RFQ 70Z02326QSHIPHULL.pdf

Commanding Officer United States Coast Guard

2703 Martin Luther King Jr. Ave. SE Washington, DC 20593-7828 Staff Symbol: CG-HCA-COCO-23 Phone: 571-607-4824 Email: Terry.L.Newton@uscg.mil

June 17, 2026

To: Quoters

Subject: Request for Quote (RFQ) No. 70Z02326QSHIPHULL Maritime Safety Center Engineering and Technical Support Services

The United States Coast Guard (USCG) Maritime Safety Center (MSC) invites your company to submit a quote in response to the subject RFQ.

All responses to this RFQ shall be submitted electronically by email to the address provided below before the deadline specified in the below instructions.

This acquisition is being conducted pursuant to Federal Acquisition Regulation (FAR) Subpart 12.201-1 Simplified procedures. This acquisition is 100% small business set-aside and is being issued under NAICS 541330 Exception 3 (Marine Engineering and Naval Architecture). The primary place of performance will be designated by the contractor. Subject to space availability and the COR’s approval, place of performance may be at the Department of Homeland Security at the U.S. Coast Guard Headquarters, 2703 Martin Luther King Jr. Ave SE, Washington, D.C. 20593-7430.

The Government contemplates award of one (1) time and materials labor-hour contract with fixed hourly rates; however, the Government reserves the right to make no award at all. This RFQ does not commit the Government to pay for the preparation and submission of a Quote. The Government also reserves the right to award without exchanges or communications based upon initial submissions.

The period of performance (POP) includes a base period and one (1) 12-month option period.

The estimated period of performance will be from 09/01/2026 to 08/30/2028.

Any Quote that is non-compliant with any requested submission requirements of this RFQ may immediately be removed from further consideration.

RFQ # 70Z02326QSHIPHULL

The following shows the anticipated CLIN structure:

Period CLIN Contract Type CLIN Description

Base Period 0001 Time and Material Labor Hour (T&MLH)

Professional Engineering and Technical Support Services in accordance with the Performance Work Statement.

Option Period One (1) 0101 Time and Material Labor

Hour (T&MLH)

Professional Engineering and Technical Support Services in accordance with the Performance Work Statement.

Submission Instructions

Quoters shall submit their quote directly to the Contracting Officer via email at Terry.L.Newton@uscg.mil. All quotes are due no later than 23:59 (11:59 PM) ET, on 06 July 2026. All questions or requests for clarifications shall be submitted directly to contracting officer Terry.L.Newton@uscg.mil no later than 23:59 (11:59 PM) ET, on 25 June 2026. Please note this RFQ shall not be considered direction to proceed with the subject effort, nor a promise of future direction to proceed. Quoter is solely responsible for quote costs.

A cover sheet (not to exceed one (1) page) shall be included for all submissions. The cover letter shall be included on Volume I and include the quoter’s name and address; U.S. Coast Guard solicitation number; Unique Entity Identifier (UEI); CAGE number; quoter’s point of contact including their phone number and e-mail address, and the date the quoter’s submission expires.

Minimum acceptable font size is no smaller than eleven (11) point and no smaller than ten (10) point for tables, charts, or graphs. Page size shall be letter size (8.5” x 11”); tables, charts, or graphs may be legal size, 8.5” x 14”.

It is the quoter’s responsibility to ensure sufficient time is provided for electronic submissions to be processed through the Government’s electronic point-of-entry. The quoter shall acknowledge the solicitation and all amendments thereto.

The quoter shall submit three (3) volumes. Volume I shall contain the quoter’s response to Factor 1, Experience and Factor 2, Management Approach. Page limits will be strictly adhered to. Any pages beyond the limit of the entire volume, will not be evaluated. For example, if the page limit to Factor 1 and Factor 2 combined are five (5) pages, and your volume I contains eight (8) pages, the last three (3) pages of Volume I will be removed and will not be evaluated.

Volume II shall contain the quoter’s response to Factor 3, Price. Volume III, if required, shall contain any required acknowledgment of amendments (if required), fillable provisions or clauses (if required), or other information as directed by the Government. There is no page limit to Volume III. All terms (price and non-price) shall be valid for a period no less than 120 days from date of solicitation.

• Volume I – Experience and Management Approach

• Volume II – Price

• Volume III – Acknowledgment of Amendments (if required), fillable provisions or clauses (if required), or other information as directed by the Government mailto:Terry.L.Newton@uscg.mil

Volume I – Experience and Management Approach

Factor 1 Experience

Factor 1 – Experience (two (2) Page Limit)

Quoters shall demonstrate the following:

• Rhinoceros Ship Hull Modeling Experience o Provide relevant commercial or academic project(s), where your firm used Rhinoceros for ship hull modeling, including parametric model creation and automation (Python or Grasshopper).

o Submit at least one sample ship hull model (.3dm format) created by proposed personnel.

• Hull Design and Hydrostatics Analysis o Provide your firm’s experience developing and analyzing hydrostatics properties of ships as part of hull modeling projects.

o Provide your firm’s experience generating ship models in any form from:

2D drawings Point clouds Other input

• Python Programming for Naval Architecture o Provide your firm’s Python programming experience and include specific parts of the coding that proposed personnel completed.

