RFP_New_Tug_Performance_Replacement.pdf

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PART I

SECTION B

SUPPLIES OR SERVICES AND PRICES/COSTS

CLIN Description Unit Unit Price Amount

0001 Furnish all materials, labor, and equipment required for construction of the vessel called out or otherwise referred to in the attached specification, except those items specifically identified as Owner-furnished equipment.

1 Each

For the Job

0002 Option Item: Reference 573.1.1 –

Hoisting winch and top sheave

0003 Option Item: Reference 323 - One (1)

50A, 208V WT receptacle with dedicated breaker on the aft deck for welder connection.

0004 Option Item: Reference 504.2 – One (1)

Gems tank level indicator

0005 Option Item: Reference 602 – Hull markings at each tank corner

0006 Option Item: Reference 120.1 –

Watertight bulkhead between engine room and lazarette.

0007 Option Item: Reference 243.1.1 –

Stainless steel propellers

0008 Option Item: Reference 243.1.1 – Spare propellers

0009 Option Item: Reference 170.1.1 –

Pivoting topmast

Total Amount

The offeror shall complete all line items. The offeror shall take any credits into consideration when pricing the option items if the option items replace any specified requirements.

For the purposes of determining lowest price, the option items (CLINs 0002 through 0009) will be added to

CLIN 0001.

END OF SECTION B

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SECTION C

DESCRIPTION/SPECS./WORK STATEMENT

SPECIAL PROVISIONS

For the purposes of this solicitation, the terms “SLSDC”, “Corporation”, “Government”, and “Owner” refer to the Saint Lawrence Seaway Development Corporation.

C.1. DESCRIPTION OF WORK

The Contractor shall perform the detail design and construction of an ice-capable 60 ft azimuthing stern drive

(ASD) tug at the Contractor's facilities in accordance with the provisions of this contract and all associated and referenced requirements.

C.2. CONTRACT AND REFERENCE DRAWINGS AND SPECIFICATIONS

The contract and contract drawings and specifications have been furnished to the Contractor in an electronic format for the purpose of preparing a proposal. The work shall conform to the contract, and contract drawings and specifications. See list of drawings and specifications under Part III, Section J, List of Attachments.

C.3. WORK SITE REQUIREMENTS

a. General. The Contractor acknowledges that he/she has satisfied himself/herself as to the character, quality and quantity of materials as well as from information presented by the contract and contract drawings and these specifications. If the Contractor fails to properly acquaint himself/herself with the available information, he/she will not be relieved from responsibility for properly estimating the cost of successfully performing the work. The Contractor shall be responsible for performing all work in strict accordance with applicable

Occupational Safety and Health Administration (OSHA) safety and health requirements.

C.4. CONTRACTOR-FURNISHED MATERIALS

General. The Contractor shall furnish all materials and services that are required for the satisfactory completion of this contract. All materials furnished by the Contractor shall be of the type and quality described in these specifications and shall be of sufficient quality to perform the intended purpose.

1) Underwriters Laboratories, Inc. (UL™) Standards. Where items/materials to be supplied are available with

UL™ standard of approval, they shall be provided including Health and Sustainability standards as created through UL™ Environment and the GREENGUARD Environmental Institute (GEI). Where determined that the UL™ standard is in conflict with Paragraph a. below, Paragraph a. shall take precedence over meeting the

UL™ standard.

2) Compliance with Executive Orders. Pursuant to Executive Order 13693, “Planning for Federal Sustainability in the Next Decade”, the Contractor shall exert its best efforts to provide its services in a manner that will promote the natural environment and protect the health and wellbeing of Federal employees and contract service providers. To the extent that the construction services provided by the Contractor require provision of any of these types of products, the Contractor is expected to provide the green type of product unless that type of product is not available competitively within a reasonable time, at a reasonable price, is not life cycle cost efficient in the case of energy consuming products, or does not meet reasonable performance standards.

Energy Independence and Security Act of 2007, Energy Policy Act of 2005, Executive Orders and Federal

Acquisition Regulation (FAR) Compliance. The Contractor shall provide ENERGY STAR® qualified and

FEMP designated products in performance of construction. When acquiring energy-using products, the contractor shall purchase ENERGY STAR® or other energy-efficient items listed on the Department of Energy’s Federal

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Energy Management Program (FEMP) Product Energy Efficiency Recommendations product list. This applies to any power-consuming equipment to be installed or used in SLSDC facilities, whether title to the equipment will pass to the Government or be retained by the Contractor.

For products that consume power in a standby mode (as listed on FEMP’s Standby Power Devices product listing), the contractor shall -

(1) Purchase items which meet FEMP’s standby power wattage recommendation or document the reason for not purchasing such items; or

(2) If FEMP has listed a product without a corresponding wattage recommendation, purchase items which use no more than one watt in their standby power consuming mode. When it is impracticable to meet the one watt requirement, purchase items with the lowest standby wattage practicable.

