Draft SOW.pdf

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STATEMENT OF WORK

60’ Dive Support Boat

1. INTRODUCTION

PMS300 requires the procurement and delivery of a 60’ aluminum dive support boat to NSSF NEW LONDON w/ cold weather Enclosure located in Groton, Connecticut as directed by OPNAV N97.

2. BACKGROUND

Dive boats serve US Navy divers in underwater ship’s husbandry, maintenance, repair, and cleaning of various vessels and other assets at Naval Bases, Shipyards and other activities, and other salvage and diving operations worldwide. These boats directly support material readiness and mission readiness of various vessels and carriers.

3. SCOPE

The Contractor shall provide and deliver one (1) Dive Support boat in accordance with this Statement of Work (SOW), Paragraph 5.0 Requirements.

4. APPLICABLE DOCUMENTS

N/A

5. REQUIREMENTS

5.1 GENERAL STATEMENT OF WORK

This Statement of Work (SOW) defines the effort required for the design, construction, testing, configuration control, documentation, and program management for the acquisition of the Dive Support Boat.

Only the Procuring Contracting Officer (PCO) has the authority for the U.S. Navy to authorize or change work and sign contract documents. No other personnel are authorized by their formal communications or by their course of conduct to commit the U.S. Navy to price changes, schedule changes, or to perform different or additional work. The Contractor shall only execute tasking or requests for support under this contract when such direction comes from, or is agreed to by, the PCO.

The award of the contract does not indicate the Government has approved or certified the design provided with the proposal. The Contractor shall remain fully responsible for delivering the boat, which meets the requirements of this Contract.

5.1.1 BACKGROUND

5.1.2 QUANTITIES

The contract is for one (1) boat.

5.1.3 DESIGN, MANAGEMENT AND PRODUCTION

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The Contractor will be responsible for managing all activities (design, engineering, logistics, testing and production) under this contract for successful execution. After award the Government will conduct a Design Maturity Review with the Contractor that will occur prior to the start of Initial Production.

5.2 CONTRACT LINE ITEM NUMBER DESCRIPTIONS

5.2.1 CLIN 0001– DIVE SUPPORT BOAT

The Contractor shall construct the boat in accordance with SOW, Paragraph 5.3 below and the Specification (Attachment 1 - DS Boat Specification Rev). All boat-specific efforts shall be included in the pricing for this CLIN including:

5.2.1-1 BOAT– The Contractor shall provide the boat in accordance with the Specification (Attachment 1 DS Boat Specification Rev).

5.2.1-2 UID – The Contractor shall provide Unique Item Identification (UID) and Documentation for every boat in accordance with DFARS Clause 252.211-7003 and the requirements provided in the UID (Attachment 6 - Unique Item Identification).

5.2.1-3 BOAT SPARES – The Contractor shall provide initial boat spares for the boat in accordance with Attachment 7 - DS Boat Spare Parts List and SOW, Paragraph 5.3 below.

5.2.1-4 COPY OF BOAT SPECIFIC TECHNICAL DATA PACKAGE (TDP) – The contractor shall provide for each boat one hard copy and one electronic copy (CD/DVD) of the Final TDP specific to each boat.

5.2.1-5 PRE-DELIVERY INSPECTIONS AND TRIALS (PDIT)

The Contractor shall perform boat Pre-Delivery Inspections and Trials (PDIT), in accordance with SOW, Paragraph 5.3 and the Specification (Attachment 1 - DS Boat Specification Rev), Section 094.

5.2.1-6 CREW FAMILIARIZATION AND TRAINING

The Contractor shall provide crew familiarization and training, in accordance with SOW, Paragraph

5.3. Crew familiarization training will be scheduled at a mutually agreeable time following receipt and issue of the boat at the end user location.

5.2.2 CLIN 0002 – AFT DECK EXTREME COLD WEATHER ENCLOSURE

The Contractor shall construct an insulated extreme cold weather enclosure for the aft deck in accordance with Section 169-5 of the Specification (Attachment 1 - DS Boat Specification Rev).

5.2.3 CLIN 0003– ENGINEERING & INDUSTRIAL SERVICES

The Contractor shall provide Engineering and Industrial Services in support of this contract in accordance with Section H of this Contract entitled “ENGINEERING & INDUSTRIAL SERVICES.” The work to be performed shall consist of that which is required to support the program in any of the following areas:

Design Engineering & Production Services, and Testing Phase Support. Requirements under this CLIN might include, but are not limited to changes to the configuration baseline, Government requirements identified during pre-delivery inspection, issue resolution support during Government testing, and the development of various engineering products. Examples of work that might be accomplished under this CLIN include equipment installation, rigging support, component replacement, minor design upgrades and subject matter expert technical assistance. The requirements associated with this CLIN are over and above those specified in other contract CLINs.