Factor 2 Management Approach

Factor 2 – Management Approach (Three (3) Page Limit, resumes and transition plan do not count toward page limit)

Quoters shall demonstrate in their quote the following:

• Approach to effectively manage the administration of this contract to include managing subcontractors (if applicable), managing contractor employees, and responding to government concerns.

• Resumes shall be submitted for key personnel—each resume shall not exceed two

(2) pages. In accordance with HSAR Clause 3052.215-70 and PWS Section 3, the following positions are designated as Key Personnel: Project Engineer.

Volume II – Price

Factor 3 Price

Quoters shall complete and submit Attachment A – Price Sheet by filling in their proposed Labor Category, the estimated hours (level of effort), and the hourly rate for that Labor Category.

It is imperative that the contractor’s quoted price accurately reflects the price of the Base Period, the price for Option Period One (1) and the total price for a six (6) month extension under 52.217-8.

Failing to follow instructions may have an impact on the Total Evaluated Price (TEP). All quoted prices shall be fully burdened.

The Government will verify the Contractor’s TEP in Attachment A – Price Spreadsheet. The TEP will be calculated by adding the proposed total prices for the Base Period, Option Period One (1), and six (6) month Option under FAR 52.217-8. Pricing will be evaluated to determine if the labor categories and labor rates proposed are appropriate for the USCG’s requirements. The Government will consider the level of effort and the labor mix proposed to perform the PWS requirements, as well as determine whether the proposed TEP, is reasonable. If your pricing is based on other than the Government’s estimate, then the Government will evaluate its rationale.

Additionally, the Government will evaluate proposed labor rates (inclusive of any applicable discounts) for reasonableness. Quotes containing labor rates determined to be unreasonable may result in the Quote being determined non-responsive.

For the purposes of the award of this Order, the Government intends to evaluate the Option to Extend Services in accordance with Federal Acquisition Regulation (FAR) clause 52.217-8 as follows:

To account for the option periods possible under 52.217-8 (maximum of six months), Options to Extend Services, the Government will evaluate the option to extend services by adding six months of the Quoter’s final option period price to the Quoter’s total price. This amount will be the Total Evaluated Price. The Government may choose to exercise the Option to Extend Services at the end of any performance period (base or option period). Prices for the Base and Option Periods, including the 6-month option available under FAR 52.217-8, will be evaluated to ensure that they are fair and reasonable for performance of the requirements established in the solicitation and as proposed in the technical submission. The price for the effort associated with FAR 52.217-8 will not be included in the total awarded value at order award. If, at the end of the period of performance (the end of the Base period or any Option Period) and within the time period established in the clause, the Government chooses to exercise this option, the pricing will be pursuant to the rates specified in the order for the preceding performance period.

Cells have not been locked and some cells contain formulas. Only cells in gray may be filled in by the quoter.

The quoter shall populate their solution’s Labor Categories (C5 and C7), and the corresponding Hourly Rate for that Labor Category (C5 and C7). The quoter shall complete the estimated number of hours for each Labor Category (D5 and D7).

Through formulas, the pricing sheet provides the Base Price + Option Period One, and the Total Evaluated Price (which includes the Option Period for up to Six Months (FAR R 52.217-8).

These cells auto-populate based on quoter inputs and shall not be manipulated.

The Government requests that the quoter consider discounting to the maximum extent possible.

Evaluation Criteria

Basis of Award

The Government intends to award one order resulting from this solicitation to the responsible Quoter whose offer conforming to the solicitation represents the best value (as defined in FAR 2.101) to the Government utilizing a trade-off evaluation process among price and non-price factors. Best value trade-off will be based on the following evaluation factors: Factor 1, Experience; Factor 2, Management Approach and Factor 3, Price.

Experience is more important than Management Approach, and when combined are significantly more important than Price.

Factor 1 Experience

The Government will assess its level of confidence for each Quoter based on the Quoter’s approach to:

• Rhinoceros Ship Hull Modeling Experience

• The number of projects completed using Rhinceros for ship hull modeling.

• Complexity and scale of projects (ex., size of vessels, level of detail.

• Inclusion of parametric model creation and automation techniques (Python or

Grasshopper).

• Use of Python computer programming.

• Hull Design and Hydrostatics Analysis

• Specific examples of hydrostatics properties analyzed.

• Tools and methodologies used for hydrostatic analysis.

• Integration of hydrostatic analysis within overall hull modeling projects.

• Python Programming for Naval Architecture

• Number and complexity of Python scripting projects completed for naval architecture.

• Specific applications of Python in ship hull modeling or hydrostatic analysis.

• Clarity and functionality of provided code snippets, including comments and documentation.

Factor 2 Management Approach

The Government will assess its level of confidence for each Quoter based on the Quoter’s experience with:

• Effectively manage the administration of this contract to including the management of subcontractors (if applicable), management of their employees, and responding to government concerns.

• Evaluate the quality and applicability of the products submitted to the Government.