The requirements of this section do not apply if (1) no compliant product’s utility and performance can meet the contractor’s need or contract specifications, (2) compliance would not be life-cycle cost-effective, or (3) compliant solutions are otherwise not available.

Information is available via the Internet about -

ENERGY STAR® at http://www.energystar.gov/; and

FEMP at http://www.eere.energy.gov/femp/procurement .

The following is a list of construction products for which ENERGY STAR qualified and FEMP designated products are available. It is not all inclusive and is evolving.

− Air Conditioners

− Ballasts

− Boilers

− Chillers

− Doors

− Electric Motors

− Furnaces

− Heat Pumps

− Lamps

− Lighting Controls

− Luminaries

− Plumbing (faucets, showerheads)

− Roofs

− Seals and Insulate

− Windows

a) Use of Products That Have a Lesser or Reduced Effect on Human Health and the Environment. The

Contractor shall use products that have a lesser or reduced effect on human health and the environment over their lifecycle when compared with competing products or services that serve the same purpose. A number of standards and ecolabels are available in the marketplace to assist in making environmentally preferable decisions. For recommendations, consult the Federal Green Construction

Guide for Specifiers at www.wbdg.org/design/greenspec.php.

b) Reuse and Recycling of Materials. The Contractor shall provide salvage and/or recycle materials generated from demolition, construction and/or renovations to the greatest extent practical and feasible in the regional market.

http://www.wbdg.org/design/greenspec.php

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c) Eliminate/Minimize the Use of Ozone Depleting Compounds. The Contractor shall eliminate/minimize the use of ozone depleting compounds in the project where alternative environmentally preferable products are available, consistent with either the Montreal Protocol and Title VI of the Clean Air Act Amendments of 1990, or equivalent overall air quality benefits that take into account lifecycle impacts.

d) Use of Low Emitting Materials. The Contractor shall include the use of low emitting materials for building modifications and construction, and maintenance and cleaning when applicable during Contract period. In particular, the following materials and products are to have low pollutant emissions: composite wood products, adhesives, sealants, interior paints and finishes, solvents, carpet systems, janitorial supplies, and furnishings.

C.5. PLANT

The Contractor shall furnish all plant required for the successful completion of the project. The Contractor-furnished plant shall be in satisfactory operating condition and capable of safely and efficiently performing the work. The plant shall be accessible to the Contracting Officer’s Representative (COR) (See Section G) at all times.

C.6. ENVIRONMENT PROTECTION

For the purpose of this specification, environment protection is defined as the retention of the environment in its natural state to the greatest possible extent during project construction and the enhancement of the natural appearance in its final condition. Environment protection requires consideration of air, water, and land and involves noise, solid waste management, and management of radiant energy and radioactive materials, as well as other pollutants. In order to prevent and to provide for abatement and control of any environmental pollution arising from the construction activities in the performance of this contract, the Contractor and his/her subcontractors shall identify and comply with all Federal, State, and Local laws and regulations concerning environmental pollution control and abatement. Any non-compliance shall be immediately corrected.

C.7. SAFETY AND HEALTH

1. The Contractor shall comply with the following regulations during performance of this contract:

(a) The Occupational Safety and Health Act of 1970 (29 U.S.C. 651, et seq.);

(b) The Safety and Health Regulations for Ship Repairing (29 CFR 1915); and

(c) Any other applicable Federal, State, and local laws, codes, ordinances, and regulations.

2. Good housekeeping conditions shall be maintained at all times. Adequate aisles and passageways shall be maintained in all work areas. All staging platforms, ramps, stairways, walkways, aisles, and passageways on vessels or dry docks shall be kept clear of all tools, materials, and equipment except that which is in use, and all debris such as welding rod tips, bolts, nuts, and similar material. Hose and electric conductors shall be elevated over or placed under the walkway or working surfaces or covered by adequate crossover planks. While a walkway is being used as a working surface, that portion shall be cordoned off to prevent it from being used as a walkway.

All working areas on vessels and dry docks shall be:

(a) Cleared of tools, materials, and equipment that are not necessary to perform the job in progress;

(b) Cleared of debris, including solid and liquid wastes, at the end of each workshift or job, whichever occurs first;

(c) Maintained, so far as practicable, in a dry condition. When a wet process is used, the employer shall maintain drainage and provide false floors, platforms, mats, or other dry standing places.

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C.8. PERMITS AND RESPONSIBILITIES

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/over-dimensional materials.

TECHNICAL PROVISIONS

C.9. SUBMITTALS

a. General. All submittals shall be furnished in electronic format and any drawings prepared with

AutoCad or another design/drafting program shall be submitted in that format.

b. Offerors. Offerors shall submit the required information with their proposals as described in Section

L:

c. Contractor.

The Contractor shall submit the following within ten (10) weeks of contract award:

• A detailed project schedule showing dates, timelines, tasks percent complete progress, and critical paths for all engineering tasks, materials procurement and delivery, all facets of vessel fabrication and equipment installations, tests and trials, and performance of all other salient features of the work. Updated schedules shall be provided monthly with more frequent updates as work progresses.

