ICP_Section H_FRFP_Am.1.pdf

IDAHO CLEANUP PROJECT (ICP) – FINAL RFP SECTION H

SOLICITATION NO. 89303319REM000034, AMENDMENT 0001

H-1

Part I – The Schedule

Section H

Special Contract Requirements

H-2

H.1 DOE-H-2013 CONSECUTIVE NUMBERING (OCT 2014) 5

H.2 DOE-H-2002 NO THIRD PARTY BENEFICIARIES (OCT 2014)

H.3 DEFINITIONS

H.4 WORKFORCE TRANSITION AND EMPLOYEE HIRING PREFERENCES INCLUDING

THROUGH PERIOD OF PERFORMANCE

H.5 DOE-H-2001 EMPLOYEE COMPENSATION: PAY AND BENEFITS (OCT 2017)

(REVISED)

H.6 SPECIAL PROVISIONS APPLICABLE TO WORKFORCE TRANSITION AND

EMPLOYEE COMPENSATION: PAY AND BENEFITS

H.7 WORKFORCE TRANSITION AND BENEFITS TRANSITION: PLANS AND

TIMEFRAMES

H.8 DOE-H-2004 POST CONTRACT RESPONSIBILITIES FOR PENSION AND OTHER

BENEFIT PLANS (OCT 2014)

H.9 DOE-H-2028 LABOR RELATIONS (OCT 2014) (REVISED)

H.10 WORKFORCE RESTRUCTURING (REVISED) (FEBRUARY 2019)

H.11 LABOR STANDARDS

H.12 DOE-H-2003 WORKER’S COMPENSATION INSURANCE (OCT 2014)

H.13 DOE-H-2073 RISK MANAGEMENT AND INSURANCE PROGRAMS (DEC 2014)

(REVISED)

H.14 OVERTIME CONTROL REPORTING

H.15 DOE-H-2022 CONTRACTOR BUSINESS SYSTEMS (OCT 2014)

H.16 DOE-H-2023 COST ESTIMATING SYSTEM REQUIREMENTS (OCT 2014)

(REVISED)

H.17 DOE-H-2024 EARNED VALUE MANAGEMENT SYSTEM (MAR 2019) (REVISED) 38

H.18 DOE-H-2025 ACCOUNTING SYSTEM ADMINISTRATION (OCT 2014) (REVISED) 42

H.19 DOE-H-2026 CONTRACTOR PURCHASING SYSTEM ADMINISTRATION (OCT

2014) (REVISED)

H.20 DOE-H-2027 CONTRACTOR PROPERTY MANAGEMENT SYSTEM

ADMINISTRATION (OCT 2014) (REVISED)

H.21 DOE-H-2014 CONTRACTOR ACCEPTANCE OF NOTICES OF VIOLATION OR

ALLEGED VIOLATIONS, FINES, AND PENALTIES (OCT 2014) (REVISED)

H.22 DOE-H-2016 PERFORMANCE GUARANTEE AGREEMENT (OCT 2014)

H-3

H.23 DOE-H-2017 RESPONSIBLE CORPORATE OFFICIAL AND CORPORATE BOARD

OF DIRECTORS (OCT 2014) (REVISED)

H.24 DOE-H-2018 PRIVACY ACT SYSTEMS OF RECORDS (OCT 2014) (REVISED)

H.25 DOE-H-2019 DISPOSITION OF INTELLECTUAL PROPERTY – FAILURE TO

COMPLETE CONTRACT PERFORMANCE (JUL 2018)

H.26 DOE-H-2021 WORK STOPPAGE AND SHUTDOWN AUTHORIZATION (OCT 2014)

(REVISED)

H.27 DOE-H-2033 ALTERNATIVE DISPUTE RESOLUTION (OCT 2014)

H.28 DOE-H-2034 CONTRACTOR INTERFACE WITH OTHER CONTRACTORS AND/OR

GOVERNMENT EMPLOYEES (OCT 2014) (REVISED)

H.29 DOE-H-2035 ORGANIZATIONAL CONFLICT OF INTEREST MANAGEMENT PLAN

(OCT 2014) (REVISED)

H.30 DOE-H-2043 ASSIGNMENT AND TRANSFER OF PRIME CONTRACTS AND

SUBCONTRACTS (OCT 2014) (REVISED)

H.31 DOE-H-2045 CONTRACTOR COMMUNITY COMMITMENT (OCT 2014)

(REVISED)

H.32 DOE-H-2046 DIVERSITY PROGRAM (OCT 2014)

H.33 DOE-H-2048 PUBLIC AFFAIRS – CONTRACTOR RELEASES OF INFORMATION

(OCT 2014)

H.34 INFORMATION

H.35 DOE-H-2052 REPRESENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS

OF THE OFFEROR (OCT 2014) (REVISED)

H.36 DOE-H-2053 WORKER SAFETY AND HEALTH PROGRAM IN ACCORDANCE

WITH 10 CFR 851 (OCT 2014)

H.37 DOE-H-2058 DESIGNATION AND CONSENT OF TEAMING SUBCONTRACTS –

ALTERNATE I (OCT 2014) (REVISED)

H.38 DOE-H-2059 PRESERVATION OF ANTIQUITIES, WILDLIFE, AND LAND AREAS

(OCT 2014)

H.39 DOE-H-2061 CHANGE ORDER ACCOUNTING (OCT 2014)

H.40 DOE-H-2063 CONFIDENTIALITY OF INFORMATION (OCT 2014) (REVISED)

H.41 DOE-H-2064 USE OF INFORMATION TECHNOLOGY EQUIPMENT, SOFTWARE,

AND THIRD PARTY SERVICES - ALTERNATE I (OCT 2014)

H.42 DOE-H-2068 CONFERENCE MANAGEMENT (OCT 2014)

