1 - SF26_SPE7MX21D0101.pdf

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AWARD/CONTRACT 1. THIS CONTRACT IS A RATED ORDER

UNDER DPAS (15 CFR 700)

RATING

5. ISSUED BY CODE 6. ADMINISTERED BY (If other than Item 5) CODE

15A. ITEM NO. 15B. SUPPLIES/SERVICES 15C. QUANTITY 15D. UNIT 15F. AMOUNT15E. UNIT PRICE

7. NAME AND ADDRESS OF CONTRACTOR (No., street, city, county, State and ZIP Code) 8. DELIVERY

FOB ORIGIN OTHER (See below)

(4 copies unless otherwise specified)

11. SHIP TO/MARK FOR CODE 12. PAYMENT WILL BE MADE BY CODE

13. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION:

10 U.S.C. 2304(c) 41 U.S.C. 253(c)

14. ACCOUNTING AND APPROPRIATION DATA

16. TABLE OF CONTENTS

(X) SEC. DESCRIPTION PAGE(S)

PART I - THE SCHEDULE

A SOLICITATION/CONTRACT FORM

B SUPPLIES OR SERVICES AND PRICES/COSTS

C DESCRIPTION/SPECS./WORK STATEMENT

D PACKAGING AND MARKING

E INSPECTION AND ACCEPTANCE

F DELIVERIES OR PERFORMANCE

G CONTRACT ADMINISTRATION DATA

H SPECIAL CONTRACT REQUIREMENTS

CONTRACTING OFFICER WILL COMPLETE ITEM 17 OR 18 AS APPLICABLE

17. CONTRACTOR'S NEGOTIATED AGREEMENT (Contractor is required to sign this document and return 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.)

18. SEALED-BID AWARD (Contractor is not required to sign this document. ) Your bid 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 terms 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 bid, and (b) this award/contract. No further contractual document is necessary. (Block 18 should be checked only when awarding a sealed-bid contract.)

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

PAGE(S)

PART II - CONTRACT CLAUSES

(X) SEC. DESCRIPTION

PART IV - REPRESENTATIONS AND INSTRUCTIONS

I CONTRACT CLAUSES

J LIST OF ATTACHMENTS

K

REPRESENTATIONS, CERTIFICATIONS AND OTHER

STATEMENTS OF OFFERORS

L INSTRS., CONDS., AND NOTICES TO OFFERORS

M EVALUATION FACTORS FOR AWARD

15G. TOTAL AMOUNT OF CONTRACT

19B. NAME OF CONTRACTOR

BY

AUTHORIZED FOR LOCAL REPRODUCTION STANDARD FORM 26 (REV. 5 /2011 )

20B. UNITED STATES OF AMERICA

BY

Previous edition is usable Prescribed by GSA - FAR (48 CFR) 53.214(a)

2. CONTRACT (Proc. Inst. Ident.) NO.

SPE7MX-21-D-0101

3. EFFECTIVE DATE

2021 AUG 11

4. REQUISITION/PURCHASE REQUEST/PROJECT NO.

1000088550

CODE 11859 FACILITY CODE 11859

9. DISCOUNT FOR PROMPT PAYMENT

Net 30 days

ITEM

$1,634,354.82

X 1

X 2

X 3

X 3

19A. NAME AND TITLE OF SIGNER (Type or Print)

19C. DATE SIGNED

20A. NAME OF CONTRACTING OFFICER

20C. DATE SIGNED

2021 AUG 04

X

X 1

SEE SCHEDULE, DO NOT SHIP TO ADDRESS ON THIS PAGE

DEF FIN AND ACCOUNTING SVC

BSM

P O BOX 182317

COLUMBUS OH 43218-2317

USA

SL4701

X

( Signature of person authorized to sign) (Signature of Contracting Officer)

SPE7MX

DLA LAND AND MARITIME

LAND SUPPLIER OPERATIONS SMSG

PO BOX 3990

COLUMBUS OH 43218-3990

USA

Local Admin: Samantha Blackhurst PLCL46E Tel: (614) 692-9683 Email: Samantha.Blackhurst@dla.mil

SPE7MX

DLA LAND AND MARITIME

LAND SUPPLIER OPERATIONS SMSG

PO BOX 3990

COLUMBUS OH 43218-3990

Criticality: PAS : None

HUNT VALVE COMPANY, INC.

DBA WAECO VALVE DIVISION

1913 E STATE ST

SALEM OH 44460-2422

See Schedule 0.000

10. SUBMIT INVOICES

TO THE

ADDRESS SHOWN IN

J gskovira

Typewritten text

Gina Skovira - Bid Administrator gskovira

Typewritten text

8/5/2021

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SECTION I - CONTRACT CLAUSES

52.204-19 INCORPORATION BY REFERENCE OF REPRESENTATIONS AND CERTIFICATIONS (DEC 2014) FAR

252.204-7009 LIMITATIONS ON THE USE OR DISCLOSURE OF THIRD-PARTY CONTRACTOR REPORTED CYBER INCIDENT

INFORMATION (OCT 2016) DFARS

52.232-40 PROVIDING ACCELERATED PAYMENTS TO SMALL BUSINESS SUBCONTRACTORS (DEC 2013) FAR

252.204-7018 PROHIBITION ON THE ACQUISITION OF COVERED DEFENSE TELECOMMUNICATIONS EQUIPMENT OR SERVICES

(JAN 2021) DFARS

SECTION J - LIST OF ATTACHMENTS

List of Attachments

Description File Name

ATTACH_Encl_1___Award ees_Proposal

3 Sta

ATTACH_Encl_2___Sec_B _Spreadsheet

ATTACH_Encl_3___PID__ Packaging__and_Marking

Enclosure 1 to SPE7MX21D0101 - Awardee's Proposal Page 1 of 36

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SPE7MX-21-R-0011

PLEASE NOTE THAT SECTIONS B THROUGH H MAY NOT BE IN ALPHABETICAL ORDER. PLEASE READ SOLICITATION IN ITS ENTIRETY.

