FA852314R30015______0002.pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

1. CONTRACT ID CODE

JLU

2. AMENDMENT/MODIFICATION NO.

FA8523-14-R-30015-0002

3. EFFECTIVE DATE

29 OCT 2014

4. REQUISITION/PURCHASE REQ. NO.

FD20601430015

5. PROJECT NO (If applicable)

6. ISSUED BY CODE

EW/AVIONICS, AFLCMC/WNKCA

235 BYRON ST STE 19A

BLDG 301 CML PHN 478 926 7212

ROBINS AFB GA 31098-1670

BUYER: Katie E. Davidson/WNKCB

Katie.Davidson@robins.af.mil No Collect Calls

7. ADMINISTERED BY (If other than item 6) CODE

FA8523

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

CODE

X

9A. AMENDMENT OF SOLICITATION NO.

FA852314R30015

9B. DATED (SEE ITEM 11)

15-OCT-2014

10A. MODIFICATION OF CONTRACT/ORDER NO.

10B. DATED (SEE ITEM 13)

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

The above numbered solicitation is amended as set forth in item 14. The hour and date specified for receipt of Offers is extended, is not extended. Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods. ( a ) By completing Items 8 and 15, and returning copies of the amendment; ( b ) By acknowledging receipt of this amendment on each copy of the offer submitted; or ( c ) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

12. ACCOUNTING AND APPROPRIATION DATA (If required)

13. THIS APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO AUTHORITY OF FAR 43.103(b).

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority)

E. IMPORTANT: Contractor is not, is required to sign this document and return 1 copies to the issuing office.

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

ROUTINE

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

15B. CONTRACTOR/OFFEROR

BY ________________________________________________________

(Signature of person authorized to sign)

15C. DATE SIGNED

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

16B. UNITED STATES OF AMERICA

BY ____________________________________________________

(Signature of Contracting Officer)

16C. DATE SIGNED

FACILITY CODE

NSN 7540-01-152-8070

PREVIOUS EDITION UNUSABLE

30-105 STANDARD FORM 30 (REV. 10-83)

PRESCRIBED BY GSA

FAR (48 CFR) 53.243

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

Amendment/Modification FA8523-14-R-30015-0002

Continuation of block 14. DESCRIPTION OF AMENDMENT/MODIFICATION

The purpose of this amendment is to revise the instructions on the Face Page of the Solicitation, revise the Period of Performance, Delivery Schedule and administrative details for the Contract Line Item Numbers (CLINs) specified below, incorporate an additional clause, incorporate a revised Statement of Work, and provide instructions for the Model Specification for the AC/MC-130J Radio Frequency Countermeasures Program.

A. Face Page is hereby revised as follows:

FROM:

Subject to the the terms and conditions stated herein, the Contractor agrees to hold its offered prices firm for 120 days.

2) Please notice Appendix C, Industrial Safety and Health Requirements and the requirement to submit Contractor Safety and Health Plan with your proposal. You MUST include this Contractor Safety and Health Plan with your proposal.

TO:

Subject to the the terms and conditions stated herein, the Contractor agrees to hold its offered prices firm for 365 days.

2) Please notice Appendix C, Industrial Safety and Health Requirements and the requirement to submit Contractor Safety and Health Plan with your proposal. You MUST include this Contractor Safety and Health Plan with your proposal. This submission shall be submitted with Volume I.

7) Ensure to update RFCM Critical Technology Demonstration Plan, Version 1, dated 12 Sep 2014, to delete paragraph 2.1.3. Paragraph 2.1.3 is not applicable.

8) Ensure to update Attachment 3a_CLINs CostPrice_Initial Submittal to delete Column A 'Time Period to Allowed to Exercise CLIN' and Tab 2 'Quantities' as this information is no longer valid.

B. The following CLINs are hereby restated, and shall be completed and returned with each offeror's proposal, as stated below in Section B, Supplies or Services and Prices/Costs.

CLIN 1007AA, Mission Data Test Station (MDTS) CLIN 1007AB, Stand Alone Control & Display CLIN 1007AC, Breakout Box CLIN 4001AA, Group A CLIN 4001AB, Group B CLIN 4002, LRIP Spares (Group B LRU) CLIN 5001AA, Group A CLIN 5001AB, Group B CLIN 5002AA, Group A CLIN 5002AB, Group B CLIN 5003AA, Group A CLIN 5003AB, Group B CLIN 5007, 1 - FRP Spares (Group B) CLIN 5008, 2 - FRP Spares (Group B) CLIN 5009, 3 - FRP Spares (Group B)

C. Section I, Contract Clauses, is hereby revised as follows:

FAR 52.248-1 Value Engineering is incorporated.

