75N95022Q00420 - Vacuum Clean Bedding Dispenser for Rodent Caging.pdf

Solicitation No. 75N95022Q00420

Title: Vacuum Clean Bedding Dispenser for Rodent Caging

i. This is a combined synopsis/solicitation for commercial items prepared in accordance with the format in Subpart 12.6 as supplemented with additional information included in this notice. This announcement constitutes the only solicitation; proposals are being requested and a separate written solicitation will not be issued.

ii. This acquisition is for a commercial item or service and is conducted under the authority of the Federal Acquisition Regulation (FAR) Part 13—Simplified Acquisition Procedures; and FAR Part 12—Acquisition of Commercial Items and is not expected to exceed the simplified acquisition threshold. A fixed-price type of purchase order is contemplated for this requirement.

iii. The solicitation document and incorporated provisions and clauses are those in effect through Federal Acquisition Circular 2022-07 / 08-10-2022.

iv. The North American Industry Classification System (NAICS) code for this procurement is 334516 – Analytical Laboratory Instrument Manufacturing. This requirement shall be solicited using Total Small Business Set-Aside procedures.

v. Description:

The Government requires the following items:

1. Automated vacuum bedding dispensing system including installation and removal of the existing unit. Quantity 1.

vi. Please refer to Attachment 1 – Purchase Description for details and information describing the brand name or equal salient characteristics and requirements.

vii. Delivery shall be made 150 to 180 days after award date. Delivery shall be made to the following:

Building 35 Shared Animal Facility (SAF) Room 35/BBC-104 Bethesda, MD

viii. The provision at FAR Clause 52.212-1 Instructions to Offerors—Commercial Items is applicable to this solicitation.

ix. The provision at FAR Clause 52.212-2, Evaluation-Commercial Items (OCT 2014) applies to this acquisition. The Government will award a contract resulting from this solicitation to the responsible offeror whose offer conforming to the solicitation will be most advantageous to the Government, price and other factors considered.

Selection of an offeror for contract award will be based on an evaluation of proposals against five factors. The factors are: Technical, Contract Management and Customer Support, and Delivery, Installation and Set-up, Past Performance, and Price. Although technical factors are of paramount consideration in the award of the contract, price and past performance are also important to the overall contract award decision. All evaluation factors other than price, when combined, are significantly more important than price. The Government intends to make an award to that offeror whose proposal provides the best overall value to the Government.

The evaluation will be based on the demonstrated capabilities of the prospective Contractors in relation to the needs of the project as set forth in the SOLICITATION.

The merits of each proposal will be evaluated carefully. Each proposal must document the feasibility of successful implementation of the requirements of the SOLICITATION.

Offerors must submit information sufficient to evaluate their proposals based on the detailed factors listed below.

The evaluation factors are used when reviewing the proposals.

1. Technical Capability and Functionality

NIDA shall evaluate the offeror’s technical approach for overall capability and functionality in relation to the General Requirement, Salient Characteristics, Quantity and Deliverables as described in the Purchase Description.

2. Contract Management and Customer Support

NIDA shall evaluate the offeror’s ability to provide a high level of customer service, particularly in the area of initial responsiveness and resolution of device and service problems.

3. Speed of Delivery, Installation and Set-up

NIDA shall evaluate the offeror’s technical approach for completeness, feasibility, soundness and practicality of the proposed approach and work plan for accomplishing the requirements of the statement of work.

4. Past Performance

Offerors will be evaluated based on information obtained from references provided by the offeror, other relevant past performance information obtained from other sources known to the Government, and any information supplied by the offeror concerning problems encountered on the identified contracts and corrective action taken.

Furthermore, the Government will assess the relative risks associated with each offeror. Performance risks are those associated with an offeror's likelihood of success in performing the acquisition requirements as indicated by that offeror's record of past performance. The assessment of performance risk is not intended to be the product of a mechanical or mathematical analysis of an offeror's performance on a list of contracts but rather the product of subjective judgment by the Government after it considers all available and relevant information.

PRICE EVALUATION

Offerors price quote will be evaluated for reasonableness. For a price to be reasonable, it must represent a price to the government that a prudent person would pay when consideration is given to prices in the market. Normally, price reasonableness is established through adequate price competition, but may also be determined through cost and price analysis techniques. Price evaluation will not be conducted on any Offeror determined to be technically unacceptable.

Offerors may respond with a proposal indicating their ability to provide the technical specifications stated in this solicitation. Responses will be evaluated based on the contractor’s ability to meet the Government’s requirements.

x. The provision at FAR Clause 52.212-3, Offeror Representations and Certifications Commercial Items, applies to this acquisition.

xi. The provision at FAR Clause 52.212-4, Contract Terms and Conditions—Commercial Items, applies to this acquisition. See Attachment 2.

xii. The provision of FAR Clause 52.212-5, Contract Terms and Conditions Required to Implement Statutes or Executive Orders Commercial Items, applies to this acquisition. See Attachment 3.

xiii. There are no additional contract requirement(s) or terms and conditions applicable to this acquisition.

xiv. The Defense Priorities and Allocations System (DPAS) are not applicable to this requirement.

xv. Responses to this solicitation must include sufficient information to establish the interested parties’ bona-fide capabilities of providing the product or service. Responses to this solicitation must include clear and convincing evidence of the Offeror’s capability of fulfilling the requirement as it relates to the government requirements stated in this solicitation.

