HSTS04-08-R-CT1125.pdf

SOLICITATION, OFFER AND AWARD

1. THIS CONTRACT IS A RATED ORDER

UNDER DPAS (15 CFR 350)

RATING

PAGE OF

│ 1 PAGES 38

2. CONTRACT NO.

3. SOLICITATION NO.

HSTS04-08-R-CT1125

4. TYPE OF SOLICITATION

[ ] SEALED BID (IFB)

[X] NEGOTIATED (RFP)

5. DATE ISSUED

See Block 28

6. REQUISITION/PURCHASE

NO.

See Schedule G.3

7. ISSUED BY

8. ADDRESS OFFER TO (If other than Item 7)

Transportation Security Administration Office of Acquisition TSA-25 701 South 12th Street Arlington, VA 22202 ATTN: Samantha M. Gray

See Block 7

NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder"

SOLICITATION

9. Sealed offers in original and copies for furnishing the supplies or services in the Schedule will be received at the place specified in item 8, or if hand carried, in the depository located in item 7 until local time

(Hour) (Date) SEE SECTION L.4 CAUTION - LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-10 All offers are subject to all terms and conditions contained in this solicitation.

10. FOR INFORMATION

CALL:

A. NAME

Samantha M. Gray

B. TELEPHONE NO. (Include area code) (NO COLLECT CALLS)

(571) 227-4174

11. TABLE OF CONTENTS

SEC.

DESCRIPTION

PAGE (S)

SEC.

DESCRIPTION

PAGE (S)

PART I - THE SCHEDULE

PART II - CONTRACT CLAUSES

X

A

SOLICITATION/CONTRACT FORM

I

CONTRACT CLAUSES

14-19

B

SUPPLIES OR SERVICES AND PRICES/COSTS

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

C

DESCRIPTION/SPECS./WORK STATEMENT

3-6

J

LIST OF ATTACHMENTS

D

PACKAGING AND MARKING

PART IV - REPRESENTATIONS AND INSTRUCTIONS

E

INSPECTION AND ACCEPTANCE

F

DELIVERIES OR PERFORMANCE

8-9

K

REPRESENTATIONS, CERTIFICATIONS, AND OTHER

STATEMENTS OF OFFERORS

20-28

G

CONTRACT ADMINISTRATION DATA

9-13

L

INSTRS., CONDS., AND NOTICES TO OFFERORS

28-34

H

SPECIAL CONTRACT REQUIREMENTS

13-14

M

EVALUATION FACTORS FOR AWARD

35-38

OFFER (Must be fully completed by offeror) NOTE: Item 12 does not apply if the solicitation includes the provisions in 52.214-16, Minimum Bid Acceptance Period.

12. In compliance with the above, the undersigned agrees, if this offer is accepted within calendar days (60 calendar days unless a different period is inserted by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the designated point(s), within the time specified in the schedule.

13. DISCOUNT FOR

PROMPT

PAYMENT

(See Section I, Clause 52-232-8)

10 CALENDAR DAYS

20 CALENDAR DAYS

30 CALENDAR DAYS

CALENDAR DAYS

AMENDMENT NO.

DATE

AMENDMENT NO.

DATE

14. ACKNOWLEDGMENT OF

AMENDMENTS

(The offeror acknowledges receipt of amendments to the SOLICITATION for offerors and related documents numbered and dated:)

15A. NAME

AND

CODE

FACILITY

ADDRESS

OF

OFFEROR

16 NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER (Type or print)

15B. TELEPHONE NO. (Include area code)

15C. CHECK IF REMITTANCE ADDRESS

IS DIFFERENT FROM ABOVE. ENTER

[ ] SUCH ADDRESS IN SCHEDULE

17. SIGNATURE

18. OFFER DATE

AWARD (To be completed by Government)

19. ACCEPTED AS TO ITEMS NUMBERED

See Schedule

20. AMOUNT

21. ACCOUNTING AND APPROPRIATION

See Schedule G.3

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION:

[ ] 10 U.S.C. 2304(c)( ) [ ] 41 U.S.C. 253(c)( )

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

(4 copies unless otherwise specified)

See Schedule G.2

ITEM

51800

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

25. PAYMENT WILL BE MADE BY CODE:

Commanding Officer CG Finance Center 1430A Kristina Way Chesapeake VA 23326-0624

26. NAME OF CONTRACTING OFFICER (Type or print)

27. UNITED STATES OF AMERICA

(Signature of Contracting Officer)

28. AWARD DATE

IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice

NSN 7540-01-152-8064

PREVIOUS EDITION NOT USABLE

33-134

STANDARD FORM 33 (REV. 4-85)

Prescribed by GSA FAR (48 CFR) 53.214(c)

Section B- Supplies or Services and Prices/Costs

The Government contemplates the award of a Firm Fixed Price Contract for the supplies and services described in Section C of this solicitation.

SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS

19.

ITEM

NO.

20.

SCHEDULE OF SUPPLIES/SERVICES

21.

QUANTITY

22.

UNIT

PRICE

24.

AMOUNT

Stationary Gantry/ Fixed Source System 1

JB $ $

Data 1

JB

NSP NSP

Option I

Option

Optional Task 1- Monthly Technical/Engineering On-Site Support (This CLIN should be price on a monthly basis and will be exercised upon delivery of the system, if found to be in the Governments best interest. The Government reserves the right to award up to 12 months of service.)

