Atch-2_H-Clauses_Oct14.docx

SECTION H

SPECIAL CONTRACT REQUIREMENTS

C2ISR H001- MTS-A/MTS-B FLEXIBLE SUSTAINMENT PROCEDURES FOR ANNUAL FLYING HOUR ADJUSTMENTS (Oct 2014)

a) The basic negotiated cost and fee amounts of this contract are based on flight hour (FH) requirements as levied by the lead command set forth in Attachment 1, Performance Work Statement, (dated), table 1.1. In the event actual flying hours for a given year differ by more than 15% (higher or lower) from anticipated levels, the parties shall negotiate an upward or downward adjustment to the estimated agreed upon cost and fee amounts of this contract. Any upward adjustment must be accompanied by funded modification. Contracted FHs shall not be increased without a funded modification to increase FH.

b) CLINs X018, X019, and X020 are subject to this flight hour adjustment:

c) The parties will make an assessment to determine if an adjustment is appropriate no later than 31 August 2013. The cost and fee for a given contract year may be assessed and adjusted no more than twice per year, if warranted under the terms of this clause. This assessment will be based on actual flight hours to date and a projection of the fleet performance remaining for the given fiscal year. Any adjustment pursuant to this clause shall be negotiated and made binding via a bi-lateral modification.

d) An example of a proposed FH adjustment mod under this clause is as follows: In July of the given contract year, FHs for MQ-1 CONUS are estimated to change from 15,000 FHs to 14,000 FHs, based on actual hours flown and projected FHs for the rest of the given contract year. Since the resultant change is a 1,000 FH decrease, or a 6.6% decrease, then the FHA clause is applicable.

Therefore the decrease shall be as follows:

FROM:

DEPOT REPAIR CLS MTS-A

TO:

DEPOT REPAIR CLS MTS-A

The negotiated amount of $9,375,000 for 15,000 FHs equates to $625 per FH. The CPFH of $625 multiplied by the new 14,000 flight hours returns a new CLIN value of $8,750,000. A decrease of $625,000.00 for CLIN 011.

C2ISR-H002 BASE SUPPORT (October 2011)

Base support may be provided by the Government to the Contractor in accordance with this provision.

(a)Base support includes Government-controlled working space, material, equipment, services (including automatic data processing), or other support (excluding use of the Defense Switched Network (DSN)) which the Government determines can be made available at, or through, any Air Force installation where this contract shall be performed. All Government property in the possession of the Contractor, provided through the base support provision, shall be used and managed in accordance with the Government Property clauses.

(b)Unless otherwise stipulated in the contract schedule, all support shall be provided on a no-charge-for-use basis and the value shall be a part of the Government’s contract consideration.

(c )The Contractor agrees to immediately report (with a copy to the cognizant CAO) inadequacies, defective Government-Furnished Property (GFP), or non-availability of support stipulated by the contract schedule, together with a recommended plan for obtaining the required support. Facilities shall not be purchased under this provision. Additionally, the Contractor (or authorized representative) shall not purchase, or otherwise furnish any base support requirement provided by the provision (or authorize others to do so), without prior written approval of the Contracting Officer regarding the price, terms, and conditions of the proposed purchase, or approval of other arrangements.

(d)Following are installations where base support will be provided (insert list of installations).

(e)The Government support that may be furnished under this contract is (insert list of support items). Because of the nature and location(s) of the work performed, the value of such equipment is undeterminable. The Contractor shall not incur any cost resulting from nonsupport prior to Contracting Officer concurrence in accordance with this provision. Any failure by the Government to provide Base Support does not relieve the Contractor of the obligation to perform on this contract.

C2ISR-H003 END ITEMS BEYOND ECONOMICAL REPAIR (October 2011)

(a)“Economically Reparable End Items” are defined as end items which can be restored to a serviceable condition, in accordance with applicable requirements, when costs of repair will not exceed 75% of the Stock List Price specified in the contract. If the contractor estimates the total cost of the repair and/or overhaul of any end item received will exceed the above percentage of the Stock List Price, the Contractor shall promptly notify the Administrative Contracting Officer (ACO) in writing justifying why the item is Beyond Repair (BER) and shall not perform further services on any such items except at the direction of the ACO. Upon receipt of the written notification that a particular item is not reparable, the contractor shall dispose of the unit in the manner directed by the ACO.

(b)The Procuring Contracting Officer (PCO) may authorize the Contractor, through the Administrative Contracting Officer (ACO), to exceed the percentage of the Stock List Price in subparagraph (a) above when an item is in critical supply status.

GFE

Raytheon is authorized Rent Free Use of GFE MTS-A&B TUs and EUs to support repairs and engineering investigations. Raytheon is authorized to consume GFE CLS Parts and Components from FA8620-06-G-4041, Delivery Orders 0003, 0007, 0009, 0011, 0019 and FA8620-11-G-4050 Delivery Order 0002. Raytheon is granted Rent Free Use of Government Tooling and Test Equipment accountable under FA8620-06-G-4041 and FA8620-11-G-4050.