Basic cost and price information in the Offeror’s proposal must contain sufficient information to allow the Government to perform a basic analysis of the reasonableness of the Offeror to supply the required goods/services. Any other information or factors that may be considered in the award decision may include such factors as: past performance; special features required for effective service coverage; trade-in considerations; warranty considerations;

maintenance and service coverage availability; serial, product or catalog number(s); product description; delivery terms, and prompt payment discount terms.

The Contractor shall submit its quote electronically.

Offerors MUST include a completed copy of the provision at 52.212-3, Offeror Representations and Certifications Commercial Items, with their offer, OR provide a copy of the valid certifications registrations and Representation and Certifications from the System of Award Management (SAM) applications at www.SAM.gov, which may be indicated on the Offeror’s cover sheet.

In addition the vendor Unique Entity Identifier (UEI) and the certification of business size must be included in the response. All Offerors must have an active registration in the System for Award Management (SAM) www.sam.gov.”

All responses must be received no later than September 22, 2022, 10:00 am EST. Late responses will not be accepted. All responses must reference solicitation number 75N95022Q00420. Responses must be submitted electronically to alexander.beraud@nih.gov. For information regarding this solicitation, please contact Alexander Beraud by email at alexander.beraud@nih.gov or by phone at 301-827-6857.

xvi. DATE QUESTIONS DUE: Questions and requests for clarification must be submitted electronically to the Contract Specialist, Alexander Beraud, at alexander.beraud@nih.gov on or before 9:00 AM EST, September 21, 2022. Fax responses will NOT be accepted.

http://www.sam.gov/ http://www.sam.gov/ mailto:%20alexander.beraud@nih.gov mailto:%20alexander.beraud@nih.gov mailto:%20alexander.beraud@nih.gov mailto:alexander.beraud@nih.gov

PURCHASE DESCRIPTION

Automated Vacuum Bedding Dispenser Replacement

1. Statement of Need and Purpose:

The Building 35 Shared Animal Facility (SAF) has a centralized cagewash facility with a capacity to process (wash and sanitize) 25,000 rodent cages and ancillary support equipment on a weekly basis. The centralized cagewash facility currently has three (3) tunnel washers, two (2) rack washers, a semi-automatic bottle processing machine, a vacuum bedding removal system and a vacuum bedding dispenser system to support this effort. The existing wash equipment was installed in two phases. The first installation phase occurred in 2004 as a part of the initial Building 35 construction phase. The second phase occurred in 2013 when Building 35A was constructed as an addition to Building 35.

The vacuum bedding removal system and the vacuum bedding dispensing system, both manufactured by Roe Biomedical, were installed between 2004 and 2013. These systems are essential to meeting our daily and weekly cagewash processing demands. Both systems are approaching the end of their useful lives.

Maintenance costs for these systems have increased substantially over the last several years, and both systems are frequently out of operation due to component failure and difficulty in replacing parts that are obsolete. The vacuum bedding dispenser located at the end of Tunnel Washer #1 (Tecniplast/IWT Model # 9LATUN) and located in Room 35/BBC-104 has completely failed and must be replaced.

The purpose of this acquisition is to procure an automated vacuum bedding dispenser to replace the unit that is no longer operational on the exit side of Tunnel Washer #1. The replacement automated vacuum bedding dispenser must utilize current technology to provide maximum throughput of clean caging through the dispensing system while enhancing ergonomic workflows for the cagewash operators. The replacement system must also accurately and repeatedly dispense industry acceptable bedding materials used in rodent research cages, including hardwood chip and corn cob bedding materials.

2. Background Information and Objective:

The National Institute of Neurological Disorders and Stroke (NINDS) is a part of the National Institutes of Health (NIH), conducting research into the causes, treatment, and prevention of neurological disorders and stroke. The NINDS mission is to seek fundamental knowledge about the brain and nervous system and to use that knowledge to reduce the burden of neurological disease.

The Animal Health Care Section (AHCS) of the National Institute of Neurological Disorders and Stroke (NINDS) is tasked with veterinary care, management, and oversight of the Building 35 SAF. The Building 35 SAF currently houses approximately 17,000 mouse and rat cages, consisting primarily of mice. The rodents housed in these cages are used by numerous NIH Institutes and Centers (ICs) to carry out their research missions. The institutes and centers sharing in this research endeavor are:

• National Institute of Neurological Disorders and Stroke (NINDS)

• National Institute of Mental Health (NIMH)

• National Institute on Deafness and Other Communicative Disorders (NIDCD)

• National Institute of Dental and Craniofacial Research (NIDCR)

• National Institute of Child Health and Human Development (NICHD)

• National Eye Institute (NEI)

• National Institute on Aging (NIA)

Attachment 01

• National Human Genome Research Institute (NHGRI)

• National Center on Complimentary and Integrative Health (NCCIH)

Due to the age, increased maintenance costs and obsolescence of specific key parts and components of the existing Roe Biomedical Vacuum Bedding Dispensing System (VBDS) that was designed to work in conjunction with Tunnel Washer #1, this unit is no longer operational. The AHCS is requesting the purchase and installation of a new automated vacuum bedding dispensing system that will integrate with Tunnel Washer #1 and will integrate and operate with the remainder of the existing automated vacuum bedding dispensing system installed by Roe Biomedical when the Building 35 SAF was constructed and commissioned between 2004-2013. The new machine must fit into the existing footprint occupied by the obsolete Roe Biomedical bedding dispenser and must easily connect to existing utilities without the need for substantial design, engineering, and renovation work.