D. Section J, List of Attachments, is hereby revised as follows:

1. Statement of Work_Rev 4, incorporated with RFP dated 15 Oct 2014, is deleted in its entirety.

Amendment/Modification FA8523-14-R-30015-0002

2. Statement of Work_Rev 7, is incorporated.

E. (U) Model Specification for the AC/MC-130J Radio Frequency Countermeasures Program, version 3.2 dated 24 Sep 2014, located in the CLASSIFIED part of the Bidder's Library shall be updated as follows:

Offerors are required to replace the language in the Model Specification for the following SRD Elements with correct language below:

3.9.18 SRD_380 (U) The RFCM System design and equipment installations must be compatible with current aircraft operations, and aircrew tasks and workload requirements (Reference: AC/MC-130J Workload Analysis).

3.9.18 SRD_285 (U) Installation of the RFCM System shall not protrude into the cargo envelope and permit existing cargo loading and payload capabilities of the aircraft (T).

3.9.18 SRD_1529 (U) All RFCM System LRUs shall be accessible for maintenance directly or by removal of a panel or radome (O).

Request for Proposal FA8523-14-R-30015-0002

PART I - THE SCHEDULE

SECTION B

SUPPLIES OR SERVICES AND PRICES/COSTS

Mission Data Test Station (MDTS)

Item No.

1007AA

Cost Plus Fixed Fee Quantity U/I Estimated Cost Fixed Fee Est Total Cost

1 EA

AC64

Mission Data Test Station (MDTS)

IAW SOW 3.1.1.2.

Limitations of Liability: Other Than High Value Item

Inspection: Destination Acceptance: Destination Inspection/Acceptance Report: Receiving Report Required

Quality Assurance: Standard Inspection Place of Perf Quantity (U/I) *ARO IAW SOW _ Req No / Pri Required Period of Performance

A FY2266 1 EA

Proposed

A FY2266 1 EA

Stand Alone Control & Display

1007AB

2 ST

IAW SOW 3.1.1.1, 3.2.3.5.

Inspection/Acceptance Report: Receiving Report Required

Quality Assurance: Standard Inspection Place of Perf Quantity (U/I) *ARO Exercise of

Option _ Req No / Pri

Required

A FY2266 2 ST

*12 Months

Breakout Box

1007AC

Breakout Box

IAW SOW 3.2.1.

Inspection/Acceptance Report: Receiving Report Required

Quality Assurance: Standard Inspection Place of Perf Quantity (U/I) *ARO Exercise of

Option _ Req No / Pri

Required

*12 Months

Group A

4001AA

Incentive Firm Target From

Quantity U/I To Quantity U/I Unit Price

1 ST 14 ST

IAW SOW paragraph 4.1.

Inspection: Origin Acceptance: Origin Inspection/Acceptance Report: Receiving Report Required

Quality Assurance: Standard Inspection Place of Perf Quantity (U/I) *ARO Exercise of

Option _ Req No / Pri

Required

14 ST

*16 Months

14 ST

Group B

4001AB

Quantity

1 ST 12 ST

Inspection/Acceptance Report: Receiving Report Required

Quality Assurance: Standard Inspection Place of Perf Quantity (U/I) *ARO Exercise of

Option _ Req No / Pri

Required

12 ST

*18 Months

LRIP Spares (Group B Line Replaceable Units (LRU))

Quantity U/I Target Cost Target Profit Target Price

Inspection/Acceptance Report: Receiving Report Required

Quality Assurance: Standard Inspection Place of Perf Quantity (U/I) *ARO Exercise of

Option _ Req No / Pri

Required

5001AA

Firm Fixed Price

Quantity

IAW SOW paragraph 4.2.