H.43 DOE-H-2069 PAYMENTS FOR DOMESTIC EXTENDED PERSONNEL

ASSIGNMENTS (OCT 2014) (REVISED)

H-4

H.44 DOE-H-2070 KEY PERSONNEL – ALTERNATE I (OCT 2014) (REVISED)

H.45 DOE-H-2071 DEPARTMENT OF ENERGY DIRECTIVES (OCT 2014)

H.46 DOE-H-2072 USE OF GOVERNMENT VEHICLES BY CONTRACTOR EMPLOYEES

(OCT 2014)

H.47 DOE-H-2075 PROHIBITION ON FUNDING FOR CERTAIN NONDISCLOSURE

AGREEMENTS (OCT 2014)

H.48 DOE-H-2076 LOBBYING RESTRICTIONS (NOV 2018)

H.49 DOE-H-2078 MULTIFACTOR AUTHENTICATION FOR INFORMATION

SYSTEMS

H.50 DOE-H-2080 AGREEMENT REGARDING WORKPLACE SUBSTANCE ABUSE

PROGRAMS AT DOE SITES (APR 2018)

H.51 TASK ORDERING PROCEDURE

H.52 SUBCONTRACTED WORK

H.53 PARENT ORGANIZATION SUPPORT

H.54 SUBCONTRACTOR TIMEKEEPING RECORDS SIGNATURE REQUIREMENT

H.55 ENERGY EMPLOYEES OCCUPATIONAL ILLNESS COMPENSATION PROGRAM

ACT (EEOICPA)

H.56 ALLOCATION OF RESPONSIBILITIES FOR ENVIRONMENTAL COMPLIANCE ... 80

H.57 PARTNERING

H.58 LAWS, REGULATIONS, AND DOE DIRECTIVES

H.59 NATIONAL NUCLEAR SECURITY ADMINISTRATION/ENVIRONMENTAL

MANAGEMENT STRATEGIC SOURCING PARTNERSHIP

H.60 MENTOR-PROTÉGÉ PROGRAM

H.61 LEGAL MANAGEMENT

H.62 EMERGENCY RESPONSE

H.63 DEPARTMENT OF ENERGY NATIONAL TRAINING CENTER

H.64 MANAGEMENT OF ACCOUNTABLE PROPERTY

H.65 REAL PROPERTY ASSET MANAGEMENT

H.66 ORGANIZATIONAL CONFLICT OF INTEREST – AFFILIATE (S)

H.67 DOE-H-7003 CONTRACTOR ASSURANCE SYSTEM (SEP 2017)

H-5

H.1 DOE-H-2013 CONSECUTIVE NUMBERING (OCT 2014)

Due to automated procedures employed in formulating this document, clauses and provisions contained within may not always be consecutively numbered.

CONTRACTOR HUMAN RESOURCE MANAGEMENT (CHRM) CLAUSES

H.2 DOE-H-2002 NO THIRD PARTY BENEFICIARIES (OCT 2014)

This Contract is for the exclusive benefit and convenience of the parties hereto. Nothing contained herein shall be construed as granting, vesting, creating or conferring any right of action or any other right or benefit upon past, present or future employees of the Contractor, or upon any other third party. This provision is not intended to limit or impair the rights which any person may have under applicable Federal statutes.

H.3 DEFINITIONS

For purposes of H Clauses entitled, Workforce Transition and Employee Hiring Preferences

Including through Period of Performance, DOE-H-2001, Employee Compensation: Pay and

Benefits (Oct 2014), and Special Provisions Applicable to Workforce Transition and Employee

Compensation: Pay and Benefits, the following definitions are applicable (unless otherwise specified):

(a) “AMWTP” means Advanced Mixed Waste Treatment Project.

(b) “Contract Award Date” means the date the Contract is signed by the Contracting Officer

(CO), noted in Block 28 of the Standard Form 33, Solicitation, Offer and Award.

(c) “Contract Transition Period” means the 90-day transition as defined in Section C.2 of this

Contract.

(d) “Fluor Idaho” means Fluor Idaho, LLC under contract DE-EM0004083.

(e) “STI” means Spectra Tech, Inc. under contract DE-EM0003976.

(f) “ICP” means Idaho Cleanup Project.

(g) “Incumbent Contractor(s)” means Fluor Idaho and STI.

(h) “Incumbent Employees” means employees who are employees of either Fluor Idaho or

STI.

(i) “Non-Incumbent Employees” are employees other than Incumbent Employees.

(j) “Contract Ordering Period” is defined in Section F, F.3 Period of Performance.

(k) “Task Order Period of Performance” is defined in each Task Order.

H.4 WORKFORCE TRANSITION AND EMPLOYEE HIRING PREFERENCES

INCLUDING THROUGH PERIOD OF PERFORMANCE

The Contractor shall comply with the hiring preferences set forth below:

(a) The Contractor shall provide, during the Transition Period and throughout the period of performance, preferences in hiring for vacancies for non-managerial positions (i.e., all those below the first line of supervision) in accordance with hiring

H-6 preferences in the paragraphs below, in descending order of priority, and in accordance with applicable law, any applicable collective-bargaining agreement(s), and applicable site seniority list(s) as provided to the Contractor by the CO, as set forth below.

(1) The Contractor shall provide Incumbent Employees the hiring preferences in paragraphs (i) and (ii) in descending order of priority:

(i) A preference in hiring for vacancies in non-managerial positions that are substantially equivalent to the position each respective Incumbent Employee held on the effective date of the contract transition task order.

(ii) A preference in hiring for vacancies in non-managerial positions for Incumbent

Employees not hired into a substantially equivalent position in (1), but who meet the qualifications for another position.