3. Generic Name of Product:

Automated Vacuum Bedding Dispenser for Rodent Caging

4. Purchase Description: Brand Name or Equivalent

Trade name: Vacuum Clean Bedding Dispenser for Rodent Caging Product brand name: In-Line Bedding Dispenser 506 Series Manufacturer's name: PVS Process Equipment, Inc.

2600 Hamburg Turnpike Suite A1 Buffalo, NY 14218 Phone: (716) 646-0181 www.pvspe.com

5. Salient Characteristics

The replacement vacuum bedding dispenser shall have the following salient characteristics and capabilities.

• Conveyorized design, and in-line with the conveyor on the facility’s existing Tunnel Washer #1

(Tecniplast/IWT Model No. 9LATUN; Serial # 011135)

• Capability of being fed rodent cages directly and continuously from the Tecniplast/IWT Tunnel Washer

#1 identified above

• Replacement bedding dispenser controls shall interface with the Tecniplast/IWT Tunnel Washer #1 and the remaining Roe Biomedical VBDS as described above

• Replacement bedding dispenser controls shall call for delivery of clean bedding material as needed and on demand from the existing Roe Biomedical bedding hopper located in the facility’s bedding storage room (Room 35/GA-805). The replacement dispenser controller shall have a sufficient number of inputs and outputs to accomplish the integration. Additional costs associated with integration, if required, shall be the responsibility of the selected manufacturer.

• Replacement bedding dispenser shall connect and interface with the existing 2” stainless steel vacuum bedding delivery piping that was designed and installed as part of the existing Roe Biomedical VBDS.

Connection point to this existing stainless bedding delivery pipe is located below the ceiling above Tunnel Washer #1.

• Replacement bedding dispenser shall automatically dispense free-flowing rodent bedding materials precisely and evenly into a variety of rodent cage sizes that convey from the tunnel washer through the replacement bedding dispenser

• Replacement bedding dispenser shall accommodate and accurately dispense a variety of free-flowing solid bedding materials commonly used for rodents in the laboratory animal research field. At a http://www./ minimum, the replacement bedding dispenser shall have the capability to accommodate and accurately dispense hardwood chip and corn cob bedding materials.

• Replacement bedding dispenser shall accommodate a wide variety of plastic rodent cages (maximum height of 14”) without jamming and without the need for the cagewash operator to adjust conveyor feed mechanisms that would inhibit or delay the continuous flow of cages through the dispenser.

• Replacement bedding dispenser shall accommodate cages from the existing tunnel washer in a random pattern. Cages shall be fed to the dispenser from the tunnel washer in an inverted position (open side of cage facing downward).

• Replacement bedding dispenser shall invert cages from the tunnel washer using a gravity assist design.

Mechanical cage grippers/flippers are not acceptable.

• Replacement bedding dispenser shall fit the existing space in Room 35/BBC-104, in line with Tunnel Washer #1, and allow for sufficient space around the perimeter, above and below the dispenser for the cagewash operator to perform cage processing duties, and daily/weekly service and workspace cleanup.

• Replacement bedding dispenser shall be refilled with clean bedding material from the existing Roe Biomedical VBDS. Additionally, the replacement bedding dispenser shall have the capability to be filled by (1) a vacuum wand and hose system that can be inserted into a bulk container of clean bedding material and (2) manually by the cagewash operator using individual paper bags of bedding which can be opened and dispensed directly into a lower refill hopper.

• Replacement bedding dispenser shall utilize a vacuum system to automatically convey bedding material from the lower refill hopper of the unit to the dispensing hopper located at the top of the unit. Chain conveyors or augers will not be acceptable.

• Replacement bedding dispenser shall accommodate cages from the tunnel washer that are delivered in a random pattern. The dispenser shall fill individual rodent cages with a uniform amount of clean bedding material per square inch of cage floor area.

• Replacement bedding dispenser shall include a photo-electric conveyor stop system at the end of the dispenser discharge conveyor which is activated by the presence of cages that have completed the bedding dispensing process. The system shall provide visual and audible notification to the operator.

• Replacement bedding dispenser shall have the capability to recapture excess bedding material that falls outside of the cages and into the lower refill hopper during the dispensing process and shall recycle the bedding material from the lower refill hopper to the dispensing hopper during the refill cycle

• Replacement bedding dispenser system shall utilize a level sensor system in the dispensing hopper above the unit and the lower refill hopper to trigger the pneumatic conveyance of cage bedding material from the lower hopper to the dispensing hopper

• Replacement bedding dispenser shall dispense a uniform curtain of bedding material from the upper dispensing hopper into the cages as they pass through the dispenser by use of a dispensing tray with adjustable baffles. The dispenser shall not utilize any direct mechanical contact with the bedding material during the dispensing operation such as chain paddles, or screw conveyors. The rate at which the bedding material is dispensed shall be fully adjustable by the owner.

