RFP No. 89233220RNA000002 Cover Pg (Amd 0002).pdf

(x)

89233220RNA000002

x x

1 copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted ; or (c) By separate letter or electronic communication which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGEMENT TO BE

RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR

OFFER. If by virtue of this amendment you desire to change an offer already submitted , such change may be made by letter or electronic communication, provided each letter or electronic communication makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

x

Albuquerque NM 87185-5400

05115

P.O. Box 5400 Albuquerque Complex

NA-APM-131

NNSA M&O Contracting Branch

Albuquerque NM 87185-5400

892332

P.O. Box 5400 Albuquerque Complex

NA-APM-131

NNSA M&O Contracting Branch

04/06/20210002

13. THIS ITEM ONLY APPLIES TO MODIFICATION OF CONTRACTS/ORDERS. IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

12. ACCOUNTING AND APPROPRIATION DATA (If required) is not extended.is extended, Items 8 and 15, and returning

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended , by one of the following methods: (a) By completing

The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

FACILITY CODE CODE

10B. DATED (SEE ITEM 13)

10A. MODIFICATION OF CONTRACT/ORDER NO.

9B. DATED (SEE ITEM 11)

9A. AMENDMENT OF SOLICITATION NO.

CODE

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

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

PAGE OF PAGES

4. REQUISITION/PURCHASE REQ. NO.3. EFFECTIVE DATE2. AMENDMENT/MODIFICATION NO. 5. PROJECT NO. (If applicable)

1. CONTRACT ID CODE

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

11/09/2020

CHECK ONE A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority) appropriation data, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

E. IMPORTANT: Contractor is not is required to sign this document and return __________________ copies to the issuing office.

ORDER NO. IN ITEM 10A.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

Period of Performance: 06/01/2021 to 09/30/2026

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)15A. NAME AND TITLE OF SIGNER (Type or print)

15C. DATE SIGNED 16B. UNITED STATES OF AMERICA 15B. CONTRACTOR/OFFEROR 16C. DATE SIGNED

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

Lance P. Nyman

STANDARD FORM 30 (REV. 11/2016)

Prescribed by GSA FAR (48 CFR) 53.243

Previous edition unusable

Except as provided herein, all terms and conditions of the document referenced in Item 9 A or 10A, as heretofore changed, remains unchanged and in full force and effect .

04/06/2021

Request for Proposal (RFP) No. 89233220RNA000002 Amendment 0002

A. NNSA hereby amends the subject RFP as shown in the following sections. For the convenience of Offerors, NNSA has utilized RED text for additions and deletions (red strikethrough for deletions) to describe the changes. Note that the RFP Amendment 0002 documents attached hereto, as listed in paragraph B below, are controlling.

Section B-H - Part I Schedule

Section B-3, Contract Fee Structures is hereby updated accordingly.

All team members shall share in all the fee pools, whether they are subcontractors or members of a joint-venture and/or other teaming arrangement as defined in FAR 9.601. Separate, additional subcontractor fee for teaming partners team members shall not be considered an allowable cost under the contract. If a subcontractor, supplier, or lower-tier subcontractor, or a supplier is a wholly-owned by, majority-owned by, or an affiliate of any team member, any fee or profit earned by such entity shall not be considered an allowable cost under this contract unless otherwise approved by the Contracting Officer. The fee restriction above does not apply to members of the Contractor’s team team members that are:

(i) small businesses; or

(ii) Protégé firms as part of an approved Mentor-Protégé relationship under the Clause entitled, Mentor-Protégé Program;.

The fee restriction above also does not apply when subcontracts are:

(iii) a competitively awarded firm-fixed price subcontracts; or

(iv) firm-fixed unit price subcontracts; or

(v) competitively awarded subcontracts for commercial items as defined in FAR Subpart 2.1.

Section G-6, Recognition of Performing Entity and Team Members is hereby updated accordingly.

(a) The Contractor and the Government recognize that the parties named below form the performing entity on which the award of this Contract was based.

The performing entity is TBD. This entity is comprised of: TBD.

(b) Accordingly, the Contractor and the Government agree that the Contractor shall take no action to replace the components of the entity named in paragraph (a) of this clause without the prior written approval of the Contracting Officer.