5.2.4 CLIN 0004 – SHIPPING - The Contractor shall deliver the boat to the location specified in Section F (Deliveries or Performance) and in accordance with SOW, Paragraph 5.3. Spare parts and items not integrated into the boat shall be wrapped in protective packaging or container and shall be shipped to the same location either with the boat or via separate shipping.

5.3 STATEMENT OF WORK, DESIGN, PRODUCTION AND DOCUMENTATION

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5.3.1 CONFERENCES AND REVIEWS

The Contractor shall conduct a Post Award Conference (PAC) and Progress Reviews. The Contractor shall prepare meeting minutes.

5.3.1-1 Post Award Conference: The Contractor shall conduct a PAC with the Government within 45 days after contract award and subsequent boat option exercise, as needed. The conference will be held at the Contractor’s facility or by phone at the Government’s discretion. The purpose of the conference is to (1) review the contract and technical documents, (2) review the technical and schedule requirements, and (3) discuss the roles and working relationships between the Contractor and the Government.

5.3.1-2 Design Maturity Review (DMR): The Contractor shall schedule and host Government personnel for a DMR prior to the start of construction of the first boat. The DMR shall be scheduled at least 30 days prior to the review. The purpose of the DMR is to demonstrate that the design is sufficiently mature to start construction and that the status of material ordering and delivery will support the proposed build schedule. Any potential risk areas shall be identified and mitigation plans discussed. The Government should be satisfied that all requirements in the Specification (Attachment 1

- DS Boat Specification Rev) have been incorporated into the design. The Government will notify the Contractor within 7 days of the Design Maturity Review whether or not the start of construction is authorized. The following shall be provided 14 days prior to the Design Maturity Review:

A. Updated Design, Production, and Delivery Schedule, including:

• Construction facilities: The Contractor shall provide evidence of the facilities readiness,

• Production Manning: The Contractor shall provide evidence that manning resources are available to support planned production, B. Material and purchased parts status, including but not limited to:

• hull and deck materials,

• major equipment,

• long-lead time items.

C. Preliminary Master Data Index.

D. DRAFT Technical Design Analyses for final Government Approval:

• Allocated Baseline Weight Estimate (ABWE),

• Initial Stability (including General HydroStatics (GHS) geometry and run files used in the analysis).

E. Preliminary Technical Design Analyses demonstrating approach and maturity of the design, including but not limited to:

• Electrical load analysis,

• HVAC Sizing and Insulation Design,

• Engine Room and Dive Equipment Room Ventilation Sizing and Design.

F. Preliminary construction drawings to support reviews of Technical Design Analyses and demonstrate the approach to meet the Specification, including but not limited to:

• Outboard Arrangement Drawing,

• Inboard Arrangement Drawing,

• AC and DC Electrical One Line Drawings,

• Hoisting Drawing, G. Description of approach to completing Preliminary Test Plans, including but not limited to:

• Scale Weight,

• Pull Tests,

• Fuel Tank(s) and System(s) Pressure Tests

H. Specification Review of Proposed Equipment, submitted in Microsoft Word/Excel format for review of proposed commercial off-the-shelf (COTS) products intended to meet the requirements of the specification for the following, at minimum:

• Electrical cabling and circuit protection,

• Lighting,

• HVAC systems, 4 | 13

• Safety equipment (e.g. detectors, alarms, etc.),

• Outfitting,

• Any proposed brand name “equals” (see Attachment 1 - DS Boat Specification Rev, Section 042),

• Any additional items identified by the Contractor or Government during the Post

Award Conference.

I. Requests For Variance (RFV): There shall be no open RFVs. Contract Problem Identification

Reports (CPIRs) shall have a documented resolution.

J. Risk Assessment: an assessment of risk and the risk management approach to eliminate or mitigate those risks.

5.3.1-3 Progress Reviews: Progress Reviews shall be held at the Contractor’s discretion or by Government request, as needed to support the production schedule. Reviews will be held at the Contractor’s facility or by phone and shall not interfere with continued progress or production of the boat. Reviews shall not be used as approval to proceed in design or production, unless otherwise specified, and should be used only for informing the Government of process on production, builder questions, and impending risk to program.