SECTION A - GENERAL INFORMATION TO OFFERORS

OVERVIEW. This solicitation is being issued “Other Than Full and Open Competition,” per FAR 6. 302-1. The statutory authority permitting this is 10 U.S.C. 2304(c)(1).

This solicitation is for a Federal Acquisition Regulation (FAR) Part 15, firm fixed price, Indefinite Quantity Contract (IQC) with a three-year base and two, one-year option periods, that will provide Continental US (CONUS) logistical support throughout the entire DLA supply chain. The Government will place orders under this contract to support DLA Direct (Stock requirements).

A.1 UCF SECTION L INSTRUCTIONS FOR SUBMISSION OF OFFERS

The following method(s) of submitting a proposal are authorized in the solicitation:

UPLOAD PROPOSAL THROUGH DIBBS (PREFERRED METHOD)

To submit an offer through DIBBS, search for the solicitation and then click the Red "Offer" button on the search results screen (Note: users must be logged in to DIBBS in order to submit the offer through DIBBS). For additional guidance, refer to https://www.dibbs.bsm.dla.mil/refs/help/Solicitations/DIBBS-Upload-Offer-User-Help.pdf

EMAIL PROPOSALS TO: Howard.Merkle@dla.mil A single email cannot exceed 15 MB. Proposals greater than 15 MB must be divided into multiple emails.

For solicitation info, please see the point of contact listed in Block 7 for SF 1449s or Block 10 for SF33s.

A.2 UCF SECTION F PRIORITY RATING FOR VARIOUS LONG-TERM CONTRACTS

Because this contract does not have a specified delivery date, the basic contract is not rated; however, orders placed against it that include a delivery date are rated orders under FAR 52.211-15, Defense Priority and Allocation Requirements, as of the date of receipt by the supplier.

A.3 UCF SECTION F TIME OF DELIVERY – ORDERING OFFICE

Material ordered under the terms of this Contract shall be delivered within _175_ days after the date of the order.

Notwithstanding any other provisions or clauses of this Contract, no deliveries shall be made prior to issuance of the delivery order on Department of Defense (DD) Form 1155.

A.4 UCF SECTION B - ALL OR NONE

(a) With respect to each item or group of items identified below, offers must be submitted for all items indicated.

No award will be made for less than the full requirements shown in this solicitation for these items or groups.

Group _Not Applicable_____ Item _4810-01-218-7942_________

(b) Any offeror offering less than all of the solicitation requirements of the indicated item or group of items may be precluded from consideration for award if the Contracting Officer elects to make an award without opening discussions.

(c) Offerors are cautioned that submission of an offer for selected item(s) within a given group is unacceptable;

offers must be for all item(s) within a given group. However, an offeror may submit an offer on any one or more groups.

A.5 UCF SECTION F PRODUCTION FACILITY CHANGES

(a) The performance of any of the work contracted for in any place other than that named in the contract is prohibited unless specifically approved by the Contracting Officer. Written requests for a change in production facilities must be submitted in writing to the Contracting Officer. Changes in production facilities may be approved, provided:

(1) Performance by small business or in labor surplus areas as required by the contract will not be changed;

(2) The change will not cause a delay in delivery or necessitate a change in the purchase description;

(3) The free on board (f.o.b.) point is not changed; and

(4) Each request is supported by a price reduction of $250.00 to cover the Government's administrative costs to process the change.

(b) The Government reserves the right to deny approval even if these four elements are met.

A.6 UCF SECTION M EVALUATION FACTORS FOR AWARD (SELF DELETING ON AWARD)

(a) General Basis for Award: Award will be made to the offeror or offerors whose offer(s) conform to the solicitation requirements and represents the best value to the Government. Unless otherwise indicated at time of solicitation, the Government anticipates making a single award. The following evaluation factors will be considered in the evaluation of proposals received under this solicitation with their assigned ranking in descending order of importance:

[X] - Price [X] - Past Performance [X] - Proposed Delivery [ ] - Surge and Sustainment (See Section (e), below) [ ] - Other ____________________________________________________________ All factors other than price listed above are, when combined, approximately equal to price.

(b) PRICE: The offered price, as adjusted by price related factors (such as the Buy American statute or transportation costs), will be evaluated with the other evaluation factors listed above to determine the proposal which represents the best value to the Government. The Government will also evaluate the reasonableness of the offered price.

(c) PAST PERFORMANCE:

See 'DLAD Procurement Note - L08 Use of Supplier Performance Risk System (SPRS) in Past Performance Evaluations’ for past performance information. In addition to SPRS, evaluation of past performance may take into account any other relevant information available to the Government.