(2) The Contractor shall give a preference in hiring to individuals who, as former employees of Fluor Idaho, are entitled to recall rights consistent with any applicable collective bargaining agreement(s) at the Idaho Cleanup Project (ICP) and the Advanced Mixed

Waste Treatment Project (AMWTP).

(b) The Contractor shall provide, throughout the contract ordering period, and subsequent

Task Order(s) period of performance extending beyond the contract ordering period, preferences in hiring for vacancies at the INL Site for non-managerial positions (i.e., all those below the first line of supervision), in accordance with the hiring preferences in paragraphs (1) – (4) below, in descending order of priority.

(1) Consistent with any applicable collective bargaining agreement(s) and site seniority lists at the INL Site, the Contractor shall give a preference in hiring to individuals who are former employees of the Incumbent Contractors, and who are entitled to recall rights.

(2) The Contractor shall give a preference in hiring to individuals set forth below in paragraphs (A) and (B), in descending order of priority, who are eligible for the hiring preference contained in the clause in Section I of this Contract entitled “DEAR

952.226-74, Displaced Employee Hiring Preference”, consistent with the provisions of any applicable Workforce Restructuring Plan and Departmental guidance on workforce restructuring, as amended from time to time, regarding the preferential hiring of employees:

(A) Former employees of the Incumbent Contractors or any other DOE contractor or subcontractor of a DOE contractor at the INL Site.

(B) Former employees of other DOE contractor(s) or subcontractor(s) at a DOE defense nuclear facility eligible for the hiring preference.

(3) The Contractor shall give a preference in hiring to individuals who (A) were formerly employed at the INL Site, including individuals previously employed by ICP, AMWTP or the Licensed NRC Facilities; and (B) were involuntarily separated (other than for cause) from their employment at the INL Site; and (C) are qualified for the position or who are not qualified for a particular position, but who agree to become qualified on their own and can become qualified by the date set by the Contractor for commencement of active employment under this Contract or an individual task order.

H-7

(4) The Contractor shall give a preference in hiring to individuals (A) who have separated from employment at the INL Site for any reason other than for cause; (B) who are not precluded from seeking employment with a DOE or NNSA contractor by the terms of employee waivers or releases of claims they executed, absent repayment of severance consistent with the terms of those agreements; and (C) who are qualified for a particular position.

H.5 DOE-H-2001 EMPLOYEE COMPENSATION: PAY AND BENEFITS (OCT 2017)

(REVISED)

(a) Contractor Employee Compensation Plan

The Contractor shall submit, for CO approval, by close of the Transition Task Order

Period, a Contractor Employee Compensation Plan demonstrating how the Contractor will comply with the compensation requirements of this Contract. The Contractor Employee

Compensation Plan shall describe the Contractor’s policies regarding compensation, pensions and other benefits, and how these policies will support, at reasonable cost, the effective recruitment and retention of a highly-skilled, motivated, and experienced workforce. A description of the Contractor Employee Compensation Program should include the following components:

(1) Philosophy and strategy for all pay delivery programs;

(2) System for establishing a job worth hierarchy;

(3) Method for relating internal job worth hierarchy to external market;

(4) System that links individual and/or group performance to compensation decisions;

(5) Method for planning and monitoring the expenditure of funds;

(6) Method for ensuring compliance with applicable laws and regulations;

(7) System for communicating the programs to employees;

(8) System for internal controls and self-assessment; and

(9) System to ensure that reimbursement of compensation, including stipends, for employees who are on joint appointments with a parent or other organization shall be on a pro-rated basis.

(b) Total Compensation System

The Contractor shall develop, implement and maintain formal policies, practices and procedures to be used in the administration of its compensation system consistent with

Federal Acquisition Regulation (FAR) 31.205-6 and Department of Energy Acquisition

Regulation (DEAR) 970.3102-05-6, Compensation for Personal Services. DOE-approved standards (e.g., set forth in an advance understanding or appendix), if any, shall be applied to the Total Compensation System. The Contractor’s Total Compensation System shall be fully documented, consistently applied, and acceptable to the CO. Costs incurred in implementing the Total Compensation System shall be consistent with the Contractor’s documented Contractor Employee Compensation Plan, as approved by the CO.

(c) Requirements for Subcontractors with Incumbent Contractor Eligible Employees

H-8

DOE and the Contractor shall agree to the subcontractors that will be subject to the requirements to provide pension and other benefits for Pension Plan Eligible Employees, as defined in paragraph (f) of H Clause entitled, Definitions.

(1) The Contractor shall submit to DOE no later than thirty days prior to the close of the

Transition Task Order Period of Performance, and with each subsequent task order proposal submittal, a list of subcontractors that will flow down the requirement for continuation of benefits to Eligible Employees.

(2) The Contractor may thereafter propose changes to those subcontractors subject to paragraph (1) above. Such proposed changes shall not be effective or implemented without prior written approval by the CO. Approval of a proposed change is at the unilateral discretion of the CO.

(3) The Contractor shall flow down, to all subcontractors that are subject to the pension plan in paragraphs (1) and (2) of this section, the requirements of paragraphs (g) and (h) of this clause; and paragraphs (a) and (b) of H Clause entitled, Post-Contract

Responsibilities for Pension and Other Benefit Plans.

(4) Subject to other subcontract review and approval requirements in this Contract, this clause does not limit the Contractor’s ability to utilize subcontractors as necessary to perform Contract requirements.

(d) Reports and Information

The Contractor shall provide the CO with the following reports and information with respect to pay and benefits provided under this Contract:

(1) Annual Contractor Salary-Wage Increase Expenditure Report to include, at a minimum, breakouts for merit, promotion, variable pay, special adjustments, and structure movements for each pay structure showing actual against approved amounts and planned distribution of funds for the following year.