Month

Section C – Description/ Specifications/Work Statement

Statement of Objectives Stationary Gantry/Fixed Source Screening System

For Explosive Detection

C.1 INTRODUCTION

This Statement of Objectives (SOO) establishes top-level objectives for the development of a Stationary Gantry/Fixed Source Screening System (SG/FSSS) under the TSA’s Electronic Baggage Screening Program (EBSP). The EBSP will be seeking innovative ways to improve system throughput, reduce system cost, and improve system reliability and availability, while maintaining TSA security requirements.

SOO methodology is intended to provide maximum flexibility to offerors in developing cost-effective solutions and innovative approaches in meeting program objectives. This SOO is furnished in lieu of a government-written Statement of Work (SOW). A SOW, is to be developed and submitted by all offerors addressing the objectives contained herein. This SOO will not become a part of the resultant contract.

C.2 BACKGROUND

Existing Computed Tomography (CT) technology provides operators with reconstructed three-dimensional (3D) images of scanned items. In the checked baggage environment, currently installed CT systems provide these images at a limited throughput rate. As an alternative to a rotating gantry CT system, Stationary Gantry and Fixed Source Screening Systems (SG/FSSS) obtain images without resorting to mechanical rotation of the imaging source. For this reason, SG/FSSS has the potential to provide higher throughput levels while maintaining detection capabilities, and may provide reduced maintenance and lifecycle costs.

The action specified in this Statement of Objectives (SOO) will result in the engineering modifications of SG/FSSS from one or more vendors to enable the Transportation Security Administration (TSA) to evaluate the technology and the associated operational integration characteristics attendant with high volume throughput.

C.3 OVERALL SYSTEM OBJECTIVES

The TSA system performance objectives for the SG/FSSS include:

1) Establish next-generation system performance based on either

a. Computed tomography (CT) technology without using a mechanically rotating gantry, or

b. Using a fixed, multiple-source x-ray system with a minimum of two (2) screening views as part of the screening solution.

2) Demonstrate the capability of achieving a machine throughput of at least 800 bags per hour as defined in the TSA Planning Guidelines and Design Standards for Checked Baggage Inspection Systems, Version 1.0; October 10, 2007. [Provide link to PGDS]

3) Provide threat detection capability that allows the system to meet one of the following:(reference TSA Electronic Baggage Screening Program Requirements for Automated Detection of Explosives, rev 2.2; 03 November 2005).

a. Fully meets the Tier 1 detection requirements. (TSA Preferred)

b. Meets the Tier 1 Probability of Detection (Pd) and provides a machine False

Alarm Rate (FAR) that is equal to or less than two (2) times the Tier 1 requirement as measured by the TSL Certification Test.

NOTE: TSA is considering option (b) in a system of systems (SOS) approach. Any full SOS considered would have to be certified as a system AND show operational and cost benefits to the TSA before procurement and deployment options would be considered.

4) Generate an image of each bag screened, and provide the option of viewing only the images from suspected bags. The TSA strongly prefers 3-dimentional (3D) bag images.

5) Provide the following functions to support on-screen alarm resolution:

a. Permit a screener/operator to distinguish a 24-gauge wire under the 5/16 inch of 1100 aluminum using a Test Step Wedge specified in American Society for Testing and Materials (ASTM) Standard F792-82, and satisfy Federal Acquisition Regulation (FAR) Part 108.17 (a)(5);

b. Provide sufficient resolution for a screener/operator to accurately identify objects with rigid shapes, based on a database of known objects carried in checked baggage (e.g. hairdryers, laptop computers, shoes, etc.).

c. Provide images on the BVS that will be sufficient to assist alarm bag resolution by hand search by providing general reference location of alarm object(s) within the bag, general shape, and a means to correlate it with the bag that caused the alarm.

d. Indicate incomplete scans, such as corrupted images or split bags, and display a message indicating the appropriate action required. The system shall not allow corrupted events to occur for more than 1.0% of bags.

e. Provide an image archiver that:

Records color images of all bags scanned for a 24 hour period;

Displays archive image files in color on the Baggage Viewing Station (BVS) uponscreener/operator command.

Be upgradeable to allow for image quality improvements that will support the use of TSA On-Screen Alarm Resolution Procedures (OSARP).

f. Be designed in accordance with DOT/FAA/CT-03/05 HF STD-001 - “Human Factors Design Standard: Acquisition of Commercial Off-the-Shelf Subsystems, Non-developmental Items, and Developmental Systems (2003);”

g. Support an interface to a Baggage Handling System (BHS) via a Programmable Logic Controller (PLC).

h. Demonstrate Multiplex Networking (MUX) capability that supports a maximum system configuration of 40 screening systems, 40 Baggage Viewing Stations (BVSs), 110 Alternate Viewing Stations (AVSs), 110 bar code scanners, and 4 printers.

6) Utilize commercially available power, without introducing power spikes or surges back into the facility infrastructure, from a single drop of either 220 or 480 VAC, 110A.

7) Successfully achieve detection and throughput requirements when operating between 0°C (32oF) and 40°C (104oF) and 20% to 85% non condensing humidity. Any required heating and/or cooling equipment shall be provided as integrated components of the system

8) Provide sufficient shielding and protection to meet or exceed the applicable Food and Drug Administration (FDA) safety regulations for ionizing radiation

21 CFR 1020.33 for CT systems, or

21 CFR 1020.40 for X-Ray systems.

Meet the noise emissions standards defined in OSHA 29 CFR 1910.95.

9) Provides an Emergency Stop (E-Stop) capability that, when activated, stops;

All external moving part in three (3) seconds or less;

All internal moving parts in thirty (30) seconds or less; and

Stops any radiation or emissions within three (3) seconds.

