DRAFT N00024-24-R-6231_STEB_Solicitation.docx

N0002424R6231

Section B - Supplies or Services and Prices

CLIN Number 0001

IDIQ Engineering Support

CPFF

Min Fee: $0.00 Max Fee: Not to Exceed 10% Share Ratio for above and below target shall be 50/50 See Notes A, D, & F

FOB: Origin (Shipping Point)

PSC CD: 5865

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0002

IDIQ Other Direct Costs (ODCs)

COST

ODC for incidental material/travel for CLIN 0001 Total Cost Ceiling Value: $800,000 See Notes B & F

ESTIMATED COST

CLIN Number 0003

Each

IDIQ Production Hardware

CPIF

Min Fee: $0.00 Max Fee: Not to Exceed 10% Target Cost Ceiling Value: $61,350,000 Share Ratio for above and below target shall be 50/50 See Notes C, D & F

NOTE: The requirements in DFARS 252.211-7003, Item Identification and Valuation, are applicable for this line item. The contractor shall provide DoD unique identification or a DoD recognized unique identification equivalent.

TARGET COST

TARGET FEE

TOTAL TGT COST + FEE

MINIMUM FEE

MAXIMUM FEE

SHARE RATIO ABOVE TARGET

SHARE RATIO BELOW TARGET

CLIN Number 0004

Each

IDIQ Production Hardware

FFP

Cost Ceiling Value (this does not include profit): $13,940,000 Profit: Not To Exceed 10% See Notes C, D & F

NOTE: The requirements in DFARS 252.211-7003, Item Identification and Valuation, are applicable for this line item. The contractor shall provide DoD unique identification or a DoD recognized unique identification equivalent.

NET AMT

CLIN Number 0005

Data

FFP

Not Separately Priced (NSP) - Data for CLINs 0001 - 0004

FOB: Destination

NET AMT

CLIN Number 0006

FFP

Buy-Out See Note E SOW Paragraph 3.1.5

FOB: Destination

NET AMT

SECTION B NOTES

NOTE A

The Hours shown in Contract Line Item Number (CLIN) 0001 are notional ceiling values. The Government will issue Delivery Orders to fund these items as needed during contract performance in accordance with the Note D CLIN 0001 composite rates. The Government will issue Technical Instructions (TIs) with the Delivery Orders in accordance with Section C text, NAVSEA C-242-H003, TECHNICAL INSTRUCTIONS. The Contractor shall not perform any effort under CLIN 0001 until and unless tasked by the Government. However, during execution of this Indefinite Delivery Indefinite Quantity (IDIQ) if the Government determines more hours are needed than the number of hours listed in Section B for CLIN 0001 the Government may utilize the available ceiling up to the Maximum Ceiling Amount identified in Note F and utilize the composite rates in Note D.

NOTE B

The Government will issue Delivery Orders to fund this item as needed during contract performance. Incidental material and travel costs incurred by the Contractor during the performance of this contract will be reimbursed to the Contractor at cost only (no fee shall be paid on this line item). The Contractor shall receive authorization to travel via Technical Instruction (TI) that will be issued along with the Delivery Order by Contracting Officer Representative (COR) and the Contracting Officer.

NOTE C

Periodically, Delivery Orders may be placed against the order CLINs 0003 and 0004 and the cost base therefore shall be negotiated by the parties to the contract prior to establishing a price for each Delivery Order. The Delivery Orders fee and profit percentages shall be proposed in accordance with the established percentages in Note E.

NOTE D

Offerors shall propose a fixed fee for CLIN 0001. The fixed fee percentage for CLIN 0001 is hereby established to be ___% (to be filled in by Offeror but shall NTE ten percent (10%)) and shall be multiplied by the target cost (less FCCOM) at the establishment of each Delivery Order. The share ratio for the CPFF structure is 50/50 (50% Government, 50% Contractor) for both overruns and underruns from target.

Offerors shall propose a target fee and maximum fee for CLIN 0003. The target fee percentage for CLIN 0003 is hereby established to be ___% (to be filled in by Offeror but shall not exceed (NTE) eight-percent (8%)) and the maximum fee percentage is ___% (to be filled in by Offeror but shall NTE ten-percent (10%)) and shall be multiplied by the target cost (less FCCOM) at the establishment of each Delivery Order. The minimum fee is hereby established to zero percent (0%). The share ratio for the CPIF portion of the fee structure is 50/50 (50% Government, 50% Contractor) for both underruns and overruns from target.

Offerors shall propose profit for CLIN 0004. The profit percentage for CLIN 0004 is hereby established to be ___% (to be filled in by Offeror but shall NTE ten-percent 10%)) and shall be multiplied by the cost base (less FCCOM) at the establishment of each Delivery Order.