(c) The following entites are Team Members for the purpose of B-3 Contract Fee Structures.

TBD [Parties comprising performing entity and major subcontractors identified in the contractor’s proposal]

Section H-31, Combating Race and Sex Stereotyping (Deviation)(Nov 2020) is hereby deleted in its entirety.

As a result, H-32 Strategic Purchasing is renumbered as H-31 and the table of contents is updated accordingly.

H-31 COMBATING RACE AND SEX STEREOTYPING (DEVIATION)(NOV 2020)

(a) Definitions. As used in this clause—

“Race or sex scapegoating” means assigning fault, blame, or bias to a race or sex, or to members of a race or sex because of their race or sex.

“Race or sex stereotyping” means ascribing character traits, values, moral and ethical codes, privileges, status, or beliefs to a race or sex, or to an individual because of his or her race or sex.

(b) Exemptions. The exemptions that apply to Executive Order (E.O.) 11246 also apply to E.O. 13950.

See FAR 22.807.

(c) Compliance with E. O. 13950, Combating Race and Sex Stereotyping. Unless exempted under paragraph (b) of this clause, the Contractor shall not use any workplace training that inculcates in its employees any form of race or sex stereotyping or any form of race or sex scapegoating, including the concepts that—

(1) One race or sex is inherently superior to another race or sex;

(2) An individual, by virtue of his or her race or sex, is inherently racist, sexist, or oppressive, whether consciously or unconsciously;

(3) An individual should be discriminated against or receive adverse treatment solely or partly because of his or her race or sex;

(4) Members of one race or sex cannot and should not attempt to treat others without respect to race or sex;

(5) An individual’s moral character is necessarily determined by his or her race or sex;

(6) An individual, by virtue of his or her race or sex, bears responsibility for actions committed in the past by other members of the same race or sex;

(7) Any individual should feel discomfort, guilt, anguish, or any other form of psychological distress on account of his or her race or sex; or

(8) Meritocracy or traits such as a hard work ethic are racist or sexist, or were created by a particular race to oppress another race.

(d) Notice. The Contractor shall send, to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, the notice provided below advising the labor union or workers’ representative of the Contractor’s commitments under this clause, and post copies of the notice in conspicuous places available to employees and applicants for employment.

NOTICE

E.O. 13950, Combating Race and Sex Stereotyping

Employers Holding Federal Contracts or Subcontracts Contractors shall not use any workplace training that inculcates in its employees any form of race or sex stereotyping or any form of race or sex scapegoating, including the following concepts that—

(1) One race or sex is inherently superior to another race or sex;

(2) An individual, by virtue of his or her race or sex, is inherently racist, sexist, or oppressive, whether consciously or unconsciously;

(3) An individual should be discriminated against or receive adverse treatment solely or partly because of his or her race or sex;

(4) Members of one race or sex cannot and should not attempt to treat others without respect to race or sex;

(5) An individual’s moral character is necessarily determined by his or her race or sex;

(6) An individual, by virtue of his or her race or sex, bears responsibility for actions committed in the past by other members of the same race or sex;

(7) Any individual should feel discomfort, guilt, anguish, or any other form of psychological distress on account of his or her race or sex; or

(8) Meritocracy or traits such as a hard work ethic are racist or sexist, or were created by a particular race to oppress another race.

For use in this notice, the terms—

“Race or sex scapegoating” means assigning fault, blame, or bias to a race or sex, or to members of a race or sex because of their race or sex; and “Race or sex stereotyping” means ascribing character traits, values, moral and ethical codes, privileges, status, or beliefs to a race or sex, or to an individual because of his or her race or sex.

Any person who believes a contractor has violated its nondiscrimination or affirmative action obligations under this notice should immediately contact the Office of Federal Contract Compliance Programs (OFCCP) Complaint Hotline to Combat Race and Sex Stereotyping at 202-343-2008 or via email at OFCCPComplaintHotline@dol.gov.