(2) A list of the top five most highly-compensated executives, as defined in FAR 31.205-

6(p)(4)(ii) and their total cash compensation, at the time of the contract award and at the time of any subsequent change to their total cash compensation. This should be the same information provided to the System for Award Management (SAM) in accordance with FAR 52.204-10 Reporting Executive Compensation and First-Tier Subcontract

Awards.

(3) An Annual Report of Compensation and Benefits. Report to be submitted no later than

March 1 of each year in iBenefits or its successor.

(e) Employee Compensation Programs

The Contractor shall establish compensation programs for Incumbent Employees and

Non-Incumbent Employees, as set forth in paragraphs (1) and (2) below and consistent with any applicable law, provided, however, that employees scheduled to work fewer than

20 hours per week receive only those benefits required by law. Employees are eligible for benefits, subject to the terms, conditions, and limitations of each benefit program.

(1) Incumbent Employees are as defined in (h) of H Clause entitled, Definitions.

H-9

(i) Pay. The Contractor shall provide equivalent base pay, as compared to the base pay provided and reimbursed by the Government, to Incumbent Employees for at least the first year of the term of the IDIQ Contract Ordering Period.

(ii) Pension and Other Benefits. The Contractor shall provide a total package of benefits to Incumbent Employees comparable to that provided by the Incumbent

Contractors. Comparability of the total benefit package shall be determined by the

Contracting Officer at his/her sole discretion. Incumbent Employees shall remain in their existing DB and/or DC pension plans (or comparable successor plans if continuation of the existing plans is not practicable) pursuant to pension plan eligibility requirements and applicable law.

(2) Non-Incumbent Employees are as defined in (i) of H Clause entitled, Definitions.

All Non-Incumbent Employees shall receive a total pay and benefits package that provides for market-based retirement and medical benefit plans that are competitive with the industry from which the Contractor recruits its employees.

(3) Cash Compensation.

(i) The Contractor shall submit the following to the CO for a determination of cost allowability for reimbursement under the Contract:

(A) Any proposed major compensation program design changes prior to implementation.

(B) Variable pay programs/incentives. If not already authorized in the contract, a justification shall be provided with proposed costs and impacts to budget, if any.

(C) In the absence of Departmental policy to the contrary (e.g., Secretarial pay freeze) a Contractor that meets the criteria, as set forth below, is not required to submit a Compensation Increase Plan (CIP) request to the CO for an advance determination of cost allowability for a Merit Increase fund or

Promotion/Adjustment fund.

I. The Merit Increase fund does not exceed the mean percent increase included in the annual Departmental guidance providing the

WorldatWork Salary Budget Survey’s salary increase projected for the

CIP year. The Promotion/Adjustment fund does not exceed the increase identified in the annual Departmental guidance.

II. The budget used for both Merit Increase funds and

Promotion/Adjustment funds shall be based on the payroll for the end of the previous CIP year.

III. Salary structure adjustments do not exceed the mean WorldatWork structure adjustments projected for the CIP year and communicated through the annual Department CIP guidance.

IV. Please note: No later than the first day of the CIP cycle, Contractors must provide notification to the CO of planned increases and position to market data by mutually agreed-upon employment categories. No

H-10 presumption of allowability will exist for employee job classes that exceed market position.

(D) If a Contractor does not meet the criteria included in (C) above, a CIP must be submitted to the CO for an advance determination of cost allowability. The

CIP should include the following components and data:

I. Comparison of average pay to market average pay;

II. Information regarding surveys used for comparison;

III. Aging factors used for escalating survey data and supporting information;

IV. Projection of escalation in the market and supporting information;

V. Information to support proposed structure adjustments, if any;

VI. Analysis to support special adjustments;

VII. Funding requests for each pay structure to include breakouts of merit, promotions, variable pay, special adjustments, and structure movement.

(a) The proposed plan totals shall be expressed as a percentage of the payroll for the end of the previous CIP year.

(b) All pay actions granted under the compensation increase plan are fully charged when they occur regardless of time of year in which the action transpires and whether the employee terminates before year end.

(c) Specific payroll groups (e.g., exempt, nonexempt) for which CIP amounts are intended shall be defined by mutual agreement between the contractor and the CO.

(d) The CO may adjust the CIP amount after approval based on major changes in factors that significantly affect the plan amount (for example, in the event of a major reduction in force or significant ramp-up).

VIII. A discussion of the impact of budget and business constraints on the CIP amount;

IX. Comparison of pay to relevant factors other than market average pay.

(E) After receiving DOE CIP approval or if criteria in (e)(3)(i)(C) are met, contractors may make minor shifts of up to 10 percent of approved CIP funds by employment category (e.g., Scientist/Engineer, Admin, Exempt, Non-

Exempt) without obtaining DOE approval.

(F) Individual compensation actions for the top contractor official (e.g., laboratory director/plant manager or equivalent) and key personnel not included in the

CIP. For those key personnel included in the CIP, DOE will approve salaries upon contract award and when key personnel are replaced during the contract ordering period and subsequent Task Order(s) period of performance extending beyond the contract ordering period. DOE will have access to all individual salary reimbursements. This access is provided for transparency; DOE will not approve individual salary actions (except as previously indicated).

I. The CO’s approval of individual compensation actions will be required only for the top contractor official (e.g., laboratory director/plant manager

H-11 or equivalent) and key personnel as indicated in (e)(3)(i)(F) above. The base salary reimbursement level for the top contractor official establishes the maximum allowable base salary reimbursement under the Contract.

Unusual circumstances may require a deviation for an individual on a case-by-case basis. Any such deviations must be approved by the CO.