• Replacement bedding dispenser shall be designed to fill clean cages that are manually loaded by the cagewash operator at the front of the dispenser and onto the dispenser conveyor

• Replacement bedding dispenser shall include an integral dust collection system to remove dust generated by the filling operation. Dust removal via attachment to the facility’s building HVAC exhaust system is not acceptable.

• Maximum external dimensions of the replacement bedding dispenser shall be: 60”W x 94”H x 60” D

• Minimum total hopper capacity of the replacement bedding dispenser shall be: 10 cu. ft.

• Minimum tunnel/throat dimensions of the replacement bedding dispenser shall be: 14”H x 36”W

• Replacement bedding dispenser shall be disassembled and shipped in modules or sections to fit through doorways and corridors from the owner’s facility loading dock, through a freight elevator, and into the clean cagewash area (Room 35/BBC-104)

• Replacement bedding dispenser construction:

Removable panels for easy maintenance access

Dispensing Hopper: Constructed of 304 Stainless Steel with #4 Finish o Minimum Total Unit Storage Capacity -10 cu. ft.

o Maximum 42” dispensing tray for use in conjunction with 36” wide Tunnel Washer Conveyor

Belt o 304 Stainless Steel Dispensing Tray with Adjustable Force Vibrator(s) o 304 Stainless Steel “Tool-Less” Adjustable Baffle o 304 Stainless Steel Tubular Support Weldment with Matte Finish o Two (2) 14” x 18” Plexi-glass viewing windows o Integral Dust Collection Filter (ambient air only, no filter cleaning) o High and low-level sensors

42” Wide Roller Conveyor x 60” Length o Constructed of 304 Stainless Steel o 2” Rollers on 3.5” Centerline (Rollers Stainless Steel with Rubberized Coating) o Roller table height estimated at 30” off finished floor o Four (4) locking casters w/ outriggers for mobility of unit o Photo-Electric Conveyor Stop o 304 Stainless Steel Bedding Refill Hopper

Integral Level Sensor & Vibrator Mount Adjustable Bleed Vacuum Pick-Up Adapter with 2.0” OD Tube Outlet

Vacuum Bedding Recirculation System o 6” Fully-Opening, Pneumatically Actuated Orifice Plate Discharge Valve o 3” Inlet with Ratio/ Proportioning Valve

2.0” OD Conveyance tube from refill hopper below roller conveyors 3.0” x 10’ Flexible hose for use with existing Roe Biomedical VBDS o 10 HP 480 VAC regenerative-style vacuum blower integral to the material filter receiver Clamp-on” multi-filter assembly integral to material receiver Three (3) 5” diameter x 16” long top-Loaded cartridge filter elements spun-bond polyester media with Teflon coating (washable up to 8 times) o “Clamp-on” cover assembly

3.0” OD outlet connection to airflow control valve (included) Compressed air filter cleaning system (.86 SCFM @ 40-60 PSI – intermittent use) Air Reservoir complete with compressed air regulator and pulse valve

Vacuum Bedding Dispenser Control System Complete non-proprietary PLC control system prewired and tested, mounted integral to the dispenser framework with the following features:

o Swivel mount for easy operator access o Emergency shutoff for compliance with all safety regulations and AAALAC (Association for

Assessment and Accreditation of Laboratory Animal Care mandatory requirements o Fully automated control of the dispensing operation o 5.6” full-color operator touch screen located in the front of the unit o Automated control of allergen dust collector (included) and vacuum refilling o Alarms parameters shall include at a minimum refilling the bedding material, compressed air pressure, motor overload, and preventative maintenance o Electronic interlock control system with existing tunnel washer o Manual control of dispensing rate and roller speed o User maintenance and parameter entry screens shall be password/PIN protected o Ethernet switch and modem for remote diagnostic and trouble shooting

• Utility requirements o Electrical: 230/460 VAC, 3-Phase, 60 Hz, 10 Amp o Compressed Air: 1/2” NPT (80-100 psig), Maximum 4-6 CFM o Exhaust: N/A; System shall utilize an integrated dust collection system o Communications: Plenum-rated CAT 5e or CAT 6 cabling and repeaters

• Installation, startup, commissioning, and training provided by manufacturer’s authorized trained personnel

• One (1) set of Installation & Operations Manuals and two (2) sets of engineered drawings printed, bound, and shipped with the dispenser

• Engineered drawings and all manuals to be supplied in electronic format in addition to the printed version requirement

• A minimum two (2) year warranty shall be provided for all material, fabrication, and workmanship from the date of owner acceptance

• Factory Acceptance Test (FAT) and Site Acceptance Test (SAT) shall be included in the base bid

• Bidding manufacturers must utilize factory trained and authorized service personnel for both installation and PM/emergency service requirements post installation

• Bidding manufacturers must provide a minimum of three (3) references from customers in the life science industry who have similar equipment installed

6. Quantity:

One (1) automated vacuum bedding dispensing system including installation and removal of the existing unit.

Note: Bidding manufacturers will be allowed to visit the site prior to bid

7. Delivery Date:

150-180 days after receipt of order (ARO) and signed approval drawings

8. Period of Performance:

The period of performance shall be for one (1) base year from date of award.

