modification, fifty
percent (50%) of the savings of the weight and moment effect of any such Value
Engineering Change shall not be considered in calculating the Contractor
responsible values under paragraph (e) below.
(e) The Contractor shall be responsible for the delivery of the ship with a
displacement and KG of no more than the AWE values specified in paragraph (a)
above for the combat load condition plus the values agreed upon for the Contract
Modifications and weight growth of Government Furnished Material and Government
Controlled Material. In addition, the Contractor shall be responsible for the
delivery of the ship within a trim and list for the combat load condition, as
specified in paragraph (a) above. If required, up to 650 long tons of Contractor
controlled ballast may be used to achieve the list and trim specified in
paragraph (a) above. However, the installation of such ballast shall be agreed
upon between the Contractor and the Contracting Officer and the Contractor shall
be entitled to an equitable adjustment in accordance with the "Changes" clause.
If the Government elects not to authorize installation of any or all of the 650
long tons of Contractor controlled ballast, the Contractor is still entitled to
use, in the weight reports, up to the 650 long tons of Contractor controlled
ballast, to meet the list and trim requirements specified in paragraph (a). The
Contractor will not be responsible for the net total adverse effect on such trim
or list caused by Contract Modifications and weight growth of Government
Furnished Material and Government Controlled Material.
133
N00024-95-C-2106
SCHEDULE
(f) Within the first six months after contract award, the Contractor may
request a one time adjustment to the NTE values (including trim and list) and
the allowable ballast. The Contractor's request shall provide technical
justification for the proposed adjustments and it shall be accompanied by a
Contractor's Independent Weight Estimate (CIWE). Changes to the NTE values and
the allowable ballast shall be agreed upon and set forth in a Supplemental
Agreement.
H-27 NAVSEA 5252.245-9115 RENT-FREE USE OF GOVERNMENT PROPERTY
(SEP 1990)
The Contractor may use on a rent-free, non-interference basis, as necessary for
the performance of this contract, the Government property accountable under
Contract(s) N00024-90-E-3501 and N00024-88-C-2055. The Contractor is responsible
for scheduling the use of all property covered by the above referenced
contract(s) and the Government shall not be responsible for conflicts, delays,
or disruptions to any work performed by the Contractor due to use of any or all
of such property under this contract or any other contracts under which use of
such property is authorized.
H-28 NAVSEA 5252.231-9109 PRECONTRACT COSTS (SEP 1990)
Allowable costs under this contract shall include all costs incurred by the
Contractor in connection with the work covered by this contract during the
period from and including 22 September 1994 to the date of this contract, as
would have been allowable and allocable pursuant to the terms of this contract
as if this contract had been in effect during said period; provided, however,
that such costs shall not in the aggregate exceed $8,000,000 unless such amount
is increased in writing by the Contracting Officer (which amount is included in
the estimated cost(s) of this contract).
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N00024-95-C-2106
SECTION I - CONTRACT CLAUSES
SECTION I-1 - CLAUSES INCORPORATED BY REFERENCE
I. FEDERAL ACQUISITION REGULATION (48 CFR CHAPTER 1) CLAUSES:
FAR
SOURCE TITLE AND DATE
------ --------------
52.202-1 DEFINITIONS (SEP 1991)
52.203-1 OFFICIALS NOT TO BENEFIT (APR 1984)
52.203-3 GRATUITIES (APR 1984)
52.203-5 COVENANT AGAINST CONTINGENT FEES (APR 1984)
52.203-6 RESTRICTIONS ON SUBCONTRACTOR SALES TO THE
GOVERNMENT (JUL 1985)
52.203-7 ANTI- KICKBACK PROCEDURES (OCT 1988)
52.203-10 PRICE OR FEE ADJUSTMENT FOR ILLEGAL OR
IMPROPER ACTIVITY (SEP l99O)
52.203-12 LIMITATION ON PAYMENTS TO INFLUENCE CERTAIN
FEDERAL TRANSACTIONS (JAN 1990) (Applies if
this contract exceeds S100,000.)
52.204-2 SECURITY REQUIREMENTS (APR 1984)
52.208-1 REQUIRED SOURCES FOR JEWEL BEARINGS AND
RELATED ITEMS (APR 1984)
52.209-1 QUALIFICATION REQUIREMENTS (OCT 1988)
52.209-6 PROTECTING THE GOVERNMENT'S INTEREST WHEN
SUBCONTRACTING WITH CONTRACTORS DEBARRED,
SUSPENDED, OR PROPOSED FOR DEBARMENT (NOV
1992)
Fixed-Price Supply (Negotiated) 24 January 1994
Updated through FAC 90-18 and DAC 91-5
135
N00024-95-C-2106
FAR
SOURCE TITLE AND DATE
------ --------------
52.210-5 NEW MATERIAL (APR 1984)
52.210-7 USED OR RECONDITIONED MATERIAL, RESIDUAL
INVENTORY, AND FORMER GOVERNMENT SURPLUS
PROPERTY (APR 1984)
52.212-8 DEFENSE PRIORITY AND ALLOCATION REQUIREMENTS (SEP 1990)
52.215-1 EXAMINATION OF RECORDS BY COMPTROLLER GENERAL (FEB 1993)
52.215-2 AUDIT--NEGOTIATION (FEB 1993)
52.215-22 PRICE REDUCTION FOR DEFECTIVE COST OR PRICING
DATA (JAN 1991)
52.215-23 PRICE REDUCTION FOR DEFECTIVE COST OR PRICING DATA--
MODIFICATIONS (DEC 1991)
52.215-24 SUBCONTRACTOR COST OR PRICING DATA (DEC 1991)
52.215-25 SUBCONTRACTOR COST OR PRICING DATA--MODIFICATIONS (DEC 1991)
52.215-26 INTEGRITY OF UNIT PRICES (APR 1991)
52.215-26 INTEGRITY OF UNIT PRICES (APR 1991) AND ALTERNATE I (APR 1991)
and Alt I
52.215-27 TERMINATION OF DEFINED BENEFIT PENSION PLANS (SEP 1989)
52.215-30 FACILITIES CAPITAL COST OF MONEY (SEP 1987)
52.215-33 ORDER OF PRECEDENCE (JAN 1986)
52.215-39 REVERSION OR ADJUSTMENT OF PLANS FOR POST-RETIREMENT BENEFITS
OTHER THAN PENSIONS (PRB) (JUL 1991)
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N00024-95-C-2106
FAR
SOURCE TITLE AND DATE
------ --------------
52.219-8 UTILIZATION OF SMALL BUSINESS CONCERNS AND
SMALL DISADVANTAGED BUSINESS CONCERNS (FEB
1990)
52.219-9 SMALL BUSINESS AND SMALL DISADVANTAGED
BUSINESS SUBCONTRACTING PLAN (JAN 1991)
52.219-13 UTILIZATION OF WOMEN-OWNED SMALL BUSINESSES (AUG 1986)
52.219-16 LIQUIDATED DAMAGES--SMALL BUSINESS
SUBCONTRACTING PLAN (AUG 1989)
52.220-3 UTILIZATION OF LABOR SURPLUS AREA CONCERNS (APR 1984)
52.220-4 LABOR SURPLUS AREA SUBCONTRACTING PROGRAM (APR 1984)
52.222-1 NOTICE TO THE GOVERNMENT OF LABOR DISPUTES (APR 1984)
52.222-3 CONVICT LABOR (APR 1984)
52.222-20 ▇▇▇▇▇-▇▇▇▇▇▇ PUBLIC CONTRACTS ACT (APR 1984)
52 222-26 EQUAL OPPORTUNITY (APR 1984)
52.222-28 EQUAL OPPORTUNITY PREAWARD CLEARANCE OF
SUBCONTRACTS (APR 1984) (Applies if this
contract is $1,000,000 or more.) (As used in
the foregoing clause, the term "Contracting
Officer" shall be deemed to mean the
"Administrative Contracting Officer (ACO)".)
52.222-35 AFFIRMATIVE ACTION FOR SPECIAL DISABLED AND
VIETNAM ERA VETERANS (APR 1984)
52.222-36 AFFIRMATIVE ACTION FOR HANDICAPPED WORKERS
(APR 1984)
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N00024-95-C-2106
FAR
SOURCE TITLE AND DATE
------ --------------
52.222-37 EMPLOYMENT REPORTS ON SPECIAL DISABLED
VETERANS AND VETERANS OF THE VIETNAM ERA (JAN
1988)
52.223-2 CLEAN AIR AND WATER (APR 1984)
52.223-3 HAZARDOUS MATERIAL IDENTIFICATION AND
MATERIAL SAFETY DATA (NOV 1991)
52.223-6 DRUG-FREE WORKPLACE (JUL 1990)
52.225-10 DUTY-FREE ENTRY (APR 1984) (Applies if this
contract exceeds $100,000.)