II. Except as set forth in a workforce restructuring plan approved by DOE, Severance Pay is not payable to an employee under this Contract if the employee:

a. Voluntarily separates, resigns or retires from employment;

b. Is offered employment with a successor/replacement contractor;

c. Is offered employment with a parent or affiliated company;

d. Is discharged for cause; or

e. Is a Key Person identified in Section H.44 DOE-H-2070 Key

Personnel – Alternate I (Oct 2014) (Revised).

III. Service Credit for purposes of determining severance pay does not include any period of prior service for which severance pay has been previously paid through a DOE cost-reimbursement contract or Task

Order.

(f) Employees Benefits

(1) Incumbent Employees shall remain in their existing pension and/or retirement investment plans (or comparable successor plans if continuation of the existing plans is not practicable), pursuant to plan eligibility requirements and applicable law.

(2) Non Incumbent Employees shall receive a benefits package that provides for market-based retirement and medical benefit plans that are competitive with the industry from which the Contractor recruits its employees and in accordance with

Contract requirements.

(g) Pension and Other Benefit Programs

(1) No presumption of allowability will exist when the Contractor implements a new benefit plan or makes changes to existing benefit plans that increase costs or are contrary to Departmental policy or written instruction or until the CO makes a determination of cost allowability for reimbursement for new or changed benefit plans. Changes shall be in accordance with and pursuant to the terms and conditions of the contract. Advance notification, rather than approval, is required for changes that do not increase costs and are not contrary to Departmental policy or written instruction. To the extent that the Contractor has not submitted a new benefit plan or changes to existing benefit plans for approval on the basis that it does not increase costs and such new plan or change to existing plan does in fact increase costs, any increase in costs may be considered unreasonable and will likely be determined unallowable.

(2) Cost reimbursement for employee pension and other benefit programs sponsored by the Contractor will be based on the CO’s approval of Contractor actions pursuant to an approved “Employee Benefits Value Study” and an “Employee Benefits Cost

Survey Comparison” as described below.

H-12

(3) Unless otherwise stated, or as directed by the CO, the Contractor shall submit the studies required in paragraphs (i) and (ii) below. The studies shall be used by the

Contractor in calculating the cost of benefits under existing benefit plans.

An Employee Benefits Value (BenVal) Study Method using no less than 15 comparator organizations and an Employee Benefits Cost Survey comparison method shall be used in this evaluation to establish an appropriate comparison method. In addition, the Contractor shall submit updated studies to the CO for approval prior to the adoption of any change that increases the costs to a pension or other benefit plan:

(i) A BenVal, every two years for each benefit tier (e.g., group of employees receiving a benefit package based on date of hire), which is an actuarial study of the relative value (RV) of the benefits programs offered by the Contractor to employees measured against the RV of benefit programs offered by the CO approved comparator companies. To the extent that the value studies do not address post-retirement benefits other than pensions, the Contractor shall provide a separate cost and plan design data comparison for those benefits using external benchmarks derived from nationally recognized and CO-approved survey sources.

(ii) An Employee Benefits Cost Study Comparison annually for each benefit tier that analyzes the Contractor’s employee benefits cost for employees as a percent of payroll and compares it with the cost as a percent of payroll, including geographic factor adjustments, reported by the U.S. Department of Labor’s

Bureau of Labor Statistics or other Contracting Officer approved broad based national survey.

(A) When the net benefit value exceeds the comparator group by more than five percent, the Contractor shall submit a corrective action plan to the CO for approval, unless waived in writing by the CO.

(B) When the benefit costs as a percent of payroll exceeds the comparator group by more than five percent, and if required by CO, the Contractor shall submit an analysis of the specific plan costs that result in or contribute to the percent of payroll exceeding the costs of the comparator group and submit a corrective action plan if directed by the CO.

(C) Within two years, or longer period as agreed to between the Contractor and the CO, of the CO acceptance of the Contractor’s corrective action plan, the

Contractor shall align employee benefit programs with the benefit value and the cost as a percent of payroll in accordance with its corrective action plan.

(D) The Contractor may not terminate any benefit plan during the term of the

Contract without the prior approval of the CO in writing.

(E) Cost reimbursement for post-retirement benefits other than pensions (PRB) is contingent on DOE approved service eligibility requirements for PRBs that shall be based on a minimum period of continuous employment service not less than five (5) years under a DOE cost reimbursement contract(s) immediately prior to retirement. Unless required by Federal or state law, advance funding of PRBs is not allowable.

H-13

(F) Each contractor sponsoring a defined benefit pension plan and/or postretirement benefit plan will participate in the annual plan management process which includes written responses to a questionnaire regarding plan management, providing forecasted estimates of future reimbursements in connection with the plan(s) and participating in a conference call to discuss the contractor submission (see (i)(6) below for Pension Management Plan requirements).

(G) Each contractor will respond to data calls issued through iBenefits, or its successor system.

(h) Establishment and Maintenance of Pension Plans for which DOE Reimburses Costs

(1) Employees working for the Contractor shall only accrue credit for service under this

Contract after the end of contract transition.

(2) Except for Commingled Plans in existence as of the effective date of the Contract, any pension plan maintained by the Contractor for which DOE reimburses costs shall be maintained as a separate pension plan distinct from any other pension plan that provides credit for service not performed under a DOE cost-reimbursement contract.

When deemed appropriate by the CO, Commingled Plans shall be converted to

Separate Plans after the date of new contract award or the extension of a contract.

(i) Basic Requirements

The Contractor shall adhere to the requirements set forth below in the establishment and administration of pension plan and other benefit plans that are reimbursed by DOE pursuant to cost reimbursement contracts for management and operation of DOE facilities and pursuant to other cost reimbursement facilities contracts. Pension Plans include

Defined Benefit and Defined Contribution plans.