(End of notice)

(e) Noncompliance. If the Department of Labor’s Office of Federal Contract Compliance Programs

(OFCCP) determines that the Contractor is not in compliance with this clause or any rule, regulation, or order of the Secretary of Labor, this contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts, under the procedures authorized in E. O. 11246, as amended. In addition, sanctions may be imposed and remedies invoked against the Contractor as provided in E. O. 11246, as amended; in the rules, regulations, and orders of the Secretary of Labor; or as otherwise provided by law.

(a) Subcontracts. (1) The Contractor shall include the substance of this clause, including this paragraph (f), in all subcontracts that exceed $10,000 and are not exempted by the rules, regulations, or orders of the Secretary of Labor issued under E.O. 11246 and E.O. 13950, as amended, so that these terms and conditions of this clause will be binding upon each subcontractor.

(2) The Contractor shall take such action with respect to any subcontract as the Director of OFCCP may direct as a means of enforcing these terms and conditions, including sanctions for noncompliance, provided, that if the Contractor becomes involved in, or is threatened with, litigation with a subcontractor as a result of any direction, the Contractor may request the United States to enter into the litigation to protect the interests of the United States.

(End of clause)

Section I - Part II Contract Clauses

FAR 52.223-3, Hazardous Material Identification and Material Safety Data (Jan 1997)(FEB 2021), Alternate I (JUL 1995). The following clause language is amended to read as follows:

(a) “Hazardous material,” as used in this clause, includes any material defined as hazardous under the latest version of Federal Standard No. 313 (including revisions adopted during the term of the contract).

(b) The offeror must list any hazardous material, as defined in paragraph (a) of this clause, to be delivered under this contract. The hazardous material shall be properly identified and include any applicable identification number, such as National Stock Number or Special Item Number. This information shall also be included on the Material Safety Data Sheet submitted under this contract.

Material

None (If none, insert None)

Identification No.

(c) This list must be updated during performance of the contract whenever the Contractor determines that any other material to be delivered under this contract is hazardous.

(d) The apparently successful offeror agrees to submit, for each item as required prior to award, a Material Safety Data Sheet, meeting the requirements of 29 CFR 1910.1200(g) and the latest version of Federal Standard No. 313, for all hazardous material identified in paragraph (b) of this clause. Data shall be submitted in accordance with Federal Standard No. 313, whether or not the apparently successful offeror is the actual manufacturer of these items. Failure to submit the Material Safety Data Sheet prior to award may result in the apparently successful offeror being considered non-responsible and ineligible for award.

(e) If, after award, there is a change in the composition of the item(s) or a revision to Federal Standard No.

313, which renders incomplete or inaccurate the data submitted under paragraph (d) of this clause, the Contractor shall promptly notify the Contracting Officer and resubmit the data.

(f) Neither the requirements of this clause nor any act or failure to act by the Government shall relieve the Contractor of any responsibility or liability for the safety of Government, Contractor, or subcontractor personnel or property.

(g) Nothing contained in this clause shall relieve the Contractor from complying with applicable Federal, State, and local laws, codes, ordinances, and regulations (including the obtaining of licenses and permits) in connection with hazardous material.

(h) The Government’s rights in data furnished under this contract with respect to hazardous material are as follows:

(1) To use, duplicate and disclose any data to which this clause is applicable. The purposes of this right are to --

(i) Apprise personnel of the hazards to which they may be exposed in using, handling, packaging, transporting, or disposing of hazardous materials;

(ii) Obtain medical treatment for those affected by the material; and

(iii) Have others use, duplicate, and disclose the data for the Government for these purposes.

(2) To use, duplicate, and disclose data furnished under this clause, in accordance with subparagraph (h)

(1) of this clause, in precedence over any other clause of this contract providing for rights in data.

(3) The Government is not precluded from using similar or identical data acquired from other sources.

(i) Except as provided in paragraph (i)(2), the Contractor shall prepare and submit a sufficient number of Material Safety Data Sheets (MSDS’s), meeting the requirements of 29 CFR 1910.1200(g) and the latest version of Federal Standard No. 313, for all hazardous materials identified in paragraph (b) of this clause.

(1) For items shipped to consignees, the Contractor shall include a copy of the MSDS’s with the packing list or other suitable shipping document which accompanies each shipment. Alternatively, the Contractor is permitted to transmit MSDS’s to consignees in advance of receipt of shipments by consignees, if authorized in writing by the Contracting Officer.