(d) PROPOSED DELIVERY: Offerors will be evaluated based on their offered delivery compared to the Government’s

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required delivery. Preference may be given for offered deliveries that are shorter than the required delivery. The Government may elect to consider for award only those offers that comply with the required delivery schedule but reserves the right to consider offered delivery times that exceed the number of delivery days required by the government. Offered deliveries that exceed the required delivery may be evaluated less favorable than those meeting or offering shorter than the Government’s required delivery.

A.7 UCF SECTION B ESTIMATED TOTAL QUANTITY

(a) The estimated total quantity the Government expects to order during each contract year is as follows:

CLIN 0001, 9 each

(b) In the event that this solicitation provides for a partial set-aside, the estimated total quantity for the set-aside portion is as provided in the clause entitled "Set-Aside Portion" located in Section I of the solicitation.

Note: It is anticipated that the quantities listed will remain constant for any additional option periods as provided elsewhere in this contract.

A.8 UCF SECTION B CONTRACT QUANTITY LIMITATIONS

[X] (a) The quantity limitations on any contract resulting from this solicitation are as follows during the contract period*:

(1) Minimum quantity or dollar amount: $5,447.85_

(2) Maximum quantity or dollar amount: $1,634,354.82 The Government is obligated to order only the minimum quantity or dollar figure stated above.

If this solicitation provides for a partial Small Business set-aside and the resulting award is made to a Contractor receiving the set-aside and non-set-aside portion, the quantities specified above for both minimum and maximum will be doubled.

(X) Contract period as defined in this clause means the extended contract shall be inclusive of any/all option periods.

( ) Contract period as defined in this clause means a separate contract period for the initial basic and each option period.

A.9 UCF SECTION – M EVALUATION OF OFFERS FOR INDEFINITE DELIVERY TYPE SOLICITATIONS (July 2017)

(a) Offers will be evaluated on the basis of the estimated annual quantity. Unless (b) is checked below, if quantity increments are offered with various prices, the highest price offered will be used for evaluation. If line items for both DLA direct and customer direct are included in the schedule, offers will be evaluated based on the total extended price for the DLA direct and customer direct line items.

(b) [X] If checked, and subject to the terms and conditions of the solicitation relating to the evaluation of offers, the following procedures will be followed:

(1) When offers are requested on a quantity increment basis, each contract line-item (CLIN) will be evaluated for price by:

[ ] applying a weighted factor of 18% to the first quantity increment, 36% to the second increment, and 46% to the third increment to arrive at an average weighted unit price.

[X] applying a weighted factor of 5% to the first quantity increment, 65% to the second increment, 25% to the third increment, and 5% to the fourth increment to arrive at an average weighted unit price.

This average weighted unit price will be multiplied by the estimated annual quantity that may be procured during the contract period to arrive at a total annual evaluated price for each CLIN. If the solicitation provides for separately priced option periods, average weighted prices will be calculated as described above in (1) for each option period and then added to the base contract period total to determine the total estimated price of that line item for the evaluation.

(2) When quantity increment prices are not requested, offers for each CLIN will be evaluated by multiplying the unit price by the estimated quantity that may be procured during the contract period to arrive at total price for each

CLIN.

(3) Prices offered must be unit prices only which are clearly stated and which require no further interpretation by the Government to determine the actual offered price. Prices must not be stated as part of a pricing formula or as charges per lot. Unit prices offered must include costs of compliance with all solicitation requirements, with the exception of additive CLINs. For each item of supply for which a price is offered, prices must be offered for each quantity increment and year. Failure to submit proposed prices in accordance with these instructions may result in rejection of the offer.

(4) In the event first article testing and/or technical data are required for any or all of the CLINS, the cost of such testing and data will be added to the appropriate CLIN or prorated based on the ratio of the estimated quantity for each CLIN to the total estimated quantity of the various CLINs covering the same item or national stock number (NSN). In the event an offeror is low only on one CLIN (where there are several CLINs for the same item) (NSN), the cost of testing and data pertaining to that CLIN will be added for evaluation purposes.

(5) [ ] If checked, when free on board (f.o.b.) origin offers are authorized, transportation costs will be considered in evaluation and will be based on the best estimated quantity of each CLIN as specified elsewhere in this solicitation. Carload or truckload rates will be used to evaluate the cost of transportation for each CLIN unless the best-estimated quantity would not constitute a carload or truckload. In such case, less than carload (LCL) or less than truckload (LTL) rates will be used for evaluation purposes.

A.10 UCF SECTION F SHIPPING INSTRUCTIONS

Shipping instructions shall be provided with individual delivery orders.

A.11 DLAD PROCUREMENT NOTES INCORPORATED BY REFERENCE

This solicitation incorporates one or more DLAD Procurement Notes by reference, with the same force and effect as if they were given in full text. The full text of a DLAD Procurement Note may be accessed electronically at http://www.

dla.mil/HQ/Acquisition/Offers/eProcurement.aspx and via 'References' on the DIBBS homepage.

A.12 NOTICE: This solicitation is 100% Set-Aside for small businesses, with other than full and open competition.

A.13 SCOPE:

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A.13.1 The scope of this acquisition is limited to the NSN listed in Section B-1 Spreadsheet.

A.13.2 The Section B Pricing, Delivery and Packaging Spreadsheets (Attachment B-1), Product Item Description, and solicitation clauses further describe the unique characteristics and requirements for the National Stock Numbers (NSNs) herein.