The Offeror shall divide the proposed estimated cost and the proposed fixed fee amount by the associated number of hours and insert the results rounded to the nearest penny in the appropriate columns in the table below. Estimated hourly rate (composite) rate is determined by including all allowable costs (including COM, if applicable). Fee/hour is calculated on cost less COM (if applicable). If COM is proposed necessary columns may be added. For purposes of the “Payment of Fee(s) (Level of Effort – Alternate I)” clause the hourly fee rate is as follows.

Fee Schedule for Level of Effort (LOE) Items

(FF)

Total Fixed Fee $ (Hours x FF) Estimated Cost (Hours x Rate)

COMPOSITE RATE TABLE FOR CLIN 0001

Hourly Rate

FF

Hourly Rate Fullly Burdened Hourly Rate (TC+FF)

Year 1 (PoP*: 12 Months after Contract Award)

Year 2 (PoP: 12 Months after Year 1)

Year 3 (PoP: 12 Months after Year 2)

Year 4 (PoP: 12 Months after Year 3)

Year 5 (PoP: 12 Months after Year 4)

*PoP: Period of Performance

* The Target Cost (TC) Hourly Rate amount shown above includes Cost of Money, however, the Fixed Fee (TF) Hourly Rate calculation excludes Cost of Money.

The Contractor shall fill in the table above with its proposal. The Government shall have the unilateral right to issue Delivery Orders using the hours with CLIN 0001. In addition, the Government will utilize the composite rate table rates during the applicable time period when issuing Delivery Orders for efforts under CLIN 0001. This table will be included in the contract. The rate provided in the table above is a composite rate inclusive of all labor categories for each year of the contract.

NOTE E

Applicable to CLIN 0006 – Technical Data / Upgrade License Rights Buy-Out - The Offeror shall fill this in with their proposed cumulative price for those rights which the Offeror is willing to sell in accordance with Section M Section 3.5 (Factor 5 – Evaluated Cost/Price). The cumulative buy-out price is a summation of the Section J Attachments 6B, 7B, 8B, and 9B.

NOTE F

The CLINs 0001, 0002, 0003, and 0004 in Section B have notional ceiling values. The sum of the CLINs notional ceiling value(s) in section B can be used for any of the contract type ordering CLINs for all Delivery Orders issued against this IDIQ contract but shall not exceed the maximum amount stated in the following table. The Government will issue Delivery Orders under this IDIQ and those Delivery Orders will have its own Statement of Work (SOW) requirements pertaining specifically to that Delivery Order that aligns with Section C.

MAXIMUM AMOUNT

Total Contract Ceiling (if all options are exercised)

* The Contractor shall fill in this table with its proposal

MINIMUM GUARANTEE

The Government will issue a Delivery Order in the amount of $50,000 on the award date of the IDIQ to start development efforts for STEB and that Delivery Order will satisfy the minimum Guarantee. This minimum guarantee requirement may be met with a level of effort DO at award.

DELIVERY ORDER MINIMUM/MAXIMUM QUANTITY AND ORDER VALUE

The minimum quantity and order value for each Delivery Order issued shall not be less than the minimum quantity and order value stated in the following table. The maximum quantity and order value for each Delivery Order issued shall not exceed the maximum quantity and order value stated in the following table.

$50,000

To be inserted at Award

CLAUSES INCORPORATED BY FULL TEXT

B-215-H002 REFUNDS (SPARES AND SUPPORT EQUIPMENT) (NAVSEA) (OCT 2018)

(a) In the event that the price of a spare part or item of support equipment delivered under this contract significantly exceeds its intrinsic value, the Contractor agrees to refund the difference. Refunds will not be made to recoup the amount of cost decreases that occur over time due to productivity gains (excluding economic purchase quantity considerations) or changes in market conditions.

(b) For purposes of this requirement, the intrinsic value of an item is defined as follows:

(1) If the item is one which is sold or is substantially similar or functionally equivalent to one that is sold in substantial quantities to the general public, intrinsic value is the established catalog or market price, plus the value of any unique requirements, including delivery terms, inspection, packaging, or labeling.

(2) If there is no comparable item sold in substantial quantities to the general public, intrinsic value is defined as the price an individual would expect to pay for the item based upon an economic purchase quantity as defined in FAR 52.207-4, plus the value of any unique requirements, including delivery terms, inspection, packaging or labeling.

(c) At any time up to two years after delivery of a spare part or item of support equipment, the Contracting Officer may notify the Contractor that based on all information available at the time of the notice, the price of the part or item apparently exceeds its intrinsic value.