(1) The Contractor shall become a sponsor of the existing pension and other benefit plans

(or if continuation of the existing plans is not practicable, comparable successor plans), including other PRB plans, as applicable, with responsibility for management and administration of the plans. The Contractor shall be responsible for maintaining the qualified status of those plans consistent with the requirements of Employee

Retirement Income Security Act (ERISA) and the Internal Revenue Code (IRC).

The Contractor shall carry over the length of service credit and leave balances accrued as of the date of the Contractor’s assumption of Contract performance.

(2) Welfare Benefits Plan (WBP). The Contractor’s defined benefit and defined contribution pension plans shall be subjected to a limited-scope audit annually that satisfies the requirements of ERISA section 103, except that every third year the

Contractor must conduct a full-scope audit of defined benefit plan(s) satisfying

ERISA section 103. Alternatively, the Contractor may conduct a full-scope audit satisfying ERISA section 103 annually. In all cases, the Contractor must submit the audit results to the CO. In years in which a limited scope audit is conducted, the

Contractor must provide the CO with a copy of the qualified trustee or custodian’s certification regarding the investment information that provides the basis for the plan sponsor to satisfy reporting requirements under ERISA section 104.

H-14

While there is no requirement to submit a full scope audit for defined contribution plans, contractors are responsible for maintaining adequate controls for ensuring that defined contribution plan assets are correctly recorded and allocated to plan participants.

(3) For existing Commingled Plans, the Contractor shall maintain and provide annual

Separate Accounting of DOE liabilities and assets for a Separate Plan.

(4) For existing Commingled Plans, the Contractor shall be liable for any shortfall in the plan assets caused by funding or events unrelated to DOE contracts.

(5) The Contractor shall comply with the requirements of ERISA if applicable to the pension plan and any other applicable laws.

(6) The Pension Management Plan (PMP) shall include a discussion of the Contractor’s plans for management and administration of all pension plans consistent with the terms of this Contract. The PMP shall be submitted in the iBenefits system, or its successor system no later than January 31 of each applicable year. A full description of the necessary reporting will be provided in the annual management plan data request. Within 60 days after the date of the submission, appropriate Contractor representatives shall participate in a conference call to discuss the Contractor’s PMP submission and any other current plan issues.

(j) Reimbursement of Contractors for Contributions to Defined Benefit Pension Plans

(1) Contractors that sponsor single employer or multiple employer defined benefit pension plans will be reimbursed for the annual required minimum contributions under the ERISA, as amended by the Pension Protection Act (PPA) of 2006 and any other subsequent amendments. Reimbursement above the annual minimum required contribution will require prior approval of the CO. Minimum required contribution amounts will take into consideration all pre-funding balances and funding standard carryover balances. Early in the fiscal year but no later than the end of November, the Contractor requesting above the minimum, may submit/update a business case for funding above the minimum if preliminary approval is needed prior to the Pension

Management Plan process. The business case shall include a projection of the annual minimum required contribution and the proposed contribution above the minimum.

The submission of the business case will provide the opportunity for the Department to provide preliminary approval, within 30 days after contractor submission, pending receipt of final estimates, generally after January 1st of the calendar year. Final approval of funding will be communicated by the Head of Contracting Activity

(HCA) when discount rates are finalized and it is known whether there are any budget issues with the proposed contribution amount.

(2) Contractors that sponsor multi-employer Defined Benefit (DB) pension plans will be reimbursed for pension contributions in the amounts necessary to ensure that the plans are funded to meet the annual minimum requirement under ERISA, as amended by the PPA. However, reimbursement for pension contributions above the annual minimum contribution required under ERISA, as amended by the PPA, will require prior approval of the CO and will be considered on a case-by-case basis.

Reimbursement amounts will take into consideration all pre-funding balances and

H-15 funding standard carryover balances. Early in the fiscal year but no later than the end of November, the Contractor requesting above the minimum may submit/update a business case for funding above the minimum if preliminary approval is needed prior to the Pension Management Plan process. The business case shall include a projection of the annual minimum required contribution and the proposed contribution above the minimum. The submission of the business case will provide the opportunity for the Department to provide preliminary approval, within 30 days after contractor submission, pending receipt of final estimates, generally after January

1st of the calendar year. Final approval of funding will be communicated by the

HCA when discount rates are finalized and it is known whether there are any budget issues with the proposed contribution amount.

(k) Reporting Requirements

The following reports shall be submitted to DOE as soon as possible after the last day of the plan year by the contractor responsible for each designated pension plan funded by DOE, but no later than the dates specified below:

(1) Actuarial Valuation Reports. The annual actuarial valuation report for each

DOE-reimbursed pension plan and when a pension plan is commingled, the Contractor shall submit separate reports for DOE’s portion and the plan total by the due date for filing IRS Form 5500.

(2) Forms 5500. Copies of IRS Forms 5500 with Schedules for each DOE-funded pension plan, no later than that submitted to the IRS.

(3) Forms 5300. Copies of all forms in the 5300 series submitted to the IRS that document the establishment, amendment, termination, spin-off, or merger of a plan submitted to the IRS.

(l) Changes to Pension Plans

At least 60 days prior to the adoption of any changes to a pension plan, the Contractor shall submit the information required below, to the CO. The CO must approve plan changes that increase costs as part of a determination as to whether the costs are deemed allowable pursuant to FAR 31.205-6, as supplemented by DEAR 970.3102-05-6.

(1) For proposed changes to pension plans and pension plan funding, the Contractor shall provide the following to the CO:

(i) A copy of the current plan document (as conformed to show all prior plan amendments), with the proposed new amendment indicated in redline/strikeout;

(ii) An analysis of the impact of any proposed changes on actuarial accrued liabilities and costs;

(iii) Except in circumstances where the CO indicates that it is unnecessary, a legal explanation of the proposed changes from the counsel used by the plan for purposes of compliance with all legal requirements applicable to private sector defined benefit pension plans;

(iv) The Summary Plan Description; and

(v) Any such additional information as requested by the CO.