A.14 The method used to place orders under this contract will be via Delivery Orders placed by DLA Inventory Control Points (ICPs). The DLA ICPs listed below will issue delivery orders with the awardee for the supplies cited in Section B. The orders may be issued using Electronic Data Interchange (EDI) or via Email (refer to Clause L02). EDI invoicing is mandatory. These orders will be for DLA Direct requirements. The following ICPs are authorized to place delivery orders.

a. DLA Land and Maritime

b. Other government agencies may be added at a later date.

A.15 FOB Origin, Inspection and Acceptance: Destination.

A.16 The following requirements apply to this solicitation.

A.16.1 An electronic copy of the Section B Pricing, Delivery, and Packaging spreadsheets are available via download through the DLA Internet Bid Board System (DIBBS) located at https://www. Dibbs.bsm.dla.mil/. Each offeror is required to complete the applicable columns on the spreadsheets and return information electronically to the buyer at the following address: Howard.Merkle@dla.mil. DO NOT change the format of the spreadsheets.

A.17.2 The electronic Section B Pricing, Delivery and Packaging spreadsheet will become a part of the contract award, either via hardcopy or electronic copy.

A.18 OFFEROR AUTHORIZED REPRESENTATIVE(S): Offerors shall identify individual(s) authorized to represent the offeror’s position and commit the offeror in all exchanges between Government and offeror:

Name: __________________________________________

Title/Position: _______________________________________

Phone Number: _____________________________________

E-Mail Address: _____________________________________

SECTION B - GENERAL INFORMATION

B.1 Please see Attachment B-1 for the spreadsheets that contain the Section B Pricing, Delivery, and Packaging requirements that were issued with this solicitation. The spreadsheet consists of four tabs: (1) Pricing, (2) Part Number, (3) Delivery, and (4) Packaging Codes. If you do not have a hard copy of this solicitation or Attachment B-1, you may contact the buyer Tyler Merkle at 614-692-6577 or via email at Howard.Merkle@dla.mil to request a copy. You may also download the information via DLA Internet Bid Board System (DIBBs) located at https://www.dibbs.bsm.dla.mil/.

B.2 EXPLANATION OF FIELDS

The supplies covered by this solicitation are listed on the enclosed spreadsheet. The spreadsheet contains supplies managed by the Defense Logistics Agency. Vendors should provide their prices/deliveries on the attached Section B spreadsheet of this Solicitation.

B.2.1 EXPLANATION OF PRICING TAB

COLUMN NAME - EXPLANATION

CLIN - Solicitation Line Item.

NSN - National Stock Number.

Nomenclature - Name of Item.

UI - Unit of Issue. = EA ADQ - Annual Demand Quantity QFD - Quarterly Forecast of Demand Unit price is for the year specified.

Percentage Increase for 2nd Year – Self-Explanatory Percentage Increase for 3rd Year – Self-Explanatory Percentage Increase for 4th Year – Self-Explanatory Percentage Increase for 5th Year – Self-Explanatory

B.2.2 EXPLANATION OF PART NUMBER TAB

COLUMN NAME - EXPLANATION

CLIN - Solicitation Line Item.

NSN - National Stock Number.

UI - Unit of Issue. = EA QCC - Quality Control Code. Indicates Quality assurance requirements for reference.

AMC/AMSC - Acquisition Method Code/Acquisition Method Suffix Code = 3D PIC - Place of Inspection and Acceptance - 2 = Destination Offered CAGE - Vendor is to indicate CAGE offered.

Offered P/N - Vendor is to indicate part number offered.

The Following QCC Codes are Applicable to this Solicitation

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1st Position: (Contract Quality Requirement) = D – Standard Insepction 2nd Position: (Quality Subsystem Identification) = A – No Quality Subsystem Requirements 3rd Position: (Quality Specific Requirements) = A – No Specific Requirements

B.2.3 EXPLANATION OF DELIVERY TAB

COLUMN NAME - EXPLANATION

CLIN - Solicitation Line Item.

NSN - National Stock Number.

UI - Unit of Issue. = EA Est ADQ DPAS - Defense Priorities and Allocations System ratings cited. = DOC9 Gov'ts Required Delivery - Government's required delivery days (after date of order) for each NSN.

Offered Delivery Days - Vendor is to indicate offered delivery days for each item. Vendors are encouraged to improve upon the Government's required delivery.

Delivery Order Minimum - Self-Explanatory.

Delivery Order Maximum - Self-Explanatory.

B.2.4 PACKAGING TAB – Packaging Codes

B.3 LTC PID Packaging Consolidated Text - See Attachment 2.

LIST OF ATTACHMENTS:

1 – Pricing, Delivery, and Packaging Spreadsheet 2 – LTC PID, Packaging, and Marking

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SECTION A - SOLICITATION/CONTRACT FORM

52.244-6 SUBCONTRACTS FOR COMMERCIAL ITEMS (OCT 2020) FAR

52.202-1 DEFINITIONS (JUN 2020) FAR

TECHNICAL REQUIREMENTS

THIS DOCUMENT INCORPORATES TECHNICAL AND/OR QUALITY REQUIREMENTS (IDENTIFIED BY AN `R' OR AN `I' NUMBER IN SECTION B) SET FORTH IN FULL TEXT IN THE DLA MASTER LIST OF TECHNICAL AND QUALITY REQUIREMENTS FOUND ON THE WEB AT: http://www.dla.mil/HQ/Acquisition/Offers/eProcurement.aspx. FOR SIMPLIFIED ACQUISITIONS, THE REVISION OF THE MASTER IN EFFECT ON THE SOLICITATION ISSUE DATE OR THE AWARD DATE CONTROLS. FOR LARGE ACQUISITIONS, THE REVISION OF THE MASTER IN EFFECT ON THE RFP ISSUE DATE APPLIES UNLESS A SOLICITATION AMENDMENT INCORPORATES

A FOLLOW-ON REVISION, IN WHICH CASE THE AMENDMENT DATE CONTROLS.