• The resume(s) of key personnel to ensure they meet the qualifications listed in

Section 3 of the PWS.

Factor 3 Price

The Government will evaluate quotes to verify the accuracy of the quoter’s Total Evaluated Price (TEP) provided in Attachment A and will determine whether their proposed TEP is fair and reasonable. The TEP will be calculated by adding together the proposed total prices of the base period and all option periods. Adequate price competition is anticipated to support a determination of a fair and reasonable price.

Except when it is determined in accordance with FAR 17.206(b) not to be in the Government’s best interests, the Government will evaluate quotes for award purposes by adding the total price for all options to the total price for the basic requirement to determine the total evaluated price.

This includes options under FAR clause 52.217-8 (Option to Extend Services), which applies to this solicitation. Evaluation of options will not obligate the Government to exercise the option(s).

The Government will evaluate quotes for award purposes by adding the total price for all options to the total price for the basic requirement. To account for the option periods possible under 52.217-8 (maximum of six (6) months / Option to Extend Services), the Government will evaluate the option to extend services by adding six (6) months of the quoter’s final option period price to the quoter’s total price. This amount will be the total evaluated price. The Government may choose to exercise the Option to Extend Services, in total or incrementally, at the end of any performance period (base or option periods). Prices for the base and option periods, including the 6-month option available under FAR 52.217-8, will be evaluated to ensure that they are fair and reasonable for performance of the requirements established in the solicitation and as quoted in the technical submission. The price for the effort associated with FAR 52.217-8 will not be included in the total awarded value at contract award. If, at the end of the contract’s/order’s period of performance (the end of the base period or any option period) and within the time period established in the clause, the Government chooses to exercise this option, the pricing will be pursuant to the rates specified in the contract for the preceding performance period.

Rating Scheme

The Government will assess its level of confidence for the non-price evaluation Factor 1, Experience and Factor 2, Management Approach.

Rating Rating Definitions

High Confidence

The Government has high confidence that the quoter understands the requirement, quotes a sound approach, and will be successful in performing the contract with little or no Government intervention.

Some Confidence

The Government has some confidence that the quoter understands the requirement, quotes a sound approach, and will be successful in performing the contract with some Government intervention.

Low Confidence

The Government has low confidence that the quoter understands the requirement, quotes a sound approach, and will be successful in performing the contact even with Government intervention.

The Supplemental Terms and Conditions are below.

Thank you for your support of the United States Coast Guard, and for your consideration of submitting a response to this RFP.

Sincerely, Terry Newton Contracting Officer/Contracts Specialist

Attachments:

Attachment I: PWS Attachment A: Price Input

Supplemental Terms and Conditions

Clauses

Clauses Incorporated by Reference

Source Clause Clause Name Date FAR 52.209-10 Prohibition on Contracting with Inverted Domestic

Corporations

NOV 2015

FAR 52.212-4 Contract Terms and Conditions—Commercial Products and Commercial Services

NOV 2023

FAR 52.212-4 Contract Terms and Conditions-Commercial Products and Commercial Services-Alternate I

NOV 2021

FAR 52.222-50 Combating trafficking in Persons OCT 2025 FAR 52.232-40 Providing Accelerated Payments to Small Business

Subcontractors

MAR 2023

FAR 52.246-3 Changes-Time-and Materials or Labor-Hours SEPT 2000

Invoicing Instruction Addenda 52.212-4, Contract Terms and Conditions – Commercial Products and Services

Electronic Submission of Payment Requests (FSMS Awards)

(a) Definitions. As used in these instructions -

(1) “Payment request” means a bill, voucher, invoice, or request for contract financing payment with associated supporting documentation. The payment request must: comply with the requirements identified in FAR 32.905(b), “Content of Invoices” and the applicable Payment clause included in this contract. In addition, discount offerings and small business status if available must be stated. If travel was allowable and approved, components in accordance with FAR 31.205-46 must be provided.

(b) Except as provided in paragraph (c) of this clause, the contractor must submit payment requests electronically using the Invoice Processing Platform (IPP). Information regarding IPP, including IPP Customer Support contact information, is available at www.ipp.gov or any successor site.

(c) The contractor may submit payment requests using a method other than IPP only when the contracting officer authorizes alternate procedures in writing in accordance with Coast Guard procedures.

(d) If alternate payment procedures are authorized, the contractor must include a copy of the contracting officer's written authorization with each payment request.

(e) IPP enrollment information is at https://www.uscg.mil/fincen/IPP/.

(f) Receiving Official: Contracting Officer’s Representative https://www.uscg.mil/fincen/IPP/

Invoice Approver Official: Contracting Officer’s Representative

Mission Partner Identity, Credential and Access Management (MP ICAM)

(a) "Contractor employee" means an employee of a firm, or an individual, under contract or subcontract to the Coast Guard to provide services who also requires one or more of the following:

(1) Physical access to multiple Coast Guard facilities or multiple federally controlled facilities on behalf of the Coast Guard on a recurring basis (a minimum of two (2) times per week and/or eight (8) times per month) for a period of six (6) months or more.

(2) Remote access, via logon, to Coast Guard network using Coast Guard-approved remote access procedures.