• Project-specific health and safety plan outlining how the Contractor will maintain the health and safety of all personnel (Contractor, Corporation and others).

• Quality Control Plan including qualification and certification data for firms and personnel performing quality control activities.

• Welder performance qualification records (required 30 days prior to undertaking any hotwork).

For the purposes of this specification, “approval” of submittals means that the Corporation has reviewed them for completeness and for general conformance to the design concepts. “Approval” of any submittal does not relieve the Contractor from responsibility for proper workmanship, material conformance, dimensional accuracy and design adequacy. The Contractor retains sole responsibility for dimensional accuracy of new fabrications and installations.

The Contractor shall provide a copy of the marked up drawings to the COR upon completion of the project while the Contractor prepares the as-built drawings in an electronic format. The as-built drawings are due no later than

60 days after project acceptance.

C.10. BRAND NAME OR EQUAL

(a) If an item in this solicitation is identified as “brand name or equal,” the purchase description reflects the characteristics and level of quality that will satisfy the Corporation’s needs. The salient physical, functional, or performance characteristics that “equal” products must meet are specified in the solicitation.

(b) To be considered for award, offers of “equal” products, including “equal” products of the brand name manufacturer, must—

(1) Meet the salient physical, functional, or performance characteristic specified in this solicitation;

(2) Clearly identify the item by—

(i) Brand name, if any; and

(ii) Make or model number;

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(3) Include descriptive literature such as illustrations, drawings, or a clear reference to previously furnished descriptive data or information available to the Contracting Officer; and

(4) Clearly describe any modifications the offeror plans to make in a product to make it conform to the solicitation requirements. Mark any descriptive material to clearly show the modifications.

(c) The Contracting Officer will evaluate “equal” products based on information furnished by the offeror or identified in the offer and reasonably available to the Contracting Officer. The Contracting Officer is not responsible for locating or obtaining any information not identified in the offer.

(d) Unless the offeror clearly indicates in its offer that the product being offered is an “equal” product, the offeror shall provide the brand name product referenced in the solicitation.

C.11. PROTECTION

The Contractor shall maintain a plan of fire prevention, fire detection, and firefighting to protect each vessel module assembly and the assembled vessel prior to delivery. The Contractor shall maintain a plan of flooding prevention, flooding detection, flooding repair and dewatering capability to protect the vessel while it is waterborne and prior to delivery. The Contractor shall provide, for the plant and work in process, reasonable safeguards against all hazards, including unauthorized entry, malicious mischief, theft, vandalism, and fire.

The Contractor shall ensure that the vessel 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.

C.12. ACCEPTANCE OF THE WORK

After completion of all work contracted for, the COR will examine the work for final acceptance. All equipment/systems shall be tested by the Contractor in the presence of the COR or his designated representative at the Contractor’s facility. If defects are detected, the tests shall be repeated after the defects are corrected.

END OF SECTION C

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SECTION D

PACKAGING AND MARKING

D.1. PRESERVATION, PACKAGING, AND MARKING

The Contractor shall preserve, pack, and package all items in accordance with best established and functioning commercial practices to ensure delivery at destination and to prevent deterioration of items and damages due to the hazards of shipping, handling, and storage. Standard commercial preservation, packing, and packaging, practices shall be employed.

All packages shall be plainly marked on or adjacent to the exterior shipping label to show the contract number, description of contents, and the contractor’s name.

SLSDC Delivery Address:

U.S. Department of Transportation

Saint Lawrence Seaway Development Corporation

251 Fregoe Road

Massena, New York 13662

D.2. PREPARATION AND CARE OF TUG

The tug shall be prepared for delivery in accordance with Section C, and the Section H clause entitled “Delivery of Completed Tug.” Delivery is FOB Destination to Massena, NY.

D.3. SPARE PARTS

All spare parts shall be placed aboard the tug by the Contractor after they have been packaged and marked by the

Contractor in accordance with the contract specifications.

D.4. MARKINGS OF WARRANTED ITEMS

Pursuant to the requirements of FAR 46.706(b)(5), the Contractor shall stamp or mark the items delivered or otherwise furnish notice with the items of the existence of the warranty. Brief markings shall include:

• A statement that the warranty exists,

• The substance of the warranty,

• Warranty duration, and

• Whom to notify if the supplies are found to be defective.

For commercial items, the Contractor’s trade practice in warranty marking is acceptable if sufficient information is presented for supply personnel and users to identify warranted supplies.

END OF SECTION D

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SECTION E

INSPECTION AND ACCEPTANCE

All operational practices of the Contractor and all workmanship, material, equipment, and articles used in the performance of work under this contract shall be in accordance with the best commercial marine practices and the rules and requirements of all appropriate regulatory bodies including, but not limited to the American Bureau of

Shipping, the U.S. Coast Guard, and the Institute of Electrical and Electronic Engineers, in effect at the time of

Contractor's submission of offer, and shall be intended and approved for marine use.