(d) If notified in accordance with paragraph (c) above, the Contractor agrees to enter into good faith negotiations with the Government to determine if, and in what amount, the Government is entitled to a refund.

(e) If agreement pursuant to paragraph (d) above cannot be reached, and the Navy's return of the new or unused item to the Contractor is practical, the Navy, subject to the Contractor's agreement, may elect to return the item to the Contractor. Upon return of the item to its original point of Government acceptance, the Contractor shall refund in full the price paid. If no agreement pursuant to paragraph (d) above is reached, and return of the item by the Navy is impractical, the Contracting Officer may, with the approval of the Head of the Contracting Activity, issue a Contracting Officer's final decision on the matter, subject to Contractor appeal as provided in the "Disputes" clause (FAR 52.233-1).

(f) The Contractor shall make refunds, as required under this requirement, in accordance with instructions from the Contracting Officer.

(g) The Contractor shall not be liable for a refund if the Contractor advised the Contracting Officer in a timely manner that the price it would propose for a spare part or item of support equipment exceeded its intrinsic value, and with such advice, specified the estimated proposed price, the estimated intrinsic value and known alternative sources or item, if any, that can meet the requirement.

(h) This requirement does not apply to any spare parts or items of support equipment whose price is determined through adequate price competition. This requirement also does not apply to any spare part or item of support equipment if the Contractor submitted, and certified the currency, accuracy and completeness of, cost or pricing data applicable to the item.

(End of text)

B-227-H001 PROVISIONING TECHNICAL DOCUMENTATION – WITHHOLDING OF PAYMENT (NAVSEA) (OCT 2018)

(a) For the purpose of paragraph (c) of the "Progress Payments" clause of this contract, if included, the requirement that the Contractor develop and deliver Provisioning Technical Documentation (PTD) is considered to be a "material requirement of this contract," and Contractor failure to make adequate progress in the development of PTD, or to deliver acceptable PTD on a timely basis, may result in reduction or suspension of Progress Payments as provided in said paragraph.

(b) The PTD is considered to be a part of the "Technical Data" specified to be delivered under this contract for the purposes of the "Technical Data--Withholding of Payment" (DFARS 252.227-7030) clause. The terms and conditions of the clause entitled "Limitation On Withholding of Payments (FAR 52.232-9), if included in this contract, shall not apply to withholding of payment for failure to make timely delivery of the PTD or delivery of deficient PTD.

B-231-H001 TRAVEL COSTS (NAVSEA) (OCT 2018)

(a) Except as otherwise provided herein, the Contractor shall be reimbursed for its actual travel costs in accordance with FAR 31.205-46. The travel costs to be reimbursed shall be those costs for which the Contractor has maintained appropriate documentation and which have been determined to be allowable, allocable, and reasonable by the Procuring Contracting Officer, Administrative Contracting Officer, or their duly authorized representative.

(b) Reimbursable travel costs include only that travel performed from the Contractor's facility to the worksite, in and around the worksite, and from the worksite to the Contractor's facility.

(c) Relocation costs and travel costs incidental to relocation are allowable to the extent provided in FAR 31.205-35; however, Procuring Contracting Officer approval shall be required prior to incurring relocation expenses and travel costs incidental to relocation.

(d) The Contractor shall not be reimbursed for the following daily local travel costs:

(i) travel at U.S. Military Installations where Government transportation is available,

(ii) travel performed for personal convenience/errands, including commuting to and from work, and

(iii) travel costs incurred in the replacement of personnel when such replacement is accomplished for the Contractor's or employee's convenience.

B-232-H005 PAYMENTS OF FEE(S) (LEVEL OF EFFORT)--ALTERNATE I (NAVSEA) (OCT 2018)

(a) For purposes of this contract, "fee" means "target fee" in cost-plus-incentive-fee type contracts, "base fee" in cost-plus-award-fee type contracts, or "fixed fee" in cost-plus-fixed-fee type contracts.

(b) The Government shall make payments to the Contractor, subject to and per the clause in this contract entitled "Fixed Fee" (FAR 52.216-8) or "Incentive Fee", (FAR 52.216-10), as applicable. Such payments shall be submitted by and payable to the Contractor pursuant to the clause of this contract entitled "Allowable Cost and Payment" (FAR 52.216-7), subject to the withholding terms and conditions of the "Fixed Fee" or "Incentive Fee" clause, as applicable. Fee paid per hour shall be based on total fee dollars divided by total hours to be provided. Total fee(s) paid to the Contractor shall not exceed the fee amount(s) set forth in this contract. In no event shall the Government be required to pay the Contractor any amount in excess of the funds obligated under this contract.