52.225-11 RESTRICTIONS ON CERTAIN FOREIGN PURCHASES (MAY 1992)
52.226-1 UTILIZATION OF INDIAN ORGANIZATIONS AND
INDIAN-OWNED ECONOMIC ENTERPRISES (AUG 1991)
52.227-1 AUTHORIZATION AND CONSENT (APR 1984)
52.227-2 NOTICE AND ASSISTANCE REGARDING PATENT AND
COPYRIGHT INFRINGEMENT (APR 1984)
52.227-10 FILING OF PATENT APPLICATIONS--CLASSIFIED
SUBJECT MATTER (APR 1984)
52.229-4 FEDERAL, STATE, AND LOCAL TAXES (NON-COMPETITIVE CONTRACTS)
(JAN 1991)
52.229-5 TAXES--CONTRACTS PERFORMED IN U.S. POSSESSIONS OR PUERTO
RICO (APR 1984)
52.230-2 COST ACCOUNTING STANDARDS (AUG 1992)
52.230-4 CONSISTENCY IN COST ACCOUNTING PRACTICES
(AUG 1992)
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N00024-95-C-2106
FAR
SOURCE TITLE AND DATE
------ --------------
52.230-5 ADMINISTRATION OF COST ACCOUNTING STANDARDS
(AUG 1992)
52.232-1 PAYMENTS (APR 1984)
(Not applicable to CLINS 0001 - 0006)
52.232-8 DISCOUNTS FOR PROMPT PAYMENT (APR 1989)
52.232-9 LIMITATION ON WITHHOLDING OF PAYMENTS (APR 1984)
52.232-11 EXTRAS (APR 1984)
52.232-16 PROGRESS PAYMENTS (JUL 1991) (Applies if the
Contractor is other than a Small Business
Concern.) (N/A to CLINs 0001 - 0006)
52.232-17 INTEREST (JAN 1991)
52.232-23 ASSIGNMENT OF CLAIMS (JAN 1986)
52.232-25 PROMPT PAYMENT (MAR 1994)
52.232-28 ELECTRONIC FUNDS TRANSFER PAYMENT METHODS
(APR 1989)
52.233-1 DISPUTES (MAR 1994) AND ALTERNATE I (DEC 1991)
and Alt I
52.233-3 PROTEST AFTER AWARD (AUG 1989)
52.242-1 NOTICE OF INTENT TO DISALLOW COSTS (APR 1984)
52.242-2 PRODUCTION PROGRESS REPORTS (APR 1991)
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N00024-95-C-2106
FAR
SOURCE TITLE AND DATE
------ --------------
52.242-10 F.O.B. ORIGIN--GOVERNMENT BILLS OF LADING OR
PREPAID POSTAGE (APR 1984)
52.242-11 F.O.B. ORIGIN--GOVERNMENT BILLS OF LADING OR
INDICIA MAIL (FEB 1993)
52.242-12 REPORT OF SHIPMENT (REPSHIP) (DEC 1989)
52.242-13 BANKRUPTCY (APR 1991)
52.243-1 CHANGES--FIXED PRICE (AUG 1987)
52.244-1 SUBCONTRACTS (FIXED-PRICE CONTRACTS) (APR
1991)
52.244-5 COMPETITION IN SUBCONTRACTING (APR 1984)
52.246-2 GOVERNMENT PROPERTY (FIXED-PRICE CONTRACTS)
and ALT I (DEC 1989) AND ALTERNATE I (APR 1984)
(DEVIATION) (OCT 1993) (The language "special
tooling accountable to the contract is
subject to the provisions of the special
tooling clause and not the provisions of the
Government Property (Fixed-Price Contracts)
clause" in paragraph 52.245-2(c) is waived
for a period of one year, ending 16 October
1994, or until the FAR is changed, whichever
occurs first.)
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N00024-95-C-2106
FAR
SOURCE TITLE AND DATE
------ --------------
52.246-23 LIMITATION OF LIABILITY (APR 1984)
52.246-24 LIMITATION OF LIABILITY--HIGH VALUE ITEMS (APR 1984)
52.246-25 LIMITATION OF LIABILITY--SERVICES (APR 1984)
52.247-1 COMMERCIAL BILL OF LADING NOTATIONS (APR 1984)
52.247-34 F.O.B. DESTINATION (NOV 1991)
52.247-48 F.O.B. DESTINATION--EVIDENCE OF SHIPMENT (APR 1984)
52.247-54 DIVERSION OF SHIPMENT UNDER F.O.B.
DESTINATION CONTRACTS (MAR 1989)
52.247-63 PREFERENCE FOR U.S.-FLAG AIR CARRIERS (APR 1984)
52.247-64 PREFERENCE FOR PRIVATELY OWNED U.S.-FLAG
and ALT I COMMERCIAL VESSELS (APR 1984) AND ALTERNATE I
(APR 1984)
52.248-1 VALUE ENGINEERING (MAR 1989) (Applies if this
contract equals or exceeds $100,000.)
52.249-2 TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (FIXED PRICE)
(APR 1984) (Applies if this contract exceeds $100,000.)
52.249-8 DEFAULT (FIXED-PRICE SUPPLY AND SERVICE) (APR 1984)
52.250-1 INDEMNIFICATION UNDER PUBLIC LAW 85-804 (APR 1984)
52.251-1 GOVERNMENT SUPPLY SOURCES (APR 1984)
52.253-1 COMPUTER GENERATED FORMS (JAN 1991)
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N00024-95-C-2106
II. DEFENSE FAR SUPPLEMENT (48 CFR CHAPTER 2) CLAUSES:
DFARS SOURCE TITLE AND DATE
------------ --------------
252.203-7000 STATUTORY PROHIBITIONS ON COMPENSATION TO
FORMER DEPARTMENT OF DEFENSE EMPLOYEES (DEC
1991) (Applies if this contract exceeds
$100,000.)
252.203-7001 SPECIAL PROHIBITION ON EMPLOYMENT (APR 1993)
252.203-7002 DISPLAY OF DOD HOTLINE POSTER (DEC 1991)
(Applies if this contract exceeds
$5,000,000.)
252.203-7003 PROHIBITION AGAINST RETALIATORY PERSONNEL
ACTIONS (APR 1992) (Applies if this contract
exceeds $500,000.)
252.204-7000 DISCLOSURE OF INFORMATION (DEC 1991)
252.204-7003 CONTROL OF GOVERNMENT PERSONNEL WORK PRODUCT
(APR 1992)
252.205-7000 PROVISION OF INFORMATION TO COOPERATIVE
AGREEMENT HOLDERS (DEC 1991) (Applies if this
contract exceeds $500,000.)
252.208-7000 INTENT TO FURNISH PRECIOUS METALS AS
GOVERNMENT-FURNISHED MATERIAL (DEC 1991)
252.209-7000 ACQUISITION FROM SUBCONTRACTORS SUBJECT TO
ON-SITE INSPECTION UNDER THE INTERMEDIATE
RANGE NUCLEAR FORCES (INF) TREATY (DEC 1991)
252.210-7003 ACQUISITION STREAMLINING (DEC 1991)
252.215-7000 PRICING ADJUSTMENTS (DEC 1991)
252.215-7001 AVAILABILITY OF CONTRACTOR RECORDS (DEC 1991)
252.215-7002 COST ESTIMATING SYSTEM REQUIREMENTS (DEC
1991)
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N00024-95-C-2106
DFARS SOURCE TITLE AND DATE
------------ --------------
252.219-7003 SMALL BUSINESS AND SMALL DISADVANTAGED
BUSINESS SUBCONTRACTING PLAN (DoD CONTRACTS)
(MAY 1993)
252.219-7005 INCENTIVE FOR SUBCONTRACTING WITH SMALL
BUSINESS AND SMALL DISADVANTAGED
BUSINESS, HISTORICALLY BLACK COLLEGES AND
UNIVERSITIES AND MINORITY INSTITUTIONS
(DEC 1991)
252.219-7008 PILOT MENTOR-PROTEGE PROGRAM (OCT 1992)
252.222-7001 RIGHT OF FIRST REFUSAL OF EMPLOYMENT--CLOSURE
OF MILITARY INSTALLATIONS (APR 1993)
252.223-7004 DRUG-FREE WORK FORCE (SEP 1988)
252.225-7001 BUY AMERICAN ACT AND BALANCE OF PAYMENTS
PROGRAM (JAN 1994)
252.225-7002 QUALIFYING COUNTRY SOURCES AS SUBCONTRACTORS
(DEC 1991)
252.225-7008 SUPPLIES TO BE ACCORDED DUTY-FREE ENTRY (DEC
1991) (Applies when FAR 52.225-10 is
applicable.)