9. Option(s): N/A

Attachment 02

FAR CLAUSE 52.212-4

CONTRACT TERMS AND CONDITIONS – COMMERCIAL ITEMS (OCTOBER 2018)

(a) Inspection/Acceptance. The Contractor shall only tender for acceptance those items that conform to the requirements of this contract. The Government reserves the right to inspect or test any supplies or services that have been tendered for acceptance. The Government may require repair or replacement of nonconforming supplies or reperformance of nonconforming services at no increase in contract price. If repair/replacement or reperformance will not correct the defects or is not possible, the government may seek an equitable price reduction or adequate consideration for acceptance of nonconforming supplies or services. The Government must exercise its post-acceptance rights --

(1) Within a reasonable time after the defect was discovered or should have been discovered; and

(2) Before any substantial change occurs in the condition of the item, unless the change is due to the defect in the item.

(b) Assignment. The Contractor or its assignee may assign its rights to receive payment due as a result of performance of this contract to a bank, trust company, or other financing institution, including any Federal lending agency in accordance with the Assignment of Claims Act (31 U.S.C.3727). However, when a third party makes payment (e.g., use of the Governmentwide commercial purchase card), the Contractor may not assign its rights to receive payment under this contract.

(c) Changes. Changes in the terms and conditions of this contract may be made only by written agreement of the parties.

(d) Disputes. This contract is subject to 41 U.S.C. chapter 71,Contract Disputes. Failure of the parties to this contract to reach agreement on any request for equitable adjustment, claim, appeal or action arising under or relating to this contract shall be a dispute to be resolved in accordance with the clause at FAR 52.233-1, Disputes, which is incorporated herein by reference. The Contractor shall proceed diligently with performance of this contract, pending final resolution of any dispute arising under the contract.

(e) Definitions. The clause at FAR 52.202-1, Definitions, is incorporated herein by reference.

(f) Excusable delays. The Contractor shall be liable for default unless nonperformance is caused by an occurrence beyond the reasonable control of the Contractor and without its fault or negligence such as, acts of God or the public enemy, acts of the Government in either its sovereign or contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, unusually severe weather, and delays of common carriers. The Contractor shall notify the Contracting Officer in writing as soon as it is reasonably possible after the commencement of any excusable delay, setting forth the full particulars in connection therewith, shall remedy such occurrence with all reasonable dispatch, and shall promptly give written notice to the Contracting Officer of the cessation of such occurrence.

(g) Invoice.

(1) The Contractor shall submit an original invoice and three copies (or electronic invoice, if authorized) to the address designated in the contract to receive invoices. An invoice must include --

(i) Name and address of the Contractor;

(ii) Invoice date and number;

(iii) Contract number, line item number and, if applicable, the order number;

(iv) Description, quantity, unit of measure, unit price and extended price of the items delivered;

(v) Shipping number and date of shipment, including the bill of lading number and weight of shipment if shipped on Government bill of lading;

(vi) Terms of any discount for prompt payment offered;

(vii) Name and address of official to whom payment is to be sent;

(viii) Name, title, and phone number of person to notify in event of defective invoice; and

(ix) Taxpayer Identification Number (TIN). The Contractor shall include its TIN on the invoice only if required elsewhere in this contract.

(x) Electronic funds transfer (EFT) banking information.

(A) The Contractor shall include EFT banking information on the invoice only if required elsewhere in this contract.

(B) If EFT banking information is not required to be on the invoice, in order for the invoice to be a proper invoice, the Contractor shall have submitted correct EFT banking information in accordance with the applicable solicitation provision, contract clause (e.g., 52.232-33, Payment by Electronic Funds Transfer— System for Award Management, or 52.232-34, Payment by Electronic Funds Transfer—Other Than System for Award Management), or applicable agency procedures.

(C) EFT banking information is not required if the Government waived the requirement to pay by EFT.

(2) Invoices will be handled in accordance with the Prompt Payment Act (31 U.S.C.

3903) and Office of Management and Budget (OMB) prompt payment regulations at 5 CFR part 1315.

(h) Patent indemnity. The Contractor shall indemnify the Government and its officers, employees and agents against liability, including costs, for actual or alleged direct or contributory infringement of, or inducement to infringe, any United States or foreign patent, trademark or copyright, arising out of the performance of this contract, provided the Contractor is reasonably notified of such claims and proceedings.

(i) Payment.

(1) Items accepted. Payment shall be made for items accepted by the Government that have been delivered to the delivery destinations set forth in this contract.

(2) Prompt Payment. The Government will make payment in accordance with the Prompt Payment Act (31 U.S.C. 3903) and prompt payment regulations at 5 CFR Part 1315.

(3) Electronic Funds Transfer (EFT). If the Government makes payment by EFT, see 52.212-5(b) for the appropriate EFT clause.

(4) Discount. In connection with any discount offered for early payment, time shall be computed from the date of the invoice. For the purpose of computing the discount earned, payment shall be considered to have been made on the date which appears on the payment check or the specified payment date if an electronic funds transfer payment is made.

(5) Overpayments. If the Contractor becomes aware of a duplicate contract financing or invoice payment or that the Government has otherwise overpaid on a contract financing or invoice payment, the Contractor shall—

(i) Remit the overpayment amount to the payment office cited in the contract along with a description of the overpayment including the—

(A) Circumstances of the overpayment (e.g., duplicate payment, erroneous payment, liquidation errors, date(s) of overpayment);

(B) Affected contract number and delivery order number, if applicable;

(C) Affected line item or subline item, if applicable; and

(D) Contractor point of contact.