(2) For items shipped to consignees identified by mailing address as agency depots, distribution centers or customer supply centers, the Contractor shall provide one copy of the MSDS’s in or on each shipping container. If affixed to the outside of each container, the MSDS’s must be placed in a weather resistant envelope.

(End of Clause)

FAR 52.225-9, Buy American-Construction Materials (MAY 2014)(FEB 2021). The following clause language is amended to read as follows:

(a) Definitions. As used in this clause--

Commercially available off-the-shelf (COTS) item-

(1) Means any item of supply (including construction material) that is—

(i) A commercial item (as defined in paragraph (1) of the definition at FAR 2.101 Federal Acquisition Regulation (FAR) 2.101);

(ii) Sold in substantial quantities in the commercial marketplace; and

(iii) Offered to the Government, under a contract or subcontract at any tier, without modification, in the same form in which it is sold in the commercial marketplace; and

(2) Does not include bulk cargo, as defined in 46 U.S.C. 40102(4), such as agricultural products and petroleum products.

“Construction material” means an article, material, or supply brought to the construction site by the Contractor or a subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material.

Cost of components means-

(1) For components purchased by the Contractor, the acquisition cost, including transportation costs to the place of incorporation into the construction material (whether or not such costs are paid to a domestic firm), and any applicable duty (whether or not a duty-free entry certificate is issued); or

(2) For components manufactured by the Contractor, all costs associated with the manufacture of the component, including transportation costs as described in paragraph (1) of this definition, plus allocable overhead costs, but excluding profit. Cost of components does not include any costs associated with the manufacture of the construction material.

Domestic construction material means-

(1) An unmanufactured construction material mined or produced in the United States; For construction material that does not consist wholly or predominantly of iron or steel or a combination of both-

(i) An unmanufactured construction material mined or produced in the United States; or

(ii) A construction material manufactured in the United States, if–

(A) The cost of its components mined, produced, or manufactured in the United States exceeds 55 percent of the cost of all its components. Components of foreign origin of the same class or kind for which nonavailability determinations have been made are treated as domestic.

Components of unknown origin are treated as foreign; or

(B) The construction material is a COTS item; or

(2) For construction material that consists wholly or predominantly of iron or steel or a combination of both, a construction material manufactured in the United States if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all components used in such construction material. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the construction material and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the construction material contains multiple components, the cost of all the materials used in such construction material is calculated in accordance with the definition of "cost of components".

Fastener means a hardware device that mechanically joins or affixes two or more objects together.

Examples of fasteners are nuts, bolts, pins, rivets, nails, clips, and screws.

Foreign construction material means a construction material other than a domestic construction material.

Foreign iron and steel means iron or steel products not produced in the United States. Produced in the United States means that all manufacturing processes of the iron or steel must take place in the United States, from the initial melting stage through the application of coatings, except metallurgical processes involving refinement of steel additives. The origin of the elements of the iron or steel is not relevant to the determination of whether it is domestic or foreign.

Predominantly of iron or steel or a combination of both means that the cost of the iron and steel content exceeds 50 percent of the total cost of all its components. The cost of iron and steel is the cost of the iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the product and a good faith estimate of the cost of iron or steel components excluding COTS fasteners.

Steel means an alloy that includes at least 50 percent iron, between 0.02 and 2 percent carbon, and may include other elements.

A construction material manufactured in the United States, if—

(i) The cost of its components mined, produced, or manufactured in the United States exceeds 50 percent of the cost of all its components. Components of foreign origin of the same class or kind for which nonavailability determinations have been made are treated as domestic; or

(ii) The construction material is a COTS item.

“Foreign construction material” means a construction material other than a domestic construction material.

“United States” means the 50 States, the District of Columbia, and outlying areas.

(b) Domestic preference. (1) This clause implements the 41 U.S.C. chapter 83, Buy American, by providing a preference for domestic construction material. In accordance with 41 U.S.C. 1907, the component test of the Buy American statute is waived for construction material that is a COTS item the domestic content test of the Buy American statute is waived for construction material that is a COTS item, except that for construction material that consists wholly or predominantly of iron or steel or a combination of both, the domestic content test is applied only to the iron and steel content of the construction materials, excluding COTS fasteners. (See FAR 12.505(a)(2)). The Contractor shall use only domestic construction material in performing this contract, except as provided in paragraphs (b)(2) and (b)(3) of this clause.