10) Be designed in accordance with: DOT/FAA/CT-03/05 HF STD-001 - “Human Factors Design Standard: Acquisition of Commercial Off-the-Shelf Subsystems, Non-developmental Items, and Developmental Systems (2003);” and

11) Successfully achieves the Information Security Requirements as defined in:

a. TSA Management Directive 1400.3, TSA Information Security Policy.

b. FAA Order 1370.82, Information Systems Security program - June 9, 2000

c. DHS 4300A - Revision 2.1, Information Technology Security Policy - July 26,

d. Federal Information Security Management Act (FISMA) of 2002 - November 25,

e. NIST 800-37, Guide for the Security Certification and Accreditation of Federal

Information Systems - May 2004

f. Public Law 100-235, Computer Security Act of 1987 – January 8, 1988

g. Public Law 104-106, Clinger-Cohen Act of 1996 [formerly, Information

Technology Management Reform Act (ITMRA)] - February 10, 1996

12) Demonstrate an Inherent Availability (Ai) of 98% or higher, where

( )RepairMeanTimeToretweenFailuMeanTimeBe retweenFailuMeanTimeBeAi +

System component Mean-Time-Between-Failure (MTBF) values and Mean-Time-To- Repair (MTTR) values are established by the System Offeror, and are used to show how the system meets the stated Ai requirement.

13) Provides sufficient system-external physical protection to prevent damage or tampering with sensitive components, and utilize tamper evident seals on external access points to the system.

C.4 OPTION FOR TECHNICAL/ ENGINEERING ON-SITE SUPPORT

The Offeror shall include technical /engineering on-site support as an option in their proposal.

The proposal shall provide for service support/maintenance services at the TSA System Integration Facility (TSIF), which is located in Washington DC. The On-site support may be given verbally and or in person, depending on the level of effort needed to address the issue (s).

The Offeror shall include maintenance for the system for up to 12 months after delivery. The maintenance of the delivered test prototype shall include necessary parts and labor to perform preventive and corrective maintenance for up to 12 months after delivery. The normal operating hours for the TSIF is 6:30 AM EST to 7:00 PM EST. Occasionally, testing may be conducted outside of the normal business hours. It is preferred that Offerors respond within a 24 hour period of notification of any failure and or system inquires.

Additionally, the Offeror shall include training and familiarization of their final system. This training and familiarization shall describe the machine from an operational user point of view to the detailed, low- level internal workings of their hardware, firmware, and software.

C.5 BUSINESS OBJECTIVES

The TSA plans to procure SG/FSSS for a dedicated test and evaluation period that will support evaluation of the technology’s suitability for use in checked baggage systems.

The TSA program will consist of the following items:

Optimization of the selected system or technology hardware and software to meet theTSA’s objectives defined herein;

Purchase, delivery, and installation of one (1) prototype system at the TSA’s Systems Integration Facility (TSIF), located in Washington, DC. (Note, these systems are not production systems, and will be used by the TSA to only evaluate the performance capabilities and technical viability of SG/FS systems); and

The TSA shall maintain all rights to the raw image data produced by the prototype system, including all related data required to convert raw data into reconstructed images. This data shall be provided to TSA upon request, along with the means and methods to reconstruct and manipulate the images.

It is noted that performance under this contract will involve access to sensitive security information (SSI) and/or Classified information up to the level of CONFIDENTAL. The contractor shall ensure that all appropriate security and protection actions are taken. A DD- 254 will be included in the contract at time of award.

C.6 SCHEDULE OBJECTIVES

The prototype system preferred delivery is within twelve (12) months of contract award to support technology test and evaluation activities. Note: the actual delivery date is to be proposed by the Offeror.

Section D – Packaging and Marking

D.1 All supplies to be furnished under this contract shall be packed and marked in accordance with standard commercial practices as defined in ASTM-D-3951 for the packaging of supplies and equipment. The contractor shall ensure that packaging is sufficient to prevent damage to supplies and that shipping costs are minimized. The shipping documentation shall contain the following information:

a. TSA contract number

b. Contractor’s name and address

c. List of contents

d. Delivery Order number

e. Shipment Date

Section E – Inspection and Acceptance

E.1 CLAUSES INCORPORATED BY REFERENCE

52.246-2 Inspection of Supplies—Fixed-Price (AUG 1996) 52.246-2 Alternative I – Inspection of Supplies Fixed-Price (AUG 1996) 52.246-16 Responsibility for Supplies (APR 1984)

E.2 CLAUSES INCORPORATED IN FULL

52.246-15 Certificate of Conformance (Apr 1984)

(a) When authorized in writing by the cognizant Contract Administration Office (CAO), the

Contractor shall ship with a Certificate of Conformance any supplies for which the contract would otherwise require inspection at source. In no case shall the Government’s right to inspect supplies under the inspection provisions of this contract be prejudiced. Shipments of such supplies will not be made under this contract until use of the Certificate of Conformance has been authorized in writing by the CAO, or inspection and acceptance have occurred.

(b) The Contractor’s signed certificate shall be attached to or included on the top copy of the inspection or receiving report distributed to the payment office or attached to the CAO copy when contract administration (Block 10 of the DD Form 250) is performed by the Defense Contract Administration Services. In addition, a copy of the signed certificate shall also be attached to or entered on copies of the inspection or receiving report accompanying the shipment.

(c) The Government has the right to reject defective supplies or services within a reasonable time after delivery by written notification to the Contractor. The Contractor shall in such event promptly replace, correct, or repair the rejected supplies or services at the Contractor’s expense.