CLAUSES INCORPORATED BY FULL TEXT

B-232-H006 LIMITATION OF COST OR LIMITATION OF FUNDS CLARIFICATION (NAVSEA) (OCT 2018)

The clause entitled "Limitation of Cost" (FAR 52.232-20) or "Limitation of Funds" (FAR 52.232-22), as appropriate, shall apply separately and independently to each separately identified estimated cost.

Section C - Descriptions and Specifications

STATEMENT OF WORK

1.0 SCOPE

This Statement of Work (SOW) defines the efforts required to develop and deliver the Submarine Tethered Expendable Buoy (STEB) system to the fleet. Efforts hereunder include program management, engineering, systems engineering, software development, logistics and supportability engineering, configuration management, hardware and software integration (including material procurement or fabrication, and integration of Government-Furnished Material (GFM), as applicable), testing, evaluation, and installation. The system is designated for all submarine classes. Production units shall be built for VIRGINIA, COLUMBIA, LOS ANGELES, and SEAWOLF Class submarines.

The work shall be performed as specified in the Contract Schedule and as identified in individual Delivery Orders and Technical Instructions, as applicable. This procurement includes the following:

· Design, develop, test, and integrate STEB for installation on new construction and modernization submarines.

· Provide “end-to-end” system engineering development, software development, integration, testing, environmental qualification, and life cycle support for the STEB system.

· Provide production capabilities for the timely production of STEB systems for delivery to new construction, modernization, alteration, and installation teams.

· The initial delivery of the STEB system shall include all baseline engineering documentation, product lists, logistics support products, curriculum and support materials, spares, and INCO (installation and checkout) as necessary to provide the “as developed” product support, including Contractor personnel to provide training onboard the submarines.

· Develop all baseline engineering level 3 documentation, product lists, and logistics support products.

· Define and depict the optimum balance of simulation and stimulation equipment needed to execute subsystem level testing and integration.

· Define the interface baseline, including all requirements necessary, to connect the STEB system inboard the submarine and interface with the Internal Countermeasure Launcher (3” Launcher).

· Participate in payload integration efforts, including technology refresh/insertion planning and validation testing and integrations. Transition new technologies and capabilities to production and integrate into future STEB baselines.

· Develop source material for Logistics Data, Technical Data Packages, and Interactive Electronic Technical Manual (IETM)

· Support TEMPALT development requirements per NAVSEA S9070 Technical Requirements Manual for Temporary Submarine Alteration ACN-5.

· Support installation, field integration, repair, and refurbishment efforts as required.

· Procure spares/repair parts, special support equipment, installation and deployment/insertion kits, pre-production/production hardware, engineering change kits, and associated hardware including spares.

· Include cybersecurity considerations in system design and engineering and correctly implement cybersecurity measures and design characteristics in the STEB system. Provide support to the Government for all tasks required to achieve cyber security certifications and obtain Authority to Operate for all installed systems.

1.1. Navy Organization

Program Executive Officer, Undersea Warfare System (PEO UWS) is the acquisition executive for this procurement. The Submarine Electromagnetic Systems Program Office (PMS435) is responsible for the acquisition, development, production, fleet introduction, and support of the STEB system for VIRGINIA, COLUMBIA, LOS ANGELES, and SEAWOLF Class submarines and appropriate Joint Program Office efforts.

1.2. Program Background

The STEB program is an Acquisition Category (ACAT) IV and is not a Major Defense Acquisition Program (MDAP). U.S. Submarine Fleet Intelligence, Surveillance and Reconnaissance (ISR) operations rely on both submarine stealth and electromagnetic collection capabilities. Proliferation of periscope detection radars threaten to degrade or deny that mission. The STEB system would reduce the risk of counter detection by allowing the submarine to stay submerged while the system provides situational awareness, communications, and ISR data from the surface.

The STEB system shall have the flexibility to address rapid shifts in the threat environment, budget, capability requirements, and technology. The system design shall be consistent with an architecture emphasizing the concepts of modularity, flexibility, portability, and functional independence. This will allow the system to be expandable, upgradeable, and modular to incorporate future antenna and electronic payload designs without requiring redesign.

1.3. The Collaborative Development Environment

A collaborative development environment among a consortium of the Contractor, Navy Program Office(s), Navy laboratories, academia, and other industry partners is necessary to ensure continued success of the STEB program. Specifically, during the development of the STEB system, the Contractor shall collaborate with PMS435, ASSEP, IWS5, the SWFTS Systems Engineering (SE) Integrated Product Team (IPT), the Technology Insertion IPT (TI-IPT), and other organizations as necessary. STEB technologies and developments include procurement of hardware, systems engineering, software development, testing, supportability, logistics products, training, program reviews, design reviews, management of baselines, and delivery, acceptance and field installation across all platforms.

