Attachment 17 - H.2 Liquidated Damages for Key Personnel Vacancies-Draft-05.14.2026.pdf
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- Solicitation number
- FA564125RBOS2
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This is a contract clause addressing liquidated damages for Key Personnel vacancies. The contract identifies five essential positions as Key Personnel: Morón AB Site Lead, Civil Engineer Manager, Structural Engineer, Fire Chief, and one additional position to be finalized before RFP release. The Contractor must maintain all Key Personnel positions at all times with individuals meeting or exceeding minimum qualifications specified in the Performance Work Statement, with formal written certification required upon completion of the phase-in period and whenever a vacant position is filled.
The Contractor has one hundred twenty (120) calendar days to fill any Key Personnel vacancy with a qualified, Government-approved individual, during which time the clock pauses if the Government is processing a security clearance or the candidate's application is pending with the Spanish Office of Defense Cooperation. Interim "acting" assignments are permitted for up to ninety (90) calendar days but do not relieve the Contractor's obligation to permanently fill the position. If a vacancy is not filled within the allowable period, liquidated damages accrue daily at the following rates: Program Manager at $1,200.00 per calendar day and all other Key Personnel positions at $500.00 per calendar day, with a total liability cap of $75,000.00 per single vacancy occurrence. The Government collects accrued damages through unilateral deduction from the Contractor's next available monthly invoice for CLIN 0001 - Program Management & Integration, and damages continue to accrue until the position is filled, the cap is reached, or an alternative remedy is mutually agreed upon.
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Text version
H-02, Liquidated Damages for Key Personnel Vacancies
(a) Applicability: The parties agree that the positions listed below are essential for successful contract performance. These positions are designated as Key Personnel:
1. Moron AB Site Lead
2. Civil Engineer Manager
3. Structural Engineer
4. Fire Chief
5. Finalize before RFP Release
(b) Performance Standard and Certification: The Contractor shall ensure that all Key Personnel positions are filled at all times with individuals who meet or exceed the minimum qualification requirements set forth in the Performance Work Statement (PWS).
(i) Initial Manning Certification: Upon completion of the phase-in period, the Contractor shall provide a formal, written certification to the Contracting Officer attesting that all individuals assigned to Key Personnel positions meet the PWS requirements.
(ii) Vacancy Fill Certification: When filling a vacant Key Personnel position, the Contractor shall provide a similar written certification for the replacement candidate as part of the formal notification to the Contracting Officer that the position has been filled.
(c) Interim "Acting" Personnel. The Contractor may temporarily assign another qualified employee to serve in a vacant Key Personnel position on an "acting" basis. However, such an acting assignment shall not exceed ninety (90) calendar days and does not relieve the Contractor of its obligation to permanently fill the position within the Vacancy Fill Period defined herein.
(d) Vacancy Fill Period and Suspension The Contractor shall have a qualified individual on-site and performing the duties of the Key Personnel position within one hundred twenty (120) calendar days (the "Vacancy Fill Period").The clock for this period shall be paused during the time the Government is actively processing a security clearance or the candidate's application is pending with the Spanish Office of Defense Cooperation (ODC). If a candidate withdraws...or is denied clearance...the clock shall be reset and restart prospectively from the date of notification.
(e) Government Right to Verify: The Government reserves the right to review the credentials (e.g., resumes, certifications) of any individual assigned to a Key Personnel position at any time to verify compliance with the PWS requirements. A written determination by the CO that an individual does not meet the minimum qualifications shall constitute a vacancy effective on the date of that determination.
(f) Liquidated Damages: In the event the Contractor fails to fill a Key Personnel vacancy with a qualified, Government-approved individual within the allowable Vacancy Fill Period (120 days), the Contractor shall be assessed liquidated damages. These damages represent a reasonable forecast of the Government's financial harm, combining the unprovided value of the required service under this Firm-Fixed-Price contract and the Government's increased administrative burden.
(i) Assessment Rates: The Liquidated Damages shall be assessed for each calendar day the position remains vacant beyond the Vacancy Fill Period at the following rates:
1. Program Manager: $1,200.00 per calendar day
2. Morón Site Lead: $500.00 per calendar day
3. CE Manager: $500.00 per calendar day
4. Structural Engineer: $500.00 per calendar day
5. Fire Chief: $500.00 per calendar day
(ii) Total Liability Cap: The total liquidated damages assessed for any single vacancy occurrence shall not exceed $75,000.00.
(iii) Method of Collection and Remedies: Liquidated damages shall accrue daily until the individual is on-site and performing the duties, the cap is reached, or until the Government and Contractor reach a mutually agreed-upon alternative remedy. The total accrued amount shall be collected by the Government via a unilateral deduction (offset) from the Contractor's next available monthly invoice for CLIN 0001 - Program Management & Integration
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