Inspection/Acceptance Report: Receiving Report Required

Quality Assurance: Standard Inspection Type / Ship To Quantity (U/I) *ARO Exercise of

Option _ Req No / Pri

Required Delivery

1 ST

*16 Months

Delivery

1 ST

5001AB

Quantity

1 ST 9 ST

Inspection/Acceptance Report: Receiving Report Required

Quality Assurance: Standard Inspection Place of Perf Quantity (U/I) *ARO Exercise of

Option _ Req No / Pri

Required

9 ST

5002AA

Quantity

Inspection/Acceptance Report: Receiving Report Required

Quality Assurance: Standard Inspection Place of Perf Quantity (U/I) *ARO Written

Notice of Award _ Req No / Pri

Required

5002AB

Quantity

Inspection/Acceptance Report: Receiving Report Required

Quality Assurance: Standard Inspection Place of Perf Quantity (U/I) *ARO Written

Notice of Award _ Req No / Pri

Required

5003AA

Quantity

Inspection/Acceptance Report: Receiving Report Required

Quality Assurance: Standard Inspection Place of Perf Quantity (U/I) *ARO Exercise of

Option _ Req No / Pri

Required

5003AB

Quantity

Inspection/Acceptance Report: Receiving Report Required

Quality Assurance: Standard Inspection Place of Perf Quantity (U/I) *ARO Exercise of

Option _ Req No / Pri

Required

1 - FRP Spares (Group B)

Quantity U/I Unit Price Amount

Inspection/Acceptance Report: Receiving Report Required

Quality Assurance: Standard Inspection

Place of Perf Quantity (U/I) *ARO Exercise of Option

_ Req No / Pri

Required

2 - FRP Spares (Group B)

3 ST

2 - FRP Spares (Group B)

Inspection/Acceptance Report: Receiving Report Required

Quality Assurance: Standard Inspection Place of Perf Quantity (U/I) *ARO Exercise of

Option _ Req No / Pri

Required

3 - FRP Spares (Group B)

Inspection/Acceptance Report: Receiving Report Required

Quality Assurance: Standard Inspection Place of Perf Quantity (U/I) *ARO Exercise of

Option _ Req No / Pri

Required

SHIP TO / PLACE OF PERFORMANCE

TYPE/CODE: A FY2266

FY2266 577 SMXS FLT H DCGS

BLDG 229

280 BYRON ST

ROBINS AFB GA 31098-1610

MARK FOR: (See Individual Line Item) REQUISITION NUMBER: (See Individual Line Item) REQUISITION PRIORITY: (See Individual Line Item)

AWARD NUMBER:

PART II - CONTRACT CLAUSES

SECTION I

CONTRACT CLAUSES

52.248-1 VALUE ENGINEERING (OCT 2010)

(IAW FAR 48.201(b), FAR 48.201(f))

(a) General. The Contractor is encouraged to develop, prepare, and submit value engineering change proposals

(VECP's) voluntarily. The Contractor shall share in any net acquisition savings realized from accepted VECP's, in accordance with the incentive sharing rates in paragraph (f) below.

(b) Definitions.

"Acquisition savings," as used in this clause, means savings resulting from the application of a VECP to contracts awarded by the same contracting office or its successor for essentially the same unit. Acquisition savings include--

(1) Instant contract savings, which are the net cost reductions on this, the instant contract, and which are equal to the instant unit cost reduction multiplied by the number of instant contract units affected by the VECP, less the Contractor's allowable development and implementation costs;

(2) Concurrent contract savings, which are net reductions in the prices of other contracts that are definitized and ongoing at the time the VECP is accepted; and

(3) Future contract savings, which are the product of the future unit cost reduction multiplied by a number equal to the quantity to be delivered over a period of between 36 and 60 consecutive months (set at the discretion of the Contracting Officer or each VECP) that spans the highest planned production, based on planning and programming or production documentation at the time the VECP is accepted.. On an instant contract, future contract savings include savings on increases in quantities after VECP acceptance that are due to contract modifications, exercise of options, additional orders, and funding of subsequent year requirements on a multiyear contract.

"Collateral savings," as used in this clause, means those measurable net reductions resulting from a VECP in the agency's overall projected collateral costs, exclusive of acquisition savings, whether or not the acquisition cost changes.

"Contracting office" includes any contracting office that the acquisition is transferred to, such as another branch of the agency or another agency's office that is performing a joint acquisition action.

"Contractor's development and implementation costs," as used in this clause, means those costs the Contractor incurs on a VECP specifically in developing, testing, preparing, and submitting the VECP, as well as those costs the Contractor incurs to make the contractual changes required by Government acceptance of a VECP.

"Future unit cost reduction," as used in this clause, means the instant unit cost reduction adjusted as the Contracting Officer considers necessary for projected learning or changes in quantity during the sharing period. It is calculated at the time the VECP is accepted and applies either--

(1) Throughout the sharing period, unless the Contracting Officer decides that recalculation is necessary because conditions are significantly different from those previously anticipated; or

(2) To the calculation of a lump-sum payment, which cannot later be revised.