(ii) Provide a copy of the remittance and supporting documentation to the Contracting Officer.

(6) Interest.

(i) All amounts that become payable by the Contractor to the Government under this contract shall bear simple interest from the date due until paid unless paid within 30 days of becoming due. The interest rate shall be the interest rate established by the Secretary of the Treasury as provided in 41 U.S.C. 7109, which is applicable to the period in which the amount becomes due, as provided in (i)(6)(v) of this clause, and then at the rate applicable for each six-month period at fixed by the Secretary until the amount is paid.

(ii) The Government may issue a demand for payment to the Contractor upon finding a debt is due under the contract.

(iii) Final decisions. The Contracting Officer will issue a final decision as required by 33.211 if—

(A) The Contracting Officer and the Contractor are unable to reach agreement on the existence or amount of a debt within 30 days;

(B) The Contractor fails to liquidate a debt previously demanded by the Contracting Officer within the timeline specified in the demand for payment unless the amounts were not repaid because the Contractor has requested an installment payment agreement; or

(C) The Contractor requests a deferment of collection on a debt previously demanded by the Contracting Officer (see 32.607-2).

(iv) If a demand for payment was previously issued for the debt, the demand for payment included in the final decision shall identify the same due date as the original demand for payment.

(v) Amounts shall be due at the earliest of the following dates:

(A) The date fixed under this contract.

(B) The date of the first written demand for payment, including any demand for payment resulting from a default termination.

(vi) The interest charge shall be computed for the actual number of calendar days involved beginning on the due date and ending on—

(A) The date on which the designated office receives payment from the Contractor;

(B) The date of issuance of a Government check to the Contractor from which an amount otherwise payable has been withheld as a credit against the contract debt; or

(C) The date on which an amount withheld and applied to the contract debt would otherwise have become payable to the Contractor.

(vii) The interest charge made under this clause may be reduced under the procedures prescribed in 32.608-2 of the Federal Acquisition Regulation in effect on the date of this contract.

(j) Risk of loss. Unless the contract specifically provides otherwise, risk of loss or damage to the supplies provided under this contract shall remain with the Contractor until, and shall pass to the Government upon:

(1) Delivery of the supplies to a carrier, if transportation is f.o.b. origin; or

(2) Delivery of the supplies to the Government at the destination specified in the contract, if transportation is f.o.b. destination.

(k) Taxes. The contract price includes all applicable Federal, State, and local taxes and duties.

(l) Termination for the Government’s convenience. The Government reserves the right to terminate this contract, or any part hereof, for its sole convenience. In the event of such termination, the Contractor shall immediately stop all work hereunder and shall immediately cause any and all of its suppliers and subcontractors to cease work. Subject to the terms of this contract, the Contractor shall be paid a percentage of the contract price reflecting the percentage of the work performed prior to the notice of termination, plus reasonable charges the Contractor can demonstrate to the satisfaction of the Government using its standard record keeping system, have resulted from the termination. The Contractor shall not be required to comply with the cost accounting standards or contract cost principles for this purpose. This paragraph does not give the Government any right to audit the Contractor’s records. The Contractor shall not be paid for any work performed or costs incurred which reasonably could have been avoided.

(m) Termination for cause. The Government may terminate this contract, or any part hereof, for cause in the event of any default by the Contractor, or if the Contractor fails to comply with any contract terms and conditions, or fails to provide the Government, upon request, with adequate assurances of future performance. In the event of termination for cause, the Government shall not be liable to the Contractor for any amount for supplies or services not accepted, and the Contractor shall be liable to the Government for any and all rights and remedies provided by law.

If it is determined that the Government improperly terminated this contract for default, such termination shall be deemed a termination for convenience.

(n) Title. Unless specified elsewhere in this contract, title to items furnished under this contract shall pass to the Government upon acceptance, regardless of when or where the Government takes physical possession.

(o) Warranty. The Contractor warrants and implies that the items delivered hereunder are merchantable and fit for use for the particular purpose described in this contract.

(p) Limitation of liability. Except as otherwise provided by an express warranty, the Contractor will not be liable to the Government for consequential damages resulting from any defect or deficiencies in accepted items.

(q) Other compliances. The Contractor shall comply with all applicable Federal, State and local laws, executive orders, rules and regulations applicable to its performance under this contract.

(r) Compliance with laws unique to Government contracts. The Contractor agrees to comply with 31 U.S.C. 1352 relating to limitations on the use of appropriated funds to influence certain Federal contracts; 18 U.S.C. 431 relating to officials not to benefit; 40 U.S.C. chapter 37, Contract Work Hours and Safety Standards; 41 U.S.C. chapter 87, Kickbacks; 41 U.S.C. 4712 and 10 U.S.C. 2409 relating to whistleblower protections; 49 U.S.C. 40118, Fly American; and 41 U.S.C. chapter 21 relating to procurement integrity.

(s) Order of precedence. Any inconsistencies in this solicitation or contract shall be resolved by giving precedence in the following order:

(1) The schedule of supplies/services.