(2) This requirement does not apply to information technology that is a commercial item or to the construction materials or components listed by the Government as follows: None.

________________________________________________[Contracting Officer to list applicable excepted materials or indicate "none"]

(3) The Contracting Officer may add other foreign construction material to the list in paragraph (b)(2) of this clause if the Government determines that-

(i) The cost of domestic construction material would be unreasonable. The cost of a particular domestic construction material subject to the requirements of the Buy American statute is unreasonable when the cost of such material exceeds the cost of foreign material by more than 6 20 percent;

(ii) The application of the restriction of the Buy American statute to a particular construction material would be impracticable or inconsistent with the public interest; or

(iii)The construction material is not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities of a satisfactory quality.

(c) Request for determination of inapplicability of the Buy American statute. (1) (i) Any Contractor request to use foreign construction material in accordance with paragraph (b)(3) of this clause shall include adequate information for Government evaluation of the request, including-

(A)A description of the foreign and domestic construction materials;

(B) Unit of measure;

(C) Quantity;

(D)Price;

(E) Time of delivery or availability;

(F) Location of the construction project;

(G)Name and address of the proposed supplier; and

(H)A detailed justification of the reason for use of foreign construction materials cited in accordance with paragraph (b)(3) of this clause.

(ii) A Rrequest based on unreasonable cost shall include a reasonable survey of the market and a completed price comparison table in the format in paragraph (d) of this clause.

(iii)The price of construction material shall include all delivery costs to the construction site and any applicable duty (whether or not a duty-free certificate may be issued).

(iv) Any Contractor request for a determination submitted after contract award shall explain why the Contractor could not reasonably foresee the need for such determination and could not have requested the determination before contract award. If the Contractor does not submit a satisfactory explanation, the Contracting Officer need not make a determination.

(2) If the Government determines after contract award that an exception to the Buy American statute applies and the Contracting Officer and the Contractor negotiate adequate consideration, the Contracting Officer will modify the contract to allow use of the foreign construction material.

However, when the basis for the exception is the unreasonable price of a domestic construction material, adequate consideration is not less than the differential established in paragraph (b)(3)(i) of this clause.

(3) Unless the Government determines that an exception to the Buy American statute applies, use of foreign construction material is noncompliant with the Buy American statute.

(d) Data. To permit evaluation of requests under paragraph (c) of this clause based on unreasonable cost, the Contractor shall include the following information and any applicable supporting data based on the survey of suppliers:

Foreign and Domestic Construction Materials Price Comparison

Construction material description

Unit of measure

Quantity Price (dollars) *

Item 1 Foreign construction material Domestic construction material Item 2 Foreign construction material Domestic construction material

[*Include all delivery costs to the construction site and any applicable duty (whether or not a duty-free entry certificate is issued).]

[List name, address, telephone number, and contact for suppliers surveyed. Attach copy of response; if oral, attach summary.]

[Include other applicable supporting information.]

(End of clause)

FAR 52.225-13, Restriction on Certain Foreign Purchases (JUN 2008)(FEB 2021). The clause language is amended to the version shown and is incorporated by reference.

FAR 52.228-11, Pledges of Assets (Aug 2018)(FEB 2021). The clause language is amended the version shown and is incorporated by reference.

Clause I-25, DEAR 970.5215-4, Cost Reduction. The following language is amended to read as follows:

DEAR 970.5215-4 COST REDUCTION (DEVIATION NOV 2011) (NNSA CLASS DEVIATION

MAR 2021)

(a) General. It is the Department of Energy's (DOE’s)/National Nuclear Security Administration’s (NNSA’s) intent to have its facilities and laboratories operated in an efficient and effective manner where improvement to process is emphasized in an on-going manner. To this end, the Contractor shall assess its operations and identify areas where cost reductions would bring cost efficiency to operations without adversely affecting the level of performance required by the contract. The Contractor, to the maximum extent practicable, shall identify areas where cost reductions may be effected, and develop and submit Cost Reduction Proposals (CRPs) to the Contracting Officer.