1.4. Open Systems Architecture Approach

Naval Open Architecture is the confluence of business and technical practices yielding modular, interoperable systems that adhere to open standards with published interfaces. The STEB system shall have an open system architecture and corresponding components. As part of this contract, the Contractor shall define, document, and follow an open systems approach for using modular design, standards-based interfaces, and widely-supported consensus-based standards. The Contractor shall develop, maintain, and use an Open System Management Plan to support this approach and shall demonstrate compliance with open systems architecture during all design reviews.

As part of an open system architecture approach, the Contractor shall identify to the Government all Commercial-Off-the-Shelf/Non-developmental Item (COTS/NDI) components as defined in IEEE STD 610.12-1990, their functionality and proposed use in the system, and provide copies of license agreements related to the use of these components for Government approval prior to use.

In addition, the Contractor shall provide the Government (and/or Government support contractors) electronic access to its integrated digital (or development) environment (IDE) and the ability to download artifacts throughout the term of the contract. The Government reserves the right to witness all Contractor efforts to accomplish the SOW requirements and maintains the right to comment on processes. The Contractor shall provide 30 calendar days’ advance notice of any events, tests, or activity that the Government identifies as a specific item of interest.

2.0 APPLICABLE DOCUMENTS

The Contractor shall always use the latest revision of the following specifications, standards, handbooks, and reference documents if marked mandatory in the table below. If a conflict exists between the stated and referenced requirements, the order of precedence shall be in accordance with FAR Clause 52.215-8.

2.1 Incorporation by Reference

All specifications, exhibits, drawings or other documents which are referenced in this contract, but are not attached hereto, are hereby incorporated by reference.

2.2 Issue of Documents

The following documents listed in the Department of Defense Index of Specification and Standards (DODISS) form a part of this SOW to the extent specified herein.

2.2.1 Government Documents

2.2.2 Non-Government Documents

3.0 GENERAL REQUIREMENTS

The work required by this contract shall be performed in accordance with the System Performance Specification for the Submarine Tethered Expendable Buoy (STEB) System (Attachment 2) and this SOW. Unless stated otherwise, the work required by this section 3.0 of the SOW is applicable to all requirements (engineering support and production) under this contract. This SOW contains the requirements applicable to the hardware and software STEB System. These requirements include the design, development, testing, systems and production engineering, engineering services, field engineering services, and system support for the STEB lifecycle.

There are specific circumstances during phases of this contract including design, development, integration and testing that will require personnel to be cleared for access to classified information. The Contractor will need to support this SECRET classification level configuration in all phases of this contract, design, development, integration, test, production, installation, and field support.

3.0.1 Waiver of Requirements

Notwithstanding the requirements of any of the clauses or provisions of this contract, if the Contractor discovers during performance of the work under this contract that the requirements of any of the clauses or provisions are in conflict with security instructions issued to the Contractor by the Contracting Officer, the Contractor shall notify the Contracting Officer of the conflict. At such time, the Contracting Officer shall either (i) modify or rescind the conflicting security requirements or (ii) issue written instructions to the Contractor regarding compliance with the requirements of the conflicting clauses or provisions. Any waiver of compliance with the clauses or provisions of this contract issued by the Contracting Officer shall be in writing.

3.0.2 Security Clearance Requirements

In performance on this contract, the Contractor will:

· Require to maintain a level of safeguarding for classified information, material, and data at the SECRET security clearance level.

· Require COMSEC to accommodate the use of secure communications and will be required to maintain a COMSEC account for SIPRNET equipment.

· Require to have access to Controlled Unclassified Information (CUI) with developers and integrators,

· Receive, store, and generate classified information. Techniques to modernize this equipment, testing of this equipment, email/written reports, and overall system performance could be classified. In this capacity, the contractor will generate and be in receipt of classified material.

· Fabricate, modify, or store classified hardware: The contractor will fabricate and modify classified components in support of this contract and then store this hardware until completion of all requirements.

· Adhere to all security requirements imposed by the latest revised Contract Security Classification Specification form DD254. Contractor key personnel working under this contract shall maintain at least an active SECRET security clearance.

3.0.3 Location of Works

The preponderance of activity under this contract is expected to take place at the prime and sub-contractor (if applicable) facilities as reflected in the DD-254.

3.0.4 Level of Safeguarding for Classified Information / Material Certain prime and sub-contractor facilities (if applicable), as reflected in the DD-254, shall safeguard information and material up to Secret in support of the STEB system’s Program.