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(2) Contractors shall submit new benefit plans and changes to plan design or funding methodology with justification to the CO for approval, as applicable (see (k)(1) above).

The justification must:

(i) Demonstrate the effect of the plan changes on the contract net benefit value or percent of payroll benefit costs;

(ii) Provide the dollar estimate of savings or costs; and

(iii) Provide the basis of determining the estimated savings or cost.

(m) Terminating Operations

When operations at a designated DOE facility are terminated and no further work is to occur under the prime contract, the following apply:

(1) No further benefits for service shall accrue.

(2) The Contractor shall provide a determination statement in its settlement proposal, defining and identifying all liabilities and assets attributable to the DOE contract.

(3) The Contractor shall base its pension liabilities attributable to DOE contract work on the market value of annuities or lump sum payments, or dispose of such liabilities through a competitive purchase of annuities or lump sum payouts.

(4) Assets shall be determined using the “accrual-basis market value” on the date of termination of operations.

(5) DOE and the Contractor(s) shall establish an effective date for spin-off or plan termination on the same day as the Contractor notifies the IRS of the spin-off; or

(6) Plan termination, all plan assets assigned to a spun-off or terminating plan shall be placed in a low-risk liability matching portfolio until the successor trustee, or an insurance company, is able to assume stewardship of those assets.

(n) Terminating Plans

(1) DOE Contractors shall not terminate any pension plan (Commingled or site specific) without requesting Departmental approval at least 60 days prior to the scheduled date of plan termination.

(2) To the extent possible, the Contractor shall satisfy plan liabilities to plan participants by the purchase of annuities through competitive bidding on the open annuity market or lump sum payouts. The Contractor shall apply the assumptions and procedures of the

Pension Benefit Guaranty Corporation.

(3) Funds to be paid or transferred to any party as a result of settlements relating to pension plan termination or reassignment shall accrue interest from the effective date of termination or reassignment until the date of payment or transfer.

(4) If ERISA or IRC rules prevent a full transfer of excess DOE reimbursed assets from the terminated plan, the Contractor shall pay any deficiency directly to DOE according to a schedule of payments to be negotiated by the parties.

(5) On or before the same day as the Contractor notifies the IRS of the spinoff or plan termination, all plan assets assigned to a spun-off or terminating plan shall be placed in a low-risk liability matching portfolio until the successor trustee, or an insurance company, is able to assume stewardship of those assets.

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(6) DOE liability to a Commingled pension plan shall not exceed that portion which corresponds to DOE contract service. The DOE shall have no other liability to the plan, to the plan sponsor, or to the plan participants.

(7) After all liabilities of the plan are satisfied, the Contractor shall return to DOE an amount equaling the asset reversion from the plan termination and any earnings which accrue on that amount because of a delay in the payment to DOE. Such amount and such earnings shall be subject to DOE audit. To affect the purposes of this paragraph, DOE and the Contractor may stipulate to a schedule of payments.

(o) Special Programs

Contractors must advise DOE and receive prior approval for each early-out program, window benefit, disability program, plan-loan feature, employee contribution refund, asset reversion, or incidental benefit.

(p) Definitions

(1) Commingled Plans. Cover employees from the Contractor’s private operations and its

DOE contract work.

(2) Current Liability. The sum of all plan liabilities to employees and their beneficiaries.

Current liability includes only benefits accrued to the date of valuation. This liability is commonly expressed as a present value.

(3) Defined Benefit Pension Plan. Provides a specific benefit at retirement that is determined pursuant to the formula in the pension plan document.

(4) Defined Contribution Pension Plan. Provides benefits to each participant based on the amount held in the participant’s account. Funds in the account may be comprised of employer contributions, employee contributions, investment returns on behalf of that plan participant and/or other amounts credited to the participant’s account.

(5) Designated Contract. For purposes of this clause, a contract (other than a prime cost reimbursement contract for management and operation of a DOE facility) for which the

Head of the Departmental Contracting Activity determines that advance pension understandings are necessary or where there is a continuing Departmental obligation to the pension plan.

(6) Pension Fund. The portfolio of investments and cash provided by employer and employee contributions and investment returns. A pension fund exists to defray pension plan benefit outlays and (at the option of the plan sponsor) the administrative expenses of the plan.

(7) Separate Accounting. Account records established and maintained within a

Commingled plan for assets and liabilities attributable to DOE contract service.

NOTE: The assets so represented are not for the exclusive benefit of any one group of plan participants.

(8) Separate Plan. Must satisfy IRC Sec. 414(l) definition of a single plan, designate assets for the exclusive benefit of employees under DOE contract, exist under a separate plan document (having its own Department of Labor plan number) that is distinct from corporate plan documents and identify the Contractor as the plan sponsor.

(9) Spun-off Plan. A new plan which satisfies IRC Reg. 1.414 (l)-1 requirements for a single plan and which is created by separating assets and liabilities from a larger original

H-18 plan. The funding level of each individual participant’s benefits shall be no less than before the event, when calculated on a “plan termination basis.”

H.6 SPECIAL PROVISIONS APPLICABLE TO WORKFORCE TRANSITION AND

EMPLOYEE COMPENSATION: PAY AND BENEFITS

(a) Service Credit. The Contractor shall provide pension and other benefit plans to Incumbent

Employees and all other employees hired by the Contractor and service credit for leave as set forth below:

(1) Service Credit for Leave. For Incumbent Employees hired by the Contractor as set forth in the Section H Clause entitled, Definitions, the Contractor shall carry over the length of service credit for purposes of determining rates of accruing leave for these employees as required by and consistent with applicable law.