(d) The certificate shall read as follows:

I certify that on ______ [insert date], the ____ [insert Contractor’s name] furnished the supplies or services called for by Contract No._____ via ____ [Carrier] on ________ [identify the bill of lading or shipping document] in accordance with all applicable requirements. I further certify that the supplies or services are of the quality specified and conform in all respects with the contract requirements, including specifications, drawings, preservation, packaging, packing, marking requirements, and physical item identification (part number), and are in the quantity shown on this or on the attached acceptance document.

Date of Execution: ________________________________ Signature: _______________________________________ Title: ____________________________________________

Section F- Delivers or Performance

F.1 CLAUSES INCORPORATED BY REFERENCE

52.242-15 Stop-Work Order (APR 1984) 52.242-17 Government Delay of Work (APR 1984) 52.247-34 F.o.b. Destination (NOV 1991) 3052.247-72 F.o.b. destination only (DEC 2003)

F.2 CLAUSES INCORPORATED IN FULL

52.211-8 Time of Delivery (June 1997)

(a) The Government requires delivery to be made according to the following schedule:

Required Delivery Schedule

Item No. Quantity Within Days After Date of Contract 0001 1 Preferred Delivery is within 365 days 0002 1 As Required 0003 1 As Required The Government will evaluate equally, as regards time of delivery, offers that propose delivery of each quantity within the applicable delivery period specified above. Offers that propose delivery that will not clearly fall within the applicable required delivery period specified above, will be considered nonresponsive and rejected. The Government reserves the right to award under either the required delivery schedule or the proposed delivery schedule, when an offeror offers an earlier delivery schedule than required above. If the offeror proposes no other delivery schedule, the required delivery schedule above will apply.

Offeror’s Proposed Delivery Schedule Item No. Quantity Within Days After Date of Contract

(b) Attention is directed to the Contract Award provision of the solicitation that provides that a written award or acceptance of offer mailed, or otherwise furnished to the successful offeror, results in a binding contract. The Government will mail or otherwise furnish to the offeror an award or notice of award not later than the day award is dated. Therefore, the offeror should compute the time available for performance beginning with the actual date of award, rather than the date the written notice of award is received from the Contracting Officer through the ordinary mails. However, the Government will evaluate an offer that proposes delivery based on the Contractor’s date of receipt of the contract or notice of award by adding

(1) five calendar days for delivery of the award through the ordinary mails, or (2) one working day if the solicitation states that the contract or notice of award will be transmitted electronically. (The term “working day” excludes weekends and U.S. Federal holidays.) If, as so computed, the offered delivery date is later than the required delivery date, the offer will be considered nonresponsive and rejected.

(End of clause)

F.3 Period of Performance

The Period of Performance shall begin upon contract award and will end 24 months thereafter.

F.4 Place of Delivery

The CLIN Deliverables shall be delivered as follows:

CLIN 0001 – Stationary Gantry/Fixed Source System

TSA System Integration Facility 1 W Post Office Road

Washington DC 20001

CLIN 0002- Not Separately Priced Data -

Name: TBD Address: Department of Homeland Security Transportation Security Administration 701 South 12th Street Arlington, VA 22202

CLIN 0003- Maintenance (OPTION I)

TSA System Integration Facility 1 W Post Office Road

Washington DC 20001

* This section will be completed prior to contract award.

Section G- Contract Administration Data

G.1. Contract Administration Data

CONTRACTING OFFICER Samantha M. Gray 571-227-4174

CONTRACTING OFFICER’S

REPRESENTATIVE

CONTRACTOR’S REPRESENTATIVE

* Will be completed upon Contract Award

G. 2. Invoicing

a) Attention should be directed to Clause 52.232-25 entitled "Prompt Payment", which is incorporated into this contract by the applicable general provision in Section I herein.

Furthermore, this provision shall be read and applied as modified herein.

b) The contractor shall submit proper invoices to the address below.

United States Coast Guard Financial Center TSA Commercial Invoices P.O. Box 4111

Chesapeake, VA 23326-4111

c) The COTR is responsible for verifying and certifying that the items or services have been inspected, accepted, and/or meet the requirements of the award.

d) Invoices shall contain the following information:

• Mailing address for Contractor

• Invoice date and invoice number

• Description, quantity, unit of measure, unit price, and extended price of services delivered and accepted by TSA

• Name and address of the Contractor official to whom payment is to be sent (must be the same as that in the agreement or in a proper notice of assignment)

• Name (where practicable), title phone number, and mailing address of person to notify in the event of a defective invoice

• Taxpayer Identification Number (TIN)

• Electronic funds transfer (EFT) banking information

• The appropriate line of accounting for invoiced Contract Line Items

G. 3. Accounting and Appropriation Data

Accounting and appropriation data will be provided with the contract award.

G. 4. Mandatory Information for Electronic Fund Transfer (EFT) Payment – Central Contractor Registration (CCR) (February 2003)

(a) Method of payment. For any payment to be made after June 1, 2001, the Contractor shall provide EFT information to the CCR database. Payments by the TSA under this contract, including invoice and contract financing payments, will be made by EFT, except as provided in paragraph (a)(1). If payment is made by EFT, the TSA may, at its option, also forward the associated payment information by electronic transfer. As used in this clause, the term "EFT" refers to the funds transfer and may also include the information transfer.

(1) In the event the TSA is unable to release one or more payments by EFT, the

Contractor agrees to either:

(i) Accept payment by check or some other mutually agreeable method of payment; or

(ii) Request the TSA to extend the payment due date until such time as the TSA can make payment by EFT (but see paragraph (d) of this clause).