3.1 Contract Line Item Number (CLIN) Descriptions

3.1.1 CLIN 0001: Engineering Support

The Contractor shall provide services of qualified engineers to meet the requirements of the contract and achieve the System Performance Specification for the Submarine Tethered Expendable Buoy (STEB) System (Attachment 2) and this SOW. Engineering support will be issued by Delivery Order and may be further specified in accordance with Section C text, NAVSEA C-242-H003, TECHNICAL INSTRUCTIONS. The general objective of these efforts shall be the common development, modernization, maintenance and technology upgrade of the STEB system, TEMPALT, and SHIPALT which meet the performance requirements of the various U.S. Navy platform missions, where commonality offers the greatest cost and technical benefits.

The Contractor shall provide qualified engineers to perform engineering technical services tasks related to STEB development, upgrade, or installation for all platform variants (VIRGINIA, COLUMBIA, LOS ANGELES, SEAWOLF Class submarines). These services shall include, but are not limited to, software/hardware design, development, modification, integration and checkout, test and evaluation, training, repairs, installation and checkout, inspection, technical issues resolution, trade studies, engineering change development, documentation, logistics analyses, and troubleshooting. Technical support shall include software and hardware enhancements using emerging technologies, when feasible.

The Contractor shall provide qualified electrical/electronic, mechanical and software engineers and technicians where required for field engineering or maintenance repair and sustainment to support the fleet. Field engineering and maintenance support shall include on-site assistance to submarine platforms for STEB troubleshooting and repair. The Contractor shall provide engineering and technical services related to platform variant delivery, installation, and maintenance for VIRGINIA, COLUMBIA, LOS ANGELES, SEAWOLF Class submarines.

The Contractor shall provide scientists or engineers to conduct studies and analyses of the STEB Performance. The Contractor shall document the results of special studies and analyses.

3.1.2 CLIN 0002: Incidental Material and Travel Support for Engineering Support The Contractor shall provide incidental material or travel to meet the requirements of the contract and achieve the System Performance Specification for the Submarine Tethered Expendable Buoy (STEB) System (Attachment 2) and this SOW. The Contractor shall provide incidental materials and travel necessary for the completion of Delivery Orders (DOs) issued in accordance with the Section C text, NAVSEA C-242-H003, TECHNICAL INSTRUCTIONS within the Government’s estimated amount. The Contractor shall be reimbursed for actual, allowable, and allocable costs less any discounts taken, plus applicable burdens, incurred in the performance of these items.

In order to minimize travel costs, the Contractor and its subcontractors at all tiers shall comply with DoD Joint Travel Regulations (JTR) in conducting travel of employees. In any instance in which recurring travel to one location for more than 180 days is planned for personnel at any tier, the Contractor shall obtain prior written approval from the Contracting Officer’s Representative (COR), and the request for approval shall include a cost comparison addressing permanent change of station and long-term temporary duty assignment (TDY).

(a) Travel time necessary for performance of such services shall be included in computing the man days of service. When services are performed at sea and the engineer(s) is unable to leave the vessel when work is completed, the remaining time aboard the vessel shall be considered travel time for purposes of computing the man days of services. However, the Contractor shall be paid for no more than one man day of service per calendar day for each engineer while in travel status.

(b) Passports, visas, inoculations and other medical requirements necessary for performance of engineering services shall be at the sole responsibility and expense of the Contractor.

3.1.3 CLINs 0003 and 0004: STEB Production Systems

The STEB System Production requirements are specified in Section 4.0 of Section C.

3.1.4 CLIN 0005: Data Requirements

The data to be furnished hereunder shall be prepared and delivered in accordance with the Contract Data Requirements List, DD Form 1423, Exhibit A attached hereto.

3.1.5 CLIN 0006: Technical Data / Upgrade License Rights (OPTION) If exercised, the Contractor shall grant the corresponding Data Rights license for each item of Technical Data (TD), Computer Software (CS), and Computer Software Documentation (CSD) identified on Attachments 6B, 7B, 8B, and 9B. Following option exercise, the Contractor shall remove or revise markings and legends and resubmit previously submitted Exhibit A CDRLs to be consistent with the rights furnished hereunder. In addition, the Contractor shall deliver all future data submittals with markings and legends consistent with the rights furnished hereunder.

3.2 Integrated Program Management

The Contractor shall designate a Program Manager who shall have responsibility for all aspects of this contract and the authority to commit the Contractor to specific courses of action. The Contractor shall perform all administrative, technical, and financial management functions required to support this effort and shall maintain the status, including all technical activities, problems or deficiencies, and recommended solutions. The Contractor shall be responsible for those activities assigned to subcontractors, to ensure the delivery of all supplies and services specified in this contract. The deliverable for this work shall be the Contractor's Progress and Status Report (CDRL A001).