"Government costs," as used in this clause, means those agency costs that result directly from developing and implementing the VECP, such as any net increases in the cost of testing, operations, maintenance, and logistics support. The term does not include the normal administrative costs of processing the VECP or any increase in this contract's cost or price resulting from negative instant contract savings.

"Instant contract," as used in this clause, means this contract, under which the VECP is submitted. It does not include increases in quantities after acceptance of the VECP that are due to contract modifications, exercise of options, or additional orders. If this is a multiyear contract, the term does not include quantities funded after VECP acceptance. If this contract is a fixed-price contract with prospective price redetermination, the term refers to the period for which firm prices have been established.

"Instant unit cost reduction" means the amount of the decrease in unit cost of performance (without deducting any Contractor's development or implementation costs) resulting from using the VECP on this, the instant contract. If this is a service contract, the instant unit cost reduction is normally equal to the number of hours per line-item task saved by using the VECP on this contract, multiplied by the appropriate contract labor rate.

"Negative instant contract savings" means the increase in the cost or price of this contract when the acceptance of a VECP results in an excess of the Contractor's allowable development and implementation costs over the product of the instant unit cost reduction multiplied by the number of instant contract units affected.

"Net acquisition savings" means total acquisition savings, including instant, concurrent, and future contract savings, less Government costs.

"Sharing base," as used in this clause, means the number of affected end items on contracts of the contracting office accepting the VECP.

"Sharing period," as used in this clause, means the period beginning with acceptance of the first unit incorporating the VECP and ending at a calendar date or event determined by the contracting officer for each VECP.

"Unit," as used in this clause, means the item or task to which the Contracting Officer and the Contractor agree the VECP applies.

"Value engineering change proposal (VECP)" means a proposal that--

(1) Requires a change to this, the instant contract, to implement; and

(2) Results in reducing the overall projected cost to the agency without impairing essential functions or characteristics; provided, that it does not involve a change--

(i) In deliverable end item quantities only;

(ii) In research and development (R&D) end items or R&D test quantities that is due solely to results of previous testing under this contract; or

(iii) To the contract type only.

(c) VECP preparation. As a minimum, the Contractor shall include in each VECP the information described in subparagraphs (c)(1) through (8) below. If the proposed change is affected by contractually required configuration management or similar procedures, the instructions in those procedures relating to format, identification, and priority assignment shall govern VECP preparation. The VECP shall include the following:

(1) A description of the difference between the existing contract requirement and the proposed requirement, the comparative advantages and disadvantages of each, a justification when an item's function or characteristics are being altered, the effect of the change on the end item's performance, and any pertinent objective test data.

(2) A list and analysis of the contract requirements that must be changed if the VECP is accepted, including any suggested specification revisions.

(3) Identification of the unit to which the VECP applies.

(4) A separate, detailed cost estimate for (i) the affected portions of the existing contract requirement and (ii) the VECP. The cost reduction associated with the VECP shall take into account the Contractor's allowable development and implementation costs, including any amount attributable to subcontracts under the Subcontracts paragraph of this clause, below.

(5) A description and estimate of costs the Government may incur in implementing the VECP, such as test and evaluation and operating and support costs.

(6) A prediction of any effects the proposed change would have on collateral costs to the agency.

(7) A statement of the time by which a contract modification accepting the VECP must be issued in order to achieve the maximum cost reduction, noting any effect on the contract completion time or delivery schedule.

(8) Identification of any previous submissions of the VECP, including the dates submitted, the agencies and contract numbers involved, and previous Government actions, if known.

(d) Submission. The Contractor shall submit VECP's to the Contracting Officer, unless this contract states otherwise. If this contract is administered by other than the contracting office, the Contractor shall submit a copy of the VECP simultaneously to the Contracting Officer and to the Administrative Contracting Officer.

(e) Government action.

(1) The Contracting Officer will notify the Contractor of the status of the VECP within 45 calendar days after the contracting office receives it. If additional time is required, the Contracting Officer will notify the Contractor within the 45-day period and provide the reason for the delay and the expected date of the decision. The Government will process VECP's expeditiously; however, it will not be liable for any delay in acting upon a

VECP.