(b) Mandatory submission of Contractor's EFT information.

(1) The Contractor is required, as a condition to any payment under this contract, to provide the Central Contractor Registration (CCR) database with the information required in the CCR to make payment by EFT. The Contractor may register to the CCR online at www.ccr.gov, or call the CCR Assistance Center toll free at (888)-227-2423 and request the necessary registration forms. The Contractor must have a DUNS number to begin registration. To obtain a DUNS number, call Dun & Bradstreet, Inc. at (800) 234- 3867. In the event that the EFT information changes, the Contractor shall be responsible for providing the updated information to the CCR database.

(2) If the Contractor has identified multiple payment receiving points (i.e., more than one remittance address and/or EFT information set) in the CCR database, and the Contractor has not notified the TSA of the payment receiving point applicable to this contract, the TSA shall make payment to the first payment receiving point (EFT information set or remittance address as applicable) listed in the CCR database.

(c) Mechanisms for EFT payment. The TSA may make payment by EFT through either an Automated Clearing House (ACH) subject to the banking laws of the United States or the Federal

Reserve Wire Transfer System at the TSA's option. The rules governing Federal payments through the ACH are contained in 31 CFR part 210.

(d) Suspension of payment.

(1) Notwithstanding the provisions of any other clause of this contract, the TSA is not required to make any payment under this contract until after the correct EFT payment information from the Contractor has been provided to the CCR database. No invoice or contract financing request shall be deemed to be valid, as defined by the Prompt Payment Act, until correct EFT information is received into the CCR database.

(2) Changes made to an existing record in the CCR database will become effective not later than the 30th day after receipt in the CCR database. However, the Contractor may request that no further payments be made until the changed EFT information is implemented into the CCR database. If such suspension would result in a late payment under the Prompt Payment clause of this contract, the Contractor's request for suspension shall extend the due date for payment by the number of days of the suspension.

(e) Contractor EFT arrangements. The Contractor shall designate a single financial agent capable of receiving and processing the electronic funds transfer using the EFT methods described in paragraph (c) of this clause. The Contractor shall pay all fees and charges for receipt and processing of transfers.

(f) Liability for uncompleted or erroneous transfers.

(1) If an uncompleted or erroneous transfer occurs because the TSA failed to use the

Contractor-provided EFT information in the CCR database in the correct manner, the TSA remains responsible for

(i) making a correct payment,

(ii) paying any prompt payment penalty due, and

(iii) recovering any erroneously directed funds.

(2) If an uncompleted or erroneous transfer occurs because Contractor-provided EFT information in the CCR database was incorrect, or was revised within 30 days at the time of TSA release of the EFT payment transaction instruction to the Federal Reserve System, and:

(i) If the funds are no longer under the control of the payment office, the TSA is deemed to have made payment and the Contractor is responsible for recovery of any erroneously directed funds; or

(ii) If the funds remain under the control of the payment office, the TSA retains the right to either make payment by mail or suspend the payment in accordance with paragraph (d) of this clause.

(g) EFT and prompt payment.

(1) A payment shall be deemed to have been made in a timely manner in accordance with the Prompt Payment clause of this contract if, in the EFT payment transaction instruction given to the Federal Reserve System, the date specified for settlement of the payment is on or before the prompt payment due date, provided the specified payment date is a valid date under the rules of the Federal Reserve System.

(2) When payment cannot be made by EFT because of incorrect EFT information provided by the Contractor to the CCR database, no interest penalty is due after the date of the uncompleted or erroneous payment transaction, provided that notice of the defective EFT information is issued to the Contractor within 7 days after the TSA is notified of the defective EFT information.

(h) EFT and assignment of claims. If the Contractor assigns the proceeds of this contract as provided for in the Assignment of Claims clause of this contract, the Contractor shall require as a condition of any such assignment, that the assignee shall register in the CCR database and shall be paid by EFT in accordance with the terms of this clause. In all respects, the requirements of this clause shall apply to the assignee as if it were the Contractor. EFT information, which shows the ultimate recipient of the transfer to be other than the Contractor, in the absence of a proper assignment of claims acceptable to the TSA, is incorrect EFT information within the meaning of paragraph (d) of this clause.

(i) Liability for change of EFT information by financial agent. The Contractor agrees that the Contractor's financial agent may notify the TSA of a change to the routing transit number, Contractor account number, or account type. The TSA shall use the changed data in accordance with paragraph (d)(2) of this clause. The Contractor agrees that the information provided by the agent is deemed to be correct information as if it were provided by the Contractor. The Contractor agrees that the agent's notice of changed EFT data is deemed to be a request by the Contractor in accordance with paragraph (d)(2) that no further payments be made until the changed EFT information is implemented by the payment office. The TSA is not liable for errors resulting from changes to EFT information made by the Contractor's financial agent.