5.3.2 WARRANTY

The Contractor will correct defects for the boat, and all installed equipment, for minimum of 1 year, starting from the date the boat is officially issued to the Navy's end-user after the contractor resolves all discrepancies from the Post Delivery Inspection Report (PDIR) in accordance with the warranty provided in Attachment 9 - Warranty Terms.

5.3.3 PROGRAM MANAGEMENT

Roles and Responsibilities

5.3.3-1 The Contractor shall establish a project management structure that ensures overall quality of the boat components, consistent with their chosen engineering and manufacturing approach.

5.3.3-2 The Contractor shall designate a Project Manager (PM) to serve as the principal representative of the Contractor throughout the duration of contract performance. The PM shall be responsible for the performance of the contract and on-time delivery of technically compliant boats and associated equipment. At all times, the PM shall have the responsibility for ensuring program integrity and overall contract performance. The contractor shall ensure that administration, logistics, financial and other task requirements pertinent to contract performance are addressed.

5.3.3-3 The Government points of contact are listed in the clause “G-242-H001 GOVERNMENT

CONTRACT ADMINISTRATION POINTS-OF-CONTACT AND RESPONSIBILITIES (NAVSEA)

(OCT 2018)

5.3.4 INVOICES

The Contractor shall provide affidavits or invoices from the suppliers of all essential materials used in the construction of the boat. The affidavits or invoices shall be used together with records identifying the lot or serial numbers of the boat in which such materials were used.

5.3.5 SPARES

5.3.5-1 Boat (initial) Spares: The Contractor shall provide initial spares for the boat as outlined in Attachment 7 - DS Boat Spare Parts List. The spares provided for the boat shall match the propulsion configuration/OEM installed on the boat. Spares shall be managed as part of the configuration management process and the Contractor shall inform the Government of any necessary part number updates that will be required throughout the execution of this contract. Boat and Spares shall be packaged and marked in accordance with Section D of this contract.

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5.3.5-2 Updates: The Contractor shall recommend updates to the contract spares list throughout the life- cycle of this contract. It is anticipated that parts will become obsolete or newer parts will become available that should be provided as part of spares offered.

5.3.6 DELIVERY

The Contractor shall safely deliver the boat to the awarded location, as defined in Section F of this contract.

The Contractor shall be responsible for ensuring the boat is delivered fully assembled, operational, in original condition and still meets the Specification (Attachment 1 - DS Boat Specification Rev) requirements upon delivery. The boat may be delivered on the water, under its own power, to the final destination. Main engine hours at final delivery should be less than 350 hours per engine. If delivered in this manner, all periodic maintenance shall be conducted (oil changes, filter changes, cleanings or any other item or action required by the equipment’s OEM/manual), logged along with date, hours of the equipment or other relevant data, and any spare liquids, filters, etc., that are used, shall be replaced prior to final acceptance of the boat. The boat shall be properly cleaned and restored to like-new condition following the delivery trip. The boat shall be hauled-out and the hull shall be pressure washed, hull paint touched up, repairs made if necessary, and made available for inspection by the Government at a location not more than approximately a 4-hour drive from the final destination. A log of the trip shall be made, including passage descriptions, speeds, engine RPMs, all stop-overs, any equipment failures and remedies, or any other significant issues arising. The log shall be presented to the Government at final delivery. The boat shall be inspected in accordance with Section E and all PDIR discrepancies must be resolved prior to acceptance by the Government.

5.3.7 ESSENTIAL CYBERSECURITY COMPONENT (ECSC) DATA COLLECTION

For each boat the Contractor shall document and provide the Essential Cybersecurity Component (ECSC) details of hardware model/part number, hardware serial number, software version, and firmware version in accordance with Sections 085 of the Specification (Attachment 1 - DS Boat Specification Rev).

5.3.8 TECHNICAL DATA PACKAGE

5.3.8-1 General: The Contractor shall provide a copy of the Technical Data Package (TDP) with the boat in accordance with Section 085 of the Specification (Attachment 1 - DS Boat Specification Rev).

The costs (e.g. print, arrange, bind, etc.) to provide a copy of the TDP, including updating boat applicability and individual boat certifications, shall be included in the unit prices under the corresponding Boat CLIN.

5.3.8-2 Format: Drawings shall be provided in hard copy, DWG/DXF format and PDF format. Boat technical manual and COTS manuals, instructions or cut sheets, certifications, analyses, master data index, and all other data shall be provided in hard copy and PDF format. Calculations shall be submitted in their native electronic format.