(2) Service Credit for Fringe Benefits Other Than Leave. Service credit for all individuals hired by the Contractor shall be applied consistent with any applicable law, and the terms of the applicable benefit plan(s). Service credit for purposes of severance pay is subject to

H Clause entitled, DOE-H-2001 Employee Compensation: Pay and Benefits (Oct 2014).

(b) Allowable Salary for Key Personnel, if required: Within 20 days after the effective date of the Transition Task Order, or as identified by the CO, the Contractor shall submit EM proposed allowable base salaries to the CO for each key personnel position listed in the

Contract for a determination of cost allowability for reimbursement under the Contract. To support a reasonableness determination, the Contractor shall also provide compensation market survey data to support/justify the requested salary and any other information as requested by the CO.

H.7 WORKFORCE TRANSITION AND BENEFITS TRANSITION: PLANS AND

TIMEFRAMES

(A) Workforce Transition Plan. The Contractor shall submit a Workforce Transition Plan

(WF Transition Plan) for CO approval, describing in detail the Contractor’s plans and procedures as to how the Contractor will comply with the hiring preferences set forth in

Clause H.4, Workforce Transition and Employee Hiring Preferences Including through

Period of Performance, and Section I, DEAR 952.226-74, Displaced Employee Hiring

Preference. The WF Transition Plan shall also detail the Contractor’s plan for incorporating, if applicable, multiple unions with separate bargaining agreements.

Notwithstanding timeframes identified elsewhere in the Contract, the Contractor shall perform the following activities in the specified timeframes:

(1) Within 10 days after the effective date of the Transition Task Order, the

Contractor shall:

(a) Provide the CO with a list of Contractor personnel who will be responsible for transitioning the employees of the Incumbent Contractor and for development of the transition agreements, including specifically the personnel responsible for ensuring that the Contractor complies with the National Labor Relations Act and

Clause H.9, Labor Relations, and contact information for the above personnel;

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(b) Submit to the CO a description of any and all transition agreements that it intends to enter into with an Incumbent Contractor to ensure compliance with Clause H.4, Workforce Transition and Employee Hiring Preferences Including through Period of Performance, during the Task Order Transition Period;

(c) Establish and submit to the CO a draft communication plan detailing the communication the Contractor and its subcontractors will engage in with their prospective Incumbent Employees, and any labor organizations representing those employees, regarding implementation of the requirements set forth in Clauses H.4 entitled, Workforce Transition and Employee Hiring Preferences Including through Period of Performance, and H.5, Employee Compensation: Pay and

Benefits.

(d) Submit to the Contracting Officer a description of the process for regularly obtaining updated information from the Incumbent Contractor regarding the

Incumbent Employees throughout the Transition Period.

(2) Within 15 days after the effective date of the Transition Task Order, the

Contractor shall:

(a) Submit to the CO copies of the draft WF Transition Plan for the Contractor and its first and second tier subcontractors, including processes and procedures regarding how the Contractor will implement and ensure compliance with the hiring preferences set forth in Clause H.4, Workforce Transition and Employee Hiring

Preferences Including through Period of Performance, and with the requirements of Clause H.9, Labor Relations, as applicable.

(b) Establish and provide a copy to the CO of its final written communication plan regarding:

(i) Implementation of the hiring preferences in Clause H.4, Workforce Transition and Employee Hiring Preferences Including through Period of Performance;

and

(ii)The communication process among DOE, site tenants, and, if applicable, labor organizations representing Incumbent Employees.

(3) Within 30 days after effective date of the Transition Task Order, the Contractor shall provide to the CO a copy of the final WF Transition described in paragraph (A) above.

(4) Within 60 days after effective date of the Transition Task Order, the Contractor shall provide to the CO copies of the final transition agreements described in paragraph

(A)(1)(b) above.

(5) The Contractor shall submit reports to the CO regarding the Contractor’s and its subcontractors’ implementation of the hiring preferences required by Clause H.4, Workforce Transition and Employee Hiring Preferences Including through Period of

Performance, in accordance with the timeframes set forth below. These reports shall include the following information: employee, hire date or anticipated hire dates, and, where applicable, the Incumbent Contractor or subcontractor that employed the employee and the Contractor or subcontractor that hired the employee.

(a) During the Transition Period, such reports shall be provided to the CO on a weekly basis; or

(b) On a less frequent basis, if requested by the CO.

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(6) The Contractor shall implement the transition activities as set forth in the approved transition plan and such other transition activities as may be authorized or directed by the CO.

(B) Benefits Transition Plan. The Contractor shall submit a draft Benefits Transition

Plan for Contracting Officer approval, within 20 days after effective date of the

Transition Task Order describing in detail the Contractor’s plans and procedures as to how the Contractor will comply with Clause H.5, Employee Compensation:

Pay and Benefits, and this Paragraph (B). The Contractor shall provide a final

Benefits Transition Plan to the Contracting Officer within 30 days after effective date of the Transition Task Order. All transitions of the existing pension(s) plans and other existing benefit plans, as well as establishment of any new plans, shall be completed by the end of the Contract Transition Period.

(1) The Contractor shall perform the following activities involving benefit transition within the timeframes specified below.

(A) Within 10 days after effective date of the Transition Task Order, the

Contractor shall:

(i) Provide the CO with a list of Contractor personnel who will be responsible for the transition of existing benefit plans, and, if needed, development of new benefit plans, including specifically the personnel responsible for ensuring that the Contractor develops and implements a defined benefit pension plan and the defined contribution pension plans and contact information for the above personnel;

(ii) Request the Incumbent Contractors to provide information and documents necessary for the Contractor to adhere to the requirements set forth in this

Contract pertaining to sponsoring existing benefits plans and the establishment of any new benefits plans, including, if needed, the transfer of assets from existing defined pension plan…