(3) Both physical access to Coast Guard facility and logical access, via logon, to Coast Guard networks on-site or remotely. Access to the Coast Guard network must require the use of a computer with government-controlled configuration or use of Coast Guard-approved remote access procedure in accordance with the Defense Information Systems Agency (DISA) Security Technical Implementation Guide.

(b) Homeland Security Presidential Directive (HSPD)-12 mandates a federal standard for secure and reliable forms of identification for federal employees and contractor employees. The Common Access Card (CAC) is a personal identification card for the Department of Defense (DoD)/Uniformed Services and complies with HSPD-12. The Coast Guard has instituted the CAC as its HSPD-12 compliant personal identification card for contractor and subcontractor employees who are required to access a Coast Guard, DoD, or other federally-controlled computer information system and/or facility, or need public key infrastructure (PKI) authentication to perform their contractual duties. The Mission Partner Identity, Credential and Access Management (MP ICAM) (or successor system thereto) is the automated application process for obtaining a CAC.

(c) Contractor and subcontractor employees working pursuant to this contract who are required to access a Coast Guard, DoD, or other federally-controlled computer information system and/or facility, or need PKI authentication to perform their contractual duties must use MP ICAM (or successor system thereto) to obtain a CAC.

(d) The COR or Alternate COR (ACOR) is the MP ICAM Mission Partner Affiliation Sponsor

(MPAS) (or successor system corresponding role thereto) and initiates contractor accounts in the MP ICAM (or successor system thereto), approving, returning, or rejecting CAC applications (as applicable); re-verifying assigned contractors every six months; revoking contractor and employee eligibility for a CAC.

(e) The MPAS ensures that contractor personnel satisfy the security requirements for CAC issuance prior to creating the CAC application in MP ICAM (or successor system thereto).

Current investigative requirements must be verified according to Commandant Instruction

5500.18. The initial CAC issuance requires a favorably adjudicated Tier 1 investigation (equivalent or higher) or a Tier 1 background investigation (BI) (equivalent or higher) package that has been successfully scheduled with the investigative service provider (ISP) and an FBI fingerprint check with favorable results. The MPAS and Sponsor (or successor system corresponding role) or other appropriate federal government representative must coordinate with the unit BI Verifier (Command Security Officer / Mission Partner Affiliation Sponsor Manager) or the U.S. Coast Guard Security (SECCEN) to confirm the appropriate investigation has been favorably adjudicated or scheduled at the ISP with favorable FBI fingerprint results.

(f) The COR or contracting officer (KO) provides such forms to, or requests such information from, contractor employees that may be necessary for obtaining a CAC via the MP ICAM (or successor system thereto). The Contractor submits completed forms and information as directed by the COR or KO. Contractors are responsible for the accuracy and completeness of the information submitted and for any liability resulting from the government's reliance on inaccurate or incomplete information.

(g) Contractor employees who are declined via the MP ICAM (or successor system thereto) are ineligible to perform work under this contract.

(h) When an employee with a CAC is no longer performing work under this contract, the employee must return the CAC to the COR/MPAS (or successor system corresponding role thereto) or KO on the same day the employee stops working.

(i) The contractor must insert this requirement in all subcontracts when a subcontractor's employee is required to access a Coast Guard, DoD, or other federally-controlled computer information system and/or facility, or need PKI authentication to perform contractual duties.

(h) When an employee with a CAC is no longer performing work under this contract, the employee must return the CAC to the COR/MPAS (or successor system corresponding role thereto) or KO on the same day the employee stops working.

(End of Clause)

FAR 52.203-17 Contractor Employee Whistleblower Rights and Requirement to Inform Employees of Whistleblower Rights (APR 2024) (DHS-USCG DEVIATION 14-01, Revision 1).

(a) This contract and employees working on this contract will be subject to the whistleblower rights and remedies established at 10 U.S.C. 4701 and Homeland Security Acquisition Regulation (HSAR) 3.900 (DEVIATION) through 3.905 (DEVIATION).

(b) The Contractor shall inform its employees in writing, in the predominant language of the workforce, of employee whistleblower rights and protections under 10 U.S.C. 4701, as described in HSAR 3.900 (DEVIATION) through 3.905 (DEVIATION).

(c) The Contractor shall insert the substance of this clause, including this paragraph (c), in all subcontracts.

(End of clause)

FAR 52.217-8 Option to Extend Services (Nov 1999).

The Government may require continued performance of any services within the limits and at the rates specified in the contract. These rates may be adjusted only as a result of revisions to prevailing labor rates provided by the Secretary of Labor. The option provision may be exercised more than once, but the total extension of performance hereunder shall not exceed 6 months. The Contracting Officer may exercise the option by written notice to the Contractor within 15 days.

(End of clause)

FAR 52.217-9 Option to Extend the Term of the Contract (MAR 2000).

(a) The Government may extend the term of this contract by written notice to the Contractor within 15 days; provided that the Government gives the Contractor a preliminary written notice of its intent to extend at least 30 days before the contract expires. The preliminary notice does not commit the Government to an extension.