252.225-7009 DUTY-FREE ENTRY--QUALIFYING COUNTRY END
PRODUCTS AND SUPPLIES (DEC 1991)
252.225-7010 DUTY-FREE ENTRY--ADDITIONAL PROVISIONS (DEC
1991)
252.225-7012 PREFERENCE FOR CERTAIN DOMESTIC COMMODITIES
(MAY 1994)
143
N00024-95-C-2106
DFARS SOURCE TITLE AND DATE
------------ --------------
252.225-7014 PREFERENCE FOR DOMESTIC SPECIALTY METALS (DEC
1991)
252.225-7014 PREFERENCE FOR DOMESTIC SPECIALTY METALS (DEC 1991) AND
and Alt I ALTERNATE I (DEC 1991)
252.225-7016 RESTRICTION ON ACQUISITION OF ANTIFRICTION
BEARINGS (APR 1993)
252.225-7017 PREFERENCE FOR UNITED STATES AND CANADIAN VALVES AND MACHINE
TOOLS (APR 1992)
252.225-7019 RESTRICTION ON ACQUISITION OF FOREIGN ANCHOR
AND MOORING CHAIN (DEC 1991)
252.225-7022 RESTRICTION ON ACQUISITION OF POLYACRYL-
ONITRILE (PAN) BASED CARBON FIBER (DEC 1991)
252.225-7025 FOREIGN SOURCE RESTRICTIONS (APR 1993)
252.225-7026 REPORTING OF CONTRACT PERFORMANCE OUTSIDE THE
UNITED STATES (APR 1993) (Applies if this
contract exceeds $500,000 or is modified to
exceed $500,000.)
252.225-7029 RESTRICTION ON ACQUISITION OF AIR CIRCUIT
BREAKERS (DEC 1991)
252.225-7031 SECONDARY ARAB BOYCOTT OF ISRAEL (JUN 1992)
252.225-7032 WAIVER OF UNITED KINGDOM LEVIES (OCT 1992)
252.227-7013 RIGHTS IN TECHNICAL DATA AND COMPUTER
SOFTWARE (OCT 1988)
252.227-7018 RESTRICTIVE MARKINGS ON TECHNICAL DATA (OCT 1988)
252.227-7027 DEFERRED ORDERING OF TECHNICAL DATA AND
COMPUTER SOFTWARE (APR 1988)
144
N00024-95-C-2106
DFARS SOURCE TITLE AND DATE
------------ --------------
252.227-7029 IDENTIFICATION OF TECHNICAL DATA (APR 1988)
252.227-7030 TECHNICAL DATA--WITHHOLDING OF PAYMENT (OCT 1988)
252.227-7031 DATA REQUIREMENTS (OCT 1988)
252.227-7036 CERTIFICATION OF TECHNICAL DATA CONFORMITY (MAY 1987)
252.227-7037 VALIDATION OF RESTRICTIVE MARKINGS ON TECHNICAL DATA (APR 1988)
252.231-7000 SUPPLEMENTAL COST PRINCIPLES (DEC 1991)
252.231-7001 PENALTIES FOR UNALLOWABLE COSTS (MAY 1994)
252.232-7004 DOD PROGRESS PAYMENTS RATES (NOV 1993) Not
applicable to CLINs 0001 - 0006)
252.232-7006 REDUCTION OR SUSPENSION OF CONTRACT PAYMENTS UPON FINDING
OF FRAUD (AUG 1992)
252.233-7000 CERTIFICATION OF CLAIMS AND REQUESTS FOR ADJUSTMENT OR RELIEF
(MAY 1994)
252.234-7001 COST/SCHEDULE CONTROL SYSTEM (DEC 1991)
252.235-7003 FREQUENCY AUTHORIZATION (DEC 1991)
252.239-7000 PROTECTION AGAINST COMPROMISING EMANATIONS (DEC 1991)
252.242-7000 POSTAWARD CONFERENCE (DEC 1991)
252.242-7003 APPLICATION FOR U.S. GOVERNMENT SHIPPING DOCUMENTATION/
INSTRUCTIONS (DEC 1991)
252.242-7004 MATERIAL MANAGEMENT AND ACCOUNTING SYSTEM
(DEC 1991) (Applies if this contract provides progress payments,
unless it is set aside exclusively for a small business or small
disadvantaged business concern.)
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N00024-95-C-2106
DFARS SOURCE TITLE AND DATE
------------ --------------
252.243-7000 ENGINEERING CHANGE PROPOSALS (MAY 1994)
252.243-7001 PRICING OF CONTRACT MODIFICATIONS (DEC 1991)
252.246-7000 MATERIAL INSPECTION AND RECEIVING REPORT (DEC 1991)
252.246-7001 WARRANTY OF DATA (DEC 1991)
252.249-7001 NOTIFICATION OF SUBSTANTIAL IMPACT ON EMPLOYMENT (DEC 1991)
(Applies if this contract equals or exceeds $5 million.)
252.251-7000 ORDERING FROM GOVERNMENT SUPPLY SOURCES (DEC 1991)
--------------------------------------------------------------------------------
146
N00024-95-C-2106
SECTION I-2 - CLAUSES INCORPORATED IN FULL TEXT
FAR 52.203-9 REQUIREMENT FOR CERTIFICATE OF PROCUREMENT INTEGRITY--
MODIFICATION (NOV 1990)
(a) Definitions. The definitions set forth in FAR 3.104-4 are hereby
incorporated in this clause.
(b) The Contractor agrees that it will execute the certification set forth in
paragraph (c) of this clause when requested by the Contracting Officer in
connection with the execution of any modification of this contract.
(c) Certification. As required in paragraph (b) of this clause, the officer or
employee responsible for the modification proposal shall execute the following
certification:
CERTIFICATE OF PROCUREMENT INTEGRITY--MODIFICATION (NOV 1990)
-------------------------------------------------------------
(1) I, _______________________ (Name of certifier), am the officer or
employee responsible for the preparation of this modification proposal and
hereby certify that, to the best of my knowledge and belief, with the exception
of any information described in this certification, I have no information
concerning a violation or possible violation of subsection 27(a), (b), (d), or
(f) of the Office of Federal Procurement Policy Act, as amended* (41 U.S.C.
423), (hereinafter referred to as "the Act"), as implemented in the FAR,
occurring during the conduct of this procurement ____________________ (Contract
and modification number).
(2) As required by subsection 27(e)(1)(B) of the Act, I further certify
that to the best of my knowledge and belief, each officer, employee, agent,
representative, and consultant of _____________________ (Name of Offeror) who
has participated personally and substantially in the preparation or submission
of this proposal has certified that he or she is familiar with, and will comply
with, the requirements of subsection 27(a) of the Act, as implemented in the
FAR, and will report immediately to me any information concerning a violation or
possible violation of subsections 27(a), (b), (d), or (f) of the Act, as
implemented in the FAR, pertaining to this procurement.
147
N00024-95-C-2106
(3) Violations or possible violations: (Continue on plain bond paper if
necessary and label Certificate of Procurement Integrity--Modification
(Continuation Sheet), ENTER "NONE" IF NONE EXISTS)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
(Signature of the officer or employee responsible for the modification proposal
and date)
--------------------------------------------------------------------------------
(Typed name of the officer or employee responsible for the modification
proposal)
*Subsections 27(a), (b), and (d) are effective on December 1, 1990. Subsection
27(f) is effective on June 1, 1991.
THIS CERTIFICATION CONCERNS A MATTER WITHIN THE JURISDICTION OF AN AGENCY OF
THE UNITED STATES AND THE MAKING OF A FALSE, FICTITIOUS, OR FRAUDULENT
CERTIFICATION MAY RENDER THE MAKER SUBJECT TO PROSECUTION UNDER TITLE 18, UNITED
STATES CODE, SECTION 1001.