5.3.8-3 Data Security: Most of the data in the TDP is considered Controlled Unclassified Information (CUI) and therefore, the Contractor shall exchange data with the Government via a Government provided Integrated Digital Environment (IDE) or Government approved File Exchange Server utilizing appropriate Public Key Infrastructure/Information Assurance protocols.

5.3.8-4 Submittal: A complete preliminary TDP shall be submitted electronically to the TPOC a minimum of 45 days prior to pre-delivery inspection and trials (PDIT). The Government will provide comments and questions on the preliminary TDP. Early submittals are encouraged and will be reviewed as soon as practicable. One hard copy of the TDP and one electronic copy of the TDP shall be provided at each PDIT for additional Government review. Any additional TDP comments will be included in the PDIT Discrepancy List. The Contractor shall respond to the comments either by correction/incorporation or by providing Contractor responses (e.g. resolution plan, notification of boat correction, clarification questions, etc.) within 15 days of the PDITs.

One hard copy and one electronic copy (CD/DVD) of the Final TDP (with all comments incorporated) shall be provided with the delivery of each boat. One electronic copy of the Final TDP (with all

6 | 13 comments incorporated) shall be submitted to the Government TPOC concurrent with delivery of the first boat.

5.3.8-5 TDP Acceptance: Government acceptance of the preliminary technical analysis package, preliminary TDP, and final TDP for payment events is predicated upon accuracy (data matching the as-built configuration of the boat) and completeness (all technical data provided with status/rationale provided for any outstanding/missing data).

5.3.9 DATA RIGHTS

5.3.9-1 It is the Government's desire that all non-commercial technical data (TD) included in the TDP (baseline or as modified by any Engineering Change Proposals) be delivered with a minimum of Government Purpose Rights (as defined in DFARS 252.227-7013 and 252.227-7014). If the Offeror proposes to deliver commercial TD, it is the Government’s desire to obtain a license to the commercial TD that would grant the Government the equivalent of Government Purpose Rights as a minimum. The Government’s overall goal is to have the ability to maintain and repair the vessel and its systems, to include providing that information to third parties for the purpose of developing and executing the required work expediently. All TDP deliverables shall be marked with appropriate data rights legends per DFARS 252.227-7013 and 252.227-7014 as applicable.

5.3.9-2 The Contractor’s Data Rights assertions will be incorporated in the contract as Attachment 11 - Technical Data Rights Assertion.

5.3.9-3 End Use License Agreement Indemnification:

1. Except when indemnification by the Government is expressly authorized by statute and specifically authorized under applicable agency regulations and procedures, any supply or service acquired under this contract that is subject to any End Use License Agreement (EULA) or similar legal instrument which includes any clause requiring the Government to indemnify the Contractor or any person or entity for damages, costs, fees, or any other loss or liability that would create an Anti-Deficiency Act violation (31 U.S.C. 1341), the following shall govern:

2. Any such clause is unenforceable against the Government.

3. Neither the Government nor any Government authorized end user shall be deemed to have agreed to such clause by virtue of it appearing in the EULA or similar legal instrument.

4. Any such clause is deemed to be stricken from the EULA or similar legal instrument.

5.3.9-4 If the Contractor ceases doing business and/or cannot fulfill its obligations under this contract, the Government shall automatically be granted Government Purpose Rights to all existing data developed under this contract.

5.3.10 TEST CERTIFICATIONS

Test certification documentation for items in the Specification (Attachment 1 - DS Boat Specification Rev), Section 092 shall be provided in electronic format (PDF). All pull test plans shall be submitted to the Government TPOC and approved prior to testing. Testing results shall be submitted a minimum of 3 business days prior to PDIT start date to the Government TPOC.

5.3.11 BUILDER’S TRIALS (BT)

The Contractor shall perform and submit the first boat BT results in electronic format (PDF) a minimum of 3 business days prior to PDIT start date to the Government TPOC. These trials and reports shall be conducted in accordance with the Specification (Attachment 1 - DS Boat Specification Rev), Section 094.

5.3.12 PRE-DELIVERY INSPECTION AND TRIAL

5.3.12-1 General: The Contractor shall schedule and host Government personnel to inspect and conduct sea trials on the boat. These trials shall be conducted in accordance with the Specification (Attachment 1 - DS Boat Specification Rev), Section 094.