The Corporation may inspect and test all material and workmanship at any time during the Contractor's performance of the work.

The Contractor shall perform work in accordance with the contract, any drawings and specifications made a part of this contract, and any change or modification issued under the Changes clause.

(1) If, prior to delivery, the Government finds any material or workmanship is defective or not in accordance with the contract, the Corporation may reject the defective or nonconforming material or workmanship and require the Contractor to correct or replace it at the Contractor's expense.

(2) As specified in the contract, the Contractor shall provide and maintain an inspection system acceptable to the Government.

(3) The Contractor shall maintain complete records of all inspection work and shall make them available to the

Government during performance of the contract and for 90 days after the completion of all work required.

The Contractor shall not permit any welder to work on a vessel unless the welder is, at the time of the work, qualified to the standards established by the U.S. Coast Guard, American Bureau of Shipping, or Department of the Navy for the type of welding being performed. Qualifications of a welder shall be as specified in the contract.

The Contractor shall provide “Safe for Workers” labels, in accordance with the OSHA regulations stated in 29

CFR 1915.11-12, for all confined and enclosed spaces prior to permitting entrance for work or inspection. This procedure shall be reflected in the Contractor’s Safety Plan.

52.246-2 INSPECTION OF SUPPLIES – FIXED PRICE (AUG 1996)

52.246-16 RESPONSIBILITY FOR SUPPLIES (APR 1984)

E.1. ACCEPTANCE OF DATA AND DOCUMENTATION

All contract data deliverables including drawings, reports, calculations and manuals will be reviewed by the

Corporation and/or its designee for various purposes, including progress monitoring, quality checks (random and systematic), and to ensure the Corporation has a reasonable expectation of the Contractor meeting the contract requirements. Deliverables may be returned with comments, recommendations, or with advisory notes concerning contract compliance.

Final approval and/or acceptance of documentation required herein will be by letter of approval and/or acceptance from the Contracting Officer. Any letter of acknowledgment of receipt of material shall not be construed as a waiver of review or as an acknowledgment that the material is in conformance with the contract.

Approvals will be limited to the extent defined in the contract. Approval of design deliverables will not relieve the Contractor from meeting the contract requirements including, but not limited to, performance and verification requirements. For all deliverables that require Government acceptance, the Corporation will provide a response

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E.2. LAUNCHING

The Contractor shall be responsible for the satisfactory launching of the vessel at the time and date selected and mutually agreed upon by the Contractor and the COR. The Contractor shall provide a written notice to the

COR ten (10) calendar days prior to the launching. Prior to launching, all painting below the main deck (interior and exterior) must be completed. The hull interior and exterior surfaces shall be thoroughly inspected by an authorized Government representative or its designee to verify compliance with the requirements of the specification. The vessel shall not be launched until the hull painting has been approved by the COR.

The condition of the vessel shall be recorded at the time of launch. This shall include the levels of all tanks, draft and freeboard readings at the port and starboard forward, midship, and aft locations, a list of shipyard equipment on board, an estimate percent of the vessel complete, and the time and date of the launch.

After launching, all tanks and voids shall be inspected for damage and leaks, and their conditions shall be inspected for damage and leaks, and their conditions shall be recorded.

E.3. FINAL INSPECTION

When all work and testing has been satisfactorily completed at the builder’s yard, the Contractor and a

Government Representative shall make a complete physical inspection and inventory of the vessel. A “punch list” of deficiencies (if any) will be developed and presented to the Contractor for corrective action. All corrective action necessary to eliminate the “punch list” deficiencies shall be completed at the Contractor’s facility. The

Contractor shall give the COR seven (7) working days’ notice prior to the desired date of re-inspection.

Prior to any inspection or re-inspection, the vessel and all its equipment shall be thoroughly cleaned and all painting and finishes required to be performed by the Contractor put in first class condition.

E.4. PROVISIONAL ACCEPTANCE AND DELIVERY

Delivery of the vessel may not be started until provisional acceptance of the vessel has been made. The vessel will be provisionally accepted at the builder’s yard upon satisfactory completion of the following:

• Tests and trials

• Correction of all “punch list” deficiencies

Delivery of the vessel may not be started until provisional acceptance of the vessel is made at the Contractor’s facility. The Contractor shall deliver the vessel to Government’s facility as required in Section F of the contract.

The Contractor shall assume all costs associated with the delivery of the vessel. The vessel shall be subject to a complete inspection at the time of delivery.

E.5. FINAL ACCEPTANCE

Final acceptance will be made upon delivery of the vessel, afloat and “Ready for Service” at the delivery point.