(End of clause)

G. 5 3052.204-71 Contractor employee access (JUN 2006)

(a) Sensitive Information, as used in this Chapter, means any information, the loss, misuse, disclosure, or unauthorized access to or modification of which could adversely affect the national or homeland security interest, or the conduct of Federal programs, or the privacy to which individuals are entitled under section 552a of title 5, United States Code (the Privacy Act), but which has not been specifically authorized under criteria established by an Executive Order or an Act of Congress to be kept secret in the interest of national defense, homeland security or foreign policy. This definition includes the following categories of information:

(1) Protected Critical Infrastructure Information (PCII) as set out in the Critical Infrastructure Information Act of 2002 (Title II, Subtitle B, of the Homeland Security Act, Public Law 107-296, 196 Stat. 2135), as amended, the implementing regulations thereto (Title 6, Code of Federal Regulations, Part 29) as amended, the applicable PCII Procedures Manual, as amended, and any supplementary guidance officially communicated by an authorized official of the Department of Homeland Security (including the PCII Program Manager or his/her designee);

(2) Sensitive Security Information (SSI), as defined in Title 49, Code of Federal Regulations, Part 1520, as amended, “Policies and Procedures of Safeguarding and Control of S SI,” as amended, and any supplementary guidance officially communicated by an authorized official of the Department of Homeland Security (including the Assistant Secretary for the Transportation Security Administration or his/her designee);

(3) Information designated as “For Official Use Only,” which is unclassified information of a sensitive nature and the unauthorized disclosure of which could adversely impact a person’s privacy or welfare, the conduct of Federal programs, or other programs or operations essential to the national or homeland security interest; and

(4) Any information that is designated “sensitive” or subject to other controls, safeguards or protections in accordance with subsequently adopted homeland security information handling procedures.

(b) “Information Technology Resources” include, but are not limited to, computer equipment, networking equipment, telecommunications equipment, cabling, network drives, computer drives, network software, computer software, software programs, intranet sites, and internet sites.

(c) Contractor employees working on this contract must complete such forms as may be necessary for security or other reasons, including the conduct of background investigations to determine suitability. Completed forms shall be submitted as directed by the Contracting Officer.

Upon the Contracting Officer's request, the Contractor's employees shall be fingerprinted, or subject to other investigations as required. All contractor employees requiring recurring access to Government facilities or access to sensitive information or IT resources are required to have a favorably adjudicated background investigation prior to commencing work on this contract unless this requirement is waived under Departmental procedures.

(d) The Contracting Officer may require the contractor to prohibit individuals from working on the contract if the government deems their initial or continued employment contrary to the public interest for any reason, including, but not limited to, carelessness, insubordination, incompetence, or security concerns.

(e) Work under this contract may involve access to sensitive information. Therefore, the Contractor shall not disclose, orally or in writing, any sensitive information to any person unless authorized in writing by the Contracting Officer. For those contractor employees authorized access to sensitive information, the contractor shall ensure that these persons receive training concerning the protection and disclosure of sensitive information both during and after contract performance.

(f) The Contractor shall include the substance of this clause in all subcontracts at any tier where the subcontractor may have access to Government facilities, sensitive information, or resources.

Section H – Contract Special Terms and Conditions

H.1. Contracting Officer Authority

In no event shall any understanding or agreement between the Contractor and any Government employee other than the Contracting Officer on any contract, modification, change order, letter or verbal direction to the Contractor be effective or binding upon the Government. All such actions must be formalized by a proper contractual document executed by an appointed Contracting Officer. The Contractor is hereby put on notice that in the event a Government employee other than the Contracting Officer directs a change in the work to be performed or increases the scope of the work to be performed, it is the Contractor's responsibility to make inquiry of the Contracting Officer before making the deviation. Payments will not be made without being authorized by an appointed Contracting Officer with the legal authority to bind the Government.

H.2. Authorized Changes Only By The Contracting Officer

(a) Except as specified in paragraph (b) below, no order, statement, or conduct of Government personnel who visit the contractor's facilities or in any other manner communicates with contractor personnel during the performance of this contract shall constitute a change under the "Changes" clause of this contract.

(b) The Contractor shall not comply with any order, direction or request of Government personnel unless it is issued in writing and signed by the Contracting Officer, or is pursuant to specific authority otherwise included as a part of this contract.

(c) The Contracting Officer is the only person authorized to approve changes in any of the requirements of this contract and notwithstanding provisions contained elsewhere in this contract, the said authority remains solely the Contracting Officer's. In the event the contractor effects any change at the direction of any person other than the Contracting Officer, the change will be considered to have been made without authority and no adjustment will be made in the contractor price to cover any increase in charges incurred as a result thereof. The address and telephone number of the Contracting Officer is:

Name: Samantha M. Gray

Address: Department of Homeland Security Transportation Security Administration Office of Acquisition, TSA-25 701 South 12th Street Arlington, VA 22202 Telephone: (571) 227-4174

H.3 News Releases

The contractor shall obtain explicit, written consent from the contracting officer before making reference to the equipment or services furnished pursuant to the provisions of this contract in any news release or commercial advertising, or in connection with any news release or commercial advertising.

Section I – Contract Clauses

I.1 CLAUSES INCORPORATED BY REFERENCE

FAR CLAUSES & PROVISIONS

52.202-1 Definitions. (JUL 2004) 52.203-3 Gratuities. (APR 1984) 52.203-5 Covenant Against Contingent Fees. (APR 1984) 52.203-6 Restrictions on Subcontractor Sales to the Government. (JUL 1995) 52.203-7 Anti-Kickback Procedures. (JUL 1995) 52.203-8 Cancellation, Rescission, and Recovery of Funds for Illegal or Improper Activity. (JAN 1997) 52.203-10 Price or Fee Adjustment for Illegal or Improper Activity. (JAN 1997) 52.203-12 Limitation on Payments to Influence Certain Federal Transactions. (SEP 2005) 52.204-4 Printed or Copied Double-Sided on Recycled Paper. (AUG 2000) 52.204-7 Central Contractor Registration. (JUL 2006) 52.209-6 Protecting the Government's Interest When Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment. (JAN 2005)