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5.3.12-2 Notification of Trials: The Contractor shall provide a minimum of 45 days’ notice of date of PDIT, and it is recommended the Contractor schedule PDIT no later than 3 weeks prior to the contracted delivery date to allow sufficient time for required evolutions (i.e. PDIT discrepancies corrections, shipping, and receipt at destination). Scheduling in this manner will ensure contracted delivery dates are met.

Notification of PDIT date(s) and agenda/test plan shall be provided to the Government APM.

5.3.12-3 Trials Readiness: If upon arrival, the Government and the Builder are unable to satisfactorily perform the PDIT as outlined in the Specification (Attachment 1 - DS Boat Specification Rev), Section 094-2, the Builder may be held financially responsible for cost reimbursement of Government and/or Government representative's travel and labor associated with PDITs. The Contractor shall notify the Government of any PDIT delays no later than 5 days before planned arrival. Written notice of PDIT delay shall be accompanied by a request of extension to the Contracting Officer and Program Office Point of Contact. If as a result a delayed PDIT or other delays resulting from this action the builder cannot meet the contractual delivery date, consideration for late delivery shall be required. FAR Clause 52.246-2(e)(1) will be exercised at Government’s discretion for potential Contractor liabilities if PDIT cannot be satisfactorily performed after arrival of the Government PDIT team on-site. A typical PDIT takes place over 3-½ days.

5.3.12-4 Pre-Transport Inspection: The Government reserves the right to schedule and conduct a Pre-Transport Inspection. The Pre-Transport Inspection is intended to reduce the likelihood of major discrepancies at the post-delivery inspection.

5.3.12-5 Acceptance: Satisfactory inspection and verification, including TDP reviews (i.e. drawings, manuals, certifications, etc.), proper operation of the boat, and corrections of PDIT discrepancies are conditions for final acceptance of the boat by the Government. All PDIT and TDP discrepancies must be resolved/corrected by the Contractor prior to delivery. Any unresolved discrepancies may result in acceptance and/or payment delays.

5.3.12-6 Photos Photographs for items listed in the Specification (Attachment 1 - DS Boat Specification Rev) shall be submitted to the Government TPOC electronically (jpeg format) as stages or parts are completed.

5.3.13 CREW FAMILIARIZATION AND TRAINING

(a) The Contractor shall provide one (1) week of basic familiarization and training at the End User’s location for up to ten (10) students. End User locations are defined in Section F. This training shall include builder and OEM training in real world environments, utilizing the Boat Technical Manual content as the course and student guide.

(b) Course content shall include, but not be limited to, an overview of the boat’s basic Hull Mechanical and Electrical (HM&E) Systems, Navigation System, and Communications systems, startup/operation/shut down procedures, basic troubleshooting, preventative maintenance and general emergency procedures.

(c) The crew familiarization course shall address component change-out procedures for items that are part of systems or major equipment, such as items in: Engines, Transmissions, Generators, Bow thruster, piping and mechanical systems, Air Conditioners, Electrical Systems (DC and AC), Navigation System, Communication System.

1. Underway operations shall include but not be limited to: boat start-up, close quarter maneuvering, anchoring, towing, docking, and shutdown.

2. The Contractor shall provide all training materials. One (1) hard copy of the Boat Technical Manual shall be provided to each student. The contractor is required to provide fuel for crew familiarization.

ADDITIONAL INFORMATION

A. PERIOD OF PERFORMANCE / REQUIRED DELIVERY DATES

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B. PLACE OF PERFORMANCE

C. SHIPPING ADDRESS

D. INSPECTION AND ACCEPTANCE

E. TECHNICAL POINT OF CONTACT

F. SPECIAL CONTRACT REQUIREMENTS

See Attachment 10 – Delivery Schedule

Contractor’s Facility

CLIN 0001-0002:

TBD

Groton, CT 06349

SECTION D – PACKAGING AND MARKING

All items delivered under this delivery order shall be prepared for shipment with the Contractor's best commercial practice. Packaging/Shrink wrap shall be used to protect the boat during delivery, if necessary. Boat systems shall be protected from freezing temperatures. Batteries shall be disconnected with terminals taped. Packaging/shrink wrap materials shall be installed in a manner that enables removal and reinstallation to the maximum extent practicable to enable inspection at the delivery location without damage to the packaging materials.