At the time of Final Acceptance, the vessel will be “Ready for Service”, which is defined as:

• clean inside and out

• all trash, dunnage, lashing, and delivery related material disposed of

• loose items of outfit in place

• all electrical and mechanical systems operational

• equipment properly adjusted

• instruments and electronics calibrated or aligned

• fuel tanks filled, outboard and portable gasoline tanks filled, lube oil tank filled, gear oil tank

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• all waste tanks empty

• damaged paint touched up

• completion of Final Acceptance Demonstrations

• all required contract deliverables

The Contractor shall provide necessary personnel, equipment and materials and assumes all costs to make the vessel “Ready for Service”. At final acceptance, the vessel shall be subject to a complete inspection with every space, compartment, and deck of the vessel shall be cleaned to the satisfaction of the COR.

Upon completion and delivery of the vessel, the Contractor shall provide the Government with one (1) paper and one

(1) electronic copy of the Operating Manual. One copy of a complete Tests and Trials Report containing an organized record of all tests and trials required by the contract specifications shall also be provided to the Government.

END OF SECTION E

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SECTION F

DELIVERIES OR PERFORMANCE

52.242-17 GOVERNMENT DELAY OF WORK (APR 1984)

52.247-34 F.O.B. DESTINATION (NOV 1991)

F.1. Upon the award of the contract, the Contractor shall promptly start the work specified and shall diligently prosecute the work to completion. The Contractor shall not start work until the contract has been awarded except in the case of emergency work ordered by the Contracting Officer in writing.

The Contractor shall without charge—

(1) Make access available to Corporation personnel and/or its designees of the vessel at all times during the project duration acceptable to the Contracting Officer;

(2) Supply and maintain suitable brows and gangways from the pier, dry dock, or marine railway to the vessel;

(3) Furnish suitable offices, office equipment and telephones at or near the site of the work for the

Corporation's use.

F.2. The Corporation requires delivery of the tug to be made within twelve (12) months of award of a contract.

The tug shall be delivered FOB Destination to:

U.S. Department of Transportation

Saint Lawrence Seaway Development Corporation

251 Fregoe Road

Massena, New York 13662

F.3. The tug shall be delivered with all items such as, but not limited to, equipment, accessories, appliances, plumbing fixtures, walls (interior and exterior), floors and decks, ceilings and overheads, windows, machinery spaces, etc., displaying an obvious appearance of being new and unused. The tug shall be free of dirt and debris associated with construction and adequately prepared for transportation to destination. The tug shall, in addition to the above, also display the highest level of cleanliness such that all areas of the tug can be immediately put to its intended use.

END OF SECTION F

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SECTION G

CONTRACT ADMINISTRATION DATA

G.1. CONTRACT ADMINISTRATOR

Patricia L. White, Contracting Officer, Saint Lawrence Seaway Development Corporation, 180 Andrews Street, Massena, New York, 13662, telephone number (315) 764-3236, facsimile number (315) 764-3268, and e-mail address patricia.white@dot.gov will administer the contract.

No oral or written statement by anyone other than the Contracting Officer shall modify or otherwise affect any contract clause. Only Contracting Officers acting within their scope of authority can execute contract modifications on behalf of the Government (SLSDC). No claim by the Contractor for any increase in the contract price or adjustment in the performance schedule shall be valid except as may be covered by a duly executed contract modification.

G.2. LIABILITY AND INSURANCE

(a) The Contractor shall exercise its best efforts to prevent accidents, injury, or damage to all employees, persons, and property, in and about the work, and to the vessel or part of the vessel upon which work is done.

Notwithstanding this clause, 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 in the vessel or such materials and equipment for which the Contractor is responsible, in accordance with the clauses of the contract concerning quality assurance, warranty or inspection.

(b) All policies under this clause shall be delivered to the Contracting Officer for their approval and custody. The terms of the policies, the insurance companies and the underwriters shall at all times be satisfactory to the

Contracting Officer. Policies not in conformance herewith shall be surrendered and cancelled upon the direction of the Contracting Officer, and new policies procured in conformance herewith.

(c) Marine Builder’s Risk Insurance shall provide coverage for the tug. The coverage shall include vessel underway activity prior to delivery, and shall be on an “all risk” basis and shall be for a value equal to the

Contractor’s actual cost of the tug plus “soft cost expense cover” (including but not limited to, additional construction financing interest, construction load fees, engineering expenses/fees, insurance premiums, accounting fees, project administration expenses, attorneys’ fees, and fees and other costs associated with such damage or loss). The coverage shall be written without risk of liability of the Government for payment and without deduction for depreciation. There shall be no coinsurance penalty provision in any such policy. The policy deductible shall not exceed one hundred thousand dollars per occurrence.

In addition to liability for physical loss of, or damage to, or damage caused by the vessel imposed upon the

Contractor by law or contract, as provided herein, the Marine Builder’s Risk Insurance Policy shall be written to specifically include all Tug underway activity as often as necessary for completion and testing of the contract work; a statement that the policy is primary to all other collectible insurance; a waiver of subrogation against the

Government and all subcontractors at any tier; coverage for hurricanes, ice flows, earthquake, and tornados;

coverage for renewal of faulty welds, and coverage for hull and machinery, and all other equipment and materials while the vessel is at the shipyard or other premises of the Contractor or any subcontractor.