52.211-5 Material Requirements. (AUG 2000) 52.215-14 Integrity of Unit Prices. (OCT 1997) 52.215-14 Integrity of Unit Prices. (OCT 1997) - Alternate I (OCT 1997) 52.219-8 Utilization of Small Business Concerns. (MAY 2004) 52.219-9 Small Business Subcontracting Plan. (JUL 2005) 52.219-9 ALT II - Small Business Subcontracting Plan (OCT. 2001) 52.219-28 Post-Award Small Business Program Rerepresentation (June 2007) 52.222-3 Convict Labor. (JUN 2003) 52.222-19 Child Labor - Cooperation with Authorities and Remedies. (JAN 2006) 52.222-20 Walsh-Healey Public Contracts Act. (DEC 1996) 52.222-21 Prohibition of Segregated Facilities. (FEB 1999) 52.222-26 Equal Opportunity. (APR 2002) 52.222-26 Equal Opportunity. (FEB 1999) - Alternate I (FEB 1999) 52.222-35 Equal Opportunity for Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans. (DEC 2001) 52.222-36 Affirmative Action for Workers with Disabilities. (JUN 1998) 52.222-37 Employment Reports on Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans. (DEC 2001) 52.222-39 Notification of Employee Rights Concerning Payment of Union Dues or Fees. (DEC 2004) 52.223-6 Drug-Free Workplace. (MAY 2001) 52.223-14 Toxic Chemical Release Reporting. (AUG 2003) 52.225-1 Buy American Act - Supplies. (JUN 2003) 52.225-3 Buy American Act - Free Trade Agreements - Israeli Trade Act. (JUN 2006) 52.225-13 Restrictions on Certain Foreign Purchases. (FEB 2006) 52.226-1 Utilization of Indian Organizations and Indian-Owned Economic Enterprises. (JUN 2000) 52.227-1 Authorization and Consent. (JUL 1995) 52.227-2 Notice and Assistance Regarding Patent and Copyright Infringement. (AUG 1996) 52.227-14 Rights in Data – General (DEC 2007) 52.229-4 Federal, State, and Local Taxes (State and Local Adjustments). (APR 2003) 52.232-1 Payments. (APR 1984) 52.232-8 Discounts for Prompt Payment. (FEB 2002) 52.232-11 Extras. (APR 1984) 52.232-16 Progress Payments (APR 2003) 52.232-16 ALT I Progress Payments (APR 2003) 52.232-17 Interest. (JUN 1996) 52.232-23 Assignment of Claims. (JAN 1986) 52.232-25 Prompt payment. (OCT 2003) 52.232-33 Payment by Electronic Funds Transfer - Central Contractor Registration. (OCT 2003) 52.233-1 Disputes. (JUL 2002) 52.233-1 Disputes. (JUL 2002) - Alternate I (DEC 1991) 52.233-3 Protest after Award. (AUG 1996) 52.242-13 Bankruptcy (AUG 1996) 52.243-1 Changes - Fixed-Price. (AUG 1987) 52.244-5 Competition in Subcontracting. (DEC 1996) 52.244-6 Subcontracts for Commercial Items (FEB 2006) 52.245-1 Property Records. (APR 1984) 52.246-23 Limitation of Liability. (FEB 1997) 52.249-2 Termination for Convenience of the Government (Fixed-Price). (MAY 2004) 52.249-8 Default (Fixed-Price Supply and Service). (APR 1984) 52.251-1 Government Supply Sources. (APR 1984) 52.253-1 Computer Generated Forms. (JAN 1991)

HSAR CLAUSES

3052.219-70 Small Business Subcontracting Plan Reporting (JUN 2006) 3052.217-93 Subcontracts (USCG) (DEC 2003) 3052.223-90 Accident and fire reporting (USCG) (DEC 2003) 3052.211-70 Index for specifications (DEC 2003) 3052.242-72 Contracting Officer's Technical Representative (DEC 2003)

I.2 CLAUSES INCORPORATED IN FULL

52.204-2 Security Requirements (AUT 1996)

(a) This clause applies to the extent that this contract involves access to information classified

“Confidential,” “Secret,” or “Top Secret.”

(b) The Contractor shall comply with—

(1) The Security Agreement (DD Form 441), including the National Industrial Security Program Operating Manual (DoD 5220.22-M); and

(2) Any revisions to that manual, notice of which has been furnished to the Contractor.

(c) If, subsequent to the date of this contract, the security classification or security requirements under this contract are changed by the Government and if the changes cause an increase or decrease in security costs or otherwise affect any other term or condition of this contract, the contract shall be subject to an equitable adjustment as if the changes were directed under the Changes clause of this contract.

(d) The Contractor agrees to insert terms that conform substantially to the language of this clause, including this paragraph (d) but excluding any reference to the Changes clause of this contract, in all subcontracts under this contract that involve access to classified information.

(End of clause)

52.217-9 Option to Extend the Term of the Contract (Mar 2000)

(a) The Government may extend the term of this contract by written notice to the Contractor within 30 days; provided that the Government gives the Contractor a preliminary written notice of its intent to extend at least _____ days [60 days unless a different number of days is inserted] before the contract expires. The preliminary notice does not commit the Government to an extension.

(b) If the Government exercises this option, the extended contract shall be considered to include this option clause.

(c) The total duration of this contract, including the exercise of any options under this clause, shall not exceed 24 months.

52.223-11 Ozone-Depleting Substances (May 2001)

(a) Definition. “Ozone-depleting substance,” as used in this clause, means any substance the Environmental Protection Agency designates in 40 CFR Part 82 as—

(1) Class I, including, but not limited to, chlorofluorocarbons, halons, carbon tetrachloride, and methyl chloroform; or

(2) Class II, including, but not limited to, hydrochlorofluorocarbons.