(End of certification)
(d) In making the certification in paragraph (2) of the certificate, the
officer or employee of the competing Contractor responsible for the offer or
bid, may rely upon a one-time certification from each individual required to
submit a certification to the competing Contractor, supplemented by periodic
training. These certifications shall be obtained at the earliest possible date
after an individual required to certify begins employment or association with
the contractor. If a Contractor decides to rely on a certification executed
prior to the suspension of section 27 (i.e., prior to December 1, 1989), the
Contractor shall ensure that an individual who has so certified is notified that
section 27 has been reinstated. These certifications shall be maintained by the
Contractor for a period
148
N00024-95-C-2106
of 6 years from the date a certifying employee's employment with the company
ends or, for an agency, representative, or consultant, 6 years from the date
such individual ceases to act on behalf of the contractor.
(e) The certification required by paragraph (c) of this clause is a material
representation of fact upon which reliance will be placed in executing this
modification.
FAR 52.216-16 INCENTIVE PRICE REVISION--FIRMS TARGET (FI) (APR 1984)
(DEVIATION -- 16 NOV 1992) (NAVSEA 5252.216-9127)
(Applicable to CLINS 0001 - 0006)
(a) General. The supplies or services identified in Sections B and C are
subject to price revision in accordance with the provisions of this clause;
provided, that in no event shall the total final price of such items exceed the
total ceiling price as set forth in Section B of the contract. Any supplies or
services which are to be ordered separately under, or otherwise added to, this
contract, and which are to be subject to price revision in accordance with the
provisions of this clause, shall be identified as such in a modification to this
contract.
(b) Definition of Cost. For the purposes of this contract, "cost" or "costs"
means allowable cost in accordance with Part 31 of the Federal Acquisition
Regulation (FAR) and Part 231 of the Department of Defense FAR Supplement
(DFARS) as in effect on the date of this contract.
(c) Submission of Data. Within ninety (90) days after the end of the month in
which the Contractor has delivered the last unit of supplies and completed the
services called for by those items referred to in paragraph (a) above, the
Contractor shall submit, on Standard Form (SF) 1411 or other form as the
Contracting Officer may require, (i) a detailed statement of all costs incurred
up to the end of that month in performing all work under such items, (ii) an
estimate of costs of such further performance, if any, as may be necessary to
complete performance of all work with respect to such items, and (iii) a list
identifying to the extent practicable residual inventory and the estimated value
thereof. The detailed statement of all costs incurred shall be decreased by the
net increase in compensation adjustments established in accordance with the
"COMPENSATION ADJUSTMENTS (LABOR AND MATERIAL)" clause or shall be increased by
the net decrease in such compensation adjustments, as the case may be.
149
N00024-95-C-2106
(d) Price Revision. Upon submission of the data required by paragraph (c)
above, the Contractor and the Contracting Officer shall promptly establish the
total final price in accordance with the following:
(1) On the basis of the information required by paragraph (c) above,
together with any other pertinent information, there shall be established by
negotiation the total final cost incurred or to be incurred for the supplies
delivered (or services performed) and accepted by the Government, which are
subject to price revision. The contract may have provisions contained in the
specifications, or other documents incorporated in this contract by reference or
in the Schedule or Contract Clauses hereof designating services to be performed
or materials to be furnished by the Contractor at his expense, or without cost
to the Government, or with costs to be borne by the Contractor. Such costs may
be included in the final negotiated cost of this contract, provided, however,
that after the total final price has been established in accordance with this
clause, such services shall be performed and such materials shall be furnished
at no increase in said total final price.
(i) The "COMPENSATION ADJUSTMENTS (LABOR AND MATERIAL)" clause.
(ii) Any other provision of this contract which provides for an amount
to be reimbursed or paid to the Contractor by the Government or to be refunded
or paid by the Contractor to the Government, other than through an adjustment of
the contract price, including the following:
(A) Paragraphs (b), (c), and (e) of the clause of this contract
entitled "INSURANCE-PROPERTY LOSS OR DAMAGE-LIABILITY TO THIRD PERSONS".
(B) The clause of this contract entitled "ADDITIONAL INSURANCE
PROVISIONS".
(C) The clause of this contract entitled "Indemnification under
Public Law 85-804 (FAR 52.250-1)".
(2) The total final price shall be established by adjusting the total
final negotiated cost by an amount for profit or loss determined as follows:
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N00024-95-C-2106
WHEN THE TOTAL FINAL THE AMOUNT FOR PROFIT
NEGOTIATED COST IS: OR LOSS IS:
Equal to the total target cost------ Total target profit.
Greater than the total target cost-- Total target profit less twenty percent
(20%) of the amount by which the total
final negotiated cost exceeds the total
target cost.
Less than the total target cost----- Total target profit plus twenty percent
(20%) of the amount by which the total
final negotiated cost is less than the
total target cost.
(3) The total final price of the items referred to in paragraph (a)
above shall be evidenced by a modification to this contract signed by the
Contractor and the Contracting Officer. Such price shall not be subject to
revision notwithstanding any changes in the cost of performing the contract,
with the following exceptions:
(i) insofar as the parties may agree in writing, prior to the
determination of the total final price, (A) to exclude any specific elements of
cost from the total final price and (B) to a procedure to provide subsequent
disposition of such elements; and
(ii) to the extent any adjustment or credit is explicitly permitted or
required by this or any other clause of this contract.
(e) Subcontracts. No subcontract placed under this contract shall provide for
payment on a cost-plus-a-percentage-of-cost basis.
(f) Disagreements. If the Contractor and the Contracting Officer fail to agree
upon the total final price within sixty (60) days after the date on which the
data required by (c) above are to be submitted, or within such further time as
may be specified by the Contracting Officer, such failure to agree shall be
deemed to be a dispute within the meaning of the "DISPUTES" clause of this
contract and the Contracting Officer shall promptly issue a decision thereunder.
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(g) Termination. If this contract is terminated prior to establishment of the
total final price, prices of supplies or services subject to price revision
under this clause shall be established pursuant to this clause for (i) completed
supplies accepted by the Government and services performed and accepted by the
Government, and (ii) in the event of a partial termination, supplies and
services which are not terminated. The termination shall be otherwise
accomplished pursuant to other applicable clauses of this contract.
(h) Equitable Adjustment Under Other Clauses. If an equitable adjustment in the
contract price is made under any other clause of this contract before the total
final price is established, the adjustment shall be made in the total target
cost and may be made in the ceiling price, the total target profit or both. If
such an adjustment is made after the total final price is established,
adjustment shall be made only in the total final price.
(i) Exclusion From Target Price and Total Final Price. Whenever any clause of
this contract provides that the contract price does not or will not include an
amount for a specific purpose, such provision shall mean that neither any target
price nor the total final price includes or will include any amount for such
purpose.
(j) Separate Reimbursement. The cost of performance of an obligation that any
clause of this contract expressly provides is at Government expense shall not be
included in any target price or in the total final price, but shall be
reimbursed separately.
(k) Taxes. As used in the "FEDERAL, STATE, AND LOCAL TAXES" clause of this
contract or any other clause of this contract that provides for certain taxes
or duties to be included in, or excluded from, the contract price, the term
"contract price" includes the total target price, or if it has been established,
the total final price. When a provision in such clause requires that the
contract price be increased or decreased as a result of changes in the
obligation of the Contractor to pay or bear the burden of certain taxes or
duties, such increase or decrease shall be made in the total target price and,
in the same amount, the ceiling price or, if it has been established, in the
total final price, so as not to affect the Contractor's profit or loss on this
contract.
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FAR 52.225-17 BUY AMERICAN ACT--SUPPLIES UNDER EUROPEAN
COMMUNITY AGREEMENT (JAN 1994)
(This clause applies if this contract exceeds $182,000.)
(a) Definitions. As used in this clause--
"Components" means those articles, materials, and supplies incorporated
directly into the end products.
"Domestic end product" means (1) an unmanufactured end product mined or
produced in the United States, if the cost of its components mined, produced,
or manufactured in the United States exceeds 50 percent of the cost of all its
components. Components of foreign origin of the same class or kind as the
products referred to in subparagraphs (c)(2) or (3) of this clause shall be
treated as domestic. Scrap generated, collected, and prepared for processing
in the United States is considered domestic.
"End products" means those articles, materials, and supplies to be acquired
for public use under this contract.
"European Community (EC) country" means Belgium, Denmark, Federal Republic
of Germany, France, Greece, Ireland, Italy, Luxembourg, the Netherlands,
Portugal, Spain, and the United Kingdom.
"EC end product" means an article that (a) is wholly the growth, product,
or manufacture of an EC country, (b) in the case of an article which consists in
whole or in part of materials from another country or instrumentality has been
substantially transformed into a new and different article of commerce with a
name, character, or use distinct from that of the article or articles from it
was so transformed. The term includes services (except transportation services)
incidental to its supply; provided that the value of those incidental services
does not exceed that of the product itself. It does not include service
contracts as such.