Additional Insured: The Saint Lawrence Seaway Development Corporation shall be added as additional insured and loss payee with regard to claims arising from the operations and activities performed by or on behalf of the

Named Insured.

mailto:patricia.white@dot.gov

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(d) Indemnification: The Contractor indemnifies and holds harmless the Government, its agencies and instrumentalities, against all suits, actions, claims, costs or demands, (including, without limitation, suites, actions, claims, costs or demands resulting from death, personal injury, and property damage) to which the Government, its agencies, instrumentalities, may be subject or put by reason of damage or injury (including death) to the property or person of anyone other than the Government, its agencies, instrumentalities and personnel, arising or resulting in whole or in part from the fault, negligence, wrongful act or wrongful omission of the Contractor, or other subcontractor, or their servants, agents or employees; provided, that the Government and the vessel and its owners against all claims, demands, or causes of action to which the Government, the vessel or its owner(s) might be subject as a result of damage or injury (including death) to the property or person of anyone other than the

Government or its employees, or the vessel or its owner, arising in whole or in part from the negligence or other wrongful act of the Contractor, or its agents or employees, or any subcontractor, or its agents or employees.

(1) The Contractor's obligation to indemnify under this paragraph shall not exceed the sum of $10,000,000 as a consequence of any single occurrence with respect to any one vessel.

(2) The indemnity includes, without limitation, suits, actions, claims, costs, or demands of any kind, resulting from death, personal injury, or property damage occurring during the period of performance of work on the vessel;

and with respect to any such suits, actions, claims, costs, or demands resulting from death, personal injury or property damage occurring after the expiration of such period, the rights and liabilities of the Government and the

Contractor shall be as determined by other provisions of this contract and by law; provided, however, that such indemnity shall apply to death occurring after such period which results from any personal injury received during the period covered by the Contractor’s indemnity as provided herein.

(e) Additional Insurance: The Contractor shall, at its own expense, obtain and maintain Workers Compensation

Insurance (or its equivalent) covering the employees engaged on the work. The Contractor shall ensure that all subcontractors engaged on the work obtain and maintain the insurance required in this paragraph. Upon request of the Contracting Officer, the Contractor shall provide evidence of the insurance required by this paragraph.

(f) The Contractor shall give the Contracting Officer written notice as soon as practicable after the occurrence of a loss or damage for which the Government has assumed the risk. The notice shall contain full details of the loss or damage. If a claim or suit is later filed against the Contractor as a result of the event, the Contractor shall immediately deliver to the Government every demand, notice, summons, or other process received by the

Contractor or its employees or representatives. The Contractor shall cooperate with the Government and, upon request, shall assist in effecting settlements, securing and giving evidence, obtaining the attendance of witnesses, and in the conduct of suits. The Government shall reimburse the Contractor for expenses incurred in this effort, other than the cost of maintaining the Contractor's usual organization.

(g) In the event of loss of or damage to any vessel(s), material, or equipment which may result in a claim against the Government under the insurance provisions of this contract, the Contractor shall promptly notify the

Contracting Officer of the loss or damage. The Contracting Officer may, without prejudice to any right of the

Government, either—

(1) Order the Contractor to proceed with replacement or repair, in which event the Contractor shall effect the replacement or repair;

(i) The Contractor shall submit to the Contracting Officer a request for reimbursement of the cost of the replacement or repair together with whatever supporting documentation the Contracting Officer may reasonably require, and shall identify the request as being submitted under the Insurance clause of this contract.

(ii) If the Government determines that the risk of the loss or damage is within the scope of the risks assumed by the Government under this clause, the Government will reimburse the Contractor for the reasonable allowable cost of the replacement or repair, plus a reasonable profit (if the work or replacement or repair was performed by the Contractor) less the deductible amount specified in paragraph (c) of this clause.

(iii) Payments by the Government to the Contractor under this clause are outside the scope of and shall not affect the pricing structure of the contract, and are additional to the compensation otherwise payable to the

Contractor under this contract; or

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(2) Decide that the loss or damage shall not be replaced or repaired and in that event, the Contracting Officer shall—

(i) Modify the contract appropriately, consistent with the reduced requirements reflected by the unreplaced or unrepaired loss or damage; or

(ii) Terminate the repair of any part or all of the vessel(s) under the Termination for Convenience of the

Government clause of this contract.

G.3. PERFORMANCE BONDS

52.228-16 PERFORMANCE AND PAYMENT BONDS—OTHER THAN CONSTRUCTION (NOV 2006)

ALTERNATE I (JUL 2000)

a) Definitions. As used in this clause—

“Original contract price” means the award price of the contract or, for requirements contracts, the price payable for the estimated quantity; or, for indefinite-quantity contracts, the price payable for the specified minimum quantity. Original contract price does not include the price of any options, except those options exercised at the time of contract award.

(b) The Contractor shall furnish a performance bond (Standard Form 1418) for the protection to the Government in an amount equal to 100% percent of the original contract price.