(b) The Contractor shall label products which contain or are manufactured with ozone-depleting substances in the manner and to the extent required by 42 U.S.C. 7671j (b), (c), and (d) and 40 CFR Part 82, Subpart E, as follows:

Warning Contains (or manufactured with, if applicable) *_______, a substance(s) which harm(s) public health and environment by destroying ozone in the upper atmosphere.

• The Contractor shall insert the name of the substance(s).

52.246-18 Warranty of Supplies of a Complex Nature (MAY 2001)

(a) Definitions. As used in this clause— “Acceptance” means the act of an authorized representative of the Government by which the

Government assumes for itself, or as an agent of another, ownership of existing and identified supplies, or approves specific services rendered, as partial or complete performance of the contract.

“Supplies” means the end items furnished by the Contractor and related services required under this contract. The word does not include “data.”

(b) Contractor’s obligations.

(1) The Contractor warrants that for ________ [Contracting Officer shall state the specific warranty period after delivery, or the specified event whose occurrence will terminate the warranty period; e.g., the number of miles or hours of use, or combinations of any applicable events or periods of time] all supplies furnished under this contract will be free from defects in material and workmanship and will conform with all requirements of this contract; provided, however, that with respect to Government-furnished property, the Contractor’s warranty shall extend only to its proper installation, unless the Contractor performs some modification or other work on the property, in which case the Contractor’s warranty shall extend to the modification or other work.

(2) Any supplies or parts thereof corrected or furnished in replacement shall be subject to the conditions of this clause to the same extent as supplies initially delivered. This warranty shall be equal in duration to that set forth in paragraph (b)(1) of this clause and shall run from the date of delivery of the corrected or replaced supplies.

(3) The Contractor shall not be obligated to correct or replace supplies if the facilities, tooling, drawings, or other equipment or supplies necessary to accomplish the correction or replacement have been made unavailable to the Contractor by action of the Government. In the event that correction or replacement has been directed, the Contractor shall promptly notify the Contracting Officer, in writing, of the nonavailability.

(4) The Contractor shall also prepare and furnish to the Government data and reports applicable to any correction required (including revision and updating of all affected data called for under this contract) at no increase in the contract price.

(5) When supplies are returned to the Contractor, the Contractor shall bear the transportation costs from the place of delivery specified in the contract (irrespective of the f.o.b. point or the point of acceptance) to the Contractor’s plant and return.

(6) All implied warranties of merchantability and “fitness for a particular purpose” are excluded from any obligation contained in this contract.

(c) Remedies available to the Government.

(1) In the event of a breach of the Contractor’s warranty in paragraph (b)(1) of this clause, the Government may, at no increase in contract price—

(i) Require the Contractor, at the place of delivery specified in the contract (irrespective of the f.o.b. point or the point of acceptance) or at the Contractor’s plant, to repair or replace, at the Contractor’s election, defective or nonconforming supplies; or

(ii) Require the Contractor to furnish at the Contractor’s plant the materials or parts and installation instructions required to successfully accomplish the correction.

(2) If the Contracting Officer does not require correction or replacement of defective or nonconforming supplies or the Contractor is not obligated to correct or replace under paragraph (b)(3) of this clause, the Government shall be entitled to an equitable reduction in the contract price.

(3) The Contracting Officer shall notify the Contractor in writing of any breach of the warranty in paragraph (b) of this clause within _____. [Contracting Officer shall insert specific period of time in which notice shall be given to the Contractor; e.g., “45 days after delivery of the nonconforming supplies.”; “45 days of the last delivery under this contract.”; or “45 days after discovery of the defect.”] The Contractor shall submit to the Contracting Officer a written recommendation within _______ [Contracting Officer shall insert period of time] as to the corrective action required to remedy the breach. After the notice of breach, but not later than _________ [Contracting Officer shall insert period within which the warranty remedies should be exercised] after receipt of the Contractor’s recommendation for corrective action, the Contracting Officer may, in writing, direct correction or replacement as in paragraph (c)(1) of this clause, and the Contractor shall, notwithstanding any disagreement regarding the existence of a breach of warranty, comply with this direction. If it is later determined that the Contractor did not breach the warranty in paragraph (b)(1) of this clause, the contract price will be equitably adjusted.

(4) If supplies are corrected or replaced, the period for notification of a breach of the Contractor’s warranty in paragraph (c)(3) of this clause shall be _________ [Contracting Officer shall insert period within which the Contractor must be notified of a breach as to corrected or replaced supplies] from the furnishing or return by the Contractor to the Government of the corrected or replaced supplies or parts thereof, or, if correction or replacement is effected by the

Contractor at a Government or other activity, for ______ [Contracting Officer shall insert period within which the Contractor must be notified of a breach of warranty as to corrected or replaced supplies] thereafter.

(5) The rights and remedies of the Government provided in this clause are in addition to and do not limit any rights afforded to the Government by any other clause of the contract.

52.252-2 Clauses Incorporated by Reference (Feb 1998)

This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text available. Also, the full text of a clause may be accessed electronically at this/these address(es):

WWW.ARNET.GOV/FAR

(End of clause)

3052.215-70 Key personnel or facilities (DEC 2003)

(a) The personnel or facilities specified below are considered essential to the work being performed under this contract and may, with the consent of the contracting parties, be changed from time to time during the course of the contract by adding or deleting personnel or facilities, as appropriate.

(b) Before removing or replacing any of the specified individuals or facilities, the Contractor shall notify the Contracting Officer, in writing, before the change becomes effective.