The Contractor shall be responsible for marking the boats with the Navy hull registration number. The hull number will be provided upon request by NSWC-CCD Code 83, TBD. The Contractor shall also be responsible for the condition of all deliverables until receipt inspection and final acceptance at destination by a U.S. Government representative is completed. Hull registry number cost is included in Attachment 1 Item No. 602-1.

Spare parts and items not integrated into the boat shall be wrapped in protective packaging or container and shall be shipped to the same location either with the boat or via separate shipping. Unless otherwise specified, all spares shall be packaged and shipped securely with the boat. Packaging shall allow for spare components to not be damaged during shipping. Each package of spares shall be labeled with a Master Packing List (MPL), listing the contents of each package and cross-referenced to the Spare Parts List (Attachment 7 - DS Boat Spare Parts List).

INSPECTION AND ACCEPTANCE

Receipt inspection and final acceptance to be performed as described below. The contractor’s “Delivery Ticket” or “Bill of Lading” is to be used as confirmation of delivery and condition of delivery.

Acceptance of delivery is performed by PMS300 or an appointed agent. Receipt inspection primarily consists of the Government noting apparent shipping damage and/or apparent shortages.

Upon receipt, an acceptance inspection is performed and the contractor is notified of any discrepancies in a Post-Delivery Inspection Report (PDIR) typically within 30 work days (i.e., exclusive of weekends and Federal holidays) of receipt. Contractor is to document correction or plan of action for resolution of discrepancies in response to the PDIR. Final acceptance is dependent upon delivery in accordance with Section F, acceptance inspection, Post-Delivery discrepancy resolution notification (i.e., correction or acceptable plan of action).

Naval Sea Warfare Center – Carderock Division: TBD

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CONDITIONS FOR PAYMENT

BOAT CLINS (APPLICABLE TO CLIN 0001)

A. Definitions.

Boat Contract Line Item (CLIN): For the purpose of this commercial interim payment requirement, “Boat CLIN” means only priced CLIN 0001, as defined in Section B.

B. Adequate Security

In accordance with FAR 52.232-29, the contractor must provide adequate security to receive contract financing. If the contractor’s financial condition is accepted as adequate security for inclusion of financing terms in the contract, the contractor shall provide annual financial statements to the Government and immediately notify the Government if there is a change in the company’s financial condition. If the contractor’s financial condition is no longer acceptable as adequate security, the contractor shall, at no additional cost to the Government, provide additional adequate security, or the Government may no longer provide contract financing. FAR 32.202-4 paragraphs (b), (c), and (d) list forms of security that may be acceptable, to include but not limited to: a paramount lien, other assets, or other forms of security such as a letter of credit, bond, guarantee of repayment, or title to assets.

C. The Government will offer financing based on terms of Contracting Officer-specified commercial contract financing. Contract financing shall not be a factor in the evaluation of resulting proposals, and proposals of alternative financing terms shall not be accepted. However, an offer stating that the Contracting Officer- specified contract financing terms will not be used by the Offeror does not alter the evaluation of the offer, nor does it render the offer nonresponsive or otherwise unacceptable. In the event of award to an Offeror who declined the proposed contract financing, the contract financing provisions shall not be included in the resulting contract. Contract financing shall not be a basis for adjusting Offerors’ proposed prices, because the effect of contract financing is reflected in each Offeror’s proposed prices.

D. The Schedule of Payments and Payable Events listed below are notional and may be adjusted based on the Contractor’s build strategy after contract award. The Government will divide the total price of each applicable Boat CLIN in Section B of the contract into the tasks listed in the table below to calculate the interim finance payments for each Boat CLIN shall be made upon completion and acceptance of each task described below:

Event # Description Payment % Value

% CLIN

Complete

1 Post Award Conference 2% 2% 2 Start of Engineering Services 2% 4% 3 Ordering of Main Engines 4% 8% 4 Ordering of Major Components 4% 12% 5 Completion of successful DMR 11% 23% 6 Proof of Receipt of Major Components 9% 32% 7 Proof of Receipt for Main Engines 7% 39% 8 Proof of Receipt for Dive Compressor 5% 44% 9 Proof of Receipt for Generator 4% 48% 10 Hull Completely welded 10% 58% 11 Delivery of Preliminary TDP 2% 60% 12 Builders Trials 18% 78% 13 Completion and Acceptance of PDIT 3% 81% 14 Acceptance of Boat 18% 99%

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15 Retentions 1% 100%

EVENT #1 - Post Award Conference Completed

Upon the Government’s approval of the minutes of the meeting and contractor submitting a preliminary consolidated BOM (required 30 days after award), the Contractor may invoice the Government for 2% of the Boat CLIN.