(b) The Buy American Act (41 U.S.C. 10) provides that the Government give
preference to domestic end products. In addition, the Memorandum of
Understanding between the United States and the European Community on Government
Procurement provides that offers of EC end products will be evaluated without
regard to the Buy American Act.
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(c) The Contractor shall deliver only domestic end products or EC end products,
except those--
(1) For use outside the United States;
(2) That the government determines are not mined, produced, or
manufactured in the United States in sufficient, and reasonably available
commercial quantities of a satisfactory quality;
(3) For which the agency determines that domestic preference would be
inconsistent with the public interest; or
(4) For which the agency determines the cost to be unreasonable (see
section 25.105 of the Federal Acquisition Regulation).
(d) If this contract contains the clause at 52.225-21, Buy American Act--North
American Free Trade Agreement (NAFTA) Implementation Act--Balance of Payments
Program, the Contractor may deliver NAFTA country end products, notwithstanding
the prohibition in paragraph (c).
FAR 52.246-2 INSPECTION OF SUPPLIES--FIXED PRICE (FT) (JUL 1985)
-- ALTERNATE I (JUL 1985) (DEVIATION 89-915 - 29 JUN 1989)
(Applicable to CLIN 0001 through CLIN 0006)
(a) All "supplies" (which term when used throughout this clause includes
without limitation raw materials, components, intermediate assemblies, and end
products) shall be subject to inspection and test by the Government, to the
extent practicable at all times and places including the period of manufacture
or construction, and in any event prior to final acceptance of the vessel(s).
(b) Supplies rejected prior to Preliminary Acceptance as not conforming to this
contract, and any Contractor responsible defects discovered during the guaranty
period shall, at the election of the Department be replaced or corrected either
by the Department or by the Contractor. The Department will, whenever
practicable, afford the Contractor an opportunity to examine the defective
supplies before they are replaced or corrected. Supplies or lots of supplies
which have been rejected or required to be corrected shall be removed, if
permitted or required by the Contracting Officer, or corrected in place by and
at the expense of the Contractor promptly after notice, and shall not thereafter
be tendered for acceptance unless the former rejection or requirement of
correction is disclosed. Prior to the establishment of the total final price,
the cost of replacement or correction shall be considered as a cost incurred,
or to be
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incurred, for the purpose of negotiating the total final negotiated cost under
the "INCENTIVE PRICE REVISION--FIRM TARGET (FI) (APR 1984) (DEVIATION - 16 NOV
1992) (NAVSEA 5252.216-9127)" (FAR 52.216-16), if applicable, clause of this
contract. After the establishment of the total final price, all replacements or
corrections made by the Contractor shall be accomplished at no increase in the
total final price. If the Contractor fails either promptly to remove such
supplies or lots of supplies which are required to be removed, or promptly to
replace or correct such supplies or lots of supplies, the Government either
(i) may by contract or otherwise replace or correct such supplies, and
equitably reduce any target price, or, if it is established, the total
final price of this contract; or (ii) may terminate this contract for
default as provided in the clause of this contract entitled "DEFAULT
(FIXED-PRICE SUPPLY AND SERVICE)" (FAR 52.249-8). Unless the Contractor
corrects or replaces such supplies within the required delivery schedule,
the Contracting Officer may require the delivery of such supplies, and
equitably reduce any target price or, if it is established, the total final
price of this contract. Failure to agree to such equitable reduction shall
be a dispute within the meaning of the clause of this contract entitled
"DISPUTES" (FAR 52.233-1).
(c) The cost of any replacement or correction for which the Contractor is
responsible shall be borne by the Contractor, except that the liability of the
Contractor for the correction of defects discovered during the guaranty period
(other than defects resulting from fraud or such gross mistakes as amount to
fraud) shall be limited as set forth in the requirement entitled "LIMITATION OF
CONTRACTOR'S LIABILITY FOR CORRECTION OF DEFECTS". An increase in the contract
price on account of any replacement or correction for which the Contractor is
not responsible shall be determined pursuant to the requirement of this contract
entitled "CHANGES".
(d) If any inspection or test is made by the Government on the premises of the
Contractor or a subcontractor, the Contractor, without additional charge, shall
provide all reasonable facilities and assistance for the safety and convenience
of the Government inspectors in the performance of their duties. If Government
inspection or test is made at a point other than the premises of the Contractor
or a subcontractor, it shall be at the expense of the Government except as
otherwise provided in the contract; provided, that in case of rejection the
Government shall not be liable for any reduction in value of samples used in
connection with such inspection or test. All inspections and
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tests by the Government shall be performed in such a manner as not to unduly
delay the work. The Government reserves the right to charge to the Contractor
any additional cost of Government inspection and test when supplies are not
ready at the time such inspection and test is required by the Contractor or when
reinspection or retest is necessitated by prior rejection. Failure to inspect
and accept or reject supplies shall neither relieve the Contractor from
responsibility for such supplies as are not in accordance with the contract
requirements nor impose liability on the Government therefor.
(e) The inspection and test by the Government of any supplies or lots thereof
does not relieve the Contractor from any responsibility regarding defects or
other failures to meet the contract requirements which may be discovered prior
to final acceptance. Final acceptance shall be conclusive except for fraud or
gross mistakes amounting to fraud.
(f) The Contractor shall provide and maintain an inspection system acceptable to
the Government prior to start of construction and which shall be in effect at
the start of each phase of the construction of each vessel. Records of all
inspection work by the Contractor shall be kept complete and available to the
Government during the performance of this contract and for such longer period as
may be specified elsewhere in this contract.
(g) The Commander, Naval Sea Systems Command shall determine the responsibility
of the Contractor under this clause.
FAR 52.246-18 WARRANTY OF SUPPLIES OF A COMPLEX NATURE (APR 1984) (NAVSEA
VARIATION) (MAY 1993)
(Applicable to CLIN 0007)
(a) Definitions. As used in this clause:
(1) Design and manufacturing requirements" include drawings,
specifications, statements of work, structural and engineering plans, and
manufacturing particulars, including precise measurements, tolerances,
processes, materials, and finished product tests;
(2) "Essential performance requirements" means the operating capabilities
and maintenance and reliability characteristics specified in the specification
and/or statement of work; "essential performance requirements" does not include
performance characteristics that are described as goals or objectives;
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(3) "Alternate source contractor" means a contractor which did not develop
the portion of the design requiring redesign;
(4) A unit shall be considered to have been "manufactured" when it has been
accepted by the Government (either finally or conditionally); and
(5) "At no additional cost to the United States" means at no increase in
target price or ceiling price.
(b) Notwithstanding inspection and/or acceptance by the Government of the
supplies furnished under this contract, any term or condition of this contract
concerning the conclusiveness thereof, or any other term or condition of this
contract, the Contractor warrants:
(1) That line item(s) 0007 will conform to the design and manufacturing
requirements of the contract;
(2) That line item(s) 0007 at the time of acceptance by the Government,
will be free from all defects in materials and workmanship; and
(3) That line item(s) 0007 will conform to the essential performance
requirements of the contract; provided, however, that with respect to
Government-furnished property, the Contractor's above-stated warranties shall
extend only to its proper installation, unless the Contractor performs some
modification or other work on such property, in which case the Contractor's
warranties shall extend to such modification or other work.
(c) The Contractor shall not be responsible under these warranties for any
failure of line item(s) to meet the conditions specified in (b)(1), (b)(2) or
(b)(3), above, which is discovered more than Two Years from the date of
acceptance. In determining whether the failure was discovered prior to the
expiration of the specified period, conditional acceptance shall not be
considered to be acceptance. Rather, conditionally accepted supplies shall be
considered to have been accepted as of the date the Contractor is notified by
the Contracting Officer, in writing, that the condition has been satisfied or
waived.
(d) Notwithstanding any other term or condition contained in this contract, in
the event of a failure to comply with any of the warranties provided herein, the
Contractor shall, at the election of the Government:
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(1) Promptly take such action as may be necessary (e.g., repair, replace
and/or redesign) to correct or, if so directed by the Government, partially
correct the defect responsible for the failure at no additional cost to the
United States. However, for alternate source contractors, redesign shall not be
a remedy available to the Government if the alternate source contractor has not
manufactured, at the time of agreement on the price of line item(s), the first
ten percent of the eventual total production quantity anticipated to be acquired
from that alternate source contractor;
(2) Pay costs reasonably incurred by the United States in takinq such
corrective action; or
(3) Provide an equitable adjustment in target price and ceiling price in
lieu of full correction of the failure.