52.204-16 COMMERCIAL AND GOVERNMENT ENTITY CODE REPORTING (AUG 2020) FAR

SECTION B - SUPPLIES OR SERVICES AND PRICES OR COSTS

52.248-1 VALUE ENGINEERING (JUN 2020) FAR

(a) General. The Contractor is encouraged to develop, prepare, and submit value engineering change proposals (VECP's) voluntarily. The Contractor shall share in any net acquisition savings realized from accepted VECP's, in accordance with the incentive sharing rates in paragraph (f) below.

(b) Definitions. Acquisition savings, as used in this clause, means savings resulting from the application of a VECP to contracts awarded by the same contracting office or its successor for essentially the same unit. Acquisition savings include --

(1) Instant contract savings, which are the net cost reductions on this, the instant contract, and which are equal to the instant unit cost reduction multiplied by the number of instant contract units affected by the VECP, less the Contractor's allowable development and implementation costs;

(2) Concurrent contract savings, which are net reductions in the prices of other contracts that are definitized and ongoing at the time the VECP is accepted; and

(3) Future contract savings, which are the product of the future unit cost reduction multiplied by the number of future contract units in the sharing base. On an instant contract, future contract savings include savings on increases in quantities after VECP acceptance that are due to contract modifications, exercise of options, additional orders, and funding of subsequent year requirements on a multiyear contract.

Collateral costs, as used in this clause, means agency cost of operation, maintenance, logistic support, or Government-furnished property.

Collateral savings, as used in this clause, means those measurable net reductions resulting from a VECP in the agency's overall projected collateral costs, exclusive of acquisition savings, whether or not the acquisition cost changes.

Contracting office includes any contracting office that the acquisition is transferred to, such as another branch of the agency or another agency's office that is performing a joint acquisition action.

Contractor's development and implementation costs, as used in this clause, means those costs the Contractor incurs on a VECP specifically in developing, testing, preparing, and submitting the VECP, as well as those costs the Contractor incurs to make the contractual changes required by Government acceptance of a VECP.

Future unit cost reduction, as used in this clause, means the instant unit cost reduction adjusted as the Contracting Officer considers necessary for projected learning or changes in quantity during the sharing period. It is calculated at the time the VECP is accepted and applies either (1) throughout the sharing period, unless the Contracting Officer decides that recalculation is necessary because conditions are significantly different from those previously anticipated or (2) to the calculation of a lump-sum payment, which cannot later be revised.

Government costs, as used in this clause, means those agency costs that result directly from developing and implementing the VECP, such as any net increases in the cost of testing, operations, maintenance, and logistics support. The term does not include the normal administrative costs of processing the VECP or any increase in this contract's cost or price resulting from negative instant contract savings.

Instant contract, as used in this clause, means this contract, under which the VECP is submitted. It does not include increases in quantities after acceptance of the VECP that are due to contract modifications, exercise of options, or additional orders. If this is a multiyear contract, the term does not include quantities funded after VECP acceptance. If this contract is a fixed-price contract with prospective price redetermination, the term refers to the period for which firm prices have been established.

Instant unit cost reduction means the amount of the decrease in unit cost of performance (without deducting any Contractor's development or implementation costs) resulting from using the VECP on this, the instant contract. If this is a service contract, the instant unit cost reduction is normally equal to the number of hours per line-item task saved by using the VECP on this contract, multiplied by the

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SECTION B - SUPPLIES OR SERVICES AND PRICES OR COSTS (CONTINUED)

appropriate contract labor rate.

Negative instant contract savings means the increase in the cost or price of this contract when the acceptance of a VECP results in an excess of the Contractor's allowable development and implementation costs over the product of the instant unit cost reduction multiplied by the number of instant contract units affected.

Net acquisition savings means total acquisition savings, including instant, concurrent, and future contract savings, less Government costs.

Sharing base, as used in this clause, means the number of affected end items on contracts of the contracting office accepting the VECP.

Sharing period, as used in this clause, means the period beginning with acceptance of the first unit incorporating the VECP and ending at a calendar date or event determined by the contracting officer for each VECP.

Unit, as used in this clause, means the item or task to which the Contracting Officer and the Contractor agree the VECP applies.

Value engineering change proposal (VECP) means a proposal that --

(1) Requires a change to this, the instant contract, to implement; and

(2) Results in reducing the overall projected cost to the agency without impairing essential functions or characteristics; provided, that it does not involve a change --

(i) In deliverable end item quantities only;

(ii) In research and development (R&D) end items or R&D test quantities that is due solely to results of previous testing under this contract; or

(iii) To the contract type only.