(2) If the VECP is not accepted, the Contracting Officer will notify the Contractor in writing, explaining the reasons for rejection. The Contractor may withdraw any VECP, in whole or in part, at any time before it is accepted by the Government. The Contracting Officer may require that the Contractor provide written notification before undertaking significant expenditures for VECP effort.

(3) Any VECP may be accepted, in whole or in part, by the Contracting Officer's award of a modification to this contract citing this clause and made either before or within a reasonable time after contract performance is completed. Until such a contract modification applies a VECP to this contract, the Contractor shall perform in accordance with the existing contract. The decision to accept or reject all or part of any VECP is a unilateral decision made solely at the discretion of the Contracting Officer.

(f) Sharing rates. If a VECP is accepted, the Contractor shall share in net acquisition savings according to the percentages shown in the table below. The percentage paid the Contractor depends upon--

(1) This contract's type (fixed-price, incentive, or cost-reimbursement);

(2) The sharing arrangement specified in paragraph (a) above (incentive, program requirement, or a combination as delineated in the Schedule); and

(3) The source of the savings (the instant contract, or concurrent and future contracts), as follows:

CONTRACTOR'S SHARE OF NET ACQUISITION SAVINGS

(Figures in Percent)

Sharing Arrangement

Incentive (Voluntary) Program Requirement (Mandatory)

Contract Type Instant Contract Concurrent and Future Contract Rate

Instant Contract Rate Concurrent and Future Contract Rate

Fixed-price (includes fixed-price-award-fee ; excludes other fixed-price incentive contracts)

*50 *50 25 25

Incentive (fixed-price or cost) (other than award fee)

(**) *50 (**) 25

Cost-reimbursement (includes cost-plus-award-fee;

excludes other cost-type incentive contracts)

***25 ***25 15 15

* The Contracting Officer may increase the Contractor's sharing rate to as high as 75 percent for each VECP.

** Same sharing arrangement as the contract's profit or fee adjustment formula.

*** The Contracting Officer may increase the Contractor's sharing rate to as high as 50 percent for each VECP.

(g) Calculating net acquisition savings.

(1) Acquisition savings are realized when (i) the cost or price is reduced on the instant contract, (ii) reductions are negotiated in concurrent contracts, (iii) future contracts are awarded, or (iv) agreement is reached on a lump-sum payment for future contract savings (see subparagraph (i)(4) below). Net acquisition savings are first realized, and the Contractor shall be paid a share, when Government costs and any negative instant contract savings have been fully offset against acquisition savings.

(2) Except in incentive contracts, Government costs and any price or cost increases resulting from negative instant contract savings shall be offset against acquisition savings each time such savings are realized until they are fully offset. Then, the Contractor's share is calculated by multiplying net acquisition savings by the appropriate Contractor's percentage sharing rate (see paragraph (f) of this clause). Additional Contractor shares of net acquisition savings shall be paid to the Contractor at the time realized.

(3) If this is an incentive contract, recovery of Government costs on the instant contract shall be deferred and offset against concurrent and future contract savings. The Contractor shall share through the contract incentive structure in savings on the instant contract items affected. Any negative instant contract savings shall be added to the target cost or to the target price and ceiling price, and the amount shall be offset against concurrent and future contract savings.

(4) If the Government does not receive and accept all items on which it paid the Contractor's share, the Contractor shall reimburse the Government for the proportionate share of these payments.

(h) Contract adjustment. The modification accepting the VECP (or a subsequent modification issued as soon as possible after any negotiations are completed) shall--

(1) Reduce the contract price or estimated cost by the amount of instant contract savings, unless this is an incentive contract;

(2) When the amount of instant contract savings is negative, increase the contract price, target price and ceiling price, target cost, or estimated cost by that amount;

(3) Specify the Contractor's dollar share per unit on future contracts, or provide the lump-sum payment;

(4) Specify the amount of any Government costs or negative instant contract savings to be offset in determining net acquisition savings realized from concurrent or future contract savings; and

(5) Provide the Contractor's share of any net acquisition savings under the instant contract in accordance with the following:

(i) Fixed-price contracts--add to contract price.

(ii) Cost-reimbursement contracts--add to contract fee.

(i) Concurrent and future contract savings.

(1) Payments of the Contractor's share of concurrent and future contract savings shall be made by a modification to the instant contract in accordance with subparagraph (h)(5) above. For incentive contracts, shares shall be added as a separate firm-fixed-price line item on the instant contract. The Contractor shall maintain records adequate to identify the first delivered unit for 3 years after final payment under this contract.