(b) If the Government exercises this option, the extended contract shall be considered to include this option clause.

(c) The total duration of this contract, including the exercise of any options under this clause, shall not exceed 36 months.

(End of clause)

FAR 52.217-7 Option for Increased Quantity-Separately Priced Line Item (JULY 2024)

(DEVIATION 2024-05)

The Government may require the delivery of the numbered line item, identified in the Schedule as an option item, in the quantity and at the price stated in the Schedule. The Contracting Officer may exercise the option by written notice to the Contractor within 30 days. For services, this shall be no less than 10 calendar days before services commence. For supplies, delivery of added items shall continue at the same rate that like items are called for under the contract, unless the parties otherwise agree. Performance of added services shall comply with the requirements identified in the Schedule.

(End of clause)

FAR 52.224-3 Privacy Training – Alternate I (DEVIATION).

(a) Definition. As used in this clause, personally identifiable information means information that can be used to distinguish or trace an individual’s identity, either alone or when combined with other information that is linked or linkable to a specific individual. (See Office of Management and Budget (OMB) Circular A–130, Managing Federal Information as a Strategic Resource).

(b) The Contractor shall ensure that initial privacy training, and annual privacy training thereafter, is completed by contractor employees who—

(1) Have access to a system of records;

(2) Create, collect, use, process, store, maintain, disseminate, disclose, dispose, or otherwise handle personally identifiable information on behalf of an agency; or

(3) Design, develop, maintain, or operate a system of records (see also FAR subpart 24.1 and 39.105).

(c) The contracting agency will provide initial privacy training, and annual privacy training thereafter, to Contractor employees for the duration of this contract. Contractor employees shall satisfy this requirement by completing Privacy at DHS: Protecting Personal Information accessible at http://www.dhs.gov/dhs-security-and-training-requirements-contractors . Training shall be completed within 30 days of contract award and be completed on an annual basis thereafter not later than October 31st of each year.

(d) The Contractor shall maintain and, upon request, provide documentation of completion of privacy training to the Contracting Officer.

(e) The Contractor shall not allow any employee access to a system of records, or permit any employee to create, collect, use, process, store, maintain, disseminate, disclose, dispose or otherwise handle personally identifiable information, or to design, develop, maintain, or operate a system of records unless the employee has completed privacy training, as required by this clause.

(f) The substance of this clause, including this paragraph (f), shall be included in all subcontracts under this contract, when subcontractor employees will—

(1) Have access to a system of records;

(2) Create, collect, use, process, store, maintain, disseminate, disclose, dispose, or otherwise handle personally identifiable information; or

(3) Design, develop, maintain, or operate a system of records.

(End of clause)

FAR 52.232-18 Availability of Funds (APR 1984).

Pursuant to FAR clause 52.232-18, funds are not presently available for this contract. The Government’s obligation under this contract is contingent upon the availability of appropriated funds from which payment for contract purposes can be made. No legal liability on the part of the Government for any payment may arise until funds are made available to the Contracting Officer for this contract and until the Contractor receives notice of such availability, to be confirmed in writing by the Contracting Officer.

52.240-91 Security Prohibitions and Exclusions. (DEVIATION 20-05) (NOV 2025)

(a) Definitions. As used in this clause—

American Security Drone Act-covered foreign entity means an entity included on a list that the Federal Acquisition Security Council (FASC) develops and maintains and publishes in the http://www.dhs.gov/dhs-security-and-training-requirements-contractors

System for Award Management (SAM) at https://www.sam.gov (section 1822 of Pub. L. 118-31, 41 U.S.C. 3901 note prec.).

Backhaul means intermediate links between the core network, or backbone network, and the small subnetworks at the edge of the network (e.g., connecting cell phones/towers to the core telephone network). Backhaul can be wireless (e.g., microwave) or wired (e.g., fiber optic, coaxial cable, Ethernet).

Covered application means the social networking service TikTok or any successor application or service developed or provided by ByteDance Limited or an entity owned by ByteDance Limited.

Covered article, as defined in 41 U.S.C. 4713(k), means:

(1) Information technology, as defined in 40 U.S.C. 11101, including cloud computing services of all types;

(2) Telecommunications equipment or telecommunications service, as those terms are defined in section 3 of the Communications Act of 1934 (47 U.S.C. 153);

(3) The processing of information on a Federal or non-Federal information system, subject to the requirements of the Controlled Unclassified Information program (see 32 CFR part 2002); or

(4) Hardware, systems, devices, software, or services that include embedded or incidental information technology.

Covered foreign country means The People’s Republic of China.

Covered telecommunications equipment or services means—

(1) Telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities);

(2) For the purpose of public safety, security of Government facilities, physical security surveillance of critical infrastructure, and other national security purposes, video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities);

(3) Telecommunications or video surveillance services provided by such entities or using such equipment; or

(4) Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country.