(c) VECP preparation. As a minimum, the Contractor shall include in each VECP the information described in subparagraphs (1) through (8) below. If the proposed change is affected by contractually required configuration management or similar procedures, the instructions in those procedures relating to format, identification, and priority assignment shall govern VECP preparation. The VECP shall include the following:

(1) A description of the difference between the existing contract requirement and the proposed requirement, the comparative advantages and disadvantages of each, a justification when an item's function or characteristics are being altered, the effect of the change on the end item's performance, and any pertinent objective test data.

(2) A list and analysis of the contract requirements that must be changed if the VECP is accepted, including any suggested specification revisions.

(3) Identification of the unit to which the VECP applies.

(4) A separate, detailed cost estimate for (i) the affected portions of the existing contract requirement and (ii) the VECP. The cost reduction associated with the VECP shall take into account the Contractor's allowable development and implementation costs, including any amount attributable to subcontracts under the Subcontracts paragraph of this clause, below.

(5) A description and estimate of costs the Government may incur in implementing the VECP, such as test and evaluation and operating and support costs.

(6) A prediction of any effects the proposed change would have on collateral costs to the agency.

(7) A statement of the time by which a contract modification accepting the VECP must be issued in order to achieve the maximum cost reduction, noting any effect on the contract completion time or delivery schedule.

(8) Identification of any previous submissions of the VECP, including the dates submitted, the agencies and contract numbers involved, and previous Government actions, if known.

(d) Submission. The Contractor shall submit VECP's to the Contracting Officer, unless this contract states otherwise. If this contract is administered by other than the contracting office, the Contractor shall submit a copy of the VECP simultaneously to the Contracting Officer and to the Administrative Contracting Officer.

(e) Government action. (1) The Contracting Officer will notify the Contractor of the status of the VECP within 45 calendar days after the contracting office receives it. If additional time is required, the Contracting Officer will notify the Contractor within the 45-day period and provide the reason for the delay and the expected date of the decision. The Government will process VECP's expeditiously; however, it will not be liable for any delay in acting upon a VECP.

(2) If the VECP is not accepted, the Contracting Officer will notify the Contractor in writing, explaining the reasons for rejection. The Contractor may withdraw any VECP, in whole or in part, at any time before it is accepted by the Government. The Contracting Officer may require that the Contractor provide written notification before undertaking significant expenditures for VECP effort.

(3) Any VECP may be accepted, in whole or in part, by the Contracting Officer's award of a modification to this contract citing this clause and made either before or within a reasonable time after contract performance is completed. Until such a contract modification applies a VECP to this contract, the Contractor shall perform in accordance with the existing contract. The decision to accept or reject all or part of any VECP is a unilateral decision made solely at the discretion of the Contracting Officer.

(f) Sharing rates. If a VECP is accepted, the Contractor shall share in net acquisition savings according to the percentages shown in the table below. The percentage paid the Contractor depends upon (1) this contract's type (fixed-price, incentive, or cost-reimbursement), (2) the sharing arrangement specified in paragraph (a) above (incentive, program requirement, or a combination as delineated in the Schedule), and

(3) the source of the savings (the instant contract, or concurrent and future contracts), as follows:

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Contractor's Share of Net Acquisition Savings

[Figures in Percent]

1The Contracting Officer may increase the Contractor's sharing rate to as high as 75 percent for each VECP.

2Same sharing arrangement as the contract's profit or fee adjustment formula.

3The Contracting Officer may increase the Contractor's sharing rate to as high as 50 percent for each VECP.

(g) Calculating net acquisition savings. (1) Acquisition savings are realized when (i) the cost or price is reduced on the instant contract, (ii) reductions are negotiated in concurrent contracts, (iii) future contracts are awarded, or (iv) agreement is reached on a lump-sum payment for future contract savings (see subparagraph (i)(4) below). Net acquisition savings are first realized, and the Contractor shall be paid a share, when Government costs and any negative instant contract savings have been fully offset against acquisition savings.

(2) Except in incentive contracts, Government costs and any price or cost increases resulting from negative instant contract savings shall be offset against acquisition savings each time such savings are realized until they are fully offset. Then, the Contractor's share is calculated by multiplying net acquisition savings by the appropriate Contractor's percentage sharing rate (see paragraph (f) above). Additional Contractor shares of net acquisition savings shall be paid to the Contractor at the time realized.

(3) If this is an incentive contract, recovery of Government costs on the instant contract shall be deferred and offset against concurrent and future contract savings. The Contractor shall share through the contract incentive structure in savings on the instant contract items affected.

Any negative instant contract savings shall be added to the target cost or to the target price and ceiling price, and the amount shall be offset against concurrent and future contract savings.

(4) If the Government does not receive and accept all items on which it paid the Contractor's share, the Contractor shall reimburse the Government for the proportionate share of these payments.

(h) Contract adjustment. The modification accepting the VECP (or a subsequent modification issued as soon as possible after any negotiations are completed) shall --

(1) Reduce the contract price or estimated cost by the amount of instant contract savings, unless this is an incentive contract;

(2) When the amount of instant contract savings is negative, increase the contract price, target price and ceiling price, target cost, or estimated cost by that amount;

(3) Specify the Contractor's dollar share per unit on future contracts, or provide the lump-sum payment;

(4) Specify the amount of any Government costs or negative instant contract savings to be offset in determining net acquisition savings realized from concurrent or future contract savings; and

(5) Provide the Contractor's share of any net acquisition savings under the instant contract in accordance with the following:

(i) Fixed-price contracts --add to contract price.