(c) The Contractor shall furnish all executed bonds, including any necessary reinsurance agreements, to the

Contracting Officer, within ten (10) days, but in any event, before starting work.

(d) The Government may require additional performance bond protection if the contract price is increased. The

Government may secure the additional protection by directing the Contractor to increase the penal amount of the existing bond or to obtain an additional bond.

(e) The bonds shall be in the form of firm commitment, supported by corporate sureties whose names appear on the list contained in Treasury Department Circular 570, individual sureties, or by other acceptable security such as postal money order, certified check, cashier's check, irrevocable letter of credit, or, in accordance with Treasury

Department regulations, certain bonds or notes of the United States. Treasury Circular 570 is published in the

Federal Register, or may be obtained from the:

U.S. Department of the Treasury

Financial Management Service

Surety Bond Branch

3700 East West Highway, Room 6F01

Hyattsville, MD 20782.

Or via the internet at http://www.fms.treas.gov/c570/.

G.4. CONTRACTING OFFICER DELEGATION OF AUTHORITY

The Contracting officer may delegate all or part of her authority to administer this contract. Such a delegation will be in writing and will describe the extent of the authority delegated. The Contracting Officer will provide a copy of such delegation to the Contractor.

G.5. CONTRACTING OFFICER'S REPRESENTATIVE (COR)

The Contracting Officer may designate Government personnel or other Contractors to act as the Contracting Officer’s

Representative (COR) to perform functions under the contract such as review and/or inspection and acceptance of supplies, services, including construction, and other functions of a technical nature. The Contracting Officer will provide a written notice of such designation to the Contractor within five working days after contract award. The designation letter will set for the authorities and limitations of the COR under the contract. The COR will ensure that the Corporation's project objectives are met, along with providing necessary information, direction, coordination, etc., within the contractual work description. The COR is not authorized to change any of the terms or conditions of this contract nor sign documents such as contracts or contract modifications.

http://www.fms.treas.gov/c570/

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G.6. CONTRACTOR REPRESENTATIVES AUTHORIZED TO SIGN DOCUMENTS

Upon execution of the Contract, the Contractor shall provide a list to the Contracting Officer, which identifies those Contractor representatives who are authorized to sign written communications on behalf of the Contractor.

The report shall specifically contain the following: (1) name of individual authorized to sign Contractor-generated technical data and Contractor management type documentation, and (2) type of documentation each individual is authorized to sign. Upon addition or deletion of one or more names, the list shall be revised accordingly.

G.7. ADDITIONAL WORK

a. The Contractor shall not perform any additional work without the Contracting Officer's authorization.

b. The Contractor, in connection with any proposal he/she makes for a contract modification, shall furnish a price breakdown directly to the Contracting Officer, itemized as required by the Contracting Officer. Unless otherwise directed, the breakdown shall be in sufficient detail to permit an analysis of all materials, labor, equipment, subcontract, overhead costs, and profit covering all work involved in the modification whether such work was deleted, added or changed. Any amount claimed for subcontracts shall be supported by a separate, similar price breakdown. If the proposal includes a request for a time extension, justification shall be furnished with the proposal.

c. The Contracting Officer reserves the right to accomplish additional work on the basis of a negotiated fixed price when it is in the best interest of the Corporation.

G.8. PROGRESS PAYMENTS

(a) Approval and payment of requests.

(1) The Contractor shall not be entitled to payment of a request for performance-based payment prior to successful accomplishment of the event or performance criterion for which payment is requested. The Contracting

Officer shall determine whether the event or performance criterion for which payment is requested has been successfully accomplished in accordance with the terms of the contract. The Contracting Officer may, at any time, require the Contractor to substantiate the successful performance of any event or performance criterion which has been or is represented as being payable.

(2) A payment under this performance-based payment clause is a contract financing payment under the

Prompt Payment clause of this contract and not subject to the interest penalty provisions of the Prompt Payment

Act.

(3) The approval by the Contracting Officer of a request for performance-based payment does not constitute an acceptance by the Government and does not excuse the Contractor from performance of obligations under this contract.

(c) Content of Contractor’s request for performance-based payment. The Contractor’s request for performance-based payment shall contain the following:

(1) The name and address of the Contractor;

(2) The date of the request for performance-based payment;

(3) The contract number and/or other identifier of the contract or order under which the request is made;

(4) Such information and documentation as is required by the contract’s description of the basis for payment;

and

(5) A certification by a Contractor official authorized to bind the Contractor, as specified below:

I certify to the best of my knowledge and belief that—

(1) This request for performance-based payment is true and correct; this request (and attachments) has been prepared from the books and records of the Contractor, in accordance with the contract and the instructions of the Contracting Officer;

(2) (Except as reported in writing on __________), all payments to subcontractors and suppliers under this contract have been paid, or will be paid, currently, when due in the ordinary course of business;

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(3) There are no encumbrances (except as reported in writing on _________) against the property acquired or produced for, and allocated or properly chargeable to, the contract which would affect or impair the

Government's title;

(4) There has been no materially adverse change in the financial condition of the Contractor since the submission by the Contractor to the Government of the most recent written information dated

_____________; and

(5) After the making of this requested performance-based payment, the amount of all payments for each deliverable item for which performance-based payments have been requested will not exceed any limitation in the contract, and the amount of all payments under the contract will not exceed any limitation in the contract.