(e) In seeking the remedies specified in (d)(1), (d)(2) or (d)(3) above, the
Government may elect to exercise any one or combination of the specified
remedies.
(f) Any supplies or parts thereof corrected or furnished in replacement shall be
subject to the conditions of this clause to the same extent as supplies
initially delivered. This warranty shall be equal in duration to that set forth
in paragraph (c) of this clause and shall run from the date of final acceptance
of the corrected or replaced supplies.
(g) The Contractor shall prepare and furnish to the Government data and reports
applicable to any correction required under this clause (including the revision
and updating of all affected data called for under this contract) at no
additional cost to the United States. If the Contractor fails to prepare and
furnish such data and/or reports or should the Government elect not to secure
such data from the Contractor or another source, the Contractor shall pay costs
reasonably incurred by the Government in acquiring such data and/or reports, or
the Government shall be entitled to an equitable adjustment in target price and
ceiling price.
(h) When items covered by these warranties are returned to the Contractor
pursuant to this clause, the Contractor shall pay the transportation costs and
bear the risk of loss or damage from the place of delivery specified in the
contract (irrespective of the f.o.b. point or point of acceptance) to the
Contractor's plant and return to said place of delivery.
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(i) The Contractor shall be notified in writing of any breach of the warranties
set forth in paragraph (a) above within 60 days after discovery of the breach.
The failure of the Contracting Officer to provide timely notice of the breach,
however, shall not diminish the rights the Government would otherwise have under
this clause or any other term or condition of this contract.
(j) Notwithstanding any disagreement regarding the existence of a warranty
breach, the Contractor shall promptly comply with any partial corrective action.
In the event it is later determined that there was no warranty breach, the
target price and ceiling price shall be equitably adjusted.
(k) The warranty provisions herein of this clause do not cover combat damage,
liability for loss, damage, or injury to third parties, or consequential
damages.
(l) The rights and remedies of the Government provided in this clause are in
addition to and do not limit any rights the Government may have under any other
requirement of the contract. Disputes arising under this clause will be resolved
in accordance with the clause entitled "DISPUTES" (FAR 52.233-1).
(m) The failure of the Government to assert its right under this clause with
respect to any particular breach or breaches of a warranty provided herein shall
not waive or otherwise diminish the Government's rights with respect to any
subsequent breach of a warranty.
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FAR 52.249-8 DEFAULT (FIXED-PRICE SUPPLY AND SERVICE) (FT)
(APR 1984) (DEVIATION 89-915 - 29 JUN 1989)
Modify the clause as follows:
(a) Wherever the word 'supplies' is used, it shall include 'vessels'.
(b) At the end of paragraph (b), add the following:
'In addition to its other remedies, the Government may, with respect to
work terminated as permitted in this clause, proceed with the completion of
the vessels and supplies at such plant or plants, including that of the
Contractor, as may be designated by the Contracting Officer. If the vessels
are to be completed at the Contractor's plant, the Government may use all
tools, machinery, facilities and equipment of the Contractor determined by
the Contracting Officer to be necessary for that purpose. If the cost to
the Government of the vessels and supplies therefor so procured or
completed (after adjusting such cost to exclude the effect of changes in
the plans and specifications made subsequent to the date of termination)
exceeds the price fixed for such vessels and supplies under this contract
(after adjusting such price on account of changes in the plans and
specifications made prior to the date of termination) the Contractor, or
its surety, if any, shall be liable for such excess.'
(c) In the first sentence of paragraph (c), after the word 'costs', insert the
phrase 'or other damages'.
(d) In the first sentence of paragraph (e), after the word 'title', insert the
phrase '(insofar as not previously transferred)'."
FAR 52.252-2 CLAUSES INCORPORATED BY REFERENCE (JUN 1988)
This contract incorporates one or more clauses by reference, with the
same force and effect as if they were given in full text. Upon request, the
Contracting Officer will make their full text available.
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FAR 52.252-6 AUTHORIZED DEVIATIONS IN CLAUSES (APR 1984)
(a) The use in this solicitation or contract of any Federal Acquisition
Regulation (48 CFR Chapter 1) clause with an authorized deviation is indicated
by the addition of "(DEVIATION)" after the date of the clause.
(b) The use in this solicitation or contract of any Defense FAR Supplement (48
CFR Chapter 2) clause with an authorized deviation is indicated by the addition
of "(DEVIATION)" after the name of the regulation.
DFARS 252.225-7008 SUPPLIES TO BE ACQUIRED DUTY-FREE ENTRY (DEC 1991)
In accordance with paragraph (a) of the Duty-Free Entry clause and/or paragraph
(b) of the Duty-Free Entry--Qualifying Country End Products and supplies clause
of this contract, the following supplies are accorded duty-free entry:
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DFARS 252.242-7001 CERTIFICATION OF INDIRECT COSTS (DEC 1991)
(a) The Contractor shall--
(1) Certify any proposal to establish or modify billing rates or to
establish final indirect cost rates;
(2) Use the format set forth in paragraph (c) of this clause to certify;
and
(3) Have the certificate signed by an individual of the Contractor's
organization at a level no lower than a vice president or chief financial
officer of the business segment of the Contractor that submits the proposal.
(b) Failure by the Contractor to submit a signed certificate, as described in
this clause, shall result in payment of indirect cost at rates unilaterally
established by the Government.
(c) The certificate of indirect costs shall read as follows:
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CERTIFICATE OF INDIRECT COSTS
This is to certify that to the best of my knowledge and belief:
1. I have reviewed this indirect cost proposal;
2. All costs included in this proposal (identify date) to establish
billing or final indirect cost rates for (identify period covered by rate) are
allowable in accordance with the requirements of contracts to which they apply
and with the cost principles of the Department of Defense applicable to those
contracts;
3. This proposal does not include any costs which are unallowable under
applicable cost principles of the Department of Defense, such as (without
limitation): advertising and public relations costs, contributions and
donations, entertainment costs, fines and penalties, lobbying costs, defense of
fraud proceedings, and goodwill; and
4. All costs included in this proposal are properly allocable to Defense
contracts on the basis of a beneficial or causal relationship between the
expenses incurred and the contracts to which they are allocated in accordance
with applicable acquisition regulations.
I declare under penalty or perjury that the foregoing is true and correct.
Firm:
-----------------------------------------
Signature:
-----------------------------------------
Name of Corporate Official:
-----------------------------------------
Title:
-----------------------------------------
Date of Execution:
-----------------------------------------
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DFARS 252.247-7023 TRANSPORTATION OF SUPPLIES BY SEA (DEC 1991)
(a) Definitions. As used in this clause--
(1) "Components" means articles, materials, and supplies incorporated
directly into end products at any level of manufacture, fabrication or assembly
by the Contractor or any subcontractor.
(2) "Department of Defense" (DoD) means the Army, Navy, Air
Force, Marine Corps, and defense agencies.
(3) "Foreign flag vessel" means any vessel that is not a U.S.-
flag vessel.
(4) "Ocean transportation" means any transportation aboard a ship,
vessel, boat barge, or ferry through international waters.
(5) "Subcontractor" means a supplier, materialman, distributor, or
vendor at any level below the prime contractor whose contractual obligation to
perform results from, or is conditioned upon, award of the price contract and
who is performing any part of the work or other requirement of the prime
contract.
(6) "Supplies" means all property, except land and interests in land,
that is clearly identifiable for eventual use by or owned by the DoD at the time
of transportation by sea.
(i) An item is clearly identifiable or eventual use by the DoD if, for
example, the contract documentation contains a reference to a DoD contract
number or a military destination.
(ii) "Supplies" include (but is not limited to) public works,
buildings and facilities; ships; floating equipment and vessels of every
character, type, and description, with parts, subassemblies, accessories, and
equipment; machine tools, material; equipment; stores of all kinds; end items;
construction materials; and the components of the foregoing.
(7) "U.S.-flag vessel" means a vessel of the United States or belonging to
the United States, including any vessel registered or having national status
under the laws of the United States.
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(b) The Contractor shall employ U.S.-flag vessels in the transportation by sea
of any supplies to be furnished in the performance of this contract. The
Contractor and its subcontractors may request that the Contracting Officer
authorize shipment in foreign-flag vessels, or designate available U.S.-flag
vessels, if the Contractor or a subcontractor believes that--
(1) U.S.-flag vessels are not available for timely shipment;
(2) The freight charges are excessive or unreasonable; or
(3) Freight charges are higher than charges to private persons for
transportation of like goods.