(ii) Cost-reimbursement contracts --add to contract fee.

(i) Concurrent and future contract savings. (1) Payments of the Contractor's share of concurrent and future contract savings shall be made by a modification to the instant contract in accordance with subparagraph (h)(5) above. For incentive contracts, shares shall be added as a separate firm-fixed-price line item on the instant contract. The Contractor shall maintain records adequate to identify the first delivered unit for 3 years after final payment under this contract.

(2) The Contracting Officer shall calculate the Contractor's share of concurrent contract savings by (i) subtracting from the reduction in price negotiated on the concurrent contract any Government costs or negative instant contract savings not yet offset and (ii) multiplying the result by the Contractor's sharing rate.

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(3) The Contracting Officer shall calculate the Contractor's share of future contract savings by (i) multiplying the future unit cost reduction by the number of future contract units scheduled for delivery during the sharing period, (ii) subtracting any Government costs or negative instant contract savings not yet offset, and (iii) multiplying the result by the Contractor's sharing rate.

(4) When the Government wishes and the Contractor agrees, the Contractor's share of future contract savings may be paid in a single lump sum rather than in a series of payments over time as future contracts are awarded. Under this alternate procedure, the future contract savings may be calculated when the VECP is accepted, on the basis of the Contracting Officer's forecast of the number of units that will be delivered during the sharing period. The Contractor's share shall be included in a modification to this contract (see subparagraph (h)(3) above) and shall not be subject to subsequent adjustment.

(5) Alternate no-cost settlement method. When, in accordance with section 48.104-4 of the Federal Acquisition Regulation (FAR), the Government and the Contractor mutually agree to use the no-cost settlement method, the following applies:

(i) The Contractor will keep all the savings on the instant contract and on its concurrent contracts only.

(ii) The Government will keep all the savings resulting from concurrent contracts placed on other sources, savings from all future contracts, and all collateral savings.

(j) Collateral savings. If a VECP is accepted, the Contracting Officer will increase the instant contract amount, as specified in paragraph (h)(5) of this clause, by a rate from 20 to 100 percent, as determined by the Contracting Officer, of any projected collateral savings determined to be realized in a typical year of use after subtracting any Government costs not previously offset. However, the Contractor's share of collateral savings will not exceed the contract's firm-fixed-price, target price, target cost, or estimated cost, at the time the VECP is accepted, or $100,000, whichever is greater. The Contracting Officer will be the sole determiner of the amount of collateral savings.

(k) Relationship to other incentives. Only those benefits of an accepted VECP not rewardable under performance, design-to-cost (production unit cost, operating and support costs, reliability and maintainability), or similar incentives shall be rewarded under this clause. However, the targets of such incentives affected by the VECP shall not be adjusted because of VECP acceptance. If this contract specifies targets but provides no incentive to surpass them, the value engineering sharing shall apply only to the amount of achievement better than target.

(l) Subcontracts. The Contractor shall include an appropriate value engineering clause in any subcontract-valued at or above the simplified acquisition threshold, as defined in FAR 2.101 on the date of subcontract award, and may include one in subcontracts of lesser value. In calculating any adjustment in this contract's price for instant contract savings (or negative instant contract savings), the Contractor's allowable development and implementation costs shall include any subcontractor's allowable development and implementation costs, and any value engineering incentive payments to a subcontractor, clearly resulting from a VECP accepted by the Government under this contract. The Contractor may choose any arrangement for subcontractor value engineering incentive payments; provided, that the payments shall not reduce the Government's share of concurrent or future contract savings or collateral savings.

(m) Data. The Contractor may restrict the Government's right to use any part of a VECP or the supporting data by marking the following legend on the affected parts:

“These data, furnished under the Value Engineering clause of contract , shall not be disclosed outside the Government or duplicated, used, or disclosed, in whole or in part, for any purpose other than to evaluate a value engineering change proposal submitted under the clause. This restriction does not limit the Government's right to use information contained in these data if it has been obtained or is otherwise available from the Contractor or from another source without limitations.”

If a VECP is accepted, the Contractor hereby grants the Government unlimited rights in the VECP and supporting data, except that, with respect to data qualifying and submitted as limited rights technical data, the Government shall have the rights specified in the contract modification implementing the VECP and shall appropriately mark the data. (The terms unlimited rights and limited rights are defined in part 27 of the Federal Acquisition Regulation.)

(End of clause)

252.244-7000 SUBCONTRACTS FOR COMMERCIAL ITEMS (OCT 2020) DFARS

52.223-18 ENCOURAGING CONTRACTOR POLICIES TO BAN TEXT MESSAGING WHILE DRIVING (JUN 2020) FAR

52.222-36 EQUAL OPPORTUNITY FOR WORKERS WITH DISABILITIES (JUN 2020) FAR

52.222-20 CONTRACTS FOR MATERIALS, SUPPLIES, ARTICLES, AND EQUIPMENT (JUN 2020) FAR

52.215-14 INTEGRITY OF UNIT PRICES (JUN 2020) FAR

252.209-7004 SUBCONTRACTING WITH FIRMS THAT ARE OWNED OR CONTROLLED BY THE GOVERNMENT OF A COUNTRY

THAT IS A STATE SPONSOR OF TERRORISM (MAY 2019) DFARS

52.209-6 PROTECTING THE GOVERNMENT'S INTEREST WHEN SUBCONTRACTING WITH CONTRACTORS DEBARRED, SUSPENDED, OR PROPOSED FOR DEBARMENT (JUN 2020) FAR