EVENT #2 – Start of Engineering Services

Upon delivery by the Contractor of the invoice validating the start of engineering/architectural services for the ordered boat, the Contractor may invoice the Government for 2% of the total Boat CLIN value.

EVENT #3 - Ordering of Main Engines

Upon delivery by the Contractor of the confirmation documentation of Purchase Orders for main engines to the WAWF primary POC, the Contractor may invoice the Government for 4% of the total Boat CLIN value.

EVENT #4 - Ordering of Major Components

Upon delivery by the Contractor confirmation documentation of Purchase Orders for major components (generators, dive compressor, windows) and raw material suppliers (aluminum) to the WAWF primary POC, the Contractor may invoice the Government for 4% of the total Boat CLIN value.

Note pertaining to EVENTS #3-4 the confirmation documentation submitted for the purchase orders from major component and raw material suppliers shall include confirmation from vendor of receipt and shall show related delivery schedule as well as terms of conditions.

EVENT #5 - Design Maturity Review

Upon the Government’s approval of the minutes of the Design Maturity Review, the Contractor may invoice the Government for 11% of the total Boat CLIN value.

EVENT #6 - Proof of Receipt of Major Components

Upon photo evidence of receipt of major components windows and raw material suppliers (aluminum)to the WAWF primary POC, the Government will provide interim payment. This event is 9% of the total Boat CLIN value.

EVENT #7 - Proof of Receipt of Main Engines

Upon photo evidence of receipt of main engines to the WAWF primary POC, the Government will provide interim payment. This event is 7% of the total Boat CLIN value.

EVENT #8 - Proof of Receipt of Dive Compressor

Upon photo evidence of receipt of dive compressor to the WAWF primary POC, the Government will

11 | 13 provide interim payment. This event is 5% of the total Boat CLIN value.

EVENT #9 - Proof of Receipt of Generator

Upon photo evidence of receipt of generator to the WAWF primary POC, the Government will provide interim payment. This event is 4% of the total Boat CLIN value.

EVENT #10 - Completion of Hull Welding

Upon photo evidence of completion of hull welding to the WAWF primary POC, the Government will provide interim payment. This event is 10% of the total Boat CLIN value.

EVENT #11 - Delivery of Preliminary TDP

Upon delivery by the Contractor of the preliminary Technical Data Package (TDP) (i.e., the TDP submission required 20 days prior to the official scheduled dates of Pre-Delivery Inspection and Boat Trials) and review and acceptance by the Government, the Government will provide a single interim payment, 2% of the Boat CLIN value. Preliminary TDP is not required after option exercise, the Government will combine this interim payment with EVENT #7.

Note pertaining to completeness of the TDP’s Bill of Materials (BOM): The BOM as defined by Attachment 1 - DS Boat Specification Rev must have minimal errors or omissions for payment.

EVENT #12 - Builders Trials Upon beginning of sea trials at builders’ facility, the Government will provide an interim payment.

This event is 18% of the total Boat CLIN value.

EVENT #13 - Completion and Acceptance of PDIT

Upon successful completion and acceptance of PDIT by Government program office (PMS 325), the Government will provide a single interim payment, 3% of the total Boat CLIN value.

EVENT #14 - Acceptance of Boat Post-PDIR Resolution

Upon acceptance of the boat after completion and acceptance of all PDIR items, the Government will provide an interim payment. Discrepancies must be resolved before invoicing. This event is 18% of the total Boat CLIN value.

EVENT #15 - Retentions Retention: The payment schedule includes a 1% withholding to be used as a performance reserve. This reserve will remain in the possession of the Government until the expiration of the warranty period provided however there is no uncompleted work remaining. The amount of this reserve released at the expiration of the warranty period is dependent on the value, determined by the Government, of any remaining unfinished work for which the Contractor is responsible. If at any time it appears to the Government that the amount of the performance reserve may be insufficient to meet the cost to the Government of finishing any unfinished work under the Contract for which the Contractor is responsible, or for correcting defects for which the Contractor is responsible whether discovered before or during the warranty period, the Government may, in making payments under this requirement, deduct or withhold such additional amounts as it may deem necessary to render this

12 | 13 reserve adequate.

1. All conditions of Interim Payment Events must be met before submission of invoice for payment. Failure to satisfy any condition will result in rejection of invoice. Submission of invoices for partial payments will not be accepted unless noted.