(c) The Contractor must submit any request for use of other than U.S.-flag
vessels in writing to the Contracting Officer at least 45 days prior to the
sailing date necessary to meet its delivery schedule. The Contracting Officer
will process requests submitted after such date(s) as expeditiously as possible,
but the Contracting Officer's failure to grant approvals to meet the shipper's
sailing date will not of itself constitute a compensable delay under this or any
other clause of this contract. Requests shall contain a minimum--
(1) Type, weight, and cube of cargo;
(2) Required shipping date;
(3) Special handling and discharge requirements;
(4) Loading and discharge points;
(5) Name of ▇▇▇▇▇▇▇ and consignee;
(6) Prime contract number; and
(7) A documented description of efforts made to secure U.S.-flag vessels,
including points of contact (with names and telephone numbers) with at least two
(2) U.S.-flag carriers contacted. Copies of telephone notes, telegraphic and
facsimile messages or letters will be sufficient for this purpose.
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(d) The Contractor shall, within thirty (30) days after Shipment covered by
this clause, provide the Contracting Officer and the Division of National Cargo,
Office of Market Development, Maritime Administration, U.S. Department of
Transportation, Washington, DC 20590, one copy of the rated on board vessel
operating carrier's ocean bill of lading, which shall contain the following
information--
(1) Prime contract number;
(2) Name of vessel;
(3) Vessel flag of registry;
(4) Date of loading;
(5) Port of loading;
(6) Port of final discharge;
(7) Description of commodity;
(8) Gross weight in pounds and cubic feet if available;
(9) Total ocean freight in U.S. dollars; and
(10) Name of the steamship company.
(e) The Contractor agrees to provide with its final invoice under this contract
a representation that to the best of its knowledge and belief--
(1) No ocean transportation was used in the performance of this contract:
(2) Ocean transportation was used and only U.S.-flag vessels were used for
all ocean shipments under this contract;
(3) Ocean transportation was used, and the Contractor had the written
consent of the Contracting Officer for all non-U.S.-flag ocean transportation;
or
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(4) Ocean transportation was used and some or all of the shipments were
made on non-U.S.-flag vessels without the written consent of the Contracting
Officer. The Contractor shall describe these shipments in the following form:
ITEM CONTRACT
DESCRIPTION LINE ITEMS QUANTITY
Total
(f) If the final invoice does not include the required representation, the
Government will reject and return it to the Contractor as an improper invoice
for the purposes of the Prompt Payment clause of this contract. In the event
there has been unauthorized use of non-U.S.-flag vessels in the performance of
this contract, the Contracting Officer is entitled to equitably adjust the
contract, based on the unauthorized use.
(g) The Contractor shall include this clause, including this paragraph (g), in
all subcontracts under this contract, which exceed the small purchase limitation
of section 13.000 of the Federal Acquisition Regulation.
FAR 8UPP 252.247-7024 NOTIFICATION OF TRANSPORTATION OF SUPPLIES BY SEA (DEC
1991)
(a) The Contractor has indicated by the response to the solicitation provision,
Representation of Extent of Transportation by Sea, that it did not anticipate
transporting by sea any supplies. If, however, after the award of this contract,
the Contractor learns that supplies, as defined in the Transportation of
Supplies by Sea clause of this contract, will be transported by sea, the
Contractor--
(1) Shall notify the Contracting Officer of that fact; and
(2) ▇▇▇▇▇▇ agrees to comply with all the terms and conditions of the
Transportation of Supplies by Sea clause of this contract.
(b) The Contractor shall include this clause, including this paragraph (b),
revised as necessary to reflect the relationship of the contracting parties, in
all subcontracts hereunder.
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DFARS 252.249-7002 NOTIFICATION OF PROPOSED PROGRAM TERMINATION OR REDUCTION
(AUG 1993)
(a) Within two weeks after the Government notifies the Contractor that this
contract may be adversely affected by a program termination or reduction, the
Contractor shall provide notice of such proposed termination or reduction to--
(1) Each representative of the Contractor's employees whose work is
directly related to the contract; or
(2) If there is no such representative at that time, each such employee;
(3) The State dislocated worker unit or office described in Section
311(b)(2) of the Job Training Partnership Act (29 U.S.C. 1661(b)(2)) and the
chief elected official of the unit or general local government within which the
adverse effect may occur; and
(4) Each affected subcontractor.
(b) If the proposed program termination or reduction is likely to result in
plant closure or mass layoff, the notice provided an employee under paragraph
(a) of this clause shall have the same effect as a notice of termination to the
employee for the purposes of determining whether such employee is eligible for
training, adjustment assistance, and employment services under section 325 or
325A of the Job Training Partnership Act. If the Contractor has specified that
the proposed program termination or reduction is not likely to result in plant
closure or mass layoff, the employee shall only be eligible to receive services
under section 314(b) and paragraphs (1) through (14), (16), and (18) of section
314(c) of the Job Training Partnership Act.
(c) If the Government subsequently withdraws a notice issued in accordance with
paragraph (a) of this clause, the Contractor within two weeks after receipt of
the withdrawal notice shall provide notice of the withdrawal to--
(1) The representatives, employees, offices, officials, and subcontractors
specified in paragraph (a) of this clause; and
(2) Each grantee under section 325 or 325(A) of the Job Training
Partnership Act, as the case may be, providing training, adjustment assistance,
and employment services to each employee described in this paragraph.
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(d) An employee who receives notice of withdrawal shall not be eligible for
training, adjustment assistance, and employment services under section 325 of
the Job Training Partnership Act, or section 325A of such Act, as the case may
be, beginning on the date the employee receives such notice.
(e) The Contractor shall insert the substance of this clause in all
subcontracts of $500,000 or more.
NAPS 5252.243-9001 REQUIREMENTS FOR ADEQUATE SUPPORTING DATA AND CERTIFICATION
OF ANY CLAIM, REQUEST FOR EQUITABLE ADJUSTMENT, OR DEMAND FOR PAYMENT (NOV 1991)
(a) This contract is subject to 10 U.S.C. 2405; therefore, no price adjustment
will be made under this contract for an amount set forth in a claim, request for
equitable adjustment, or demand for payment (or incurred due to the preparation,
submission, or adjudication of any such claim, request, or demand) arising out
of events occurring more than six (6) years before the submission of the claim,
request, or demand.
(b) A claim, request for equitable adjustment, or demand for payment is
considered to be submitted on the date the contractor's submission is received
by the contracting officer accompanied by adequate supporting data for the
claim, request or demand, and the certification required by Section 6(c)(1) of
the Contract Disputes Act, if the claim, request or demand is over $50,000.
(c) Adequate supporting data includes data which is adequate to apprise the
contracting officer of the underlying facts and the theory upon which the
contractor relies in support of its entitlement--to a price adjustment. Adequate
supporting data is that data which fulfills these purposes in accordance with
the requirements of the Contract Disputes Act. A submission containing the
following information will be deemed to have been submitted with adequate
supporting data:
(1) A narrative statement of the nature of the event(s), the time when the
event(s) occurred (including the factual basis supporting the contractor's
designation of the time the event(s) occurred), and the causal relationship
between the event(s) and the impact on the cost of performance of the contract,
including a description of how the event(s) affected scheduled performance;
(2) A description of the relevant effort the contractor was required to
perform in the absence of the event(s);
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(3) A description of the relevant effort the contractor was actually
required or will be required to perform;
(4) A description of components, equipment, and other property involved;
(5) A cost breakdown of the additional effort by element in accordance
with the contractor's normal procedures for pricing of changes;
(6) A description of all property which will no longer be needed by the
contractor;
(7) A description of any delay caused by the event(s);
(8) A description of any disruption caused by the event(s).
(d) Certification of the claim, request for equitable adjustment, or demand for
payment is required if the requested price adjustment is over $50,000. The
certification requirements are those set forth in the CDA and implementing
regulations.
(e) For the purpose of this clause, the following terms have the meanings set
forth below.
(1) "Claim" means a written demand or written assertion by the contractor
seeking, as a matter of right, a price adjustment under the contract. The theory
upon which the contractor seeks the price adjustment does not determine whether
a particular matter is a claim. The term includes a submission asserting any
theory supporting a price adjustment, including but not limited to constructive
change, breach of contract or mistake, which, if valid, would result in
contractor entitlement to a price adjustment. A voucher, invoice or other
routine request for payment that is not in dispute when submitted is not a
claim. A claim does not include a request for equitable adjustment or demand for
payment as defined below.