3.2.1 Contractor Performance Management System

The Contractor shall establish, maintain, and use in the performance of this Contract, an integrated performance management system. The Contractor shall include the following management processes and systems in the established integrated performance management system: the integrated master schedule, contract work breakdown structure, change management, material management, procurement, cost estimating, and accounting. The correlation and integration of these systems and processes shall provide for early indication of cost and schedule problems, and their relation to technical achievement. The deliverable for this work shall be included in the Integrated Program Management Data and Analysis Report (CDRL A002).

3.2.2 Contract Work Breakdown Structure (CWBS)

The Contractor shall develop and maintain the CWBS (CDRL A003) and the CWBS dictionary using MIL-STD-881C for guidance. The CWBS shall be to the lowest level necessary to reach manageable units of functional tasks that reflect the work being performed while ensuring the correlation of these lower levels to the specification, contract line items, data items, and work statement tasks. The Contractor shall use the CWBS as the primary framework for contract planning, budgeting, and reporting of the cost, schedule, and technical performance status to the Government. The Contractor shall also deliver the raw accounting data from their accounting system of each manufacturing lot, at the completion of that lot, in Enterprise Resource Planning (ERP) Reports (CDRL A004). It shall include an additional field identifying each database record with the corresponding lowest WBS element that those costs were reported. The Contractor shall analyze the system requirements specified in the SOW and system specification and translate them into a structure representing the products and services that comprise the entire work effort under the Contract. The Contractor's team or organizational entity responsible for the systems engineering of the system prepares the technical elements of the extended Contract WBS. The Contractor, if necessary, shall update the CWBS during the execution of the Contract. Changes to the CWBS or associated definitions, at any reporting level, require approval of the Government.

3.2.3 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) The Contractor shall develop and maintain an Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) using the DOD Integrated Master Plan and Integrated Master Schedule Preparation and Use Guide. The schedule shall contain the planned events and milestones, accomplishments, exit criteria, and activities from contract award to the completion of the Contract. The Contractor shall quantify risk in hours, days, or weeks of delay and provide optimistic, pessimistic, and most likely duration for each IMS activity and event. The IMP and IMS shall be included in the Integrated Program Management Data and Analysis Report (CDRL A002).

3.2.4 Post Award Conference (PAC)

The Contractor shall host and conduct a PAC with the Government within forty-five (45) calendar days of contract award. The PAC shall be held no longer than two business days. The Contractor shall develop the PAC structure and agenda. Contractor shall make available read-ahead material and presentation material ten (10) calendar days prior to the PAC. The Contractor shall generate and record minutes, attendance list, and action items of the PAC, and produce copies of all information presented. The Conference shall be held at the Contractor’s facility. Representatives from each major subcontractor on the Contractor's team shall attend. Minutes of the meetings shall be kept by the Contractor unless otherwise directed by the Government. Minutes shall include a summary of discussions, copies of handouts or graphics, and a listing of action items, and be distributed electronically. The deliverables for this work shall be Meeting Agenda (CDRL A005), and Report, Record of Meeting/Minutes (CDRL A006).

The purpose of the PAC is as follows:

a) Review the Contract and Technical requirements

b) Discuss the roles and working relationships between the Contractor and the Government

c) Discuss the Contractor’s planned management effort and requirements verification process

d) Discuss required meetings, periodicity, and reporting requirements

e) Review the Contractor’s facility plans

f) Review the Contractor’s recommendations for STEB System Integration and Test

g) Identify the Integrated Product Teams and their respective roles and responsibilities

h) Management and Contract Mechanics

1) Contract Administration

2) Team Introductions

3) Review GFI/GFP utilization plans

4) Integrated Baseline Review (IBR)

5) Quarterly Program Reviews (QPR)

6) Quarterly Financial Reviews (QFR)

i) Technical Discussions

1) Requirements Traceability overview

2) Configuration Management processes

3) Major Technical Risk Areas

4) Design Review execution and schedule

5) Configuration Management processes

3.2.5 Integrated Baseline Reviews (IBRs)

The Contractor shall host an IBR no later than 180 calendar days after contract award. The Contractor shall work with the Government to develop the IBR agenda. The Contractor shall make available read-ahead material and presentation material ten (10) calendar days prior to the IBR. The Contractor shall generate and record minutes, attendance list, and action items of the IBR, and produce copies of all information presented. The prime Contractor shall lead the IBRs, with active participation by the Government. The IBR shall be held at the Contractor’s facility and shall be no longer than two business days. The deliverables for this work shall be Design Review Information Package (DRIP) (CDRL A007), Meeting Agenda (CDRL A005), and Report, Record of Meeting/Minutes (CDRL A006).