(b) Definitions.

Administrative cost is the Contractor cost of administering the Cost Savings Program.

Design, process, or method change is a change to a design, process, or method which has established cost, technical and schedule baseline, is defined, and is subject to a formal control procedure. Such a change must be innovative, initiated by the Contractor, and applied to a specific project, program, or business process.

Development cost is the Contractor cost of up-front planning, engineering, prototyping, and testing of a design, process, or method.

DOE/NNSA cost is the Government cost agreed to under the CRP as part of implementation.

Earned Value Management System (EVMS)-like system is a system that utilizes earned value management system guidelines such as, identification of discrete work packages, establishment of a Performance Management Baseline or equivalent, and identification of Cost Variance and Schedule Variance, to the maximum extent practicable, but is not a formally approved ANSI/EIS 748-compliant Earned Value Management System.

Execution cost is the total of Administrative, Development, DOE/NNSA, and Implementation costs, plus any other costs determined by the Contracting Officer to be incurred for the Cost Savings Program or specific cost reductions.

Implementation cost is the Contractor cost such as tooling, facilities, documentation, products, etc., required to effect a design, process, or method change once it has been tested and approved, as well as relocation, training, severance, and any other costs that are required to effect the merger or continuous improvement activities.

Hard savings means savings that directly reduce the overall cost of operations. Hard savings must be supported by objective metrics or measures. Examples of hard savings include:

i) Permanently eliminating or reducing recurring costs through innovative product designs, or process improvements including through merger activities;

ii) Supply chain management activities resulting in actual savings (as opposed to potential savings);

iii) Integration of life cycle approaches for the design and development of systems that minimize costs (e.g.

experimental, maintenance and operations);

iv) Reducing direct or indirect material or labor costs;

v) Reducing inventory levels of product or material, or reducing the cost of carrying the same levels;

vi) Reducing utility or natural resource consumptions; and vii)Reducing or eliminating scrap material costs.

Net savings means the difference between hard savings and execution costs.

Soft Savings means savings that do not directly reduce the overall cost of operations. Soft savings may or may not be supported by objective metrics or measures. Examples of soft savings include:

i) Savings that cannot be demonstrated to reduce the bottom line operating costs including, for example, labor efficiency improvements that increase productivity or throughput but do not reduce total hours worked or costs incurred;

ii) Savings that are intangible and/or difficult to measure with objective metrics, for example, a wellness plan that is intended to reduce absenteeism, turnover or insurance costs; and

iii) Cost avoidances that cannot be demonstrated to lower cost of products/services based on a comparison against an objective baseline or metrics, for example, slowing the rate of a cost increase.

(c) Consideration of Hard Savings. Proposed savings that will not be considered creditable by the Contracting Officer include:

(1) Savings resulting from formal or informal NNSA direction or changes in mission, work scope

(including Work for Others Strategic Partnership Projects growth), or routine Contractor adjustments due to budget changes;

(2) Underruns resulting from anything other than a Contractor efficiency improvement, including but not limited to additional NNSA funding, shifting of work scope to a future fiscal year, (e.g. moving upgrade to facilities or infrastructure to out years with no evidence of savings or computer buys that are routinely purchased on a 3 year basis are deferred for an additional two years) deferred maintenance, re-categorizing direct/indirect costs, or increases in the direct allocation bases;

(3) Field office initiatives, direction, work scope changes, mission changes, or reorganization, unless the Contractor can demonstrate a significant role in achieving savings resulting from the field office actions;

(4) Savings that have a negative impact on any existing Contract requirements such as scope, safety, IT/cybersecurity, or security;

(5) Savings resulting from shifting the employer paid portion of employee benefits costs to employees beyond current industry trends;

(6) Savings associated with cybersecurity program or activities;

(7) Savings associated with procurement activities;

(8) Soft savings; and/or

(9) Efforts that have been credited elsewhere under this contract for base contract compliance or other fee consideration, such as in the Performance Evaluation Report.

