Page_2_-Amendment_No._0003.doc

Request for Proposal

Solicitation No. HSCG85-13-R-P45N36 Dry-dock & Repairs of CGC BERTHOLF (WMSL 750)

Amendment No. 0003

The purpose of this amendment is as follows:

a.

The following is the response to a Request for Clarifications:

QUESTION NO. 2: Work Item O-23, Propulsion Shafting, Remove, Inspect & Reinstall; While our drydock is capable of safely docking the BERTHOLF, we would have to modify the drydock to accommodate removal of the vessel's tail shafts (Item O-23 Propulsion Shafting). Would the Coast Guard be agreeable to funding the cost of modifications (either in the original bid or through a change order after the fact).

ANSWER: The Coast Guard will not be able to determine whether the work called out by item O-23 - Propulsion Shafting is necessary until after the cutter has been dry docked. Pricing for item O-23 - Propulsion Shafting must include any and all costs necessary to accomplish the work of item O-23. Since you state that you would have to modify your drydock facilities to accomplish O-23, all costs for those modifications must be included in your proposal for item O-23. Note that the specification states that the Coast Guard has until midnight, 6 JAN 2014 to exercise the option, and that if the option is exercised by that deadline no schedule extension will be granted. If you determine that you must begin the required modifications before midnight on 6 JAN 2014 in order to be able to complete the work without extension to the period of performance, and the Coast Guard subsequently determines that it will not exercise item O-23, you will not be entitled to any costs you have incurred for the modifications to your dock. The Coast Guard will not agree to funding modifications to a dry dock facility as a change order after award.

b.

The contract clause entitled “Composite Labor Rate” shown on pages 4 & 5 of Attachment 3 of the solicitation is changed to read to read as follows:

COMPOSITE LABOR HOUR RATE FOR CONTRACT CHANGES

A. The composite labor hour rate offer in Schedule of Items-Supplies or Services – Prices shall be the sole labor hour rate used to price the prime contractor's direct labor hours for all contract changes, whether growth within scope or new work. The contractor shall not receive any compensation in addition to this rate for prime contractor's direct labor associated with changes under this contract.

B. The composite labor hour rate shall represent total compensation for the following: direct labor; any port or association fees, rents or other levies; all overhead and general and administrative costs; profit; and all direct and indirect costs and profit associated with following support functions:

Supervision Quality Assurance

Planning Engineering

Surveyors Fire Watch

Transportation/Drivers Worker Transit Time

Material Handling Testing

Cleaners Guards

Estimating Contract Administration

C. The composite labor hour rate will be used in pricing production labor hours, which shall include only those hours necessary and reasonable to perform direct production functions, and will not include the support functions listed above, whether such support functions are normally charged directly or indirectly by the contractor's accounting system. These support functions are to be priced into the composite labor rate and shall not be separately compensated.

D. This clause shall not affect the other rights of the parties under FAR 52.212-4, paragraph (c), CHANGES, including the right of the Contracting Officer to issue unilateral change orders, and the right of the contractor to request equitable adjustment.

E. The Estimated Quantity indicated by the Government in Schedule of Items, CLIN 0003 and CLIN 0006, is an estimate only, and the Extended Amount indicated by the offeror in these CLINs are not ordered by award of a contract pursuant to this solicitation. The Estimated Quantity represents the Government's best estimate of the total number of hours that will be required. The actual number of hours may be greater or less.

b.

The due date for submission of proposal is extended until 22 October 2013 at 2:00 P.M., Pacific Standard Time.

c.

All other terms and conditions cited in the solicitation will remain unchanged.