(e) The Corporation shall withhold 3% from each performance based payment as retainage (CLIN 0001 ONLY).

When the work is substantially complete, the Contracting Officer may retain from previously withheld funds and future payments that amount the Contracting Officer considers adequate for protection of the Government and shall release to the Contractor all the remaining withheld funds.

(i) Upon completion of the work and prior to final payment, the Contractor shall furnish to the Contracting

Officer a "Release of Claims."

G.9. The Contractor shall not in any way represent that he/she is part of the United States Government or that he/she has the authority to contract or procure supplies on the credit of the United States of America.

G.10. COMPLIANCE WITH EXECUTIVE ORDERS

• EXECUTIVE ORDER (EO) 13043: INCREASING SEAT BELT USE IN THE UNITED STATES

The contractor is encouraged to adopt and enforce on-the-job seat belt use policies and programs for its employees when operating company-owned, rented, or personally owned vehicles.

END OF SECTION G

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SECTION H

SPECIAL CONTRACT REQUIREMENTS

H.1. ACCESS TO THE CONTRACTOR’S FACILITY

Officers, employees, and associates of other prime contractors with the Government and their subcontractors, shall, as authorized by the Contracting Officer, have at all reasonable times, admission to the Contractor’s facility, where and as required, and be permitted within the Contractor’s facility 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 Contracting Officer, to be given admission to the

Contractor’s facility, office, space, work areas, storage or shop areas, or other facilities and services reasonable and necessary for the performance of the respective responsibilities involved. Reasonable access shall be provided to the

Government to carry out its responsibilities under this contract.

H.2. INCORPORATION OF SECTION K BY REFERENCE

In accordance with FAR 15.406-1(b), Part IV of the Uniform Contract Format shall not be physically included in the resulting contract, but shall be retained in the contract file. Section K, Representations, Certifications, and Other

Statements of Offerors (as completed by the Contractor) shall be incorporated by reference in the contract.

H.3. POSTAWARD CONFERENCE

A Post Award Conference (PAC) shall be conducted within thirty (30) days of award. The conference will be conducted by telephone or on-site at the Government’s facility. The Contracting Officer will establish the date and time and notify the proper Government representatives and the contractor. The purpose of the conference is to (1) achieve a clear and mutual understanding of all contract requirements, (2) identify and resolve potential problems, and

(3) discuss the roles and working relationships between the Contractor and the Government.

H.4. NOTIFICATION OF CONTRACT PROBLEMS

The purpose of this requirement is to obtain prompt reporting of any contract problem. The parties acknowledge that proper administration of this contract requires that potential problems be identified and resolved as they arise.

The Contractor shall use Contract Problem Identification Reports (CPIR) to promptly notify the Government of actual or potential contract problems and for establishing an early dialogue between the Contractor and the Government with regard thereto.

As used in this clause, a "contract problem" is a fact, circumstance, or any conduct of which the Contractor is aware that does, will, or reasonably is anticipated to:

• Have a significant or substantial impact on the delivery schedule or completion of contract performance, or the cost of performance of the contract, or

• Require a modification to the contract or specification(s).

The Contractor shall report each contract problem promptly, and in no event later than three (3) calendar days, after the Contractor identifies such contract problem. A written CPIR shall be transmitted to the Contracting Officer at the address listed in Section G.1. Emailed transmittals are preferred. Each CPIR shall be entitled "Contract Problem

Identification Report", shall be dated, numbered sequentially, and shall include but to not be limited to the following:

• The nature of the contract problem;

• The date on which the contract problem arose and the date on which the contract problem was identified as such;

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• The anticipated direct and consequential effects of the contract problem upon the delivery schedule or completion of contract performance or the cost of performance of the contract;

• Identification of the supplies and/or services which are or may be affected; and,

• The Contractor's plan for resolution of the contract problem, including the intended course of action to mitigate or correct the problem.

Follow-up status reports of each contract problem, identified by the original CPIR number, shall be furnished monthly, or more frequently as required by the Contracting Officer. A final follow-up report shall be furnished immediately following resolution of each contract problem.

The Contractor shall take no action to implement any change resulting from a contract problem until advised by the

Contracting Officer in writing. unless a change was previously directed by the Contracting Officer, in which case the

Contractor shall conform to the previous direction. Nothing in this paragraph shall excuse the Contractor from proceeding with contract work other than implementation of a change or from proceeding in accordance with directions issued by the Contracting Officer.

H.5. DELIVERY OF COMPLETED TUG

The tug shall not be presented for preliminary acceptance until it is determined by the Contracting Officer that the

Contractor has satisfactorily…