2. Any modifications to the contract totaling under $100,000 per modification shall not be subject to a recalculation of the interim payments. The increase or decrease in price shall be reflected in Payment Event #8 in its entirety and should be invoiced at such time as indicated in Payment Event #8.

3. Any and all payments made hereunder shall be secured when made, by a paramount lien in favor of the Government upon boat, articles, and items contracted for on account of all payments so made and on all material, equipment and other property acquired for or allocated to the performance of this contract or delivery order, except to the extent that the Government, by virtue of any other requirements of this contract or delivery order, or otherwise shall have valid title to such articles, things materials, or other property as against other creditors of the Contractor.

If such property is not identified by marking or segregation, the Government shall be deemed to have a lien upon a proportionate part of any mass of property with which such property is commingled. Any lien provided for by virtue of this paragraph is paramount to all other liens under the provisions of 10 U.S.C. § 2307.

H-02 CONDITIONS FOR PAYMENT – ALL CLINS

0002 – Aft Deck Extreme Cold Weather Enclosure: Payable with event #14 – Acceptance of Boat Post-PDIR Resolution.

0003 – Engineering & Industrial Services: Payable upon successful completion and acceptance of Engineering and Industrial Services.

0004 – Shipping: Payable upon successful delivery of the boat to final destination and DD250 signed by PMS300.

H-03 ENGINEERING & INDUSTRIAL SERVICES

The Contractor shall provide Engineering and Industrial Services in support of this contract. The work to be performed shall consist of production and engineering related labor as ordered by the Government for Engineering & Industrial Services within scope of this Contract without causing delay or disruption to the work performed under this Contract, or any other Government contract, or any other work in process for the Government.

a) As used herein, the term “Engineering & Industrial Services” means work under this Contract, ordered by the Contracting Officer. Engineering & Industrial Services do not include performance of work for the correction of Contractor responsible defects.

b) All modifications will be on a Firm-Fixed-Price (FFP) basis and will be issued as SUBCLINs to this line item.

For each proposed modification, the Contractor agrees that it will submit such cost or pricing data as the Contracting Officer may require. Proposed labor and materials costs shall use the rates set forth in Section B of this contract.

Travel time necessary for performance of such services shall be included in computing the labor hours of service.

Proposed travel costs, if any, shall comply with FAR 31.205-46. Promptly after receipt of proposal, the Contractor and the Contracting Officer shall negotiate the price and schedule for the proposed order. Upon execution and receipt of the modification, the Contractor shall promptly commence the work specified in the order.

c) Undefinitized Changes. Whenever the Contracting Officer determines that urgent demands or requirements prevent the issuance of a priced order, he/she may issue an unpriced change. Such order may be unilateral or bilateral and shall establish a limitation on Government liability, a maximum ceiling amount, and a schedule for definitization., The Contractor shall begin performing the undefinitized order upon receipt, except as provided in paragraph (3) below. The clause entitled "Contract Definitization" (DFARS 252.2l7-7027) shall be included in any undefinitized order.

d) Rejection of Unilateral Changes. The Contractor may reject any unilateral changes if the Contractor determines that it cannot feasibly perform the work, or if the Contractor does not concur with the maximum ceiling amount.

However, each unilateral change shall be deemed to have been accepted by the Contractor unless within fifteen days of issuance of modification, the Contractor notifies the Contracting Officer in writing of its rejection of the change.

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CLAUSES INCORPORATED BY FULL TEXT

H-225-H001 FOREIGN SHIPYARD CONSTRUCTION PROHIBITION (NAVSEA) (OCT 2018)

In accordance with 10 U.S.C. 7309, neither the vessel nor the hull, midbody, or other major fixed structural component of the vessel shall be constructed in a foreign shipyard.

(End of text)

SECTION J

ATTACHMENTS

Attachment 1: DS Boat Specification Rev Attachment 2: Specification Response Matrix Attachment 3: Embarked Equipment and Unique Dive Features Attachment 4: Notional DS Boat Arrangement Attachment 5: Electrical Load Analysis AC Distribution Attachment 6: Unique Item Identification Attachment 7: DS Boat Spare Parts List Attachment 8: Notional Dive Boat AC Power - One-Line Attachment 9: Warranty Terms Attachment 10: Delivery Schedule Attachment 11: Technical Data Rights Assertion Attachment 12: Past Performance and Experience Proposal attachments (will not be included in the contract, see Section L) Attachment 14: CLIN Pricing Chart - (To be used to populate Section B upon contract award)