Critical technology means—

(1) Defense articles or defense services included on the United States Munitions List set forth in the International Traffic in Arms Regulations under subchapter M of chapter I of title 22, Code of Federal Regulations;

https://www.sam.gov/

(2) Items included on the Commerce Control List set forth in Supplement No. 1 to part 774 of the Export Administration Regulations under subchapter C of chapter VII of title 15, Code of Federal Regulations, and controlled—

(i) Pursuant to multilateral regimes, including for reasons relating to national security, chemical and biological weapons proliferation, nuclear nonproliferation, or missile technology; or

(ii) For reasons relating to regional stability or surreptitious listening;

(3) Specially designed and prepared nuclear equipment, parts and components, materials, software, and technology covered by part 810 of title 10, Code of Federal Regulations (relating to assistance to foreign atomic energy activities);

(4) Nuclear facilities, equipment, and material covered by part 110 of title 10, Code of

Federal Regulations (relating to export and import of nuclear equipment and material);

(5) Select agents and toxins covered by part 331 of title 7, Code of Federal Regulations, part 121 of title 9 of such Code, or part 73 of title 42 of such Code; or

(6) Emerging and foundational technologies controlled pursuant to section 1758 of the

Export Control Reform Act of 2018 (50 U.S.C. 4817).

FASC-prohibited unmanned aircraft system means an unmanned aircraft system manufactured or assembled by an American Security Drone Act—covered foreign entity.

FASCSA order means any of the following orders issued under the Federal Acquisition Supply Chain Security Act (FASCSA) requiring removing covered articles from executive agency information systems or excluding one or more named sources or named covered articles from executive agency procurement actions, as described in 41 CFR 201-1.303(d) and (e):

(1) The Secretary of Homeland Security may issue FASCSA orders that apply to civilian agencies, to the extent not covered by paragraph (2) or (3) of this definition. This type of FASCSA order may be referred to as a Department of Homeland Security (DHS) FASCSA order.

(1) The Secretary of Defense may issue FASCSA orders that apply to the Department of Defense (DoD) and national security systems other than sensitive compartmented information systems. This type of FASCSA order may be referred to as a DoD FASCSA order.

(2) The Director of National Intelligence (DNI) may issue FASCSA orders that apply to the intelligence community and sensitive compartmented information systems, to the extent not covered by paragraph (2) of this definition. This type of FASCSA order may be referred to as a DNI FASCSA order.

Information technology, as defined in 40 U.S.C. 11101(6)—

(1) Means any equipment or interconnected system or subsystem of equipment, used in the automatic acquisition, storage, analysis, evaluation, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information by the executive agency, if the equipment is used by the executive agency directly or is used by a contractor under a contract with the executive agency that requires the use—

(i) Of that equipment; or

(ii) Of that equipment to a significant extent in the performance of a service or the furnishing of a product;

(2) Includes computers, ancillary equipment (including imaging peripherals, input, output, and storage devices necessary for security and surveillance), peripheral equipment designed to be controlled by the central processing unit of a computer, software, firmware and similar procedures, services (including support services), and related resources; but

(3) Does not include any equipment acquired by a Federal contractor incidental to a

Federal contract.

Intelligence community, as defined by 50 U.S.C. 3003(4), means the following—

(1) The Office of the Director of National Intelligence;

(2) The Central Intelligence Agency;

(3) The National Security Agency;

(4) The Defense Intelligence Agency;

(5) The National Geospatial-Intelligence Agency;

(6) The National Reconnaissance Office;

(7) Other offices within the Department of Defense for the collection of specialized national intelligence through reconnaissance programs;

(8) The intelligence elements of the Army, the Navy, the Air Force, the Marine Corps, the Coast Guard, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Department of Energy;

(9) The Bureau of Intelligence and Research of the Department of State;

(10) The Office of Intelligence and Analysis of the Department of the Treasury;

(11) The Office of Intelligence and Analysis of the Department of Homeland Security;

or

(12) Such other elements of any department or agency as may be designated by the President, or designated jointly by the Director of National Intelligence and the head of the department or agency concerned, as an element of the intelligence community.

Interconnection arrangements means arrangements governing the physical connection of two or more networks to allow the use of another’s network to hand off traffic where it is ultimately delivered (e.g., connecting a customer of telephone provider A to a customer of telephone company B) or sharing data and other information resources.

Kaspersky Lab-covered article means any hardware, software, or service that—

(1) Is developed or provided by a Kaspersky Lab-covered entity;

(2) Includes any hardware, software, or service developed or provided in whole or in part by a Kaspersky Lab-covered entity; or

(3) Contains components using any hardware or software developed in whole or in part by a Kaspersky Lab-covered entity.

Kaspersky Lab-covered entity means—

(1) Kaspersky Lab;

(2) Any successor entity to Kaspersky Lab, including any change in name, e.g., “Kaspersky”;

(3) Any entity that controls, is controlled by, or is under common control with Kaspersky Lab; or

(4) Any entity of which Kaspersky Lab has a majority ownership.

National security system, as defined in 44 U.S.C. 3552, means any information system (including any telecommunications system) used or operated by an agency or by a contractor of an agency, or other organization on behalf of an agency—

(1) The function, operation, or use of which involves intelligence activities; involves cryptologic activities related to national security; involves command and control of military forces; involves equipment that is an integral part of a weapon or weapons system; or is critical to the direct fulfillment of military or intelligence missions, but does not include a system that is to be used for routine administrative and business applications (including payroll, finance, logistics, and personnel management applications); or

(2) Is protected at all times by procedures established for information that have been specifically authorized under criteria established by an Executive order or an Act of Congress to be kept classified in the interest of national defense or foreign policy.