(2) The Contracting Officer shall calculate the Contractor's share of concurrent contract savings by--

(i) Subtracting from the reduction in price negotiated on the concurrent contract any Government costs or negative instant contract savings not yet offset; and

(ii) Multiplying the result by the Contractor's sharing rate.

(3) The Contracting Officer shall calculate the Contractor's share of future contract savings by--

(i) Multiplying the future unit cost reduction by a number equal to the quantity required to be delivered over a period of between 36 and 60 consecutive months (set at the discretion of the Contracting Officer for each VECP) that spans the highest planned production, based on planning and programming or production documentation at the time the VECP is accepted;

(ii) Subtracting any Government costs or negative instant contract savings not yet offset; and

(iii) Multiplying the result by the Contractor's sharing rate.

(4) When the Government wishes and the Contractor agrees, the Contractor's share of future contract savings may be paid in a single lump sum rather than in a series of payments over time as future contracts are awarded. Under this alternate procedure, the future contract savings may be calculated when the VECP is accepted, on the basis of the Contracting Officer's forecast of the number of units that will be delivered during the sharing period. The Contractor's share shall be included in a modification to this contract (see subparagraph (h)(3) above) and shall not be subject to subsequent adjustment.

(5) Alternate no-cost settlement method. When, in accordance with subsection 48.104-4 of the Federal Acquisition Regulation, the Government and the Contractor mutually agree to use the no-cost settlement method, the following applies:

(i) The Contractor will keep all the savings on the instant contract and on its concurrent contracts only.

(ii) The Government will keep all the savings resulting from concurrent contracts placed on other sources, savings from all future contracts, and all collateral savings.

(j) Collateral savings. If a VECP is accepted, the Contracting Officer will increase the instant contract amount, as specified in subparagraph (h)(5) of this clause, by a rate from 20 to 100 percent, as determined by the Contracting Officer, of any projected collateral savings determined to be realized in a typical year of use after subtracting any Government costs not previously offset. However, the Contractor's share of collateral savings will not exceed the contract's firm-fixed-price, target price, target cost, or estimated cost, at the time the VECP is accepted, or $100,000, whichever is greater. The Contracting Officer will be the sole determiner of the amount of collateral savings.

(k) Relationship to other incentives. Only those benefits of an accepted VECP not rewardable under performance, design-to-cost (production unit cost, operating and support costs, reliability and maintainability), or similar incentives shall be rewarded under this clause. However, the targets of such incentives affected by the VECP shall not be adjusted because of VECP acceptance. If this contract specifies targets but provides no incentive to surpass them, the value engineering sharing shall apply only to the amount of achievement better than target.

(l) Subcontracts. The Contractor shall include an appropriate value engineering clause in any subcontract of $150,000 or more and may include one in subcontracts of lesser value. In calculating any adjustment in this contract's price for instant contract savings (or negative instant contract savings), the Contractor's allowable development and implementation costs shall include any subcontractor's allowable development and implementation costs, and any value engineering incentive payments to a subcontractor, clearly resulting from a VECP accepted by the Government under this contract. The Contractor may choose any arrangement for subcontractor value engineering incentive payments; provided, that the payments shall not reduce the Government's share of concurrent or future contract savings or collateral savings.

(m) Data. The Contractor may restrict the Government's right to use any part of a VECP or the supporting data by marking the following legend on the affected parts:

These data, furnished under the Value Engineering clause of contract ___________________, shall not be disclosed outside the Government or duplicated, used, or disclosed, in whole or in part, for any purpose other than to evaluate a value engineering change proposal submitted under the clause.

This restriction does not limit the Government's right to use information contained in these data if it has been obtained or is otherwise available from the Contractor or from another source without limitations.

If a VECP is accepted, the Contractor hereby grants the Government unlimited rights in the VECP and supporting data, except that, with respect to data qualifying and submitted as limited rights technical data, the Government shall have the rights specified in the contract modification implementing the VECP and shall appropriately mark the data. (The terms "unlimited rights" and "limited rights" are defined in Part 27 of the Federal Acquisition Regulation.)

(The above Clause/Provision has been modified.)

PART III - LIST OF DOCUMENTS, EXHIBITS, AND OTHER ATTACHMENTS

SECTION J

LIST OF ATTACHMENTS

Form Number Description/File Name Date Number of Pages NA Statement of Work_Rev 7

19SEP2014 67