(d) Process, procedures and requirements for CRP. Process and procedures, including modifications and disputes, for management of the CRP will be established by the Contracting Officer with Contractor input with a goal for timely approval and validation of savings. The Contracting Officer may unilaterally adjust the process, procedures and requirements during contract performance with Contractor input. The process and procedures will contain a change control process for the CRP.

The Contractor shall utilize the Annual Controlled Baseline for all Contractor support costs and programs.

CRP submitted by the Contractor shall contain, at a minimum, the following:

(1) Current Method (Baseline) - A verifiable description of the current scope of work, cost, and schedule to be affected by the CRP, and supporting documentation. The specific design, process, or method being changed shall be clearly described.

(2) Proposed Method (Baseline) - A verifiable description of the new scope of work, cost, and schedule, how the CRP will be accomplished, and supporting documentation.

(3) Feasibility Assessment - A description and evaluation of the proposed initiative and benefits, risks, and impacts of implementation. This evaluation shall include an assessment of the difference between the current method (baseline) and proposed new method including all related costs.

(4) Cost Estimate – A detailed estimate of all development, implementation, or other costs necessary to successfully execute the CRP, including supporting rationale and documentation. The cost estimate shall indicate the expected source of funding for the costs, and whether additional budget authority will be needed. The Government will consider the allowability of implementation costs necessary to execute a CRP. The Government makes no commitment to fund execution of any particular CRP.

(5) Savings Estimate – A detailed estimate of the expected net savings, including metrics, supporting rationale, and verifiable documentation. Metrics shall utilize an EVMS or EVMS EVMS-like system to the maximum extent practicable. A return on investment analysis and a completion schedule with milestones must be included. All proposals that can be completed or lifecycle improvements that can substantially completed that benefit NNSA will be considered.

Data and metrics submitted to support the CRP and any validation must be consistent with and reconcilable to the Annual Controlled Baseline and any programmatic cost or progress reporting provided to the Government.

(e) Evaluation and Decision. The CRP must shall be approved by the Contracting Officer for prior to implementation. NNSA encourages the Contractor to perform work consistent with commercial and industry best practices, and propose lifecycle improvements that can be completely or substantially completed during the Contract’s period of performance. For NNSA to accept and support the Contractor’s successful implementation of the CRP there should be a discussion included in the information provided by the CRP to the extent the proposed cost reduction effort may—

(1) Pose a risk to the mission, security, health and safety of workers, the community, and the environment;

(2) Require a waiver or deviation from DOE requirements, such as DOE Orders and joint oversight agreements;

(3) Require a change in other contractual agreements;

(4) Result in significant organizational or personnel impacts;

(5) Create a negative impact on the cost, schedule, or scope of work in another area;

(6) Pose a potential negative impact on the credibility of the Contractor or the DOE;

(7) Negatively impact successful and timely completion of any of the work in the cost, technical, and schedule baseline; and/or

(8) Significantly impact internal controls.

(f) Acceptance or Rejection of the CRP. Acceptance or rejection of the CRP, or modification thereto, is a unilateral determination made by the Contracting Officer based upon whether the CRP is in the best interest of the Government. When making the determination, the Contracting Officer will consider the evaluation criteria established in paragraph (c) and (e) and any other relevant information. The failure of the Contracting Officer to notify the Contractor of the acceptance or rejection of the CRP, or any modification, shall not be construed as approval. The only CRPs that will be considered for acceptance are those which the Contractor can demonstrate, at a minimum, will—

(1) Result in net savings;

(2) Not reappear as costs in subsequent periods and/or other areas; and

(3) Not result in any impairment or decreased performance levels of essential functions, required deliverables, performance goals, or production milestones.

(g) Sharing Arrangement. Savings resulting from changes to employee benefits are not eligible for sharing. If a CRP for savings unrelated to employee benefits is accepted, the Contractor may share the net savings generated during the Contract’s period of performance. The Contractor’s share shall be 35% and the Government’s share shall be 65% of verified net savings for the first and second years that savings are verified. For specific CRPs, changes to the Contractor’s share percentage or sharing period may be otherwise agreed to by the Contracting Officer if it is in the best interest of the Government. Similarly, a CRP modification extending a CRP beyond a 2-year period may approved by the Contracting Officer if it is advantageous to the Government (e.g., because it results in greater savings). Regardless of the sharing arrangement, all savings must be sustained through the end of the contract.