(2) The Assignments, Disputes, Payments, Invoice, Other Compliances, Compliance with Laws Unique to Government Contracts, and Unauthorized Obligations paragraphs of this clause.

(3) The clause at 52.212-5.

(4) Addenda to this solicitation or contract, including any license agreements for computer software.

(5) Solicitation provisions if this is a solicitation.

(6) Other paragraphs of this clause.

(7) The Standard Form 1449.

(8) Other documents, exhibits, and attachments.

(9) The specification.

(t) Reserved

(u) Unauthorized Obligations.

(1) Except as stated in paragraph (u)(2) of this clause, when any supply or service acquired under this contract is subject to any End Use License Agreement (EULA), Terms of Service (TOS), or similar legal instrument or agreement, that includes any clause requiring the Government to indemnify the Contractor or any person or entity for damages, costs, fees, or any other loss or liability that would create an Anti-Deficiency Act violation (31 U.S.C. 1341), the following shall govern:

(i) Any such clause is unenforceable against the Government.

(ii) Neither the Government nor any Government authorized end user shall be deemed to have agreed to such clause by virtue of it appearing in the EULA, TOS, or similar legal instrument or agreement. If the EULA, TOS, or similar legal instrument or agreement is invoked through an “I agree” click box or other comparable mechanism (e.g., “click-wrap” or “browse-wrap” agreements), execution does not bind the Government or any Government authorized end user to such clause.

(iii) Any such clause is deemed to be stricken from the EULA, TOS, or similar legal instrument or agreement.

(2) Paragraph (u)(1) of this clause does not apply to indemnification by the Government that is expressly authorized by statute and specifically authorized under applicable agency regulations and procedures.

(v) Incorporation by reference. The Contractor’s representations and certifications, including those completed electronically via the System for Award Management (SAM), are incorporated by reference into the contract.

(End of Clause)

Alternate I (Jan 2017) When a time-and-materials or labor-hour contract is contemplated, substitute the following paragraphs (a), (e), (i), (l), and (m) for those in the basic clause.

(a) Inspection/Acceptance.

(1) The Government has the right to inspect and test all materials furnished and services performed under this contract, to the extent practicable at all places and times, including the period of performance, and in any event before acceptance. The Government may also inspect the plant or plants of the Contractor or any subcontractor engaged in contract performance. The Government will perform inspections and tests in a manner that will not unduly delay the work.

(2) If the Government performs inspection or tests on the premises of the Contractor or a subcontractor, the Contractor shall furnish and shall require subcontractors to furnish all reasonable facilities and assistance for the safe and convenient performance of these duties.

(3) Unless otherwise specified in the contract, the Government will accept or reject services and materials at the place of delivery as promptly as practicable after delivery, and they will be presumed accepted 60 days after the date of delivery, unless accepted earlier.

(4) At any time during contract performance, but not later than 6 months (or such other time as may be specified in the contract) after acceptance of the services or materials last delivered under this contract, the Government may require the Contractor to replace or correct services or materials that at time of delivery failed to meet contract requirements.

Except as otherwise specified in paragraph (a)(6) of this clause, the cost of replacement or correction shall be determined under paragraph (i) of this clause, but the “hourly rate” for labor hours incurred in the replacement or correction shall be reduced to exclude that portion of the rate attributable to profit. Unless otherwise specified below, the portion of the “hourly rate” attributable to profit shall be 10 percent. The Contractor shall not tender for acceptance materials and services required to be replaced or corrected without disclosing the former requirement for replacement or correction, and, when required, shall disclose the corrective action taken. [Insert portion of labor rate attributable to profit.]

(5) (5)

(i) If the Contractor fails to proceed with reasonable promptness to perform required replacement or correction, and if the replacement or correction can be performed within the ceiling price (or the ceiling price as increased by the Government), the Government may—

(A) By contract or otherwise, perform the replacement or correction, charge to the Contractor any increased cost, or deduct such increased cost from any amounts paid or due under this contract; or

(B) Terminate this contract for cause.

(ii) Failure to agree to the amount of increased cost to be charged to the Contractor shall be a dispute under the Disputes clause of the contract.

(6) Notwithstanding paragraphs (a)(4) and (5) above, the Government may at any time require the Contractor to remedy by correction or replacement, without cost to the Government, any failure by the Contractor to comply with the requirements of this contract, if the failure is due to--

(i) Fraud, lack of good faith, or willful misconduct on the part of the Contractor’s managerial personnel; or

(ii) The conduct of one or more of the Contractor’s employees selected or retained by the Contractor after any of the Contractor’s managerial personnel has reasonable grounds to believe that the employee is habitually careless or unqualified.

(7) This clause applies in the same manner and to the same extent to corrected or replacement materials or services as to materials and services originally delivered under this contract.

(8) The Contractor has no obligation or liability under this contract to correct or replace materials and services that at time of delivery do not meet contract requirements, except as provided in this clause or as may be otherwise specified in the contract.

(9) Unless otherwise specified in the contract, the Contractor’s obligation to correct or replace Government-furnished property shall be governed by the clause pertaining to Government property.

(e) Definitions.

(1) The clause at FAR 52.202-1, Definitions, is incorporated herein by reference. As used in this clause—

(i) Direct materials means those materials that enter directly into the end product, or that are used or consumed directly in connection with the furnishing of the end product or service.