Roaming means cellular communications services (e.g., voice, video, data) received from a visited network when unable to connect to the facilities of the home network either because signal coverage is too weak or because traffic is too high.

Sensitive compartmented information means classified information concerning or derived from intelligence sources, methods, or analytical processes, which is required to be handled within formal access control systems established by the Director of National Intelligence.

Sensitive compartmented information system means a national security system authorized to process or store sensitive compartmented information.

Source means a non-Federal supplier, or potential supplier, of products or services, at any tier.

Subsidiary means an entity in which more than 50 percent of the entity is owned directly by a parent corporation or through another subsidiary of a parent corporation.

Substantial or essential component means any component necessary for the proper function or performance of a piece of equipment, system, or service.

Unmanned aircraft means an aircraft that is operated without the possibility of direct human intervention from within or on the aircraft (49 U.S.C. 44801(11)).

Unmanned aircraft system means an unmanned aircraft and associated elements (including communication links and the components that control the unmanned aircraft) that are required for the operator to operate safely and efficiently in the national airspace system (49 U.S.C.

44801(12)).

(b) Prohibitions on providing or using specific products or services in performance of contract. Unless a waiver or exception applies, the Contractor is prohibited from providing any products or services to the Government or using in the performance of the contract any of the following:

(1) A covered application on any information technology owned or managed by the

Government, or on any information technology used or provided by the Contractor under this contract, including equipment provided by the Contractor’s employees (section 102 of Division R of the Consolidated Appropriations Act, 2023 (Pub. L. 117- 328));

(2) A Kaspersky Lab-covered article (Section 1634 of Division A of the National Defense Authorization Act for Fiscal Year 2018 (Pub. L. 115-91));

(3) Covered telecommunications equipment or services used as a substantial or essential component of any system, or as critical technology as part of any system (paragraphs (a)(1)(A) of section 889 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Pub. L. 115-232)). This does not prohibit contractors from providing—

(i) A service that connects to the facilities of a third-party, such as backhaul, roaming, or interconnection arrangements; or

(ii) 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) Prohibition on unmanned aircraft systems manufactured or assembled by American

Security Drone Act—covered foreign entities.

(1) Prohibition. The Contractor is prohibited from—

(i) Delivering any FASC-prohibited unmanned aircraft system, which includes unmanned aircraft (i.e., drones) and associated elements (sections 1823 and 1826 of American Security Drone Act of 2023, within the National Defense

Authorization Act for Fiscal Year 2024, Pub. L. 118-31, Div. A, Title XVIII, Subtitle B, 41 U.S.C. 3901 note prec.);

(ii) On or after December 22, 2025, operating a FASC-prohibited unmanned aircraft system in the performance of the contract (section 1824 of Pub. L. 118- 31); and

(iii) On or after December 22, 2025, using Federal funds to procure or operate a FASC-prohibited unmanned aircraft system (section 1825 of Pub. L. 118-31).

(2) Procedures. The Contractor shall search SAM for the FASC-maintained list of

American Security Drone Act—covered foreign entities before proposing, or using in performance of the contract, any unmanned aircraft system. Also, the Contractor shall ensure any effort or expenditure associated with a FASC-prohibited unmanned aircraft system is consistent with a corresponding exemption, exception, or waiver determination expressly stated in the contract.

(3) Exemptions, exceptions, and waivers. The prohibitions in paragraph (c) of this clause do not apply where the agency has determined an exemption, exception, or waiver applies, and the contract indicates that such a determination has been made. See sections 1823 through 1825 and 1832 of Public Law 118-31 for statutory requirements pertaining to exemptions, exceptions, and waivers.

(d) Prohibition on using or providing specific products or services or conducting certain transactions regardless of connection to contract.

(1) Certain telecommunications and video surveillance equipment, systems, or services.

(i) Unless an applicable waiver has been issued by the Government, the Contractor cannot use any equipment, systems, or services 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 (paragraph (a)(1)(B) of section 889 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Pub. L. 115-232)).

(ii) This prohibition applies to using covered telecommunications equipment or services, regardless of whether that use is in performance of work under a Federal contract. This does not prohibit the contractor from using—

(A) A service that connects to the facilities of a third party, such as backhaul, roaming, or interconnection arrangements; or

(B) 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) Office of Foreign Assets Control Restrictions.

(i) Except as authorized by the Office of Foreign Assets Control (OFAC) in the

Department of the Treasury, the Contractor shall not acquire, for use in the performance of this contract, any supplies or services if any proclamation, Executive order, or statute administered by OFAC, or if OFAC’s implementing regulations at 31 CFR chapter V, would prohibit such a transaction by a person subject to the jurisdiction of the United States.

(ii) Except as authorized by OFAC, most transactions involving Cuba, Iran, and Sudan are prohibited, as are most imports from Burma or North Korea, into the United States or its outlying areas.