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52.204-24 REPRESENTATION REGARDING CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR

EQUIPMENT (OCT 2020) FAR

The Offeror shall not complete the representation at paragraph (d)(1) of this provision if the Offeror has represented that it “does not provide covered telecommunications equipment or services as a part of its offered products or services to the Government in the performance of any contract, subcontract, or other contractual instrument” in paragraph (c)(1) in the provision at 52.204-26, Covered Telecommunications Equipment or Services --Representation, or in paragraph (v)(2)(i) of the provision at 52.212-3, Offeror Representations and Certifications- Commercial Items. The Offeror shall not complete the representation in paragraph (d)(2) of this provision if the Offeror has represented that it “does not use covered telecommunications equipment or services, or any equipment, system, or service that uses covered telecommunications equipment or services” in paragraph (c)(2) of the provision at 52.204-26, or in paragraph (v)(2)(ii) of the provision at 52.212-3.

(a) Definitions. As used in this provision-

Backhaul, covered telecommunications equipment or services, critical technology, interconnection arrangements, reasonable inquiry, roaming, and substantial or essential component have the meanings provided in the clause 52.204-25, Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment.

(b) Prohibition. (1) Section 889(a)(1)(A) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Pub. L. 115-232) prohibits the head of an executive agency on or after August 13, 2019, from procuring or obtaining, or extending or renewing a contract to procure or obtain, any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system. Nothing in the prohibition shall be construed to --

(i) Prohibit the head of an executive agency from procuring with an entity to provide a service that connects to the facilities of a third-party, such as backhaul, roaming, or interconnection arrangements; or

(ii) Cover telecommunications equipment that cannot route or redirect user data traffic or cannot permit visibility into any user data or packets that such equipment transmits or otherwise handles.

(2) Section 889(a)(1)(B) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Pub. L. 115-232) prohibits the head of an executive agency on or after August 13, 2020, from entering into a contract or extending or renewing a contract with an entity that uses any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system. This prohibition applies to the use of covered telecommunications equipment or services, regardless of whether that use is in performance of work under a Federal contract. Nothing in the prohibition shall be construed to --

(i) Prohibit the head of an executive agency from procuring with an entity to provide a service that connects to the facilities of a third-party, such as backhaul, roaming, or interconnection arrangements; or

(ii) Cover telecommunications equipment that cannot route or redirect user data traffic or cannot permit visibility into any user data or packets that such equipment transmits or otherwise handles.

(c) Procedures. The Offeror shall review the list of excluded parties in the System for Award Management (SAM) (https://www.sam.gov) for entities excluded from receiving federal awards for “covered telecommunications equipment or services.”

(d) Representations. The Offeror represents that --

(1) It [ ] will, [ ] will not provide covered telecommunications equipment or services to the Government in the performance of any contract, subcontract or other contractual instrument resulting from this solicitation. The Offeror shall provide the additional disclosure information required at paragraph (e)(1) of this section if the Offeror responds “will” in paragraph (d)(1) of this section; and

(2) After conducting a reasonable inquiry, for purposes of this representation, the Offeror represents that --

It [ ] does, [ ] does not use covered telecommunications equipment or services, or use any equipment, system, or service that uses covered telecommunications equipment or services. The Offeror shall provide the additional disclosure information required at paragraph (e)(2) of this section if the Offeror responds “does” in paragraph (d)(2) of this section.

(e) Disclosures. (1) Disclosure for the representation in paragraph (d)(1) of this provision. If the Offeror has responded “will” in the representation in paragraph (d)(1) of this provision, the Offeror shall provide the following information as part of the offer:

(i) For covered equipment --

(A) The entity that produced the covered telecommunications equipment (include entity name, unique entity identifier, CAGE code, and whether the entity was the original equipment manufacturer (OEM) or a distributor, if known);

(B) A description of all covered telecommunications equipment offered (include brand; model number, such as OEM number, manufacturer part number, or wholesaler number; and item description, as applicable); and

(C) Explanation of the proposed use of covered telecommunications equipment and any factors relevant to determining if such use would be permissible under the prohibition in paragraph (b)(1) of this provision.

(ii) For covered services --

(A) If the service is related to item maintenance: A description of all covered telecommunications services offered (include on the item

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(B) If not associated with maintenance, the Product Service Code (PSC) of the service being provided; and explanation of the proposed use of covered telecommunications services and any factors relevant to determining if such use would be permissible under the prohibition in paragraph (b)(1) of this provision.

(2) Disclosure for the representation in paragraph (d)(2) of this provision. If the Offeror has responded “does” in the representation in paragraph (d)(2) of this provision, the Offeror shall provide the following information as part of the offer:

(i) For covered equipment --

(A) The entity that produced the covered telecommunications equipment (include entity name, unique entity identifier, CAGE code, and whether the entity was the OEM or a distributor, if known);

(B) A description of all covered telecommunications equipment offered (include brand; model number, such as OEM number, manufacturer part number, or wholesaler number; and item description, as applicable); and

(C) Explanation of the proposed use of covered telecommunications equipment and any factors…