(ii) Hourly rate means the rate(s) prescribed in the contract for payment for labor that meets the labor category qualifications of a labor category specified in the contract that are—

(A) Performed by the contractor;

(B) Performed by the subcontractors; or

(C) Transferred between divisions, subsidiaries, or affiliates of the contractor under a common control.

(iii) Materials means—

(A) Direct materials, including supplies transferred between divisions, subsidiaries, or affiliates of the contractor under a common control;

(B) Subcontracts for supplies and incidental services for which there is not a labor category specified in the contract;

(C) Other direct costs (e.g., incidental services for which there is not a labor category specified in the contract, travel, computer usage charges, etc.);

(D) The following subcontracts for services which are specifically excluded from the hourly rate: [Insert any subcontracts for services to be excluded from the hourly rates prescribed in the schedule.]; and

(E) Indirect costs specifically provided for in this clause.

(iv) Subcontract means any contract, as defined in FAR Subpart 2.1, entered into with a subcontractor to furnish supplies or services for performance of the prime contractor a subcontract including transfers between divisions, subsidiaries, or affiliates of a contractor or subcontractor. It includes, but is not limited to, purchase orders, and changes and modifications to purchase orders.

(i) Payments.

(1) Work performed. The Government will pay the Contractor as follows upon the submission of commercial invoices approved by the Contracting Officer:

(i) Hourly rate.

(A) The amounts shall be computed by multiplying the appropriate hourly rates prescribed in the contract by the number of direct labor hours performed. Fractional parts of an hour shall be payable on a prorated basis.

(B) The rates shall be paid for all labor performed on the contract that meets the labor qualifications specified in the contract. Labor hours incurred to perform tasks for which labor qualifications were specified in the contract will not be paid to the extent the work is performed by individuals that do not meet the qualifications specified in the contract, unless specifically authorized by the Contracting Officer.

(C) Invoices may be submitted once each month (or at more frequent intervals, if approved by the Contracting Officer) to the Contracting Officer or the authorized representative.

(D) When requested by the Contracting Officer or the authorized representative, the Contractor shall substantiate invoices (including any subcontractor hours reimbursed at the hourly rate in the schedule) by evidence of actual payment, individual daily job timecards, records that verify the employees meet the qualifications for the labor categories specified in the contract, or other substantiation specified in the contract.

(E) Unless the Schedule prescribes otherwise, the hourly rates in the Schedule shall not be varied by virtue of the Contractor having performed work on an overtime basis.

(1) If no overtime rates are provided in the Schedule and the Contracting Officer approves overtime work in advance, overtime rates shall be negotiated.

(2) Failure to agree upon these overtime rates shall be treated as a dispute under the Disputes clause of this contract.

(3) If the Schedule provided rates for overtime, the premium portion of those rates will be reimbursable only to the extent the overtime is approved by the Contracting Officer.

(ii) Materials.

(A) If the Contractor furnishes materials that meet the definition of a commercial item at FAR 2.101, the price to be paid for such materials shall not exceed the Contractor’s established catalog or market price, adjusted to reflect the--

(1) Quantities being acquired; and

(2) Any modifications necessary because of contract requirements.

(B) Except as provided for in paragraph (i)(1)(ii)(A) and (D)(2) of this clause, the Government will reimburse the Contractor the actual cost of materials (less any rebates, refunds, or discounts received by the contractor that are identifiable to the contract) provided the Contractor—

(1) Has made payments for materials in accordance with the terms and conditions of the agreement or invoice; or

(2) Makes these payments within 30 days of the submission of the Contractor’s payment request to the Government and such payment is in accordance with the terms and conditions of the agreement or invoice.

(C) To the extent able, the Contractor shall—

(1) Obtain materials at the most advantageous prices available with due regard to securing prompt delivery of satisfactory materials; and

(2) Give credit to the Government for cash and trade discounts, rebates, scrap, commissions, and other amounts that are identifiable to the contract.

(D) Other Costs. Unless listed below, other direct and indirect costs will not be reimbursed.

(1) Other direct Costs. The Government will reimburse the Contractor on the basis of actual cost for the following, provided such costs comply with the requirements in paragraph (i)(1)(ii)(B) of this clause: [Insert each element of other direct costs (e.g., travel, computer usage charges, etc.

Insert “None” if no reimbursement for other direct costs will be provided.

If this is an indefinite delivery contract, the Contracting Officer may insert “Each order must list separately the elements of other direct charge(s) for that order or, if no reimbursement for other direct costs will be provided, insert ‘None’.”]

(2) Indirect Costs (Material handling, Subcontract Administration, etc.).

The Government will reimburse the Contractor for indirect costs on a pro-rata basis over the period of contract performance at the following fixed price: [Insert a fixed amount for the indirect costs and payment schedule.

Insert “$0” if no fixed price reimbursement for indirect costs will be provided. (If this is an indefinite delivery contract, the Contracting Officer may insert “Each order must list separately the fixed amount for the indirect costs and payment schedule or, if no reimbursement for indirect costs, insert ‘None’.”]

(2) Total cost. It is estimated that the total cost to the Government for the performance of this contract shall not exceed the ceiling price set forth in the Schedule and the…