(h) Validation and Verification of Net Savings. The Contractor shall validate and certify the amount of net savings achieved during the period and sustained from previous period(s). Savings shall be subject to the sharing arrangement identified in (g); savings within the sharing period which do not have the relevant funds available for sharing shall not be validated. The Contracting Officer will verify the net savings through review of the Contractor’s validation process, methodology, supporting documentation, and any other relevant factors. An external verification, up to and including an audit of the Contractor’s validation report, may be utilized by the Contracting Officer. The Contractor’s validation and the Government’s verification of cost savings will ensure NNSA mission deliverables (quality or timeliness) were not negatively impacted. The Contractor’s share in net savings will be paid after Contracting Officer verification of the Contractor’s validation.

(i) Sustainment. All completed activities shall be sustained for the duration of the contract and carried forward into the subsequent fiscal years. Sustainment of CRPs must be clearly demonstrable through the Annual Controlled Baseline. The Contractor shall notify the Contracting Officer within 14 days if a non-sustainment has occurred or is expected to occur, provide a detailed justification for the non-sustainment, and provide any additional requested information. The Contractor shall make a good faith best effort to sustain cost reductions, process improvements, and streamlining achieved under approved CRPs as well as cost reductions achieved under the predecessor contract. Sustainment failure may result in a reduction to the Contractor’s Performance Evaluation Report score.

(j) Relationship to Other Incentives. Only those benefits of an accepted CRP not awardable under other clauses of this contract shall be considered under this clause.

(k) Subcontracts. The Contractor may include a clause similar to this clause in any subcontract. In calculating any estimated shared net savings in the CRP under this contract, the Contractor's administration, development, and implementation costs shall include any subcontractor's allowable costs, and any CRP incentive payments to a subcontractor resulting from the acceptance of such CRP. The Contractor may choose any arrangement for subcontractor CRP incentive payments, provided that the payments not reduce the DOE's share of shared net savings.

(l) Program Closeout. When developing and submitting CRPs, the Contractor should consider their ability to validate all activities necessary to complete the CRP prior to expiration of the contract's period of performance. The period of performance end date is the final day to complete CRP activities or demonstrate substantial completion of a CRP. The Contractor will submit a program closeout plan during the first sixty (60) days of their final year of performance.

(End of clause)

Sec M - Evaluation Factors for Award

Section M-4, Technical and Management Criteria. Subparagraph (a) is amended to read as follows:

The Government will evaluate the Offeror's recent, relevant past performance to determine the extent to which it demonstrates the Offeror’s ability to successfully perform the Statement of Work (SOW). Past performance that is not both recent and relevant (as those terms are defined in (i) and (ii) below) will not be considered. To the extent it is recent and relevant, the Government will consider past performance information submitted by the Offeror (e.g., Past Performance Information Forms and related records, such as performance assessments, small business achievements; and list of terminated contracts), Past Performance Questionnaires, as well as past performance information that the Government obtains from other sources. The contracts reviewed for Past Performance will include all recent and relevant contracts submitted by Offerors along with recent and relevant NNSA contracts that can be attributed to any Offeror Team Member. The evaluation may also consider the source of the information, context of the data, and general trends in the contractor’s performance. The Government will not apportion past performance under a DOE, NNSA, or other contract differently among parent companies that teamed or formed a joint entity for the purposes of said contract. Rather, all parent companies under a contract will be equally credited (positively and negatively) for past performance for that contract. In the case of an Offeror without a meaningful record of relevant past performance or for whom information on relevant past performance is not available, the Offeror will be evaluated neither favorably nor unfavorably in this criterion, and will be assigned a neutral rating.

B. RFP changes are incorporated by deleting the following RFP sections in their entirety, and replacing with the corresponding amended RFP Amendment 0002 sections attached hereto.

1) Section B-H - Part I Schedule (Amd 0002)

2) Section I - Part II Contract Clauses (Amd 0002)

3) Section M - Evaluation Factors for Award (Amd 0002)

C. All other terms and conditions remain unchanged.