(A) For lists of entities and individuals subject to economic sanctions, see OFAC’s List of Specially Designated Nationals and Blocked Persons at https://home.treasury.gov/policy-issues/financial-sanctions/specially-designated-nationals-and-blocked-persons-list-sdn-human-readable-lists.

(B) For more information about these restrictions, as well as updates, see OFAC’s regulations at 31 CFR chapter V and at https://home.treasury.gov/policy-issues/office-of-foreign-assets-control-sanctions-programs-and-information.

(C) To conduct electronic screens of potential parties to regulated transactions, see the consolidated screening list at https://www.trade.gov/consolidated-screening-list, which consolidates multiple export screening lists of the Departments of Commerce, State, and the Treasury.

(3) Sudan prohibition. The Contractor is prohibited from conducting any restricted business operations in Sudan in accordance with Accountability and Divestment Act of 2007 (Pub. L. 110-174).

(4) Iran prohibitions.

(i) Unless an exception applies according to paragraph (d)(4)(iii) or the

Government grants a waiver, the contractor shall not engage in certain activities or transactions relating to Iran (section 6(b)(1)(A) of Iran Sanctions Act (50 U.S.C. 1701 note).

(ii) Unless an exception applies according to paragraph (d)(4)(iii) or the

Government grants a waiver, contractor shall not export certain sensitive technology to Iran, as determined by the President, and has an active exclusion in SAM (22 U.S.C. 8515).

(iii) The prohibition in paragraphs (d)(4)(i) and (d)(4)(ii) do not apply if the acquisition is subject to trade agreements and the offeror certifies that all the offered products are designated country end products or designated country construction material (see part 25).

(iv) Unless an exception applies or the Government grants a waiver, contractors are prohibited from knowingly engaging in any significant transaction (i.e., over

$10,000) with Iran’s Revolutionary Guard Corps or any of its officials, agents, or affiliates, the property and interests in property of which are blocked according to the International Emergency Economic Powers Act (section 6(b)(1)(B) of Iran Sanctions Act (50 U.S.C. 1701 note)).

https://home.treasury.gov/policy-issues/financial-sanctions/specially-designated-nationals-and-blocked-persons-list-sdn-human-readable-lists https://home.treasury.gov/policy-issues/financial-sanctions/specially-designated-nationals-and-blocked-persons-list-sdn-human-readable-lists https://home.treasury.gov/policy-issues/financial-sanctions/specially-designated-nationals-and-blocked-persons-list-sdn-human-readable-lists https://home.treasury.gov/policy-issues/office-of-foreign-assets-control-sanctions-programs-and-information https://home.treasury.gov/policy-issues/office-of-foreign-assets-control-sanctions-programs-and-information https://home.treasury.gov/policy-issues/office-of-foreign-assets-control-sanctions-programs-and-information https://www.trade.gov/consolidated-screening-list

(e) Governmentwide exclusion and removal orders.

(1) Unless the Government has issued an applicable waiver, contractors shall not provide or use as part of the performance of the contract any covered article, or any products or services produced or provided by a source, if the covered article or the source is prohibited by an applicable FASCSA order as follows:

(i) For solicitations and contracts awarded by a Department of Defense contracting office, DoD FASCSA orders apply.

(ii) For all other solicitations and contracts, DHS FASCSA orders apply.

(2) The Contractor shall search for the phrase “FASCSA order” in the System for Award

Management (SAM) at https://www.sam.gov to locate applicable FASCSA orders.

(3) The Government may identify in the solicitation other FASCSA orders that are not in

SAM, which are effective and apply to the solicitation and resulting contract.

(4) A FASCSA order issued after the date of solicitation applies to this contract only if added by an amendment to the solicitation or modification to the contract (see FAR 40.204-1(c)).

(f) Reasonable inquiry. The contractor shall conduct a reasonable inquiry to determine if there are any prohibited products or services. The inquiry will look at any information in the entity’s possession but does not need to include an internal or third-party audit.

(g) Removal of prohibited products and services. For Federal Supply Schedules, Governmentwide acquisition contracts, multi-agency contracts or any other procurement instrument intended for use by multiple agencies, upon notification from the Contracting Officer, during the performance of the contract, the Contractor shall promptly make any necessary changes or modifications to remove any product or service produced or provided by a source that this clause prohibits.

(h) General report.

(1) If the Contractor identifies or is notified by any source, (including a subcontractor at any tier), that any product or service provided or used (or to be provided or used) during contract performance does not comply with any prohibition in this clause, then the Contractor shall report the following information, or as much information is known, in writing to the contracting office as identified in paragraph (h)(2) within 72 hours:

(i) Contract number and order number, if applicable;

(ii) The specific prohibition the product or service is not complying with;

(iii) A description of the products or services that the Contractor identifies or has reason to suspect is prohibited (include brand; model number, such as the original equipment manufacturer (OEM) number, manufacturer part number, or wholesaler number; and item description, as applicable);

(iv) The entity that produced the product or service (include entity name, unique entity identifier, Contractor and Government Entity…