Minimum IBR Entry Criteria

a) CWBS and CWBS Dictionary approved

b) Control Accounts established and Control Account Managers (CAMs) assigned

c) Initial IMS submitted in Integrated Program Management Data and Analysis Report (CDRL A002).

As determined by the COR, the Contractor shall conduct an IBR assessment for any major change to the contract, after the exercise of significant contract options, and/or the incorporation of major design modifications. The Government will use IBRs throughout the life of the STEB program to facilitate and maintain mutual understanding of:

a) The scope of the Program Management Baseline (PMB) consistent with authorizing documents

b) Management control processes

c) Risks in the PMB associated with cost, schedules, and resources

d) Corrective actions where necessary

3.2.6 Progress Reporting

The Contractor shall prepare and deliver monthly Progress, Status, and Management Reports to provide status of all assigned tasks, report progress against milestones, and identify technical or schedule problem areas or risks along with recommendations for resolution Contractor's Progress and Status Report (CDRL A001). The Contractor shall provide monthly Contract Funds Status Report (CFSR) (CDRL A008). Reports shall be tailored to provide required Cost, Technical, and schedule information. The financial status shall include the Estimate at Completion (EAC), Actuals to Date (ATD), Estimate to Complete (ETC), amount funded and outlooks for when additional funding is required, as necessary, for tasks as identified in Technical Instructions.

3.2.7 Subcontract Management and Control

The Contractor shall identify and monitor subcontractor technical, quality, schedule, and milestone achievement on a continuing basis, according to the Contractor’s own established subcontract management techniques. The Contractor shall report subcontractor status in the Contractor's Progress and Status Report (CDRL A001).

3.2.8 Program Risk Analysis

The Contractor shall identify significant program issues and raise them to the Program Office so that they can be monitored and resolved. The Contractor shall perform a continuing analysis of program, technical, performance, cost and schedule risks. Risks shall allow for the identification of both technical and non-technical risks, risk assessment, the development of appropriate actions and mitigations to effectively manage these risks, and tracking of potential impacts to cost, schedule, or performance impacts. The analysis shall identify the risks associated with each area, identify the impact of each risk on the overall program, and proposed approaches for reducing identified risks. Risk analysis status shall be reported in the Contractor's Progress and Status Report [CDRL A001] and presented during Program Reviews, Technical Reviews, and monthly Risk Review Boards.

3.2.9 Program Reviews

The Contractor shall prepare agendas for Contractor-hosted meetings, program reviews, IPTs and all other meetings/reviews. The agendas shall be reviewed jointly between the Government and Contractor and distributed electronically via e-mail by the Contractor. Minutes of the meetings shall be kept by the Contractor unless otherwise directed by the Government. Minutes shall include a summary of discussions, copies of handouts or graphics, and a listing of action items, and be distributed electronically. The deliverables for this work shall be Meeting Agenda (CDRL A005), and Report, Record of Meeting/Minutes (CDRL A006). The Contractor shall conduct quarterly program reviews (QPR) and Quarterly Financial Review (QFR) every three (3) months, at its facility or alternate Government facility for a period not to exceed one (1) day. An informal “read-ahead” brief shall be provided electronically to the Government 10 calendar days prior to the review.

3.2.9.1 Quarterly Program Review (QPR)

The purpose of the QPR is to ensure the Contractor’s approach and progresses are technically sound, meet the requirements, and are mutually understood and properly documented. At each QPR, the Contractor shall report status, issues, risks, and recommendations for the following items (at a minimum):

a) Schedule progress against the IMS (3 month history and 6 months projected)

b) Contract deliverables completed and projected (3 month history and 6 months projected)

c) Design and technical issues

d) Test and evaluation activities, plans, results

e) Logistics source data development and support efforts

f) Development activities -- completed and planned

g) Risk analysis and mitigation activities

h) Quality program status

i) Safety program status

j) GFP and GFI status

k) Proposed changes to the any baseline

l) Status of action items from previous reviews

m) Hazardous material management efforts

n) Configuration management activities

o) Production and Manufacturing readiness status

p) Efforts authorized under Technical Instructions

q) Reliability and maintainability

r) Hardware and software engineering

3.2.9.2 Quarterly Financial Review (QFR)

The purpose of the QFR is to ensure the Contractor has adequate financial resources and planning to execute the contract. At each QFR, the Contractor shall report status of the following (at a minimum):

a) Cost/Schedule performance and variances against plan

b) Financial projection/actual (3 month history, 6 month future)

c) Risk analysis and mitigation activities

d) Status of action items from previous reviews

3.2.10 Design Disclosure, Intellectual Property and Data Rights The Contractor shall establish and maintain a process that shall provide ‘early and often’ design disclosure directly to third party developers via electronic access to in-process design documentation and computer software.