(2) "Demand for payment" means a written demand for payment, the granting
of which results in a price adjustment under the contract. A demand for payment
does not include a routine request for payment in accordance with the payment
terms of the contract.
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(3) "Events" means the Government action(s), Government inaction(s),
Government conduct, or occurrence(s) which give rise to the contractor's claim,
request for equitable adjustment, or demand for payment. The term events does
not require the incurrence of costs and/or performance of additional work
resulting from the action(s), inaction(s), conduct or occurrence(s) except where
a contractor's commencement of the correction of defective GFI/GFP constitutes
the final occurrence. For the purpose of this subpart, the date of the final
Government action, Government inaction, Government conduct or occurrence is the
date on which the six year period commences.
(4) "Know or should have known" includes the totality of the combined
actual and constructive knowledge of all agents or employees (including a
subcontractor, its agents and employees, where and to the extent a subcontractor
is involved).
(5) "Price adjustment" means an increase in the fixed price, target price,
ceiling price, or final price of a fixed price type contract, or an increase in
the fee structure of a cost reimbursement type contract, or monetary damages or
other payment resulting from a contractor claim, request for equitable
adjustment, or demand for payment. An adjustment to the sharing ratio or to any
other pricing formula, procedure or provision, which has the effect of
increasing the fixed price, target price, ceiling price, final price, or fee of
the contract, is a price adjustment. A schedule adjustment, whether requested as
part of a submission seeking a price adjustment or as the sole relief, or an
adjustment for any matter which, pursuant to the terms of the contract is
separate from or not included in the fixed price contract or the fee structure
of a cost reimbursement contract, is not a price adjustment. The bilateral
definitization of a maximum-price modification within the maximum price is not a
price adjustment. A routine invoice or other request for payment or
reimbursement in accordance with the terms of the contract, even if in dispute,
which, if paid, would not result in an increase in the price of the contract is
not a price adjustment. For the purpose of this subpart, relief granted pursuant
to a request for extraordinary contractual relief under Public Law 85-804 does
not constitute a price adjustment.
(6) "Request for equitable adjustment" means a written request for a price
adjustment under the contract.
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FAR 52.223-3 HAZARDOUS MATERIAL IDENTIFICATION AND MATERIAL
SAFETY DATA (NOV 1991)
(a) "Hazardous material", as used in this clause, includes any material defined
as hazardous under the latest version of Federal Standard No. 313 (including
revisions adopted during the term of the contract).
(b) The offeror must list any hazardous material, as defined in paragraph (a) of
this clause, to be delivered under this contract. The hazardous material shall
be properly identified and include any applicable identification number, such as
National Stock Number or Special Item Number. This information shall also be
included on the Material Safety Data Sheet submitted under this contract.
Material Identification No.
(If none, insert "None")
------------------------ ---------------------
------------------------ ---------------------
------------------------ ---------------------
(c) The apparently successful offeror, by acceptance of the contract, certifies
that the list in paragraph (b) of this clause is complete. This list must be
updated during performance of the contract whenever the Contractor determines
that any other material to be delivered under this contract is hazardous.
(d) The apparently successful offeror agrees to submit, for each item as
required prior to award, a Material Safety Data Sheet, meeting the requirements
of 29 CFR 1910.1200(g) and the latest version of Federal Standard No. 313,
whether or not the apparently successful offeror is the actual manufacturer of
these items. Failure to submit the Material Safety Data Sheet prior to award may
result in the apparently successful offeror being considered nonresponsible and
ineligible for award.
(e) If, after award, there is a change in the composition of the items(s) or a
revision to Federal Standard No. 313, which renders incomplete or inaccurate the
data submitted under paragraph (d) of this clause or the certification submitted
under paragraph (c) of this clause, the Contractor shall promptly notify the
Contracting Officer and resubmit the data.
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(f) Neither the requirements of this clause nor any act or failure to act by the
Government shall relieve the Contractor of any responsibility or liability for
the safety of Government, Contractor, or subcontractor personnel or property.
(g) Nothing contained in this clause shall relieve the Contractor from complying
with applicable Federal, State, and local laws, codes, ordinances, and
regulations (including the obtaining of licenses and permits) in connection with
hazardous material.
(h) The Government's rights in data furnished under this contract with respect
to hazardous material are as follows:
(1) To use, duplicate and disclose any data to which this clause is
applicable. The purposes of this right are to--
(i) Apprise personnel of the hazards to which they may be exposed in
using, handling, packaging, transporting, or disposing of hazardous materials;
(ii) Obtain medical treatment for those affected by the material; and
(iii) Have others use, duplicate, and disclose the data for the
Government for these purposes.
(2) To use, duplicate, and disclose data furnished under this clause,
in accordance with subparagraph (h)(1) of this clause, in precedence over any
other clause of this contract providing for rights in data.
(3) The Government is not precluded from using similar or identical data
acquired from other sources.
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SECTION I-3 ALTERATIONS IN CONTRACT (APR 1984)(FAR 52.252-4)
Portions of this contract are altered as follows:
A. FAR (48 CFR Chapter I) CLAUSES are altered as follows:
1. Clause 52.248-1 entitled "VALUE ENGINEERING": is modified by adding the
following paragraph:
"(n) This clause does not apply to any work under this contract in connection
with the nuclear propulsion plant, its associated components and systems which
are under the technical cognizance of NAVSEA Code 08."
2. Clause 52.250-1, entitled "INDEMNIFICATION UNDER PUBLIC LAW 85-804 (APR
1984)", add the following paragraph:
"(i) For the purposes of this clause, risks nuclear in nature are defined as
those risks attributable to the radioactive, toxic explosive, or other hazardous
properties of 'special nuclear material', 'by-product material', or 'source
material', as such materials are defined in the Atomic Energy Act of 1954, as
amended."
3. "For purposes of this contract, 'taxes' as covered by the clause entitled
'FEDERAL, STATE, AND LOCAL TAXES (NON-COMPETITIVE CONTRACTS)(JAN 1991)' shall be
deemed to include any Federally mandated Value Added, Ad Valorem, or similar tax
implemented during the period of performance of this contract. Therefore, the
Contractor shall be entitled to an equitable adjustment in accordance with the
provisions of this clause for any such implementation of a Federally mandated
Value Added, Ad Valorem, or similar tax during the period of performance of this
Contract which results in an increase or decrease in the Contractor's cost of
performing the work under this contract."
4. Clause 52.243-1, entitled "CHANGES -- FIXED PRICE (AUG 1987)", insert "45
days" wherever "30 days" appears.
5. Clause 252.227-7030 entitled "TECHNICAL DATA - WITHHOLDING OF PAYMENT (OCT
1988), in paragraphs (a) and (b), the maximum withholding is established as
"$500,000.00."
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SECTION J-LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS
This contract consists of the following parts and the attachments described in
Paragraph J-1 hereof:
I. The Schedule
II. Contract Clauses
III. List of Documents, Exhibits and Other Attachments
J-1 The Attachments forming a part of this contract are as follows:
Contract Data Requirements List, DD Form 1423, Exhibit "A" 173 pages,
Exhibit "B" 18 pages, and Exhibit "C" 6 pages.
Attachment A, Financial Accounting Data Sheet - 1 page.
Attachment B, Subcontracting Plan For Small Business and Small
Disadvantaged Business Concerns - 8 pages.
Attachment C, CVN 76 Specification, NAVSEA S9CVN-CK-SBS-010/(U) CVN 76
dated 1 July 1994 forwarded to NNS under NAVSEA letter (Ser. 02215/1339)
dated 27 July 1994; Change Package 1 forwarded to NNS under NAVSEA letter
(Ser. 02215/1407) dated 7 November 1994; Change Package 2 forwarded to NNS
under NAVSEA letter (Ser. 02215/1409) dtd 10 November 1994; and Change
Package 3 forwarded to NNS under NAVSEA letter (Ser. 02215/1474) dtd 18
November 1994.
Attachment D, Weighting Factors - 1 page.
Attachment E, Contract Security Classification DD Form 254 - (DD 254
Attachments provided under separate cover) - 2 pages.
Schedule A, Revision 0, 11-18-94 List of Government Furnished Equipment for
CVN 76 - 67 pages.
Schedule B, Not Applicable.
Schedule C, Not Applicable.
Schedule D, Compartment Turnover Agreement for CVN 76 - 9 pages.
Schedule E, Ships Force Work Agreement, for CVN 76 - 4 pages.
Schedule F, List of Facility Requirements for the Crew, for CVN 76 - 1
page.
CVN 76 Schedule X, Design Budget - 18 pages.
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